>>The Cube Presents HPD Discovered 2020 >>two. >>Brought to You by H. P E >>Good >>Morning Live from the Venetian Expo Centre Lisa Martin Day Volonte Day two of the Cubes Coverage of HP Discover 22 We've had some great conversations yesterday. Today, full day, a content coming your way. We've got one of our alumni back with us. Neil MacDonald joins us, the executive vice president and general manager of Compute at HPD Neale, Great to have you back on the Cube. >>It's great to be back. And how cool is it to be able to do this face to face again instead of on zoom. Right. So >>great. Great. The keynote yesterday absolutely packed, so refreshing to see that many people eager to hear what HP has been doing. It's been three years since we've all gotten together in person. >>It is, and we've been busy. We've been busy. We've got to share some great news yesterday about some of the work that we're doing with HB Green Lake Cloud Platform and really bringing together all the capabilities across the company in a very unified, cohesive way to enable our customers to embrace that as a service experience we committed to Antonio three years ago, said we were gonna deliver everything we do as a company as a service through Green Lake and we've done it. And it's fantastic to see the momentum that that's really building and how it's breaking down the silos from different types of infrastructure and offer to really create integrated solutions for our customers. So that's been a lot of fun. >>Give us the scope of your role, your areas of responsibility. And then I'd love to hear some feedback. You've been a couple of days here around customers. What some of the feedback help us understand that. >>So at HP, I lead the Compute business, which is our largest business. That includes our hardware and software and services in the compute space. Both, um, what flows through the green late model, but also what throws flows through a traditional purchase model. So, um, that's, uh, that's about $13 billion business for the company and the core of so much of what we do, and it's a real honour to be leading a business that's such a a legacy in a franchise with with 30 years of innovation for our customers in an ocean of followers. Um and it's great to be able to start to share some of the next chapters in that with our customers this week. >>Well, it's almost half the business H p e and as we've talked about, it's an awesome time to be in the computer business. What are you seeing in terms of the trends? Obviously you're all in on as a service. But some customers say, Tell me I got a lot of capital. Yeah, absolutely. I'm fine with Capex. What are you hearing from customers in that regard? And presumably you're happy to sell them in a kind of Capex model? >>Absolutely. And in the current environment, in particular with with some of the economic headwinds that we're starting to stare down here, it's really important for organisations to continue to transform digitally but to be able to match their investments with the revenues as they're building new services and new capabilities. And for some organisations, the challenge of investing all the Capex up front is a big lift and there's quite a delay before they can really monetise all of that. So the power of HP Green Lake is enabling them to match their investment in the infrastructure on a pay as you go basis with the actual revenue they're going to generate from their new capability. So for lots of people that works. But for many other customers, it's it's much more palatable to continue in a Capex purchase, but and we're delighted to do that. A lot of my business still is in that mode. What's changing the or what are the needs, whether you're in the green light environment or in the Capex environment? Um, increasingly, the edge has become a bigger and bigger part of all of our worlds, right, the edges where we all live and work. We've all seen over the last couple of years enormous change in how that work experience and how the shape of businesses has changed, and that creates some challenges for infrastructure. So one of the things that we've announced and we shared some more details of this week is HP Green Light for Computer Ops Management, which is a location agnostic, cloud based management set up that enables you to automate and lifecycle, manage your physical compute infrastructure wherever it lies, so that might be in a distributed environment in hotel locations or out at the edge for so much more data is now being gathered and has to be computed on. So we're really excited about that. And the great thing is because it's fully integrated with HP. Green Light Cloud Platform is in there alongside the storage, alongside the connectivity alongside all the other capabilities. And we can bring those together in a very cohesive infrastructure view for our customers and then build workloads and services and tops. And that's that's really exciting. How have >>your customer conversations evolved, especially over the last couple of years as the edge has exploded? But we've been living in such uncertain times. Are you seeing a change there in the stakeholders rising up the C suite stack in terms of how do we really fine tune this? Because we've got to be competitive. We've got to be a data company. >>Well, that's so true because everybody has seen seen data as a currency and is desperately innovating and Modernising their business model, and with it, the underlying infrastructure and how they think about development. And nowhere is that truer than in enterprises that really becoming digital. First, organisations more and more companies are doing their own in house full stack, cloud native development and pivoting hard from a more traditional view of in house enterprise i t. And in that regard, >>let's >>start to look a lot like a Saas company or a service provider in terms of the needs of the infrastructure you want linear performance scaling. You want to be very sensitive not just to the cost, as you call it, but also to the environmental cost and the power efficiency. And so yesterday we were really thrilled to announce the HBP Reliant are all 300 General Live in, which is the first of our general living platforms. And that's in partnership with Ampere is the first of several things that we're gonna go do together. We're looking forward to building out the rest of our Gen 11 portfolio broadly with all of our industry partners in the in the coming quarters. But we're thrilled about the feedback that we're starting to get from some of our customers about the gains in power efficiency that they're getting from using this new server line that we've developed with amber. >>So, you know, this is an area that I'm very interested in what I write about this a lot. So tell us the critical aspects of Gen 11, where ampere fits, is it is it being used for primarily offloads and there's a core share with us. So >>if you look at the opportunity here is really as a core compute tool for organisations that are doing that in house full snack cloud native development and in that environment, being able to do it with great power efficiency at a great cost point is the great combination. The maturity of the ecosystem, um, is really, really improving to the point where is much, much more accessible for those loads? And if you consider how the infrastructure evolves underneath it, the gains that you get from power efficiency multiply. It's a TCO benefit. It's obviously an environmental benefit, and we all have much, much more to do as an industry on that journey. But every little helps, and we're really excited about being able to bring that to market. The other thing that we've done is recognising the value that we bring in the prelim experience, everything with our integrated lights out management, all of the security, the, uh, hardware root of trust, the secure boot chains, all of that Reliant family values we brought to that platform, just as we do with our others. But we've also recognised that for some of our service provider customers, there's a lot of interest in leveraging open BMC and being able to integrate the management plane and control that in house and tie it to whatever orchestrations being done in the service product. So we have full support for open BMC out of the box out of the gate with Janna Levin. And that's one of the ways that we're evolving. Are offering to meet our customers where they are, including not just the assassin service providers but the enterprises who are starting to adopt more and more of those practises as they build out digital. First, >>tell us more about the architecture. If you would kneel. I mean, so where does ampere and that partnership add value? That's incremental to what you what you might think is a traditional server architecture. How's that evolving? >>Well, it's another alternative for certain workloads in that full stack in house proud Native Development model. Um, it's another choice. It's another option and something that's very excited about >>That's the right course for the horse, for the course that was back in internal development because it's just more efficient. It's lower power, more sustainable. All those things exactly. >>And the wonderful thing for us in the uh in this juncture in the market is there is so much architectural innovation. There are so many innovators out there in the industry creating different optimizations in technology with the lesson silicon or other aspects of the system. And that gives us a much broader palette to paint from as we meet our customers' needs as their businesses involving the requirements are evolving, we can be much more creative as we bring this all together. It's a real thrill to be able to bring some of these technologies into the HP reliant space because we've always felt that compute matters. We've always known that hardware matters, and we've been leading and innovating and meeting these needs as they've evolved over the decades, and it's really fun to be able to continue to do that. Hardware still >>matters. It doesn't matter. We know that here on the Cube, talk about the influence of the customer with so much architectural innovation. There's a lot of choice for customers in every industry. When you're in customer conversations, how are you helping them make decisions? One of the key differentiators that you articulate that's going to really help them achieve outcomes that they have to achieve? >>Well, I think that's exactly as you say. It's about the outcome. Too often, I think the conversation can get down into the lower level details of component, tree and technology and our philosophy. HP has always been focused on what it is that the customer is trying to achieve. How are they trying to serve their customers? What are their needs? And then we can bring an opinionated point of view on the best way to solve that problem, whether that's recommendations on the particular Capex, infrastructure and architecture to build or increasingly, the opportunity to serve that through HP Green Lake, either as hard or as a service. Or is HP Green Lake services further up the stack? Because when you start talking about what is the outcome you're trying to achieve, you have you have a much, much better opportunity to focus the technology to serve the business and not get wrapped up in managing the infrastructure and that's what we love to do. >>So where? Give us the telescope vision. Maybe not to tell a binocular vision as to where compute is going. We're clearly seeing more diversity in silicon. Uh, it's not just a you know x 86 CPU world anymore. There's all these other supporting components new workloads coming in. Where do you you mentioned Edge, whole new ballgame ai inference sing. And that was kind of new workloads, offloads and things of that. Where do you see it all going in the next 3 to 5 years? >>I think it's gonna be really, really exciting time because more and more of our data is getting captured to the edge. And because of the experiences that companies are trying to deliver and organisations are trying to deliver that requires more and more stories are more and more compute at the edge. The edge is not just about connectivity, and again, that's why with the F B green light cloud platform, the power of bringing together the connectivity with the compute with the storage with the other capabilities in that integrated way gives us the ability to serve that combined need at the edge in a very, very compelling way. The room moves a lot of friction and a lot of work for our customers. But as you see that happen, you're going to see more and more combining of functionalities. The silos are going to start to break down between different classes of building block in the data centre, and you've already seen shifts with more and more software to find more and more hybrid offerings running across a computing substrate. But perhaps delivering storage services are analytic services or other workloads, and you're gonna see that to conduct that continue to evolve. So it's gonna be very fun over the next few years to see that, uh, that diversification and a much more opinionated set of offers for particular use cases and workloads and at our job and value is going to be simplifying that complexity because choices great right up to the point where you're paralysed by too many choices. So the wonderful thing about the world that's been done here is that we're able to bring that opinionated point of view and help guide, and again it's all about starting with what are you trying to achieve. What are the outcomes you're trying to deliver? And if you start there were having a great time helping our customers find the right path forward. >>Wow, it sounds like a fun job. Talk to me about, you know, maybe one of your favourite examples that you really think articulates the value of of the choice and the opportunities that HP can deliver to customers, maybe favourite customer example where you think we really nailed it here and they're achieving some incredible outcomes. >>Well, we're really excited about this week as I was chatting with the CEO of Cloud Sigma, which is a global ideas and pass provider who's actually been using our new HP per client moral 300 general live in Are you on purpose? Server line? And, uh, their CEO was reporting to me yesterday that based on his benchmarking, they're seeing a significant improvement in power efficiency, and that's that's that's cool to an engineer. But what's even better is the next thing, he said. That's enabling them to deliver better cost to their customers and advanced their sustainability goals, which is such a core part of what we as an industry and we as society are going to have to continue to make stepwise progress against over the next decade in order to confront those challenges in the environment so that that's that's really fulfilling, not just to see the tech, which is always interesting to an engineer but actually see the impact that it's having an enabling that outcome foreclosed signal >>so many customers, including Cloud Sigma and customers in every industry. E S G is an incredibly important initiative. And so it's vital for companies that have a core focus on E. S G to partner with companies like HP who will help them facilitate that actually demonstrate outcomes to their own users. >>It's such an important journey and it's gonna be a journey of many steps together. But I think it's one of the most critical partnerships that as an industry and as an ecosystem, we still have a lot of work to do and we have to stay focused on it every day, continuing, moving the bar. >>You >>know, to your point about E. S G. You see these E s G reports. Now that they're unbelievable, the data that is in them and the responsibility that organisations mid and large organisations have to actually publish that and be held accountable. It's actually kind of daunting, but there's a lot of investments going on there. You're absolutely right. The >>accountability is key, and it's it's it's necessary to have an accountability partner and ecosystem that can facilitate that. Exactly. >>We just published last week our Own Living Progress report this year, talking about some of the steps that we're making the commitments that we pulled in in time. Um, and we're looking forward to continue to work on that with our customers and with the industry, because it's so critical that we make faster progress together on that >>last question. What's your favourite comment that you've heard the last couple of days being back in person with about 8000 customers, partners and execs? It's >>not. It's not the common. It's the sparkles in the eyes. It's the energy. It is so great to be back together, face to face. I think we, uh, we've soldiered through a couple of tough years. We've done a lot of things remotely together, but there's no substitute for being back together, and the energy is just palpable and it's it's fantastic to be able to share some of what we've been up to in the interim and see the excitement about getting adopted by customers and partners. >>I agree the energy has been fantastic. We were talking about that yesterday. You brought it today, Neil, Thank you so much for joining us. We're excited about Antonio coming up next, going to unpack all the announcements. Really good customers. Perspective from the top of H P E for Neil and Dave Volonte. I'm Lisa Martin joins us in just a few minutes as the CEO of HP, Antonio Neary joins us next.

>>I'm john free with the Q we are here. It's exciting news around the next evolution switching, Sony jean Donny, co founder and chief business officer Pensando and David Hughes chief product and technology officer Aruba HP. Welcome back. We just heard from Antonio neary and john Chambers about the HPV Ruba partnership with Pensando and the new switching platform. Tell me more about the exciting news you're announcing? >>Yeah, I'm really excited today to be introducing the CX 10,000 distributed services switch. It's a brand new class of switch way bringing together the best of Aruba switching technology adding to R C X portfolio combining with Pence Sandoz technology that technology embedded in the platform. The problem we're solving is that in a traditional data center, all of those services like fire walling and low balancing provided by centralized appliances. And while that might be okay for north south traffic traffic that's going in and out of the data center. It's not scalable and it's not cost effective to apply to every service in every port to every flow traversing their data center As we all know with microservices more and more of the traffickers east west over 70% today and growing and so what we're doing here with the C X 10,000 is giving enterprises away to take the smart nick technology that's been proven out by hyper scholars and introduce it into their data centers in a very cost effective and easy to deploy way we're embedding that capability in the top of rack switch so that we can apply Fireable services, low balancing services to every port To every flow, delivering 100 times a scale in terms of a CLS 10 times of performance, in terms of encryption at a third of the cost of those traditional network architectures. So it's a super exciting time, >>love the speed, love the energy there. But I gotta ask what makes this a new category of switch. >>Well if you take a look at the journey we have been on as we have evolved our data centers and the applications have evolved for our customers. Uh and the world is now a bold new world of multi cloud. Uh the architecture is in the data center which are leaves spine architectures have become the new norm. Software defined, networking is pervasively deployed by our customers but as this journey began five or seven or even about 10 years ago uh and has culminated into a much more mature set of building blocks. We have taken the problem from one space of automating networks in the data center to then introducing lots and lots of expensive appliances to bring about security for example, or the state full services, whether it's load balancing or whether it's encryption and visibility and telemetry types of services. Now the customers had to try, you know, trombone all the traffic in and out of these appliances driving up the cost uh and the complexity and when time comes to troubleshoot these environments, it's extremely complex because you're trying to rationalize fabrics coming from one place appliances coming from four or five different vendors, maintaining all the software elements that need to be kept track off. Uh and as more and more customers want to aspire towards zero trust security model. Uh we need to start to embrace a lot of the principles that have been implemented by the hyper scholars and the cloud vendors, which is doing away with the appliances doing away with agent technology on servers, but instead to bring that technology for east west uh into play as well as to ensure that if there are bad actors that are landing inside of the data centers that they do not have the ability to, you know, create attack surfaces with complete lateral movement. Today, that is possible. Uh if you look at 70% of all the attacks that have been happening here in the past few years, it's as a result of having a attack surface which is pretty large in the data centers. And that gets further complicated when you move towards a multi cloud environment where the perimeter of the data center is now moving into the edge. Whether that edges, whether fleet resides for our customers or whether that edge happens to be a co location edge where you're building your own rampant off ramps. So I think the compelling event essentially is driven by the whole notion of distribution of services and having them available from a security and from a services point of view and these are state full services as close to the workload as you possibly can get them. >>So you guys really hit on some key points, their cloud, native microservices East west, north south, um no perimeter edge. These are topics that we would talk about kind of individually over the years, it's happening now all at the same time, this is causing a lot of complexities and then the security challenges you just laid out are everywhere. This brings up a big conversation around solving this. How does this new architecture, this solution solve the complexity and the security challenges in the data center. >>If you look at the use cases that our customers are talking about. The first, the initial use case really is to bring about security and state full security for east west traffic right into the fabric of their data centers. So having the ability to deliver that while eliminating the complex appliances only to do the job which they do very well, which is not South protection of services. Uh that also allows us the ability then to start to deliver visibility and telemetry at the same time that we're delivering state full security firewall and micro segmentation services because what I cannot see, I cannot secure. Uh so those two elements are initial use cases out of the box for our customers as we deliver this platform to them and then as more and more use cases that are becoming evident to us through customer interactions come into play. For example, the co location edge that I would like. David to walk you through a bit more in terms of how we help solve for that use case. >>So for the cooler use case, I think we're moving from a world where people talk about data centers to now talking about centers of data and those centers of data. Yes, they can be in a core private data center, they could be in the cloud but more and more they're going to be distributed around the edge in co location environments. And what we need to be able to do is extend those services that were provided in the data center to be provided in those Kahlo's at the edge And again we want to do that without having to deploy a whole rack of appliances that may be cost more than a computer itself and so with the CX- 10,000 we can have that as a top of rack switch for that polo. And from that switch deploy all of the encryption and firewall ng services that that polo requires. And what's important is that we're doing it with the same policy framework under the same management system across the whole enterprise in the data center as well as in these co location environments and out into the cloud. >>So you guys mentioned visibility and a quick follow up on this question because you mentioned visibility can't see it, you can't protect it. But also there's a lot of workloads that people are trying to automate. These are two factors. Can you guys just double down on that? I want to just get that out there because I think this becomes a big thing. >>I think policy having the ability to have an intent based policy that is a foundational technology building block that we are brought together is a very important element. And then when you map it back to tools that Aruba is extending support for including this platform, become very valuable. So David, why don't you walk us >>through? You know, I think one of the advantages that we bring is that this is an extension of the Aruba C X switching portfolio. So yeah, it's a cloud native microservices, very modern switch architecture and we have a comprehensive management platform, the Aruba fabric controller. And so what we are doing is making sure that everything fits together nicely, that we're delivering a complete solution to our customers. But one important thing to mention here is that we are thinking about how customers can do this step by step. So no, we're not requiring them to rebuild their entire data center, They can do this one rack at a time. We can work with their existing spine and deploy one leaf at a time in a very measured way. And so we think it's a great way for enterprises to be able to consume this modern distributed platform. >>That's a great segment. The next question. I mean I totally see this as you guys are talking about the cloud native trend, driving a cloud operational model to every edge. The data center is just another edge. It's a center of data. Love that. I love that line. So I have to kind of ask the operational side of the question, how would an enterprise customers manage all this take us through the nuts and bolts of deploying and managing of his gum? A customer >>That's a very good question. If you take a look at the customer's deployment models and let's let's take the example of they want to now bring in this technology and build a part or highly secure part with it for east west and to make sure that they're protecting 100% of that east west traffic. I think that leveraging all the building blocks that we have innovated between us and Aruba. We want to make sure that the ecosystem that the customer has built, they want whether they have built it with companies like Splunk and service now or Guardianco, they want integration points will be made available to them. If you take a look at, take a step back and say for these environments as you aspire to go toward zero trade security. The issues of inserting security appliances into network flows and having the ability to map it to the knowledge of applications and their dependencies for policy becomes an important function to tackle. So once you accept that, Okay, I have state full security functions built into this top of rack device available for my applications and all workloads, whether they're container workloads, bare metal workload, virtualized workloads uh and I have complete visibility into those workloads without compromising on connectivity and I can control through enforcement of policy where I need it because now security is part of the fabric, it's not a bolt on. Then comes the job of integration with an ecosystem. So whether you're looking at seem and sold companies where we are delivering in close collaboration with Splunk, A Pensando app for Splunk there's also going to be the availability of an elastic module, A plug in module. Uh then turn attention to what's more automation and devops and civil playbooks for the C X 10-K will be made available day one so that where you do not have the ability to deploy the A. F. C. You can use your existing answerable toolkit and they're making those playbooks available to our customers. Uh They want integration with application discovery mapping companies like Guardianco, allowing them to discover who's talking to whom and push and enforce that policy through the C X 10-K will allow for more automated deployments of those policies and finally, compliance integration with vendors like too thin for continuous security compliance monitoring becomes extremely important as the screen depicts a lot of lot of visualization capabilities with companies like Elk which are in beta today and answerable and Splunk and Elk will all be targeted at first customer shipment. So again, telemetry visibility with the integration of the ecosystem. Uh, it becomes a very powerful combination for the customers as they look to operationalize this for day to day three and they, you know, day one, day two, day three automation. >>That's awesome. David, I'd like to let you weigh in on this whole question of operations because you're hitting all the marks here that are relevant cloud, native microservices, apps, explosion and data volume and velocity, hyper scale operational cloud operations, performance, price point security all in this one solution. This is big. Um, it's not like you mentioned earlier, it's not a rip and replace but you can roll it out how how do you see a customer best operational izing this new, >>You know, I think the answer is a little bit different for each customer but you are very careful at the beginning, we introduced this. It's an evolution of switching. It's not a revolution where we have to replace everything and I think that's really exciting is that it builds on the foundational architecture of leaf and spine. And what we're able to do is let that customer introduced these new capabilities one leaf at a time. So maybe when they're upgrading from 10 gigs to 25 gigs, it's a great time for them to introduce this capability into their data center um and then depending on their application, you know, it may be, as Sony said that they've got one particular application, a crown jewel application and so they want to build out that in one rack and provide, you know, very, very robust East west as well as north south um security around that application, but there's so many different ways that customers can deploy this technology and what's really exciting is now is we're beginning to work with our customers, learning about these new use cases and then feeding that back into our roadmap and we all >>know, as you get down lower in the network layer, security is distributed architecture. So everything is paramount like security, super relevant, great conversation, I gotta ask what's next with this technology. Yeah, >>well, you know the teams, the two engineering teams are working together and this is step one on, on a really exciting new path, I don't know, Sony, what would you say? >>I think there's a lot more to come here. This is just a starting point. We have an incredibly strong partnership and go to market partnership here with Uber team with this platform. It is just the beginning uh and it will lead our customers onto the multi cloud journey. Uh and last but not least, I would like to say that you know, in closing uh that are seldom opportunities where you look at disrupting the way things are happening while fitting into customers existing models. So this is, as I said with everything being software defined, you will continue to see as delivering at great velocity more and more software defined services, whether it's encryption, Lord balancing and other state full services over time. Making this technology easier to deploy by fitting into the existing ecosystem and continuing to provide them with the 100 extra scale, 10 X. The performance as well as the ability to do it at a third of the same, you know, at the third of the cost of what they would need to if they had to build this uh today with disparate devices, >>exciting news in the industry. You guys are the pros you've seen all the waves of innovation over the years. I guess my final final question would be, how would you summarize this point in time right now? This is pretty um exciting all this is all happening At the same time, customers are having opportunity to innovate the pandemic has shown a lot of scale and and the need for stability and security. This is a special moment. How would you guys weigh in on that? >>Yeah, I think about it every decade, there's a change in how data centers a belt. And so this is the change that's happening this decade. Moving to a distributed services, switch. The other big mega trend that I see is this move, as I said from data centers to stand as a data and the opportunity for customers to use this technology as they move out to the edge. Have distributed compute and tell us, what do you think Sony? >>I think I couldn't agree more. I think there are so many various technology transitions occurring now. The cloud being the biggest one. Uh the explosion of data and uh, you know, the customers making decisions of having a distributed model And if indeed two thirds, if not 75% of all data will be processed at the edge over the next few years. This architecture is prime for the enterprise to go leverage their best practices of today while they can gradually move that architecture is for the future, which is a multi cloud future >>centers of data, large scale cloud operations automation. The speed of innovation has never seen this before. Uh It's exciting time. Sunny, thank you for coming on. And David, thanks for chatting about this exciting new announcement. Thank you very much. >>Thank you. Thank you. >>This is the power of and hp. Ruba and Pensando partnership. I'm john forward the cube. Thanks for watching. Mhm

>>Yeah, >>approximately two years after HP split into two separate companies, antonioni Ranieri was named president and Ceo of Hewlett Packard Enterprise. Under his tenure, the company has streamlined its operations, sharpened his priorities, simplified the product portfolio and strategically aligned its human capital with key growth initiatives. He's made a number of smaller but high leverage acquisitions and return the company to growth while affecting a massive company wide pivot to an as a service model. Welcome back to HPD discovered 2021. This is Dave Volonte for the cube and it's my pleasure to welcome back Antonio Neary to the program. Antonio it's been a while. Great to see you again. >>Hi, Dave. Thanks for having me. >>That's really our pleasure. It was just gonna start off with the big picture. Let's talk about trends. You're a trend spotter. What do you see today? Everybody talks about digital transformation. We had to force marks to digital last year. Now it's really come into focus. But what are the big trends that you're seeing that are affecting your customers transformations? >>Well, Dave, I mean obviously we have been talking about digital transformation for some time uh in our view is no longer a priority is a strategic imperative. And through the last 15 months or so since we have been going through the pandemic, we have seen that accelerated to a level we haven't never seen before. And so what's going on is that we live in a digital economy and through the pandemic now we are more connected than ever. We are much more distributed than ever before and an enormous amount of data is being created and that data has tremendous value. And so what we see in our customer's name, more connectivity, they need a platform from the edge to the cloud to manage all the data and most important they need to move faster and extracting that inside that value from the data and this is where HP is uniquely positioned to deliver against those experiences and way we haven't imagined before. >>Yeah, we're gonna dig into that now, of course you and I have been talking about data and how much data for decades, but I feel like we're gonna look back at 2030 and say, wow, we never, we're not gonna do anything like that. So we're really living in a data centric era as the curves are going exponential, What do you see? How do you see customers handling this? How are they thinking about the opportunities? >>Well, I think, you know, customer realized now that they need to move faster, they need to absolutely be uh much more agile and everything. They do, they need to deploy a cloud experience for all the work clothes and data that they manage and they need to deliver business outcomes to stay ahead of the competition. And so we believe technology now plays even a bigger role and every industry is a technology industry in many ways, every company, right, is a technology company, whether your health care, your manufacturer, your transportation company, you are an education, everybody needs more. It no less. It but at the same time they want the way they want to consumer dave is very different than ever before, right? They want an elastic consumption model and they want to be able to scale up and down based on the needs of their enterprise. But if you recall three years ago, I knew and I had this conversation, I predicted that enterprise of the future will be edge century, cloud enable and data driven. The edge is the next frontier, we said in 2018 and think about it, you know, people now are working remotely and that age now is much more distribute than we imagined before. Cloud is no longer a destination, it is an experience for all your apps and data, but now we are entering what we call the edge of insight, which is all about that data driven approach and this is where all three have to come together in ways that customer did envision before and that's why they need help. >>So I see that, I see the definition of cloud changing, it's no longer a set of remote services, you know, somewhere up there in the cloud, it's expanding on prem cross clouds, you mentioned the edge and so that brings complexity. Every every company is a technology company but they may not be great at technology. So it seems that there are some challenges around there, partly my senses, some of some of what you're trying to do is simplify that for your customers. But what are the challenges that your customers are asking you to solve? >>Well, the first they want a consistent and seamless experience, whatever that application and data lives, so, you know, for them, you know, they want to move away from running it to innovate in our 90 and then obviously they need to move much faster. As I said earlier about this data driven approaches. So they need help because obviously they need to digitize every every aspect of the company, but at the same time they need to do it in a much more cost effective way. So they're asking for subject matter expertise on process engineering. They're asking for the fighting the right mix of hybrid experiences from the edge to cloud and they need to move much faster at scale in deploying technologies like Ai deep learning and machine learning and Hewlett Packard Enterprise uh is extremely well positioned because we have been building an age to club platform where you provide connectivity where you bring computing and storage uh in a softer, define scalable way that you can consume as a service. And so we have great capabilities without HP Point next technology services and advice and run inside. But we have a portfolio with HP Green Lake, our cloud services, the cloud that comes to you that are addressing the most critical data driven warlords. >>Probably about 24 months ago you announced that HP was was going to basically go all in on as a service and get there by by 2022 for all your solutions. I gotta get, I gotta say you've done a good job communicating the Wall Street, I think, I think culturally you've really done a good job of emphasizing that to your, to the workforce. Uh, but but how should we measure the progress that you've made toward that goal? How our customers responding? I I know how the markets responding, you know, three or four year big competitors have now announced. But how should we measure, you know, how you're tracking to that goal? >>Well, I think, you know, the fact that our competitors are entering the other service market is a validation that our vision was right. And that's that's that's good because in the end, you know, it tells us we are on the right track. However, we have to move much faster than than ever before. And that's why we constantly looking for ways to go further and faster. You're right. The court of this is a cultural transformation. Engineering wise, once you state, once you state the North Star, we need to learn our internal processes to think Cloud first and data first versus infrastructure. And we have made great progress. The way we measure ourselves. Dave is very simple is by giving a consistent and transparent report on our pivot in that financial aspect of it, which is what we call the annualized revenue run rate, which we have been disclosed enough for more than a year and a half. And this past quarter grew 30% year over year. So we are on track to deliver a 30-40% Kegel that we committed two years ago And this business going to triple more than uh more than one year from now. So it's gonna be three times as bigger as we enter 2022 and 2023. But in the end, it's all about the experience you deliver and that's why architecturally uh while we made great progress. I know there is way more work to be done, but I'm really excited because what we just announced here this week is just simply remarkable. And you will see more as we become more a cloud operating driven company in the in the next months and years to come. >>I want to ask you kind of a personal question. I mean, COVID-19 is you know, sharpened our sensitivity and empathy to to a lot of different things. Uh and I think uh ceos in your position of a large tech company or any large company, they really can't just give lip service to things like E. S. G. Or or ethical uh digital transformation, which is something that you've talked about in other words, making sure that it's inclusive. Everybody is able to participate in this economy and not get left behind. What does this mean to you personally? >>Well, they remember I'm in a privileged position, right? Leading a company like Hewlett Packard Enterprise that has Hewlett and Packard on the brand is an honor, but it's also a big responsibility. Let's remember what this company stands for and what our purpose is, which is to advance the way people live and work, and in that we have to be able to create a more equitable society and use this technology to solve some of the biggest societal challenge you have been facing The last 18 months has been really hard on a number of dimensions, not just for the business but for their communities. Uh, we saw disruption, we saw hardships on the financial side, we saw acts of violence and hatred. Those are completely unacceptable. But if we work together, we can use these technologies to bring the community together and to make it equitable. And that's one is one of my passion because as we move into this digital economy, I keep saying that connecting people is the first step and if you are not connected, you're not going to participate. Therefore we cannot afford to create a digital economy for only few. And this is why connectivity has to become an essential service, not different than water and electricity. And that's why I have passion and invest my own personal time working with entities like World Economic Forum, educating our government, right, Which is very important because both the public sector and the private sector have to come together. And then from the technology standpoint, we have to architect these things that are commercially accessible and viable to everyone. And so it's uh it's I will say that it's not just my mission. Uh this is top of mind for many of my colleagues ceos that talked all the time and you can see of movement, but at the same time it's good for business because shareholders now want to invest in companies that take care about this, how we make, not just a word more inclusive and equitable, but also how we make a more sustainable and we with our technologies, we can make the world way more sustainable with circular economy, power, efficiency and so forth. So a lot of work to be done dave but I'm encouraged by the progress but we need to do way way more. >>Thank you for that Antonio. I want to ask you about the future and I want to ask you a couple of different angles. So I want to start with the edge. So it seems to me that you're you're building this vision of what I call a layer that abstracts the underlying complexity of the whether it's the public cloud across clouds on prem and and and the edge and it's your job to simplify that. So I as the customer can focus on more strategic initiatives and that's clearly the vision that you guys are setting forth on. My question is is how far do you go on the edge? In other words, it seems to me that Aruba for example, for example, awesome acquisition could go really, really deep into the far edge, maybe other parts of your portfolio, you're kind of more looking at horizontal. How should we think about HP. Es, positioning and participation in that edge opportunity? >>Well, we believe we are becoming one of the merger leaders at the intelligent edge. Right? These edges becoming way more intelligent. We live in a hyper connected world and that will continue to grow at an exponential pace. Right? So today we we may have billions of people and devices pursue. We're entering trillions of things that will be connected to the network. Uh, so you need a platform to be able to do with the scale. So there is a horizontal view of that to create these vertical experiences which are industry driven. Right? So one thing is to deliver a vertical experience in healthcare versus manufacturer transportation. And so we take a really far dave I mean, to the point that we just, you know, put into space 256 miles above the Earth, a supercomputer that tells you we take a really far, but in the end, it's about acting where the data is created and bringing that knowledge and that inside to the people who can make a difference real time as much as possible. And that's why I start by connecting things by bringing a cloud experience to that data, whatever it lives because it's cheaper and it's way more economical and obviously there's aspects of latest in security and compliance. They have to deal with it and then ultimately accelerate that inside into some sort of outcome. And we have many, many use cases were driving today and Aruba is the platform by the way, which we have been using now to extend from the edge all the way to the core into the cloud business. And that's why you HP has unique set of assets to deliver against that opportunity. >>Yes, I want to talk about some of the weapons you have in your arsenal. You know, some people talk about, hey, well we have to win the architectural battle for hybrid cloud. I've heard that statement made, certainly HP is in that battle. It's not a zero sum game, but you're a player there. And so when I, when I look at as a service, great, you're making progress there. But I feel like there's more, there's, there's architecture there, you're making acquisitions, you're building out as moral, which is kind of an interesting data platform. Uh, and so I want to ask you how you see the architecture emerging and where H. P. S sort of value add, I. P. Is your big player and compute you've got actually, you've got chops and memory disaggregate asian, you've done custom silicon over the years. How how should we think about your contribution to the next decade of innovation? >>Well, I think it's gonna come different layers of what we call the stock, right? Obviously, uh, we have been known for an infrastructure company, but the reality is what customers are looking for. Our integrated solutions that are optimized for the given world or application. So they don't have to spend time bringing things together. Right? And and spend weeks sometimes months when they can do it in just in a matter of minutes a day so they can move forward innovative on I. T. And so we were really focused on that connectivity as the first step. And Aruba give us an enormous rich uh through the cloud provisioning of a port or a wifi or a one. As you know, as we move to more cloud native applications. Much of the traffic through the connectivity will go into the internet, not through the traditional fixed networks. And that's what we did acquisitions like Silver Peak because now we can connect all your ages and all your clouds in an autonomous softer. The final way as we go to the other spectrum. Right? We talk about one load optimization and uh for us H. P. S my role is the recipe by which we bring the infrastructure and the software in through that integrated solution that can run autonomously that eventually can consume as a service. And that's why we made the introduction here of HP Green like Lighthouse, which is actually a fully optimised stack. They with the push of a bottom from HP Green Lake cloud platform, we can deploy whatever that that is required and then be able to Federated so we can also address other aspects like disaster recovery and be able to share all the knowledge real time. Swarm learning is another thing that people don't understand. I mean if you think about it. So I'm learning is a distributed Ai learning ecosystem and think about what we did with the D. C. Any in order to find cures for Alzheimer's or dementia. But so I'm learning is going to be the next platform sitting on this age to cloud architecture. So that instead of people worrying about sharing data, what we're doing is actually sharing insights And be able to learn through these millions of data points that they can connect with each other in a secure way. Security is another example, right? So today on an average takes 28 days to find a bridge in your enterprise with project Aurora, which we're going to make available at the end of the year by the end of the year. We actually can address zero day attacks within seconds. And then we're work in other areas like disaster recovery when you get attacked. Think about the ransom ramp somewhere that we have seen in the last few weeks, right? You know, God forbid you have to pay for it. But at the same time, recovery takes days and weeks. Sometimes we are working on technology to do it within 23 seconds. So this is where HP can place across all spectrums of the stack And at the same time of course people expect us to innovate in infrastructure layer. That's why we also partner with companies like Intel were with the push of a bottom. If you need more capacity of the court, you don't have to order anything. She's pushed the bottle, we make more calls available so that that warlord can perform and when you don't need it, shut it off so you don't have to pay for it. And last finalist, you know, I will say for us is all about the consumption availability of our solutions And that's what I said, you know, in 2019 we will make available everything as a service by 2022. You know, we have to say as you know, there is no need to build the church for Easter Sunday when you can rent it for that day. The point here is to grow elastically. And the fact that you don't need to move the data is already a cost savings because cost of aggression data back and forth is enormous and customers also don't want to be locked in. So we have an open approach and we have a true age to cloud architecture and we are focusing on what is most valuable aspect for the customer, which is ultimately the data. >>Thank you for that. One of the other things I wanted to ask you about, again, another weapon in your arsenal is you mentioned supercomputing before. Up in space, we're on the cusp of exa scale and that's the importance of high performance computing. You know, it used to be viewed as just a niche. I've had some great conversations with DR go about this, but that really is the big data platform, if you will. Uh can I wonder if you could talk a little bit about how that fits into the future. Your expertise in HPC, you're obviously a leader in that space. What's the fit with this new vision you're laying out? >>Well, HPC, high performance computing in memory computer are the backbone to be able to manage large data sets at massive scale. Um, and, you know, deployed technologies like deep learning or artificial intelligence for this massive amount of data. If we talked about the explosion of data all around us and uh, you know, and the algorithms and the parameters to be able to extract inside from the day is getting way more complex. And so the ability to co locate data and computed a massive scale is becoming a necessity, whether it's in academia, whether it's in the government obviously to protect your, your most valuable assets or whether it is in the traditional enterprise. But that's why with the acquisition of cray as G. I. And our organic business, we are absolutely the undisputed leader to provide the level of capabilities. And that's why we are going to build five of the top six exa scale systems, which is basically be able to process the billion billion, meaning billion square transactions per second. Can you imagine what you can do with that? Right. What type of problems you can go solve climate problems? Right. Um you know, obviously be able to put someone back into the moon and eventually in mars, you know, the first step to put that supercomputer as an edge computer into the international space station. It's about being able to process data from the images that take from the ice caps of the of the earth to understand climate changes. But eventually, if you want to put somebody in in into the Marks planet, you have to be able to communicate with those astronauts as they go and you know, you can't afford the latency. Right? So this is what the type of problems we are really focused on. But HPC is something that we are absolutely super committed and it's something that honestly, we have the full stack from silicon to software to the system performance that nobody else has in the industry. >>Well, I think it's a real tailwind for you because the industry is moving in that direction and everybody talks about the data and workloads are shifting. We used to be uh I got O. L. T. P. And I got reporting. Now you look at the workloads, there's so much diversity so I'll give you the last word. What what really is the most exciting to you about the future of HPV? >>Well, I'm excited about the innovation will bring it to the market and honestly as the Ceo I care about the culture of the company. For me, the last almost 3.5 years have been truly remarkable. As you said at the beginning, we are transforming every aspect of this company. When I became Ceo I had three priorities for myself. One is our customers and partners. That's why we do these events right to communicate, communicate, communicate. They are our North Star, that's why we exist. Second is our innovation right? We compete and win with the best innovation, solving the most complex problems in a sustainable and equitable way. And third is the culture of the company, which are the core is how we do things in our Team members and employees. You know, I represent my colleagues here, the 60,000 strong team members that had incredible passion for our customers and to make a contribution every single day. And so for me, I'm very optimistic about what we see the recovery of the economy and the possibilities of technology. Uh, but ultimately, you know, we have to work together hand in hand and I believe this company now is absolutely on the right track to not just be relevant, but really to make a difference. And remember That in the end we we have to be a force for good. And let's not forget that while we do all of this, we have some farm with technology. We have to also help some, uh, to address some of the challenges we have seen in the last 18 months and H. P. E. is a whole different company uh, that you knew 3.5 years ago. >>And as you said, knowledge is the right thing to do. It's good. It's good for business Antonio. Neary, thanks so much for coming back to the cube is always a pleasure to see you. >>Thanks for having me. Dave and >>thank you for watching this version of HP discover 2021 on the cube. This is David want to keep it right there for more great coverage. Mm

>>from the cube studios >>in Palo alto in >>boston connecting with thought leaders all around the world. This >>is a cute >>conversation. Hello welcome to the cubes coverage of HPD discovered 2021 virtual. I'm john for your host of the cube we're here with CUBA alumni. One of the original cube guests 2020 11 back in the day kurt president and chief architect of Hewlett Packard labs. He's also a Hewlett Packard enterprise fellow and vice president. Great to see you and you're in Vegas. I'm in Palo Alto. We've got a little virtual hybrid going on here. Thanks for spending time. >>Thanks john it's great to be back with you >>so much going on. I love to see you guys having this event kind of everyone in one spot. Good mojo. Great CHP, you know, back in the saddle again. I want to get your, take, your in the, in the, in the action right now on the lab side, which is great disruptive innovation is the theme. It's always been this year, more than ever coming out of the pandemic, people are looking for the future, looking to see the signs, they want to connect the dots. There's been some radical rethinking going on that you've been driving and in the labs, you hope you look back at last, take us through what's going on, what you're thinking, what's the, what's the big trends? >>Yeah, John So it's been interesting, you know, over the last 18 months, all of us had gone through about a decade's worth of advancement in decentralization, education, healthcare, our own work, what we're doing right now suddenly spread apart. Uh, and it got us thinking, you know, we think about that distributed mesh and as we, as we try and begin to return to normal and certainly think about all that we've lost, we want to move forward, we don't want to regress. And we started imagining, what does that world look like? And we think about the world of 20 2500 and 35 zeta bytes, 100 and 50 billion connected things out there. And it's the shape of the world has changed. That's where the data is going to be. And so we started thinking about what's it like to thrive in that kind of world. We had a global Defense research institute came to us, Nasa's that exact question. What's the edge? What do we need to prepare for for this age of insight? And it was kind of like when you had those exam questions and I was one of those kids who give you the final exam and if it's a really good question, suddenly everything clicked. I understood all the material because there was that really forcing question when they asked us that for me, it it solidified what I've been thinking about all the work we've done at labs over the last the last 10 years. And it's really about what does it take to survive and thrive. And for me it's three things. One is, success is going to go to whoever can reason over more information, who can gain the deepest insights from that information in time that matters and then can turn that insight into action at scale. So reason, insight and action. And it certainly was clear to me everything we've been trying to push for in labs, all those boundaries. We've been pushing all those conventions we've been defying are really trying to do that for, for our customers and our partners to bring in more information for them to understand, to be able to allow them to gain insight across departments across disciplines and then turn that insight into action at scale where scale is no longer one cloud or one company or one country, let alone one data center >>lot there. I love the dot I love that metadata and meta reasoning incites always been part of that. Um and you mentioned decentralization. Again, another big trend. I gotta ask you where is the big opportunity because a lot of people who are attending discover people watching are trying to ask what should they be thinking about. So what is that next big opportunity? How would you frame that and what should attendees look for coming out at HP discover. >>So one thing we're seeing is that this is actually a ubiquitous trend, whether we're talking about transportation or energy or communications, they all are trying to understand and how will they admit more of that data to make those real time decisions? Our expectation in the middle of this decade when we have the 125 petabytes, You know, 30% of that data will need real time action out of the edge where the speed of light is now material. And also we expect that at that point in time three out of four of those 185 petabytes, they'll never make it back to the data center. So understanding how we will allow that computation, that understanding to reach out to where the data is and then bringing in that's important. And then if we look at at those, all of those different areas, whether it's energy and transportation, communications, all that real time data, they all want to understand. And so I I think that as many people come to us virtually now, hopefully in person in the future when we have those conversations that labs, it's almost immediate takes a while for them and then they realize away that's me, this is my industry too, because they see that potential and suddenly where they see data, they see opportunity and they just want to know, okay, what does it take for me to turn that raw material into insight and then turn that insight into >>action, you know, storage compute never goes away, it gets more and more, you need more of it. This whole data and edge conversations really interesting. You know, we're living in that data centric, you know, everyone's gonna be a date a couple, okay. That we know that that's obvious. But I gotta ask you as you start to see machine learning, um cloud scale cloud operations, a new Edge and the new architecture is emerging and clients start to look at things like AI and they want to have more explain ability behind I hear that all the time. Can you explain it to me? Is there any kind of, what is it doing? Good as our biases, a good bad or you know, is really valuable expect experimental experiential. These are words are I'm hearing more and more of >>not so much a speeds >>and feeds game, but these are these are these are these are outcomes. So you got the core data, you've got a new architecture and you're hearing things like explainable ai experiential customer support, a new things happening, explain what this all means, >>You know, and it's it's interesting. We have just completed uh creating an Ai ethical framework for all of Hewlett Packard enterprise and whether we're talking about something that's internal improving a process, uh something that we sell our product or we're talking about a partnership where someone wants to build on top of our services and infrastructure, Build an AI system. We really wanted to encompass all of those. And so it was it was challenging actually took us about 18 months from that very first meeting for us to craft what are some principles for us to use to guide our our team members to give them that understanding. And what was interesting is we examined our principles of robustness of uh making sure they're human centric that they're reliable, that they are privacy preserving, that they are robust. We looked at that and then you look at where people want to apply these Ai today's AI and you start to realize there's a gap, there's actually areas where we have a great challenge, a human challenge and as interesting as possibly efficacious as today's A. I. S. R. We actually can't employ them with the confidence in the ethical position that we need to really pull that technology in. And what was interesting is that then became something that we were driving at labs. It began gave us a viewpoint into where there are gaps where, as you say, explica bility, you know, as fantastic as it is to talk into your mobile phone and have it translated into another one of hundreds of languages. I mean that is right out of Star trek and it's something we can all do. And frankly, it's, you know, we're expecting it now as efficacious as that is as we echo some other problems, it's not enough. We actually need to be explainable. We need to be able to audit these decisions. And so that's really what's informed now are trustworthy ai research and development program at Hewlett Packard Labs. Let's look at where we want to play. I I we look at what keeps us from doing it and then let's close the technology gap and it means some new things. It means new approaches. Sometimes we're going back back back to some of the very early ai um that things that we sort of left behind when suddenly the computational capability allowed us to enter into a machine learning and deep neural nets. Great applications, but it's not universally applicable. So that's where we are now. We're beginning to construct that second generation of AI systems where that explica bility where that trustworthiness and were more important that you said, understanding that data flow and the responsibility we have to those who created that data, especially when it's representing human information, that long term responsibility. What are the structures we need to support that ethically? >>That's great insight, Kirk, that's awesome stuff. And it reminds me of the old is new again, right? The cycles of innovation, you mentioned a I in the eighties, reminds me of dusting off and I was smiling because the notion of reasoning and natural language that's been around for a while, these other for a lot of Ai frame which have been around for a while But applied differently becomes interesting. The notion of Meta reasoning, I remember talking about that in 1998 around ontology and syntax and data analysis. I mean, again, well formed, you know, older ways to look at data. And so I gotta ask you, you know, you mentioned reasoning over information, getting the insights and having actions at scale. That doesn't sound like an R and D or labs issue. Right? I mean that that should be like in the market today. So I know you, there's stuff out there, what's different around the Hewlett Packard labs challenge because you guys, you guys are working on stuff that's kind of next gen, so why, what's next gen about reasoning moreover, information and getting insights? Because you know, there's a zillion startups out there that claim to be insights as a service, um, taking action outcomes >>and I think there were going to say a couple things. One is the technologies and the capabilities that God is this far. Uh, they're actually in an interesting position if we think of that twilight of moore's law is getting a little darker every day. Um, there's been such a tail wind behind us tremendous and we would have been foolish not to take advantage of it while it lasted, but as it now flattens out, we have to be realistic and say, you know what that ability to expect anticipate and then planned for a doubling and performance in the next 18 to 24 months because there's twice as many transistors in that square of silicon. We can't count on that anymore. We have to look now broader and it's not just one of these technology inflection points. There's so many we already mentioned ai it's voraciously vowing all this data at the same time. Now that data is all at the edge is no longer in the data center. I mean we may find ourselves laughing chuckling at the term itself data center. Remember when we sent it all the data? Because that's where the computers were. Well, that's 2020 thinking right, that's not even 2025. Thinking also security, that cyber threat of Nation State and criminal enterprises, all these things coming together and it's that confluence of discontinuities, that's what makes a loud problem. And the second piece is we don't just need to do it the way that we've been doing it because that's not necessarily sustainable. And if something is not sustainable is inherently inequitable because we can't afford to let everyone enjoy those benefits. So I think that's all those things, the technology confluence of technology, uh, disruptions and this desire to move to really sustainable, really inherently inequitable systems. That's what makes it a labs problem. >>I really think that's right on the money. And one of things I want to get your thoughts on, cause I know you have a unique historic view of the trajectory arc. Cloud computing that everyone's attention lift and shift cloud scale. Great cloud native. Now with hybrid and multi cloud clearly happening, all the cloud players were saying, oh, it's never gonna happen. All the data set is going to go away. Not really. The, the data center is just an edge big age. So you brought up the data center concept and you mentioned decentralization there, it's a distributed computing architecture, There is no line anymore between what's cloud and what's not the cloud is just the cloud and the data center is now a big fat edge and edges are smaller and bigger. Their nodes distribute computing now is the context. So this is not a new thing for Hewlett Packard enterprise. I mean you guys been doing distributed computing paradigms, supplying software and hardware and solutions Since I can remember since it was founded, what's new now, what do you say that folks are saying, what is HP doing for this new architecture? Because now an operating system is the word, the word that they want. They want to have an operating model, deV ops to have sex shops, all this is happening. What's the what's the state of the art from H. P. E. And how does the lab play into that vision? >>And it's so wonderful that you mentioned in our heritage because if you think about it was the first thing that Bill and they did, they made instruments of unparalleled value and quality for engineers and scientists. And the second thing they did was computerized that instrument control. And then they network them together and then they connect to the network measurement sensing systems to business computing. Right. And so that's really, that's exactly what we're talking about here. You know, and yesterday it was H. B. I. B. Cables. But today it is everything from an Aruba wireless gateway to a green Lake cloud that comes to you to now are cray exa scale supercomputing. And we wanted to look at that entire gamut and understand exactly what you said. How is today's modern developer who has been distinct in agile development in seven uh and devops and def sec ops. How can we make them as comfortable and confident deploying to any one of those systems or all of them in conjunction as confident as they've been deploying to a cloud. And I think that's really part of what we need to understand. And as you move out towards the edge things become interesting. A tiny amount of resources, the number of threats, physical and uh um cyber increased dramatically. It is no longer the healthy happy environment of that raised floor data center, It is actually out in the world but we have to because that's where the data is and so that's another piece of it that we're trying to bring with the labs are distributed systems lab trying to understand how do we make cloud native access every single bite everywhere from the tiniest little Edge embedded system, all the way up through that exa scale supercomputer, how do we admit all of that data to this entire generation and then the following subsequent generation, who will no longer understand what we were so worried about with things being in one place or another, they want to digest all the world's data regardless of where it is. >>You know, I was just having a conversation, you brought this up. Uh that's interesting around the history and the heritage, embedded systems is changing the whole hardware equations, changes the software driven model. Now, supply chain used to be constrained to software. Now you have a software supply chain, hardware, now you have software supply chain. So everything is happening in these kind of new use cases. And Edge is a great example where you want to have compute at the edge not having pulled back to some central location. So, again, advantage hp right, you've got more, you've got some solutions there. So all these like memory driven computing, something that you've worked on and been driving the machine product that we talked about when you guys launched a few years ago, um, looks like now a good R and D project, because all the discussions, I'm I'm hearing whether it's stuff in space or inside hybrid edges is I gotta have software running on an embedded system, I need security, I gotta have, you know, memory driven architecture is I gotta have data driven value in real time. This is new as a kind of a new shift, but you still need to run it. What's the update on the machine and the memory driven computing? And how does that connect the dots for this intelligent Edge? That's now super important in the hybrid equation. >>Yeah, it's fantastic you brought that up. You know, it's uh it's gratifying when you've been drawing pictures on your white board for 10 or 15 years and suddenly you see them printed uh and on the web and he's like, OK Yeah, you guys were there were there because we always knew it had to be bigger than us. And for a while you wonder, well is this the right direction? And then you get that gratification that you see it repeated. And I think one of the other elements that you said that was so important was talking about that supply chain uh and especially as we get towards these edge devices uh and the increasing cyber threat, you know, so much more about understanding the provenance of that supply chain and how we get beyond trust uh to prove. And in our case that proof is rooted in the silicon. Start with the silicon establish a silicon root of trust, something that can't be forged that that physically uncomfortable function in the silicon. And then build up that chain not of trust but a proof of measurable confidence. And then let's link that through the hardware through the data. And I think that's another element, understanding how that data is flowing in and we establish that that that provenance that's provable provenance and that also enables us to come back to that equitable question. How do we deal with all this data? Well, we want to make sure that everyone wants to buy in and that's why you need to be able to reward them. So being able to trace data into an AI model, trace it back out to its effect on society. All these are things that we're trying to understand the labs so that we can really establish this data economy and admit the day that we need to the problems that we have that really just are crying out for that solution bringing in that data, you just know where is the data, Where is the answer? Now I get to work with, I've worked for several years with the German center for your Degenerative Disease Research and I was teasing their director dr nakata. I said, you know, in a couple of years when you're getting that Nobel prize for medicine because you cracked Alzheimer's I want you to tell me how long was the answer hiding in plain sight because it was segregated across disciplines across geography and it was there. But we just didn't have that ability to view across the breath of the information and in a time that matters. And I think so much about what we're trying to do with the lab is that that's that reasoning moreover, more information, gaining insights in the time that matters and then it's all about action and that is driving that insight into the world regardless of whether it has to land in an exa scale supercomputer or tiny little edge device, we want today's application development teams to feel that degree of freedom to range over all of those that infrastructure and all of that data. >>You know, you bring up a great call out there. I want to just highlight that cause I thought that was awesome. The future breakthroughs are hiding in plain sight. It's the access to the people and the talent to solve the problems and the data that's stuck in the silos. You bring those together, you make that seamless and frictionless, then magic happens. That's that's really what we're talking about in this new world, isn't it? >>Absolutely, yeah. And it's one of those things that sometimes my kids as you know, why do you come in every day? And for me it is exactly that I think so many of the challenges we have are actually solvable if the right people knew the right information at the right time and that we all have that not again, not trust, but that proof that confidence, that measurable conference back to the instruments that that HP was always famous for. It was that precision and they all had that calibration tag. So you could measure your confidence in an HP instrument and the same. We want people to measure their confidence when data is flowing through Hewlett Packard Enterprise infrastructure. >>It's interesting to bring up the legacy because instrumentation network together, connecting to business systems. Hey, that sounds like the cloud observe ability, modern applications, instant action and actionable insights. I mean that's really the the same almost exact formula. >>Yeah, For me that's that, that the constant through line from the garage to right now is that ability to handle and connect people to the information that they need. >>Great, great to chat. You're always an inspiration and we could go for another hour talking about extra scale, green leg, all the other cool things going on at H P E. I got to ask you the final question, what are you most excited about for h B and his future and how and how can folks learn more to discover and what should they focus on? >>Uh so I think for me um what I love is that I imagine that world where the data you know today is out there at the edge and you know we have our Aruba team, we have our green Lake team, we have are consistent, you know, our core enterprise infrastructure business and now we also have all the way up through X scale compute when I think of that thriving business, that ability to bring in massive data analytics, machine learning and Ai and then stimulation and modeling. That's really what whether you're a scientist and engineer or an artist, you want to have that intersectionality. And I think we actually have this incredible, diverse set of resources to bring to bear to those problems that will span from edge to cloud, back to core and then to exit scale. So that's what really, that's why I find so exciting is all of the great uh innovators that we get to work with and the markets we get to participate in. And then for me it's also the fact it's all happening at Hewlett Packard Enterprise, which means we have a purpose. You know, if you ask, you know, when they did ask Dave Packer, Dave, why hp? And he said in 1960, we come together as a company because we can do something we could not do by ourselves and we make a contribution to society and I dare anyone to spend more than a couple of minutes with Antonio Neary and he won't remind you. And this is whether it is here to discover or in the halls at labs remind me our purpose, that Hewlett Packard Enterprise is to advance the way that people live and work. And for me that's that direct connection. So it's, it's the technology and then the purpose and that's really what I find so exciting about HPV. >>That's a great call out, Antonio deserves props. I love talking with him, he's the true Bill and Dave Bill. Hewlett Dave package spirit And I'll say that I've talked with him and one of the things that resident to me and resonates well is the citizenship and be interesting to see if Bill and Dave were alive today, that now it's a global citizenship. This is a huge part of the culture and I know it's still alive there at H P E. So, great call out there and props to Antonio and yourself and the team. Congratulations. Thanks for spending the time, appreciate it. >>Thank you john it's great to be with you again. >>Okay. Global labs. Global opportunities, radical. Rethinking this is what's happening within HP. Hewlett Packard Labs, Great, great contribution there from Kirk, have them on the cube and always fun to talk so much, so much to digest there. It's awesome. I'm john Kerry with the cube. Thanks for watching. >>Mm >>mhm Yeah.

>>from the cube studios in Palo alto in boston connecting with thought leaders all around the world. This is a cute conversation. >>Welcome to the cubes coverage of HP discoverer 2021. I'm lisa martin Janice Zenga's joins me next. The vice president of innovation for social impact in H. P. S. Office of the C T. O Janice. Welcome to the cube. Hi lisa. Great to be here. So let's talk about this. You lead H. P. S. Tech for good program. I always love talking about programs like this. Talk to me about that industry tech academia government partnering to solve key challenges that society is facing and crack that for us. Yeah. So so >>we we um are really proud to be able to look at big challenges in the world and look where our strengths, where our innovations are emerging technologies and our employee expertise could actually contribute to a problem. And so >>we began >>a program uh to actually pick some projects particularly in food systems, world hunger and Health Systems, where we thought some of our technologies could really be impactful. And so >>we have been working with a number of >>clients and partners to actually uh work on ai contributions, high performance compute contributions um and uh and a contribution around this notion of data spaces that we're talking about all of these emerged through um complex interactions around social, good engagement. >>So the concept you mentioned, data space is the concept of data spaces isn't new but do explain that. Give us an overview Janice for those folks that might not be familiar with what it is. >>So so the notion of data spaces is to connect data producers to data consumers. And so um in the past um you know connecting producers and consumers has really been limited about, you know, where is your data located? Um Do you have access to the right data? Um Is the data a good quality set of data? What's the providence of that data? What's the quality of it? And is it trustworthy? And so um >>our >>concept of data spaces is actually trying to address all of those um notions with with a new approach >>so collecting ensuring data isn't anything new. But of course what we talk about every day on this program is the volume of data in that context. What are some of the challenges that you're seeing with clients and how can you help them eliminate those challenges and be able to make data driven decisions? >>So um the first challenge is finding the data. And uh there is a big challenge. I mean there's new roles emerging called data hunters and a great amount of time being spent by data scientists just trying to find sources of data. And that's a big challenge. And then when you find this data, is it in the right format and how expensive is it to move the data so that you could have it in a place where it can actually be analyzed. So, um, so what we're working on recognizing that there is a vast amount of data at the edge, a vast amount of data that's probably never going to move from the edge and from those locations. Um but what we're trying to do is recognize that and actually work to bring the algorithms and the analytics to the data and to work with making sure that data is accessible >>and can be >>understood and >>and processed uh in a consistent way. And >>today there is um a lot >>of silos in in place around uh where data >>exists. And uh and so our approach here is to kind of address is from an open source community perspective to build uh and and provide >>a metadata layer, >>standard of all standards. Kind of a super metadata layer for a non technical way to represent that. And and then to use that to help um connect to uh analytics platforms, both citizen users. Um, you know, subject matter experts who may not be data scientists as well as the data scientists. So actually being able to connect a broader set of users into data analytics that are currently available and have the knowledge to be able to get information and insights out of that data. >>So democratizing that access to data. One of the things I'm curious about what you've seen is that's a cultural shift. You talked about some of the new rules. Data hunters and people get very sort of territorial about that. How I'm just curious what are some of the things that you've seen that where HP and data spaces have been able to help companies to be able to democratize that access and also kind of transform their culture >>Well. So um a few >>things. First of all, there has >>to be a strong motivation >>for someone to share data and in order for them to feel safe and sharing that data. Um you know there has to be security and trust established and most data producers want to control who gets to see their data and under what conditions there needs to be governance of data as well. So those are important aspects that have to be in place. Our approach is to kind of build in exchange for that so that um data consumers understand the conditions in which they can access and use the data um And and also potentially contribute back the new datasets that they're creating through their analytics back into a catalogue being a provisioning of data. This improving kind of the standardization and the simplicity Of how data gets exchanged today. In effect allows a greater democratization of access of data so so that you don't have to be a data scientist. I mean data scientist today can spend 7-8 months actually getting their data that they're going to use um into a format that they can they can actually process. And we think that that's inefficient. We think there's a lot that can be done. Um The other challenge around this is that oftentimes data is multi entity. Even inside of a company, you can find data, you >>know, in different departments and different >>businesses. Um >>But even when you think beyond a >>company, if you think about entities that are that are, you know globally >>distributed um >>and maybe multi, you know, multi entity, there are new challenges about how data can come together from those sources and still be of the right providence and be understood to be trustworthy. >>Well, one of the things that I think one of the many things I think we've learned during the last year is that the, the need and access for real time data has been a critical factor in helping businesses pivot and survive versus those that that might not. So what are you seeing in terms of like you said, data scientist spending so much time getting access to clean data, the opportunities to miss, you know, opportunities for new products and services and to and to meet customer demand in new ways to talk to me about how data spaces can facilitate that faster real time access. >>Right? So, so by having an exchange that can be implemented inside of an enterprise or across enterprises, we actually think it allows some of that kind of pre work to be done, allows that cataloging and provisions. So you can come to uh come to a place, it's a place where an exchange can occur and actually be able to, you know, um get more ready >>access to the data. You don't have to >>necessarily go through a cleansing process and through a deep investigation on providence and then, you know, oftentimes uh you learn as you process data about new data or the data sets change. Right? So, so can there be improvements around keeping those ml algorithms current and helping you that in a very efficient way without having to rerun and rewrite code and rerun your algorithms um every single time. So we think there's a lot of improvement that can be done there as well. >>So let's look at, did a great job of explaining data space is the opportunity, the challenges that we've seen the opportunities. But let us help the audience understand what makes what HPV is doing with data spaces different, unique. What are some of the differentiators? There? >>A few things. One is we're approaching this from an open source approach, so we expect to be able to contribute back to the open source communities and allow for a greater ecosystem to develop around these solutions and that will enable greater sharing and trustworthy sharing. The second thing is security, we intend to apply a great security layer into this that allows data to be trusted um and then the governance capabilities, so being able to use things like our data fabric to actually help support um the governance that producers and consumers want to have uh is also important. And then finally being able to work multi cloud across um, on prem and in the cloud >>is a great >>advantage. So you don't get vendor lock in, you'll be able to be able to kind of minimize your data egress because >>maybe you're not gonna be doing data egress out of the cloud >>and instead you'll be you'll be able to process your data right where it's at without having to pay for that movement. >>And I imagine that would facilitate that speed of real time that I mentioned a minute ago. >>That's right, That's right. >>So let's now look at HP data spaces compared to data marketplace. Give me the compare and contrast with respect to those two. So, data >>marketplaces are typically very siloed and very specific to a sector or an industry today, um, and they're they're typically built on their own platforms and to end, they're not always open by design. Um so uh we expect to be able to support multiple data data marketplaces through a plug in into the data spaces um platform that that we build and that will allow greater connectivity and greater access to many different marketplaces. Um and so the data spaces is not intended to be siloed by industry or narrowly kind of focused, >>so helping to remove those silos, which we also, another thing that we talk about, what are some, I'm just curious some of the feedback from the open source community about what you're doing here building on this open foundation. >>So it's um it's actually been very positive. So the very first thing we did was because of our work as I start at the top of the conversation in agriculture, which is a great, a great example of where there's immense amounts of data that is not well standardized, are structured in a way that can be used towards addressing things like world hunger and some of the food supply and food system challenges. We have we uh in working through this >>kind of distilled some >>of the problems that to being this lack of access to data. And so one of the reasons we explored was like why is there this lack of use of data and lack of access to data? And it came down to not being able to access the data where it's generated and not being able to actually share it broadly across entities. And so, um so what we did is we joined the Linux Foundation has a new open source community called Ag stack and we are a founding company uh as part of that new community and we have shared the concepts around data spaces and the metadata layer standardisation that we've envisioned uh into the community and that's just getting kicked off. But it's also a great first step for us um to kind of build an open source community around it. >>Excellent. Sounds like you said positive feedback. If we crack open the hood of data spaces, what are some of the technologies that we see underneath that are making it and its evolution possible? >>Right? So um multi cloud uh across uh data, you know, support um edge processing um data fabric um Israel's solution as well, so being able to kind of move data and then of course, kind of a key layer. This is this notion of a metadata layer, standard on top >>of metadata layer standards. >>And what is that going to allow in terms of connecting the data consumers with the data producers? >>It's going to make it easier, it's going to make it faster, it's going to minimize costs. Uh it's gonna allow for a quality exchange with more information for consumers to have that trust and most importantly the security. Um and it will also create kind of motivation, kind of give and take because exchange has to be equitable for producers and consumers to both be at the >>table. That's a great point about about the being equitable. So this whole initiative that we've been talking about is coming out of the Office of the CTO at HP where we talked about. So the focus is on Uh projects that are emerging not yet on the road map. So what can we expect, what can your audience expect in the next 12-18 months? >>So our approach in the Office of the CTO is to take emerging technologies and ideas and actually bring them into kind of what we would call advanced development stages. So we do proof of concepts, we do a lot of piloting, we worked with customers and clients directly to kind of tune and test commercialization possibilities uh and value of a solution that we're evolving and to kind of get it ready for market if it makes sense to do that. And so We have proof of concepts with the dozens of customers right now in this topic area and more that want to join in and get involved in having access to it as well. Um so I would say most of the work we do in the coming 12 months will be driven by what these proof of concepts with these clients actually uncovered for us. Um and so we know first and foremost we're working with, you know, a large financial services company, we're looking we're working on the agricultural front with a number of important customers that are testing kind of a multi entity data sharing aspects. Were working also with the health care industry client, which is looking at extreme sets of large data that are kind of unanticipated datasets, you would normally think that would be important for disease prediction. And so all of those different kind of use cases are helping us kind of think about um, you know, which features are most important and by when I can tell you the security, the trustworthiness, the data provenance, the data governance are essential elements that are going to have to be there. >>I think those are essential elements that in any industry, especially that security front. >>Yes, very much so. >>So. In terms of the event at hp, what are some of the things that the audience is going to be able to to learn and glean about? Data sources, data spaces? >>So we've had a kind of a great three days um first starting out with Antonio neary and and and F. I. S to talk about kind of the the insight, the age of insights and and how data is actually becoming the currency of the future if you will. And so that we started that way. And then on day two we had a panel of some of our clients talking about in their particular industry, what's happening with data. So you start to see the kind of um sharing out of uh requirements and how urgent these requirements are growing. Uh And then on day three we actually go into more technology. So you'll see there. We have a number of demos and sessions Uh one specifically around agriculture use case, another around health care use case as well. And then we go into a little bit more detail around the data spaces concept in the keynote for day three. >>So action packed three days Janice. Thank you so much for joining me. Talking to us about data space is what you guys are doing for social impact out of h p. S. Office of the C t. O. We appreciate your time. >>Thank you lisa >>for Janice. Thank yous. I'm lisa martin. You're watching the cubes coverage of HP discover 2021 mm.

>>approximately two years after HP split into two separate companies, antonioni Ranieri was named president and Ceo of Hewlett Packard Enterprise. Under his tenure, the company has streamlined its operations, sharpened his priorities, simplified the product portfolio and strategically aligned its human capital with key growth initiatives. He's made a number of smaller but high leverage acquisitions and return the company to growth while affecting a massive company wide pivot to an as a service model. Welcome back to HPD discovered 2021. This is Dave Volonte for the cube and it's my pleasure to welcome back Antonio. Neary to the program Antonio it's been a while. Great to see you again. >>Dave Thanks for having me. >>That's really our pleasure. I was just gonna start off with >>the big picture. >>Let's talk about trends. You're a trend spotter. What do you see today? Everybody talks about digital transformation. We had to force marks to digital last year now it's really come into focus. But what are the big trends that you're seeing that are affecting your customers transformations? >>Okay. I mean obviously we have been talking about digital transformation for some time uh in our view is no longer a priority is a strategic imperative. And through the last 15 months or so since we have been going through the pandemic we have seen that accelerated to a level we haven't never seen before. And so what's going on is that we live in a digital economy and through the pandemic now we are more connected than ever. We are much more distributed than ever before and an enormous amount of data is being created and that data has tremendous value. And so what we see in our customers need more connectivity, they need a platform from the edge to the cloud to manage all the data and most important they need to move faster and extracting that inside that value from the data and this is where HP is uniquely positioned to deliver against those experiences the way we haven't imagined before. >>Yeah, we're gonna dig into that now, of course, you and I have been talking about data and how much data for decades, but I feel like we're gonna look back at, you know, in 2030 and say, Wow, we never, we're not gonna do anything like that. So we're really living in a data centric era as the curves are going exponential. What do you see? How do you see customers handling this? How are they thinking about the opportunities? >>Well, I think, you know, customer realized now that they need to move faster, they need to absolutely be uh much more agile and everything. They do. They need to deploy a cloud experience for all the war clothes and data that they manage and they need to deliver business outcomes to stay ahead of the competition. And so we believe technology now plays even a bigger role and every industry is a technology industry in many ways. Every company right, is a technology company, whether your health care, your manufacturer, your transportation company, you are an education, everybody needs more. It no less I. T. But at the same time they want the way they want to consumer Dave is very different than ever before, right? They want an elastic consumption model and they want to be able to scale up and down based on the needs of their enterprise. But if you recall three years ago I knew and I had this conversation, I predicted that enterprise of the future will be edge centric cloud enable and data driven. The edge is the next frontier. We said in 2018 and think about it, you know, people now are working remotely and that age now is much more distribute than we imagined before. Cloud is no longer a destination, it is an experience for all your apps and data, but now we are entering what we call the edge of insight which is all about that data driven approach and this is where all three have to come together in ways that customer did envision before and that's why they need help. >>So I see that I see the definition of cloud changing, it's no longer a set of remote services, you know, somewhere up there in the cloud, it's expanding on prem cross clouds, you mentioned the Edge and so that brings complexity. Every every company is a technology company but they may not be great at technology. So it seems that there are some challenges around there, partly my senses, some of some of what you're trying to do is simplify that for your customers. But what are the challenges that your customers are asking you to solve? >>Well the first they want a consistent and seamless experience, whatever that application and data lives. And so um you know for them you know they want to move away from running I. T. to innovate in our 90 and then obviously they need to move much faster. As I said earlier about this data driven approaches. So they need help because obviously they need to digitize every every aspect of the company but at the same time they need to do it in a much more cost effective way. So they're asking for subject matter expertise on process engineering. They're asking for the fighting the right mix of hybrid experiences from the edge to cloud and they need to move much faster as scale in deploying technologies like Ai deep learning and machine learning. Hewlett Packard Enterprise uh is extremely well positioned because we have been building an age to cloud platform where you provide connectivity where you bring computing and storage uh in a soft of the fine scalable way that you can consume as a service. And so we have great capabilities without HP Point next technology services and advice and run inside. But we have a portfolio with HP Green Lake, our cloud services, the cloud that comes to you that are addressing the most critical data driven warlords. >>Probably about 24 months ago you announced that HP was, was going to basically go all in on as a service and get there by by 2022 for all your solutions. I gotta get, I gotta say you've done a good job communicating the Wall Street, I think. I think culturally you've really done a good job of emphasizing that to your, to the workforce. Uh, but but how should we measure the progress that you've made toward that goal? How our customers responding? I know how the markets responding, you know, three or four year big competitors have now announced. But how should we measure, you know, how you're tracking to that goal? >>Well, I think, you know, the fact that our competitors are entering the other service market is a validation that our vision was right. And that's that's that's good because in the end, you know, it tells us we are on the right track. However, we have to move much faster than than ever before. And that's why we constantly looking for ways to go further and faster. You're right. The court of this is a cultural transformation. Engineering wise, once you step, once you state the North Star, we need to learn our internal processes to think cloud first and data first versus infrastructure. And we have made great progress. The way we measure ourselves. Dave is very simple is by giving a consistent and transparent report on our pivot in that financial aspect of it, which is what we call the annualized revenue run rate, Which we have been disclosed enough for more than a year and a half. And this past quarter grew 30% year over year. So we are on track to deliver at 30 to 40% cake or that we committed two years ago And this business going to triple more than uh more than one year from now. So it's gonna be three times as bigger as we enter 2022 and 2023. But in the end it's all about the experience you deliver and that's why architecturally uh while we made great progress. I know there is way more work to be done, but I'm really excited because what we just announced here this week is just simply remarkable. And you will see more as we become more a cloud operating driven company in the next month and years to come. >>I want to ask you kind of a personal question. I mean, COVID-19 has sharpened our sensitivity and empathy to a lot of different things. And I think ceos in your position of a large tech company or any large company, they really can't just give lip service to things like E. S. G. Or or ethical uh digital transformation, which is something that you've talked about in other words, making sure that it's inclusive. Everybody is able to participate in this economy and not get left behind. What does this mean to you personally? >>Well, they remember I'm in a privileged position, right? Leading a company like Hewlett Packard Enterprise that has Hewlett and Packard on the brand is an honor, but it's also a big responsibility. Let's remember what this company stands for and what our purpose is, which is to advance the way people live and work. And in that we have to be able to create a more equitable society and use this technology to solve some of the biggest societal challenge you have been facing Last 18 months has been really hard on a number of dimensions, not just for the business but for their communities. Uh, we saw disruption, we saw hardships on the financial side, we saw acts of violence and hatred. Those are completely unacceptable. But if we work together, we can use these technologies to bring the community together and to make it equitable. And that's one is one of my passion because as we move into this digital economy, I keep saying that connecting people is the first step and if you are not connected you're not going to participate. Therefore we cannot afford to create a digital economy for only few. And this is why connectivity has to become an essential service, not different than water and electricity. And that's why I have passion and invest my own personal time working with entities like World Economic Forum, educating our government, which is very important because both the public sector and the private sector have to come together. And then from the technology standpoint, we have to architect these things. They are commercially accessible and viable to everyone. And so it's uh it's I will say that it's not just my mission. Uh this is top of mind for many of my colleagues ceos that talked all the time and you can see of movement, but at the same time it's good for business because shareholders now want to invest in companies that take care about this. How we make, not just a world more inclusive and equitable, but also how we make a more sustainable and we with our technologies we can make the world way more sustainable with circular economy, power, efficiency and so forth. So a lot of work to be done dave but I'm encouraged by the progress but we need to do way way more. >>Thank you for that Antonio I want to ask you about the future and I want to ask you a couple of different angles. So I want to start with the edge. So it seems to me that you're you're building this vision of what I call a layer that abstracts the underlying complexity of the whether it's the public cloud across clouds on prem and and and the edge And it's your job to simplify that. So I as the customer can focus on more strategic initiatives and that's clearly the vision that you guys are setting forth on. My question is is how far do you go on the edge? In other words, it seems to me that Aruba for example, for example, awesome acquisition can go really, really deep into the far edge. Maybe other parts of your portfolio, you're kind of more looking at horizontal. How should we think about HP es positioning and participation in that edge opportunity? >>Well, we believe we are becoming one of the merger leaders at the intelligent edge. Right. These edges becoming more intelligent. We live in a hyper connected world and that will continue to grow at an exponential pace. Right? So today we we might have billions of people and devices pursue. We're entering trillions of things that will be connected to the network. Uh, so you need a platform to be able to do with the scale. So there is a horizontal view of that to create these vertical experiences which are industry driven. Right? So one thing is to deliver a vertical experience in healthcare versus manufacturer transportation. And so we take a really far dave I mean, to the point that we just, you know, put into space 256 miles above the earth, a supercomputer that tells you we take a really far, but in the end it's about acting where the data is created and bringing that knowledge and that inside to the people who can make a difference real time as much as possible. And that's why I start by connecting things by bringing a cloud experience to that data wherever it lives because it's cheaper and it's where more economical and obviously there is aspects of latest in security and compliance that you have to deal with it and then ultimately accelerate that inside into some sort of outcome and we have many, many use cases were driving today and Aruba is the platform by the way, which we have been using now to extend from the edge all the way to the core into the cloud business and that's why you HP has unique set of assets to deliver against that opportunity. >>Yes, I want to talk about some of the weapons you have in your arsenal. You know, some people talk about a week and we have to win the architectural battle for hybrid cloud. I've heard that statement made, certainly HPV is in that balance is not a zero sum game, but but you're a player there. And so when I when I look at as a service, great, you're making progress there. But I feel like there's more, there's there's architecture there, you're making acquisitions, you're building out as moral, which is kind of an interesting data platform. Uh, and so I want to ask you, so how you see the architecture emerging and where H. P. S sort of value add i. P. Is your big player and compute you've got actually you've got chops and memory disaggregate asian, you've done custom silicon over the years. How how should we think about your contribution to the next decade of innovation? >>Well, I think it's gonna come different layers of what we call the stock, right? Obviously, uh, we have been known for an infrastructure company, but the reality is what customers are looking for Our integrated solutions that are optimized for the given workload or application. So they don't have to spend time bringing things together. Right? And and spend weeks sometimes months when they can do it in just in a matter of minutes a day so they can move forward innovative or 90. And so we we are really focused on that connectivity as the first step. And Aruba give us an enormous rich uh through the cloud provisioning of a port or a wifi or a one. As you know, as we move to more cloud native applications. Much of the traffic through the connectivity will go into the internet, not through the traditional fixed networks. And that's what we did acquisitions like Silver Peak because now we can connect all your ages and all your clouds in an autonomous software defined way as you go to the other spectrum, right. We talk about what load optimization and uh for us H. P. S. My role is the recipe by which we bring the infrastructure and the software in through that integrated solution that can run autonomously that eventually can consume as a service. And that's why we made the introduction here of HP Green like lighthouse which is actually I fully optimised stack the with the push of a bottom from HP Green Lake cloud platform we can deploy whatever that that is required and then be able to Federated so we can also address other aspects like disaster recovery and be able to share all the knowledge real time. So I'm learning is another thing that people don't understand. I mean if you think about it. So I'm learning is a distributed Ai learning uh ecosystem and think about what we did with the D. C. Any in order to find cures for Alzheimer's or dementia. But swam learning is gonna be the next platform sitting on this age to cloud architecture so that instead of people worrying about sharing data, what we're doing is actually sharing insights And be able to learn to these millions of data points that they can connect with each other in a secure way. Security is another example, right? So today on an average takes 28 days to find a bridge in your enterprise with project Aurora, which we're gonna make available at the end of the year, by the end of the year. We actually can address zero day attacks within seconds. And then we're work in other areas like disaster recovery when you get attacked. Think about the ransom ramp somewhere that we have seen in the last few weeks, right? You know, God forbid you have to pay for it. But at the same time, recovery takes days and weeks. Sometimes we are working on technology to do it within 23 seconds. So this is where HP can place across all spectrums of the stack. And at the same time, of course, people expect us to innovate in infrastructural layer. That's why we also partnered with companies like Intel, we're with the push of a bottle. If you need more capacity of the court, you don't have to order anything, just push the bottle. We make more calls available so that that will load can perform and when you don't need to shut it off so you don't have to pay for it. And last finalist, you know, I will say for us is all about the consumption availability of our solutions And that's what I said, you know, in 2019 we will make available everything as a service by 2022. You know, we have to say as you know, there is no need to build the church for easter sunday when you can rent it for that day. The point here is to grow elastically and the fact that you don't need to move the data is already a cost savings because cost of aggression data back and forth is enormous and customers also don't want to be locked in. So we have an open approach and we have a through age to cloud architecture and we are focusing on what is most valuable aspect for the customer, which is ultimately the data. >>Thank you for that. One of the other things I wanted to ask you about, and again, another weapon in your arsenal is you mentioned uh supercomputing before up in space where we're on the cusp of exa scale and that's the importance of high performance computing. You know, it used to be viewed as just a niche. I've had some great conversations with Dr go about this, but that really is the big data platform, if you will. Uh can I wonder if you could talk a little bit about how that fits into the future. Your expertise in HPC, you're obviously a leader in that space. What's the fit with this new vision? You're laying out? >>Well, HPC, high performance computer in memory computer are the backbone to be able to manage large data sets at massive scale. Um and, you know, deployed technologies like deep learning or artificial intelligence for this massive amount of data. If we talked about the explosion of data all around us and uh, you know, and the algorithms and the parameters to be able to extract inside from the day is getting way more complex. And so the ability to co locate data and computed a massive scale is becoming a necessity, whether it's in academia, whether it's in the government obviously to protect your, your most valuable assets or whether it is in the traditional enterprise. But that's why with the acquisition of Cray, S. G. I. And our organic business, we are absolutely the undisputed leader to provide the level of capabilities. And that's why we are going to build five of the top six exa scale systems, which is basically be able to process they billion billion, meaning billion square transactions per second. Can you imagine what you can do with that? Right. What type of problems you can go solve climate problems? Right. Um you know, obviously be able to put someone back into the moon and eventually in mars you know, the first step to put that supercomputer as an edge computer into the international space station. It's about being able to process data from the images that take from the ice caps of the, of the earth to understand climate changes. But eventually, if you want to put somebody in in into the Marks planet, you have to be able to communicate with those astronauts as they go and you know, you can't afford the latency. Right? So this is where the type of problems we are really focused on. But HPC is something that we are absolutely uh, super committed. And it's something that honestly we have the full stack from silicon to software to the system performance that nobody else has in the industry. >>Well, I think it's a real tailwind for you because the industry is moving that direction. Everybody talks about the data and workloads are shifting. We used to be uh, I got LTP and I got reporting. Now you look at the workloads, there's so much diversity. So I'll give you the last word. What what really is the most exciting to you about the future of HPV? >>Well, I'm excited about the innovation, will bring it to the market and honestly, as the Ceo, I care about the culture of the company. For me, the last almost 3.5 years have been truly remarkable. As you said at the beginning, we are transforming every aspect of this company. When I became CEO, I had three priorities for myself. One is our customers and partners. That's why we do these events right to communicate, communicate, communicate. Uh they are our North Star, that's why we exist. Uh, second is our innovation right? We compete to win with the best innovation, solving the most complex problems in a sustainable and equitable way. And third is the culture of the company, which are the core is how we do things in our Team members and employees. You know, I represent my colleagues here, the 60,000 strong team members that have incredible passion for our customers and to make a contribution every single day. And so for me, I'm very optimistic about what we see the recovery of the economy and the possibilities of technology. But ultimately, you know, we have to work together hand in hand. Uh and I believe this company now is absolutely on the right track to not just be relevant, but really to make a difference. And remember that in the end we we have to be a force for good. And let's not forget that while we do all of this, we have some farm with technology. We have to also help some uh to address some of the challenges we have seen in the last 18 months. An H. P. E is a whole different company, uh, that you knew 3.5 years ago. >>And as you said, it's, it's knowledge is the right thing to do. It's good. It's good for business Antonio. Neary. Thanks so much for coming back to the cube. Is always a pleasure to see you. >>Thanks for having me Dave >>and thank you for watching this version of HP discover 2021 on the cube. This is David want to keep it right there for more great coverage. >>Mm

(upbeat music) >> Hi everybody, this is Dave Volante. And with me is Sandeep Singh, he is the vice president of Storage Marketing at Hewlett Packard Enterprise. And we're going to riff on some of the trends in the industry, what we're seeing. And we got a little treat for you. Sandeep, great to see you man. >> Dave, it's a pleasure to be here. >> You and I've known each other for a long time. We've had some great discussions, some debates, some intriguing mind benders. What are you seeing out there in Storage? So much has changed. What are the key trends you're seeing and let's get into it. >> Yeah, across the board, as you said, so much has changed. When you reflect back at the underlying transformation that's taken place with data, cloud and AI across the board. First of all, for our customers they're seeing this massive data explosion that literally now spans edge to core to cloud. They're also seeing a diversity of the application workloads across the board. And the emphasis that it's placing is on the complexity that underlies overall infrastructure and data management. Across the board, we're hearing a lot from customers about just the underlying infrastructure complexity and the infrastructure sprawl. And then the second element of that is really extending into the complexity of data management. >> So it's interesting you're talking about data management. You remember you and I, we were in Andover. It was probably like five years ago and all we were talking about was media. Flash this and flash that, and at the time that was kind of the hot storage topic. Well, flash came in addressing some of the mics that we historically talked about it. Now the problem statement is really kind of quote unquote metaphorically moving up the stack if you will, you mentioned management but let's dig into that a little bit. I mean, what is management? I mean, a lot of people that means different things to different people. You talk to a database person or a backup person. How do you look at management? What does that mean to you? >> Yeah, Dave, you mentioned that the flash came in and it actually accelerated the overall speed and latency that storage was delivering to the application workloads. But fundamentally when you look back at storage over a couple of decades the underlying way of how you're managing storage hasn't fundamentally changed. There's still an incredible amount of complexity for IT. It's still a manual admin driven experience for customers. And what that's translating to is more often than not IT is in the world of firefighting and it's leaves them unable to help with them more strategic projects to innovate for the business. And basically IT has that pressure point of moving beyond that and helping bring greater levels of agility that line of business owners are asking for and to be able to deliver on more of the strategic projects. So that's one element of it. The second element that we're hearing from customers about is as more and more data just continues to explode from edge to core to cloud. And as basically the infrastructure has grown from just being on-Prem to being at the Edge to being in the cloud. Now that complexity is expanding from just being on-Prem to across multiple different clouds. So when you look across the date data life cycle how do you store it? How do you secure it? How do you basically protect it and archive it and analyze that data. That end to end life cycle management of data today resides on just a fragmented set of overall infrastructure and tools and processes and administrative boundaries. That's creating a massive challenge for customers. And the impact of that ultimately is essentially comes at a cost to agility, to innovation and ultimately business risk. >> Yeah, so we've seen obviously the cloud has addressed a lot of these problems but the problem is the cloud is in the cloud and much of my stuff, most of my stuff, isn't in the cloud. So I have all these other workloads that are either on-Prem and now you've got this emerging Edge. And so I wonder if we could just talk a little vision here for a minute. I mean what I've been envisioning is this abstraction layer that cuts across all weather. It doesn't really matter where it is. If it's on-Prem, if it's across cloud, if it's in the cloud, on the edge, we could talk about what that all means. But if customers that I talked to they're sort of done with the complexity of that underlying infrastructure. They want technology to take care of that. They want automation they want AI brought in to that equation. And it seems like we're from the cusp of the decade where that might happen. What's your take? >> Well, yeah, certainly I mentioned that data cloud and AI are really the disruptive forces, better propelling. The digital transformation for customers. Cloud has set the standard for agility and AI driven insights and intelligence are really helping to make the underlying infrastructure invisible and customers are looking for this notion of being able to get that cloud operational agility pretty much everywhere because they're discovering that that's a game changer. And yet a lot of their application workloads and data is on-Prem and is increasingly growing at the edge. So they want same experience to be able to truly bring that agility to wherever their data in absolute. And that's one of the things that we're continuing to hear from customers. >> And this problem is just going to get worse. I mean for decades we marched to the cadence of Moore's Law and everybody's going to forgets about Moore's Law. And say, "Ah, it's dying or whatever." But actually when you look at the processing power that's coming out now, it's more than doubling every two years, quadrupling every two years. So now you've got this capability in your hands and application design minors, storage companies, networking companies. They're going to have all this power to now bring in AI and do things that we've never even imagined before. So it's not about the box and the speeds and feeds of the box. It's really more about this abstraction layer that I was talking about. The management if you will that you were discussing and what we can do in terms of being able to power new workloads in machine intelligence, it's this kind of ubiquitous, call it the cloud but it's expanding pretty much everywhere in every part of our lives even to the edge you think about autonomous vehicles, you think about factories it's actually quite mind boggling where we're headed. >> It is and you touched upon AI. And certainly when you look at infrastructure, for example there's been a ton of complexity in infrastructure management. One of the studies that was done actually by IDC indicated that over 90% of the challenges that arise, for example ultimately down at the storage infrastructure layer that's powering the apps ultimately arises from way above the stack all the way from the server layer on down where even the virtual machine layer. And there, for example, AIOps for infrastructure has become a game changer for customers to be able to bring the power of AI and machine learning and multi-variate analysis to be able to predict and prevent issues. Dave, you also touched upon Edge and across the board. What we're seeing is the Enterprise Edge is becoming that frontier for customer experiences and the opportunity to reimagine customer experiences as well as just the frontier for commerce that's happening. When you look at retail and manufacturing and or financial services. So across the board with the data growth that's happening and this Edge becoming the strategic frontier for delivering the customer experiences how you power your application workloads there and how you deliver that data and protect that data and be able to seamlessly manage that overall infrastructure. As you mentioned abstracted away at a higher level becomes incredibly important for customers. >> So interesting to hear how the conversations changed. I'd like to say, I go back to whatever it was five years ago, we're talking about flash storage class memory, NVMe and those things are still there but your emphasis now you're talking about machine learning, AI, math around deep learning. It's really software is really what you're focusing on these days. >> Very much so. Certainly this notion of software and services that are delivering and unlocking a whole new experience for customers that's really the game changer going forward for customers. And that's what we're focused on. >> Well, I said we had a little surprise for you. So you guys are having an event on May 4th. It's called Unleash The Power of Data. What's that event all about Sandeep? >> Yeah. We are very much excited about our May 4th event. As you mentioned, it's called Unleash The Power of Data. And as most organizations today are data driven and data is at the heart of what they're doing. We're excited to invite everyone to join this event. And through this event we're unveiling a new vision for data that accelerates the data driven transformation from Edge to cloud. This event promises to be a pivotal event and one that IT admins, cloud architects, virtual machine admins, vice presidents, directors of IT and CIO really won't want to mess. Across the board this event is just bringing a new way of articulating the overall problem statement and in market in focused the articulation of the trends that we were just discussing. It's an event that's going to be hosted by a Business and Technology Journalist, Shabani Joshi. It will feature a market in panel with a focus on the crucial role that data is playing in customers digital transformation. It will also include and feature Antonio Neary, CEO of HPE and Tom black, senior vice president and general manager of HPE Storage Business and industry experts including Julia Palmer, research vice president at Gartner. We will unveil game changing HPE innovations that will make it possible for organizations across Edge to cloud to unleash the power of data. >> Sounds like great event. I presume I can go to hpe.com and get information, is it a registered event? How does that all work? Yeah, we invite everyone to visit hpe.com and by visiting there you can click and save the date of May 4th at 8:00 AM Pacific. We invite everyone to join us. We couldn't be more excited to get to this event and be able to share the vision and game-changing HPE innovations. >> Awesome. So I don't have to register, right? I don't have to give up my three children's name and my social security number to attend your event. Is that right? >> No registration required, come by, click on hpe.com. Save the date on your calendar. And we very much look forward to having everyone join us for this event. >> I love it, it's pure content event. I'm not going to get a phone call afterwards saying, "Hey, buy some stuff from me." That could come other channels but so that's good. Thank you for that. Thanks for providing that service to the industry. I'm excited to see what you guys are going to be announcing that day and look Sandeep. I mean, like I said, we've known each other a while. We've seen a lot of trends but the next 10 years it ain't going to look like the last 10 is it? >> It's going to be very different and we couldn't be more excited. >> Well, Sandeep, thanks so much for coming to theCube and riffing with me on the industry and giving us a preview for your event. Good luck with that. And always great to see you. >> Thanks a lot, Dave. Always great to see you as well. >> All right. And thank you everybody. This is Dave Volante for theCube and we'll see you next time. (upbeat music)

>>We are coming out of a year, like none other and organizations of all types of pressing forward with planning for the future now in the realm of it. And really every industry, no single topic is getting as much attention as digital transformation. Every organization and industry defines digital transformation differently based on the outcomes that they're looking for from creating a digital first business models to driving greater operational efficiency or accelerating innovation by extracting better insights from their data, regardless of how they define their next stage of business. They must all pursue a path of infrastructure, hardware, and software modernization with trusted partners that have the technology and expertise to deliver successful outcomes at HPS accelerating next event. On April 21st, we have a really compelling lineup of industry luminaries. Pat Gelsinger is setting a new and bold direction for Intel. John Chambers is now investing in game changing and society changing tech, Dr. >>Lisa SU who's the CEO of AMD. That's a company that completely transformed itself and become a critical technology supplier for compute solutions. And of course, HPS CEO, Antonio Neary. These execs will be sharing their perspectives on what's next in the market. We'll also have HPE leaders and experts providing details on new requirements, being driven by the defining workloads of the digital era and what capabilities and expertise are needed to enable great future outcomes. We'll also hear directly from some of HP's customers that are on their own path to transformation and how they are accelerating next. This is Dave Volante, inviting you to join us on the 21st of April at 11:00 AM. Eastern time, 8:00 AM Pacific and join the conversation. We'll see you there.

>>from around the globe. It's the Cube presenting Cuban cloud brought to you by Silicon angle. Hello. We wanna welcome back to the Cuban cloud where we're talking to CEOs, C. E. O s, chief technology officers and investors. On the future of Cloud with me is Dave Humphrey, who is the managing director and co head of Private Equity North America at Bain Capital. They've welcome to the Cube. First time, I think. >>First time. Yeah, David, thanks very much for having so >>let's get right into it. As an investor, how are you thinking about the evolution of cloud? When you look back at the last decade, you know it's not gonna be the same, uh, in this coming decade, you know, Thio ironic 2020 is has thrown us into, you know, the accelerated digital transformation and cloud. But how do you look at the evolution of cloud from an investment perspective? What's your thesis? >>That's a great question, David. You know, for us, we're focused on investing in technology and really across the economy. And I'd say the cloud is the overarching trends and dynamic in the technology markets. And really, for two reasons, one is a major shift. Of course, that's going on. But the second and frankly, even more interesting one to us is all the growth that the cloud is creating in the technology marketplace. You know the ship. It has been well covered. But five years ago in 2015, by our analysis, two thirds of all computing workloads were done on premises and Onley. Five years later, that's that's flipped. So two thirds of all computing workloads now done done in the cloud. And, of course, that shift. There's a lot of ramifications as an investor. But even more interesting dust is the growth in technology and the usage of technology that the cloud is creating. So over that same period of time, the total number of computing workloads run has increased by 2.6 times just a five year period time, which is really a a dramatic thing. And it makes sense when you think about all the new software applications that could be created, all the data that could be used by new users and new segments, and the real time inside that could be gleaned from that is that growth that really were focused on investing behind a Z. Investors in technology. You >>know, it's interesting you just took share those numbers and you hear a lot of numbers. I I actually think you you know, you your even being conservative. You know, Ginny Rometty used to talk about 80% of workloads or are still on Prem. Andy Jassy it reinvent said that 96% of spending is still on premises. So that was kind of an interesting stat. And I guess the other thing that I would, I would note is it's not just a share shift. It is. It's not just, you know, the cloud eating away it on Prem. We've clearly seen that, but there's also incremental opportunity as well. If you look at snowflake, for example, and adding value on top of, you know across multiple clouds and creating new markets, so there's there's that, you know, double that 12 punch of stealing share from on Prem but also incremental growth, which is probably accelerated as a result of this, you know, compressed digital transformation. So when you look at the Big Three cloud players, I mean roughly speaking, they probably account for $80 billion in total revenue which I guess is a small portion of the overall I t. Market. So it has a a long way to go. But But what's the best way to get good returns from an investment standpoint without getting clobbered by their tendency to sometimes coop some of the best ideas and put them on their primary services? >>Yeah, absolutely. Well, you know, for us, uh, it really comes back to the same fundamental principles we look for in any investment, which is finding a business that solves a really important problem for its customers and does so in a way that's really advantaged vs competition can and do something that other competitors just can't do, whether those be the hyper scale is that you're describing or, you know, other specialized and focused competitors, and then finding a way that we can partner with those companies to help them to accelerate their growth. So surely the growth of the likes of AWS and Microsoft and Google, as you're describing, has been a profound competitive shift, along with the cloud shift that we've all talked about. And those companies, of course, can offer and do things that you past purveyors of computing couldn't. But fundamentally, they're selling and infrastructure layer, and there is room for all sorts of new competitors and new applications that can do something better than anybody else can. So any company that we're looking at, we're asking ourselves the question. Why are they the best ones to do what they're doing? How could they solve the most problem for their customers and do that in a way that's that's Brazilian and we see lots of those opportunities, >>and I wanna I wanna pick your brain about the Nutanix investment. But before we get there, I wonder if you could just talk about Bain Capital in their their history of investment in both cloud and infrastructure software and and how do those investments? How would they performed? And how do they inform your current thesis? >>Yeah, absolutely. So being Capital was started in in the mid eighties, 1984 actually has a spin out of being a company consulting, and the basic premise was that if we're good at advising and supporting businesses, we should partner with them and invest behind them, and if they do well, we'll do well. And, as I said, focusing on these businesses but do something really valuable for their customers in a riel advantaged way, with some discontinuous growth opportunity that's led us to grow a lot. You know, we started out actually in the venture business and grew into the private equity business. But now we invest across all life stages of companies and all over the world. So we're $105 billion in assets that we managed across 10 lines of business on were truly global. So I think we have about 470 investment professionals and 210 of those at this point are located outside the U. S. One of the really interesting things for us in investing in technology broadly and in infrastructure in the cloud more specifically is that we're able to do that all over the world. And we're able to do that across all the different life stages of companies. We have a thriving venture capital business that really we've been in since the origins of being capital has invested across countless cloud and security and infrastructure businesses taken successful companies public like like solar wind sold companies to strategic and grown businesses. You know, in really thriving ways we have a, um, growth mid market growth technology business that we launched last year. Called their Technology Opportunities Fund. They've made a really interesting cloud based investment in a company called the Cloud Gurus Cloud Guru Excuse me? That trains the next generation of I t professionals to be successful in the club on then, of course, in our private equity business, you know where I spend my time. We are highly focused on technology sector and the the impacts of the cloud in that sector. Broadly, we've invested in many infrastructure businesses, scale businesses like BMC software and Rockets software security businesses like blue coat systems and semantic. And of course, for those big businesses they've got both on premises solutions. They've got cloud solutions, and often we're focused on helping them continue to grow and innovate and take their solutions to the cloud. And then, uh, that's taking us to our most recent investment in Nutanix that we're very excited about it. We think it's truly a growth business in a large market that has an opportunity to capitalize on these trends we're talking about. >>I wonder if you could comment on some of the changes that have occurred. You guys have been in the private equity business for a long time. And if you look at what you know, kind of the early days of private equity, it was all you know, even, uh, suck as much cash out of the company is possible. You know, whatever's left over will figure out what to do with it. It it seems like you know, investors have realized Wow, we can actually, if we put a little investment in and do some engineering and some go to market, we can actually get better multiples. And so you've got the kind of rule of 30 35 40 where he made a plus. Growth is kind of the metric. How do you think about that? And look at that evolution. >>Yeah, you know, it's interesting because in many ways, being capital was started as the antithesis to what to what you're describing. So we started again, as as with a strategic lens and a focus on growth and a focus on if we got the long term and the lasting impact of our business is right, that the returns would would follow. And you're right that the market has evolved in that way. I mean, I think some of the some of the dynamics that we've seen has been certainly growth of the private equity business. It's It's become a much larger piece of the, you know, the capital markets than it was certainly 10 years ago in 20 years ago. Also, with that growth comes the globalization, that business all over the world and the specialization. So you certainly see technology focused firms and technology focused funds in a way that you didn't see, uh, 10 years ago, or certainly 20 years ago actually being capital. Interestingly enough, we had a technology focused fund in 1989 called called Being Information Partners. So we've been focused on the sector for a very long time. But you certainly see ah, lot more technology investors, uh, than than you did you know 10 or 20 years ago? >>How are you thinking about valuations? Thes days? I mean, that is good. It's good to be in tech. It's even better to be in the cloud. You know, Service officer, software Cloud. You know if if if you're looking at, you know some of the companies, especially the work from home pivot. But a lot of that appears to be. You know, many people believe it's going to be permanent. How are you feeling about the both public market and private market valuations in that dynamic? >>Yeah, well, you know, it's it's amazing, right? I don't think any of us in March, when the covert crisis was just emerging, would have anticipated that that come November, the markets, and certainly the technology markets would be even more robust and stronger than than they were say in January February. But I think it's a testament to the resilience of the technology on that just how intricate and intertwined technology has become with our daily lives and and how much companies depend on its use. And frankly, it's been the cove environments that an accelerant for many of the ways in which we depend on technology. So witnessed this interview, of course, through through the through the cloud, and you're seeing the way that we operate our business day to day the way cos they're accessing their data and information. It's only further accelerated the need for technology and the importance of that technology to how how businesses operate. So I think you're seeing that reflected in the market values out there. But, you know, frost work. We're focused on businesses that still have that catalytic opportunity ahead that can more than compensate for for the price of entry. >>So let's talk about this massive investment. You guys made a Nutanix 750 million, I guess, is a small piece of your 105 billion, but still a massive investment. How did that opportunity come to you? What was your thinking? You know, behind that that investment and what are you looking for in terms of the go forward plan and growth plan for 2021 really importantly, beyond. >>Yeah, absolutely. Well, we're thrilled to be partnered with and invested in Nutanix. We think is a terrific company. And, you know, our most recent technology investment and private equity business. It really came about through a proactive efforts that we had in in the spring. Um, you know, we've got a team focused on the technology sector, focused across infrastructure and applications, and, uh, internet and digital media businesses and financial technology. And, uh, you know, through those efforts, we were looking for businesses. Um, that we felt had faced some dislocation and their market values associated with the Koven environment that we're facing but that we thought were really attractive. Business is well positioned, had leading solutions and had substantial and discontinuous growth opportunities. And as we looked through that effort, we really felt that Nutanix stood out just as a core leader and in fact, really the innovator and the inventor of the market in which it competes with a substantial market share in position solving a really important problem for its customers with a big growth opportunity ahead. But, um, the stock price had had come down because the business has been undergoing ah transition, and we didn't think that that was fully understood by by the market. And so way saw an opportunity Thio partner with Nutanix to invest money into the business to help to fund its transition and its growth. Yeah, and Thio to be partners along for all the value the business will will continue to create. We think it's a terrific company, and we're excited to be to be invested >>Well, you and I have talked about this that transition, you know, from a traditional, you know, license model to one That's Anania recurring revenue model, which many companies have gone through. You know, Adobe certainly has done it. Tableau successfully did it. Splunk is kind of in the middle of that transition right now and maybe not well understood. You've got companies like like Data Dog that and snowflake again to doing consumption based pricing. So there's a lot of confusion in the marketplace, and I wonder if you could talk about that transition and why it It was attractive to you to actually, you know, place that bet now? >>Yeah, absolutely. And as you say, a number of companies at this point have been through various forms of this shift, from from selling their technology upfront to selling it over time on, we find that the model of selling the technology over time eyes one that could be powerful. It could be aligning for customers as well as for, uh, vendor of the software solutions. And in Nutanix in particular again, we saw all the ingredients that we think make this an opportunity for for the business again, market leading technology that customers love. That is solving really important problem. The technology, because Nutanix had been grown and bootstrapped under the leadership of, uh, you know of zeros when it was built and founded, had been selling its software together with an appliance, you know, often in a, um, upfront sale Andi has been undergoing under their own initiative transition from selling that software with an appliance to a software based model to one that s'more rattle over time. And, you know, we thought that there was the opportunity to continue that to continue that transition and by doing that, to be able to offer mawr growth and mawr innovation that we could bring to our customers Thio continue to fund the shift. So something that frankly was well underway before we invested. Um, you know, as a za business makes this transition from collecting upfront Thio, you know, thio more evenly. Over time, you know, we saw a potentially use for our capital to help to fund that growth. And we're just focused on being a good partner toe help the company keep investing in abating, as as it contains to do that. >>I was talking to somebody other day, David. I told him I was interviewing you, and I was mentioning the Nutanix investment. I said, I'm definitely gonna cover that as part of this. You know, Cuban Cloud program. And they said Hit Nutanix. That's not cloud. I'm like, Wait a minute, What's cloud? So we heard Andy Jassy reinvent talking a lot about hybrid Antonio Neary, right after HP made its earnings last earnings announcement he came on on, said that well, we heard the big Cloud player talk about hybrid, and so the definition is changing. But so how are you looking at the market? Uh, certainly. There's this hyper converged infrastructure, but there's also this software play. There's this cloud play. Help us squint through how you see that >>absolutely so Nutanix, as you alluded to, pioneered the market for hyper converged infrastructure for bringing computing storage networking together. Uh, you know, often in private cloud environments in a way that was really powerful for for customers. Make, of course, continue to be the leaders in that marketplace. But they've continued to innovate and invest in ways that can solve problems for customers and related problems across the hybrid cloud. So combining both the public cloud with, you know, with that private cloud and across multiple public clouds with things like clusters and lots of innovation that business is doing in partnership with the likes of, um, Amazon and Microsoft and others. And so, yeah, we think that New Chance has a powerful role to play in that hyper cloud world in a multi cloud world. And we're excited toe back on them. >>Well, I think to what maybe people don't understand is that not only is Nutanix, you know, compatible with AWS and compatible with azure and G C. P. But it's actually kind of create a nabs traction layer across those those clouds. Now there's two sides of that debate. Some some will say, Well, that that that has Leighton see issues or yes, it reduces complexity. But at the same time, it doesn't give you that fine grained access. That's kind of the A W s narrative customers, you know, want simplicity. And we're seeing, you know, the uptake across clouds. I have a multipart question for you, Dave. So obviously being very strong and strategy I'm curious is toe how how much you get involved in the operational details. I mean, obviously 750 million u got a state there, but what are the 2 to 2 or three major strategic considerations for not just even just Nutanix but cloud and software infrastructure companies. And and how much focus do you put on the operational and one of the priorities There? >>Absolutely. Well, you know, we pride ourselves in being good partners to our businesses and in helping them to grow, not just with our capital, which I think is, of course, important, but also, you know, with our sweat equity and our and our human capital in our partnership that we could do that in lots of ways is fundamentally about, um, you know, supporting our businesses, however, is needed to help them thio grow. We've been investing in the technology sector, as I described for over over 30 years. And so we've built up a set of capabilities around things like helping toe partner with the sales force of our company is helping them toe, you know, think about the you know, the ways in which they they allocate their, uh their research and development and their in their innovation raised in which they, you know, continue Thio do acquisitions toe. You know, further that pipeline, we support our businesses in lots of ways, but you know we're not engineers were not. Developers, of course, were looking for businesses that are fundamentally great. They've got great technology. They solve problems for customers in a way, you know, that we could never replicate. That's what's the amazing but a business like Nutanix and just over a 10 year period of time, it literally has customer satisfaction levels that we haven't seen from any other. Infrastructures offer company that we've had the, you know, the pleasure of diligence ing over the last several years. So what we're focused on is how can we take those great products and offerings that Nutanix has and continue to support them through the further growth and expansion in areas like, um, you know, the further salesforce investment Thio expand into these new areas like clusters that we were talking about and thinking about, you know, things that they could do toe further expand the strategic hold. Um, And so, you know, we have, ah, large team of being capital. A zai mentioned 260 investment professionals in a private equity business alone. About a third of those are just available to our companies to help support them. Uh, you know, with various initiatives and efforts after after we invest. And we'll certainly, of course, make all of those available to new taxes. Well, somebody >>was asking me the other day, You know, what's hyper converged infrastructure? How did that come about? I was explaining what, Back in the day you had. You buy some servers and some storage and you have a network and you sort of have different teams and you put applicant, You figure out all out and put the applications on top, you know, test it, make sure it all works. And then and then the guys at V. C and VM Ware and Cisco and the M. C. They got together and said, Okay, we're gonna bolt together a bunch of different components and, you know, pre tested. Here you go. Here's a Here's a skew. And then what Nutanix did was actually really transformational and saying, Okay, look, we do this through software on DSO. And now that was what, Late, late two thousands. Now we're sort of entering this new era, this next generation of cloud cross clouds. So I wonder how you think about, you know, based on what you were just talking about the whole notion of M and A versus organic. There's a lot of organic development that needs to be done. But perhaps you could you could buy in or in organically through emanate toe, actually get there faster. How do you think about that balance? >>Look, I I think that that was an articulate, by the way explanation of I think that the origins of hyper converged infrastructure. So I enjoyed that very much. But, you know, I think that with any of our businesses and with Nutanix, we're of course, looking at where we trying to get to in several years and one of the best ways to support the business to get there, you know? Of course, they'll, um you know, primarily that will be through or continued organic investment in the company and all the innovation in the product. Um, that they've been doing will the company contemplate acquisitions toe further achieve the development goals and the objectives for solving pain points for customers to get, you know, to the strategic places they're trying to get to, of course. But you know, it all is a part of the package of of What's it a good fit company and its growth object. >>I mean, with the size of your portfolio, I mean your full stack investor, I would say, Is there any part of the so called tech stack that you won't touch that you would actually, you know, not not walk, but run away from, >>uh well, you know, I wouldn't say that we're running away from, you know, anything but the questions that we're asking ourselves. Our is the technology that we're investing in durable, ISAT advantaged and does have a growing role in the world. And, you know, if if we think that those things are true are absolutely, um, thrilled toe invest behind those things. You know, if if there are things that we feel like you, that's that's not the case, um, you know, then then we would tend toe to shy away from those investments. We've certainly found opportunities and businesses that people perceived as one. But you know, we believe to be another >>Well, so let me ask you specifically about about Nutanix. I mean, clearly, they achieved escape velocity. One of the few companies actually from last decade. It was Nutanix pure, not a whole lot of others. That actually, you know, were ableto maintain independence as a as a public company. What do you see is their durability. Uh, they're they're they're in their moat. If you if you will. >>Yeah, absolutely. Well, clearly, we think that it's a very durable and very advantage business. You know, that's that's the investment. Look, we think that Nutanix has been able to offer the best hyper converged infrastructure product on the market bar None. Um, one that has got the best ease of use Eyes is the most nimble and flexible for for customers. And you just see that, you know, recently and customer feedback And also that plays across very heterogeneous architectures in a way that, you know, it's really, really powerful because of that. You know, we think that their best position to be able to leverage that technology as they have been, uh, to continue to play across both public and private hybrid cloud environments. And so we're excited toe to back them and and that journey it really starts from solving and acute customer pain point, you know, better than anybody else can. And, you know, we're looking to to back them toe continue to expand that vision. >>Yeah, well, I've talked to a lot of Nutanix customers over the years, and that is the fundamental value. Proposition is it's really simple, very high, you know, customer satisfaction. So that makes a lot of sense. Well, Dave, thanks very much for coming on the Cube and participating in the Cuban cloud. Really? Appreciate your perspectives. Wish you best of luck. And hopefully we could do this again in the future. Maybe face to face >>now, face to face, maybe something even know. Dave, I really appreciate it's been a pleasure and good luck with with the rest of your interviews. >>All right. Thank you. We keep it right. Everybody from or Cuban Cloud, this is Dave Volonte. We'll be right back.

>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. >>Hello and welcome back to the cubes Virtual coverage of AWS reinvent 2020. Um, John for your host with a cube virtual were not there in person, but we're gonna do it our job with the best remote we possibly can. Where? Wall to wall coverage on the AWS reinvent site as well as on demand on the Cube. Three new 3 65 platform. We got some great power panel analysts here to dig in and discuss Partner Day for a W S what it means for the customer. What it means for the enterprise, the buyer, the people trying to figure out who to buy from and possibly new partners. How can they re engineer and reinvent their company to partner better with Amazon, take advantage of the benefits, but ultimately get more sales? We got Tim Crawford, star Beat Joel and Day Volonte, Friends of the Cube. We all know him on Twitter, You guys, the posse, the Cube policy. Thanks for coming on. I'm sure it's good guys entertaining and we're >>hanging out drinking beer. Oh, my God. That'd be awesome. You guys. >>Great to have you on. I wanted to bring you on because it's unique. Cross section of perspectives. And this isn't This is from the end user perspective. And, Tim, you've been talking about the c x o s for years. You expert in this? Sorry. You're taking more from a cloud perspective. You've seen the under the hood. What's happening? Let's all put it together. If your partner Okay, first question to the group. I'm a partner. Do I win with Amazon, or do I lose with Amazon? First question. >>Yeah, I'll jump in. I'll say, you know, regardless you win, you win with Amazon. I think there's a lot of opportunity for partners with Amazon. Um, you have to pick your battles, though. You have to find the right places where you can carve out a space that isn't too congested but also isn't really kind of fettered with a number of incumbents. And so if you're looking at the enterprise space, I think that there is a ton of potential because, let's face it, >>Amazon >>doesn't have all of the services packaged in a way that the enterprise can consume. And I think that leaves a lot of fertile ground for s eyes and I SVS to jump in and be able to connect those dots so I'd say it's win, win >>start be if you're like a so cohesively onstage. Jackson's coming out talking about China, the chips and data. If you're like a vendor and I s V you're a startup or your company trying to reinvent How do you see Amazon as a partner? >>Yeah, I see Amazon as a big market for me. You know, it increased my sort of tam, if you will. Uh, the one big sort off trend is that the lines between technology providers and service providers are blurred. Actually, it's flipping. I believe it will flip at some time. We will put consume technology from service providers, and they are becoming technology providers. Actually, they're not just being pipe and power kind of cloud. They are purely software, very high sort of highly constructed machinery, if you will. Behind the scenes with software. >>That's >>what Amazon is, uh, big machine. If you are, and you can leverage that and then you can help your customers achieve their business called as a partner. I think's the women and the roll off. Actually, Assize is changing, I believe a size. Well, I thought they were getting slow, sidetracked by the service providers. But now they have to actually change their old the way they they used to get these, you know, shrink wrap software, and then install and configure and all that stuff. Now it's in a cloud >>on >>they have to focus a little more on services, and and some of the s eyes are building tools for multi cloud consumption and all that. So things are changing under under this whole big shift to go out. >>I mean, I think if you're in S I and you're lifting and shifting, you make a few bucks and helping people do that deal with the tech. But I think we're the rial. Money is the business transformation, and you find the technology is there, it's it's another tool in the bag. But if you can change your operating model, that's gonna drive telephone numbers to the bottom line. That's a boardroom discussion, and that's where the real dollars are for s eyes. That's like that's why guys like Accent you're leading leading into the cloud Big time >>e think I think you're absolutely right, David. I think that's that's one aspect that we have to kind of call out is you can be one of those partners that is focused on the transaction and you'll be successful doing that. But you're absolutely right. If you focus on the long game. I think that is just like I said, completely fertile ground. And there are a lot of opportunities because historically Amazon was ah was a Lego parts, uh, type of cloud provider, right? They provided you with the basic building blocks, which is great for Web scale and startups not so good for enterprise. And so now Amazon is starting to put together in package part, so it's more consumable by enterprises. But you still need that help. And as Sarpy just mentioned, you also have to consider that Amazon is not the only aspect that you're gonna be using. You're gonna be using other providers to. And so I think this again is where partners they pick a primary, and then they also bring in the others where appropriate. >>All right, I want to get into this whole riff. I have a cherry chin on day one. Hey, came on the special fireside chat with me and we talked about, um, cloud errors before cloud Amazon. And now I'll call postcode because we're seeing this kind of whole new, you know, in the cloud kind of generation. And so he said, OK, this pre cloud you had Amazon generation, whereas lift and shift. Ah, lot of hybrid And you have everything is in the cloud like a snowflake kind of thing. And he kind of call it the reptiles versus the amphibians you're on. See your inland, your hybrid, and then you're you're in the water. I mean, so So he kind of went on, Took that another level, meaning that. Okay, this is always gonna be hybrid. But there's a unique differentiation for being all in the cloud. You're seeing different patterns. Amazon certainly has an advantage. See, Dev Ops guru, that's just mining the data of their entire platform and saying Okay, Yeah, do this. There's advantages for being in the cloud that aren't available. Hybrid. So amphibian on land and sea hybrid. And then in the cloud. How do you guys see that if you're a partner. You wanna be on the new generation. What's the opportunity to capture value? He has hybrid certainly coexist. But in the new era, >>remember Scott McNealy used to talk about car makers and car dealers. And of course, Sun's gone. But he used to say, We want to be a carmaker. Car dealers. They got big houses and big boats, but we're gonna be a carmaker. Oh, I think it's some similarities here. I mean, there's a lot of money to be made as a as a car dealer. But you see, companies like Dell, H P E. You know, they want to be carmakers. Obviously Google Microsoft. But there are gonna be a lot of successful really big carmakers in this game. >>Yeah, I believe I believe I always call it Amazon Is the makers cloud right, So they are very developer friendly. They were very developer friendly for startups. Uh, a stem said earlier, but now they are very developer, friendly and operations friendly. Now, actually, in a way for enterprises, I believe, and that the that well, the jerry tend to sort of Are you all all in cloud are sitting just in the dry land. Right now, I think every sort off organization is in a different sort off mature, at different maturity level. But I think we're going all going towards a technology consumption as a service. Mostly, I think it will be off Prem. It can be on Prem in future because off age and all that. And on that note, I think EJ will be dominated by Tier one cloud providers like crazy people who think edge will be nominally but telcos and all that. I think they're just, uh, if >>I made Thio, if I may interject for a second for the folks watching, that might not be old enough to know who Scott McNealy is. He's the founder of Sun Microsystems, which was bought by Oracle years ago. Yeah, basically, because many computer, there's a lot of young kids out there that even though Scott McNealy's But remember, >>do your homework, Scott, you have to know who Scott Scott McNealy >>also said, because Bill Gates was dominant. Microsoft owns the tires and the gas to, and they want to own the road. So remember Microsoft was dominating at that time. So, Tim Gas data is that I mean, Amazon might have everything there. >>I was gonna go back to the to the comment. You know, McNeely came out with some really, really good analogies over his tenure. Um, it's son and you know, son had some great successes. But unfortunately, Cloud is not as simplistic as buying a car and having the dealership and the ecosystem of gas and tires. And the rest you have to think about the toll journey. And that journey is incredibly complicated, especially for the enterprise that's coming from legacy footprints, monolithic application stacks and trying to understand how to make that transition. It's almost it's almost, in a way mawr analogous to your used to riding a bike, and now you're gonna operate a semi. And so how do you start to put all of the pieces into place to be able to make that transition? And it's not trivial. You have to figure out how your culture changes, how your processes changes. There are a lot of connected parts. It's not a simple as the ecosystem of tires and gas. We have to think about how that data stream fits in with other data streams where analytics are gonna be done. What about tying back to that system of record that is going to stay on the legacy platform. Oh, and by the way, some of that has to still stay on Prem. It can't move to the cloud yet. So we have this really complicated, diverse environment that we have to manage, and it's only getting more complicated. And I think that's where the opportunity comes in for the size and s visas. Step into that. Understand that journey, understand the transitions. I don't believe that enterprises, at least in the near term, let alone short term, will be all in cloud. I think that that's more of a fantasy than reality. There is a hybrid state that that is going to be transitory for some period of time, and that's where the big opportunity is. >>I think you're right on time. I think just to double down on that point, just to bring that to another level is Dave. Remember back in the days when PCs where the boom many computers with most clients there was just getting started? There was a whole hype cycle on hard drives, right? Hard drives were the thing. Now, if you look out today, there's more. Observe, ability, startups and I could count, right? So to Tim's point, this monolithic breakdown and component izing decomposing, monolithic APs or environments with micro services is complex. So, to me, the thing that I see is that that I could relate to is when I was breaking in in the eighties, you had the mainframes. Is being the youngun I'm like, Okay, mainframes, old monolithic client server is a different paradigm thing. You had, uh, PCs and Internet working. I think all that change is happening so fast right now. It's not like over 10 years to Tim's points, like mainframes to iPhones. It's happening in like three years. Imagine crunching all that complexity and change down to a short window. I think Amazon has kind of brought that. I'm just riffing on that, But >>yeah, you're absolutely right, John. But I think there's another piece and we can use a very specific example to show this. But another piece that we have to look at is we're trying to simplify that environment, and so a good place to simplify that is when we look at server lis and specifically around databases, you know, historically, I had to pick the database architecture that the applications would ride on. Then I have to have the infrastructure underneath and manage that appropriately so that I have both the performance a swell, a security as well as architecture. Er and I have to scale that as needed. Today, you can get databases of service and not have to worry about the underpinnings. You just worry about the applications and how those data streams connect to other data streams. And so that's the direction that I think things were going is, and we see this across the enterprise we're looking for. Those packaged package might be a generalized term, but we're looking for um, or packaged scenario and opportunity for enterprises rather than just the most basic building blocks. We have to start putting together the preformed applications and then use those as larger chunks. And >>this is the opportunity for a size I was talking before about business transformation. If you take, take Tim's database example, you don't need somebody anymore. Toe, you know, set up your database to tune it. I mean, that's becoming autonomous. But if you think about the way data pipelines work in the way organizations are structured where everything because it goes into this monolithic data lake or and and And it's like generic content coming in generic data where the business owner has to get in line and beg a data scientist or quality engineered or thio ingest a new data source. And it's just like the old data warehouse days where I think there's tremendous opportunities for s eyes to go in a completely re architect. The data model. Sergeant, This is something you and I were talking about on Twitter. It's That's why I like what snowflakes doing. It's kind of a AWS is trying to do with lasted glue views, but there's a whole business transformation opportunity for s eyes, which I just think is huge. Number l >>e all talk. Go ahead. Sorry. Yeah, >>I think we >>all talk, but we know we all agree on one thing that the future is hybrid for at least for next. You know, 10 years, if not more. Uh, hybrid is hard. The data proximity is, uh, very important. That means Leighton see between different workloads, right? That's super important. And I talk about this all the time and almost in every conversation I have about about. It's just scenario, is that there three types of applications every every enterprise systems or fractured systems, systems of engagement and the systems of innovation and my theory of cloud consumption tells me that sooner or later, systems off record. We'll move into SAS SAS world. That's that's how I see it. There's no other way around, I believe, and the systems off engagement or systems off differentiation something and call it. They will leverage a lot off platforms, the service and in that context context, I have said it many times the to be a best of the breed platform. As a service, you have to be best off the breed, um, infrastructure as a service provider. And that's Amazon. And that is that's also a zero to a certain extent, and then and and Google is trying to do that, too. So the feature sort off gap between number one cloud and two and three is pretty huge. I believe I think Amazon is doing great data democratization through several less. I just love serving less for that Several things over. Unless there is >>a winning formula is no doubt about several times I totally agree. But I think one of the things that I miss it has done is they've taken server lists. They brought their putting all the I as and the chips, and they're moving all the value up to the service layer, which gives them the advantage over others. Because everyone else is trying to compete down here. They're gonna be purpose built. If you look what Apple is doing with the chips and what the Amazon is doing, they're gonna kind of have this chip to chip scenario and then the middle. Where in between is the container ization, the micro services and Lambda? So if you're a developer, you approach is it's programmable at that point that could that could be a lock spec. I think for Amazon, >>it absolutely could be John. But I think there's another aspect here that we have to touch on, especially as we think about partners and where the opportunities come in. And that is that We often talk about non cloud to cloud right, how to get from on Prem to cloud. But the piece that you also have thio bring into the conversation is Theo edge to cloud continuum and So I think if you start to look at some of the announcements this week from AWS, you start looking at some of the new instance types uh, that are very ai focused. You look at the two new form factors for outposts, which allows you to bring cloud to a smaller footprint within an on premise premises, situation, uh, different local zones. And then Thea other piece that I think is really interesting is is their announcements around PCs and eks anywhere being able to take cloud in kubernetes, you know, across the board. And so the challenge here is, as I mentioned earlier, complexity is paramount. It's concern for enterprises just moving to cloud. You start layering in the edge to cloud continuum, and it just it gets exponentially more complicated. And so Amazon is not going to be the one to help you go through that. Not because they can't, but frankly, just the scale of help that is going to be needed amongst enterprises is just not there. And so this is really where I think the opportunity lies for the s eyes and I SVS and partners. You >>heard how Jassy defined hybrid John in the article that you wrote when you did your one on one with him, Tim and the in the analyst call, you answered my question and then I want to bring in Antonio near his comment. But Jassy basically said, Look, we see the cloud bring We're gonna bring a W s to the edge and we see data centers. This is another edge node and San Antonio Neary after HP is pretty good quarter uh came out and said, Well, we heard the public cloud provider talking about hybrid welcome, you know? >>Yeah, they were going and then getting here jumped on that big time. But we'll be looking hybrid. Tim nailed The complexity is the is the evil is friction is a friction area. If the complexity could be mastered by the edge provider closest to the customer, that's gonna be valuable, um, for partners. And then we can do that. Amazon's gonna have to continue to remove the friction and putting that together, which is why I'm nervous about their channel partners. Because if I'm a partner, I asked myself, How do I make money with Amazon? Right? At the end of the day, it's money making right. So how can I be successful? Um, not gonna sell more in the marketplace. Will the customer consumer through there? Is it friction or is a complex So this notion of complexity and friction becomes a double edged sword Tim on both sides. So we have five minutes left. Let's talk about the bottom side Complexity, >>friction. So you're absolutely right, John. And you know, the other thing that that I would say is for the partner, you have to look beyond what Amazon is selling today. Look at where the customers are going. And you know, David, I think you and I were both in an analyst session with Andy Jassy several years ago where one of the analysts asked the question. So you know, what's your perspective on Hybrid Cloud? In his response, candidly was, while we have this particular service and really, what he was talking to is a service that helps you on board to Amazon's public cloud. There was there was not an acknowledgment of hybrid cloud at the time, But look at how things have changed just in a short few years, and I understand where Jassy is coming from, but this is just exemplifies the fact that if you're a partner, you have to look beyond what Amazon is saying and think toe how the customer is evolving, how the enterprise is evolving and get yourself ahead of them. That will position you best for both today. And as you're building for the future. >>That's a great point, Dave. Complexity on buying. I'm a customer. You can throw me a marketplace all you want, but if I'm not gonna be tied into my procurement, how I'm consuming technology. Tim's point. Amazon isn't the only game in town. I got other suppliers. >>Yeah, well, certainly for some technology suppliers, they're basically could bring their on prem estate if it's big enough into the cloud. Uh, you know what is big enough? That's the big question here. You know, our guys like your red hats big enough. Okay, we know that Nutanix pure. They're sort of the next layer down. Can they do? They have enough of a customer base that they could bring into the cloud, create that abstraction layer, and then you got the born in the cloud guy Snowflake, Colombia or two good examples. Eso They've got the technology partners and then they're the size and consultants. And again, I see that is the really big opportunity is 10 points out? Amazon is acknowledging that hybrid Israel in in a newly defined way, they're going out to the edge, find you wanna call data center the edge. How are they going to support those installations? How are they gonna make sure that they're running properly? That they're connected to the business process? Those air That's s I whitespace. Huge. >>Guys, we have to wrap it up right now. But I just end on, you know, we'll get everyone go A little lightning around quick soundbite on the phrase with him, which stands for what's in it from me. So if I'm a partner, I'm a customer. I look at Amazon, I think. What's in it for me? Yeah. What a za customer like what do I get out of this? >>Yeah, having done, like more than 100 data center audits, and I'm seeing what mess up messes out there and having done quite a few migrations to cloud migrations of the messy messages piece, right? And it doesn't matter if you're migrating 10% or 20 or 30 it doesn't matter that how much you're migrating? It's a messy piece, and you cannot do with our partners that work. Actually, you need that. Know how you need to infuse that that education into into your organization, how to consume cloud, how toe make sense of it, how you change your processes and how you train your people. So it touches all the products, people and processes. So on three years, you gotta have partners on your side to make it >>so Hey, I'll go quick. And, Tim, you give you the last word. Complexity is cash. Chaos is cash. Follow the complexity. You'll make cash. >>Yeah, you said it, David. I think anyway, that you can help an enterprise simplify. And if you're the enterprise, if you're the customer, look for those partners. They're gonna help you simplify the journey over time. That's where the opportunity really lies. >>Okay, guys, Expert power panel here on Cuba live program, part of AWS reinvent virtual coverage, bringing you all the analysis from the experts. Digital transformations here. What's in it for me is a partner and customer. Help me make some money, master complexity and serve my customer. Mister Cube. Thanks for watching >>que Yeah, from around the globe. It's the cute

>>Hello, everyone. This is Dave Volonte with the Cube. On December 9th, the cube 3. 65 will be hosting Green Lake Day. Brought to you by Hewlett Packard Enterprise. Now Green Lake is H P E S. As a service initiative, it's designed to bring a cloud like experience to your I t environment, regardless of physical location. Now let me give you my take on what's happening here. Look, if you're a company that has relied primarily on selling hardware and infrastructure software on premises for decades, and you >>don't own a public cloud public cloud, well, you'd better have a strategy that supports the single most important trend in the business over the >>past decade. And that's cloud computing. HP formally announced Green Lake a year ago and really was the first to do so in the modern era. We're seeing others follow suit, and why not? The infrastructure World is taking a page out of the SAS business from a transaction and pricing standpoint where SAS models are being applied toe large portfolios of companies that sell and service, compute storage and networking gear and associated software. Now, like sass, these models generally require customers toe lock into a term >>of a least a year or mawr, and they'll require the customer to commit to a minimum threshold of capacity. So it's not a perfect replica replica of the pure paid by the drink. Cancel anytime public cloud model. But as I've said, neither is most SAS. For instance, when you buy from workday and salesforce and service now and many others, you have to commit to a term now with infrastructure. It's even more complex because the vendor has to install capacity and commit that to the customer. If you so choose, you can scale up or down and Onley pay for what you use as long as you commit to the term and pay for a certain minimum. So it's a shared risk model, which is a big step in the right direction. Now I will tell you that initiatives like Green Lake involves much more than playing financial games. I mean, that technique has been around forever since the mainframe days. No, true as a service, models require entirely new thinking around product design, salesforce, compensation, tooling to provide transparency and predictability, etcetera, for example, technology vendors they gotta get out of the mindset of selling boxes. They have to think about packaging services. When you sell a box, you drop it on the loading dock. You make sure it's delivered and deployed. You sign the customer up for a maintenance contract and you go on to the next one. In a model like Green Lake, the renewal process starts when the contract is signed. You have to earn the customers loyalty every day. Not that you don't have to do so in the old model, but it's different in and as a service context because it's not just >>the services organization has to worry about the customer renewing its everyone from the CEO down to the support specialist look churn is the silent killer oven. As a service model, an entirely new incentive and metric system has to emerge to support this change. The company also has to think about its portfolio not as products, but is a suite of services turning their product portfolio into a set of services with a P I s and an ecosystem that can plug into that. It's a completely different mindset now. Also share that. I think the infrastructure guys are playing catch up and It's high time we've seen this model emerge. Catch up to the SAS folks, that is, but I predict that it will continue to evolve. Let me give an example. We're now seeing software companies challenged the traditional SAS Model two examples, or snowflake and Data dog who's selling a consumption basis. It's a true cloud model where the customer can leave anytime. And I predict that over time, as SAS companies and eventually infrastructure >>players get more and more data, they're gonna be forced to look at similar pricing strategies. And as they get MAWR this data and can better predict usage, they'll >>increase their confidence and deploying such a consumption model. Now back to HP Green Lake H P E. By being first and committing the entire company to this approach from the top. Antonio Neary He's like the the CEO. He's a champion of this change. By being first, HP believes that it has an advantage. The company also believes that it has some innovations that will keep it ahead of the competition. So I encourage you to check out the link in the description of this video, register for Green Lake Day and decide for yourself I'll be there with a number of HP experts and customers to share what the future of as a service will look like and what it means to you. So look, if you're a CEO and infrastructure pro, ah, partner in the in the HP ecosystem, an existing customer or someone who is following these trends and wants to learn mawr, register for Green >>Lake Day and participate in the conversation, you'll have the opportunity to interact, live with experts, ask questions and hopefully get answers that will help you plan for the future. We'll see you there.

(soothing music) >> Commentator: From theCUBE studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is a CUBE conversation. >> Hi, I'm Stuart Miniman, and welcome to this Pensando event. We're talking about how Pensando is helping the future proof for enterprise. Really happy to welcome back to the program. Prem Jain he is the CEO of Pensando. Prem, thanks so much for joining us. >> Thank you. >> All right, So we had the opportunity, Jeff Frick was at the launch when Pensando came out of stealth. Of course, we were all together there, New York City, beautiful views at the Goldman Sachs office in New York City. We had John Chambers there, Antonio Neary and really explaining to the world what your team is doing. And giving that out to the world. We're a little bit more than six months later. So, first just give us the update is how's your team doing? Obviously, when people come out of stealth or have any major things going on. You can't necessarily predict when things like a pandemic or global financial situations are happening, but how's the team doing and give us the updates since last year? >> Yeah sure, thank you. It was a great launch actually we had and that was in October. Since then, the company had made tremendous progress in all different areas of the company. So let me start with a number of people. We have grown to 250 plus people in the company, we filled up all our key positions in the company, and we are really making very good progress with the whole overall team. Product-wise, we continuously delivering since October last year. We have made multiple releases for the enterprise customers, we have made multiple releases for the cloud customers. And we also have done work with some other service provider customers. And the product is really doing very well in these environments. We have partners like you mentioned in the Discover show, HP is going to launch our cards into their server. This is the official launch, we are already shipping to some customers. And this particular thing is with all their servers as well as the GreenLake product. We continue to work with our cloud partners and they are also, we have done multiple releases to them and they will all go in production in next six months time frame. We also have a lot of interest, we are seeing it from the service product customers and we are working with a few of them. I cannot mention the name at this particular point but we will share with you, once that information becomes available. And they are very excited about the technologies which we have. And they think this innovation which we bringing into the market is really great for the edge market, in the cloud as well as edge of the service provider. >> Congratulations Prem on the progress there, of course, HPE was an investor and you know and expected to be an OEM. So, getting that, you know less than a year from when you've come out of stealth, to being generally available this month, great milestone there. And as you said, you've already got some early customers using it. >> Yes. >> Help us understand, when the company first launched, your team has a very storied pedigree. Everyone in the network knows what you've done before. when I was waiting to watch, when you were in stealth, it's like, okay, well, I know there's going to be a chip and, we'll see how all the software that happening in the world is going to change that. So very Much edge is one of the, key use cases that you talk about, that you're enabling but, help our audience understand a little bit. If I'm an HPE customer, and I'm looking at GreenLake, I'm looking at ProLiant. What are those things that I'm doing that says, Oh, hey, HPE is now going to offer this to me. >> Yeah, so I think what the customer is going to get in the very beginning is HPE is going to ship our DSC card into the server. And that makes the server a future proof. And the reason for that is because, initially they are just using the networking capabilities. But then going forward, they can enable security capabilities. We can do like distributed firewall. We can do distributed load balancing, we can provide the encryptions, we can provide the capability of making sure the system is highly secure. We have created a air gap between the host and the network itself. They can also making it sure that they can get the visibility on the networking side, as well, as the application is very close to the application edge. Security is the right place to be close to where the application is running on the server. And then we provide the capability with the policy and service manager, so that they can manage lifecycle of this particular products into all the servers which is installed, as well as making sure they can enable all the features and capabilities based upon the object model. >> Yeah, excellent. Absolutely security needs to be everywhere. So when we think about edge models, how do I get into those devices? So therefore, form factor of a card, that fits in seems to be well. We talked about it at the launch. Goldman Sachs was, a customer of yours. They're very well known in the enterprise space, Financial Services, needs to make sure securities there needs to understand that, maybe speak to that enterprise customer. And if there's anything specifically with how Goldman sees this rolling, that can help illustrate a little bit more what you're doing. >> Sure, so we start shipping to Goldman right after the launch, as we talked about in the launch itself. They have since then, they are now expanding it and rolling it out more servers and capabilities into their environment, particularly using distributed firewall, and other capabilities, which is, they wanted to make sure that it get deployed into their environment. And one of the things which is we are looking at it also, is that we want it to be for every future servers they buy, we want to be part of it and then they can enable all the services related to like I talked about before. Firewall, load balancing, micro-segmentation other capabilities, containers down the road. To make sure that we can provide storage also as a part of it. So we can enable them to deploy those services and that makes it also in their case of future proof once they deployed, roll out this particular capabilities. At the same time, we have more than 10 to 12 customers, which is we are doing a POC and these are all very large enterprise customers. And the POC so far has done... is going very well. And these customers again will deploy different capabilities of the product. Starting in Q3, Q4 this year. The POC is going very well and we are very excited about working with these customers and these are named brand customers. Once you will see it, once we will announce it, you will see it, this is really making a difference in their environment. >> You talk about the capabilities that customers are using today and then, the roadmap of services that they will be able to add on top of that. >> Obviously, you're talking about future proof, I shouldn't change the hardware. But, how do I think about it from a customer standpoint? Is it similar to kind of a SaaS model as to how things updated? Do do I purchase it? More as a subscription than as a feature card? How should I be thinking that from a consumption model or, the finance team, when you say, oh, there's all these wonderful things? What will that do to my cost over time? >> No absolutely, I think it's a very good point, the way the customer should think about it is that they're getting, one is a piece of the hardware which provides this capabilities. And then on top of it, the subscription model, which allows them to pay in three years, or if they want to buy it all in once, they can also do that. It's a very cost effective way of deploying these services. This is a new paradigm. This is a world of distributed services paradigm, and I think this will allow them to scale up, scale down whatever is needed because by the time you are discarding to a server, you're basically adding these capabilities in every server. And more servers you're going to add, you don't need to worry about, do I need to add this particular capabilities on the servers, you can enable whatever is necessary to enable in that server. And it's a very cost effective model. Once you enable these services, encryptions, compressions, firewall, load balancing, all the networking services and storage services, once you enable all those, it's very cost justifiable in terms of deploying these services. >> So Prem, when I think about HPE and their history, in the compute market very much they offer flexibility, they want things to be really simple when they go out the door. You've both partnered with them as well as created competing products with HP in the past so, give us a little bit more as to what Pensando plus HPE will deliver to the market place. >> Yeah, exciting, is a very good partnership so far, I think can we assume that this is going to continuously get better and better. The reason I think is very important, because instead of just selling a classic server, HPEs now have the ability to provide the security solutions, networking solutions, as well as storage solutions to their customers. And this one is really providing all the services, simplifying the design of the network, and also making sure that the customers can enable all these capabilities wherever they want. It's a model which is unprecedented in the sense of it's a totally distributed and the customers should be able to enable whatever the service they need there, even if they didn't plan it in the past. >> Yeah, excellent, we very much these days talk about, how important data is, and I need to be able to deliver services where the data is. So, very much a discussion of the cloud as well as the edge. So, it sounds like this is extending, the importance of that data and being able to bring those services, very much where the data is being created and service in real time. >> Correct. >> Okay, so, from the HPE relationship obviously gives you, a good chunk of the enterprise business, but down the road, should we be thinking about other partnerships and potentially even other OEM relationships? >> Yes, I think, like I said, we are working with the two or three major cloud vendors. And they will be rolling it out by the end of this year. And they see themselves like we said, we are going to democratize the Cloud based upon the fact that the only solution which is Amazon has based upon the Nitro, we are now providing the capabilities, to all the cloud vendors. And they can take this particular technologies and integrate in their environment, which is what we are providing the software stack. And they are integrating, and they will be going into the production and providing more capabilities, more features, and stuff like that. Then what the competition will provide. So this is a really excellent opportunity, both for us as well as for our cloud vendor partners. >> Yeah, one of the key things when you hear talk of what AWS is doing with Nitro, and the Outpost solution is they talk about, from a hardware standpoint and a software standpoint, they pull certain things off of the software layer to be able to have them be more performing, but also it's both in the cloud and in your location, whether that be an edge data center with Outpost, it's the same on both ends. So, it should I be thinking of this in a similar model that you need to... I guess, where is it that it would be an enterprise only play? And what considerations is it between enterprise and cloud when you'd be buying it from multiple vendors, if they're enabled by your solution? >> Absolutely, and I think for the enterprise, the people who wants to build their own cloud, I think this is provide a really excellent solution. Because all the capabilities which we have will provide all the features which you can get from the cloud vendors, in that particular sense. And if you are in the cloud, you can provide scale and capabilities to the cloud vendors. Now the combination is a very powerful solutions between, you can get the same services, whether you're in premise, or providing or leveraging the cloud. And that can give also hybrid opportunities. You can run, same capabilities, same features in the hybrid cloud model where you're running some on your premises and some running in the cloud itself. >> Excellent, all right. So, Prem you've got the solution coming out with HPE, you talked a little bit about some of the other, partnerships in the cloud. Partners there, give us a little bit of priorities for the second half of 2020. >> Yeah, so I think the first half we have done very well financially also, we are running almost close to 50% ahead of our forecast where we were at this particular point. Going forward, I think we need to make sure that we execute based upon, the current roadmap which we have, and making sure that we meet the customers expectations and our partners expectations. And also, I want to also give you another thing is that which is our plan is basically our second generation innovation. Also is going to come in very soon, and we will be able to take that into the production also on the first half of next year. So I think all for the second half, we have a pretty good opportunity to really capture with our solutions, as well as looking forward to win some more design wins, both with our current solutions as well as the new solutions, which we're going to take it today. >> All right, well Prem Jain let me just give you the final word as to how customers should be thinking about Pensando as they look the future proof their enterprise. >> Absolutely, I think based on the history, we are known as a innovation machine in the industry, and we continuously do better and better. So I think the people should think about us is providing really looking at this transition, which is happening in the enterprise cloud as well as in the service provider space. And we will provide the solution, which is really will meet their expectations, and the solution is consistent whether it's for VMs whether resources containers, whether it's for bare-metal services, and providing all these services in a very consistent manner. >> And well thank you so much for the updates. Congratulations on the continued steps along with HPE and definitely look forward to catching up with you and the team in the future. >> Thank you very much for giving me this opportunity. And definitely we will talk six months from now and and again see how much progress we have made and what I told you and I will compare the notes and say, this is what we have done better. >> Alright, stay tuned. We have a lot of interviews with some of the Pensando teams as well as that partnership with HPE. I'm Stuart Miniman and check out theCUBE.net for all of the background on this. And thank you for watching. (upbeat music)