>> Announcer: theCube presents HPE Discover 2022, brought to you by HPE. >> Hey, everyone. Welcome back to Las Vegas. This is Lisa Martin with Dave Vellante live at HPE Discover '22. Dave, it's great to be here. This is the first Discover in three years and we're here with about 7,000 of our closest friends. >> Yeah. You know, I tweeted out this, I think I've been to 14 Discovers between the U.S. and Europe, and I've never seen a Discover with so much energy. People are not only psyched to get back together, that's for sure, but I think HPE's got a little spring in its step and it's feeling more confident than maybe some of the past Discovers that I've been to. >> I think so, too. I think there's definitely a spring in the step and we're going to be unpacking some of that spring next with one of our alumni who joins us, Keith White's here, the executive vice president and general manager of GreenLake Cloud Services. Welcome back. >> Great. You all thanks for having me. It's fantastic that you're here and you're right, the energy is crazy at this show. It's been a lot of pent up demand, but I think what you heard from Antonio today is our strategy's changing dramatically and it's really embracing our customers and our partners. So it's great. >> Embracing the customers and the partners, the ecosystem expansion is so critical, especially the last couple of years with the acceleration of digital transformation. So much challenge in every industry, but lots of momentum on the GreenLake side, I was looking at the Q2 numbers, triple digit growth in orders, 65,000 customers over 70 services, eight new services announced just this morning. Talk to us about the momentum of GreenLake. >> The momentum's been fantastic. I mean, I'll tell you, the fact that customers are really now reaccelerating their digital transformation, you probably heard a lot, but there was a delay as we went through the pandemic. So now it's reaccelerating, but everyone's going to a hybrid, multi-cloud environment. Data is the new currency. And obviously, everyone's trying to push out to the Edge and GreenLake is that edge to cloud platform. So we're just seeing tons of momentum, not just from the customers, but partners, we've enabled the platform so partners can plug into it and offer their solutions to our customers as well. So it's exciting and it's been fun to see the momentum from an order standpoint, but one of the big numbers that you may not be aware of is we have over a 96% retention rate. So once a customer's on GreenLake, they stay on it because they're seeing the value, which has been fantastic. >> The value is absolutely critically important. We saw three great big name customers. The Home Depot was on stage this morning, Oak Ridge National Laboratory was as well, Evil Geniuses. So the momentum in the enterprise is clearly present. >> Yeah. It is. And we're hearing it from a lot of customers. And I think you guys talk a lot about, hey, there's the cloud, data and Edge, these big mega trends that are happening out there. And you look at a company like Barclays, they're actually reinventing their entire private cloud infrastructure, running over a hundred thousand workloads on HPE GreenLake. Or you look at a company like Zenseact, who's basically they do autonomous driving software. So they're doing massive parallel computing capabilities. They're pulling in hundreds of petabytes of data to then make driving safer and so you're seeing it on the data front. And then on the Edge, you look at anyone like a Patrick Terminal, for example. They run a whole terminal shipyard. They're getting data in from exporters, importers, regulators, the works and they have to real-time, analyze that data and say, where should this thing go? Especially with today's supply chain challenges, they have to be so efficient, that it's just fantastic. >> It was interesting to hear Fidelma, Keith, this morning on stage. It was the first time I'd really seen real clarity on the platform itself and that it's obviously her job is, okay, here's the platform, now, you guys got to go build on top of it. Both inside of HPE, but also externally, so your ecosystem partners. So, you mentioned the financial services companies like Barclays. We see those companies moving into the digital world by offering some of their services in building their own clouds. >> Keith: That's right. >> What's your vision for GreenLake in terms of being that platform, to assist them in doing that and the data component there? >> I think that was one of the most exciting things about not just showcasing the platform, but also the announcement of our private cloud enterprise, Cloud Service. Because in essence, what you're doing is you're creating that framework for what most companies are doing, which is they're becoming cloud service providers for their internal business units. And they're having to do showback type scenarios, chargeback type scenarios, deliver cloud services and solutions inside the organization so that open platform, you're spot on. For our ecosystem, it's fantastic, but for our customers, they get to leverage it as well for their own internal IT work that's happening. >> So you talk about hybrid cloud, you talk about private cloud, what's your vision? You know, we use this term Supercloud. This in a layer that goes across clouds. What's your thought about that? Because you have an advantage at the Edge with Aruba. Everybody talks about the Edge, but they talk about it more in the context of near Edge. >> That's right. >> We talked to Verizon and they're going far Edge, you guys are participating in that, as well as some of your partners in Red Hat and others. What's your vision for that? What I call Supercloud, is that part of the strategy? Is that more longer term or you think that's pipe dream by Dave? >> No, I think it's really thoughtful, Dave, 'cause it has to be part of the strategy. What I hear, so for example, Ford's a great example. They run Azure, AWS, and then they made a big deal with Google cloud for their internal cars and they run HPE GreenLake. So they're saying, hey, we got four clouds. How do we sort of disaggregate the usage of that? And Chris Lund, who is the VP of information technology at Liberty Mutual Insurance, he talked about it today, where he said, hey, I can deliver these services to my business unit. And they don't know, am I running on the public cloud? Am I running on our HPE GreenLake cloud? Like it doesn't matter to the end user, we've simplified that so much. So I think your Supercloud idea is super thoughtful, not to use the super term too much, that I'm super excited about because it's really clear of what our customers are trying to accomplish, which it's not about the cloud, it's about the solution and the business outcome that gets to work. >> Well, and I think it is different. I mean, it's not like the last 10 years where it was like, hey, I got my stuff to work on the different clouds and I'm replicating as much as I can, the cloud experience on-prem. I think you guys are there now and then to us, the next layer is that ecosystem enablement. So how do you see the ecosystem evolving and what role does Green Lake play there? >> Yeah. This has been really exciting. We had Tarkan Maner who runs Nutanix and Karl Strohmeyer from Equinix on stage with us as well. And what's happening with the ecosystem is, I used to say, one plus one has to equal three for our customers. So when you bring these together, it has to be that scenario, but we are joking that one plus one plus one equals five now because everything has a partner component to it. It's not about the platform, it's not about the specific cloud service, it's actually about the solution that gets delivered. And that's done with an ISV, it's done with a Colo, it's done even with the Hyperscalers. We have Azure Stack HCI as a fully integrated solution. It happens with managed service providers, delivering managed services out to their folks as well. So that platform being fully partner enabled and that ecosystem being able to take advantage of that, and so we have to jointly go to market to our customers for their business needs, their business outcomes. >> Some of the expansion of the ecosystem. we just had Red Hat on in the last hour talking about- >> We're so excited to partner with them. >> Right, what's going on there with OpenShift and Ansible and Rel, but talk about the customer influence in terms of the expansion of the ecosystem. We know we've got to meet customers where they are, they're driving it, but we know that HPE has a big presence in the enterprise and some pretty big customer names. How are they from a demand perspective? >> Well, this is where I think the uniqueness of GreenLake has really changed HPE's approach with our customers. Like in all fairness, we used to be a vendor that provided hardware components for, and we talked a lot about hardware costs and blah, blah, blah. Now, we're actually a partner with those customers. What's the business outcome you're requiring? What's the SLA that we offer you for what you're trying to accomplish? And to do that, we have to have it done with partners. And so even on the storage front, Qumulo or Cohesity. On the backup and recovery disaster recovery, yes, we have our own products, but we also partner with great companies like Veeam because it's customer choice, it's an open platform. And the Red Hat announcement is just fantastic. Because, hey, from a container platform standpoint, OpenShift provides 5,000 plus customers, 90% of the fortune 500 that they engage with, with that opportunity to take GreenLake with OpenShift and implement that container capabilities on-prem. So it's fantastic. >> We were talking after the keynote, Keith Townsend came on, myself and Lisa. And he was like, okay, what about startups? 'Cause that's kind of a hallmark of cloud. And we felt like, okay, startups are not the ideal customer profile necessarily for HPE. Although we saw Evil Geniuses up on stage, but I threw out and I'd love to get your thoughts on this that within companies, incumbents, you have entrepreneurs, they're trying to build their own clouds or Superclouds as I use the term, is that really the target for the developer audience? We've talked a lot about OpenShift with their other platforms, who says as a partner- >> We just announced another extension with Rancher and- >> Yeah. I saw that. And you have to have optionality for developers. Is that the way we should think about the target audience from a developer standpoint? >> I think it will be as we go forward. And so what Fidelma presented on stage was the new developer platform, because we have come to realize, we have to engage with the developers. They're the ones building the apps. They're the ones that are delivering the solutions for the most part. So yeah, I think at the enterprise space, we have a really strong capability. I think when you get into the sort of mid-market SMB standpoint, what we're doing is we're going directly to the managed service and cloud service providers and directly to our Disty and VARS to have them build solutions on top of GreenLake, powered by GreenLake, to then deliver to their customers because that's what the customer wants. I think on the developer side of the house, we have to speak their language, we have to provide their capabilities because they're going to start articulating apps that are going to use both the public cloud and our on-prem capabilities with GreenLake. And so that's got to work very well. And so you've heard us talk about API based and all of that sort of scenario. So it's an exciting time for us, again, moving HPE strategy into something very different than where we were before. >> Well, Keith, that speaks to ecosystem. So I don't know if you were at Microsoft, when the sweaty Steve Ballmer was working with the developers, developers. That's about ecosystem, ecosystem, ecosystem. I don't expect we're going to see Antonio replicating that. But that really is the sort of what you just described is the ecosystem developing on top of GreenLake. That's critical. >> Yeah. And this is one of the things I learned. So, being at Microsoft for as long as I was and leading the Azure business from a commercial standpoint, it was all about the partner and I mean, in all fairness, almost every solution that gets delivered has some sort of partner component to it. Might be an ISV app, might be a managed service, might be in a Colo, might be with our hybrid cloud, with our Hyperscalers, but everything has a partner component to it. And so one of the things I learned with Azure is, you have to sell through and with your ecosystem and go to that customer with a joint solution. And that's where it becomes so impactful and so powerful for what our customers are trying to accomplish. >> When we think about the data gravity and the value of data that put massive potential that it has, even Antonio talked about it this morning, being data rich but insights poor for a long time. >> Yeah. >> Every company in today's day and age has to be a data company to be competitive, there's no more option for that. How does GreenLake empower companies? GreenLake and its ecosystem empower companies to really live being data companies so that they can meet their customers where they are. >> I think it's a really great point because like we said, data's the new currency. Data's the new gold that's out there and people have to get their arms around their data estate. So then they can make these business decisions, these business insights and garner that. And Dave, you mentioned earlier, the Edge is bringing a ton of new data in, and my Zenseact example is a good one. But with GreenLake, you now have a platform that can do data and data management and really sort of establish and secure the data for you. There's no data latency, there's no data egress charges. And which is what we typically run into with the public cloud. But we also support a wide range of databases, open source, as well as the commercial ones, the sequels and those types of scenarios. But what really comes to life is when you have to do analytics on that and you're doing AI and machine learning. And this is one of the benefits I think that people don't realize with HPE is, the investments we've made with Cray, for example, we have and you saw on stage today, the largest supercomputer in the world. That depth that we have as a company, that then comes down into AI and analytics for what we can do with high performance compute, data simulations, data modeling, analytics, like that is something that we, as a company, have really deep, deep capabilities on. So it's exciting to see what we can bring to customers all for that spectrum of data. >> I was excited to see Frontier, they actually achieve, we hosted an event, co-produced event with HPE during the pandemic, Exascale day. >> Yeah. >> But we weren't quite at Exascale, we were like right on the cusp. So to see it actually break through was awesome. So HPC is clearly a differentiator for Hewlett Packard Enterprise. And you talk about the egress. What are some of the other differentiators? Why should people choose GreenLake? >> Well, I think the biggest thing is, that it's truly is a edge to cloud platform. And so you talk about Aruba and our capabilities with a network attached and network as a service capabilities, like that's fairly unique. You don't see that with the other companies. You mentioned earlier to me that compute capabilities that we've had as a company and the storage capabilities. But what's interesting now is that we're sort of taking all of that expertise and we're actually starting to deliver these cloud services that you saw on stage, private cloud, AI and machine learning, high performance computing, VDI, SAP. And now we're actually getting into these industry solutions. So we talked last year about electronic medical records, this year, we've talked about 5g. Now, we're talking about customer loyalty applications. So we're really trying to move from these sort of baseline capabilities and yes, containers and VMs and bare metal, all that stuff is important, but what's really important is the services that you run on top of that, 'cause that's the outcomes that our customers are looking at. >> Should we expect you to be accelerating? I mean, look at what you did with Azure. You look at what AWS does in terms of the feature acceleration. Should we expect HPE to replicate? Maybe not to that scale, but in a similar cadence, we're starting to see that. Should we expect that actually to go faster? >> I think you couched it really well because it's not as much about the quantity, but the quality and the uses. And so what we've been trying to do is say, hey, what is our swim lane? What is our sweet spot? Where do we have a superpower? And where are the areas that we have that superpower and how can we bring those solutions to our customers? 'Cause I think, sometimes, you get over your skis a bit, trying to do too much, or people get caught up in the big numbers, versus the, hey, what's the real meat behind it. What's the tangible outcome that we can deliver to customers? And we see just a massive TAM. I want to say my last analysis was around $42 billion in the next three years, TAM and the Azure service on-prem space. And so we think that there's nothing but upside with the core set of workloads, the core set of solutions and the cloud services that we bring. So yeah, we'll continue to innovate, absolutely, amen, but we're not in a, hey we got to get to 250 this and 300 that, we want to keep it as focused as we can. >> Well, the vast majority of the revenue in the public cloud is still compute. I mean, not withstanding, Microsoft obviously does a lot in SaaS, but I'm talking about the infrastructure and service. Still, well, I would say over 50%. And so there's a lot of the services that don't make any revenue and there's that long tail, if I hear your strategy, you're not necessarily going after that. You're focusing on the quality of those high value services and let the ecosystem sort of bring in the rest. >> This is where I think the, I mean, I love that you guys are asking me about the ecosystem because this is where their sweet spot is. They're the experts on hyper-converged or databases, a service or VDI, or even with SAP, like they're the experts on that piece of it. So we're enabling that together to our customers. And so I don't want to give you the impression that we're not going to innovate. Amen. We absolutely are, but we want to keep it within that, that again, our swim lane, where we can really add true value based on our expertise and our capabilities so that we can confidently go to customers and say, hey, this is a solution that's going to deliver this business value or this capability for you. >> The partners might be more comfortable with that than, we only have one eye sleep with one eye open in the public cloud, like, okay, what are they going to, which value of mine are they grab next? >> You're spot on. And again, this is where I think, the power of what an Edge to cloud platform like HPE GreenLake can do for our customers, because it is that sort of, I mentioned it, one plus one equals three kind of scenario for our customers so. >> So we can leave your customers, last question, Keith. I know we're only on day one of the main summit, the partner growth summit was yesterday. What's the feedback been from the customers and the ecosystem in terms of validating the direction that HPE is going? >> Well, I think the fantastic thing has been to hear from our customers. So I mentioned in my keynote recently, we had Liberty Mutual and we had Texas Children's Hospital, and they're implementing HPE GreenLake in a variety of different ways, from a private cloud standpoint to a data center consolidation. They're seeing sustainability goals happen on top of that. They're seeing us take on management for them so they can take their limited resources and go focus them on innovation and value added scenarios. So the flexibility and cost that we're providing, and it's just fantastic to hear this come to life in a real customer scenario because what Texas Children is trying to do is improve patient care for women and children like who can argue with that. >> Nobody. >> So, yeah. It's great. >> Awesome. Keith, thank you so much for joining Dave and me on the program, talking about all of the momentum with HPE Greenlake. >> Always. >> You can't walk in here without feeling the momentum. We appreciate your insights and your time. >> Always. Thank you you for the time. Yeah. Great to see you as well. >> Likewise. >> Thanks. >> For Keith White and Dave Vellante, I'm Lisa Martin. You're watching theCube live, day one coverage from the show floor at HPE Discover '22. We'll be right back with our next guest. (gentle music)

>> Announcer: "theCUBE" presents HPE Discover 2022, brought to you by HPE. >> Greetings from Las Vegas, everyone. Lisa Martin, here with Dave Vellante. We are live at HPE Discover 2022 with about 8,000 folks here at The Sands Expo Convention Center. First HPE Discover in three years, everyone jammed in that keynote room, it was standing in only. Dave and I have a couple of exciting guests we're proud to introduce you to. Please, welcome back to "theCUBE," John Schultz, the EVP and general counsel of HPE. Great to have you back here. And Kay Firth-Butterfield, the head of AI and machine learning at the World Economic Forum. Kay, thank you so much for joining us. >> Thank you. It's an absolute pleasure. >> Isn't it great to be back in person? >> Fantastic. >> John, we were saying that. >> Fantastic. >> Last time you were on "theCUBE", it was Cube Virtual. Now, here we are back. A lot of news this morning, a lot's going on. The Edge to Cloud Conferences is the theme this year. In today's Edge to Cloud world, so much data being generated at the edge, it's just going to keep proliferating. AI plays a key role in helping to synthesize that, analyze large volumes of data. Can you start by talking about the differences of the two? The synergies, what you see? >> Yeah. Absolutely. And again, it is great to be back with the two of you, and great to be with Kay, who is a leading light in the world of AI, and particularly, AI responsibility. And so, we're going to talk a little bit about that. But really, this synergistic effect between data and AI, is as tight as they come. Really, data is just the raw materials by which we drive actionable insight. And at the end of the day, it's really about insights, and that speed to insight to make the difference. AI is really what is powering our ability to take vast amounts of data. Amounts of data that we'd never conceived of, being able to process before and bring it together into actionable insights. And it's simplest form, right? AI is simply making computers do what humans used to do, but the power of computing, what you heard about frontier on the main stage today, allows us to use technology to solve problems so complex that it would take humans millions of years to do it. So, this relationship between data and AI, it's incredibly tight. You need the right raw materials. You need the right engine, that is the AI, and then you will generate insights that could really change the world. >> So, Kay, there's a data point from the World Economic Forum which really caught my attention. It says the 15.7 billion of GDP growth is going to be a result of AI by 2030, 15.7 billion added. That includes the dilutive effects where we're replacing humans with machines. What is driving this in this incremental growth? >> Well, I think obviously, it's the access to the huge amounts of data that John pointed out. But one of the things that we have to remember about, AI is that actually, AI is pretty dumb unless you give it nice, clean, organized data. And so, it's not just all data, but it's data that has been through a process that enables the AI to gain insights from it. And so, what is it? It's the compute power, the ever increasing compute power. So, in the past, we would never have thought that we could use some of the new things that we're seeing in machine learning, so even deep learning. It's only been about for a small length of time, but it's really with the compute power, with the amount of data, being able to put AI on steroids, for luck of a better analogy. And I think it's also that we are now in business, and society, being able to see some of the benefits that can be generated from AI. Listening to Oakridge talk about the medical science advances that we can create for human beings, that's extraordinary. But we're also seeing that across business. >> That's why I was going to add. As impressive as those economic figures are in terms of what value it could add from a pure financial perspective? It's really the problems that could be solved. If you think about some of the things that happened in the pandemic, and what virtual experience allowed with a phone or with a tablet to check in with a doctor who was going to curate your COVID test, right? When they invented the iPhone, nobody thought that was going to be the use. AI has that same promise, but really on a macro global scale, some of the biggest problems we're trying to solve. So, huge opportunity, but as we're going to talk about a little later, huge risk for it to be misused if it's not guided and aimed in the right direction. >> Absolutely. >> That's okay. Maybe talk about that? >> Well, I was just going to come back about some of the benefits. California has been over the last 10 years trying to reduce emissions. One wildfire, absolutely wiped out all that good work over 10 years. But with AI, we've been developing an application that allows us to say, "Tomorrow, at this location, you will have a wildfire. So, please send your services to that location." That's the power of artificial intelligence to really help with things like climate change. >> Absolutely. >> Is that a probability model that's running somewhere? >> Yeah. Absolutely >> So, I wanted to ask you, but a lot of AI today, is modeling that's done, and the edge, you mentioned the iPhone, with all this power and new processors. AI inferencing at the edge in real time making real time decisions. So, one example is predicting, the other is there's actually something going on in this place. What do you see there? >> Yeah, so, I mean, yes we are using a predictive tool to ingest the data on weather, and all these other factors in order to say, "Please put your services here tomorrow at this time." But maybe you want to talk about the next edge. >> Yeah. Yeah. Well, and I think it's not just grabbing the data to do some predictive modeling. It's now creating that end-to-end value chain where the actions are being taken in real time based on the information that's being processed, especially out at the edge. So, you're ending up, not just with predictive modeling, but it's actually transferring into actual action on the ground that's happening... You know, we like to say automagically. So, to the point where you can be making real time changes based on information that continues to make you smarter and smarter. So, it's not just a group of people taking the inputs out of a model and figuring out, okay now what am I going to do with it? The system end-to-end, allows it to happen in a way that drives a time to value that is beyond anything we've seen in the pas- >> In every industry? >> In every industry. >> Absolutely, and that's something we learned during the pandemic, one of the many things. Access to real time data to actually glean those insights that can be acted on, is no longer a nice to have. >> No. >> For companies in any industry they've got to have that now, they've got to use it as their competitive advantage. Where do you see when you're talking with customers, John? Where are they in that capability and leveraging AI on steroids, as I said? >> Yeah. I think it varies. I mean, certainly I think as you look in the medical field, et cetera, I mean, I think they've been very comfortable, and that continues to up. The use cases are so numerous there, that in some ways we've only scratched the surface, I think. But there's a high degree of acceptance, and people see the promise. Manufacturing's another area where automation and relying on some form of what used to be kind of analog intelligence, people are very comfortable with. I would say candidly, I would say the public sector and government is the furthest behind. It may be used for intelligence purposes, and things like that, but in terms of advancing overall, the common good, I think we're trailing behind there. So, that's why things like the partnership with Oak Ridge National Laboratory, and some of the other things we're seeing. That's why organizations like the World Economic Forum are so important, because we've got to make sure that this isn't just a private sector piece, It's not just about commercialization, and finding that next cost savings. It really should be about, how do you solve the world's biggest problems and do in a way that's smarter than we've ever been able to do it before? >> It's interesting, you say public sectors is behind because in some respects, they're really advanced, but they're not sharing that because it's secretive. >> Yeah. >> Right? >> That's very fair. >> Yeah. So, Kay, the other interesting stat, was that by 2023 this is like next year, 6.8 trillion will be spent on digital transformation. So, there's this intersection of data. I mean, to me, digital is data. But a lot of it was sort of, we always talk about the acceleration 'cause of the pandemic. If you weren't a digital business you were out of business, and people sort of rushed, I call it the force-march to digital. And now, are people stepping back and saying, "Okay, what can we actually do?" And maybe being more planful? Maybe you could talk about the sort of that roadmap? >> Sure. I think that that's true. And whilst I agree with John, we also see a lot of small... A lot of companies that are really only at proof of value for AI at the moment. So, we need to ensure that everybody, we take everybody, not just the governments, but everybody with us. And one of the things I'm often asked, is if you're a small or medium-sized enterprise, how can you begin to use AI at scale? And I think that's one of the exciting things about building a platform. >> That's right. >> And enabling people to use that. I think that there is also, the fact that we need to take everybody with us on this adventure because AI is so important. And it's not just important in the way it's currently being used. But if we think about these new frontier technologies like Metaverse, for example. What's the Metaverse except an application of AI? But if we don't take everybody on the journey now, then when we are using applications in the Metaverse, or building applications in the Metaverse what happens at that point? >> Think about if only certain groups of people or certain companies had access to wifi, or had access to cellular, or had access to a phone, right? The advantage and the inequality would be manifest, right? We have to think of AI and super computing in the same way, because they are going to be these raw ingredients that are going to drive the future. And if they are not, if there isn't some level of AI equality, I think the potential negative consequences of that, are incredibly high, especially in the developing world. >> Talk about it from a responsibility perspective? Getting everybody on board is challenging from a cultural standpoint, but organizations have to do it as you both articulated. But then every time we talk about AI, we've got to talk about it's used responsibly. Kay, what are your thoughts there? What are you seeing out in the field? >> Yeah, absolutely. And I started working in this in about 2014 when there were maybe a handful of us. What's exciting for me, is that now you hear it on people's lips, much more. But we still got a long way to go. We still got that understanding to happen in companies that although you might, for example, be a drug discovery company, you are probably using AI not just in drug discovery but in a number of backroom operations such as human resources, for example. We know the use of AI and human resources is very problematic. And is about to be legislated against, or at least be set up as a high risk problem use of AI by the E.U. So, across the E.U, we know what happened with GDPR that it became something that lots and lots of countries used, and we expect the AI Act to also become used in that way. So, what you need, is you need not only for companies to understand that they are gradually becoming AI companies, but also that as part of that transformation, it's taking your workers with you. It's helping them understand that AI won't actually take their jobs, it will merely help them with reskilling or working better in what they do. And they think it's also in actually helping the board to understand. We know lots of boards that don't have any clue about AI. And then, the whole of the C-suite and the trickle all down, and understanding that at the end, you've got tools, you've got data, and you've got people, and they all need to be working together to create that functional, responsible AI layer. >> When we think about it, really, when we think about responsible AI, really think about at least three pillars, right? The first off, is that privacy aspect. It's really that data ingestion part, which is respecting the privacy of the individuals, and making sure that you're collecting only the data you should be collecting to feed into your AI mechanism, right? The second, is that inclusivity and equality aspect. We've got to make sure that the actions that are coming out, the insights were generate, driving, really are inclusive. And that goes back to the right data sets. It goes back to the integrity in the algorithm. And then, you need to make sure that your AI is both human and humane. We have to make sure we don't take that human factor out and lose that connection to what really creates our shared humanity. Some of that's transparency, et cetera. I think all of those sound great. We've had some really interesting discussions about in practice, how challenging that's going to be, given the sophistication of this technology. >> When you say transparency, you're talking about the machine made a decision. I have to see how, understand how the machine made a decision. >> Algorithmic transparency. Go ahead. >> Algorithmic transparency. And the United States is actually at the moment considering something which is called the Algorithmic Accountability Act. And so, there is a movement to particularly where somebody's livelihood is affected. Say, for example, whether you get a job, and it was the algorithm that did the pre-selection in the human resources area. So, did you get a job? No, you didn't get that job. Why didn't you get that job? Why did the algorithm- >> A mortgage would be another? >> A mortgage would be another thing. And John was talking about the data, and the way that the algorithms are created. And I think, one great example, is lots of algorithms are currently created by young men under 20. They are not necessarily representative of your target audience for that algorithm. And unless you create some diversity around that group of developers, you're going to create a product that's less than optimal. So, responsible AI, isn't just about being responsible and having a social conscience, and doing things, but in a human-centered way, it's also about your bottom line as well. >> It took us a long time to recognize the kind of the shared interest we have in climate change. And the fact that the things that are happening one part of the world, can't be divorced from the impact across the the globe. When you think about AI, and the ability to create algorithms, and engage in insights, that could happen in one part of the world, and then be transferred out, not withstanding the fact, that most other countries have said, "We wouldn't do it this way, or we would require accountability. You can see the risk." It's what we call the race to the bottom. If you think about some of the things that have happened over the time in the industrial world. Often, businesses flock to those places with the least amount of safeguards that allow them to go the fastest, regardless of the collateral damage. I think we feel that same risk exists today with AI. >> So, much more we could talk about, guys, unfortunately, we are out of time. But it's so amazing to hear where we are with AI, where companies need to be. And it's the tip of the iceberg. You're very exciting. >> Yes. >> Kay and John, thank you so much for joining Dave and me. >> Thank you. >> Thank you. >> Thank you. >> It's a pleasure. >> We want to thank you for watching this segment. Lisa Martin, with Dave Vellante for our guests. We are live at HPE Discover '22. We'll be back with our next guest in just a minute. (bright upbeat music)

>>Welcome lisa and thank you for being here with us today >>Antonio It's wonderful to be here with you as always. And congratulations on your launch. Very, very exciting for you. >>Well, thank you lisa and uh, we love this partnership and especially our friendship, which has been very special for me for many, many years that we have worked together, but I wanted to have a conversation with you today and obviously digital transformation is a key topic. So we know the next wave for digital transformation is here being driven by massive amounts of data and increasingly distributed world and a new set of data intensive workloads. So how do you see a lot of optimization playing a role in addressing these new requirements? >>Yeah, absolutely Antonio. And I think, you know, if you look at the depth of our partnership over the last four or five years, it's really about bringing the best to our customers. And the truth is we're in this compute mega cycle right now. So it's amazing. Um you know, when I know when you talk to customers, when we talk to customers, they all need to do more and frankly, computers becoming quite specialized. So whether, you know, you're talking about large enterprises, um, or you're talking about research institutions trying to get to the next phase of compute so that workload optimization that we're able to do with our processors, your system design and then working closely with our software partners is really the next wave of this, this compute cycle. >>So thanks lisa you talk about mega cycle. So, I want to make sure we take a moment to celebrate The launch of our new generation 10 plus compute products with the latest announcement. Hp now has the broadest a nd server portfolio in the industry spanning from the edge to exa scale. How important is this partnership and the portfolio for our customers? >>Well, um Antonio I'm so excited, first of all, congratulations on your 19 world records with Milan and gen 10 plus. It really is building on sort of our, this is our third generation of partnership with Epic. And you know, you were with me right at the very beginning actually, if you recall you joined us in Austin for our first launch of Epic, you know, four years ago and I think what we've created now is just an incredible portfolio that really does go across. You know, all of the verticals that are required. We've always talked about, how do we customize and make things easier for our customers to use together? And so very excited about your portfolio, very excited about our partnership and more importantly, what we can do for our joint customers. >>It's amazing to see 19 world records. I think I'm really proud of the work our joint team do every generation, raising the bar. And that's where, you know, we, we think we have a shared goal of ensuring our customers get the solution, the services they need any way they want it. And one way we are addressing that need is by offering what we call as a service delivered to HP Green Lake. So let me ask a question, What feedback are you hearing from your customers with respect to choice, meaning consuming as a service? This new solutions? >>Yeah, great point. I think, first of all, you know, HP Green Lake is very, very impressive. So, congratulations to really having that solution. And I think we're hearing the same thing from customers and you know, the truth is, um, the computer infrastructure is getting more complex and everyone wants to be able to deploy, sort of the right compute at the right price point um you know, in in terms of also accelerating um time to deployment with the right security with the right quality. And I think these as a service offerings are going to become more and more important um as we go forward um in the compute capabilities and you know, Green Lake is a leadership product offering and we're very very pleased and honored to be part of it. >>Okay. Yeah. We feel uh lisa we are ahead of the competition and um you know, you think about some of our competitors is not coming with their own offerings, but I think the ability to drive joint innovation is what really differentiates us and that's why we value the partnership and what we have been doing together on given the customer's choice. Finally, you know, I know you and I above incredibly excited about the joint work with you and with the U. S. Department of Energy, the Oak Ridge National Laboratory we think about large data sets and you know and the complexity of the analytics we're running but we both are going to deliver the world first exa scale system. Which is remarkable to me. So what this milestone means to you and what type of impact do you think it will >>make? Yes Antonio I think our work with Oak Ridge National Labs and HP is just really pushing the envelope on what can be done with computing. And if you think about the science that we're going to be able to enable with the first extra scale machine, I would say there's a tremendous amount of innovation that has already gone in to the machine and we're so excited about delivering it together with HP. And you know we also think that the supercomputing technology that we're developing at this broad scale will end up being very, very important for enterprise computer as well. And so it's really an opportunity to kind of take that bleeding edge and really deploy it over the next few years. So super excited about it. I think you and I have a lot to do over the next few months here, but it's an example of the great partnership and and how much we're able to do when we put our teams together, um, to really create that innovation. >>I couldn't agree more. I mean, this is an incredible milestone for for us, for our industry and honestly for the country in many ways. And we have many, many people working 24 by seven to deliver against this mission. And it's going to change the future of compute no question about it. Um, and then honestly put it to work where we needed the most to advance life science to find cures, to improve the way people live and work, lisa, thank you again for joining us today and thank you more most importantly for the incredible partnership and, and the friendship. I really enjoy working with you and your team and together, I think we can change this industry once again. So thanks for your time today. >>Thank you so much Antonio and congratulations again to you and the entire HPI team for just a fantastic portfolio launch. >>Thank you.

momentum is gathering [Music] business is evolving more and more quickly moving through one transformation to the next because change never stops it only accelerates this is a world that demands a new kind of compute deployed from edge to core to cloud compute that can outpace the rapidly changing needs of businesses large and small unlocking new insights turning data into outcomes empowering new experiences compute that can scale up or scale down with minimum investment and effort guided by years of expertise protected by 360-degree security served up as a service to let it control own and manage massive workloads that weren't there yesterday and might not be there tomorrow this is the compute power that will drive progress giving your business what you need to be ready for what's next this is the compute power of hpe delivering your foundation for digital transformation welcome to accelerating next thank you so much for joining us today we have a great program we're going to talk tech with experts we'll be diving into the changing economics of our industry and how to think about the next phase of your digital transformation now very importantly we're also going to talk about how to optimize workloads from edge to exascale with full security and automation all coming to you as a service and with me to kick things off is neil mcdonald who's the gm of compute at hpe neil always a pleasure great to have you on it's great to see you dave now of course when we spoke a year ago you know we had hoped by this time we'd be face to face but you know here we are again you know this pandemic it's obviously affected businesses and people in in so many ways that we could never have imagined but in the reality is in reality tech companies have literally saved the day let's start off how is hpe contributing to helping your customers navigate through things that are so rapidly shifting in the marketplace well dave it's nice to be speaking to you again and i look forward to being able to do this in person some point the pandemic has really accelerated the need for transformation in businesses of all sizes more than three-quarters of cios report that the crisis has forced them to accelerate their strategic agendas organizations that were already transforming or having to transform faster and organizations that weren't on that journey yet are having to rapidly develop and execute a plan to adapt to this new reality our customers are on this journey and they need a partner for not just the compute technology but also the expertise and economics that they need for that digital transformation and for us this is all about unmatched optimization for workloads from the edge to the enterprise to exascale with 360 degree security and the intelligent automation all available in that as a service experience well you know as you well know it's a challenge to manage through any transformation let alone having to set up remote workers overnight securing them resetting budget priorities what are some of the barriers that you see customers are working hard to overcome simply per the organizations that we talk with are challenged in three areas they need the financial capacity to actually execute a transformation they need the access to the resource and the expertise needed to successfully deliver on a transformation and they have to find the way to match their investments with the revenues for the new services that they're putting in place to service their customers in this environment you know we have a data partner called etr enterprise technology research and the spending data that we see from them is it's quite dramatic i mean last year we saw a contraction of roughly five percent of in terms of i.t spending budgets etc and this year we're seeing a pretty significant rebound maybe a six to seven percent growth range is the prediction the challenge we see is organizations have to they've got to iterate on that i call it the forced march to digital transformation and yet they also have to balance their investments for example at the corporate headquarters which have kind of been neglected is there any help in sight for the customers that are trying to reduce their spend and also take advantage of their investment capacity i think you're right many businesses are understandably reluctant to loosen the purse strings right now given all of the uncertainty and often a digital transformation is viewed as a massive upfront investment that will pay off in the long term and that can be a real challenge in an environment like this but it doesn't need to be we work through hpe financial services to help our customers create the investment capacity to accelerate the transformation often by leveraging assets they already have and helping them monetize them in order to free up the capacity to accelerate what's next for their infrastructure and for their business so can we drill into that i wonder if we could add some specifics i mean how do you ensure a successful outcome what are you really paying attention to as those sort of markers for success well when you think about the journey that an organization is going through it's tough to be able to run the business and transform at the same time and one of the constraints is having the people with enough bandwidth and enough expertise to be able to do both so we're addressing that in two ways for our customers one is by helping them confidently deploy new solutions which we have engineered leveraging decades of expertise and experience in engineering to deliver those workload optimized portfolios that take the risk and the complexity out of assembling some of these solutions and give them a pre-packaged validated supported solution intact that simplifies that work for them but in other cases we can enhance our customers bandwidth by bringing them hpe point next experts with all of the capabilities we have to help them plan deliver and support these i.t projects and transformations organizations can get on a faster track of modernization getting greater insight and control as they do it we're a trusted partner to get the most for a business that's on this journey in making these critical compute investments to underpin the transformations and whether that's planning to optimizing to safe retirement at the end of life we can bring that expertise to bayer to help amplify what our customers already have in-house and help them accelerate and succeed in executing these transformations thank you for that neil so let's talk about some of the other changes that customers are seeing and the cloud has obviously forced customers and their suppliers to really rethink how technology is packaged how it's consumed how it's priced i mean there's no doubt in that to take green lake it's obviously a leading example of a pay as pay-as-you-scale infrastructure model and it could be applied on-prem or hybrid can you maybe give us a sense as to where you are today with green lake well it's really exciting you know from our first pay-as-you-go offering back in 2006 15 years ago to the introduction of green lake hpe has really been paving the way on consumption-based services through innovation and partnership to help meet the exact needs of our customers hpe green lake provides an experience that's the best of both worlds a simple pay-per-use technology model with the risk management of data that's under our customers direct control and it lets customers shift to everything as a service in order to free up capital and avoid that upfront expense that we talked about they can do this anywhere at any scale or any size and really hpe green lake is the cloud that comes to you like that so we've touched a little bit on how customers can maybe overcome some of the barriers to transformation what about the nature of transformations themselves i mean historically there was a lot of lip service paid to digital and and there's a lot of complacency frankly but you know that covered wrecking ball meme that so well describes that if you're not a digital business essentially you're going to be out of business so neil as things have evolved how is hpe addressed the new requirements well the new requirements are really about what customers are trying to achieve and four very common themes that we see are enabling the productivity of a remote workforce that was never really part of the plan for many organizations being able to develop and deliver new apps and services in order to service customers in a different way or drive new revenue streams being able to get insights from data so that in these tough times they can optimize their business more thoroughly and then finally think about the efficiency of an agile hybrid private cloud infrastructure especially one that now has to integrate the edge and we're really thrilled to be helping our customers accelerate all of these and more with hpe compute i want to double click on that remote workforce productivity i mean again the surveys that we see 46 percent of the cios say that productivity improved with the whole work from home remote work trend and on average those improvements were in the four percent range which is absolutely enormous i mean when you think about that how does hpe specifically you know help here what do you guys do well every organization in the world has had to adapt to a different style of working and with more remote workers than they had before and for many organizations that's going to become the new normal even post pandemic many it shops are not well equipped for the infrastructure to provide that experience because if all your workers are remote the resiliency of that infrastructure the latencies of that infrastructure the reliability of are all incredibly important so we provide comprehensive solutions expertise and as a service options that support that remote work through virtual desktop infrastructure or vdi so that our customers can support that new normal of virtual engagements online everything across industries wherever they are and that's just one example of many of the workload optimized solutions that we're providing for our customers is about taking out the guesswork and the uncertainty in delivering on these changes that they have to deploy as part of their transformation and we can deliver that range of workload optimized solutions across all of these different use cases because of our broad range of innovation in compute platforms that span from the ruggedized edge to the data center all the way up to exascale and hpc i mean that's key if you're trying to affect the digital transformation and you don't have to fine-tune you know be basically build your own optimized solutions if i can buy that rather than having to build it and rely on your r d you know that's key what else is hpe doing you know to deliver things new apps new services you know your microservices containers the whole developer trend what's going on there well that's really key because organizations are all seeking to evolve their mix of business and bring new services and new capabilities new ways to reach their customers new way to reach their employees new ways to interact in their ecosystem all digitally and that means app development and many organizations of course are embracing container technology to do that today so with the hpe container platform our customers can realize that agility and efficiency that comes with containerization and use it to provide insights to their data more and more that data of course is being machine generated or generated at the edge or the near edge and it can be a real challenge to manage that data holistically and not have silos and islands an hpe esmerald data fabric speeds the agility and access to data with a unified platform that can span across the data centers multiple clouds and even the edge and that enables data analytics that can create insights powering a data-driven production-oriented cloud-enabled analytics and ai available anytime anywhere in any scale and it's really exciting to see the kind of impact that that can have in helping businesses optimize their operations in these challenging times you got to go where the data is and the data is distributed it's decentralized so i i i like the esmerel of vision and execution there so that all sounds good but with digital transformation you get you're going to see more compute in in hybrid's deployments you mentioned edge so the surface area it's like the universe it's it's ever-expanding you mentioned you know remote work and work from home before so i'm curious where are you investing your resources from a cyber security perspective what can we count on from hpe there well you can count on continued leadership from hpe as the world's most secure industry standard server portfolio we provide an enhanced and holistic 360 degree view to security that begins in the manufacturing supply chain and concludes with a safeguarded end-of-life decommissioning and of course we've long set the bar for security with our work on silicon root of trust and we're extending that to the application tier but in addition to the security customers that are building this modern hybrid are private cloud including the integration of the edge need other elements too they need an intelligent software-defined control plane so that they can automate their compute fleets from all the way at the edge to the core and while scale and automation enable efficiency all private cloud infrastructures are competing with web scale economics and that's why we're democratizing web scale technologies like pinsando to bring web scale economics and web scale architecture to the private cloud our partners are so important in helping us serve our customers needs yeah i mean hp has really upped its ecosystem game since the the middle of last decade when when you guys reorganized it you became like even more partner friendly so maybe give us a preview of what's coming next in that regard from today's event well dave we're really excited to have hp's ceo antonio neri speaking with pat gelsinger from intel and later lisa sue from amd and later i'll have the chance to catch up with john chambers the founder and ceo of jc2 ventures to discuss the state of the market today yeah i'm jealous you guys had some good interviews coming up neil thanks so much for joining us today on the virtual cube you've really shared a lot of great insight how hpe is partnering with customers it's it's always great to catch up with you hopefully we can do so face to face you know sooner rather than later well i look forward to that and uh you know no doubt our world has changed and we're here to help our customers and partners with the technology the expertise and the economics they need for these digital transformations and we're going to bring them unmatched workload optimization from the edge to exascale with that 360 degree security with the intelligent automation and we're going to deliver it all as an as a service experience we're really excited to be helping our customers accelerate what's next for their businesses and it's been really great talking with you today about that dave thanks for having me you're very welcome it's been super neal and i actually you know i had the opportunity to speak with some of your customers about their digital transformation and the role of that hpe plays there so let's dive right in we're here on the cube covering hpe accelerating next and with me is rule siestermans who is the head of it at the netherlands cancer institute also known as nki welcome rule thank you very much great to be here hey what can you tell us about the netherlands cancer institute maybe you could talk about your core principles and and also if you could weave in your specific areas of expertise yeah maybe first introduction to the netherlands institute um we are one of the top 10 comprehensive cancers in the world and what we do is we combine a hospital for treating patients with cancer and a recent institute under one roof so discoveries we do we find within the research we can easily bring them back to the clinic and vis-a-versa so we have about 750 researchers and about 3 000 other employees doctors nurses and and my role is to uh to facilitate them at their best with it got it so i mean everybody talks about digital digital transformation to us it all comes down to data so i'm curious how you collect and take advantage of medical data specifically to support nki's goals maybe some of the challenges that your organization faces with the amount of data the speed of data coming in just you know the the complexities of data how do you handle that yeah it's uh it's it's it's challenge and uh yeah what we we have we have a really a large amount of data so we produce uh terabytes a day and we we have stored now more than one petabyte on data at this moment and yeah it's uh the challenge is to to reuse the data optimal for research and to share it with other institutions so that needs to have a flexible infrastructure for that so a fast really fast network uh big data storage environment but the real challenge is not not so much the i.t bus is more the quality of the data so we have a lot of medical systems all producing those data and how do we combine them and and yeah get the data fair so findable accessible interoperable and reusable uh for research uh purposes so i think that's the main challenge the quality of the data yeah very common themes that we hear from from other customers i wonder if you could paint a picture of your environment and maybe you can share where hpe solutions fit in what what value they bring to your organization's mission yeah i think it brings a lot of flexibility so what we did with hpe is that we we developed a software-defined data center and then a virtual workplace for our researchers and doctors and that's based on the hpe infrastructure and what we wanted to build is something that expect the needs of doctors and nurses but also the researchers and the two kind of different blood groups blood groups and with different needs so uh but we wanted to create one infrastructure because we wanted to make the connection between the hospital and the research that's that's more important so um hpe helped helped us not only with the the infrastructure itself but also designing the whole architecture of it and for example what we did is we we bought a lot of hardware and and and the hardware is really uh doing his his job between nine till five uh dennis everything is working within everyone is working within the institution but all the other time in evening and and nights hours and also the redundant environment we have for the for our healthcare uh that doesn't do nothing of much more or less uh in in those uh dark hours so what we created together with nvidia and hpe and vmware is that we we call it video by day compute by night so we reuse those those servers and those gpu capacity for computational research jobs within the research that's you mentioned flexibility for this genius and and so we're talking you said you know a lot of hard ways they're probably proliant i think synergy aruba networking is in there how are you using this environment actually the question really is when you think about nki's digital transformation i mean is this sort of the fundamental platform that you're using is it a maybe you could describe that yeah it's it's the fundamental platform to to to work on and and and what we see is that we have we have now everything in place for it but the real challenge is is the next steps we are in so we have a a software defined data center we are cloud ready so the next steps is to to make the connection to the cloud to to give more automation to our researchers so they don't have to wait a couple of weeks for it to do it but they can do it themselves with a couple of clicks so i think the basic is we are really flexible and we have a lot of opportunities for automation for example but the next step is uh to create that business value uh really for for our uh employees that's a great story and a very important mission really fascinating stuff thanks for sharing this with our audience today really appreciate your time thank you very much okay this is dave vellante with thecube stay right there for more great content you're watching accelerating next from hpe i'm really glad to have you with us today john i know you stepped out of vacation so thanks very much for joining us neil it's great to be joining you from hawaii and i love the partnership with hpe and the way you're reinventing an industry well you've always excelled john at catching market transitions and there are so many transitions and paradigm shifts happening in the market and tech specifically right now as you see companies rush to accelerate their transformation what do you see as the keys to success well i i think you're seeing actually an acceleration following the covet challenges that all of us faced and i wasn't sure that would happen it's probably at three times the paces before there was a discussion point about how quickly the companies need to go digital uh that's no longer a discussion point almost all companies are moving with tremendous feed on digital and it's the ability as the cloud moves to the edge with compute and security uh at the edge and how you deliver these services to where the majority of applications uh reside are going to determine i think the future of the next generation company leadership and it's the area that neil we're working together on in many many ways so i think it's about innovation it's about the cloud moving to the edge and an architectural play with silicon to speed up that innovation yes we certainly see our customers of all sizes trying to accelerate what's next and get that digital transformation moving even faster as a result of the environment that we're all living in and we're finding that workload focus is really key uh customers in all kinds of different scales are having to adapt and support the remote workforces with vdi and as you say john they're having to deal with the deployment of workloads at the edge with so much data getting generated at the edge and being acted upon at the edge the analytics and the infrastructure to manage that as these processes get digitized and automated is is so important for so many workflows we really believe that the choice of infrastructure partner that underpins those transformations really matters a partner that can help create the financial capacity that can help optimize your environments and enable our customers to focus on supporting their business are all super key to success and you mentioned that in the last year there's been a lot of rapid course correction for all of us a demand for velocity and the ability to deploy resources at scale is more and more needed maybe more than ever what are you hearing customers looking for as they're rolling out their digital transformation efforts well i think they're being realistic that they're going to have to move a lot faster than before and they're also realistic on core versus context they're they're their core capability is not the technology of themselves it's how to deploy it and they're we're looking for partners that can help bring them there together but that can also innovate and very often the leaders who might have been a leader in a prior generation may not be on this next move hence the opportunity for hpe and startups like vinsano to work together as the cloud moves the edge and perhaps really balance or even challenge some of the big big incumbents in this category as well as partners uniquely with our joint customers on how do we achieve their business goals tell me a little bit more about how you move from this being a technology positioning for hpe to literally helping your customers achieve their outcomes they want and and how are you changing hpe in that way well i think when you consider these transformations the infrastructure that you choose to underpin it is incredibly critical our customers need a software-defined management plan that enables them to automate so much of their infrastructure they need to be able to take faster action where the data is and to do all of this in a cloud-like experience where they can deliver their infrastructure as code anywhere from exascale through the enterprise data center to the edge and really critically they have to be able to do this securely which becomes an ever increasing challenge and doing it at the right economics relative to their alternatives and part of the right economics of course includes adopting the best practices from web scale architectures and bringing them to the heart of the enterprise and in our partnership with pensando we're working to enable these new ideas of web scale architecture and fleet management for the enterprise at scale you know what is fun is hpe has an unusual talent from the very beginning in silicon valley of working together with others and creating a win-win innovation approach if you watch what your team has been able to do and i want to say this for everybody listening you work with startups better than any other company i've seen in terms of how you do win win together and pinsando is just the example of that uh this startup which by the way is the ninth time i have done with this team a new generation of products and we're designing that together with hpe in terms of as the cloud moves to the edge how do we get the leverage out of that and produce the results for your customers on this to give the audience appeal for it you're talking with pensano alone in terms of the efficiency versus an amazon amazon web services of an order of magnitude i'm not talking 100 greater i'm talking 10x greater and things from throughput number of connections you do the jitter capability etc and it talks how two companies uniquely who believe in innovation and trust each other and have very similar cultures can work uniquely together on it how do you bring that to life with an hpe how do you get your company to really say let's harvest the advantages of your ecosystem in your advantages of startups well as you say more and more companies are faced with these challenges of hitting the right economics for the infrastructure and we see many enterprises of various sizes trying to come to terms with infrastructures that look a lot more like a service provider that require that software-defined management plane and the automation to deploy at scale and with the work we're doing with pinsando the benefits that we bring in terms of the observability and the telemetry and the encryption and the distributed network functions but also a security architecture that enables that efficiency on the individual nodes is just so key to building a competitive architecture moving forwards for an on-prem private cloud or internal service provider operation and we're really excited about the work we've done to bring that technology across our portfolio and bring that to our customers so that they can achieve those kind of economics and capabilities and go focus on their own transformations rather than building and running the infrastructure themselves artisanally and having to deal with integrating all of that great technology themselves makes tremendous sense you know neil you and i work on a board together et cetera i've watched your summarization skills and i always like to ask the question after you do a quick summary like this what are the three or four takeaways we would like for the audience to get out of our conversation well that's a great question thanks john we believe that customers need a trusted partner to work through these digital transformations that are facing them and confront the challenge of the time that the covet crisis has taken away as you said up front every organization is having to transform and transform more quickly and more digitally and working with a trusted partner with the expertise that only comes from decades of experience is a key enabler for that a partner with the ability to create the financial capacity to transform the workload expertise to get more from the infrastructure and optimize the environment so that you can focus on your own business a partner that can deliver the systems and the security and the automation that makes it easily deployable and manageable anywhere you need them at any scale whether the edge the enterprise data center or all the way up to exascale in high performance computing and can do that all as a service as we can at hpe through hpe green lake enabling our customers most critical workloads it's critical that all of that is underpinned by an ai powered digitally enabled service experience so that our customers can get on with their transformation and running their business instead of dealing with their infrastructure and really only hpe can provide this combination of capabilities and we're excited and committed to helping our customers accelerate what's next for their businesses neil it's fun i i love being your partner and your wingman our values and cultures are so similar thanks for letting me be a part of this discussion today thanks for being with us john it was great having you here oh it's friends for life okay now we're going to dig into the world of video which accounts for most of the data that we store and requires a lot of intense processing capabilities to stream here with me is jim brickmeyer who's the chief marketing and product officer at vlasics jim good to see you good to see you as well so tell us a little bit more about velocity what's your role in this tv streaming world and maybe maybe talk about your ideal customer sure sure so um we're leading provider of carrier great video solutions video streaming solutions and advertising uh technology to service providers around the globe so we primarily sell software-based solutions to uh cable telco wireless providers and broadcasters that are interested in launching their own um video streaming services to consumers yeah so this is this big time you know we're not talking about mom and pop you know a little video outfit but but maybe you can help us understand that and just the sheer scale of of the tv streaming that you're doing maybe relate it to you know the overall internet usage how much traffic are we talking about here yeah sure so uh yeah so our our customers tend to be some of the largest um network service providers around the globe uh and if you look at the uh the video traffic um with respect to the total amount of traffic that that goes through the internet video traffic accounts for about 90 of the total amount of data that uh that traverses the internet so video is uh is a pretty big component of um of how people when they look at internet technologies they look at video streaming technologies uh you know this is where we we focus our energy is in carrying that traffic as efficiently as possible and trying to make sure that from a consumer standpoint we're all consumers of video and uh make sure that the consumer experience is a high quality experience that you don't experience any glitches and that that ultimately if people are paying for that content that they're getting the value that they pay for their for their money uh in their entertainment experience i think people sometimes take it for granted it's like it's like we we all forget about dial up right those days are long gone but the early days of video was so jittery and restarting and and the thing too is that you know when you think about the pandemic and the boom in streaming that that hit you know we all sort of experienced that but the service levels were pretty good i mean how much how much did the pandemic affect traffic what kind of increases did you see and how did that that impact your business yeah sure so uh you know obviously while it was uh tragic to have a pandemic and have people locked down what we found was that when people returned to their homes what they did was they turned on their their television they watched on on their mobile devices and we saw a substantial increase in the amount of video streaming traffic um over service provider networks so what we saw was on the order of 30 to 50 percent increase in the amount of data that was traversing those networks so from a uh you know from an operator's standpoint a lot more traffic a lot more challenging to to go ahead and carry that traffic a lot of work also on our behalf and trying to help operators prepare because we could actually see geographically as the lockdowns happened [Music] certain areas locked down first and we saw that increase so we were able to help operators as as all the lockdowns happened around the world we could help them prepare for that increase in traffic i mean i was joking about dial-up performance again in the early days of the internet if your website got fifty percent more traffic you know suddenly you were you your site was coming down so so that says to me jim that architecturally you guys were prepared for that type of scale so maybe you could paint a picture tell us a little bit about the solutions you're using and how you differentiate yourself in your market to handle that type of scale sure yeah so we so we uh we really are focused on what we call carrier grade solutions which are designed for that massive amount of scale um so we really look at it you know at a very granular level when you look um at the software and and performance capabilities of the software what we're trying to do is get as many streams as possible out of each individual piece of hardware infrastructure so that we can um we can optimize first of all maximize the uh the efficiency of that device make sure that the costs are very low but one of the other challenges is as you get to millions and millions of streams and that's what we're delivering on a daily basis is millions and millions of video streams that you have to be able to scale those platforms out um in an effective in a cost effective way and to make sure that it's highly resilient as well so we don't we don't ever want a consumer to have a circumstance where a network glitch or a server issue or something along those lines causes some sort of uh glitch in their video and so there's a lot of work that we do in the software to make sure that it's a very very seamless uh stream and that we're always delivering at the very highest uh possible bit rate for consumers so that if you've got that giant 4k tv that we're able to present a very high resolution picture uh to those devices and what's the infrastructure look like underneath you you're using hpe solutions where do they fit in yeah that's right yeah so we uh we've had a long-standing partnership with hpe um and we work very closely with them to try to identify the specific types of hardware that are ideal for the the type of applications that we run so we run video streaming applications and video advertising applications targeted kinds of video advertising technologies and when you look at some of these applications they have different types of requirements in some cases it's uh throughput where we're taking a lot of data in and streaming a lot of data out in other cases it's storage where we have to have very high density high performance storage systems in other cases it's i gotta have really high capacity storage but the performance does not need to be quite as uh as high from an io perspective and so we work very closely with hpe on trying to find exactly the right box for the right application and then beyond that also talking with our customers to understand there are different maintenance considerations associated with different types of hardware so we tend to focus on as much as possible if we're going to place servers deep at the edge of the network we will make everything um maintenance free or as maintenance free as we can make it by putting very high performance solid state storage into those servers so that uh we we don't have to physically send people to those sites to uh to do any kind of maintenance so it's a it's a very cooperative relationship that we have with hpe to try to define those boxes great thank you for that so last question um maybe what the future looks like i love watching on my mobile device headphones in no distractions i'm getting better recommendations how do you see the future of tv streaming yeah so i i think the future of tv streaming is going to be a lot more personal right so uh this is what you're starting to see through all of the services that are out there is that most of the video service providers whether they're online providers or they're your traditional kinds of paid tv operators is that they're really focused on the consumer and trying to figure out what is of value to you personally in the past it used to be that services were one size fits all and um and so everybody watched the same program right at the same time and now that's uh that's we have this technology that allows us to deliver different types of content to people on different screens at different times and to advertise to those individuals and to cater to their individual preferences and so using that information that we have about how people watch and and what people's interests are we can create a much more engaging and compelling uh entertainment experience on all of those screens and um and ultimately provide more value to consumers awesome story jim thanks so much for keeping us helping us just keep entertained during the pandemic i really appreciate your time sure thanks all right keep it right there everybody you're watching hpes accelerating next first of all pat congratulations on your new role as intel ceo how are you approaching your new role and what are your top priorities over your first few months thanks antonio for having me it's great to be here with you all today to celebrate the launch of your gen 10 plus portfolio and the long history that our two companies share in deep collaboration to deliver amazing technology to our customers together you know what an exciting time it is to be in this industry technology has never been more important for humanity than it is today everything is becoming digital and driven by what i call the four key superpowers the cloud connectivity artificial intelligence and the intelligent edge they are super powers because each expands the impact of the others and together they are reshaping every aspect of our lives and work in this landscape of rapid digital disruption intel's technology and leadership products are more critical than ever and we are laser focused on bringing to bear the depth and breadth of software silicon and platforms packaging and process with at scale manufacturing to help you and our customers capitalize on these opportunities and fuel their next generation innovations i am incredibly excited about continuing the next chapter of a long partnership between our two companies the acceleration of the edge has been significant over the past year with this next wave of digital transformation we expect growth in the distributed edge and age build out what are you seeing on this front like you said antonio the growth of edge computing and build out is the next key transition in the market telecommunications service providers want to harness the potential of 5g to deliver new services across multiple locations in real time as we start building solutions that will be prevalent in a 5g digital environment we will need a scalable flexible and programmable network some use cases are the massive scale iot solutions more robust consumer devices and solutions ar vr remote health care autonomous robotics and manufacturing environments and ubiquitous smart city solutions intel and hp are partnering to meet this new wave head on for 5g build out and the rise of the distributed enterprise this build out will enable even more growth as businesses can explore how to deliver new experiences and unlock new insights from the new data creation beyond the four walls of traditional data centers and public cloud providers network operators need to significantly increase capacity and throughput without dramatically growing their capital footprint their ability to achieve this is built upon a virtualization foundation an area of intel expertise for example we've collaborated with verizon for many years and they are leading the industry and virtualizing their entire network from the core the edge a massive redesign effort this requires advancements in silicon and power management they expect intel to deliver the new capabilities in our roadmap so ecosystem partners can continue to provide innovative and efficient products with this optimization for hybrid we can jointly provide a strong foundation to take on the growth of data-centric workloads for data analytics and ai to build and deploy models faster to accelerate insights that will deliver additional transformation for organizations of all types the network transformation journey isn't easy we are continuing to unleash the capabilities of 5g and the power of the intelligent edge yeah the combination of the 5g built out and the massive new growth of data at the edge are the key drivers for the age of insight these new market drivers offer incredible new opportunities for our customers i am excited about recent launch of our new gen 10 plus portfolio with intel together we are laser focused on delivering joint innovation for customers that stretches from the edge to x scale how do you see new solutions that this helping our customers solve the toughest challenges today i talked earlier about the superpowers that are driving the rapid acceleration of digital transformation first the proliferation of the hybrid cloud is delivering new levels of efficiency and scale and the growth of the cloud is democratizing high-performance computing opening new frontiers of knowledge and discovery next we see ai and machine learning increasingly infused into every application from the edge to the network to the cloud to create dramatically better insights and the rapid adoption of 5g as i talked about already is fueling new use cases that demand lower latencies and higher bandwidth this in turn is pushing computing to the edge closer to where the data is created and consumed the confluence of these trends is leading to the biggest and fastest build out of computing in human history to keep pace with this rapid digital transformation we recognize that infrastructure has to be built with the flexibility to support a broad set of workloads and that's why over the last several years intel has built an unmatched portfolio to deliver every component of intelligent silicon our customers need to move store and process data from the cpus to fpgas from memory to ssds from ethernet to switch silicon to silicon photonics and software our 3rd gen intel xeon scalable processors and our data centric portfolio deliver new core performance and higher bandwidth providing our customers the capabilities they need to power these critical workloads and we love seeing all the unique ways customers like hpe leverage our technology and solution offerings to create opportunities and solve their most pressing challenges from cloud gaming to blood flow to brain scans to financial market security the opportunities are endless with flexible performance i am proud of the amazing innovation we are bringing to support our customers especially as they respond to new data-centric workloads like ai and analytics that are critical to digital transformation these new requirements create a need for compute that's warlord optimized for performance security ease of use and the economics of business now more than ever compute matters it is the foundation for this next wave of digital transformation by pairing our compute with our software and capabilities from hp green lake we can support our customers as they modernize their apps and data quickly they seamlessly and securely scale them anywhere at any size from edge to x scale but thank you for joining us for accelerating next today i know our audience appreciated hearing your perspective on the market and how we're partnering together to support their digital transformation journey i am incredibly excited about what lies ahead for hp and intel thank you thank you antonio great to be with you today we just compressed about a decade of online commerce progress into about 13 or 14 months so now we're going to look at how one retailer navigated through the pandemic and what the future of their business looks like and with me is alan jensen who's the chief information officer and senior vice president of the sawing group hello alan how are you fine thank you good to see you hey look you know when i look at the 100 year history plus of your company i mean it's marked by transformations and some of them are quite dramatic so you're denmark's largest retailer i wonder if you could share a little bit more about the company its history and and how it continues to improve the customer experience well at the same time keeping costs under control so vital in your business yeah yeah the company founded uh approximately 100 years ago with a department store in in oahu's in in denmark and i think in the 60s we founded the first supermarket in in denmark with the self-service and combined textile and food in in the same store and in beginning 70s we founded the first hyper market in in denmark and then the this calendar came from germany early in in 1980 and we started a discount chain and so we are actually building department store in hyber market info in in supermarket and in in the discount sector and today we are more than 1 500 stores in in three different countries in in denmark poland and germany and especially for the danish market we have a approximately 38 markets here and and is the the leader we have over the last 10 years developed further into online first in non-food and now uh in in food with home delivery with click and collect and we have done some magnetism acquisition in in the convenience with mailbox solutions to our customers and we have today also some restaurant burger chain and and we are running the starbuck in denmark so i can you can see a full plate of different opportunities for our customer in especially denmark it's an awesome story and of course the founder's name is still on the masthead what a great legacy now of course the pandemic is is it's forced many changes quite dramatic including the the behaviors of retail customers maybe you could talk a little bit about how your digital transformation at the sawing group prepared you for this shift in in consumption patterns and any other challenges that that you faced yeah i think uh luckily as for some of the you can say the core it solution in in 19 we just roll out using our computers via direct access so you can work from anywhere whether you are traveling from home and so on we introduced a new agile scrum delivery model and and we just finalized the rolling out teams in in in january february 20 and that was some very strong thing for suddenly moving all our employees from from office to to home and and more or less overnight we succeed uh continuing our work and and for it we have not missed any deadline or task for the business in in 2020 so i think that was pretty awesome to to see and for the business of course the pandemic changed a lot as the change in customer behavior more or less overnight with plus 50 80 on the online solution forced us to do some different priorities so we were looking at the food home delivery uh and and originally expected to start rolling out in in 2022 uh but took a fast decision in april last year to to launch immediately and and we have been developing that uh over the last eight months and has been live for the last three months now in the market so so you can say the pandemic really front loaded some of our strategic actions for for two to three years uh yeah that was very exciting what's that uh saying luck is the byproduct of great planning and preparation so let's talk about when you're in a company with some strong financial situation that you can move immediately with investment when you take such decision then then it's really thrilling yeah right awesome um two-part question talk about how you leverage data to support the solid groups mission and you know drive value for customers and maybe you could talk about some of the challenges you face with just the amount of data the speed of data et cetera yeah i said data is everything when you are in retail as a retailer's detail as you need to monitor your operation down to each store eats department and and if you can say we have challenge that that is that data is just growing rapidly as a year by year it's growing more and more because you are able to be more detailed you're able to capture more data and for a company like ours we need to be updated every morning as a our fully updated sales for all unit department single sku selling in in the stores is updated 3 o'clock in the night and send out to all top management and and our managers all over the company it's actually 8 000 reports going out before six o'clock every day in the morning we have introduced a loyalty program and and you are capturing a lot of data on on customer behavior what is their preferred offers what is their preferred time in the week for buying different things and all these data is now used to to personalize our offers to our cost of value customers so we can be exactly hitting the best time and and convert it to sales data is also now used for what we call intelligent price reductions as a so instead of just reducing prices with 50 if it's uh close to running out of date now the system automatically calculate whether a store has just enough to to finish with full price before end of day or actually have much too much and and need to maybe reduce by 80 before as being able to sell so so these automated [Music] solutions built on data is bringing efficiency into our operation wow you make it sound easy these are non-trivial items so congratulations on that i wonder if we could close hpe was kind enough to introduce us tell us a little bit about the infrastructure the solutions you're using how they differentiate you in the market and i'm interested in you know why hpe what distinguishes them why the choice there yeah as a when when you look out a lot is looking at moving data to the cloud but we we still believe that uh due to performance due to the availability uh more or less on demand we we still don't see the cloud uh strong enough for for for selling group uh capturing all our data we have been quite successfully having one data truth across the whole con company and and having one just one single bi solution and having that huge amount of data i think we have uh one of the 10 largest sub business warehouses in global and but on the other hand we also want to be agile and want to to scale when needed so getting close to a cloud solution we saw it be a green lake as a solution getting close to the cloud but still being on-prem and could deliver uh what we need to to have a fast performance on on data but still in a high quality and and still very secure for us to run great thank you for that and thank alan thanks so much for your for your time really appreciate your your insights and your congratulations on the progress and best of luck in the future thank you all right keep it right there we have tons more content coming you're watching accelerating next from hpe [Music] welcome lisa and thank you for being here with us today antonio it's wonderful to be here with you as always and congratulations on your launch very very exciting for you well thank you lisa and we love this partnership and especially our friendship which has been very special for me for the many many years that we have worked together but i wanted to have a conversation with you today and obviously digital transformation is a key topic so we know the next wave of digital transformation is here being driven by massive amounts of data an increasingly distributed world and a new set of data intensive workloads so how do you see world optimization playing a role in addressing these new requirements yeah no absolutely antonio and i think you know if you look at the depth of our partnership over the last you know four or five years it's really about bringing the best to our customers and you know the truth is we're in this compute mega cycle right now so it's amazing you know when i know when you talk to customers when we talk to customers they all need to do more and and frankly compute is becoming quite specialized so whether you're talking about large enterprises or you're talking about research institutions trying to get to the next phase of uh compute so that workload optimization that we're able to do with our processors your system design and then you know working closely with our software partners is really the next wave of this this compute cycle so thanks lisa you talk about mega cycle so i want to make sure we take a moment to celebrate the launch of our new generation 10 plus compute products with the latest announcement hp now has the broadest amd server portfolio in the industry spanning from the edge to exascale how important is this partnership and the portfolio for our customers well um antonio i'm so excited first of all congratulations on your 19 world records uh with uh milan and gen 10 plus it really is building on you know sort of our you know this is our third generation of partnership with epic and you know you are with me right at the very beginning actually uh if you recall you joined us in austin for our first launch of epic you know four years ago and i think what we've created now is just an incredible portfolio that really does go across um you know all of the uh you know the verticals that are required we've always talked about how do we customize and make things easier for our customers to use together and so i'm very excited about your portfolio very excited about our partnership and more importantly what we can do for our joint customers it's amazing to see 19 world records i think i'm really proud of the work our joint team do every generation raising the bar and that's where you know we we think we have a shared goal of ensuring that customers get the solution the services they need any way they want it and one way we are addressing that need is by offering what we call as a service delivered to hp green lake so let me ask a question what feedback are you hearing from your customers with respect to choice meaning consuming as a service these new solutions yeah now great point i think first of all you know hpe green lake is very very impressive so you know congratulations um to uh to really having that solution and i think we're hearing the same thing from customers and you know the truth is the compute infrastructure is getting more complex and everyone wants to be able to deploy sort of the right compute at the right price point um you know in in terms of also accelerating time to deployment with the right security with the right quality and i think these as a service offerings are going to become more and more important um as we go forward in the compute uh you know capabilities and you know green lake is a leadership product offering and we're very very you know pleased and and honored to be part of it yeah we feel uh lisa we are ahead of the competition and um you know you think about some of our competitors now coming with their own offerings but i think the ability to drive joint innovation is what really differentiate us and that's why we we value the partnership and what we have been doing together on giving the customers choice finally you know i know you and i are both incredibly excited about the joint work we're doing with the us department of energy the oak ridge national laboratory we think about large data sets and you know and the complexity of the analytics we're running but we both are going to deliver the world's first exascale system which is remarkable to me so what this milestone means to you and what type of impact do you think it will make yes antonio i think our work with oak ridge national labs and hpe is just really pushing the envelope on what can be done with computing and if you think about the science that we're going to be able to enable with the first exascale machine i would say there's a tremendous amount of innovation that has already gone in to the machine and we're so excited about delivering it together with hpe and you know we also think uh that the super computing technology that we're developing you know at this broad scale will end up being very very important for um you know enterprise compute as well and so it's really an opportunity to kind of take that bleeding edge and really deploy it over the next few years so super excited about it i think you know you and i have a lot to do over the uh the next few months here but it's an example of the great partnership and and how much we're able to do when we put our teams together um to really create that innovation i couldn't agree more i mean this is uh an incredible milestone for for us for our industry and honestly for the country in many ways and we have many many people working 24x7 to deliver against this mission and it's going to change the future of compute no question about it and then honestly put it to work where we need it the most to advance life science to find cures to improve the way people live and work but lisa thank you again for joining us today and thank you more most importantly for the incredible partnership and and the friendship i really enjoy working with you and your team and together i think we can change this industry once again so thanks for your time today thank you so much antonio and congratulations again to you and the entire hpe team for just a fantastic portfolio launch thank you okay well some pretty big hitters in those keynotes right actually i have to say those are some of my favorite cube alums and i'll add these are some of the execs that are stepping up to change not only our industry but also society and that's pretty cool and of course it's always good to hear from the practitioners the customer discussions have been great so far today now the accelerating next event continues as we move to a round table discussion with krista satrathwaite who's the vice president and gm of hpe core compute and krista is going to share more details on how hpe plans to help customers move ahead with adopting modern workloads as part of their digital transformations krista will be joined by hpe subject matter experts chris idler who's the vp and gm of the element and mark nickerson director of solutions product management as they share customer stories and advice on how to turn strategy into action and realize results within your business thank you for joining us for accelerate next event i hope you're enjoying it so far i know you've heard about the industry challenges the i.t trends hpe strategy from leaders in the industry and so today what we want to do is focus on going deep on workload solutions so in the most important workload solutions the ones we always get asked about and so today we want to share with you some best practices some examples of how we've helped other customers and how we can help you all right with that i'd like to start our panel now and introduce chris idler who's the vice president and general manager of the element chris has extensive uh solution expertise he's led hpe solution engineering programs in the past welcome chris and mark nickerson who is the director of product management and his team is responsible for solution offerings making sure we have the right solutions for our customers welcome guys thanks for joining me thanks for having us krista yeah so i'd like to start off with one of the big ones the ones that we get asked about all the time what we've been all been experienced in the last year remote work remote education and all the challenges that go along with that so let's talk a little bit about the challenges that customers have had in transitioning to this remote work and remote education environment uh so i i really think that there's a couple of things that have stood out for me when we're talking with customers about vdi first obviously there was a an unexpected and unprecedented level of interest in that area about a year ago and we all know the reasons why but what it really uncovered was how little planning had gone into this space around a couple of key dynamics one is scale it's one thing to say i'm going to enable vdi for a part of my workforce in a pre-pandemic environment where the office was still the the central hub of activity for work uh it's a completely different scale when you think about okay i'm going to have 50 60 80 maybe 100 of my workforce now distributed around the globe um whether that's in an educational environment where now you're trying to accommodate staff and students in virtual learning uh whether that's uh in the area of things like uh formula one racing where we had uh the desire to still have events going on but the need for a lot more social distancing not as many people able to be trackside but still needing to have that real-time experience this really manifested in a lot of ways and scale was something that i think a lot of customers hadn't put as much thought into initially the other area is around planning for experience a lot of times the vdi experience was planned out with very specific workloads or very specific applications in mind and when you take it to a more broad-based environment if we're going to support multiple functions multiple lines of business there hasn't been as much planning or investigation that's gone into the application side and so thinking about how graphically intense some applications are one customer that comes to mind would be tyler isd who did a fairly large roll out pre-pandemic and as part of their big modernization effort what they uncovered was even just changes in standard windows applications had become so much more graphically intense with windows 10 with the latest updates with programs like adobe that they were really needing to have an accelerated experience for a much larger percentage of their install base than than they had counted on so in addition to planning for scale you also need to have that visibility into what are the actual applications that are going to be used by these remote users how graphically intense those might be what's the login experience going to be as well as the operating experience and so really planning through that experience side as well as the scale and the number of users uh is is kind of really two of the biggest most important things that i've seen yeah mark i'll i'll just jump in real quick i think you you covered that pretty comprehensively there and and it was well done the couple of observations i've made one is just that um vdi suddenly become like mission critical for sales it's the front line you know for schools it's the classroom you know that this isn't a cost cutting measure or a optimization nit measure anymore this is about running the business in a way it's a digital transformation one aspect of about a thousand aspects of what does it mean to completely change how your business does and i think what that translates to is that there's no margin for error right you really need to deploy this in a way that that performs that understands what you're trying to use it for that gives that end user the experience that they expect on their screen or on their handheld device or wherever they might be whether it's a racetrack classroom or on the other end of a conference call or a boardroom right so what we do in in the engineering side of things when it comes to vdi or really understand what's a tech worker what's a knowledge worker what's a power worker what's a gp really going to look like what's time of day look like you know who's using it in the morning who's using it in the evening when do you power up when do you power down does the system behave does it just have the it works function and what our clients can can get from hpe is um you know a worldwide set of experiences that we can apply to making sure that the solution delivers on its promises so we're seeing the same thing you are krista you know we see it all the time on vdi and on the way businesses are changing the way they do business yeah and it's funny because when i talk to customers you know one of the things i heard that was a good tip is to roll it out to small groups first so you could really get a good sense of what the experience is before you roll it out to a lot of other people and then the expertise it's not like every other workload that people have done before so if you're new at it make sure you're getting the right advice expertise so that you're doing it the right way okay one of the other things we've been talking a lot about today is digital transformation and moving to the edge so now i'd like to shift gears and talk a little bit about how we've helped customers make that shift and this time i'll start with chris all right hey thanks okay so you know it's funny when it comes to edge because um the edge is different for for every customer in every client and every single client that i've ever spoken to of hp's has an edge somewhere you know whether just like we were talking about the classroom might be the edge but but i think the industry when we're talking about edge is talking about you know the internet of things if you remember that term from not to not too long ago you know and and the fact that everything's getting connected and how do we turn that into um into telemetry and and i think mark's going to be able to talk through a couple of examples of clients that we have in things like racing and automotive but what we're learning about edge is it's not just how do you make the edge work it's how do you integrate the edge into what you're already doing and nobody's just the edge right and and so if it's if it's um ai mldl there's that's one way you want to use the edge if it's a customer experience point of service it's another you know there's yet another way to use the edge so it turns out that having a broad set of expertise like hpe does to be able to understand the different workloads that you're trying to tie together including the ones that are running at the at the edge often it involves really making sure you understand the data pipeline you know what information is at the edge how does it flow to the data center how does it flow and then which data center uh which private cloud which public cloud are you using i think those are the areas where where we really sort of shine is that we we understand the interconnectedness of these things and so for example red bull and i know you're going to talk about that in a minute mark um uh the racing company you know for them the the edge is the racetrack and and you know milliseconds or partial seconds winning and losing races but then there's also an edge of um workers that are doing the design for for the cars and how do they get quick access so um we have a broad variety of infrastructure form factors and compute form factors to help with the edge and this is another real advantage we have is that we we know how to put the right piece of equipment with the right software we also have great containerized software with our esmeral container platform so we're really becoming um a perfect platform for hosting edge-centric workloads and applications and data processing yeah it's uh all the way down to things like our superdome flex in the background if you have some really really really big data that needs to be processed and of course our workhorse proliance that can be configured to support almost every um combination of workload you have so i know you started with edge krista but but and we're and we nail the edge with those different form factors but let's make sure you know if you're listening to this this show right now um make sure you you don't isolate the edge and make sure they integrate it with um with the rest of your operation mark you know what did i miss yeah to that point chris i mean and this kind of actually ties the two things together that we've been talking about here but the edge uh has become more critical as we have seen more work moving to the edge as where we do work changes and evolves and the edge has also become that much more closer because it has to be that much more connected um to your point uh talking about where that edge exists that edge can be a lot of different places but the one commonality really is that the edge is is an area where work still needs to get accomplished it can't just be a collection point and then everything gets shipped back to a data center or back to some some other area for the work it's where the work actually needs to get done whether that's edge work in a use case like vdi or whether that's edge work in the case of doing real-time analytics you mentioned red bull racing i'll i'll bring that up i mean you talk about uh an area where time is of the essence everything about that sport comes down to time you're talking about wins and losses that are measured as you said in milliseconds and that applies not just to how performance is happening on the track but how you're able to adapt and modify the needs of the car uh adapt to the evolving conditions on the track itself and so when you talk about putting together a solution for an edge like that you're right it can't just be here's a product that's going to allow us to collect data ship it back someplace else and and wait for it to be processed in a couple of days you have to have the ability to analyze that in real time when we pull together a solution involving our compute products our storage products our networking products when we're able to deliver that full package solution at the edge what you see are results like a 50 decrease in processing time to make real-time analytic decisions about configurations for the car and adapting to to real-time uh test and track conditions yeah really great point there um and i really love the example of edge and racing because i mean that is where it all every millisecond counts um and so important to process that at the edge now switching gears just a little bit let's talk a little bit about some examples of how we've helped customers when it comes to business agility and optimizing their workload for maximum outcome for business agility let's talk about some things that we've done to help customers with that mark yeah give it a shot so when we when we think about business agility what you're really talking about is the ability to to implement on the fly to be able to scale up to scale down the ability to adapt to real time changing situations and i think the last year has been has been an excellent example of exactly how so many businesses have been forced to do that i think one of the areas that that i think we've probably seen the most ability to help with customers in that agility area is around the space of private and hybrid clouds if you take a look at the need that customers have to to be able to migrate workloads and migrate data between public cloud environments app development environments that may be hosted on-site or maybe in the cloud the ability to move out of development and into production and having the agility to then scale those application rollouts up having the ability to have some of that some of that private cloud flexibility in addition to a public cloud environment is something that is becoming increasingly crucial for a lot of our customers all right well i we could keep going on and on but i'll stop it there uh thank you so much uh chris and mark this has been a great discussion thanks for sharing how we helped other customers and some tips and advice for approaching these workloads i thank you all for joining us and remind you to look at the on-demand sessions if you want to double click a little bit more into what we've been covering all day today you can learn a lot more in those sessions and i thank you for your time thanks for tuning in today many thanks to krista chris and mark we really appreciate you joining today to share how hpe is partnering to facilitate new workload adoption of course with your customers on their path to digital transformation now to round out our accelerating next event today we have a series of on-demand sessions available so you can explore more details around every step of that digital transformation from building a solid infrastructure strategy identifying the right compute and software to rounding out your solutions with management and financial support so please navigate to the agenda at the top of the page to take a look at what's available i just want to close by saying that despite the rush to digital during the pandemic most businesses they haven't completed their digital transformations far from it 2020 was more like a forced march than a planful strategy but now you have some time you've adjusted to this new abnormal and we hope the resources that you find at accelerating next will help you on your journey best of luck to you and be well [Music] [Applause] [Music] 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Narrator: From theCUBE studios in Palo Alto and Boston, it's theCUBE, covering IBM Think, brought to you by IBM. >> We're back. You're watching theCUBE and our coverage of IBM Think 2020, the digital IBM thinking. We're here with Jamie Thomas, who's the general manager of strategy and development for IBM Systems. Jamie, great to see you. >> It's great to see you as always. >> You have been knee deep in qubits, the last couple years. And we're going to talk quantum. We've talked quantum a lot in the past, but it's a really interesting field. We spoke to you last year at IBM Think about this topic. And a year in this industry is a long time, but so give us the update what's new in quantum land? >> Well, Dave first of all, I'd like to say that in this environment we find ourselves in, I think we can all appreciate why innovation of this nature is perhaps more important going forward, right? If we look at some of the opportunities to solve some of the unsolvable problems, or solve problems much more quickly, in the case of pharmaceutical research. But for us in IBM, it's been a really busy year. First of all, we worked to advance the technology, which is first and foremost in terms of this journey to quantum. We just brought online our 53 qubit computer, which also has a quantum volume of 32, which we can talk about. And we've continued to advance the software stack that's attached to the technology because you have to have both the software and the hardware thing, right rate and pace. We've advanced our new network, which you and I have spoken about, which are those individuals across the commercial enterprises, academic and startups, who are working with us to co-create around quantum to help us understand the use cases that really can be solved in the future with quantum. And we've also continued to advance our community, which is serving as well in this new digital world that we're finding ourselves in, in terms of reaching out to developers. Now, we have over 300,000 unique downloads of the programming model that represents the developers that we're touching out there every day with quantum. These developers have, in the last year, have run over 140 billion quantum circuits. So, our machines in the cloud are quite active, and the cloud model, of course, is serving us well. The data's, in addition, to all the other things that I mentioned. >> So Jamie, what metrics are you trying to optimize on? You mentioned 53 qubits I saw that actually came online, I think, last fall. So you're nearly six months in now, which is awesome. But what are you measuring? Are you measuring stability or coherence or error rates? Number of qubits? What are the things that you're trying to optimize on to measure progress? >> Well, that's a good question. So we have this metric that we've defined over the last year or two called quantum volume. And quantum volume 32, which is the capacity of our current machine really is a representation of many of the things that you mentioned. It represents the power of the quantum machine, if you will. It includes a definition of our ability to provide error correction, to maintain states, to really accomplish workloads with the computer. So there's a number of factors that go into quantum volume, which we think are important. Now, qubits and the number of qubits is just one such metric. It really depends on the coherence and the effect of error correction, to really get the value out of the machine, and that's a very important metric. >> Yeah, we love to boil things down to a single metric. It's more complicated than that >> Yeah, yeah. >> specifically with quantum. So, talk a little bit more about what clients are doing and I'm particularly interested in the ecosystem that you're forming around quantum. >> Well, as I said, the ecosystem is both the network, which are those that are really intently working with us to co-create because we found, through our long history in IBM, that co-creation is really important. And also these researchers and developers realize that some of our developers today are really researchers, but as you as you go forward you get many different types of developers that are part of this mix. But in terms of our ecosystem, we're really fundamentally focused on key problems around chemistry, material science, financial services. And over the last year, there's over 200 papers that have been written out there from our network that really embody their work with us on this journey. So we're looking at things like quadratic speed up of things like Monte Carlo simulation, which is used in the financial services arena today to quantify risk. There's papers out there around topics like trade settlements, which in the world today trade settlements is a very complex domain with very interconnected complex rules and trillions of dollars in the purview of trade settlement. So, it's just an example. Options pricing, so you see examples around options pricing from corporations like JPMC in the area of financial services. And likewise in chemistry, there's a lot of research out there focused on batteries. As you can imagine, getting everything to electric powered batteries is an important topic. But today, the way we manufacture batteries can in fact create air pollution, in terms of the process, as well as we want batteries to have more retention in life to be more effective in energy conservation. So, how do we create batteries and still protect our environment, as we all would like to do? And so we've had a lot of research around things like the next generation of electric batteries, which is a key topic. But if you can think, you know Dave, there's so many topics here around chemistry, also pharmaceuticals that could be advanced with a quantum computer. Obviously, if you look at the COVID-19 news, our supercomputer that we installed at Oak Ridge National Laboratory for instance, is being used to analyze 8000 different compounds for specifically around COVID-19 and the possibilities of using those compounds to solve COVID-19, or influence it in a positive manner. You can think of the quantum computer when it comes online as an accelerator to a supercomputer like that, helping speed up this kind of research even faster than what we're able to do with something like the Summit supercomputer. Oak Ridge is one of our prominent clients with the quantum technology, and they certainly see it that way, right, as an accelerator to the capacity they already have. So a great example that I think is very germane in the time that we find ourselves in. >> How 'about startups in this ecosystem? Are you able to-- I mean there must be startups popping up all over the place for this opportunity. Are you working with any startups or incubating any startups? Can you talk about that? >> Oh yep. Absolutely. There's about a third of our network are in VC startups and there's a long list of them out there. They're focused on many different aspects of quantum computing. Many of 'em are focused on what I would call loosely, the programming model, looking at improving algorithms across different industries, making it easier for those that are, perhaps more skilled in domains, whether that is chemistry or financial services or mathematics, to use the power of the quantum computer. Many of those startups are leveraging our Qiskit, our quantum information science open programming model that we put out there so it's open. Many of the startups are using that programming model and then adding their own secret sauce, if you will, to understand how they can help bring on users in different ways. So it depends on their domain. You see some startups that are focused on the hardware as well, of course, looking at different hardware technologies that can be used to solve quantum. I would say I feel like more of them are focused on the software programming model. >> Well Jamie, it was interesting hear you talk about what some of the clients are doing. I mean obviously in pharmaceuticals, and battery manufacturers do a lot of advanced R and D, but you mentioned financial services, you know JPMC. It's almost like they're now doing advanced R and D trying to figure out how they can apply quantum to their business down the road. >> Absolutely, and we have a number of financial institutions that we've announced as part of the network. JPMC is just one of our premiere references who have written papers about it. But I would tell you that in the world of Monte Carlo simulation, options pricing, risk management, a small change can make a big difference in dollars. So we're talking about operations that in many cases they could achieve, but not achieve in the right amount of time. The ability to use quantum as an accelerator for these kind of operations is very important. And I can tell you, even in the last few weeks, we've had a number of briefings with financial companies for five hours on this topic. Looking at what could they do and learning from the work that's already done out there. I think this kind of advanced research is going to be very important. We also had new members that we announced at the beginning of the year at the CES show. Delta Airlines joined. First Transportation Company, Amgen joined, a pharmaceutical, an example of pharmaceuticals, as well as a number of other research organizations. Georgia Tech, University of New Mexico, Anthem Insurance, just an example of the industries that are looking to take advantage of this kind of technology as it matures. >> Well, and it strikes me too, that as you start to bring machine intelligence into the equation, it's a game changer. I mean, I've been saying that it's not Moore's Law driving the industry anymore, it's this combination of data, AI, and cloud for scale, but now-- Of course there are alternative processors going on, we're seeing that, but now as you bring in quantum that actually adds to that innovation cocktail, doesn't it? >> Yes, and as you recall when you and I spoke last year about this, there are certain domains today where you really cannot get as much effective gain out of classical computing. And clearly, chemistry is one of those domains because today, with classical computers, we're really unable to model even something as simple as a caffeine molecule, which we're all so very familiar with. I have my caffeine here with me today. (laughs) But you know, clearly, to the degree we can actually apply molecular modeling and the advantages that quantum brings to those fields, we'll be able to understand so much more about materials that affect all of us around the world, about energy, how to explore energy, and create energy without creating the carbon footprint and the bad outcomes associated with energy creation, and how to obviously deal with pharmaceutical creation much more effectively. There's a real promise in a lot of these different areas. >> I wonder if you could talk a little bit about some of the landscape and I'm really interested in what IBM brings to the table that's sort of different. You're seeing a lot of companies enter this space, some big and many small, what's the unique aspect that IBM brings to the table? You've mentioned co-creating before. Are you co-creating, coopertating with some of the other big guys? Maybe you could address that. >> Well, obviously this is a very hot topic, both within the technology industry and across government entities. I think that some of the key values we bring to the table is we are the only vendor right now that has a fleet of systems available in the cloud, and we've been out there for several years, enabling clients to take advantage of our capacity. We have both free access and premium access, which is what the network is paying for because they get access to the highest fidelity machines. Clearly, we understand intently, classical computing and the ability to leverage classical with quantum for advantage across many of these different industries, which I think is unique. We understand the cloud experience that we're bringing to play here with quantum since day one, and most importantly, I think we have strong relationships. We have, in many cases, we're still running the world. I see it every day coming through my clients' port vantage point. We understand financial services. We understand healthcare. We understand many of these important domains, and we're used to solving tough problems. So, we'll bring that experience with our clients and those industries to the table here and help them on this journey. >> You mentioned your experience in sort of traditional computing, basically if I understand it correctly, you're still using traditional silicon microprocessors to read and write the data that's coming out of quantum. I don't know if they're sitting physically side by side, but you've got this big cryogenic unit, cables coming in. That's the sort of standard for some time. It reminds me, can it go back to ENIAC? And now, which is really excites me because you look at the potential to miniaturize this over the next several decades, but is that right, you're sort of side by side with traditional computing approaches? >> Right, effectively what we do with quantum today does not happen without classical computers. The front end, you're coming in on classical computers. You're storing your data on classical computers, so that is the model that we're in today, and that will continue to happen. In terms of the quantum processor itself, it is a silicon based processor, but it's a superconducting technology, in our case, that runs inside that cryogenics unit at a very cold temperature. It is powered by next-generation electronics that we in IBM have innovated around and created our own electronic stack that actually sends microwave pulses into the processor that resides in the cryogenics unit. So when you think about the components of the system, you have to be innovating around the processor, the cryogenics unit, the custom electronic stack, and the software all at the same time. And yes, we're doing that in terms of being surrounded by this classical backplane that allows our Q network, as well as the developers around the world to actually communicate with these systems. >> The other thing that I really like about this conversation is it's not just R and D for the sake of R and D, you've actually, you're working with partners to, like you said, co-create, customers, financial services, airlines, manufacturing, et cetera. I wonder if you could maybe kind of address some of the things that you see happening in the sort of near to midterm, specifically as it relates to where people start. If I'm interested in this, what do I do? Do I need new skills? Do I need-- It's in the cloud, right? >> Yeah. >> So I can spit it up there, but where do people get started? >> Well they can certainly come to the Quantum Experience, which is our cloud experience and start to try out the system. So, we have both easy ways to get started with visual composition of circuits, as well as using the programming model that I mentioned, the Qiskit programming model. We've provided extensive YouTube videos out there already. So, developers who are interested in starting to learn about quantum can go out there and subscribe to our YouTube channel. We've got over 40 assets already recorded out there, and we continue to do those. We did one last week on quantum circuits for those that are more interested in that particular domain, but I think that's a part of this journey is making sure that we have all the assets out there digitally available for those around the world that want to interact with us. We have tremendous amount of education. We're also providing education to our business partners. One of our key network members, who I'll be speaking with later, I think today, is from Accenture. Accenture's an example of an organization that's helping their clients understand this quantum journey, and of course they're providing their own assets, if you will, but once again, taking advantage of the education that we're providing to them as a business partner. >> People talk about quantum being a decade away, but I think that's the wrong way to think about it, and I'd love your thoughts on this. It feels like, almost like the return coming out of COVID-19, it's going to come in waves, and there's parts that are going to be commercialized thoroughly and it's not binary. It's not like all of a sudden one day we're going to wake, "Hey, quantum is here!" It's really going to come in layers. Your thoughts? >> Yeah, I definitely agree with that. It's very important, that thought process because if you want to be competitive in your industry, you should think about getting started now. And that's why you see so many financial services, industrial firms, and others joining to really start experimentation around some of these domain areas to understand jointly how we evolve these algorithms to solve these problems. I think that the production level characteristics will curate the rate and pace of the industry. The industry, as we know, can drive things together faster. So together, we can make this a reality faster, and certainly none of us want to say it's going to be a decade, right. I mean, we're getting advantage today, in terms of the experimentation and the understanding of these problems, and we have to expedite that, I think, in the next few years. And certainly, with this arms race that we see, that's going to continue. One of the things I didn't mention is that IBM is also working with certain countries and we have significant agreements now with the countries of Germany and Japan to put quantum computers in an IBM facility in those countries. It's in collaboration with Fraunhofer Institute or miR Scientific Organization in Germany and with the University of Tokyo in Japan. So you can see that it's not only being pushed by industry, but it's also being pushed from the vantage of countries and bringing this research and technology to their countries. >> All right, Jamie, we're going to have to leave it there. Thanks so much for coming on theCUBE and give us the update. It's always great to see you. Hopefully, next time I see you, it'll be face to face. >> That's right, I hope so too. It's great to see you guys, thank you. Bye. >> All right, you're welcome. Keep it right there everybody. This is Dave Vellante for theCUBE. Be back right after this short break. (gentle music)