>>From the Cube Studios in Palo Alto in Boston, bringing you data-driven insights from the cube and E T R. This is breaking analysis with Dave Valante. >>Making technology predictions in 2022 was tricky business, especially if you were projecting the performance of markets or identifying I P O prospects and making binary forecast on data AI and the macro spending climate and other related topics in enterprise tech 2022, of course was characterized by a seesaw economy where central banks were restructuring their balance sheets. The war on Ukraine fueled inflation supply chains were a mess. And the unintended consequences of of forced march to digital and the acceleration still being sorted out. Hello and welcome to this week's weekly on Cube Insights powered by E T R. In this breaking analysis, we continue our annual tradition of transparently grading last year's enterprise tech predictions. And you may or may not agree with our self grading system, but look, we're gonna give you the data and you can draw your own conclusions and tell you what, tell us what you think. >>All right, let's get right to it. So our first prediction was tech spending increases by 8% in 2022. And as we exited 2021 CIOs, they were optimistic about their digital transformation plans. You know, they rushed to make changes to their business and were eager to sharpen their focus and continue to iterate on their digital business models and plug the holes that they, the, in the learnings that they had. And so we predicted that 8% rise in enterprise tech spending, which looked pretty good until Ukraine and the Fed decided that, you know, had to rush and make up for lost time. We kind of nailed the momentum in the energy sector, but we can't give ourselves too much credit for that layup. And as of October, Gartner had it spending growing at just over 5%. I think it was 5.1%. So we're gonna take a C plus on this one and, and move on. >>Our next prediction was basically kind of a slow ground ball. The second base, if I have to be honest, but we felt it was important to highlight that security would remain front and center as the number one priority for organizations in 2022. As is our tradition, you know, we try to up the degree of difficulty by specifically identifying companies that are gonna benefit from these trends. So we highlighted some possible I P O candidates, which of course didn't pan out. S NQ was on our radar. The company had just had to do another raise and they recently took a valuation hit and it was a down round. They raised 196 million. So good chunk of cash, but, but not the i p O that we had predicted Aqua Securities focus on containers and cloud native. That was a trendy call and we thought maybe an M SS P or multiple managed security service providers like Arctic Wolf would I p o, but no way that was happening in the crummy market. >>Nonetheless, we think these types of companies, they're still faring well as the talent shortage in security remains really acute, particularly in the sort of mid-size and small businesses that often don't have a sock Lacework laid off 20% of its workforce in 2022. And CO C e o Dave Hatfield left the company. So that I p o didn't, didn't happen. It was probably too early for Lacework. Anyway, meanwhile you got Netscope, which we've cited as strong in the E T R data as particularly in the emerging technology survey. And then, you know, I lumia holding its own, you know, we never liked that 7 billion price tag that Okta paid for auth zero, but we loved the TAM expansion strategy to target developers beyond sort of Okta's enterprise strength. But we gotta take some points off of the failure thus far of, of Okta to really nail the integration and the go to market model with azero and build, you know, bring that into the, the, the core Okta. >>So the focus on endpoint security that was a winner in 2022 is CrowdStrike led that charge with others holding their own, not the least of which was Palo Alto Networks as it continued to expand beyond its core network security and firewall business, you know, through acquisition. So overall we're gonna give ourselves an A minus for this relatively easy call, but again, we had some specifics associated with it to make it a little tougher. And of course we're watching ve very closely this this coming year in 2023. The vendor consolidation trend. You know, according to a recent Palo Alto network survey with 1300 SecOps pros on average organizations have more than 30 tools to manage security tools. So this is a logical way to optimize cost consolidating vendors and consolidating redundant vendors. The E T R data shows that's clearly a trend that's on the upswing. >>Now moving on, a big theme of 2020 and 2021 of course was remote work and hybrid work and new ways to work and return to work. So we predicted in 2022 that hybrid work models would become the dominant protocol, which clearly is the case. We predicted that about 33% of the workforce would come back to the office in 2022 in September. The E T R data showed that figure was at 29%, but organizations expected that 32% would be in the office, you know, pretty much full-time by year end. That hasn't quite happened, but we were pretty close with the projection, so we're gonna take an A minus on this one. Now, supply chain disruption was another big theme that we felt would carry through 2022. And sure that sounds like another easy one, but as is our tradition, again we try to put some binary metrics around our predictions to put some meat in the bone, so to speak, and and allow us than you to say, okay, did it come true or not? >>So we had some data that we presented last year and supply chain issues impacting hardware spend. We said at the time, you can see this on the left hand side of this chart, the PC laptop demand would remain above pre covid levels, which would reverse a decade of year on year declines, which I think started in around 2011, 2012. Now, while demand is down this year pretty substantially relative to 2021, I D C has worldwide unit shipments for PCs at just over 300 million for 22. If you go back to 2019 and you're looking at around let's say 260 million units shipped globally, you know, roughly, so, you know, pretty good call there. Definitely much higher than pre covid levels. But so what you might be asking why the B, well, we projected that 30% of customers would replace security appliances with cloud-based services and that more than a third would replace their internal data center server and storage hardware with cloud services like 30 and 40% respectively. >>And we don't have explicit survey data on exactly these metrics, but anecdotally we see this happening in earnest. And we do have some data that we're showing here on cloud adoption from ET R'S October survey where the midpoint of workloads running in the cloud is around 34% and forecast, as you can see, to grow steadily over the next three years. So this, well look, this is not, we understand it's not a one-to-one correlation with our prediction, but it's a pretty good bet that we were right, but we gotta take some points off, we think for the lack of unequivocal proof. Cause again, we always strive to make our predictions in ways that can be measured as accurate or not. Is it binary? Did it happen, did it not? Kind of like an O K R and you know, we strive to provide data as proof and in this case it's a bit fuzzy. >>We have to admit that although we're pretty comfortable that the prediction was accurate. And look, when you make an hard forecast, sometimes you gotta pay the price. All right, next, we said in 2022 that the big four cloud players would generate 167 billion in IS and PaaS revenue combining for 38% market growth. And our current forecasts are shown here with a comparison to our January, 2022 figures. So coming into this year now where we are today, so currently we expect 162 billion in total revenue and a 33% growth rate. Still very healthy, but not on our mark. So we think a w s is gonna miss our predictions by about a billion dollars, not, you know, not bad for an 80 billion company. So they're not gonna hit that expectation though of getting really close to a hundred billion run rate. We thought they'd exit the year, you know, closer to, you know, 25 billion a quarter and we don't think they're gonna get there. >>Look, we pretty much nailed Azure even though our prediction W was was correct about g Google Cloud platform surpassing Alibaba, Alibaba, we way overestimated the performance of both of those companies. So we're gonna give ourselves a C plus here and we think, yeah, you might think it's a little bit harsh, we could argue for a B minus to the professor, but the misses on GCP and Alibaba we think warrant a a self penalty on this one. All right, let's move on to our prediction about Supercloud. We said it becomes a thing in 2022 and we think by many accounts it has, despite the naysayers, we're seeing clear evidence that the concept of a layer of value add that sits above and across clouds is taking shape. And on this slide we showed just some of the pickup in the industry. I mean one of the most interesting is CloudFlare, the biggest supercloud antagonist. >>Charles Fitzgerald even predicted that no vendor would ever use the term in their marketing. And that would be proof if that happened that Supercloud was a thing and he said it would never happen. Well CloudFlare has, and they launched their version of Supercloud at their developer week. Chris Miller of the register put out a Supercloud block diagram, something else that Charles Fitzgerald was, it was was pushing us for, which is rightly so, it was a good call on his part. And Chris Miller actually came up with one that's pretty good at David Linthicum also has produced a a a A block diagram, kind of similar, David uses the term metacloud and he uses the term supercloud kind of interchangeably to describe that trend. And so we we're aligned on that front. Brian Gracely has covered the concept on the popular cloud podcast. Berkeley launched the Sky computing initiative. >>You read through that white paper and many of the concepts highlighted in the Supercloud 3.0 community developed definition align with that. Walmart launched a platform with many of the supercloud salient attributes. So did Goldman Sachs, so did Capital One, so did nasdaq. So you know, sorry you can hate the term, but very clearly the evidence is gathering for the super cloud storm. We're gonna take an a plus on this one. Sorry, haters. Alright, let's talk about data mesh in our 21 predictions posts. We said that in the 2020s, 75% of large organizations are gonna re-architect their big data platforms. So kind of a decade long prediction. We don't like to do that always, but sometimes it's warranted. And because it was a longer term prediction, we, at the time in, in coming into 22 when we were evaluating our 21 predictions, we took a grade of incomplete because the sort of decade long or majority of the decade better part of the decade prediction. >>So last year, earlier this year, we said our number seven prediction was data mesh gains momentum in 22. But it's largely confined and narrow data problems with limited scope as you can see here with some of the key bullets. So there's a lot of discussion in the data community about data mesh and while there are an increasing number of examples, JP Morgan Chase, Intuit, H S P C, HelloFresh, and others that are completely rearchitecting parts of their data platform completely rearchitecting entire data platforms is non-trivial. There are organizational challenges, there're data, data ownership, debates, technical considerations, and in particular two of the four fundamental data mesh principles that the, the need for a self-service infrastructure and federated computational governance are challenging. Look, democratizing data and facilitating data sharing creates conflicts with regulatory requirements around data privacy. As such many organizations are being really selective with their data mesh implementations and hence our prediction of narrowing the scope of data mesh initiatives. >>I think that was right on J P M C is a good example of this, where you got a single group within a, within a division narrowly implementing the data mesh architecture. They're using a w s, they're using data lakes, they're using Amazon Glue, creating a catalog and a variety of other techniques to meet their objectives. They kind of automating data quality and it was pretty well thought out and interesting approach and I think it's gonna be made easier by some of the announcements that Amazon made at the recent, you know, reinvent, particularly trying to eliminate ET t l, better connections between Aurora and Redshift and, and, and better data sharing the data clean room. So a lot of that is gonna help. Of course, snowflake has been on this for a while now. Many other companies are facing, you know, limitations as we said here and this slide with their Hadoop data platforms. They need to do new, some new thinking around that to scale. HelloFresh is a really good example of this. Look, the bottom line is that organizations want to get more value from data and having a centralized, highly specialized teams that own the data problem, it's been a barrier and a blocker to success. The data mesh starts with organizational considerations as described in great detail by Ash Nair of Warner Brothers. So take a listen to this clip. >>Yeah, so when people think of Warner Brothers, you always think of like the movie studio, but we're more than that, right? I mean, you think of H B O, you think of t n t, you think of C N N. We have 30 plus brands in our portfolio and each have their own needs. So the, the idea of a data mesh really helps us because what we can do is we can federate access across the company so that, you know, CNN can work at their own pace. You know, when there's election season, they can ingest their own data and they don't have to, you know, bump up against, as an example, HBO if Game of Thrones is going on. >>So it's often the case that data mesh is in the eyes of the implementer. And while a company's implementation may not strictly adhere to Jamma Dani's vision of data mesh, and that's okay, the goal is to use data more effectively. And despite Gartner's attempts to deposition data mesh in favor of the somewhat confusing or frankly far more confusing data fabric concept that they stole from NetApp data mesh is taking hold in organizations globally today. So we're gonna take a B on this one. The prediction is shaping up the way we envision, but as we previously reported, it's gonna take some time. The better part of a decade in our view, new standards have to emerge to make this vision become reality and they'll come in the form of both open and de facto approaches. Okay, our eighth prediction last year focused on the face off between Snowflake and Databricks. >>And we realized this popular topic, and maybe one that's getting a little overplayed, but these are two companies that initially, you know, looked like they were shaping up as partners and they, by the way, they are still partnering in the field. But you go back a couple years ago, the idea of using an AW w s infrastructure, Databricks machine intelligence and applying that on top of Snowflake as a facile data warehouse, still very viable. But both of these companies, they have much larger ambitions. They got big total available markets to chase and large valuations that they have to justify. So what's happening is, as we've previously reported, each of these companies is moving toward the other firm's core domain and they're building out an ecosystem that'll be critical for their future. So as part of that effort, we said each is gonna become aggressive investors and maybe start doing some m and a and they have in various companies. >>And on this chart that we produced last year, we studied some of the companies that were targets and we've added some recent investments of both Snowflake and Databricks. As you can see, they've both, for example, invested in elation snowflake's, put money into Lacework, the Secur security firm, ThoughtSpot, which is trying to democratize data with ai. Collibra is a governance platform and you can see Databricks investments in data transformation with D B T labs, Matillion doing simplified business intelligence hunters. So that's, you know, they're security investment and so forth. So other than our thought that we'd see Databricks I p o last year, this prediction been pretty spot on. So we'll give ourselves an A on that one. Now observability has been a hot topic and we've been covering it for a while with our friends at E T R, particularly Eric Bradley. Our number nine prediction last year was basically that if you're not cloud native and observability, you are gonna be in big trouble. >>So everything guys gotta go cloud native. And that's clearly been the case. Splunk, the big player in the space has been transitioning to the cloud, hasn't always been pretty, as we reported, Datadog real momentum, the elk stack, that's open source model. You got new entrants that we've cited before, like observe, honeycomb, chaos search and others that we've, we've reported on, they're all born in the cloud. So we're gonna take another a on this one, admittedly, yeah, it's a re reasonably easy call, but you gotta have a few of those in the mix. Okay, our last prediction, our number 10 was around events. Something the cube knows a little bit about. We said that a new category of events would emerge as hybrid and that for the most part is happened. So that's gonna be the mainstay is what we said. That pure play virtual events are gonna give way to hi hybrid. >>And the narrative is that virtual only events are, you know, they're good for quick hits, but lousy replacements for in-person events. And you know that said, organizations of all shapes and sizes, they learn how to create better virtual content and support remote audiences during the pandemic. So when we set at pure play is gonna give way to hybrid, we said we, we i we implied or specific or specified that the physical event that v i p experience is going defined. That overall experience and those v i p events would create a little fomo, fear of, of missing out in a virtual component would overlay that serves an audience 10 x the size of the physical. We saw that really two really good examples. Red Hat Summit in Boston, small event, couple thousand people served tens of thousands, you know, online. Second was Google Cloud next v i p event in, in New York City. >>Everything else was, was, was, was virtual. You know, even examples of our prediction of metaverse like immersion have popped up and, and and, and you know, other companies are doing roadshow as we predicted like a lot of companies are doing it. You're seeing that as a major trend where organizations are going with their sales teams out into the regions and doing a little belly to belly action as opposed to the big giant event. That's a definitely a, a trend that we're seeing. So in reviewing this prediction, the grade we gave ourselves is, you know, maybe a bit unfair, it should be, you could argue for a higher grade, but the, but the organization still haven't figured it out. They have hybrid experiences but they generally do a really poor job of leveraging the afterglow and of event of an event. It still tends to be one and done, let's move on to the next event or the next city. >>Let the sales team pick up the pieces if they were paying attention. So because of that, we're only taking a B plus on this one. Okay, so that's the review of last year's predictions. You know, overall if you average out our grade on the 10 predictions that come out to a b plus, I dunno why we can't seem to get that elusive a, but we're gonna keep trying our friends at E T R and we are starting to look at the data for 2023 from the surveys and all the work that we've done on the cube and our, our analysis and we're gonna put together our predictions. We've had literally hundreds of inbounds from PR pros pitching us. We've got this huge thick folder that we've started to review with our yellow highlighter. And our plan is to review it this month, take a look at all the data, get some ideas from the inbounds and then the e t R of January surveys in the field. >>It's probably got a little over a thousand responses right now. You know, they'll get up to, you know, 1400 or so. And once we've digested all that, we're gonna go back and publish our predictions for 2023 sometime in January. So stay tuned for that. All right, we're gonna leave it there for today. You wanna thank Alex Myerson who's on production and he manages the podcast, Ken Schiffman as well out of our, our Boston studio. I gotta really heartfelt thank you to Kristen Martin and Cheryl Knight and their team. They helped get the word out on social and in our newsletters. Rob Ho is our editor in chief over at Silicon Angle who does some great editing for us. Thank you all. Remember all these podcasts are available or all these episodes are available is podcasts. Wherever you listen, just all you do Search Breaking analysis podcast, really getting some great traction there. Appreciate you guys subscribing. I published each week on wikibon.com, silicon angle.com or you can email me directly at david dot valante silicon angle.com or dm me Dante, or you can comment on my LinkedIn post. And please check out ETR AI for the very best survey data in the enterprise tech business. Some awesome stuff in there. This is Dante for the Cube Insights powered by etr. Thanks for watching and we'll see you next time on breaking analysis.

>>Hey everyone, welcome to this event, HPE Compute Security. I'm your host, Lisa Martin. Kevin Dee joins me next Senior director, future Surfer Architecture at hpe. Kevin, it's great to have you back on the program. >>Thanks, Lisa. I'm glad to be here. >>One of the topics that we're gonna unpack in this segment is, is all about cybersecurity. And if we think of how dramatically the landscape has changed in the last couple of years, I was looking at some numbers that H P V E had provided. Cybercrime will reach 10.5 trillion by 2025. It's a couple years away. The average total cost of a data breach is now over 4 million, 15% year over year crime growth predicted over the next five years. It's no longer if we get hit, it's when it's how often. What's the severity? Talk to me about the current situation with the cybersecurity landscape that you're seeing. >>Yeah, I mean the, the numbers you're talking about are just staggering and then that's exactly what we're seeing and that's exactly what we're hearing from our customers is just absolutely key. Customers have too much to lose. The, the dollar cost is just, like I said, staggering. And, and here at HP we know we have a huge part to play, but we also know that we need partnerships across the industry to solve these problems. So we have partnered with, with our, our various partners to deliver these Gen 11 products. Whether we're talking about partners like a M D or partners like our Nick vendors, storage card vendors. We know we can't solve the problem alone. And we know this, the issue is huge. And like you said, the numbers are staggering. So we're really, we're really partnering with, with all the right players to ensure we have a secure solution so we can stay ahead of the bad guys to try to limit the, the attacks on our customers. >>Right. Limit the damage. What are some of the things that you've seen particularly change in the last 18 months or so? Anything that you can share with us that's eye-opening, more eye-opening than some of the stats we already shared? >>Well, there, there's been a massive number of attacks just in the last 12 months, but I wouldn't really say it's so much changed because the amount of attacks has been increasing dramatically over the years for many, many, many years. It's just a very lucrative area for the bad guys, whether it's ransomware or stealing personal data, whatever it is, it's there. There's unfortunately a lot of money to be made into it, made from it, and a lot of money to be lost by the good guys, the good guys being our customers. So it's not so much that it's changed, it's just that it's even accelerating faster. So the real change is, it's accelerating even faster because it's becoming even more lucrative. So we have to stay ahead of these bad guys. One of the statistics of Microsoft operating environments, the number of tax in the last year, up 50% year over year, that's a huge acceleration and we've gotta stay ahead of that. We have to make sure our customers don't get impacted to the level that these, these staggering number of attacks are. The, the bad guys are out there. We've gotta protect, protect our customers from the bad guys. >>Absolutely. The acceleration that you talked about is, it's, it's kind of frightening. It's very eye-opening. We do know that security, you know, we've talked about it for so long as a, as a a C-suite priority, a board level priority. We know that as some of the data that HPE e also sent over organizations are risking are, are listing cyber risks as a top five concern in their organization. IT budgets spend is going up where security is concerned. And so security security's on everyone's mind. In fact, the cube did, I guess in the middle part of last, I did a series on this really focusing on cybersecurity as a board issue and they went into how companies are structuring security teams changing their assumptions about the right security model, offense versus defense. But security's gone beyond the board, it's top of mind and it's on, it's in an integral part of every conversation. So my question for you is, when you're talking to customers, what are some of the key challenges that they're saying, Kevin, these are some of the things the landscape is accelerating, we know it's a matter of time. What are some of those challenges and that they're key pain points that they're coming to you to help solve? >>Yeah, at the highest level it's simply that security is incredibly important to them. We talked about the numbers. There's so much money to be lost that what they come to us and say, is security's important for us? What can you do to protect us? What can you do to prevent us from being one of those statistics? So at a high level, that's kind of what we're seeing at a, with a little more detail. We know that there's customers doing digital transformations. We know that there's customers going hybrid cloud, they've got a lot of initiatives on their own. They've gotta spend a lot of time and a lot of bandwidth tackling things that are important to their business. They just don't have the bandwidth to worry about yet. Another thing which is security. So we are doing everything we can and partnering with everyone we can to help solve those problems for customers. >>Cuz we're hearing, hey, this is huge, this is too big of a risk. How do you protect us? And by the way, we only have limited bandwidth, so what can we do? What we can do is make them assured that that platform is secure, that we're, we are creating a foundation for a very secure platform and that we've worked with our partners to secure all the pieces. So yes, they still have to worry about security, but there's pieces that we've taken care of that they don't have to worry about and there's capabilities that we've provided that they can use and we've made that easy so they can build su secure solutions on top of it. >>What are some of the things when you're in customer conversations, Kevin, that you talk about with customers in terms of what makes HPE E'S approach to security really unique? >>Well, I think a big thing is security is part of our, our dna. It's part of everything we do. Whether we're designing our own asics for our bmc, the ilo ASIC ILO six used on Gen 11, or whether it's our firmware stack, the ILO firmware, our our system, UFI firmware, all those pieces in everything we do. We're thinking about security. When we're building products in our factory, we're thinking about security. When we're think designing our supply chain, we're thinking about security. When we make requirements on our suppliers, we're driving security to be a key part of those components. So security is in our D N a security's top of mind. Security is something we think about in everything we do. We have to think like the bad guys, what could the bad guy take advantage of? What could the bad guy exploit? So we try to think like them so that we can protect our customers. >>And so security is something that that really is pervasive across all of our development organizations, our supply chain organizations, our factories, and our partners. So that's what we think is unique about HPE is because security is so important and there's a whole lot of pieces of our reliance servers that we do ourselves that many others don't do themselves. And since we do it ourselves, we can make sure that security's in the design from the start, that those pieces work together in a secure manner. So we think that gives us a, an advantage from a security standpoint. >>Security is very much intention based at HPE e I was reading in some notes, and you just did a great job of talking about this, that fundamental security approach, security is fundamental to defend against threats that are increasingly complex through what you also call an uncompromising focus to state-of-the-art security and in in innovations built into your D N A. And then organizations can protect their infrastructure, their workloads, their data from the bad guys. Talk to us briefly in our final few minutes here, Kevin, about fundamental uncompromising protected the value in it for me as an HPE customer. >>Yeah, when we talk about fundamental, we're talking about the those fundamental technologies that are part of our platform. Things like we've integrated TPMS and sorted them down in our platforms. We now have platform certificates as a standard part of the platform. We have I dev id and probably most importantly, our platforms continue to support what we really believe was a groundbreaking technology, Silicon Root of trust and what that's able to do. We have millions of lines of firmware code in our platforms and with Silicon Root of trust, we can authenticate all of those lines of firmware. Whether we're talking about the the ILO six firmware, our U E I firmware, our C P L D in the system, there's other pieces of firmware. We authenticate all those to make sure that not a single line of code, not a single bit has been changed by a bad guy, even if the bad guy has physical access to the platform. >>So that silicon route of trust technology is making sure that when that system boots off and that hands off to the operating system and then eventually the customer's application stack that it's starting with a solid foundation, that it's starting with a system that hasn't been compromised. And then we build other things into that silicon root of trust, such as the ability to do the scans and the authentications at runtime, the ability to automatically recover if we detect something has been compromised, we can automatically update that compromised piece of firmware to a good piece before we've run it because we never want to run firmware that's been compromised. So that's all part of that Silicon Root of Trust solution and that's a fundamental piece of the platform. And then when we talk about uncompromising, what we're really talking about there is how we don't compromise security. >>And one of the ways we do that is through an extension of our Silicon Root of trust with a capability called S Spdm. And this is a technology that we saw the need for, we saw the need to authenticate our option cards and the firmware in those option cards. Silicon Root Prota, Silicon Root Trust protects against many attacks, but one piece it didn't do is verify the actual option card firmware and the option cards. So we knew to solve that problem we would have to partner with others in the industry, our nick vendors, our storage controller vendors, our G vendors. So we worked with industry standards bodies and those other partners to design a capability that allows us to authenticate all of those devices. And we worked with those vendors to get the support both in their side and in our platform side so that now Silicon Rivers and trust has been extended to where we protect and we trust those option cards as well. >>So that's when, when what we're talking about with Uncompromising and with with Protect, what we're talking about there is our capabilities around protecting against, for example, supply chain attacks. We have our, our trusted supply chain solution, which allows us to guarantee that our server, when it leaves our factory, what the server is, when it leaves our factory, will be what it is when it arrives at the customer. And if a bad guy does anything in that transition, the transit from our factory to the customer, they'll be able to detect that. So we enable certain capabilities by default capability called server configuration lock, which can ensure that nothing in the server exchange, whether it's firmware, hardware, configurations, swapping out processors, whatever it is, we'll detect if a bad guy did any of that and the customer will know it before they deploy the system. That gets enabled by default. >>We have an intrusion detection technology option when you use by the, the trusted supply chain that is included by default. That lets you know, did anybody open that system up, even if the system's not plugged in, did somebody take the hood off and potentially do something malicious to it? We also enable a capability called U EFI secure Boot, which can go authenticate some of the drivers that are located on the option card itself. Those kind of capabilities. Also ilo high security mode gets enabled by default. So all these things are enabled in the platform to ensure that if it's attacked going from our factory to the customer, it will be detected and the customer won't deploy a system that's been maliciously attacked. So that's got >>It, >>How we protect the customer through those capabilities. >>Outstanding. You mentioned partners, my last question for you, we've got about a minute left, Kevin is bring AMD into the conversation, where do they fit in this >>AMD's an absolutely crucial partner. No one company even HP can do it all themselves. There's a lot of partnerships, there's a lot of synergies working with amd. We've been working with AMD for almost 20 years since we delivered our first AM MD base ProLiant back in 2004 H HP ProLiant, DL 5 85. So we've been working with them a long time. We work with them years ahead of when a processor is announced, we benefit each other. We look at their designs and help them make their designs better. They let us know about their technology so we can take advantage of it in our designs. So they have a lot of security capabilities, like their memory encryption technologies, their a MD secure processor, their secure encrypted virtualization, which is an absolutely unique and breakthrough technology to protect virtual machines and hypervisor environments and protect them from malicious hypervisors. So they have some really great capabilities that they've built into their processor, and we also take advantage of the capabilities they have and ensure those are used in our solutions and in securing the platform. So a really such >>A great, great partnership. Great synergies there. Kevin, thank you so much for joining me on the program, talking about compute security, what HPE is doing to ensure that security is fundamental, that it is unpromised and that your customers are protected end to end. We appreciate your insights, we appreciate your time. >>Thank you very much, Lisa. >>We've just had a great conversation with Kevin Depu. Now I get to talk with David Chang, data center solutions marketing lead at a md. David, welcome to the program. >>Thank, thank you. And thank you for having me. >>So one of the hot topics of conversation that we can't avoid is security. Talk to me about some of the things that AMD is seeing from the customer's perspective, why security is so important for businesses across industries. >>Yeah, sure. Yeah. Security is, is top of mind for, for almost every, every customer I'm talking to right now. You know, there's several key market drivers and, and trends, you know, in, out there today that's really needing a better and innovative solution for, for security, right? So, you know, the high cost of data breaches, for example, will cost enterprises in downtime of, of the data center. And that time is time that you're not making money, right? And potentially even leading to your, to the loss of customer confidence in your, in your cust in your company's offerings. So there's real costs that you, you know, our customers are facing every day not being prepared and not having proper security measures set up in the data center. In fact, according to to one report, over 400 high-tech threats are being introduced every minute. So every day, numerous new threats are popping up and they're just, you know, the, you know, the bad guys are just getting more and more sophisticated. So you have to take, you know, measures today and you have to protect yourself, you know, end to end with solutions like what a AM MD and HPE has to offer. >>Yeah, you talked about some of the costs there. They're exorbitant. I've seen recent figures about the average, you know, cost of data breacher ransomware is, is close to, is over $4 million, the cost of, of brand reputation you brought up. That's a great point because nobody wants to be the next headline and security, I'm sure in your experiences. It's a board level conversation. It's, it's absolutely table stakes for every organization. Let's talk a little bit about some of the specific things now that A M D and HPE E are doing. I know that you have a really solid focus on building security features into the EPIC processors. Talk to me a little bit about that focus and some of the great things that you're doing there. >>Yeah, so, you know, we partner with H P E for a long time now. I think it's almost 20 years that we've been in business together. And, and you know, we, we help, you know, we, we work together design in security features even before the silicons even, you know, even born. So, you know, we have a great relationship with, with, with all our partners, including hpe and you know, HPE has, you know, an end really great end to end security story and AMD fits really well into that. You know, if you kind of think about how security all started, you know, in, in the data center, you, you've had strategies around encryption of the, you know, the data in, in flight, the network security, you know, you know, VPNs and, and, and security on the NS. And, and even on the, on the hard drives, you know, data that's at rest. >>You know, encryption has, you know, security has been sort of part of that strategy for a a long time and really for, you know, for ages, nobody really thought about the, the actual data in use, which is, you know, the, the information that's being passed from the C P U to the, the, the memory and, and even in virtualized environments to the, the, the virtual machines that, that everybody uses now. So, you know, for a long time nobody really thought about that app, you know, that third leg of, of encryption. And so a d comes in and says, Hey, you know, this is things that as, as the bad guys are getting more sophisticated, you, you have to start worrying about that, right? And, you know, for example, you know, you know, think, think people think about memory, you know, being sort of, you know, non-persistent and you know, when after, you know, after a certain time, the, the, you know, the, the data in the memory kind of goes away, right? >>But that's not true anymore because even in in memory data now, you know, there's a lot of memory modules that still can retain data up to 90 minutes even after p power loss. And with something as simple as compressed, compressed air or, or liquid nitrogen, you can actually freeze memory dams now long enough to extract the data from that memory module for up, you know, up, up to two or three hours, right? So lo more than enough time to read valuable data and, and, and even encryption keys off of that memory module. So our, our world's getting more complex and you know, more, the more data out there, the more insatiable need for compute and storage. You know, data management is becoming all, all the more important, you know, to keep all of that going and secure, you know, and, and creating security for those threats. It becomes more and more important. And, and again, especially in virtualized environments where, you know, like hyperconverged infrastructure or vir virtual desktop memories, it's really hard to keep up with all those different attacks, all those different attack surfaces. >>It sounds like what you were just talking about is what AMD has been able to do is identify yet another vulnerability Yes. Another attack surface in memory to be able to, to plug that hole for organizations that didn't, weren't able to do that before. >>Yeah. And, you know, and, and we kind of started out with that belief that security needed to be scalable and, and able to adapt to, to changing environments. So, you know, we, we came up with, you know, the, you know, the, the philosophy or the design philosophy that we're gonna continue to build on those security features generational generations and stay ahead of those evolving attacks. You know, great example is in, in the third gen, you know, epic C P U, that family that we had, we actually created this feature called S E V S N P, which stands for SECURENESS Paging. And it's really all around this, this new attack where, you know, your, the, the, you know, it's basically hypervisor based attacks where people are, you know, the bad actors are writing in to the memory and writing in basically bad data to corrupt the mem, you know, to corrupt the data in the memory. So s e V S and P is, was put in place to help, you know, secure that, you know, before that became a problem. And, you know, you heard in the news just recently that that becoming a more and more, more of a bigger issue. And the great news is that we had that feature built in, you know, before that became a big problem. >>And now you're on the fourth gen, those epic crosses talk of those epic processes. Talk to me a little bit about some of the innovations that are now in fourth gen. >>Yeah, so in fourth gen we actually added, you know, on top of that. So we've, we've got, you know, the sec the, the base of our, our, what we call infinity guard is, is all around the secure boot. The, you know, the, the, the, the secure root of trust that, you know, that we, we work with HPE on the, the strong memory encryption and the S E V, which is the secure encrypted virtualization. And so remember those s s and p, you know, incap capabilities that I talked about earlier. We've actually, in the fourth gen added two x the number of sev v s and P guests for even higher number of confidential VMs to support even more customers than before. Right? We've also added more guest protection from simultaneous multi threading or S M T side channel attacks. And, you know, while it's not officially part of Infinity Guard, we've actually added more APEC acceleration, which greatly benefits the security of those confidential VMs with the larger number of VCPUs, which basically means that you can build larger VMs and still be secured. And then lastly, we actually added even stronger a e s encryption. So we went from 128 bit to 256 bit, which is now military grade encryption on top of that. And, you know, and, and that's really, you know, the de facto crypto cryptography that is used for most of the applications for, you know, customers like the US federal government and, and all, you know, the, is really an essential element for memory security and the H B C applications. And I always say if it's good enough for the US government, it's good enough for you. >>Exactly. Well, it's got to be, talk a little bit about how AMD is doing this together with HPE a little bit about the partnership as we round out our conversation. >>Sure, absolutely. So security is only as strong as the layer below it, right? So, you know, that's why modern security must be built in rather than, than, you know, bolted on or, or, or, you know, added after the fact, right? So HPE and a MD actually developed this layered approach for protecting critical data together, right? Through our leadership and, and security features and innovations, we really deliver a set of hardware based features that, that help decrease potential attack surfaces. With, with that holistic approach that, you know, that safeguards the critical information across system, you know, the, the entire system lifecycle. And we provide the confidence of built-in silicon authentication on the world's most secure industry standard servers. And with a 360 degree approach that brings high availability to critical workloads while helping to defend, you know, against internal and external threats. So things like h hp, root of silicon root of trust with the trusted supply chain, which, you know, obviously AMD's part of that supply chain combined with AMD's Infinity guard technology really helps provide that end-to-end data protection in today's business. >>And that is so critical for businesses in every industry. As you mentioned, the attackers are getting more and more sophisticated, the vulnerabilities are increasing. The ability to have a pa, a partnership like H P E and a MD to deliver that end-to-end data protection is table stakes for businesses. David, thank you so much for joining me on the program, really walking us through what am MD is doing, the the fourth gen epic processors and how you're working together with HPE to really enable security to be successfully accomplished by businesses across industries. We appreciate your insights. >>Well, thank you again for having me, and we appreciate the partnership with hpe. >>Well, you wanna thank you for watching our special program HPE Compute Security. I do have a call to action for you. Go ahead and visit hpe com slash security slash compute. Thanks for watching.

>>Oh, welcome back to the Cube here at aws Reinvent 22. As we continue our coverage here, the AWS Global Showcase, the Startup Showcase, John Wall is here hosting for the Cube as we've been here all week. Hope you're enjoying our coverage here. This is day three, by the way. We're wrapping it up shortly with us to talk about what's going on in the, kind of the hotel world in it and what's going on in the cloud, especially at I hg is Eric Norman, head of infrastructure, architecture, and innovation at I H G Hotels and Resorts. Eric, good to see you, >>Sir. Oh, thank you. And thank you for inviting me. Yeah, >>You bet. Glad to have you board here on the queue. First time, I think too, by the way, right? >>It is. And can I just tell you who IHG is >>Real quick? Yeah, wait a second. First I want another rest. I got Introduc to Rod Stuller, who is the Vice president and of Solutions marketing at Aviatrix and Rod. Good to see you, sir. Thanks a lot. Now let's talk about I ih. >>Great. Well, IHGs a a hospitality company, it's been around for 200 years, that has 17 brands globally in over a hundred countries. We sleek, you know, up could up to 888,000 people a night. So it's a pretty large company that we compete with, you know, all the hotel companies globally. >>So let's talk about your, your footprint right now in, in terms of what your needs are, because you've mentioned obviously a lot of, you have a lot of customers needs, you have a lot of internal stakeholder needs. Yeah. So just from that perspective, how are you balancing out, you know, the products you wanna launch as opposed to the, on the development side and the maintenance side? >>Yeah, I mean we, we have focused our, our attention to our, our guests and our hotels globally and, and taking technology and from a foundation, getting it at, at the edge so that way the consumer and the hotel owner can deliver a quality product to a guest experience. You know, we've have moved larger, a large deployment of our mission critical applications over the last five years really, of moving into more SaaS and infrastructure like AWS and GCP and, and leveraging their global scale to be able to deliver at the edge or get closer to the edge. And so we've, you know, I'm pretty sure you've seen, you know, kind of people building, you know, mission critical apps. You know, probably in the last three years it's probably escalating and more of like a hockey stick of moving stuff. I'd love to hear what AVIA is seeing. Oh >>Yeah. Now we're, we're seeing that quite a bit, right? As people move into the cloud, it's now business critical applications that are going there. So good enough isn't good enough anymore, right? It has to be, you know, a powerful capability that's business critical, can support that, give people the ability to troubleshoot it when something goes wrong. And then multi-cloud, you mentioned a couple different cloud companies, a lot of enterprises are moving to multiple clouds and you don't want to have to do it differently in every cloud. You want a infrastructure management layer that allows you to do that across >>Clouds. So how do you go about that, you know, deciding what goes where. I mean, it sounds like a simple question, but, but if you are dealing in a lot of different kinds of environments, different needs and different requirements, whatever, you know, how are you sorting out, delegating, you know, you know, you're, you're you're gonna be working here, you're gonna be >>Working there. Yeah. So we built some standards base that says, you know, certain types of apps, you know, transactional base, you know, go to this cloud provider and data analytics that's gonna go to another, another cloud provider based on our decision of key capability, native capability, and, and also coverage. You know, cuz we are in China, right? You know, you know, I, I've gotta be able to get into China and, and build not only a network that can support that, but also business apps locally to meet, compete with compliance, regulatory type activities. I mean, even in, in the US market, I got, you know, California privacy laws, you know, you have globally, you've gotta deal with getting data applications into compliance for those globally, right? >>Yeah. So, so you got that compliance slash governance Yeah. Issue. Huge issue. Yeah. I would think for you, you gotta decide who's gonna get to what when, and also we have to meet certain regulatory standards as you pointed out. And not just there, but you got European footprint, right? I mean, you're global. Yeah. So, so you know, handling that kind of scope or scale, what kind of nightmares or challenges does that provide you and how's Aviatrix helping you solve >>That? Yeah, in the early days, you know, we were using cloud native, you know, constructs for networking and a little bit of a security type angle to it. What we found was, you know, you can't get the automation you need. You can't get the, the scalability, you know, cuz we're, we're trying to shift left our, you know, our DevOps and our ability to deploy infrastructure. Aviatrix had come in and, and provided a, a solution that gets us there quicker than anybody else. It's allow us to, you know, build a mesh network across all our regions globally. I'm able to deploy, you know, new landing zones or, you know, public cloud fairly quickly with my, you know, networking construct. We also, we found that because we are a multi hybrid cloud, we, we introduced on the edge a a new network. We had to introduce a performance hub architecture that's using Equinix that sits in every region in every public cloud and partner. Cuz all our partners, you know, we, we've moved a lot of stuff to sas. You know, Amadeus is our centralized reservation system. That's our key, you know? Sure. You know, reservation tool, it's so sourced out. I need to bring them in and I need to get data that's closer to where, in a region to where it needs the land so I can process it. Right. >>And it's a big world out there too. I mean, you're, you're not in your head Rod. So talk about if you would share some of the, the aviatrix experience in that regard. When you have a client like this that has these, you know, multinational locations and, and yet you're looking for some consistency and some uniformity. You don't, you know, you can't be reinventing the wheel every time something pops up, right? >>Right. No. And then, and it's about agility and speed and, you know, being able to do it with less people than you used to have to do things, right? You, you want to be able to give the developers what they need when they need it. There was a time when people were going around it, swiping their credit card and, and saying, it doesn't give me what I need. And so cloud is supposed to change that. So we're trying to deliver the ability to do that for the developers a lot faster than had been done in the past. But at the same time, giving the enterprise the controls, the security, the compliance that they need. And sometimes those things got in the way, but now we're building systems that allow that to happen at, at the piece that developers needed to happen. >>But what Rod said about, you know, one of the big things you sparked my thinking is it also, you know, building a overlay of the cloud native construct allows for visibility that, you know, you didn't have, you know, from a developer or even a operations day two operations, now you get that visibility into the network space and controls and management of that space a lot easier now, you know? >>Yeah. I mean, business critical applications, right? People, the people, the business does not care about networking, right? They see it as electricity and if it's down somebody else's problem to fix it. But the people who do need to keep it up, they need the telemetry. They need the ability to understand, are we trending in the wrong direction? Should we be doing something so that we don't get to the point where it goes down? And that's the kind of information that we're providing in this multi-cloud environment. You mentioned Equinix, we, we just have a partnership with Equinix where we're extending the cloud operational model that Aviatrix delivers all the way out to Equinix and that global fabric that you're talking about. So this is allowing the, the comp companies to have that visibility, that operational ability all the way globally. >>Yeah. Because you know, when you start building all these clouds now and multi regions, multiple AZs or different cloud providers or SaaS providers, you're moving data all over the place. And if you, if you don't have a single pane of glass to see that entire network and be able to route stuff accordingly, it's gonna be a zoo. It's not gonna >>Work. We were, I was talking earlier with, with another guest and we were just talking about companies in your case, I, I IHG kind of knowing what you have and it's not like such a basic thing he said, but yeah, you'd be surprised how many people don't know what they have. Oh, yeah. And so they're trying to provide that visibility and, and, and awareness. So, so I'm kind of curious because you were just the next interview up, so sorry Ken, but, but do you know what you have, I mean, are you learning what you have or is how do you identify, prioritize? How valuable is this asset as opposed to this can wait? I mean, is that still an ongoing process for >>You? It, it's definitely an ongoing process. I mean, we've done over the last three years of constantly assessing all our inventory of what we have, making sure we have the right mo roadmaps for each of the apps and products that we have. Cause we've turned to more of a product driven organization and a DevOps and we're, we're moving more and more product teams onto that DevOps process. Yep. So we can shift left a lot of the activities that developer in the past had to go over a fence to ask for help and, and, you know, kind of the automation of the network and the security built in allows us to be able to shift that left. >>Did that, I, you were saying too three years, right? You've been on, on this path Yep. Going back then to 2019 right. Pandemic hits, right. The world changes. How has that affected this three year period for you? And where are you in terms of where you expected to be and, and Yep. And then what's your, what are your headlights seeing down the road as to what your, your eventual journey, how you want that to end? >>I probably, the biggest story that we have a success story is when the pandemic did happen, you know, all our call centers, all agents had to go home. We were able within 30 days be able to bring up remote desktops, you know, workspaces an a uws and give access to globally in China and in Singapore and in the Americas. There's >>No small task there, >>That's for sure. So we built a desktop, certified it, and, and agents were able to answer calls for guests, you know, you know, so it was a huge success to us. Sure. It did slow down. I mean, during the pandemic it did slow us down from what gets migrated. You know, our focus is, you know, again, back to what I was saying earlier is around our guests and our loyalty and, you know, how do we give value back to our hotel owners and our guests? >>And how do you measure that? I mean, how do you know that what you're doing is working with, with that key audience? >>We'd measured by, you know, one occupa >>There so many, how many people do we have in the rooms? Right? But in terms of the interface, in terms of the effectiveness, the applications, in terms of what you're offering. Yeah. >>It gets back to uptime of our systems and you know, being able to deploy an application in multiple regions elevates the availability of the product to our guest. You know, the longer I'm up, the more revenue I can produce. Right. So, you know, so we, we try to, you know, we measure also guest satisfaction at the properties, you know, them using our tech and that kind of stuff to >>Be so you surveying just to find out what, how they feel about, so some, >>Cause we have a lot of tech inside of our hotels that allow for, we have ISG connect, which allows for people to go from one hotel another and not ask for passwords and, you know, that kind of stuff. >>That would not be made by the way. I'd be begging for help. Let's talk about skills, because I hear that a lot. Talk a lot about that this week. Hearing that, that, you know, the advancement of knowledge is obviously a very powerful thing, but it's also a bit of a shortcoming right now in terms of, of having a need for skills and not having that kind of firepower horsepower on your bench. What, what do you see in that regard? And, and first off, what did you see about it? And then I'll follow >>Up with Yeah, I mean, over our journey, it started off where you didn't have the skills, you know, you didn't have the skill from an operations engineering architecture. So we went on a, you know, you know, how do we build training programs? How do we get, you know, tools to, to either virtual training, bringing teachers, we built, you know, daily, our weekly calls where we bring our experts from our vendors in there to be able to ask questions to help engineering people or architecture people or operations to ask questions and get answers. You know, we, we've been on a role of, you know, upscaling over the last three years and we continue to drive that, you know, we have lunch and learns that we bring people to. Yep. You know, and, and we, and we, we ta tailor the, the content for that training based on what we are consuming and what we're using as opposed to just a, you know, a broad stroke of, of public cloud or, it's >>Almost like you don't have to be holistic about it. You just need to, what do you need to know to >>Make >>Them successful, to be better at what you're doing here? Right. Sure. >>And that's been huge. And, >>And yeah, we, and we have a program called ace, which is AVIATRIX certified engineer. And there's a bunch of different types of classes. So if you're a networking person in the past it's like A C C I E, but we have about 18,000 people over the last three years who have gone through that training. One of them. One of them, right? Is that right? Yeah. Yeah. And, and this is not necessarily about aviatrix. What we're doing is trying to give multi-cloud, you know, networking expertise because a lot of the people that we're talking about are coming from the data center world. And networking is so different in the cloud. We're helping them understand it's not as scary as they might think. Right. If your whole career has been networking in the data center and all of a sudden there's this cloud thing that you don't really understand, you need somebody to help you sort of get there. And we're doing that in a multi-cloud way. And we have all kinds of different levels to teach people how to do, do infrastructure as code. That's another thing, you know, data center guys, they never did infrastructure as code. It was, you had to bolt it in and plug stuff in. Right. But now things are being done much faster with infrastructure as code. And we're teaching people how >>To do that. Yeah. I mean, yesterday, one of the keynotes is about the partner in the, the marketplace. And they use the image imagery of, of marathon runner, you know, a marathon runner. Yeah. You could do a marathon by yourself, but if you want to improve and become a, a great marathon runner, you need a coach, you need nutritionist, you need people running with you to, to make that engine go faster a little bit. Yeah, exactly. And you know, having a partner like Aviatrix helps you know the team to be successful. >>Well, it is, it is a marathon, not a sprint. That's for sure. And you've been on this kind of three year jog. You might feel like you've been running a marathon a little bit, but it sounds like you're really off to a great start and, and have a pretty good partnership here. So thank you. Congratulations on that, Eric. Thank you for being with us. And Rod, same to you. Thank you. Appreciate the time here on the AWS Global Showcase. I'm John Wal, you're watching The Cube. We're out in Las Vegas and of course the cube, as you well know, is the leader in high tech coverage.

>>Welcome back, everyone live here at Supercomputing 22 in Dallas, Texas. I'm John for host of the Queue here at Paul Gillin, editor of Silicon Angle, getting all the stories, bringing it to you live. Supercomputer TV is the queue right now. And bringing all the action Bresniker, chief architect of Hewlett Packard Labs with HP Cube alumnis here to talk about Supercomputing Road to Quantum. Kirk, great to see you. Thanks for coming on. >>Thanks for having me guys. Great to be >>Here. So Paul and I were talking and we've been covering, you know, computing as we get into the large scale cloud now on premises compute has been one of those things that just never stops. No one ever, I never heard someone say, I wanna run my application or workload on slower, slower hardware or processor or horsepower. Computing continues to go, but this, we're at a step function. It feels like we're at a level where we're gonna unleash new, new creativity, new use cases. You've been kind of working on this for many, many years at hp, Hewlett Packard Labs, I remember the machine and all the predecessor r and d. Where are we right now from your standpoint, HPE standpoint? Where are you in the computing? It's as a service, everything's changing. What's your view? >>So I think, you know, you capture so well. You think of the capabilities that you create. You create these systems and you engineer these amazing products and then you think, whew, it doesn't get any better than that. And then you remind yourself as an engineer. But wait, actually it has to, right? It has to because we need to continuously provide that next generation of scientists and engineer and artists and leader with the, with the tools that can do more and do more frankly with less. Because while we want want to run the program slower, we sure do wanna run them for less energy. And figuring out how we accomplish all of those things, I think is, is really where it's gonna be fascinating. And, and it's also, we think about that, we think about that now, scale data center billion, billion operations per second, the new science, arts and engineering that we'll create. And yet it's also what's beyond what's beyond that data center. How do we hook it up to those fantastic scientific instruments that are capable to generate so much information? We need to understand how we couple all of those things together. So I agree, we are at, at an amazing opportunity to raise the aspirations of the next generation. At the same time we have to think about what's coming next in terms of the technology. Is the silicon the only answer for us to continue to advance? >>You know, one of the big conversations is like refactoring, replatforming, we have a booth behind us that's doing energy. You can build it in data centers for compute. There's all kinds of new things. Is there anything in the paradigm of computing and now on the road to quantum, which I know you're involved, I saw you have on LinkedIn, you have an open rec for that. What paradigm elements are changing that weren't in play a few years ago that you're looking at right now as you look at the 20 mile stair into quantum? >>So I think for us it's fascinating because we've had a tailwind at our backs my whole career, 33 years at hp. And what I could count on was transistors got at first they got cheaper, faster and they use less energy. And then, you know, that slowed down a little bit. Now they're still cheaper and faster. As we look in that and that Moore's law continues to flatten out of it, there has to be something better to do than, you know, yet another copy of the prior design opening up that diversity of approach. And whether that is the amazing wafer scale accelerators, we see these application specific silicon and then broadening out even farther next to the next to the silicon. Here's the analog computational accelerator here is now the, the emergence of a potential quantum accelerator. So seeing that diversity of approaches, but what we have to happen is we need to harness all of those efficiencies and yet we still have to realize that there are human beings that need to create the application. So how do we bridge, how do we accommodate the physical of, of new kinds of accelerator? How do we imagine the cyber physical connection to the, to the rest of the supercomputer? And then finally, how do we bridge that productivity gap? Especially not for people who like me who have been around for a long time, we wanna think about that next generation cuz they're the ones that need to solve the problems and write the code that will do it. >>You mentioned what exists beyond silicon. In fact, are you looking at different kinds of materials that computers in the future will be built upon? >>Oh absolutely. You think of when, when we, we look at the quantum, the quantum modalities then, you know, whether it is a trapped ion or a superconducting, a piece of silicon or it is a neutral ion. There's just no, there's about half a dozen of these novel systems because really what we're doing when we're using a a quantum mechanical computer, we're creating a tiny universe. We're putting a little bit of material in there and we're manipulating at, at the subatomic level, harnessing the power of of, of quantum physics. That's an incredible challenge. And it will take novel materials, novel capabilities that we aren't just used to seeing. Not many people have a helium supplier in their data center today, but some of them might tomorrow. And understanding again, how do we incorporate industrialize and then scale all of these technologies. >>I wanna talk Turkey about quantum because we've been talking for, for five years. We've heard a lot of hyperbole about quantum. We've seen some of your competitors announcing quantum computers in the cloud. I don't know who's using these, these computers, what kind of work they're being used, how much of the, how real is quantum today? How close are we to having workable true quantum computers and what can you point to any examples of how it's being, how that technology is being used in the >>Field? So it, it remains nascent. We'll put it that way. I think part of the challenge is we see this low level technology and of course it was, you know, professor Richard Fineman who first pointed us in this direction, you know, more than 30 years ago. And you know, I I I trust his judgment. Yes. You know that there's probably some there there especially for what he was doing, which is how do we understand and engineer systems at the quantum mechanical level. Well he said a quantum mechanical system's probably the way to go. So understanding that, but still part of the challenge we see is that people have been working on the low level technology and they're reaching up to wondering will I eventually have a problem that that I can solve? And the challenge is you can improve something every single day and if you don't know where the bar is, then you don't ever know if you'll be good enough. >>I think part of the approach that we like to understand, can we start with the problem, the thing that we actually want to solve and then figure out what is the bespoke combination of classical supercomputing, advanced AI accelerators, novel quantum quantum capabilities. Can we simulate and design that? And we think there's probably nothing better to do that than than an next to scale supercomputer. Yeah. Can we simulate and design that bespoke environment, create that digital twin of this environment and if we, we've simulated it, we've designed it, we can analyze it, see is it actually advantageous? Cuz if it's not, then we probably should go back to the drawing board. And then finally that then becomes the way in which we actually run the quantum mechanical system in this hybrid environment. >>So it's na and you guys are feeling your way through, you get some moonshot, you work backwards from use cases as a, as a more of a discovery navigational kind of mission piece. I get that. And Exoscale has been a great role for you guys. Congratulations. Has there been strides though in quantum this year? Can you point to what's been the, has the needle moved a little bit a lot or, I mean it's moving I guess to some, there's been some talk but we haven't really been able to put our finger on what's moving, like what need, where's the needle moved I >>Guess in quantum. And I think, I think that's part of the conversation that we need to have is how do we measure ourselves. I know at the World Economic Forum, quantum Development Network, we had one of our global future councils on the future of quantum computing. And I brought in a scene I EEE fellow Par Gini who, you know, created the international technology roadmap for semiconductors. And I said, Paulo, could you come in and and give us examples, how was the semiconductor community so effective not only at developing the technology but predicting the development of technology so that whether it's an individual deciding if they should change careers or it's a nation state deciding if they should spend a couple billion dollars, we have that tool to predict the rate of change and improvement. And so I think that's part of what we're hoping by participating will bring some of that road mapping skill and technology and understanding so we can make those better reasoned investments. >>Well it's also fun to see super computing this year. Look at the bigger picture, obviously software cloud natives running modern applications, infrastructure as code that's happening. You're starting to see the integration of, of environments almost like a global distributed operating system. That's the way I call it. Silicon and advancements have been a big part of what we see now. Merchant silicon, but also dpu are on the scene. So the role role of silicon is there. And also we have supply chain problems. So how, how do you look at that as a a, a chief architect of h Hewlett Packard Labs? Because not only you have to invent the future and dream it up, but you gotta deal with the realities and you get the realities are silicon's great, we need more of that quantums around the corner, but supply chain, how do you solve that? What's your thoughts and how do you, how, how is HPE looking at silicon innovation and, and supply chain? >>And so for us it, it is really understanding that partnership model and understanding and contributing. And so I will do things like I happen to be the, the systems and architectures chapter editor for the I eee International Roadmap for devices and systems, that community that wants to come together and provide that guidance. You know, so I'm all about telling the semiconductor and the post semiconductor community, okay, this is where we need to compute. I have a partner in the applications and benchmark that says, this is what we need to compute. And when you can predict in the future about where you need to compute, what you need to compute, you can have a much richer set of conversations because you described it so well. And I think our, our senior fellow Nick Dubey would, he's coined the term internet of workflows where, you know, you need to harness everything from the edge device all the way through the extra scale computer and beyond. And it's not just one sort of static thing. It is a very interesting fluid topology. I'll use this compute at the edge, I'll do this information in the cloud, I want to have this in my exoscale data center and I still need to provide the tool so that an individual who's making that decision can craft that work flow across all of those different resources. >>And those workflows, by the way, are complicated. Now you got services being turned on and off. Observability is a hot area. You got a lot more data in in cycle inflow. I mean a lot more action. >>And I think you just hit on another key point for us and part of our research at labs, I have, as part of my other assignments, I help draft our AI ethics global policies and principles and not only tell getting advice about, about how we should live our lives, it also became the basis for our AI research lab at Shewl Packard Labs because they saw, here's a challenge and here's something where I can't actually believe, maintain my ethical compliance. I need to have engineer new ways of, of achieving artificial intelligence. And so much of that comes back to governance over that data and how can we actually create those governance systems and and do that out in the open >>That's a can of worms. We're gonna do a whole segment on that one, >>On that >>Technology, on that one >>Piece I wanna ask you, I mean, where rubber meets the road is where you're putting your dollars. So you've talked a lot, a lot of, a lot of areas of, of progress right now, where are you putting your dollars right now at Hewlett Packard Labs? >>Yeah, so I think when I draw, when I draw my 2030 vision slide, you know, I, for me the first column is about heterogeneous, right? How do we bring all of these novel computational approaches to be able to demonstrate their effectiveness, their sustainability, and also the productivity that we can drive from, from, from them. So that's my first column. My section column is that edge to exoscale workflow that I need to be able to harness all of those computational and data resources. I need to be aware of the energy consequence of moving data, of doing computation and find all of that while still maintaining and solving for security and privacy. But the last thing, and, and that's one was a, one was a how one was aware. The last thing is a who, right? And is is how do we take that subject matter expert? I think of a, a young engineer starting their career at hpe. It'll be very different than my 33 years. And part of it, you know, they will be undaunted by any, any scale. They will be cloud natives, maybe they metaverse natives, they will demand to design an open cooperative environment. So for me it's thinking about that individual and how do I take those capabilities, heterogeneous edge to exito scale workflows and then make them productive. And for me, that's, that's where we were putting our emphasis on those three. When, where and >>Who. Yeah. And making it compatible for the next generation. We see the student cluster competition going on over there. This is the only show that we cover that we've been to that is from the dorm room to the boardroom and this cuz Supercomputing now is elevating up into that workflow, into integration, multiple environments, cloud, premise, edge, metaverse. This is like a whole nother world. >>And, and, but I think it's, it's the way that regardless of which human pursuit you're in, you know, everyone is going to be demand simulation and modeling ai, ML and massive data m l and massive data analytics that's gonna be at heart of, of everything. And that's what you see. That's what I love about coming here. This isn't just the way we're gonna do science. This is the way we're gonna do everything. >>We're gonna come by your booth, check it out. We've talked to some of the folks, hpe obviously HPE Discover this year, GreenLake with center stage, it's now consumption is a service for technology. Whole nother ballgame. Congratulations on, on all this. I would say the massive, I won't say pivot, but you know, a change >>It >>Is and how you guys >>Operate. And you know, it's funny sometimes you think about the, the pivot to as a services benefiting the customer, but as someone who has supported designs over decades, you know, that ability to to to operate and at peak efficiency, to always keep in perfect operating order and to continuously change while still meeting the customer expectations that actually allows us to deliver innovation to our customers faster than when we are delivering warranted individual packaged products. >>Kirk, thanks for coming on Paul. Great conversation here. You know, the road to Quantum's gonna be paved through computing supercomputing software integrated workflows from the dorm room to the boardroom to Cube, bringing all the action here at Supercomputing 22. I'm Jacque Forer with Paul Gillin. Thanks for watching. We'll be right back.

>> Hello everyone and welcome back to theCUBE, where we're live from Dallas, Texas here at Super computing 2022. I am joined by my cohost David Nicholson. Thank you so much for being here with me and putting up with my trashy jokes all day. >> David: Thanks for having me. >> Yeah. Yes, we are going to be talking about AI this morning and I'm very excited that our guest has has set the stage for us here quite well. Please welcome Andrea Booker. Andrea, thank you so much for being here with us. >> Absolutely. Really excited to be here. >> Savannah: How's your show going so far? >> It's been really cool. I think being able to actually see people in person but also be able to see the latest technologies and and have the live dialogue that connects us in a different way than we have been able to virtually. >> Savannah: Oh yeah. No, it's all, it's all about that human connection and that it is driving towards our first question. So as we were just chit chatting. You said you are excited about making AI real and humanizing that. >> Andrea: Absolutely. >> What does that mean to you? >> So I think when it comes down to artificial intelligence it means so many different things to different people. >> Savannah: Absolutely. >> I was talking to my father the other day for context, he's in his late seventies, right. And I'm like, oh, artificial intelligence, this or that, and he is like, machines taking over the world. Right. >> Savannah: Very much the dark side. >> A little bit Terminator. And I'm like, well, not so much. So that was a fun discussion. And then you flip it to the other side and I'm talking to my 11 year old daughter and she's like, Alexa make sure you know my song preferences. Right. And that's the other very real way in which it's kind of impacting our lives. >> Savannah: Yeah. >> Right. There's so many different use cases that I don't think everyone understands how that resonates. Right. It's the simple things from, you know, recommend Jason Engines when you're on Amazon and it suggests just a little bit more. >> Oh yeah. >> I'm a little bit to you that one, right. To stuff that's more impactful in regards to getting faster diagnoses from your doctors. Right. Such peace of mind being able to actually hear that answer faster know how to go tackle something. >> Savannah: Great point, yeah. >> You know, and, and you know, what's even more interesting is from a business perspective, you know the projections are over the next five years about 90% of customers are going to use AI applications in in some fashion, right. >> Savannah: Wow. >> And the reason why that's interesting is because if you look at it today, only about 15% of of them are doing so. Right. So we're early. So when we're talking growth and the opportunity, it's, it's amazing. >> Yeah. I can, I can imagine. So when you're talking to customers, what are are they excited? Are they nervous? Are you educating them on how to apply Dell technology to advance their AI? Where are they off at because we're so early? >> Yeah well, I think they're figuring it out what it means to them, right? >> Yeah. Because there's so many different customer applications of it, right? You have those in which, you know, are on on the highest end in which that our new XE products are targeting that when they think of it. You know, I I, I like to break it down in this fashion in which artificial intelligence can actually save human lives, right? And this is those extreme workloads that I'm talking about. We actually can develop a Covid vaccine faster, right. Pandemic tracking, you know with global warming that's going on. And we have these extreme weather events with hurricanes and tsunamis and all these things to be able to get advanced notice to people to evacuate, to move. I mean, that's a pretty profound thing. And it is, you know so it could be used in that way to save lives, right? >> Absolutely. >> Which is it's the natural outgrowth of the speeds and feeds discussions that we might have internally. It's, it's like, oh, oh, speed doubled. Okay. Didn't it double last year? Yeah. Doubled last year too. So it's four x now. What does that mean to your point? >> Andrea: Yeah, yeah. >> Savannah: Yeah. >> Being able to deliver faster insight insights that are meaningful within a timeframe when otherwise they wouldn't be meaningful. >> Andrea: Yeah. >> If I tell you, within a two month window whether it's going to rain this weekend, that doesn't help you. In hindsight, we did the calculation and we figured out it's going to be 40 degrees at night last Thursday >> Knowing it was going to completely freeze here in Dallas to our definition in Texas but we prepare better to back to bring clothes. >> We were talking to NASA about that yesterday too. I mean, I think it's, it's must be fascinating for you to see your technology deployed in so many of these different use cases as well. >> Andrea: Absolutely, absolutely. >> It's got to be a part of one of the more >> Andrea: Not all of them are extreme, right? >> Savannah: Yeah. >> There's also examples of, you know natural language processing and what it does for us you know, the fact that it can break down communication barriers because we're global, right? We're all in a global environment. So if you think about conference calls in which we can actually clearly understand each other and what the intent is, and the messaging brings us closer in different ways as well. Which, which is huge, right? You don't want things lost in translation, right? So it, it helps on so many fronts. >> You're familiar with the touring test idea of, of, you know whether or not, you know, the test is if you can't discern within a certain number of questions that you're interacting with an AI versus a real human, then it passes the touring test. I think there should be a natural language processing test where basically I say, fine >> Andrea: You see if people was mad or not. >> You tell me, you tell me. >> I love this idea, David. >> You know? >> Yeah. This is great. >> Okay. AI lady, >> You tell me what I meant. >> Yeah, am I actually okay? >> How far from, that's silly example but how far do you think we are from that? I mean, what, what do you seeing out there in terms of things where you're kind of like, whoa, they did this with technology I'm responsible for, that was impressive. Or have you heard of things that are on the horizon that, you know, again, you, you know they're the big, they're the big issues. >> Yeah. >> But any, anything kind of interesting and little >> I think we're seeing it perfected and tweaked, right? >> Yeah. >> You know, I think going back to my daughter it goes from her screaming at Alexa 'cause she did hear her right the first time to now, oh she understands and modifies, right? Because we're constantly tweaking that technology to have a better experience with it. And it's a continuum, right? The voice to text capabilities, right. You know, I I'd say early on it got most of those words, right Right now it's, it's getting pretty dialed in. Right. >> Savannah: That's a great example. >> So, you know, little things, little things. >> Yeah. I think I, I love the, the this thought of your daughter as the example of training AI. What, what sort of, you get to look into the future quite a bit, I'm sure with your role. >> Andrea: Absolutely. >> Where, what is she going to be controlling next? >> The world. >> The world. >> No, I mean if you think about it just from a generational front, you know technology when I was her age versus what she's experiencing, she lives and breathes it. I mean, that's the generational change. So as these are coming out, you have new folks growing with it that it's so natural that they are so open to adopting it in their common everyday behaviors. Right? >> Savannah: Yeah. >> But they'd they never, over time they learn, oh well how it got there is 'cause of everything we're doing now, right. >> Savannah: Yeah. >> You know, one, one fun example, you know as my dad was like machines are taking over the world is not, not quite right. Even if when you look at manufacturing, there's a difference in using AI to go build a digital simulation of a factory to be able to optimize it and design it right before you're laying the foundation that saves cost, time and money. That's not taking people's jobs in that extreme event. >> Right. >> It's really optimizing for faster outcomes and, and and helping our customers get there which is better for everyone. >> Savannah: Yeah and safer too. I mean, using the factory example, >> Totally safer. >> You're able to model out what a workplace injury might be or what could happen. Or even the ergonomics of how people are using. >> Andrea: Yeah, should it be higher so they don't have to bend over? Right. >> Exactly. >> There's so many fantastic positive ways. >> Yeah so, so for your dad, you know, I mean it's going to help us, it's going to make, it's going to take away when I. Well I'm curious what you think, David when I think about AI, I think it's going to take out a lot of the boring things in life that, that we don't like >> Andrea: Absolutely. Doing. The monotony and the repetitive and let us optimize our creative selves maybe. >> However, some of the boring things are people's jobs. So, so it is, it it it will, it will it will push a transition in our economy in the global economy, in my opinion. That would be painful for some, for some period of time. But overall beneficial, >> Savannah: Yes. But definitely as you know, definitely there will be there will be people who will be disrupted and, you know. >> Savannah: Tech's always kind of done that. >> We No, but we need, I, I think we need to make sure that the digital divide doesn't get so wide that you know that, that people might not be negative, negatively affected. And, but, but I know that like organizations like Dell I believe what you actually see is, >> Andrea: Yeah. >> No, it's, it's elevating people. It's actually taking away >> Andrea: Easier. >> Yeah. It's, it's, it's allowing people to spend their focus on things that are higher level, more interesting tasks. >> Absolutely. >> David: So a net, A net good. But definitely some people disrupted. >> Yes. >> I feel, I feel disrupted. >> I was going to say, are, are we speaking for a friend or for ourselves here today on stage? >> I'm tired of software updates. So maybe if you could, if you could just standardize. So AI and ML. >> Andrea: Yeah. >> People talk about machine learning and, and, and and artificial intelligence. How would you differentiate the two? >> Savannah: Good question. >> It it, it's, it's just the different applications and the different workloads of it, right? Because you actually have artificial intelligence you have machine learning in which the learn it's learning from itself. And then you have like the deep learning in which it's diving deeper in in its execution and, and modeling. And it really depends on the workload applications as long as well as how large the data set is that's feeding into it for those applications. Right. And that really leads into the, we have to make sure we have the versatility in our offerings to be able to meet every dimension of that. Right. You know our XE products that we announced are really targeted for that, those extreme AI HPC workloads. Right. Versus we also have our entire portfolio products that we make sure we have GPU diversity throughout for the other applications that may be more edge centric or telco centric, right? Because AI isn't just these extreme situations it's also at the edge. It's in the cloud, it's in the data center, right? So we want to make sure we have, you know versatility in our offerings and we're really meeting customers where they're at in regards to the implementation and and the AI workloads that they have. >> Savannah: Let's dig in a little bit there. So what should customers expect with the next generation acceleration trends that Dell's addressing in your team? You had three exciting product announcements here >> Andrea: We did, we did. >> Which is very exciting. So you can talk about that a little bit and give us a little peek. >> Sure. So, you know, for, for the most extreme applications we have the XE portfolio that we built upon, right? We already had the XC 85 45 and we've expanded that out in a couple ways. The first of which is our very first XC 96 88 way offering in which we have Nvidia's H 100 as well as 8 100. 'Cause we want choice, right? A choice between performance, power, what really are your needs? >> Savannah: Is that the first time you've combined? >> Andrea: It's the first time we've had an eight way offering. >> Yeah. >> Andrea: But we did so mindful that the technology is emerging so much from a thermal perspective as well as a price and and other influencers that we wanted that choice baked into our next generation of product as we entered the space. >> Savannah: Yeah, yeah. >> The other two products we have were both in the four way SXM and OAM implementation and we really focus on diversifying and not only from vendor partnerships, right. The XC 96 40 is based off Intel Status Center max. We have the XE 86 40 that is going to be in or Nvidia's NB length, their latest H 100. But the key differentiator is we have air cold and we have liquid cold, right? So depending on where you are from that data center journey, I mean, I think one of the common themes you've heard is thermals are going up, performance is going up, TBPs are going up power, right? >> Savannah: Yeah. >> So how do we kind of meet in the middle to be able to accommodate for that? >> Savannah: I think it's incredible how many different types of customers you're able to accommodate. I mean, it's really impressive. I feel lucky we've gotten to see these products you're describing. They're here on the show floor. There's millions of dollars of hardware literally sitting in your booth. >> Andrea: Oh yes. >> Which is casual only >> Pies for you. Yeah. >> Yeah. We were, we were chatting over there yesterday and, and oh, which, which, you know which one of these is more expensive? And the response was, they're both expensive. It was like, okay perfect >> But assume the big one is more. >> David: You mentioned, you mentioned thermals. One of the things I've been fascinated by walking around is all of the different liquid cooling solutions. >> Andrea: Yeah. >> And it's almost hysterical. You look, you look inside, it looks like something from it's like, what is, what is this a radiator system for a 19th century building? >> Savannah: Super industrial? >> Because it looks like Yeah, yeah, exactly. Exactly, exactly. It's exactly the way to describe it. But just the idea that you're pumping all of this liquid over this, over this very, very valuable circuitry. A lot of the pitches have to do with, you know this is how we prevent disasters from happening based on the cooling methods. >> Savannah: Quite literally >> How, I mean, you look at the power requirements of a single rack in a data center, and it's staggering. We've talked about this a lot. >> Savannah: Yeah. >> People who aren't kind of EV you know electric vehicle nerds don't appreciate just how much power 90 kilowatts of power is for an individual rack and how much heat that can generate. >> Andrea: Absolutely. >> So Dell's, Dell's view on this is air cooled water cooled figure it out fit for for function. >> Andrea: Optionality, optionality, right? Because our customers are a complete diverse set, right? You have those in which they're in a data center 10 to 15 kilowatt racks, right? You're not going to plum a liquid cool power hungry or air power hungry thing in there, right? You might get one of these systems in, in that kind of rack you know, architecture, but then you have the middle ground the 50 to 60 is a little bit of choice. And then the super extreme, that's where liquid cooling makes sense to really get optimized and have the best density and, and the most servers in that solution. So that's why it really depends, and that's why we're taking that approach of diversity, of not only vendors and, and choice but also implementation and ways to be able to address that. >> So I think, again, again, I'm, you know electric vehicle nerd. >> Yeah. >> It's hysterical when you, when you mention a 15 kilowatt rack at kind of flippantly, people don't realize that's way more power than the average house is consuming. >> Andrea: Yeah, yeah >> So it's like your entire house is likely more like five kilowatts on a given day, you know, air conditioning. >> Andrea: Maybe you have still have solar panel. >> In Austin, I'm sorry >> California, Austin >> But, but, but yeah, it's, it's staggering amounts of power staggering amounts of heat. There are very real problems that you guys are are solving for to drive all of these top line value >> Andrea: Yeah. >> Propositions. It's super interesting. >> Savannah: It is super interesting. All right, Andrea, last question. >> Yes. Yes. >> Dell has been lucky to have you for the last decade. What is the most exciting part about you for the next decade of your Dell career given the exciting stuff that you get to work on. >> I think, you know, really working on what's coming our way and working with my team on that is is just amazing. You know, I can't say it enough from a Dell perspective I have the best team. I work with the most, the smartest people which creates such a fun environment, right? So then when we're looking at all this optionality and and the different technologies and, and, and you know partners we work with, you know, it's that coming together and figuring out what's that best solution and then bringing our customers along that journey. That kind of makes it fun dynamic that over the next 10 years, I think you're going to see fantastic things. >> David: So I, before, before we close, I have to say that's awesome because this event is also a recruiting event where some of these really really smarts students that are surrounding us. There were some sirens going off. They're having competitions back here. >> Savannah: Yeah, yeah, yeah. >> So, so when they hear that. >> Andrea: Where you want to be. >> David: That's exactly right. That's exactly right. >> Savannah: Well played. >> David: That's exactly right. >> Savannah: Well played. >> Have fun. Come on over. >> Well, you've certainly proven that to us. Andrea, thank you so much for being with us This was such a treat. David Nicholson, thank you for being here with me and thank you for tuning in to theCUBE a lot from Dallas, Texas. We are all things HPC and super computing this week. My name's Savannah Peterson and we'll see you soon. >> Andrea: Awesome.

>>Good afternoon friends, and welcome back to Supercomputing. We're live here at the Cube in Dallas. I'm joined by my co-host, David. My name is Savannah Peterson and our a fabulous guest. I feel like this is almost his show to a degree, given his role at Dell. He is the Vice President of HPC over at Dell. Raja Phan, thank you so much for being on the show with us. How you doing? >>Thank you guys. I'm doing okay. Good to be back in person. This is a great show. It's really filled in nicely today and, and you know, a lot of great stuff happening. >>It's great to be around all of our fellow hardware nerds. The Dell portfolio grew by three products. It it did, I believe. Can you give us a bit of an intro on >>That? Sure. Well, yesterday afternoon and yesterday evening, we had a series of events that announced our new AI portfolio, artificial intelligence portfolio, you know, which will really help scale where I think the world is going in the future with, with the creation of, of all this data and what we can do with it. So yeah, it was an exciting day for us. Yesterday we had a, a session over in a ballroom where we did a product announce and then in the evening had an unveil in our booth here at the SUPERCOMPUTE conference, which was pretty eventful cupcakes, you know, champagne drinks and, and most importantly, Yeah, I know. Good time. Did >>You get the invite? >>No, I, most importantly, some really cool new servers for our customers. >>Well, tell us about them. Yeah, so what's, what's new? What's in the news? >>Well, you know, as you think about artificial intelligence and what customers are, are needing to do and the way artificial intelligence is gonna change how, you know, frankly, the world works. We have now developed and designed new purpose-built hardware, new purpose-built servers for a variety of AI and artificial intelligence needs. We launched our first eight way, you know, Invidia H 100 a a 100 s XM product. Yesterday we launched a four u four way H 100 product yesterday and a two u fully liquid cooled intel data center, Max GPU server yesterday as well. So, you know, a full range of portfolio for a variety of customer needs, depending on their use cases, what they're trying to do, their infrastructure, we're able to now provide, you know, servers to and hardware that help, you know, meet those needs in those use cases. >>So I wanna double click, you just said something interesting, water cooled. >>Yeah. So >>Where does, at what point do you need to move in the direction of water cooling and, you know, I know you mentioned, you know, GPU centric, but, but, but talk about that, that balance between, you know, a density and what you can achieve with the power that's going into the system. Well, you system, >>It all depends on what the customers are trying to accommodate, right? I, I think that there's a dichotomy that's existing now between customers who have already or are planning liquid cooled infrastructures and power distribution to the rack. So you take those two together and if you have the power distribution to the rack, you wanna take advantage of the density to take advantage of the density you need to be able to cool the servers and therefore liquid cooling comes into play. Now you have other customers that either don't have the power to the rack or aren't ready for liquid cooling, and at that point, you know, they're not gonna want to take advantage. They can't take advantage of the density. So there's this dichotomy in products, and that's why we've got our XE 96 40, which is in two U dense liquid cooled, but we also have our XE 86 40, which is a four U air cold, right? Or liquid assisted air cold, right? So depending on where you are on your journey, whether it's power infrastructure, liquid cooling, infrastructure, we've got the right solution for you that, you know, meets your needs. You don't have to take advantage of the density, the expense of liquid cooling, unless you're ready to do that. Otherwise we've got this other option for you. And so that's really what dichotomy is beginning to exist in our customers infrastructures today. >>I was curious about that. So do you see, is there a category or a vertical that is more in the liquid cooling zone because that's a priority in terms of the density or >>Yeah, yeah. I mean, you've got your, your large HTC installations, right? Your large clusters that not only have the power have, you know, the liquid cooling density that they've built in, you've got, you know, federal government installations, you've got financial tech installations, you've got colos that are built for sustainability and density and space that, that can also take advantage of it. Then you've got others that are, you know, more enterprises, more in the mainstream of what they do, where, you know, they're not ready for that. So it just, it just depends on the scale of the customer that we're talking about and what they're trying to do and, and where they're, and where they're doing it. >>So we hear, you know, we hear at Supercomputing conference and HPC is sort of the kind of trailing mini version of supercomputing in a way where maybe you have someone who they don't need 2 million CPU cores, but maybe they need a hundred thousand CPU cores. So it's all a matter of scale. What is, can you identify kind of an HPC sweet spot right now as, as Dell customers are adopting the kinds of things that you just just announced? >>You know, I think >>How big are these clusters at this >>Point? Well, let, let me, let me hit something else first. Yeah, I think people talk about HPC as, as something really specific and what we're seeing now with the, you know, vast amount of data creation, the need for computational analytics, the need for artificial intelligence, the HPC is kind of morphing right into, into, you know, more and more general customer use cases. And so where before you used to think about HPC is research and academics and computational dynamics. Now, you know, there's a significant Venn diagram overlap with just regular artificial intelligence, right? And, and so that is beginning to change the nature of how we think about hpc. You think about the vast data that's being created. You've got data driven HPC where you're running computational analytics on this data that's giving you insights or outcomes or information. It's not just, Hey, I'm running, you know, physics calculations or astronomical how, you know, calculations. It is now expanding in a variety of ways where it's democratizing into, you know, customers who wouldn't actually talk about themselves as HVC customers. And when you meet with them, it's like, well, yeah, but your compute needs are actually looking like HPC customers. So let's talk to you about these products. Let's talk to you about these solutions, whether it's software solutions, hardware solutions, or even purpose-built hardware. Like we're, like we talked about that now becomes the new norm. >>Customer feedback and community engagement is big for you. I know this portfolio of products that was developed based on customer feedback, correct? Yep. >>So everything we do at Dell is customer driven, right? We want to be, we want to drive, you know, customer driven innovation, customer driven value to meet our customer's needs. So yeah, we spent a while, right, researching these products, researching these needs, understanding is this one product? Is it two products? Is it three products? Talking to our partners, right? Driving our own innovation in IP and then where they're going with their roadmaps to be able to deliver kind of a harmonized solution to customers. So yeah, it was a good amount of customer engagement. I know I was on the road quite a bit talking to customers, you know, one of our products was, you know, we almost named after one of our customers, right? I'm like, Hey, this, we've talked about this. This is what you said you wanted. Now he, he was representative of a group of customers and we validated that with other customers and it's also a way of me making sure he buys it. But great, great. Yeah, >>Sharing sales there, >>That was good. But you know, it's heavily customer driven and that's where understanding those use cases and where they fit drove the various products. And, you know, in terms of, in terms of capability, in terms of size, in terms of liquid versus air cooling, in terms of things like number of P C I E lanes, right? What the networking infrastructure was gonna look like. All customer driven, all designed to meet where customers are going in their artificial intelligence journey, in their AI journey. >>It feels really collaborative. I mean, you've got both the intel and the Nvidia GPU on your new product. There's a lot of CoLab between academics and the private sector. What has you most excited today about supercomputing? >>What it's going to enable? If you think about what artificial intelligence is gonna enable, it's gonna enable faster medical research, right? Genomics the next pandemic. Hopefully not anytime soon. We'll be able to diagnose, we'll be able to track it so much faster through artificial intelligence, right? That the data that was created in this last one is gonna be an amazing source of research to, to go address stuff like that in the future and get to the heart of the problem faster. If you think about a manufacturing and, and process improvement, you can now simulate your entire manufacturing process. You don't have to run physical pilots, right? You can simulate it all, get 90% of the way there, which means your, your either factory process will get reinvented factor faster, or a new factory can get up and running faster. Think about retail, how retail products are laid out. >>You can use media analytics to track how customers go through the store, what they're buying. You can lay things out differently. You're not gonna have in the future people going, you know, to test cell phone reception. Can you hear me now? Can you hear me? Now you can simulate where customers are patterns to ensure that the 5G infrastructure is set up, you know, to the maximum advantage. All of that through digital simulation, through digital twins, through media analytics, through natural language processing. Customer experience is gonna be better, communication's gonna be better. All of this stuff with, you know, using this data, training it, and then applying it is probably what excites me the most about super computing and, and really compute in the future. >>So on the hardware front, kind of digging down below the, the covers, you know, the surface a little more, Dell has been well known for democratizing things in it, making them available to, at a variety of levels. Never a one size fits all right? Company, these latest announcements would be fair to say. They represent sort of the tip of the spear in terms of high performance. What about, what about rpc regular performance computing? Where's, where's the overlap? Cause you know, we're in this season where we've got AMD and Intel leapfrogging one another, new bus architectures. The, the, you know, the, the connectivity that's plugged into these things are getting faster and faster and faster. So from a Dell perspective, where does my term rpc regular performance computing and, and HPC begin? Are you seeing people build stuff on kind of general purpose clusters also? >>Well, sure, I mean, you can run a, a good amount of artificial acceleration on, you know, high core count CPUs without acceleration, and you can do it with P C I E accelerators and then, then you can do it with some of the, the, the very specific high performance accelerators like that, the intel, you know, data center, Max GPUs or NVIDIAs a 100 or H 100. So there are these scale up opportunities. I mean, if you think about, >>You know, >>Our mission to democratize compute, not just hpc, but general compute is about making it easier for customers to implement, to get the value out of what they're trying to do. So we focus on that with, you know, reference designs or validated designs that take out a good amount of time that customers would have to do it on their own, right? We can cut by six to 12 months the ability for customers in, in, I'm gonna use an HPC example and then I'll come back to your, your regular performance compute by us doing the work us, you know, setting, you know, determining the configuration, determining the software packages, testing it, tuning it so that by the time it gets to the customer, they get to take advantage of the expertise of Dell Engineers Dell Scale and they are ready to go in a much faster point of view. >>The challenge with AI is, and you talk to customers, is they all know what it can lead to and the benefits of it. Sometimes they just dunno how to start. We are trying to make it easier for customers to start, whether it is using regular RPC or you know, non optimized, non specialized compute, or as you move up the value stack into compute capability, our goal is to make it easier for customers to start to get on their journey and to get to what they're trying to do faster. So where do I see, you know, regular performance compute, you know, it's, it's, you know, they go hand in hand, right? As you think about what customers are trying to do. And I think a lot of customers, like we talked about, don't actually think about what they're trying to do as high performance computing. They don't think of themselves as one of those specialized institutions as their hpc, but they're on this glide path to greater and greater compute needs and greater and greater compute attributes that that merge kind of regular performance computing and high performance computing to where it's hard to really draw the line, especially when you get to data driven HPC data's everywhere >>And so much data. And it sounds like a lot people are very early in this journey. From our conversation with Travis, I mean five AI programs per very large company or less at this point for 75% of customers, that's pretty wild. I mean you're, you're an educational coach, you're teachers, you're innovating on the hardware front, you're doing everything at Dell. Last question for you. You've been at 24 years, >>25 in this coming march. >>What has a company like that done to retain talent like you for more than two and a half decades? >>You know, for me and I, I, and I'd like to say I had an atypical journey, but I don't think I have right there, there has always been opportunity for me, right? You know, I started off as a quality engineer. A couple years later I'm living in Singapore running or you know, running services for Enterprise and apj. I come back couple years in Austin, then I'm in our Bangalore development center helping set that up. Then I come back, then I'm in our Taiwan development center helping with some of the work out there. And then I come back. There has always been the next opportunity before I could even think about am I ready for the next opportunity? Oh. And so for me, why would I leave? Right? Why would I do anything different given that there's always been the next opportunity? The other thing is jobs are what you make of it and Dell embraces that. So if there's something that needs to be done or there was an opportunity, or even in the case of our AI ML portfolio, we saw an opportunity, we reviewed it, we talked about it, and then we went all in. So that innovation, that opportunity, and then most of all the people at Dell, right? I can't ask to work with a better set of set of folks from from the top on down. >>That's fantastic. Yeah. So it's culture. >>It is culture B really, at the end of the day, it is culture. >>That's fantastic. Raja, thank you so much for being here with us. >>Thank you guys, the >>Show. >>Really appreciate it. >>Questions? Yeah, this was such a pleasure. And thank you for tuning into the Cube Live from Dallas here at Supercomputing. My name is Savannah Peterson, and we'll see y'all in just a little bit.

>>From the Cube Studios in Palo Alto in Boston, bringing you data driven insights from the cube and etr. This is breaking analysis with Dave Ante. >>Have you ever been driving on the highway and traffic suddenly slows way down and then after a little while it picks up again and you're cruising along and you're thinking, Okay, hey, that was weird. But it's clear sailing now. Off we go, only to find out in a bit that the traffic is building up ahead again, forcing you to pump the brakes as the traffic pattern ebbs and flows well. Welcome to the Seesaw economy. The fed induced fire that prompted an unprecedented rally in tech is being purposefully extinguished now by that same fed. And virtually every sector of the tech industry is having to reset its expectations, including the cloud segment. Hello and welcome to this week's Wikibon Cube Insights powered by etr. In this breaking analysis will review the implications of the earnings announcements from the big three cloud players, Amazon, Microsoft, and Google who announced this week. >>And we'll update you on our quarterly IAS forecast and share the latest from ETR with a focus on cloud computing. Now, before we get into the new data, we wanna review something we shared with you on October 14th, just a couple weeks back, this is sort of a, we told you it was coming slide. It's an XY graph that shows ET R'S proprietary net score methodology on the vertical axis. That's a measure of spending momentum, spending velocity, and an overlap or presence in the dataset that's on the X axis. That's really a measure of pervasiveness. In the survey, the table, you see that table insert there that shows Wiki Bond's Q2 estimates of IAS revenue for the big four hyperscalers with their year on year growth rates. Now we told you at the time, this is data from the July TW 22 ETR survey and the ETR hadn't released its October survey results at that time. >>This was just a couple weeks ago. And while we couldn't share the specific data from the October survey, we were able to get a glimpse and we depicted the slowdown that we saw in the October data with those dotted arrows kind of down into the right, we said at the time that we were seeing and across the board slowdown even for the big three cloud vendors. Now, fast forward to this past week and we saw earnings releases from Alphabet, Microsoft, and just last night Amazon. Now you may be thinking, okay, big deal. The ETR survey data didn't really tell us anything we didn't already know. But judging from the negative reaction in the stock market to these earnings announcements, the degree of softness surprised a lot of investors. Now, at the time we didn't update our forecast, it doesn't make sense for us to do that when we're that close to earning season. >>And now that all the big three ha with all the big four with the exception of Alibaba have announced we've, we've updated. And so here's that data. This chart lays out our view of the IS and PAs worldwide revenue. Basically it's cloud infrastructure with an attempt to exclude any SaaS revenue so we can make an apples to apples comparison across all the clouds. Now the reason that actual is in quotes is because Microsoft and Google don't report IAS revenue, but they do give us clues and kind of directional commentary, which we then triangulate with other data that we have from the channel and ETR surveys and just our own intelligence. Now the second column there after the vendor name shows our previous estimates for q3, and then next to that we show our actuals. Same with the growth rates. And then we round out the chart with that lighter blue color highlights, the full year estimates for revenue and growth. >>So the key takeaways are that we shaved about $4 billion in revenue and roughly 300 basis points of growth off of our full year estimates. AWS had a strong July but exited Q3 in the mid 20% growth rate year over year. So we're using that guidance, you know, for our Q4 estimates. Azure came in below our earlier estimates, but Google actually exceeded our expectations. Now the compression in the numbers is in our view of function of the macro demand climate, we've made every attempt to adjust for constant currency. So FX should not be a factor in this data, but it's sure you know that that ma the the, the currency effects are weighing on those companies income statements. And so look, this is the fundamental dynamic of a cloud model where you can dial down consumption when you need to and dial it up when you need to. >>Now you may be thinking that many big cloud customers have a committed level of spending in order to get better discounts. And that's true. But what's happening we think is they'll reallocate that spend toward, let's say for example, lower cost storage tiers or they may take advantage of better price performance processors like Graviton for example. That is a clear trend that we're seeing and smaller companies that were perhaps paying by the drink just on demand, they're moving to reserve instance models to lower their monthly bill. So instead of taking the easy way out and just spending more companies are reallocating their reserve capacity toward lower cost. So those sort of lower cost services, so they're spending time and effort optimizing to get more for, for less whereas, or get more for the same is really how we should, should, should phrase it. Whereas during the pandemic, many companies were, you know, they perhaps were not as focused on doing that because business was booming and they had a response. >>So they just, you know, spend more dial it up. So in general, as they say, customers are are doing more with, with the same. Now let's look at the growth dynamic and spend some time on that. I think this is important. This data shows worldwide quarterly revenue growth rates back to Q1 2019 for the big four. So a couple of interesting things. The data tells us during the pandemic, you saw both AWS and Azure, but the law of large numbers and actually accelerate growth. AWS especially saw progressively increasing growth rates throughout 2021 for each quarter. Now that trend, as you can see is reversed in 2022 for aws. Now we saw Azure come down a bit, but it's still in the low forties in terms of percentage growth. While Google actually saw an uptick in growth this last quarter for GCP by our estimates as GCP is becoming an increasingly large portion of Google's overall cloud business. >>Now, unfortunately Google Cloud continues to lose north of 850 million per quarter, whereas AWS and Azure are profitable cloud businesses even though Alibaba is suffering its woes from China. And we'll see how they come in when they report in mid-November. The overall hyperscale market grew at 32% in Q3 in terms of worldwide revenue. So the slowdown isn't due to the repatriation or competition from on-prem vendors in our view, it's a macro related trend. And cloud will continue to significantly outperform other sectors despite its massive size. You know, on the repatriation point, it just still doesn't show up in the data. The A 16 Z article from Sarah Wong and Martin Martin Kasa claiming that repatriation was inevitable as a means to lower cost of good sold for SaaS companies. You know, while that was thought provoking, it hasn't shown up in the numbers. And if you read the financial statements of both AWS and its partners like Snowflake and you dig into the, to the, to the quarterly reports, you'll see little notes and comments with their ongoing negotiations to lower cloud costs for customers. >>AWS and no doubt execs at Azure and GCP understand that the lifetime value of a customer is worth much more than near term gross margin. And you can expect the cloud vendors to strike a balance between profitability, near term profitability anyway and customer attention. Now, even though Google Cloud platform saw accelerated growth, we need to put that in context for you. So GCP, by our estimate, has now crossed over the $3 billion for quarter market actually did so last quarter, but its growth rate accelerated to 42% this quarter. And so that's a good sign in our view. But let's do a quick little comparison with when AWS and Azure crossed the $3 billion mark and compare their growth rates at the time. So if you go back to to Q2 2016, as we're showing in this chart, that's around the time that AWS hit 3 billion per quarter and at the same time was growing at 58%. >>Azure by our estimates crossed that mark in Q4 2018 and at that time was growing at 67%. Again, compare that to Google's 42%. So one would expect Google's growth rate would be higher than its competitors at this point in the MO in the maturity of its cloud, which it's, you know, it's really not when you compared to to Azure. I mean they're kind of con, you know, comparable now but today, but, but you'll go back, you know, to that $3 billion mark. But more so looking at history, you'd like to see its growth rate at this point of a maturity model at least over 50%, which we don't believe it is. And one other point on this topic, you know, my business friend Matt Baker from Dell often says it's not a zero sum game, meaning there's plenty of opportunity exists to build value on top of hyperscalers. >>And I would totally agree it's not a dollar for dollar swap if you can continue to innovate. But history will show that the first company in makes the most money. Number two can do really well and number three tends to break even. Now maybe cloud is different because you have Microsoft software estate and the power behind that and that's driving its IAS business and Google ads are funding technology buildouts for, for for Google and gcp. So you know, we'll see how that plays out. But right now by this one measurement, Google is four years behind Microsoft in six years behind aws. Now to the point that cloud will continue to outpace other markets, let's, let's break this down a bit in spending terms and see why this claim holds water. This is data from ET r's latest October survey that shows the granularity of its net score or spending velocity metric. >>The lime green is new adoptions, so they're adding the platform, the forest green is spending more 6% or more. The gray bars spending is flat plus or minus, you know, 5%. The pinkish colors represent spending less down 6% or worse. And the bright red shows defections or churn of the platform. You subtract the reds from the greens and you get what's called net score, which is that blue dot that you can see on each of the bars. So what you see in the table insert is that all three have net scores above 40%, which is a highly elevated measure. Microsoft's net scores above 60% AWS well into the fifties and GCP in the mid forties. So all good. Now what's happening with all three is more customers are keep keeping their spending flat. So a higher percentage of customers are saying, our spending is now flat than it was in previous quarters and that's what's accounting for the compression. >>But the churn of all three, even gcp, which we reported, you know, last quarter from last quarter survey was was five x. The other two is actually very low in the single digits. So that might have been an anomaly. So that's a very good sign in our view. You know, again, customers aren't repatriating in droves, it's just not a trend that we would bet on, maybe makes for a FUD or you know, good marketing head, but it's just not a big deal. And you can't help but be impressed with both Microsoft and AWS's performance in the survey. And as we mentioned before, these companies aren't going to give up customers to try and preserve a little bit of gross margin. They'll do what it takes to keep people on their platforms cuz they'll make up for it over time with added services and improved offerings. >>Now, once these companies acquire a customer, they'll be very aggressive about keeping them. So customers take note, you have negotiating leverage, so use it. Okay, let's look at another cut at the cloud market from the ETR data set. Here's the two dimensional view, again, it's back, it's one of our favorites. Net score or spending momentum plotted against presence. And the data set, that's the x axis net score on the, on the vertical axis, this is a view of et r's cloud computing sector sector. You can see we put that magic 40% dotted red line in the table showing and, and then that the table inserts shows how the data are plotted with net score against presence. I e n in the survey, notably only the big three are above the 40% line of the names that we're showing here. The oth there, there are others. >>I mean if you put Snowflake on there, it'd be higher than any of these names, but we'll dig into that name in a later breaking analysis episode. Now this is just another way of quantifying the dominance of AWS and Azure, not only relative to Google, but the other cloud platforms out there. So we've, we've taken the opportunity here to plot IBM and Oracle, which both own a public cloud. Their performance is largely a reflection of them migrating their install bases to their respective public clouds and or hybrid clouds. And you know, that's fine, they're in the game. That's a point that we've made, you know, a number of times they're able to make it through the cloud, not whole and they at least have one, but they simply don't have the business momentum of AWS and Azure, which is actually quite impressive because AWS and Azure are now as large or larger than IBM and Oracle. >>And to show this type of continued growth that that that Azure and AWS show at their size is quite remarkable and customers are starting to recognize the viability of on-prem hi, you know, hybrid clouds like HPE GreenLake and Dell's apex. You know, you may say, well that's not cloud, but if the customer thinks it is and it was reporting in the survey that it is, we're gonna continue to report this view. You know, I don't know what's happening with H P E, They had a big down tick this quarter and I, and I don't read too much into that because their end is still pretty small at 53. So big fluctuations are not uncommon with those types of smaller ends, but it's over 50. So, you know, we did notice a a a negative within a giant public and private sector, which is often a, a bellwether giant public private is big public companies and large private companies like, like a Mars for example. >>So it, you know, it looks like for HPE it could be an outlier. We saw within the Fortune 1000 HPE E'S cloud looked actually really good and it had good spending momentum in that sector. When you di dig into the industry data within ETR dataset, obviously we're not showing that here, but we'll continue to monitor that. Okay, so where's this Leave us. Well look, this is really a tactical story of currency and macro headwinds as you can see. You know, we've laid out some of the points on this slide. The action in the stock market today, which is Friday after some of the soft earnings reports is really robust. You know, we'll see how it ends up in the day. So maybe this is a sign that the worst is over, but we don't think so. The visibility from tech companies is murky right now as most are guiding down, which indicates that their conservative outlook last quarter was still too optimistic. >>But as it relates to cloud, that platform is not going anywhere anytime soon. Sure, there are potential disruptors on the horizon, especially at the edge, but we're still a long ways off from, from the possibility that a new economic model emerges from the edge to disrupt the cloud and the opportunities in the cloud remain strong. I mean, what other path is there? Really private cloud. It was kind of a bandaid until the on-prem guys could get their a as a service models rolled out, which is just now happening. The hybrid thing is real, but it's, you know, defensive for the incumbents until they can get their super cloud investments going. Super cloud implying, capturing value above the hyperscaler CapEx, you know, call it what you want multi what multi-cloud should have been, the metacloud, the Uber cloud, whatever you like. But there are opportunities to play offense and that's clearly happening in the cloud ecosystem with the likes of Snowflake, Mongo, Hashi Corp. >>Hammer Spaces is a startup in this area. Aviatrix, CrowdStrike, Zeke Scaler, Okta, many, many more. And even the projects we see coming out of enterprise players like Dell, like with Project Alpine and what Pure Storage is doing along with a number of other of the backup vendors. So Q4 should be really interesting, but the real story is the investments that that companies are making now to leverage the cloud for digital transformations will be paying off down the road. This is not 1999. We had, you know, May might have had some good ideas and admittedly at a lot of bad ones too, but you didn't have the infrastructure to service customers at a low enough cost like you do today. The cloud is that infrastructure and so far it's been transformative, but it's likely the best is yet to come. Okay, let's call this a rap. >>Many thanks to Alex Morrison who does production and manages the podcast. Also Can Schiffman is our newest edition to the Boston Studio. Kristin Martin and Cheryl Knight helped get the word out on social media and in our newsletters. And Rob Ho is our editor in chief over@siliconangle.com, who does some wonderful editing for us. Thank you. Remember, all these episodes are available as podcasts. Wherever you listen, just search breaking analysis podcast. I publish each week on wiki bond.com at silicon angle.com. And you can email me at David dot valante@siliconangle.com or DM me at Dante or comment on my LinkedIn posts. And please do checkout etr.ai. They got the best survey data in the enterprise tech business. This is Dave Valante for the Cube Insights powered by etr. Thanks for watching and we'll see you next time on breaking analysis.

>>Hello everyone. My name is Savannah Peterson, coming to you from the Cube Studios in Palo Alto, California. We're gonna be talking about super computing an event coming up in Dallas this November. I'm joined by the infamous John Furrier. John, thank you for joining me today. >>Great to see you. You look great. >>Thank you. You know, I don't know if anyone's checked out the conference colors for for supercomputing, but I happen to match the accent pink and you are rocking their blue. I got the so on >>There it is. >>We don't always tie our fashion to the tech ladies and gentlemen, but we're, we're a new crew here at, at the Cube and I think it should be a thing that we, that we do moving forward. So John, you are a veteran and I'm a newbie to Supercomputing. It'll be my first time in Dallas. What can I expect? >>Basically it's a hardware nerd fest, basically of the top >>Minds. So it's like ces, >>It's like CES for like, like hardware. It's like really the coolest show if you're into like high performance computing, I mean game changing kind of, you know, physics, laws of physics and hardware. This is the show. I mean this is like the confluence of it's, it's really old. It started when I graduated college, 1988. And back then it was servers, you know, super computing was a concept. It was usually a box and it was hardware, big machine. And it would crank out calculations, simulations and, and you know, you were limited to the processor and all the, the systems components, just the architecture system software, I mean it was technical, it was, it was, it was hardware, it was fun. Very cool back then. But you know, servers got bigger and you got grid computing, you got clusters and then it be really became high performance computing concept. But that's now multiple disciplines, hence it's been around for a while. It's evergreen in the sense it's always changing, attracting talent, students, mentors, scholarships. It's kind of big funding and big companies are behind it. Wl, look, Packard Enterprise, Dell computing startups and hardware matters more than ever. You look at the cloud, what Amazon and, and the cloud hyper skills, they're building the fastest chips down at the root level hardware's back. And I think this show's gonna show a lot of that. >>There isn't the cloud without hardware to support it. So I think it's important that we're all headed here. You, you touched on the evolution there from super computing in the beginning and complex calculations and processing to what we're now calling high performance computing. Can you go a little bit deeper? What is, what does that mean, What does that cover? >>Well, I mean high high performance computing and now is a range of different things. So the super computing needs to be like a thing now. You got clusters and grids that's distributed, you got a backbone, it's well architected and there's a lot involved. This network and security, there's system software. So now it's multiple disciplines in high performance computing and you can do a lot more. And now with cloud computing you can do simulations, say drug research or drug testing. You have, you can do all kinds of cal genome sequencing. I mean the, the, the ability to actually use compute right now is so awesome. The field's got, you know, is rebooting itself in real time, you know, pun intended. So it's like really, it's really good thing. More compute makes things go faster, especially with more data. So high encapsulates all the, the engineering behind it. A lot of robotics coming in the future. All this is gonna be about the edge. You're seeing a lot more hardware making noise around things that are new use cases. You know, your Apple watch that's, you know, very high functionality to a cell tower. Cars again, high performance computing hits all these new use cases. >>It yeah, it absolutely does. I mean high performance computing touches pretty much every aspect of our lives in some capacity at this point and including how we drive our cars to, to get to the studio here in Palo Alto. Do you think that we're entering an era when all of this is about to scale exponentially versus some of the linear growth that we've seen in the space due to the frustration of some of us in the hardware world the last five to 10 years? >>Well, it's a good question. I think everyone has, has seen Moore's law, right? They've seen, you know, that's been, been well documented. I think the world's changing. You're starting to see the trend of more hardware that's specialized like DPU are now out there. You got GPUs, you're seeing the, you know, Bolton hardware, accelerators, you got chi layer software abstraction. So essentially it's, it's a software industry that's in impacted the hardware. So hardware really is software too and it's a lot more software in there. Again, system software's a lot different. So it's, I think it's, it's boomerang back up. I think there's an inflection point because if you look at cyber security and physical devices, they all kind of play in this world where they need compute at the edge. Edge is gonna be a big use case. You can see Dell Technologies there. I think they have a really big opportunity to sell more hardware. H WL Packard Enterprise, others, these are old school >>Box companies. >>So I think the distributed nature of cloud and hybrid and multi-cloud coming on earth and in space means a lot more high performance computing will be sold and and implemented. So that's my take on it. I just think I'm very bullish on this space. >>Ah, yes. And you know me, I get really personally excited about the edge. So I can't wait to see what's in store. Thinking about the variety of vendors and companies, I know we see some of the biggest players in the space. Who are you most excited to see in Dallas coming up in November? >>You know, HP enter, you look back on enterprise has always been informally, HP huge on hpc, Dell and hpe. This is their bread and butter. They've been making servers from many computers to Intel based servers now to arm-based servers and and building their own stuff. So you're gonna start to see a lot more of those players kind of transforming. We're seeing both Dell and HPE transforming and you're gonna see a lot of chip companies there. I'm sure you're gonna see a lot more younger talent, a lot, a lot of young talent are coming, like I said, robotics and the new physical world we're living in is software and IP connected. So it's not like the old school operational technology systems. You have, you know, IP enabled devices that opens up all kinds of new challenges around security vulnerabilities and also capabilities. So it's, I think it's gonna be a lot younger crowd I think than we usually see this year. And you seeing a lot of students, and again universities participating. >>Yeah, I noticed that they have a student competition that's a, a big part of the event. I'm curious when you say younger, are you expecting to see new startups and some interesting players in the space that maybe we haven't heard of before? >>I think we might see more use cases that are different. When I say younger, I don't mean so much on the Democratic but young, younger i new ideas, right? So I think you're gonna see a lot of smart people coming in that might not have the, you know, the, the lens from when it started in 1988 and remember 1988 to now so much has changed. In fact we just did AEG a segment on the cube called does hardware matter because for many, many years, over the past decades, like hardware doesn't matter, it's all about the cloud and we're not a box company. Boxes are coming back. So you know, that's gonna be music for for into the years of Dell Technologies HPE the world. But like hardware does matter and this, you're starting to see that here. So I think you'll see a lot a younger thinking, a little bit different thinking. You're gonna start to see more conf confluence of like machine learning. You're gonna see security and again, I mentioned space. These are areas where you're starting to see where hardware and high performance is gonna be part of all the new systems. And so it's just gonna be industrial to i o is gonna be a big part too. >>Yeah, absolutely. I, I was thinking about some of these use cases, I don't know if you heard about the new drones they're sending up into hurricanes, but it takes literally what a, what an edge use case, how durable it has to be and the rapid processing that has to happen as a result of the software. So many exciting things we could dive down the rabbit hole with. What can folks expect to see here on the cube during supercomputing? >>Well we're gonna talk to a lot of the leaders on the cube from this community, mostly from the practitioner's side, expert side. We're gonna have, we're gonna hear from Dell Technologies, Hewlett Packer Enterprise and a lot of other executives who are investing wanna find out what they're investing in, how it ties into the cloud. Cuz the cloud has become a great environment for multi-cloud with more grid-like capability and what's the future? Where's the hardware going, what's the evolution of the components? How is it being designed? And then how does it fit into the overall software open source market that's booming right now that cloud technology has been doing. So I wanna, we wanna try to connect the dots on the cube. >>Great. So we have a very easy task ahead of us. Hopefully everyone will enjoy the content and the guests that we leaving to, to our table here from from the show floor. When we think about, do you think there's gonna be any trends that we've seen in the past that might not be there? Has anything phased out of the super computing world? You're someone who's been around this game for a while? >>Yeah, that's a good question. I think the game is still the same but the players might shift a little bit. So for example, a lot more with the supply chain challenges you might see that impact. We're gonna watch that very closely to find out what components are gonna be in what. But I'm thinking more about system architecture because the use case is interesting. You know, I was talking to Dell folks about this, you know they have standard machines but then they have use cases for how do you put the equivalent of a data center next to say a mobile cell tower because now you have the capability for wireless and 5g. You gotta put the data center like CAPA speed functionality and capacity for compute at these edges in a smaller form factor. How do you do that? How do you handle all the IO and that's gonna be all these, all these things are nerd again nerdy conversations but they're gonna be very relevant. So I like the new use cases of power more compute in places that they've never been before. So I think that to me is where the exciting part is. Like okay, who's got the, who's really got the real deal going on here? That's something be the fun part. >>I think it allows for a new era in innovation and I don't say that lightly, but when we can put processing power literally anywhere, it certainly thrills the minds of hardware nerds. Like me, my I'm OG hardware, I know you are too, I won't reveal your roots, but I got my, my start in in hardware product design back in the day. So I can't wait >>To, well you then, you know, you know hardware, when you talk about processing power and memory, you can never have enough compute and memory. It's like, it's like the internet bandwidth. You can't never have enough bandwidth. Bandwidth, right? Network power, compute power, you know, bring it on, you know, >>Even battery life, simple things like that when it comes to hardware, especially when we're talking about being on the edge. It's just like our cell phones. Our cell phones are an edge device >>And we get, well when you combine cloud on premises hybrid and then multi-cloud and edge, you now have the ability to get compute at capabilities that were never fathom in the past. And most of the creativity is limited to the hardware capability and now that's gonna be unleashed. I think a lot of creativity. That's again back to the use cases and yes, again, you're gonna start to see more industrial stuff come out edge and I, I, I love the edge. I think this is a great use case for the edge. >>Me too. A absolutely so bold claim. I don't know if you're ready to, to draw a line in the sand. Are we on the precipice of a hardware renaissance? >>Definitely no doubt about it. When we, when we did the does hardware matter segment, it was really kind of to test, you know, everyone's talking about the cloud, but cloud also runs hardware. You look at what AWS is doing, for instance, all the innovation, it's at robotics, it's at that at the physical level, pro, pro, you know you got physics, I mean they're working on so low level engineering and the speed difference. I think from a workload standpoint, whoever can get the best out of the physics and the materials will have a winning formula. Cause you can have a lot more processing specialized processors. That's a new system architecture. And so to me the hype, definitely the HPC high press computing fits perfectly into that construct because now you got more power so that software can be more capable. And I think at the end of the day, nobody wants to write a app on our workload to run on on bad hardware, not have enough compute. >>Amen to that. On that note, John, how can people get in touch with you and us here on the show in anticipation of supercomputing? >>Of course hit the cube handle at the cube at Furrier, my last name F U R R I E R. And of course my dms are always open for scoops and story ideas. And go to silicon angle.com and the cube.net. >>Fantastic. John, I look forward to joining you in Dallas and thank you for being here with me today. And thank you all for joining us for this super computing preview. My name is Savannah Peterson and we're here on the cube live. Well not live prerecorded from Palo Alto. And look forward to seeing you for some high performance computing excitement soon.

>> From theCUBE Studios in Palo Alto and Boston, bringing you data-driven insights from theCUBE and ETR, this is Breaking Analysis with Dave Vellante. >> This past week we saw two of the Big 3 cloud providers present the latest update on their respective cloud visions, their business progress, their announcements and innovations. The content at these events had many overlapping themes, including modern cloud infrastructure at global scale, applying advanced machine intelligence, AKA AI, end-to-end data platforms, collaboration software. They talked a lot about the future of work automation. And they gave us a little taste, each company of the Metaverse Web 3.0 and much more. Despite these striking similarities, the differences between these two cloud platforms and that of AWS remains significant. With Microsoft leveraging its massive application software footprint to dominate virtually all markets and Google doing everything in its power to keep up with the frenetic pace of today's cloud innovation, which was set into motion a decade and a half ago by AWS. Hello and welcome to this week's Wikibon CUBE Insights, powered by ETR. In this Breaking Analysis, we unpack the immense amount of content presented by the CEOs of Microsoft and Google Cloud at Microsoft Ignite and Google Cloud Next. We'll also quantify with ETR survey data the relative position of these two cloud giants in four key sectors: cloud IaaS, BI analytics, data platforms and collaboration software. Now one thing was clear this past week, hybrid events are the thing. Google Cloud Next took place live over a 24-hour period in six cities around the world, with the main gathering in New York City. Microsoft Ignite, which normally is attended by 30,000 people, had a smaller event in Seattle, in person with a virtual audience around the world. AWS re:Invent, of course, is much different. Yes, there's a virtual component at re:Invent, but it's all about a big live audience gathering the week after Thanksgiving, in the first week of December in Las Vegas. Regardless, Satya Nadella keynote address was prerecorded. It was highly produced and substantive. It was visionary, energetic with a strong message that Azure was a platform to allow customers to build their digital businesses. Doing more with less, which was a key theme of his. Nadella covered a lot of ground, starting with infrastructure from the compute, highlighting a collaboration with Arm-based, Ampere processors. New block storage, 60 regions, 175,000 miles of fiber cables around the world. He presented a meaningful multi-cloud message with Azure Arc to support on-prem and edge workloads, as well as of course the public cloud. And talked about confidential computing at the infrastructure level, a theme we hear from all cloud vendors. He then went deeper into the end-to-end data platform that Microsoft is building from the core data stores to analytics, to governance and the myriad tooling Microsoft offers. AI was next with a big focus on automation, AI, training models. He showed demos of machines coding and fixing code and machines automatically creating designs for creative workers and how Power Automate, Microsoft's RPA tooling, would combine with Microsoft Syntex to understand documents and provide standard ways for organizations to communicate with those documents. There was of course a big focus on Azure as developer cloud platform with GitHub Copilot as a linchpin using AI to assist coders in low-code and no-code innovations that are coming down the pipe. And another giant theme was a workforce transformation and how Microsoft is using its heritage and collaboration and productivity software to move beyond what Nadella called productivity paranoia, i.e., are remote workers doing their jobs? In a world where collaboration is built into intelligent workflows, and he even showed a glimpse of the future with AI-powered avatars and partnerships with Meta and Cisco with Teams of all firms. And finally, security with a bevy of tools from identity, endpoint, governance, et cetera, stressing a suite of tools from a single provider, i.e., Microsoft. So a couple points here. One, Microsoft is following in the footsteps of AWS with silicon advancements and didn't really emphasize that trend much except for the Ampere announcement. But it's building out cloud infrastructure at a massive scale, there is no debate about that. Its plan on data is to try and provide a somewhat more abstracted and simplified solutions, which differs a little bit from AWS's approach of the right database tool, for example, for the right job. Microsoft's automation play appears to provide simple individual productivity tools, kind of a ground up approach and make it really easy for users to drive these bottoms up initiatives. We heard from UiPath that forward five last month, a little bit of a different approach of horizontal automation, end-to-end across platforms. So quite a different play there. Microsoft's angle on workforce transformation is visionary and will continue to solidify in our view its dominant position with Teams and Microsoft 365, and it will drive cloud infrastructure consumption by default. On security as well as a cloud player, it has to have world-class security, and Azure does. There's not a lot of debate about that, but the knock on Microsoft is Patch Tuesday becomes Hack Wednesday because Microsoft releases so many patches, it's got so much Swiss cheese in its legacy estate and patching frequently, it becomes a roadmap and a trigger for hackers. Hey, patch Tuesday, these are all the exploits that you can go after so you can act before the patches are implemented. And so it's really become a problem for users. As well Microsoft is competing with many of the best-of-breed platforms like CrowdStrike and Okta, which have market momentum and appear to be more attractive horizontal plays for customers outside of just the Microsoft cloud. But again, it's Microsoft. They make it easy and very inexpensive to adopt. Now, despite the outstanding presentation by Satya Nadella, there are a couple of statements that should raise eyebrows. Here are two of them. First, as he said, Azure is the only cloud that supports all organizations and all workloads from enterprises to startups, to highly regulated industries. I had a conversation with Sarbjeet Johal about this, to make sure I wasn't just missing something and we were both surprised, somewhat, by this claim. I mean most certainly AWS supports more certifications for example, and we would think it has a reasonable case to dispute that claim. And the other statement, Nadella made, Azure is the only cloud provider enabling highly regulated industries to bring their most sensitive applications to the cloud. Now, reasonable people can debate whether AWS is there yet, but very clearly Oracle and IBM would have something to say about that statement. Now maybe it's not just, would say, "Oh, they're not real clouds, you know, they're just going to hosting in the cloud if you will." But still, when it comes to mission-critical applications, you would think Oracle is really the the leader there. Oh, and Satya also mentioned the claim that the Edge browser, the Microsoft Edge browser, no questions asked, he said, is the best browser for business. And we could see some people having some questions about that. Like isn't Edge based on Chrome? Anyway, so we just had to question these statements and challenge Microsoft to defend them because to us it's a little bit of BS and makes one wonder what else in such as awesome keynote and it was awesome, it was hyperbole. Okay, moving on to Google Cloud Next. The keynote started with Sundar Pichai doing a virtual session, he was remote, stressing the importance of Google Cloud. He mentioned that Google Cloud from its Q2 earnings was on a $25-billion annual run rate. What he didn't mention is that it's also on a 3.6 billion annual operating loss run rate based on its first half performance. Just saying. And we'll dig into that issue a little bit more later in this episode. He also stressed that the investments that Google has made to support its core business and search, like its global network of 22 subsea cables to support things like, YouTube video, great performance obviously that we all rely on, those innovations there. Innovations in BigQuery to support its search business and its threat analysis that it's always had and its AI, it's always been an AI-first company, he's stressed, that they're all leveraged by the Google Cloud Platform, GCP. This is all true by the way. Google has absolutely awesome tech and the talk, as well as his talk, Pichai, but also Kurian's was forward thinking and laid out a vision of the future. But it didn't address in our view, and I talked to Sarbjeet Johal about this as well, today's challenges to the degree that Microsoft did and we expect AWS will at re:Invent this year, it was more out there, more forward thinking, what's possible in the future, somewhat less about today's problem, so I think it's resonates less with today's enterprise players. Thomas Kurian then took over from Sundar Pichai and did a really good job of highlighting customers, and I think he has to, right? He has to say, "Look, we are in this game. We have customers, 9 out of the top 10 media firms use Google Cloud. 8 out of the top 10 manufacturers. 9 out of the top 10 retailers. Same for telecom, same for healthcare. 8 out of the top 10 retail banks." He and Sundar specifically referenced a number of companies, customers, including Avery Dennison, Groupe Renault, H&M, John Hopkins, Prudential, Minna Bank out of Japan, ANZ bank and many, many others during the session. So you know, they had some proof points and you got to give 'em props for that. Now like Microsoft, Google talked about infrastructure, they referenced training processors and regions and compute optionality and storage and how new workloads were emerging, particularly data-driven workloads in AI that required new infrastructure. He explicitly highlighted partnerships within Nvidia and Intel. I didn't see anything on Arm, which somewhat surprised me 'cause I believe Google's working on that or at least has come following in AWS's suit if you will, but maybe that's why they're not mentioning it or maybe I got to do more research there, but let's park that for a minute. But again, as we've extensively discussed in Breaking Analysis in our view when it comes to compute, AWS via its Annapurna acquisition is well ahead of the pack in this area. Arm is making its way into the enterprise, but all three companies are heavily investing in infrastructure, which is great news for customers and the ecosystem. We'll come back to that. Data and AI go hand in hand, and there was no shortage of data talk. Google didn't mention Snowflake or Databricks specifically, but it did mention, by the way, it mentioned Mongo a couple of times, but it did mention Google's, quote, Open Data cloud. Now maybe Google has used that term before, but Snowflake has been marketing the data cloud concept for a couple of years now. So that struck as a shot across the bow to one of its partners and obviously competitor, Snowflake. At BigQuery is a main centerpiece of Google's data strategy. Kurian talked about how they can take any data from any source in any format from any cloud provider with BigQuery Omni and aggregate and understand it. And with the support of Apache Iceberg and Delta and Hudi coming in the future and its open Data Cloud Alliance, they talked a lot about that. So without specifically mentioning Snowflake or Databricks, Kurian co-opted a lot of messaging from these two players, such as life and tech. Kurian also talked about Google Workspace and how it's now at 8 million users up from 6 million just two years ago. There's a lot of discussion on developer optionality and several details on tools supported and the open mantra of Google. And finally on security, Google brought out Kevin Mandian, he's a CUBE alum, extremely impressive individual who's CEO of Mandiant, a leading security service provider and consultancy that Google recently acquired for around 5.3 billion. They talked about moving from a shared responsibility model to a shared fate model, which is again, it's kind of a shot across AWS's bow, kind of shared responsibility model. It's unclear that Google will pay the same penalty if a customer doesn't live up to its portion of the shared responsibility, but we can probably assume that the customer is still going to bear the brunt of the pain, nonetheless. Mandiant is really interesting because it's a services play and Google has stated that it is not a services company, it's going to give partners in the channel plenty of room to play. So we'll see what it does with Mandiant. But Mandiant is a very strong enterprise capability and in the single most important area security. So interesting acquisition by Google. Now as well, unlike Microsoft, Google is not competing with security leaders like Okta and CrowdStrike. Rather, it's partnering aggressively with those firms and prominently putting them forth. All right. Let's get into the ETR survey data and see how Microsoft and Google are positioned in four key markets that we've mentioned before, IaaS, BI analytics, database data platforms and collaboration software. First, let's look at the IaaS cloud. ETR is just about to release its October survey, so I cannot share the that data yet. I can only show July data, but we're going to give you some directional hints throughout this conversation. This chart shows net score or spending momentum on the vertical axis and overlap or presence in the data, i.e., how pervasive the platform is. That's on the horizontal axis. And we've inserted the Wikibon estimates of IaaS revenue for the companies, the Big 3. Actually the Big 4, we included Alibaba. So a couple of points in this somewhat busy data chart. First, Microsoft and AWS as always are dominant on both axes. The red dotted line there at 40% on the vertical axis. That represents a highly elevated spending velocity and all of the Big 3 are above the line. Now at the same time, GCP is well behind the two leaders on the horizontal axis and you can see that in the table insert as well in our revenue estimates. Now why is Azure bigger in the ETR survey when AWS is larger according to the Wikibon revenue estimates? And the answer is because Microsoft with products like 365 and Teams will often be considered by respondents in the survey as cloud by customers, so they fit into that ETR category. But in the insert data we're stripping out applications and SaaS from Microsoft and Google and we're only isolating on IaaS. The other point is when you take a look at the early October returns, you see downward pressure as signified by those dotted arrows on every name. The only exception was Dell, or Dell and IBM, which showing slightly improved momentum. So the survey data generally confirms what we know that AWS and Azure have a massive lead and strong momentum in the marketplace. But the real story is below the line. Unlike Google Cloud, which is on pace to lose well over 3 billion on an operating basis this year, AWS's operating profit is around $20 billion annually. Microsoft's Intelligent Cloud generated more than $30 billion in operating income last fiscal year. Let that sink in for a moment. Now again, that's not to say Google doesn't have traction, it does and Kurian gave some nice proof points and customer examples in his keynote presentation, but the data underscores the lead that Microsoft and AWS have on Google in cloud. And here's a breakdown of ETR's proprietary net score methodology, that vertical axis that we showed you in the previous chart. It asks customers, are you adopting the platform new? That's that lime green. Are you spending 6% or more? That's the forest green. Is you're spending flat? That's the gray. Is you're spending down 6% or worse? That's the pinkest color. Or are you replacing the platform, defecting? That's the bright red. You subtract the reds from the greens and you get a net score. Now one caveat here, which actually is really favorable from Microsoft, the Microsoft data that we're showing here is across the entire Microsoft portfolio. The other point is, this is July data, we'll have an update for you once ETR releases its October results. But we're talking about meaningful samples here, the ends. 620 for AWS over a thousand from Microsoft in more than 450 respondents in the survey for Google. So the real tell is replacements, that bright red. There is virtually no churn for AWS and Microsoft, but Google's churn is 5x, those two in the survey. Now 5% churn is not high, but you'd like to see three things for Google given it's smaller size. One is less churn, two is much, much higher adoption rates in the lime green. Three is a higher percentage of those spending more, the forest green. And four is a lower percentage of those spending less. And none of these conditions really applies here for Google. GCP is still not growing fast enough in our opinion, and doesn't have nearly the traction of the two leaders and that shows up in the survey data. All right, let's look at the next sector, BI analytics. Here we have that same XY dimension. Again, Microsoft dominating the picture. AWS very strong also in both axes. Tableau, very popular and respectable of course acquired by Salesforce on the vertical axis, still looking pretty good there. And again on the horizontal axis, big presence there for Tableau. And Google with Looker and its other platforms is also respectable, but it again, has some work to do. Now notice Streamlit, that's a recent Snowflake acquisition. It's strong in the vertical axis and because of Snowflake's go-to-market (indistinct), it's likely going to move to the right overtime. Grafana is also prominent in the Y axis, but a glimpse at the most recent survey data shows them slightly declining while Looker actually improves a bit. As does Cloudera, which we'll move up slightly. Again, Microsoft just blows you away, doesn't it? All right, now let's get into database and data platform. Same X Y dimensions, but now database and data warehouse. Snowflake as usual takes the top spot on the vertical axis and it is actually keeps moving to the right as well with again, Microsoft and AWS is dominant in the market, as is Oracle on the X axis, albeit it's got less spending velocity, but of course it's the database king. Google is well behind on the X axis but solidly above the 40% line on the vertical axis. Note that virtually all platforms will see pressure in the next survey due to the macro environment. Microsoft might even dip below the 40% line for the first time in a while. Lastly, let's look at the collaboration and productivity software market. This is such an important area for both Microsoft and Google. And just look at Microsoft with 365 and Teams up into the right. I mean just so impressive in ubiquitous. And we've highlighted Google. It's in the pack. It certainly is a nice base with 174 N, which I can tell you that N will rise in the next survey, which is an indication that more people are adopting. But given the investment and the tech behind it and all the AI and Google's resources, you'd really like to see Google in this space above the 40% line, given the importance of this market, of this collaboration area to Google's success and the degree to which they emphasize it in their pitch. And look, this brings up something that we've talked about before on Breaking Analysis. Google doesn't have a tech problem. This is a go-to-market and marketing challenge that Google faces and it's up against two go-to-market champs and Microsoft and AWS. And Google doesn't have the enterprise sales culture. It's trying, it's making progress, but it's like that racehorse that has all the potential in the world, but it's just missing some kind of key ingredient to put it over at the top. It's always coming in third, (chuckles) but we're watching and Google's obviously, making some investments as we shared with earlier. All right. Some final thoughts on what we learned this week and in this research: customers and partners should be thrilled that both Microsoft and Google along with AWS are spending so much money on innovation and building out global platforms. This is a gift to the industry and we should be thankful frankly because it's good for business, it's good for competitiveness and future innovation as a platform that can be built upon. Now we didn't talk much about multi-cloud, we haven't even mentioned supercloud, but both Microsoft and Google have a story that resonates with customers in cross cloud capabilities, unlike AWS at this time. But we never say never when it comes to AWS. They sometimes and oftentimes surprise you. One of the other things that Sarbjeet Johal and John Furrier and I have discussed is that each of the Big 3 is positioning to their respective strengths. AWS is the best IaaS. Microsoft is building out the kind of, quote, we-make-it-easy-for-you cloud, and Google is trying to be the open data cloud with its open-source chops and excellent tech. And that puts added pressure on Snowflake, doesn't it? You know, Thomas Kurian made some comments according to CRN, something to the effect that, we are the only company that can do the data cloud thing across clouds, which again, if I'm being honest is not really accurate. Now I haven't clarified these statements with Google and often things get misquoted, but there's little question that, as AWS has done in the past with Redshift, Google is taking a page out of Snowflake, Databricks as well. A big difference in the Big 3 is that AWS doesn't have this big emphasis on the up-the-stack collaboration software that both Microsoft and Google have, and that for Microsoft and Google will drive captive IaaS consumption. AWS obviously does some of that in database, a lot of that in database, but ISVs that compete with Microsoft and Google should have a greater affinity, one would think, to AWS for competitive reasons. and the same thing could be said in security, we would think because, as I mentioned before, Microsoft competes very directly with CrowdStrike and Okta and others. One of the big thing that Sarbjeet mentioned that I want to call out here, I'd love to have your opinion. AWS specifically, but also Microsoft with Azure have successfully created what Sarbjeet calls brand distance. AWS from the Amazon Retail, and even though AWS all the time talks about Amazon X and Amazon Y is in their product portfolio, but you don't really consider it part of the retail organization 'cause it's not. Azure, same thing, has created its own identity. And it seems that Google still struggles to do that. It's still very highly linked to the sort of core of Google. Now, maybe that's by design, but for enterprise customers, there's still some potential confusion with Google, what's its intentions? How long will they continue to lose money and invest? Are they going to pull the plug like they do on so many other tools? So you know, maybe some rethinking of the marketing there and the positioning. Now we didn't talk much about ecosystem, but it's vital for any cloud player, and Google again has some work to do relative to the leaders. Which brings us to supercloud. The ecosystem and end customers are now in a position this decade to digitally transform. And we're talking here about building out their own clouds, not by putting in and building data centers and installing racks of servers and storage devices, no. Rather to build value on top of the hyperscaler gift that has been presented. And that is a mega trend that we're watching closely in theCUBE community. While there's debate about the supercloud name and so forth, there little question in our minds that the next decade of cloud will not be like the last. All right, we're going to leave it there today. Many thanks to Sarbjeet Johal, and my business partner, John Furrier, for their input to today's episode. Thanks to Alex Myerson who's on production and manages the podcast and Ken Schiffman as well. Kristen Martin and Cheryl Knight helped get the word out on social media and in our newsletters. And Rob Hof is our editor in chief over at SiliconANGLE, who does some wonderful editing. And check out SiliconANGLE, a lot of coverage on Google Cloud Next and Microsoft Ignite. Remember, all these episodes are available as podcast wherever you listen. Just search Breaking Analysis podcast. I publish each week on wikibon.com and siliconangle.com. And you can always get in touch with me via email, david.vellante@siliconangle.com or you can DM me at dvellante or comment on my LinkedIn posts. And please do check out etr.ai, the best survey data in the enterprise tech business. This is Dave Vellante for the CUBE Insights, powered by ETR. Thanks for watching and we'll see you next time on Breaking Analysis. (gentle music)

>>The transformation of Dell into Dell emc. And now Dell Technologies has been one of the most remarkable stories in the history of the enterprise technology industry. The company has gone from a Wall Street darling rocket ship PC company to a Midling enterprise player, forced to go private to a debt laden powerhouse that controlled one of the most valuable assets in enterprise tech i e VMware, and now is a hundred billion dollar giant with a low margin business. A strong balance sheet in the broadest hardware portfolio in the industry and financial magic that Dell went through would make anyone's head spin. The last lever of Dell EMC of the Dell EMC deal was detailed in Michael Dell's book Play Nice But Win in a captivating chapter called Harry You and the Bolt from the Blue Michael Dell described how he and his colleagues came up with the final straw of how to finance the deal. >>If you haven't read it, you should. And of course, after years of successfully integrating EMC and becoming VMware's number one distribution channel, all of this culminated in the spin out of VMware from Dell and a massive wealth creation milestone pending, of course the Broadcom acquisition of VMware. So where's that leave Dell and what does the future look like for this technology powerhouse? Hello and welcome to the Cube's exclusive coverage of Dell Technology Summit 2022. My name is Dave Ante and I'll be hosting the program. Now today in conjunction with the Dell Tech Summit, we're gonna hear from four of Dell's senior executives, Tom Sweet, who's the CFO of Dell Technologies. He's gonna share his views on the company's position and opportunities going forward. He's gonna answer the question, why is Dell a good long-term investment? Then we'll hear from Jeff Boudreau, who's the president of Dell's ISG business. >>That unit is the largest profit driver of Dell. He's gonna talk about the product angle and specifically how Dell is thinking about solving the multi-cloud challenge. And then Sam Groot, who is the senior vice president of marketing, will come on the program and give us the update on Apex, which is Dell's as a service offering, and then the new Edge platform called Project Frontier. Now it's also cyber security Awareness month that we're gonna see if Sam has, you know, anything to say about that. Then finally, for a company that's nearly 40 years old, Dell actually has some pretty forward thinking philosophies when it comes to its culture and workforce. And we're gonna speak with Jen Vera, who's Dell's chief Human Resource Resource Officer about hybrid work and how Dell is thinking about the future of work. However, before we get into all this, I wanna share our independent perspectives on the company and some research that we'll introduce to frame the program. >>Now, as you know, we love data here at the cube and one of our partners, ETR has what we believe is the best spending intentions data for enterprise tech. So here's a graphic that shows ET R'S proprietary net score methodology in the vertical access. That's a measure of spending velocity. And on the X axis, his overlap of pervasiveness in the data sample, this is a cut for just the server, the storage, and the client sectors within the ETR taxonomy. So you can see Dell CSG products, laptops in particular are dominant on both the X and the Y dimensions. CSG is the client solutions group and accounts for nearly 60% of Dell's revenue and about half of its operating income. And then the arrow signifies that dot, that represents Dell's ISG business that we're gonna talk to Jeff Boudro about. That's the infrastructure solutions group. Now, ISG accounts for the bulk of of the remainder of Dell's business, and it is, it's, as I said, it's most profitable from a margin standpoint. >>It comprises the EMC storage business as well as the Dell server business and Dell's networking portfolio. And as a note, we didn't include networking in that cut had we done. So Cisco would've dominated the graphic. And frankly, Dell's networking business isn't industry leading in the same way that PCs, servers and storage are. And as you can see, the data confirms the leadership position Dell has in its client side, its server and its storage sectors. But the nuance is look at that red dotted line at 40% on the vertical axis that represents a highly elevated net score, and every company in the sector is below that line. Now we should mention that we also filtered the data for those companies with more than a hundred mentions in the survey, but the point remains the same. This is a mature business that generally is lower margin storage is the exception, but cloud has put pressure on margins even in that business in addition to the server space. >>The last point on this graphic is we put a box around VMware and it's prominently present on both the X and Y dimensions. VMware participates with purely software defined high margin offerings in this, in these spaces, and it gives you a sense of what might have been had Dell chosen to hold onto that asset or spin it into the company. But let's face it, the alternatives from Michael Dell were just too attractive and it's unlikely that a spin in would've unlocked the value in the way a spinout did, at least not in the near future. So let's take a look at the snapshot of Dell's financials. To give you a sense of where the company stands today, Dell is a company with over a hundred billion in revenue. Last quarter, it did more than 26 billion in revenue and grew at a quite amazing 9% rate for a company that size. >>But because it's a hardware company, primarily its margins are low with operating income, 10% of revenue, and at 21% gross margin with VMware on Dell's income statement before the spin, its gross margins. Were in the low thirties. Now, Dell only spends about 2% of revenue on r and d because because it's so big, it's still a lot of money. And you can see it is cash flow positive. Dell's free cash flow over the trailing 12 month period is 3.7 billion, but that's only 3.5% of trailing 12 month revenue. Dell's Apex, and of course it's hardware maintenance business is recurring revenue and that is only about 5 billion in revenue and it's growing at 8% annually. Now having said that, it's the equivalent of service now's total revenue. Of course, service now is 23% operating margin and 16% free cash flow margin and more than 5 billion in cash on the balance sheet and an 85 billion market cap. >>That's what software will do for you. Now Dell, like most companies, is staring at a challenging macro environment with FX headwinds, inflation, et cetera. You've heard the story and hence it's conservative and contracting revenue guidance. But the balance sheet transformation has been quite amazing. Thanks to VMware's cash flow, Michael Dell and his partners from Silver Lake at all, they put up around $4 billion of their own cash to buy EMC for 67 billion, and of course got VMware in the process. Most of that financing was debt that Dell put on its balance sheet to do the transaction to the tune of 46 billion. It added to the, to the balance sheet debt. Now Dell's debt, the core debt net of its financing operation is now down to 16 billion and it has 7 billion in cash in the balance sheet. So dramatic delta from just a few years ago. So pretty good picture. >>But Dell a hundred billion company is still only valued at 28 billion or around 26 cents on the revenue dollar H HP's revenue multiple is around 60 cents on the revenue dollar. HP Inc. Dell's, you know, laptop and PC competitor is around 45 cents. IBM's revenue multiple is almost two times. By the way, IBM has more than 50 billion in debt thanks to the Red Hat acquisition. And Cisco has a revenue multiple, it's over three x, about 3.3 x currently. So is Dell undervalued? Well, based on these comparisons with its peers, I'd say yes and no. Dell's performance relative to its peers in the market is very strong. It's winning and has an extremely adept go to market machine, but it's lack of software content and it's margin profile leads. One to believe that if it can continue to pull some valuation levers while entering new markets, it can get its valuation well above where it is today. >>So what are some of those levers and what might that look like going forward? Despite the fact that Dell doesn't have a huge software revenue component since spinning out VMware and it doesn't own a cloud, it plays in virtually every part of the hardware market and it can provide infrastructure for pr pretty much any application in any use case and pretty much any industry and pretty much any geography in the world and it can serve those customers. So its size is an advantage. However, the history for hardware heavy companies that try to get bigger has some notable failures, namely hp, which had to split into two businesses, HP Inc. And hp E and ibm, which has had in abysmal decade from a performance standpoint and has had to shrink to grow again and obviously do a massive 34 billion acquisition of Red Hat. So why will Dell do any better than these two? >>Well, it has a fantastic supply chain. It's a founder led company, which makes a cultural difference in our view, and it's actually comfortable with a low margin software, light business model. Most certainly, IBM wasn't comfortable with that and didn't have these characteristics, and HP was kind of just incomprehensible at the end. So Dell in my opinion, is a much better chance of doing well at a hundred billion or over, but we'll see how it navigates through the current headwinds as it's guiding down. Apex is essentially Dell's version of the cloud. Now remember, Dell got started late. HPE is further along from a model standpoint with GreenLake, but Dell has a larger portfolio, so they're gonna try to play on that advantage. But at the end of the day, these as a service offerings are simply ways to bring a utility model to existing customers and generate recurring revenue. >>And that's a good thing because customers will be loyal to an incumbent if it can deliver as a service and reduce risk for for customers. But the real opportunity lies ahead, specifically Dell is embracing the cloud model. It took a while, but they're on board as Matt Baker Dell's senior vice president of corporate strategy likes to say it's not a zero sum game. What it means by that is just because Dell doesn't own its own cloud, it doesn't mean Dell can't build value on top of hyperscale clouds, what we call super cloud. And that's Dell's strategy to take advantage of public cloud CapEx and connect on-prem to the cloud, create a unified experience across clouds and out to the edge that's ambitious and technically it's non-trivial. But listen to Dell's vice chairman and Coco, Jeff Clark, explain this vision, please play the clip. >>You said also technology and business models are tied together and enabler. That's if, if you believe that, then you have to believe that it's a business operating system that they want, They want to leverage whatever they can, and at the end of the day there's, they have to differentiate what they do. Well that, that's >>Exactly right. If I take that and what, what Dave was saying and and I, and I summarize it the following way, if we can take these cloud assets and capabilities, combine them in an orchestrated way to delivery a distributed platform, game over, >>Eh, pretty interesting, right? John Freer called it a business operating system. Essentially, I think of it sometimes as a cloud operating system or cloud operating environment to drive new business value on top of the hyperscale CapEx. Now, is it really game over? As Jeff Clark said, if Dell can do that, I'd say if it had that today, it might be game over for the competition, but this vision will take years to play out. And of course it's gotta be funded and now it's gonna take time. And in this industry it tends to move. Companies tend to move in lockstep. So as often as the case, it's gonna come down to execution and Dell's ability to enter new markets that are ideally, at least from my perspective, higher margin data management, extending data protection into cyber security as an adjacency and of course edge at telco slash 5G opportunities. >>All there for the taking. I mean, look, even if Dell doesn't go after more higher margin software content, it can thrive with a lower margin model just by penetrating new markets and throwing off cash from those markets. But by keeping close to customers and maybe through Tuck in acquisitions, it might be able to find the next nugget beyond today's cloud and on-prem models. And the last thing I'll call out is ecosystem. I say here ecosystem, ecosystem, ecosystem. Because a defining characteristic of a cloud player is ecosystem, and if Apex is Dell's cloud, it has the opportunity to expand that ecosystem dramatically. This is one of the company's biggest opportunities and challenges. At the same time, in my view, it's just scratching the surface on its partner ecosystem. And it's ecosystem today is is both reseller heavy and tech partner heavy. And that's not a bad thing, but in a, but it's starting to evolve more rapidly. >>The snowflake deal is an example of up to stack evolution, but I'd like to see much more out of that snowflake relationship and more relationships like that. Specifically I'd like to see more momentum with data and database. And if we live at a data heavy world, which we do, where the data and the database and data management offerings, you know, coexist and are super important to customers, like to see that inside of Apex, like to see that data play beyond storage, which is really where it is today and it's early days. The point is with Dell's go to market advantage, which which company wouldn't treat Dell like the on-prem hybrid edge super cloud player that I wanna partner with to drive more business. You'd be crazy not to, but Dell has a lot on its plate and we'd like to see some serious acceleration on the ecosystem front. In other words, Dell as both a selling partner and a business enabler with its platform, its programmable infrastructure as a service. And that is a moving target that will rapidly involve. And of course we'll be here watching and reporting. So thanks for watching this preview of Dell Technology Summit 2022. I'm Dave Vte. We hope you enjoy the rest of the program.

>>The Cube Presents UI Path Forward five. Brought to you by UI Path, >>Everybody. We're back in Las Vegas. The cube's coverage we're day one at UI Path forward. Five. Pascal Borne is here. He's an expert and bestselling author in the topic of AI and automation and the book Intelligent Automation. Welcome to the world of Hyper Automation, the first book on the topic. And of course, Ray Wong is back on the cube. He's the founder, chairman and principal analyst, Constellation Reese, also bestselling author of Everybody Wants To Rule the World. Guys, thanks so much for coming on The Cubes. Always a pleasure. Ray Pascal, First time on the Cube, I believe. >>Yes, thank you. Thanks for the invitation. Thank you. >>So what is artificial about artificial intelligence, >>For sure, not people. >>So, okay, so you guys are both speaking at the conference, Ray today. I think you're interviewing the co CEOs. What do you make of that? What's, what are you gonna, what are you gonna probe with these guys? Like, how they're gonna divide their divide and conquer, and why do you think the, the company Danielle in particular, decided to bring in Rob Sland? >>Well, you know what I mean, Like, you know, these companies are now at a different stage of growth, right? There's that early battle between RPA vendors. Now we're actually talking something different, right? We're talking about where does automation go? How do we get the decisioning? What's the next best action? That's gonna be the next step. And to take where UI path is today to somewhere else, You really want someone with that enterprise cred and experience the sales motions, the packages, the partnership capabilities, and who else better than Roblin? He, that's, he's done, he can do that in his sleep, but now he's gotta do that in a new space, taking whole category to another level. Now, Daniel on the other hand, right, I mean, he's the visionary founder. He put this thing from nothing to where he is today, right? I mean, at that point you want your founder thinking about the next set of ideas, right? So you get this interesting dynamic that we've seen for a while with co CEOs, those that are doing the operations, getting the stuff out the door, and then letting the founders get a chance to go back and rethink, take a look at the perspective, and hopefully get a chance to build the next idea or take the next idea back into the organization. >>Right? Very well said. Pascal, why did you write your book on intelligent automation and, and hyper automation, and what's changed since you've written that book? >>So, I, I wrote this book, An Intelligent Automation, two years ago. At that time, it was really a new topic. It was really about the key, the, the key, the key content of the, of the book is really about combining different technologies to automate the most complex end to end business processes in companies. And when I say capabilities, it's, we, we hear a lot about up here, especially here, robotic process automation. But up here alone, if you just trying to transform a company with only up here, you just fall short. Okay? A lot of those processes need more than execution. They need language, they need the capacity to view, to see, they need the capacity to understand and to, and to create insights. So by combining process automation with ai, natural language processing, computer vision, you give this capability to create impact by automating end to end processes in companies. >>I, I like the test, what I hear in the keynote with independent experts like yourself. So we're hearing that that intelligent automation or automation is a fundamental component of digital transformation. Is it? Or is it more sort of a back office sort of hidden in inside plumbing Ray? What do you think? >>Well, you start by understanding what's going on in the process phase. And that's where you see discover become very important in that keynote, right? And that's where process mining's playing a role. Then you gotta automate stuff. But when you get to operations, that's really where the change is going to happen, right? We actually think that, you know, when you're doing the digital transformation pieces, right? Analytics, automation and AI are coming together to create a concept we call decision velocity. You and I make a quick decision, boom, how long does it take to get out? Management committee could free forever, right? A week, two months, never. But if you're thinking about competing with the automation, right? These decisions are actually being done a hundred times per second by machine, even a thousand times per second. That asymmetry is really what people are facing at the moment. >>And the companies that are gonna be able to do that and start automating decisions are gonna be operating at another level. Back to what Pascal's book talking about, right? And there are four questions everyone has to ask you, like, when do you fully intelligently automate? And that happens right in the background when you augment the machine with a human. So we can find why did you make an exception? Why did you break a roll? Why didn't you follow this protocol so we can get it down to a higher level confidence? When do you augment the human with the machine so we can give you the information so you can act quickly. And the last one is, when do you wanna insert a human in the process? That's gonna be the biggest question. Order to cash, incident or resolution, Hire to retire, procure to pay. It doesn't matter. When do you want to put a human in the process? When do you want a man in the middle, person in the middle? And more importantly, when do you want insert friction? >>So Pascal, you wrote your book in the middle of the, the pandemic. Yes. And, and so, you know, pre pandemic digital transformation was kind of a buzzword. A lot of people gave it lip service, eh, not on my watch, I don't have to worry about that. But then it became sort of, you're not a digital business, you're out of business. So, so what have you seen as the catalyst for adoption of automation? Was it the, the pandemic? Was it sort of good runway before that? What's changed? You know, pre isolation, post isolation economy. >>You, you make me think about a joke. Who, who did your best digital transformation over the last years? The ceo, C H R O, the Covid. >>It's a big record ball, right? Yeah. >>Right. And that's exactly true. You know, before pandemic digital transformation was a competitive advantage. >>Companies that went into it had an opportunity to get a bit better than their, their competitors during the pandemic. Things have changed completely. Companies that were not digitalized and automated could not survive. And we've seen so many companies just burning out and, and, and those companies that have been able to capitalize on intelligent automation, digital transformations during the pandemic have been able not only to survive, but to, to thrive, to really create their place on the market. So that's, that has been a catalyst, definitely a catalyst for that. That explains the success of the book, basically. Yeah. >>Okay. Okay. >>So you're familiar with the concept of Stew the food, right? So Stew by definition is something that's delicious to eat. Stew isn't simply taking one of every ingredient from the pantry and throwing it in the pot and stirring it around. When we start talking about intelligent automation, artificial intelligence, augmented intelligence, it starts getting a bit overwhelming. My spy sense goes off and I start thinking, this sounds like mush. It doesn't sound like Stew. So I wanna hear from each of you, what is the methodical process that, that people need to go through when they're going through digital trans transmission, digital transformation, so that you get delicious stew instead of a mush that's just confused everything in your business. So you, Ray, you want, you want to, you wanna answer that first? >>Yeah. You know, I mean, we've been talking about digital transformation since 2010, right? And part of it was really getting the business model, right? What are you trying to achieve? Is that a new type of offering? Are you changing the way you monetize something? Are you taking existing process and applying it to a new set of technologies? And what do you wanna accomplish, right? Once you start there, then it becomes a whole lot of operational stuff. And it's more than st right? I mean, it, it could be like, well, I can't use those words there. But the point being is it could be a complete like, operational exercise. It could be a complete revenue exercise, it could be a regulatory exercise, it could be something about where you want to take growth into the next level. And each one of those processes, some of it is automation, right? There's a big component of it today. But most of it is really rethinking about what you want things to do, right? How do you actually make things to be successful, right? Do I reorganize a process? Do I insert a place to do monetization? Where do I put engagement in place? How do I collect data along the way so I can build better feedback loop? What can I do to build the business graph so that I have that knowledge for the future so I can go forward doing that so I can be successful. >>The Pascal should, should, should the directive be first ia, then ai? Or are these, are these things going to happen in parallel naturally? What's your position on that? Is it first, >>So it, so, >>So AI is part of IA because that's, it's, it's part of the big umbrella. And very often I got the question. So how do you differentiate AI in, I a, I like to say that AI is only the brain. So think of ai cuz I'm consider, I consider AI as machine learning, Okay? Think of AI in a, like a brain near jar that only can think, create, insight, learn, but doesn't do anything, doesn't have any arms, doesn't have any eyes, doesn't not have any mouth and ears can't talk, can't understand with ia, you, you give those capabilities to ai. You, you basically, you create a cap, the capability, technological capability that is able to do more than just thinking, learning and, and create insight, but also acting, speaking, understanding the environment, viewing it, interacting with it. So basically performing these, those end to end processes that are performed currently by people in companies. >>Yeah, we're gonna get to a point where we get to what we call a dynamic scenario generation. You're talking to me, you get excited, well, I changed the story because something else shows up, or you're talking to me and you're really upset. We're gonna have to actually ch, you know, address that issue right away. Well, we want the ability to have that sense and respond capability so that the next best action is served. So your data, your process, the journey, all the analytics on the top end, that's all gonna be served up and changed along the way. As we go from 2D journeys to 3D scenarios in the metaverse, if we think about what happens from a decentralized world to decentralized, and we think about what's happening from web two to web three, we're gonna make those types of shifts so that things are moving along. Everything's a choose your end venture journey. >>So I hope I remember this correctly from your book. You talked about disruption scenarios within industries and within companies. And I go back to the early days of, of our industry and East coast Prime, Wang, dg, they're all gone. And then, but, but you look at companies like Microsoft, you know, they were, they were able to, you know, get through that novel. Yeah. Ibm, you know, I call it survived. Intel is now going through their, you know, their challenge. So, so maybe it's inevitable, but how do you see the future in terms of disruption with an industry, Forget our industry for a second, all industry across, whether it's healthcare, financial services, manufacturing, automobiles, et cetera. How do you see the disruption scenario? I'm pretty sure you talked about this in your book, it's been a while since I read it, but I wonder if you could talk about that disruption scenario and, and the role that automation is going to play, either as the disruptor or as the protector of the incumbents. >>Let's take healthcare and auto as an example. Healthcare is a great example. If we think about what's going on, not enough nurses, massive shortage, right? What are we doing at the moment? We're setting five foot nine robots to do non-patient care. We're trying to capture enough information off, you know, patient analytics like this watch is gonna capture vitals from a going forward. We're doing a lot what we can do in the ambient level so that information and data is automatically captured and decisions are being rendered against that. Maybe you're gonna change your diet along the way, maybe you're gonna walk an extra 10 minutes. All those things are gonna be provided in that level of automation. Take the car business. It's not about selling cars. Tesla's a great example. We talk about this all the time. What Tesla's doing, they're basically gonna be an insurance company with all the data they have. They have better data than the insurance companies. They can do better underwriting, they've got better mapping information and insights they can actually suggest next best action do collision avoidance, right? Those are all the things that are actually happening today. And automation plays a big role, not just in the collection of that, that information insight, but also in the ability to make recommendations, to do predictions and to help you prevent things from going wrong. >>So, you know, it's interesting. It's like you talk about Tesla as the, the disrupting the insurance companies. It's almost like the over the top vendors have all the data relative to the telcos and mopped them up for lunch. Pascal, I wanna ask you, you know, the topic of future of work kind of was a bromide before, but, but now I feel like, you know, post pandemic, it, it actually has substance. How do you see the future of work? Can you even summarize what it's gonna look like? It's, it's, Or are we here? >>It's, yeah, it's, and definitely it's, it's more and more important topic currently. And you, you all heard about the great resignation and how employee experience is more and more important for companies according to have a business review. The companies that take care of their employee experience are four times more profitable that those that don't. So it's a, it's a, it's an issue for CEOs and, and shareholders. Now, how do we get there? How, how do we, how do we improve the, the quality of the employee experience, understanding the people, getting information from them, educating them. I'm talking about educating them on those new technologies and how they can benefit from those empowering them. And, and I think we've talked a lot about this, about the democratization local type of, of technologies that democratize the access to those technologies. Everyone can be empowered today to change their work, improve their work, and finally, incentivization. I think it's a very important point where companies that, yeah, I >>Give that. What's gonna be the key message of your talk tomorrow. Give us the bumper sticker, >>If you will. Oh, I'm gonna talk, It's a little bit different. I'm gonna talk for the IT community in this, in the context of the IT summit. And I'm gonna talk about the future of intelligent automation. So basically how new technologies will impact beyond what we see today, The future of work. >>Well, I always love having you on the cube, so articulate and, and and crisp. What's, what's exciting you these days, you know, in your world, I know you're traveling around a lot, but what's, what's hot? >>Yeah, I think one of the coolest thing that's going on right now is the fact that we're trying to figure out do we go to work or do we not go to work? Back to your other point, I mean, I don't know, work, work is, I mean, for me, work has been everywhere, right? And we're starting to figure out what that means. I think the second thing though is this notion around mission and purpose. And everyone's trying to figure out what does that mean for themselves? And that's really, I don't know if it's a great, great resignation. We call it great refactoring, right? Where you work, when you work, how we work, why you work, that's changing. But more importantly, the business models are changing. The monetization models are changing macro dynamics that are happening. Us versus China, G seven versus bricks, right? War on the dollar. All these things are happening around us at this moment and, and I think it's gonna really reshape us the way that we came out of the seventies into the eighties. >>Guys, always a pleasure having folks like yourself on, Thank you, Pascal. Been great to see you again. All right, Dave Nicholson, Dave Ante, keep it right there. Forward five from Las Vegas. You're watching the cue.

>>Hey everyone. Lisa Martin of the cube here, HPE and AMD better together with Shi is the name of our segment. And I'm here with four guests. Please. Welcome Charlie Mulrooney global presales engineering manager at Athi John saws also of Shi joins this global pre-sales technical consultant. And back with me are Terry Richardson, north American channel chief and Dr. John Fry, chief technologist, sustainable transformation at HPE. Welcome gang. Great to have you all here. >>Thank you, Lisa. Thanks. You good to be here? >>All right, Charlie, let's go ahead and start with you. Keeping the earth sustainable and minimizing carbon emissions. Greenhouse gases is a huge priority for businesses, right? Everywhere. Globally. Can you talk Charlie about what Shi is seeing in the marketplace with respect to sustainable? It? >>Sure. So starting about a year and a half, two years ago, we really noticed that our customers certainly our largest enterprise customers were putting into their annual reports, their chairman's letters, their sec filings that they had sustainability initiatives ranging from achieving carbon neutral or carbon zero goals starting with 2050 dates. And then since then we've seen 20, 40, and 2030 targets to achieve net neutrality and RFPs, RFIs that we're fielding. Certainly all now contain elements of that. So this is certainly top of mind for our largest customers, our fortune two 50 and fortune 500 customers. For sure. We're, we're seeing an onslaught of requests for this. We get into many conversations with the folks that are leading these efforts to understand, you know, here's what we have today. What can we do better? What can we do different to help make an impact on those goals? >>So making an impact top of mind, pretty much for everyone, as you mentioned, John SAS, let's bring you into the conversation. Now, when you're in customer conversations, what are some of the things that you talk about with respect tohis approach to sustainability, sustainable it, are you seeing more folks that are implementing things tactically versus strategically what's going on in the customer space? >>Well, so Charlie touched on something really important that, you know, the, the wake up moment for us was receiving, you know, proposal requests or customer meeting requests that were around sustainability. And it was really around two years ago, I suppose, for the first time. And those requests started coming from European based companies, cuz they had a bit of a head start over the us based global companies even. And what we found was that sustainability was already well down the road and that they were doing very interesting things to use renewable energy for data centers utilize the, they were already considering sustainability for new technologies as a high priority versus just performance cost and other factors that you typically have at the top. So as we started working with them, I guess at beginning it was more tactical cuz we really had to find a way to respond. >>We were starting to be asked about our own efforts and in regards to sustainability, we have our headquarters in Somerset and our second headquarters in Austin, Texas, those are lead gold certified. We've been installing solar panels, reducing waste across the company, recycling efforts and so forth charging stations for electric vehicles, all that sort of thing to make our company more sustainable in, in, in our offices and in our headquarters. But it's a lot more than that. And what we found was that we wanted to look to our vast number of, of customers and partners. We have over 30,000 partners that would work with globally and tens of thousands of customers. And we wanted to find best practices and technologies and services that we could talk about with these customers and apply and help integrate together as a, as a really large global reseller and integrator. We can have a play there and bring these things together from multiple partners that we work with to help solve customer problems. And so over time it's become more strategic and we've been as a company building the, the, the, the, the forward efforts through organizing a true formal sustainability team and growing that, and then also reporting for CDP Ecova and so forth. And it's really that all has been coming about in the last couple of years. And we take it very seriously. >>It sounds like, and it also sounds like from the customer's perspective, they're shifting from that tactical, maybe early initial approach to being more strategic, to really enabling sustainable it across their organization. And I imagine from a business driver's perspective, John saws and Charlie, are you hearing customers? You talked about it being part of RFPs, but also where are customers in terms of, we need to have a sustainable it strategy so that we can attract and retain the right investors we can attract and retain customers. Charlie, John, what are your thoughts on that? >>Yeah, that's top of mind with, with all the folks that we're talking to, I would say there's probably a three way tie for the importance of attracting and retaining investors. As you said, plus customers, customers are shopping, their customers are shopping for who has aligned their ESG priorities and sustainable priorities with their own and who is gonna help them with their own reporting of, you know, scope two and ultimately scope three reporting from greenhouse gas emissions and then the attracting and retaining talent. It's another element now of when you're bringing on new talent to your organization, they have a choice and they're thinking with their decision to accept a role or not within your organization of what your strategies are and do they align. So we're seeing those almost interchangeable in terms of priorities with, with the customers we're talking to. And it was a little surprising, cuz it, we thought initially this is really focused on investors attracting the investors, but it really has become quite a bit more than that. And it's been actually very interesting to see the development of that prioritization >>More comprehensive across the organization. Let's bring Dr. John Fry into the conversation and Terry your next. So stay tuned. Dr. Fry, can you talk about HPE and S H I partnering together? What are some of the key aspects of the relationship that help one another support and enable each other's aggressive goals where sustainability is concerned? >>Yeah, it's a great question. And one of the things about the sustainability domain in solving these climate challenges that we all have is we've got to come together and partner to solve them. No one company's going to solve them by themselves and for our collective customers the same way. From an HPE perspective, we bring the expertise on our products. We bring in sustainable it point of view, where we've written many white papers on the topic and even workbooks that help companies implement a sustainable it program. But our direct sales forces can't reach all of our customers. And in many cases we don't have the local knowledge that our business partners like Shi bring to the table. So they extend the reach, they bring their own expertise. Their portfolio that they offer to the customer is wider than just enterprise products. So by working together, we can do a better job of helping the customer meet their own needs, give them the right technology solutions and enhance that customer experience because they get more value from us collectively. >>It really is better together, which is in a very appropriate name for our segment here. Terry, let's bring you into the conversation. Talk to us about AMD. How is it helping customers to create that sustainable it strategy? And what are some of the differentiators that what AMD is doing that, that are able to be delivered through partners like Shi? >>Well, Lisa, you used the word enabling just a short while ago. And fundamentally AMD enables HPE and partners like Shi to bring differentiated solutions to customers. So in the data center space, we began our journey in 2017 with some fundamental design elements for our processor technology that were really keenly focused on improving performance, but also efficiency. So now the, the most common measure that we see for the types of customers that Charlie and John were talking about is really that measure of performance per wat. And you'll continue to see AMD enabled customers to, to try to find ways to, to do more in a sustainable way within the constraints that they may be facing, whether it's availability of power data center space, or just needing to meet overall sustainability goals. So we have skills and expertise and tools that we make available to HPE and two Shi to help them have even stronger differentiated conversations with customers. >>Sounds like to me, Terry, that it's, that AMD can be even more of an more than an enabler, but really an accelerator of what customers are able to do from a strategic perspective on sustainability. >>You you're right about that. And, and we actually have tools, greenhouse gas, TCO tools that can be leveraged to really quantify the impact of some of the, the new technology decisions that customers are making to allow them to achieve their goals. So we're really proud of the work that we're doing in partnership with companies like HPE and Shi >>Better together. As we said at the beginning in just a minute ago, Charlie, let's bring you back in, talk to us a little bit about what Shi is doing to leverage sustainable it and enable your customers to meet their sustainability goals and their initiatives. >>So for quite a while, we've had some offerings to help customers, especially in the end user compute side. A lot of customers were interested in, I've got assets for, you know, let's say a large sales force that had been carrying tablets or laptops and, you know, those need to be refreshed. What do I do with those? How do I responsibly retire or recycle those? And we've been offering solutions for that for quite some time. It's within the last year or two, when we started offering for them guarantees and assurances assurances of how they can, if that equipment is reusable by somebody else, how can we issue them? You know, credits for carbon credits for reuse of that equipment somewhere else. So it's not necessarily going to be e-waste, it's something that can be recycled and reused. We have other programs with helping extend the life of, of some systems where they look at well, I have a awful lot of data on these machines where historically they might want to just retire those because the, the, the sensitivity of the data needed to be handled very specifically. We can help them properly remove the sensitive data and still allow reuse of that equipment. So we've been able to come up with some creative solutions specifically around end user compute in the past, but we are looking to new ways now to really help extend that into data center infrastructure and beyond to really help with what are the needs, what are the, the best ways to help our customers handle the things that are challenging them. >>That's a great point that you bring up. Charlie and security kind of popped into my head here, John Saul's question for you when you're in customer conversations and you're talking about, or maybe they're talking about help us with waste reduction with recycling, where are you having those customer conversations? Cause I know sustainability is a board level, it's a C level discussion, but where are you having those conversations within the customer organization? >>Well, so it's a, it's a combination of organizations within the customer. These are these global organizations. Typically when we're talking about asset life cycle management, asset recovery, how do you do that in a sustainable green way and securely the customers we're dealing with? I mean, security is top sustainability is right up there too. O obviously, but Charlie touched on a lot of those things and these are global rollouts, tens of thousands of employees typically to, to have mobile devices, laptops, and phones, and so forth. And they often are looking for a true managed service around the world that takes into consideration things like the most efficient way to ship products to, to the employees. And how do you do that in a sustainably? You need to think about that. Does it all go to a central location or to each individual's home during the pandemic that made a lot of sense to do it that way? >>And I think the reason I wanted to touch on those things is that, well for, for example, one European pharmaceutical that states in their reports that they're already in scope one in scope two they're fully net zero at this point. And, and they say, but that only solves 3% of our overall sustainability goals. 97% is scope three, it's travel, it's shipping. It's, it's, it's all the, the, all these things that are out of their direct control a lot of times, but they're coming to us now as a, as a supplier and as, and, and we're filling out, you know, forms and RFPs and so forth to show that we can be a sustainable supplier in their supply chain because that's their next big goal >>Sustain sustainable supply chain. Absolutely. Yes. Dr. John Fry and Terry, I want to kind of get your perspectives. Charlie talked about from a customer requirements perspective, customers coming through RFP saying, Hey, we've gotta work with vendors who have clear sustainability initiatives that are well underway, HPE and AMD hearing the same thing Dr. Fry will start with you. And then Terry >>Sure, absolutely. We receive about 2,500 customer questionnaires just on sustainability every year. And that's come up from a few hundred. So yeah, absolutely accelerating. Then the conversations turn deeper. Can you help us quantify our carbon emissions and power consumption? Then the conversation has recently gone even further to when can HPE offer net zero or carbon neutral technology solutions to the customer so that they don't have to account for those solutions in their own carbon footprint. So the questions are getting more sophisticated, the need for the data and the accuracy of the data is climbing. And as we see potential regulatory disclosure requirements around carbon emissions, I think this trend is just gonna continue up. >>Yeah. And we see the same thing. We get asked more and more from our customers and partners around our own corporate sustainability goals. But the surveying that survey work that we've done with customers has led us to, you know, understand that, you know, approximately 75% of customers are gonna make sustainability goals, a key component of their RFIs in 2023, which is right around the corner. And, and, you know, 60% of those same customers really expect to have business level KPIs in the new year that are really related to sustainability. So this is not just a, a kind of a buzzword topic. This is, this is kind of business imperatives that, you know, the company, the companies like HPE and AMD and the partners like I, that really stand behind it and really are proactive in getting out in front of customers to help are really gonna be ahead of the game. >>That's a great point that you make Terry there that this isn't, we're not talking about a buzzword here. We're talking about a business imperative for businesses of probably all sizes across all industries and Dr. Far, you mentioned regulations. And something that we just noticed is that the S E C recently said, it's proposing some rules where companies must disclose greenhouse gas emissions. If they were, if that were to, to come into play, I'm gonna pun back to Charlie and John saws. How would Shi and, and frankly at HPE and AMD be able to help companies comply if that type of regulation were to be implemented. Charlie. >>Yeah. So we are in the process right now of building out a service to help customers specifically with that, with the reporting, we know reporting is a challenge. The scope two reporting is a challenge and scope three that I guess people thought was gonna be a ways out now, all of a sudden, Hey, if you have made a public statement that you're going to make an impact on your scope three targets, then you have to report on them. So that, that has become really important very quickly as word about this requirement is rumbling around there's concern. So we are actually working right now on something it's a little too early to fully disclose, but stay tuned, cuz we have something coming. That's interesting. >>Definitely PED my, my ears are, are, are perk here. Charlie, we'll stay tuned for that. Dr. Fry. Terry, can you talk about together with Shi HPE and AMD enabling customers to manage access to the da data obviously, which is critical and it's doing nothing but growing and proliferating key folks need access to it. We talked a little bit about security, but how are from a better together perspective, Dr. Fry will start with you, how are you really helping organizations on that sustainability journey to ensure that data can be accessible to those who need it when they need it? And at these days what it's real time requirements. >>Yeah. It's, it's an increasing challenge. In fact, we have changed the H HP story the way we talk about H HP's value proposition to talk about data first modernization. So how often do you collect data? Where do you store it? How do you avoid moving it? How do you make sure if you're going to collect data, you get insights from that data that change your business or add business value. And then how long do you retain that data afterward and all of that factors into sustainable it, because when I talk to technology executives, what they tell me again, and again, is there's this presumption within their user community, that storage is free. And so when, when they have needs for collecting data, for example, if, if once an hour would do okay, but the system would collect it once a minute, the default, the user asks for of course, once a minute. And then are you getting insights from that data? Or are we moving it that becomes more important when you're moving data back and forth between the public cloud or the edge, because there is quite a network penalty for moving that equipment across your network. There's huge power and carbon implications of doing that. So it's really making a better decision about what do we collect, why do we collect it, what we're gonna do with it when we collect and how we store it. >>And, and for years, customers have really talked about, you know, modernization and the need to modernize their data center. You know, I, I fundamentally believe that sustainability is really that catalyst to really drive true modernization. And as they think forward, you know, when we work with, with HPE, you know, they offer a variety of purpose-built servers that can play a role in, you know, specific customer workloads from the largest, super computers down to kind of general purpose servers. And when we work with partners like Shi, not only can they deliver the full suite of offerings for on premise deployments, they're also very well positioned to leverage the public cloud infrastructure for those workloads that really belong there. And, and that certainly can help customers kind of achieve an end to end sustainability goal. >>That's a great point that, that it needs to be strategic, but it also needs to be an end to end goal. We're just about out of time, but I wanted to give John saws the last word here, take us out, John, what are some of the things Charlie kind of teased some of the things that are coming out that piqued my interest, but what are some of the things that you are excited about as HPE AMD and Shi really help customers achieve their sustainability initiatives? >>Sure. Couple comments here. So Charlie, yeah, you touched on some upcoming capabilities that Shi will have around the area of monitoring and management. See, this is difficult for all customers to be able to report in this formal way. This is a train coming at everybody very quickly and they're not ready. Most customers aren't ready. And if we can help as, as a reseller integrator assessments, to be able to understand what they're currently running compare to different scenarios of where they could go to in a future state, that seems valuable if we can help in that way. That's, those are things that we're looking into specifically, you know, greenhouse gas, emissions, relevant assessments, and, and, and within the comments of, of, of Terry and, and John around the, the power per wat and the vast portfolio of, of technologies that they, that they had to address various workloads is, is fantastic. >>We'd be able to help point to technologies like that and move customers in that direction. I think as a, as an integrator and a technical advisor to customers, I saw an article on BBC this morning that I, I, I think if, if we think about how we're working with our customers and we can help them maybe think differently about how they're using their technology to solve problems. The BBC article mentioned this was Ethereum, a cryptocurrency, and they have a big project called merge. And today was a go live date. And BBC us news outlets have been reporting on it. They basically changed the model from a model called power of work, which takes a, a lot of compute and graphic, GPU power and so forth around the world. And it's now called power of stake, which means that the people that validate that their actions in this environment are correct. >>They have to put up a stake of their own cryptocurrency. And if they're wrong, it's taken from them. This new model reduces the emissions of their environment by 99 plus percent. The June emissions from Ethereum were, it was 120 telos per, per year, a Terra terat hours per year. And they reduced it actually, that's the equivalent of what the net Netherlands needed for energy, so comparable to a medium sized country. So if you can think differently about how to solve problems, it may be on-prem, it may be GreenLake. It may be, it may be the public cloud in some cases or other, you know, interesting, innovative technologies that, that AMD HPE, other partners that we can bring in along, along with them as well, we can solve problems differently. There is a lot going on >>The opportunities that you all talked about to really make such a huge societal impact and impact to our planet are exciting. We thank you so much for talking together about how HPE AMD and SSHA are really working in partnership in synergy to help your customers across every organization, really become much more focused, much more collaborative about sustainable it. Guys. We so appreciate your time and thank you for your insights. >>Thank you, Lisa. Thank you. My >>Pleasure. Thank you, Lisa. You're watching the cube, the leader in high tech enterprise coverage.

>>Okay, welcome back to everyone. Cube's live coverage of VMware Explorer, 2022. I'm John fur, host of the cube. Two sets three days of live coverage. Dave Ante's here. Lisa Martin, Dave Nicholson, all host of the cube 12 interviews today, just we're with Rocklin and rolling, getting down to the end of the show. As we wind down and look back and look at the future. We've got Steven Jones. Here's the general manager of the VMware cloud on AWS. He's with Amazon web service. Steven Jones. Welcome to the cube. >>Thanks John. >>Welcome back cube alumni. I've been on many times going back to 2015. Yeah. >>Pleasure to be here. Great >>To see you again. Thanks for coming on. Obviously 10 years at AWS, what a ride is that's been, come on. That's fantastic. Tell me it's been crazy. >>Wow. Learned a lot of stuff along the way, right? I mean, we, we, we knew that there was a lot of opportunity, right? Customers wanting the agility and flexibility of, of the cloud and, and we, we still think it's early days, right? I mean, you'll hear Andy say that animals say that, but it really is. Right. If you look at even just the amount of spend that's being spent on, on clouds, it's in the billions, right. And the amount of, of spend in it is still in the trillion. So there's, there's a long way to go and customers are pushing us hard. Obviously >>It's been interesting a lot going on with VM. We're obviously around with them, obviously changing the strategy with their, their third generation and their narrative. Obviously the Broadcom thing is going on around them. And 10 years at abs, we've been, we've been, this'll be our ninth year, no 10th year at reinvent coming up for us. So, but it's 10 years of everything at Amazon, 10 years of S three, 10 years of C two. So if you look at the, the marks of time, now, the history books are starting to be written about Amazon web services. You know, it's about 10 years of full throttle cube hyperscaler in action. I mean, I'm talking about real growth, like >>Hardcore, for sure. I'll give you just one anecdote. So when I first joined, I think we had maybe two EC two instances back in the day and the maximum amount of memory you could conversion into one of these machines was I think 128 gig of Ram fast forward to today. You literally can get a machine with 24 terabytes of Ram just in insane amounts. Right? My, my son who's a gamer tells me he's got 16 gig in his, in his PC. You need to, he thinks that's a lot. >>Yeah. >>That's >>Excited about that. That's not even on his graphics card. I mean, he's, I know it's coming next. The GPU, I mean, just all >>The it's like, right? >>I mean, all the hardware innovation that you guys have done, I mean, look at every it's changed. Everyone's changed their strategy to copy AWS nitro, Dave ante. And I talk about this all the time, especially with James Hamilton and the team over there, Peter DeSantos, these guys have, are constantly going at the atoms and innovating at the, at the level. I mean that, that's how hardcore it is over there right now. I mean, and the advances on the Silicon graviton performance wise is crazy. I mean, so what does that enabling? So given that's continuing, you guys are continuing to do great work there on the CapEx side, we think that's enabling another set of new net new applications because we're starting to see new things emerge. We saw snowflake come on, customer of AWS refactor, the data warehouse, they call it a data cloud. You're starting to see Goldman Sachs. You see capital one, you see enterprise customers building on top of AWS and building a cloud business without spending the CapEx >>Is exactly right. And Ziggy mentioned graviton. So graviton is one of our fastest growing compute families now. And you know, you mentioned a couple of ISVs and partners of ours who are leaning in heavily on porting their own software. Every event Adam announced that we're working with SAP to, to help them port their HANA cloud, which is a, a database of service offering HANA flagship to graviton as well. So it's, it's definitely changing. >>And I think, you know, one of the, and we're gonna circle back to VMware is kind of a point to this. This conversation is that, is that if you look at the trends, right, okay. VMware really tried hard to do cloud and they had a good shot at it V cloud air, but it just, they didn't have the momentum that you guys had at AWS. We saw a lot, lot of other stragglers try to do cloud. They fell off the road, OpenStack, HP, and the list goes on and on. I don't wanna get into that, but the point is, as you guys become more powerful and you're open, right? So you have open ecosystem, you have people now coming back, taking advantage and refactoring and picking up where they left off. VMware was the one of the first companies that actually said, you know what pat Gelsinger said? And I was there, let's clear up the positioning. Let's go all in with AWS. That's >>Right >>At that time, 2016. >>Yeah. This was new for us, for >>Sure. And then now that's set the standard. Now everybody else is kind of doing it. Where is the VMware cloud relationship right now? How is that going out? State's worked. >>It's working well very well. It's I mean, we're celebrating, I think we made the announcement what, five years ago at this conference. Yeah. 2016. So, I mean, it's, it's been a tremendous ride. The best part are the customers who were coming and adopting and proving to us that our vision back then was the right vision. And, and, and what's been different. I think about this relationship. And it was new for us was that we, we purposely went after a jointly engineered solution. This wasn't a, we've got a, a customer or a partner that's just going to run and build something on us. This is something where we both bring muscle and we actually build a, a joint offering together. Talk about, about the main difference. >>Yeah. And that, and that's been working, but now here at this show, if you look at, if you squint through the multi-cloud thing, which is like just, I think positioning for, you know, what could happen in, in a post broad Broadcom world, the cloud native has traction they're Tansu where, where customers were leaning in. So their enterprise customer is what I call the classic. It, you know, mainstream enterprise, which you guys have been doing a lot of business with. They're now thinking, okay, I'm gonna go on continu, accelerate on, in the public cloud, but I'm gonna have hybrid on premise as well. You guys have that solution. Now they're gonna need cloud native. And we were speculating that VMware is probably not gonna be able to get 'em all of it. And, and that there's a lot more cloud native options as customers want more cloud native. How do you see that piece on Amazon side? Because there's a lot of benefits between the VMware cloud on AWS and the services that you guys have natively in your cloud. So we see customers really taking advantage of the AWS goodness, as well as expanding the cloud side at VMware cloud on AWS. >>Yeah. There's probably two ways I would look at this. Right? So, so one is the combination of VMware cloud on AWS. And then both native services just generally brings more options to customers. And so typically what we're seeing now is customers are just able to move much faster, especially as it comes to data center, evacuations, migrating all their assets, right? So it used to be that, and still some customers they're like, I I've gotta think through my entire portfolio of applications and decide what to refactor. And the only way I can move it to cloud is to actually refactor it into some net new application, more and more. We're actually seeing customers. They've got their assets. A lot of them are still on premises in a VMware state, right. They can move those super quick and then modernize those. And so I think where you'll see VMware and AWS very aligned is on this, this idea of migrate. Now you need to get the benefits of TCO and, and the agility that comes with being in the cloud and then modernize. We took a step further, which is, and I think VMware would agree here too, but all of the, the myriad of services, I think it's 200 plus now AWS native services are for use right alongside any that a customer wants to run in VMware. And so we have examples of customers that are doing just, >>And that's, that's how you guys see the native and, and VMware cloud integrating in. Yeah, that's, that's important because this, I mean, if I always joke about, you know, we've been here 12 years listening in the hallways and stuff, you know, on the bus to the event last night, walking the parties and whatnot, listening in the streets, there's kind of two conversations that rise right to the top. And I wanna get your reaction to this Steven, because this seems to be representative of this demographic here at VMware conference, there's conversations around ransomware and storage and D dub and recovery. It's all, a lot of those happen. Yeah. Clearly a big crowd here that care about, you know, Veeam and NetApp and storage and like making sure stuff's secure and air gapped. And a lot of that kind of, I call nerdy conversations and then the other one is, okay, I gotta get the cloud story. >>Right. So there's kind of the operational security. And then there's like, okay, what's my path to true cloud. I need to get this moving. I need to have better applications. My company is the application now not it serves some sort of back office function. Yeah. It's like, my company is completely using technology as its business. So the app is the business. So that means everything's technology driven, not departmental siloed. So there's a, that's what I call the true cloud conversation. How do you, how do you see that evolving because VMware customers are now going there. And I won't say, I won't say they're behind, but they're certainly going there faster than ever before. >>I think, I think, I mean, it's an interesting con it's an interesting way to put it and I, I would completely agree. I think it's, it's very clear that I think a lot of customer companies are actually being disrupted. Right. And they have to move fast and reinvent themselves. You said the app is now becoming the company. Right. I mean, if, if you look at where not too many years back, there were, you know, big companies like Netflix that were born in the cloud. Right. Airbnb they're disruptors. >>There's, that's the >>App, right? That's the app. Yeah. So I, I would exactly agree. And, and that's who other companies are competing with. And so they have to move quickly. You talked about some, some technology that allows them to do that, right? So this week we announced the general availability of a NetApp on tap solution. It's been available on AWS for some time as a fully managed FSX storage solution. But now customers can actually leverage it with, with VMC. Now, why is that important? Well, there's tens of thousands of customers running VMware. On-premises still, there's thousands of them that are actually using NetApp filers, right? NetApp, NetApp filers, and the same enterprise features like replication. D do you were talking about and Snapp and clone. Those types of things can be done. Now within the V VMware state on AWS, what's even better is they can actually move faster. So consider replicating all this, you know, petabytes and petabytes of data that are in these S from on-premises into AWS, this, this NetApp service, and then connected connecting that up to the BMC option. So it just allows customers much, much. >>You guys, you guys have always been customer focus. Every time I sat down with the Andy jazzy and then last year with Adam, same thing we worked back from, I know it's kind of a canned answer on some of the questions from media, but, but they do really care. I've had those conversations. You guys do work backwards from the customer, actually have documents called working backwards. But one of the things that I observed, we talked about here yesterday on the cube was the observations of reinvent versus say, VM world. Now explore is VM world's ecosystem was very partner-centric in the sense of the partners needed to rely on VMware. And the customers came here for both more of the partners, not so much VMware in the sense there wasn't as much, many, many announcements can compare that to the past, say eight years of reinvent, where there's so much Amazon action going on the partners, I won't say take as a second, has a backseat to Amazon, but the, the attendees go there generally for what's going on with AWS, because there's always new stuff coming out. >>And it's, it's amazing. But this year it starts to see that there's an overlap or, or change between like the VMware ecosystem. And now Amazon there's, a lot of our interviews are like, they're on both ecosystems. They're at Amazon's show they're here. So you start to see what I call the naturalization of partners. You guys are continuing to grow, and you'll probably still have thousands of announcements at the event this year, as you always do, but the partners are much more part of the AWS equation, not just we're leasing all these new services and, and oh, for sure. Look at us, look at Amazon. We're growing. Cause you guys were building out and look, the growth has been great. But now as you guys get to this next level, the partners are integral to the ecosystem. How do you look at that? How has Amazon thinking about that? I know there's been some, some, a lot of active reorgs around AWS around solving this problem or no solve the problem, addressing the need and this next level of growth. What's your reaction to >>That? Well, I mean, it's, it's a, it's a good point. So I have to be honest with you, John. I, I, I spent eight of my 10 years so far at AWS within the partner organization. So partners are very near and dear to my heart. We've got tens of thousands of partners and you are you're right. You're starting to see some overlap now between the VMware partner ecosystem and what we've built now in AWS and partners are big >>By the way, you sell out every reinvent. So it's, you have a lot of partners. I'm not suggesting that you, that there's no partner network there, but >>Partners are critical. I mean, absolutely naturally we want a relationship with a customer, but in order to scale the way we need to do to meet the, the needs of customers, we need partners. Right. We, we can't, we can't interact with every single customer as much as we would like to. Right. And so partners have long built teams and expertise that, that caters to even niche workloads or opportunity areas. And, and we love partners >>For that. Yeah. I know you guys do. And also we'll point out just to kind of give props to you guys on the partner side, you don't, you keep that top of the stack open on Amazon. You've done some stuff for end to end where customers want all Amazon, but for the most part, you let competition come in, even on, so you guys are definitely partner friendly. I'm just observing more the maturization of partners within the reinvent ecosystem, cuz we're there every year. I mean, it's, I mean, first of all, they're all buzzing. I mean, it's not like there's no action. There's a lot of customers there it's sold out as big numbers, but it just seems that the partners are much more integrated into the value proposition of at a AWS because of the, the rising tide and, and now their enablement, cuz now they're part of the, of the value proposition. Even more than ever before >>They, they really are. And they, and they're building a lot of capabilities and services on us. And so their customers are our customers. And like you say, it's rising tide, right. We, we all do better together. >>Okay. So let's talk about the VMware cloud here. What's the update here in terms of the show, what's your, what's your main focus cuz a lot of people here are doing, doing sessions. What's been some of the con content that you guys are producing here. >>Yeah. So the best part obviously is a always the customer conversations to partner conversations. So a, a lot of, a lot of sessions there, we did keynote yesterday in Ryan and I, where we talked about a number of announcements that are, I think pretty material now to the offering a joint announcement with NetApp yesterday as well around the storage solution I was talking about. And then some, some really good technical deep dives on how the offering works. Customers are still interested in like how, how do I take what I've got on premises and easily move into AWS and technology like HSX H CX solution with VMware makes it really easy without having to re IP applications. I mean, you know, it is super difficult sometimes to, to move an application. If you've got figure out where all the firewall rules are and re iPing those, those things source. But yeah, it's, it's been fantastic. >>A lot of migrations to the cloud too. A lot of cloud action, new cloud action. You guys have probably seen an uptake on services right on the native side. >>Yes. Yes. For sure. So maybe I just outlined some of the, some of the assets we made this week. So absolutely >>Go ahead. >>We, we announced a new instance family as a, a major workhorse underneath the VMware cloud offering called I, I, you mentioned nitro earlier, this is on, based on our latest generation of nitro, which allows us to offer as you know, bare metal instances, which is, which is what VMware actually VMware was our first partnership and customer that I would say actually drove us to really get Nira done and out the door. And we've continued to iterate on that. And so this I four, I instance, it's based on the, the latest Intel isolate processor with more than double the Ram double the compute, a whopping 75 gigabytes per second network. So it's a real powerhouse. The cool thing is that with the, with the NetApp storage solution that we, we discussed, we're now disaggregating the need to provision, compute and storage at the same time. It used to be, if you wanted to add more storage to your VSAN array, that was on a V VMware cloud. Yeah. You'd add another note. You might not need more compute for memory. You'd have to add another note. And so now customers can simply start adding chunks of storage. And so this opens up customers. I had a customer come to me yesterday and said, there's no reason for us not to move. Now. We were waiting for something that like this, that allowed us to move our data heavy workloads yeah. Into VMware cloud. It's >>Like, it's like the, the alignment. You mentioned alignment earlier. You know, I would say that VMware customers are lined up now almost perfectly with the hybrid story that's that's seamless or somewhat seems it's never truly seamless. But if you look at like what Deepak's doing with Kubernetes and open source, you, you guys have that there talking that big here, you got vs a eight vSphere, eight out it's all cloud native. So that's lined up with what you guys are doing on your services and the horsepower. They have their stuff, you have yours that works better together. So it seems like it's more lined up than ever before. What's your take on that? Do you agree? And, and if so, what folks watching here that are VMware customers, what's, what's the motivation now to go faster? >>Look, it is, it is absolutely lined up. We are, as, as I mentioned earlier, we are jointly engineering and developing this thing together. And so that includes not just the nuts and bolts underneath, but kind of the vision of where it's going. And so we're, we're collectively bringing in customer feedback. >>What is that vision real quick? >>So that vision has to actually help an under help meet even the most demanding customer workloads. Okay. So you've got customer workloads that are still locked in on premises. And why is that? Well, it used to be, there was big for data and migration, right? And the speed. And so we continue to iterate this and that again is a joint thing. Instead of say, VMware, just building on AWS, it really is a, a tight partnership. >>Yeah. The lift and shift is a, an easy thing to do. And, and, and by the way, that could be a hassle too. But I hear most people say the reason holding us back on the workloads is it's just a lot of work, a hassle making it easier is what they want. And you guys are doing that. >>We are doing that. Absolutely. And by the way, we've got not just engineering teams, but we've got customer support teams on both sides working together. We also have flexible commercial options, right? If a customer wants to buy from AWS because they've negotiated some kind of deal with us, they can do that. They wanna buy from VMware for a similar reason. They could buy from VMware. So are >>They in the marketplace? >>They are in the market. There, there are some things in the marketplace. So you talked about Tansu, there's a Tansu offering in the marketplace. So yes. Customers can >>Contract. Yeah. Marketplaces. I'm telling you that's very disruptive. I'm Billy bullish on the market AIOS marketplace. I think that's gonna be a transformative way. People have what they procure and fully agree, deploy and how, and channel relationships are gonna shift. I think that's gonna be a disruptive enabler to the partner equation and, and we haven't even seen it yet. We're gonna be up there in September for their inaugural event. I think it's a small group, but we're gonna be documenting that. So even final question for you, what's next for you? What's on the agenda. You got reinvent right around the corner. Your P ones are done. Right? I know. Assuming all that, I turn that general joke. That's an internal Amazon joke. FYI. You've got your plan. What's next for the world. Obviously they're gonna go this, take this, explore global. No matter what happens with Broadcom, this is gonna be a growth wave with hybrid. What's next for you and your team with AWS and VMware's relationship? >>Yeah. So both of us are hyper focused on adding additional options, both from a, an instance compute perspective. You know, VMware announced some, some, some additional offerings that we've got. We've got a fully complete, like, so they're, they announce things like VMware flex compute V VMware flex storage. You mentioned earlier, there was a conversation around ransomware. There's a new ransomware based offering. So we're hyper focused on rounding out, continuing to round out the offering and giving customers even more choice >>Real quick. Jonathan made me think about the ransomware we were at reinforce Steven Schmidtz now the CSO. Now you got a CSO. AJ's the CSO. You got a whole focus, huge emphasis on security right now. I know you always have, but now it's much more public. It's PO more positive, I think, than some of the other events I've been to. It's been more Lum and doom. What's the security tie in here with VMware. Can you share a little bit real quick on the security piece update around this relationship? >>Yeah, you bet. So as you know, security for us is job zero. Like you don't have anything of security. And so what are the things that, that we're excited about specifically with VMware is, is the latest offering that, that we put together and it's called this, this ransomware offering. And it's, it's a little bit different than other ransomware. I mean, a lot of people have ransomware offerings today, just >>Air gap. >>Right, right, right. Exactly. No, that's easy. No, this one is different. So on the back end, so within VMC, there's this, this option where CU we can be to be taking iterative snapshots of a customer environment. Now, if an event were to occur, right. And a customer is like, I have to know if I'm compromised, we can actually spin up super easy. This is cloud. Remember? Yeah. We can spin up a, a copy of this environment, throw a switch, pick a snapshot with NSX. So VMware NSX firewall it off and then use some custom tooling from VMware to actually see if it's been compromised or not. And then iterate through that until you actually know you're clean. And that's different than just tools that do maybe a >>Little bit of scam. We had Tom gills on yesterday and, and one of the things Dave ante had to leave is taking the sun to college is last one in the house and B nester now, but Tom Gill was on. We were talking about how good their security story is ware. And they really weren't showboating it as much as they could have here. I thought they could have done a better job, but this is an example of kind of them really leaning in with you guys. That's the key part of the relationship. >>Yeah, it really is. And I think this is something is materially different than what you can get elsewhere. And it's exciting for, >>Okay. Now the, the real question I want to know is what's your plans for AWS reinvent the blockbuster end of the year, Amazon surf show that gets bigger and bigger. I know it's still hybrid now, but it's looking be hybrid, but people are back in person last year. You guys were the first event really come back and still had massive numbers. AWS summit, New York at 19,000. I heard last week in Chicago, big numbers. So we're expecting reinvent to be pretty large this year. What are you, what are you gonna do there? What's your role there? >>We are expecting, well, I'll be there. I cover multiple businesses. Obviously. We're, we're planning on some additional announcements, obviously in the VMware space as well. And one of the other businesses I run is around SAP. And you should look for some things there as well. Yeah. Really looking forward to reinvent, except for the fact that it's right after Thanksgiving. But I think it >>Always ruins my, I always get an article out. I like, why are you we're having, we're having Thanksgiving dinner. I gotta write this article. It's gotta get Adam, Adam. Leski exclusive. We, every year we do a, a CEO sit down with Andy was the CEO and then now Adam. But yeah, it's a great event to me. I think it sets the tone. And it's gonna be very interesting to see the big clouds are coming to the big cloud. You guys, and you guys are now called hyperscalers. Now, multiple words. It's interesting. You guys are providing the CapEx goodness for everybody else now. And that relationship seems to be the new, the new industry standard of you guys provide the enablement and then everyone you get paid, cuz it's a service. A whole nother level of cloud is emerging in the partner network, GSI other companies. Yeah. >>Yeah. I mean we're really scaling. I mean we continue to iterate and release regions at a fast clip. We just announced support for VMware in Hong Kong. Yeah. So now we're up to 21 regions for this service, >>The sovereign clouds right around the corner. Let's we'll talk about that soon. Steven. Thanks for coming. I know you gotta go. Thank you for your valuable time. Coming in. Put Steven Jones. Who's the general manager of the VMware cloud on AWS business. Four AWS here inside the cube day. Three of cube coverage. I'm John furrier. Thanks for watching. We'll be right back.

(upbeat music) >> We're back in Boston, theCUBE's coverage of Re:Inforce 2022. My name is Dave Vellante. Dave Hatfield is here. He's the co-CEO of Lacework. Dave, great to see again. Hat. >> Thanks Dave. >> Do you still go by Hat? >> Hat is good for me. (Dave V laughing) >> All right cool. >> When you call me David, I'm in trouble for something. (Dave V Laughing) So just call me Hat for now. >> Yeah, like my mom, David Paul. >> Exactly. >> All right. So give us the update. I mean, you guys have been on a tear. Obviously the Techlash, >> Yep. >> I mean, a company like yours, that has raised so much money. You got to be careful. But still, I'm sure you're not taking the foot off the gas. What's the update? >> Yeah no. We were super focused on our mission. We want to de deliver a cloud security for everybody. Make it easier for developers and builders, to do their thing. And we're fortunate to be in a situation, where people are in the early innings of moving into the cloud, you know. So our customers, largely digital natives. And now increasingly cloud migrants, are recognizing that in order to build fast, you know, in the cloud, they need to have a different approach to security. And, you know, it used to be that you're either going be really secure or really fast. And we wanted to create a platform that allowed you to have both. >> Yeah. So when you first came to theCUBE, you described it. We are the first company. And at the time, I think you were the only company, thinking about security as a data problem. >> Yeah. >> Explain what that means. >> Well, when you move to the cloud, you know, there's literally a quintillion data sets, that are out there. And it's doubling every several days or whatever. And so it creates a massive problem, in that the attack surface grows. And different than when you're securing a data center or device, where you have a very fixed asset, and you kind of put things around it and you kind of know how to do it. When you move to the shared ephemeral massive scale environment, you can't write rules, and do security the way you used to do it, for a data centers and devices. And so the insight for us was, the risk was the data, the upside was the data, you know? And so if you can harness all of this data, ingest it, process it, contextualize it, in the context of creating a baseline of what normal is for a company. And then monitor it constantly in real time. Figure out, you know, identify abnormal activity. You can deliver a security posture for a company, unlike anything else before. Because it used to be, you'd write a rule. You have a known adversary or a bad guy that's out there, and you constantly try and keep up with them for a very specific attack service. But when you move to the cloud, the attack service is too broad. And so, the risk of the massive amount of data, is also the solution. Which is how do you harness it and use it with machine learning and AI, to solve these problems. >> So I feel like for CISOs, the cloud is now becoming the first line of defense. >> Yep. The CISOs is now the second line. Maybe the auditing is the third line. I don't know. >> Yeah. >> But, so how do you work with AWS? You mentioned, you know, quadrillion. We heard, I think it was Steven Schmidt, who talked about in his keynote. A quadrillion, you know, data points of a month or whatever it was. That's 15 zeros. Mind boggling. >> Yeah. >> How do you interact with AWS? You know, where's your data come from? Are you able to inspect that AWS data? Is it all your own kind of first party data? How does that all work? >> Yeah, so we love AWS. I mean we ultimately, we started out our company building our own service, you know, on AWS. We're the first cloud native built on the cloud, for the cloud, leveraging data and harnessing it. So AWS enabled us to do that. And partners like Snowflake and others, allowed us to do that. But we are a multi-cloud solution too. So we allow builders and customers, to be able to have choice. But we'd go deep with AWS and say, the shared responsibility model they came up with. With partners and themselves to say, all right, who ultimately owns security? Like where is the responsibility? And AWS does a great job on database storage, compute networking. The customer is responsible for the OS, the platform, the workloads, the applications, et cetera, and the data. And that's really where we come in. And kind of help customers secure their posture, across all of their cloud environments. And so we take a cloud trail data. We look at all of the network data. We look at configuration data. We look at rules based data and policies, that customers might have. Anything we can get our hands on, to be able to ingest into our machine learning models. And everybody knows, the more data you put into a machine learning model, the finer grain it's going to be. The more insightful and the more impactful it's going to be. So the really hard computer science problem that we set out to go do seven years ago, when we founded the company, was figure out a way to ingest, process, and contextualize mass amounts of data, from multiple streams. And the make sense out of it. And in the traditional way of protecting customers' environments, you know, you write a rule, and you have this linear sort of connection to alerts. And so you know, if you really want to tighten it down and be really secure, you have thousands of alerts per day. If you want to move really fast and create more risk and exposure, turn the dial the other way. And you know, we wanted to say, let's turn it all the way over, but maintain the amount of alerts, that really are only the ones that they need to go focus on. And so by using machine learning and artificial intelligence, and pulling all these different disparate data systems into making sense of them, we can take, you know, your alert volume from thousands per day, to one or two high fidelity critical alerts per day. And because we know the trail, because we're mapping it through our data graph, our polygraph data platform, the time to remediate a problem. So figure out the needle in the haystack. And the time to remediate is 90, 95% faster, than what you have to do on your own. So we want to work with AWS, and make it really easy for builders to use AWS services, and accelerate their consumption of them. So we were one of the first to really embrace Fargate and Graviton. We're embedded in Security Hub. We're, you know, embedded in all of the core platforms. We focus on competencies, you know. So, you know, we got container competency. We've got security and compliance competencies. And we really just want to continue to jointly invest with AWS. To deliver a great customer outcome and a really integrated seamless solution. >> I got a lot to unpack there. >> Okay. >> My first question is, what you just described, that needle in the haystack. You're essentially doing that in near real time? >> Yep. >> Or real time even, with using AI inferencing. >> Yeah. >> Describe it a little better. >> You're processing all of this data, you know, how do you do so efficiently? You know. And so we're the fastest. We do it in near real time for everything. And you know, compared to our competitors, that are doing, you know, some lightweight side scanning technology, and maybe they'll do a check or a scan once a day or twice a day. Well, the adversaries aren't sleeping, you know, over the other period of time. So you want to make it as near real time as you can. For certain applications, you know, you get it down into minutes. And ideally over time, you want to get it to actual real time. And so there's a number of different technologies that we're deploying, and that we're putting patents around. To be able to do as much data as you possibly can, as fast as you possibly can. But it varies on the application of the workload. >> And double click in the technology. >> Yeah. >> Like tell me more about it. What is it? Is it a purpose-built data store? >> Yeah. Is it a special engine? >> Yeah. There's two primary elements to it. The first part is the polygraph data platform. And this is this ingestion engine, the processing engine, you know, correlation engine. That has two way APIs, integrates into your workflows, ingests as much data as we possibly can, et cetera. And unifies all the data feeds that you've got. So you can actually correlate and provide context. And security now in the cloud, and certainly in the future, the real value is being able to create context and correlate data across the board. And when you're out buying a bunch of different companies, that have different architectures, that are all rules based engines, and trying to stitch them together, they don't talk to each other. And so the hard part first, that we wanted to go do, was build a cloud native platform, that was going to allow us to build applications, that set on top of it. And that, you know, handled a number of different security requirements. You know, behavior based threat detection, obviously is one of the first services that we offered, because we're correlating all this data, and we're creating a baseline, and we're figuring out what normal is. Okay, well, if your normal behavior is this. What's abnormal? So you can catch not only a known bad threat, you know, with rules, et cetera, that are embedded into our engines, but zero day threats and unknown unknowns. Which are the really scary stuff, when you're in the cloud. So, you know, we've got, you know, application, you know, for behavioral threat detection. You have vulnerability management, you know. Where you're just constantly figuring out, what vulnerabilities do I have across my development cycle and my run time cycle, that I need to be able to keep up on, and sort of patch and remediate, et cetera. And then compliance. And as you're pulling all these data points in, you want to be able to deliver compliance reports really efficiently. And the Biden Administration, you know, is issuing, you know, all of these, you know, new edicts for regulations. >> Sure. Obviously countries in, you know, in Europe. They have been way ahead of the US, in some of these regulations. And so they all point to a need for continuous monitoring of your cloud environment, to ensure that you're, you know, in real time, or near real time complying with the environments. And so being able to hit a button based on all of this data and, you know, deliver a compliance report for X regulation or Y regulation, saves a lot of time. But also ensures customers are secure. >> And you mentioned your multi-cloud, so you started on AWS. >> Yeah. >> My observation is that AWS isn't out trying to directly, I mean, they do some monetization of their security, >> Yep. >> But it's more like security here it is, you know. Use it. >> Yeah. >> It comes with the package. Whereas for instance, take Microsoft for example, I mean, they have a big security business. I mean, they show up in the spending surveys. >> Yeah. >> Like wow, off the charts. So sort of different philosophies there. But when you say you're Multicloud, you're saying, okay, you run on AWS. Obviously you run on Azure. You run on GCP as well. >> Yeah. Yep. >> We coin this term, Supercloud, Dave. It's it's like Multicloud 2.0. The idea is it's a layer above the clouds, that hides the underlying complexity. >> Yep. >> You mentioned Graviton. >> Yep. >> You worry about Graviton. Your customer don't, necessarily. >> We should be able to extract that. >> Right. But that's going to be different than what goes on Microsoft. With Microsoft primitives or Google primitives. Are you essentially building a Supercloud, that adds value. A layer, >> Yeah. >> on top of those Hyperscalers. >> Yeah. >> Or is it more, we're just going to run within each of those individual environments. >> Yeah. No we definitely want to build the Security OS, you know, that sort of goes across the Supercloud, as you talk about. >> Yeah. >> I would go back on one thing that you said, you know, if you listen to Andy or Adam now, talk about AWS services, and all the future growth that they have. I mean, security is job one. >> Yeah. Right, so AWS takes security incredibly seriously. They need to. You know, they want to be able to provide confidence to their customers, that they're going to be able to migrate over safely. So I think they do care deeply it. >> Oh, big time. >> And are delivering a number of services, to be able to do it for their customers,. Which is great. We want to enhance that, and provide Multicloud flexibility, deeper dives on Kubernetes and containers, and just want to stay ahead, and provide an option for companies. You know, when you're operating in AWS, to have better or deeper, more valuable, more impactful services to go layer on top. >> I see. >> And then provide the flexibility, like you said, of, hey look, I want to have a consistent security posture across all of my clouds. If I choose to use other clouds. And you don't, the schema are different on all three. You know, all of the protocols are different, et cetera. And so removing all of that complexity. I was just talking with the CISO at our event last night, we had like 300 people at this kind of cocktail event. Boston's pretty cool in the summertime. >> Yeah. Boston in July is great. >> It's pretty great. They're like going, look, we don't want to hire a Azure specialist, and a AWS specialist, and you know, a GCP specialist. We don't want to have somebody that is deep on just doing container security, or Kubernetes security. Like we want you to abstract all of that. Make sense of it. Stay above it. Continue to innovate. So we can actually do what we want to do. Which is, we want to build. We want to build fast. Like the whole point here, is to enable developers to do their job without restriction. And they intuitively want to have, and build secure applications. And, you know, because they recognize the importance of it. But if it slows them down. They're not going to do it. >> Right. >> And so we want to make that as seamless as possible, on top of AWS. So their developers feel confident. They can move more and more applications over. >> So to your point about AWS, I totally agree. I mean, security's job one. I guess the way I would say it is, from a monetization standpoint. >> Yeah. >> My sense is AWS, right now anyway, is saying we want the ecosystem, >> Yeah. >> to be able to monetize. >> Yeah. >> We're going to leave that meat on the bone for those guys. Whereas Microsoft is, they sometimes, they're certainly competitive with the ecosystem, sometimes. End point. >> Yeah. >> They compete with CrowdStrike. There's no question about it. >> Yeah. >> Are they competitive with you in some cases? Or they're not there yet. Are you different. >> Go talk to George, about what he thinks about CrowdStrike and I, versus Microsoft. (Dave V laughing) >> Well, yeah. (Dave H laughing) A good point in terms of the depth of capability. >> Yeah. >> But there's definitely opportunities for the ecosystem there as well. >> Yeah. But I think on certain parts of that, there are more, there's higher competitiveness, than less. I think in the cloud, you know, having flexibility and being open, is kind of core to the cloud's premise. And I think all three of the Hyperscalers, want to provide a choice for customers. >> Sure. >> And they want to provide flexibility. They obviously, want to monetize as much as they possibly can too. And I think they have varying strategies of those. And I do think AWS is the most open. And they're also the biggest. And I think that bodes well for what the marketplace really wants. You know, if you are a customer, and you want to go all in for everything, with one cloud. All right, well then maybe you use their security stack exclusively. But that's not the trend on where we're going. And we're talking about a $154 billion market, growing at, you know, 15% for you. It's a $360 billion market. And one of the most fragmented in tech. Customers do want to consolidate on platforms. >> Absolutely. >> If they can consolidate on CSPs, or they consolidate on the Supercloud, I'm going to steal that from you, with the super cloud. You know, to be able to, you know, have a consistent clarity posture, for all of your workloads, containers, Kubernetes, applications, across multiple clouds. That's what we think customers want. That's what we think customers need. There's opportunity for us to build a really big, iconic security business as well. >> I'm going to make you laugh. Because, so AWS doesn't like the term Supercloud. And the reason is, because it implies that they're the infrastructure, kind of commodity layer. And my response is, you'll appreciate this, is Pure Storage has 70% gross margin. >> Yeah. Yep. >> Right. Look at Intel. You've got Graviton. You control, you can have Intel, like gross margin. So maybe, your infrastructure. But it's not necessarily commodity, >> Yeah. >> But it leaves, to me, it leaves the ecosystem value. Companies like Lacework. >> Amazon offers 220 something services, for customers to make their lives easier. There's all kinds of ways, where they're actually focusing on delivering value, to their customers that, you know, is far from commodity and always will be. >> Right. >> I think when it comes to security, you're going to have, you're going to need security in your database. Your storage. Your network compute. They do all of that, you know, monetize all of that. But customers also want to, you know, be able to have a consistent security posture, across the Supercloud. You know, I mean, they don't have time. I think security practitioners, and security hiring in general, hasn't had unemployment for like seven or 10 years. It's the hardest place to find quality people. >> Right. >> And so our goal, is if we can up level and enable security practitioners, and DevSecOps teams, to be able to do their job more efficiently, it's a good thing for them. It's a win for them. And not having to be experts, on all of these different environments, that they're operating in. I think is really important. >> Here's the other thing about Supercloud. And I think you'll appreciate this. You know, Andreesen says, all companies are software companies. Well, all companies are becoming SAS and Cloud companies. >> Yeah. >> So you look at Capital One. What they're doing with on Snowflake. You know, Goldman what they're doing with AWS. Oracle by Cerner, you know that. So industries, incumbents, are building their own Superclouds. They don't want to deal with all this crap. >> Yeah. >> They want to add their own value. Their own tools. Their own software. And their own data. >> Yeah. >> And actually serve their specific vertical markets. >> Yeah. A hundred percent. And they also don't want tools, you know. >> Right. >> I think when you're in the security business. It's so fragmented, because you had to write a rule for everything, and they were super nuanced. When you move to a data driven approach, and you actually have a platform, that removes the need to actually have very nuanced, specific expertise across all these different. Because you're combining it into your baseline and understanding it. And so, customers want to move from, you know, one of the biggest banks in North America, has 550 different point solutions for security. Thousands of employees to go manage all of this. They would love to be able to consolidate around a few platforms, that integrate the data flows, so they can correlate value across it. And this platform piece is really what differentiates our approach. Is that we already have that built. And everybody else is sort of working backwards from Legacy approaches, or from a acquired companies. We built it natively from the ground up. Which we believe gives us an advantage for our customers. An advantage of time to market speed, efficacy, and a much lower cost. Because you can get rid of a bunch of point solutions in the process. >> You mentioned Devs. Did you, you know, that continuous experience across clouds. >> Yep. >> Do you have like the equivalent of a Super PAs layer, that is specific to your use case? Or are you kind of using, I mean, I know you use off the shelf tooling, >> Yep. >> you allow your developers to do so, but is, is the developer experience consistent across the clouds? That's really what I'm asking? >> Well, I think it is. I mean, I was talking to another CEO of a company, you know, on the floor here, and it's focusing on the build side. You know we focus on both the build and the run time. >> Right. >> And we were talking about, you know, how many different applications, or how fragmented the developer experience is, with all the different tools that they have. And it's phenomenal. I mean, like this, either through acquisition or by business unit. And developers, like to have choice. Like they don't like to be told what to do or be standardized, you know, by anybody. Especially some compliance organization or security organization. And so, it's hard for them to have a consistent experience, that they're using a bunch of different tools. And so, yeah. We want to be able to integrate into whatever workload, a workflow a customer uses, in their Dev cycle, and then provide consistent security on top of it. I mean, for our own company, you know, we got about a thousand people. And a lot of them are developers. We want to make it as consistent as we possibly can, so they can build code, to deliver security efficacy, and new applications and new tools for us. So I think where you can standardize and leverage a platform approach, it's always going to be better. But the reality is, especially in large existing companies. You know, they've got lots of different tools. And so you need to be able to set above it. Integrate with it and make it consistent. And security is one of those areas, where having a consistent view, a consistent posture, a consistent read, that you can report to the board, and know that your efficacy is there. Whatever environment you're in. Whatever cloud you're on. Is super, super critical. >> And in your swim lane, you're providing that consistency, >> Yep. >> for Devs. But you're right. You've got to worry about containers. You got to worry about the run time. You got to worry about the platform. The DevSecOps team is, you know, becoming the new line of defense, right? I mean, security experts. >> Absolutely. Well, we have one customer, that we just have been working with for four years ago. And it's, you know, a Fortune, a Global 2000 company. Bunch of different industries grew through acquisition, et cetera. And four years ago, their CTO said, we're moving to the cloud. Because we want to drive efficiency and agility, and better service offerings across the board. And so he has engineering. So he has Dev, you know. He has operations. And he has security teams. And so organizationally, I think that'll be the model, as companies do follow entries in to sort of, you know, quote. Become software companies and move on their digital journeys. Integrating the functions of DevSecOps organizationally, and then providing a platform, and enabling platform, that makes their jobs easier for each of those personas. >> Right. >> Is what we do. You want to enable companies to shift left. And if you can solve the problems in the code, on the front end, you know, before it gets out on the run time. You're going to solve, you know, a lot of issues that exist. Correlating the data, between what's happening in your runtime, and what's happening in your build time, and being able to fix it in near realtime. And integrate with those joint workflows. We think is the right answer. >> Yeah. >> Over the long haul. So it's a pretty exciting time. >> Yeah. Shift left, ops team shield right. Hat, great to see you again. >> Good to see you, Dave. >> Thanks so much for coming on theCUBE. >> Thanks a lot. >> All Right. Keep it right there. We'll be back. Re:Inforce 2022. You're watching theCUBE from Boston. (calming music)

>>Hey, everyone. Welcome to the AWS partner, showcase women in tech. I'm Lisa Martin from the cube. And today we're gonna be looking into the exciting evolution of women in the tech industry. I'm going to be joined by Danielle GShock, the ISP PSA director at AWS. And we have the privilege of speaking with some wicked smart women from Teradata NetApp. JFI a 10th revolution group, company and honeycomb.io. We're gonna look at some of the challenges and biases that women face in the tech industry, especially in leadership roles. We're also gonna be exploring how are these tech companies addressing diversity, equity and inclusion across their organizations? How can we get more young girls into stem earlier in their careers? So many questions. So let's go ahead and get started. This is the AWS partner showcase women in tech. Hey, everyone. Welcome to the AWS partner showcase. This is season one, episode three. And I'm your host, Lisa Martin. I've got two great guests here with me to talk about women in tech. Hillary Ashton joins us the chief product officer at Terry data. And Danielle Greshaw is back with us, the ISV PSA director at AWS ladies. It's great to have you on the program talking through such an important topic, Hillary, let's go ahead and start with you. Give us a little bit of an intro into you, your background, and a little bit about Teradata. >>Yeah, absolutely. So I'm Hillary Ashton. I head up the products organization. So that's our engineering product management office of the CTO team. Um, at Teradata I've been with Terra data for just about three years and really have spent the last several decades. If I can say that in the data and analytics space, um, I spent time, uh, really focused on the value of, of analytics at scale, and I'm super excited to be here at Teradata. I'm also a mom of two teenage boys. And so as we talk about women in tech, I think there's, um, uh, lots of different dimensions and angles of that. Um, at Teradata, we are partnered very deeply with AWS and happy to talk a little bit more about that, um, throughout this discussion as well. >>Excellent. A busy mom of two teen boys. My goodness. I don't know how you do it. Let's now look, Atter data's views of diversity, equity and inclusion. It's a, the, it's a topic that's important to everyone, but give us a snapshot into some of the initiatives that Terra data has there. >>Yeah, I have to say, I am super proud to be working at Teradata. We have gone through, uh, a series of transformations, but I think it starts with culture and we are deeply committed to diversity, equity and inclusion. It's really more than just a statement here. It's just how we live our lives. Um, and we use, uh, data to back that up. Um, in fact, we were named one of the world's most ethical companies for the 13th year in a row. Um, and all of our executive leadership team has taken an oath around D E and I that's available on LinkedIn as well. So, um, in fact, our leadership team reporting into the CEO is just about 50 50, um, men and women, which is the first time I've worked in a company where that has been the case. And I think as individuals, we can probably appreciate what a huge difference that makes in terms of not just being a representative, but truly being on a, on a diverse and equitable, uh, team. And I think it really, uh, improves the behaviors that we can bring, um, to our office. >>There's so much value in that. It's I impressive to see about a 50 50 at the leadership level. That's not something that we see very often. Tell me how you, Hillary, how did you get into tech? Were you an engineering person by computer science, or did you have more of a zigzaggy path to where you are now? >>I'm gonna pick door number two and say more zigzaggy. Um, I started off thinking, um, that I started off as a political science major or a government major. Um, and I was probably destined to go into, um, the law field, but actually took a summer course at Harvard. I did not go to Harvard, but I took a summer course there and learned a lot about multimedia and some programming. And that really set me on a trajectory of how, um, data and analytics can truly provide value and, and outcomes to our customers. Um, and I have been living that life ever since. Um, I graduated from college, so, um, I was very excited and privileged in my early career to, uh, work in a company where I found after my first year that I was managing, um, uh, kids, people who had graduated from Harvard business school and from MIT Sloan school. Um, and that was super crazy, cuz I did not go to either of those schools, but I sort of have always had a natural knack for how do you take technology and, and the really cool things that technology can do, but because I'm not a programmer by training, I'm really focused on the value that I'm able to help, um, organizations really extract value, um, from the technology that we can create, which I think is fantastic. >>I think there's so much value in having a zigzag path into tech. You bring Danielle, you and I have talked about this many times you bring such breadth and such a wide perspective. That really is such a value. Add to teams. Danielle, talk to us from AWS's perspective about what can be done to encourage more young women to get and under and underrepresented groups as well, to get into stem and stay. >>Yeah, and this is definitely a challenge as we're trying to grow our organization and kind of shift the numbers. And the reality is, especially with the more senior folks in our organization, unless you bring folks with a zigzag path, the likelihood is you won't be able to change the numbers that you have. Um, but for me, it's really been about, uh, looking at that, uh, the folks who are just graduating college, maybe in other roles where they are adjacent to technology and to try to spark their interest and show that yes, they can do it because oftentimes it's really about believing in themselves and, and realizing that we need folks with all sorts of different perspectives to kind of come in, to be able to help really, um, provide both products and services and solutions for all types of people inside of technology, which requires all sorts of perspectives. >>Yeah, the diverse perspectives. There's so much value and there's a lot of data that demonstrates how much value revenue impact organizations can make by having diversity, especially at the leadership level. Hillary, let's go back to you. We talked about your career path. You talked about some of the importance of the focus on de and I at Tarana, but what are, what do you think can be done to encourage, to sorry, to recruit more young women and under groups into tech, any, any carrot there that you think are really important that we need to be dangling more of? >>Yeah, absolutely. And I'll build on what Danielle just said. I think the, um, bringing in diverse understandings, um, of, of customer outcomes, I mean, I, the we've really moved from technology for technology's sake and I know AWS and entirety to have had a lot of conversations on how do we drive customer outcomes that are differentiated in the market and really being customer centric and technology is wonderful. You can do wonderful things with it. You can do not so wonderful things with it as well, but unless you're really focused on the outcomes and what customers are seeking, um, technology is not hugely valuable. And so I think bringing in people who understand, um, voice of customer who understand those outcomes, and those are not necessarily the, the, the folks who are PhD in mathematics or statistics, um, those can be people who understand a day in the life of a data scientist or a day in the life of a citizen data scientist. And so really working to bridge the high impact technology with the practical kind of usability, usefulness of data and analytics in our cases, I think is something that we need more of in tech and sort of demystifying tech and freeing technology so that everybody can use it and having a really wide range of people who understand not just the bits and bites and, and how to program, but also the value in outcomes that technology through data and analytics can drive. >>Yeah. You know, we often talk about the hard skills, but this, their soft skills are equally, if not more important that even just being curious, being willing to ask questions, being not afraid to be vulnerable, being able to show those sides of your personality. I think those are important for, for young women and underrepresented groups to understand that those are just as important as some of the harder technical skills that can be taught. >>That's right. >>What do you think about from a bias perspective, Hillary, what have you seen in the tech industry and how do you think we can leverage culture as you talked about to help dial down some of the biases that are going on? >>Yeah. I mean, I think first of all, and, and there's some interesting data out there that says that 90% of the population, which includes a lot of women have some inherent bias in their day, day behaviors when it comes to to women in particular. But I'm sure that that is true across all kinds of, of, um, diverse and underrepresented folks in, in the world. And so I think acknowledging that we have bias and actually really learning how, what that can look like, how that can show up. We might be sitting here and thinking, oh, of course I don't have any bias. And then you realize that, um, as you, as you learn more about, um, different types of bias, that actually you do need to kind of, um, account for that and change behaviors. And so I think learning is sort of a fundamental, um, uh, grounding for all of us to really know what bias looks like, know how it shows up in each of us. >>Um, if we're leaders know how it shows up in our teams and make sure that we are constantly getting better, we're, we're not gonna be perfect anytime soon. But I think being on a path to improvement to overcoming bias, um, is really, is really critical. And part of that is really starting the dialogue, having the conversations, holding ourselves and each other accountable, um, when things aren't going in, in a, in a Coptic way and being able to talk openly about that, that felt, um, like maybe there was some bias in that interaction and how do we, um, how do we make good on that? How do we change our, our behavior? Fundamentally of course, data and analytics can have some bias in it as well. And so I think as we look at the, the technology aspect of bias, um, looking at at ethical AI, I think is a, a really important, uh, additional area. And I'm sure we could spend another 20 minutes talking about that, but I, I would be remiss if I didn't talk more about sort of the bias, um, and the over the opportunity to overcome bias in data and analytics as well. >>Yeah. The opportunity to overcome it is definitely there you bring up a couple of really good points, Hillary. It, it starts with awareness. We need to be aware that there are inherent biases in data in thought. And also to your other point, hold people accountable ourselves, our teammates, that's critical to being able to, to dial that back down, Daniel, I wanna get your perspective on, on your view of women in leadership roles. Do you think that we have good representation or we still have work to do in there? >>I definitely think in both technical and product roles, we definitely have some work to do. And, you know, when I think about, um, our partnership with Teradata, part of the reason why it's so important is, you know, Teradata solution is really the brains of a lot of companies. Um, you know, the what, how, what they differentiate on how they figure out insights into their business. And it's, it's all about the product itself and the data and the same is true at AWS. And, you know, we really could do some work to have some more women in these technical roles, as well as in the product, shaping the products. Uh, just for all the reasons that we just kind of talked about over the last 10 minutes, um, in order to, you know, move bias out of our, um, out of our solutions and also to just build better products and have, uh, better, you know, outcomes for customers. So I think there's a bit of work to do still. >>I agree. There's definitely a bit of work to do, and it's all about delivering those better outcomes for customers at the end of the day, we need to figure out what the right ways are of doing that and working together in a community. Um, we've had obviously a lot had changed in the last couple of years, Hillary, what's your, what have you seen in terms of the impact that the pandemic has had on this status of women in tech? Has it been a pro is silver lining the opposite? What are you seeing? >>Yeah, I mean, certainly there's data out there that tells us factually that it has been, um, very difficult for women during COVID 19. Um, women have, uh, dropped out of the workforce for a wide range of, of reasons. Um, and, and that I think is going to set us back all of us, the, the Royal us or the Royal we back, um, years and years. Um, and, and it's very unfortunate because I think we we're at a time when we're making great progress and now to see COVID, um, setting us back in, in such a powerful way. I think there's work to be done to understand how do we bring people back into the workforce. Um, how do we do that? Understanding work life balance, better understanding virtual and remote, working better. I think in the technology sector, um, we've really embraced, um, hybrid virtual work and are, are empowering people to bring their whole selves to work. >>And I think if anything, these, these zoom calls have, um, both for the men and the women on my team. In fact, I would say much more. So for the men on my team, I'm seeing, I was seeing more kids in the background, more kind of split childcare duties, more ability to start talking about, um, other responsibilities that maybe they had, uh, especially in the early days of COVID where maybe daycares were shut down. And, um, you had, you know, maybe a parent was sick. And so we saw quite a lot of, um, people bringing their whole selves to the office, which I think was, was really wonderful. Um, uh, even our CEO saw some of that. And I think, um, that that really changes the dialogue, right? It changes it to maybe scheduling meetings at a time when, um, people can do it after daycare drop off. >>Um, and really allowing that both for men and for women makes it better for, for women overall. So I would like to think that this hybrid working, um, environment and that this, um, uh, whole view into somebody's life that COVID has really provided for probably for white collar workers, if I'm being honest for, um, people who are in a, at a better point of privilege, they don't necessarily have to go into the office every day. I would like to think that tech can lead the way in, um, you know, coming out of the, the old COVID. I don't know if we have a new COVID coming, but the old COVID and really leading the way for women and for people, um, to transform how we do work, um, leveraging data and analytics, but also, um, overcoming some of the, the disparities that exist for women in particular in the workforce. >>Yeah, I think there's, there's like we say, there's a lot of opportunity there and I like your point of hopefully tech can be that guiding light that shows us this can be done. We're all humans at the end of the day. And ultimately if we're able to have some sort of work life balance, everything benefits, our work or more productive, higher performing teams impacts customers, right? There's so much value that can be gleaned from, from that hybrid model and embracing for humans. We need to be able to, to work when we can, we've learned that you don't have to be, you know, in an office 24, 7 commuting, crazy hours flying all around the world. We can get a lot of things done in a ways that fit people's lives rather than taking command over it. Wanna get your advice, Hillary, if you were to talk to your younger self, what would be some of the key pieces of advice you would say? And Danielle and I have talked about this before, and sometimes we, we would both agree on like, ask more questions. Don't be afraid to raise your hand, but what advice would you give your younger self and that younger generation in terms of being inspired to get into tech >>Oh, inspired and being in tech? You know, I think looking at technology as, in some ways, I feel like we do a disservice to, um, inclusion when we talk about stem, cuz I think stem can be kind of daunting. It can be a little scary for people for younger people. When I, when I go and talk to folks at schools, I think stem is like, oh, all the super smart kids are over there. They're all like maybe they're all men. And so, um, it's, it's a little, uh, intimidating. Um, and stem is actually, you know, especially for, um, people joining the workforce today. It's actually how you've been living your life since you were born. I mean, you know, stem inside and out because you walk around with a phone and you know how to get your internet working and like that is technology right. >>Fundamentally. And so demystifying stem as something that is around how we, um, actually make our, our lives useful and, and, and how we can change outcomes. Um, through technology I think is maybe a different lens to put on it. So, and there's absolutely for, for hard sciences, there's absolutely a, a great place in the world for folks who wanna pursue that and men and women can do that. So I, I don't want to be, um, uh, setting the wrong expectations, but I, I think stem is, is very holistic in, um, in the change that's happening globally for us today across economies, across global warming, across all kinds of impactful issues. And so I think everybody who's interested in, in some of that world change can participate in stem. It just may be through a different, through a different lens than how we classically talk about stem. >>So I think there's great opportunity to demystify stem. I think also, um, what I would tell my younger self is choose your bosses wisely. And that sounds really funny. That sounds like inside out almost, but I think choose the person that you're gonna work for in your first five to seven years. And it might be more than one person, but be, be selective, maybe be a little less selective about the exact company or the exact title. I think picking somebody that, you know, we talk about mentors and we talk about sponsors and those are important. Um, but the person you're gonna spend in your early career, a lot of your day with a lot, who's gonna influence a lot of the outcomes for you. That is the person that you, I think want to be more selective about, um, because that person can set you up for success and give you opportunities and set you on course to be, um, a standout or that person can hold you back. >>And that person can put you in the corner and not invite you to the meetings and not give you those opportunities. And so we're in an economy today where you actually can, um, be a little bit picky about who you go and work for. And I would encourage my younger self. I actually, I just lucked out actually, but I think that, um, my first boss really set me, um, up for success, gave me a lot of feedback and coaching. Um, and some of it was really hard to hear, but it really set me up for, for, um, the, the path that I've been on ever since. So it, that would be my advice. >>I love that advice. I it's brilliant. I didn't think it choose your bosses wisely. Isn't something that we primarily think about. I think a lot of people think about the big name companies that they wanna go after and put on a resume, but you bring up a great point. And Danielle and I have talked about this with other guests about mentors and sponsors. I think that is brilliant advice and also more work to do to demystify stem. But luckily we have great family leaders like the two of you helping us to do that. Ladies, I wanna thank you so much for joining me on the program today and talking through what you're seeing in de and I, what your companies are doing and the opportunities that we have to move the needle. Appreciate your time. >>Thank you so much. Great to see you, Danielle. Thank you Lisa, to see you. >>My pleasure for my guests. I'm Lisa Martin. You're watching the AWS partner showcase season one, episode three. Hey everyone. Welcome to the AWS partner showcase. This is season one, episode three, with a focus on women in tech. I'm your host, Lisa Martin. I've got two guests here with me, Sue Peretti, the EVP of global AWS strategic alliances at Jefferson Frank, a 10th revolution group company, and Danielle brushoff. One of our cube alumni joins us ISV PSA director, ladies. It's great to have you on the program talking about a, a topic that is near and dear to my heart at women in tech. >>Thank you, Lisa. >>So let's go ahead and start with you. Give the audience an understanding of Jefferson Frank, what does the company do and about the partnership with AWS? >>Sure. Um, so let's just start, uh, Jefferson Frank is a 10th revolution group company. And if you look at it, it's really talent as a service. So Jefferson Frank provides talent solutions all over the world for AWS clients, partners and users, et cetera. And we have a sister company called revelent, which is a talent creation company within the AWS ecosystem. So we create talent and put it out in the ecosystem. Usually underrepresented groups over half of them are women. And then we also have, uh, a company called rubra, which is a delivery model around AWS technology. So all three companies fall under the 10th revolution group organization. >>Got it. Danielle, talk to me a little bit about from AWS's perspective and the focus on hiring more women in technology and about the partnership. >>Yes. I mean, this has definitely been a focus ever since I joined eight years ago, but also just especially in the last few years we've grown exponentially and our customer base has changed. You know, we wanna have, uh, an organization interacting with them that reflects our customers, right. And, uh, we know that we need to keep pace with that even with our growth. And so we've very much focused on early career talent, um, bringing more women and underrepresented minorities into the organization, sponsoring those folks, promoting them, uh, giving them paths to growth, to grow inside of the organization. I'm an example of that. Of course I benefit benefited from it, but also I try to bring that into my organization as well. And it's super important. >>Tell me a little bit about how you benefited from that, Danielle. >>Um, I just think that, um, you know, I I've been able to get, you know, a seat at the table. I think that, um, I feel as though I have folks supporting me, uh, very deeply and wanna see me succeed. And also they put me forth as, um, you know, a, represent a representative, uh, to bring more women into the organization as well. And I think, um, they give me a platform, uh, in order to do that, um, like this, um, but also many other, uh, spots as well. Um, and I'm happy to do it because I feel that, you know, if you always wanna feel that you're making a difference in your job, and that is definitely a place where I get that time and space in order to be that representative to, um, bring more, more women into benefiting from having careers in technology, which there's a lot of value there, >>A lot of value. Absolutely. So back over to you, what are some of the trends that you are seeing from a gender diversity perspective in tech? We know the, the numbers of women in technical positions, uh, right. There's so much data out there that shows when girls start dropping up, but what are some of the trends that you are seeing? >>So it's, that's a really interesting question. And, and Lisa, I had a whole bunch of data points that I wanted to share with you, but just two weeks ago, uh, I was in San Francisco with AWS at the, at the summit. And we were talking about this. We were talking about how we can collectively together attract more women, not only to, uh, AWS, not only to technology, but to the AWS ecosystem in particular. And it was fascinating because I was talking about, uh, the challenges that women have and how hard to believe, but about 5% of women who were in the ecosystem have left in the past few years, which was really, really, uh, something that shocked everyone when we, when we were talking about it, because all of the things that we've been asking for, for instance, uh, working from home, um, better pay, uh, more flexibility, uh, better maternity leave seems like those things are happening. >>So we're getting what we want, but people are leaving. And it seemed like the feedback that we got was that a lot of women still felt very underrepresented. The number one thing was that they, they couldn't be, you can't be what you can't see. So because they, we feel collectively women, uh, people who identify as women just don't see enough women in leadership, they don't see enough mentors. Um, I think I've had great mentors, but, but just not enough. I'm lucky enough to have a pres a president of our company, the president of our company, Zoe Morris is a woman and she does lead by example. So I'm very lucky for that. And Jefferson, Frank really quickly, we put out a hiring a salary and hiring guide a career and hiring guide every year and the data points. And that's about 65 pages long. No one else does it. Uh, it gives an abundance of information around, uh, everything about the AWS ecosystem that a hiring manager might need to know. But there is what, what I thought was really unbelievable was that only 7% of the people that responded to it were women. So my goal, uh, being that we have such a very big global platform is to get more women to respond to that survey so we can get as much information and take action. So >>Absolutely 7%. So a long way to go there. Danielle, talk to me about AWS's focus on women in tech. I was watching, um, Sue, I saw that you shared on LinkedIn, the Ted talk that the CEO and founder of girls and co did. And one of the things that she said was that there was a, a survey that HP did some years back that showed that, um, 60%, that, that men will apply for jobs if they only meet 60% of the list of requirements. Whereas with females, it's far, far less, we've all been in that imposter syndrome, um, conundrum before. But Danielle, talk to us about AWS, a specific focus here to get these numbers up. >>I think it speaks to what Susan was talking about, how, you know, I think we're approaching it top and bottom, right? We're looking out at what are the, who are the women who are currently in technical positions and how can we make AWS an attractive place for them to work? And that's all a lot of the changes that we've had around maternity leave and, and those types of things, but then also, um, more flexible working, uh, can, you know, uh, arrangements, but then also, um, early, how can we actually impact early, um, career women and actually women who are still in school. Um, and our training and certification team is doing amazing things to get, um, more girls exposed to AWS, to technology, um, and make it a less intimidating place and have them look at employees from AWS and say like, oh, I can see myself in those people. >>Um, and kind of actually growing the viable pool of candidates. I think, you know, we're, we're limited with the viable pool of candidates, um, when you're talking about mid to late career. Um, but how can we, you know, help retrain women who are coming back into the workplace after, you know, having a child and how can we help with military women who want to, uh, or underrepresented minorities who wanna move into AWS, we have a great military program, but then also just that early high school, uh, career, you know, getting them in, in that trajectory. >>Sue, is that something that Jefferson Frank is also able to help with is, you know, getting those younger girls before they start to feel there's something wrong with me. I don't get this. Talk to us about how Jefferson Frank can help really drive up that in those younger girls. >>Uh, let me tell you one other thing to refer back to that summit that we did, uh, we had breakout sessions and that was one of the topics. What can cuz that's the goal, right? To make sure that, that there are ways to attract them. That's the goal? So some of the things that we talked about was mentoring programs, uh, from a very young age, some people said high school, but then we said even earlier, goes back to you. Can't be what you can't see. So, uh, getting mentoring programs, uh, established, uh, we also talked about some of the great ideas was being careful of how we speak to women using the right language to attract them. And some, there was a teachable moment for, for me there actually, it was really wonderful because, um, an African American woman said to me, Sue and I, I was talking about how you can't be what you can't see. >>And what she said was Sue, it's really different. Um, for me as an African American woman, uh, or she identified, uh, as nonbinary, but she was relating to African American women. She said, your white woman, your journey was very different than my journey. And I thought, this is how we're going to learn. I wasn't offended by her calling me out at all. It was a teachable moment. And I thought I understood that, but those are the things that we need to educate people on those, those moments where we think we're, we're saying and doing the right thing, but we really need to get that bias out there. So here at Jefferson, Frank, we're, we're trying really hard to get that careers and hiring guide out there. It's on our website to get more women, uh, to talk to it, but to make suggestions in partnership with AWS around how we can do this mentoring, we have a mentor me program. We go around the country and do things like this. We, we try to get the education out there in partnership with AWS. Uh, we have a, a women's group, a women's leadership group, uh, so much that, that we do, and we try to do it in partnership with AWS. >>Danielle, can you comment on the impact that AWS has made so far, um, regarding some of the trends and, and gender diversity that Sue was talking about? What's the impact that's been made so far with this partnership? >>Well, I mean, I think just being able to get more of the data and have awareness of leaders, uh, on how <laugh>, you know, it used to be a, a couple years back, I would feel like sometimes the, um, uh, solving to bring more women into the organization was kind of something that folks thought, oh, this is Danielle is gonna solve this. You know? And I think a lot of folks now realize, oh, this is something that we all need to solve for. And a lot of my colleagues who maybe a couple years ago, didn't have any awareness or didn't even have the tools to do what they needed to do in order to improve the statistics on their, or in their organizations. Now actually have those tools and are able to kind of work with, um, work with companies like Susan's work with Jefferson Frank in order to actually get the data and actually make good decisions and feel as though, you know, they, they often, these are not lived experiences for these folks, so they don't know what they don't know. And by providing data and providing awareness and providing tooling and then setting goals, I think all of those things have really turned, uh, things around in a very positive way. >>And so you bring up a great point about from a diversity perspective, what is Jefferson Frank doing to, to get those data points up, to get more women of, of all well, really underrepresented minorities to, to be able to provide that feedback so that you can, can have the data and gleamy insights from it to help companies like AWS on their strategic objectives. >>Right? So as I, when I go back to that higher that, uh, careers in hiring guide, that is my focus today, really because the more data that we have, I mean, the, and the data takes, uh, you know, we need people to participate in order to, to accurately, uh, get a hold of that data. So that's why we're asking, uh, we're taking the initiative to really expand our focus. We are a global organization with a very, very massive database all over the world, but if people don't take action, then we can't get the right. The, the, the data will not be as accurate as we'd like it to be. Therefore take better action. So what we're doing is we're asking people all over the, all over the world to participate on our website, Jefferson frank.com, the se the high, uh, in the survey. So we can learn as much as we can. >>7% is such a, you know, Danielle and I we're, we've got to partner on this just to sort of get that message out there, get more data so we can execute, uh, some of the other things that we're doing. We're, we're partnering in. As I mentioned, more of these events, uh, we're, we're doing around the summits, we're gonna be having more ed and I events and collecting more information from women. Um, like I said, internally, we do practice what we preach and we have our own programs that are, that are out there that are within our own company where the women who are talking to candidates and clients every single day are trying to get that message out there. So if I'm speaking to a client or one of our internal people are speaking to a client or a candidate, they're telling them, listen, you know, we really are trying to get these numbers up. >>We wanna attract as many people as we can. Would you mind going to this, uh, hiring guide and offering your own information? So we've gotta get that 7% up. We've gotta keep talking. We've gotta keep, uh, getting programs out there. One other thing I wanted to Danielle's point, she mentioned, uh, women in leadership, the number that we gathered was only 9% of women in leadership within the AWS ecosystem. We've gotta get that number up, uh, as well because, um, you know, I know for me, when I see people like Danielle or, or her peers, it inspires me. And I feel like, you know, I just wanna give back, make sure I send the elevator back to the first floor and bring more women in to this amazing ecosystem. >>Absolutely. That's not that metaphor I do too, but we, but to your point to get that those numbers up, not just at AWS, but everywhere else we need, it's a help me help use situation. So ladies underrepresented minorities, if you're watching go to the Jefferson Frank website, take the survey, help provide the data so that the woman here that are doing this amazing work, have it to help make decisions and have more of females and leadership roles or underrepresented minorities. So we can be what we can see. Ladies, thank you so much for joining me today and sharing what you guys are doing together to partner on this important. Cause >>Thank you for having me, Leah, Lisa, >>Thank you. My pleasure for my guests. I'm Lisa Martin. You're watching the cubes coverage of the AWS partner showcase. Thanks for your time. Hey everyone. Welcome to the AWS partner showcase season one, episode three women in tech. I'm your host, Lisa Martin. We've got two female rock stars here with me next. Stephanie Curry joins us the worldwide head of sales and go to market strategy for AWS at NetApp and Danielle GShock is back one of our QM ISV PSA director at AWS. Looking forward to a great conversation, ladies, about a great topic, Stephanie, let's go ahead and start with you. Give us an overview of your story, how you got into tech and what inspired you. >>Thanks so much, Lisa and Danielle. It's great to be on this show with you. Um, thank you for that. Uh, my name's Stephanie cur, as Lisa mentioned, I'm the worldwide head of sales for, uh, AWS at NetApp and run a global team of sales people that sell all things AWS, um, going back 25 years now, uh, when I first started my career in tech, it was kind of by accident. Um, I come from a different background. I have a business background and a technical background from school, um, but had been in a different career and I had an opportunity to try something new. Um, I had an ally really that reached out to me and said, Hey, you'd be great for this role. And I thought, I'd take a chance. I was curious. Um, and, uh, it, it turned out to be a 25 year career, um, that I'm really, really excited about and, and, um, really thankful for that person, for introducing me to the, to the industry >>25 years in counting. I'm sure Danielle, we've talked about your background before. So what I wanna focus on with you is the importance of diversity for high performance. I know what a machine AWS is, and Stephanie'll come back to you with the same question, but talk about that, Danielle, from your perspective, that importance, um, for diversity to drive the performance. >>Yeah. Yeah. I truly believe that, you know, in order to have high performing teams, that you have to have people from all different types of backgrounds and experiences. And we do find that oftentimes being, you know, field facing, if we're not reflecting our customers and connecting with them deeply, um, on, on the levels that they're at, we, we end up missing them. And so for us, it's very important to bring people of lots of different technical backgrounds experiences. And of course, both men, women, and underrepresented minorities and put that forth to our customers, um, in order to make that connection and to end up with better outcomes. So >>Definitely it's all about outcomes, Stephanie, your perspective and NetApp's perspective on diversity for creating highly performant teams and organizations. >>I really aligned with Danielle on the comment she made. And in addition to that, you know, just from building teams in my, um, career know, we've had three times as many women on my team since we started a year ago and our results are really showing in that as well. Um, we find the teams are stronger, they're more collaborative and to Danielle's point really reflective, not only our partners, but our customers themselves. So this really creates connections, which are really, really important to scale our businesses and, and really, uh, meet the customer where they're at as well. So huge proponent of that ourselves, and really finding that we have to be intentional in our hiring and intentional in how we attract diversity to our teams. >>So Stephanie let's stay with you. So a three X increase in women on the team in a year, especially the kind of last year that we've had is really incredible. I, I like your, I, your thoughts on there needs to be a, there needs to be focus and, and thought in how teams are hired. Let's talk about attracting and retaining those women now, especially in sales roles, we all know the number, the percentages of women in technical roles, but what are some of the things that, that you do Stephanie, that NetApp does to attract and retain women in those sales roles? >>The, the attracting part's really interesting. And we find that, you know, you, you read the stats and I'd say in my experience, they're also true in the fact that, um, a lot of women would look at a job description and say, I can't do a hundred percent of that, that, so I'm not even going to apply with the women that we've attracted to our team. We've actually intentionally reached out and targeted those people in a good way, um, to say, Hey, we think you've got what it takes. Some of the feedback I've got from those women are, gosh, I didn't think I could ever get this role. I didn't think I had the skills to do that. And they've been hired and they are doing a phenomenal job. In addition to that, I think a lot of the feedback I've got from these hires are, Hey, it's an aggressive sales is aggressive. Sales is competitive. It's not an environment that I think I can be successful in. And what we're showing them is bring those softer skills around collaboration, around connection, around building teams. And they do, they do bring a lot of that to the team. Then they see others like them there and they know they can be successful cuz they see others like them on the team, >>The whole concept of we can't be what we can't see, but we can be what we can't see is so important. You said a couple things, Stephanie, that really stuck with me. And one of them was an interview on the Cub I was doing, I think a couple weeks ago, um, about women in tech. And the stat that we talked about was that women will apply will not apply for a job unless they meet 100% of the skills and the requirements that it's listed, but men will, if they only meet 60. And I, that just shocked me that I thought, you know, I, I can understand that imposter syndrome is real. It's a huge challenge, but the softer skills, as you mentioned, especially in the last two years, plus the ability to communicate, the ability to collaborate are incredibly important to, to drive that performance of any team of any business. >>Absolutely. >>Danielle, talk to me about your perspective and AWS as well for attracting and retaining talent. And, and, and particularly in some of those challenging roles like sales that as Stephanie said, can be known as aggressive. >>Yeah, for sure. I mean, my team is focused on the technical aspect of the field and we definitely have an uphill battle for sure. Um, two things we are focused on first and foremost is looking at early career women and that how we, how can we bring them into this role, whether in they're in support functions, uh, cl like answering the phone for support calls, et cetera, and how, how can we bring them into this organization, which is a bit more strategic, more proactive. Um, and then the other thing that as far as retention goes, you know, sometimes there will be women who they're on a team and there are no other women on that team. And, and for me, it's about building community inside of AWS and being part of, you know, we have women on solution architecture organizations. We have, uh, you know, I just personally connect people as well and to like, oh, you should meet this person. Oh, you should talk to that person. Because again, sometimes they can't see someone on their team like them and they just need to feel anchored, especially as we've all been, you know, kind of stuck at home, um, during the pandemic, just being able to make those connections with women like them has been super important and just being a, a long tenured Amazonian. Um, that's definitely one thing I'm able to, to bring to the table as well. >>That's so important and impactful and spreads across organizations in a good way. Daniel let's stick with you. Let's talk about some of the allies that you've had sponsors, mentors that have really made a difference. And I said that in past tense, but I also mean in present tense, who are some of those folks now that really inspire you? >>Yeah. I mean, I definitely would say that one of my mentors and someone who, uh, ha has been a sponsor of my career has, uh, Matt YK, who is one of our control tower GMs. He has really sponsored my career and definitely been a supporter of mine and pushed me in positive ways, which has been super helpful. And then other of my business partners, you know, Sabina Joseph, who's a cube alum as well. She definitely has been, was a fabulous partner to work with. Um, and you know, between the two of us for a period of time, we definitely felt like we could, you know, conquer the world. It's very great to go in with a, with another strong woman, um, you know, and, and get things done, um, inside of an organization like AWS. >>Absolutely. And S I've, I've agreed here several times. So Stephanie, same question for you. You talked a little bit about your kind of, one of your, uh, original early allies in the tech industry, but talk to me about allies sponsors, mentors who have, and continue to make a difference in your life. >>Yeah. And, you know, I think it's a great differentiation as well, right? Because I think that mentors teach us sponsors show us the way and allies make room for us at the table. And that is really, really key difference. I think also as women leaders, we need to make room for others at the table too, and not forget those softer skills that we bring to the table. Some of the things that Danielle mentioned as well about making those connections for others, right. And making room for them at the table. Um, some of my allies, a lot of them are men. Brian ABI was my first mentor. Uh, he actually is in the distribution, was in distribution, uh, with advent tech data no longer there. Um, Corey Hutchinson, who's now at Hashi Corp. He's also another ally of mine and remains an ally of mine, even though we're not at the same company any longer. Um, so a lot of these people transcend careers and transcend, um, um, different positions that I've held as well and make room for us. And I think that's just really critical when we're looking for allies and when allies are looking for us, >>I love how you described allies, mentors and sponsors Stephanie. And the difference. I didn't understand the difference between a mentor and a sponsor until a couple of years ago. Do you talk with some of those younger females on your team so that when they come into the organization and maybe they're fresh outta college, or maybe they've transitioned into tech so that they can also learn from you and understand the importance and the difference between the allies and the sponsors and the mentors? >>Absolutely. And I think that's really interesting because I do take, uh, an extra, uh, approach an extra time to really reach out to the women that have joined the team. One. I wanna make sure they stay right. I don't want them feeling, Hey, I'm alone here and I need to, I need to go do something else. Um, and they are located around the world, on my team. They're also different age groups, so early in career, as well as more senior people and really reaching out, making sure they know that I'm there. But also as Danielle had mentioned, connecting them to other people in the community that they can reach out to for those same opportunities and making room for them >>Make room at the table. It's so important. And it can, you never know what a massive difference and impact you can make on someone's life. And I, and I bet there's probably a lot of mentors and sponsors and allies of mine that would be surprised to know, uh, the massive influence they've had Daniel back over. Let's talk about some of the techniques that you employ, that AWS employees to make the work environment, a great place for women to really thrive and, and be retained as Stephanie was saying. Of course that's so important. >>Yeah. I mean, definitely I think that the community building, as well as we have a bit more programmatic mentorship, um, we're trying to get to the point of having a more programmatic sponsorship as well. Um, but I think just making sure that, um, you know, both everything from, uh, recruit to onboard to ever boarding that, uh, they they're the women who come into the organization, whether it's they're coming in on the software engineering side or the field side or the sales side that they feel as that they have someone, uh, working with them to help them drive their career. Those are the key things that were, I think from an organizational perspective are happening across the board. Um, for me personally, when I run my organization, I'm really trying to make sure that people feel that they can come to me at any time open door policy, make sure that they're surfacing any times in which they are feeling excluded or anything like that, any challenges, whether it be with a customer, a partner or with a colleague. Um, and then also of course, just making sure that I'm being a good sponsor, uh, to, to people on my team. Um, that is key. You can talk about it, but you have to start with yourself as well. >>That's a great point. You you've got to, to start with yourself and really reflect on that. Mm-hmm <affirmative> and look, am I, am I embodying what it is that I need? And not that I know they need that focused, thoughtful intention on that is so importants, let's talk about some of the techniques that you use that NetApp uses to make the work environment a great place for those women are marginalized, um, communities to really thrive. >>Yeah. And I appreciate it and much like Danielle, uh, and much like AWS, we have some of those more structured programs, right around sponsorship and around mentorship. Um, probably some growth there, opportunities for allies, because I think that's more of a newer concept in really an informal structure around the allies, but something that we're growing into at NetApp, um, on my team personally, I think, um, leading by example's really key. And unfortunately, a lot of the, um, life stuffs still lands on the women, whether we like it or not. Uh, I have a very, uh, active husband in our household, but I still carry when it push comes to shove it's on me. Um, and I wanna make sure that my team knows it's okay to take some time and do the things you need to do with your family. Um, I'm I show up as myself authentically and I encourage them to do the same. >>So it's okay to say, Hey, I need to take a personal day. I need to focus on some stuff that's happening in my personal life this week now, obviously to make sure your job's covered, but just allowing some of that softer vulnerability to come into the team as well, so that others, um, men and women can feel they can do the same thing. And that it's okay to say, I need to balance my life and I need to do some other things alongside. Um, so it's the formal programs, making sure people have awareness on them. Um, I think it's also softly calling people out on biases and saying, Hey, I'm not sure if you know, this landed that way, but I just wanted to make you aware. And usually the feedback is, oh my gosh, I didn't know. And could you coach me on something that I could do better next time? So all of this is driven through our NetApp formal programs, but then it's also how you manifest it on the teams that we're leading. >>Absolutely. And sometimes having that mirror to reflect into can be really eye-opening and, and allow you to, to see things in a completely different light, which is great. Um, you both talked about, um, kind of being what you, uh, can see, and, and I know both companies are upset customer obsessed in a good way. Talk to me a little bit, Danielle, go back over to you about the AWS NetApp partnership. Um, some of that maybe alignment on, on performance on obviously you guys are very well aligned, uh, in terms of that, but also it sounds like you're quite aligned on diversity and inclusion. >>Well, we definitely do. We have the best partnerships with companies in which we have these value alignments. So I think that is a positive thing, of course, but just from a, from a partnership perspective, you know, from my five now plus years of being a part of the APN, this is, you know, one of the most significant years with our launch of FSX for NetApp. Um, with that, uh, key key service, which we're making available natively on AWS. I, I can't think of a better Testament to the, to the, um, partnership than that. And that's doing incredibly well and it really resonates with our customers. And of course it started with customers and their need for NetApp. Uh, so, you know, that is a reflection, I think, of the success that we're having together. >>And Stephanie talk to, uh, about the partnership from your perspective, NetApp, AWS, what you guys are doing together, cultural alignment, but also your alignment on really bringing diversity into drive performance. >>Yeah, I think it's a, a great question. And I have to say it's just been a phenomenal year. Our relationship has, uh, started before our first party service with FSX N but definitely just, um, uh, the trajectory, um, between the two companies since the announcement about nine months ago has just taken off to a, a new level. Um, we feel like an extended part of the family. We worked together seamlessly. A lot of the people in my team often say we feel like Amazonians. Um, and we're really part of this transformation at NetApp from being that storage hardware company into being an ISV and a cloud company. And we could not do this without the partnership with AWS and without the, uh, first party service of Fs XM that we've recently released. Um, I think that those joint values that Danielle referred to are critical to our success, um, starting with customer obsession and always making sure that we are doing the right thing for the customer. >>We coach our team teams all the time on if you are doing the right thing for the customers, you cannot do anything wrong. Just always put the customer at the, in the center of your decisions. And I think that there is, um, a lot of best practice sharing and collaboration as we go through this change. And I think a lot of it is led by the diverse backgrounds that are on the team, um, female, male, um, race and so forth, and just to really, uh, have different perspectives and different experiences about how we approach this change. Um, so we definitely feel like a part of the family. Uh, we are absolutely loving, uh, working with the AWS team and our team knows that we are the right place, the right time with the right people. >>I love that last question for each of you. And I wanna stick with you Stephanie advice to your younger self, think back five years. What advice would you seen what you've accomplished and maybe the thet route that you've taken along the way, what would you advise your youngest Stephanie self. >>Uh, I would say keep being curious, right? Keep being curious, keep asking questions. And sometimes when you get a no, it's not a bad thing, it just means not right now and find out why and, and try to get feedback as to why maybe that wasn't the right opportunity for you. But, you know, just go for what you want. Continue to be curious, continue to ask questions and find a support network of people around you that wanna help you because they are there and they, they wanna see you be successful too. So never be shy about that stuff. >><laugh> absolutely. And I always say failure does not have to be an, a bad F word. A no can be the beginning of something. Amazing. Danielle, same question for you. Thinking back to when you first started in your career, what advice would you give your younger self? >>Yeah, I think the advice I'd give my younger self would be, don't be afraid to put yourself out there. Um, it's certainly, you know, coming from an engineering background, maybe you wanna stay behind the scenes, not, not do a presentation, not do a public speaking event, those types of things, but back to what the community really needs, this thing. Um, you know, I genuinely now, uh, took me a while to realize it, but I realized I needed to put myself out there in order to, um, you know, allow younger women to see what they could be. So that would be the advice I would give. Don't be afraid to put yourself out there. >>Absolutely. That advice that you both gave are, is so fantastic, so important and so applicable to everybody. Um, don't be afraid to put yourself out there, ask questions. Don't be afraid of a, no, that it's all gonna happen at some point or many points along the way. That can also be good. So thank you ladies. You inspired me. I appreciate you sharing what AWS and NetApp are doing together to strengthen diversity, to strengthen performance and the advice that you both shared for your younger selves was brilliant. Thank you. >>Thank you. >>Thank you >>For my guests. I'm Lisa Martin. You're watching the AWS partner showcase. See you next time. Hey everyone. Welcome to the AWS partner showcase season one, episode three women in tech. I'm your host, Lisa Martin. I've got two female rock stars joining me. Next Vero Reynolds is here engineering manager, telemetry at honeycomb, and one of our cube alumni, Danielle Ock ISV PSA director at AWS. Join us as well. Ladies. It's great to have you talking about a very important topic today. >>Thanks for having us. >>Yeah, thanks for having me. Appreciate it. >>Of course, Vera, let's go ahead and start with you. Tell me about your background and tech. You're coming up on your 10th anniversary. Happy anniversary. >>Thank you. That's right. I can't believe it's been 10 years. Um, but yeah, I started in tech in 2012. Um, I was an engineer for most of that time. Uh, and just recently as a March, switched to engineering management here at honeycomb and, um, you know, throughout my career, I was very much interested in all the things, right. And it was a big FOMO as far as trying a few different, um, companies and products. And I've done things from web development to mobile to platforms. Um, it would be apt to call me a generalist. Um, and in the more recent years I was sort of gravitating more towards developer tool space. And for me that, uh, came in the form of cloud Foundry circle CI and now honeycomb. Um, I actually had my eye on honeycomb for a while before joining, I came across a blog post by charity majors. >>Who's one of our founders and she was actually talking about management and how to pursue that and whether or not it's right, uh, for your career. And so I was like, who is this person? I really like her, uh, found the company. They were pretty small at the time. So I was sort of keeping my eye on them. And then when the time came around for me to look again, I did a little bit more digging, uh, found a lot of talks about the product. And on the one hand they really spoke to me as the solution. They talked about developers owning their coding production and answering questions about what is happening, what are your users seeing? And I felt that pain, I got what they were trying to do. And also on the other hand, every talk I saw at the time was from, uh, an amazing woman <laugh>, which I haven't seen before. Uh, so I came across charity majors again, Christine Y our other founder, and then Liz Jones, who's our principal developer advocate. And that really sealed the deal for me as far as wanting to work here. >>Yeah. Honeycomb is interesting. This is a female founded company. You're two leaders. You mentioned that you like the technology, but you were also attracted because you saw females in the leadership position. Talk to me a little bit about what that's like working for a female led organization at honeycomb. >>Yeah. You know, historically, um, we have tried not to over index on that because there was this, uh, maybe fear awareness of, um, it taking away from our legitimacy as an engineering organization, from our success as a company. Um, but I'm seeing that, uh, rhetoric shift recently because we believe that with great responsibility, uh, with great power comes great responsibility, and we're trying to be more intentional as far as using that attribute of our company. Um, so I would say that for me, it was, um, a choice between a few offers, right. And that was a selling point for sure, because again, I've never experienced it and I've really seen how much they walk that walk. Um, even me being here and me moving into management, I think were both, um, ways in which they really put a lot of trust and support in me. And so, um, I it's been a great ride. >>Excellent. Sounds like it. Before we bring Danielle in to talk about the partnership. I do wanna have you there talk to the audience a little bit about honeycomb, what technology it's delivering and what are its differentiators. >>Yeah, absolutely. Um, so honeycomb is an observability tool, uh, that enables engineers to answer questions about the code that runs in production. And, um, we work with a number of various customers. Some of them are Vanguards, slack. Hello, fresh, just to name a couple, if you're not familiar with observability tooling, it's akin to traditional application performance monitoring, but we believe that observability is succeeding APM because, uh, APM tools were built at the time of monoliths and they just weren't designed to help us answer questions about complex distributed systems that we work with today, where things can go wrong anywhere in that chain. And you can't predict what you're gonna need to ask ahead of time. So some of the ways that we are different is our ability to store and query really rich data, which we believe is the key to understanding those complex systems. >>What I mean by rich data is, um, something that has a lot of attributes. So for example, when an error happens, knowing who it happened to, which user ID, which, um, I don't know, region, they were in, um, what, what, what they were doing at the time and what was happening at the rest of your system. And our ingest engine is really fast. You can do it in as little as three seconds and we call data like this. I said, kind of rich data, contextual data. We refer it as having high ality and high dimensionality, which are big words. But at the end of the day, what that means is we can store and we can query the data. We can do it really fast. And to give you an example of how that looks for our customers, let's say you have a developer team who are using comb to understand and observe their system. >>And they get a report that a user is experiencing a slowdown or something's wrong. They can go into comb and figure out that this only happens to users who are using a particular language pack with their app. And they operated their app last week, that it only happens when they are trying to upload a file. And so it's this level of granularity and being able to zoom in and out, um, under your data that allows you to understand what's happening, especially when you have an incident going on, right. Or your really important high profile customer is telling you that something's wrong. And we can do that. Even if everything else in your other tools looks fine, right? All of your dashboards are okay. You're not actually getting paged on it, but your customers are telling you that something's wrong. Uh, and we believe that's where we shine in helping you there. >>Excellent. It sounds like that's where you really shine that real time visibility is so critical these days. Danielle, Danielle, wanna bring you into the conversation. Talk to us a little bit about the honeycomb partnership from the AWS lens. >>Yeah. So excuse me, observability is obviously a very important, uh, segment in the cloud space, very important to AWS, um, because a lot of all of our customers, uh, as they build their systems distributed, they need to be able to see where, where things are happening in the complex systems that they're building. And so honeycomb is a, is an advanced technology partner. Um, they've been working with us for quite some time and they have a, uh, their solution is listed on the marketplace. Um, definitely something that we see a lot of demand with our customers and they have many integrations, uh, which, you know, we've seen is key to success. Um, being able to work seamlessly with the rest of the services inside of the AWS platform. And I know that they've done some, some great things with people who are trying to develop games on top of AWS, uh, things in that area as well. And so, uh, very important partner in the observa observability market that we have >>Back to you, let's kind of unpack the partnership, the significance that honeycomb ha is getting from being partners with an organization as potent and pivotal as AWS. >>Yeah, absolutely. Um, I know this predates me to some extent, but I know for a long time, AWS and honeycomb has really pushed the envelope together. And, um, I think it's a beneficial relationship for both ends. There's kind of two ways of looking at it. On the one side, there is our own infrastructure. So honeycomb runs on AWS and actually one of our critical workloads that supports that fast query engine that I mentioned uses Lambda. And it does so in a pretty Orthodox way. So we've had a longstanding conversation with the AWS team as far as drawing outside those lines and kind of figuring out how to use this technology in a way that works for us and hopefully will work for other customers of theirs as well. Um, that also allows us to ask for early access for certain features when they become available. >>And then that way we can be sort of the Guinea pigs and try things out, um, in a way that migrates our system and optimizes our own performance, but also allows again, other customers of AWS to follow in that path. And then the other side of that partnership is really supporting our customers who are both honeycomb users and AWS users, because it's, as you imagine, quite a big overlap, and there are certain ways in which we can allow our customers to more easily get their data from AWS to honeycomb. So for example, last year we built a tool, um, based on the new Lambda extension capability that allowed our users who run their applications in Lambdas to get that telemetry data out of their applications and into honeycomb. And it man was win, win. >>Excellent. So I'm hearing a lot of synergies from a technology perspective, you're sticking with you, and then Danielle will bring you in, let's talk about how honeycomb supports D and I across its organization. And how is that synergistic with AWS's approach? Yeah, >>Yeah, absolutely. So I sort of alluded to that hesitancy to over index on the women led aspect of ourselves. Um, but again, a lot of things are shifting, we're growing a lot. And so we are recognizing that we need to be more intentional with our DEI initiatives, and we also notice that we can do better and we should do better. And to that, and we're doing a few things differently, um, that are pretty recent initiatives. We are partnering with organizations that help us target specific communities that are underrepresented in tech. Um, some examples would be after tech hu Latinas in tech among, um, a number of others. And another initiative is DEI head start. That's something that is an internal, um, practice that we started that includes reaching out to underrepresented applicants before any new job for honeycomb becomes live. So before we posted to LinkedIn, before it's even live on our job speech, and the idea there is to kind of balance our pipeline of applicants, which the hope is will lead to more diverse hires in the long term. >>That's a great focus there. Danielle, I know we've talked about this before, but for the audience, in terms of the context of the honeycomb partnership, the focus at AWS for D E and I is really significant, unpack that a little bit for us. >>Well, let me just bring it back to just how we think about it, um, with the companies that we work with, but also in, in terms of, you know, what we want to be able to do, excuse me, it's very important for us to, you know, build products that reflect, uh, the customers that we have. And I think, you know, working with, uh, a company like honeycomb that is looking to differentiate in a space, um, by, by bringing in, you know, the experiences of many different types of people I genuinely believe. And I'm sure Vera also believes that by having those diverse perspectives, that we're able to then build better products for our customers. Um, and you know, it's one of, one of our leadership principles, uh, is, is rooted in this. I write a lot, it asks for us to seek out diverse perspectives. Uh, and you can't really do that if everybody kind of looks the same and thinks the same and has the same background. So I think that is where our de and I, um, you know, I thought process is rooted and, you know, companies like honeycomb that give customers choice and differentiate and help them, um, to do what they need to do in their unique, um, environments is super important. So >>The, the importance of thought diversity cannot be underscored enough. It's something that is, can be pivotal to organizations. And it's very nice to hear that that's so fundamental to both companies, Barry, I wanna go back to you for a second. You, I think you mentioned this, the DEI head start program, that's an internal program at honeycomb. Can you shed a little bit of light on that? >>Yeah, that's right. And I actually am in the process of hiring a first engineer for my team. So I'm learning a lot of these things firsthand, um, and how it works is we try to make sure to pre-load our pipeline of applicants for any new job opening we have with diverse candidates to the best of our abilities, and that can involve partnering with the organizations that I mentioned or reaching out to our internal network, um, and make sure that we give those applicants a head start, so to speak. >>Excellent. I like that. Danielle, before we close, I wanna get a little bit of, of your background. We've got various background in tag, she's celebrating her 10th anniversary. Give me a, a short kind of description of the journey that you've navigated through being a female in technology. >>Yeah, thanks so much. I really appreciate, uh, being able to share this. So I started as a software engineer, uh, back actually in the late nineties, uh, during the, the first.com bubble and, uh, have, have spent quite a long time actually as an individual contributor, um, probably working in software engineering teams up through 2014 at a minimum until I joined AWS, uh, as a customer facing solutions architect. Um, I do think spending a lot of time, hands on definitely helped me with some of the imposter syndrome, um, issues that folks suffer from not to say I don't at all, but it, it certainly helped with that. And I've been leading teams at AWS since 2015. Um, so it's really been a great ride. Um, and like I said, I'm very happy to see all of our engineering teams change, uh, as far as their composition. And I'm, I'm grateful to be part of it. >>It's pretty great to be able to witness that composition change for the better last question for each of you. And we're almost out of time and Danielle, I'm gonna stick with you. What's your advice, your recommendations for women who either are thinking about getting into tech or those who may be in tech, maybe they're in individual positions and they're not sure if they should apply for that senior leadership position. What do you advise them to do? >>I mean, definitely for the individual contributors, tech tech is a great career, uh, direction, um, and you will always be able to find women like you, you have to maybe just work a little bit harder, uh, to join, have community, uh, in that. But then as a leader, um, representation is very important and we can bring more women into tech by having more leaders. So that's my, you just have to take the lead, >>Take the lead, love that there. Same question for you. What's your advice and recommendations for those maybe future female leaders in tech? >>Yeah, absolutely. Um, Danielle mentioned imposter syndrome and I think we all struggle with it from time to time, no matter how many years it's been. And I think for me, for me, the advice would be if you're starting out, don't be afraid to ask, uh, questions and don't be afraid to kind of show a little bit of ignorance because we've all been there. And I think it's on all of us to remember what it's like to not know how things work. And on the flip side of that, if you are a more senior IC or, uh, in a leadership role, also being able to model just saying, I don't know how this works and going and figuring out answers together because that was a really powerful shift for me early in my career is just to feel like I can say that I don't know something. >>I totally agree. I've been in that same situation where just ask the question because you I'm guaranteed, there's a million outta people in the room that probably has the, have the same question and because of imposter syndrome, don't wanna admit, I don't understand that. Can we back up, but I agree with you. I think that is, um, one of the best things. Raise your hand, ask a question, ladies. Thank you so much for joining me talking about honeycomb and AWS, what you're doing together from a technology perspective and the focus efforts that each company has on D E and I, we appreciate your insights. Thank you so much for having us great talking to you. My pleasure, likewise for my guests, I'm Lisa Martin. You're watching the AWS partner showcase women in check. Welcome to the AWS partner showcase I'm Lisa Martin, your host. This is season one, episode three, and this is a great episode that focuses on women in tech. I'm pleased to be joined by Danielle Shaw, the ISV PSA director at AWS, and the sponsor of this fantastic program. Danielle, it's great to see you and talk about such an important topic. >>Yes. And I will tell you, all of these interviews have just been a blast for me to do. And I feel like there has been a lot of gold that we can glean from all of the, um, stories that we heard on these interviews and good advice that I myself would not have necessarily thought of. So >>I agree. And we're gonna get to set, cuz advice is one of the, the main things that our audience is gonna hear. We have Hillary Ashton, you'll see from TETA there, Reynolds joins us from honeycomb, Stephanie Curry from NetApp and Sue Paris from Jefferson Frank. And the topics that we dig into are first and foremost, diversity equity and inclusion. That is a topic that is incredibly important to every organization. And some of the things Danielle that our audiences shared were really interesting to me. One of the things that I saw from a thematic perspective over and over was that like D Reynolds was talking about the importance of companies and hiring managers and how they need to be intentional with de and I initiatives. And that intention was a, a, a common thing that we heard. I'm curious what your thoughts are about that, that we heard about being intentional working intentionally to deliver a more holistic pool of candidates where de I is concerned. What are your, what were some of the things that stuck out to you? >>Absolutely. I think each one of us is working inside of organizations where in the last, you know, five to 10 years, there's been a, you know, a strong push in this direction, mostly because we've really seen, um, first and foremost, by being intentional, that you can change the, uh, the way your organization looks. Um, but also just that, you know, without being intentional, um, there was just a lot of, you know, outcomes and situations that maybe weren't great for, um, you know, a healthy, um, and productive environment, uh, working environment. And so, you know, a lot of these companies have made a big investments and put forth big initiatives that I think all of us are involved in. And so we're really excited to get out here and talk about it and talk about, especially as these are all partnerships that we have, how, you know, these align with our values. So >>Yeah, that, that value alignment mm-hmm <affirmative> that you bring up is another thing that we heard consistently with each of the partners, there's a cultural alignment, there's a customer obsession alignment that they have with AWS. There's a D E and I alignment that they have. And I, I think everybody also kind of agreed Stephanie Curry talked about, you know, it's really important, um, for diversity on it, on, on impacting performance, highly performant teams are teams that are more diverse. I think we heard that kind of echoed throughout the women that we talked to in >>This. Absolutely. And I absolutely, and I definitely even feel that, uh, with their studies out there that tell you that you make better products, if you have all of the right input and you're getting all many different perspectives, but not just that, but I can, I can personally see it in the performing teams, not just my team, but also, you know, the teams that I work alongside. Um, arguably some of the other business folks have done a really great job of bringing more women into their organization, bringing more underrepresented minorities. Tech is a little bit behind, but we're trying really hard to bring that forward as well to in technical roles. Um, but you can just see the difference in the outcomes. Uh, at least I personally can just in the adjacent teams of mine. >>That's awesome. We talked also quite a bit during this episode about attracting women and underrepresented, um, groups and retaining them. That retention piece is really key. What were some of the things that stuck out to you that, um, you know, some of the guests talked about in terms of retention? >>Yeah. I think especially, uh, speaking with Hillary and hearing how, uh, Teradata is thinking about different ways to make hybrid work work for everybody. I think that is definitely when I talk to women interested in joining AWS, oftentimes that might be one of the first, uh, concerns that they have. Like, am I going to be able to, you know, go pick my kid up at four o'clock at the bus, or am I going to be able to, you know, be at my kids' conf you know, conference or even just, you know, have enough work life balance that I can, um, you know, do the things that I wanna do outside of work, uh, beyond children and family. So these are all very important, um, and questions that especially women come and ask, but also, um, you know, it kind of is a, is a bellwether for, is this gonna be a company that allows me to bring my whole self to work? And then I'm also gonna be able to have that balance that I need need. So I think that was something that is, uh, changing a lot. And many people are thinking about work a lot differently. >>Absolutely. The pandemic not only changed how we think about work, you know, initially it was, do I work from home or do I live at work? And that was legitimately a challenge that all of us faced for a long time period, but we're seeing the hybrid model. We're seeing more companies be open to embracing that and allowing people to have more of that balance, which at the end of the day, it's so much better for product development for the customers, as you talked about there's, it's a win-win. >>Absolutely. And, you know, definitely the first few months of it was very hard to find that separation to be able to put up boundaries. Um, but I think at least I personally have been able to find the way to do it. And I hope that, you know, everyone is getting that space to be able to put those boundaries up to effectively have a harmonious, you know, work life where you can still be at home most of the time, but also, um, you know, have that cutoff point of the day or at least have that separate space that you can feel that you're able to separate the two. >>Yeah, absolutely. And a lot of that from a work life balance perspective leads into one of the next topics that we covered in detail with, and that's mentors and sponsors the differences between them recommendations from, uh, the women on the panel about how to combat imposter syndrome, but also how to leverage mentors and sponsors throughout your career. One of the things that, that Hillary said that I thought was fantastic, advice were mentors and sponsors are concerned is, is be selective in picking your bosses. We often see people, especially younger folks, not necessarily younger folks. I shouldn't say that that are attracted to a company it's brand maybe, and think more about that than they do the boss or bosses that can help guide them along the way. But I thought that was really poignant advice that Hillary provided something that I'm gonna take into consideration myself. >>Yeah. And I honestly hadn't thought about that, but as I reflect through my own career, I can see how I've had particular managers who have had a major impact on helping me, um, with my career. But, you know, if you don't have the ability to do that, or maybe that's not a luxury that you have, I think even if you're able to, you know, find a mentor for a period of time or, um, you know, just, just enable for you to be able to get from say a point a to point B just for a temporary period. Um, just so you can grow into your next role, have a, have a particular outcome that you wanna drive, have a particular goal in mind find that person who's been there and done that and can really help you get through. If you don't have the luxury of picking your manager mentor, who can help you get to the next step. >>Exactly. That, that I thought that advice was brilliant and something that I hadn't really considered either. We also talked with several of the women about imposter syndrome. You know, that's something that everybody, I think, regardless of gender of your background, everybody feels that at some point. So I think one of the nice things that we do in this episode is sort of identify, yes, imposter syndrome is real. This is, this is how it happened to me. This is I navigated around or got over it. I think there's some great advice there for the audience to glean as well about how to dial down the imposter syndrome that they might be feeling. >>Absolutely. And I think the key there is just acknowledging it. Um, but also just hearing all the different techniques on, on how folks have dealt with it because everybody does, um, you know, even some of the smartest, most confident men I've, I've met in, uh, industry still talk to me about how they have it and I'm shocked by it oftentimes, but, um, it is very common and hopefully we, we talk about some good techniques to, to deal with that. >>I think we do, you know, one of the things that when we were asking the, our audience, our guests about advice, what would they tell their younger selves? What would they tell young women or underrepresented groups in terms of becoming interested in stem and in tech and everybody sort of agreed on me, don't be afraid to raise your hand and ask questions. Um, show vulnerabilities, not just as the employee, but even from a leadership perspective, show that as a leader, I, I don't have all the answers. There are questions that I have. I think that goes a long way to reducing the imposter syndrome that most of us have faced at some point in our lives. And that's just, don't be afraid to ask questions. You never know, oh, how can people have the same question sitting in the room? >>Well, and also, you know, for folks who've been in industry for 20, 25 years, I think we can just say that, you know, it's a, it's a marathon, it's not a sprint and you're always going to, um, have new things to learn and you can spend, you know, back to, we talked about the zing and zagging through careers, um, where, you know, we'll have different experiences. Um, all of that kind of comes through just, you know, being curious and wanting to continue to learn. So yes, asking questions and being vulnerable and being able to say, I don't know all the answers, but I wanna learn is a key thing, uh, especially culturally at AWS, but I'm sure with all of these companies as well, >>Definitely I think it sounded like it was really ingrained in their culture. And another thing too, that we also talked about is the word, no, doesn't always mean a dead end. It can often mean not right now or may, maybe this isn't the right opportunity at this time. I think that's another important thing that the audience is gonna learn is that, you know, failure is not necessarily a bad F word. If you turn it into opportunity, no isn't necessarily the end of the road. It can be an opener to a different door. And I, I thought that was a really positive message that our guests, um, had to share with the, the audience. >>Yeah, totally. I can, I can say I had a, a mentor of mine, um, a very, uh, strong woman who told me, you know, your career is going to have lots of ebbs and flows and that's natural. And you know that when you say that, not right now, um, that's a perfect example of maybe there's an ebb where it might not be the right time for you now, but something to consider in the future. But also don't be afraid to say yes, when you can. <laugh> >>Exactly. Danielle, it's been a pleasure filming this episode with you and the great female leaders that we have on. I'm excited for the audience to be able to learn from Hillary Vera, Stephanie Sue, and you so much valuable content in here. We hope you enjoy this partner showcase season one, episode three, Danielle, thanks so much for helping >>Us with it's been a blast. I really appreciate it >>All audience. We wanna enjoy this. Enjoy the episode.

>>The cube presents HPE discover 2022 brought to you by HPE. >>Welcome back to HPE. Discover 2022. My name is Dave Lanta. I'm here with my co-host John fur. John we've been watching the evolution of H HP to HPE. We've seen GreenLake when Antonio Neri, I called it. I called it burn the boats. He goes, no, no, no, it wasn't burn the boats. I said, well, okay, burn the bridges. But it was all in on as a service on, on GreenLake. And we're gonna talk about that. Brad Shapiro is here. He's the vice president and managing director of the enterprise business at HPE financial services. Brad. Good to see him. Good to see >>You as well. >>Yeah, you guys got it all started. When, when Antonio kinda laid down, the gauntlet said, this is where we're going. Let's make it happen now. Cause the first place he turned I would imagine is the financial services said, okay, how do we start this today? Can you help us? And they take us back to that >>And yeah, sure. So, you know, uh, yeah, HP financial services, um, it's kind of a foundational element cuz when you think about it, asset management is really what we're doing here. And I know asset management's a, a big word, right? And it can mean lots of things to, to different people. Um, in this context, uh, we started looking at how do customers manage assets over the life cycle and a lot of customers while they were interested in a consumption model and looking at GreenLake for their private cloud, they were certainly looking at public cloud for certain workloads and then maybe even traditional data center for other activities that, that they're running. So it's really that hybrid environment. Uh, but they were stuck going well, Hey, I'm in a CapEx model today. How do I get out of CapEx and really get into this hybrid model? >>And that's where asset management comes in. So one of the, the biggest initial focus is, and we continue to have that focus. We call it our accelerated migration offer and it's really us going in and acquiring the customer assets, moving it on the HPE balance sheet and then figuring out what are we gonna do with those assets, which are gonna stay in use under a consumption model, which are excess. And we can put through our, uh, asset up cycling process, we monetize the majority of that, put that back into reuse and then maybe a small amount gets recycled. So, so really focused on the assets and accelerating customers transition to GreenLake. Did you >>See, or are you seeing a difference between like Le traditional leasing customers who already have kind of on that model versus like what you just described as sort of the, the CapEx was more complicated, you gotta get, I presume procurement involved the legal issues and was there a lot less, was it less friction with the, the leasing customers? Well, >>You know, I, I look at leasing and financing, very similar to CapEx. It's, it's a much more traditional model versus this new as a service experience. Um, so if, if they were in a leasing model, we could convert those leases into GreenLake. I wouldn't say one was any more difficult than the other. Yeah. Um, they were both really traditional mindset, um, and not really looking at a consumption model. So I think we had our fair share of both. And I think we, we have and are able to address both customers moving in into a consumption >>Mode. Right. How does this tie into sustainability? Because you know, we have on one end of the spectrum, the, the high end sustainability, you know, the, the science and sure. And the behind it, tactically speaking companies still now want to operate in this kind of, there's a sustainable angle here. Yeah. Talk about that piece of it. How does that tie in obviously consumption versus CapEx you're building, you're not building, what, what does that thread through the sustainability angle? >>Yeah. So, so first let me just say sustainability is really important to our customers. Um, and, and we're seeing it all over and it is real. Um, the good thing is that you can get business value out of the solutions and have a more sustainable model. So when I think about, and I talk to customers about sustainability, uh, there's a number of fronts they're focused on one, their customers believe it's important, right? So, so they're focused on making sure they're driving sustainable models. Uh, I've seen an increasing number of customers, both commercial and public sector have sustainability requirements in their tenders, in their RFPs. And you have to be able to, to comply with those. Um, second, uh, they, they look at it and go, how do I attract talent? It's increasingly important for them to attract talent. And then really if you, because >>They wanna work for a mission driven company that's >>Sustainable. Absolutely. Absolutely. And, and the third area is investors. You know, the investment community is now looking at ESG and whole and you know, certainly environmental impacts, um, in where they're making an investment. So quick personal story, I was talking, uh, to a friend of mine who works for a hedge fund and he was telling me over the last year, they've hired a whole team. That's focused on just doing analysis of companies, ESG initiatives, determining where they're gonna invest their money. So it's, it's a wall street thing now. So this is real from a number of angles where, where sustainability has an impact. Now, how we play in that. Um, clearly when you go to a GreenLake consumption model, the idea is improving utilization of the asset. So driving higher utilization means you need less assets. You know, over time, the, the secret is we're gonna sell you less, right? >>You're gonna have less assets, but you're gonna have higher utilization. That's good for the environment where HPE Fs comes in is when those assets are done. We put those assets back into reuse. So we have a remark, we have remarketing facilities, one in, in Andover, mass, one in kin Scotland. And then we have 80 different facilities. We have partnerships around the world and our focus is how do we drive more reuse, 85% of the assets we get back, go into reuse. And when you look at servers and PCs and things like that, it's over 95% go into reuse. So a real focus on reuse is good for the environment as well. And then needless to say, the new technology that goes into a GreenLake deal, we're seeing like 30% energy savings coming, coming out of those environments. So all really good stuff related to it's >>Interesting. I mean, a couple points there is one is, you know, Benoff kind of got it all started pre pandemic. He was out talking about, you know, sustainability and ESG. And a lot of people were like, no way. It's all about bottom line profits. And so he was ahead of that. And I guess, you know, back to at least you were, oh, you were always in the residual value game, but now it's a little different, isn't it? Absolutely. It's, it's it's yes. You gotta figure out what the value of that asset's gonna be, but also there's a sustainability aspect of it as >>Well. Yeah, absolutely. And the, the pretty cool thing here is while you drive sustainability, we're also seeing customers that, that go into GreenLake. Um, we had a good example with Kern county, a 42% savings over their CapEx environment when they moved to GreenLake. So it was better for the environment and significant savings. So you can have kind of like have your cake and eat it too. You, you get better environmental, uh, impacts and you're getting better bottom line, uh, performance. >>It's a business case there too do. Now we kind of, I was talking upfront about the, the early days of GreenLake where, you know, they were, it was a financial model. Yeah. And now it's evolving to actually a technology model. We heard Alma with the platform. How has that, or has that changed the way that financial services your >>Group >>Yeah. Approaches the, the, the market. >>Yeah. So, um, yeah, that's a great point. You know, when people talk about GreenLake, they think about the old days. And, and look, I've been around a while. I remember the flex capacity, right? Yeah, of course this isn't flex capacity. I mean, the platform's amazing and it really starts to bring to life the whole thought, when we talk about hybrid, right, there are workloads sure. They might belong best in the public cloud. Right. There, there are workloads that belong best in the private cloud, under the HPE GreenLake model. And there are still workloads that customers may say, Hey, look, I've got legacy applications. I'm gonna continue to run them in a traditional data center. And so from an H P E Fs perspective, you know, we look at this, not as a leasing and financing company, we're looking at this on how do we leverage the customer's existing assets? >>How do we create incremental budget using those existing assets? And then what kind of model best serves that workload? And then how do you optimize the capacity and the spend on that? So, you know, an interesting note in the past year, we put 500 million back into customer budgets by just leveraging their existing it estate. And, and it does, it's not all HPE product, you know, we're, we're, we're monetizing third party products in the data center, in the network, in the workplace. So we can really look at, we call it any tech any time, anywhere we look at all the technology and really assess what's the best way to leverage that investment. Yeah. And, and get the most out of >>It. Yeah. I mean, it's really evolved from just recycling assets for profit, but integrating the business model into the value proposition, the core value proposition in GreenLake. That's great innovation. Um, and, and congratulations on that. Sure. My, my question for you is more kind of zooming out at the market. Mm-hmm <affirmative>, from your perspective in financial services at HPE, what has the pandemic proven to you guys? How has it changed? How you guys work and how has it changed the customer environment? Cuz you mentioned assets. I think real estate. Oh no. One's going back to work. Yeah, no one's been in the office. How has the market changed with hybrids as a steady state now coming outta the pandemic? What are customers doing with the assets? What are some of the trends that you're seeing in the customer base? >>Yeah. So, so look, I'll give you my personal perspective of what I think about as a business leader. And when I talk to customers, I think we're all thinking about the same thing. So I start with experience, what experience do I wanna create for my customers and very closely linked to that, my colleagues, right? So it, the, the people working in our organization, what experience am I creating for them? So they can in turn, create that experience for partners and customers externally. So experience is one thing. The second is innovation, right? We spend a lot of time thinking about what's next? Where do we want to go? What's the innovation and more and more that innovation is all digital, right? So digital transformation is huge within my organization. And it's huge within all of our customers. Dave, I think the last time we talked, I was in my living room on a little laptop screen and zoom and, and I think I use the analogy E every business is now a digital business, even my pizza shop in jerseys. >>Yeah. Right. I mean, everything was online curbside pickup. So what I'm finding is the, the trends in terms of how to leverage technology is how do you create that customer experience? And then how does digital now blend as we're coming out of the pandemic? And, and you're, you know, now able to go into restaurants and stores, how do you blend digital with that in person experience and maybe leverage the best of both. Right. And, and how do you do that in a seamless way to really give customers choice and give them that smooth, seamless experience. So that, that's what I see happening. And you know, what we are trying to do with our asset management plays with the financial modeling we do is how do we get more of that spend going to innovation versus maintenance. And, and that's a big key because, you know, you have to be fast. So I talk about innovation. I talk about customer experience, speed to market. I mean, you know, and the bar keeps getting higher, right? It's like, as soon as you think you're fast, you're slow. We, because you have to keep, it all keeps rolling. >>We heard yesterday on the cube from, uh, one of the HP point, next executives said, you gotta perform and transform >>At the >>Same time at the same time. And you gotta know where the people are gonna land. Absolutely. And how the assets are gonna be distributed. >>And to your point, Brad, you know, from our virtual interview, you're so right. I mean, every business has to be a digital business. And you know, my, my personal story, John, you know, my brother Richie was the executive chef at legal seafood. Right. Pandemic. So then that was a, a place you wanted to go to that restaurant, famous restaurant in Boston when they reopened, they weren't ready. Right. They didn't have the digital story together. They ended up having to, we were just at Smith and Linsky, they ended up selling to Smith and Wilensky's oh, and you, you drive around, you see a lot of these retail businesses is shut down. Yeah. Right. And so, okay. So we're, they weren't able to get through that, you know, cross that chasm in digital transformation. Yeah. A lot of businesses were able to and make it a tailwind. >>Yeah. And, and look, the other thing I think all businesses are focused on right now, uh, with the labor market is talent. And, and so when you think about all of these things tying together, you want to drive, uh, you know, innovation. You want to drive your digital transformation. You wanna make that environmentally sustainable. And, and I think all of that, if you start putting all that together, those are the companies that are gonna attract the talent in the marketplace. And, and really there there's a battle for talent and >>You wanna make it profitable. Uh, Brad bureau. Thanks so much for you. Great to see you face to face. >>Yeah. Likewise. Thanks. Thanks. >>All right. Keep it right there, John. And I will be back. We're wrapping up day three of HPE, discover 2022. You're watching the cube.

>>the Cube presents H p E discover 2022. Brought to you by H P E. >>Okay, we're back at HPD. Discovered 2022 This is Day Three. We're kind of in the mid point of day three. John Furry and Dave Volonte Wall to wall coverage. I think there are 14th hp slash hp Discover we've sort of documented the history of the company over the last decade. Plus, I'm not a is here is executive vice president at Infosys and Cejudo. Sankaran Kutty is the CEO and vice president of Infosys. Infosys doing some amazing work in the field with clients. Guys, Thanks for coming on the Cube. Thank >>you for the opportunity. >>Yeah, absolutely so. Digital transformation. It's all the buzz word kind of pre pandemic. It was sort of Yeah, you know, we'll get there a lot of lip service to it. Some Some started the journey and then, of course, pandemic. If you weren't digital business, you are out of business. What are the trends that you're seeing now that we're exiting the isolation economy? >>Yeah, um, again, as you rightly called out pre pandemic, it was all about using sort of you know innovation at scale as one of the levers for digital transformation. But if you look at now, post Pandemic, one of the things that we see it's a big trend is at a broad level, right? Digital transformation is not about cost. Take out. Uh, it's all about growth, right? So essentially, uh, like, uh, what we hear from most of the CEO s and most of the customers and most of the executives in the tech company, Digital transformation should be used for business growth. And essentially, it means three things that we see three trends in that space. One is how can you build better products and solutions as part of your transformation strategy? How can you basically use digital transformation to expand into new markets and new new territories and new regions? And the third is, how can you better the experience for your customers? Right. So I think that is broadly what we see as, uh, some other things. And essentially, if you have better customer experience, they will buy more. If you expand into new markets, your revenue will increase. If you actually build better products and solutions, consumers will buy it right, so It's basically like a sort of an economy that goes hand in hand. So I would say the trend is clearly going towards business growth than anything else when it comes to the, >>you know, follow up on that. We had I d. C on yesterday and they were sharing with some of their high level numbers. We've looked at this and and and it seems like I t spending is pretty consistent despite the fact that, for example, you know, the to see the consumer businesses sort of tanking right now. Are you seeing any pullback or any evidence that people are pulling the reins back on the digital transformation Or they just going because if they don't keep keep moving fast, they're gonna fall behind. What are you seeing there? Absolutely. >>In fact, you know what? What we call them as the secular headwinds, right? I mean, if you look at the headwinds here, we see digital transformation is in the minds of everybody, every customer, right. So while there are budget constraints, where are all these macro tailwinds as we call with respect to inflation, with respect to what's happening with Russia and Ukraine with respect to everything that's happening with respect to supply chain right. I think we see some of those tail headwinds. But essentially, digital transformation is not stopping. Everybody is going after that because essentially they want to be relevant in the market. And if they want to be relevant in the market, they have to transform. And if they have to transform, they have to adopt digital transformation. >>Basically, there's no hiding anymore. You know, hiding and you can't hide the projects and give lip service because there's evidence of what the consequences are. And it can be quantified. Yes, you go out of business, you lose money. You mentioned some of the the cost takeouts growth is yes. So I got given the trends and the headwinds and the tail winds. What are you guys seeing as the pattern of companies that came out of the pandemic with growth? And what's going on with that growth driver? What are the elements that are powering companies to grow? Is that machine learning? Is that cloud scales and integration? What are some of the key areas that's given that extra up into the right? >>Yes, I I would say there are six technologies that are defining how growth is being enabled, right? So I think we call it as cloud ai edge five g, Iot and of course, everything to do with a And so these are six technologies that are powering digital transformation. And, uh, one of the things that we are saying is more and more customers are now coming and saying that we want to use these six technologies to drive business outcomes. Uh, for example, uh, we have a very large oil and gas customer of ours who says that, you know, we want to basically use cloud as a lever to Dr Decarbonization. E S G is such a big initiative for everybody in the SGS in the minds of everybody. So their outcome of using technology is to drive decarbonization. And they don't make sure that, you know, they achieve the goals of E. S G. Right There is another customer of ours in the retail space. They are saying we want to use cloud to drive experience for our employees. So I would say that you know, there is pretty much, you know, all these drivers which are helping not just growing their business, but also bettering the experience and meeting some of the organisation goals that they have set up with respect to cloud. So I would say Cloud is playing a big role in every digital transformation initiative of the company. >>How do you spend your time? What's the role of the CEO inside of a large organisation like Infosys? >>So, um, one is in terms of bringing in an outside in view of how technology is making an impact to our customers. And I'm looking at How do we actually start liberating some of these technologies in building solutions, you know, which can actually drive value for our customers? That's one of the focus areas. You know what I do? Um, And if you look at some of the trends, you know what we have seen in the past years as well as what we're seeing now? Uh, there's been a huge spend around cloud which is happening with our customers and predominantly around the cloud Native application development, leveraging some of the services. What's available from the cloud providers like eh? I am l in Hyoty. Um, and and there's also a new trend. You know what we are seeing off late now, which is, um, in terms of improving the experience overall experience liberating some of the technologies, like technologies like block, block, chain as well as we are, we are right, and and this is actually creating new set of solutions. Um, new demands, you know, for our customers in terms of leveraging technologies like matadors leveraging technologies like factory photo. Um, and these are all opportunities for us to build solutions, you know, which can, you know, improve the time to market for our customers in terms of adopting some of these things. Because there has been a huge focus on the improved end user experience or improve experience improved, uh, productivity of, uh, employees, you know, which is which has been a focus. Uh, post pandemic. Right? You know, it has been something which is happening pre pandemic, but it's been accelerated Post pandemic. So this is giving an opportunity for for my role right now in terms of liberating these technologies, building solutions, building value propositions, taking it to our customers, working with partners and then trying to see how we can have this tightly integrated with partners like HP E in this case, and then take it jointly to the market and and find out you know, what's what's the best we can actually give back to our customers? >>You know, you guys have been we've been following you guys for for a long, long time. You've seen many cycles, uh, in the industry. Um, and what's interesting to get your reaction to what we're seeing? A lot of acceleration points, whether it's cloud needed applications. But one is the software business is no longer there. It's open source now, but cloud scale integrations, new hybrid environment kind of brings and changes the game, so there's definitely software plentiful. You guys are doing a lot of stuff with the software. How are customers integrated? Because seeing more and more customers participating in the open source community uh, so what? Red hat's done. They're transforming the open shift. So as cloud native applications come in and get scale and open source software, cloud scale performance and integrations are big. You guys agree with that? >>Absolutely. Absolutely. So if you if you look at it, um, right from the way we can't socialise those solutions, um, open source is something What we have embedded big way right into the solution. Footprint. What we have one is, uh, the ability for us to scale the second is the ability for us to bring in a level of portability, right? And the third is, uh, ensuring that there is absolutely no locking into something. What we're building. We're seeing this this being resonated by our customers to because one is they want to build a child and scalable applications. Uh, it's something where the whole, I would say, the whole dependency on the large software stacks. Uh, you know, the large software providers is likely diminishing now, right? Uh, it's all about how can I simplify my application portfolio Liberating some of the open source technologies. Um, how can I deploy them on a multi cloud world liberating open standards so that I'm not locked into any of these providers? Um, how can I build cloud native applications, which can actually enable portability? And how can I work with providers who doesn't have a lock in, you know, into their solutions, >>And security is gonna be embedded in everything. Absolutely. >>So security is, uh, emperor, right from, uh, design phase. Right? You know, we call it a secure by design And that's something What? We drive for our customers right from our solutions as well as for developing their own solutions >>as opposed to secure by bolt on after the fact. What is the cobalt go to market strategy? How does that affect or how you do business within the HP ecosystem? Absolutely. >>I think you know what we did in, uh, in 2000 and 20. We were the first ones, uh, to come out with an integrated cloud brand called Cobalt. So essentially, our thought process was to make sure that, you know, we talk one consistent language with the customer. There is a consistent narrative. There is a consistent value proposition that we take right. So, essentially, if you look at the Cobalt gold market, it is based on three pillars. The first pillar is all about technology solutions. Getting out of data centres migrating were close to cloud E r. P on Cloud Cloud, Native Development, legacy modernisation. So we'll continue to do that because that's the most important pillar. And that's where our bread and butter businesses right. The second pillar is, uh, more and more customers are asking industry cloud. So what are you specifically doing for my industry. So, for example, if you look at banking, uh, they would say we are focused on Modernising our payment systems. We want to reduce the financial risk that we have because of anti money laundering and those kind of solutions that they're expecting. They want to better the security portion. And of course, they want to improve the experience, right? So they are asking for each of these imperatives that we have in banking. What are some of those specific industry solutions that you are bringing to the table? Right. So that's the second pillar of our global go to market. And the third pillar of our go to market as soon as I was saying is looking at what we call us Horizon three offerings, whether it is metal wars, whether it is 13.0, whether it is looking at something else that will come in the future. And how do we build those solutions which can become mainstream the next 18 to 24 months? So that's essentially the global >>market. That's interesting. Okay, so take the banking example where you've got a core app, it's probably on Prem, and it's not gonna have somebody shoved into the cloud necessarily. But they have to do things like anti money, money laundering and know your ky. See? How are they handling that? Are they building micro services? Are you building for them microservices layers around that that actually might be in the cloud or cloud Native on Prem and Greenway. How is that? How are customers Modernising? >>Absolutely brilliant question. In fact, what we have done is, uh, as part of cobalt, we have something called a reference. Architecture are basically a blueprint. So if you go to a bank and you're engaging a banking executive, uh, the language that we speak with them is not about, uh, private cloud or public cloud or AWS or HP or zero, right? I mean, we talk the language that they understand, which is the banking language. So we take this reference architecture, and we say here is what your core architecture should look like. And, as you rightly called out, there is K. I see there is retail banking. There is anti money laundering. There is security experience. Uh, there are some kpi s and those kind of things banking a PSR open banking as we call, How do we actually bring our solutions, which we have built on open source and something that are specific to cloud and something that our cloud neutral and that's what we take them. So we built this array of solutions around each of those reference architectures that we take to our customers. >>Final question for you guys. How are you guys leveraging the H, P E and new Green Lake and all the new stuff they got here to accelerate the customers journey to edge the cloud? >>So I would say it on three areas right now. This is one is Obviously we are working very closely with HP in terms of taking out solutions jointly to the market and, um, leveraging the whole green late model and providing what I call it as a hyper scale of like experience for our customers in a hybrid, multi cloud world. That's the first thing. The second thing is Onion talked about the cobalt, right? It's an important, I would say, an offering from, uh, you know and offering around cloud from our side. So what we've done is we've closely integrated the assets. You know what I was referring to what we have in our cobalt, uh, under other Kobold umbrella very closely with the HP ecosystem, right? You know, it can be tools like the Emphasis Polly Cloud Platform or the Emphasis pollinate platform very tightly integrated with the HP stack, so that we could actually offer the value proposition right across the value chain. The thought of you know we have actually taken the industry period, like what again mentioned right in terms of rather than talking about a public cloud or a private cloud solution or an edge computing solution. We actually talk about what exactly are the problem statements? What is there in manufacturing today? Or it's there in financial industries today? Or or it's in a bank today or whatever it's relevant to the industry. That's an industry people. So we talk right from an industry problem and and and and and and build that industry, industry people solutions, leveraging the assets, what we have in the and the framework that we have within the couple, plus the integrated solutions. What we bring along with HB. That's that's Those are the three things, what we do along with >>it and that that industry pieces do. There's a whole data layer emerging those industries learning cos they're building their own clouds. Look, working with companies like you because they want to monetise. That's a big part of their digital strategy, guys. Thanks so much for coming on the cue. Thank you. Appreciate your time. Thank >>you. Thank you very much. Really appreciate. >>Thank you. Thank you for watching John and I will be back. John Ferrier, Development at HPD Discovered 2022. You're watching the queue? >>Yeah. >>Mm.