>>From Miami beach, Florida. It's the queue covering a cryonics global cyber summit 2019 brought to you by Acronis. >>Okay. Welcome back everyone. This is the cubes coverage here at the Chronis global cyber summit 2019 I'm John furrier, host to the cube. We're Miami beach at the Fontainebleau hotel with a second day. Excited to have this next guest on Christian Garcia, senior vice president of finance and administration at the chauffeur housing ShipIt housing Institute of technology. Did they get it right? Almost right. housing. welcome back. Welcome to the cube. Good to see you. Good to see you. Thanks for having me here. This is a really cool story because you guys are doing something very entrepreneurial, right, with education, right. Okay. Inspired by the founder of a Chronis. Exactly as well. He's got. He's made a lot of money in his day, so he's doing some good things with it. Um, but this is an interesting opportunity for you to take a minute to explain what this Institute stands for. >>It's sit for short. >> Yeah, so sat actually as a name Schaffhausen Institute of technology. So we are actually starting up a university in Schaffhausen in Schaffhausen. These a beautiful tiny CD in Switzerland, 30 minutes or 30 minutes from the Zurich airport, which is the biggest airport in Switzerland, uh, close to Germany at the border with Germany. And uh, so that's kind of your, in the center of Europe and that's where we plan to have our main campus. Now let me tell you this story. How about the vision about target, his vision on these, on this project? Um, he, he said that, you know, uh, he needs to have skills in 10 to 15 years time that nowadays at the institutions that do not do not, do not bring, um, there is the need of computer scientists that are not enough computer scientists and we are having emergent technologies and these is something that provides us with tremendous opportunities, which we cannot even imagine nowadays what type of opportunities and to be on the forefront there. >>That's why we want to found these are, we have founded the Schaffhausen Institute of technology. >> Chef housing is a technology just for share. The day was just two months ago, couple months ago. It was two months ago where we, where we have started up the legal structure and now we are really laying the foundation. We have to find some that are kind of secured for for the next 12 to 18 months. And um, we are, you know, defining the strategic advisory board. We are setting up the curriculum for our students. And so it's everything up and running and to be defined. So risk is right at the creation present at creation. We are talking about this as a, this is the origination story. Exactly. Of the shelf house in Institute of technology. Exactly. What's the vision? >>I mean obviously getting skills for jobs that are our century, our time that's having been teaching in universities and before I get back. But is it about being open and what's the vision is just Switzerland is going to be global. Can you just share, what do you guys are thinking? >>Sure, absolutely. So basically what we are trying to do is to design a curriculum in um, computer science and physics because we think that computer science or present the software in physics represents the hardware. And these two things need to be combined in a entrepreneurial mindset or with an entrepreneurial mindset, which means that we also want to foster the transformation process and the anti entrepreneurship. Now, let me go back to the software path. Uh, our curriculum will cover, um, software engineering, cybersecurity. That's why we are here today. Uh, the curriculum we also cover, um, on the physics part. On the hardware part, we'll cover, uh, quantum technologies, uh, quantum physics and also new materials. Um, and these will be kind of the foundation that will build the curriculum for students, computer scientists to have physics and physics to have computer science in their curriculum so that at some point in time they can come together and to research together. >>This is the digital transformation that we're talking about. The, the intersection and the confluence of physical reality. A world that we live in, whether it's a baseball game or a soccer match to the digital culture, they're not mutually exclusive anymore and they're together. And then the impact is profound. I can only imagine. IOT, industrial, IOT, airplanes, cars, electricity, electronic batteries, all these things, correct. It's software and digital. And physical material. Exactly that you guys are thinking. >>Exactly. Exactly that and actually also considering the industry, talking to the industry, talking to chief information technology officers around the world to understand what they need are and what type of they believe of skills are needed in in 10 to 15 years time. And that's what we want to build up now to get >>well you guys car gotta go, you gotta go faster because there's jobs now. There's thousands of jobs right now in cybersecurity. There's thousands and thousands of jobs for provision and cloud computing. Amazon educate. We talked to them all the time. They just can't get the word out fast enough that Hey, if you're unemployed there's no excuse for being unemployed. Write down there's so many new jobs. But because someone didn't go to the linear school and exactly know go step by step over the years and now you can level up very quickly. Exactly for certification. But you guys are taking a much more bigger idea around real kind of masters level. Is that what it is? Undergraduate masters level? What's the level of, actually we, we, we are starting >>out with this university and we have already students that are at our or with our partner universities currently in Singapore with NUS. And we then move to Karnak and Molly here in the U S um, in order to have it, we'll do a degree. So that's a unique opportunity to already start up with some presence, uh, in, in education. And uh, you ultimately, they will be then acquired. So we hope by, by, by, by the industry and the were terrific. Elon Musk is in there somewhere innovating with who knows what's next out there and he's around. And next Sergei is out there too. A exactly. Exactly. So just look at our, at our home page, look at the curriculum, which we are currently defining now. Eh, that would be, that would be great on sit.org take me through how it works. I know you're just starting, but as you guys look at the world, I mean, first of all, I can see, I can see the attractiveness of a dual degree. >>Yeah. Because most kids get bored in college. They're freelancing anyway. They're learning on their own. I get that. But I can S so I want, so as you guys start building it out, what's going on? What's going, how's it work? What are you guys doing? You're recruiting tickets through the, the factory of work that needs to get done, if you will. What's the workflows look like? What's happening right now? So currently, I mean, we are talking about the university because we, we have students and we will have students and we weren't to have the best talents, uh, globally available. And that's why we are building institution that attracts those talents. And these is kind of the first priority to have, do I have the talents to get the tens to get students come to, to, to sit? And obviously the second part is he said, well, talking to the CEOs and Tito was in to understand what are the needs in 10 to 15 years as an outcome of this digital transformation. >>I mean, the world is computerized. Uh, as you just mentioned before, there are not enough computer scientists currently available. So four out of five companies in Switzerland direction also globally are lacking. Uh, of computer scientists and they understand, you know, at what the digital transformation means. And that's something that we really try to understand as well to build it up the curriculum. What's the timeline of starting with students? Is you right away? Do you have a location? Is there a building, I mean, give us a timeline. When did classes start? When you start bringing people in? Is it happening now? I mean, absolutely. So, so actually currently we are, we are hunting at, at uh, at some campus locations, looking at some campus locations, each a thousand where our main campus will be, will be located. Um, at the, at the, at the same time we are really building buildings structure. >>So we are appointing the strategic advisory board will be, we twill direct, eh, the curriculum of the university. Um, and, and which is represented already by, uh, very, um, great scientists. One of them, the president of the strategic advisory board being professor Dr. Noble selloff, which is a Nobel prize winner. And which actually brings in that, that new ma new material, um, science in our physics curriculum. So that's another thing that we are currently trying to do to build up that governance appropriate components. And third element that we are looking at is also to attract uh, industries and companies that sponsor the students. And that's actually an attractive ecosystem that we are trying to build up to combine science education and also entrepreneurship in business. In order to foster that, which means that we are looking at the campus, we are setting up a research center and I'm talking about two or three years down the line, the research center and then also a tech park where we can commercialize the innovation that the science green Springs in. >>So all in all we really aim to have a closed ecosystem and self sustaining ecosystem. Hopefully that we are going to establish. It's a really big idea. Congratulations. It's bold. It's and it's relevant. Absolutely. So I got to ask you the question, how do you finance all this? Who's paying for it? So tell us how do we get funded? It's very important. Otherwise we pull in, start up with such a tremendous pace. Uh, actually the vision is, is from Sergei Velo self, uh, founder and CEO of Acronis. Um, he, he's, Hey has actually secured the initial founding of the institution and now really we need to have more partners on board in order to make this self sustaining education edge educational system system as sustainable as you are going to be tuition base or scholarship based. Have you guys thought about that? Um, in terms of students it would be tuition-based ah, that's a classical classical model or at least at least in Switzerland and obviously to get the industry sponsoring students in order to also down the line employee them later on. >>That would be the idea situation. Nice vision for Sergei and nice gesture. But you've got to look at what his business is doing. They created a category called cyber protection. Extending the benefit to him is more candidates know physics edge. So why not? This is a great vision. Absolutely the win-win. Absolutely. And we all believe in that the entire, um, you know, stand up team believe in that vision. That's where we are here and building up this institution. Well when you need to go global will be in Silicon Valley and waiting for you guys to come there and collaborate with us there. I hope. I hope that because we want to compliment each other. As I mentioned, computer scientists, our need is globally and obviously also in the Silicon Valley and why not? I think the collaboration aspect is going to be a big part of the growth as you guys get >>settled in on the the first use case in Shevon housing. Exactly. You know, and get that built out, but I think with digital technologies, I think there'll be a great collaboration, bring some good talent in as faculty and advisors and exactly get the flywheel going except congratulations. Thanks for coming on. The key, the education game is changing with modernization of a global impact of technology for good. You're seeing the landscape of innovation hit education. This is another great example of it. Super proud. The interview. Thanks for coming on and sharing the insights. The world continues to evolve. Of course, the cube is, they're watching every turn. I'm John Feria here in Miami beach for the Crohn's global cyber summit. 2019 deck with more coverage after this short break.

>> Narrator: Live from Las Vegas, it's theCUBE, covering HPE discover, 2017, brought to you by Hewlett Packard Enterprise. >> Everyone, we are live here in Las Vegas with SiliconANGLE Media's, theCUBE, our flagship program where we go out to the events, and strike the cylinders, talk to the thought leaders the experts, folks making it happen. I'm John Furrier with my cohost Dave Vellante. Our next guest is Pete Murray, worldwide Vice President of OEM sales and IoT go to market for HP enterprise. Pete welcome to theCUBE. >> Thank you. >> So OEM people basically, Original Equipment Manufacturing they basically take your stuff and put it in their solutions. Why are they interested in doing that? Obviously you have a good product and IoT's hot. This is a new journey and a lot of people are figuring it out. What's the premise behind the growth and the business opportunity for you guys? >> We see IoT as a great opportunity. Whichever analyst you talk to, they're all consistent on one thing and that is, there are going to be billions of devices connected. If you talk to some of the estimates they're anything between 20 and 30 billion by 2020. All that does is create great opportunities and really exciting things can happen when you connect the unconnected, which is today. We're working with OEMs and we've got a successful program for many many years and a lot of our OEMs are starting to look at the marketplace and see great potential to enhance what they offer to their customers. And ultimately deliver additional business value. >> We would agree with you, we think it's hot, in fact Dave and I are coming in Meg Whitman's key note. We think the numbers she was stating in terms of date in IoT understated. We think our numbers show a little higher but that speaks to the pressure for folks to add value, solutions, to providers to go to market with an IoT solution. What is the profile of your customer that's OEMing the HPE products? Is it apps, is it striving? Is it the driver on the app size, is it verticals? Can you share some insight into the landscape? >> Yeah, sure, by the way, our data figure we use is about 44 zeta bytes by 2020. But who knows it could be much bigger. We're focused mainly by industry, and we're working with a lot of our OEMs in industries such as, the healthcare business, telecommunications, transportation. We basically spend time allowing them to focus on what they're really good at. Bringing their intellectual property to solve business problems in their industry. What we bring is what we're really good at which is providing an innovative, quality based, compute based solution with a world class supply chain and global support. We think that's a really really good combination. And it naturally extends in the IoT world, because a lot of our OEMs are operational technology partners who have got something to say in that marketplace. And usually they've got the expertise in an industry segment to enable IoT, enable benefits to be seen and we want to really help them to do just that. >> Can you give an example and specifically the issue of why HPE versus the potentially other choices out there, or growing their own? What are the reasons why they come to you guys? What's the benefits? >> Well first of all, we think we've got a great OEM program, so it's a great base to start. Offering quality innovation and global presence. But on top of that when you look at the IoT world, we think we've got some really compelling assets. We've got assets around conductivity, security, location based capability, we've got the ability to computer the edge where we think there's a lot of significant reasons and benefits to do so. And lastly, we've got our own IoT platform called the universal IoT platform, and that can also deliver great benefits. If you put that together with a partnering co-system to be able to solve problems, we think it's pretty compelling. >> So Pete, take us through the cycle OEM sales cycles tend to be very long, they beat you up and stress test you a million different ways. What's it like, in your IoT world you mentioned healthcare, tel co and some others, what's that qualification cycle look like? >> Well we usually start with a business problem, whatever the OEM is trying to solve. And then we work out how we can best work with them to help them deliver it. Ultimately, the most important focus is their customer to deliver a good solution. So we go through the technology cycles, make sure that we can deliver to the service levels that they're interested in, and then we start thinking about the technology if there's additional innovation that's required. So our technology teams will be working closely together, and then we start looking at where they plan to deploy from a geography prospective, which region, which customers, which targets. And then we figure out how we can support them in that how we can obviously supply and ultimately, make sure that we can provide a great service to their clients. So the cycle can take a while but planning is critical, because when you actually start ramping volume, you want to make sure you've got the right plan in place. >> Well a company like yours has some advantages there like you said, your global distribution. How much of the work that you're doing and expect to be doing is custom activity? >> I'm sorry? >> Custom, how much is custom versus selling the same solution multiple times? And how does that business scale? >> What we tend to find is, we've actually got some pretty strong offerings that our customers use off the shelf and so, in a lot of cases customization is relatively small. But as we're moving into the IoT world a lot of the fundamental business problems we're trying to tackle are the same but each implementation is just slightly different. So we're seeing a little bit more customization as a result of that, but a lot of the time our customers are really interested in our core offerings, because we think that they're both industry leading and also solid. >> So it's maybe some special enabler? As opposed to some heavy engineering effort right? >> Yeah, I mean, typically in the OEM program we'll work with customers if they want to rebadge or rebrand or they're looking for the equipment to be in a certain different format. Or they want the packaging or the distribution documentation to be different, it's those sort of customizations as well as the base technology, if there is a requirement to do that. >> And how do you go to market? Do you have sort of an OEM sales force? And is it direct to those OEMs? There's not sort of a two-tier? I was wondering if you could describe that a little bit. >> So we've got an OEM sales force worldwide. We break it down by the three regions, we work with our NU's as sales teams. We also work with partners that are dedicated to sell OEM based solutions as well. So it's both a direct and indirect route to market our OEM sales teams will be working with our NUs sales teams also. Because there's a certain amount of knowledge and expertise that's needed. And our NUs sales teams won't necessarily have that. That's what we bring to the table. And we've got many many years of experience of doing just that, so it's a combination but we do have dedicated resources for a sales side. The second thing we have is, we've got program managers and technologists that are dedicated to OEM, so when we start working with an OEM customer we make sure that we can bring in people who understand, the product life cycles, they also understand the technology so that we can go through that innovation curve with them as well. >> So talk about the life cycles a little bit I said the sales cycles tend to be very long which is generally true of OEM business but the life cycle times are often times very compressed, so you're under a lot of pressure to keep innovating. So, talk about that. Is that the case in sort of the used cases that you're entering and how are you dealing with that? >> With IoT it can be very varied to a product cycle that can be down to six to 12 months to some cycles that can be 10 years or more. So if you think about it, if a customer's designing a piece of sophisticated equipment and they want an embedded computer solution within it what they don't want to do is see lots and lots of change. So sometimes the design can be current for five, 10, even 15 years. We're asked to support for those types of life cycles. So actually it's quite a mix, and as long as the product is competitive in the marketplace, we're really really happy to work with our OEMs and support that. >> And you need a scalable architecture, you've got to support the head room. What's your observation on that? And how are your customers on the OEM side, approaching that because they have to also put a compelling product out there allows the head room. What's the current state of the art, if you will, in terms of the tech? >> Well, one of the things is once they build a solution they don't really want to change it too many times unless it's innovating and offering more to their clients base directly. And so what we try to do is, we work to change management cycle to allow that to be as easy as possible. But when we bring new generations of technology along, so here at discover we're talking about generation 10 as our new offering on our compute service side, which I'm sure you've heard about. We work with our OEM customers to actually plan when they will implement it in their life cycle. And obviously what they try to do is to marry it up to providing additional innovation and benefit to their clients. So it needs to be planned, but when it's planned correctly it really can make the difference. >> So take us through a conversation, I think this is interesting because you guys have a lot to bring to the table, portfolio wise, you've got Aruba. >> Male: Yep. >> You've got the hardware, you've got the converged software, infrastructure, all that great stuff. When you talk with the customers, what are they comparing you to? I mean, competition wise, there's a lot of noise out there, certainly in IoT. We heard from DeLloyd, talking about some of the things that their customers are facing on the joint solutions. There's a lot of decisions, there's a lot of obstacles there. How do you guys compare and what are those conversations like? >> The conversations we have, they start with, what's the business problem? What are we trying to solve? And the usual areas that people focus on are how do you drive efficiency as cost saving? Number one business challenge. The second is how do you innovate and drive additional differentiation against your competition? So we start there, and then we start looking at potential ways to solve those problems. So we start looking at used cases around things like preventive maintenance, condition monitoring, location based functionality, we're looking at things like smart city solutions. And then what we try to do is come down to the assets that we've got and the capabilities we've got as a company to solve those problems. We never start with the technology, we always start with the business problem that we're trying to solve. >> And how do you compare, at the end of the day, when the customer lays out the solution vis-a-vis the competition, where do you guys shine? >> We think we shine really well. We think we've got a compelling proposition, we've got some great IoT assets, we've got some innovation that we're bringing, particularly when you look at some of the security features of our connectivity, when you look at our ability to compute at the edge. We think that we've actually got a strong message to say, compared to some of our competitors on the block, so we think we've got a strong story. And we think we've got a reason to have customers come talk to us. >> We talked in Intel recently at Mobile World Congress and then at South by Southwest and they have the pillars of societal changes. Autonomous vehicles, smart cities, music and entertainment, smart homes. They're kind of corpulous for the five G and how all this network transformation is happening. Where do you guys, outside of media entertainment which you guys do do business in. But those are, other areas like smart cities, autonomous vehicles and intelligent home. Those are I0o havens, right? I mean, you guys see those as really big markets? >> Yeah we do, I guess the biggest market that we're looking at is really around manufacturing right now because we see opportunities to drive, as I mentioned earlier, on efficiencies and cost savings out by collecting up and using the data which their currently generating but their actually not looking at the business insights within it. So manufacturing is a key opportunity for us. We're working with some really interesting customers to drive some great business outcomes. We're also looking at smart city, this week we're announcing some work we've been doing with Tata Communications in India. Connecting over 400 million of their citizens, and delivering additional service value on top of the platforms that we build around security, around healthcare and other things. But we think one of the biggest markets right now is around manufacturing. And that's where we're trying to put a lot of energy. >> I wanted to as you, Pete, about the data because data's abundant but the insights around that data are very scarce. And so when you think about an OEM business how do you think about the data play? It sounds like, I inferred from what you said that you're helping people get value out of the data. Are you also utilizing that data in other ways in your business? Whether it's predictive maintenance, or some kind of aggregate or talk about that data. >> So, the answer is yes in all counts. The data is absolutely critical. When you're building a preventive maintenance solution in order to get to condition monitoring you've got to collect enough data, look at the trends, and then be able to take action based on it. We're working with companies that are really really experts at doing that. So we've got relationships with the likes of GE digital, with their predicts platform. So we're doing a lot of ghost market activities with those. We're working with other customers like Natural Instruments and PTC that have got that data insight and that history and that level of industry touch and expertise. But when you work with them in partnership you can actually drive some significant data insights for customers. So for us it's about getting the right partnerships in those areas to generate the business insights and ultimately address the business challenges associated with them. >> Pete, we really appreciate you coming on theCUBE and we're going to keep monitoring the progress. Certainly, customer adoption there's always a great metric. And IoT is hot, low hanging fruit, manufacturing, some of these industries are ripe 'cause they're all set up for it, but it certainly the network transformation that's happening and congratulations on great progress. Thanks for coming on theCUBE. More CUBE action, live, here at HPE Discover 2017 in Las Vegas. I'm John Furrier with Dave Vellante. Stay with us, for more day one coverage after this short break. (techno music)