live from las vegas it's the cube covering discover 2016 las vegas brought to you by Hewlett Packard Enterprise now you're your host John furrier and Dave vellante okay welcome back here and we are here live in Las Vegas for HP discover 2016 exclusive coverage from SiliconANGLE media's two cubes our flagship program we go out to the events and extract the signal noise i'm john / with my co-host dave allante and our next guest is Bobby Patrick CMO of the cloud enterprise group at HPE and Michael Loomis head of sales of global enterprise that at nuage networks pardon now part of Nokia that's right welcome back to the cube welcome for the first time thank you very much may the cube alumni club that's right it's bro my cabin I leave I gotta get a platinum membership now no VIP Thompson after six times you got we people want have a cube alumni event at these events so it's be fun next year like that we'll look at that yeah Bobby I want to get touch base on the cloud you also you'd run in the cloud group I Nokia's customer of you guys obviously HP everyone knows the history had the public cloud they kind of pivoted over and now you guys found your swim lane alright you to just take a minute right to clarify Andrey amplify what we talked about last and right I'm in London around HP's cloud strategy it's not like it's not define you guys have a clear line of sight right take a minute to just share your vision and the specifically the company's cloud strategy yeah thanks John it's great to be here again you know cloud is the catalyst for our customers transformation and our partners and got 24 here at discover onstage showcasing he lien at healing at work it up I've been there two years now and our cloud strategy couldn't be any more on fire and working this three prongs to it the first one is we want to help customers in a multi cloud world source manager consume cloud services across traditional IT private managed in public rightly so the azure partnership before we have dropbox now as well and others so we're demonstrating that second one is we want to partner with the leading technology so you mentioned the public cloud we used to have in the past now we're focused on that part of the right mix of our customers cloud strategy on public cloud partnerships so you see that Microsoft Azure specialty clouds like enter links around document collaboration you know doc Dropbox so all examples of demonstrating around partner clouds and the third one is we want to integrate our solutions with those clouds as well so managing that multi-cloud world is complex working with becomes like Nokia we're taking healing and healing OpenStack is giving Cloud Foundry we're layering on it called cloud orchestration which we now bundle as our healing Cloud suite today and we pull in public cloud we pull in manage private and traditional IT into one single solution for our customers so you mentioned as your and there's nothing in the announcements this morning that mention as yours that's the previous relationship right we announced our partners with as your last discover this one there's a number of announcements just showing it at work right our managed cloud broker offering cloud brokerage is a really big deal now for CIOs trying to manage a multi-cloud world now extends to azure so there's a lot of those announcements are going to see throughout discover with Azure and there's gonna be some other cloud announcements as well well we'll get to the eucalyptus AWS relationship kind of late if I wanted to ask you specifically around the strategy and how you see the cloud enabling delivery and on the opening i mentioned dave was asking about my views on HP's growth and I kind of use the story of back in the old days of the many computers this little laserjet attachment to walang system was a major growth engine for HP and the rest is history so we're kind of looking at the cloud and saying okay is IOT that bolt onto the cloud that is going to lift up where cloud becomes also pervasive like many computers and then distributed computing did how are you guys enabling things like IOT right because now the hybrid cloud public private data center right is integrating together right do you see that as an integration into the cloud and you enabling those kinds of things there's actually two big kind of growth axes that I think a report right one is you mentioned IOT so the number of devices connected the amount of data just huge orders of magnitude growth you got to actually drive costs down and things as well be part of that and so that's a big deal i would say universal platform that we announced as well healing is a back-end for that so massive scale on OpenStack on our cloud line service or other so you get that Maxim economics with new wash another spreading across multiple data centers for availability we have that platform for IOT but I think from a growth in March we look at the new hpe now right the lighter nimbler stronger when i layer on our security product security's number one concern our customers have going to go into cloud you know arcsight being able to do threat detection across a hybrid cloud right right the ability to do encryption with our data secure product right bringing in our big data products like Vertica for the column data store in our in our work around Hadoop or distributed are right when you get to bring those pieces into the fold right you begin to have the ability to add on top high-value software and services more of the stack you know obviously infrastructure across the bottom so what I see is us growing share of wallet growing our strategic relevance by both by both handling the massive amounts of data that's being generated supporting the connected world but also security managing that data big data fast data and providing that full stack on top and we're bringing all those pieces together but the past HP kind of have these siloed be use in a way right not anymore all these pieces are coming together and that's a big part of my my organization responsibility so Michael talked about where nuage fits in what's the relationship where do you guys add value so nuage is a what we call a software-defined networking product it's born out of some routing technology that we've had for a number of years we started our router products back in 2001 and we're number one or number two depending on the category and service provider edge routers and when you look at the the problem of scale out and flexibility in the cloud you need some complex network constructs that may not be ready of readily available in some of those cloud tools and obviously you can't go throw an expensive service provider edge router at that problem so what we did is we took that software use that as a SDN controller to manage the forwarding tables of the virtual switches or the namespace in the case of linux container integrated that into the distribution or a cloud system like Keely on and there you go you've got a stack that can scale out at the network layer and at the composite VMware killer yeah as a solution Kyle singer always talking about network and he's so proud of his acquisition of the stn player and the sierra which is a part of the vmware but dave and i always saw always saw that the network was the bottom that you seeing a rube out there yes pacifically talk about where the network piece fits in and why that's so important right now with cloud you mentioned some technical things but is it is it really the DevOps enable or is it about the containers is it about the micro services all the above what's the key will issue network is important for scale anytime you want to go multi data center or hybrid or you want to secure your applications you got to have an advanced networking solution or an SDN solution what's driving that scale you know we approach private cloud a few years back we had the stack we were putting it together we got nice production pilots up in the customers and then we found that a lot of the applications weren't built to consume the flexibility and the scale out that we delivered with that private cloud so these enterprises are going back and they've got new applications that are coming on that are micro services oriented architectures cloud native applications and they can consume this architecture and they're starting to it's not just IOT it's lots of applications that are relooking at how to take advantage of this infrastructure it's being built and that spreads across multiple data centers and part of the hybrid cloud which is why solid networking solutions important it's absolutely critical have good networking let's get to the DevOps question I'll see the big process workloads one of the things you guys have talked about in your announcements morning was obviously workload management having the ability of flexibility by poseable infrastructure yadda yadda yeah I got it Michael you that you're developing this stuff and the thing that Dave and I here and Wikibon community from customers is make it easier for me the total cost of ownership is out of control it's super hard to do this how does this get easier how are people managing through the complexity to make it simpler and how are they managing the total cost of ownership keeley on so that's just why it's important for us because we come in and we have a lot of great networking technology but people are not going to consume that networking technology in and of themselves they need a integrated complete stack that's supported installs quickly and as an orchestration layer on top that's going to allow it to scale the staples an example this I just say annealing what specifically about helium makes it simpler lower costs so when you look at healing on one great tool set they built together is an installer tool set and so there's nice scripting that's going to take when you look at a cloud you've got OpenStack components you've got your Cloud Foundry components you got your networking components storage components and to have all of that stuff install and deploy seamlessly and scale out as demand is required that doesn't come off the shelf if you're going to self integrate some of these open source projects so that the support and service that's added with helium and then if you look at the sea a slate layer on top to manage all the components and integrate in with some of the public clouds that's what takes the technology stack from being a great set of standards and a great set of open-source products that can now be consumed well dude some installation was the biggest barrier openstax had for a long time now how complex it was to install it scale right so i think that the contract and it takes it from a stack of technology to something that actually solves a business so that business problem is IT labor right right that's right non differentiated provisioning or patching or talk about the shift that's going on within that sort of labor pool from stuff that gives you no competitive advantage out to where we are today or where we're headed we used to go into proof of concepts and the customer would one or two types they either have an OpenStack expert in there someone who had lived and breathe it and was part of the original community and they would work with us to get the initial stack up and running a guy a guy or we would have to bring that guy to the table and they get somebody that was trying to be that person we'd help them stand up OpenStack at the same time we'd go in with nuage we knew that wasn't going to work so that's when we started partnering strongly with partners like healing on who can come in and make that work for the enterprise and if you're in a CIOs position you don't want to be dependent on one or two OpenStack experts that you've got to make sure stay or you gotta hire an army of OpenStack engineers what you want is a private cloud that works in a trusted partner to deliver it for you but you want the openness and the standards-based attributes of a product like Helion so you can plug other pieces of the environment in so that's it's really important Dave just you know the average the average customer that we have today has one engineer for every 240 virtual machines with helium staccato 40 which were rolling out has we believe we can get that to 12 500 and that's because you've got a universal control plane where you've got a single pane of glass basically across all the clouds but as your AWS openstack-based clouds maybe even some vmware stack clouds as well and and you could through one see the workloads deploy them that's how you really get a continuous delivery pipeline going it's api's for developers but a single pane of glass for IT and scale what's key it's working now so it brought up VMware VMware killer when you mention it so I'll bring up the VMware question so back in the day VMware ecosystem was really robust yeah some are saying it's on the decline will see that what's the update our vmworld the cube will be there again this year but they made for every one of their partners they made ten dollars for every dollar VMware book so they threw up a lot of cash which is great but the ecosystem you know feeds the feeds that feeds the beast if you will how are you guys Bobby doing that with your partners and now do you see docker for instance enabling things like that and how does that all you have to do some sort of economic advantage for your partners can you share some insight into what you got yeah yeah yeah so in addition to you know that the terms around helping it be attractive to skill up and and transfer our partners transforming as well most of them in resellers you know they want to climb the stack now they would be more relevant to their customers the skilling up does have come with cost and one of the big things we're doing is working on go to market with them actually bringing them bringing them opportunities bringing them in the deals in the case of like with with with Nokia right the ability to to go in with them work on accounts together these are major really large significant IT transformations with our other partners as well skilling them up getting bringing them away wrapping services around their monetization services wrappers yeah they're actually building hostess back up as a service other kinds of service offerings that they build and run themselves that we will actually sell to our go-to-market channels or they'll deploy on site that you know most of our business you know seventy percent goes through the channel right was there a number can you share a number ten dollars I don't have the number by the number how do stuff how does the ecosystem build around and how they make money with helion's the services is that the apps we deploy we sell software licenses so as Helion scales out we get more workloads on the system then we're going to sell more software licenses but the ecosystem is critical for us because when you're talking about building a private cloud and you're talking about building an open private cloud which is getting away from the vendor lock that exists today which is why people are driving to some of these open source products it means that a lot of products have to come together and work well together and so it usually it's the it's the OpenStack distribution that's that's like healing on that's leading that ecosystem we're a part of that and then we get interaction with a lot of other components as a part of that ecosystem that helps build an end solution to the customer we have 360 now cloud builder partners we had 30 18 months ago will have 3018 more months right we're transforming them and they're building new businesses hire marketing services and grow in their bodies how do you see the CSC Spinco whatever we're going to call that affecting is you had basically a built-in consumer right of you know your stuff there one of the Cantonian area's biggest customers right how will that shake out you think and of course CS he has a strong relationship with AWS that's goodness but yeah yeah I think I think it's about focuses meg always says writes about it's about having companies i can really focus on their best thing right so you know we have a growth high growth a growth company focus on software and hardware and infrastucture and services I think outsourcing they're coming together with CSC they're building a be a big partner of ours but we're also part with Accenture and others as well so I think it's hella everybody to be the best of what they do we'll have relationships contractual and partnership relationships but it will allow maybe a bit more complete competition probably very very healthy you feel Alfie with the sis the big power s eyes you guys in good shape with those guys yeah in Price Waterhouse Coopers just received a partner of the year for cloud they're here in a big way accenture is here yeah I think they're they're big as well but you know our enterprise services and and they're here in a big way too and I think that will continue some of the influences out there last question wants to know about the update on equal lyptus AWS that relation down can give an update yeah so our strategy is to partner with public cloud providers many of them eucalyptus has a great story you know where obviously you go to reinvent or a big part of that you know I think there will be you'll see more to come on the public cloud partnership partnership face but will be at reinvent no to the cube watch a movie at dr. Khan as well coming up very quickly I think next week or the week after thank you okay let me avenge coming up guys thanks so much appreciate it thanks for spending the time yeah thank you i'll be Patrick Michael Loomis here on the cube this is a cube we'll be right back after this short break