(light corporate music) >> Welcome back, everyone, to VMware Explore 22. I'm John Furrier, host of theCUBE with Dave Vellante. Our 12th year covering VMware's User Conference, formerly known as VMworld, now rebranded as VMware Explore. Two great cube alumnus coming down the cube. Ricky Cooper, SVP, Worldwide Partner Commercials VMware, great to see you. Thanks for coming on. >> Thank you. >> We just had a great chat- >> Good to see you again. >> With the Discovery and, of course, Joseph George, vice president of Compute Industry Alliances. Great to have you on. Great to see you. >> Great to see you, John. >> So guys this year is very curious in VMware. A lot goin' on, the name change, the event. Big, big move. Bold move. And then they changed the name of the event. Then Broadcom buys them. A lot of speculation, but at the end of the day, this conference kind of, people were wondering what would be the barometer of the event. We're reporting this morning on the keynote analysis. Very good mojo in the keynote. Very transparent about the Broadcom relationship. The expo floor last night was buzzing. >> Mhm. >> I mean, this is not a show that's lookin' like it's going to be, ya' know, going down. >> Yeah. >> This is clearly a wave. We're calling it Super Cloud. Multi-Cloud's their theme. Clearly the cloud's happenin'. We not to date ourselves, but 2013 we were discussing on theCUBE- >> We talked about that. Yeah. Yeah. >> Discover about DevOps infrastructure as code- >> Mhm. >> We're full realization now of that. >> Yep. >> This is where we're at. You guys had a great partnership with VMware and HPE. Talk about where you guys see this coming together because customers are refactoring. They are lookin' at Cloud Native. The whole Broadcom visibility to the VMware customer bases activated them. They're here and they're leaning in. >> Yeah. >> What's going on? >> Yeah. Absolutely. We're seeing a renewed interest now as customers are looking at their entire infrastructure, bottoms up, all the way up the stack, and the notion of a hybrid cloud, where you've got some visibility and control of your data and your infrastructure and your applications, customers want to live in that sort of a cloud environment and so we're seeing a renewed interest. A lot of conversations we're having with customers now, a lot of customers committing to that model where they have applications and workloads running at the Edge, in their data center, and in the public cloud in a lot of cases, but having that mobility, having that control, being able to have security in their own, you know, in their control. There's a lot that you can do there and, obviously, partnering with VMware. We've been partners for so long. >> 20 years about. Yeah. Yeah. >> Yeah. At least 20 years, back when they invented stuff, they were inventing way- >> Yeah. Yeah. Yeah. >> VMware's got a very technical culture, but Ricky, I got to say that, you know, we commented earlier when Raghu was on, the CEO, now CEO, I mean, legendary product. I sent the trajectory to VMware. Everyone knows that. VMware, I can't know whether to tell it was VMware or HP, HP before HPE, coined hybrid- >> Yeah. >> 'Cause you guys were both on. I can't recall, Dave, which company coined it first, but it was either one of you guys. Nobody else was there. >> It was the partnership. >> Yes. I- (cross talking) >> They had a big thing with Pat Gelsinger. Dave, remember when he said, you know, he got in my grill on theCUBE live? But now you see- >> But if you focus on that Multi-Cloud aspect, right? So you've got a situation where our customers are looking at Multi-Cloud and they're looking at it not just as a flash in the pan. This is here for five years, 10 years, 20 years. Okay. So what does that mean then to our partners and to our distributors? You're seeing a whole seed change. You're seeing partners now looking at this. So, look at the OEMs, you know, the ones that have historically been vSphere customers are now saying, they're coming in droves saying, okay, what is the next step? Well, how can I be a Multi-Cloud partner with you? >> Yep. Right. >> How can I look at other aspects that we're driving here together? So, you know, GreenLake is a great example. We keep going back to GreenLake and we are partaking in GreenLake at the moment. The real big thing for us is going to be, right, let's make sure that we've got the agreements in place that support this SaaS and subscription motion going forward and then the sky's the limit for us. >> You're pluggin' that right into GreenLake, right? >> Well, here's why. Here's why. So customers are loving the fact that they can go to a public cloud and they can get an SLA. They come to a, you know, an On-Premise. You've got the hardware, you've got the software, you've got the, you know, the guys on board to maintain this through its life cycle. >> Right. I mean, this is complicated stuff. >> Yeah. >> Now we've got a situation where you can say, hey, we can get an SLA On-Premise. >> Yeah. And I think what you're seeing is it's very analogous to having a financial advisor just manage your portfolio. You're taking care of just submitting money. That's really a lot of what the customers have done with the public cloud, but now, a lot of these customers are getting savvy and they have been working with VMware Technologies and HPE for so long. They've got expertise. They know how they want their workloads architected. Now, we've given them a model where they can leverage the Cloud platform to be able to do this, whether it's On-Premise, The Edge, or in the public cloud, leveraging HPE GreenLake and VMware. >> Is it predominantly or exclusively a managed service or do you find some customers saying, hey, we want to manage ourself? How, what are you seeing is the mix there? >> It is not predominantly managed services right now. We're actually, as we are growing, last time we talked to HPE Discover we talked about a whole bunch of new services that we've added to our catalog. It's growing by leaps and bounds. A lot of folks are definitely interested in the pay as you go, obviously, the financial model, but are now getting exposed to all the other management that can happen. There are managed services capabilities, but actually running it as a service with your systems On-Prem is a phenomenal idea for all these customers and they're opening their eyes to some new ways to service their customers better. >> And another phenomenon we're seeing there is where partners, such as HPA, using other partners for various areas of their services implementation as well. So that's another phenomenon, you know? You're seeing the resale motion now going into a lot more of the services motion. >> It's interesting too, you know, I mean, the digital modernization that's goin' on. The transformation, whatever you want to call it, is complicated. >> Yeah. >> That's clear. One of the things I liked about the keynote today was the concept of cloud chaos. >> Yeah. >> Because we've been saying, you know, quoting Andy Grove at Intel, "Let chaos rain and rain in the chaos." >> Mhm. >> And when you have inflection points, complexity, which is the chaos, needs to be solved and whoever solves it kicks the inflection point, that's up into the right. So- >> Prime idea right here. Yeah. >> So GreenLake is- >> Well, also look at the distribution model and how that's changed. A couple of points on a deal. Now they're saying, "I'll be your aggregator. I'll take the strain and I'll give you scale." You know? "I'll give you VMware Scale for all, you know, for all of the various different partners, et cetera." >> Yeah. So let's break this down because this is, I think, a key point. So complexity is good, but the old model in the Enterprise market was- >> Sure. >> You solve complexity with more complexity. >> Yeah. >> And everybody wins. Oh, yeah! We're locked in! That's not what the market wants. They want some self-service. They want, as a service, they want easy. Developer first security data ops, DevOps, is already in the cycle, so they're going to want simpler. >> Yeah. >> Easier. Faster. >> And this is kind of why I'll say, for the big announcement today here at VMware Explore, around the VMware vSphere Distributed Services Engine, Project Monterey- >> Yeah. >> That we've talked about for so long, HPE and VMware and AMD, with the Pensando DPU, actually work together to engineer a solution for exactly that. The capabilities are fairly straightforward in terms of the technologies, but actually doing the work to do integration, joint engineering, make sure that this is simple and easy and able to be running HPE GreenLake, that's- >> That's invested in Pensando, right? >> We are. >> We're all investors. Yeah. >> What's the benefit of that? What's, that's a great point you made. What's the value to the customer, bottom line? That deep co-engineering, co-partnering, what does it deliver that others don't do? >> Yeah. Well, I think one example would be, you know, a lot of vendors can say we support it. >> Yep. >> That's great. That's actually a really good move, supporting it. It can be resold. That's another great move. I'm not mechanically inclined to where I would go build my own car. I'll go to a dealership and actually buy one that I can press the button and I can start it and I can do what I need to do with my car and that's really what this does is the engineering work that's gone on between our two companies and AMD Pensando, as well as the business work to make that simple and easy, that transaction to work, and then to be able to make it available as a service, is really what made, it's, that's why it's such a winner winner with our- >> But it's also a lower cost out of the box. >> Yep. >> Right. >> So you get in whatever. Let's call it 20%. Okay? But there's, it's nuanced because you're also on a new technology curve- >> Right. >> And you're able to absorb modern apps, like, you know, we use that term as a bromide, but when I say modern apps, I mean data-rich apps, you know, things that are more AI-driven not the conventional, not that people aren't doing, you know, SAP and CRM, they are, but there's a whole slew of new apps that are coming in that, you know, traditional architectures aren't well-suited to handle from a price performance standpoint. This changes that doesn't it? >> Well, you think also of, you know, going to the next stage, which is to go to market between the two organizations that before. At the moment, you know, HPE's running off doing various different things. We were running off to it again, it's that chaos that you're talking about. In cloud chaos, you got to go to market chaos. >> Yeah. >> But by simplifying four or five things, what are we going to do really well together? How do we embed those in GreenLake- >> Mhm. >> And be known in the marketplace for these solutions? Then you get a, you know, an organization that's really behind the go to market. You can help with sales activation the enablement, you know, and then we benefit from the scale of HPE. >> Yeah. >> What are those solutions I mean? Is it just, is it I.S.? Is it, you know, compute storage? >> Yeah. >> Is it, you know, specific, you know, SAP? Is it VDI? What are you seeing out there? >> So right now, for this specific technology, we're educating our customers on what that could be and, at its core, this solution allows customers to take services that normally and traditionally run on the compute system and run on a DPU now with Project Monterey, and this is now allowing customers to think about, okay, where are their use cases. So I'm, rather than going and, say, use it for this, we're allowing our customers to explore and say, okay, here's where it makes sense. Where do I have workloads that are using a lot of compute cycles on services at the compute level that could be somewhere else like networking as a great example, right? And allowing more of those compute cycles to be available. So where there are performance requirements for an application, where there is timely response that's needed for, you know, for results to be able to take action on, to be able to get insight from data really quick, those are places where we're starting to see those services moving onto something like a DPU and that's where this makes a whole lot more sense. >> Okay. So, to get this right, you got the hybrid cloud, right? >> [Ricky And Joseph] Yes. >> You got GreenLake and you got the distributed engine. What's that called the- >> For, it's HPE ProLiant- >> ProLiant with- >> The VMware- >> With vSphere. >> That's the compute- >> Distributed. >> Okay. So does the customer, how do you guys implement that with the customer? All three at the same time or they mix and match? What's that? How does that work? >> All three of those components. Yeah. So the beauty of the HP ProLiant with VMware vSphere-distributed services engine- >> Mhm. >> Also known as Project Monterey for those that are keeping notes at home- >> Mhm. >> It's, again, already pre-engineered. So we've already worked through all the mechanics of how you would have to do this. So it's not something you have to go figure out how you build, get deployment, you know, work through those details. That's already done. It is available through HPE GreenLake. So you can go and actually get it as a service in partnership with our customer, our friends here at VMware, and because, if you're familiar and comfortable with all the things that HP ProLiant has done from a security perspective, from a reliability perspective, trusted supply chain, all those sorts of things, you're getting all of that with this particular (indistinct). >> Sumit Dhawan had a great quote on theCUBE just an hour or so ago. He said you have to be early to be first. >> Yeah. (laughing) >> I love that quote. Okay. So you were- >> I fought the urge. >> You were first. You were probably a little early, but do you have a lead? I know you're going to say yes, okay. Let's just- >> Okay. >> Let's just assume that. >> Okay. Yeah. >> Relative to the competition, how do you know? How do you determine that? >> If we have a lead or not? >> Yeah. If you lead. If you're the best. >> We go to the source of the truth which is our customers. >> And what do they tell you? What do you look at and say, okay, now, I mean, when you have that honest conversation and say, okay, we are, we're first, we're early. We're keeping our lead. What are the things that you- >> I'll say it this way. I'll say it this way. We've been in a lot of businesses where there, where we do compete head-to-head in a lot of places. >> Mhm. >> And we know how that sales process normally works. We're seeing a different motion from our customers. When we talk about HPE GreenLake, there's not a lot of back and forth on, okay, well, let me go shop around. It is HP Green. Let's talk about how we actually build this solution. >> And I can tell you, from a VMware perspective, our customers are asking us for this the other way around. So that's a great sign is that, hey, we need to see this partnership come together in GreenLake. >> Yeah. >> It's the old adage that Amazon used to coin and Andy Jassy, you know, they do the undifferentiated heavy lifting. >> [Ricky And Joseph] Yeah. >> A lot of that's now Cloud operations. >> Mhm. >> Underneath it is infrastructure's code to the developer. >> That's right. >> That's at scale. >> That's right. >> And so you got a lot of heavy lifting being done with GreenLake- >> Right. >> Which is why there's no objections probably. >> Right. >> What's the choice? What are you going to shop? >> Yeah. >> There's nothing to shop around. >> Yeah, exactly. And then we've got, you know, that is really icing on the cake that we've, you know, that we've been building for quite some time and there is an understanding in the market that what we do with our infrastructure is hardened from a reliability and quality perspective. Like, times are tough right now. Supply chain issues, all that stuff. We've talked, all talked about it, but at HPE, we don't skimp on quality. We're going to spend the dollars and time on making sure we got reliability and security built in. It's really important to us. >> We had a great use case. The storage team, they were provisioning with containers. >> Yes. >> Storage is a service instantly we're seeing with you guys with VMware. Your customers' bringing in a lot of that into the mix as well. I got to ask 'cause every event we talk about AI and machine learning- >> Mhm. >> Automation and DevOps are now infiltrating in with the CICD pipeline. Security and data become a big conversation. >> [Ricky And Joseph] Agreed. >> Okay. So how do you guys look at that? Okay. You sold me on Green. Like, I've been a big fan from day one. Now, it's got maturity on it. I know it's going to get a lot more headroom to do. There's still a lot of work to do, but directionally it's pretty accurate, you know? It's going to be a success. There's still concern about security, the data layer. That's agnostic of environment, private cloud, hybrid, public, and Edge. So that's important and security- >> Great. >> Has got a huge service area. >> Yeah. >> These are on working progress. >> Yeah. Yeah. >> How do you guys view those? >> I think you've just hit the net on the head. I mean, I was in the press and journalist meetings yesterday and our answer was exactly the same. There is still so much work that can be done here and, you know, I don't think anybody is really emerging as a true leader. It's just a continuation of, you know, tryin' to get that right because it is what is the most important thing to our customers. >> Right. >> And the industry is really sort of catching up to that. >> And, you know, when you start talking about privacy and when you, it's not just about company information. It's about individuals' information. It's about, you know, information that, if exposed, actually could have real impact on people. >> Mhm. >> So it's more than just an I.T. problem. It is actually, and from HPE's perspective, security starts from when we're picking our suppliers for our components. Like, there are processes that we put into our entire trusted supply chain from the factory on the way up. I liken it to my golf swing. My golf swing. I slice right like you wouldn't believe. (John laughing) But when I go to the golf pros, they start me back at the mechanics, the foundational pieces. Here's where the problems are and start workin' on that. So my view is, our view is, if your infrastructure is not secure, you're goin' to have troubles with security as you go further up. >> Stay in the sandbox. >> Yeah. >> Yeah. So to speak, you know, they're driving range on the golf analogy there. I love that. Talk about supply chain security real quick because you mentioned supply chain on the hardware side. You're seeing a lot of open source and supply chain in software, trusted software. >> Yep. >> How does GreenLake look at that? How do you guys view that piece of it? That's an important part. >> Yeah. Security is one of the key pillars that we're actually driving as a company right now. As I said, it's important to our customers as they're making purchasing decisions and we're looking at it from the infrastructure all the way up to the actual service itself and that's the beauty of having something like HPE GreenLake. We don't have to pick, is the infrastructure or the middle where, or the top of stack application- >> It's (indistinct), right? >> It's all of it. >> Yeah. >> It's all of it. That matters. >> Quick question on the ecosystem posture. So- >> Sure. >> I remember when HP was, you know, one company and then the GSIs were a little weird with HP because of EDS, you know? You had data protector so we weren't really chatting up Veeam at the time, right? And as soon as the split happened, ecosystem exploded. Now you have a situation where you, Broadcom, is acquiring VMware. You guys, big Broadcom customer. Has your attitude changed or has it not because, oh, we meet with the customers already. Well, you've always said that, but have you have leaned in more? I mean, culturally, is HPE now saying, hmm, now we have some real opportunities to partner in new ways that we don't have to sleep with one eye open, maybe. (John laughing) >> So first of all, VMware and HPE, we've got a variety of different partners. We always have. >> Mhm. >> Well before any Broadcom announcement came along. >> Yeah, sure. >> We've been working with a variety of partners. >> And that hasn't changed. >> And that hasn't changed. And, if your question is, has our posture toward VMware changed at all, the answer's absolutely not. We believe in what VMware is doing. We believe in what our customers are doing with VMware and we're going to continue to work with VMware and partner with the (indistinct). >> And of course, you know, we had to spin out ourselves in November of last year, which I worked on, you know, the whole Dell thing. >> Yeah. We still had the same chairman. >> Yeah. There- (Dave chuckling) >> Yeah, but since then, I think what's really become very apparent and not, it's not just with HPE, but with many of our partners, many of the OEM partners, the opportunity in front of us is vast and we need to rely on each other to help us as, you know, solve the customer problems that are out there. So there's a willingness to overlook some things that, in the past, may have been, you know, barriers. >> But it's important to note also that it's not that we have not had history- >> Yeah. >> Right? Over, we've got over 200,000 customers join- >> Hundreds of millions of dollars of business- >> 100,000, over 10,000, or 100,000 channel partners that we all have in common. >> Yeah. Yeah. >> Yep. >> There's numerous- >> And independent of the whole Broadcom overhang there. >> Yeah. >> There's the ecosystem floor. >> Yeah. >> The expo floor. >> Right. >> I mean, it's vibrant. I mean, there's clearly a wave coming, Ricky. We talked about this briefly at HPE Discover. I want to get an update from your perspectives, both of you, if you don't mind weighing in on this. Clearly, the wave, we're calling it the Super Cloud, 'cause it's not just Multi-Cloud. It's completely different looking successes- >> Smart Cloud. >> It's not just vendors. It's also the customers turning into clouds themselves. You look at Goldman Sachs and- >> Yep. >> You know, I think every vertical will have its own power law of Cloud players in the future. We believe that to be true. We're still testing that assumption, but it's trending in when you got OPEX- >> [Ricky And Joseph] Right. >> Has to go to in-fund statement- >> Yeah. >> CapEx goes too. Thanks for the Cloud. All that's good, but there's a wave coming- >> Yeah. >> And we're trying to identify it. What do you guys see as this wave 'cause beyond Multi-Cloud and the obvious nature of that will end up happening as a state and what happens beyond that interoperability piece, that's a whole other story, and that's what everyone's fighting for, but everyone out in that ecosystem, it's a big wave coming. They've got their surfboards. They're ready to go. So what do you guys see? What is the next wave that everyone's jacked up about here? >> Well, I think that the Multi-Cloud is obviously at the epicenter. You know, if you look at the results that are coming in, a lot of our customers, this is what's leading the discussion and now we're in a position where, you know, we've brought many companies over the last few years. They're starting to come to fruition. They're starting to play a role in, you know, how we're moving forward. >> Yeah. >> Some of those are a bit more applicable to the commercial space. We're finding commercial customers that never bought from us before. Never. Hundreds and hundreds are coming through our partner networks every single quarter, you know? So brand new to VMware. The trick then is how do you nurture them? How do you encourage them? >> So new logos are comin' in. >> New logos are coming in all the time, all the time, from, you know, from across the ecosystem. It's not just the OEMs. It's all the way back- >> So the ecosystem's back of VMware. >> Unbelievably. So what are we doing to help that? There's two big things that we've announced in the recent weeks is that Partner Connect 2.0. When I talked to you about Multi-Cloud and what the (indistinct), you know, the customers are doing, you see that trend. Four, five different separate clouds that we've got here. The next piece is that they're changing their business models with the partners. Their services is becoming more and more apparent, et cetera, you know? And the use of other partners to do other services, deployment, or this stuff is becoming prevalent. Then you've got the distributors that I talked about with their, you know, their, then you route to market, then you route to business. So how do you encapsulate all of that and ensure your rewarding partners on all aspects of that? Whether it's deployment, whether it's test and depth, it's a points-based system we've put in place now- >> It's a big pie that's developing. The market's getting bigger. >> It's getting so much bigger. And then you help- >> I know you agree, obviously, with that. >> Yeah. Absolutely. In fact, I think for a long time we were asking the question of, is it going to be there or is it going to be here? Which was the wrong question. (indistinct cross talking) Now it's everything. >> Yeah. >> And what I think that, what we're seeing in the ecosystem, is that people are finding the spots that, where they're going to play. Am I going to be on the Edge? >> Yeah. >> Am I going to be on Analytics Play? Am I going to be, you know, Cloud Transition Play? There's a lot of players are now emerging and saying, we're- >> Yeah. >> We're, we now have a place, a part to play. And having that industry view not just of, you know, a commercial customer at that level, but the two of us are lookin' at Teleco, are looking at financial services, at healthcare, at manufacturing. How do these new ecosystem players fit into the- >> (indistinct) lifting. Everyone can see their position there. >> Right. >> We're now being asked for simplicity and talk to me about partner profitability. >> Yes. >> How do I know where to focus my efforts? Am I spread too thin? And, you know, that's, and my advice that the partner ecosystem out there is, hey, let's pick out spots together. Let's really go to, and then strategic solutions that we were talking about is a good example of that. >> Yeah. >> Sounds like composability to me, but not to go back- (laughing) Guys, thanks for comin' on. I think there's a big market there. I think the fog is lifted. People seeing their spot. There's value there. Value creation equals reward. >> Yeah. >> Simplicity. Ease of use. This is the new normal. Great job. Thanks for coming on and sharing. (cross talking) Okay. Back to live coverage after this short break with more day one coverage here from the blue set here in Moscone. (light corporate music)

(bright intro music) >> Welcome back everyone to VMware Explore '22. I'm John Furrier, host of the key with David Lante, our 12th year covering VMware's user conference, formerly known as VM-World now rebranded as VMware Explore. You got two great Cube alumni coming on the Cube. Ricky Cooper, SVP worldwide partner commercial VMware. Great to see you, thanks for coming on. >> Thank you. >> We just had a great chat-- >> Good to see you again. >> At HPE discover. And of course, Joseph George, Vice President of Compute Industry Alliances. Great to have you on. Great to see you. >> Great to see you, John. >> So guys, this year is very curious, VMware, a lot going on. The name change of the event. Big move, Bold move. And then they changed the name of the event. Then Broadcom buys them. A lot of speculation, but at the end of the day, this conference... Kind of people were wondering what would be the barometer of the event. We were reporting this morning on the keynote analysis. Very good mojo in the keynote. Very transparent about the Broadcom relationship. The expo floor last night was buzzing. I mean, this is not a show that's looking like it's going to be, you know, going down. This is clearly a wave. We're calling it super cloud, multi-cloud's their theme. Clearly the cloud's happening. Not to date ourselves, but 2013 we were discussing on the-- >> We talked about that, yeah. >> HPE Discover about DevOps infrastructure as code. We're full realization now of that. This is where we're at. You guys had a great partnership with VMware and HPE. Talk about where you guys see this coming together because the customers are refactoring, they are looking at cloud native, the whole Broadcom visibility to the VMware customer bases activated them. They're here and they're leaning in. What's going on? >> Yeah absolutely, we're seeing a renewed interest now as customers are looking at their entire infrastructure, bottoms up all the way up the stack and the notion of a hybrid cloud, where you've got some visibility and control of your data and your infrastructure and applications. Customers want to live in that sort of a cloud environment. And so we're seeing a renewed interest, a lot of conversations we're having with customers now, a lot of customers committing to that model, where they have applications and workloads running at the edge in their data center and in the public cloud in a lot of cases. But having that mobility, having that control, being able to have security in their own control. There's a lot that you can do there. And obviously partnering with VMware. We've been partners for so long. >> 20 years, at least. >> At least 20 years. Back when they invented stuff. They were inventing way-- >> VMware's got a very technical culture, but Ricky, I got to say that we commented earlier when Ragu was on the CEO now CEO, I mean legendary product guy, set the trajectory to VMware, everyone knows that. I can't know whether it was VMware or HP, HP before HPE coined Hybrid. Cause you guys were both on, I can't recall Dave, which company coined it first, but it was either one of you guys. Nobody else was there. >> It was the partnership. (men chuckle) >> Hybrid Cloud I had a big thing with Pat Gelsinger, Dave. Remember when he said he got in my grill on theCube, live, but now you see. >> You focus on that multi-cloud aspect. So you've got a situation where our customers are looking at multi-cloud and they're looking at it, not just as a flash in the pan. This is here for five years, 10 years, 20 years. Okay. So what does that mean then to our partners and to our distributors, you're seeing a whole seed change. You're seeing partners now looking at this. So look at the OEMs, the ones that have historically been vSphere customers and now saying they're coming in, drove saying, okay, what is the next step? Well, how can I be a multi-cloud partner with you? How can I look at other aspects that we're driving here together? So GreenLake is a great example. We keep going back to GreenLake and we are partaking in GreenLake at the moment. The real big thing for us is going to be right. Let's make sure that we've got the agreements in place that support this Sasson subscription motion going forward. And then the sky's the limit for us. >> You're plugging that right into. >> Well, here's why, here's why, so customers are loving the fact that they can go to a public cloud and they can get an SLA. They come to an on-premise, you've got the hardware, you've got the software, you've got the guys on board to maintain this through its life cycle. I mean, this is complicated stuff. Now we've got a situation where you can say, Hey, we can get an SLA on premise. >> And I think what you're seeing is it's very analogous to having a financial advisor, just manage your portfolio. You're taking care of just submitting money. That's really a lot of what a lot of the customers have done with the public cloud. But now a lot of these customers are getting savvy. They have been working with VMware technologies and HPE for so long. they've got expertise. They know how they want their workloads architected. Now we've given them a model where they can leverage the cloud platform to be able to do this, whether it's on premise, the edge or in the public cloud, leveraging HPE GreenLake and VMware. >> Is it predominantly or exclusively a managed service or do you find some customers saying, hey, we want to manage ourself. What are you seeing is the mix there? >> It is not predominantly managed services right now. We're actually, as we are growing last time we talked at HPE discover. We talked about a whole bunch of new services that we've added to our catalog. It's growing by leaps and bounds. A lot of folks are definitely interested in the pay as you go, obviously the financial model, but are now getting exposed to all the other management that can happen. There are managed services capabilities, but actually running it as a service with your systems on-prem is a phenomenal idea for all these customers. And they're opening their eyes to some new ways to service their customers better. >> And another phenomenon we're seeing there is where partners such as HPA, using other partners for various areas of the services implementation as well. So that's another phenomenon. You're seeing the resale motion now going into a lot more of the services motion. >> It's interesting too. I mean the digital modernization that's going on, the transformation whatever you want to call it, is complicated, that's clear. One of the things I liked about the keynote today was the concept of cloud chaos, because we've been saying quoting Andy Grove, Next Intel, let chaos rain and rain in the chaos. And when you have inflection points, complexity, which is the chaos, needs to be solved and whoever solves it and kicks the inflection point, that's up and to the right. >> So prime idea right here. So. >> GreenLake is, well. >> Also look at the distribution model and how that's changed a couple of points on a deal. Now they're saying I'll be your aggregator. I'll take the strain and I'll give you scale. I'll give you VMware scale for all of the various different partners, et cetera. >> Yeah. So let's break this down because this is, I think a key point. So complexity is good, but the old model in the enterprise market was, you solve complexity with more complexity and everybody wins. Oh yeah, we're locked in. That's not what the market wants. They want self- service, they want as a service, they want easy, developer first security data ops. DevOps is already in the cycle. So they're going to want simpler, easier, faster. >> And this is kind of why I I'll say for the big announcement today here at VMware Explorer around the VMware vSphere distributed services engine, project Monterey that we've talked about for so long, HPE and VMware and AMD with the Pensando DPU actually work together to engineer a solution for exactly that. The capabilities are fairly straightforward in terms of the technologies, but actually doing the work to do integration, joint engineering, make sure that this is simple and easy and able to be running HPE GreenLake. >> We invested in Pensando right, we are investors. >> What's the benefit of that. That's a great point. You made what's the value to the customer bottom line, that deep, co-engineering, co-partnering, what is it deliver that others don't do? >> Yeah. Well, I think one example would be a lot of vendors can say we support it. >> Yep. That's great. That's actually a really good move, supporting it. It can be resold. That's another great move. I'm not mechanically inclined to where I would go build my own car. I'll go to a dealership and actually buy one that I can press the button and I can start it and I can do what I need to do with my car. And that's really what this does is the engineering work that's gone on between our two companies and AMD Pensando as well as the business work to make that simple and easy that transaction to work. And then to be able to make it available as a service is really what made, that's why it's such a winner here... >> But, it's also a lower cost out of the box. Yes. So you get in whatever it's called a 20%. Okay. But there's nuance because you're also on a new technology curve and you're able to absorb modern apps. We use that term as a promo, but when I say modern apps, I mean data, rich apps, things that are more AI driven. Not the conventional, not that people aren't doing, you know, SAP and CRM, they are. But, there's a whole slew of new apps that are coming in that traditional architectures aren't well suited to handle from a price performance standpoint. This changes that doesn't it? >> Well, you think also of going to the next stage, which is the go to market between the two organizations that before at the moment, HPE is running off doing various different things. We were running off to. Again, that chaos that you're talking about in cloud chaos, you got to go to market chaos, but by simplifying four or five things, what are we going to do really well together? How do we embed those in GreenLake and be known in the marketplace for these solutions? Then you get an organization that's really behind the go to market. You can help with sales, activation, the enablement. And then we benefit from the scale of HPE. >> Yeah. What are those solutions, I mean... Is it just, is it IS? Is it compute storage? Is it specific SAP? Is it VDI? What are you seeing out there? >> So right now for this specific technology, we're educating our customers on what that could be. And at its core, this solution allows customers to take services that normally and traditionally run on the compute system and run on a DPU now with project Monterey. And this is now allowing customers to think about where are their use cases. So I'm rather than going and say, use it for this. We're allowing our customers to explore and say, okay, here's where it makes sense. Where do I have workloads that are using a lot of compute cycles on services at the compute level? That could be somewhere else like networking as a great example, and allowing more of those compute cycles to be available. So where there are performance requirements for an application where there are timely response that's needed for results to be able to take action on, to be able to get insight from data really quick. Those are places where we're starting to see the services moving onto something like a DPU. And that's where this makes a whole lot more sense. >> Okay, so to get this right? You got the hybrid cloud, right? You got GreenLake and you got the distributed engine. What's that called? >> It's HPE Proliant Proliant with the VMware, VSphere. >> VSphere. That's the compute distributed. Okay. So does the customer, how do you guys implement that with the customer all three at the same time or they mix and match? How's that work? >> All three of those components. So the beauty of the HP Proliant with VMware vSphere distributed services engine also now is project Monterey for those that are keeping notes at home. Again already pre-engineered so we've already worked through all the mechanics of how you would have to do this. So it's not something you have to go figure out how you build, get deployment, work through those details. That's already done. It is available through HPE GreenLake. So you can go and actually get it as a service in partnership with our customer, our friends here at VMware. And because if you're familiar and comfortable with all the things that HP Proliant has done from a security perspective, from a reliability perspective, trusted supply chain, all those sorts of things, you're getting all of that with this particular solution. >> Sumit Dhawan had a great quote on theCube just a hour or so ago. He said you have to be early to be first. Love that quote. Okay. So you were first, you were probably a little early, but do you have a lead? I know you're going to say yes. Okay. Let's just assume that okay. Relative to the competition, how do you know? How do you determine that? >> If we have a lead or not? >> Yeah, if you lead, if you're the best. >> We go to the source of the truth, which is our customers. >> And what do they tell you? What do you look at and say, okay, now, I mean, when you have that honest conversation and say, okay, we are, we're first, we're early, we're keeping our lead. What are the things that you look at, as indicators? >> I'll say it this way. We've been in a lot of businesses where we do compete head-to-head in a lot of places and we know how that sales process normally works. We're seeing a different motion from our customers. When we talk about HPE GreenLake, there's not a lot of back and forth on, okay, well let me go shop around. It is HP GreenLake, let's talk about how we actually build this solution. >> And I can tell you from a VMware perspective, our customers are asking us for this the other way around. So that's a great sign. Is that, Hey, we need to see this partnership come together in GreenLake. >> Yeah. Okay. So you would concur with that? >> Absolutely. So third party validation. >> From Switzerland. Yeah. >> Bring it with you over here. >> We're talking about this earlier on, I mean, of course with I mentioned earlier on there's some contractual things that you've got to get in place as you are going through this migration into Sasson subscription, et cetera. And so we are working as hard as we can to make sure, Hey, let's really get this contract in place as quickly as possible, it's what the customers are asking us. >> We've been talking about this for years, you know, see containers being so popular. Now, Kubernetes becoming that layer of bringing people to bringing things together. It's the old adage that Amazon used to coin and Andy Jassy, they do the undifferentiated, heavy lifting. A lot of that's now that's now cloud operations. Underneath is infrastructure's code to the developer, right. That's at scale. >> That's right. >> And so you got a lot of heavy lifting being done with GreenLake. Which is why there's no objections probably. >> Right absolutely. >> What's the choice. What do you even shop? >> Yeah. There's nothing to shop around. >> Yeah, exactly. And then we've, that is really icing on the cake that we've, we've been building for quite some time. There is an understanding in the market that what we do with our infrastructure is hardened from a reliability and quality perspective. Times are tough right now, supply chain issues, all that stuff, we've talked about it. But at HPE, we don't skimp on quality. We're going to spend the dollars and time on making sure we got reliability and security built in. It's really important to us. >> We get a great use case, the storage team, they were provisioning with containers. Storage is a service, instantly. We're seeing with you guys with VMware, your customers bringing in a lot of that into the mix as well. I got to ask. Cause every event we talk about AI and machine learning, automation and DevOps are now infiltrating in with the Ci/CD pipeline security and data become a big conversation. >> Agreed. >> Okay. So how do you guys look at that? Okay. You sold me on green. I've been a big fan from day one. Now it's got maturity on it. I know it's going to get a lot more headroom to do there. It's still a lot of work to do, but directionally it's pretty accurate. It's going to be going to be success. There's still concerns about security, the data layer. That's agnostic of environment, private cloud hybrid, public and edge. So that's important and security has got a huge service area. These are a work in progress. How do you guys view those? >> I think you've just hit the nail on the head. I mean, I was in the press and journalist meetings yesterday and our answer was exactly the same. There is still so much work that can be done here. And I don't think anybody is really emerging as a true leader. It's just a continuation of trying to get that right. Because it is what is the most important thing to our customers. And the industry is really sort of catching up to that. >> And when you start talking about privacy and when you... It's not just about company information, it's about individuals information. It's about information that if exposed actually could have real impact on people. So it's more than just an IT problem. It is actually, and from HP's perspective, security starts from when we're picking our suppliers for our components. There are processes that we put into our entire trusted supply chain from the factory on the way up. I liken it to my golf swing, my golf swinging. I slice, right lik you wouldn't believe. But when I go to the golf pros, they start me back at the mechanics, the foundational pieces, here's where the problems are and start working on that. So my view is our view is if your infrastructure is not secure, you're going to have troubles with security as you go further up. >> Stay in the sandbox, so to speak, they're driving range on the golf analogy there. I love that. Talk about supply chain security real quick. Because you mentioned supply chain on the hardware side, you're seeing a lot of open source and supply chain in software trusted software. How does GreenLake look at that? How do you guys view that piece of it? That's an important part. >> Yeah, security is one of the key pillars that we're actually driving as a company right now. As I said, it's important to our customers as they're making purchasing decisions. And we're looking at it from the infrastructure all the way up to the actual service itself. And that's the beauty of having something like HP GreenLake, we don't have to pick is the infrastructure or the middle where, or the top of stack application, we can look at all of it. Yeah. It's all of it. That matters. >> Question on the ecosystem posture, so, I remember when HP was one company and then the GSIs were a little weird with HP because of EDS, you know, had data protector. So we weren't really chatting up Veeam at the time. And as soon as the split happened, ecosystem exploded. Now you have a situation where your Broadcom is acquiring VMware. You guys big Broadcom customer, has your attitude changed or has it not because, oh, we meet where the customers are. You've always said that, but have you have leaned in more? I mean, culturally is HPE, HPE now saying, hmm, now we have some real opportunities to partner in new ways that we don't have to sleep with one eye open, maybe. >> So I would some first of all, VMware and HPE, we've got a variety of different partners, we always have. If well, before any Broadcom announcement came along. We've been working with a variety of partners and that hasn't changed and that hasn't changed. And if your question is, has our posture toward VMware changed that all the answers absolutely not. We believe in what VMware is doing. We believe in what our customers are doing with VMware, and we're going to continue to work with VMware and partner with you. >> And of course we had to spin out ourselves in November of last year, which I worked on the whole Dell, whole Dell piece. >> But, you still had the same chairman. >> But since then, I think what's really become very apparent. And it's not just with HPE, but with many of our partners, many of the OEM partners, the opportunity in front of us is vast. And we need to rely on each other to help us solve the customer problems that are out there. So there's a willingness to overlook some things that in the past may have been barriers. >> But it's important to note also that it's not that we have not had history, right? Over... We've got over 200,000 customers join. >> Hundreds of millions of dollars of business. >> 100,000, over 10,000 or a 100,000 channel partners that we have in common. Numerous , numerous... >> And independent of the whole Broadcom overhang there, there's the ecosystem floor. Yeah, the expo floor. I mean, it's vibrant. I mean, there's clearly a wave coming. Ricky, we talked about this briefly at HPE Discover. I want to get an update from your perspective, both of you, if you don't mind weighing in on this, clearly the wave we calling it super cloud. Cause it's not just, multi-cloud completely different looking successes, >> Smart Cloud. >> It's not just vendors. It's also the customers turning into clouds themselves. You look at Goldman Sachs. I think every vertical will have its own power law of cloud players in the future. We believe that to be true. We're still testing that assumption, but it's trending in when you got OPEX has to go to in fund statement. CapEx goes to thanks for the cloud. All that's good, but there's a wave coming and we're trying to identify it. What do you guys see as this wave cause beyond multi-cloud and the obvious nature of that will end up happening as a state and what happens beyond that interoperability piece? That's a whole nother story and that's what everyone's fighting for. But everyone out in that ecosystem, it's a big wave coming. They got their surfboards. They're ready to go. So what do you guys see? What is the next wave that everyone's jacked up about here? >> Well, I think the multi-cloud is obviously at the epicenter. If you look at the results that are coming in, a lot of our customers, this is what's leading the discussion. And now we're in a position where we've brought many companies over the last few years, they're starting to come to fruition. They're starting to play a role in how we're moving forward. Some of those are a bit more applicable to the commercial space. We're finding commercial customers are never bought from us before never hundreds and hundreds are coming through our partner networks every single quarter. So brand new to VMware, the trick then is how do you nurture them? How do you encourage them? >> So new logos are coming in? >> New logos are coming in all the time, all the time from across the ecosystem. It's not just the OEMs, it's all the way back. >> So the ecosystem's back for VMware. >> Unbelievably. So what are we doing to help that? There's two big things that we've announced in the recent weeks is that partner connect 2.0. When I talk to you about multi-cloud and multicardt the customers are doing, you see that trend. Four, five different separate clouds that we've got here. The next piece is that they're changing their business models with the partners. Their services is becoming more and more apparent, etc. And the use of other partners to do other services deployment or this stuff is becoming prevalent. Then you've got the distributors that I talked about were there. Then you route to market, then you route to business. So how do you encapsulate all of that and ensure your rewarding partners on all aspects of that? Whether it's deployment, whether it's test and debt, it's a points based system we've put in place now. >> It's a big pie. That's developing the market's getting bigger. >> It's getting so much bigger and then help. >> You agree obviously with that. >> Yeah, absolutely, in fact, I think for a long time we were asking the question of, is it going to be there or is it going to be here? Which was the wrong question now it's everything. Yes. And what I think that what we're seeing in the ecosystem is people are finding the spots where they're going play. Am I going to be on the edge? Am I going to be an analytics play? Am I going to be a cloud transition play? A lot of players are now emerging and saying, we now have a place, a part to play. And having that industry view, not just of a commercial customer at that level, but the two of us are looking at Telco, are looking at financial services, at healthcare, at manufacturing. How do these new ecosystem players fit into it? >> ... is lifting, everyone can see their position there. >> We're now being asked for simplicity and talk to me about partner profitability. How do I know where to focus my efforts? Am I've spread too thin? And my advice that a partner ecosystem out there is, Hey, let's pick out spots together. Let's really go to, and then strategic solutions that we were talking about is good example of that. >> Sounds like composability to me, but not to go back guys. Thanks for coming on. I think there's a big market there. I think the fog is lifted, people seeing their spot there's value there. Value creation equals reward. Yeah. Simplicity, ease of use. This is the new normal great job. Thanks for coming on sharing. Okay. Back live coverage after this short break with more day one coverage here from the blue set here in Moscone.

>>The cube presents HPE discover 2022 brought to you by HPE, >>Where back you watching the Cube's coverage. HPE discover 2022. This is day three, Dave Valante with John furrier. Ricky Cooper is here. He is the vice president slash newly minted SP we're gonna talk about that of global and transformational partners at VMware and rock LA Vista. Who's the vice president of worldwide GreenLake cloud services at the transformation, the transformational partner of Hewlett Packard enterprise guys. Welcome to the program. Thanks for coming >>On. Thank you. Thank you very much. Thank >>You. So really interesting title and you've got a new role. Yeah. Right. Explain that. >>Well, I'm the interim SVP for the channel and for the commercial business at VMware, I also have the global, my existing role is global and transformational partners. So that's our, you know, our largest OEMs and also the transformational partners, which is more the, you know, the, the reseller stroke, um, services element of our business. >>I remember in, uh, John and I started the cube in 2010. Yeah. And the second show we did, third show actually was wasm world 2010. >>And Ritz was the CEO at the time, huge >>Booth. It was amazing. And, and HP at the time was all over, you know, of, of the cube and of course, world, and you guys have been partners for a long, long time Roco. So maybe give us a little bit >>Of the history AB absolutely. So for 20 years, H P H P has been partnered with VMware in delivering virtualization technology and solutions to our customer base. And while that partnership is strong, and I remember some of the market share numbers were like 45% of VMware software stack is running on HPE servers and technology. I think about how that's evolved, right? Like strong history, strong partnership. And when I say strong, I'm not talking about marketing fluff, I'm not talking about slideware. I'm talking about at a ground level that the account teams get together and talk about what those customers that they're working with. They get together and figure out what outcome they're trying to solve for. And we bring that technology together. Now, layering GreenLake GreenLake is taking at the heart of what VMware does with their software stack, combining it with our infrastructure solutions and providing IAS, PAs and CAS capabilities to our customers at the edge in their core, whether it's a data center or, um, colo, as well as providing the common operating model into public cloud. And so we embrace, and the partnership is only getting stronger because of what VMware does with us now with GreenLake, which is everything, what HPE is >>About that is well, well said, I gotta say, I gotta say that was purposely. That was really crisp and, and not to kind of go back and look at the history of the cube, but we've been covering both of you guys. Mm-hmm, <affirmative> deeply been watching the transformation of both companies. It's so clear that VMware is so deep in the operational side of it. Yeah. It's been one of the hallmarks of VMware mm-hmm <affirmative>, uh, vSphere, um, all that technology. You guys have been powering with the hardware now, GreenLake, we had a demo yesterday with the storage team, they're provisioning, storage, Amazon storage, and on premise and edge. So we see VMware as a massive service layer in this new model. Very key. How deep, uh, is it going now with the GreenLake? Can you share what's different with the relationship, I get the account deep account partner sharing, but now that green Lake's out there, you have an ecosystem. VMware has an ecosystem. Absolutely. A big one. Yeah. You know, so take >>This and is really where we're looking to improve things. So let me, let me start by saying, we've just been voted the 20, 20, uh, partner of the year, uh, here with HPE this week. And that news is out there and, uh, was issued a couple of days ago, which is fantastic for the two companies and shows the direction where we are now and where we're looking to go forward. I think there's a lot of work to be done behind the scenes. As we emerge as an independent company, there's a lot of work to be done behind the scenes on how we look at our broader ecosystem and certainly our largest OEMs of which, you know, HPE, as Roco said, 20 years of great partnership there, the next stage is how do we really get the teams equipped and plug into GreenLake? Um, you know, we've had a relationship very well known with Dell for the last, you know, for the last five years, we've grown that business at an amazing rate. We've got a whole bunch of personnel still working on, on those areas. We're in a position now where we can sort of redeploy some of those, um, over some of the headcount to really drive our mission here with our other partners. And certainly with HPE, >>Well, the integration piece that you guys have co co-engineering on that's well documented. Yeah. But with the ecosystem specifically, this is a net new thing for GreenLake and frankly, us analysts. And we had IDC on yesterday. We're looking at that as a benchmark, we're gonna be measuring GreenLake success by how well the ecosystem is so correct. Welcome to the party, VMware and HPE. That is it. You didn't have to have that big ecosystem cuz you had the channel, your HP had a strong channel mm-hmm <affirmative> but now it's an ecosystem game. Talk about that. >>Customers have that expectation, right? And if you think about what we've built, we've got an ecosystem we re we, um, announced Mar the marketplace for GreenLake right now, VMware has their own marketplace, but by standardizing on their technology in our private cloud enterprise, which was also announced here at discover, which is deeply rooted with VMware technology in it, we now are able to take advantage of their marketplace. Plus all the others that we're bringing into GreenLake and effectively solve for the customer's most complex business problems. Because if you want to be successful, you have to think that the world is open and hybrid. And that means partnerships with everybody mm-hmm <affirmative> you can't think I won't partner because they're a competitor or they may have a product that competes with me. It starts and ends with what the customer wants and needs and solving for that business objective. That means partnering well. >>Well you guys have, you know, they're they own the operator it ops. Yeah. I would say ops op side, clearly mm-hmm <affirmative>. And with the cloud native momentum that VMware has and what you guys have been doing, I just see a nice fit there. What are some of the customers say? I mean, what's some of the, what's the, what's the market telling you with GreenLake and VMware? What's the number one thing people love? Well, >>Just, just look at GreenLake at its core. And the very simplistic pays your grow model, right? The hardware doesn't grow without software. You don't scale the hardware or scale it back without software. And so what are we doing in within GreenLake? We're taking the VMware stack and we're scaling it with the hardware up and down for customers. They no longer have to worry about the balancing act between how much infrastructure I have to buy. How much software do I have to marry up to it? Are they outta sync? Right? We're solving that together for our customers. That's what they want at, at a very simplistic view, right? Then they say, Hey, give me the life cycle management of this platform, right? I don't wanna have to spend it cost operations, have employees dealing with very rudimentary life cycle management and the toil that it comes with. That's a big cost element when customers are creating snowflakes, mm-hmm <affirmative> in their it operations, they're adding cost. And what we're doing through this partnership, what we're doing with private cloud enterprise is eliminating that toil and, and helping optimize that operating mind >>You're simplifying. Oh, absolutely. >>So I wanna standardizing there a little bit as well. Right? So that, that's a, a great point and BRCA has made several there, but the next stage for us and what we've been talking about a lot this week is how do we sort of standardize what are the three or four things that customers are gonna recognize this partnership for? You know, be that, um, anywhere workspace be that multi-cloud, what are the three or four things that we can say, Hey, these two companies together are fantastic. And how do you then security get up and yeah. Security, security. Yeah. How do you then get that up and running in a green lake environment, but also on the back end, ensure that your operations are seamless and it's a great customer experience. >>So Ricky, that and Roco, I want to, uh, rewind two clicks back in the context of standards in the partner conversation, the ecosystem conversation, are you at a point where you can cuz you're basically saying you can cross pollinate the ecosystems and the partnerships. Yeah. But you got different, you know, business practices, different legal contracts and so forth. Are you able to create standardization at that layer within the partners beyond just YouTube within your respective ecosystems? Is that it sounds like that's a really difficult challenge, but it could deliver customer benefit in terms of reducing >>Friction. Absolutely. It does. And that's what we've gotta work towards. So right now operation wise, contract wise, that's exactly what we're here working through. It's not easy, but the teams are all fully behind it and that's the Nirvana for us is to be in that >>Position. Well, and, and what I really like where we are in this partnership at, in a point in time, VMware is spun off from Dell. If there's any confusion by our customer base, that VMware is going to not only work with us as they've done traditionally, but maybe get closer and not worry about this standardization, this approach, this ecosystem of players. I mean, you know, Ricky and I talked about this, like this only gets better. Yeah. Because of that. >>Yeah. The market dynamics are your friend right now. I think, yeah. That's definitely the case and the history is key, but the technical trends that we had an earlier panel on here, uh, with the technologists coming together, mm-hmm, <affirmative>, there's big changes happening. The edge is exploding rapidly accelerating with machine learning. You're seeing it ops turn into ML ops mm-hmm <affirmative>, you're starting to see the edged industrial edge explode, um, even into space. So like you have technology shifts. Yeah. And IDC pointed out that the B2B growth trends, even it spend, you want even call it, it spend or cloud spend or cloud ops is still up to the right. Yeah. Even during recession. >>And that is where all the opportunity is. So, you know, not just focusing on what we do today, let's think outside the box, we're doing some great things together, you know, in the, in the AI space and we've Invidia and between the two teams, some amazing things are happening and we've just gotta continue that. But focus is gonna be essential in the early stages to make sure you've got two or three things built out very well. And then the rest of the business that's already happening out there between the two companies is a bit more programmatic. >>Yeah. It's interesting. The V the VMware relationship with the hyperscale. I know we've covered, uh, the AWS announcement like six years ago. I forget what it was, Dave, four 60 years. Ragoo was there with Andy Ja, pat Gelsinger and, and, uh, all the top dogs there, but that's just Amazon. It's still the VMware instances on the cloud there. Yeah. The customers we're hearing here at GreenLake is that they want the single pain in cloud hate. They use that term. It's kind of an old term. That's kind of what we're seeing. They >>Still want it because nobody's giving it to 'em. >>So this, and then outpost, which is launched four years ago, kind of not working well for Amazon because EKS and open standards and, and other hardware platforms, which is essentially hardware mm-hmm <affirmative>, which is not Amazon's game. And they're, although they do great hardware in the cloud, but they're not, they're not hardware people >>Wait. So you're talking about like the public cloud guys trying to get into the edge, but look, the world is hybrid in no point, in instance, in time, do I ever believe that Azure will be able to control AWS nor GCP versus place versa? Right? And then this idea that you can go from the outside in is interesting, but where data's created, where the applications are, where the digital and the analog world meet as at the edge and for our customers, they're creating transactions and data at the edge. Mm-hmm, <affirmative>, that's where the control plane should start not in the public. And so, given that, and working with VMware, we're able to say where the data lives, where the application is sitting, where the digital transformation is happening. It's from the inside out that you provide a standard operating model across all your clouds, right? They're never gonna be able to give that to you unless you're a hundred percent in their cloud, including what they do at the edge. What we're doing with GreenLake is saying, we're giving you that edge to colo, to core data center, to public cloud operating model, that you're not having multiple snowflakes of an operating model for each one of those clouds. And VMware is at the core of that. >>And it's a global model. And Ricky, I'm guessing from your, what I would call an accent that you weren't born in America. Correct. I know where this Yankee fan was. >>Yeah. >>That's a >>Don't pin Yankee fan on the >>That's fan. Yeah. Okay. So despite 1986 we'll >>So >>I wanted to ask if, how you're able to take these standards overseas. Um, and because of course, you know, you know, well, John, as do I, different countries of different, different projects, governance issues, are you able to take this to make this a global? >>Absolutely. And, and the work I was talking about within Nvidia and HP is a great example because we've gone the other way. It's coming from Asia, where we've set up some best practice in the work that they're doing there, and it's coming across into Europe and coming across into the us. So it's all about finding, you know, finding the right solutions that we were talking about earlier. What's going to work, building out, investing that's something. I think that we we've missed a trick on, you know, through, through the past sort of four or five years, VMware really leaning in and really holding a hand here of HPE. The team were a huge team, turned up to the, to, to this event from all over the world. They're here demonstrating exactly what you're talking about, the standards with Nvidia, that message. And then you take that and make sure that it's not a snowflake just happening in Asia. You're bringing it across the world and, and you're getting the, you know, the impetus and the, uh, push behind that. >>You say, snowflake, I think of snowflake. We just covered their event too. Yeah. Yeah. Not snowflake and snowflake. Um, um, but final question as we wrap up, um, we got world converted to now called VMware Explorer. Yeah. So we're gonna be there again on the floor, two sets with the cube, um, that's changing. What can we expect to see from the relationship? What's the scorecard gonna look like? What, what's the metrics you guys are measuring yourselves on and what can customers expect from the HPE, um, VMware next level relationship partnership? >>Uh, for me, it's very simple. We measure our success based on the customer response. Are we solving for what they want us to be solving for? And that will prove itself out in how we're solutioning for them, the feedback that they give us and this discover event in terms of what we've released, the announcements between private cloud enterprise, the marketplace, um, what we're doing with this relationship since the Dell spinoff, the feedback has been amazing. Amazing, great. And I am thankful, thankful for the partnership. >>Awesome. Wrap way to bring us home Rocko. Thank you for that. And thank you, Ricky, for coming on the great, great >>Job you guys been great. Thank you. Thank you. >>Thanks very much. All right. And thank you for watching this, Dave Valante for John furrier day three of HPE, discover 2022. You're watching the cube, the leader in live enterprise and emerging tech coverage. We'll be right back.

>> Announcer: From Berlin, Germany, it's the CUBE covering Dataworks Summit Europe 2018. Brought to you by Hortonworks. >> Welcome to the CUBE, we're here at Dataworks Summit 2018 in Berlin. I'm James Kobielus. I am the lead analyst for big data analytics on the Wikibon team of SiliconANGLE Media On the CUBE, we extract the signal from the noise and here at Dataworks Summit, the signal is big data analytics and increasingly the imperative for many enterprises is compliance with GDPR, the General Data Protection Regulation comes in five weeks, May 25th. There's more things going on so what I'm going to be doing today for the next 20 minutes or so is from Hortonworks I have Abhas Ricky who is the director of strategy and innovation. He helps customers, and he'll explain what he does, but at a high level, he helps customers to identify the value of investments in big data, analytics, big data platforms in their business. And Abhas, how do you justify the value of compliance with GDPR. I guess, the value would be avoid penalties for noncompliance, right? Can you do it as an upside as well? Is there an upside in terms of if you make an investment, and you probably will need to make an investment to comply, Can you turn this around as a strategic asset, possibly? Yeah, so I'll take a step back first. >> James: Like a big data catalog and so forth. >> Yeah, so if you look at the value part which you said, it's interesting that you mentioned it. So there's a study which was done by McKinsey which said that only 15% of executives can understand what is the value of a digital initiative, let alone big data initiative. >> James: Yeah. >> Similarly, Gardner says that if you look at the various portraits and if you look at various issues, the fundamental thing which executives struggle with identifying the value which they will get. So that is where I pitch in. That is where I come in and do a data perspective. Now if you look at GDPR specifically, one of the things that we believe, and I've done multiple blogs around that and webinars, GDPR should be treated at a business opportunity because of the fact that -- >> James: Any opportunity? Business opportunity. It shouldn't necessarily be seen as a compliance burden on costs or your balance sheets because of the fact, it is the one single opportunity which allows you to clean up your data supply chain. It allows you to look at your data assets with a holistic view, and if you create a transparent data supply chain, and your IT systems talk to each other. So some of the provisions, as you know, in addition to right to content, right to portability, etc. It is also privacy by design which says that you have to be proactive in defining your IT systems and architecture. It's not necessarily reactive. But guess what? If you're able to do that, you will see the benefits in other use cases like single view of customer or fraud or anti-money laundering because at the end of the day, all GDPR is allowing you to say is that where do you store your data, what's the lineage, what's the provenance? Can you identify what the personally identifiable information is for any particular customer? And can you use that to your effect as you go forward? So it's a great opportunity because to be able to comply with the provisions, you've got to take steps before that which is essentially streamlining your data operations which obviously will have a domino effect on the efficiency of other use cases. So I believe it's a business opportunity. >> Right, now part of that opportunity in terms of getting your arms around what data you have, when the GDPR is concerned, the customer has a right to withhold consent for you and the enterprise that holds that data to use that personal data of theirs which they own for various and sundry reasons. Many enterprises and many of Hortonworks customers are using their big data for things like AI and machine learning. Won't this compliance with GDPR limit their ability to seize the opportunity to build deep learning and so forth? What are customers saying about that? Is that going to be kind of a downer or a chilling effect on their investments in AI and so forth? >> So there's two elements around it. The first thing which you said, there are customers, there's machine learning in AI, yes, there are. But broadly speaking, before you're able to do machine learning and AI, you need to get your data sets onto a particular platform in a particular fashion, clean data, otherwise, you can't do AI or machine learning on top of it. >> James: Right. So the reason why I say it's an opportunity is that because you're being forced by compliance to get that data from every other place onto this platform. So obviously those capabilities will get enhanced. Having said, I do agree if I'm an organization which does targeting, retargeting of customers based on multiple segmentations and then one of the things is online advertisements. In that case, yes, your ability might get affected, but I don't think you'll get prohibited. And that affected time span will be only small because you just adapt. So the good thing about machine learning and AI is that you don't create rules, you don't create manual rules. They pick up the rules based on the patterns and how the data sets have been performing. So obviously once you have created those structures in place, initially, yes, you'll have to make an investment to alter your programs of work. However, going forward, it will be even better. Because guess what? You just cleaned your entire data supply chain. So that's how I would see that, yes, a lot of companies, ecommerce you do targeting and retargeting based on the customer DNA, based on their shopping profiles, based on their shopping ad libs and then based off that, you give them the next best offer or whatever. So, yes, that might get affected initially, but that's not because GDPR is there or not. That's just because you're changing your program software. You're changing the fundamental way by which you're sourcing the data, the way they are coming from and which data can you use. But once you have tags against each of those attributes, once you have access controls, once you know exactly which customer attributes you can touch and you cannot for the purposes, do you have consent or not, your life's even better. The AI tools or the machine learning algorithms will learn from themselves. >> Right, so essentially, once you have a tight ship in terms of managing your data in line with the GDPR strictures and so forth, it sounds like what you're saying is that it gives you as an enterprise the confidence and assurance that if you want to use that data and need to use that data, you know exactly how you've the processes in place to gain the necessary consents from customers. So there won't be any nasty surprises later on of customers complaining because you've got legal procedures for getting the consent and that's great. You know, one of the things, Abhas, we're hearing right now in terms of compliance requirements that are coming along, maybe not apart of GDPR directly yet, but related to it is the whole notion of algorithmic transparency. As you build machine learning models and these machine learning models are driven into working applications, being able to transparently identify if those models make, in particular, let's say autonomous action based on particular data and particular variables, and then there is some nasty consequences like crashing an autonomous vehicle, the ability, they call it explicably AI to roll that back and determine who's liable for that event. Does Hortonworks have any capability within your portfolio to enable more transparency into the algorithmic underpinnings of a given decision? Is that something that you enable in your solutions or that your partner IBM enables through DSX and so forth? Give us a sense whether that's a capability currently that you guys offer and whether that's something in terms of your understand, are customers asking for that yet or is that too futuristic? >> So I would say that it's a two-part question. >> James: Yeah. >> The first one, yes, there are multiple regulations coming in, like Vilica Financial Markets, there's Mid Fair, the BCBS, etc. and organizations have to comply. You've got the IFRS which span to brokers, the insurance, etc., etc. So, yes, a lot of organizations across industries are getting affected by compliance use cases. Where does Hortonworks come into the picture is to be able to be compliant from a data standpoint, A you need to be able to identify which of those data sources you need to implement a particular use case. B you need to get them to a certain point whereby you can do analytics on that And then there's the whole storage and processing and all of that. But also which you might have heard at the keynote today, from a cloud perspective, it's starting to get more and more complex because everyone's moving to the cloud which means, if you look at any large multi-national organization, most of them have a hybrid cloud structure because they work with two or three cloud vendors which makes the process even more complex because now you have multiple clusters, you have have on premise and you have multiple different IT systems who need to talk to each other. Which is where the Hortonworks data plan services come into the picture because it gives you a unified view of your global data assets. >> James: Yes. >> Think of it like a single pane of glass which whereby you can do security and governance across all data assets. So from those angles, yes, we definitely enable those use cases which will help with compliance. >> Making the case to the customer for a big data catalog along the lines of what you guys offer, in making the case, there's a lot of upfront data architectural work that needs to be done to get all you data assets into shape within the context of the catalog. How do they justify making that expense in terms of hiring the people, the data architects and so forth needed to put it all in shape. I mean, how long does it take before you can really stand up in your working data catalog in most companies? >> So again, you've asked two questions. First of all is how do they justify it? Which is where we say that the platform is a means to an end. It's enabling you to deliver use cases. So I look at it in terms of five key value drivers. Either it's a risk reduction or it's a cost reduction or it's a cost avoidance. >> James: Okay. >> Or it's a revenue optimization, or it's time to market. Against each one of these value drivers, or multiple of them or a combination of them, each of the use cases that you're delivering on the platform will lead you to benefits around that. My job, obviously, is to work with the customers and executes to understand what will that be to quantify the potential impact which will then form the basis and give my customer champions enough ammunition so that they can go back and justify those investments. >> James: Abhas, we're going to have to cut it short, but I'm going to let you finish your point here, but we have to end this segment so go ahead. >> That's fine. >> Okay, well, anyway, have had Abhas Ricky who is the director of strategy and innovation at Hortonworks. We're here at Dataworks Summit Berlin. And thank you very much Sorry to cut it short, but we have to move to the next guest. >> No worries, pleasure, thank you very much. >> Take care, have a good one. >> Thanks a lot, yes. (upbeat music)

>>Welcome back to HPD discovered 2021. The virtual edition. My name is Dave Volonte and you're watching the cube. We're here with Omar assad is the vice president GM of H P S H C I and primary storage and data management business. And Sandeep Singh was the vice president of marketing for HP storage division. Welcome gents. Great to see you. >>Great to be here. Dave, >>It's a pleasure to be here today. >>Hey, so uh, last month you guys, you made a big announcement and and now you're, you know, shining the spotlight on that here at discover Cindy. Maybe you can give us a quick recap, what do we need to know? >>Yeah, Dave. We announced that we're expanding HB Green Lake by transforming HB storage to a cloud native software defined data services business. We unveiled a new vision for data that accelerates data, dream of transformation for our customers. Uh and it introduced a and we introduced the data services platform that consists of two game changing innovations are first announcement was Data services cloud console. It's a SAS based console that delivers the cut operational agility and it's designed to unify data operations through a suite of cloud data services. Our 2nd announcement is HPE. Electra. It's cloud native data infrastructure to power your data edge to cloud. And it's managed natively with data services cloud console to bring that cloud operational model to our customers wherever their data lives together with the data services platform. Hp Green Green Lake brings that cloud experience to our customers data across edge and on premises environment and lays the foundation for our customers to shift from managing storage to managing data. >>Well, I think it lays the foundation for the next decade. You know, when we entered this past decade, we we were Ricky bobby's terms like software led that that sort of morphed into. So the software defined data center containers with kubernetes, Let's zoom out for a minute. If we can homer maybe you could describe the problems that you're trying to address with this announcement. >>Thanks dave. It's always a pleasure talking to you on these topics. So in my role as general manager for primary storage, I speak with the hundreds of customers across the board and I consistently hear that data is at the heart of what our customers are doing and they're looking for a data driven transformative approach to their business. But as they engage on these things, there are two challenges that they consistently faced. The first one is that managing storage at scale Is rife with complexity. So while storage has gotten faster in the last 20 years, managing a single array or maybe two or three arrays has gotten simpler over time. But managing storage at scale when you deploy fleet. So storage as customers continue to gather, store and lifecycle that data. This process is extremely frustrating for customers. Still I. T. Administrators are firefighting, they're unable to innovate for their business because now data spans all the way from edge to corridor cloud. And then with the advent of public cloud there's another dimension of multi cloud that has been added to their data sprawl. And then secondly what what we what we consistently hear is that idea administrators need to shift from managing storage to managing data. What this basically means is that I. D. Has a desire to mobilize, protect and provision data seamlessly across its lifecycle and across the locations that it is stored at. Uh This ensures that I. D. Leaders uh and also people within the organization understand the context of the data that they store and they operate upon. Yet data management is an extremely big challenge and it is a web of fragmented data silos across processes across infrastructure all the way from test and dev to administration uh to production uh to back up to lifecycle data management. Uh And so up till now data management was tied up with storage management and this needs to change for our customers especially with the diversity of the application workloads as they're growing and as customers are expanding their footprint across a multi cloud environment >>just to add to almost uh response there. We recently conducted a survey that was actually done by E. S. She. Um and that was a survey of IT. decision makers. And it's interesting what it showcased, 93% of the respondents indicated that storage and data management complexity is impeding their digital transformation. 95% of the respondents indicated that solving storage and data management complexity is a top 10 business initiative for them and 94% want to bring the cloud experience on premises, >>you know, al china. And I think as you guys move to the sort of software world and container world affinity to developers homer, you talked about, you know, things like data protection and we talk about security being bolted on all the time. Now. It's designed in it's it's done at sort of the point of creation, not as an afterthought. And that's a big change that we see coming. Uh But let's talk about, you know, what also needs to change as customers make the move from this idea of managing storage to to managing data or maybe you can take that one. >>That's a that's a that's a very interesting problem. Right. What are the things that have to be true in order for us to move into this new data management model? So, dave one of the things that the public cloud got right is the cloud operational model uh which sets the standard for agility and a fast pace for our customers in a classic I. T. On prime model, if you ever wanted to stand up an application or if you were thinking about standing up a particular workload, uh you're going to file a series of I. T. Tickets and then you're at the mercy of whatever complex processes exist within organization and and depending on what the level of approvals are within a particular organization, standing up a workload can take days, weeks or even months in certain cases. So what cloud did was they brought that level of simplicity for someone that wanted to instead she ate an app. This means that the provisioning of underlying infrastructure that makes that workload possible needs to be reduced to minutes from days and weeks. But so what we are intending to do over here is to bring the best of both worlds together so that the cloud experience can be experienced everywhere with ease and simplicity and the customers don't need to change their operating model. So it's blending the two together. And that's what we are trying to usher in into this new era where we start to differentiate between data management and storage management as two independent things. >>Great, thank you for that. Omer sometimes I wonder if you could share with the audience, you know, the vision that you guys unveiled, What does it look like? How are you making it actually substantive and and real? >>Yeah. Dave. That's also great question. Um across the board it's time to reimagine data management. Everything that homer shared. Those challenges are leading to customers needing to break down the silos and complexity that plagues these distributed data environments. And our vision is to deliver a new data experience that helps customers unleash the power of data. We call this vision unified data jobs, Unified Data Ops integrates data centric policies to streamline data management, cloud native control to bring the cloud operational model to where customers data labs and a I driven insights to make the infrastructure invisible. It delivers a new data experience to simplify and bring that agility of cloud to data infrastructure. Streamline data management and help customers innovate faster than ever before. We're making the promise of Unified Data Ops Real by transforming Hve storage to a cloud native software defined data services business and introducing a data services platform that expands Hve Green Lake. >>I mean, you know, you talk about the complexity, I see, I look at it as you kind of almost embracing the complexity saying, look, it's gonna keep getting more complex as the cloud expands to the edge on prem Cross cloud, it gets more complex underneath. What you're doing is you're almost embracing that complexity and putting a layer over it and hiding that complexity from from the end customer that and so they can spend their time doing other things over. I wonder if you can maybe talk a little bit more about the data services console, Is it sort of another software layer to manage infrastructure? What exactly is it? >>It's a lot more than that, Dave and you're you're 100% right. It's basically we're attempting in this release to attack that complexity head on. So simply put data services. Cloud console is a SAS based console that delivers cloud operational model and cloud operational agility uh to our customers. It unifies data operations through a series of cloud data services that are delivered on top of this console to our customers in a continuous innovation stream. Uh And what we have done is going back to the point that I made earlier separating storage and data management and putting the strong suites of each of those together into the SAS delivered console for our customers. So what we have done is we have separated data and infrastructure management away from physical hardware to provide a comprehensive and a unified approach to managing data and infrastructure wherever it lives. From a customer's perspective, it could be at the edge, it could be in a coal. Oh, it could be in their data center or it could be a bunch of data services that are deployed within the public cloud. So now our customers with data services. Cloud console can manage the entire life cycle of their data from all the way from deployment, upgrading and optimizing it uh from a single console from anywhere in the world. Uh This console is designed to streamline data management with cloud data services that enable access to data. It allows for policy-based data protection, it allows for an organizational wide search on top of your storage assets. And we deliver basically a 360° visibility to all your data from a single console that the customer can experience from anywhere. So, so if you look at the journey the way we're deciding to deliver this. So the first, in its first incarnation, uh Data services, Cloud console gives you infrastructure and cloud data services to start to do data management along with that. But this is that foundation that we are placing in front of our customers, the SAS console, through which we get touch our customers on a daily basis. And now as our customers get access to the SAAS platform on the back end, we will continue to roll in additional services throughout the years on a true SAS based innovation base for our customers. And and these services can will be will be ranging all the way from data protection to multiple out data management, all the way to visibility all the way to understanding the context of your data as it's stored across your enterprise. And in addition to that, we're offering a consistent revised unified Api which allows for our customers to build automation against their storage infrastructure. Without ever worrying about that. As infrastructure changes, uh, the A. P I proof points are going to break for them. That is never going to happen because they are going to be programming to a single SAS based aPI interface from now on. >>Right. And that brings in this idea of infrastructure as code because you talk about as a service to talk about Green Lake and and my question is always okay. Tell me what's behind that. And if and if and if and if you're talking about boxes and and widgets, that's a it's a problem. And you're not, you're talking about services and A P. I. S and microservices and that's really the future model and infrastructure is code and ultimately data as code is really part of that. So, All right. So you guys, I know some of your branding folks, you guys give deep thought to this. So the second part of the announcement is the new product brands and deep maybe you can talk about that a little bit. >>Sure. Ultimately delivering the cloud operational model requires cognitive data infrastructure and that has been engineered to be natively managed from the cloud. And that's why we have also introduced H. P. E. Electra. Omar, Can you perhaps described HB electro even more. >>Absolutely. Thank you. Sandy. Uh, so with with HB Electoral we're launching a new brand of cloud native hardware infrastructure to power our customers data all the way from edge to the core to the cloud. The releases are smaller models for the edge then at the same time having models for the data center and then expanding those services into the public cloud as well. Right. All these hardware devices, Electoral hardware devices are cloud native and powered by our data services. Cloud Council, we're announcing two models with this launch H. P. E Electoral 9000. Uh, this is for our mission critical workloads. It has its history and bases in H P E. Primera. It comes with 100% availability guarantee. Uh It's the first of its type in the industry. It comes with standard support contract, no special verb is required. And then we're also launching HB Electoral 6000. Uh These are based in our history of uh nimble storage systems. Uh These these are for business critical applications, especially for that mid range of the storage market, optimizing price, performance and efficiency. Both of these systems are full envy any storage powered by our timeless capabilities with data in place upgrades. And then they both deliver a unified infrastructure and data management experience through the data services, cloud console. Uh And and and at the back end unified Ai Ops experience with H P. E. Info site is seamlessly blended in along with the offering for our >>customers. So this is what I was talking about before. It's sort of not your grandfather's storage business anymore. This is this is this is something that is part of that, that unified vision, that layer that I talked about, the A. P. I. Is the program ability. So you're you're reaching into new territory here. Maybe you can give us an example of how the customers experience what that looks like. >>Excellent. Love to Dave. So essentially what we're doing is we're changing the storage experience to a true cloud operational model for our customers. These recent announcements that we just went through along with, indeed they expand the cloud experience that our customers get with storage as a service with HP Green Lake. So a couple of examples to make this real. So the first of all is simplified deployment. Uh So I t no longer has to go through complex startup and deployment processes. Now all you need to do is these systems shipped and delivered to the customer's data center. Operational staff just need to rack and stack and then leave connect the power cable, connect the network cable. And the job is done. From that point onwards, data services console takes over where you can onboard these systems, you can provision these systems if you have a pre existing organization wide security as well as standard profile setup in data services console, we can automatically apply those on your behalf and bring these systems online. From a customer's perspective, they can be anywhere in the world to onboard these systems, they could be driving in a car, they could be sitting on a beach. Uh And and you know, these systems are automatically on boarded through this cloud operational model which is delivered through the SAAS application for our customers. Another big example. All that I'd like to shed light on is intent based provisioning. Uh So Dave typically provisioning a workload within a data center is an extremely spreadsheet driven trial and error kind of a task. Which system do I land it on? Uh Is my existing sl is going to be affected which systems that loaded which systems are loaded enough that I put this additional workload on it and the performance doesn't take. All of these decisions are trial and error on a constant basis with cloud Data services console along with the electron new systems that are constantly in a loop back information feeding uh Typical analytics to the console. All you need to do is to describe the type of the workload and the intent of the workload in terms of block size S. L. A. That you would like to experience at that point. Data services console consults with intra site at the back end. We run through thousands of data points that are constantly being given to us by your fleet and we come back with a few recommendations. You can accept the recommendation and at that time we go ahead and fully deploy this workload on your behalf or you can specify a particular system and then people try to enforce the S. L. A. On that system. So it completely eliminates the guesswork and the planning that you have to do in this regard. Uh And last but not the least. Uh You know, one of the most important things is, you know, upgrades has been a huge problem for our customers. Uh And typically oftentimes when you're not in this constant, you know, loop back communication with your customers. It often is a big challenge to identify which release or which bug fix or which update goes on to which particular machine, all of that has been completely taken away from our customers and fully automated. Uh We run thousands of signatures across are installed base. We identify which upgrades need to be curated for which machines in a fleet for a particular customer. And then if it applies to that customer we presented, and if the customer accepts it, we automatically go ahead and upgrade the system and and and last, but not the least from a global management perspective. Now, a customer has an independent data view of their data estate, independent from a storage estate and data services. Council can blend the two to give a consistent view or you can just look at the fleet view or the data view. >>It's kind of the holy Grail. I mean I've been in this business a long time and I think I. T. People have dreamt about you know this kind of capability for for a long long time. I wonder if we could sort of stay on the customers for a moment here and and talk about what's enabled. Now. Everybody's talking digital transformation. I joke about the joke. Not funny. The force marched to digital with Covid. Uh and we really wasn't planned for but the customers really want to drive now that digital transfer some of them are on the back burner and now they're moving to the front burner. What are the outcomes that are that are enabled here? Omar. >>Excellent. So so on on a typical basis for a traditional I. T. Customer this cloud operational model means that you know information technology staff can move a lot faster and they can be a lot more productive on the things that are directly relevant to their business. They can get up to 99% of the savings back to spend more time on strategic projects or best of all spend time with their families rather than managing and upgrading infrastructure and fleets of infrastructure. Right for line of business owners, the new experience means that their data infrastructure can be presented can be provision where the self service on demand type of capability. Uh They necessarily don't have to be in the data center to be able to make those decisions. Capacity management, performance management, all of that is died in and presented to them wherever they are easy to consume. SaS based models and especially for data innovators, whether it's D B A s, whether it's data analysts, they can start to consume infrastructure and ultimately data as a code to speed up their app development because again, the context that we're bringing forward is the context of data decoupling it from. Actually, storage management, storage management and data management are now two separate domains that can be presented through a single console to tie the end to end picture for a customer. But at the end of the day, what we have felt is that customers really, really want to rely and move forward with the data management and leave infrastructure management to machine oriented task, which we have completely automated on their behalf. >>So I'm sure you've heard you got the memo about, you know, H H p going all in on as a service. Uh it is clear that the companies all in. How does this announcement fit in to that overall mission? Cindy >>dave We believe the future is edge to cloud and our mission is to be the edge to cloud platform as a service company and as as HB transforms HP Green Lake is our unified cloud platform. Hp Green Link is how we deliver cloud services and agile cloud experiences to customers applications and data across the edge to cloud. With the storage announcement that we made recently, we announced that we're expanding HB Green Lake with as a service transformation of the HPV storage business to a cloud native software defined data services business. And this expands storage as a service, delivering full cloud experience to our customers data across edge and on prem environment across the board were committed to being a strategic partner for every one of our customers and helping them accelerate their digital transformation. >>Yeah, that's where the puck is going guys. Hey as always great conversation with with our friends from HP storage. Thanks so much for the collaboration and congratulations on the announcements and and I know you're not done yet. >>Thanks. Dave. Thanks. Dave. >>Thanks. Dave. It's a pleasure to be here. >>You're very welcome. And thank you for being with us for hp. You discovered 2021 you're watching the cube, the leader digital check coverage. Keep it right there, but right back. >>Yeah. Yeah.

>> Narrator: From around the globe, it's theCUBE with digital coverage of Actifio Data Driven 2020, brought to you by Actifio. >> Hi everybody this is Dave Vellante, full of preview of Actifio Data Driven, and with me is Brian Reagan who is a long time cube alumni, good friend. Brian, awesome to see you thanks for coming on and help us set up Data Driven >> Dave it's always a pleasure to be here, thanks for having me. >> So this is one of our favorite events of the season, not only because it's historically been in Boston, but it's a really good intimate event, lot of customer content. Unfortunately this year, of course everything has gone virtual but tell us about that, what do you guys got planned for Data Driven this year? >> Well again we're delighted to be able to put the show on, in spite of all of the challenges of travel and face to face. As you know from years past, Data Driven has always been sort of by the customers for the customers, very much an event that is driven around understanding how customers are using data strategically, and how Actifio is helping them do that to power their businesses. This year is no different, I think what we've done is we've taken the best of the physical events, which is really facilitating fireside chats and panels of people using our technology to move the business forward with data, but also added a lot of things that frankly are impossible to do when you're strained by a physical event, which is be able to run a series of on demand technical sessions. Our technical tracks are always standing room only, so now we can offer more content, more discreet package content that can be consumed the day of the event and on for a year plus after the event. So we're excited to really sort of mix the best of both worlds virtual and the forums that have worked so well for us in the physical events. >> Well it's like I said I mean, lots of these events are sort of vendor fests, but what you do with Data Driven is you bring in the customer's voice. And I remember last year in theCUBE, we had Holly st. Clair who was with the state of Massachusetts, she was awesome. We had a guest from DraftKings, which was really, really tremendous. Of course, you see what's happening with those guys now just exploding. >> Exactly. >> But we also had a lot of fun, when of course Ash comes on, and all the Actifio folk, but we had Frank Gens on, the first and only time we've ever had him on theCUBE, he's now retired from IDC, I guess semiretired. We had Duplessie on, which was a lot of fun. So it's just a good vibe. >> Yeah, we made a conscious decision to your point not to avoid the traditional vendor fest, and bludgeoning people with PowerPoint throughout the day, and really wanted to make it spin it around, and have the customers tell their stories in their own words, and really talk about the themes that are both common, in terms of challenges, ways that they've addressed those challenges, but also dig into the real implications of when they do solve these challenges, what are the unintended consequences? It's sort of like the... In a lot of ways I think about the journey that customers went through with VMware and with the ability to spin up VMs effortlessly, was a fantastic first step, and then all of a sudden they realized they had all of these spun up Vms that were consuming resources that they didn't necessarily had thought about at the very beginning. I think that our customers as they progress through their journey with Actifio, once they realize the power of being able to access data and deliver data, no matter how big it is, in any form factor in any cloud, there's incredible power there, but there also comes with that a real need to make sure that the governance and controls and management systems are in place to properly deliver that. Particularly today when everything is distributed, everything is essentially at arms length, so that's part of the fun of these events is really being able to hear all of the ways these unique customers are, adding value, delivering value, gaining value, from the platform. >> What's it's interesting you mentioned VMs, it was like life changing when you saw your first VM get spun up and you're like, wow, this is unbelievable, and then it was so easy to spin up. and then you just save VM creep and copy creep. >> Right. >> And you're seeing some similar things now with cloud I mean example is the cloud data warehouses is so easy to spin those things up now. The CFOs are looking at the bill going Whoa, what are we doing here? >> (laughs) >> You're going to see the same thing >> Exactly. >> with containers as you begin to persist containers, you're going to have the same problem. So you guys created the category, it's always a marketing executives dreams to be able to create a category. You guys created the Copy Data Management category, and of course, you've extended that. But that was really good, it was something that you guys set forth and then all the analysts picked up on it, people now use that as a term and it kind of resonates with everybody. >> Right, right. It was bittersweet but also very satisfying to start to see other vendors come out with their own Copy Data Management offerings, and so yes the validating that in fact this is a real problem in the enterprise continues to be a real problem in the enterprise, and by using technologies that Actifio really pioneered and patented quite a bit of foundational technologies around, we're able to help customers address those copy data challenges, those spiraling costs of managing all of these duplicate, physical instances of data. And to your point, to some degree when you're on-prem in a data center and you've already bought your storage array. Okay, I'm consuming 20% more of the Ray or 100% more of the array than I really need to be, but I've already paid for the array. When it comes to cloud, those bills are adding up hourly, daily, weekly, monthly, and those are real costs, and so in many ways cloud is actually highlighting the power and frankly the problem of copy data, far more than the on-prem phenomenon ever did. >> Yeah I was on the phone with a former CIO, COO now of a healthcare organization, and he was saying to me there's a dark side of CapEx to OPEX, which is now that he's a COO he's like really concerned about the income statement and the variability of those costs, and so to your point I mean it's a big issue, the convenience seems to be outweighing some of that concern but nonetheless lack of predictability is a real concern there. >> Absolutely, absolutely. And I think we see that... You mentioned data lakes, and whether you call it a data lake or you just call it a massive data instance, one of the speakers of Data Driven this year is a customer of our Century Data Systems down in Florida. And they have 120 terabyte database that actually they're using, and this is an incredible story that we're excited to have them share with the world during Data Driven. They're using it to help the federal government get better data faster on COVID treatments and the efficacy of those treatments, and so to even consider being able to rapidly access and manage 120 terabyte instance. It breaks the laws of physics frankly. But again with Copy Data Management, we have the ability to help them really extend and really enhance their business and ultimately enhance the data flows that are hopefully going to accelerate the access to a vaccine for us in North American and worldwide, quite frankly. >> That's awesome, that's awesome. Now let's talk a little bit more about Data Driven what we can expect. Of course, the last couple of years you've been the host of Data Driven. They pulled a Ricky gervais' on you >> (Laughs loudly) like get the golden gloves, he's no longer being invited to host, but I think probably for different reasons, but what are some the major themes that we can expect this year? >> Yeah, we were disappointed that we couldn't get Tina Fey and Amy Poehler. >> (laughs quietly) I think we decided that in a virtual construct, the host duties were pretty amenable. So among the many things I talked about Sentry Data Systems and we have many customers who are going to be joining us and telling their stories. And again from accelerating data analytics to accelerating DevOps initiatives, to accelerating a move to the cloud, we're going to hear all of those different use cases described. One of the things that is different this year and we're really excited. Gene Kim sort of the author and noted DevOps guru, author of The Phoenix Project and The Unicorn Project, he's going to be joining us. We had previously intended to do a road show with Gene this year and obviously those plans got changed a bit. So really excited to have him join us, talk about his point of view around DevOps. Certainly it's a hugely important use case for us, really important for many of our customers, and actually registrant's between now and the event, which is September 15th and 16th, we'll get an eCopy an e-book copy of his Unicorn Project book. So we're eager to have people register and if they haven't already read him then I think they're going to be really pleasantly surprised to see how accessible his materials are, and yet how meaningful and how powerful they can be in terms of articulating the journeys that many of these businesses are going through. >> Yeah, I'm glad you brought that up. I'm stucked I have not read that material, but I've heard a lot about it, and when I signed up I saw that, said great I'm going to get the free book. So I'm going to check that out, >> Yeah It's obviously a very, very hot topic. Well Brian, I really appreciate you coming on, and setting up the event. What are the details? So where do I go to sign up? When is the event? What's the format? Give us the lowdown. >> It is September 15th and 16th, actifio.com will guide you through the registration process. You'll be able to create the event based on the content that you're eager to participate in. And again not only on the 15th and 16th, but then into the future, you'll be able to go back and re access or access content that you didn't have the time to do during the event window. So we're really excited to be able to offer that as an important part of the event. >> Fantastic and of course theCUBE will be there doing its normal wall to wall coverage. Of course, this time virtual, and you'll see us on social media with all the clips and all the work on Silicon Angle. So Brian great to see you and we will see you online in September. >> Thanks, Dave. >> All right, and thank you. Go to actifio.com, sign up register for Data Driven, this is Dave Vellante for theCUBE, we'll see you next time. (upbeat music)

live from Las Vegas it's the cube covering Dell technologies world 2019 to you by Dell technologies and its ecosystem partners welcome back everyone to the cubes live coverage of Dell technologies world 2019 here in Las Vegas at the sands Expo I'm your host Rebecca night along with my co-host do minimun we are joined by Steve Nolan he is the lead product manager private cloud at CenturyLink thank you so much for coming and direct from st. Louis Missouri thank you thanks for having me today so let's start by having you tell our viewers a little bit about CenturyLink ok centrelink is a very large carrier international with our recent acquisition of level 3 we have a little over 500,000 fiber optic miles belong to us we're wired into over a hundred thousand buildings globally across approximately 60 countries connected into over 300 data centers so that's kind of our telecom network story I actually work within a division of essentially that handles managed hosting products it's through an acquisition they did a number of years ago called a company called sabes where we now have about 20 years a little over 20 years and managed hosting services to customers in the business and there's been a lot of news this week at Dell technologies world and you your CenturyLink had a big announcement just this morning yes we just released a press release on a two-prong option we've been working on for about six months now it's for a private cloud product that I manage that I released actually a year and a half ago we just added it now Dell options for that product based on the Dell PowerEdge six are 640 server and that of course we did that to be able to expand options and choices for our customers to UM open up the opportunities to those situations where we weren't able to get into before so we're very excited about it so it's it's new it's it's exciting it's of course a great great platform very very amazing technology so Steve that the term private cloud you know is it's almost about 15 years old now but there were many years that we didn't all agree as to what private cloud should be you know I run article recently about hybrid cloud and you know even hybrid cloud was basically like oh I had private cloud and public cloud and a bunch of pieces and I put them together and like well the hybrid multi-cloud stories were hearing this mean many of their shows very different we're trying to get our heart around this so you know I'm familiar with Savas you know I've seen century like many times at vmworld so bring us inside that private cloud it tell us a little bit about you know what you've been seeing in the environment some of those key use cases to what customers are doing and and how this is different than you know the virtualized environments of the past certainly so so what we've been seeing happen in the industry and and it's some and you go back a number of years a few years well to the cloud and you have six people what does cloud me and you get six definitions right but what we've seen is that there's this huge move towards public cloud over the last number years the hyper cloud all-day activity we see plenty of it and there's been challenges associated that you don't find out day one you find out over time certain things that were challenged to work with and in a public cloud type of scenario customers at you know what I still want to hold on to some infrastructure and what we're seeing now also do what private cloud is it is a an infrastructure there's a hum percent dedicated to one client and a story all of that infrastructure belongs to one one one company one entity it is not shared nothing is shared that is true private cloud and so that's what what I manage for our company is our private cloud products we're and we've we have one that's been with us not for about 15 years it's on VMware we're a large VMware shop where a hundred percent VMware today we've been working with VMware for I think a total 15 years a little over 15 years and the various types of products and solutions and platforms we work with them for a year and a half to be able to create our new private cloud product that is a hyper conversion infrastructure software fine networking based on VMware's VMware cloud foundation software suite right so that's where the movements are and and what's happening with this now a we want to go into kind of what's happening in the industry in the world is the way that you built infrastructure historically right as you build your compute your network your storage and your security those are the four minimum columns of which technology you need for a solution and then you connect it all together it's some by four different groups for different subject matter expert groups and and it can be very time-consuming to piece all that together now we roll into this hyper-converged world and you just give me a stack of servers that have some cpu some RAM some disks and I layer on some very well designed and architected software like some VMware Cloud Foundation and I define everything from one interface through software it makes of the ability for enterprise customers to be able to move a much faster or making change to the environment I can spin up a firewall in minutes a several a balancer a router that's very powerful compared to how it was done in the past so Steve one of the years expertise I know CenturyLink has is on the networking side of it's something we've heard Dell talking about their networking and how that's expanding the HCI market today and as well as if you talk about that hybrid or multi cloud environment networking is a critical component things like an ST when put into so can you help you know where does that those those pieces fit into your environment where we see that that going and is these are it's a common theme and that we've been talking through a little over a year now and this this topic of milliseconds matter is the edge and so that's where it's really evolving to and that's what we're working towards as well so so one of the things we're doing with our products is moving in our products out to them the data centers many more data centers what we've done in the past and then taking that a step further we go to edge computing because of our telecom expertise and experience and our thousands of points of presence we can put those systems into a pop if you would we can put those systems of course on customer Prem getting the response times down to just a few milliseconds which is critical to business's response times delivery companies or various comers where that that's important to the middle of stiffens milliseconds matters because it saves them money because they're very able to be more responsive to their customers that's exactly what I want to drill into a little bit you say milliseconds matter which is which is absolutely true and you're talking about how customers feel this need to move so much faster and we know about the breakneck speed of technological change can you give us a real business impact I mean as you said this this really is game-changing for so many companies can you just give us an example of a customer you're working with and how this really the ROI on the stuff yeah okay so we're working with some shipping companies who of course they've got the little responders when they delivered the package they have hundreds maybe as many as a few thousand locations they want to be able to put that data right neck in those locations so that the response on that package gets that information faster they they get closure on that they are able to bill faster they're able to move on to the next item faster provide the information to their customers faster those are the real live examples that we're seeing with the Middlesex and spanner type of scenario we actually did a demo of this at vmworld last year we just give an example where and we did a test of going across the internet and then going across a dedicated circuit and we painted us one page one screen and it took a second going across the internet and it took a half a second to go across the dedicated circuit and so it's like will you take that one page and it's the thousands of pages that one of your employees goes through in a day and then multiply it by your thousands of ploys that's not where we're adding up to cost savings more efficiencies of your employees when they can get that information faster all right so one of the important areas here is that is the management piece so we can understand your partnering deeply with VMware is it primarily the V realized suite for from management tooling anything what's what's special about the CenturyLink offering so relative to my product offering is in the private cloud we actually have because here's the situation customers don't just have one cloud we all know the true story is it's it's not about public or private it's about both it's not about one cloud or one other cloud is about many and so we actually through an acquisition we had done we created a product called cloud application manager it's a multi cloud management product that is designed today to support from one interface I can have a W us as your Google my private cloud product we call the centrally private cloud on VMware cloud foundation our public cloud product all from one interface I can manage my workloads I can monitor the oasis we will manage a monitor those OS as an application for the customer Larrin will be call our managed services anywhere a methodology - for customers that want that management to provide that for them right so it's it's really about it being able to take all those different environments in that hybrid IT solution the vast majority of enterprise folks either have one or are stuck with right and be able to trim it down to singular interfaces to be able to support them how closely are you working with customers on the actual implementation onboarding of these new technologies and making sure that employees are also really onboard with these things so well first of all when we work through solutions with our customers we don't just say here pick this from a menu and so we sit down and design for them so so we're very specific in how we've designed our products to where we actually allow over a thousand configuration options so we want that you have to right-size the infrastructure that's what you start that's the foundation your right size that infrastructure for your work environment for what it is that you're trying to accomplish and you allow flexibility to be able to grow it and so we have flexibility to be able to have RAM or storage to those systems or add more systems give the flexibility to grow as you need to grow whatever but it is you want to push it's growing on you fine so so that's where we start with this in that design aspect of this and that's how we solution all of our mana Hosting sub products great well Steve you started this conversation at cube Ricky you're ending a cube alum so thanks so much for coming on the show well thank you for having us having me all right appreciate it I'm Rebecca Nightforce - minimun we will have much more of the cubes live coverage of Dell technologies world coming up in just a little bit

from Yorktown Heights New York it's the queue coverings IBM cloud innovation be brought to you by IBM hi I'm Peter Burris and we have wrapped our the cubes coverage of IBM innovation day here at the Thomas J Watson Research Center in Yorktown Heights now for anybody that's been in the industry for a while you know that this is one of the mecca's of the computing industry this is where an enormous number of innovations have taken place innovations about relating to semiconductor processes and you know CPU architectures innovations relating to middleware and innovations relating to database management and very importantly innovations relating to how customers and companies engage to be more successful with technology and in many respects that's really what's happening with the overall drive to cloud is to bring closer together that invention that takes place and pushes forward what technology can do and then a delivery model that's focused on ensuring the customers can actually more easily do it and IBM is absolutely part of that conversation we'll be going forward especially as we think about how those high-value legacy applications are going to be employed within a cloud context to further drive transaction capabilities with event capabilities in the cloud we've had some great conversations we've heard for example from Hilary hunter who's a CTO here at cloud infrastructure about the new role that opend plays within innovation how IBM is trying to further leverage that with the Red Hat acquisition we've had great conversations with Jason McGee talking about how the developer mindsets evolving in response to some new innovations with cloud we've heard from a number of other individuals I won't list them all but if I were trying to summarize the three points that I think kept coming through it's number one the cloud does force changes to the way you think about business problems and methods tooling and approaches for doing that are starting to mature very rapidly Micro services for an example for example is not just a technology it's also an approach to thinking about a problem and that informs everything I did the second thing that we've heard is that can't just talk about greenfield applications we've had this enormous investment in applications have been running businesses for a long time of those applications tend to be very stateful they tend to be very database driven they tend to be very operational in nature those applications have to move forward if nothing more from at least from a management standpoint how can we bring a management mindset an operating model of the cloud to start to channel or structure change and evolve how we manage those applications but ultimately bring new classes of services to those applications I think the last one that we've heard over and over and over it that this really is gonna require a strong community we have to take a community approach to invention you have to take a community approach to innovation and the social change is required to take advantage of technology and achieve the business outcomes that we want and if one thing has come through loud and clear through all the conversations is that that this year IBM think or I didn't think 2019 San Francisco is gonna be a great place to be able to get together with peers and have those conversations and think about the outcomes that enterprises want to achieve and then talk to people that can actually help you get there and one of the things that I find interesting about think this year is that the industry's changing we're seeing new rules or evolution of roles and an evolution of how those roles work together and think is actually starting to reflect that it's manifesting itself itself there's a couple of campuses one that's focused more on data and AI a very very natural binding or combining and one that's focused more on infrastructure and cloud again very natural so I hope to see be able to carry on and continue these conversations we've had today at IBM think and hope to see you there as well so once again this is Peter Burris Ricky bond the cube from the IBM from the from the illustrious from the vaunted Thomas J Watson Research Center in Yorktown Heights thanks very much for watching the cube today [Music]

>> From the Hard Rock Hotel in Las Vegas, it's theCUBE! Covering HoshoCon 2018! Brought to you by Hosho. >> Okay, welcome back everyone, we're here live in Las Vegas for the first security blockchain conference's inaugural event, HoshoCon, and it's all about the top brains in the industry coming together, with experience and tech chops to figure out the future in security. I'm John Furrier, the host of theCUBE. Our next guest, Andre McGregor, who's the partner and head of global security for TLDR. Welcome to theCUBE, thanks for joining me. >> Thank you for having me. >> So you have a background, we were just talking off-camera, FBI, you've been doing the cyber for a long time, cyber-security, mostly enterprise-grade, large-scale. Now we're in crypto, where you have small set of teams, running massive scale, with money involved. >> Correct. So guess what, money attracts. >> Right. People who want it, want that money. Lot of hacks, $400 million in Japan, plus 60 million over here, you add it all up, there's a billion so far this year, who knows what really the number is, it's pretty big. >> It is, and what's concerning and the reason why I came over in this space was the number of hacks that were happening. My company, we get probably a call a week, whether it's high net worth individuals, CEO, exchanges, we've helped a couple, some that you'd know of if I told you who they were, trying to get out of a very bad situation. And interim response has been big, but what we've learned is that it's the same old fraud, the same old security tactics that are being used against some of these crypto-companies. >> And we've seen it all the time, everyone's had fraud alerts on their credit card, this is like classic blocking and tackling, at a whole 'nother level. >> It is, because if you think about it from, like a traditional start-up, you have a company that's small, they have time to develop their MVP, they go out and do maybe a seed round, friends and family, they're sort of ramping up over time, whereas we basically flipped the model upside-down, the same six founders now have $10 million worth of crypto, and they're not protecting it in the ways they think they should, because they're in hyper-growth mode. So the bad guys have determined that as a great place to target, and now as we see in the news, it's actually happening. >> Yeah, and Hartej, the co-founder of Hosho, was just one talking about physical security, in the sense of you got to watch out where you go too now, it's not just online security, it's physical security. So start-ups have that kind of fast and loose kind of culture. >> Well, if you think about it, traditional security in corporations, I can put everyone in a building, I have this similar or same network egress points, I can protect those, I can do the gates, guards, guns, perimeters around, but I got people working from home now in the crypto space, everyone's got their own setup. If someone's in an audience, they say oh, I've been in the blockchain space since 2010 or 11, I can make assumptions about them, about their financial worth, and other people are doing the same, but having nefarious reasons. >> Yeah, you connected the dots okay, it was $0.22 in 2011, so therefore, if they had kept a little bit of Bitcoin-- >> They would be doing very well. >> They're a target. >> Therefore, they're a target now. So when you think about it, you put all those scams together, it becomes sort of a hot topic for-- >> I just got into crypto. (laughs) >> Good answer, good answer. >> Alright, so let's talk about this security hack. Because obviously, in the enterprise tech, we cover a lot of those events across the year. IoT Edge is a huge topic, cloud computing booming, so now you have a lot of compute, which is good, and for bad actors too. So you have now a service area that's now, no perimeter, there's no egress points to manage. Is there a digital way to kind of map this out, and does blockchain give us any advantages or is there anything on the horizon that you see, where we can, in digital form? >> Well, I mean the true reason I came to the blockchain space, having worked hundreds of victim notifications and several dozen actual intrusions, from large intrusions at banks that are top five in the world, all the way down to small core defense contractors, you realize it's always a server you didn't know about, credentials that had more access than they should, obviously gaining access to a centralized server, that then gets exposed and allows that data to be leaked out. So the idea of blockchain and being able to decentralize, distribute that data, own it, and keep it cryptographically pure, and also being able to essentially remove the single source of failure that we saw in a lot of these hacks is exciting. Obviously, blockchain is also not the answer to everything. So in some ways, the spread sheet is still a spread sheet, and the MongoDB will still be the MongoDB, but-- >> The post-it next to your computer, your private key on it. >> But at the same point in time, it all comes down to cyber-hygiene, right? I mean, the stuff that we're looking at, the hacks that we're seeing, the hacks that I'm dealing with and my company dealing with, day in and day out, are not sophisticated. They may be sophisticated actors, but they're using insophisticated means, and of course, I hate to harp on it, but e-mail is still the number one intrusion vector, we all have it, we all use it. You could take stats from the FBI that says 92%, you could take stats from Verizon that says 93%, but that will be the number one way in. >> And phishing is the classic attack point. >> It will always be, because-- >> It's easy. >> I can manipulate people, I find the right opportunity, I always say even I've been phished. It happens, the way your mind is, it's just how you react, is what we need to teach people. >> It's really clicking on that one thing, that just takes one time. >> Yep. >> A PDF that you think is a document from work, or potentially a job opportunity, a new thing, sports scores, your favorite team, girlfriend, boyfriend, whatever, I mean, you don't know! >> But, I'm going to challenge you on this, you get, you click on that bad link, or you feel like your computer has been hacked, who do you call? Do you actually have someone that you can call? There's no cyber 911. Unless you are a high net worth individual, or being targeted by a nation-state, you're not calling the FBI. So who do you call? And that's a problem that we have in our industry right now. I mean, I guess I've been the person that people have been calling, which is fine, I want to help them. 12 years as a firefighter on top of my FBI career, I'm used to helping people in time of need. But really, in the grand scheme of things, there's not enough Mandiants or Verizons are too big. So for these smaller, six-person companies, that don't have $500,000 to spend on instant response, they actually have no one to call when they actually do click something bad. >> And the people they punch in a call, the ones that aren't actually there to help them. Sometimes they get honey-potted into another vector. >> Sure. >> Which is hey, how can I help you? >> Or I even challenge it a bit further. You call any of these companies when your phone has been hacked, you SIM-swap, whatever it is, and you need to sign a master services agreement, you need to go through all the legalese, while you're actively being hacked. Like, it's happening hour after hour, and you're seeing it, your accounts are being compromised and being taken over, and you're trying to find outside counsel to do redline. So in emergency services, we say, don't exchange business cards at the disaster site. It's not the time that you should be saying hi, I'm introducing myself, we should figure out all the retainers, inter-response, legal questions beforehand, so that at 2:00 in the morning, someone calls, and you have someone pick up the phone. >> Yeah, and you know what the costs are going to be, 'cause it's solve the problem at hand, put out that fire, if you will. Okay, so I got to ask you a question on how do people protect themselves? 'Cause we know Michael Terpin's doing a fireside chat, it's well known that he sued AT&T, he had his phone SIM swapped out, this is a known vector in the crypto community. Most people maybe in the mainstream might not know it. But you know, your phone can be hacked. >> Yes. >> Simple two-factor authentication's not enough. >> Correct. >> What is the state-of-the-art solution for people who want to hold crypto, any meaningful amount, could be casual money, to high net worth individual wants to have a lot of crypto. >> I mean, I spent a good amount of my time talking about custody. We've sort of pivoted off to a new part of our business line, that deals specifically around institutional custody solutions, and helping people get through this particular process. But we all know, especially from that particular case, that SMS compromises, after account takeover of a phone, is high. Hardware tokens are always going to be something that I'm going to, Harp or YubiKey, or something like that, where I'm still having the ability to keep a remote adversary away from being able to attack my system that has my private keys, or whatever high-value data I have on it. But if I think about it at the end of the day, I'm going to need to transfer that risk. I would like to say that we can transfer all risk, but instead for the people that have a lot of crypto, you're going to need to look for a good custody solution, you're going to need to look and trust the team, you're going to need to look and trust the technology they have, and you're going to have to get insurance. Because there are so many vectors, in a certain point in time, we can't go back to the wild west, where we're actually >> The insider job is, is really popular now too. >> It is, but there are ways around the collusion, counterparty, third party risk of ensuring that not one person can take the billion dollars worth of crypto and run away off to Venezuela and never appear again. But again, it comes down to basic hygiene. I ask people, I've surveyed hundreds of people in the crypto space, and I ask simple questions like VPNs, and I'm still getting a third to a half of people are using VPNS. Very simple things that people are not doing. When you looks at password for example, if anyone still has a password under 12 characters, then game over. I mean, there are a variety of ways of hacking them. I can use GPU servers to do them very quickly. I won't go into all the different options that are there. People still-- >> So 12 characters, alphanumeric obviously, with-- >> With special characters as well. >> Special characters. >> But the assumption, let's just make the assumption, that either those passwords have been cracked already, because they've already been dumped, people share passwords, they get used again, and then the entropy is exponentially higher with every single character after 12. So my password's 22 characters, sure it's a pain to type it in, but when you think about it, at the end of the day, when I combine that with a password manager that also has a YubiKey that's a hardware token, and I require that access all the time, then I don't run into the problem that someone's going to compromise a single system to get into multiple systems. >> And then also, I know there's a lot of Google people as well, they're looking at security at the hardware level, down to the firmware. >> Sure, sure. >> There's all kinds of-- >> I mean, obviously, you could use the TPM chip as well, and that's something that we should be better at, as a society. >> So while I got you here, I might as well ask you about the China super micro modchip baseboard management controller, BMC, that was reported in Bloomberg, debunked, Apple and Amazon both came out and said no, that's been confirmed. They shift their story a little bit too, the reality probably there is some mods going on, it's manufactured in China. I mean, it's a zero-margin business going to zero, why not just let the Chinese continue to develop, and have a higher-value security solution somewhere else, that's what some people are discussing, like okay, like the DRAM market was. >> Yep. >> Let the Japanese own that, they did, and then Intel makes the Pentium. Wall Street Journal reported that, Andy Kessler. So the shifts in the industry, certainly China's manufacturing the devices. There's no surprise when you go to China, and if you turn on your iPhone, it says Apple would like to push an update, but that's not Apple, it's a forged certificate, pretty much public knowledge. The DNS is controlled by China, and a certificate, these are things that they can control, that's, this is the new normal. >> It, it-- >> If you know the hardware, you can exploit it. >> We've been dealing with supply-chain issues since Maxtor hard drives in Indonesia. So was I shocked when I hear stories about that? No, I'm sort of scared myself into a corner, working in skiffs over the years and reading the various reports that come out about supply chain poisoning. >> Certainly possible. >> It's happening. I mean, it's just to what extent is still something that may or may not be known to its full extent, but it's something that will happen, always happens, and will continue to happen. And so at a certain point in time, capitalism does step in and says alright, well, guess what, China, the way I see it is, China wants to be a super-power. At a certain point, they know that people are looking at them, and saying we can't trust you. So they're going to clean up their house, just like anyone else. >> It's inevitable for them. >> It is inevitable. Because they need to show that they can be a trusting force, in the world economy. And at the same time, we're going to have competition out there that's essentially going to say, alright, we can actually prove to have a much better, stronger, validated supply chain that you'll use. >> I mean, IoT and blockchain, great solutions for supply chain. >> 100%. >> I mean, so this is where-- >> I mean, we're talking, I mean, I was actually on a plane flying from Phoenix, to Santa Fe, New Mexico, and I was sitting next to a guy, who was just like, I just want to use a blockchain to be able to deal with a supply chain around compromised food. So in the sense that if you think about it, fish for example, there's a lot of fake fish, fake type of tuna and other stuff that's out there, that people don't know the difference. But the restaurants are paying double, triple the amount of money for it. You start taking things like elephant tusks, you take things like just being able to track things that no one's really thinking about, and you're just like huh, I never thought of it that way. So at the end of the day, I still get surprised with what people are thinking about, that they can do with the blockchain. >> So Andre, question for you here, this event, what's the impact of this event and for the industry, in your opinion? Obviously, a lot of smart people here talking, candidly, sometimes maybe a little bit contentious about philosophies, regulation, no regulation, self-governance, lot of different things being discussed as exploration, to a new proficiency level that we need to get to. What are some of the hallway conversations you're hearing, and involved in? >> A lot of mine are obviously around custody. That is the topic of the moment. And for me, I'm in learning mode. I recognize that I've spent a lot of time in cyber-security. However, whereas it relates to blockchain and digital asset custody, whether it's utility tokens or security tokens, I'm on the CFTC Technology Advisory Committee, specifically, with cyber-security and custody, and so I want to take in as much information as I can, bring it back to the committee, bring it back to the commissioners, and help them create the proper regulations and standards, whether it's through an SRO, or it's through the government itself. >> For the folks that may watch this video later, that are new to the area, what does custody actually mean? Obviously, holding crypto, but define custody in context of these conversations, what is it, what's the threshold issues that are being discussed? >> Sure. I mean, to break it down, custody is very similar to a bank. So you are, you're saying I have a lot of X. It could be baseball cards, it could be gold bars, it could be fiat cash. And I want to have someone hold it, and I'm going to trust them with that. Of course, I'm transferring that risk, and with that, I have an expectation to have a qualified custodian, that has rules and regulations of how they're going to actually manage it, how they're going to control it, ensure that the risk, that people aren't going to take it. It could be, again, the Monet, it could be the Johnny Bench Ricky card, it could be 100 million blocks of gold. But I also want to have a level of insurance. That insurance could come from the insurance industry themselves, and allowing me to protect it in case something does happen to that, or the government. The FDIC, $250,000 for your bank account is a type of insurance that people are using. By the end of the day, from an institutional perspective, you want a pure custodian that takes all the risk. The government wants to say a certain point, that that custodian can allow for margin call, so that the client can't come in and say, well I'm not going to pay out $100 million worth of crypto, and I'm going to seize, or seizure of funds as well. And that's what's being set up right now. Traditional banks are not ready to handle that. Traditional auditing firms, like PWC or Ernst & Young, are still trying to figure out how they'd even be given a qualified opinion, as it relates to how-- >> So it's not so much that they are not have the appetite to do it, they don't have systems, they don't have expertise, >> They don't have systems, they don't have expertise, >> They don't have workflows. >> And right now, things are so new and so volatile, that they're sort of almost putting their toe in the water, but really not sure what the temperature is yet of the water to hop in. >> If someone wants to go to court, you say hey, prove it. Well, it's encrypted, I don't know who did it. >> Well, and the thing is is that when you have 53 states and territories with different money-transmitting laws, on top of the countless federal agencies and departments that are managing that, it is hard to come to consensus. It is much easier in a place like Bermuda, where the government is small enough where everyone can get together pretty quickly, have consensus on an opinion of how they want to deal with the crypto market, deal with custody, pass a regulation, and what's nice about Bermuda is it has crown ascendancy, so the UK government still approves it. >> And they move fast on the regulation side. They literally just passed-- >> They are the only jurisdiction that has a fully complete law surrounding cryptocurrency. >> You're bullish on Bermuda. >> I am, because I saw the efficiency there. And I expressed my same opinion with the CFTC, when I was doing my hearing last week, that it's nice to see the speed, but it's also a small island that allows for that speed. >> And they have legitimate practices that have been going on for years in other industries. >> Right, so there's no dirty money, there's no anything that people are sort of concerned with, they have the same AML, KYC, anti-money laundering and know your customer regulations that you would expect if you had your money in the United States. >> Yeah, we had a chance to interview the honorable charge there. >> Premier Burt, oh very nice. >> Yeah, he's great, and Toronto, so it's awesome. >> Nice. >> Alright, so final takeaway, for this show here, what's your takeaway about this event, the impact to the industry? >> This is a very important event, because I think people are still trying to get their footing around blockchain, they're still trying to get their footing around digital asset protections. And if we can get the smart people in one room, and they can share knowledge, and then we can come together as a community, and create some standards that make sense, then we're protecting the world. >> Well Andre, I'm glad you're in the industry, 'cause your expertise and background on the commercial side and government side certainly lend well to the needs. (laughs) So to speak. We need you, we need more of you. Thanks for coming on theCUBE, really appreciate your commentary and your insight. It's theCUBE, bringing the insights here, we are live in Las Vegas for HoshoCon, I'm John Furrier with theCUBE, we'll be back with more coverage after this short break. (upbeat music)

from Las Vegas it's the queue covering VMworld 2018 brought to you by VMware and its ecosystem partners and we're back here at the Mandalay Bay in somewhat beautiful Las Vegas where we're doing third day of VMworld on the cube and on Peterborough and I'm joined by my two lead analysts here at Ricky bond with me Jim Camilo's who's looking at a lot of the software stuff David floor who's helping to drive a lot of our hardware's research guys you've spent an enormous amount of time talking to an enormous number of customers a lot of partners and we all participated in the Analyst Day on Monday let me give you my first impressions and I want to ask you guys some questions here you thought so I have it this is you know my third I guess VMworld in or in a row and and my impression is that this has been the most coherent of the VM worlds I've seen you can tell when a company's going through a transition because they're reaching to try to bring a story together and that sets the tone but this one hot calendar did a phenomenal job of setting up the story it makes sense it's coherent possibly because it aligns so well with what we think is going to happen in the industry so I want to ask you guys based on three days of one around and talking to customers David foyer what's been the high point what have you found is the most interesting thing well I think the most interesting thing is the excitement that there is over VMware if you if you contrast that with a two three years ago the degree of commitment of customers to viennois the degree of integration they're wanting to make the degree rate of change and ideas that have come out of VMware it's like two different companies totally different companies some of the highlights for me were the RDS the bringing from AWS to on site as well as on the AWS cloud RDS capabilities I think that's a very very interesting thing that's the relational database is services the Maria DB and all the other services that's a very exciting thing to me and a hint to me that AWS is going to have to get serious about well Moore's gone out I think it's a really interesting point that after a lot of conversations with a lot of folks saying all AWS it's all going to go up to the cloud and wondering whether that also is a one-way street for VMware Casta Moore's right but now we're seeing it's much more of a bilateral relationship it's a moving it to the right place and that's the second thing the embracing of multi-cloud by everybody one cloud is not going to do everything they're going to be SAS clouds they're going to be multiple places where people are gonna put certain workloads because that's the best strategic fit for it and the acceptance in the marketplace that that is where it's going to go I think that again is a major change so hybrid cloud and multi cloud environments and then the third thing is I think the richness of the ecosystem is amazing the the going on the floor and the number of people that have come to talk to us with new ideas really fascinating ideas is something I haven't seen at all for the last last three four years and so I'm gonna come back to you on that but it goes back to the first point that you make that yeah there is a palpable excitement here about VMware that two-three years ago the conversation was how much longer is the franchise gonna be around Jim but now it's clear yeah it's gonna be around Jim how about you yeah actually I'm like you guys I'm a newbie to VM world this is my very first remember I'm a big data analyst I'm a data science an AI guy but obviously I've been aware of VMware and I've had many contacts with them over the years my take away my prime and I like Pat Gail singers I agree with you Peter they're really coherent take and I like that phrase even though it sounds clucking impact kind of apologize they are the dial tone to the multi-cloud if the surgery really gives you a strong sense or who else can you character is in this whole market space cloud computing has essentially a multi cloud provider who provide the unifying virtualization glue to help their custom to help customers who are investing in an AWS and maybe in a bit of you know you're adopting Google and Microsoft Azure and so forth providing a virtualization layer that's the above server virtualization network virtualization VDI all the way to the edge nobody can put it all is putting it all together and quite the way that VMware is one of the my chief takeaways is similar to David's which is that in terms of the notion of a hybrid cloud VMware with its whole what's it's doing with RDS but also projects like this project dimension which is in project in progress taking essentially the entire VMware virtualization stack and putting it onto an appliance for deployment on the edges and then for them to manage it VMware of this their plans as an end-to-end managed edge cloud service and so forth Wow the blurring of public and private cloud I don't even think the term hybrid cloud applies it's just a blurry the common cloud yeah it's moving to the workload the clouds moving to the data which is exactly what we say they are halfway there in terms of that vision halfway in a sense that RDS has been announced the you know on the VMware and this project dimension they're well along with that if there was a briefings for the analyst space I'm really impressed for how they're architecting this I think they've got a shot to really dominate well I'll tell you so I would agree with you just to maybe provide a slightly different version of one of the things you said I definitely agree I think what's VMware hopes to do and I think they're not alone is to have AWS look like an appliance to their console to have as you look like an appliance of their Khan so through free em where you can get access to whatever services you need including your VMware machines your VMs inside those clouds but that increasingly their their goal is to be that control point that management point for all of these different resources that are building and it is very compelling I think that there's one area that I still think we need more from as analysts and we always got to look through no and what's yeah what was more required and I hear what you say about project dimension but I think that the edge story still requires a fair amount of work oh yeah it's a project in place but that's going to be an increasingly important locus of how architectures get laid out how people think about applications in the future how design happens how methodologies for building software work David what do you think what when you look out what what is what what is more is needed for you so really I think there are two things that give me a small concern the the edge that's a long term view so they got time to get that right but the edge view is very much an IT view top-down and they are looking to put in place everything that they think the OT people should fit in with I think that is personally not going to be a winning strategy you you have to take it from the bottom up the world is going to go towards devices very rich devices and sensors lots of software right on that device the inference work on those devices and the job of IT will be to integrate those devices it won't be those devices taking on the standards of IT it'll be IT that has to shape itself to look after all those devices there so that's a that's the main viewpoint I think that needs adjustment and it will come I'm sure over time but as you said there's a lot of computer science it's going to be an enormous amount of new partnerships are gonna be fabricate exactly to make this happen Jim what do you think yeah I agree terms of partnerships one big gap from both VMware and Dell technologies partnerships and romance and technology proposes AI now they have a project VMware call from another project called project Magna which is really AI ops in fact I published a wiki about reports this week on AI ops AI to drive IT Service Management and to and they're doing some stuff they're working on that project it's just you know the beginning stages I think what's going to happen is that vmware dell technologies they're gonna have to make strategic acquisitions of AI solution providers to build up that capability because that's going to be fundamental to their ability to manage this complex multi called fabric from end to end continuously they need that competency internally that can't be simply a partner providing that that's got to be their core competencies so you know I'm gonna push it I'll give you the contrarian point of view okay we actually had Khamsin VMware we've had a lot of conversations about this does that is that a reflection of David's point about top-down buying things and pushing it down as opposed to other conversations we've had about how the edge is going to evolve where a lot of OT guys are going to combine with business expertise and technology expertise to create specialized solutions and is and then VMware is gonna have to reach out to them and make VMware relevant to them do you think it's going to be VMware buying a bunch of stuff or an a-grade no solution or is it going to be the solutions coming from elsewhere and VM at VMware I just becoming more relevant to them now you can still be buying a bunch of stuff to get that horizontal in place but which way you think it's going to go I think it's gonna be the top-down they're gonna buy stuff because if I talk to the channel one of the channel people this morning about well you know but they've got an IOT connected bundle and so forth they announced this show you know I think they agree with me that the core AI technology needs to be built into the fundamentals like the IOT stack bundle that they then provide to the channel partners for with you know with channel specific content that they can then tweak and customize to their specific needs but you know the core requirements for a I are horizontal you know it's the ability to run neural networks to do predictive analysis anomaly detection and so forth this is all cross-cutting across all domains it has to be in the core application stack they can't be simply something they source for particular channel opportunities it has to be leveraged across you know the same core tensorflow models for anomaly detection for manufacturing for logistics for you know customer relationship management whatever it's or are you saying essentially that then VMware becomes that horizontal play even though even if the solution providers are increasingly close to the actual action where the edges III I'm gonna disagree we can gently on that but we'd still be friends [Music] no it's you know I'm I'm an OT guy of hearth I suppose and I think that that is going to be a stronger force in terms of VMware but there will be some places where you it will be top-down but other places that where it's going to be need needed to adjust but I think there's one other there very interesting area I'd like to bring up in terms of of this question of acquisition what what we heard about beforehand was excellent results and VMware has been adding a you know a billion dollars a year in terms of free cash there and they have thirteen billion in short term cash there and the the refinancing from Dell is gonna take eleven of that thirteen and put it towards the towards the the company now you can work towards deltek yes well just Dell Dell as a hold and and silver later towards those partners I I personally believe that there is such a lot of opportunity that's going to be out there if you take NSX for example it has the potential to do things in new areas they're gonna need to provide solutions in those new areas and aggressively go after those new areas and that's going to mean big investments and many other areas where I think they are going to need acquisitions to strengthen the whole story they have the whole multi-cloud story about this real-time operating system in a sexy has a network routing virtualization backplane I mean it needs to go real-time so sensitive guaranteed ladies if they need that big investments guarantee yeah they need to go there yeah so what we're agreeing on that and I get concerned that it's not going to be given the right resources you know to be able to actually go after the opportunities that they have genuinely created it's gonna mean from you see how that plays out so I think all drugs in the future I think saying though is that there is going to be a solution a set of solution players that VMware is going to have to make significant moves to make them relevant and then the question is where it's the values story what's the value proposition it's probably gonna be like all partnerships yeah some are gonna claim that they are doing it also some are gonna DM where it's gonna claim that they do more of it but at the end of the day VMware has to make themself relevant to the edge however that happens I want to pick up on NSX because I'm a pretty big believer that NSX may be the very special crown jewel and a lot of the stuff this notion of hybrid cloud whatever we call it let's just call it extended cloud let me talk of a better word like it is predicated on the idea that I also have a network that can naturally and easily not just bridge but truly multi network interoperate internet work with a lot of different cloud sources but also all different cloud locations and there's not a lot of technologies out there that are great candidates to do that and it's and I look at NSX and I'm wondering is that gonna be kind of a I want to take the metaphor too far but is that gonna be kind of a new tcp/ip for the cloud in the sense that you're still gonna run over tcp/ip and you're still gonna run over the Internet but now we're gonna get greater visibility into jobs into workloads into management infrastructures into data locations and data placement predictive movement and NSX is going to be the at the vanguard of showing how that's gonna work and the security side of that especially to be able to know what is connected to what and what shouldn't be connected to what and to be able to have that yeah they need stateful structured streaming others Kafka flink whatever they need that to be baked into the whole nsx virtualization layer that much more programmable and that provides that much better a target for applications all right last question then we got a wrap guys David as you walk out the door get in the plane what are you taking away what's your last impression my last impression is one of genuine excitement wanting to work wanting to follow up with so many of the smaller organizations the partners that have been here and who are genuinely providing in this ecosystem a very rich tapestry of of capability that's great Jim my takeaway is I want to see their roadmap for kubernetes and serverless there wasn't a hole last year they made an announcement of a serverless project I forgot what the code name is didn't hear a whole lot about it this year but they're going up the app stack they got a coop you know distribution you know they're if they need a developer story I mean developers are building functional apps and so forth you know you can and they're also containerized they need they need a developer story and they need a server list story and they need to you need to bring us up to speed on where they're going in that regard because AWS their predominant partner I mean they got lambda functions and all that stuff you know that's that's the development platform of the present and future and I'm not hearing an intersection of that story with VMware's a story yeah my last thing that I'll say is that I think that for the next five years VMware is gonna be one of the companies that shapes the future of the cloud and I don't think we would have said that a couple of names no they wouldn't I agree with you so you said yes all right so this has been the wiki bond research leadership team talking about what we've heard at VMware this year VMworld this year a lot of great conversation feel free to reach out to us and if you want to spend more time with rookie bond love to have you once again Peter burrows for David floor and Jim Kabila's thank you very much for watching the cube we'll talk to you again [Music]

>> From San Jose, in the heart of Silicon Valley, it's theCube. Covering DataWorks Summit 2018. Brought to you by Hortonworks. (upbeat music) >> Welcome back to theCUBE's live coverage of Data Works here in sunny San Jose, California. I'm your host Rebecca Knight along with my co-host James Kobielus. We're joined by Pandit Prasad. He is the analytics, projects, strategy, and management at IBM Analytics. Thanks so much for coming on the show. >> Thanks Rebecca, glad to be here. >> So, why don't you just start out by telling our viewers a little bit about what you do in terms of in relationship with the Horton Works relationship and the other parts of your job. >> Sure, as you said I am in Offering Management, which is also known as Product Management for IBM, manage the big data portfolio from an IBM perspective. I was also working with Hortonworks on developing this relationship, nurturing that relationship, so it's been a year since the Northsys partnership. We announced this partnership exactly last year at the same conference. And now it's been a year, so this year has been a journey and aligning the two portfolios together. Right, so Hortonworks had HDP HDF. IBM also had similar products, so we have for example, Big Sequel, Hortonworks has Hive, so how Hive and Big Sequel align together. IBM has a Data Science Experience, where does that come into the picture on top of HDP, so it means before this partnership if you look into the market, it has been you sell Hadoop, you sell a sequel engine, you sell Data Science. So what this year has given us is more of a solution sell. Now with this partnership we go to the customers and say here is NTN experience for you. You start with Hadoop, you put more analytics on top of it, you then bring Big Sequel for complex queries and federation visualization stories and then finally you put Data Science on top of it, so it gives you a complete NTN solution, the NTN experience for getting the value out of the data. >> Now IBM a few years back released a Watson data platform for team data science with DSX, data science experience, as one of the tools for data scientists. Is Watson data platform still the core, I call it dev ops for data science and maybe that's the wrong term, that IBM provides to market or is there sort of a broader dev ops frame work within which IBM goes to market these tools? >> Sure, Watson data platform one year ago was more of a cloud platform and it had many components of it and now we are getting a lot of components on to the (mumbles) and data science experience is one part of it, so data science experience... >> So Watson analytics as well for subject matter experts and so forth. >> Yes. And again Watson has a whole suit of side business based offerings, data science experience is more of a a particular aspect of the focus, specifically on the data science and that's been now available on PRAM and now we are building this arm from stack, so we have HDP, HDF, Big Sequel, Data Science Experience and we are working towards adding more and more to that portfolio. >> Well you have a broader reference architecture and a stack of solutions AI and power and so for more of the deep learning development. In your relationship with Hortonworks, are they reselling more of those tools into their customer base to supplement, extend what they already resell DSX or is that outside of the scope of the relationship? >> No it is all part of the relationship, these three have been the core of what we announced last year and then there are other solutions. We have the whole governance solution right, so again it goes back to the partnership HDP brings with it Atlas. IBM has a whole suite of governance portfolio including the governance catalog. How do you expand the story from being a Hadoop-centric story to an enterprise data-like story, and then now we are taking that to the cloud that's what Truata is all about. Rob Thomas came out with a blog yesterday morning talking about Truata. If you look at it is nothing but a governed data-link hosted offering, if you want to simplify it. That's one way to look at it caters to the GDPR requirements as well. >> For GDPR for the IBM Hortonworks partnership is the lead solution for GDPR compliance, is it Hortonworks Data Steward Studio or is it any number of solutions that IBM already has for data governance and curation, or is it a combination of all of that in terms of what you, as partners, propose to customers for soup to nuts GDPR compliance? Give me a sense for... >> It is a combination of all of those so it has a HDP, its has HDF, it has Big Sequel, it has Data Science Experience, it had IBM governance catalog, it has IBM data quality and it has a bunch of security products, like Gaurdium and it has some new IBM proprietary components that are very specific towards data (cough drowns out speaker) and how do you deal with the personal data and sensitive personal data as classified by GDPR. I'm supposed to query some high level information but I'm not allowed to query deep into the personal information so how do you blog those queries, how do you understand those, these are not necessarily part of Data Steward Studio. These are some of the proprietary components that are thrown into the mix by IBM. >> One of the requirements that is not often talked about under GDPR, Ricky of Formworks got in to it a little bit in his presentation, was the notion that the requirement that if you are using an UE citizen's PII to drive algorithmic outcomes, that they have the right to full transparency. It's the algorithmic decision paths that were taken. I remember IBM had a tool under the Watson brand that wraps up a narrative of that sort. Is that something that IBM still, it was called Watson Curator a few years back, is that a solution that IBM still offers, because I'm getting a sense right now that Hortonworks has a specific solution, not to say that they may not be working on it, that addresses that side of GDPR, do you know what I'm referring to there? >> I'm not aware of something from the Hortonworks side beyond the Data Steward Studio, which offers basically identification of what some of the... >> Data lineage as opposed to model lineage. It's a subtle distinction. >> It can identify some of the personal information and maybe provide a way to tag it and hence, mask it, but the Truata offering is the one that is bringing some new research assets, after GDPR guidelines became clear and then they got into they are full of how do we cater to those requirements. These are relatively new proprietary components, they are not even being productized, that's why I am calling them proprietary components that are going in to this hosting service. >> IBM's got a big portfolio so I'll understand if you guys are still working out what position. Rebecca go ahead. >> I just wanted to ask you about this new era of GDPR. The last Hortonworks conference was sort of before it came into effect and now we're in this new era. How would you say companies are reacting? Are they in the right space for it, in the sense of they're really still understand the ripple effects and how it's all going to play out? How would you describe your interactions with companies in terms of how they're dealing with these new requirements? >> They are still trying to understand the requirements and interpret the requirements coming to terms with what that really means. For example I met with a customer and they are a multi-national company. They have data centers across different geos and they asked me, I have somebody from Asia trying to query the data so that the query should go to Europe, but the query processing should not happen in Asia, the query processing all should happen in Europe, and only the output of the query should be sent back to Asia. You won't be able to think in these terms before the GDPR guidance era. >> Right, exceedingly complicated. >> Decoupling storage from processing enables those kinds of fairly complex scenarios for compliance purposes. >> It's not just about the access to data, now you are getting into where the processing happens were the results are getting displayed, so we are getting... >> Severe penalties for not doing that so your customers need to keep up. There was announcement at this show at Dataworks 2018 of an IBM Hortonwokrs solution. IBM post-analytics with with Hortonworks. I wonder if you could speak a little bit about that, Pandit, in terms of what's provided, it's a subscription service? If you could tell us what subset of IBM's analytics portfolio is hosted for Hortonwork's customers? >> Sure, was you said, it is a a hosted offering. Initially we are starting of as base offering with three products, it will have HDP, Big Sequel, IBM DB2 Big Sequel and DSX, Data Science Experience. Those are the three solutions, again as I said, it is hosted on IBM Cloud, so customers have a choice of different configurations they can choose, whether it be VMs or bare metal. I should say this is probably the only offering, as of today, that offers bare metal configuration in the cloud. >> It's geared to data scientist developers and machine-learning models will build the models and train them in IBM Cloud, but in a hosted HDP in IBM Cloud. Is that correct? >> Yeah, I would rephrase that a little bit. There are several different offerings on the cloud today and we can think about them as you said for ad-hoc or ephemeral workloads, also geared towards low cost. You think about this offering as taking your on PRAM data center experience directly onto the cloud. It is geared towards very high performance. The hardware and the software they are all configured, optimized for providing high performance, not necessarily for ad-hoc workloads, or ephemeral workloads, they are capable of handling massive workloads, on sitcky workloads, not meant for I turned this massive performance computing power for a couple of hours and then switched them off, but rather, I'm going to run these massive workloads as if it is located in my data center, that's number one. It comes with the complete set of HDP. If you think about it there are currently in the cloud you have Hive and Hbase, the sequel engines and the stories separate, security is optional, governance is optional. This comes with the whole enchilada. It has security and governance all baked in. It provides the option to use Big Sequel, because once you get on Hadoop, the next experience is I want to run complex workloads. I want to run federated queries across Hadoop as well as other data storage. How do I handle those, and then it comes with Data Science Experience also configured for best performance and integrated together. As a part of this partnership, I mentioned earlier, that we have progress towards providing this story of an NTN solution. The next steps of that are, yeah I can say that it's an NTN solution but are the product's look and feel as if they are one solution. That's what we are getting into and I have featured some of those integrations. For example Big Sequel, IBM product, we have been working on baking it very closely with HDP. It can be deployed through Morey, it is integrated with Atlas and Granger for security. We are improving the integrations with Atlas for governance. >> Say you're building a Spark machine learning model inside a DSX on HDP within IH (mumbles) IBM hosting with Hortonworks on HDP 3.0, can you then containerize that machine learning Sparks and then deploy into an edge scenario? >> Sure, first was Big Sequel, the next one was DSX. DSX is integrated with HDP as well. We can run DSX workloads on HDP before, but what we have done now is, if you want to run the DSX workloads, I want to run a Python workload, I need to have Python libraries on all the nodes that I want to deploy. Suppose you are running a big cluster, 500 cluster. I need to have Python libraries on all 500 nodes and I need to maintain the versioning of it. If I upgrade the versions then I need to go and upgrade and make sure all of them are perfectly aligned. >> In this first version will you be able build a Spark model and a Tesorflow model and containerize them and deploy them. >> Yes. >> Across a multi-cloud and orchestrate them with Kubernetes to do all that meshing, is that a capability now or planned for the future within this portfolio? >> Yeah, we have that capability demonstrated in the pedestal today, so that is a new one integration. We can run virtual, we call it virtual Python environment. DSX can containerize it and run data that's foreclosed in the HDP cluster. Now we are making use of both the data in the cluster, as well as the infrastructure of the cluster itself for running the workloads. >> In terms of the layers stacked, is also incorporating the IBM distributed deep-learning technology that you've recently announced? Which I think is highly differentiated, because deep learning is increasingly become a set of capabilities that are across a distributed mesh playing together as is they're one unified application. Is that a capability now in this solution, or will it be in the near future? DPL distributed deep learning? >> No, we have not yet. >> I know that's on the AI power platform currently, gotcha. >> It's what we'll be talking about at next year's conference. >> That's definitely on the roadmap. We are starting with the base configuration of bare metals and VM configuration, next one is, depending on how the customers react to it, definitely we're thinking about bare metal with GPUs optimized for Tensorflow workloads. >> Exciting, we'll be tuned in the coming months and years I'm sure you guys will have that. >> Pandit, thank you so much for coming on theCUBE. We appreciate it. I'm Rebecca Knight for James Kobielus. We will have, more from theCUBE's live coverage of Dataworks, just after this.

(upbeat music) >> Welcome to this special CUBEConversation here in the Palo Alto CUBE studio. I'm John Furrier, the co-host, theCUBE co-founder of SiliconANGLE Media. In theCUBE we're here with Alan Cohen, CUBE alumni, joining us today for a special segment on the future of technology and the impact to society. Always good to get Alan's commentary, he's the Chief Commercial Officer for Illumio, industry veteran, has been through many waves of innovation and now more than ever, this next wave of technology and the democratization of the global world is upon us. We're seeing signals out there like cryptocurrency and blockchain and bitcoin to the disruption of industries from media and entertainment, biotech among others. Technology is not just a corner industry, it's now pervasive and it's having some significant impacts and you're seeing that in the news whether it's Facebook trying to figure out who they are from a data standpoint to across the board every company. Alan, great to see you. >> Always great to be here, I always feel like, I can't tell whether I'm at the big desk at ESPN or I've got the desk chair at CNBC, but that's what it's like being on theCUBE. >> Great to have you on extracting the signal noises, a ton of noise out there, but one of things of the most important stories that we're tracking is, that's becoming very obvious, and you're seeing it everywhere from Meed to all aspects of technology. Is the impact of technology to people in society, okay you're seeing the election, we all know what that is, that's now a front and center in the big global conversation, the Russian's role of hacking, the weaponizing of data, Facebook's taking huge brand hits on that, to emerging startups, and the startup game that we're used to in Silicon Valley is changing. Just the dynamics, I mean cryptocurrency raises billions of dollars but yet (laughs) something like 10, 20% of it's been hacked and stolen. It's a really wild west kind of environment. >> Well it's a very different environment. John, you and I have been in the technology industry certainly for a whole bunch of lines under our eyes over the years have gone there. My friend Tom Friedman has this phrase that he says, "Everybody's connected and nobody's in control," so the difference is that, as you just said, the tech industry is not a separate industry. The tech industry is in every product and service. Cryptocurrency is like, the concept of that money is just code. You know, our products and services are just code, it raises a couple of really core issues. Like for us on the security point of view, if I don't trust people with the products they're selling me, that I feel like they're going to be hacked, including my personal data, so your product now includes my personal information, that's a real problem because that could actually melt down commerce in a real way. Obviously the election is if I don't trust the social systems around it, so I think we're all at an, and I'd like to say world is still kind of like iRobot moment, and if you remember iRobot, it's like, people build all these robots to serve humankind and then one day the robots wake up and they go, "We have our own point of view on how things are going to work" and they take over, and I think whether it's the debate about AI, whether cryptocurrency's good or bad, or more importantly, the products and services I use, which are now all digitally connected to me, whether I trust them or not is an issue that I think everyone in our industry has to take a step back because without that trust, a lot of these systems are going to stop growing. >> Chaos is an opportunity, I think that's been quoted many times, a variety-- >> You sound like Jeff Goldblum in like Jurassic Park, yeah. (laughing) >> So chaos is upon us, but this is an opportunity. The winds are shifting, and that's an opportunity for entrepreneurs. The technology industry has to start working for us but we've got to be mindful of these blind spots and the blind spots are technology for good not necessarily just for profits, so that also is a big story right now. We see things like AI for good, Intel has been doing a lot of work on that area, and you see stars dedicated to societal impact, then young millennials, you see the demographic shift where they want to work on stuff that empowers people and changes society so a whole kind of new generation revolution and kind of hippie moment, if you look at the 60s, what the 60s were, right? >> Well there's people out in the street protesting, right? There were a couple of million women out in the street this weekend, so we are in that kind of moment again, people are not happy with things. >> And I believe this is a signal of a renaissance, a change, a sea change at enormous levels, so I want to get your thoughts on this. As technology goes out in mainstream, certainly from a security standpoint, your business Illumio is in that now where there's not a lot of control, just like you were mentioning before we came on that all the spends happening but no one has more than 4% market share. These are dynamics and this is not just within one vertical. What's your take on this, how do you view this sea change that's upon us, this tech revolution? >> Well, you know, think about it. You and I grew up in the era where clients server took over from main frame, right? So remember there was this big company called IBM and they owned a lot of the industry, and then it blew up for client server and then there were thousands of companies and it consolidated its way down, but when those thousands of new companies, like you didn't know what was going to be Apollo and what was going to be Oracle right? Like you didn't know how that was going to work out, there was a lot of change and a lot of uncertainty. I think now we're seeing this on a scale like that's 10x of this that there's so much innovation and there's so much connectedness going on very rapidly, but no one is in control. In the security market, you know, what's happening in our world is like, people said, okay I have to reestablish control over my data, I've lost that control, and I've lost it for good reasons, meaning I've evolved to the cloud, I've evolved to the app economy, I've done all of these things, and I've lost it for bad reasons because like am I, like I'm not really running my data center the way I should. We're in the beginning of a move in of people kind of reasserting that control, but it's very hard to put the genie back in the bottle because the world itself is so much more dynamic and more distributed. >> It's interesting, I've been studying communities and online communities for over a decade in terms of dynamics. You know, from the infrastructural level, how packets move to a human interaction. It's interesting, you mentioned that we're all connected and no one's in control, but you now see a ground swell of organic self-forming networks where communities are starting to work together. You kind of think about the analog world when we grew up without computers and networks, you kind of knew everyone, you knew your neighbor, you knew who the town loony was, you kind of knew things and people watch each other's kids and parents sat from the porch, let the kid play, that's the way that I grew up, but it was still chaotic but yet somewhat controlled by the group. So I got to ask you, when you see things like cryptocurrency, things like KYC, know your customer, anti money laundering, which is, you know these are policy based things, but we're in a world now where, you know, people don't know who their neighbors are. You're starting to see a dynamic where people are-- >> Put the phone down. >> Asserting themselves to know their neighbor, to know their customer, to have a connected tissue with context and so your trust and reputation become super important. >> Well I think people are really, so like every time there is a shift in technology, there's scary stuff. There's the fuddy-duddy moment where people are saying, "Oh we can't use that," or "I don't know that," and you know, clearly we're in this kind of new kam-ree and explosion of this cloud mobile blah blah blah type of computing thing and ... Blah blah blah is always a good intersection when you don't have a term. Then things form around it, and just as you said, so if you think about 25 years ago, right, people created The WELL and there was community writing first bulletin boards and like now we have Facebook and you go through a couple of generations and for a while, things feel out of control and then it reforms. I personally am an optimist. Ultimately I believe in the inherent goodness of people, but inherent goodness leaves you open and then, you know, could be manipulated, and people figure these things out. Whether it's cryptocurrency or AI, they are really exciting technologies that don't have any ground rules, right? What's going to happen I believe is that people are going to reestablish ground rules, they're going to figure out some of the core issues, and some of these things may make it, and some of these things may not make it. Like cryptocurrency, like I don't know whether it makes it or not, but certainly the blockchain as a technology we're going to be incorporating in what we do, and maybe the blockchain replaces VPNs and last generation's way of protecting zeros and ones. If AI is figuring out how to read an MRI in five minutes, it's a good thing, and if the AI is teaching you how to exclude old folks for me finding jobs, it's a bad thing. I think as technology forms, there's always Spectre and 007, right? There's always good and bad sides and you know, I think if you believe-- >> I'm with you on that. I think value shifts and I think ultimately it's like however you want to look at it will shift to something, value activity will be somewhere else. Behind me in the bookshelf is a book called The World is Flat and you're quoted in it a lot as a futurist because you have inherently that kind of view, well that's not what you do for a living, but you're kind of in an opt-- >> Alan: Marketing, futurist, kind of same thing. >> Thomas Friedman, the book, that was a great book and at that time, it was game changing. If you take that premise into today where we are living in a flat world and look at cryptocurrency, and then over with the geo political landscape, I mean I just can't see why the Federal Reserve wouldn't reign in this cryptocurrency because if Japan's going to control a bunch of, or China, it's going to be some interesting conversations. I mean I would be like all over that if I was in the Federal Reserve. >> I think people-- Look, cryptocurrency's really interesting and I think people a little over-rotated. If you look at the amount of GDP that's invested in cryptocurrency, it's like, I don't know, there might've been, you know 20 years ago the same amount involved invested in Beanie Babies, right? I mean things show up for a while and the question is is it sustainable over time? Now I'm trained as an economist, you and I have had this conversation, so I don't know how you have a series of monetary without kind of governmental backing, I just don't understand. But I do understand that people find all kinds of interesting ways to trade, and if it's an exchange, like I mean what's the difference between gold and cryptocurrency? Somebody has ascribed a value to something that really has no efficacy outside of its usage. Yeah I mean you can make a filling or bracelets out of gold but it doesn't really mean anything except people agree to a unit of value. If people do that with cryptocurrency, it does have the ability to become a real currency. >> I want to pick your perspective on this being an economist, this is is the hottest area of cryptocurrency, it's also known as token economics, is a concept. >> Alan: Token economics. >> You know that's an area that theCUBE, with CUBE coins, experimenting with tokens. Tokens technically are used for things in mobile and whatnot but having a token as a utility in a network is kind of the whole concept, so the big trend that we're seeing and no one's really talking about this yet is instead of having a CTO, Chief Technology Officer, they're looking for a CEO, a Chief Economist Officer, because what you're seeing with the MVP economy we're living in and this gamification which became growth hack which didn't really help users, the notion of decentralized applications and token economics can open the door for some innovation around value and it's an economic problem, how you have a fiscal policy of your token, there's a monetary policy, what's it tied to? A product and a technology, so you now have a now a new, twisted, intertwined mechanism. >> Well you have it as part of this explosion, right? We're at a period of time, it feels like there's a great amount of uncertainly because everything's, you know, there's a lot of different forces and not everybody's in control of them, and you know, it's interesting. Google has this architecture, they call it BeyondCorp, where the concept is like networks are not trusted so I will just put my trust in this device, Duo Security's a great example of a company that's built a technology, a security technology around it which is completely antithetical to everything we know about networks and security. They're saying everything's the internet, I'll just protect the device that it's on. It's a kind of perfect architecture for a world like where nobody is in charge, so just isolate those, buy this, what is a device? It's a token too, it's a person, your iPhone's your personal token. Then over time, systems will form around it. I think we just have to, we always have to learn how to function in a different type of economy. I mean democracy was a new economy 250 years ago that kind of screwed around with most of the world, and a lot of people didn't think it would make it, in fact we went through two World War wars that it was a little on the edge whether democracy was going to make it and it seems to have done okay, like it was pretty good IPO to buy into. You know, in 1776. But it's always got risks and struggles with it. I think if, ultimately it comes together, it's whether a large group of people can find a way to function socially, economically, and with their personal safety in these systems. >> You bring up a great point, so I want to go to the next level in this conversation which is around-- >> Alan: You've got the wrong guy if you're going to the next level because I just tapped out. >> No, no, no we'll get you there. It's my job to get you there. The question is that everyone always wants to look at, whether it's someone looking at the industry or actors inside the industries across the board, mainly the tech and we'll talk about tech, is the question of are we innovating? You brought up some interesting nuances that we talk about with token economics. I mean Steve Jobs had the classic presentation where he had street signs, technology meets liberal arts. That's a mental image that people who know Steve Jobs, know Apple, was a key positioning point for Apple at that time which was let's make computers and technology connect with society, liberal arts. But we were just talking about is the business impact of technology, the economics, and that's just not like just some hand waving, making technology integrate with business. You're in the security business, There are some gamification technology, gamification that's business built into the products. So the question is, if we have the integration of business, technology, economics, policy, society rolling into the product definitions of innovation, does that change the lens and the aperture of what innovation is? >> I think it does, right? The IT industry's somewhere between three and four trillion dollars depends on how it counts in. It grows pretty slowly, it grows by a low single digit. That tells me as composite, like is that, that slow growth is a structural signal about how consumers of technology think in a macro sense. On a micro sense, things shift very rapidly, right? New platforms show up, new applications show up, all kinds of things show up. What I don't think we have done yet, to your point, is in this new integrated world, the role of technology is not just technology anymore. I don't think, you know you said you need Chief Economical Officer, what about Chief Political Officer? What about a Chief Social Officer? How many heads of HR make decisions about the insertion of systems into their business? And that's what this kind of iRobot concept is in my mind which is that you know, we are exceeding control of things that used to be done by human beings to systems and when you see control, the social mores, the political mores, the cultural mores, and the human emotional mores have to move with it. We don't tend to think about things like that. We're like, "I win and my competitors lose." Like technology used to be much more of a zero sum, my tech's better than yours. But the question is not just is my tech better than yours, is my customer better off in their industry for the consumption of my technology of inserting it into their offering or their service? You know what, that is probably going to be the next area of study. The other thing that's very important in whether, any of you have read Peter Thiel's book Zero to One, the nature of competition technology used to feel like a flat playing field and now the other thing that's rising is do you have super winners? And then what is the power of the super winners? So you mentioned whether it's Facebook or Google or Amazon or you know, or Microsoft, the FANG companies right? Their roles are so much more significant now than the Four Horsemen of the Nasdaq were in 2000 when you had Intel and Cisco and Oracle and Saht-in it's a different game. >> You're seeing that now. That's a good point, so you're reinforcing kind of this notion that the super players if you will are having an impact, you're mentioning the confluence of these new sectors, you know, government, policy, social are new areas. The question is, this sounds like a strategic imperative for the industry, and we're early so it's not like there's a silver bullet or is there, it doesn't sound like there, so to me that's not really in place yet, I mean. >> Oh no. We're not even in alpha. We have demo code for the new economy and we're trying to get the new model funded. >> John: That's the demo version, not the real version. It's the classic joke. >> Yeah this not the alpha or the beta version that like you're going to go launch it. If people think they're launching it, I think it's a little preliminary and you know, it's not just financial investment, it's like do I buy in? I'll tell you something that's really interesting. I've been visiting a bunch of our customers lately and the biggest change I'd say in the last two years is they now have to prove to their customers they're going to be good custodians of their data. Think about that, like you could go to any digital commerce you do, any website you use and you give them basically the ticket to the Furrier family privacy, you do, but you don't spend a lot of time questioning whether they're really going to protect your data. That has changed. And it's really changing in B2B and in government organizations. >> The role of data to us is regulation, GDPR in Europe, but this is a whole new dynamic. >> It's not just my data because I'm worried about my credit card getting hacked, I'm worried about my identity. Like am I going to show up as a meme in some social media feed that's substituted for the news? I don't want to use the FN word, but you know what I mean? It is a really brave new world. It's like a hyper-democracy and a hyper-risky state at the same time. >> We're living in an area of massive pioneering, new grounds, this is new territory so there's a lot of strategic imperatives that are yet not defined. So now let's take it to how people compete. We were talking before we came on camera, you mentioned the word we're in an MVP economy, minimum viable product concept, and you're seeing that being a standard operating procedure for essentially de-risking this challenge. The old way of you know, build it, ship it, will it work? We're seeing the impact from Hollywood to big tech companies to every industry. >> Well you've got a coffee mug for a company that does both. Amazon does MVP in entertainment, like we'll create one pilot and see if it goes as opposed to ordering a season for 17 million dollars to hey, let's try this feature and put it out on AWS. What's interesting is I don't think we've completely tilted but the question is will buyers of technology, of entertainment products, of any product start to say, "I'll try it." You know like, look, I've done four startups and I always know there's somebody I can go to get and try my early product. There are people that just have an appetite, right? The Jeffrey Moores, early adapter, all the way to the left of the-- >> They'll buy anything new. >> They'll try it, they're interested, they have the time and the resources, or they're just intellectually curious. But it was always a very small group of people in the IT industry. What I think that the MVP economy is starting to do is look, I Kickstarted my wallet. I don't know if I'm the only person who bought that skinny little wallet on Kickstarter, it doesn't matter to me, it had appeal. >> What's the impact of the MVP economy? Is it going to change to the competitive landscape like Peter Thiel was suggesting? Does it change the economics? Does it change the makeup of the team? All of the above? What's your thoughts on how this is going to impact? Certainly the encumbrance will seem to be impacted or not. >> I think two things happen. One, it attacks the structural way markets work. If you go back to classical economics, land, labor, and capital, and people who own those assets, now you add information as a fourth. If those guys were around now they would say that would be the fourth core asset, production, I'm sorry, means of production is the term. The people who can dominate that would dominate a market. Now that that's flattened out, you know, I think it pushes against the traditional structures and it allows new giants to kind of show up overnight. I mean the e-commerce market is rife with companies that have, like look at Stich Fix. A company driven by AI, fashions, tries to figure out what you like, sends it to you every month, just had a monster IPO. We invented, by the way the Spiegal Catalog, except like with a personal assistant and you know, it's changed that in just a short number of years. I think two things happen. One is you'll get new potential giants but certainly new players in the market quickly. Two, it'll force a change in the business model of every company. If you're in a cab in any city in the world, I'm not saying whether the app works there or not, Uber and Lyft has forced every cab company to show you here's the app to call the cab. They haven't quite caught up to the rest of the experience. What I think happens is ultimately, the larger players in an industry have to accommodate that model. For people like me, people who build companies or large technology companies, we may have to start thinking about MVPing of features early on, working with a small group, which is a little what the beta process is but now think about it as a commercial process. Nobody does it, but I bet sure a lot of people will be doing it in five years. >> I want to get your take on that approach because you're talking about really disrupting, re-imagining industry, the Spiegal catalog now becomes digital with technology, so the role of technology in business, we kind of talked about the intertwine of that and its nuance, it's going to get better in my opinion. But specifically the IT, the information technology industry is being disrupted. Used to be like a department, and the IT department will give you your phone on your desk, your PC on your desk or whatever, now that's being shattered and everyone that's participating in that IT industry is evolving. What's your take on the IT industry's disruption? >> Well look, it started 20 years ago when Marc Benioff and Salesforce decided to sell the sales forces instead of IT people, right? They went around to the end buyer. I don't think it's a new trend, I think a lot of technology leaders now figure out how to go to the business buyer directly and make their pitch and interestingly enough, the business buyer, if the IT team doesn't get on board, will do that. >> John: Because of cloud computing and ... >> Because of everything. The modern analog I think in our world is that the developers are increasingly in control. Like my friend Martin Casado up in Andreessen talks about this a lot. The traditional model on our industry is you build a product, you launch it, you launch your company, you work with the traditional analyst firms, you try to get a little bit of halo, you get customer references, those are the things you do and there was a very wall structured, for example, enterprise buying cycle. >> And playbook. >> Playbook, and there's the challenger sale and there's Jeffrey Moore and there's like seeing God. You've got your textbooks on how it's been done. As everything turns into code, the people who work with code for a living increasingly become the front end of your cycle and if you can get to them, that changes. Like I mean think about like, you know, Tom wrote about this actually in The World is Flat, like Linux started as a patchy. It didn't start with the IT department, it started with developers and there was the Linux foundation and now Linux is everything. >> There's a big enemy called the big mini computer, and not operating systems and work stations. >> Wiped out whole parts of Boston and other parts of the world, right? >> Exactly, that's why I moved out here. >> You filed client's server out here. >> I filed a smell of innovation. No but this is interesting because this location of industries is happening, so with that, so they also on the analog, so Martin's at Andreessen, so we'll do a little VC poke there at the VCs because we love them of course, they're being dislocated-- >> I don't (mumbles) my investors. >> Well no, their playbook is being challenged. Here's an example, go big or go home investment thesis seems not to be working. Where if you get too much cash on the front end, with the MVP economy we were just riffing on and with the big super powers, the Amazons and the Googles, you can't just go big or go home, you're going to be going home more than going big. >> I think they know that. I mean Dee-nuh Suss-man who's I think Chief Investment Officer at Nasdaq has a very well known talking line that there are half as many public companies as there were 10 years ago, so the exit scenario for our industry is a little bit different. We now have things like acqui-hires, right we have other models for monetization, but I think what the flip side of it is, we're in the-- >> Adapt or die because the value will shift. Liquidity's changing, which acqui-hires-- >> I think the investment community gets it completely and they spend a lot more time with the developer mindset. In fact I think there's been a doubling down focus on technical founders versus business founders for companies for just that reason because as everything turns to code, you got to hang out with the code community. I think there are actually-- >> You think there'll be more doubling down on technical founders? You do, okay. >> Yeah I think because that is ultimately the shift. There are business model shifts, but it's, you know, I mean like Uber was a business model shift, I mean the technology was the iPhone and GPS and they wrote an app for it, but it was a business model shift, so it can be a business model shift. >> And then scale. >> And then scale and then all of those other things. But I think if you don't think about developers when you're in our, and it's like we built Illumio because a developer could take the product and get started. I mean you can, developers actually can write security policy with our product because there's a class of customers, where as not everyone where that matters. There's other people where the security team is in charge or the infrastructure team is in charge but I think everything is based on zeros and ones and everything is based on code and if you're not sensitive to how code gets bought, consumed, I mean there's a GitHub economy which is I don't even have to write the code, I'll go look at your code and maybe use pieces of it, which has always been around. >> Software disruption is clear. Cloud computing is scale. Agile is fast, and with de-risking capabilities, but the craft is coming back and some will argue, we've talked about on theCUBE before is that, you know, the craftsmanship of software is moving to up the stack in every industry, so-- >> I think it's more like a sports league. I love the NBA, right? In the old days, your professional team, you'd scout people in college. Now they used to scout them in high school, now they're scouting kids in middle school. >> (laughs) That's sad. >> Well what it says is that you have to-- >> How can you tell? >> You know but they can, right? I think you know, your point about it craft, you're going to start tracking developers as they go through their career and invest and bet on them. >> Don't reveal our secrets to theCUBE. We have scouts everywhere, be careful out there. (laughs) >> But think about that, imagine it's like there's such a core focus on hiring from college, but we had an intern from high school two years ago. We hire freshman. >> Okay so let's go, I want to do a whole segment on this but I want to just get this point because we're both sports fans and we can riff on sports all day long. >> I'm just not getting the chance >> And the greatness of Tom Brady >> to talk about the Patriots. >> And Tom Brady's gotten his sixth finger attached to his hands for his sixth ring coming up. No but this is interesting. Sports is highly data driven. >> Alan: Yep. >> Okay and so what you're getting at here, with an MVP economy, token economics is more of a signal, not yet mainstream, but you can almost go there and think okay data driven gives you more accuracy so if you can bring data driven to the tech world, that's kind of an interesting point. What's your thoughts on that? >> Yeah I mean look, I think you have to track everything. You have to follow things, and by the way, we have great tools now, you can track people through LinkedIn. There's all kinds of vehicles to tracking individuals, you track products, you track everything, and you know look, we were talking about this before we went on the show right, people make decisions based on analytics increasingly. Now the craft part is what's interesting and I'm not the complete expert, I'm on the business side, I'm not an engineer by training, but look a lot of people understand a great developer is better than five bad developers. >> Well Mark Andris' 10x is a classic example of that. >> There's clearly a star system involved, so if I think in middle school or in high school, you're going to be a good developer, and I'm going to track your career through college and I'm going to try to figure out how to attach. That's why we started hiring freshmen. >> Well my good friend Dave Girouard started a company that does that, will fund the college education for people that they want to bet on. >> Sure, they're just taking an option in them. >> Yeah, option on their earnings. Exactly. >> They are. >> It sounds like token economics to me. (laughs) >> You know you can sell anything. We are in that economy, you can sell those pieces. The good news is I think it can be a great flattener, meaning that it can move things back more to a meritocracy because if I'm tracking people in high school, I'm not worrying whether they're going to go to Stanford or Harvard or Northwestern, right? I'm going to track their abilities in an era and it's interesting, speaking about craft, you know, what are internships? They're apprenticeships. I mean it is a little bit like a craft, right? Because you're basically apprenticing somebody for a future payout for them coming to work for you and being skilled because they don't know anything when they come and work, I shouldn't say that, they actually know a lot of things. >> Alan, great to have you on theCUBE as always, great to come in and get the update. We'll certainly do more but I'd like to do a segment on you on the startup scene and sort of the venture capital dynamics, we were tracking that as well, we've been putting a lot of content out there. We believe Silicon Valley's a great place. This mission's out there, we've been addressing them, but we really want to point the camera this year at some of the great stuff, so we're looking forward to having you come back in. My final question for you is a personal one. I love having these conversations because we can look back and also look forward. You do a lot of mentoring and you're also helping a lot of folks in the industry within just your realm but also startups and peers. What's your advice these days? Because there's a lot of things, we just kind of talked a lot of it. When people come to you for advice and say, "Alan, I got a career change," or "I'm looking at this new opportunity," or "Hey, I want to start a company," or "I started a company," how is your mentoring and your advisory roles going on these days? Can you share things that you're advising? Key points that people should be aware of. >> Well look, ultimately ... I never really thought about it, you just asked the question so, ultimately, I think to me it comes down to own your own fate. What it means is like do something that you're really passionate about, do something that's going to be unique. Don't be the 15th in any category. Jack Welch taught us a long time ago that the number one player in a market gets 70% of the economic value, so you don't want to play for sixth place. It's like Ricky Bobby said, if you're not first, you're last. (John chuckles) I mean you can't always be first, but you should play for that. I think for a lot of companies now, I think they have to make sure that, and people participating, make sure that you're not playing the old playbook, you're not fighting yesterday's battle. Rhett Butler in Gone With the Wind said, "There's a lot of money in building up an empire, "and there's even more money in tearing it down." There are people who enter markets to basically punish encumbrance, take share because of innovation, but I think the really inspirational is you know, look forward five years and find a practical but aggressive path to being part of that side of history. >> So are we building up or are we taking down? I mean it seems to me, if I'm not-- >> You're always doing both. The ocean is always fighting the mountains, right? That is the course of, right? And then new mountains come up and the water goes someplace else. We are taking down parts of the client server industry, the stack that you and I built a lot of our personal career of it, but we're building this new cloud and mobile stack at the same time. And you're point is we're building a new currency stack and we're going to have to build a new privacy stack. It's never, the greatest thing about our industry is there's always something to do. >> How has the environment of social media, things out there, we're theCUBE, we do our thing with events, and just in general, change the growth plans for individuals if you were, could speak to your 23 year old self right now, knowing what you know-- >> Oh I have one piece of advice I give everybody. Take as much risk as humanly possible in your career earlier on. There's a lot of people that have worked with me or worked for me over the years, you know people when they get into their 40s and they go, "I'm thinking about doing a startup," I go, "You know when you got two kids in college "and you're trying to fund your 401K, "working for less cash and more equity may not be "the most comfortable conversation in your household." It didn't work well in my household. I mean I'm like Benjamin Button. I started in big companies, I'm going to smaller companies. Some day it's just going to be me and a dog and one other guy. >> You went the wrong way. >> Yeah I went the wrong way and I took all the risk later. Now I was lucky in part that the transition worked. When I see younger folks, it's always like, do the riskiest thing humanly possible because the penalty is really small. You have to find a job in a year, right? But you know, you don't have the mortgage, and you don't have the kids to support. I think people have to build an arc around their careers that's suitable with their risk profile. Like maybe you don't buy into bitcoin at 19,000. Could be wrong, could be 50,000 sometime, but you know it's kind of 11 now and it's like-- >> Yeah don't go all in on 19, maybe take a little bit in. It's the play and run-- >> Dollar cost averaging over the years, that's my best fidelity advice. I think that's what's really important for people. >> What about the 45 year old executive out there, male or female obviously, the challenges of ageism? We're in economy, a gig economy, whatever you want to call, MVP economics, token economics, this is a new thing. Your advice to someone who's 45 who just says "Hey you're too old for our little hot startup." What should they do? >> Well being on the other side of that history I understand it firsthand. I think that you have an incumbent role in your career to constantly re-educate yourself. If you show up, whether you're a 25, 35, 45, 55, or 65, I hope I'm not working when I'm 75, but you never know right? (mumbles) >> You'll never stop working, that's my prediction. >> But you know have you mastered the new skills? Have you reinvented yourself along the way? I feel like I have a responsibility to feed the common household. My favorite part of my LinkedIn profile, it says, "Obedient worker bee at the Cohen household," because when I go home, I'm not in charge. I've always felt that it's up to me to make sure I'm not going to be irrelevant. That to me is, you know, that to me, I don't worry about ageism, I worry about did I-- >> John: Relevance. >> Yeah did I make myself self-obsolescent? I think if you're going to look at your career and you haven't looked at your career in 15 years and you're trying to do something, you may be starting from a deficit. So the question, what can I do? Before I make that jump, can I get involved, can I advise some small companies? Could I work part time and on the weekends and do some things so that when you finally make that transition, you have something to offer and you're relevant in the dialogue. I think that's, you know, nobody trains you, right? We're not good as an industry-- >> Having a good community, self-learning, growth mindset, always be relevant is not a bad strategy. >> Yeah, I mean because I find increasingly, I see people of all ages in companies. There is ageism, there is no doubt. There's financial ageism and then there's kind of psychological bias ageism, but if you keep yourself relevant and you are the up to speed in your thing, people will beat a path to want to work for you because there's still a skill gap in our industry-- >> And that's the key. >> Yeah, make sure that you're on the right side of that skill gap, and you will always have something to offer to people. >> Alan, great to have you come in the studio, great to see you, thanks for the commentary. It's a special CUBEConversation, we're talking about the future of technology impact the society and a range of topics that are emerging, we're on a pioneering, new generational shift and theCUBE is obviously covering the most important stories in Silicon Valley from figuring out what fake news is to impact to the humans around the world and again, we're doing our part to cover it. Alan Cohen, CUBEConversation, I'm John Furrier, thanks for watching. (upbeat music)

from Austin Texas it's the cube covering cube con and cloud native con 2017 brought to you by Red Hat the Lenox foundations and the cubes ecosystem partners hello everyone welcome to the cube live in Austin Texas for exclusive coverage of cloud native conference and cube con cube con with the linux foundation on john fourier co-founder silicon angle media tube Minutemen with ricky bond and also covering the developer community we just came off Amazon reinvent last week we're now in Austin Texas for a continuation of the Builder theme around this new generation of developers exclusive coverage of cloud native con and cube con or cube cons to cube con like kubernetes john byrne not to be confused with the cube of course when 2018 we're gonna do cube con right John yeah so cube con is coming to check for local listings around an area near you will be will be there stew what a great event I love this events one of my favorite events as you know personally for the cube audience out there and who know us I've been following us we've been growing up with this community we've been covering the Linux Foundation from the beginning if you go back to our roots around 2010 we've always been on the next wave whether it was big date of the converge infrastructure on the enterprise and then cloud the cube is always on the wave and then wave and we call that we were there when kubernetes was formed we were there with the principles JJ when and his team cuz Maddock with blue Tucker kind of brain so me hey we should do kubernetes and we said then kubernetes would be huge it would be the orchestration that would be the battleground in what we were at the time calling the middleware of the cloud turns out that was true that is happening huge change in the ecosystem as containerization with docker originally starting it and then the evolution of how software developers are voting with their workloads they're voting with their code and no better place than the Linux Foundation to your analysis obviously we're super excited but there's some dynamics going on there's a class of venture backed companies that I won't say are groping for a strategic position are certainly investing in open source but brings up the questions of the business model where's the value being created what is the right strategy do I do services do I have a different approach there's a lot of different opinions and if the customers choose wrong they could be on the wrong side of history as this massive wave of innovation with AI machine learning is impacting infrastructure and DevOps it's awesome we heard Netflix on stage let's do what's your take what's going on here cloud native cons yeah so so John I love you know Dan who were you know runs the CN CF gets out on stage and he says you know it's exciting time for boring infrastructure maybe maybe too exciting I even said you know we've been watching this wave of you know containerization and kubernetes and this whole CN CF ecosystem has really taken you know that container piece and exploded beyond this really talking about how I build for these cloud native environments you know there's 14 projects here kubernetes is the one that kicked it off but so many pieces of what's happening here john AWS last week phenomenal like 45,000 people a lot of the real builders the ones you know heavily involved in projects or like ah I actually might skip AWS come to come to coop con this coop con this is where you know so many people we've seen you know founders of companies working on so many projects you know large community you know great community focus I know you like Netflix up there talking about culture big diversity I think what was it 130 scholarships for people of diversity there so really phenomenal stuff you know this is where really that multi-cloud world is being built yeah and good points too because that's really the elephant in the room which is the prophets and the monetization of developer communities is not the primary but it's a big driver and how people are behaving and Amazon reinvent in this world are parallel universes you know it's interesting you don't see a lot of reinvent hoodies I wore mine last night got a couple dirty looks but this is you see a lot of Google you see a lot of Microsoft John John John we have Adrian Cockcroft was in the keynote this morning everybody's saying we're braising the databases here you don't think that's the case I think everyone does embrace it isn't number one isn't really no second place they're far back as I said at reinvent I still stand by that but you got big players okay dan cohen basically said on stage okay it's my projects products and profits and they're putting profits actually in the narrative because they're not shying away from soup but it's not a pay-to-play kind of ecosystem here it's like saying look at the visibility of the cloud has shine the light on the fact that there is an opportunity to create value of which value then can be translated to monetization and developers like to get paid no one likes that do things totally for free that is the scoreboard of value it's not just about chasing the dollar and I think I like how the CN CF is putting out the prophets saying look at this real value here in businesses is real value in products that come from these projects this is a new era and open source I think that's legit again pay-to-play is a completely different animal yeah vendors come in control the standards pay pay pay not anymore Brendan burns told me last year Microsoft no pay to play Microsoft's got a big platform they're gonna come in and make things happen ok so John the money thing is a big question I have coming into this week dan talked up on stage there's certified service providers for kubernetes and there's certified kubernetes partners 42 certified kubernetes partners for the most part kubernetes has been commoditized today that certification doesn't mean that hundred-percent everything works but it definitely over a you know short period of time it will be means that I if I choose any platform that uses kubernetes that certified I can move from one to the other it doesn't mean that I'm actually going to make money selling kubernetes it's that that's part of the platform or services that arm offering and it is an enabler and you know that's what's a little different you think about you know John we try for years OpenStack thought we were gonna make money on it how we're gonna make money even go back to Linux you know it's what can be built using this set of tools so people have said this is really rebuilding the analytics for the cloud environment but money is kind of its derivative off of it it's an enabler to are there great software it brilliants dude this is the bottom line here it's the tale of two stories in the industry okay this in the backdrop is this and if prices are an IT specifically in development teams platforms are shifting big time the old is an old guard as Andy Jackson said the invest in a new guard the dynamics are containerization drove megatrend number one that turbocharged the cloud infrastructure and gave developers some freedom micro-services then take it to another level what it's actually done has changed at two theaters in the industry theater one is the vendors that are getting funded that participants in open source work trying to create value and then what I would call the rest of the market there is an onboarding a tsunami of new developers coming in I'm seeing in the in theater one all the people that we know in the industry and then I'm seeing new faces these are people who are going to the light the light is the monetization and that's the value creation so you seeing people here for the first time you're seeing developers who have a clear line of sight that this community creates value so that's two dynamics so that the companies that got a hundred million dollars in funding from venture capitals they're trying to figure out can they take advantage of that wave of new developers there's been an in migration into cloud native of new developers and these are the ones they're going to be creating the value the creativity the solutions and certainly the cultural impact from those solutions will be great I see a great opportunity if people just don't get scared and just hold the line keep your hitting value it'll figure itself out so the evolution is natural and that is something I'm interesting to see okay and John the thing I'm looking for this week first of all when we talked about containers we talked about this whole cloud native environment that boring infrastructure stuff it still matters networking has matured a little bit there's the CNI initiative the cloud native I'm sorry container networking interface which is approaching one auto they're getting feedback here second one is storage most of the these solutions we really started talking about stateless environments state absolutely has to be a piece of this how do we fit you know you know data AI ml all these things data is critically critically important so that needs to be there and then the new technology that you know we spent a lot of time talking about at AWS that was serverless and there's actually like a half day track here at this show talking about how all of these solutions how serverless fits into them there was a question does serverless replace the because I don't need to think about it really a lot of the same tooling a lot of these usage will fit into those server lists frameworks so it's not in either/or but really more of an an environment but definitely something that we expect to hear more of this we've done we've got a phenomenal lineup I'm super excited did you know some of these builders that we've got you know big players we've got startups we've got authors we've got a good diverse audience coming on the cube so and you know I know near and dear to your heart you know lots of developer talk a lot of their over talks do this is a fun time the commoditization of kubernetes is actually a good thing in my mind I think there will be a lot of value to be created and this really is about multi cloud you mentioned all three of the major clouds and now Maurice are all a bob on stage just in China you got a lot more growth you're seeing that kubernetes really is an opportunity for Google and Microsoft and the rest of the community to run as fast as they can to create services so that customers can have a choice choice is the new black that's what's going on and multi-cloud not yet here but certainly on the horizon and if Google and Azure do not establish a mike-mike multi cloud environment Amazon could run away with it that's my that's my tag that's my visibility on it the bottom line is whoever can creates the value so what I'm gonna look for is the impact of the continued kubernetes kinda monetization and the new formations do the new relationships the existing players like red hat are going to continue to kick ass you're gonna start to see new players come in you can expect to see new partnerships because the stack is being developed very fast smooth announcements for me theists flew and deke container D Windows support coming with 1.9 kubernetes what's happening is they're running as fast as they can they're pedaling as fast as they can because if they do not they will be blown away that's the cube coverage here kicking off day one I'm John Purdue minimun exciting times here at cloud native and cube on back after this short break

>> 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)