>> Announcer: Live from San Francisco, it's theCUBE covering Spark Summit 2017. Brought to you by Databricks. >> Getting close to the end of the day here at Spark Summit, but we saved the best for last I think. I'm pretty sure about that. I'm David Goad, your host here on theCUBE and we now have data scientists from Riot Games, yes, Riot Games. His name is Wesley Kerr. Wesley, thanks for joining us. >> Thanks for having me. >> What's the best money-making game at Riot Games? >> Well we only have one game. We're known for League of Legends. It came out in 2009, it has been growing and well-received by our fans since then. >> And what's your role there? It says data scientist, but what do you really do? >> So we build models to look at things like in game behavior. We build models to actually help players engage with our store and buy our content. We look at different ways we can, just, improve our player experience. >> Alright well let's talk about a little more under the hood, here. How are you deploying Spark in the game? >> So we relied on Databricks for all of our deployment. We do many different clusters. We have about 14 data scientists that work with us, each one is sort of able to manage their own clusters: spin 'em up, tear 'em down, find their data that way and work with it through Databricks. >> So what else will you cover? You had a keynote session this morning, right? >> Yep. >> Give a recap for theCUBE audience of what you talked about. >> So we talked about our efforts in player behavior where we build models and deploy models that are watching chat between players so we evaluate whether or not players are being unsportsmanlike and come up with ways to, sort of, help them curb that behavior and be more sportsmanlike in our game. >> Oh wow, unsportsmanlike. How do you define that? It's if people are being abusive? >> So what we saw was there are about one or two percent of our games that is some form of serious abuse and that comes in term of hate speech, racism, sexism, things that have no place in the game and so we want them to realize that that language is bad and they shouldn't be using it. >> It's all key word driven or are there other behaviors or things that can indicate? >> So right now it's purely based on things said in chat, but we're currently investigating other, sort of, other ways of measuring that behavior and how it occurs in game and how it could influence what people are saying. >> Maybe like tweets coming from The White House? (laughing) >> Okay, so George. >> We should be able to measure that as well. >> So how about those warriors? (laughing) >> No, George did you want to talk a little bit more >> Sure. >> David: about the technical achievements here? When you look at like trying to measure engagement and sort of maybe it sounds like converting high engagement to store purchases, tell us a little more maybe how that works. >> So we look at, we want. Our game is completely free to play. Players can download, play it all the way through and we really try to create a very engaging game that they want to come back and they want to play and then everything they can buy in the store is actually just cosmetics. So we really hope to build content that our players love and are happy to spend money on. As far as... We just really want engagement to be from around players coming back and playing and having a good time and it's less about how to get that high engagement conversion into monetization as we've seen that players who are happy and loving the game are happy to spend their money. >> So tell us more about how you build some of these models like, you know, turning it into not turning it into Spark code, but how do you analyze it and, sort of, what's the database mechanism for, you know, 'cause the storage layer in Spark, you know, is just like the file system? >> Sure, yeah absolutely. So we are a world-wide game. We're played by over 100 million players around the world >> David: Wow. >> And so that data comes flowing in from all around the world into our centralized data warehouse. That data warehouse has gameplay data so we know how you did in game. It also has time series events, so things that occurred in each game. And our game is really session based so players can come play for an hour, that's one game, and then they leave and come back and play again. And so what we're able to do is then, sort of, look at those models and how they did. And I'll give you an example around our content recommendations. So we look at the champions that you've been playing recently to predict which champions you are likely to play next. And that we can actually just query the database, start building our collaborative filtering models on top of it, and then recommend champions that you may not play now, you may be interested in playing, or we may decide to give you a special discount on a champion if we think it'll resonate well with you. >> And in this case, just to be clear, the champions you're talking about are other players, not models? >> It's actually the in-game avatar. So it's the champion that they play. So we have 130 unique champions and each game you choose which champion you want to play and so then that plays out for like. It's much more like a sport than it is like a game. So it's five v five, online competitive. So there are different objectives on the map. You work with your team to complete those objectives and beat the other team. So we like to think of it like basketball, but with magic and in a virtual world. >> And the teams stay together? Or are they constantly recombining? >> They can disband, yeah. Your next game may find nine other people. If you're playing with your friends then you can just keep queuing up with them as well. So the champions that they control there happen to be who you're playing in that game. >> And when you are trying to anticipate champions that someone might play in the future, what are the variables that you're trying to guess and how long did it take you to build those models? >> Yeah, it's a good question. Right now we are able to sort of leverage the power of our user, our players, so we have 100 million. And so what we do and we have in our game there are roles so, for instance, like there's a center in basketball, we have a bot lane. So we have bottom lane support and bottom lane ADC. So a support character is there to make sure that your ADC is able to defeat the other team. And if you play a lot of support, odds are there are other players in the world who play a lot of support too so we find similar players. We find that if they engaged on the same sorts of champions that you play. For instance, I'm a Leona main and so I play her a lot. And if I were to look at what other people played in addition to Leona it could be things like Braum and so then we would recommend Braum as a champion that you should try out that you've maybe not played yet. >> David: Okay. >> So and then what's the data warehouse that you guys use for the ultimate repository of all this? >> All the data flows into a Hive data warehouse, stored in S3. We have two different ways of interacting with it. One, we can run queries against Hive. It tends to be a bit slower for our use cases. And then our data scientists tend to access that all that data through Databricks and Spark. And it runs much quicker for our use cases. >> Do you take what's in S3 and put it into a parquet format to accelerate? >> Sometimes, so we do some of those rewrites. We do a lot of our secondary ETLs where we're just joining across multiple tables and writing back out. We'll optimize those for our Spark use cases and there's writing back, sort of, read from S3, do some transformations, write back to S3. >> And how latency-sensitive is this? Are you guys trying to make decisions as the player moves along in his level or? >> So historically we've been batch. We do- our recommendations are updated weekly so we haven't needed a much higher cadence. But we're moving to a point where I want to see us be able to actually make recommendations on the client and do it immediately after you've finished a game with, say, Leona, here's an offer for Braum. Go check it out, give it a try in your next game. >> So Wesley what would you like to see developed that hasn't been developed yet that would really help in your business specifically? >> So one thing that's really exciting for gaming right now is procedural generation and artificial intelligence. So here there are a lot of opportunities, you've seen some collaborations between Deep Mind and Blizzard where they're learning to play Starcraft. For me, I think there's a similar world where we have a game that has different sorts of mechanics. So we have a large social piece to our game and teamwork is required. And so understanding how we can leverage that and help influence the future of artificial intelligence is something that I want to see us be able to do. >> Did you talk with anybody here at the Spark Summit about that? >> Anyone who would listen. (laughing) So we chatted some with the teams up at Blizzard and Twitch about some of the things they're doing for natural language as well. >> Alright so what was the most useful conversation you had here at the summit? >> The most useful one that I had, I think, was with the Databricks team. So at the end of my keynote, It was kind of serendipitous, I was talking about some work we had done with deep learning and sort of doing hyper parameter searches over our worker nodes, so actually being able to quickly try out many different models. And in the announcement that morning before my keynote, Tim talked about how they actually have deep learning pipelines now and it was based on a conversation we had had so I was very excited to see it come to fruition and now is open source and we can leverage it. >> Awesome, well, we're up against a hard break here. >> Wesley: Okay. >> We're almost at the end of the day. Wesley, it's been a riot talking to you. We really appreciate it and thank you for coming on the show and sharing your knowledge. >> Wesley: You bet, thanks for having me. >> Alright and that's it, we're going to wrap it up today. We have a wrap-up coming up, as a matter of fact, in just a few minutes. My name is David Goad. You're watching theCUBE at Spark Summit. (upbeat music)

>> Narrator: Live from Las Vegas. It's the Cube covering Dell EMC World 2017. Brought to you by Dell EMC. >> Welcome back everyone, we are live here in Las Vegas for Dell EMC World 2017. I'm John Furrier with the Cube, and my co-host here is Keith Townsend, @CTOAdvisor on Twitter. Our next guest is David Goulden, the president of Dell EMC infrastructure business. Great to see you. Our eighth consecutive year covering EMC World, now Dell EMC World, the first Dell EMC World, kind of a seminal moment watershed event here. You've been to all of them, you've seen the movie with EMC now. Now eight months after the close, it's Dell EMC World, but it still feels like EMC World. What's your reaction, I mean, all the same? >> No, John, it's very different, it may maybe because it's in Vegas and it's in May. So those two things are common, but the content, the breadth of the message, you mentioned it, it's eight, nine months after the closing transaction, but of course bear in mind, we had a year before that of planning after we announced, so it's really quite some time into the concept of this transaction and to a larger extent, this week for us is the coming out party. It gives us a chance to demonstrate to the world what we've spent the last nine months and the year before that planning and doing, and actually investing in, and you saw just from my remarks this morning the breadth of technology we're bringing to our customers, and the amount of innovation, and the better together story coming real, I think it's exciting. >> You know, David, I'm always complimenting you and talking behind your back when you're not around as well, but the compliment is, you're a great operational person but you're also a strategic chess player as well in terms of the industry. The Dell EMC strategy's pretty clear on the existing traditional infrastructure, data center, whatever you want to call it. It's a mature market, it's consolidating, win that business, be the number one supplier in that market, we see that playing out. However, you got to have the growth strategy. That's the future revenues that are going to come down the pipe. Describe for a minute the strategy, 'cause pretty obvious the mature market on the data center is moving to hybrid cloud, and there's a pathway there, so you lock it and load it on that being number one fast 14 generation servers, we see that, cool. Growth strategy, what's the growth strategy for Dell EMC? >> Well, don't rule out growth in on-prem data centers, right, so, let's not put that into pure mature, no growth. >> I mean it's not hockey stick. >> Right, but the market is still a massive marketplace in on-prem data centers. It's true that all the infrastructure growth, so if you look at the infrastructure marketplace, $110 billion dollars that's served by service storing networking data protection. You look at that marketplace in total and you say where's all the growth? The growth is in off-prem, we'll come back to that in a second. But the on-prem, the data center is still over sixty percent of that marketplace. And in total that market isn't growing but the consolidation opportunity you talked about is huge. And segments of it like moving to a private cloud like hyper-converged infrastructure, there are rocket ships occurring inside of that big target adjustable market. That's $60 billion dollars our data center IT spend. So there is growth for us in that. And there is growth in being the largest most capable player to consolidate, pick up share, be stronger in the newer segments than we even were in the more mature segments. So I wouldn't rule off growth there. From an infrastructure point of view, of course there's a lot of growth off-prem. Now off-prem is a very fragmented marketplace. As soon as people think off-premises, they go immediately to the web scale public cloud providers. And they're certainly a part of it, but there's the SAS companies, there is the outsource integrators, the ITS and service companies. There's a huge opportunity there. >> I mean everyone is a cloud service provider. Everyone will be, I mean, Riot Games which does League of Legends, they're a cloud company, right? I mean, everyone's kind of a cloud company or a SAS company these days, or they're trying to get there. >> That's because the whole IT industry's moving to cloud. Because cloud is an operating model, not a place. And cloud is about delivering IT at all levels, application, infrastructure, networking, whatever you think about it. It's delivering IT as a service that can be monitored and metered and charged based upon use. That's a very simple definition of a cloud and everybody wants to do that. Whether you are an on-prem data center, whether you are a third party service provider, everybody wants to offer cloud. So we shouldn't get too confused about the cloud opportunity, it is the redefinition of the IT industry. >> So David as we talked through the opportunity within the data center, one of the obvious things when you look at Dell EMC is the breadth of products, the depth of capability compared to your competitors... Traditional knowledge would tell us that, you know what, you guys have the potential to really dominate this thing, but when you're coming to customers, what's the clear message that you're bringing when it comes to specific products and the core of that growth? >> So the message to customers is we are investing for the longterm and we're investing heavily. Our strategy is not to just be good enough, it's to be the number one, so we don't want to just be the number one market share player, but also have the best technology. So our message to customers is hey, Mr. Customer, Ms. Customer, you've got a lot of things to worry about in your IT world. Ultimately, you want to be providing IT services to your customers. You need an infrastructure partner, you want a company who can be that essential infrastructure company who can provide the vast vast majority of all the things you need to be able to equip your IT shop to provide services to your customers. That's the message, and it's very powerful. Because it spans the client, through the data center, and into the cloud. And it encompasses security and all other elements of the infrastructure plate. So it's a very very powerful message. And the final thought I would tell you is relative to that, is I haven't had a customer in the last two years who told me they want more IT suppliers. They want fewer and they want them to be strategic and more capable. And that's our plate. >> Great, I want to double down on that comment. They don't want more suppliers, I buy that, and I think end-to-end you're seeing architectures, we saw Intel on stage, you're seeing 5G being end-to-end with IOT. They like the end-to-end, they like the supplier consolidation. But the other thing we're hearing in the hallways here at the event is, and this is the question for you because you manage the product portfolio, is I don't want more products, I want less products or skews if you will, whatever you want to call it. So there's a product overlap certainly with the Dell EMC combination, there's been some overlap. People have been talking about that. So how are you managing that? I know we talked about it a little bit last year just getting the roadmap cleaned up, but what specifically are you doing to manage the product overlap with respect to some of the products that kind of are overlapping between the two companies? >> Well first of all, your earlier comment was right. Customers want outcomes, and we'll come back to that. But specifically, relative to your question on overlap. The beauty of this combination is we come with one of everything and two of almost nothing, which is most unusual in a large scale tech merger. The only area we had any overlap was in the mid-tier of our storage family. Where there was the Dell SC Compellents and there was the EMC Unity family. Now, if they'd both been mature at the end of their product cycle, it could have been a longer issue. But the point is they'd just gone through a full investment to create new versions of each one. So what do you do? You roll them out, you support your customers, and you look for convergence opportunities down the road. So we didn't have to make any short term keep one, kill one, type choices because it was a very fortuitous stage. Both had been through that cycle. But that's the only part of the entire portfolio where there's any overlap. The rest is all about... >> And you're saying it's opportunistic for you because there's no real conflicting overlap. >> There's no conflict. We have two mid-range storage products, one from each family. Big deal. Most customers don't want to be confused so if they were a Unity customer we sell them Unity. If they're a Compellent customer, we sell them Compellent and we say don't worry, we're going to bring you a converged solution in the future. It's really quite simple. Everywhere else, Dell came with their technology, EMC came with ours, and we can focus upon how you create the power of more. >> Okay, so back to the end-to-end conversation because you mentioned they want less suppliers is the trend, I agree. >> And more partners. >> Multi-cloud? For technical reasons, latency and things, I think it's not ready for prime time. But certainly the direction, hybrid clouds front and center, I see that. Talking with the CEO of Oracle last week, and his briefing with me, they want to be the supplier. Everybody wants to be the end-to-end supplier. So multi-cloud implies multiple vendors, so there is still a multi-vendor. Can you just share with us your vision on that? Because it's not a one vendor take all world. Certainly an end-to-end life cycle is good, but how are you guys dealing with this multi-vendor, multi-cloud scenario and how should customers look at that in dealing with Dell EMC? >> Well first of all, we didn't say we want to be anybody's exclusive IT provider, we want to be their most strategic. Everybody has a number of IT vendors, and this is one of the challenges that most IT operations have, they have tens of vendors. In some cases they have tens of vendors for just one piece of the stack, like their management tools. So they're looking for fewer, more capable partners. And what we want to do is to position ourselves to be the most strategic amongst their handful of key partners. As it comes to multi-cloud, that all ties back to applications. So this whole conversation about cloud is often mixed up with a question around applications. I was with a customer, a large financial services customer, after lunch we were having a conversation about cloud. I asked them how many applications they had. 6,900. And that by the way, that's after they've done two years of application rationalization. So what they now want to do is figure out a strategy for those applications. Well they're not all going to sit on one cloud, they're going to sit on multiple places. Some will sit upon an internal cloud. They may have a couple different flavors of internal cloud. They're going to have some SAS vendors, they're going to have some public cloud. So multi-cloud is a reality for anybody with more than, let's say, 50 to 100 applications. It's just a way of life, particularly when you take my definition of cloud or our definition of cloud as being an offering bowl and our place. >> In the final minutes we have I know Keith's got another question that he wants to ask, but I got to ask you, 'cause you've been on the EMC side, you've been running that business with the team there, the federation over the years. You had a good trajectory, you looked at the roadmap, you've seen the growth rates. Now with the combination, I'd like you to spend a minute talking about what's different now and be specific, because now you have so much more opportunity on the revenue side with the combination. So talk about, and Michael made a comment to me just now this morning, they're winning more business. So you're winning business, you're seeing some successes, NSX with VMWare is doing great, the convergence stuff is going great, got some good product announcements. What specific wins are you having that illustrate this new growth opportunity that wasn't there before the combination? >> We're having a number of wins. We're having a number of situations where, in the data center for example, a strong dell server customer may not have much EMC storage, and we're winning the storage footprint. Conversely, we're having a lot of wins where we've got a strong storage footprint in the data center with EMC's strength and we're winning significant server deals on the back of that. So we're seeing this cross synergy occurring just on the back of having a number one position on both sides. We're also seeing our ability to bring brand new products to the market like VxRail that includes a PowerEdge, that includes VMware, that includes EMC software. So we're winning because we have the broader portfolio, and we're winning because we're creating new products to leverage the best of both. And of course, a big piece of what I talked about this morning was 14G service. That is going to be the next generation bedrock of the data center. We'll incorporate that across our entire portfolio. >> Why is that important? Quickly, what's the value proposition? >> What's the value proposition for 14G? >> Yeah. >> It's been designed for the digital transformation of the future. It's been designed not only to host existing applications but to host those scale-out high performance applications of the future. And we can uniquely provide the scalability, the performance, the security those applications need. So it's built for the next generation. It's built thinking about things like machine learning, deep learning, artificial intelligence. It's the platform for those applications, and that's really powerful to have that inside the portfolio. >> So David, digital transformation, a lot of time to value, a lot of buzzwords I've heard today that I've generally heard from my management consultant days. Dell EMC is now the leader in the infrastructure space. You guys are now having conversations with much different people. CMO, COO, CEO, CIO... What lends Dell technologies, Dell EMC, the credibility to come to these new contacts within enterprise? >> Keith, I'd say a couple things. So first of all, we have the world's most advanced platform as a service tool with Pivotal. There are more cloud native applications being built on the Pivotal framework than any other single framework out there. >> Keith: I'm a big fan of Pivotal. >> So am I. And it lets customers become software businesses and everybody talks about becoming a software business. And it creates not just a platform but a toolkit, and also through Pivotal labs, the ability to train people. So Pivotal gives us the credibility to have that software conversation. And then on the back of Pivotal, and just on the back of what we're doing in the infrastructure business, we recognize that there's IT transformation and there's digital transformation. And we're building infrastructure that is aligned to support both of those. So we're building applications for big data Hadoop. We're building infrastructure for IOT. We're building applications for next generation digital transformations. So the infrastructure side of the business is able to address IT transformation and digital transformation at an infrastructure layer and then we've got the best tool out there for the digital transformation applications. So I think that gives us a lot of credibility, and so we're having that conversation. >> David final question, take your president of Dell EMC hat off for a second and put your personal David Goulden hat on. And I'd like to have you just reflect in your own words what surprises you about this combination? It's been historic, you've got the entrepreneurial led CEO Michael Dell, your private. It feels good, we haven't heard really any horror stories about the integrations. There's been some bumps but no major horror stories, so congratulations. But in your own words, what's the biggest surprise that you've seen given the history you have with EMC and as the senior executive at Dell EMC, what's the biggest surprise that folks might not know about in this massive combination? >> I think you've hit upon a couple of them, John. So one, we planned for contingencies that didn't happen. You put a big merger together you expect some things to go wrong in the night. They didn't, touch wood. So that perhaps is an attribute to the planning and the integration that went on. And then on the other side, it's just how quickly we've been able to bring things together. I thought it was going to take us another six to nine months before we could really have customers turn around to us and say we are now viewing you as our most strategic partner. And that's happening to me today, and I really didn't think we'd be there within the first Dell EMC World. I thought it would be the Dell EMC World a year later when we could have those conversations. I think when you just look at the amount of innovation and the progress we've made in a short period of time, because I think what's happened here is we've hit a little bit on an inflection point. We are touching upon a real requirement those customers have, and maybe even more than we ever realized. They really want a technology innovator who is broadly based, who is not constrained by some of the conventional models out there who can push the envelope with them. >> You must have those moments where you kind of pinch yourself and say wow, look where we are, kind of how the industry's changed over the years, how you guys have a nice pole position. Interesting times. >> We're excited about it and we think, also more importantly, we're playing a long term game. We view that in three to five years time the industry becomes even more consolidated. And we think that we have this unique position as this essential infrastructure broad based platform company that can just continue to grow from here. >> Michael Dell says the same thing, Jeff Bezos at Amazon, ten years of innovation is what it pretty much takes to kind of make things happen. Congratulations on your success David, great to see you inside the Cube. >> Thank you. >> Thanks for your candid commentary. We really don't talk behind your back, I mentioned that earlier. We have to say good things about you. David Goulden, president of Dell EMC infrastructure here inside the Cube. I'm John Furrier with Keith Townsend live from Las Vegas, we'll be back with more coverage, stay with us.

>> Voiceover: Live from Boston, Massachusetts, it's the Cube, covering OpenStack Summit 2017. Brought to you by the OpenStack Foundation, Red Hat, and additional Ecosystem as support. >> Welcome back, I'm Stu Miniman joined by John Troyer. This is Silken Angle Media's production of the Cube at OpenStack Summit. We're the world wide leader in tech coverage, live tech coverage. Happy to welcome back to the program someone we've had on so many times we can't keep track. He is the creator of the term Pets versus Cattle, he is one of the OG of The Cloud Group, Randy, you know, wrote about everything before most of it was done. So good to see you, thank you for joining us. >> Thanks for having me. >> Alright, so Randy, coming into this show we felt that it was a bit of resetting expectations, people not understanding, you know, where infrastructure's going, a whole hybrid multi-cloud world, so, I mean you've told us all how it's going to go, so where are we today, what have people been getting wrong, what's your take coming into this week and what you've seen? >> Well, I've said it before, which is that the public clouds have done more than just deliver compute storage and networking on demand. What they've really done is they've built these massive development organizations. They're very sophisticated, that are, you know, that really come from that Webscale background and move at a velocity that's really different than anything we've seen before, and I think the hope in the early days of OpenStack was that we would achieve a similar kind of velocity and momentum, but I think the reality is is that it just hasn't really materialized; that while there are a lot of projects and there are a lot of contributors the coordination between them is very poor, and you know it's just not the, like architectural oversight that we really needed isn't there. I, a couple years ago at the Openstack Silicon Valley gave a presentation called The Lie of the Benevolent Dictator, and I chartered a course for how we could actually have more of a technical architecture oversight, and just that really fell on deaf ears. And so we continue to do the same thing and expect different results and I just, that's a little disappointing for me. >> Yeah. So what is your view of hybrid cloud? You know, no disagreement, you look at what the public cloud companies, especially the big three, the development that they can do, Amazon, a thousand new features a year, Google, what they can do with data, Microsoft has a whole lot of applications and communities around them. We're mostly talking about private cloud here, it was a term that you fought against for many years, we've had great debates on it, so how does that hybrid play out? Cause customers, they're keeping on premises. Edge fits into a lot of this too, so it's, there's not one winner, it's not a zero sum game, but how does that hybrid cloud work? >> Yeah so, I didn't fight against private cloud, I qualified it. I said if it's going to be a private cloud it's got to be built and look and smell the way that the public cloud was. Alright? If it's just VM ware with VM's on demand, that's not a private cloud. That was my position. And then in terms of hybrid cloud, you know, I don't think we're there yet. I've presented on this at many different OpenStacks, you can see it in the past, and I sort of laid out what needs to happen and that didn't happen. But I think there's hope, and I think the hope comes in the form of Kubernetes, and to a certain degree, Helm. And the reason that Kubernetes with Helm is very powerful is that Kubernetes gives us a computive traction, so that you don't care if you're on the public cloud, or you know OpenStack or Vmware or whatever, and then what Helm gives us is our charts, so ways to deploy services, not just software, and so what we could think about doing in the future is building hybrid cloud based off of Kubernetes and Helm. >> Yeah, so Randy since last time we talked you've got a new role, you're now with Juniper. Juniper had done a Contrail acquisition. You know, quite a few years back you wrote a good blueprint on one of the Juniper forums about the OpenContrail communities. So tell us a little bit about your role, your goals, in that community. >> So OpenContrail has been a primarily Juniper initiative, and we're going to press the reset button on the OpenContrail community. I'm going to do it tonight and call for people to sort of get involved in doing that reset, and when I say reset I mean, wipe the operating system, reload it from scratch, and do it really as a community, not just as a Juniper run initiative, and so people inside Juniper are very excited about this, and what we're trying to do is that we believe that the path forward for OpenContrail is ubiquitous adoption. So rather then playing for just the pieces that we have, which we've done a great job of, we want to take the world's best SDN controller and we want to make sure everybody uses it, because we think aggregate that's good for not only the entire community but also Juniper. >> So, love the idea of kind of rebooting the community in the open, right, because you have to be transparent about these sort of things. >> Randy: Yeah, that's right. >> What are the community segments that you would like to see join you here in the OpenContrail? What kind of users, what kind of companies would you like to see come in to the tent? >> Well anybody's welcome, but we want to start with all of our key stakeholders that exist today, so first one, and arguably one of the most important is our competitors, right so we're hoping to have Mirantis at the table, maybe Ericcson, Huawei, anybody. Cisco, hey come join the party. Second is that we have done really well in Sass and in gaming, and we'd like to see all of those companies come to the table as well, Workday, Symantech, and so on. The third segment is enterprises, we've done well in financial services, we think that that's a really important segment because they're leading edge of enterprises typically, and the fourth is the carrier's obviously incredibly important for Juniper, folks like AT&T, Direction Telecom, all those companies we'd love to see come to the table. And then that's really the primary focus, and then anybody else who wants to show up, anybody who wants to develop in Contrail in the future we'd love to have there. >> Well with open source communities, right, there's always a balance of the contributors and developers versus operators, and we can use the word contributors in a lot of roles. Some open source communities, much more developer focused, >> Randy: That's right. >> Others more operator focused, where do you see this OpenContrail community starting out? >> So where it's been historically is more of our end users and operators. >> I think that's interesting and an interesting twist because I think sometimes open source communities get stuck with just the people who can contribute code, and I'm from an operator community myself, >> Randy: Right. >> So I think that's really interesting. >> We still want all those people but I think what has happened is that when people have come in and they wanted to be more sort of on the developer side, the community hasn't been friendly to them. >> John: Okay. >> Randy: And so we want, that's a key thing that we want to change. You know when we were talking, to certain carriers they came and they said look, it's great you're going to do this, we want to be a part of it, and one of the things we'd like to contribute is more advanced testing around VMFs. And I just look at that and I'm just like that's what we need, right? Juniper is not, can't carry all the water on having, you know, sophisticated test suites for VMFs and more advanced networking use cases, but the carriers are deep into this and we'd love to have them come and bring that. So not just developers, but also QA, people who want to increase the code quality, the architectural quality, and the aggregate value of OpenContrail. >> Okay, Randy can you help place OpenContrail where it fits in this kind of networking spectrum, especially, there's open source things, we've talked about about VPP a couple times on theCube here. The joke for many years was SDN still does nothing, NFV solutions have grown, have been huge use case, is really where the early money for big deployments have been for OpenStack. Where does OpenContrail fit, where does it kind of compare and contrast against some of the other options out there. >> I'm going to answer that slightly differently. I've been skeptical about SDN overlays for a long time, and now I am helping with one of the world's best SDN overlays, and what's changed for me is that in the last year I've seen key customers of Contrail's, of Juniper's actually do something very interesting, right. You've got an SDN overlay, it's complex, it's hard to void, you got to wonder, why should I do this? Well I thought the same thing about virtualization, right, until I figured out, sort of what was the killer app. And what we've seen is a company, one of our customers, and several others, but one in particular I can talk about publicly, Riot Games, take containers and OpenContrail and marry them so that you have an abstraction around compute, and an abstraction around networking, so that their developers can write to that, and they don't care whether that's running on top of public cloud, private cloud, or in some partner's data center globally. And in fact they're going to talk about that today at OpenContrail days at 3:30, and are going to present a lot more details, and that's amazing to me because by abstracting a way and disintermediating the public clouds, you actually have more power, right. You can build your own framework. And if you're using Kubernetes as a baseline you can do a lot more on top of that computing network abstraction. >> You talked about OpenContrail days, again my first summit, I've actually been impressed by the foundation, acknowledging there's a huge landscape of open source and other technologies around there, OpenStack itself doesn't invent everything. Can you talk a little bit about that kind of attitude of bringing, I mean we talk about Kubernetes and that sort of thing, but all the other CNCF projects, monitoring, even components like SCD, right, we're talking about here at this conference. So, can you talk a little bit about how OpenStack can interact with the rest of the open source and cloud native at-large community? >> That's sort of a tough question John. >> John: Okay. >> I mean the reason I say that is like the origins of OpenStack are very much NIH and there has been a very disturbing tendency to sort of re-invent the wheel. A great example is Keystone, still to this day I don't know why Keystone exists and why we created a whole new authentic standard when there were dozens and dozens of battle-tested, battle-hardened protocols and bits of code that existed prior. It's great that we're getting a little bit better at that but I still sense that the origins of the community and some of the technical leadership have resistance to organizing and working with outside components and playing nice. So, it's better but it's not great, it's not where it should be. Really OpenStack needs to be broken down into a lot of different projects that can compete with each other and all run in parallel without having to be so tightly wound together. It's still disappointing to me that we aren't doing that today. >> Randy, wonder if you could give us a little bit of a personal reflection, you've been involved in cloud many years, we've talked about some of the state of it, where do you think enterprises are when they think about their IT, how IT relates to business, some of the big challenges they're facing, and kind of this rapid pace of change that's happening in our industry right now >> Yeah well the pressures just increase. The need to pick up speed and to move faster and to have a greater velocity, that's not going away, that seems to be like an incredible macro-trend that's just going to keep driving people towards the next event. But what I see is that the tension between the infra-structure IT teams and the line of business hasn't really started to get resolved. You see a lot of enterprises back into using DevOps as a way to try to fix the culture change problems but it's just not happening fast enough. I have a lot of concerns that basically private cloud or private infra-structure for enterprises will just not materialize in the way it needs to for the next generation. And that the line of business will continue to just keep moving to public cloud. All the while all the money that's being reinvested in the public cloud is increasing their capabilities in terms feature sets and security capabilities and so on. I just, I don't see the materialization of private cloud happening very well at this point in time and I don't see any trendlines that tell me it's going to change. >> Yeah, what recommendations do you give today to the OpenStack foundation? I know that you haven't been shy in the past about giving guidance as to the direction, what do you think needs to happen to be able to help customers along that journey that they need? >> I don't give any guidance to the OpenStack Foundation anymore, I'm not on the Board of Directors, and frankly I gave a lot of advice in the past that fell on deaf ears and people were unwilling to make the changes that were necessary I think to create success. And even though I was eventually proven right, there doesn't seem to be an appetite for change. I would say that the hard partition between the Board of Directors and the technical committee that was created at the outset with the founding of the Foundation has let to a big problem which is that there's simply business concerns that are technical concerns and there are technical concerns which are business concerns and the actual structure of the Foundation does not allow that to occur because that hard partition between them. So if people on Board of Directors can't actually tell the TC that they'd like to see certain technical changes because they're business concerns and Technical Committee can't tell the Board of Directors they'd like to see business changes made because they're technical concerns around them. And I think that's, it's fundamentally broken until the bylaws are fixed. >> So Randy beyond what we've talked about already what's exciting you these days, you look at like the serverless trend, is that something that you find intriguing or maybe contrary view on it, what's exciting you these days? >> Serverless is really interesting. In fact I'd like to see serverless at the edge. I think it would be fascinating if Amazon webservices could sell a serverless capability that was actually running in the mobile carriers edge. So like on the mobile towers or in essential offices. But you could do distributive computation for IOT literally at the very edge of the network, that would be incredibly powerful. So I am very interested in serverless in that regard. With Kubernetes, I think that this is the future, I think I've seen most of the other initiatives start to fail at this point. Docker Incorporated just hasn't made the progress they need to, hopefully a change in leadership will fix that. But it does mean that more and more people are gravitating towards Kubernetes and that's a thing because whereas OpenStack is historically got no opinion, Kubernetes is a much more prescriptive model and I think that actually leads to faster innovation, a greater pace of change and combined with Helm charts, I think that we're going to see an ecosystem develop around Kubernetes that actually could be a counterweight to the public clouds and really be sort of cloud agnostic. Private, public, at the edge, who cares? >> Randy Bias, always appreciated your very opinionated viewpoints on everything that are happening here. Pleasure to catch up with you as always. John and I will be back will lots more coverage here from OpenStack Summit in Boston, thanks for watching the Cube.

>> Narrator: Live from Las Vegas. It's the Cube covering Dell EMC World 2017. Brought to you by Dell EMC. >> Welcome back everyone, we are live here in Las Vegas for Dell EMC World 2017. I'm John Furrier with the Cube, and my co-host here is Keith Townsend, @CTOAdvisor on Twitter. Our next guest is David Goulden, the president of Dell EMC infrastructure business. Great to see you. Our eighth consecutive year covering EMC World, now Dell EMC World, the first Dell EMC World, kind of a seminal moment watershed event here. You've been to all of them, you've seen the movie with EMC now. Now eight months after the close, it's Dell EMC World, but it still feels like EMC World. What's your reaction, I mean, all the same? >> No, John, it's very different, it may maybe because it's in Vegas and it's in May. So those two things are common, but the content, the breadth of the message, you mentioned it, it's eight, nine months after the closing transaction, but of course bear in mind, we had a year before that of planning after we announced, so it's really quite some time into the concept of this transaction and to a larger extent, this week for us is the coming out party. It gives us a chance to demonstrate to the world what we've spent the last nine months and the year before that planning and doing, and actually investing in, and you saw just from my remarks this morning the breadth of technology we're bringing to our customers, and the amount of innovation, and the better together story coming real, I think it's exciting. >> You know, David, I'm always complimenting you and talking behind your back when you're not around as well, but the compliment is, you're a great operational person but you're also a strategic chess player as well in terms of the industry. The Dell EMC strategy's pretty clear on the existing traditional infrastructure, data center, whatever you want to call it. It's a mature market, it's consolidating, win that business, be the number one supplier in that market, we see that playing out. However, you got to have the growth strategy. That's the future revenues that are going to come down the pipe. Describe for a minute the strategy, 'cause pretty obvious the mature market on the data center is moving to hybrid cloud, and there's a pathway there, so you lock it and load it on that being number one fast 14 generation servers, we see that, cool. Growth strategy, what's the growth strategy for Dell EMC? >> Well, don't rule out growth in on-prem data centers, right, so, let's not put that into pure mature, no growth. >> I mean it's not hockey stick. >> Right, but the market is still a massive marketplace in on-prem data centers. It's true that all the infrastructure growth, so if you look at the infrastructure marketplace, $110 billion dollars that's served by service storing networking data protection. You look at that marketplace in total and you say where's all the growth? The growth is in off-prem, we'll come back to that in a second. But the on-prem, the data center is still over sixty percent of that marketplace. And in total that market isn't growing but the consolidation opportunity you talked about is huge. And segments of it like moving to a private cloud like hyper-converged infrastructure, there are rocket ships occurring inside of that big target adjustable market. That's $60 billion dollars our data center IT spend. So there is growth for us in that. And there is growth in being the largest most capable player to consolidate, pick up share, be stronger in the newer segments than we even were in the more mature segments. So I wouldn't rule off growth there. From an infrastructure point of view, of course there's a lot of growth off-prem. Now off-prem is a very fragmented marketplace. As soon as people think off-premises, they go immediately to the web scale public cloud providers. And they're certainly a part of it, but there's the SAS companies, there is the outsource integrators, the ITS and service companies. There's a huge opportunity there. >> I mean everyone is a cloud service provider. Everyone will be, I mean, Riot Games which does League of Legends, they're a cloud company, right? I mean, everyone's kind of a cloud company or a SAS company these days, or they're trying to get there. >> That's because the whole IT industry's moving to cloud. Because cloud is an operating model, not a place. And cloud is about delivering IT at all levels, application, infrastructure, networking, whatever you think about it. It's delivering IT as a service that can be monitored and metered and charged based upon use. That's a very simple definition of a cloud and everybody wants to do that. Whether you are an on-prem data center, whether you are a third party service provider, everybody wants to offer cloud. So we shouldn't get too confused about the cloud opportunity, it is the redefinition of the IT industry. >> So David as we talked through the opportunity within the data center, one of the obvious things when you look at Dell EMC is the breadth of products, the depth of capability compared to your competitors... Traditional knowledge would tell us that, you know what, you guys have the potential to really dominate this thing, but when you're coming to customers, what's the clear message that you're bringing when it comes to specific products and the core of that growth? >> So the message to customers is we are investing for the longterm and we're investing heavily. Our strategy is not to just be good enough, it's to be the number one, so we don't want to just be the number one market share player, but also have the best technology. So our message to customers is hey, Mr. Customer, Ms. Customer, you've got a lot of things to worry about in your IT world. Ultimately, you want to be providing IT services to your customers. You need an infrastructure partner, you want a company who can be that essential infrastructure company who can provide the vast vast majority of all the things you need to be able to equip your IT shop to provide services to your customers. That's the message, and it's very powerful. Because it spans the client, through the data center, and into the cloud. And it encompasses security and all other elements of the infrastructure plate. So it's a very very powerful message. And the final thought I would tell you is relative to that, is I haven't had a customer in the last two years who told me they want more IT suppliers. They want fewer and they want them to be strategic and more capable. And that's our plate. >> Great, I want to double down on that comment. They don't want more suppliers, I buy that, and I think end-to-end you're seeing architectures, we saw Intel on stage, you're seeing 5G being end-to-end with IOT. They like the end-to-end, they like the supplier consolidation. But the other thing we're hearing in the hallways here at the event is, and this is the question for you because you manage the product portfolio, is I don't want more products, I want less products or skews if you will, whatever you want to call it. So there's a product overlap certainly with the Dell EMC combination, there's been some overlap. People have been talking about that. So how are you managing that? I know we talked about it a little bit last year just getting the roadmap cleaned up, but what specifically are you doing to manage the product overlap with respect to some of the products that kind of are overlapping between the two companies? >> Well first of all, your earlier comment was right. Customers want outcomes, and we'll come back to that. But specifically, relative to your question on overlap. The beauty of this combination is we come with one of everything and two of almost nothing, which is most unusual in a large scale tech merger. The only area we had any overlap was in the mid-tier of our storage family. Where there was the Dell SC Compellents and there was the EMC Unity family. Now, if they'd both been mature at the end of their product cycle, it could have been a longer issue. But the point is they'd just gone through a full investment to create new versions of each one. So what do you do? You roll them out, you support your customers, and you look for convergence opportunities down the road. So we didn't have to make any short term keep one, kill one, type choices because it was a very fortuitous stage. Both had been through that cycle. But that's the only part of the entire portfolio where there's any overlap. The rest is all about... >> And you're saying it's opportunistic for you because there's no real conflicting overlap. >> There's no conflict. We have two mid-range storage products, one from each family. Big deal. Most customers don't want to be confused so if they were a Unity customer we sell them Unity. If they're a Compellent customer, we sell them Compellent and we say don't worry, we're going to bring you a converged solution in the future. It's really quite simple. Everywhere else, Dell came with their technology, EMC came with ours, and we can focus upon how you create the power of more. >> Okay, so back to the end-to-end conversation because you mentioned they want less suppliers is the trend, I agree. >> And more partners. >> Multi-cloud? For technical reasons, latency and things, I think it's not ready for prime time. But certainly the direction, hybrid clouds front and center, I see that. Talking with the CEO of Oracle last week, and his briefing with me, they want to be the supplier. Everybody wants to be the end-to-end supplier. So multi-cloud implies multiple vendors, so there is still a multi-vendor. Can you just share with us your vision on that? Because it's not a one vendor take all world. Certainly an end-to-end life cycle is good, but how are you guys dealing with this multi-vendor, multi-cloud scenario and how should customers look at that in dealing with Dell EMC? >> Well first of all, we didn't say we want to be anybody's exclusive IT provider, we want to be their most strategic. Everybody has a number of IT vendors, and this is one of the challenges that most IT operations have, they have tens of vendors. In some cases they have tens of vendors for just one piece of the stack, like their management tools. So they're looking for fewer, more capable partners. And what we want to do is to position ourselves to be the most strategic amongst their handful of key partners. As it comes to multi-cloud, that all ties back to applications. So this whole conversation about cloud is often mixed up with a question around applications. I was with a customer, a large financial services customer, after lunch we were having a conversation about cloud. I asked them how many applications they had. 6,900. And that by the way, that's after they've done two years of application rationalization. So what they now want to do is figure out a strategy for those applications. Well they're not all going to sit on one cloud, they're going to sit on multiple places. Some will sit upon an internal cloud. They may have a couple different flavors of internal cloud. They're going to have some SAS vendors, they're going to have some public cloud. So multi-cloud is a reality for anybody with more than, let's say, 50 to 100 applications. It's just a way of life, particularly when you take my definition of cloud or our definition of cloud as being an offering bowl and our place. >> In the final minutes we have I know Keith's got another question that he wants to ask, but I got to ask you, 'cause you've been on the EMC side, you've been running that business with the team there, the federation over the years. You had a good trajectory, you looked at the roadmap, you've seen the growth rates. Now with the combination, I'd like you to spend a minute talking about what's different now and be specific, because now you have so much more opportunity on the revenue side with the combination. So talk about, and Michael made a comment to me just now this morning, they're winning more business. So you're winning business, you're seeing some successes, NSX with VMWare is doing great, the convergence stuff is going great, got some good product announcements. What specific wins are you having that illustrate this new growth opportunity that wasn't there before the combination? >> We're having a number of wins. We're having a number of situations where, in the data center for example, a strong dell server customer may not have much EMC storage, and we're winning the storage footprint. Conversely, we're having a lot of wins where we've got a strong storage footprint in the data center with EMC's strength and we're winning significant server deals on the back of that. So we're seeing this cross synergy occurring just on the back of having a number one position on both sides. We're also seeing our ability to bring brand new products to the market like VxRail that includes a PowerEdge, that includes VMware, that includes EMC software. So we're winning because we have the broader portfolio, and we're winning because we're creating new products to leverage the best of both. And of course, a big piece of what I talked about this morning was 14G service. That is going to be the next generation bedrock of the data center. We'll incorporate that across our entire portfolio. >> Why is that important? Quickly, what's the value proposition? >> What's the value proposition for 14G? >> Yeah. >> It's been designed for the digital transformation of the future. It's been designed not only to host existing applications but to host those scale-out high performance applications of the future. And we can uniquely provide the scalability, the performance, the security those applications need. So it's built for the next generation. It's built thinking about things like machine learning, deep learning, artificial intelligence. It's the platform for those applications, and that's really powerful to have that inside the portfolio. >> So David, digital transformation, a lot of time to value, a lot of buzzwords I've heard today that I've generally heard from my management consultant days. Dell EMC is now the leader in the infrastructure space. You guys are now having conversations with much different people. CMO, COO, CEO, CIO... What lends Dell technologies, Dell EMC, the credibility to come to these new contacts within enterprise? >> Keith, I'd say a couple things. So first of all, we have the world's most advanced platform as a service tool with Pivotal. There are more cloud native applications being built on the Pivotal framework than any other single framework out there. >> Keith: I'm a big fan of Pivotal. >> So am I. And it lets customers become software businesses and everybody talks about becoming a software business. And it creates not just a platform but a toolkit, and also through Pivotal labs, the ability to train people. So Pivotal gives us the credibility to have that software conversation. And then on the back of Pivotal, and just on the back of what we're doing in the infrastructure business, we recognize that there's IT transformation and there's digital transformation. And we're building infrastructure that is aligned to support both of those. So we're building applications for big data Hadoop. We're building infrastructure for IOT. We're building applications for next generation digital transformations. So the infrastructure side of the business is able to address IT transformation and digital transformation at an infrastructure layer and then we've got the best tool out there for the digital transformation applications. So I think that gives us a lot of credibility, and so we're having that conversation. >> David final question, take your president of Dell EMC hat off for a second and put your personal David Goulden hat on. And I'd like to have you just reflect in your own words what surprises you about this combination? It's been historic, you've got the entrepreneurial led CEO Michael Dell, your private. It feels good, we haven't heard really any horror stories about the integrations. There's been some bumps but no major horror stories, so congratulations. But in your own words, what's the biggest surprise that you've seen given the history you have with EMC and as the senior executive at Dell EMC, what's the biggest surprise that folks might not know about in this massive combination? >> I think you've hit upon a couple of them, John. So one, we planned for contingencies that didn't happen. You put a big merger together you expect some things to go wrong in the night. They didn't, touch wood. So that perhaps is an attribute to the planning and the integration that went on. And then on the other side, it's just how quickly we've been able to bring things together. I thought it was going to take us another six to nine months before we could really have customers turn around to us and say we are now viewing you as our most strategic partner. And that's happening to me today, and I really didn't think we'd be there within the first Dell EMC World. I thought it would be the Dell EMC World a year later when we could have those conversations. I think when you just look at the amount of innovation and the progress we've made in a short period of time, because I think what's happened here is we've hit a little bit on an inflection point. We are touching upon a real requirement those customers have, and maybe even more than we ever realized. They really want a technology innovator who is broadly based, who is not constrained by some of the conventional models out there who can push the envelope with them. >> You must have those moments where you kind of pinch yourself and say wow, look where we are, kind of how the industry's changed over the years, how you guys have a nice pole position. Interesting times. >> We're excited about it and we think, also more importantly, we're playing a long term game. We view that in three to five years time the industry becomes even more consolidated. And we think that we have this unique position as this essential infrastructure broad based platform company that can just continue to grow from here. >> Michael Dell says the same thing, Jeff Bezos at Amazon, ten years of innovation is what it pretty much takes to kind of make things happen. Congratulations on your success David, great to see you inside the Cube. >> Thank you. >> Thanks for your candid commentary. We really don't talk behind your back, I mentioned that earlier. We have to say good things about you. David Goulden, president of Dell EMC infrastructure here inside the Cube. I'm John Furrier with Keith Townsend live from Las Vegas, we'll be back with more coverage, stay with us.

(bright music) >> Narrator: Live from Silicon Valley. It's theCUBE, covering Google Cloud Next 17. >> Okay, welcome back, everyone. We're live in Palo Alto for theCUBE special two day coverage here in Palo Alto. We have reporters, we have analysts on the ground in San Francisco, analyzing what's going on with Google Next, we have all the great action. Of course, we also have reporters at Open Compute Summit, which is also happening in San Hose, and Intel's at both places, and we have Intel senior manager on the line here, on the phone, Lisa Spelman, vice president and general manager of the Xeon product line, product manager responsibility as well as marketing across the data center. Lisa, welcome to theCUBE, and thanks for calling in and dissecting Google Next, as well as teasing out maybe a little bit of OCP around the Xeon processor, thanks for calling. >> Lisa: Well, thank you for having me, and it's hard to be in many places at once, so it's a busy week and we're all over, so that's that. You know, we'll do this on the phone, and next time we'll do it in person. >> I'd love to. Well, more big news is obviously Intel has a big presence with the Google Next, and tomorrow there's going to be some activity with some of the big name executives at Google. Talking about your relationship with Google, aka Alphabet, what are some of the key things that you guys are doing with Google that people should know about, because this is a very turbulent time in the ecosystem of the tech business. You saw Mobile World Congress last week, we've seen the evolution of 5G, we have network transformation going on. Data centers are moving to a hybrid cloud, in some cases, cloud native's exploding. So all new kind of computing environment is taking shape. What is Intel doing here at Google Next that's a proof point to the trajectory of the business? >> Lisa: Yeah, you know, I'd like to think it's not too much of a surprise that we're there, arm in arm with Google, given all of the work that we've done together over the last several years in that tight engineering and technical partnership that we have. One of the big things that we've been working with Google on is, as they move from delivering cloud services for their own usage and for their own applications that they provide out to others, but now as they transition into being a cloud service provider for enterprises and other IT shops as well, so they've recently launched their Google Cloud platform, just in the last week or so. Did a nice announcement about the partnership that we have together, and how the Google Cloud platform is now available and running and open for business on our latest next generation Intel Xeon product, and that's codenamed Skylake, but that's something that we've been working on with them since the inception of the design of the product, so it's really nice to have it out there and in the market, and available for customers, and we very much value partnerships, like the one we have with Google, where we have that deep technical engagement to really get to the heart of the workload that they need to provide, and then can design product and solution around that. So you don't just look at it as a one off project or a one time investment, it's an ongoing continuation and evolution of new product, new features, new capabilities to continue to improve their total cost of ownership and their customer experience. >> Well, Lisa, this is your baby, the Xeon, codename Skylake, which I love that name. Intel always has great codenames, by the way, we love that, but it's real technology. Can you share some specific features of what's different around these new workloads because, you know, we've been teasing out over the past day and we're going to be talking tomorrow as well about these new use cases, because you're looking at a plethora of use cases, from IoT edge all the way down into cloud native applications. What specific things is Xeon doing that's next generation that you could highlight, that points to this new cloud operating system, the cloud service providers, whether it's managed services to full blown down and dirty cloud? >> Lisa: So it is my baby, I appreciate you saying that, and it's so exciting to see it out there and starting to get used and picked up and be unleashing it on the world. With this next generation of Xeon, it's always about the processor, but what we've done has gone so much beyond that, so we have a ton of what we call platform level innovation that is coming in, we really see this as one of our biggest kind of step function improvements in the last 10 years that we've offered. Some of the features that we've already talked about are things like AVX-512 instructions, which I know just sounds fun and rolls of the tongue, but really it's very specific workload acceleration for things like high performance computing workloads. And high performance computing is something that we see more and more getting used in access in cloud style infrastructure. So it's this perfect marrying of that workload specifically deriving benefit from the new platforms, and seeing really strong performance improvements. It also speaks to the way with Intel and Xeon families, 'cause remember, with Xeon, we have Xeon Phi, you've got standard Xeon, you've got Xeon D. You can use these instructions across the families and have workloads that can move to the most optimized hardware for whatever you're trying to drive. Some of the other things that we've talked about announced is we'll have our next generation of Intel Resource Director technology, which really helps you manage and provide quality of service within you application, which is very important to cloud service providers, giving them control over hardware and software assets so that they can deliver the best customer experience to their customers based on the service level agreement they've signed up for. And then the other one is Intel Omni-Path architecture, so again, fairly high performance computing focused product, Omni-Path is a fabric, and we're going to offer that in an integrated fashion with Skylake so that you can get even higher level of performance and capability. So we're looking forward to a lot more that we have to come, the whole of the product line will continue to roll out in the middle of this year, but we're excited to be able to offer an early version to the cloud service providers, get them started, get it out in the market and then do that full scale enterprise validation over the next several months. >> So I got to ask you the question, because this is something that's coming up, we're seeing a transition, also the digital transformation's been talked about for a while. Network transformation, IoTs all around the corner, we've got autonomous vehicles, smart cities, on and on. But I got to ask you though, the cloud service providers seems to be coming out of this show as a key storyline in Google Next as the multi cloud architectures become very clear. So it's become clear, not just this show but it's been building up to this, it's pretty clear that it's going to be a multi cloud world. As well as you're starting to see the providers talk about their SaaS offerings, Google talking about G Suite, Microsoft talks about Office 365, Oracle has their apps, IBM's got Watson, so you have this SaaSification. So this now creates a whole another category of what cloud is. If you include SaaS, you're really talking about Salesforce, Adobe, you know, on and on the list, everyone is potentially going to become a SaaS provider whether they're unique cloud or partnering with some other cloud. What does that mean for a cloud service provider, what do they need for applications support requirements to be successful? >> So when we look at the cloud service provider market inside of Intel, we are talking about infrastructure as a service, platform as a service and software as a service. So cutting across the three major categories, I give you like, up until now, infrastructure of the service has gotten a lot of the airtime or focus, but SaaS is actually the bigger business, and that's why you see, I think, people moving towards it, especially as enterprise IT becomes more comfortable with using SaaS application. You know, maybe first they started with offloading their expense report tool, but over time, they've moved into more sophisticated offerings that free up resources for them to do their most critical or business critical applications the they require to stay in more of a private cloud. I think that's evolution to a multi cloud, a hybrid cloud, has happened across the entire industry, whether you are an enterprise or whether you are a cloud service provider. And then the move to SaaS is logical, because people are demanding just more and more services. One of the things through all our years of partnering with the biggest to the smallest cloud service providers and working so closely on those technical requirements that we've continued to find is that total cost of ownership really is king, it's that performance per dollar, TCO, that they can provide and derive from their infrastructure, and we focused a lot of our engineering and our investment in our silicon design around providing that. We have multi generations that we've provided even just in the last five years to continue to drive those step function improvements and really optimize our hardware and the code that runs on top of it to make sure that it does continue to deliver on those demanding workloads. The other thing that we see the providers focusing on is what's their differentiation. So you'll see cloud service providers that will look through the various silicon features that we offer and choose, they'll pick and choose based on whatever their key workload is or whatever their key market is, and really kind of hone in and optimize for those silicon features so that they can have a differentiated offering into the market about what capabilities and services they'll provide. So it's an area where we continue to really focus our efforts, understand the workload, drive the TCO down, and then focus in on the design point of what's going to give that differentiation and acceleration. >> It's interesting, the definition's also where I would agree with you, the cloud service provider is a huge market when you even look at the SaaS. 'Cause whether you're talking about Uber or Netflix, for instance, examples people know about in real life, you can't ignore these new diverse use cases coming out. For instance, I was just talking with Stu Miniman, one of our analysts here, Wikibon, and Riot Games could be considered a cloud, right, I mean, 'cause it's a SaaS platform, it's gaming. You're starting to see these new apps coming out of the woodwork. There seems to be a requirement for being agile as a cloud provider. How do you enable that, what specifically can you share, if I'm a cloud service provider, to be ready to support anything that's coming down the pike? >> Lisa: You know, we do do a lot of workload and market analysis inside of Intel and the data center group, and then if you have even seen over the past five years, again, I'll just stick with the new term, how much we've expanded and broadened our product portfolio. So again, it will still be built upon that foundation of Xeon and what we have there, but we've gone to offer a lot of varieties. So again, I mentioned Xeon Phi. Xeon Phi at the 72 cores, bootable Xeon but specific workload acceleration targeted at high performance computing and other analytics workloads. And then you have things at the other end. You've got Xeon D, which is really focused at more frontend web services and storage and network workloads, or Atom, which is even lower power and more focused on cold and warm storage workloads, and again, that network function. So you could then say we're not just sticking with one product line and saying this is the answer for everything, we're saying here's the core of what we offer, and the features people need, and finding options, whether they range from low power to high power high performance, and kind of mixed across that whole kind of workload spectrum, and then we've broadened around the CPU into a lot of other silicon innovation. So I don't know if you guys have had a chance to talk about some of the work that we're doing with FPGAs, with our FPGA group and driving and delivering cloud and network acceleration through FPGAs. We've also introduced new products in the last year like Silicon Photonics, so dealing with network traffic crossing through-- >> Well, is FPGA, that's the Altera stuff, we did talk with them, they're doing the programmable chips. >> Lisa: Exactly, so it requires a level of sophistication and understanding what you need the workload to accelerate, but once you have it, it is a very impressive and powerful performance gain for you, so the cloud service providers are a perfect market for that, as are the cloud service providers because they have very sophisticated IT and very technically astute engineering teams that are able to really, again, go back to the workload, understand what they need and figure out the right software solution to pair with it. So that's been a big focus of our targeting. And then, like I said, we've added all these different things, different new products to the platform that start to, over time, just work better and better together, so when you have things like Intel SSD there together with Intel CPUs and Intel Ethernet and Intel FPGA and Intel Silicon Photonics, you can start to see how the whole package, when it's designed together under one house, can offer a tremendous amount of workload acceleration. >> I got to ask you a question, Lisa, 'cause this comes up, while you're talking, I'm just in my mind visualizing a new kind of virtual computer server, the cloud is one big server, so it's a design challenge. And what was teased out at Mobile World Congress that was very clear was this new end to end architecture, you know, re-imagined, but if you have these processors that have unique capabilities, that have use case specific capabilities, in a way, you guys are now providing a portfolio of solutions so that it almost can be customized for a variety of cloud service providers. Am I getting that right, is that how you guys see this happening where you guys can just say, "Hey, just mix and match what you want and you're good." >> Lisa: Well, and we try to provide a little bit more guidance than as you wish, I mean, of course, people have their options to choose, so like, with the cloud service providers, that's what we have, really tight engineering engagement, so that we can, you know, again, understand what they need, what their design point is, what they're honing in on. You might work with one cloud service provider that is very facilities limited, and you might work with another one that is, they're face limited, the other one's power limited, and another one has performance is king, so you can, we can cut some SKUs to help meet each of those needs. Another good example is in the artificial intelligence space where we did another acquisition last year, a company called Nervana that's working on optimized silicon for a neural network. And so now we have put together this AI portfolio, so instead of saying, "Oh, here's one answer "for artificial intelligence," it's, "Here's a multitude of answers where you've got Xeon," so if you have, I'm going to utilize capacity, and are starting down your artificial intelligence journey, just use your Xeon capacity with an optimized framework and you'll get great results and you can start your journey. If you are monetizing and running your business based on what AI can do for you and you are leading the pack out there, you've got the best data scientists and algorithm writers and peak running experts in the world, then you're going to want to use something like the silicon that we acquired from the Nervana team, and that codename is Lake Crest, speaking of some lakes there. And you'll want to use something like Xeon with Lake Crest to get that ultimate workload acceleration. So we have the whole portfolio that goes from Xeon to Xeon Phi to Xeon with FPGAs or Xeon with Lake Crest. Depending on what you're doing, and again, what your design point is, we have a solution for you. And of course, when we say solution, we don't just mean hardware, we mean the optimized software frameworks and the libraries and all of that, that actually give you something that can perform. >> On the competitive side, we've seen the processor landscape heat up on the server and the cloud space. Obviously, whether it's from a competitor or homegrown foundry, whatever fabs are out there, I mean, so Intel's always had a great partnership with cloud service providers. Vis-a-vis the competition and context to that, what are you guys doing specifically and how you'd approach the marketplace in light of competition? >> Lisa: So we do operate in a highly competitive market, and we always take all competitors seriously. So far we've seen the press heat up, which is different than seeing all of the deployments, so what we look for is to continue to offer the highest performance and lowest total cost of ownership for all our customers, and in this case, the cloud service providers, of course. And what do we do is we kind of stick with our game plan of putting the best silicon in the world into the market on a regular beat rate and cadence, and so there's always news, there's always an interesting story, but when you look at having had eight new products and new generations in market since the last major competitive x86 product, that's kind of what we do, just keep delivering so that our customers know that they can bet on us to always be there and not have these massive gaps. And then I also talked to you about portfolio expansion, we don't bet on just one horse, we give our customers the choice to optimize for their workloads, so you can go up to 72 cores with Xeon Phi if that's important, you can go as low as two cores with Atom, if that's what works for you. Just an example of how we try to kind of address all of our customer segments with the right product at the right time. >> And IoT certainly brings a challenge too, when you hear about network edge, that's a huge, huge growth area, I mean, you can't deny that that's going to be amazing, you look at the cars are data centers these days, right? >> Lisa: A data center on wheels. >> Data center on wheels. >> Lisa: That's one of the fun things about my role, even in the last year, is that growing partnership, even inside of Intel with our IoT team, and just really going through all of the products that we have in development, and how many of them can be reused and driven towards IoT solution. The other thing is, if you look into the data center space, I genuinely believe we have the world's best ecosystem, you can't find an ISV that we haven't worked with to optimize their solution to run best on Intel architecture and get that workload acceleration. And now we have the chance to put that same playbook into play in the IoT space, so it's a growing, somewhat nascent but growing market with a ton of opportunity and a ton of standards to still be built, and a lot of full solution kits to be put together. And that's kind of what Intel does, you know, we don't just throw something out to the market and say, "Good luck," we actually put the ecosystem together around it so that it performs. But I think that's kind of what you see with, I don't know if you guys saw our Intel GO announcement, but it's really like the software development kit and the whole product offering for what you need for truly delivering automated vehicles. >> Well, Lisa, I got to say, so you guys have a great formula, why fix what's not broken, stay with Moore's law, keep that cadence going, but what's interesting is you are listening and adapting to the architectural shifts, which is smart, so congratulations and I think, as the cloud service provider world changes, and certainly in the data center, it's going to be a turbulent time, but a lot of opportunity, and so good to have that reliability and, if you can make the software go faster then they can write more software faster, so-- >> Lisa: Yup, and that's what we've seen every time we deliver a step function improvement in performance, we see a step function improvement in demand, and so the world is still hungry for more and more compute, and we see this across all of our customer bases. And every time you make that compute more affordable, they come up with new, innovative, different ways to do things, to get things done and new services to offer, and that fundamentally is what drives us, is that desire to continue to be the backbone of that industry innovation. >> If you could sum up in a bumper sticker what that step function is, what is that new step function? >> Lisa: Oh, when we say step functions of improvements, I mean, we're always looking at targeting over 20% performance improvement per generation, and then on top of that, we've added a bunch of other capabilities beyond it. So it might show up as, say, a security feature as well, so you're getting the massive performance improvement gen to gen, and then you're also getting new capabilities like security features added on top. So you'll see more and more of those types of announcements from us as well where we kind of highlight the, not just the performance but that and what else comes with it, so that you can continue to address, you know, again, the growing needs that are out there, so all we're trying to say is, day a step ahead. >> All right, Lisa Spelman, VP of the GM, the Xeon product family as well as marketing and data center. Thank you for spending the time and sharing your insights on Google Next, and giving us a peak at the portfolio of the Xeon next generation, really appreciate it, and again, keep on bringing that power, Moore's law, more flexibility. Thank you so much for sharing. We're going to have more live coverage here in Palo Alto after this short break. (bright music)