live from Orlando Florida it's the cube covering accelerate nineteen brought to you by important welcome back to the cubes continuing coverage of forty net accelerate 2019 live from Orlando Florida Lisa Martin with Peter verse and we're pleased to welcome back to the key one of our alumni John Madison the executive vice president of products and solutions from forty met John it's great to have you back on the cube it's great to be here again lots of momentum that forty minutes coming into 2019 with I can't believe we're in April already lots of growth in revenue product revenue was up you guys talked about the expansion of the partner network we've had some of your fabric ready partners on already today yeah you talked about this third generation and security how fourteen it is is uniquely delivering that for our viewers who were didn't have the opportunity to attend your keynote kind of talk to us about that in this hybrid world how is putting that delivering this third generation what makes you guys different yeah so we talk about the third generation now everyone has different generations that's fine we call it what we are the security driven networking and it's really the genesis of 14f for a long time in bringing together networking and security into one place I think these days or in the past people have built out the networks with a network layer then they try and connect users and applications I think oh wait a minute and this put some security over here and a bit over here and over there in our minds start with both start with a security driven networking concept make sure it works end to end and that will be the most sophisticated most secure application and network you can have and what enables porting that to deliver this uniquely because a number of times today and Ken's keynote I think patrice as well and i can't recall if yours competition came up where the audience was shown the strength in numbers that 14 that has so what makes you guys unique and what you're delivering what are key differentiators from the start has been making sure we can run routing stacks sometimes today referred to as st wayne stacks also security stacks in a very small footprint and to do you need to spend a lot of money what we call security processes which go inside our appliances to make sure that runs very fast but having said that I definitely think customers are gonna be in a high weight world forever for a long time at least anyway we're not only appliances but also personal machines an API security and we also talk about this fabric concept they're able to cover the complete digital attack surface so there's a very important point and we're finding a lot of customers now agree that they want to consolidate they want to make it simpler they need to move faster to this digital world and the only way you have to do that is through a consolidated approach so let's build on this they want to consolidate they want to make it simpler more common and how they in policies and management now along comes the edge what's the dynamic there what's happening is all people refer to the perimeter disappearing okay that's happening to a certain extent because data is moving into cloud you've got different one implementations but what's happening when you do that is you're creating new edges a really good example is sd1 which used to be very closed off the wound used to be something that connects branch offices back to the data center but nobody got involved in that well now you're opening up that when two different types of transport mechanism you're creating an edge I always refer to these edges as being created by different trust levels there is a may be a secure trust level here less trust here it creates an edge and you absolutely need to protect all those edges but give us an example of that so for example when you say differentiated trust levels my edge might be at a customer location is that kind of what versus my edge might be at a branch office is that what you mean by a different trust level push that concept force you know it's more for example if I got a branch office and I've got one connectivity going back to my data center that's encrypted and secure but I've also opened up connectivity to the internet the trust level between that encrypted link and my connection to the to the internet is very different the Internet's open anyone can see there so that trust level between those two is very different and that's what creates the edge and so therefore that becomes a key feature in how we design diff edge implementations it is it's also a key requirement on what type of deployment mode you use we have appliances we have virtual machines we have clouds containers API is going forward I'm finding that customers are still very reluctant to put software implementations of firewalls against the Internet appliances are harden they run faster having said that inside the cloud obviously inside software-defined data centers virtuals fine what are some of those customer concerns that you're hearing well I think what happens is you know if you putting a piece of software against the internet it's open to all sorts of attack it's the same as giving IP addresses to anything it's like a factory that creates an edge as well and you need to harm that edge against that phone how can st when helped why is this such a crucial component of digital transformation you know sometimes markets are overhyped I remember that the Cosby marketplace a few years ago it just was a feature to be honest I think sd1 is extremely important the reason it's important is the SD one controller that controller eventually tells users and devices how to get to the applications and so I tell customers that investment for you is extremely important you need to own it you need to make sure it's flexible you need to make sure it's secure and so I think the SD web marketplace or one edge is the kind of larger term for it is extremely important investment for customers do you anticipate that I mean you guys invested you guys put forward a lot of products we made a number of different announcements again going back to that notion of simplicity that notion of consolidation what is the breaking point for your typical IT group in terms of the complexity of that they can accommodate and absorb when we start adding additional function within the overall network especially from a security standpoint well I think it's a bit broken already they're really struggling to keep up from one perspective no today we announced our forty OS 6.2 is our major operating system and what we try and do is consolidate functionality as much as possible inside our fabric through a single console so there were single operations capability so it's easier for the operations people for the security people to implement things and we're also implementing automated mechanisms like security ratings which do a background run of best practices for example that make it gain easier for those cut those teams to run a full analysis of what's going on so was it about three hundred features roughly laughs I counted them individually okay good yeah well do a recount of a tremendous amount of feature addition to forty OS announced today what are some of the things business outcomes Peter and I we're talking about outcomes with several of our guests earlier business outcomes new revenue streams new products going to market faster the also being able to become less reactive maybe more proactive in terms of security cuts can you walk us through some of the outcomes that 14 that customers can expect to achieve from some of the OS announcements and enhancements yeah I already talked about one which was the consolidation which means they can do multiple things with the single platform that's an important one for them also some of those some of the cost savings around that some of the operational cost savings I think also for our partners for example they like the fact that we're keep that we keep adding services on top of that fabric they can take those services then apply them to their customers and make sure they can add value inside there as well so there's two angles to it the one is making sure our customers are better protected they can consolidate save money invest better training and then to our partners so that they can provide more value to their customers so one of the things we were talking to Ken about is the fact that you have invested in a six and security processing units and content processing units etc that are capable of accelerating the rate of which these crucial security algorithms run that opens up that creates additional capacity to add more function both for you as well as your partners are you starting to see some of your ecosystem grow faster as they better exploit that inherent power and performance that you have within your appliances and devices definitely I think we're seeing new partners come from new areas it also fragments a bit and that's why we announced this new partner initiative going forward which is a bit more customizable but I you know I do think that going forward both our customers and our partners are looking for more of an architecture approach you know again if you go back five years here's a box and off you go and there's install it and we're good and again when you saw those security threats yes we produce a point solution to fix it normal we keep moving on there now looking at architectures over the next five years a known only just cyber security architectures but networking architecture storage architectures and all coming together so we definitely need to train our partners I think here we had over fifty of our what we call networks a network security expert eight it's the highest level of architecture and half and the partners but going forward we see much more partner involvement in an architecture approach and our customers want that because they don't want to have a point solution that's out-of-date in a year's time or a new threat comes along and makes it redundant so how are you you mentioned you mentioned network security and storage what other things are starting to inform that architectural approach that you're taking it's everything now so we know the factories now are completely automated all the different utilities have IP addresses are running almost all the way down to the end point just everything has more flexibility and is more open and so definitely all of that informations bouncing around inside IOT devices inside the wires like data centers and all that data needs protecting that's the key of protecting the data and to do that again we keep saying you need to have an integrated approach to networking and security how does the customer work with 40 net and your partner ecosystem to achieve that integrated approach assuming that there's a you know an enterprise out there that's got a spectrum of hybrid multi cloud environment with a spectrum of security Point solutions pointed it you know different components of an infrastructure how do you help them on that journey of taking the many disparate security solutions and leveraging the power of cortina and your partners to get that integrated truly integrated consolidate consolidated view it's a couple of steps maybe maybe many steps the first one is customers don't want to throw everything else straight away and so what they want to do is be able to integrate and connect and so we have some of our partners here for example of fabric ready partners we have connectors we build into their platforms and orchestration systems and that's their first step once they get there they start looking across to see what they can consolidate so can they take a specific solution from this and I'm bringing inside and then eventually they start to look at the long-term architecture if they're moving apps to the cloud or they want to open up their where or they want to provide kind of SD functionality inside their branch but so it's definitely a phase approached I don't see many customers some customers would take an application and create from scratch inside the cloud they can't do that with their infrastructure they can't just completely wipe it clean start again it's definitely more of a phased approach so as you think about the phase approach and you talked we heard from we heard from the sales port side the notion that the SPS the service providers want greater customization the enterprise wants a different level of access to the core technologies so that they can do not customization not exactly I remember exactly what the term was but what degree will customers retain control over how that architecture gets implemented versus what degree is it going to get baked into the stack itself a bit of both I think you know for most customers they're running towards a digital platform and they need to own that digital platform if they give up complete control you know how do they control that their destiny going forward so they want to own the digital platform but they haven't got the resources to do everything so they'll outsource some to service providers and carriers some of the partners for example but again I keep coming back to this they want to get to a point in five years time where they've got a digital footprint it's very flexible but they also want to make sure it's very secure because as you open up that digital footprint you're opening up all these different edges inside the network and it's coherent which is the architected approach yes because if they don't have a coherent approach to doing it they don't know what the interfaces are or are not competent and that includes interfaces with partners yeah they have to look forward and say I'm gonna implement X amount in the cloud I'm now gonna have some edge compute going on here I want to shape make sure my branches have the best quality of service for these certain applications that go back to this so they look at all those parameters and then architect something from there so I know that security network security app security info security cloud security is in our imperatives for every industry but I didn't notice that the breakouts today feature I think there's a couple of vertical features healthcare financial services retail I'm just curious are those just great use cases that show the potential and the power of 14x technologies or are those industries that are either early adopters or maybe more leading-edge because they have such a tremendous amount of data that needs to be secured as their ecosystem does this yeah so the industry verticals I think I think for the very large ones they're very similar all of them have IOT that's expanding or don't want to have a flexible wand system all them I've got something some compute power and the cloud and the edge going forward so I know there's differences in industries for the very large enterprises it's the problem seems the same these huge organizations and they have all of these things going on in each trying corner I'd you come down to mid enterprise I think there's more reason to consolidate but then you see more differences in the way they approach things like a healthcare they're really focused on that healthcare kind of security of devices inside the hospitals etc education oh they need to connect in these big data banks and transfer the research information so big organizations I say pretty much the same problem midsize organizations become more relevant to a specific industry well John thank you so much for carving out some time speak with Peter and me today we appreciate that and it's exciting to see and feel the momentum that 49 is bringing into 2019 wealth I'm say inviting me our pleasure we want to thank you for your time as well for Peter Burris I am Lisa Martin you're watching the cube [Music]

>>live from Madrid, Spain. It's the Q covering HP Discover Madrid 2017 Brought to you by Hewlett Packard Enterprise >>Welcome back to Madrid, Spain. Everybody, this is cute. The leader in live tech coverage And we have a day to HP discover Madrid. My name is Dave Volonte with my co host for the week Peter Verse. Jeff, Carla is here. He's the senior director of solutions. Go to market system integrators at Hewlett Packard Enterprise and Kalyan Gara Mela. Who is the i o t manager? Deloitte. Yes, Gentlemen, welcome to the Cube. Thanks for coming on, You bad love too deep here. It's always a great time. Yes. So you know, when you come on with Deloitte, we always sort of mentioned you guys. One of the top system integrators in the planet. You got deep expertise and vertical industries. You guys bring the technology expertise. Last time we were talking about manufacturing. This time we're gonna talk about retail. Yes. Why? Retail, You know, retails in turmoil. Everybody's got numbers on war room. But you guys are going after that, helping some of your customers so to take advantage of their physical presence, bringing in an online presence move into digital. Is there hope there's hope, their retail dead? You know, >>I hear all the time about this retail apocalypse retail is dead, and in reality, it's not dead at all. Still, 85 to 90% of purchases were being going through a brick and mortar store problem here, and the apocalypse will happen to those brick and mortar retailers that don't change. They don't digitize and change to the changing demands of a consumer and the way they want purchase something, give you an example, my son or even myself. Now I increasingly want to do things through an experience. My computer, my mobile phone. I do research. I I want to understand. I want recommendations. I want personalization. I want to be catered to. I don't want to go stand in line. Well, that experience can be done but are unique. Ability. Is taking that experience in a planet into a brick and mortar environment? >>Well, I got to say I love going Cabela's with my kid with my wife. I mean, I could spend all day. Hey, get that on Callie and tell us about your you're rolling. The Lloyd, obviously specializing in the retail practice. What, Your background? >>Yes, my name's Kalyan. Gotta Mila being a coyote manager from the >>delight you >>practice based out of San Francisco, and we have been working with our partners and friends. Hitch be Aruba over the past year or so, helping them dollar, I ot go to market projects, products that can be that we can take to market on Dhe. Recently. We're just working with manufacturing and retail industry. >>So what's the conversation >>like with your customers? As I said, everybody's got an Amazon war room they're trying to figure out. Okay, >>how do we leverage our physical presence as an advantage? What were the conversations like with clients with >>our clients? Mostly that talking about How did the mimic our online channels? Right. If I go to an online retailer, you know, if I go open, say amazon dot com, they know exactly what item I am for chasing where I'm going next. What? How much time I'm spending. So in order to differentiate the brick and mortars in order to differentiate themselves from the fellow retailers, they have to offer that customized shopping experience in order to get given a reason for the customers to come in store and make that purchase. So they're trying to look at what new technologies that we can can we can help with. What are some of the new processes that we can help with? And that's where most of our conversations have been going on, >>Really experience. Problem >>it is. And you talk about the bells and I moved into a new house, ready to buy my big >>lazy boy chair and watch Sunday >>football, and I'm not gonna go online just by here. I want to touch and feel that I was late and I want to understand. Well, that is a perfect opportunity of providing an experience. Allows me to do the research, get suggestions, go into a brick and mortar store. Try it out, then guess what? I'm getting personalized. Hey, you know what? There's a nice beer stand that I could put right next to that table. Be calm, perfectly complemented. Hey, there's a light that can look over So we have that ability of actually tying together and experience, actually predicting in advance what the customer really doesn't know they want next. But they really do want example. We just walked out of a client engagement. Beautiful example. Plan Engagement sells high end women's fashions, right dresses and shoes and accessories. Everything. And he's He basically said, We're dabbling around with R F I. D tags, um, inventory management, but we don't know what to do, right? Bingo. We now have a proven, referenced architecture called the Connected Consumer. This is a preview to be announced to be soon, but that can allow, actually that client to integrate and optimized and digitized the solution for a number of different use cases that spans a unique customer experience in store operations and efficiencies, and then providing insights through analytics in store analytics to make decisions quickly. So you've got by using this architecture building of solutions based with Deloitte Competence season capabilities in HPD Aruba technology. We can deliver that to increase top line revenue, increase basket side, decrease inventory costs, lost inventory and provide much greater brand loyalty to those customers by having a nice, personalized teachers. They know me by name. They know what I'm looking for in advance. Beautiful solution. >>So the online retail world did two crucial things. One is provided new way of customer to buy something and number two, it provided a new way for the retailer to learn something about the customer. Very, very powerful. But as you said, we're still last time. I checked physical things that move through space that used physical senses, too. Make decisions, Tactile. Do I like the color? You know the experience. I mean, I remember having arguments with people about whether the Apple stores are ever gonna have any impact in the world. And, boy, did they prove that experience of physically being there matters. So in many respects we're talking about, We're talking about creating spaces, the correspond to the experience that a customer wants in a way that doesn't force them into another channel. >>I think that is excellent. Thank you will hear security and character talks about who these are Aruba team. And they are renowned for taking a space and providing using technology and I, t and software and security to provide a total experience, an immersive experience for those that are occupying that. >>But that's not how retailers used to think. What they used to think was this is the space where I put my inventory where I show my product and then I'll put the catch register over here. What you guys I presume we're trying to do is show how. Show them how they could turn that physical space into a place that can bring in the online digital elements, complimented in a way that makes that door a source of different jack >>experience in the brick and mortar store and allows the comfort of Yeah, you know >>that makes it differentiated so that someone wants to go there, because that is a valuable experience in and of itself. >>And sadly, retailers of the past 40 years have always relied on big brand names to attract customers. If I have the best brands in the world, customers will come to me back. That scenario doesn't hold true anymore. You need to give them a reason. A personalized, curated experience for them to come in >>well, not least of which is the digital technology allows us to spin up new brands like overnight and so also so there's a there's it's having an erosion of effect on the other side of the inventory. So tell us a little bit about where you think over the next few years that differentiated in store experience is gonna be what is going to constitute great retail. >>I'll start enough shit. >>First and foremost, the expectations of millennials and other generations is more of that online experience. So I think I think retailers of the future have to be able to provide that customized experience. To be able to provide predicted people are not waiting in line is not an option in the future, right? I mean, even you. You look a waiting in line is not an option. I think that ability of you have to have more instantaneous gratification but allowing, if you will, the personalization being covered. I think that one expectation for those that want to sustain a business in retail in the future >>and add on to that right. I mean, the marketing managers are the store managers of the past have always relied on opinions rather than data and insights to make this better business stations. Where do I place my product? Where are my customer spending most of my time? It's just guess it's most of it was guessing. Now there is a technology out there where we can actually monitor what's happening inside your retail store and dead. While you can make better business nations to help you with your customer journeys, >>traffic, foot traffic, you know through video analytics and the data someone's hanging around the Nike booth or whatever you know financially, and you can purposely point them and give them suggestions of 20% off. And so you can personalize that experience. >>So wait. See Io client on DDE that's in the retail space on the way he described it is, you gotta break the whole thing down. Let me test you guys. You have a period of I want the experience of shopping on. The example that he gave me was a bike company a number of years ago who used flexible manufacturing to collapse the time high end bike to collapse, a time from order in the bike, getting the bike down to a few days. And they failed because the customer like waiting the process of buying, reducing time. Simple, straightforward, but also what they said. And this is the kind of flexibility we're talking about is some people don't wanna walk out of the store with the product they want to deliver to their home, so the store is again, not the place where the inventory is. It's the place where you experience the product and that they create an option. How would you like that? I like to be delivered to my house. No problem. There you go. Is that the kind of thing that we're talking about in the future? >>Absolutely. We call it the unified commerce of the Arm and channel shopping experience. You want to give the customer all the options available. Like you said, I could buy online shipping in store O. R. I can buy in store get into my house all the different options that a customer is looking for. A non online channel, which is easy and convenient. We want to do that in a brick and mortar as well, and our solution can help you do that as well. So you >>guys encounter a client that is, you know, declining same store sales management is concerned about, You know, the future. It seems like it's a tired sort of experience and, you know, that's sort of the end of the spectrum. And you want, you know, the to be his future. Stefano, the talk about where do you start so >>who brings what experts is. >>Actually, I'm gonna repeat what I said last time. Our mantra is First off, you gotta think big. Then you start small and then you scale fast. And what I mean, that what we mean by that is with the Lloyds capability. It's been a week and jointly come in and help a retailer. Let's think it through. Let's think you have how many branches looking to wear? What are your problems? What your inventory leak age. You know what your current experience, but you're in store WiFi. We can build a plan on what we can do. But the next big problem that we see is not about the technology is about the people in the process. How do you convince its How do you commit? Some who invest to change well, this through our proof of concept capabilities, we have the ability of starting small. Let's just go in and we can do through this architect modular proven architecture. We could do a starting Well, let's just start with some R F I. D tags and tags and start small. We can deliver the business value and calculate that and extrapolate that out if we apply that to your all your stores and scale fast. So we're making it. This be an on ramp for those retailers because they're saying what I do. I know I need to change, but what do I >>So you do like a test store model, right? Okay. And then what? That's your POC is actual. >>Yeah, And then So I wanna go back a little bit on this whole coyote offering. It's a composite offering, right? It takes a lot of technologies coming together and a lot of SMEs subject matter experts to come in and help you to build a whole solution. And that's where I think our solution is where it's ready to go, where all the pieces have been put together and can be easy from day one. The time to market has been drastically reduced because of this. Right? So we see a lot of value in that. >>So So you're able to say Okay, what kind of target customer? What kind of inventory? What's the cost of it? What's the turn? Take all those business attributes and then say we can map that back into a set of physical and system components that you can scale fast >>really comes around you. Three buckets were doing this to optimize an increase revenue, basket size conversions, everything timed revenue, decrease costs, efficiencies and inventory logistics people, uh, labor. And then providing a much greater experience of brand loyalty, which will also affect both costs and >>capture and capture additional data. So, for example, returns means two things costs, but also, somebody had a problem. >>So, uh, we're out of time, but so summarize kind of where you guys were at, >>uh, your solutions when it's gonna be available, you go to market, give us the >>tickets. That right now we're here at HP discovered we're previewing this connected consumer architecture. We're will deploy it. Calendar quarter one of next year will be the full announcement. We have contact information. We would love to engage in clients and start that discussion now around doing proof of concepts on dhe. We're going to be not only driving this collective retail solution that could be extrapolated into different use. Cases in markets were also continued to drive the Moorman industrial Internet of things and manufacturing offering around predicting maintenance, asset monitoring, maintenance that we talked about in Vegas. >>Great. Well, I hope next next Vegas come back with some examples and some a customer, and we could go through so that one of impact you've had, maybe you'll be through a POC. At that point. I'd >>love to get the cube into one of their poc >>a well loved. All right, guys. Thanks very much for coming on the Cube. All right. Good >>to see you. See? All right. Thanks. Keep it right there, >>buddy. We'll be back with our next guest day. Volonte for Peter Burke alive from Madrid 17.