(upbeat music) >> Announcer: Live from Madrid, Spain it's The Cube, covering HPE Discover Madrid 2017. Brought to you by Hewlett-Packard Enterprise. >> Welcome back to Madrid, everyone. This is The Cube, the leader in live tech coverage. We're here, this is Day Two of of HPE Discover 2017. My name is Dave Vellante and I'm here with my co-host for the week Peter Burris. Ana Pinczuk is here, she's the Senior Vice President and General Manager of HPE Pointnext Group. >> That's right, that's right. >> Welcome back to The Cube. >> Glad to be here. >> Many time Cube alum. >> That's right, that's right. >> Pre-HPE and second time since, when did you start, in February? >> Yes, I know it's been nine months, I'm a veteran. >> You're a vet, right. (laughs) How's the gig going, you hitting your groove swing? >> Yes. >> Dave: Looked great up on stage yesterday. >> Thank you so much, yeah I appreciate it. Yeah I think we are, I came on board in February and it's been a run ever since. We launched a brand in February, so that's when I think when we sort of talked last. And then since then, we've just launched another brand which is HPE GreenLake for flexible consumption model stuff. And we've been doing a lot of great things, we've been doing partnerships with folks, I've been going out to each one of the regions talking to different customers, it's been going really well. >> Well so Pointnext has become a linchpin of HPE strategy. After the spin-merges, things became more clear when you talk about making hybrid IT simple, getting to the intelligent edge, services is now front and center. Meg talks about it, Antonio talks about it. >> That's right. >> Why is services so important and how do you see that scaling in the organization? >> So first of all, I definitely believe the world is turning to be a services-led world and I tell folks that it's really two things, it's services-led and then advisory-led, really advisory. And particularly because our customers want to really undergo these new digital journeys. I was just on stage talking to one of our customers, the Tottenham Hotspurs, and they're redoing their whole stadium and they're trying to increase the interaction and the engagement that they have with fans. So that's where services come in, and so we're really services-led that way and the second thing that's a phenomenon is really the cloud has really helped us learn to want everything instantaneously and to want things when we need them and when we think we need them. And so a lot of services is really about enabling those experiences in a consumption model. So that's the transformation I think that HPE is going through right now, just being a product company, but really moving to being services-led to deliver these digital experiences. >> Well one of the things that we've observed over the years, as folks who work with customers in thinking about their technology, is that there's a co-mingling, a bringing together of the idea of invention. And one of the things that's most attractive to me about a services-led, or acknowledging the role of services, is it really, innovation, is a two-part process. There's an invention, which is the engineering element, and enters the innovation, which is the social, the change. And one of the beauties of taking a services as opposed to a product approach, is that you end up focusing on the social change. >> That's right. >> You end up focusing on what does it mean to use this, apply it, make it happen, and it accelerates the innovation process. I'm wondering if by having a more services-approach, HP's able to look at this significant new range of problems you're going to try to address, but address them as a social innovation challenge as opposed to just getting product into market. >> Yeah, no and that's absolutely right. I'll give you another cool example, we have a customer Yoox Net-A-Porter, and they're a digital sort of online experience provider. They support brands like all of the expensive luxury brands that we know and love. And they're trying to help stores innovate, so let's say you're Prada or Marni or Louis Vuitton, they're helping provide a social experience to their luxury brand consumer. And being able to do that, not just mirroring what you would get in a store, but really innovating in how do you engage with that kind of a consumer online. And so for example, they allow you to shop online but then they'll bring the product to you, it'll be all wrapped really nice, they wait for you to try it on to make sure it's okay. So that's an example of social innovation, not just thinking about how to provide product to enable a website, but how do you actually then help a customer innovate in that whole engagement model? >> It's innovation that is made possible by a whole lot of technology combined with simple ways of introduce change, not just to consumers, but also the people who are ultimately responsible for providing that service. >> Ana: That's right, that's right, that's exactly right. >> Peter: Is that one of the basis then for thinking about Pointnext? >> It is, yeah, it is because people ask me, you know we've always done services and a lot of our services were product-attached services, you do support services, operational services, data center care, those sorts of things. And then we decided to sort of launch Pointnext, and the idea is that this is more than just what we've traditionally done as product-attached. This is really coming at it from a completely different angle, which is recognizing that there is an element of social and management of change that comes through digital. And that's why we talk about advisory-led. Part of that advisory-led is really helping companies figure out what is that new phenomenon, how do I actually shift the experience that I want to enable and how do I bring social innovation with a set of partners, too, because experiences really require us to work not just with our own products, but with software providers, with inside and others. >> Peter: And your customer's partners too. >> And our customer's partners as well, I mean who the customer is is shifting as we put this together. I'll give you an example, when we work with automotive companies, we've gotta think not just about, let's say, the car company and their connected car, but we also have to think about how the consumer of the car is going to interact with the IT environment in the car. >> How the dealers are going to sell it, >> Ana: And how the dealers are gonna sell it. >> how they're gonna make money, the whole thing. >> How they're gonna do predictive maintenance on it >> Exactly. >> So you start to think not just about one experience, but all the elements that come from that single experience. >> Well we just had Deloitte on talking about retail experiences and transforming brick and mortar stores, so that's a key part of it. So partnerships is also something critical, 'cause you can't do everything. >> Ana: That's right. >> So I want to come back to some of the invention piece. When you were up on stage talking about flexible consumption models, you know, cloud, when we went into the downturn it was kinda a tap on the shoulder. Coming out of the downturn it became a kick in the butt to a lot of tradtional IT players. So you've had to respond to that. And you have, flexible consumption models, pay-as-you-go models. So I started to make a list because we've been talking all week about two ends of the spectrum. We've got here at HPE Discover, AWS re:Invent's going on this week, completely different philosophies about what customers want and how to serve those customers. And so you've got to a great degree mimic the cloud experience. And you can't do it 100%. At the same time, the cloud can't mimic what you guys can do. So I kinda wanted to go through a list and think about where have you closed those gaps, where do you still have advantages for customers. So things like pay-as-you-go, flexible capacity, you've done a lot of work there. Can you give us the update on that and how big is that gap when you talk to customers? >> So first of all, it's interesting because when some of our competitors talk about pay-as-you-go, they start by talking about just a leasing arrangement. They say "Okay, it's a lease." And this is far beyond a lease. I think I can eliminate quite a few of our competitors, (laughs) not cloud competitors, just by saying we've gone beyond that, right. And we provide a full service. So it's the hardware, the software, the data center care, the operational management. And then we turn that service into a pay-as-you-go model. So that's the first sort of innovation and differentiation. And we do that on-prem or in a hosted environment, that's the first thing. The second thing is that part of what we do is we help to manage that environment for the customer. So in a flexible capacity model, we over-provision in a sense and we have a buffer and we understand where the customer's going, how much their utilization is, and then we automatically sort of manage that whole thing for them, up or down depending on what happens. I think the third thing, which is part of the innovation, which is a little different, is we also do the integration of other technologies into the offer. So yesterday I was talking about private backup as a service. There we've got the hardware, the software, it could be Commvault let's say backup software, all the management associated with that, including the support that you need for that, offered in an outcome-based service. So what we're doing there is we're also innovating in the metering, what we're saying is we're going to really provide you an outcome, and that outcome is a successful backup. So you don't actually have to worry about the equipment, you don't have to worry about is it infrastructure-as-a-service? You know, AWS, whatever, we're actually providing a full solution in an outcome-based. And I think that's a little bit of what differentiates us from maybe some of the solutions that are out there, from others. That said, I view this as providing the right mix to our customers, so although, yes, you can say that we're competing with the public cloud, because customers have choice, at the same time part of what we're trying to do also is bring those two together, which I think is unique for us. >> Makes more same philosophy, different approaches. >> Different approaches, and by the way, if you're customer-centric, then what you wanna do is provide customer choice and do the right thing for the customer, and to say where does it make sense to be on the public cloud, or in a private environment, and optimize for the customer benefits that you're going after. >> Well I think it's fair to say that the world has learned a lot from what AWS has done, and said "Hey, we can take that "and we can apply it to our customers' businesses "on-prem or in a hybrid environment." >> And by the way, AWS, especially with our CTP acquisition, they've been a long-term AWS partner and we're having conversations with AWS that say okay, if we're going to really focus on customers, and we're really customer-centric, then how do we work together? Not just AWS, but Microsoft and Google and others, how do we work together and look at where we can optimize our solutions to be able to do the right thing for the customer. >> So our clients are sick and tired of hearing me say this, or us say this, but we believe that where we're going is the cloud experience for your data demands. >> That's right. >> So the way we think about it and I'm wondering if you would agree, is that the first conversation we have with a customer is what's the outcome, what data is required to serve that outcome, how're you gonna package it up as a workload, and where do you naturally need to run that based on latency, other types of issues. Is that kind of how Pointnext is working with customers as well? >> Yeah absolutely right, so we wanna come in, customer in, so you wanna be able to say "What is it that you're trying to do from an outcome?" I described a backup outcome, another outcome might be I'm trying to accelerate my ability to roll out new agile solutions, or microservices-based applications. So we have that conversation with a customer, we then say okay, for that kind of workload, what are you requirements? What are you trying to do? We might also come in and actually, 'cause sometimes what people think they do and what they actually do in their environment is different. So we can come in and say okay, let me actually measure what you're doing and see what you're doing and then bring that information back to them. And then have a conversation about what to do with your workload and what makes sense. So I think it's a very close engagement with the customer, it's based on real data about what the customer's trying to do. And frankly that was one of the reasons that we made the CTP acquisition, as well, because it started to complement our portfolio. A lot of the capabilities that we had were very robust, in particular around private cloud, but just having the public cloud angle there and sort of strengthening that piece was super important to be able to have that conversation and truly enable the right mix. >> Well now that brings up the topic of multi-cloud, which kinda, to use a sports analogy, it's jump ball. It's kind of a free-for-all, everybody wants that business. I guess with the exception of some of the big cloud guys aren't interested. But certainly, Hewlett-Packard >> Peter: Well don't believe it, want to avoid it. >> Yeah well, but that's the reality is there's gonna be multiple clouds, we know this. Particularly with SaaS. So a company like Hewlett-Packard Enterprise, obviously has to play in that space. So I wonder if you could talk about the strategy there, why you feel confident that HPE is in a good position. >> Yeah well a couple things, first of all I think it's really good to be, we're somewhat independent, we're not totally independent because we've got a whole set of products, but we're somewhat independent in the sense that if we wanna be truly hybrid and enable other public and private solutions, we wanna be able to give customers choice in terms of the public domains that they can work with. And so we're sort of in a great position as a large provider and with the relations that we have in the enterprise in particular, with our customer base, to be a little bit of Switzerland and be able to say, okay, let's have that conversation about the right mix and enable these multi-cloud solutions, that's the first thing. The second thing is we have relationships and great partnerships with many of these providers. So take Microsoft, we've got an Azure relationship, an Azure stack opportunity, so we've got the ability and by the way, we do many of their applications as well. So we've got the ability to help have that conversation with our customers to say okay, do you wanna be on-prem or do you wanna be in the cloud? Even with one provider, and to do that, and so we have the opportunity to provide robust solutions even with one private and public provider. And on top of that, we've got a consultancy with our professional services. We wanna be responsive to our customers, we've got now HPE OneSphere. And with HPE OneSphere we can be data-driven and actually provide our customers a view of their environment and help to be a little bit of that Switzerland to say look, here's what would be best for you and help to have workload mobility together with OneSphere. So I think we're well-positioned, I tend to call it my stairway to Heaven. In a sense we start out at the bottom talking about infrastructure and support, and we've got great relationships there with our customers. If I launch the flexible capacity offers, we're starting to deliver outcome-based solutions. When I bring in CTP, we'd go up the stack and we now provide advisory and the consumption solutions. And with OneSphere now you go up the stacks just a little bit more and say not only are we gonna advise you and provide you those executables with consumption models, but we now have capabilities that allow you to sort of optimally choose what's the right thing for you. So I think we're well-positioned, by the way, with CTP we've got sort of a managed, sort of cloud sort of capability as well. We manage compliance and other elements. So we're able to have in our portfolio sort of value-added services above and beyond that help with multi-cloud and making sure that customers can be compliant, secure, and have the right experience on a multi-cloud environment. >> Yeah I think a lot of people that don't know CTP don't understand how deep their expertise is. They're only a few hundred people, if that. But they're rockstars. >> They're over 200 people. >> Serious thought leaders with real deep connections. I've gotta change subjects to the last topic area. As you know, The Cube from day one has always been a fan of having women on, and promoting women in tech. We first met you at the Anita Borg Institute of the Grace Hopper Conference. Meg Whitman is obviously a woman leader in tech and she's leaving HP. We've got Meg and we've got Ginni. And Ginni's coming to the end, I don't know, she's getting to the age where typically IBM retires its CEOs. You've got two prominent women in tech now leaving. Now maybe IMB will replace Ginni with a woman. HPE has chosen Antonio, great choice. But your thoughts on a leader like Meg, obviously has done some great work. But we're losing one. >> I know, and so >> How do you feel about that? >> I mean, you know, I'm very conflicted if I've gotta be honest. One one hand, as I joined HPE I had never worked for a female CEO so I've really enjoyed watching. You know it's always great to have mentors and to have people that are advocating for women, so I really enjoyed being part of Meg's organization, I'm really sorry to see her go. And she's an icon as well, so she does a lot, in fact this afternoon we're gonna be doing a session for women just here at the conference. So very sad to see her go, at the same time I think we as women, and men by the way, have a responsibility to build the next generation of leaders. And I think that's where I focus my energy and I know that I'm gonna be sort of a high profile female in the HPE environment so I feel that sense of responsibility, not just within HPE, but within the industry, to help to cultivate an environment that takes advantage of half of the population and enables innovation through them as well. So I think we've gotta get more women up there. I think part of it is really bringing up the next generation and frankly this next generation, they don't have tolerance for waiting for things, whatever, and they feel like they're super entitled to have the right and the choice >> Peter: They are. >> And they are, right. But that seems like an easy thing to say, but in some sense we come from a generation, many women as well, which have had challenges especially in the tech world, in terms of really breaking that glass ceiling. And I think we've got some amazing women and some amazing leaders as well. I'm part of the Anita Borg Board of Trustees as well, and we were at Grace Hopper and we had Debbie Sterling, some really great women that are coming up the ranks that are CEOs, that are CTOs, that are really leading the way and so I'm very hopeful that the conversation, by the way, about women in tech is really prominent right now. And that I think it'll open up opportunities for women to shine going forward and I think that should happen for HPE as well. In fact right now its me and then Archie Deskus is the CIO for HPE. So we're trying to do our part to sort of make sure that there's other women in leadership as well. >> Well you're a great example of a current and future leader. >> Thank you so much. >> Really appreciate you coming onto The Cube, Ana. >> I appreciate it, thank you. >> Great to see you again. >> Great to see you, great to see you, thank you so much. >> Alright keep it right there everyone. This is The Cube, we're live from HPE Discover Madrid, we'll be right back. 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>> Announcer: Live from Madrid, Spain it's theCUBE. Covering HPE Discover Madrid 2017. Brought to you by Hewlett Packard Enterprise. >> We're back in Madrid everybody. This is theCUBE, the leader in live tech coverage. My name is Dave Vallante and I'm here with my co-host Peter Burris. This is day one of HPE Discover Madrid. Parvesh Sethi is here, he's the Senior Vice President and General Manager of the global client services at HPE Point Next. Parvesh thanks for very much for coming back on theCUBE. >> Good to be here. >> Dave: Last time we saw you, you were 30 days into the job. >> That's right. >> Maybe 45 days. So how's the first six, seven months been? >> It's been busy. It's actually been very good. I administered the transformation change that's taking place within the company. It's actually been really good to also working with the clients on the hybrid IT journey side of the house. And since last we spoke, we also did the CTP acquisition, which has been very well received as well. >> Well I love it, when you guys go and talk about transformations to customers. We're experts. >> Parvesh: Yes. >> We live this. >> Parvesh: Live this everyday. >> Does that enter into the discussions with your customers? It must right? >> Yeah I think it gives us a lot of credibility. Especially when you take a look at the journey they're on. And we talk a lot about hybrid IT today, making it simple. And one of the things we always talk to them about is that hybrid IT is not just infrastructure cloud. You really have to take a look at the full spectrum of the services that had to be delivered. It could be as a service providers, could be subscribing to a platform, and hosting it on-prem, off-prem, private dedicated infrastructure, or public cloud. Just a mix of those and being able to decide as to what are the characteristics that you should look at, and what will decide as to what goes into public cloud, private cloud, or where should those services come from. >> What do you tell the skeptics? You know the, why should I do hybrid cloud? Why don't I just put everything in the cloud? Do you get those questions, or is it more customers saying hey, help me with my hybrid problem? What's the-- >> Almost every single client meeting that I've been in. Everyone acknowledges the world is hybrid IT. And I have not met a single client yet who says all of their workloads are going into public cloud. I think a lot of it depends on what they want to achieve. If they want a lot of elasticity and if they need SLAs, or if they want to bring the workload back in, security compliance or organizational cultural governance processes, performance characteristics. A lot of those factors come into play as to deciding what goes where. And I think almost everyone says that it's never going to be 100% this or that just based on the characteristics that would really dictate where the workload or the application says. >> And that's the characteristics of the data. Is that fair? 'Cause it used to be, oh security. And you know public cloud, gives you fine security. Maybe not exactly the way you want it done, but is it more the realization about, you just can't move all the data into the cloud? Or you can't force your business into the cloud? What are customers saying there? >> I think part of it also comes into, for example, governance as well. If there's HIPAA compliance workloads as an example, that may dictate your decision in a certain way. But you're right though, I mean security used to be one of the big concerns, but it's more about now a person has decided they want to move a certain workload over, it's really more about how do you get them comfortable, how do you de-risk that move? And this is where thinking through the journey roadmap really becomes critical. But just because of that one aspect, it's not necessarily stopping people from moving, but it's really baking that into the design criteria as to how you move it. >> Well while we're on security, I mean, in the last five years it's obviously become a board level topic. People have I think come to the recognition. Maybe the recognition, maybe the spending hasn't shifted, but the mindset's shifted that we can't just create a moat, you know, they're gonna get in. Once they get in we have to respond. We need analytics and response mechanisms and so. How are they coming to you for help? What are they asking you for, and how are you helping? >> So I think it certainly comes into more into place can not be an afterthought. It's really more about security in and the governance has to be kind of baked in from the front end of it. So everything that we do, whether it's any solution that we're doing from IoT perspective all the way to the hybrid IT, from an architecture blueprint perspective we have made sure the security's front and center of everyone of those designs as well as the discussion criteria with the client. And so when you start looking at it's not about security partial assessment. It's also kind of looking at designing security from a, you know, architecture blueprint perspective. And making sure that if somebody's talking about hybrid IT architecture or an IoT use case, that security's front and center of the design criteria. >> If you think about the challenges that your sales, well let's step back. If you think about the challenges that everybody has at conceiving of how best to associate data, workload, and cloud implementation. Hybrid, on-premise, off-premise, wherever it is. There are, you have to have a common framework, what used to be called a computing model. A way of thinking of how you address the problem. That your sales people has to have, your support people have to have, you have to have, your customer has to have. Are there like two or three things that you're telling your people to look forward, or look for and working with their customers to help provide those clues. So crucial to getting everybody on the same page early as to where workloads are gonna end up. Where data is gonna end up. >> That's a great question, and one of the things that we're making sure that our folks are not just talking about the hardware piece of it. It's really more about before the hardware discussion takes place, making sure that we completely align on the workload strategy. As part of the workload strategy, you know we will do workshops, and we'll make sure that we totally understand in terms of what is it they're trying to accomplish in terms of the workload migrations. And before we even get to the migration topic, we really go through this criteria in terms of assessing the workloads. Which workloads are more suited to go into cloud environment. And in areas which we may need to re-architect the application or re-write it. We also kind of put those into a specific category and take a look at making sure that is the performance criteria more, is it security is it more about the TCO, and more and more you're starting to see it's not really a brokerage discussion. It's really more of strategic sourcing discussion because you're more and more are starting to talk about what is the best source to get the service from. Because there's no shortage of choices that they have today where they can provide these services from. So it's really more of about understanding what they're trying to achieve. And then understanding the sourcing policy. Understanding the alignment between the IT and the governance piece of it, the whole business side of it, and the IT side of it. And then it's really more about the supply chain management. You heard about One'Sphere today. But it's really more about how do you take this complexity out of the hybrid IT environment, and making sure that you can provide the automation and that capability to provide it as easy of environment for them to have a single plane of glass. So those are the key pieces of the framework that we try to make sure everyone is on same page. >> You mentioned cloud technology partners. We heard about One'Sphere today, that's obviously the CTP is part of that announcement. Small company, but very high quality customer base. It's very specialized. Take us through the rationale for the acquisition, kind of what the value is to your customers, and where it's headed. >> I think last time when we spoke we talked about our overall strategy. One of the key pillars is really around making hybrid IT simple. And we know when we talk about hybrid IT it cannot be just the on-prem part of the storyboard. You have to talk about the public cloud side of it as well. And this is where the CTP acquisition comes into play to really plug a hole. I mean we had some capability in house, but not to the extent of what CTP brings to the table. I mean they are premiere partner to AWS, premiere partner to Google, silver partner to Microsoft Azure. And so having that kind of credibility and the recognition in the US and North America, certainly gives us more credibility with our customers talking about the hybrid IT story. And then taking that skillset, assets, and the IP, we want to take that and leverage of our channel community, as well as our install base, as well as of our capabilities in Europe as well Asia, and help scale that globally is really a way how we're gonna leverage this skillset and asset set. >> So we're in beautiful Madrid, Spain at the EMEA Discover. Cloud is a global phenomenon, but it's not uniform. From your perspective of providing services to customers that have global needs as well as local needs, take us through how Europe is different. Start from the observation that we've got North American cloud players, public cloud players, we've got Asian cloud players, we have not an obvious European cloud player. How is it different on a global basis, and what is HP doing to mass those differences, HPE doing, to mass those differences from your global and local customers. >> So I think one of the things you are finding here the need, and we talked about this earlier today, the need for as a consumption models. And you're seeing that the trend globally. And more and more people, more and more customers are talking about not wanting to necessarily own, but how do they pay for what they use. And so one of the things we do is from a framework perspective we've really deployed a very consistent framework, uniformed transformational framework, UTF. And we did apply for a patent for it as well. But the idea there is to leverage a common methodology, common framework to take a client through in terms of how to go about this cloud journey. Everyone is on a different place in terms of the cloud adoption, their digital transformation journey. But through the experiences that we have, I mean we do well over 10,000 engagements a year. Leveraging that IP, we have really built like full interconnected journey roadmaps. And so a client, you can take any client, whether a service provider or enterprise, they're somewhere on that journey roadmap. And they may be in a different place, but being able to talk to them, leveraging that common IP and say look, this is where you're at today, here's the roadmap that you can take to get to your desired end state. And that has really resonated with the clients. And if they truly don't want to own the infrastructure, and they just want to pay as you go, this is where the whole HPE, GreenLake announcements have really come into play. So I think those teams when you take a look at the performance characteristics, organization governance issues. Because one of the things that we find is 70% plus of the clients that we talk to, they have not been able to really maximize the full potential of what hybrid IT gives them. And one of the major hurdles we see, and doesn't matter whether you talk to a client in North America or EMEA or APJ. It's really the lack of focus on management of change. It's the organizational, the cultural barriers that get in the way. It's the competencies, the organizational processes that get in the way. So those are the pieces we want to make sure as part of the UTF framework, IT is just one of the principles. And of the other domains, management of change is one of the key elements that we see, which is common across all the client base that we talk to. >> When you go back to the early part of this decade, and you observe sort of the big, remember the big data meme it sort of exploded in 2010, 2011, 2012. It ended up being a very, complex of course, but also very services led, engagements because it was so complex. IoT is somewhat similar, it's very data oriented, it's very complex. So talk about services and the relationship with IoT, the opportunity for you and how you're helping add value to customers. >> Now that's a great question also Dave. I think when you take a look at the IoT. I think we're starting to get past that half cycle. And a lot players will talk about they got hundred plus proof of concepts going in their lab, but they just have not been able to bring it into the mainstream. And so one of the things we're talking to clients about is starting to move away from the terms like proof of concept. Focus on proof of value. Because at the end of the day, if you cannot help your line of business accelerate time to value, no matter how great of a concept you have, it's never going to see the day of light. So this is where the point next services really come into play with the whole advisory led motion because it's still very much a services led motion today. Working with the clients around how they can really help shorten the time to value. Accelerate time to value. And if we can take even one or two use cases they have in their labs today. And show them how they can get to 50, 60 million dollars of savings like one of the oil and gas customers we were just talking to. Same thing we see in the retail manufacturing. Is just taking some of the spoof points, and say this is how you can actually bring them into the mainstream, and make sure they also start to have the business alignment. That's one of the common things we hear from the CXOs here this week is the business alignment between the IT and the OT side if they're talking to the IoT use cases. Because without the business alignment, believe me you're not gonna be able to get the management of change that you're seeking to derive. >> So do you expect or are you seeing yet new business models. You were talking about the cost savings, but what about sort of the new business models emerging from those discussions and opportunities. >> Definitely I mean if you take a look at whether it's the hospitality suite, you know Kathy talked about main stage about even the retail experience that we're just starting to be very different. So when you look at the new value that's being created, you know a lot of us who travel to get here, when we check into the hotel, a number of places now, you can check in digitally, 24 hours in advanced. You never have to stand in line for a queue. Don't have to flash up your credit card because the hotel's have really now started to leverage the digital transformation where 24 hours in advanced you can check in online. They'll give you a digital key so on your phone when you walk into the hotel, as soon as you're within a threshold you get onto your wifi network and you see a personalized message. And it has also the directions to your room. And when you get to your room, you use the digital key to get in. Think about the possibilities it creates to launch new services for not just the hotel, but it's also affiliates, the partners for pushing specific targeted advertising offers while you're in Madrid here or some other place. So you're starting to see these new value creations even though behind the scenes you still have them integrate a lot of their digital critical business systems whether it's CRM, reservation systems, or smart buildings. You have to still make sure the security's in play. And so it is really you checking in, not someone else. As well as making sure the room is available. But it's really more focused on the business outcome. And this is one of the things that you're seeing even in a portfolio shift, it's no longer talking about some implementation services, integration services. When we sit down with a client it's really more focused around what outcome are we delivering. It's not talking about, look we can sell you x numbers of servers, or we can sell you devices. More about here's the business outcome that we'll deliver for you. And this is what you're gonna be able to do with that additional value creation. >> Do you mean I might be able to not have to wait in line a half hour when I check into a Las Vegas hotel in the future? >> Parvesh: Absolutely. >> Peter: No that will never happen. (laughing) >> No definitely, I mean you see improvements every single year. And hopefully, whether you walk into a retail shop, be able to experience differently walking from home into a branch store and what that experience will look like, it'll be very very different than what some of the people experience today. >> Lots of changes coming. All sort of based on the data, Parvesh thanks very much for coming on theCUBE, it was great to see you. >> Absolutely it's great to be here, thank you so much. >> You're welcome alright keep it right there everybody we'll be back with our next guest Dave Vallante for Peter Burris. This is theCUBE, we're live from HPE Discover Madrid 2017. (electronic music)

>> Narrator: Live from Las Vegas, it's The Cube. Covering HPE Discover 2017, brought to you by Hewlett Packard Enterprise. >> Hey welcome back everyone, live here in Las Vegas is Silicon Angle Media's Cubes, three days of exclusive coverage, we're on day three of HPE Discover 2017, our seventh year covering HPE Discover. Our second year, Hewlett-Packard Enterprise, Discover, I'm John Furrier, my co-host Dave Vallante. Our next guest is Flynn Maloy, Vice President of HPE.next solution, pointing to what's next. Welcome back Good to see you. >> Thank you. Good to see you guys. >> So nice, clean positioning, point next, nice and tight. Nice messaging. >> Flynn: Thank you. >> Clean positioning, new opportunity, give us the update. What is the positioning? How's it been going? And what's the reaction with partners? >> Well, when we last spoke in London, we told you we were going to do something big with our services business and that's what we did. In March, we launched HPE.next and we've got really fabulous reaction from the market. We see it, all of our customers across the board, our marketing numbers, in terms of our inbound. What it looks like, the amount of interest that we're gathering, really we couldn't be happier with where .next has gone. >> For the record, just why ... What's the motivation behind .next? Why do this? What's the official position on why you're doing it and what's the impact for the customer? >> Well, you know, a year ago, just before the show, we announced that we were going to be spinning out our outsourcing business. And up to that point, over the last five years, six years, we'd approached our largest customers with a run message, we can help run your IT. And I think Meg, and the board of directors, and our senior leaders, really took a look at it and said, "It's a good business for a certain segment "of the market, but where HPE wants to go is we want to be more about advise, and transform, we want to help you get there. Not necessarily do it for you. That market's changing. As we announced and moved out that business, we took look and, in fact, I think the very first question you guys asked Antonio in London was, "So, jokingly, you're a play product company "now, right guys? " And no, we're not. We have a big services business, a big part of our business, and that's what .next was, was really to bring that to the front as we spun out the outsourcing business, we really wanted to bring our very strong services business, our consulting and support business to the front, rebrand it, get it out there. And really lead with services. And I think at the show this week, across the board, on main-stage, on the show floor, you can see again and again, HPE is walking the walk on really realizing, let's start with digital transformation, let's lead with services first and start with outcomes. And then bring in the technology to get you where you need to go. >> Wow. And that's a business that Antonio used to run, so obviously he's got an affinity for that. Flynn, can you take us through the background of the branding and sort of what you went through? It's always fascinating to us. How did you get to .next, right? It didn't just fall out of the sky. >> Well, we have the company, we have a company that accelerates next, right? So, that's what HPE does. We believe in what's next. We believe in always looking to the future. HPE has always been about invent, and innovation, right? We are looking for what's next and so we sat down with some of our senior leaders and said "Okay, we could certainly name ourselves "HPE Services and look like everybody else in the market." You go out there and look at our competitors, you've got global services, technology services. We think it's time to break from the past. We think it's time to look to the future and point to the future, and we are the company that accelerates next, we have a point of view on where our customers should go. We have a point of view on where technology is going. And so we want to help point you to what's next. It's got to feel it's certainly heavy on advisory, and you heard Meg on stage talk again and again, this is our business. We're not about run. We're about advising. We understand where digital transformation is going, we have a point of view, and let us talk to you about it, let us help you on that endgame. >> Dave: And bumper sticker the brand promise for us. What's the brand promise? >> We make hybrid IT simple. We power the intelligent Edge and we have the expertise to make it happen. >> The bridge to the future is really, the customer are looking at the future and I like the name, by the way. I think it's great, it's clean, it's generic in a way, .next. Clever. But really, the transformation journey is about business process and improvement and changes with Cloud, and big data. You see in the apps, with div apps, you see, certainly that movement, top line revenue growth. This is really about crossing to the future, right? I mean, for the customers. Having that head room option, that's where you guys see the advisory shining. How do you talk to the customers? Because, again, they start on a journey, you guys always talk about, but ultimately there's going to be some unknowns that they have to face. How does that play into what you guys are doing with the hybrd IT message, simplifying hybrid IT? >> I'll definitely say, I completely agree with that. And that's the way Anna Pinczuk, who you guys spoke to earlier today, that's the way she really envisions it. She used an analogy for like a GM car. In the 70's, you had a different key for the trunk, a different key for the ignition, A different key for the door and customers are looking for one key, That's what they're looking for. And so we want to create a seamless experience for our customers across the board. And you may not always need a high-end, big transformation is that's not what you're looking for. Most customers today, don't have one giant, macro-transformation. There's dozens of them going on in different areas and that's the way we've kind of built this business is to be able to handle the small ones, to be in and out quickly, you know, it's not bringing in thousands of people. It's taking a look at, what are you trying to do and let's get some quick wins, and there might be some big ones along the way. But one other thing you touched on was business model, and I know we talked a lot about consumption this week, what changing business models are like. And I know we've talked about that at length in the past and we really see that big change around, what we believe is a huge opportunity. We've talked about flex capacity a lot this week, right? Which is, your stack, in your environment. We put a lease on top, we run-time optimize it, activate capacity management and basically it feels to you, as it flexes up and down, like a public Cloud option on Prim. But it's your stack in your environment. And there's so much more that we can do with that, and Anna talked about in hers, about private backup. We're debuting in here. Private backup is a service, which is basically your backed up data, that you pay for as you back it up, but it's on Prim. It's not out there. It's inside of your firewall, it's inside of your environment, and that's a big deal. We're onto something there. >> Well, where that gets interesting, too, is if you backup not only your data, but maybe you back up data from AWS, or maybe you back up data from your CRM system. >> Absolutely. >> And it goes both ways. So you become that sort of center of the data protection service. And there's probably "n" number of examples like that, but we've talked in the past about services as a service. We kind of joked about that. But is that the model that you're working toward? >> Well, I would say as the marketing leader for .next, we're not branding services as a service. We've tested out a lot of different ideas. What we fundamentally believe is that there's a new category out on the market. We believe that, as we say, hybrid IT will win in the end. We believe that there are plenty of workloads that are going to go out to the commodity cloud, that's a very important part of your right mix. We've talked to enterprises across the board, you hear it across the bard, why flexible capacity has been so successful. There is this whole class of service which is consuming, but consuming on Prim. And that doesn't just mean a lease, that means private backup, that means a group of clusters, that means a whole series of IT, but you consume it. You meter it, you measure it, you consume it, You pay for what you use but you do it inside of your own environment and that's not only in your data center. Your environment can be your manufacturing floor, or your mall, or your airport because we have these great Edge assets. >> The refinery. >> Right., and if you're able to again, same idea, put that sort of consumption model in place, at your Edge, or in your data center ... Of course, bring in public when you need it, but that mix, that right mix, we think this is a huge class of service. We think we have a six year advantage on the market, and we're going to go strong on that. >> I guess the point is, in services traditionally, either a maintenance contract or it's an SOAW-based business, and what you're describing now is much more of an at-your-service, monthly, or whatever, quarterly billing, type of cycle, right? >> Flynn: Absolutely, absolutely. Well, I think the tail wins for you guys have the wind at your back and I think you're right. You're onto something. Some things we're seeing here at the show, and also other Cube events we've done is, micro services, you're seeing things with Cloud Native on the Cloud side, and general Cloud, on Prim as well as in the public micro services. And people know about the compos-ability of lego blocks and open sources even going down to the point where things are being open-sourced like we've never seen before, so people have to cobble together and roll their own solutions. The other thing that's interesting and most notable, that's come up this week, is Ricky Vaughn's private Cloud report, that true private Cloud report came out and the only one in the market that actually has real numbers, points to-- >> Flynn: Great numbers, by the way. Love it. >> This is complete validation, that the right mix is also a good message in the sense that are on-Prim, those are some markets over 260 billion. That means, that IT is not going to be shrinking, like some might say, service shipments are certainly shrinking maybe here and there, but IT is growing in a Cloud-like environment. On-prim's not going away. >> No. >> So this really comes down to, Okay, I've got to deal with what I've got, build on these micro services, a lot of open-source projects coming in. This is, I think, a great opportunity for you guys. How are you going to attack that? How do you go in to a customer, because I know they have Slizer on it, the globalist ... (overlapped talking) ...was on earlier, these are big problems to solve. >> Yep. >> How do you engage with that kind of level of scope? >> Well let's start with, and we completely agree with the Premise As you know, we've been talking about that for a while. We also believe that the term on Premise, that doesn't just mean a big, air-conditioning room in your building, that can be the Colo, that can be your hoster, that can be in a lot of different places, but it's your private item, right? That's what it is. >> The air control. >> That's the point, it's control, it's about controlling security. And once you put that in, as you develop the micro services, we know, to answer your question directly about, how do we engage? We know these enterprise customers, and even smaller customers. They want to move from capex to apex, that's an overused term. But really it means, instead of buying 100 servers and then I go over provision for six months, and then another 100 servers, right? If we can get into a way where we can actually get apex, and that conversation is ... You're still starting out with the same business problems, this is kind of the thing that we learned. It's not some, you don't go in and say "Apex to capex", you go in and say "Hey, you need a new customer "experience, right? You want to transcribe your "customer experience." (overlapped talking) >> That's right, let's talk about your digital transformation that you want to put in, what's the new technology that you need? And then, let's talk about the business model that follows behind that, so it's not consumption for consumption's sake. It starts as, what is the outcome and then, bring in the technology, solve the problems, bring in the partners, and then, you can consume it over time. >> John: I think that validates why hybrid Cloud is so hot. We've been pointing at it, but really when you break it down like that, with a true private Cloud environment, which is essentially IT on Prem, or however you describe it. Then you got hybrid. That's where workloads, move to the Cloud and that destination-oriented multi-Cloud environment. So, we believe that multi-Cloud will be there. I personally don't think, and Levon's got some research coming out on this, that multi-Cloud is a little bit further out. That hybrid is a gateway to multi-Cloud. And right now, you can be on multiple Clouds but it's just different workloads. But the nirvana is just having workloads just moving in and out of Clouds, and eventually that's how I see it. What's your thoughts on that? >> Well, have you had a preview of New Stack, and some of the discussions this week? >> Well, we've had the PowerPoint preview and today, this afternoon, we get the NBA preview. >> Oh, fantastic. Well, we see that, too. We believe that that's the control point. And by the way, you're not going to find that from public Cloud, you're not going to get that... The over-arching single pane. That's not going to come from that side, it's going to come from this side, right? And that's where New Stack is aimed, That's where a lot of our software-defined technology is aimed and we completely agree and we think that, that's what's going to be that top control layer. >> Dave: You'll get, from the public logic, about five single panes, or four single panes, or eight single panes, or ... >> That's right, but you know what? You need a pane for the pane, I mean ... There's a sea of panes. (laughter) Flynn, thanks for coming out on The Cube, I know you got a hard stop, but I want to just get your thoughts. What's next as you go out and market .next? Great, clever name. Simple to get. Pointing to the future. We do a little dab with the point. >> It is a dab point. >> With a point to the future, up to the right, growth. What's next? What are you guys going to be doing in the marketplace? What's the message going to be? What's going to be the cadence of .next from a marketing standpoint? >> Well, we're going to continue to talk to our customers about the value that .next brings, and we're just previewing a few services here this week. We think it the tip of the ice berg, around, private backup as a service, big data as a service, we think there is an enormous amount of work here. We've previewed a little bit of it, Anna's talked about it on stage. I think, in the next few months, you're going to see us really come out strong to talk to the market, because we have, we do believe we have a six year leadership in this space, we purchased Cloud Cruiser, which is secret sauce that really allows us to do these kinds of services. Measure the meter, you know? And I expect to see a bunch of new messages and a bunch of new services around the space. >> John: Awesome. Thanks for coming on The Cube, great to have you, great conversation, new opportunities that is the ice berg. Cloud is certainly changing, a big day to IoT, all happening in real time. This is the Cube happening here, day three, coverage of HPE Discover, 2017. Stay with us. More coverage after this short break, stay with us. (electronic music)

>> Announcer: Live from Las Vegas, it's The Cube covering HPE Discover 2017. Brought to you by Hewlett Packard Enterprise. (techno music) >> Welcome back, everyone. We're here live in Las Vegas for theCube's exclusive three days of coverage of HPE Discover 2017. This is SiliconANGLE's flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier, and my cohost, Dave Vellante. Partner in crime here. Our next guest is Ana Pinczuk, Senior Vice President, General Manager, HPE Pointnext, the new organization >> Ana: That's correct. Yeah. >> John: Anyways, welcome to theCube. Good to see you again. >> Thank you. Really nice to see you as well. Yeah, excited to be here with you guys. >> Cube alumni also. Part of the Grace Hopper Community as well with women in tech. Great work there. Just want to give you props. >> Ana: Thank you, yeah. >> Shout out there. Okay, so you're in the new job here. You're a seasoned veteran. >> Ana: Yes. >> You know the industry. Your thoughts? I mean, you're coming in fresh. >> Ana: Yeah, I'm coming in fresh. So, first of all, three whole months here, you know. So, it's been kind of a whirlwind since we came onboard. We announced the new brand. So HP Pointnext is the new brand for really our future-facing services organization, right. And we've got this great opportunity, you know? We've got customers that are really undergoing tremendous digital transformation, right, and they need help, and we're the arm of HP that can really help them through that journey. All the way from sort of advice and transform services, professional services, like design and implementation services, and then when we go to operational support services as well, so. >> John: One of the things that Meg Whitman was talking about, I want to get your thoughts and reaction to, is, she said it's a cleaner positioning with HPE now. Because the partner relationships have always been center. We had the Chief Channel Officer on earlier, Denzel. 70 percent of the revenues comes from partners. >> Ana: That's right. >> And so, having Pointnext the way it's structured makes it cleanier. What is she-- Cleaner, for everyone to understand what's happening. What does she mean by that? And give us your perspective. >> Ana: Yeah. Well, I'll give you, you know. Look, before, we had a huge outsourcing business, right. And with the DXC business moving off, we've got the opportunity to really partner with the Accentures, the DeLoyds, the WhitPros, the Tatas of the world, right? We provide mostly technology services, so, to the extent that they go and they help customers with applications and really figuring out their business processes, then we come together with them and then figure out how to translate that business architecture to the technology architecture and then how to do that technology road map for them, right. So, um, it's really positioned us much closer to different kinds of SI's, both sort of the traditional SI's as well as other ecosystem partners. And today, I mean, if you think about mostly every vertical is transforming, right, so. Whether you're in retail or transportation, et cetera. And frankly with DXC, you know, really going off focusing on outsourcing, we're still a huge partner of theirs, you know. They're a customer of ours. But at the same time, it opens up huge opportunities to go after other verticals and other solutions as well. >> Dave: Yeah, it's kind of a strange TAM expansion for the core of Hewlett-Packard Enterprise. >> Ana: Yeah, it is. >> You sort of concede the outsourcing business. Okay, we're out of that business. >> Ana: That's right. >> But now you've got so many other partners that really could boost your core business. >> Ana: Yeah. And, you know, um, I mean. Nobody owns advise and transform, right? I mean, nobody owns the whole digital transformation journey. The opportunity there greatly, sort of, outweighs the constraints that we have in that space, right. And so, you know, it's really important for us to go with the Accentures or the Deloyds, other partners, and be able to come with them and provide those solutions to customers. >> John: Ana, I'd like to get your thoughts on the trend and the particular question if it's going to be around the cloud transformation, which is the driver. You got big data, you've got IOTs, you have, obviously you have your hybrid IT solutions here, but, you know, cloud computing in general and big data point to a new set of applications. Dave and I always comment on theCube as we go to all these different events that we're old enough to remember the 80's and 90's. >> Ana: You're not that old. >> The 80's and 90's, the ERP generation. The mini computer was a massive opportunity for service providers. >> Ana: That's right. >> You know you had the big six accounting firms back in the day. Now you have thousands of partners. That was a big movement. That was a big wave. >> Ana: It is. >> This wave is almost bigger than that, but different. >> Ana: It is. >> What's different now as the new apps come out? >> Ana: Yeah. >> John: And we've seen this movie before in a way. >> Ana: Yes. >> John: With the ERPs of the world and CRMs. >> Ana: Yeah. >> John: What's different now with cloud that makes this bigger, and what's your thoughts on this opportunity? >> Ana: Well, I think, two things for me. One is-- In fact, over the last couple of days, we've been talking to a lot of customers about not what I would consider traditional, but even S, you know, SAP HANA, right? And those migrations. Those are like, a little bit like, still the old wave, you know. With new, sort of a new flavor to it as people go more into big data and analytics as well. But the biggest thing is that, you know, think about the world of the future. Everything's going to communicate with everything else. Everything is going to compute, right? And so, you know, the patterns of communications are really shifting, you know, as well. It used to be very data center, centric, and those traditional models, or the old IBM models of the 80's, right. >> John: Big iron, all the-- >> Ana: Big iron, everything in the servers and the data center. But think about, you know, your toaster talking to you, you know. Think about smart meters out there. Think about your car being really a roaming, you know, office and entertainment center, right. >> John: Yeah. >> So I think that's what's really shifting. It's just the magnitude of data that's going to be, you know, computable, in a sense, at the edge, and that's really helping us think about whole new different applications that we didn't have, you know, back then. >> Dave: So cloud is obviously this huge megatrend, and everybody, I think Hewlett-Packard Enterprises included, is trying to substantially mimic the cloud experience on-prim, create hybrid. And it seems like you're having a great deal of success there, at least early, some early wins. The other component of that is the business model side of things. >> Ana: Yes. >> The whole as a service piece of it. >> Ana: Yes. >> And as you transition into that, you know, cloud-like world, what happens on the business model side? I mean, we've heard a lot about flex capacity and things of that nature, but it feels like the services business can transform dramatically into that model. I wonder if you can comment on that. >> No, it's true. I mean, just think about it. In the more traditional world, we've been mostly a product company with sort of services attached. You know, you sell a hardware box and you attach support to it and some installation services. We're completely shifting the model, right? So we're really services led and hardware attached, right, of the model going forward. And, so that's one thing that's shifting. And then the business models are really outcome based. You know, so, I'll give you an example. You know, I was talking to a customer, in fact, earlier this morning, about providing retail store as a service. That's a very different model, right. That means that we're looking at the whole architecture for them. We're looking at what value constitutes in a retail store. You know, how do they make money. What that outcome should be, right. Then how do you deliver that as a solution on a per, you know, something basis. Per outcome basis. So completely shifts the way that we think about delivering services. >> Dave: And so has it become services as a service? I mean do you go to-- >> Ana: I call it-- Yeah, I mean, I've been calling it, you know, experience as a service, and it is service as a service or outcome as a service. I mean, in a sense what the customer cares about is the value that they get out of that thing that you delivered to them, right. And so-- >> John: It's important to them. >> It's important to them. >> John: It's their business. >> I think, that's their business. That's what they care about. You know, I'll give you an example. Data is so important. Backing up your data is really important. But what the customer cares about is not whether they have back up, but it's whether the back up actually worked, you know. >> Dave: And can I recover. >> Ana: And can I recover from it, restore it, right. And so, when you think about that, you know, experience as a service. The experience is, gees, you know, that I get my data backed up and can I restore or recover from it. And then that becomes the outcome that they want. >> John: Which is the digital transformation. I mean, digital transformation has been around for awhile. It's been that buzzword. Certainly center stage here. But you're talking about business transformation. You're talking about really changing how companies are doing business. >> Ana: That's correct. >> John: Chop line revenue driven by digital services or digital apps or-- >> That's right, that's right. >> John: Interfaces, experiences. Whether it's feeling good or actually delivering something. >> Ana: That's right. And, you know, what's happening. I mean, think about the retail store of the future, right. I mean, you know, you have, you have a teenage daughter or a teenage son as I have. You know, you want to make it really interesting for them to go into a store and have a different kind of experience, right? And so, you know, location based services, all these, all these things that you can enable in terms of, you know, helping them buy new things or getting, you know, I don't know, some sort of discount when they go into the store. Or really seeing what it looks like when it's on. You know, those are the experiences of the future that are going to make that retailer relevant, you know, especially moving on. >> John: Well, we're going to have my daughter-- She's down in the front desk. She's interning for us. She's a Berkeley student. Say hi to her. She's going to come in and tell us about what she thinks of HPE as a youngster. >> Ana: Oh, good. >> John: But more importantly, this is a big trend. I mean, we're seeing-- I want to talk about the women in tech piece of what you're involved in because, you know, we were having a conversation at dinner two nights ago that, you know, people consume technology, whether they're the end user, and that word to even exist. End user, or consumer. >> Ana: That's right. >> End user isn't even a word anymore. >> Ana: Isn't that, yeah-- Who is that? >> John: Who do we call end user? >> Ana: I know. Or end thing. >> John: But people who are-- >> Ana: In the future. >> We're all connected, right? >> Ana: That's right. >> So, so this makes up this-- 50 percent of the population's women. >> Ana: That's right. >> And they're not making the products as much, so the percentage of women in tech is a big issue. I know you're, you're involved with Grace Hopper. >> Ana: Yes. >> Your thoughts on women in tech, because we need more women building products or being involved in the design or something. >> Ana: Yeah, yeah. It's a great, as you know, a great passion area for me. And we've got about-- You know, if you think about computing, we've got about 17 percent or 18 percent of the graduates come out in computer science, right. But if you think about technology in general, you know, because everything is going to be digital, because everything is going to compute, you now have, for example, women that are going into tech that have, sort of, a real different variety of backgrounds, right? I mean, they could be designers, because your fabrics are going to be, sort of, lit up with, you know, with sensor technologies. Your knees will be, you know, will have capabilities that are computational. You know, so. What we're seeing is the opportunity to open up the space for women because some of the things that are out there that are going to be technology are going to be much more interesting generally to, to women. >> John: So if I get this right, you're saying is that it's, "Okay, we want more people, more women in software." Except that's not the restriction. It should be computer science, now, is broader. >> Ana: That's right. >> John: And in analytics, I mean, we see a lot of women who are crushing it and being great data scientists. >> Ana: That's right. >> Bring some creativity to it or expertise. >> Dave: In that stat, you said 17 percent with a degree and a small, a much smaller percentage actually enter the technology field, correct? >> Yeah, you know, yeah. What happens, I mean, especially, we get about 17 to 22 percent or so that enter the technology field, but then many of them don't stay. You know, especially those, you know-- There's attrition as you go up the, up the chain as well. >> Okay, so maybe this new dynamic >> Ana: Yeah. >> Changes that. >> Ana: Yeah, well, I mean, I think the kinds of degrees that people are getting. You know, every degree will have a technology aspect to it, right? You're in textiles or you're in, you know, design. >> John: Healthcare. Science, everywhere. >> Or you're in healthcare. And, you're in-- Yeah, you know, you're a doctor, you're a lawyer. Every degree will have an aspect of tech, that means, frankly, that we as a tech industry have to open up the kinds of people that we attract, right? We've got to look for, not just computer science people, but people that understand business processes. You know, people that understand industry verticals, because digital's going to all these different, sort of, you know, places. >> John: And you're an inspiration. Thanks for all that work. And we agree. Science is everywhere now. >> Ana: Yeah, that's right. >> And whether it's block chain or some sort of medical breakthrough, >> Ana: That's right. >> You don't have to be a hardcore programmer. >> Ana: That's right, that's right. >> Ana, thanks so much for coming on theCube. Really appreciate you sharing your insight. >> Thank you. Thanks for having me. >> John: Congratulations on the new opportunity. >> Yeah, appreciate it. >> John: And Pointnext is, points to what's next. >> The place to be. That's right. As I try to tell people. (laughter) >> John: It's like dabbing and pointing at the same time. Thanks so much, really appreciate it. >> Ana: Thank you so much. >> John: I'm John Furrier, Dave Vellante, live coverage of HPE Discover 2017. Our 7th year covering HP Discover, now HPE Discover in it's 2nd year. Be right back with more live coverage after this short break. (upbeat music)

>> Voiceover: Live from Las Vegas, it's the Cube, covering HPE Discover 2017, brought to you by Hewlett Packard Enterprise. >> Okay, welcome back everyone, we're live in Las Vegas. This is the Cube's coverage, exclusive coverage, of Hewlett Packard Enterprise HPE Discover 2017. And I'm John Furrier, co-founder SiliconAngle Media with my co-founder David Latte and also cohost. Our next guest is Alastair Winner, vice president HPE point next portfolio. Welecome back to theCUBE. Good to see you. >> Alastair: Thank you. Great to be here. >> So, okay, Pointnext Portfolio, Pointnext, new presence, take a minute, Alastair just explain Pointnext, how everything fits together. I know it's a little bit redundant for you but let's that start that off. >> Sure, no, I'd be delighted to explain. So, as you're aware the company has gone though a number of transformations and transitions. One of which was the spin merge of enterprise services to CSC, now DXC technology, we're, they're here on the show floor, so great partner of ours. But of course that created a lot of noise in the market and confusion honestly with our customers as to whether or not HPE was in the services business or not. So, the idea of the rebranding was to make it very clear, service is critically important. It's like the third part of our company strategy. So we have Hybrid IT, IT Edge and the expertise to make it happen and that expertise is HPE Pointnext. And the branding was chosen deliberately not to, to sort of replicate what you'd find in other traditional vendors. We don't talk about services in our brand. And Pointnext is literally to help our customers point at what's next in their digital transformation journey. So, that's where the brand comes from. >> David: So what's the brand promise? For Pointnext? >> I mean for us, it's about giving customers access to our expertise and we talk about really, a complete life cycle of a experience. So, previously we had consulting and support. Those terms have gone now. So we're looking clearly end to end of customer's experience and really starting with the outcome they're looking for, and having advisory, professional and operation services that connect those things together to deliver the, deliver the outcome. >> And what is the spin merge made up of? HPE Services and was it, the CSC combo? >> So we had a very significant, really IT outsourcing business, which was called enterprise services that was the previous EDS business. So yeah, that spun out and joined to CSC to become DXC Technology. >> How should customers look at you vis a vis HPE and the Enterprise partners? Obviously there, there the combination, how do you guys, where' the lines, where do you guys shake hands, where's the handoff, what are some of the engagements, like share with us some of the day to day tactical execution of your, of the portfolio? >> So I guess, we're still relatively new in terms of the brand and we're trying to really connect the dots internally to ensure that we present to our customers a seamless experience. I guess one of the things that the spin merge has enabled us to do is to engage much more actively with systems integrators and other consulting companies where perviously it was quite challenging to do so. So, with the likes of PWC and KMPG and Wipro and so previously we had, I mean they were interested in buying our technology. But from a services point of view, there was always some conflict. Now we have clarity, right? So, so part of our strategy is to really ensure we're engaging very actively with systems integrators. And likewise, we're also working very actively with our reseller partners. So, clearly HP has a long history of partnering and.. >> John: Channel. >> And as we call it it channel. And our channel partners are also going through a transformation because selling hardware is no longer a sustainable business for them in the long term. So, really helping them to transform their business from being product led to services led. I guess, I mean, the other thing we're really focused on is you know what are the solution areas. What are the business outcomes that we as an organization can really focus on because as you know digital transformation is huge, I mean it's a, you know.. >> Well, I'm glad you brought that up about the decline in the service, from a business model stand point, but we were saying in our opening, on our editorial segment that, you know a lot of people get hung up on that, but in reality, the numbers are all pointed to massive growth. Wikibon just put out a seminal report around true private cloud at a twenty to fifty billion dollar opportunity, market TAM. So, that's just private cloud. That's just. >> Yes. >> Cloud liking your infrastructure on PRAM. That's not including Hybrid Cloud. So when you factor in true private cloud, which is current state, situation, with Hybrid Cloud and then now, the, what I call the kind of the long reaching but viable vision of multicloud, >> Yep. those are really key dots that are connection for customers. So, okay margins of hardware might shift to places but the services, whether its IOT, an app integration, really it's a the center of this. >> It absolutley is at the center of it. And of course, I mean there is still clearly value from our products and our product innovation. But the way we present that value to our customers has to, has to change. And you're quite right, many of the customers, in fact the majority of the customers I talked to really view private cloud as their principal delivery vehicle, internally. IT view as their principal delivery vehicle. What we're doing through solutions like flexible capacity is enabling an IT team, to you know, to align the supply and demand of IT through an opex model rather than a capex model and really helping them right size the environment. So they can manage the fluctuations that they see because with digital there are, you know, there are many many more, the frequency of change is much a, much more... >> So the dollars are shifting to services, certainly the Edge but you brought up channel. This is a huge opportunity because now channel is reconfiguring both at the global systems integrator side as well as what was traditionally as VARS and VABS and ISBs, >> Yes. as they get closer to the customer. So you guys are kind of the glue layer between what was once HBE, get some training, speeds and feeds, to much more solution oriented. And trends there that you can highlight that should be notable for customers in around how the services is leading some of that change at the front lines? >> Well, I mean, you're absolutely right and I would say you know for us it's about outcomes, looking. We're not trying to sell the customers something. We're looking for an outcome that customer needs and then translating that into, into a chain of technology, people and process changes that they need to implement. And there I mean there are many examples on the show floor actually of services-led solutions. You know, we have the intelligent spaces cube for example where we're helping customers to manage, very valuable real estate in their, in their property, you know where you're always looking for spaces to meet your colleagues. When you turn up you want it to be digitally enabled. You know, we can combine all of these great technologies whether you know that HP or partner ISV technology into a solution. And then present it to the customer as a service. So you consume it as you use it as oppose to buying all the pieces, having to integrate together yourself, you'll own and operate, that's clearly the model, that, that's the model of the past. >> Alastair, the CIO's in our community, if I could summarize, they're telling us, I got to run the business, I got legacy systems that I have to manage, I have to grow the business. I have new apps. Maybe some of those are IOT, certainly many of them are data oriented, AI, big data, whatever you want to call it. And then I have to transform the business. So that's their digital transformation, >> Alastair: Yes. >> certainly their IT transformation, their hybrid component. So is that a valid way, to sort of look at the business, and then how specifically is Pointnext helping in those three broad areas? >> So, I would, I would completely agree. In fact the way we think about our portfolio is one of accelerating what's next. So this, you know this digital transformation, this change, and how do we accelerate and make customers much more agile in addressing the business requirements. Because, you know IT and the business are really synonymous now with each other. It's not a, it's not a back office anymore. It's the way the customer engages with their customers, with their employees, with their partners. I mean it is the interface now in which we work. So, we're all about accelerating. How can we accelerate that. And then, you're absolutely right the majority of our customers have an existing in store bays. The have many layers of, or previous generations of technology. You know it's, it's homogenous, it's complex. You know there, there are different ways of managing all of these assets. And the way we help there is really by simplifying. So we're encouraging our customers to work with us, allow us to manage the complexity, which frees up resources and money for them to then to go in and invest in the accelerate, accelerating what's next. So we're doing, for example, activities like, we call it operational support service. So we're monitoring and managing remotely the assets of the company that the IT team would have historically have done. You know, you go into like a mission control center and see all the, you know, all the lights, monitors. I mean we can do that for a customer. You know, the customer doesn't have to do that anymore. And the resources that frees up, they can go in and invest in the, in the, in their digital transformation. >> So that's not outsourcing, per se. >> No. >> You're certainly managing infrastructure on behalf of your customer. They on the assets, it's on their books? >> So, so we can do it traditional, you know capex model where it's on their books. Or we can include it inside a flexible capacity arrangement where, they're, you know they're actually paying per use. And that experience is part of the, of the solution. So we can integrate it into a pay per use model. >> I mean it seems like one of the things that HP services has done over the last several years, is sort of envision and reimagine that entire services experience and try to make it as cloud like as possible. >> Yes. >> I mean you got a head of that, I mean this has been, I don't know, three, four five years in the making. So, kind of give us an update that's gone and then, you know on a scale of one to 10, how far did you get? Are you at a five, a six, a nine? And what's new from here? >> So it's a great question. So, I'd probably give us a six, we're probably at a six I would say. So the, the offer itself, so flexible capacity, is, you know we've had in them market for five years now so yeah, we know how to do this. And it's very successful. We've never lost a customer. We have net promoter scores in the high 90's, so yeah, where we have landed it, customers love it right? So, we know it's very successful. And really what we now need to do as a company is sort of amplify that model as our principal go to market. Okay, so we're a product company, we sell products. So, there's a pivot that we're approaching I would say where we need to you know, use that as really being the lead, the lead model. So, I think, I think a solution designed for IT, where IT consume units of IT, we've got that nailed, right? I think, I think it's great. But flexible capacity doesn't address every customer's requirement. So for an enterprise customer, it works really nicely. For a tier two, tier three service provider, it works very nicely. We've got a whole tranche of customers, who really don't have the scale to benefit from flexible capacity that still want insights into their utilization, and their capacity. So we're actually, as part of our Gen 10 launch, we introducing something called HPE Capacity Care Service. So we're sort of extracting the secret source from flexible capacity. We're not actively managing the capacity on behalf of the customer, but we're giving the customer the assets to do it themselves. So that will be available by the end of this calendar year, so we're very excited about that. And the other thing we're doing is actually, to move away from selling units of IT service, like virtual machine containers or cause, and actually trying to focus on outcomes. So were starting to talk about things like back up as service, big data as service with Hadoop. So, again, really trying to create a platform that the customer can consume and all the complexity is abstracted and we present it as a service. So, we're at the early stages there. We've got very big aspirations for that. We think that's the way that our customers will want to buy from us. You know, they don't want the pieces, they want, they want the platform, the want an outcome as a service. >> Alastair, great to have you on theCUBE. Thanks for sharing. My final question for you, to end the segment is pretend I'm a CXO, CIO, CDO, CSO, whatever, CEO, Alastair, bottom line me. How are you going to make IT easier for me and simpler? Go. >> So, I'm going to make it easier by ensuring that we present you with our expertise. We're going to create an environment though which you can consume IT. And we're going to accelerate your digital transformation. >> Alright. Accelerate change, obviously congeeled economies here. There's no doubt about it. It's got a little cloud flavor, hybrid cloud, multi cloud. It's theCUBE bringing you all the data here from HPE Discover. More live action for three days of exclusive coverage with theCUBE. We'll be right back with more after this short break. (light techno music)

>> Hello, my name is Peter Moser. I'm a chief technologist and IoT and AI strategist for HPE. And with me today is John Carter. He's the director of the ProLiant Product Management family. And we are going to talk to you about how we can take your business to the next level using the intelligent edge. So what is the edge? Why should you care? Well, when you look at IDC and Gartner's and others they're reporting that over 55 billion nest with the B devices will be deployed by 2022. That's not too far down the road from now and these devices are all going to be creating data. Well, most businesses also has been reported using less than 6% of all available data. So what all this is going to do is compound that challenge. Then you look at another data point, where over 50% of all new data is going to be created at the edge, indeed be processed at the edge. So when you have things like sensors and video cameras, all creating data, the need to deal with that data as close to where it's being created, as possible, is the most economic way of dealing with that data. But most importantly, it's also necessary from a timing standpoint that you'll get value from that data as quickly as you can, in many cases and the best way to do that is processing the data where it's being created. So let's take a look at what the intelligent edge looks like. Think about the connectivity that's necessary to connect these new video cameras, these new sensors and other types of devices you're going to be creating its data. That connectivity has to be secure and it has to be intelligent. Why does it have to be intelligent? Cause you want to be able to authenticate anything that wants to connect to that network fabric before it's allowed to do anything at all. So that means you going to have to have a high degree of intelligence like machine learning, for instance, to really understand what that is that device is trying to connect to your network and what kind of credentials that device should have. Then once you do that, then you need to have the necessary processing capabilities to then to be able to ingest that data, analyze that data and to create the necessary action to be able to act on that data. So not only do you have to have that pervasive connectivity via wireless or wired connectivity but also you have to have that data center class compute that enables you to adjust this massive amount of data and then to be able to create the insight necessary to act on that data and do so in a secure manner. So what does edge computing look like? Well, for many businesses, they need to make a decision and have that insight within milliseconds because milliseconds do matter. Say for instance, you're running a process where you're manufacturing an item. When you're going through say quality control, you want to be able to detect a defect in a microsecond so or little seconds to be able to know do I need to shut down the plant to enable me or to shut down that production run to enable me to then determine what caused that defect before I create too much of defective products and have all that waste or in worst case scenario, that product goes out of the door and you end up with a massive recall which can damage your brand. But then think about autonomous operations. What COVID has showed us is that businesses need a higher degree of resiliency because when your workers can't come to work, then what do you do? You get more and more businesses relying on automation to allow them to keep their plant operations functioning and enabling their workers to work remotely to be able to monitor and to control operations. Of course, security and compliance underlines all of this. Everything has to be secure to make sure that your edge environment stays secure not only from a connectivity standpoint but to make sure that no bad actors get on your network cause a lot of people have a false sense of security thinking that because it's behind the corporate firewall, they're okay. That's simply not true cause over 40% of all cyber attacks occur through phishing events. That means they steal legitimate credentials from employees and use those to access the network to see if you have to have other forms of or ways of identifying these types of attacks and then identifying and isolating them and containing them. And that's where having intelligence built into the network is so important. But with many customers that they may do a project that use case, if you will, the edge they have a challenge with scaling. And that is where it's important to have an architectural design in the right edge-based solution that enables you to now have a successful pilot. But to be able to scale that into a full production solution and one that can be replicated across all your sites. Because at the edge you have a combination of compute, storage and networking, which are all integral in creating a solution necessary to drive your business. But these solutions have to be managed because typically at the edge, we don't have the resources like we do in the data center. And so we rely on having data center class management capabilities but at the edge, it allows remote resources to manage that compute, storage, networking assets there at the edge. But additionally should customers want to consume an edge-based service, HPE offers consumption-based services that allow you to manage those resources remotely but then have a dashboard that enables you to have that transparency to share the state of all those assets with your different stakeholders. And so you see here a fusion between the edge and the cloud because they're not really mutually exclusive like some people think. The edge and the cloud do work together but what we're finding is, the edge has to have a higher degree of resiliency and independence because if you think about it, many businesses today in especially remote locations, don't have the same connectivity options that a business in a big city might have. They have lot of low bandwidth circuits for instance and some of these circuits aren't very reliable. So businesses need to have the capability of running their operations independent of any kind of connectivity to a data center or the cloud. That's what's key about the intelligent edge. But when that connectivity is there, they want the ability to have remote access to those edge resources and the ability to monitor their state, to be able to resume operations with remote capabilities. Okay, now let's look at some customer examples where the intelligent edge is helping drive real business value. HPE has a manufacturing customer that makes hard drives and for them quality is paramount because their customers store their data on their hard drives. So this customer needed the ability using computer vision or in other words a video camera looking through electron microscope to be able to scan away from the hard drive and make a determination in less than 10 milliseconds, is there a defect on this wafer? And the action was to stop the process, determine what caused the defect, remedy the problem before they produce too many drives and then have a substantial amount of waste, or in worst case scenario actually ship the drives and have a recall. So HPE was able to put an intelligent edge solution in place that allowed them to scan for defects and then be able to act upon any identified defects in less than nine milliseconds. We also had a very large retailer where the challenge is with self checkout is shrinkage or many cases also known as theft. For these customers, they need to be able to use computer vision to be able to scan and clearly detect at checkout what the customer was doing. Did it have an actual problem with the checkout process or were they trying to undermine and circumvent the checkout process and hide the scanning of the actual barcode. This required again less than 10 millisecond response time to be able to make the determination, what the customer is doing, do they have a real problem or are they circumventing the barcode process and then to be able to act upon that. HPE was able to put an in-store solution that allowed them to capture video from all the different checkout stands and to give them those insights in the timeframe that they needed. We also had a very large customer that has a supply chain optimization challenge that wanted the ability to be able to map the demand signal when they had an order to the supply chain to know could they deliver or meet that order requirement by the date that the customer specified based on the status of their supply chain. So one of the things that COVID has pointed out is that there's a lot of supply chain disruptions because depending on where the supply is coming from or in particular if it has to be shipped from overseas, there could be disruptions and the availability of that supply and HPE was was able to help our customers create an intelligent edge solution that enabled them to be able to better map the demand signal with available supply. Then with healthcare, with COVID, many of our customers' healthcare providers had to change the way they delivered healthcare and what they needed to do was change the way that they did what we call distance healthcare, where they were able to use edge-based technology to then deliver healthcare to their customers or their patients remotely. And HPE was able to put together a solution that enabled them. It's a virtual desktop solution that enabled them to use their devices from their homes to be able to deliver care to their patients. Then lastly, well the things that COVID has also brought to the forefront is the ability for businesses to enable their employees to be able to run their operations remotely from home. Again, this is where the need to provide data center class management capabilities at the edge were critical because they couldn't have employees go into the plants because of COVID restrictions. So the IT staff had to work from home and then manage the edge devices remotely and they had to have the right tools to enable them to do that. So what I'd like to do is hand the conversation over to John to talk about the the HPE assets that enable these types of use cases. So John, do you want to share a little bit about the HPE portfolio? >> Thanks, Peter. What I really appreciated about what you talked about was the idea that no edge use case is quite the same. With that in mind, HPE has developed a portfolio of technologies to really optimize around those different use cases, whether it's one of those AI and inferencing workloads, like you were talking about, where you might use one of our great AMD platforms like the DL385 or 365, or maybe it's more of a traditional data center workload that you've extended out or dis-aggregated onto the edge. There you might consider one of our time tested workhorses like the ProLiant DL360 or 380. And we've even got new products for emerging workloads like on Telco on their edge where we've designed the brand new DL110 for virtualized RAN environments, specifically meeting some of those Telco needs around acceleration and data movement. Finally, some of the examples you talked about really around the manufacturing floor, or other specialized environments where you might have different ambient temperature requirements or other things. This is where HPE edge line really shines. So as you can see here, we've got a lot of different options for you in regards to how you right-size the type of resources for your particular workload. On the left side, you'll see our 1U,1P; very small form factor DL325, really great where you need fewer processing resources but a lot of other high performance access to NVMe or accelerators. Think of things like VDI. When you're tying to put a lot of users into a smaller space, you can move up to one of our devices that offers larger storage footprints. Look at the DL345 or the DL385, both really designed to maximize access to things like NVMe or acceleration while giving you the right balance between process or another resource. Or you can choose to use one of our time-tested answers like the DL360 and 380. These are two of the world's best selling servers and they've been used in environments and applications all over the map. Anything you can think, of these servers have been implemented for. So you can trust that they've been tested, that they've been used and that we've really spent the time optimizing exactly how those servers work for you. And then as mentioned before, we look to continue offering new servers that will help to really bring the exact kind of workload resources needed for new environments as well, specifically the Telco edge. >> Thank you John. For many of our customers, they don't have the resources or the expertise to get started with the intelligent edge. So it's important that they find a partner that has not only the expertise but the partner ecosystem which is critical to help them on their journey. And so what HPE focuses on is bringing the right partners to bear for our customers to help first understand what's the customer trying to accomplish? What's important to them? And focusing on solutions that are going to deliver the business value that the customer expects and then to put together a pilot that's going to not only show the customer the solution that's going to deliver the value that they expect but a pilot platform that can scale is one of the things with the examples I shared earlier, once the customer finish those pilots, they're ready to scale this across all the organization. It was critical for them to have a solution that would scale with their size and these are large companies. So they have multiple sites in some cases, thousands of site, so it's critical. That's a solution scale. So HPE Pointnext Services has that expertise. They have those relationships with the partners to come in, understand what you're trying to accomplish, understand your existing environment which is critical, cause we want to leverage as much of the customer's existing investment as possible but then to bring in the additional capabilities that are necessary to deliver the outcome that the customer wants but to make sure that it is secure. And it all starts with HPE Silicon Root of Trust where it begins with the build process where we make sure that our compute assets are secure all through the build process, there are Silicon Root of Trust even in delivery when the assets powered down, we have tamper-proof capabilities to determine if that asset's been tampered with in transit and then most importantly once it's put into production to make sure that the device stays secure once it's beaded up. Then again to bear for our customers' solutions that solve their business problems; running on the industry's best technology but to give the customer the option of either procuring it or consuming it as a service. Many customers don't know where to get started. We can help you with that as well. First is they want to know how can I improve my decision making process? How can I improve the efficiency of my operations? And for many of our customers, that's doing it locally. Cause all of our customers have a cloud strategy, a hybrid cloud strategy and we incorporate that into the solutions that we build for our customers. We help them really focus in zero end on a pilot project that's going to deliver the business value that they expect. Therefore many of our customers, a lot of these projects never make it out of the lab. They test and test and test and then for some of them when they put it into production, it doesn't scale, so they have to start all over again. So it's important that they have a partner that has experience to help them pick the right use case. But the most importantly, put it in the right architecture that can scale. Then we put together a business model. For many of our customers especially because of COVID, they want options. They want to conserve capital. They don't want to spend their capital on buying a solution. They want to consume a service. And HPE GreenLake services offers that where our customers, if they choose, can have HPE not only build the solution, deploy it, but they manage it for the customer and allow the customer use their resources to focus on creating new services for the business. We even offer leases and other options as well. It is important that customers when they architect an edge-based solution that they architect one that is foundational for all their sites. This also helps customers reduce their costs and also reduces the complexity of the solution going forward. So HPE's GreenLake services gives customers the option of consuming services just like the public cloud at the edge with the transparency that the public cloud offers as well by giving customers that full dashboard view of the status of their edge-based infrastructure so that they can report out and provide that transparency to their stakeholders but also to bring in the partner ecosystem that goes with that. The partner ecosystem that allows you to create the platform to find the right solutions that run on those platforms, be an artificial intelligence or IoT or data pipelines, whatever it might be is necessary to drive the use cases that the customer needs to improve their business. But also financial services to give the customer choice on how they want to deploy their solutions, they want to capital acquire it, then want to lease it or do they want to consume it as a service. If you'd like to learn more about the products you've heard about today, here are two links to our ProLiant or edge line servers. So on behalf of John and myself, we want to thank you for your time today and hope you found this information useful. Thank you.

>> Hi everyone, my name is Michael Swan and I'm the global director of business development for HPE Financial Services, and I'm really excited to have the opportunity to speak with you today. In this session, I will provide you with an overview of how we help our customers create investment capacity to help fuel their cloud in digital transformation initiatives. I will then share with you three customer use cases to talk about the types of solutions that we've implemented to help our customers move their businesses forward. Now, it wasn't that long ago that businesses were prioritizing their 2020 digital transformation projects. And executives were telling us that they thought 2020 was going to be a year where they were going to see a significant ramp in their spending on digital transformation projects. Businesses were already starting to plan to make investments in cloud and security and AI and machine learning to help improve their customer experience, help to advance employee productivity, and help them to get an overall better competitive edge. Then of course, we were all hit by the COVID-19 pandemic. And in response to the pandemic, businesses have had to think really hard about how do they enable workforce productivity when they have nearly all of their employee base working from home. They've also had to think about some of the challenges around ensuring connectivity, security, and maintaining a very high degree of customer support and customer experience. And the economic impact of COVID put a lot of pressure on companies to maintain their cash positions and preserve capital. Now Gartner's forecasted that IT spending will increase to about $3.7 trillion in 2021, which is up about a little more than 4% from last year. And investment in cloud-based IT infrastructure in particular is expected to surge to more than 27% this year. So what all this is telling us is that customers are ready to move beyond the pandemic. They're thinking about how can I take my company to the next level? Where are the investments that I need to be making to advance and grow? Now to advance and grow requires investment capacity. Investment capacity is really the lifeblood of any business, and without that, you can't invest in your digital transformation, and you can't invest in the long-term future of your business. So this is where HPE Financial Services can help. We're working with businesses to help create the investment capacity that they need to move their business ahead. And we're doing this in three ways. Firstly, we're creating financial vitality. In the last two years alone, we've injected more than $640 million back into our customers' budgets to help fuel their investments. And we provide a range of investment solutions that help our customers to increase their ability to invest and do so in a way that actually results in better financial outcomes. Secondly, we're able to manage any tech, anytime, anywhere. We are recognized by both IDC and Gartner as a global leader in asset lifecycle supporting the circular economy. And in the last two years alone, we've taken in more than eight million assets into our technology renewal centers with more than 90% of those assets being designated for reuse before recycle. And thirdly, we are your CIFO. With nearly 30 years of IT Asset economic experience in our DNA, we work with you to understand where you want to go, what you need, and to help you put an investment strategy in place to help you get there. Let's now look at some of the solutions that we are delivering to our customers. Now, many of our customers seek to defer or reduce the expense of investing in IT in order to preserve their capital, or to try to do more with their available budgets. So we offer a range of Payment Deferral programs which enable our customers to delay the upfront costs of modernizing their IT. And in response to COVID, in 2020 we introduced the Payment Relief Program which enables customers to keep those critical IT projects moving forward while deferring more than 90% of the cost into the next calendar year. We're also helping customers to create investment capacity by generating cash from assets. And we're doing this based on the value of equipment that they already own. With our Accelerated Migration offer, we're converting existing, client-owned IT into an incremental source of capital, while enabling them to continue to use that equipment for its remaining useful life. And with our Tech Buyback program, we're managing the disposition of older legacy equipment returning value back to our customers and helping them to contribute to their sustainability initiatives. Now in each of our IT investment solutions, we aim to help our customers match their payments with the use of the technology. Our Extended Deployment solution is a phased deployment program that allows our customers to acquire the critical technology that they need today upfront. But we allow them time to get the equipment stood up in place, configured and tested, up and running before they actually have to begin making any payments for that equipment. And then lastly, we help enterprises relieve capacity strain or delivery delays that might be caused by supply chain disruptions or limitations in their capital budget, ar perhaps they're just simply looking to maintain existing legacy systems that are running critical business applications. And we do this by sourcing HPE certified pre-owned equipment that can be used to help maintain existing legacy systems. Now, all of the pre-owned equipment that we make available is available with a warranty, and is also eligible for HPE support services. Now, with that, as an overview, I'd like to transition to a brief video, which highlights how we help customers create investment capacity. (bright music) HPE and HPE Financial Services are meeting customer demands across the IT life cycle, while also contributing to the circular economy. And we're doing this in three ways. First HPE designs solutions and sources components with the aim to maximize reuse before recycle, and to minimize environmental impacts. Second, HPE's GreenLake Cloud services helps customers to acquire and consume only the capacity that they need for the period of time that they need to use it, and have the flexibility to refresh technology in an environmentally friendly way. We are committed to taking back 100% of all technology that is deployed within the HPE GreenLake Services contract. And last, HPE has industry leading experience and capabilities to renew IT assets, keeping them in the circular economy longer, and thus minimizing waste. We are committed to helping each one of our customers contribute to the circular economy, and this is one of the more important reasons why customers choose to partner with HPE. So let's now look at three customer use cases to help explain how we have helped customers create the investment capacity that they needed to move their business ahead. This first example involves an agricultural company based in Turkey. Their objective was to prevent COVID from disrupting their operations. They needed to ensure that they could preserve cash while at the same time, they wanted to continue to move ahead with a critical IT modernization project. They sought creative approaches to do more with their IT budget and to keep the project moving on track. HPE Financial Services made it possible for MAY Tohum to continue modernizing their IT estate while deferring the cost of the project into the following fiscal year, by utilizing our Payment Relief program. As a result, the infrastructure transformation project went forward, they were able to preserve their cash position and most importantly, MAY was able to continue to bring its innovative seed products to market without any disruption. The next customer example involved a large bank in New Zealand. Now, it might come as a surprise to you to think about a bank seeking additional investment capacity. Well banks understand well the importance of maximizing the return on their capital, and they also need to comply with regulations requiring certain capital funding commitments. Therefore banks as a whole comprise one of our largest set of customers. Now this bank in particular sought to transform the management of IT for their business to an as-a-service model. They sought additional investment capacity, and they wanted a single approach to managing their IT infrastructure. HPE Financial Services helped the bank to generate cash from their existing assets and transition them into the new GreenLake Services contract. This solution helped ensure not only that the ongoing business operations would not be disrupted, but it also provided an additional source of capital to help fund the project, and it helped to accelerate their move to an as-a-service model. And the last example I would like to share with you involves a hospital based in Austria. Now like most healthcare facilities around the world, this hospital's operations were severely impacted by COVID in the increased demand for their services. They experienced IT system constraints that were created by increased patient workloads, and sought immediate access to additional computing power to ensure they could continue to deliver critical care to their patients. HPE Financial Services sourced 14 Gen9 C7000 Blades, pre-owned equipment to match the existing systems that they already had in place. And this enabled the hospital to ensure that they could provide uninterrupted operations and critical care to their patients. HPE Financial Services also works closely with partners, whether they be IT solution providers, system integrators, or channel partners to help them create investment capacity for their customers. So now I'd like to share a brief video with a few stories from some of our partners. >> We had a client who needed to roll out a more robust identity and access management solution to support their efforts of enabling their remote workforce. The project wasn't budgeted, but quickly moved to the top of the priority list. And we were able to structure a deal that allowed them to acquire the technology they needed in the timeframe required, while deferring payments over an extended period. >> I think what's really important for the HPE at Tech Data structure shift, it allows us to offer an enterprise class solution as a true partnership, addressing some of their requirements and needs of the enterprise market plus. >> Obviously the customer was very pleased, we were very happy, and it was a way for us to get much closer to that customer, become their trusted advisor, and set us up for the future where we can continue to add value to that customer with HPE. >> Now we do believe that Hewlett-Packard Enterprise has a very strong and competitive offering to our customers when it comes to especially asset upcycling services, and also offering certified pre-owned products on the Nordic market. >> We leveraged HPEFS to acquire millions of dollars of hardware to stock up our data center to provide instant on-demand for a virtual desktop environment for remote users for several of our manufacturing and financial clients. (light music) >> As a recap, HPE provides the solutions and services to accelerate your business transformation. With HPE GreenLake, you can deploy any workload as-a-service and achieve cloud-like speed, agility, in the as-a-service model, wherever your apps and your data reside today, whether that be in a co-location facility, or within your own data center. With HPE Pointnext Services, you gain access to more than 15,000 experts, and an ecosystem of partners to help you at every stage of your digital transformation journey. And HPE Financial Services helps you create investment capacity to drive your digital transformation initiatives. We help you overcome financial barriers to your transformation, we help you unlock the value of your entire IT estate, and we are your business and technology partner. Maintaining flexibility and creating financial capacity are key to achieving your digital transformation objectives. I encourage you to reach out to HPE Financial Services to discuss your IT investment strategy and explore ways that we can help you achieve your desired business outcomes. Included here are a few QR codes where you can learn more or even view a virtual tour of one of our technology renewal centers. Thank you again for joining me in this session. I wish you a great rest of the day, and I hope you keep well, bye.

>> Thank you for joining us today for this session entitled, Deploy any Workload as a Service, When General Purpose Technology isn't Enough. This session today will be on our HPE GreenLake platform. And my name is Mark Seamans, and I'm a member of our GreenLake cloud services team. And I'll be kind of leading you through the material today which will include both a slide presentation as well as an interactive demo to get some experience in terms of how the process goes for interacting with your initial experience with our GreenLake system. So, let's go ahead and get started. One of the things that we've noticed over the last decade and I'm sure that you have as well has been the tremendous focus on accelerating business while concurrently trying to increase agility and to reduce costs. And one of the ways a lot of businesses have gone about doing that has been leveraging a cloud based technology set. And in many cases, that's involved moving some of the workloads to the public cloud. And so with that much said, though, while organizations have been able to enjoy that cost control and the agility associated with the public cloud. What we've seen is that the easy to move workloads have been moved but there's a significant amount as much as 70% in many cases of workloads that organizations run which still remain on prem. And there's reasons for that. Some cases it's due to data privacy and security concerns. Other times it's due to latency of really needing high-performance access to data. And the other times, it's really just related to the interconnected nature of systems and that you need to have a whole bunch of systems which form an overall experience and they need to be located close together. So, one of the challenges that we've worked with customers and have actually developed our GreenLake solution to address is this idea of trying to achieve this cloud-like experience for all of your apps and data in a way that leverages the best of the public cloud with also that same type of experience delivered on premise. So as you think about some of the challenges, again, we touched on this that customers are trying to address. One of the ones is this idea of agility, being able to move quickly and to be able to take a set of IT resources that you have and deploy them for different use cases and different models. So, it's one of the things as we built GreenLake, we really had a strong focus on is how do we provide a common foundation, a common framework to deliver that kind of agility. The next one is this term on the top right called scale. And one of the words you may hear is you hear cloud talked about regularly is this notion of what's called elasticity and the ability to have something stretch and get larger kind of on an on demand basis. That's another challenge and premise that we've really tried to work through. And you'll see how we've addressed that. Now, obviously, as you do this, you can achieve scale if you just put a ton of equipment in place much more maybe than you need at any given time but with that comes a lot of costs. And so as you think about wanting to have an agile and flexible system, what you'd also like is something where the costs flexes as your needs grow and it's elastic and that it can get larger and then it can get smaller as needed as well. So, we'll talk about how we do that with our GreenLake solution. And then finally it's complexity, it's trying to abstract away the vision for people of having to be aware of all the complexity it takes to build these systems and provide a single interface, a single experience for people to manage all of their IT assets. So we do that through this solution called HPE GreenLake and really we call it the cloud that comes to you. And as you think about what we're really trying to do here is take the notion of a cloud from being a place where people have thought about the public cloud and turning that to an idea of the cloud being an experience. And so it's regardless of whether it's in the public cloud or running on premise or as is the case with GreenLake, whether it's a mixture of those and maybe even a mixture of multiple public clouds with on-prem experience, the cloud now becomes something you experience and that you leverage as opposed to a place where you have an account and that can include edge computing combined with co-location or data center based computing. It could include equipment stored in your own data center and certainly it can include resources in the public cloud. So, let's take a look at how we go about delivering the experience and what some of those benefits are as we put these solutions in place. So, as you think about why you'd want to do this and the benefits you get from GreenLake, what we've seen in terms of both working with customers and actually having studies done with analysts is the benefits are numerous, but they come in areas that are shown here, one time to deployment. And that once you get this flexible and easily to manage environment in place with what we'll show you are these prebuilt, pre-configured and managed as a service solutions, your time to deployment for putting new workloads in place can shrink dramatically. The next in terms of having these pre-configured solutions and combining both the hardware and software technology with a set of managed services through our GreenLake managed services team, what you can do is dramatically reduce the risk of putting a new workload in place. So for example, if you wanted to deploy virtual desktop infrastructure and maybe you haven't done that in the past, you can leverage a GreenLake VDI solution along with GreenLake management services to very predictably and very reliably put that solution in place. So you're up and running focusing on the needs of your users with incredibly lowered risk, because this was built on a pre-validated and a pre-certified foundation. Obviously, I talked earlier about the idea with GreenLake is that you have flexibility in terms of scaling up your use of the resources, even though they're computers that may be in your data center or a colo, and also scaling them back down. So if you have workloads over time, that may be even an end of month cycle or an end to quarter cycle where certain workloads get larger and then would get smaller again, the ability with GreenLake on a consumption billing basis is there where your costs can flow as your use of the systems flow. And again, I'll show you a screen in just a few minutes, that kind of illustrates what that looks like. And then the last piece is the single pane of glass for control and insight into what's going on. And what we mean by that is not just what's going on from a cost perspective, but also what's going on from a system utilization perspective. You'll see in one of the screens I'll show that there's a system utilization report of all of your GreenLake resources that you can view at any time. And so what you can get visibility to, for example, with storage capacity as your storage capacity is being consumed over time as you generate more data, the system will tell you, hey, you're getting up to about 60, 70% utilized. And then at that point, we would be able to work with you to automatically deploy even though you won't be paying for it yet, additional storage capacity so it's ready as your needs grow to encompass that. So in terms of what are some of these services that we deliver as part of GreenLake? Well, they range and you see here a portfolio of services that we offer. If you start at the bottom, it's simple things, right? Things like compute as a service, and I'll show you examples of that today, networking as a service, hyper-converged infrastructure as a service. And then if we work our way up the stack, we move from kind of basic services to platform services, things like VMware and containers as a service. And then if we go to the top layer of this, we actually can offer complete solutions for targeted workloads. So if your need was for example, to run machine learning and AI, and you wanted to have a complete environment put in place that you could leverage for machine learning and AI and use it and consume it on a consumption as a service basis, we've got our MLOps solution that delivers that. And similarly, I mentioned earlier, VDI for virtual desktops or a solution for SAP HANA. So, the solutions range from very basic compute at the foundation all the way up to complete workload solutions that you can achieve. And the portfolio of what these are is expanding all the time. And as you'll see, you can go out to our hpe.com site and see a complete catalog of all the GreenLake services that are available. So let's take a minute and let's drill in like on that MLOps solution. And we can take a look at how that fits together and what makes that up. So, if you think about GreenLake for MLOps, it's a fast path for data scientists, and it's really oriented around the needs of data scientists within your organization who have a desire to be able to get in and start to analyze data for advantage in your business. So, what comes with an MLOps solution from GreenLake starts at the left side of the slide here with a fully curated hardware platform, including GPU based nodes, data science, optimized hardware, all the storage that you're going to need to run at scale and that performance to make these workloads work. And so that's one piece of it is a curated hardware stack for machine learning. Next in the software component, we pre-validated a whole bunch of the common stack elements that you would need. So beyond operating systems, but things for doing continuous integration, for things like TensorFlow and Jupyter notebooks are already pre-validated and delivered with this solution. So, the tools that your data scientists will need come with this, ready to go, out of the box. And then finally, as this solution gets delivered, there's a services component to it beyond just us installing this full thing and delivering a complete solution to you. But the GreenLake management services options where our services teams can work side by side with data scientists to assist them in getting up to speed on the solution, to leveraging the tools, to understanding best practices if you want those, if you want that assistance for deploying MLOps and the whole thing's delivered as a service. As similar, we similar solutions for other workloads like SAP HANA that would leverage again, different compute building blocks, but always in a way that's done for workload optimized solutions, best practice and that build up that stack. And so your experience in consuming this is always consistent, but what's running under the hood isn't just a generic solution that you might see in for example, a public cloud environment, it's a best practice, hardware optimized, software optimized environment built for each one of the workloads that we can deploy. So I like to do at this point is actually show you what's the process like for actually specifying a GreenLake solution. And maybe we'll take a look at compute as our example today. So, what I've got here is a browser experience, I'm just in my web browser, I'm on the hpe.com website and what I'd like to do. I mean the GreenLake section and I've actually clicked on this services menu and I'm going to go ahead and scroll down. And one of the things you can see here is that catalog of GreenLake services that I referenced. So, just like we showed you on the slide, this is that catalog of services that you can consume. I'm going to go to compute and we'll go about quoting a GreenLake compute solution. So we see when I clicked on that, one of the options I have is to get a price in my inbox. And I'll click on that to go in here to our GreenLake quick quote environment where if in my case here for our demonstration, I'll specify that I'd like to purchase to add to my GreenLake environment some additional general compute capability for some workloads that I might like to run. If I click on this, I go in and you notice here that I'm not going to specify server types. I'm really going to tell the system about the types of workloads that I'd like to run and the characteristics of those workloads. So for example, my workload choices would be adaptable performance or maybe densely optimized compute for highly scalable and high performance computing requirements. So, I'll select adaptable performance. I have a choice of processor types, my case, I'll pick Intel. And I then say, how many servers for the workloads that I want to run would be part of the solution. Again, in my case, maybe we'll quote a 20 server configuration. Now, as we think about the plans here, what you can see is we're really looking at the different options in terms of a balanced performance and price option which is the recommended option. But if I knew that the workloads I were going to run were more performance optimized, I could simply click on that option. And in the system under the hood does all the work to reconfigure the system. I'm not having to pick individual server options as you see. So once I picked between cost optimized balance or performance, I can go in here and select the rest of the options. Now, we'll start at the top right and you see here from a services perspective, this is where it specifies how much services content and in services assistance I'd like all the way from just doing proactive metering of my solution all the way through being able to do actual workload deployment and assistance with me physically managing the equipment myself. The other piece I'll focus on is this variable usage. And this comes back to how much of the variable time, variable capacity of additional capacity, what I like to have available in my data center for this solution. So if I know that my flex could be larger in the future of the capacity, I want to flex up and down. I might pick a slightly larger amount of flex capacity at my location as part of this solution. With that, I'd select that workload. And the less steps would be, I could click on get price and this whole thing will be packaged up and shipped to you in terms of the price of the solution. And any other details that you might like to see. And I encourage you to go out to hpe.com and to go through this process yourself for one of the workloads that might be of interest for you to get a flavor of that experience. So if we move forward, once you've deployed your GreenLake solution, one of the things you see here is that single pane of glass experience in terms of managing the system, right? We've got a single panel that all in one place provides you access to your cost information for billing, and what's driving that billing, your middle and the middle of the top center, you can see we've got information on the capacity planning but then we can actually drill in and actually look at additional things like services we offer around continuous compliance, capacity planning data for you to build and see how things like storage or filling, cost control information with recommendations around how you could reduce or minimize your costs based on the usage profile that you have. So, all of this is a fully integrated experience that can span components running both on-premise and also incorporating services that could be in the public cloud. Now, when we think about who's using this and why is this becoming attractive? You can imagine just looking at this capability that this ability to blend public cloud capabilities with on-premise or in a co-location, private data center capabilities provides tremendous power and provides tremendous flexibility for users. And so we're seeing this adopted broadly as kind of a new way, people are looking to take the advantages of cloud, but bring them into a much more self-managed or on-premise experience. And so some example, customers here include deployments in the automotive field, both at Porsche or over on the right at Zenseact, which is the autonomous driving division of Volvo where they're doing research with tremendous amounts of data to produce the best possible autonomous driving experience. And then in the center, Danfoss who is one of the world's leading manufacturers of both electric and hydraulic control components. And so as they produce components themselves, that drive an optimized management of physical infrastructure, power, liquids and cooling, they're leveraging GreenLake for the same type of control and best practice deployment of their data centers and of their IT infrastructure. So again, somebody who's innovating in their own world taking advantage of compute innovations to get the benefits of the cloud and the flexibility of a cloud-like environment but running within their own premise. And it's not just those three customers clearly. I mean, what we're seeing is, as you see on the slide, it's a unique solution in the market today. It provides the true benefits of the cloud, but with your own on-premise experience, it provides expertise in terms of services to help you take best advantage of it. And if you look at the adoption by customers, over a thousand customers in 50 countries have now deployed GreenLake based solutions as the foundation on which they're building their next generation IT architecture. So, there's a lot of unique capabilities that as we built GreenLake, that we have that really make this a single pane of glass and a very, very unified and elegant experience. So as we kind of wrap up, there's three things I want to call your attention to, one, GreenLake, which we focused a lot on today. I'd also like to call your attention to the point next services, which are an extension of those GreenLake services that I talked about earlier but there's a much broader portfolio of what Pointnext can do in delivering value for your organization. And then again, HPE financial services who much like what we do with GreenLake in this as a service consumption environment can provide a lot of financial flexibility in other models and other use cases. So, I'd encourage you to take time to learn about each of those three areas. And then there's obviously many many resources available online. And again, there's some that are listed here but it kind of as a single point takeaway from this slide, I encourage you to go to hpe.com. If you're interested in GreenLake, click on our GreenLake icon and you can take yourself through that quoting experience for what would be interesting and certainly as well for our compute solutions, there's a tremendous amount of information about the leading solutions that HPE brings to market. So with that, I hope that's been an informative set of experience. I'm thanking you for spending a little bit of time with us today and hopefully you'll take some time to learn more about GreenLake and how it might be a benefit for you within your organization. Thanks again.

>> Okay. Hey, we're coming to the end of our session here at Workplace Next. And this is a really exciting part where you get to meet the experts. Now, if you're watching live, you actually can go in and speak to the experts directly, if you're seeing this on demand, you'll be able to see what was said, you won't be able to, of course interact live. So again, we call this segment, Meet the Experts, and we're going to allow you to speak directly with them, you can click on that link and go into those individual rooms. We're very excited first to introduce Jone Ostebo, who is the solution engineering manager at Aruba. He's an expert in wireless and is this area is going to see massive changes in the coming years. Jone, can you tell people what to expect in your Meet the Expert Session? >> Sure, today we'll talk about how you can deal with working remotely, how you can connect from home and be connected and reach all your resources in the office, like actually, if you were in the office. So both me and a resource from a Pointnext services would be here and answer all your questions. >> Awesome. Okay, so if you want to talk to Jone directly, just click on his room link and go have at it. Next, I want to introduce you to Lin Nease. Now Lin is an HPE fellow and chief technologist for the IoT advisory practice at HPE Pointnext services. Now I'm here to tell you, an HPE fellow has not only achieved this status by being a leading technologist, I might even say exceptional technologist. But these individuals are visionaries, and the edge in the IOT is one of these areas that has mind-bending potential. Lin, thanks for being here. What can people expect from your Meet the Experts Session? >> Thank you, Dave. So in our Meet the Expert Session, we're going to be talking about some of the critical issues that we're seeing with our customers, honestly, in this whole back to work scenario and how they're tangling with the, the major strategic issues associated with how long is COVID going to last? How do they deal with business continuity? So very importantly, we've had dozens of engagements and some of the issues that are profound are things like privacy. How do I provide social distancing? How to provide contact tracing and use technology to automate some of that? While at the same time, preserving privacy extremely interesting and extremely compelling right now for many of our customers. >> That's great Lin, and when you think about, you know, things like business resiliency totally changed our thinking and privacy as well, so if you want to talk to Lin, we've set up these little cube rooms for you so click on Lin's link and go into his room and chat away. Now I'd like to introduce Mark Wayt. Mark is a platforms architect, and he focuses on the critical elements of a digital workplace. Now this has become increasingly important since the pandemic and the entire from home pivot. Mark, please set up what you're going to talk about and discuss in your, Meet the Experts Breakout Session. >> Yeah. Thanks Dave. So today we're going to talk about how technologies can help provide remote access to these critical and secure resources, but wherever your work needs to be done. So the pandemic has changed how people work and people have to work remotely. So we'll look at how these technologies can also satisfy the very specialized requirements of power users or power applications in your organization. >> That's critical, right? I might have resources into the office that I may not have access to. And now you guys are going to talk about how to provide those. That's fantastic. Okay. So look at, you know, the drill by now, we've set up these little drill down rooms, these cube rooms. So if you want to talk to Mark, click on that link and have a chat. Okay, now I'm going to introduce you to Peter Mansell. Peter leads the digital workplace practice within HPE Pointnext services. He's got an amazing perspective on how remote workers can not only stay productive. I mean, that's really important, but also some of the other really important factors that organizations need to think about and consider when taking care of their employees that are working remotely. Peter, would you kindly share what you'll be discussing today in your Meet the Expert Session? >> Yeah, so delighted to be with you today, Dave. Great, thanks for the intro. And I'll Meet the Expert Sessions. We're going to cover all the subjects around remote work. In fact, our focus will be how do we help people work, from any location at any time? We're going to take a look at some of the challenges or additional challenges that customers have faced in 2020, and the need to move towards a smart work environment. You hear from some of our experts, we'll talk through some of the solutions and offerings that we have in this space. And then we'll close out the session, focusing on how technology can have a really big impact on the way we drive productivity and innovation in our jobs, and in our organizations today. >> That's great. Looking forward to that. Thank you, Peter. And thanks to our experts. You know, the timing of this Workplace Next event is actually really good because in March, we just had to react. Now we have some time to sit back and think about how we really want to architect the workforce for the future but, so now it's your turn. So jump in to the Meet the Expert Sessions and ask your questions. Have a great rest of your day. (upbeat music)

>> Hello and this is Dave Vellante. (image whooshing) You know before the pandemic, about 16% of people worked from home. Organizations now expect that to double, over the long term. We're taking about people working from home virtually all the time. And November 10th, we have an event where we've co created with the help of Hewlett Packard Enterprise, it's called Workplace Next. And it's really focused how organizations are re architecting their work force, in this new state that we're in. And with me is, David Crozier, who is the head of HPE's Pointnext Services organization. David, tell us about this event. >> Well the event is really to address the challenges that you've raised there Dave. Like you said, people are trying to find their best way forward. There's been a lot of change happen very quickly, a lot of it adaptation required. So what we're attempting to do is bring together people who've been there and done it, in many different roles and organizations this year. Look at best practices, lessons learned, but then also bridge to the practical. What can you do with your transformation quickly going forward, and specifically how can you do it. So we've put a big focus on getting people from across the diverse range of industries, expertise areas, and then giving a forum, where attendees at the event can connect with our experts. We have thousands of them around the world, to really get practical, in what next steps you can take to succeed, as we go, through the next phase of this pandemic. >> And you're going to hear from, as David said, experts, customers, analysts, and so if you care about how to architect the workforce of the future, click on the link in the description of this video and we'll see you there. (bright music)

>> Hello everyone, this is Dave Volante. On November 10th theCUBE 365 is hosting Workplace next. It's an event focused on how organizations are adapting to the new abnormal, and architecting the workplace of the future. And it's brought to you by Hewlett Packard Enterprise. And with me is David Crozier who heads, HPE Pointnext Services Marketing Organization. David, what do people expect from this event? Who should attend? And what's in it for them? >> Well as you said Dave, a lot of people are struggling with the way that we have to change our work patterns right now. So what's it for people attending the event is we're going to talk about some of the lessons that business leaders have learned over the last six months, how to apply that for the future and how to go forward. It's really aimed at leaders across different fields in IT roles of course, but also no IT roles like Site Plant Facilities and Human Resources. >> Fantastic. I mean, this is an amazing program. It's very timely. So if you care about how to help your employees be as productive as possible, while at the same time creating a culture where people are enthusiastic, motivated, and very importantly safe. Click on the link in the description of this video and register. We'll see you there. (digital upbeat music)

>> announcer: From around the globe, it's theCUBE, covering HPE Discover Virtual Experience brought to you by HPE. >> Hi everyone, welcome back to theCUBE's coverage, we're from HPE Discover Virtual Experience conference, HPE Discover, physical event, a gathering that happens every year. This year we're doing it virtually with HPE as everyone is kind of sheltering in place. And of course, we've got the best guests, the executives from HPE, their customers, practitioners, developers, we're talking to them all. I'm John for the host with theCUBE. We're here with John Schultz, the Chief Legal and Administrative Officer for HPE. Thank you for joining me today. Great to have you. >> My pleasure, thanks for having me. >> So you're in a unique position, I see you oversee the legal and administrative office of HPE. You've been there from when it was one big company and then two. >> Yep. >> You've seen some transformations over the years, (laughs) and you've seen in many different use cases right now, we're living in one that's pretty significantly historic, a lot of unrest of recent, but the pandemic itself is upon us. And the reality of what's happening cannot be ignored anymore. The disruption that's happened, no one forecasted this. They forecasted hurricanes and tsunamis, but not, pandemics. So these outages, is it issues? Now they have to come out of this. Your customers have to come out of this with a restructuring, a reinvention and a growth strategy. This is truly a forced transformation. What's your thoughts? >> Yeah, no, clearly unprecedented times, but at the same time, I think our perspective is that this is only accelerating the underlying trends that were already in the market. It starts with the fact that more and more people were working from home, and more and more data is going to live on the edge. And therefore, you need systems that can essentially handle that data and make that data into actual insights to fuel your business. And so clearly that trend we think is only accelerating. We also think the trend is accelerating with respect to the fact that people want to get out of the business of buying and operating IT infrastructure in a traditional sense. They want to move to the consumption of IT as a service. They want to focus less on operations and again, more on taking the data and driving those insights for their business. So all of these trends that have been out there for the last 12, 24, 36 months, I think are just accelerating. And this confluence of events is, therefore, making what we're doing at HPE and the transformation that we're leading all the more critical. >> So I want to get your thoughts, and I want to unpack the impact of how your role at HPE kind of reflects into the real marketplace with your customers. And I bring that up because we're have been covering the DevOps movement for over a decade, and it's been always on the fringe and with the cloud native and all the app development has been great, but network operations, IT operations, security operations, these are operational functions that don't have the cavalier fast and loose kind of approach. And legal usually is involved. Administration involve policies, and some say blockers, but it's not anymore. You're the Chief Legal and Administrative of HPE. Talk about what your role is and how that role relates to these transformational decisions that have to go faster, not slower. >> Well, the biggest part of my role right now, that's touching on this is leading the transformation office that Antonio set up. And that is really focused on leading our transformation to being the Edge to Cloud as a platform company. And so I'm spending a tremendous amount of my time on that transformation. But in addition, IT has moved into my organization, and I have a number of other administrative organizations. And so I see what is needed in terms of simplifying operations, whether it's ITOps or other parts of the organization and how we need to use data and insights. So combining my role now as head of the transformation office and moving this pivot to as a service focused on our own IT transformation, and then looking at how it impacts all the other pieces of our operations has been incredibly valuable. We just launched our data office, the first-ever data office inside HPE which is also part of my organization, all intended to tie these pieces together because as companies continue to grow, develop, and in fact, try to become more agile and act with a greater sense of urgency. It really is that combination of transforming your own IT, understanding what those new services are that are out there that will allow you to do that. And then putting data at the center of everything you do in terms of driving those actionable insights. And so that's where I've been focused, and I expect to spend a lot more of my time over the next year or two. >> I can only imagine, love that mission. Also, just for the folks watching you guys did indicate that. And as Antonio said publicly that everything will be sold as a service by HPE by 2022. Certainly, we'll be tracking that and want to ask more about that later. But you mentioned data, and this is where I think you're starting to see the biggest impact. Data and data silos as the real blocker for the new operating model. And sometimes there's compliance involved, certainly outside the United States it's regulations, privacy, all kinds of checkboxes is on the apps. So if you're an app developer, nevermind a business leader, you're dealing with the role of data, and more data makes machine learning smarter. So we know that. So this is a challenge. Can you share your thoughts on that? Because you want to have a bottoms up organic growth of data availability, but yet manage some of the top-down policies that might be needed in place from a protection whether its privacy or whatever. So it's really balancing that innovation formula of data everywhere, certainly at the edge for processing. This is now changing everything. This is a big deal. Could you share your thoughts on this? >> Yeah, I think there's certainly some challenges around privacy. Although we're seeing efforts made in a lot of different forums to realize or take into recognition what's actually happening in terms of the needs of companies and so forth. Honestly, in the position I'm in, I don't see regulation as being the primary stumbling block at the moment. The primary stumbling block inside companies like HPE is that siloed aspect with which we keep data. And ultimately we have to recognize that data isn't just sort of an asset. It is, in fact, ultimately the key to unlocking the greatest insight inside the company. And it has to be in movement. We need an active data, not just a data lake that everyone else can sort of access, but we need data flows that allow us to drive that cross-silo collaboration, and most importantly, to fuel AI and ML. That's certainly what we're focused on. That's why we launched our data office. And obviously, it ties in incredibly well to the transformation office and then what we're trying to do with our own IT. >> So the role of work is critical right now. The word work now has multiple meanings workforce, people, workplace, offices, now home. Workflows and workloads cloud and supply chain or any kind of value chain. These things are upside down. It's where all the energy is being spent. And so you said earlier, take away that the burden and make it easier for businesses to focus on this. Could you share your observation of things that executives and business leaders or practitioners should pay attention to as they start to reimagine work? 'Cause it's not just the "future of work" and collaboration. That's one thing, but what I just laid out is across the board end to end challenge. What's your observation? >> Well, certainly, you can think about it across the three traditional directions of people, process, and technology. And as you mentioned, look, the people element, especially by virtue of what's happened with COVID-19, is completely changed. And at HPE, we were focused on the workplace experience and in particular thinking about our sites and the like, and we were very quickly transformed into recognizing that the workplace experience now isn't just going to be in the office and candidly may not just be in the home, but it's a more fluid and dynamic workplace experience and how you enable that, create the right amount of productivity, but also the right amount of collaboration and camaraderie, it is critically important. On the process side, the opportunity with ML and AIOps, the ability to use data, and drive those actionable insights is really changing the game around processes. And folks have to rethink their end to end processes. Many of which are manual or people who operate through intuition versus data-driven and actual insight-driven sort of basis. So we're very focused on that piece as well. And I don't think everyone else is seeing the same thing on the technology side, which is as I said, people want to get out of spending time and investing dollars in operations. They now expect that to be happening for them. And what they want is someone who's delivering them an outcome or a solution that they can then drive through their business. And so whether it's the work that Kumar's doing with the element, whether it's the work that we're doing with respect to ours, as a service solution that we're going to be introducing here at Virtual Discover, their workplace, excuse me, their workflow focused right their workload-optimized, and it's less around selling a particular piece of infrastructure. It's now selling a solution that's intended to solve a real customer problem. That's what everyone wants to hear us talk about. And that's obviously where we're putting our focus. >> And that's where everyone's energy is on. And also, there's also the reinvention piece that I'd love to get your personal perspective on this job because of your background, your experience, and your current position. This kind of conversation I was just having with a CEO of a big company we've been talking we were like, "Well the new stuff is either the old stuff "at the same as the old stuff." Or, "It's either a little bit better than the old way," or, "It does something completely different and better "than the old way." And so people are trying to figure out as they bring in this world and these new apps are going to be refactored and modernized that it can't just be the same thing in a new box or a new solution. >> Absolutely. >> It has to be either significantly better, lower-cost, or completely different and completely better. And so, as we are embarking on a first time challenge globally around virtual first or remote first, whatever want to call it, I call it virtual first. You're dealing with policies, legal precedents that aren't their formulation of things have to be taken into account. All of this legacy business model value is going to be reshifted. And that's going to be an opportunity, for someone to build software for HR, for HR virtual, that environment. So all new things will be built around virtual first. As someone has an expert in that area, how do you think about that? What advice would you give folks out there? Whether it's a business or a developer who's going to make, might build the best HR app for virtual companies that no one's ever done before. It's not workday for virtual to users virtual first it's coming. >> No, I agree. Look, I think one of the things that we often see in the technology world is people build technology out. They have a mindset around the technology. They think about what that technology can do, and then they take it to market in a way that's really kind of technology first. And look, having been in a technology company for the last dozen years, I certainly understand the power of technology and the fuel that it provides. But I think what's changing, and I think it happened really when you think about sort of the mobile phone and then the apps and services that came with it is really that customer-first focus and that driving what happens on the technology side, whether it's a virtual HR delivery, or whether it's something happening in the legal space or supply chain or anywhere else. And that's really where we have changed our focus. It's not about being customer friendly, it's about being customer experience-oriented. And that really starts to drill in on what are the solutions, excuse me, what are the problems our customers are trying to solve? How are we going to solve them, and how are we going to do that better than everyone else. And that is a full shift in terms of how we develop our technology, how we go to market with our technology. And it really requires you to have a broader understanding of what your customers are really trying to achieve. Whether that's through an application, whether that's through the infrastructure services it's across the board. It sounds very simple, and on one level it is. But in terms of trying to change an entire organization to become customer experience led is more difficult and more challenging. And like I said, I think many companies are trying to do the same thing right now. And they realize that is a challenge. >> The good news is you have technology scale that's helping get a tailwind on the technology scale side, data, planes, or, however, that's going to evolve is rapidly changing as well. That's an opportunity. And the environment's forcing everyone to have new ways of doing things. So I think if you're going to make a change it a good time now. >> We also have... The thing about HPE is, we have some tremendously deep and rich customer relationships. And there's no substitute for that. And the second thing is, we have a phenomenal partner ecosystem. And our partners are been a key to the success of HPE for a long time. It's not just the ability to service customers, but it's the insight we get about customers do our partner network. And so I think we've got some real advantages there, in terms of driving the right kind of customer experience. It's that deep relationships that we already have, whether it's through Pointnext, which has an unbelievable net promoter score because of the quality of what they do and the deepness of that relationship. And again, the phenomenal partner ecosystem that we have, which just fuels the customer focus of our organization. >> I came up with point out, but also you can also offering HPE has financial services as well. That's now front and center. That's now not just a bolt-on option, it's fundamental now, could you just comment quickly on important to that. >> Oh, it's such a differentiator. It's such a differentiator for us. Clearly, it fuels our as a service and our consumption offerings. But when you get into life cycle management and especially sort of the upcycling capacity of HPFS with two of the world's largest up-cycling facilities, one in Scotland, one here in the US, we're able to provide a set of services to customers that really are unique. And what's great about it is, it's changing the game around sustainability and the circular economy. Most of the equipment we take back and run through our up-cycling service centers, either get refurbished and put back into use or get recycled. I mean, that is what people want to talk about today. Not just, "Hey, what's the newest thing in your technology?" But are you being responsible from a climate perspective? And we can say, absolutely, we are a leader in that space and HPFS is a huge part of that solution. So it continues to be a differentiator for us. And we see the opportunities on the HPFS side only growing. >> And not just for the large enterprise, either for the SMEs, for instance, that are dealing with COVID, they have to make their dollars work for the return on investment, and with the consumption model, which is proven in the cloud model, you get the value faster, you don't want to take on that front end costs, you guys, and that's not just an option, that's part of the value that people need right now. >> It's absolutely part of the value. And it comes up in big ways with respect to a greenlight deal or the light, but it comes up in other ways. We've had companies reach out who needed laptops to service their work from home workers. And HPFS has a inventory of refurbished PCs that they were able to deploy in a very short period of time to a customer. You can imagine the goodwill with that in genders in a situation like this with crisis is tremendous. So we do have a tremendous asset in HPFS. It's not just about financing. It's about the entire array of services that they provide that really sort of sync well with the rest of our business. And I think, again, gives us the ability to deliver a customer experience that is unlike any other company in the market. >> And I'm going to say now go out on a limb and say this, but I think business value right now, post-COVID is a social impact initiative. Business is needed now more than ever to get back to work. It's not just impact investing for societal benefits, although it's a lot to do there, the business issue is impact. So I think that's a very good for you guys to do that, I appreciate that. Okay, closing it out, John, we'll get your final question. I've been asking everyone to finish this sentence. HPE is competitive advantage to our clients is, blank. How would you answer that question? >> I think it's our ability to provide a genuine cloud experience, On-Premise, at the Edge, and a Colo. We really sort of pioneered, I think the concept of Hybrid Cloud. Now, if you want to talk about it in the context of distributed cloud or multi-cloud, I think we're the leader, there, the thought leader there, but we're also aiming to be the execution leader there in delivering those solutions that will drive the next wave of innovation inside HPE and continue to establish us on as the Edge to cloud platform as a service company. I'm so super excited about it, and thanks for the opportunity to talk about it. >> Well, thank you for spending your valuable time. And congratulations on the transformation initiative that you're heading up. And I agree with all the things you said I would add the data piece is going to be a super valuable component. I think you're right on the money on that point. Thanks for your time. John Schultz, Chief Legal and Administrative Officer at HPE, joining me here inside theCUBE Studios, Palo Alto. I'm John, for your host. Thanks for watching. (upbeat music)

>> From the SiliconANGLE Media Office in Boston, Massachusets, it's theCUBE. Now, here's your host, Dave Vellante. >> Hi everybody, welcome to this preview of HPE's, Discover Madrid storage news. We're gonna unpack that. My name is Dave Vellante and Hewlett Packard Enterprise has a six-month cadence of shows. They have one in the June timeframe in Las Vegas, and then one in Europe. This year, again, it's in Madrid and you always see them announce products and innovations coinciding with those big user shows. With me here is Patrick Osborne who's the Vice President and General Manager of Big Data and Secondary Storage at HPE. Patrick, great to see you again. >> Great to be here, love theCUBE, thanks for having us. >> Oh, you're very welcome. So let's, let's unpack some of these announcements. You guys, as I said, you're on this six-month cadence. You've got sort of three big themes that you're vectoring into, maybe you could start there. >> Yeah, so within HP Storage and Big Data where, you know, where our point of view is around intelligent storage and intelligent data management and underneath that we've kind of vectored in on three pillars that you talked about. AI driven, so essentially bringing the intelligence, self-managing, self-healing, to all of our storage platforms, and big-data platforms, built for the Cloud, right? We've got a lot of use cases, and user stories, and you've seen from an HPE perspective, Hybrid Cloud, you know, is a big investment we're making in addition to the edge. And the last is delivering all of our capabilities, from product perspective, solutions and services as a service, right? So GreenLake is something that we started a few years ago and being able to provide that type of elastic, you know, purchasing experience for our customers is gonna weave itself in further products and solutions that we announce. >> So I like your strategy around AI. AI of course gets a lot of buzz these days. You guy are taking a practical approach. The Nimble acquisition gave you some capabilities there in predictive maintenance. You've pushed it into your automation capabilities. So let's talk about the hard news specifically around InfoSight. >> Yeah, so InfoSight is an incredible platform and what you see is that we've been not only giving customers richer experiences on top of InfoSight that go further up into the stack so we're providing recommendation engines so we've got this whole concept of Cross-stack Analytics that go from, you know, your app and your virtualization layer through the physical infrastructure. So we've had a number of pieces of that, that we're announcing to give very rich, AI-driven guidance, to customers, you know, to fix specific problems. We're also extending it to more platforms. Right, we just announced last week the ability to run InfoSight on our server platforms, right? So we're starting off on a journey of providing that which we're doing at the storage and networking layer weaving in our server platform. So essentially platforms like ProLiant, Synergy, Apollo, all of our value compute platforms. So we are, we're doing some really cool stuff not only providing the experience on new platforms, but richer experiences certainly around performance bottlenecks on 3PAR so we're getting deeper AI-driven recommendation engines as well as what we call an AI-driven resource planner for Nimble. So if you take a look at it from a tops-down view this isn't AI marketing. We're actually applying these techniques and machine learning within our install base in our fleet which is growing larger as we extend support from our platforms that actually make people's lives easier from a storage administration perspective. >> And that was a big part of the acquisition that IP, that machine intelligence IP. Obviously you had to evaluate that and the complexity of bringing it across the portfolio. You know we live in this API-driven world, Nimble was a very modern platform so that facilitated that injection of that intelligence across the platform and that's what we're seeing now isn't it. >> Yeah, absolutely. You go from essentially tooling up these platforms for this very rich telemetry really delivering a differentiated support experience that takes a lot of the manual interactions and interventions from a human perspective out of it and now we're moving in with these three announcements that we've made into things that are doing predictive analytics, recommendations and automation at the end of the day. So we're really making, trying to make people's lives easier from an admin perspective and giving them time back to work on higher value activities. >> Well let's talk about Cloud. HP doesn't have a public Cloud like an Amazon or an Azure, you partner with those guys, but you have Cloud Volumes, which is Cloud-like, it's actually Cloud from a business model perspective. Explain what Cloud Volumes is and what's the news here? >> Yeah, so, we've got a great service, it's called HPE Cloud Volumes and you'll see throughout the year us extending more user stories and experiences for Hybrid Cloud, right. So we have CloudBank, which focuses on secondary storage, Cloud Volumes is for primary storage users, so it is a Cloud, public Cloud adjacent storage as a service and it allows you to go into the portal, into your credentials. You can enter in your credit card number and essentially get storage as a service as an adjacent, or replacement data service for, for example, EBS from Amazon. So you're able to stand up storage as a service within a co-location facility that we manage and it's completely delivered as a service and then our announcement for that is that, so what we've done in the Americas is you can essentially apply compute instances from the public Cloud to that storage, so it's in a co-location facility it's very close from a latency standpoint to the public Cloud. Now we're gonna be extending that service into Europe, so UK, Ireland, and for the EMEA users as well as now we can also support persistent storage work loads for Docker and Kubernetes and this is a big win for a lot of customers that wanna do continuous improvement, continuous development, and use those containerized frameworks and then you can essentially, you know, integrate with your on-prem storage to your off-prem and then pull in the compute from the Cloud. >> Okay so you got that, write once, run anywhere sort of model. I was gonna ask you well why would I do this instead of EBS, I think you just answered that question. It's because you now can do that anywhere, hybrid is a key theme here, right? >> Yeah, also too from a resiliency perspective, performance, and durability perspective, the service that we provide is, you know, certainly six-nines, very high performant, from a latency perspective. We've been in the enterprise-storage game for quite some time so we feel we've got a really good service just from the technology perspective as well. >> And the European piece, I presume a lot of that is, well of course, GDPR, the fines went into effect in May of 2018. There's a lot of discussion about okay, data can't leave a particular locality, it's especially onerous in Europe, but probably other places as well. So there's a, there's a data locality governance compliance angle here too, is there not? >> Yeah, absolutely, and for us if you take a specific industry like healthcare, you know, for example, so you have to have pretty clear line of sight for your data provenance so it allows us to provide the service in these locations for a healthcare customer, or a healthcare ISV, you know, SAS provider to be able to essentially point to where that data is, you know, and so for us it's gonna be an entrance into that vertical for hybrid Cloud use cases. >> Alright so, so again, we've got the AI-driven piece, the Cloud piece, I see as a service, which is the third piece, I see Cloud as one, and as a service is one-A, it's almost like a feature of Cloud. So let's unpack that a little bit. What are you announcing in as a service and what's your position there? >> Yeah, so our vision is to be able to provide, and as a service experience, for almost everything we have that we provide our customers. Whether it's an individual product, whether it's a solution, or actually like a segment, right? So in the space that I work in, in Big Data and secondary service, secondary storage, backup is a service, for example, right, it's something that customers want, right? They don't want to be able to manage that on their own by piece parts, architect the whole thing, so what we're able to do is provide your primary storage, your secondary storage, your backup ISV, so in this case we're gonna be providing backup as a service through GreenLake with Vim. And then we even can bring in your Cloud capacity, so for example, Azure Blob Storage which will be your tertiary storage, you know, from an archive perspective. So for us it really allows us to provide customers an experience that, you know, is more of an, it's an experienced, Cloud is a destination, we're providing a multi-Cloud, a Hybrid-Cloud experience not only from a technology perspective, but also from a purchasing flex up, flex down, flex out experience and we're gonna keep on doing that over and over for the next, you know, foreseeable future. >> So you've been doing GreenLake for awhile here-- >> Yeah, absolutely. >> So how's that going and what's new here? >> Yeah, so that's been going great. We have well over, I think at this point, 500 petabytes on our management under GreenLake and so the service is, it's interesting when you think about it, when we were designing this we thought, just like the public Cloud, the compute as a service would take off, but from our perspective I think one of the biggest pain points for customers is managing data, you know, storage and Big Data, so storage as a service has grown very rapidly. So these services are very popular and we'll keep on iterating on them to create maximum velocity. One of the other things that's interesting about some of these accounting rules that have taken place, is that customers seed to us the, the ability to do architecture, right, so we're essentially creating no Snowflakes for our customers and they get better outcomes from a business perspective so we help them with the architecture, we help them with planning an architecture of the actual equipment and then they get a very defined business outcome in SLA that they pay for as a service, right? So it's a win-win across the board, is really good. >> Okay, so no Snowflakes as in, not everything's custom-- >> Absolutely. >> And then that, so that lowers not only your cost, it lowers the customer's cost. So let's take an example like that, let's take backup as a service which is part of GreenLake. How does that work if I wanna engage with you on backup as a service? >> Yeah, so we have a team of folks in Pointnext that can engage like very far up in the front end, right, so they say, hey, listen, I know that I need to do a major re-architecture for my secondary storage, HPE, can you help me out? So we provide advisory services, we have well-known architectures that fit a set of well-known mission critical, business critical applications at a typical customer site so we can drive that all the way from the inception of that project to implementation. We can take more customized view, or a road-mapped approach to customers where they want to bite off a little bit at a time and use things like Flex Capacity, and then weave in a full GreenLake implementation so it's very flexible in terms of the way we can implement it. So we can go soup to nuts, or we can get down to a very small granular pieces of infrastructure. >> Just sticking on data protection for a second, I saw a stat the other day, it's a fairly well, you know, popular, often quoted stat, it was Gartner I think, is 50% of customers are gonna change their backup platform by like 2023 or something. And you think about, and by the way, I think that's a legitimate stat and when you talk to customers about why, well things are changing, the Cloud, Multicloud, things like GDPR, Ransomware, digital transformation, I wanna get more out of my data then just insurance, my backup then just insurance, I wanna do analytics. So there's all these other sort of evolving things. I presume your backup as a service is evolving with that? >> Absolutely. >> What are you seeing there? >> Yeah, we're definitely seeing that the secondary storage market is very dynamic in terms of the expectations from customers, are, you know, they're changing, and changing very rapidly. And so not only are providing things like GreenLake and backup as a service we're also seeking new partners in this space so one of the big announcements that we'll make at Discover is we are doing a pretty big amplification of our partnership in an OEM relationship with Cohesity, right, so a lot of customers are looking for a secondary platform from a consolidation standpoint, so being able to run a number of very different disparate workloads from a secondary storage perspective and make them, you know, work. So it's a great platform scale-out. It's gonna run on a number of our HPE platforms, right, so we're gonna be able to provide customers that whole solution from HPE partnering with Cohesity. So, you know, in general this secondary storage market's hot and we're making some bets in our ecosystem right now. >> You also have Big Data in your title so you're responsible for that portfolio. I know Apollo in the HPC world has been at a foothold there. There's a lot of synergies between high-performance computing and Big Data-- >> Absolutely. >> What's going on in the Big Data world? >> Yeah, so Big Data is one of our fastest growing segments within HPE. I'd say Big Data and Analytics and some of the things that are going on with AI, and commercial high-performance applications. So for us we're, we have a new platform that we're announcing, our Gen10 version of Apollo 4200, it's definitely the workhorse of our Apollo server line for applications like, Cloudera, Hortonworks, MapR, we see Apache Spark, Kafka, a number of these as well as some of these newer workloads around HPC, so TensorFlow, Caffe, H2O, and so that platform allows us with a really good compute memory and storage mix, from a footprint perspective, and it certainly scales into rack-level infrastructure. That part of the business for us is growing very quickly. I think a lot of customers are using these Big Data Analytics techniques to transform their business and, you know, as we go along and help them it certainly, it's been a really cool ride to see all this implemented at customer sites. >> You know with all this talk about sort of Big Data and Analytics, and Cloud, and AI, you sort of, you know, get lost, the infrastructure kinda gets lost, but you know, the plumbing still matters, right, and so underneath this. So we saw the flash trend, and that really had a major impact on certainly the storage business specifically, but generally, the overall marketplace, I mean, you really, it'd be hard to support a lot of these emerging workloads without flash and that stack continues to evolve, the pyramid if you will. So you've got flash memory now replacing much of the spinning disk space, you've got DRAM which obviously is the most expensive, highest performance, and there seems to be this layer emerging in the middle, this storage-class memory layer. What are you guys doing there? Is there anything new there? >> Yeah, so we've got a couple things cooking in that space. In general, like when you talk about the infrastructure it is important, right, and we're trying to help customers not only by providing really good product in scalable infrastructure, things like Apollo, you know our system's Nimble 3PAR. We're also trying to provide experience around that too. So, you know, combining things like InfoSight, InfoSight on storage, InfoSight on servers and Apollo for Big Data workloads is something that we're gonna be delivering in the future. The platforms really matter. So we're gonna be introducing NVME and storage class memory into our, what we feel is the industry-leading portfolio for our, for flash storage. So between Nimble and 3PAR we'll have, those platforms will be, and they're NVME ready and we'll be making some product announcements on the availability of that type of medium. So if you think about using it in a platform like 3PAR, right, industry leading from a performance perspective allows to get sub 200 millisecond performance for very mission-critical latency intolerant applications and it's a great architecture. It scales in parallel, active, active, active, right, so you can get quite a bit of performance from a very, a large 3PAR system and we're gonna be introducing NVME into that equation as a part of this announcement. >> So, we see this as critical, for years, in the storage business, you talk about how storage is growing, storage is growing, storage is growing, and we'd show the charts upper to the right, and, but it always like yeah, and somehow you gotta store it, you gotta manage it, you might have to move it, it's a real pain. The whole equation is changing now because of things like flash, things like GPU, storage class memory, NVME, now you're seeing, and of course all this ML and deep learning tech, and now you're seeing things that you're able to do with the data that you've never been able to do before-- >> Absolutely. >> And emerging use cases and so it's not just lots of data, it's completely new use cases and it's driving new demands for infrastructure isn't it? >> Absolutely, I mean, there's some macro economic tailwinds that we had this year, but HP had a phenomenal year this year and we're looking at some pretty good outlooks into next year as well. So, yeah, from our perspective the requirement for customers, for latency improvements, bandwidth improvements, and total addressable capacity improvements is, never stops, right? So it's always going on and it's the data pipeline is getting longer. The amount of services and experiences that you're tying on to, existing applications, keeps on augmenting, right? So for us there's always new capabilities, always new ways that we can improve our products. We use for things like InfoSight, and a lot of the predictive Analytics, we're using those techniques for ourselves to improve our customers experience with our products. So it's been, it's a very, you know, virtual cycle in the industry right now. >> Well Patrick, thanks for coming in to theCube and unpacking these announcements at Discover Madrid. You're doing a great job sort of executing on the storage plan. Every time I see you there's new announcements, new innovations, you guys are hittin' all your marks, so congratulations on that. >> HPE, intelligent storage, intelligent data management, so if you guys have data needs you know where to come to. >> Alright, thanks again Patrick. >> Great, thank you so much. >> Talk to you soon. Alright, thanks for watching everybody. This is Dave Vellante from theCUBE. We'll see ya next time. (upbeat music)

>> From the SiliconANGLE media office in Boston, Massachusetts, it's theCUBE! Now, here's your host, Dave Vellante. >> Hi, everybody, welcome to this special CUBE Conversation. You know, big data workloads have evolved, and the infrastructure that runs big data workloads is also evolving. Big data, AI, other emerging workloads need infrastructure that can keep up. Welcome to this special CUBE Conversation with Patrick Osborne, who's the vice president and GM of big data and secondary storage at Hewlett Packard Enterprise, @patrick_osborne. Great to see you again, thanks for coming on. >> Great, love to be back here. >> As I said up front, big data's changing. It's evolving, and the infrastructure has to also evolve. What are you seeing, Patrick, and what's HPE seeing in terms of the market forces right now driving big data and analytics? >> Well, some of the things that we see in the data center, there is a continuous move to move from bare metal to virtualized. Everyone's on that train. To containerization of existing apps, your apps of record, business, mission-critical apps. But really, what a lot of folks are doing right now is adding additional services to those applications, those data sets, so, new ways to interact, new apps. A lot of those are being developed with a lot of techniques that revolve around big data and analytics. We're definitely seeing the pressure to modernize what you have on-prem today, but you know, you can't sit there and be static. You gotta provide new services around what you're doing for your customers. A lot of those are coming in the form of this Mode 2 type of application development. >> One of the things that we're seeing, everybody talks about digital transformation. It's the hot buzzword of the day. To us, digital means data first. Presumably, you're seeing that. Are organizations organizing around their data, and what does that mean for infrastructure? >> Yeah, absolutely. We see a lot of folks employing not only technology to do that. They're doing organizational techniques, so, peak teams. You know, bringing together a lot of different functions. Also, too, organizing around the data has become very different right now, that you've got data out on the edge, right? It's coming into the core. A lot of folks are moving some of their edge to the cloud, or even their core to the cloud. You gotta make a lot of decisions and be able to organize around a pretty complex set of places, physical and virtual, where your data's gonna lie. >> There's a lot of talk, too, about the data pipeline. The data pipeline used to be, you had an enterprise data warehouse, and the pipeline was, you'd go through a few people that would build some cubes and then they'd hand off a bunch of reports. The data pipeline, it's getting much more complex. You've got the edge coming in, you've got, you know, core. You've got the cloud, which can be on-prem or public cloud. Talk about the evolution of the data pipeline and what that means for infrastructure and big data workloads. >> For a lot of our customers, and we've got a pretty interesting business here at HPE. We do a lot with the Intelligent Edge, so, our Edgeline servers in Aruba, where a a lot of the data is sitting outside of the traditional data center. Then we have what's going on in the core, which, for a lot of customers, they are moving from either traditional EDW, right, or even Hadoop 1.0 if they started that transformation five to seven years ago, to, a lot of things are happening now in real time, or a combination thereof. The data types are pretty dynamic. Some of that is always getting processed out on the edge. Results are getting sent back to the core. We're also seeing a lot of folks move to real-time data analytics, or some people call it fast data. That sits in your core data center, so utilizing things like Kafka and Spark. A lot of the techniques for persistent storage are brand new. What it boils down to is, it's an opportunity, but it's also very complex for our customers. >> What about some of the technical trends behind what's going on with big data? I mean, you've got sprawl, with both data sprawl, you've got workload sprawl. You got developers that are dealing with a lot of complex tooling. What are you guys seeing there, in terms of the big mega-trends? >> We have, as you know, HPE has quite a few customers in the mid-range in enterprise segments. We have some customers that are very tech-forward. A lot of those customers are moving from this, you know, Hadoop 1.0, Hadoop 2.0 system to a set of essentially mixed workloads that are very multi-tenant. We see customers that have, essentially, a mix of batch-oriented workloads. Now they're introducing these streaming type of workloads to folks who are bringing in things like TensorFlow and GPGPUs, and they're trying to apply some of the techniques of AI and ML into those clusters. What we're seeing right now is that that is causing a lot of complexity, not only in the way you do your apps, but the number of applications and the number of tenants who use that data. It's getting used all day long for various different, so now what we're seeing is it's grown up. It started as an opportunity, a science project, the POC. Now it's business-critical. Becoming, now, it's very mission-critical for a lot of the services that drives. >> Am I correct that those diverse workloads used to require a bespoke set of infrastructure that was very siloed? I'm inferring that technology today will allow you to bring those workloads together on a single platform. Is that correct? >> A couple of things that we offer, and we've been helping customers to get off the complexity train, but provide them flexibility and elasticity is, a lot of the workloads that we did in the past were either very vertically-focused and integrated. One app server, networking, storage, to, you know, the beginning of the analytics phase was really around symmetrical clusters and scaling them out. Now we've got a very rich and diverse set of components and infrastructure that can essentially allow a customer to make a data lake that's very scalable. Compute, storage-oriented nodes, GPU-oriented nodes, so it's very flexible and helps us, helps the customers take complexity out of their environment. >> In thinking about, when you talk to customers, what are they struggling with, specifically as it relates to infrastructure? Again, we talked about tooling. I mean, Hadoop is well-known for the complexity of the tooling. But specifically from an infrastructure standpoint, what are the big complaints that you hear? >> A couple things that we hear is that my budget's flat for the next year or couple years, right? We talked earlier in the conversation about, I have to modernize, virtualize, containerizing my existing apps, that means I have to introduce new services as well with a very different type of DevOps, you know, mode of operations. That's all with the existing staff, right? That's the number one issue that we hear from the customers. Anything that we can do to help increase the velocity of deployment through automation. We hear now, frankly, the battle is for whether I'm gonna run these type of workloads on-prem versus off-prem. We have a set of technology as well as services, enabling services with Pointnext. You remember the acquisition we made around cloud technology partners to right-place where those workloads are gonna go and become like a broker in that conversation and assist customers to make that transition and then, ultimately, give them an elastic platform that's gonna scale for the diverse set of workloads that's well-known, sized, easy to deploy. >> As you get all this data, and the data's, you know, Hadoop, it sorta blew up the data model. Said, "Okay, we'll leave the data where it is, "we'll bring the compute there." You had a lot of skunk works projects growing. What about governance, security, compliance? As you have data sprawl, how are customers handling that challenge? Is it a challenge? >> Yeah, it certainly is a challenge. I mean, we've gone through it just recently with, you know, GDPR is implemented. You gotta think about how that's gonna fit into your workflow, and certainly security. The big thing that we see, certainly, is around if the data's residing outside of your traditional data center, that's a big issue. For us, when we have Edgeline servers, certainly a lot of things are coming in over wireless, there's a big buildout in advent of 5G coming out. That certainly is an area that customers are very concerned about in terms of who has their data, who has access to it, how can you tag it, how can you make sure it's secure. That's a big part of what we're trying to provide here at HPE. >> What specifically is HPE doing to address these problems? Products, services, partnerships, maybe you could talk about that a little bit. Maybe even start with, you know, what's your philosophy on infrastructure for big data and AI workloads? >> I mean, for us, we've over the last two years have really concentrated on essentially two areas. We have the Intelligent Edge, which is, certainly, it's been enabled by fantastic growth with our Aruba products in the networks in space and our Edgeline systems, so, being able to take that type of compute and get it as far out to the edge as possible. The other piece of it is around making hybrid IT simple, right? In that area, we wanna provide a very flexible, yet easy-to-deploy set of infrastructure for big data and AI workloads. We have this concept of the Elastic Platform for Analytics. It helps customers deploy that for a whole myriad of requirements. Very compute-oriented, storage-oriented, GPUs, cold and warm data lakes, for that matter. And the third area, what we've really focused on is the ecosystem that we bring to our customers as a portfolio company is evolving rapidly. As you know, in this big data and analytics workload space, the software development portion of it is super dynamic. If we can bring a vetted, well-known ecosystem to our customers as part of a solution with advisory services, that's definitely one of the key pieces that our customers love to come to HP for. >> What about partnerships around things like containers and simplifying the developer experience? >> I mean, we've been pretty public about some of our efforts in this area around OneSphere, and some of these, the models around, certainly, advisory services in this area with some recent acquisitions. For us, it's all about automation, and then we wanna be able to provide that experience to the customers, whether they want to develop those apps and deploy on-prem. You know, we love that. I think you guys tag it as true private cloud. But we know that the reality is, most people are embracing very quickly a hybrid cloud model. Given the ability to take those apps, develop them, put them on-prem, run them off-prem is pretty key for OneSphere. >> I remember Antonio Neri, when you guys announced Apollo, and you had the astronaut there. Antonio was just a lowly GM and VP at the time, and now he's, of course, CEO. Who knows what's in the future? But Apollo, generally at the time, it was like, okay, this is a high-performance computing system. We've talked about those worlds, HPC and big data coming together. Where does a system like Apollo fit in this world of big data workloads? >> Yeah, so we have a very wide product line for Apollo that helps, you know, some of them are very tailored to specific workloads. If you take a look at the way that people are deploying these infrastructures now, multi-tenant with many different workloads. We allow for some compute-focused systems, like the Apollo 2000. We have very balanced systems, the Apollo 4200, that allow a very good mix of CPU, memory, and now customers are certainly moving to flash and storage-class memory for these type of workloads. And then, Apollo 6500 were some of the newer systems that we have. Big memory footprint, NVIDIA GPUs allowing you to do very high calculations rates for AI and ML workloads. We take that and we aggregate that together. We've made some recent acquisitions, like Plexxi, for example. A big part of this is around simplification of the networking experience. You can probably see into the future of automation of the networking level, automation of the compute and storage level, and then having a very large and scalable data lake for customers' data repositories. Object, file, HTFS, some pretty interesting trends in that space. >> Yeah, I'm actually really super excited about the Plexxi acquisition. I think it's because flash, it used to be the bottleneck was the spinning disk, flash pushes the bottleneck largely to the network. Plexxi gonna allow you guys to scale, and I think actually leapfrog some of the other hyperconverged players that are out there. So, super excited to see what you guys do with that acquisition. It sounds like your focus is on optimizing the design for I/O. I'm sure flash fits in there as well. >> And that's a huge accelerator for, even when you take a look at our storage business, right? So, 3PAR, Nimble, All-Flash, certainly moving to NVMe and storage-class memory for acceleration of other types of big data databases. Even though we're talking about Hadoop today, right now, certainly SAP HANA, scale-out databases, Oracle, SQL, all these things play a part in the customer's infrastructure. >> Okay, so you were talking before about, a little bit about GPUs. What is this HPE Elastic Platform for big data analytics? What's that all about? >> I mean, we have a lot of the sizing and scalability falls on the shoulders of our customers in this space, especially in some of these new areas. What we've done is, we have, it's a product/a concept, and what we do is we have this, it's called the Elastic Platform for Analytics. It allows, with all those different components that I rattled off, all great systems in of their own, but when it comes to very complex multi-tenant workloads, what we do is try to take the mystery out of that for our customers, to be able to deploy that cookie-cutter module. We're even gonna get to a place pretty soon where we're able to offer that as a consumption-based service so you don't have to choose for an elastic type of acquisition experience between on-prem and off-prem. We're gonna provide that as well. It's not only a set of products. It's reference architectures. We do a lot of sizing with our partners. The Hortonworks, CloudEra's, MapR's, and a lot of the things that are out in the open source world. It's pretty good. >> We've been covering big data, as you know, for a long, long time. The early days of big data was like, "Oh, this is great, "we're just gonna put white boxes out there "and off the shelf storage!" Well, that changed as big data got, workloads became more enterprise, mainstream, they needed to be enterprise-ready. But my question to you is, okay, I hear you. You got products, you got services, you got perspectives, a philosophy. Obviously, you wanna sell some stuff. What has HPE done internally with regard to big data? How have you transformed your own business? >> For us, we wanna provide a really rich experience, not just products. To do that, you need to provide a set of services and automation, and what we've done is, with products and solutions like InfoSight, we've been able to, we call it AI for the Data Center, or certainly, the tagline of predictive analytics is something that Nimble's brought to the table for a long time. To provide that level of services, InfoSight, predictive analytics, AI for the Data Center, we're running our own big data infrastructure. It started a number of years ago even on our 3PAR platforms and other products, where we had scale-up databases. We moved and transitioned to batch-oriented Hadoop. Now we're fully embedded with real-time streaming analytics that come in every day, all day long, from our customers and telemetry. We're using AI and ML techniques to not only improve on what we've done that's certainly automating for the support experience, and making it easy to manage the platforms, but now introducing things like learning, automation engines, the recommendation engines for various things for our customers to take, essentially, the hands-on approach of managing the products and automate it and put into the products. So, for us, we've gone through a multi-phase, multi-year transition that's brought in things like Kafka and Spark and Elasticsearch. We're using all these techniques in our system to provide new services for our customers as well. >> Okay, great. You're practitioners, you got some street cred. >> Absolutely. >> Can I come back on InfoSight for a minute? It came through an acquisition of Nimble. It seems to us that you're a little bit ahead, and maybe you say a lot a bit ahead of the competition with regard to that capability. How do you see it? Where do you see InfoSight being applied across the portfolio, and how much of a lead do you think you have on competitors? >> I'm paranoid, so I don't think we ever have a good enough lead, right? You always gotta stay grinding on that front. But we think we have a really good product. You know, it speaks for itself. A lot of the customers love it. We've applied it to 3PAR, for example, so we came out with some, we have VMVision for a 3PAR that's based on InfoSight. We've got some things in the works for other product lines that are imminent pretty soon. You can think about what we've done for Nimble and 3PAR, we can apply similar type of logic to Elastic Platform for Analytics, like running at that type of cluster scale to automate a number of items that are pretty pedantic for the customers to manage. There's a lot of work going on within HPE to scale that as a service that we provide with most of our products. >> Okay, so where can I get more information on your big data offerings and what you guys are doing in that space? >> Yeah, so, we have, you can always go to hp.com/bigdata. We've got some really great information out there. We're in our run-up to our big end user event that we do every June in Las Vegas. It's HPE Discover. We have about 15,000 of our customers and trusted partners there, and we'll be doing a number of talks. I'm doing some work there with a British telecom. We'll give some great talks. Those'll be available online virtually, so you'll hear about not only what we're doing with our own InfoSight and big data services, but how other customers like BTE and 21st Century Fox and other folks are applying some of these techniques and making a big difference for their business as well. >> That's June 19th to the 21st. It's at the Sands Convention Center in between the Palazzo and the Venetian, so it's a good conference. Definitely check that out live if you can, or if not, you can all watch online. Excellent, Patrick, thanks so much for coming on and sharing with us this big data evolution. We'll be watching. >> Yeah, absolutely. >> And thank you for watcihing, everybody. We'll see you next time. This is Dave Vellante for theCUBE. (fast techno music)

>> (dramatic orchestral music) >> Announcer: Live from San Francisco. It's the Cube. Covering Red Hat Summit 2018. Brought to you by Red Hat. >> Hello welcome back everyone. Day three of wall-to-wall coverage here at Red Hat Summit 2018 live in San Francisco, California, here at Moscone West. I'm John Furrier, your co-host of The Cube with John Troyer, analyst, co-host this week. He's the co-founder of TechReckoning, and advisory and community development firm. Our next guest is our (mumble) of the senior Vice President General Manager of Hewlett Packard Enterprises Pointnext HPE. Great to see you. >> Great to see you as well. Thank you. >> So there's not secret HPE been partnering with companies for many generations. And Red Hat is one of the big strategic partners. Lot of services opportunity, a lot of transformation happening, and the biggest thing is that true Private Cloud and Hybrid Cloud, and Public Clouds all happening an IOT Edge is kind of seeing pretty clearly what's happening. On-Premise isn't going away. >> No! >> It'll look like Cloud is going to run like a Cloud. >> Yeah. >> Has to work with the Cloud or Clouds plural, and then you got the IOT Edge out there-- >> That's right. >> All kind of coming together with software Kubernetes containers all kind of being glue layers in here. So, you know, must be good for you guys okay, customers can now see what you guys have been promoting. So what is HP doing with their ad? How's that tie into that-- >> Sure, sure >> You know, transformation with the cloud? >> You said it very well John. In fact when we talked to our customers weather they realized it or not, it's the Hybrid world, and the environments are hybrid, and like you said, probably private (mumble) are not going anywhere. In fact we did the CTPF acquisition, Red Pexia acquisition, and this is really all to help clients on the Cloud journey. Doesn't really matter to us whether the workload ends up in AWS, Google, Azure, on Prime or dedicated infrastructure. So, that's actually been a huge plus for us to really have a seat at the table, to have a discussion on the customers workload strategy. Now a partner like Red Hat, who have been together working together for probably 18 years now, and it's been a long steady partnership. Who they're number one OAM partner but also the point you made I think from a services standpoint that's just a huge opportunity you know, customers tell us anyone can do infrastructure service or they're looking for platforming service. So in jointly with our consumption capabilities, and Red Hat Open Shift. Now who giving them true Container Product Service. >> Containerization, how we were talking yesterday in our wrap-up. You can bring in the new without killing the old and but it's really fundamental because people want Cloud scale, they want the horizontal scalable application, devops and programing infrastructures code. But they can't just throw out their legacy stuff. Containers which allows them to nurture those applications and workload, and let it take it's natural course. This is actually good for services cause you can take-- there's a solution there. >> That's right! There's absolutely. In fact customers tell us when they looking for the platform, it's not just to help them on their new build. They're looking for help also to run the existing environment and most of the times it's not practical to re-factor, re-architect every single of the Legacy applications, and cause some of them applications, as you know, they were done to leverage the performance optimization on the underlying infrastructure piece of it, and so one of the things we're doing join to the Red Hat is leverage Containerization to provide the portability for the applications. To move between the different environments and whether it's Private Cloud, Public Cloud, but the key thing is portability, and mobility and that's sweet spot for containerization. >> Give some use cases of customers. Take us through a day-in-the-life of maybe a couple different examples where you guys are engaging with Red Hat where you coming in the customer is like, "Okay, here's my situation". What are some of the trends and patterns that you see with customers? What specifically are you, is it workload, moving it to the mobile clouds? Is it more re-platforming On-Premise. >> Yeah! >> What are some of the things that you guys are doing? >> I would say that the bulk of our engagement, and that's one thing that we feel really good about joining Red Hat. We have really shifted our engagement model to be much more outcome driven. So the discussions with the client is always start off with like a workshop, and within that workshop we're actually understanding where the customer is really trying to go, what business outcomes they're trying to achieve? Before we start we going to push a specific technology or stack with specific solution set, and by having that alignment, in in fact, we talk about that IT means to be embedded with the business. Not alignment, embedded with the business, and because the role of IT has changed. So when we talk about workload, right, it's about no longer, and I talked about this earlier today, you no longer running workload just within the Forward Data Center, and the traditional view of that IT owns and operates the Forward Data Center, that's just dead. So, it's really more about managing the supply chain. We talk about the overall workload strategy. Which workloads make the most sense to go on Public Cloud, Private Cloud, and then the discussion also centers around their application portfolio and really understanding which applications truly need to be Cloud Native. Which ones really need to be left in shift, and this whole portability concept comes into play and that's one thing joining with Red Hat because Red Hat is really good joining with us on driving this kind of innovation workshops. Then you heard this earlier today as well, and that's just the fun of if. When no longer you talking about PowerPoint presentation, this and that. It's getting in a room, getting on a White Board and talking about what kind of journey really make sense for that party-- >> That's been really notable here, this week at this conference, right. There a lot of tech, a lot of software talked about, but also on the keynote a lot of people talking about culture, transformation, getting beyond your process, and the places you get stuck as IT professionals. So that's a great way to approach it. Right, nobody starts with a list of skews-- >> No! And absolutely, the other point is that one of the things that always gets missed is the focus on the management of change, and that's one of the key pieces we emphasize that not just the business process, but the culture, the people. How you going to bring them along the change journey. So, we actually put lot of emphasis on the whole area around management of change. We actually have a practice that this is one of the keys areas they focus on. So, you're absolutely right. Key focus area. >> I did want to flip to the products for a second. There was an announcement here now and talk a little bit about HP Synergy, Composable Infrastructure, with Open Shift. Maybe if you have a headline on exactly how you guys describe Synergy and then maybe how we working with Open Shift. >> So the HP Synergy the best way I can describe it is it is truly industry first composable infrastructure, and it gives you the ability to pull fluid resources and with software intelligence built in, and Unified API. It really gives you the ability to pull the resource that you need for specific applications. In fact, I use the analogy, it's kind of like building Legos and you can pull together based on what you going to do at a given moment, and then you decompose it and build something new. So it's all done via a software and truly gives you that flexibility that customers have been seeking. So it's just to me its got a great market traction across the globe and we'll just see continued momentum when joining with the Red Hat. What we've done is now with the announcing new solutions like the one you referenced to, to support ansible automation of the Red Hat Open Shift on the Synergy platform from the three part and the Nimble product lines and it just helps scale the Open Shift and while making container operation simple, scalable and more importantly repeatable. >> I want to make sure that I get this out there, because you guys were early with composable. Dave Valata and I had a debate on this at one of your HP Discovers where, I was really lov'n the composable message. Although it was kind of for a different massage but at that time Devos was really picking up steam. But, it's actually happening now three years later the level of granularity to services level as microservices as it comes the architecture of the future. The services model is literally, "What do you want?" it's not, "Here's the solution", it's like< "What do you need?" so, you're buying off the menu, if you will, so that changes the game. So congratulations on having that composable method first. I got to ask you, the impact to the engagements. So you now have menu of services. Does that change how you guys go to market? You mention that you do kick of meeting, you do the needs assessment, so I get that. Check! good approach. But the customers now, they just want to make sure that it's custom for them. How does that change your engagement? >> At the CXO level, the discussion, no mater which way you start the discussion it tends to kind of follow into a few buckets. Rather it's about generating additional revenue, going to market quicker, or it's about safe to invest, reducing their operating expenses, or it's about securing their information network. One of the thing we find is especially if you take a look at even the containers, applications deploying it. It's one thing to deploy in the corporate environment but if you're trying to scale that with an enterprise. If the enterprises look for added features for their security, whether it's persistent storage and again the focus always turns into what can you do to help drive the total cost of ownership down. I think with Red Hat this is one thing that works great with Open standards. The focus is really much more around not just the simplicity, reducing costs, it's also about improving performance. Rather it's the physical virtual environment. So, you're right, the menu of services. Whether it's you talking about IOT Use Scape and I think you going to see more and more of that with the user experience, the focus that we talked about. Context of our apps. I use the example of going to the airport, getting into whatever transportation you using these days, but the point from point A to point B, you're no longer fumbling through cash or credit cards. It's a very easy experience, much more personalized much more usable and a lot of what some of the hospitality franchises are doing, whether you look at Starwood Properties, Marriott. Now you use a mobile device to access your room, and as soon as you get into some of the hotel property, as soon as you access their Wifi coverage all of a sudden you can actually, the hotel property picks you up. They can provide you with the navigation, how to get to your room and depending on your profile, and whether you opted in or opted out, they will push and their partners will push some specific services to you. So, how you are able to create that kind of experience and drive additional revenue and all that is possible to the point he just make, it's truly a flourishing eco-system of micro services and apps driven by the-- >> I think that business now seeing that which is great about that having a clear line of site that these new apps and new experiences is going to drive top line revenue for your customers. I got to ask you about the services now. With more services comes more delivery, right? So, options, ecosystems, you guys have a pretty big ecosystem right as a lot of other providers. You guys always worked will with multiple companies. How are you guys engaging with Pointnext with now new sets of service providers and your network. You got Cloud Service and you have someone actually maybe could be an intergrater, could be a software developer. How do you deal with this new stake holder in your equation? >> After all the spin mergers have been completed now and I think after DXC1 it really open up the door to get a lot of the system (mumble) back on the table because they don't really view us as competitor anymore. Because we no longer have a large the EDS acquisition that we had now the DXE. So whether you look at Accenture or whether you look at Deloitte and the other (mumble) we're actually partnering with them very well both in joint submission creation but also when we talk about true additions transformation for our client a lot of expertise they bring to us is very complimentary to what we have. So one of the thing we do very well is really around the technology advisor services. (mumble) bring more of the business advisory services as well as the specific vertical depth around the specific vertical whether it's emphasized retail. So when somebody talking about retail of the future or something like that. You marry the two together and you have a strong value proposition. I think the area that we have to put a lot more emphasis upon is more around program management, and because now you actually are trying to show that one outcome for the client, so it's very important whether you working with the ISB or whet ever you working with DSI or whether you working with the other intergraters, and your own resources how you going to bring that pool together around specific tracks and deliver a one common objective for the clients? The Program Manager plays a huge role in this process. >> For the folks watching. What should they know about HP Pointnext that they many or may not know about or should know about that that highlights what you guys are doing. Can you simplify, what is the value proposition that Pointnext is bring to customers? >> As the brand itself states, the Pointnext, it's really about working with the clients finding what's next in their journey. One of the thing I would say and a lot of people get surprised by this, even with after all the spin merge. We are twenty-five thousand people plus strong and we have a lot of great and deep appreciation when it comes to some of these solution and one thing we do very well is partner. Whether it's Red Hat and other SI and bring some unique innovative solution to the market and one of the thing Jim talked about here is all about accelerating user driven innovation, and when you take a look at some of the use cases we're rolling out and I talked about the analytics and the one AI project and how we're helping manufacturing clients or other use cases to truly analyze patterns and predict failures and increase productivity. These discussions customers truly trust us. With the (mumble) and CTP acquisitions we no longer just having On-Premise discussions. We have a strong public hard knowledge. It doesn't matter whether you cloud journey involves AWS, Google, Azure and what not. We are able to actually provide a very objective road map for the workload strategy and the transmission journey. >> The users in the communities as Jim pointed out in the meeting yesterday. The communities in Open Source are now also your customers. >> Right. >> So your customers are also participating in these projects upstream. Are you guys doing an Open Source work? What Pointnext doing? Are you guys relying on that community? Is there a crossover between your customers and those users in the Open Source community? >> Yeah, we always had a very strong (mumble) with the Open Source community. We contributed a lot to the Open Source communities and if you take a look at now as we working with the number of this next generation of partners, whether it's darker, scale it and Red Hat and others it's truly opened up the boundaries as to what can we push to drive new kind of solution there. I love what some of the speakers said yesterday. You remember the example from the Boston Children's Hospital where they talked about they didn't want to deal with the complexity, they'd rather focus on what they do best and so one of the thing we're focused on in the Open Source Continuity is the driving more standardization and automation. So you can run applications as scale. You can run analytics as scale. I think those are somethings we can bring to the table. >> Great! You know the thing about what's going on now with these abstraction layers is an opportunity to create new services and accelerate the services, and congratulations. Great to have you on the program. Thanks for sharing the update. >> Absolutely! >> Congratulation on your deep partnership with Red Hat. Go to see HP Pointnext doing well. Thanks for coming on. >> Thank you so much. >> Live coverage here in San Francisco California. Red Hat Summit 2018 will continue. I'm John Furrier John Troyer. Stay with us more coverage after this short break. >> (electronic music) >> Often times a communities all ready know about facilities that are problematic, because they smell it, they see it but

>> Announcer: Live from Copenhagen, Denmark, it's theCUBE! Covering KubeCon + CloudNativeCon Europe 2018. Brought to you by the Cloud Native Computing Foundation, and it's ecosystem partners. >> Hello there and welcome back to theCUBE's exclusive coverage of KubeCon 2018, the Cloud Native Compute Foundation. CNCF, I'm John Furrier with theCUBE. My cohost Lauren Cooney is here with me this week. Our next two guests are from HPE Developer program. Paul Holland, Director of Open Source Program Office. And Said Syed, who is the Head of HP Developer Experience. CUBE alumni. Welcome back. Good to see you. >> Thanks for having us. >> Thanks for comin' on. >> Thank you. >> First of all, new logo. I love that, I want to get into it. HPE Developer program. We've had many conversations in the past about the relationship with Docker. The work you guys are doing inside the enterprises with cloud, multi-cloud and hybrid cloud. Why are you guys here? What's the story? What's the update from HPE? >> In December we launched this new program called the HP Community Developer Program. And that's really focused on reaching out to the developers that are out there. Whether these are DevOps developers, Cloud Native application developers, ITOps developers, who are looking to do integration with HPE infrastructure as well as our software defined platforms. It's basically evangelizing all of the good work that HP's doing in the open source program and other areas. Do you want to add something, Paul? >> Yeah, I think part of it is the recognition that HPE is a software company. After all of the separations, the divestiture with HPI and that micro-focus. We're left with really still a lot of developer power. It's the idea that as we work with developers internally and externally, we need to formalize that developer program. Both inside of open source and the general developer. Go through our API's and some of that coordination, to really make the developer work. >> I mean we're talking software defined. Everything now, you guys have been part of that. To give you guys some props, we've interviewed in the past four or five years, you guys were doing, talking micro services early on. >> Syed: That's right. >> Again the enterprise has software defined systems. >> You guys are a big part of that. So I got to ask you, the perfect storm is here. I mean Kubernetes, which is on the scene, is now, at least in my opinion, the defacto standard for interoperability around multi-cloud. This is the perfect storm for a company as big as HP with all the customers. So what is... I mean you guys must be sitting there going, perfect timing! What does it mean for you guys, Kubernetes? This is going to give you certainly a tail wind for deployments, and customer value creation. What's it mean internally for HPE? >> Well I think Kubernetes is at the heart, as you mentioned, of the open source ecosystem. It's about all of those Lego blocks now finally coming together with micro-services. And being able to put 'em together for an enterprise class workload. And given our history and expertise there I think you're right. It's a great opportunity to make sure that it works for the enterprise developer, for general developers. And how everything comes together within it, within a corporate world of development. >> Are you guys doubling down? >> Syed: Absolutely. >> What's the story internally? Is it got the charter from the top? >> That's right, yeah, we're definitely doubling down. As you mentioned, we started early on with micro services, with our partnership at Docker. We have a great relationship with Mesosphere. And we're full on with Kubernetes. You know we have a product that we're actually demoing here on the show floor, called HPE OneSphere. We launched the product in December of last year. And one of the things it actually does, it enables Kubernetes' cluster management on-prem and off-prem. For example in AWS. Deployment, management, all of those things. We are full on. We also have open source projects in the Kubernetes landscape. It's called Project Dory. That enables persistent storage. It's actually contributed by our Nimble big business unit. We're very focused on enabling our developers. Things that enable them is things like, how can I automatically deploy applications? And so on. Using Kubernetes cluster or Kubernetes environment. Working with Paul and others that's exactly what we're focused on. >> What are some of the user cases that you guys are seeing? As you mentioned some of those deployments. Is it really existing integration within HP Solutions? Like OneSphere? And OneSphere's obviously going to be a nice paint a glass and look at the platform of what the cloud offers. Is it Edge? Is it IoT? I mean what are some of the user cases? >> I think it's all of the above. I think what we're seeing is legacy enterprises having all of these legacy applications that they need to migrate this new world. At the same time they're struggling with, how do then I make hybrid? How do I then go to the Edge? And so across the board, I think that's the power of going back to your original question about HPE. Is we've seen all of that in the enterprise. And can we put those proprietary componentry into the products? Like a OneSphere on top of open source components. The reason we're here at Kubernetes, as an example, is to really highlight to developers that if you really want to bring things together. We can help you do that. Whether it be legacy applications, new application, greenfield applications. All within this again Lego block type environment, within Kubernetes and these other open source platforms. >> I mean you guys also again on the composable infrastructure kind of story. It's kind of here, right? >> That's right. Again we started down this journey three, four years ago with Docker. And several others. We built this unified ecosystem. A composable ecosystem. And in the ecosystem I think there's now like 40 some partners. But that's growing. If you look at it from a layered cake point of view. The infrastructure is here. That problem has been solved for a long time. You have infrastructure management. With one view, with our composable API's. Working with components like Docker, and Mesosphere, and Redfish, and other open source products and services, on top of that with OneSphere as the multi-cloud/hybrid cloud management platform, again using the power of our API's. And then integrating north bound with these hybrid multi-cloud management environments, as well as south bound with infrastructure management. Now you have the overall story. We're really exploiting the power of API's. And enabling our developers internally, as well as developers outside of HPE, To come together and start to think about this new idea. Is there a solution for that? Absolutely, there's an app for it. And then the way you build that app is build that API integration. >> You talked about an app store that you guys are working on. It has about 40 different partners in it. What about users of the solutions that are in there? Are you seeing an uptick in that? And what are you seeing in terms of that and what are they using? >> Yeah so I'll give you a quick example. We launched the developer community program in December. We launched the portal in December. And in the past two and a half months, we have seen a significant uptick and actually just people comin' in and hanging out on the portal. I think we are up to about 30,000 unique, unique views of our page. Most people are spending three to four minutes, which is a lot in today's terms. Someone who is going there, reading our content. And then on top of that actually consumer-ship of our projects. Grommet for example is one of our open source projects that HP funds. It's a UX front end. I think it has more than 10,000 people that are following it, and using it. Companies like Netflix, for example, use Grommet as a UX. Most of our SDCG is off our defined applications are now using Grommet. So OneSphere, One View. That's our de facto standard. But it's open source, anyone can use it. >> Are you finding, HP is traditionally been kind of a company that does a lot of things internally. Are you guys opening up for the first time? With allowing your developers to build things that will be put into open source? Can you talk a little bit about that? >> The power of HP is we've had a rich collaboration history for a long, long time. And I think you alluded to it before. From an enterprise perspective, how can we make that easy? Not only for our own internal developers. And maybe this is where this question comes from from an internal perspective. Even ten, 15 years ago with Martin Fink, at the helm of the open source group. And then ultimately as the CTO. And things have shifted through the separations. How do you leverage that power of openness, collaboration, that's in their DNA? And really empowering them to share. How do we take concepts like inner sourcing, which is the open sourcing of activities inside a company, And really start develop those habits and capabilities. Whether or not it's external is just a flip of the switch. But developers know how to contribute. They're also learning best of breed skills. And developing their own career over time. >> Cooney: That is great to hear. >> And enabling that for other enterprises as well. Which is really where a lot of our customers come to us and say, hey you're an enterprise with lots and lots of developers. How do I get that same power with mine? And you kind of walk them through the journey. >> It's interesting, I'd love to get your thoughts on this. I think you guys are doing... First of all I love the new logo. I think it's really important everyone knows you guys have a very active and open source community. And have been on this. This is not a new thing, revelation within HP. But Intel has the same challenge. They're tryna move away from that Intel Inside. You guys are known to a lot of people as a hardware company. You got HP.com is now the printer and the peripheral side. But it's a cloud game. You're still selling servers but people are still buying servers. The cloud providers need servers. They need it. But the software is the key, the software defined infrastructure is now that glue layer. Service meshes are hot. You're seeing SDO's got massive traction. Everything's pointing to this new level of services at scale. >> That's right. >> I want to get your thoughts on the HP story there. Can you take a minute to explain what you guys are doing with that vision? Because Cloud Native isn't just about the cloud. There's a lot of on-prem activity that's moving to a cloud operating model. So it's not a full public cloud. What's your story? >> If you look at the overall strategy. We make hybrid IT simple, recognizing that it's all those different flavors. We have to enable the software capabilities because the world is software enabled. You have all those componentries working together seamlessly and automated. And then we have the services groups to make it happen. With the Pointnext, and the acquisitions of cloud technology partners in the new areas. We have a wide variety of a portfolio of services that are now enabled. And experts to actually go help customers do it. And so we have the capability legacy. We also have the capability of the new generation of IT. And everywhere in between. And then you talk about the Edge. And so with our acquisition Aruba, which it seems like a long time ago. It's just a few years. They've been an integral part of taking that from a data center all the way to the edge and in between. I think we've got those multiple layers of hybrid IT. We have the software enabled activities, which definitely includes open source. Because you can't be software enabled without software and open source. And then from a service perspective, the wealth, depth of bench, in terms of... >> And OneSphere's the key product that, for you guys, that connects all this. Is that kind of where the momentum is? >> Holland: It's one of them. >> One of them, okay. >> And then if you look at some of the acquisitions we have made. CTP, for example, or Cloud Cruiser, for example. These are all helping us build our portfolio of rich services that enable customers to go from a pure on-prem, pure hardware focus company. To now a new age Cloud Native, or hybrid cloud sort of company, where, we have the experience. Now, we have the experience with all of these different acquisitions like CTP, to enable them to have a full hybrid cloud of micro plus macro services kind of migration capabilities. >> What are you guys offering developers? Not that I'm going to ask you for the pitch. Cause everyone, the developers are getting a lot of pitches, if you will. People say I got to own the developer. They don't want to be owned. They want to be collaborative. But they're closer to the front lines than ever, these developers. And they're really looking at business problems. It's not just, here's the specs go code it. They're on the front lines. Right at the point of engagement for the business logic, and the business models of a lot of these applications. What do you guys bring to the table for the developers? Is it marketplace? Is it distribution? Is it opportunity? What is the value proposition that you guys are talking to developers about, specifically? >> I think it's all three. We really start with internal, right? We are aligning our internal developers to really consume our own champagne. Drink your own champagne. So what does that mean? Can you use OneSphere to develop OneSphere? Absolutely. Our mentality is, our OneSphere developers, in fact a couple of our distinguished technologists are here. So more customer focused. Do your development on your own products, on your own products. Does that make sense? >> Yeah. >> So that's number one, right? If they go through the pains of developing on our own products. They will know exactly which areas to focus on. And so that's one thing we are really enabling our developers to do. Is really think outside in, versus inside out. Gone are the days of, we will build it and they will come. No they won't. You have to really give them what they are going to consume. So from a strategy perspective, we're really exposing our developers to the outside world. Hey go out there. Talk to them. Learn what they're looking for. Right, so that's number one. Number two. With the developer community program, and the developer portal, and the open source program. Now that we're collaborating across HPE, at the top end and the bottom end. We're not really able to think about how we use the power of our API's, from layer 1 infrastructure all the way up to layer 7. Or Layer 5 and above. And say, "Alright how do we enable these guys to build value add that really solves their problem?" Whether it's DevOps problems. CI/CD? Whether it deploying applications, managing, monitoring applications. It's all through the power of API. If you can automate it, orchestrate it and manage it. Then we have really solved your problems. This is why we're not only going after and enabling the developers by giving them what they need. We're also partnering with key partners in our ecosystem that actually brings the best of breed. And that's what the customers are used to using today. >> And you guys had it more up to stack. Certainly the application level is a key point. What about the channel opportunity? Cause I'm seeing, and I've been talking about this on theCUBE lately, is developers are the new sales channel, because in the old days VAR's, and ISV's and channel partners would bring solutions. And you guys had a great channel, have a great channel that brings solutions to customers. Now these customers are having programming and developing done from the partners. You guys have to create that. Are you guys looking at that as a significant opportunity, with this program? >> In today's world you have to think about things in a different way. With the advent of DevOps. With the developers no longer in their cubes, not touching production, they're releasing the production daily. Or multiple times per day. And so we're lookin', or have looked with that with, how do the developer work. And get that all the way to production. At the same time, what's the skill sets to work with in the open? Are you talking about the channel? The open source community is a great channel. Not only for ideas and conversations, but also to meet people. Not only are we there. >> Furrier: Your buyers are there. >> Yeah exactly. We're releasing the customers. But customers is part of our community. Vendors are part of our community. Partners are part of our community. And together we're building a community of developers that are doing work that ultimately goes to production multiple times per year. >> When you guys get this right, I think the gains will be huge. >> Well I'll give you an example. One of the largest web companies in the world. We're partnering with them. They're a huge customer of ours. Instead of selling to their frontline, we went and started talking to their developers. And their developer leaderships. To the point where we are working on doing hackathons. So our developers, their developers, in the same conference room, solving joint problems together. >> Cooney: So co-development. >> Co-developing, exactly. We call it a hackathon. But yeah, co-developing, absolutely. That's where we're focused. Because today developers and the line of businesses have more and more and more influence on key technology decisions. That's where the money is. >> Being genuine and authentic in these communities is certainly a great, successful formula. You guys, see that. We'll be following your progress. Thanks for coming on theCUBE and sharing the update. And congratulations on the new program. And the new logo. I'd love to get a shirt when you get a chance. >> Absolutely, yeah. >> Congratulations, great to see you. Thanks for comin' on. We are here at KubeCon 2018 in Europe. This is theCUBE, I'm John Furrier. Thanks for watching. We'll be back with more live coverage after this short break.

>> Announcer: Live from Madrid Spain, it's theCUBE covering HPE Discover Madrid 2017. Brought to you by Hewlett Packard Enterprise. >> We're back. This is theCUBE that you're watching, the leader in live tech coverage. We're at HPE Discover 2017 in Madrid. My name is Dave Vellante, I'm here with my co-host for the week, Peter Burris. Peter, it's been great working with you this week. >> Indeed, it's been great. >> We're winding down, and we're really excited to have Ric Lewis, >> Great ideas. >> Senior Vice President and General Manger of the Software Defined and Cloud Group. Many time CUBE guest with HPE, and Jeff Wike of Dreamworks. CTO, thanks for coming on. >> Yeah. Thank you. Thanks for having me. >> Great to see you. You're welcome. Been a good week? >> It's been a fantastic week. >> Things are coming into focus? >> They are. >> You killed it on the keynote, how are you feeling? >> Feeling really good, feeling really good. I mean, the momentum in the software defined and cloud arena is just fantastic. You know, there were times when I used to visit with you guys and we were only talking about what's coming in the future. Now we're talking a lot about what we have, what customers are buying, where we have momentum. And still introducing new things, so it's just a whole lot of fun. >> Jeff, Senior Vice President, CTO, can we talk a little bit about your role? What the scope is? >> Sure. Sure, so Dreamworks Animation, you may have heard of it. >> Yeah. We do we make animated films. >> Good friend Kate Swanberg's been on a number of times. >> Kate's, love her. We make animated films, we do a lot more than that. We're a digital content creation company. So we, we're the largest TV animation studio in the world. We're doing theme park ride work, cause we've got, we're now under NBC Universal. So we're doing a lot of projects, it's a very busy time for us. >> So, Synergy, we talked about Synergy a lot, there's nothing >> Yeah. >> like Synergy we've heard. >> Yeah, yeah. >> Fluid pools of infrastructure. >> Yeah, it just gets better. >> Wait and see and so, what can you tell us? How's the momentum? >> Yeah let's talk a little bit about that. So the momentum on Synergy is fantastic. We started shipping in volume at this conference last year, basically December of last year. And the response has been fantastic. We've looked at Momentum for new infrastructure plays. You know if you look back at our history, whether it was the C7000 or whether it was UCS from Cisco or whether it was VCEs built on UCS, Nutanix. If you kind of look at the first year of a new infrastructure play, Synergy looks like it's the fastest growing thing ever. It's just fantastic, really growing for us. We have over 1100 customers on Synergy now. You know, and that's in 11 months of shipping. And the business, it just continues to grow quarter by quarter. Just really thrilled with the progress there, so happy. >> And you guys are customers? >> We're big customers, if we're not the biggest customer, we're certainly the biggest fan. >> One of the biggest, one of the biggest customers, maybe the biggest fan. >> Certainly the biggest fan. >> Okay so Jeff, tell us, take us back to sort of pre-Synergy, you know, what was it like before and after and what has it done for your business in particular? >> Well one of the things that that we face going forward is we developed, in our infrastructure, and inner data center, we do a lot of rendering to make a movie. That's our largest high performance compute. You know, 80 million render hours, CPU hours to make one of these films. And we're making a lot of them at the same time. We really defined that work flow, and how we optimize the data center hardware to be able to go through that work flow and be able to be as efficient as possible. The issue came with we have a lot of other projects that are coming in, and since we are now under NBC Universal, there's a lot of other work that's happening there. And also, different types of media that's coming, you know, around the corner. And we want to be able to prepare for that. What we would have done traditionally would be to buy to peak, you know because it is rather cyclical, and that's what we would do that on prem, peak. But if we had a special project, we might buy or segment a portion of that and say, you know, this is for this purpose. This is for that purpose, but that's very inefficient. So with Synergy, the beauty of it is we can purchase you know that hardware, but then if we want to be able to use it for another project, we can do that. And we can do that very very quickly. >> You said you repurpose that across your application portfolio. Or your project portfolio. >> Yeah. Yeah, it gives us, I like to say it future proofs us. Because now no matter what the parent company or our own creative ambitions are, we can handle that. We can't say no, well we never say no. We usually say not right now, or wait a couple of weeks or a couple of months to be able to provision that. And now it's, it's instantaneous. >> And I know what Ric's answer would be to this, but I want to hear from the customers. Is this really different than other products that you've experienced. >> It's totally unique. We haven't experienced it before. And I'll give you, I'll give you a little example. We just got our order. We got about 200 servers of Synergy that arrived a couple of months ago. And within seven working days, we were using it in production. And I just want to say, we took, I don't know if I told you this story, but we were able to provision all of that from the time we mounted in the racks within five hours, which is incredible. It would have taken us easily three weeks before. In fact, it took us longer to take it out of the cartons than it did to provision. >> Well, so let me see if I... You're talking about maybe 200 servers. You're probably talking about 8,000 individual tasks configured. To get it done in five hours you probably perform what, 40, 50 tasks? Administrative steps? >> By the way, first time doing it. And our engineers were saying, we could've used more parallelism. We could've done it faster. You know, it's almost a challenge to see just how easy you can do this. >> But I got that right? Is it really like 98 percent reduction in the administrative tasks? >> Absolutely. >> Really? >> That's incredible. >> It is. >> Huh, alright. >> That's before you start flexing work, flexing resources against different workloads and dynamically reprovisioning. This is just provisioning the first time. But it, if you think about it, if you're gonna do it dynamically, it can't take forever, so you've gotta make it, the first time it's gotta be super fast. >> Okay. >> So, I have to admit I'm a little stunned, I didn't know that. So, and as you said, the whole point is that you can reprovision >> Yes. >> Over and over. Which means that the... There's something in economics and technology that's known as an asset specificity. And an asset has high specificity when you buy it and can appropriate it to a specific purpose. And about the only thing in tech that makes something an asset specificity is the administrative tasks of changing it to prepare it to do something else. And you just told me that I can remove nearly 100% of the transaction costs associated with taking an asset from this and applying it to that. >> If you're gonna destroy silos in the data center, that's what you have to do. >> But that's... >> Right, so silo is this asset specificity. If you can repurpose it immediately. >> So I'm excited, that's my second question. How did your people respond to this? Because I talked to a lot of other CIOs that say one of the biggest challenges I'm having, or CTOs, one of the biggest challenges I'm having is I'm able to converge hardware, I'm able to converge to some software, I'm able to converge Administrative tasks, but my people don't like converge. What, they don't like to converge. How are you walking your people through some of these changes to liberate these opportunities? >> Well we've been moving toward, from more traditional, we'll call it IT for now. From traditional IT to dev ops environment and, you know what, it's change. So we've been bringing people along in that you know, to, and some people adapt to it. They say wow this is gonna be great for my career. And engineers want to always use the new stuff, so from that aspect of I know how I work, and I know what I do, to here's a better way of doing it to be more automated, it's been a good experience for people. And you know what, the chance of human error in configuring things... If I look to my long history at Dreamworks, 21 years, I look at any down time we've had or any problems, 90% of that has been from misconfiguration. And it's usually from somebody fat fingering, you know a parameter in the set up of the servers. And now, that's virtually eliminated. >> Did you have to go through some kind of organizational, internal sort of discussion, transformation, whatever you want to call it to actually get to the point where you could buy this way, buy a sort of single SKU of Synergy? Because you maybe previously you were buying bespoke, kind of roll your own components. A little server here, maybe some storage over there, maybe some networking here. Now maybe it's all HP that made it simpler, but you probably had specialist in each of those areas, did you not? >> We did. >> How did you deal with that organizational friction? >> You know, that was an issue as and by the way, there's so many, there's so much technology that's being developed some of it open source, some of it in this partner ecosystem that you have. And trying to stay abreast of that has been a real challenge. And one of the things that we always dreamed of is wouldn't it be nice if there was one way that you could control that. The single pane of glass, which is you know, to be able to have an API layer that everybody could hook in to. I think you've got a company like Hewlett Packard Enterprise that has that dominance in the market place to be able to dictate, I'm using that word. >> Yeah. >> Maybe dictate isn't the right word. >> Offer. >> Offer. (group laughing) >> That's the word we use. Enable. >> Enable, you know those APIs. And all of those are being developed you know almost in parallel. >> Yeah, yeah, yeah. >> So this stuff is really coming in. Now we have our own... We're a snowflake like everybody else is to your point. And what we've done is we brought in the Pointnext team to go in and write those northbound APIs so that we can hook in to one view. To be able to manage all of our legacy, I'll call it legacy, our previous infrastructure along with you know, the new tech that we're buying. So that it makes it easy to manage. >> They made it match the composable API that we put into Synergy. It's natively integrated. All the ecosystem partners are adapting to it. And they said we'll just use that as our standard to even manage our legacy infrastructure. Plus, since Oneview runs on legacy infrastructure, all of the HPE stuff, it just adapts like that. So it's been a very good, good project. >> So you've got a lot of experience with this now. Can you share with, maybe you can quantify it, maybe you can't, but even subjectively the developer impact or the animator impact, the business impact to Dreamworks? >> So the biggest impact... Well I have three things that are my, actually I got this from Meg Whitman, I had a list of 12 objectives for the studio for technology and she said at one of the CIO summits, you've gotta have three. So I said okay, I've gotta pare it down to three. And one of those is provide the technology, the software and infrastructure to meet the creative needs. The second one was innovate for competitive advantage. And the third one was drive efficiency into operations. And if you look at what Synergy provides, it hits every single one of those. So we've actually, you know, over the past year or two, we've actually reduced the number of people that we have maintaining our infrastructure, which is amazing if you consider the fact that this year we doubled the size of our infrastructure. In what other business, in what other area can you actually reduce the amount of people that are maintaining something while you're doubling the amount that you're maintaining. That never happens. And I think it's because of this software defined infrastructure and the fact that you can write these recipes or profiles, whatever you want to call them, personalities. >> Yep, yep, yep. >> To be able to... And test them and harden them. And by the way, that reminds me, one of the things I really like about this is our ability to do proofs of concept, to try different workflows and all that without having to take away resources from the main thing that we're doing which is the artistic community. So we can actually say, you know what? We're gonna go in, reimage these servers. We're gonna do that at night to run this test, in the morning they're back, they're back in the pool. And that's an amazing thing. >> That's dynamic provisioning. No one else can dynamically provision. >> Yeah. >> All the converge systems, all the hyper converge, they're provisioned a certain way. They run VMs a certain way. They stay that way for their lifetime. This stuff dynamically reprovisions, and you guys, you're not even talking about kind of doing containers with VMs and containers with your bare metal, you can dynamically reprovision across that as well. >> Yeah, what he said. (laughter) >> Listen, we're just getting started so just relax, okay. These guys are telling me we gotta wrap. We're not gonna wrap. >> No. >> We haven't even gotten to One Sphere yet. >> We have other topics. Exactly. >> So let's get to One Sphere. >> Yeah. >> Yeah I want to talk about One Sphere. But I do want to say. >> Go ahead, last thought. >> One more thing, so you talked about artists, but the other part of it is for developers so one of the things we don't want the engineering teams to be a hindrance to the developers. Because they want to be able to move quickly, they want to be able to be assessing, and I think one of the things that's not just an impact on our artists, to be able to do these new projects, but also it makes our developers more efficient. They don't have to wait. >> Yeah. >> Okay, great. Now let's talk multi cloud. >> Yep. >> A lot of complexity, the more things get simple, the more complex they seem to get. So, One Sphere. You guys announced yesterday. >> Yeah, so. A core pillar of the HP strategy, make hybrid IT simple, right. And you can see from this conversation we're making hybrid IT simple on-prem. Not only do we have Synergy, but we have a fantastic offering in our Simplivity space. And that platform's over 2,000 customers and growing like crazy as well. But after we did that, we said look, we've got fantastically simple virtualization clusters in Simplivity, we've got great dynamic reprovisioning and composable infrastructure, but customer are not... That's part of their hybrid IT problem, that's the on-prem part. They're also wrestling with I've got multiple cloud instances, I need to get insights into where I'm spending my money, where workloads are deployed and all that. So we started this program, HPE OneSphere. We've had it going for almost three years. We had a small team on it early on. We ramped up the staffing a couple years ago. And what it really does, it's pretty simple. It allows you to build clouds, deploy apps, and gain insights extremely fast. So it's designed for IT ops to be able to build and deploy a private cloud as fast as they can and assemble that with their public cloud assets. And provide one place to look at all of those. For developers, it provides a common multi-tenant environment that has all the services and tools they need to be able to deploy an application whether it's on-prem or off-prem, and you can choose, you can build applications that have some of both inside that developer environment. And then for the business, it shows insights into where's the money being spent? Where are those workloads running and what's it costing me? So, think of it almost as composable at that next level where it's not just resources within chassis, now it's resources across the hybrid IT estate. It actually is public cloud assets from any of the public clouds, whether it's AWS, Azure, Google, Cloud28+, as well as your private cloud assets. And it automates the life cycle stuff that we were just talking about through this application into OneView. It's a SaaS environment, so actually OneSphere is software as a service. It lives in the cloud, it's a subscription that our customers buy, and it does all of this capability to simplify their hybrid environment and taps into the capabilities we just talked about. It's fantastic, nobody has anything like it. >> Okay well we've heard that before, but now... >> Exactly. >> You're putting your money where your mouth is. >> So I was right on that one. >> Okay but it's early days for OneSphere. >> Okay. >> And your private cloud is what we call a true private cloud. >> Which you said on stage yesterday. >> I did that's exactly right. >> It's evidence by your ability to reduce staff to manage infrastructure. >> It's a con experience wherever the data requires is how we put it. >> Yes, yes. We want the simplicity of management and the availability of apps that you get in public cloud in the private cloud. >> And the pricing. Yeah? >> Well, yeah, well... No, cause it's actually more expensive to go public cloud. >> I mean pricing models. >> Oh yes, yeah. >> The consumption is what you're basically talking about, yeah. >> And so you, Jeff you guys are OneSphere or OneSphere betas? >> Yeah, you bet. >> So what were you trying to learn? What were you kicking the tires on, testing? Where'd you focus? >> We, you know, if we look at the future, we're not gonna be on-prem forever, and I certainly don't want to be on-prem forever, I want to take advantage of flexing to public cloud, but again, for our films, you know, we want to be able to provide the producers of those movies, what is that gonna cost me? What is that, how can I tell you what that costs? And where can we move as we start to do more different types of projects? Which ones should go to the public cloud? Which ones should stay inside? And be able to understand that. The other thing that made us nervous about public cloud. Was what they call the zombie cloud instances, you know where you went in, you provision something and then you forget about, and you, but you're paying, you know. And that's, a lot of money is made. >> Kind of like app subscriptions. >> Group: Yes, exactly. >> I'm still paying for that? (laughter) >> Exactly but this gives you all of that... >> 4,000 dollars a month. >> A little different right. >> Or 15,000 a month. (laughter) >> Yeah, that's for sure. That visibility is something that all... We talk about it, CFOs hate this thing... Some of the consumption model is shifting from cap ex to op ex, but CFOs hate surprise op ex. And that's where they're actually surprised by oh my gosh look at that bill. Well this provides visibility into all of those assets, whether they're on-prem or off-prem and what they're costing you. And it's always up to date, and it's always consistent across your entire farm, so you can choose and say that's costing me too much, I want to move those apps over here. And immediately do it. And for a lot of our customers, they're over-provisioned so they have spare capacity on-prem they're not taking advantage of. Why not use some of that and it's instantly provisioned. >> And that's where you initially, anyway, see the business value of OneSphere. >> Well, look, it's OneSphere to rule them all. And I believe whether it's private, public, you know we really want to have what is my total resource availability? So in the future, we never say no anymore. Really, we can tell them how much, but you don't have to say no. And the other thing is we can do this stuff instantly. So, we don't even say when, we just go now here's what you have to pay if you want to do it, we can provide those options. It's a new world. >> I love the demo of, I don't know if you guys saw it, there's a demo with Pong, you know, it's the IT guy of the past. >> Yeah the guy saying no. >> And then they made it vertical. It's the IT guy of the future. So, alright my last question. What cool movies can we anticipate? What's coming? >> Well you know what, How to drain... How to Train, how to drain your tragon I was gonna say. (laughter) How to Train Your Dragon 3 is our next film out and it's gonna be unbelievable. >> I'll bet. >> So my last question. Am I gonna have to continue to sit through 15 minutes of IT credits at the end of future Dreamworks movies as a consequence of Synergy? >> There's less, cause there's less resources required to manage your Synergy hardware. So it's less people. >> I know you don't sit through the credits. (laughter) >> I do. (laughter) I love credits. Alright guys, thanks very much for coming on. >> Thank you. >> It's been a great pleasure. >> Thank you, always fun. >> Alright keep it there everybody, Peter and I will be back to wrap up HPE Discover 2017 from Madrid, you're watching theCUBE. (upbeat music)