>>The cube presents HPE discover 2022 brought to you by HPE. >>Hey everyone. Welcome back to the Cube's day one coverage of HPE discover 22 live from the Venetian in Las Vegas. I got a power panel here, Lisa Martin, with Dave Valante, John furrier, Holger Mueller also joins us. We are gonna wrap this, like you've never seen a rap before guys. Lot of momentum today, lot, lot of excitement, about 8,000 or so customers, partners, HPE leaders here. Holger. Let's go ahead and start with you. What are some of the things that you heard felt saw observed today on day one? >>Yeah, it's great to be back in person. Right? 8,000 people events are rare. Uh, I'm not sure. Have you been to more than 8,000? <laugh> yeah, yeah. Okay. This year, this year. I mean, historically, yes, but, um, >>Snowflake was 10. Yeah. >>So, oh, wow. Okay. So 8,000 was my, >>Cisco was, they said 15, >>But is my, my 8,000, my record, I let us down with 7,000 kind of like, but it's in the Florida swarm. It's not nicely. Like, and there's >>Usually what SFI, there's usually >>20, 20, 30, 40, 50. I remember 50 in the nineties. Right. That was a different time. But yeah. Interesting. Yeah. Interesting what people do and it depends how much time there is to come. Right. And know that it happens. Right. But yeah, no, I think it's interesting. We, we had a good two analyst track today. Um, interesting. Like HPE is kind of like back not being your grandfather's HPE to a certain point. One of the key stats. I know Dave always for the stats, right. Is what I found really interesting that over two third of GreenLake revenue is software and services. Now a love to know how much of that services, how much of that software. But I mean, I, I, I, provocate some, one to ones, the HP executives saying, Hey, you're a hardware company. Right. And they didn't even come back. Right. But Antonio said, no, two thirds is, uh, software and services. Right. That's interesting. They passed the one exabyte, uh, being managed, uh, as a, as a hallmark. Right. I was surprised only 120,000 users if I had to remember the number. Right, right. So that doesn't seem a terrible high amount of number of users. Right. So, but that's, that's, that's promising. >>So what software is in there, cuz it's gotta be mostly services. >>Right? Well it's the 70 plus cloud services, right. That everybody's talking about where the added eight of them shockingly back up and recovery, I thought that was done at launch. Right. >>Still who >>Keep recycling storage and you back. But now it's real. Yeah. >>But the company who knows the enterprise, right. HPE, what I've been doing before with no backup and recovery GreenLake. So that was kind of like, okay, we really want to do this now and nearly, and then say like, oh, by the way, we've been doing this all the time. Yeah. >>Oh, what's your take on the installed base of HP. We had that conversation, the, uh, kickoff or on who's their target, what's the target audience environment look like. It certainly is changing. Right? If it's software and services, GreenLake is resonating. Yeah. Um, ecosystems responding. What's their customers cuz managed services are up too Kubernetes, all the managed services what's what's it like what's their it transformation base look like >>Much of it is of course install base, right? The trusted 20, 30 plus year old HP customer. Who's keeping doing stuff of HP. Right. And call it GreenLake. They've been for so many name changes. It doesn't really matter. And it's kind of like nice that you get the consume pain only what you consume. Right. I get the cloud broad to me then the general markets, of course, people who still need to run stuff on premises. Right. And there's three reasons of doing this performance, right. Because we know the speed of light is relative. If you're in the Southern hemisphere and even your email servers in Northern hemisphere, it takes a moment for your email to arrive. It's a very different user experience. Um, local legislation for data, residency privacy. And then, I mean Charles Phillips who we all know, right. Former president of uh, info nicely always said, Hey, if the CIOs over 50, I don't have to sell qu. Right. So there is not invented. I'm not gonna do cloud here. And now I've kind of like clouded with something like HP GreenLake. That's the customers. And then of course procurement is a big friend, right? Yeah. Because when you do hardware refresh, right. You have to have two or three competitors who are the two or three competitors left. Right. There's Dell. Yeah. And then maybe Lenovo. Right? So, so like a >>Little bit channels, the strength, the procurement physicians of strength, of course install base question. Do you think they have a Microsoft opportunity where, what 365 was Microsoft had office before 365, but they brought in the cloud and then everything changed. Does HP have that same opportunity with kind of the GreenLake, you know, model with their existing stuff. >>It has a GreenLake opportunity, but there's not much software left. It's a very different situation like Microsoft. Right? So, uh, which green, which HP could bring along to say, now run it with us better in the cloud because they've been selling much of it. Most of it, of their software portfolio, which they bought as an HP in the past. Right. So I don't see that happening so much, but GreenLake as a platform itself course interesting because enterprise need a modern container based platform. >>I want, I want to double click on this a little bit because the way I see it is HP is going to its installed base. I think you guys are right on say, this is how we're doing business now. Yeah. You know, come on along. But my sense is, some customers don't want to do the consumption model. There are actually some customers that say, Hey, of course I got, I don't have a cash port problem. I wanna pay for it up front and leave me alone. >>I've been doing this since 50 years. Nice. As I changed it, now <laugh> two know >>Money's wants to do it. And I don't wanna rent because rental's more expensive and blah, blah, blah. So do you see that in the customer base that, that some are pushing back? >>Of course, look, I have a German accent, right? So I go there regularly and uh, the Germans are like worried about doing anything in the cloud. And if you go to a board in Germany and say, Hey, we can pay our usual hardware, refresh, CapEx as usual, or should we bug consumption? And they might know what we are running. <laugh> so not whole, no offense against the Germans out. The German parts are there, but many of them will say, Hey, so this is change with COVID. Right. Which is super interesting. Right? So the, the traditional boards non-technical have been hearing about this cloud variable cost OPEX to CapEx and all of a sudden there's so much CapEx, right. Office buildings, which are not being used truck fleets. So there's a whole new sensitivity by traditional non-technical boards towards CapEx, which now the light bulb went on and say, oh, that's the cloud thing about also. So we have to find a way to get our cost structure, to ramp up and ramp down as our business might be ramping up through COVID through now inflation fears, recession, fears, and so on. >>So, okay. HP's, HP's made the statement that anything you can do in the cloud you can do in GreenLake. Yes. And I've said you can't run on snowflake. You can't run Mongo Atlas, you can't run data bricks, but that's okay. That's fine. Let's be, I think they're talking about, there's >>A short list of things. I think they're talking about the, their >>Stuff, their, >>The operating experience. So we've got single sign on through a URL, right. Uh, you've got, you know, some level of consistency in terms of policy. It's unclear exactly what that is. You've got storage backup. Dr. What, some other services, seven other services. If you had to sort of take your best guess as to where HP is now and peg it toward where Amazon was in which year? >>20 14, 20 14. >>Yeah. Where they had their first conference or the second we invent here with 3000 people and they were thinking, Hey, we're big. Yeah. >>Yeah. And I think GreenLake is the building blocks. So they quite that's the >>Building. Right? I mean similar. >>Okay. Well, I mean they had E C, Q and S3 and SQS, right. That was the core. And then the rest of those services were, I mean, base stock was one of that first came in behind and >>In fairness, the industry has advanced since then, Kubernetes is further along. And so HPE can take advantage of that. But in terms of just the basic platform, I, I would agree. I think it's >>Well, I mean, I think, I mean the software, question's a big one. I wanna bring up because the question is, is that software is getting the world. Hardware is really software scales, everything, data, the edge story. I love their story. I think HP story is wonderful Aruba, you know, hybrid cloud, good story, edge edge. But if you look under the covers, it's weak, right? It's like, it's not software. They don't have enough software juice, but the ecosystem opportunity to me is where you plug and play. So HP knows that game. But if you look historically over the past 25 years, HP now HPE, they understand plug and play interoperability. So the question is, can they thread the needle >>Right. >>Between filling the gaps on the software? Yeah. With partners, >>Can they get the partners? Right. And which have been long, long time. Right. For a long time, HP has been the number one platform under ICP, right? Same thing. You get certified for running this. Right. I know from my own history, uh, I joined Oracle last century and the big thing was, let's get your eBusiness suite certified on HP. Right? Like as if somebody would buy H Oracle work for them, right. This 20 years ago, server >>The original exit data was HP. Oracle. >>Exactly. Exactly. So there's this thinking that's there. But I think the key thing is we know that all modern forget about the hardware form in the platforms, right? All modern software has to move to containers and snowflake runs in containers. You mentioned that, right? Yeah. If customers force snowflake and HPE to the table, right, there will be a way to make it work. Right. And which will help HPE to be the partner open part will bring the software. >>I, I think it's, I think that's an opportunity because that changes the game and agility and speed. If HP plays their differentiation, right. Which we asked on their opening segment, what's their differentiation. They got size scale channel, >>What to the enterprise. And then the big benefit is this workload portability thing. Right? You understand what is run in the public cloud? I need to run it local. For whatever reason, performance, local residency of data. I can move that. There that's the big benefit to the ISVs, the sales vendors as well. >>But they have to have a stronger data platform story in my that's right. Opinion. I mean, you can run Oracle and HPE, but there's no reason they shouldn't be able to do a deal with, with snowflake. I mean, we saw it with Dell. Yep. We saw it with, with, with pure and I, if our HPE I'd be saying, Hey, because the way the snowflake deal worked, you probably know this is your reading data into the cloud. The compute actually occurs in the cloud viral HB going snowflake saying we can separate compute and storage. Right. And we have GreenLake. We have on demand. Why don't we run the compute on-prem and make it a full class, first class citizen, right. For all of our customers data. And that would be really innovative. And I think Mongo would be another, they've got OnPrem. >>And the question is, how many, how many snowflake customers are telling snowflake? Can I run you on premise? And how much defo open years will they hear from that? Right? This is >>Why would they deal Dell? That >>Deal though, with that, they did a deal. >>I think they did that deal because the customer came to them and said, you don't exactly that deal. We're gonna spend the >>Snowflake >>Customers think crazy things happen, right? Even, even put an Oracle database in a Microsoft Azure data center, right. Would off who, what as >>Possible snowflake, >>Oracle. So on, Aw, the >>Snow, the snowflakes in the world have to make a decision. Dave on, is it all snowflake all the time? Because what the reality is, and I think, again, this comes back down to the, the track that HP could go up or down is gonna be about software. Open source is now the software industry. There's no such thing as proprietary software, in my opinion, relatively speaking, cloud scale and integrated, integrated integration software is proprietary. The workflows are proprietary. So if they can get that right with the partners, I would focus on that. I think they can tap open source, look at Amazon with open source. They sucked it up and they integrated it in. No, no. So integration is the deal, not >>Software first, but Snowflake's made the call. You were there, Lisa. They basically saying it's we have, you have to be in snowflake in order to get the governance and the scalability, all that other wonderful stuff. Oh, but we we'll do Apache iceberg. We'll we'll open it up. We'll do Python. Yeah. >>But you can't do it data clean room unless you are in snowflake. Exactly. Snowflake on snowflake. >>Exactly. >>But got it. Isn't that? What you heard from AWS all the time till they came out outposts, right? I mean, snowflake is a market leader for what they're doing. Right. So that they want to change their platform. I mean, kudos to them. They don't need to change the platform. They will be the last to change their platform to a ne to anything on premises. Right. But I think the trend already shows that it's going that way. >>Well, if you look at outpost is an signal, Dave, the success of outpost launched what four years ago, they announced it. >>What >>EKS is beating, what outpost is doing. Outpost is there. There's not a lot of buzz and talk to the insiders and the open source community, uh, EKS and containers. To your point mm-hmm <affirmative> is moving faster on, I won't say commodity hardware, but like could be white box or HP, Dell, whatever it's gonna be that scale differentiation and the edge story is, is a good one. And I think with what we're seeing in the market now it's the industrial edge. The back office was gen one cloud back office data center. Now it's hybrid. The focus will be industrial edge machine learning and AI, and they have it here. And there's some, some early conversations with, uh, I heard it from, uh, this morning, you guys interviewed, uh, uh, John Schultz, right? With the world economic 4k birth Butterfield. She was amazing. And then you had Justin bring up a Hoar, bring up quantum. Yes. That is a differentiator. >>HP. >>Yes. Yeah. You, they have the computing shops. They had the R and D can they bring it to the table >>As, as HPC, right. To what they Schultz for of uh, the frontier system. Right. So very impressed. >>So the ecosystem is the key for them is because that's how they're gonna fill the gaps. They can't, they can't only, >>They could, they could high HPC edge piece. I wouldn't count 'em out of that game yet. If you co-locate a box, I'll use the word box, particularly at a telco tower. That's a data center. Yep. Right. If done properly. Yep. So, you know, what outpost was supposed to do actually is a hybrid opportunity. Aruba >>Gives them a unique, >>But the key thing is right. It's a yin and yang, right? It's the ecosystem it's partners to bring those software workload. Absolutely. Right. But HPE has to keep the platform attractive enough. Right. And the key thing there is that you have this workload capability thing that you can bring things, which you've built yourself. I mean, look at the telcos right. Network function, visualization, thousands of man, years into these projects. Right. So if I can't bring it to your edge box, no, I'm not trying to get to your Xbox. Right. >>Hold I gotta ask you since in the Dave too, since you guys both here and Lisa, you know, I said on the opening, they have serious customers and those customers have serious problems, cyber security, ransomware. So yeah. I teach transformation now. Industrial transformation machine learning, check, check, check. Oh, sounds good. But at the end of the day, their customers have some serious problems. Right? Cyber, this is, this is high stakes poker. Yeah. What do you think HP's position for in the security? You mentioned containers, you got all this stuff, you got open source, supply chain, you have to left supply chain issues. What is their position with security? Cuz that's the big one. >>I, I think they have to have a mature attitude that customers expect from HPE. Right? I don't have to educate HP on security. So they have to have the partner offerings again. We're back at the ecosystem to have what probably you have. So bring your own security apart from what they have to have out of the box to do business with them. This is why the shocker this morning was back up in recovery coming. <laugh> it's kind like important for that. Right? Well >>That's, that's, that's more ransomware and the >>More skeleton skeletons in the closet there, which customers should check of course. But I think the expectations HP understands that and brings it along either from partner or natively. >>I, I think it's, I think it's services. I think point next is the point of integration for their security. That's why two thirds is software and services. A lot of that is services, right? You know, you need security, we'll help you get there. We people trust HP >>Here, but we have nothing against point next or any professional service. They're all hardworking. But if I will have to rely on humans for my cyber security strategy on a daily level, I'm getting gray hair and I little gray hair >>Red. Okay. I that's, >>But >>I think, but I do think that's the camera strategy. I mean, I'm sure there's a lot of that stuff that's beginning to be designed in, but I, my guess is a lot of it is services. >>Well, you got the Aruba. Part of the booth was packed. Aruba's there. You mentioned that earlier. Is that good enough? Because the word zero trust is kicked around a lot. On one hand, on the other hand, other conversations, it's all about trust. So supply chain and software is trusting trust, trust and verified. So you got this whole mentality of perimeter gone mentality. It's zero trust. And if you've got software trust, interesting thoughts there, how do you reconcile zero trust? And then I need trust. What's what's you? What are you seeing older on that? Because I ask people all the time, they're like, uh, I'm zero trust or is it trust? >>Yeah. The middle ground. Right? Trusted. The meantime people are man manipulating what's happening in your runtime containers. Right? So, uh, drift control is a new password there that you check what's in your runtime containers, which supposedly impenetrable, but people finding ways to hack them. So we'll see this cat and mouse game going on all the time. Yeah. Yeah. There's always gonna be the need for being in a secure, good environment from that perspective. Absolutely. But the key is edge has to be more than Aruba, right? If yeah. HV goes away and says, oh yeah, we can manage your edge with our Aruba devices. That's not enough. It's the virtual probability. And you said the important thing before it's about the data, right? Because the dirty secret of containers is yeah, I move the code, but what enterprise code works without data, right? You can't say as enterprise, okay, we're done for the day check tomorrow. We didn't persist your data, auditor customer. We don't have your data anymore. So filling a way to transport the data. And there just one last thought, right? They have a super interesting asset. They want break lands for the venerable map R right. Which wrote their own storage drivers and gives you the chance to potentially do something in that area, which I'm personally excited about. But we'll see what happens. >>I mean, I think the holy grail is can I, can I put my data into a cloud who's ever, you know, call it a super cloud and can I, is it secure? Is it governed? Can I share it and be confident that it's discoverable and that the, the person I give it to has the right to use it. Yeah. And, and it's the correct data. There's not like a zillion copies running. That's the holy grail. And I, I think the answer today is no, you can, you can do that maybe inside of AWS or maybe inside of Azure, look maybe certainly inside of snowflake, can you do that inside a GreenLake? Well, you probably can inside a GreenLake, but then when you put it into the cloud, is it cross cloud? Is it really out to the edge? And that's where it starts to break down, but that's where the work is to be done. That's >>The one Exide is in there already. Right. So men being men. Yeah. >>But okay. But it it's in there. Yeah. Okay. What do you do with it? Can you share that data? What can you actually automate governance? Right? Uh, is that data discoverable? Are there multiple copies of that data? What's the, you know, master copy. Here's >>A question. You guys, here's a question for you guys analyst, what do you think the psychology is of the CIO or CSO when HP comes into town with GreenLake, uh, and they say, what's your relationship with the hyperscalers? Cause I'm a CIO. I got my environment. I might be CapEx centric or Hey, I'm open model. Open-minded to an operating model. Every one of these enterprises has a cloud relationship. Yeah. Yeah. What's the dynamic. What do you think the psychology is of the CIO when they're rationalizing their, their trajectory, their architecture, cloud, native scale integration with HPE GreenLake or >>HP service. I think she or he hears defensiveness from HPE. I think she hears HPE or he hears HPE coming in and saying, you don't need to go to the cloud. You know, you could keep it right here. I, I don't think that's the right posture. I think it should be. We are your cloud. And we can manage whether it's OnPrem hybrid in AWS, Azure, Google, across those clouds. And we have an edge story that should be the vision that they put forth. That's the super cloud vision, but I don't hear it >>From these guys. What do you think psycho, do you agree with that? >>I'm totally to make, sorry to be boring, but I totally agree with, uh, Dave on that. Right? So the, the, the multi-cloud capability from a trusted large company has worked for anybody up and down the stack. Right? You can look historically for, uh, past layers with cloud Foundry, right? It's history vulnerable. You can look for DevOps of Hashi coop. You can look for database with MongoDB right now. So if HPE provides that data access, right, with all the problems of data gravity and egres cost and the workability, they will be doing really, really well, but we need to hear it more, right. We didn't hear much software today in the keynote. Right. >>Do they have a competitive offering vis-a-vis or Azure? >>The question is, will it be an HPE offering or will, or the software platform, one of the offerings and you as customer can plug and play, right. Will software be a differentiator for HP, right. And will be close, proprietary to the point to again, be open enough for it, or will they get that R and D format that, or will they just say, okay, ES MES here on the side, your choice, and you can use OpenShift or whatever, we don't matter. That's >>The, that's the key question. That's the key question. Is it because it is a competitive strategy? Is it highly differentiated? Oracle is a highly differentiated strategy, right? Is Dell highly differentiated? Eh, Dell differentiates based on its breadth. What? >>Right. Well, let's try for the control plane too. Dell wants to be an, >>Their, their vision is differentiated. Okay. But their execution today is not >>High. All right. Let me throw, let me throw this out at you then. I'm I'm, I'm sorry. I'm I'm HPE. I wanna be the glue layer. Is that, does that fly? >>What >>Do you mean? The group glue layer? I'll I wanna be, you can do Amazon, but I wanna be the glue layer between the clouds and our GreenLake will. >>What's the, what's the incremental value that, that glue provides, >>Provides comfort and reliability and control for the single pane of glass for AWS >>And comes back to the data. In my opinion. Yeah. >>There, there there's glue levels on the data level. Yeah. And there's glue levels on API level. Right. And there's different vendors in the different spaces. Right. Um, I think HPE will want to play on the data side. We heard lots of data stuff. We >>Hear that, >>But we have to see it. Exactly. >>Yeah. But it's, it's lacking today. And so, Hey, you know, you guys know better than I APIs can be fragile and they can be, there's a lot of diversity in terms of the quality of APIs and the documentation, how they work, how mature they are, what, how, what kind of performance they can provide and recoverability. And so just saying, oh wow. We are living the API economy. You know, the it's gonna take time to brew, chime in here. Hi. >><laugh> oh, so guys, you've all been covering HPE for a long time. You know, when Antonio stood up on stage three years ago and said by 2022, and here we are, we're gonna be delivering everything as a service. He's saying we've, we've done it, but, and we're a new company. Do you guys agree with that? >>Definitely. >>I, yes. Yes. With the caveat, I think, yes. The COVID pandemic slowed them down a lot because, um, that gave a tailwind to the hyperscalers, um, because of the, the force of massive O under forecasting working at home. I mean, everyone I talked to was like, no one forecasted a hundred percent work at home, the, um, the CapEx investments. So I think that was an opportunity that they'd be much farther along if there's no COVID people >>Thought it wasn't impossible. Yeah. But so we had the old work from home thing right. Where people trying to get people fired at IBM and Yahoo. Right. So I would've this question covering the HR side and my other hat on. Right. And I would ask CHS let's assume, because I didn't know about COVID shame on me. Right. I said, big California, earthquake breaks. Right. Nobody gets hurt, but all the buildings have to be retrofitted and checked for seism logic down. So everybody's working from home, ask CHS, what kind of productivity gap hit would you get by forcing everybody working from home with the office unsafe? So one, one gentleman, I won't know him, his name, he said 20% and the other one's going ha you're smoking. It's 40 50%. We need to be in the office. We need to meet it first night. And now we went for this exercise. Luckily not with the California. Right. Well, through the price of COVID and we've seen what it can do to, to productivity well, >>The productivity, but also the impact. So like with all the, um, stories we've done over two years, the people that want came out ahead were the ones that had good cloud action. They were already in the cloud. So I, I think they're definitely in different company in the sense of they, I give 'em a pass. I think they're definitely a new company and I'm not gonna judge 'em on. I think they're doing great. But I think pandemic definitely slowed 'em down that about >>It. So I have a different take on this. I think. So we've go back a little history. I mean, you' said this, I steal your line. Meg Whitman took one for the Silicon valley team. Right. She came in. I don't think she ever was excited that I, that you said, you said that, and I think you wrote >>Up, get tape on that one. She >>Had to figure out how do I deal with this mess? I have EDS. I got PC. >>She never should have spun off the PC, but >>Okay. But >>Me, >>Yeah, you can, you certainly could listen. Maybe, maybe Gerstner never should have gone all in on services and IBM would dominate something other than mainframes. They had think pads even for a while, but, but, but so she had that mess to deal with. She dealt with it and however, they dealt with it, Antonio came in, he, he, and he said, all right, we're gonna focus the company. And we're gonna focus the mission on not the machine. Remember those yeah. Presentations, but you just make your eyes glaze over. We're going all in on Azure service >>And edge. He was all on. >>We're gonna build our own cloud. We acquired Aruba. He made some acquisitions in HPC to help differentiate. Yep. And they are definitely a much more focused company now. And unfortunately I wish Antonio would CEO in 2015, cuz that's really when this should have started. >>Yeah. And then, and if you remember back then, Dave, we were interviewing Docker with DevOps teams. They had composability, they were on hybrid really early. I think they might have even coined the term hybrid before VMware tri-state credit for it. But they were first on hybrid. They had DevOps, they had infrastructure risk code. >>HPE had an HP had an awesome cloud team. Yeah. But, and then, and then they tried to go public cloud. Yeah. You know, and then, you know, just made them, I mean, it was just a mess. The focus >>Is there. I give them huge props. And I think, I think the GreenLake to me is exciting here because it's much better than it was two years ago. When, when we talked to, when we started, it's >>Starting to get real. >>It's, it's a real thing. And I think the, the tell will be partners. If they make that right, can pull their different >>Ecosystem, >>Their scale and their customers and fill the software gas with partners mm-hmm <affirmative> and then create that integration opportunity. It's gonna be a home run if they don't do that, they're gonna miss the operating, >>But they have to have their own to your point. They have to have their own software innovation. >>They have to good infrastructure ways to build applications. I don't wanna build with somebody else. I don't wanna take a Microsoft stack on open source stack. I'm not sure if it's gonna work with HP. So they have to have an app dev answer. I absolutely agree with that. And the, the big thing for the partners is, which is a good thing, right? Yep. HPE will not move into applications. Right? You don't have to have the fear of where Microsoft is with their vocal large. Right. If AWS kind of like comes up with APIs and manufacturing, right. Google the same thing with their vertical push. Right. So HPE will not have the CapEx, but >>Application, >>As I SV making them, the partner, the bonus of being able to on premise is an attractive >>Part. That's a great point. >>Hold. So that's an inflection point for next 12 months to watch what we see absolutely running on GreenLake. >>Yeah. And I think one of the things that came out of the, the last couple events this past year, and I'll bring this up, we'll table it and we'll watch it. And it's early in this, I think this is like even, not even the first inning, the machine learning AI impact to the industrial piece. I think we're gonna see a, a brand new era of accelerated digital transformation on the industrial physical world, back office, cloud data center, accounting, all the stuff. That's applications, the app, the real world from space to like robotics. I think that HP edge opportunity is gonna be visible and different. >>So guys, Antonio Neri is on tomorrow. This is only day one. If you can imagine this power panel on day one, can you imagine tomorrow? What is your last question for each of you? What is your, what, what question would you want to ask him tomorrow? Hold start with you. >>How is HPE winning in the long run? Because we know their on premise market will shrink, right? And they can out execute Dell. They can out execute Lenovo. They can out Cisco and get a bigger share of the shrinking market. But that's the long term strategy, right? So why should I buy HPE stock now and have a good return put in the, in the safe and forget about it and have a great return 20 years from now? What's the really long term strategy might be unfair because they, they ran in survival mode to a certain point out of the mass post equipment situation. But what is really the long term strategy? Is it more on the hardware side? Is it gonna go on the HPE, the frontier side? It's gonna be a DNA question, which I would ask Antonio. >>John, >>I would ask him what relative to the macro conditions relative to their customer base, I'd say, cuz the customers are the scoreboard. Can they create a value proposition with their, I use the Microsoft 365 example how they kind of went to the cloud. So my question would be Antonio, what is your core value proposition to CIOs out there who want to transform and take a step function, increase for value with HPE? Tell me that story. I wanna hear. And I don't want to hear, oh, we got a portfolio and no, what value are you enabling your customers to do? >>What and what should that value be? >>I think it's gonna be what we were kind of riffing on, which is you have to provide either what their product market fit needs are, which is, are you solving a problem? Is it a pain point is a growth driver. Uh, and what's the, what's that tailwind. And it's obviously we know at cloud we know edge. The story is great, but what's the value proposition. But by going with HPE, you get X, Y, and Z. If they can explain that clearly with real, so qualitative and quantitative data it's home >>Run. He had a great line of the analyst summit today where somebody asking questions, I'm just listening to the customer. So be ready for this Steve jobs photo, listening to the customer. You can't build something great listening to the customer. You'll be good for the next quarter. The next exponential >>Say, what are the customers saying? <laugh> >>So I would make an observation. And my question would, so my observation would be cloud is growing collectively at 35%. It's, you know, it's approaching 200 billion with a big, big four. If you include Alibaba, IBM has actually said, Hey, we're gonna gr they've promised 6% growth. Uh, Cisco I think is at eight or 9% growth. Dow's growing in double digits. Antonio and HPE have promised three to 4% growth. So what do you have to do to actually accelerate growth? Because three to 4%, my view, not enough to answer Holger's question is why should I buy HPE stock? Well, >>If they have product, if they have customer and there's demand and traction to me, that's going to drive the growth numbers. And I think the weak side of the forecast means that they don't have that fit yet. >>Yeah. So what has to happen for them to get above five, 6% growth? >>That's what we're gonna analyze. I mean, I, I mean, I don't have an answer for that. I wish I had a better answer. I'd tell them <laugh> but I feel, it feels, it feels like, you know, HP has an opportunity to say here's the new HPE. Yeah. Okay. And this is what we stand for. And here's the one thing that we're going to do that consistently drives value for you, the customer. And that's gonna have to come into some, either architectural cloud shift or a data thing, or we are your store for blank. >>All of the above. >>I guess the other question is, would, would you know, he won't answer a rude question, would suspending things like dividends and stock buybacks and putting it into R and D. I would definitely, if you have confidence in the market and you know what to do, why wouldn't you just accelerate R and D and put the money there? IBM, since 2007, IBM spent is the last stat. And I'm looking go in 2007, IBM way, outspent, Google, and Amazon and R and D and, and CapEx two, by the way. Yep. Subsequent to that, they've spent, I believe it's the numbers close to 200 billion on stock buyback and dividends. They could have owned cloud. And so look at this business, the technology business by and large is driven by innovation. Yeah. And so how do you innovate if >>You have I'm buying, I'm buying HP because they're reliable high quality and they have the outcomes that I want. Oh, >>Buy their products and services. I'm not sure I'd buy the stock. Yeah. >>Yeah. But she has to answer ultimately, because a public company. Right. So >>Right. It's this job. Yeah. >>Never a dull moment with the three of you around <laugh> guys. Thank you so much for sharing your insights, your, an analysis from day one. I can't imagine what day two is gonna bring tomorrow. Debut and I are gonna be anchoring here. We've got a jam packed day, lots going on, hearing from the ecosystem from leadership. As we mentioned, Antonio is gonna be Tony >>Alma Russo. I'm dying. Dr. >>EDMA as well as on the CTO gonna be another action pack day. I'm excited for it, guys. Thanks so much for sharing your insights and for letting me join this power panel. >>Great. Great to be here. >>Power panel plus me. All right. For Holger, John and Dave, I'm Lisa, you're watching the cube our day one coverage of HPE discover wraps right now. Don't go anywhere, cuz we'll see you tomorrow for day two, live from Vegas, have a good night.

(upbeat music) >> This is Dave Vellante, and I'd like to welcome you back to The Cube's coverage of Couchbase ConnectONLINE, where the theme of this event is Modernize Now. And one of the big announcements is Capella, which of course, as you all undoubtedly know, is the brightest star in the constellation Auriga, which is Latin for Charioteer. Yup, you can find that in the constellation, that constellation in the night sky in late Feb, early March, in the Northern hemisphere. So with that little tidbit, I'd like to welcome in Scott Anderson to The Cube, who's the Senior Vice President of Product Management and Business Operations at Couchbase. Scott, welcome. Good to see you. >> Thank you very much. Thanks for having me. >> Yeah, it's our pleasure. So, you've launched Couchbase Capella. If I understand correctly, it's built on Couchbase server 7, which you launched just a few months ago in the middle of the Summer. Can you give us an overview of Capella? >> Yeah, absolutely. So Couchbase Capella, is our fully managed databases service for enterprise applications. One of the goals of launching Capella and our database as a service offering that we just announced today is, about increasing the accessibility of Couchbase. So, it's about making it easy for a Developer or an Enterprise to get up and running in just a few clicks and a couple of minutes. And about making it more affordable and accessible through the development phase, through the test phase, the production phase. So really it's about ease of use, having the right offerings aligned to the phase of development that a customer's in, and eventually into the production of their enterprise application, leveraging Capella and Couchbase Server 7. >> So let me ask you, I went pretty deep with Ravi on the, the technical side, and I want to understand, what makes Capella different from some of the competitive offerings? Is it the, sort of the fundamentals that I learned from Ravi about how you guysbhave really done a awesome focus on SQL. But been able to maintain acid compliance, deal with distributed architectural challenges, and then bringing that over to database as a service? Is that the fundamental? What are some of the other differentiators? >> Yeah, that, that is the fundamental. We have an amazing platform that Ravi and our core engineering team have built. And we've talked about that, and I think Ravi mentioned that, the ease of SQL and applying that to a documented oriented database. and combining some of those capabilities with the ease of use. The ability that you can get up and running, signing up for our free trial. Couple of minutes later, you've got a database endpoint that is fully managed by Couchbase. And so we're doing the monitoring. We're doing alerting. We have calls to action based off what events are occurring within the database environment, ensuring it's always available, as well as doing kind of some of the mundane tasks of backup and recovery, scaling the environment upgrades and so forth. So it's really about ease of use making it, leveraging our incredibly robust broad platform, and then making that in different consumable model for our customers and developers and getting started really easily. The other thing that we've done, is really leveraged the best practices over the last 10 or 11 years, if some of the largest enterprises in the world using Couchbase for the mission critical applications. So we've codified those best practices. And that's how we keep that service high performant, always on, highly available. And that's one of the core value propositions that we're able to bring with Capella. It's really that management capability, global visibility of your clusters, coupled with what we believe is the best, no SQL database in the marketplace today. >> What about, what about costs total cost of ownership as you scale, a lot of times when you scale out and you get diseconomies of scale, it's kind of like, you know, you get that negative curve. What are you seeing? >> Yeah, we've done third party benchmark studies, which have proven out how we were able to linearly scale the environment and continue on that curve, as you add nodes, you're getting that incremental performance that you would expect. The other thing that we do that's really unique within in Couchbase is, our multi-dimensional scaling. And this allows you to place our services, things like data index query, full-text search, indexes and analytics. You can co-locate those on single nodes within the cluster, or you can have dedicated nodes for each one of those services. The reason that is important is, you get work-life isolation for those specific services within our cluster. The other thing that you can do is, you can match the compute infrastructure to the needs of each one of those services. So some services like query are much more core compute intensive, and that allows you to have a specific instance type that is optimized for that, reducing your cost. Indexes, where do you want very fast performance? You may want to have a higher amount of memory relative to the number, of course. So that ability to mix and match the infrastructure within the existing cluster, allows us to lower overall costs. That coupled with our blazing fast performance with our in-memory architecture, allows people to get incredible performance at scale. What we've proven out in the study that I mentioned earlier is we have that linear scalability, and you're able to do more for less, at the end of the day. You're getting more operations per second, per dollar, if you want to use that as a metric data. >> Thank you for that. What do customers need to think about when they want to get started with Capella? How difficult is it for people to jump in? >> It is incredibly simple. It's as simple as going to couchbase.com Clicking on start your free trial. You go into that free trial. You provide a minimal set of information for us, and it's literally a few clicks and you're going to have a database endpoint within three minutes. And that's really been a foundation of, of what we've been focused on over the last six to nine months is removing any friction we can in the process. Cause our goal is to give a firm a tremendous user experience and get people up and running as quickly as possible. So we're really, really proud of that. And then from a paid offering perspective, we have a number of offerings which are really aligned to the needs of each customer. Some individuals who want a larger cluster and they want to be able to pay for that, we've optimized service levels around that, in terms of level of support and the features that we think are appropriate for a dev cycle, a test cycle, and then inner production. And lastly, we'll be announcing a number of promotional starter pack bundles. Really trying to couple the overall service that we have with Capella, with some of our expertise. So helping new users get up and running in terms of things like index definitions, what's the best way to do document design and schema within Couchbase. Our end goal, is to match these services and bundles with the life cycle of application development. So in my development phase, what's the offering for me, as I move for production readiness, what services capabilities I need and then production and the ongoing, if I expand my use. So we've been really focused on how do we get people up and running as quickly as possible and how do we get them to production as quickly as possible at the lowest total cost. >> That's nice. That's a nice accelerant for, for customers. So as you heard upfront, I did a little research about the name, Capella. How did you choose it and why? >> Well, one thing I learned early in my career is naming is not a strong suit of mine. I leave that to John our Chief Marketing Officer in the overall team. We all have opinions, but I trust John. And we went through, I think it was over 60 names, seven rounds of debate to come up with Capella. But we wanted a name of strength. We liked the alliteration, Couchbase and Capella together. One of the little facts may have tipped it over is, I believe in Latin, it means little goats. So we kind of played, I'm from the bay area. So I was thinking to Jerry Rice, goat, greatest of all times. So that was nice play on that also. But I leave it to them and really happy with the overall name, love the, literation, love some of the hidden meanings within that. And we're really, really excited about getting it going. So you wouldn't want me to pick the name. I get a vote, but I would say my overall influence is a little bit lower than where John's is and, and Matt Cain, who I know you spoke with previously. >> I love it. Jerry Rice definitely is the little goat. I'm from New England. So of course, we think Tom Brady is the big goat. >> I know, I grew up in that Joe Montana era. So maybe you can take that offline after this interview, we're going to have around debate, but I guess a Superbowl trophies are the ultimate measure at the end of the day. >> Oh wait, I got a little stat for you. So, so Capella is also one of the 88 modern constellations as adopted by the international astronomical union. I.e not one of the ancient constellations. Pretty clever, right? >> Yeah, exactly. >> Scott, it's great to have you on the cube. Thanks so much, really appreciate it. >> Thank you so much. I really appreciate it All right. Thank you for watching. Our pleasure. Thank you for watching The Cubes coverage of Couchbase Connect 2021. Keep it right there for more great content. (upbeat music)

(upbeat music) >> This is Dave Vellante, and I'd like to welcome you back to The Cube's coverage of Couchbase ConnectONLINE, where the theme of this event is Modernize Now. And one of the big announcements is Capella, which of course, as you all undoubtedly know, is the brightest star in the constellation Auriga, which is Latin for Charioteer. Yup, you can find that in the constellation, that constellation in the night sky in late Feb, early March, in the Northern hemisphere. So with that little tidbit, I'd like to welcome in Scott Anderson to The Cube, who's the Senior Vice President of Product Management and Business Operations at Couchbase. Scott, welcome. Good to see you. >> Thank you very much. Thanks for having me. >> Yeah, it's our pleasure. So, you've launched Couchbase Capella. If I understand correctly, it's built on Couchbase server 7, which you launched just a few months ago in the middle of the Summer. Can you give us an overview of Capella? >> Yeah, absolutely. So Couchbase Capella, is our fully managed databases service for enterprise applications. One of the goals of launching Capella and our database as a service offering that we just announced today is, about increasing the accessibility of Couchbase. So, it's about making it easy for a Developer or an Enterprise to get up and running in just a few clicks and a couple of minutes. And about making it more affordable and accessible through the development phase, through the test phase, the production phase. So really it's about ease of use, having the right offerings aligned to the phase of development that a customer's in, and eventually into the production of their enterprise application, leveraging Capella and Couchbase Server 7. >> So let me ask you, I went pretty deep with Ravi on the, the technical side, and I want to understand, what makes Capella different from some of the competitive offerings? Is it the, sort of the fundamentals that I learned from Ravi about how you guysbhave really done a awesome focus on SQL. But been able to maintain acid compliance, deal with distributed architectural challenges, and then bringing that over to database as a service? Is that the fundamental? What are some of the other differentiators? >> Yeah, that, that is the fundamental. We have an amazing platform that Ravi and our core engineering team have built. And we've talked about that, and I think Ravi mentioned that, the ease of SQL and applying that to a documented oriented database. and combining some of those capabilities with the ease of use. The ability that you can get up and running, signing up for our free trial. Couple of minutes later, you've got a database endpoint that is fully managed by Couchbase. And so we're doing the monitoring. We're doing alerting. We have calls to action based off what events are occurring within the database environment, ensuring it's always available, as well as doing kind of some of the mundane tasks of backup and recovery, scaling the environment upgrades and so forth. So it's really about ease of use making it, leveraging our incredibly robust broad platform, and then making that in different consumable model for our customers and developers and getting started really easily. The other thing that we've done, is really leveraged the best practices over the last 10 or 11 years, if some of the largest enterprises in the world using Couchbase for the mission critical applications. So we've codified those best practices. And that's how we keep that service high performant, always on, highly available. And that's one of the core value propositions that we're able to bring with Capella. It's really that management capability, global visibility of your clusters, coupled with what we believe is the best, no SQL database in the marketplace today. >> What about, what about costs total cost of ownership as you scale, a lot of times when you scale out and you get diseconomies of scale, it's kind of like, you know, you get that negative curve. What are you seeing? >> Yeah, we've done third party benchmark studies, which have proven out how we were able to linearly scale the environment and continue on that curve, as you add nodes, you're getting that incremental performance that you would expect. The other thing that we do that's really unique within in Couchbase is, our multi-dimensional scaling. And this allows you to place our services, things like data index query, full-text search, indexes and analytics. You can co-locate those on single nodes within the cluster, or you can have dedicated nodes for each one of those services. The reason that is important is, you get work-life isolation for those specific services within our cluster. The other thing that you can do is, you can match the compute infrastructure to the needs of each one of those services. So some services like query are much more core compute intensive, and that allows you to have a specific instance type that is optimized for that, reducing your cost. Indexes, where do you want very fast performance? You may want to have a higher amount of memory relative to the number, of course. So that ability to mix and match the infrastructure within the existing cluster, allows us to lower overall costs. That coupled with our blazing fast performance with our in-memory architecture, allows people to get incredible performance at scale. What we've proven out in the study that I mentioned earlier is we have that linear scalability, and you're able to do more for less, at the end of the day. You're getting more operations per second, per dollar, if you want to use that as a metric data. >> Thank you for that. What do customers need to think about when they want to get started with Capella? How difficult is it for people to jump in? >> It is incredibly simple. It's as simple as going to couchbase.com Clicking on start your free trial. You go into that free trial. You provide a minimal set of information for us, and it's literally a few clicks and you're going to have a database endpoint within three minutes. And that's really been a foundation of, of what we've been focused on over the last six to nine months is removing any friction we can in the process. Cause our goal is to give a firm a tremendous user experience and get people up and running as quickly as possible. So we're really, really proud of that. And then from a paid offering perspective, we have a number of offerings which are really aligned to the needs of each customer. Some individuals who want a larger cluster and they want to be able to pay for that, we've optimized service levels around that, in terms of level of support and the features that we think are appropriate for a dev cycle, a test cycle, and then inner production. And lastly, we'll be announcing a number of promotional starter pack bundles. Really trying to couple the overall service that we have with Capella, with some of our expertise. So helping new users get up and running in terms of things like index definitions, what's the best way to do document design and schema within Couchbase. Our end goal, is to match these services and bundles with the life cycle of application development. So in my development phase, what's the offering for me, as I move for production readiness, what services capabilities I need and then production and the ongoing, if I expand my use. So we've been really focused on how do we get people up and running as quickly as possible and how do we get them to production as quickly as possible at the lowest total cost. >> That's nice. That's a nice accelerant for, for customers. So as you heard upfront, I did a little research about the name, Capella. How did you choose it and why? >> Well, one thing I learned early in my career is naming is not a strong suit of mine. I leave that to John our Chief Marketing Officer in the overall team. We all have opinions, but I trust John. And we went through, I think it was over 60 names, seven rounds of debate to come up with Capella. But we wanted a name of strength. We liked the alliteration, Couchbase and Capella together. One of the little facts may have tipped it over is, I believe in Latin, it means little goats. So we kind of played, I'm from the bay area. So I was thinking to Jerry Rice, goat, greatest of all times. So that was nice play on that also. But I leave it to them and really happy with the overall name, love the, literation, love some of the hidden meanings within that. And we're really, really excited about getting it going. So you wouldn't want me to pick the name. I get a vote, but I would say my overall influence is a little bit lower than where John's is and, and Matt Cain, who I know you spoke with previously. >> I love it. Jerry Rice definitely is the little goat. I'm from New England. So of course, we think Tom Brady is the big goat. >> I know, I grew up in that Joe Montana era. So maybe you can take that offline after this interview, we're going to have around debate, but I guess a Superbowl trophies are the ultimate measure at the end of the day. >> Oh wait, I got a little stat for you. So, so Capella is also one of the 88 modern constellations as adopted by the international astronomical union. I.e not one of the ancient constellations. Pretty clever, right? >> Yeah, exactly. >> Scott, it's great to have you on the cube. Thanks so much, really appreciate it. >> Thank you so much. I really appreciate it All right. Thank you for watching. Our pleasure. Thank you for watching The Cubes coverage of Couchbase Connect 2021. Keep it right there for more great content. (upbeat music)

>> From theCUBE studios in Palo Alto and Boston, bringing you data-driven insights from theCUBE and ETR, This is Breaking Analysis with Dave Vellante. >> The last 10 months have forced upon us a new digital reality. If you weren't a digital business, you were basically out of business. Hello everybody. This is Dave Vellante and welcome to this week's Wikibon CUBE Insights powered by ETR. In this Breaking Analysis, we're going to share with you some fresh data from ETR on CIO spending, which is giving us a lot of optimism for 2021. We'll also set forth our thinking on the new digital economy, and really talk a little bit about where we see some of the opportunities and some of the spending and how those shifts are going to occur in the near term and midterm and even long term. Let's bring up sort of the first set of talking points that I want to share with you. 2020 has been a year of instant pivots, as we all know, and it's forced us to march toward a new digital reality, digital transformation, as everybody talks about, has been compressed by two to three years, but it's really been a Petri dish for everybody. Now, earlier this year, and we've been consistent since we first came out with this forecast of minus four to five percent in IT spending this year. The survey data suggests that, and even though Q3 saw a big bounce back in spending in GDP, we've still really maintained that -4 to -5%. We're seeing a comeback in the lockdown and the virus, and as such, we, you know, maintain that conservative forecast. Our current 2% growth for 2021 appears to be conservative based on the latest data we have. It could be as high as four to 5% growth in 2021. And we'll update that formally in January, but hold that thought. As part of that, as I said, we've seen accelerated digital business initiatives, led to really strong pockets in many sectors. We've seen that in video conferencing, in laptops, obviously, we've seen that in certain security sectors that we've detailed, like identity access management, like endpoint, like cloud security, cloud itself, and we've seen a big trend toward application modernization. So those sectors of the business, including those other data sectors, we certainly see the ascendancy of Snowflake, Snowflake closed the day on Friday, evaluation of Snowflake on Friday was now above that of ServiceNow, Snowflake's valuation is currently around the same, just slightly under that of IBM's, think about that. A company that was formed in 2015 is now as valuable almost as IBM, a 100 plus year old company. That's quite amazing to think about, why is that? It's because data now is at the center of the universe, and that's obviously what Snowflake's transformation is all about. The pace of the vaccine distribution appears to be accelerated. But as I said earlier, winter is coming in the Northern Hemisphere, and that's causing some concern. But overall, ETR survey data suggests that there's really positive signs in recovery, and we'll get into that. Companies are learning to leverage the cloud, cloud migration was a big priority in the last 10 months, that, including security, and people are realizing that, "Wow, we can actually change the operating model with cloud and it's helping with our agility." And we're going to show you some data that really supports that. As I kind of alluded to earlier, COVID created this massive digital business proof of concept, and the learnings from that experiment are going to get operationalized in 2021. And it's going to be a rapid year of invention and reinvention. And so that's why we think IT spending could snap back dramatically in 2021. Now ETR, when it does its surveys, will oftentimes do drill downs. And I want to share now with you, the next slide shows some drill downs from the COVID study, ETR since early this year, since March has been doing COVID studies, we've been reporting on that extensively, ETR was really the first to report that whole work from home pivot really, really early on in the cycle. So we use that as sort of a harbinger of things to come. This slide asked organizations in the past 12 months, "What is your thinking on when spending is going to bounce back to 2019 levels?" And that's really what's shown in this chart. So, you know, pre-COVID levels really was the question. "When does your organization expect IT budgets to return to pre-COVID levels?" You can see here on the left-hand side, 11% have said they increased budgets since the start of COVID. And those are the ones that are really in the best position. Certain e-commerce companies, those where COVID was actually a tailwind. 24% said, "We're already back to those 2019 pre-COVID levels." And then you can see as well, approximately 30% say that within 12 months they'll be back. 22% say within 24 months. And I know that's a big chunk of the economy in the CIO spend base, but only 4% that it's going to be more than two years. So a very large portion of the survey base, which is over 1400, suggest that there's optimism in the near term. Now, what we want to show you in the next chart is the factors that really enabled the organizations to be agile and resilient during COVID-19. Now it's no surprise that 84% said that being prepared for a remote workforce. Now, were it not for technology, we really would not have been able to respond to COVID in the way in which we have. And I think everybody really understands that. 44% said business continuity plans as we've reported in the past, many people told us their business continuity was far too DR-focused, they've shifted that focus in the last 10 months, really toward being able to pivot their businesses, and identify new opportunities. And so, that's something that we feel is going to carry through into 2021 and beyond. 39% said C-suite flexibility, I think this is a really important point, where the C-suite recognized the importance of investing in technology, and really understanding that it's now a strategic enabler, of course always has been, but now more than ever. You can see also that 30% said budget flexibility enabled them, and that is a function of we've got low interest rates, many many corporations if not most corporations improved their balance sheets by tapping corporate debt. And only 27% said emerging technologies, I shouldn't say "only", 27% cited emerging technologies as a primary factor that enabled their business resiliency, and I would argue that many of that emerging technologies probably falls into that 84% on that left-hand bar. So overall, you can see that the priorities of CIOs have shifted in the last 10 months, and it's not just going to snap back to where we were pre-COVID. As we've said many times, and many believe, these are permanent changes. Now, you may be asking, "Okay, where is the action going? Where are people spending? What are they adopting as new technologies?" And that's really what we want to show you here in this next slide. So what this slide does, you may recall the net score methodology that ETR uses. Net score is a measure of spending momentum. Basically, what it does is it breaks down those companies that are spending more, or a company, it breaks down the percentage of that company that's spending more versus spending less on a particular technology. So it's really, there's several components to it, one is new adoptions, the other is spending more, the other is flat, spending less, or retiring. So what we're isolating here in this chart is the new adoptions. And you can see here, that we've highlighted a few areas, container orchestration and container platforms. You can see those high, and we're showing three survey bases, October 19, July 20, which is the blue, and October 20, which is the yellow. And yes, while the spending is down from some of the previous highs, you can see the elevated levels of container orchestration, container platforms, machine learning and AI, and robotic process automation. What is that telling you? It says that people are modernizing their applications portfolios, they're applying machine learning and machine intelligence to get more value from data, AI plus data plus cloud is that new innovation cocktail that we've talked about a lot. And then we've also talked about the automation mandate, that we haven't seen the productivity improvements in the US and Europe over the last two decades that we would've liked to seen, so there really is an automation mandate, that's what the RPA adoption is all about. So really trying to drive those productivity gains. Now interestingly, you may look at this slide and say "Wow, look at how low cloud is. We hear all the time that cloud migration is a big priority, why is cloud so low?" So let's bring up the next chart and address that. This chart takes that increased spend portion of the net score, and remember I said it's broken down adoptions, spend more, spend less, et cetera, this is the increased spend, the spend more. Now look at cloud computing, it's up in the 46% range, that's 46% of the customers that responded in the cloud computing sector said they're increasing spending on cloud. So how do you interpret that from the previous slide? They're already in the cloud, that's why the new adoptions was low, 'cause everybody's doing some form of cloud, but this is a real tell sign. People are dramatically increasing their spending in cloud relative to some of these other areas, of course, same with container orchestration, container platforms, all about developer productivity, write once, run anywhere type of thing, it hedges for multicloud, bringing on-prem infrastructure into the cloud or on-prem apps into the cloud, that's what sort of you're seeing there with container. So this is the sort of 40% club, cloud computing, containers, machine learning and AI up at 40% spending more, and then again, robotic process automation. So, that sort of explains the cloud component, and you can see the container, the container orchestration and the automation piece also at very elevated levels. Let me wrap here by talking about some factors to watch, and I'll highlight them on this slide. Look, the propensity toward a lockdown definitely creates uncertainty and caution, you've got a new administration, there seems to be more of a willingness to lock down, the slowdown the economy, there's still uncertainty around fiscal stimulus, although it looks like that's going to be addressed hopefully in the near term. But there's still uncertainty around that. While that does potentially dampen spend for Q4, because of that uncertainty, it also creates further pent-up demand. As I said before, there's been 10 months of learnings from this forced march to digital transformations, and that is informing 2021 tactical plans, and then even longer term plans, long term planning has changed. When you talk to the C-suite and the conversation's going on at boards of directors, speed and the ability to turn on a dime, they're now fundamental principles that are being designed into businesses. This is a mainstay of the digital economy, we are entering a new era of digital business, and there's going to be the haves and the have nots. And the have nots are going to disappear, and the haves are going to do better. As I say, boards and CEOs, they got a glimpse of the future in 2021, but it was forced on them, it really wasn't planned. But it was an awesome Petri dish and experiment to understand what works, what doesn't, and they're now going to double down on those things that are sure bets. And those that don't act, as I say, they're going to be out of business. At the macro, yes, you've got, again, haves and have nots, and the have nots are going to potentially dampen, you're going to see companies that really got hurt, are going to constrict spending, no question, and that could dampen spending at the macro. But in our view, the survivors are going to prop up spending in 2021, it could be significantly above our initial estimates of 2%, could be as high as double that, maybe even four to 5% in 2021. So we're going to continue to watch that, we'll continue to check out the survey data, we'll have a complete update in the January survey, and in the meantime, we'll continue to report on the latest trends, both from the CUBE community, and also from ETR. So that's it for now, thanks for watching, don't forget, all these episodes are available on podcasts, wherever you listen. I publish weekly on SiliconAngle.com and Wikibon.com, check out ETR+ for all the survey action, and please do comment on my LinkedIn posts, you can also reach me @DVellante on Twitter, or you can email me at David.Vellante@SiliconAngle.com. This is Dave Vellante for theCUBE Insights powered by ETR, thanks for watching, everybody, see you next time. (calm music)

>> Live from Las Vegas it's theCUBE covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel, and their ecosystem partners. >> And welcome back to Las Vegas. We're in the Sands right now at AWS re:Invent. Seven kind of satellite venues also encompassing this show with 40,000 plus attendees. This show getting bigger and better than ever, and theCUBE back for out seventh AWS re:Invent. Along with Justin Warren, I'm John Walls. Good to have you have you here in the Sands along with Holger Reisinger who's the SVP of Large Enterprise Solutions at Jabra. And Holger thanks for joining us here on theCUBE. >> Thanks for having me. >> I think with all this noise we could use some headsets right now, right? >> I totally agree. >> I think we could, yeah. Alright, let's talk about the, it's a situation we've all faced, right? You're making a call about a particular problem to a company you get into the call center, your focus right now is making that interaction work. To make it go smoothly, to make it go well. Tell us what Jabra is doing to make us hang up that phone and feel a lot better about that experience. So, first and foremost, when customers are calling contact center operations these days they have been on a pretty intense journey, on a digital journey collecting a lot of information. So when they call us, it's because it really is important to them, it matters. For the agent that means that the call is much more complex because we have a lot of systems in place that automate basic conversations, maybe handled by a robot, so when it hits an agent then it's probably a more heated conversation, more emotional. And this is where we try to make a difference with out devices. >> Yeah, so tell us more about that. I mean Jabra is well known for being a headset manufacturer and you're doing a lot of work with software. We were talking just before the segment about some of what you're doing there around sentiment analysis which is pretty interesting. But a lot of what you're talking about here is around people and process and less about the technology. So, what's Jabra's vision for your role wtih helping customers about that entire experience and not just about the technology? >> Well I would say it's always a combination of technology. When it comes to people it's about behavior, and then when it comes to being the face to the customers maybe using the opportunity to get engaged with your customers by them escalating something to you. I think it's about culture, how you want your company to be portrayed in the public. So I would say it's always a combination of those things. Our devices per definition we call them variable technology. They are personal devices. They are more and more intelligent nowadays, right? So they're not just an accessory to a phone system transmitting human audio. They are now a business critical element of the whole infrastructure. The are digital. They are intelligent. And they can probably also listen to how people say things and not just what has been said in that conversation. >> So what is it about Jabra's technology that augments that human experience? So, I'm calling an agent, and I want to talk to them about a problem which is very personal to me, sometimes I'm grumpy about it because I've had a bad experience. So what is it about Jabra's technology that helps that agent to resolve the issue so that I, again as John said, that I walk away from that experience and I feel good about myself? >> Yes. So first of all this happens because we are integrated into something like Amazon Connect, right? Amazon Connect running on AWSS, a lot of technology in the backend working for that situation so you can get the call transcribed. You can look for certain key words. This is very much about what people are saying. We can provide very high intelligibility or clarity of human voice. So we have algorithms, AI technology that can also listen to how people say things. So there's a big difference if you apply let's say irony or sarcasm. So that is an information we can pass on to the agent to be more alert, to be more immersed in the conversation he has with the customer. And this is mainly coming by the signal quality we deliver thorough our devices. So we have crystal clear human voice. We can stream that as raw information directly to the cloud, and it can be immediately analyzed and handled there. >> And can you detect tone? Or emotion, sentiment, those kinds of things? >> Yes, exactly. >> If my volume goes up, or I can say the same thing three different ways, and you can discern maybe my emotional tone by assigning what? >> That's exactly what we are doing. So we can extract human sentiment from human voice. And it doesn't require a lot of data, sometimes one and a half two seconds are enough. It's language independent by the way. So that's really exciting. So we are providing proof of concept where you can as a new KPI for the contact center let's say measure agent friendliness against customer anger. So instead of doing a lot of recording and transcription, analytics, you can measure that in real time and show it as a graph in front of the agent, and the agent can adjust to that conversation. >> Now, there's a lot of face-to-face going on here, right? We have 40,000 people; a lot of pressing to the flesh. But as you know, I mean there's a lot of communication and a lot of meetings that are migrating online, right? So I assume you're pretty active in that space as well. >> Sure. So I mean, you're now leaving the contact center space and in general, saying having online conversations, online collaboration not just between agent. Yes, I mean that's how our core business. We are the leader in unified communication. In the old days it was you and me talking, having conversation. Now you collaborate; you share applications. You use technology giants like Amazon Chime. You might add video to it. So we deliver the crystal clear audio for these type of collaboration situations. >> As someone who lives on the other side of the world it's quite handy having these remote technologies to be able to converse with my colleagues up here in the Northern Hemisphere. So certainly being able to hear them clearly is quite important. >> But there's also an issue associated with that, right? I mean we put people into open offices because we want them to collaborate more locally, and that actually causes a problem for most of the people like here in these surroundings, it's extremely noisy. So I have difficulties to right now concentrate on the questions you are asking me. And it's the same thing in an open office, right? So you try to focus first and foremost on the conversation you are having with the person on the line. So we need to help you to basically cancel out the surrounding noise. At the same time we want to provide privacy for that dialog so we also have to reduce the noise in that conversation that the person on the phone we are talking to feels safe and secure about the conversation he is having with me. So managing noise in this open office environment, managing noise on the line is the key technology we are dealing with, and our devices are providing. >> So you're here at AWS. You're here clearly talking about your partnership with AWS and your use of cloud technologies. So what would you like to see from Amazon that would help you realize the vision for Jabra? >> So I mean we have a very close cooperation with Amazon and pushing Connect, and pushing digital contact centers. Pushing the ease of making things more digital, and by that easy to use as a company, but also to understand as a user of that technology. This is exactly the direction we want to want to be and want to go. Because our devices are mainly digital nowadays. I mean there's a lot of computing that is happening in the device in order to get the best sound the best pick-up of human voce, but also provide crystal clear sound when we receive that audio. So anything Amazon is doing to drive things digital is definitely in our favor. But also what we like to do more is engaging with Amazon developers. So our strategy is to be very open with any technology, including the one from Amazon, being agnostic to what our joint customers are using, providing SDKs and APIs for developers that are simple for them to use. And them building together a great solution for out joint customers. >> You know we always like to close down with the thought about where do you go from here? Or what hurdle do you want to get over next? Cause you've talked about a lot of fantastic capabilities that you already have, what do you want to do better? And how will AWS help get you there? >> So I mean provide the right information exactly to the context the caller and the agent is in. That we can really augment AI and all the technology that works in the backend with the brain of the agent and with the user. So make it easy for them have great conversations with each other. Augment computer intelligence and human intelligence for great customer conversations, ultimately leading to better satisfaction. >> And how does AWS play into that then? >> I mean that's the data center. This is where all the information is sitting. It can become audible. It can be over-layed to the conversation the agent is having so it can provide useful information while we are listening to the customer because our hearing is very powerful. It's faster than our vision. It is multitasking; we can have 1.6 conversation at a time so we can listen to a machine, we can listen to the person we are talking to, and we can provide smarter information and make better decisions based on that. >> I kind of feel like we're having 50 conversations at once right now, right? >> Yeah, that's challenging of us for sure. >> Holger thanks for being with us. >> Thanks for having me guys. >> We appreciate that. Thanks for walking us through it. >> Thanks >> We're at AWS re:Invent, and we are theCUBE, and we're live in Las Vegas. (electronic music)

>> Narrator: From Berlin, Germany, it's theCUBE, covering Dataworks Summit Europe 2018. Brought to you by Hortonworks. >> Well hello, welcome to the Cube. I'm James Kobielus, I'm the lead analyst for the Wikibon team within SiliconANGLE Media. I'm your host today here at Dataworks Summit 2018 in Berlin, Germany. We have one of Hortonworks' customers in South America with us. This is Fernando Lopez of Quanam. He's based in Montevideo, Uruguay. And he has won, here at the conference, he and his company have won an award, a data science award so what I'd like to do is ask Fernando, Fernando Lopez to introduce himself, to give us his job description, to describe the project for which you won the award and take it from there, Fernando. >> Hello and thanks for the chance >> Great to have you. >> I work for Quanam, as you already explained. We are about 400 people in the whole company. And we are spread across Latin America. I come from the kind of headquarters, which is located in Montevideo, Uruguay. And there we have a business analytics business unit. Within that, we are about 70 people and we have a big data and artificial intelligence and cognitive computing group, which I lead. And yes, we also implement Hortonworks. We are actually partnering with Hortonworks. >> When you say you lead the group, are you a data scientist yourself, or do you manage a group of data scientists or a bit of both? >> Well a bit of both. You know, you have to do different stuff in this life. So yes, I lead implementation groups. Sometimes the project is more big data. Sometimes it's more data science, different flavors. But within this group, we try to cover different aspects that are related in some sense with big data. It could be artificial intelligence. It could be cognitive computing, you know. >> Yes, so describe how you're using Hortonworks and describe the project for which you won, I assume it's a one project, for which you won the award, here at this conference. >> All right, yes. We are running several projects, but this one, the one about the prize, is one that I like so much because I'm actually a bioinformatics student so I have a special interest in this one. >> James: Okay. >> It's good to clarify that this was a joint effort between Quanam and GeneLifes. >> James: Genelabs. >> GeneLifes. >> James: GeneLifes. >> Yes, it's genetics and bioinformatics company. >> Right. >> That they specialize-- >> James: Is that a Montevideo based company? >> Yes. In a line, they are a startup that was born from the Institut Pasteur, but in Montevideo and they have a lot of people, who are specialists in bioinformatics, genetics, with a long career in the subject. And we come from the other side, from big data. I was kind of in the middle because of my interest with bioinformatics. So something like one year and a half ago, we met both companies. Actually there is a research, an innovation center, ICT4V. You can visit ICT4V.org, which is a non-profit organization after an agreement between Uruguay and France, >> Oh okay. >> Both governments. >> That makes possible different private or public organizations to collaborate. We have brainstorming sessions and so on. And from one of that brainstorming sessions, this project was born. So, after that we started to discuss ideas of how to bring tools to the medical genetiticists in order to streamline his work, in order to put on the top of his desktop different tools that could make his work easier and more productive. >> Looking for genetic diseases, or what are they looking for in the data specifically? >> Correct, correct. >> I'm not a geneticist but I try to explain myself as good as I can. >> James: Okay, that's good. You have a great job. >> If I am-- >> If I am the doctor, then I will spend a lot of hours researching literature. Bear in mind that we have nearly 300 papers each day, coming up in PubMed, that could be related with genetics. That's a lot. >> These are papers in Spanish that are published in South America? >> No, just talking about, >> Or Portuguese? >> PubMed from the NIH, it's papers published in English. >> Okay. >> PubMed or MEDLINE or-- >> Different languages different countries different sources. >> Yeah but most of it or everything in PubMed is in English. There is another PubMed in Europe and we have SciELO in Latin America also. But just to give you an idea, there's only from that source, 300 papers each day that could be related to genetics. So only speaking about literature, there's a huge amount of information. If I am the doctor, it's difficult to process that. Okay, so that's part of the issue. But on the core of the solution, what we want to give is, starting from the sequence genome of one patient, what can we assert, what can we say about the different variations. It is believed that we have around, each one of us, has about four million mutations. Mutation doesn't mean disease. Mutation actually leads to variation. And variation is not necessarily something negative. We can have different color of the eyes. We can have more or less hair. Or this could represent some disease, something that we need to pay attention as doctors, okay? So this part of the solution tries to implement heuristics on what's coming from the sequencing process. And this heuristics, in short, they tell you, which is the score of each variant, variation, of being more or less pathogenic. So if I am the doctor, part of the work is done there. Then I have to decide, okay, my diagnosis is there is this disease or not. This can be used in two senses. It can be used as prevention, in order to predict, this could happen, you have this genetic risk or this could be used in order to explain some disease and find a treatment. So that's the more bioinformatics part. On the other hand we have the literature. What we do with the literature is, we ingest this 300 daily papers, well abstracts not papers. Actually we have about three million abstracts. >> You ingest text and graphics, all of it? >> No, only the abstract, which is about a few hundred words. >> James: So just text? >> Yes >> Okay. >> But from there we try to identify relevant identities, proteins, diseases, phenotypes, things like that. And then we try to infer valid relationships. This phenotype or this disease can be caused because of this protein or because of the expression of that gene which is another entity. So this builds up kind of ontology, we call it the mini-ontology because it's specific to this domain. So we have kind of mini-semantic network with millions of nodes and edges, which is quite easy to interrogate. But the point is, there you have more than just text. You have something that is already enriched. You have a series of nodes and arrows, and you can query that in terms of reasoning. What leads to what, you know? >> So the analytical tools you're using, they come from, well Hortonworks doesn't make those tools. Are they coming from another partner in South America? Or another partner of Hortonworks' like an IBM or where does that come from? >> That's a nice question. Actually, we have an architecture. The core of the architecture is Hortonworks because we have scalability topics >> James: Yeah, HDP? >> Yes, HDFS, High-von-tessa, Spark. We have a number of items that need to be easily, ultra-escalated because when we talk about genome, it's easy to think about one terrabyte per patient of work. So that's one thing regarding storage and computing. On the other hand, we use a graph database. We use Neo4j for that. >> James: Okay the Neo4j for graph. The Neo4j, you have Hortonworks. >> Yes and we also use, in order to process natural language processing, we use Nine, which is based here in Berlin, actually. So we do part of the machine learning with Nine. Then we have Neo4j for the graph, for building this semantic network. And for the whole processing we have Hortonworks, for running this analysis and heuristics, and scoring the variance. We also use Solr for enterprise search, on top of the documents, or the conclusions of the documents that come from the ontology. >> Wow, that's a very complex and intricate deployment. So, great, in terms of the takeaways from this event, we only just have a little bit more time, what of all the discussions, the breakouts and the keynotes did you find most interesting so far about this show? Data stewardship was a theme of Scott Knowles, with that new solution, you know, in terms of what you're describing as operational application, have you built out something that can be deployed, is being deployed by your customers on an ongoing basis? It wasn't a one-time project, right? This is an ongoing application they can use internally. Is there a need in Uruguay or among your customers to provide privacy protections on this data? >> Sure. >> Will you be using these solutions like the data studio to enable a degree of privacy, protection of data equivalent to what, say, GDPR requires in Europe? Is that something? >> Yes actually we are running other projects in Uruguay. We are helping the, with other companies, we are helping the National Telecommunications Company. So there are security and privacy topics over there. And we are also starting these days a new project, again with ICT4V, another French company. We are in charge of their big data part, for an education program, which is based on the one laptop per child initiative, from the times of Nicholas Negroponte. Well, that initiative has already 10 years >> James: Oh from MIT, yes. >> Yes, from MIT, right. That initiative has already 10 years old in Uruguay, and now it has evolved also to retired people. So it's a kind of going towards the digital society. >> Excellent, I have to wrap it up Fernando, that's great you have a lot of follow on work. This is great, so clearly a lot of very advanced research is being done all over the world. I had the previous guest from South Africa. You from Uruguay so really south of the Equator. There's far more activity in big data than, we, here in the northern hemisphere, Europe and North America realize so I'm very impressed. And I look forward to hearing more from Quanam and through your provider, Hortonworks. Well, thank you very much. >> Thank you and thanks for the chance. >> It was great to have you here on theCUBE. I'm James Kobielus, we're here at DataWorks Summit, in Berlin and we'll be talking to another guest fairly soon. (mood music)