>> Narrator: Live from Las Vegas, it's theCUBE. Covering HPE Discover 2017. Brought to you by Hewlett-Packard Enterprise. >> Okay, welcome back everyone. We are here live in Las Vegas for SiliconANGLE Media's, theCUBE's exclusive coverage for three days for HPE Discover 2017. We're on day three, down to the wire here. I'm John Furrier with SiliconANGLE with my co-host Dave Vellante, my partner in crime with Wikibon. Our next guest, Ric Lewis. Software Defined Cloud Senior Vice President, President and GM of HPE, welcome back to theCUBE. >> Thank you. >> And Kate Swanborg, Senior Vice-President Tech Communications and Strategic Alliances, DreamWorks Animation. Welcome back as well. >> Thank you. >> John: Great to have you guys back. >> It's good to be here. >> So obviously DreamWorks, you guys are a big customer, Ric you are now leading up the team for Software Defined infrastructure, as we call it programmable infrastructure, a lot of great things. >> Ric: Yeah. >> Synergy we talked heavily about last year. >> Ric: Yeah. >> I kind of was geeking out with you on that in terms of all that programming ability and automation. Meg story this week was simplifying hybrid IT, which is the key part of where Software's coming in. >> That's exactly right. >> And so we got DreamWorks here, what's your vision in how that's going to happen? How do you take that simple message and put it into practice? >> Yeah so, we're completely about making hybrid IT simple, and we have three primary vectors that we're driving in order to make that happen. The first is our hyperconverged appliances that we deliver, and the second is HPE Synergy, our composable, and the third is our hybrid IT management stacked software that we have. And we've got momentum across all of those. In Hyper Converged, you guys know we acquired SimpliVity, it closed in February. Got a lot of customers on that. We had Red Bull on-stage here at Discover talking about their use case of that in their racing. It was a packed house, people completely interested in all the things we're doing in hybrid IT. That's SimpliVity. Synergy, we now have almost 400 customers that have adopted Synergy. We started shipping in volume in December, and DreamWorks Animation is one of those customers, and real excited for you to hear a little bit about how they're using it, but we had, I think we had around 10 customers from Synergy across all kinds of verticals and use cases, including service providers that were on-stage here. And the final thing is our hybrid IT management stack, a program that we introduced here at Discover called Project New Stack. So, that's what's going on in Software Defined & Cloud, it's a lot right now. >> And we had a SimpliVity customer on by the way, they were really glowing. >> Yeah. >> Great to see that happen. >> That was a great story. >> Great story, Kate, so DreamWorks, you guys have a business, you've got to put a product out there and so you got to look at technology, make it work for you, and sometimes you got to get in the weeds, there's pieces and pieces, at the end of the day you got a product to deliver. How are you guys taking some of the things that are coming out at HPE and putting them into action? What are some of the things you're doing? >> Well, I think one of the things that is often surprising to people is just how much technology we consume to make a CG feature animated film. These films take 80 million compute hours to render the images, petabytes of storage and we're typically working on five or six active films in production because they take us four or five years to make. And so we want to be able to have the capability of releasing two or three films a year, we must have simultaneous production. But of course, not all of the productions are exactly the same, and we've also got other media opportunities, whether it's television or theme park. And so, what's critical to us is that we're actually able to provision the right amount of digital resource to the right project quickly and easily so that as those creative inspirations are growing and burgeoning at the studio, we've got the resource behind it in an effortless fashion. >> And how are you making that happen with the Synergy for example, because last year we were looking at thinking well this has got a lot of potential. I mean you can do it through the orchestration, making the management work kind of takes that, abstracts away a lot of the complexity. How are you guys dealing with that, I mean how have you put that into action? >> Well, we've been working within a hybrid environment for years now, so the idea of a hybrid environment isn't new to us. The key however, is that it's labor intensive. It's time-consuming. In order to get all of the right configurations of the networking and the storage, the compute to actually work in a realtime environment for our artists, that has taken us an enormous amount of effort over the years. What we're looking for in the Synergy deployment is to reduce those weeks down to days and those days down to hours. Once we're able to do that, our engineers can go off and focus on the niche technology solutions that actually matter to the artists. And that's where we want to get the business benefit. >> And with Synergy, compute, storage and fabric all managed under the same management domain. >> That's right. >> Single API that you can get access to all those resources, so it makes it super easy. It's the world's easiest way to do infrastructure as a service, it's built into the platform natively. >> That's right, and one of the things that's been so impressive to us is that we've been working with the Pointnext team to come in and actually configure this for our environment. Everybody uses a high-performance compute environment, but nobody's is exactly the same. The configure ability of this and the customability of this to our environment has been critical, and we've seen incredible benefits from that. >> So Ric, we kind of pushed you in theCUBE last year, cause you were saying "there's nothing like this in the marketplace". We said, okay define what's different. (John laughs) One of the things you touched on was the fluid pools of infrastructure. >> Yes. >> And Kate, what you just described is bringing technology to different digital teams. >> The dynamicism if you will. >> Absolutely. >> Being able to dynamically configure the thing, yes. >> So, let's test it. I mean, it sounds like that's exactly what you're doing, and how is this different than the infrastructure that you used to have? >> So, the reason that it's different is that we've got, we've got a simply said, a single infrastructure. We've got a compute farm, we've got storage, and historically what we had to do was actually partition off certain pieces of that for certain productions in order to protect their resources. The problem with that is that any given day, particularly in a creative environment, maybe they're using all of it, maybe they need more, maybe they need less. The challenge is is that historically if they needed less we can't reprovision that to another production in order to take advantage of their inspiration and their business motivations. Now we can. Now we have the opportunity to actually have the infrastructure be as dynamic as our creative environment, and that's saying a lot. >> And you can reconfigure those resources three clicks, five minutes, you literally can deprovision -- >> Kate: That's it. >> So the old way they're like bitchin and moanin, where's the servers? >> Absolutely. >> Right. >> And running around scrambling. >> They're on order. (all laugh) >> Six weeks. No this what we're talking about. >> Yeah. >> This is about speed, right? I mean this is -- >> It absolutely is. >> Alright, so I want to ask you a question about the HPE event. You mentioned you're here. So, a lot of people go to these events and they try and extract all the action. You've heard a lot of firsts, last year was Synergy first, big claim there. We're hearing some security stuff with servers here. >> Ric: Yeah. >> As a practitioner that comes to these shows, what's your strategy when you come to an event like HPE Discover, and obviously the schmooze is going on and getting wined and dined by HP, a big customer, but like when you go in there, what are you looking for, how do you connect the dots, what tea leaves do you read, what's your strategy? >> Well, I'll tell you, one of the things that really interests me about Discover is we've got a deep partnership with Hewlett-Packard Enterprise. We're talking to Hewlett-Packard Enterprise all the time. So we might actually think that we know what's going on. It's not true, there's so much innovation happening that when we bring our team to this show, we learn things that could really help our business. I'll give you a great example, so we learned this week about SimpliVity. Now, we had sort of heard about it, but we had not taken our time out of our schedules to really understand how that could help our VM environment. Our team's sitting in one of the panels this week, and he's texting other engineers on our team going "We have got to look at this next week at DreamWorks Animation". That's the kind of environment this is. I'll tell you something else, New Stack, we're going to lean heavy into New Stack because we believe that the innovation that we're seeing in that space is really, finally going to deliver on this promise of cloud that's been out there. >> What specifically about New Stack do you like? I want to just double down on that. Is it the rule of your own, is it the flexibility, what's the big thing there? >> Well, again this is one of those things where our team today is actually writing code and creating architectures that are sort of New Stack-like, but we're having to do it, we're having to invest our own time. It's trial and error, some of the things work some of the things don't, and that time is not being spent focused on our animation productions. The fact of the matter is, here's Hewlett-Packard actually doubling down and making sure that there is going to be a robust solution that works, that we can bring into our environment. >> We're in enterprises across the world every day. We're having these conversations, and most enterprises are doing kind of a roll-your-own cloud kind've thing. >> That's right. >> They're playing with OpenStack, they're playing with Kubernetes, they're playing with all these tools, they got a bunch of custom code, but we're really what we're trying to do with New Stack is take the best of what they're all trying to do, constrain that down, take our standard Software Defined infrastructure as the base, put a stack on top of that that they can count on to do a private cloud with bridge-to-hybrid capabilities, that's standard, that ships, that delivers and has updates, so that they're not messing around with it. Their developers don't want to spend time doing that, they just want to have a private cloud installation that has hybrid capabilites and have it installed. >> This is super relevant, this is super relevant, and we call you a tech athlete because you want to go out there and deliver value to your group and actually build products, right? >> That's right. >> The film. But Dave's team just put out the True Private Cloud Report which shows on PRAM, cloud-like environment, $260 billion dollar TAM, but the notable thing is that the labor costs were non-differentiated spend is going up by a $150 billion shifting in 10 years. >> Yeah. >> That's exactly the point here that you're talking about, is my guy's aren't working on the product that they need to be building. They're doing the R&D, so the OpenStack and all these things you're talking about, they're doing the R&D. Here, you're doing the R&D, delivering the product to the customer. >> Well and when we deliver that, we're still going to leverage all of those technologies. OpenStack is a key part of New Stack. Kubernetes is a key part of New Stack, but what we're doing is pulling that together so that they don't have to curate their own private cloud. >> Kate: That's right. >> We create that, deliver it in a way that's an appliance-like way, just like we deliver Hyper Converged today, in a controlled plane that manages that hybrid IT estate and gives them visibility into public cloud uses and private cloud, and it's really going to help them a lot, and it's going to help a whole lot of other customers cause we're making it standard and easily deployable. >> Well, we've seen this story unfold over this decade, where the corner office has said I don't want to spend money on that caching and provisioning. Okay, so go to the cloud. And then IT said, well, eh, we can't do that. (laughs) Okay, and so they get in with Hewlett-Packard Enterprise and others say what's the answer? Okay, but what you've described is this horizontal infrastructure capability that you can throw any workload at. >> That's right. >> And so my question is, what does it mean for the business? Does it mean you can do things faster, you have happier animators, you can do more movies, what does it mean? >> I think it means a couple of things. First of all, opportunity cost. In our business, a new opportunity for a creative endeavor, that comes up all the time, and the key is is that you want to be able to explore that as quickly as possible. Creative ideas work out sometimes, sometimes they don't, but they key is is that if takes you time and effort and money to just explore it, you've got an opportunity cost you don't want. >> Yeah, yep. >> Something like Synergy will allow us to provision resources to new ideas and new potentials quickly enough, easily enough, and at a cost-effective measure, so that we can actually determine which creative endeavors are going to work more quickly in our environment. That's a huge deal. >> So you were missing opportunities because of the infrastructure limitations, is that right? >> That's -- >> The mockups and everything have to get done. >> That's right! >> All the CG work. >> Again, when our filmmakers have a new idea for a new sequence, a new character, those types of characters, they take tremendous amounts of resources. I often talk about the dragon in Shrek. Back in 2001 we released Shrek, and it had this beautiful, huge pink dragon in it. And she was fantastic, but frankly she was so complex and so computationally heavy, we actually had to cut her out of parts of the film because we couldn't produce the shots she was in. Fast forward a few years, and we decide to make a movie called How to Train Your Dragon that's nothing but dragons. The key is is that we never want to be in a position again where we're tabling a great creative idea because we can't resource for it. And solutions like SimpliVity and Synergy and particularly where we're going with New Stack and the ability to actually harness the cloud without having to do all the work ourselves, that's going to bring that potential to reality. >> John: And then you know, your application in this opportunity cost is for your business. Other companies have apps, right? So their opportunity costs are very similar. >> That's right. >> John: This is the classic how shadow IT was born. >> Oh, yes! >> And people want to experiment, show proof of concept. Not a PowerPoint, an actual demo of real working product. It may not have the scale there, but you get to that point of where it's workable. >> Look, every business is facing some element of this right now, and I will tell you the other reason of the two reasons that I think that this is going to make a difference. It's future-proofing our environment. >> Ric: Yeah. >> The world is so dynamic right now, things are changing so quickly. Even in our environment with media and entertainment, the world of what people want to consume and how they want to consume it and the nature of how we're looking at innovation in both filmmaking techniques, as well as new media opportunities, the key in all of that is is that we have to be dynamic in order to be future-proofed. These types of solutions give us the confidence that we're actually putting the money in the right place. It's an investment in our future. >> Earlier you mentioned Pointnext services, and the narrative from Hewlett-Packard Enterprise is my inference is it's more cloud-like. Do different types of business models. Are you seeing that? I mean, is it more than just a new name, a new brand, are you starting to see an evolution of the way in which you engage with Hewlett-Packard services? >> We absolutely are, and it's one thing to talk about strategy, but at the end of the day, you don't call up your technology and have a conversation with it, you call up people. And what we're seeing is that Hewlett-Packard Enterprise is investing in a level of expertise within the Pointnext services organization that is unparalleled. That is a massive change over the course of the last five, six, 10 years. These folks are coming into our environment now and we're finding that we are inspired by their strategies. We're not having to teach them about our business, they're actually coming in with all of these other learnings that they've gotten from all of these corporations and they're looking at our ambitions and going hey, we think we've got some ideas here. I'll tell you, our engineers are hard to impress. >> That's the truth. >> They are used to, what was your phrase, rolling it on their own. >> Yeah. >> They are used to being responsible, and they have very little tolerance for actually giving other people time within our organization. Pointnext has blown them away. We could not be doing the work that we're doing on Synergy as quickly and as effectively, installation and strategy around that without the Pointnext team. >> Well, that's the proof, that is the proof in the pudding in my opinion when your people who are, I won't say cocky, but they're kind of, sounds like they're pretty cocky. (laughs) >> Ric: Confident. >> But that you're in a, you're in media entertainment. It is one of the most disruptive, being disrupted markets right now. Smart Cities, IoT, media entertainment it's, you're the leading trend in IT right now, media entertainment. >> And in our team, there's simply no tolerance at DreamWorks Animation for technology getting in the way of the business. The fact of the matter is technology always has to be enabling the storytellers, enabling the filmmakers, enabling the business and ambition. And the key is is that our engineering team, they feel responsible to that. One of the things that we're finding with the new Hewlett-Packard Enterprise, the Pointnext team, Ric's team with the Synergy deployments, is that we actually feel like we've got a partner that can up our own game. >> John: Good. >> And we do deep beta programs with them on everything that we're doing to make sure that we're meeting that next generation of what they need. It's a fantastic partnership. >> Well Ric, congratulations on the success, and Kate thanks for sharing all the great stories and your experience DreamWorks Animation. Great to see that trend, again media entertainment, you guys are doing great stuff. We're doing our share with digital TV here, we're not a, we live on the edge of the network with theCUBE here at HP Discover. With DreamWorks Animation, I'm John Furrier, Dave Vellante, stay with us for more day three coverage here in Las Vegas at HP Discover. We'll be right back. (tech music)

>> Voiceover: Live from Las Vegas, it's The Cube covering HPE Discover 2017. Brought to you by Hewlett-Packard Enterprise. >> Welcome back everyone. This is The Cube's day two coverage of HPE Discover 2017. We're here live in Las Vegas. I'm John Furrier, the co-founder of SiliconAngle Media. My other co-founder Dave Vellante, head of research at Wikibon.com. And our next guests are Kevin Wan, Director of Software Defined and Cloud Group Marketing at HPE, and William Fellows, co-founder and VP of Research at 451 Research, well-known research firm with Wikibon, and some of the other research firms out there, covering the cloud. Guys welcome to The Cube. >> Thanks for having us, it's exciting day today. >> So the first thing I want to get into here is, we were just talking before we went on live, about multicloud and kind of having a great debate, it's great, it's a great debate because it really is a hard definition to knock down. And Wikibon has done some research, you've got some new research, I want to get into that. Dave done some, I think, called, True Private Cloud, that shows not a decline in on-prem and server deployment, there's actually an increase. Hybrid cloud is increasing. You guys got some new research. What is the state of enterprises with respect to moving to cloud, vis-a-vis hybrid. 'Coz certainly there's movement there. What's going on? >> So, users want to make decisions about where to place applications, and workloads, and source services based upon policy, based upon latency, based upon geography, and so on. And as the worlds of cloud and hosting, and co-location and managed services, as they converged those options are growing exponentially. And, you know, what HP has been doing is to bring into view tools which allow organizations to select those best environments to meet their hybrid IT needs. And what we've seen in 451 Research is that between now and the next couple of years, there's going to be an increased momentum to put those workloads and applications into different kinds of cloud environments. In other words, when you talk to an organization, they say, "Well, we've got a bit of SaaS here. "We're using a bit of public cloud here. "We're using some other hosting services. "We're doing things on-premise." Already they're using multiple cloud services. So when we asked our global commentator network of about 60,000 folks for whom enterprise IT is their day job, which we call voice of the enterprise, they've told us that between now and in two years' time, existing 40% of workloads in those cloud environments is going to become 60%. In other words, the majority of workloads in two years' time are going to be running in some kind of cloud environment. Now, the mix of those is going to be different depending on different organizations. But we found a variance of less than about 10% across different vertical markets, which suggests there's an interesting benchmark, if you like, a right mix coming into view in terms of the balance of when you would use public cloud services, when you would use hosted private, and when you would use on-premise services. >> Ken I want to get your thoughts on this because that's a great point he's bringing up. The cloud business model is not necessarily, I have to move it to public. You can do cloud-like on-premise. That's where the True Private Cloud comes in. To your point, there is a massive shift to cloud-like, and there's a trend towards the same software on-prem as in the cloud. So, as these things get laid out, you're seeing that path. So just because you're still on-prem doesn't make you not cloud, right? >> That's right, that's exactly right. So what we're seeing is, as William was saying, is that there's an interest in figuring out where is the best place for workload to go? Based on its performance needs, it's security, compliance, cost needs. And often we find that sometimes traditional IT leaving a traditional IT environment is the best thing to do. Sometimes it's best to put it into a private cloud, sometimes it's best to put it into a public cloud. So we're seeing a lot of customers with multiple clouds, on average, somewhere between five and eight clouds today. And the challenge they're starting to have now is, "My God, I've got five to eight clouds. "How do I manage all these?" >> "How'd that happen?" Clouds brawl. >> Yeah, and so, but there's very little interoperability between them. And so you have different stacks of management for each of these clouds. And there's a fair amount of resource required to manage all these different clouds. So I think what the next thing you'll start seeing are tools that allow you to migrate resources, or look at clouds more holistically, and to analyze the entire cloud environment, all the multiple clouds, and to be able to use policy, and then analyze where is the best location automatically, and to be able to pull cost data out, performance data out, across the whole cloud environment. >> And this is what we've, at 451 research has been calling best execution venue for about 10 years now. So the idea is that for every class of IT-related business need, there's an environment which best balances performance, and cost, and other things. And IT should be able to deploy to that environment automatically. And get the benefits associated with having things in the right resources and the right services they need. >> That's right. Our view is that people need to figure out their right mix. Every company will use a different amount of SaaS, private cloud, public cloud, based on their company strategy. An online bank will have different requirements than a brick-and-mortar bank, as an example. Even though they're in the same industry. Because their business models are different, their mix will be different. So we work with each company to figure out what their right mix should be, where do they need that portability. One of the exciting things that we're doing today at Discover is talking about Microsoft Azure Stack. We've worked with Microsoft to bring out this new offering that provides full compatibility between what's running on-premise and what's running in a public cloud. So Azure Stack uses the ability to run Azure-consistent services right out of your data center with its fully API compatible. So that means, as a developer, I can write an application and deploy it into either a public cloud or a private cloud, with no change to the code at all. >> So the extensibility is the key message here. You don't have to adopt Azure Stack from the Azure cloud. You can actually mirror that on-prem in a cloud-like way that's still on-prem. And you can call that private cloud. I mean you can call it private cloud but then that's what it is. >> Right, right. >> But that's obviously going to resonate with developers, this whole notion of infrastructures as codes. So one of the things that CEOs complain about is we spent way too much money on non-differentiated infrastructure management. And so to the extent that you're putting in these clouds, private cloud, whatever, hybrid clouds, that substantially mimic public cloud, William, what does your research show in terms of how organizations are shifting their spending on labor? If that premise is true that CEOs don't want to spend it on, you know, provisioning LANs, but they do wanted initiate digital transformation initiatives. Are you seeing any evidence that this notion of cloud is helping on-prem, is helping them shift their spending on labor? >> So what I would say is that cloud provides the basis and the platform for broader digital transformation agendas. And cloud brings with it some really important changes in the operating model which affect staffing and how you do these things. So, for example, moving from a process development which is waterfall or top down to, agile, from moving from a situation where resources are allocated from one where they are consumption based. So from installing new things in different Silos to where things are updated on a continuous basis. So those things have a dramatic effect on the way you organized internally in order to support that, which indeed then set you up for doing these things that would create a digital platform. So linking technology, information assets, customer experience, marketing, and so on. And I think Devoxx is at the heart of that because it provides the automation, the process change, 'coz remember what we're talking about here is moving from, you know, a world in which, you've talked about, the Silo, to one in which is collaborative, to one in which is multidirectional, and to one which is based on sharing. And I think all of those things have an impact on how you staff for those. I think there's been enough research to understand that not everyone is going to make it necessarily in this transformation. But I think our research indicates that at least 2/3 of the folks in silent organization bind to the things that they will need to be doing in order to support this digital transformation. >> We've certainly seen, the many customers that I've talked to, look at this and see this huge opportunity for essentially automating a lot of functions, you know, the LANS, the networks, installing the application, the databases, and all that. And through this automation, all these people who used to do this now are available to be re-skilled, to do higher level, more value-differentiating sorts of work. All these IT departments are struggling because they want to bring, focus more of their effort on new services but they're so much work to just maintaining the existing services. They don't have the time. So one of the things the cloud does is reduce the mundane day-to-day time and take those resources and move them on a more differentiated value-creating types of services so that they can advance their businesses. >> Ken, interesting point, I mean, yes they were talking about IT, information technology, those two words, I mean, they're not going away, they're only getting stronger. And it's interesting that some of the narrative in the media is the decline of servers, decline of storage shipments. Now I get that, those boxes may or may not be sold in the same volumes as it was before. But the growth shifting somewhere else. And that's the issue. I want to get your thoughts on that. Because it's not the decline in the IT. It is growing if you look at the private cloud and your report suggests that there's a massive growth. So your point about shifting to the value stack is interesting. So what are you seeing with the customers? What specifically are they doing in that shift with IT resources? Is it app development? Is it more operational automation? What are some of the things that you're observing? >> We're seeing through this digital transformation, a desire to automate a lot of the common functions that they use to automate, so that they can speed up services, speed up VMs in minutes rather than days, being able to provide PaaS services to their developers. So the developers, instead of getting a VM from the IT department, then having to load in the database, the middleware, all these development tools, that he should go into his environment and request an environment, the environment automatically comes up. So now the developer doesn't have to spend time figuring out what version of database, what version of middleware, all that. The environment's up and running and he can just focus on writing code, which is ultimately what we want to do, is to help our customers get the developers doing more of what they do best, which is writing code and less of this infrastructure management kind. >> Yes they automate a way and they move to higher value-- >> Well I guess at the top of the pile there, you know, the old adage used to be that, you know, for CIOs cloud meant, you know, career is over. >> John: Not anymore (laughs). >> But what that really should apply, it means, you know, becoming the chief innovation officer, and returning to innovating for the business rather than just keeping the lights on right? >> That's right. It gives the IT folks an opportunity to think about how can you apply this new technology to the business challenges that the line of business are having. So that they can bring together those thoughts. It's very often the line of business guys don't know enough about the technology. And the technology guys don't know enough about the line of business. You've got to have somebody who knows both sides who could see how you can apply new technology to accelerate the business. >> So that underscores that the organizational roles are changing. Lest, like you say, doing this provisioning, server provisioning, more strategic initiatives. There's an area in the market place that everybody sort of talking about as jump-all, which is this multicloud, intercloud management. Nobody really dominates that. Hewlett-Packard Enterprise, obviously, has a good position there. So first question is, what are you seeing in terms of the changing role of the IT department, the gestalt of that? And what does that mean in terms of opportunities for Hewlett-Packard Enterprise? Maybe William you could take the first? >> So what I would say is the IT department is increasingly becoming a broker of services, both those that are created internally and those that are procured from outside. And so what they need is a way to be able to to provision those, to be able to manage, to build a meter and charts, for those who implement security, and governance, and so on. So what we're seeing is the rise of sets of cloud management technologies and real large, you know, we talked about, a cloud management platform that enables users to find, access, and use, you know, a range of different kind of services. And this is what HP is going to be providing with, you know, the New Stack. And the New Stack is effectively a cloud management platform. >> Absolutely >> Right Ken? >> So talked about the opportunity that you see from Hewlett-Packard Enterprise's perspective. >> So what we see is exactly that the challenge that you laid out, is that there's a lot of different clouds out there but there's still a lot of manual work to have to configure and manage them individually. And so one of the things that we announced at the show is something what we call Project New Stack. So this is a vision for how we're going to enable our customers to manage a multicloud environment. So imagine if someone is using AWS, Azure, Google, VMware, OpenStack, >> Containers, Kubernetes. >> and you have a way to look across all of these different clouds and say I can see where my spend is. I can see where my capacity is. And I can do that not only as a whole but from my finance department, they can see their part as well. The HR department can see their resource usage. So now we have a way to look across the entire computing environment, the cloud environment. And understand cost utilization performance at a more holistic level, rather than at an individual level. So we look at this from three different personas. You have to think about this. And we've talked about people and organizations. So one of these personas is the IT guy, right? He has to worry about operation. So we give him a portal where he can set this environment up, where we can make connectivity into all these services on the public cloud and private cloud. We have a different persona where if it was a developer. So that developer doesn't care about the infrastructure, they don't care, all they want is access to their development tools. So we give him access to a whole market place, to different tools, whether that's Chef, Puppet, all these answerable, all these tools that they can use to do their dev ops work. And then there's the line of business. This line of business, again, he doesn't care about the network, or the storage. What he cares about is how much money am I spending? Are my services meeting the performance requirements? So we see the shift to these three very clear personas that need to interact with this environment what we call Project New Stack, and to look at how we enable this multicloud environment. >> So Project New Stack supports this notion of an IT operations management center that allows to have full visibility and control over all my clouds, my SaaS, my on-prem, my public clouds, protecting that data, securing that data. How far away are we from that nirvana? >> And not to be locked in right? Because I think one of the things that characterizes Project New Stack versus other approaches, is that it allows organizations to access and use different kinds of servers. 'Coz the danger with these things is that, you know, everyone talks about, you know, a single pane of glass, that they can easily become a single glass of pane if they don't allow you to do these things. >> That's a good point, I mean-- >> That's correct. And one of the challenges we see from the developer world is developers like to use the tools they like to use, you know, they don't like to be told what to do. So it's very important that there's ability for the developers to bring in the latest and greatest tool that their buddy, you know, that they work with just heard about, to bring in 'coz it's going to make their job a lot easier. So this Project New Stack has strong integrations to third party products and the ability to bring in new developers. >> This is a challenge and opportunity. We should follow up on this. But I want to get your final thoughts on this, both of you. Because this is an interesting challenge, but an opportunity. Too many tools, same hammer, five different versions of a hammer you have. Now multicloud which has kind of been by accident, on purpose, people just got to Amazon over here, they wake up and they go, "Oh my God, I'm in multiple clouds." That doesn't mean multiclouds in the sense of seamless workloads moving around and best resource. So in a way there's an existing kind of legacy set up here. So your thoughts on how customers can manage this. Is that accurate? Do you agree or-- >> So, you raise a good point. So there's a small percentage of folks who are using multiple clouds to fulfill a single business process. However, the majority, when they say hybrid cloud, it just means they're using different clouds to meet different needs at different times. >> Workloads, on Azure, I've got some Office 365, I've got some analytics on Redshift-- >> Exactly, but we haven't seen is organization's moving workloads and applications between clouds based upon minute by minute or penny by penny changes in price. However, the world of HP and other folks envisage is one where you will be able to, because of the needs of a particular application or a geography or latency, you will be able to move data between these things. >> Or cost as you said. >> Exactly. >> So build a stack for your company basically. So you're essentially giving a composability fabric, and go to a company and saying, "Hey, there's no general purpose products anymore, "here's a New Stack approach where you can kind of," I won't say cobble together, but you know, stitched together what they need. >> Put together your right environment, and in fact it's not just going to be about moving application across different clouds based on container technology, it's certainly one of the things that we'll be doing, but even beyond that, it's the ability to run different micro services on different clouds so your actual service is actually running on multiple clouds, all managed together by a single environment. And the operator can look and say, "Oh looks like this service needs a little more resource, "so let me automatically provide that more resource." So we're scaling up, your application continues to meet its needs. That's where this is really getting interesting. >> Because micro services aren't always so micro. (laughs) >> You know latency and data are really important factors in this multicloud. I want to continue this conversation. >> But also if you leave the hyper-scalers to one side, every other organization is becoming a broker of cloud services to some extent. In other words, what I mean is, they're offering access to, not only their own services but to third party services as well, because if they don't, the customers are going to go elsewhere. So they need the mechanism to be able to manage that. >> That's right, that's exactly right. >> It's a great opportunity for HP to take that whole market and increase that TAM of that cloud service provider if you will, I mean-- >> Huge opportunity. >> anyone in the SaaS business is essentially a cloud provider. So you call them a cloud service provider I guess. Guys thanks so much. William great to meet you and have your commentary here on The Cube, appreciate it. Ken thanks so much for the New Stack conversation and hybrid IT. This is The Cube. Day two coverage of three days. I'm John Furrier for Dave Vellante. Stay with us for more coverage after this short break. (soft upbeat music)