>> Narrator: TheCUBE's live coverage is made possible by funding from Dell Technologies. Creating technologies that drive human progress. (light airy music) >> Hi, everybody, welcome back to the Fira in Barcelona. My name is Dave Vellante. I'm here with my co-host Dave Nicholson. Lisa Martin is in the house. John Furrier is pounding the news from our Palo Alto studio. We are super excited to be talking about cloud at the edge, what that means. Charles Tsai is here. He's the Senior Director of product management at Dell Technologies and Peter Fetterolf is the Chief Technology Officer at ACG Business Analytics, a firm that goes deep into the TCO and the telco space, among other things. Gents, welcome to theCUBE. Thanks for coming on. Thank you. >> Good to be here. >> Yeah, good to be here. >> So I've been in search all week of the elusive next wave of monetization for the telcos. We know they make great money on connectivity, they're really good at that. But they're all talking about how they can't let this happen again. Meaning we can't let the over the top vendors yet again, basically steal our cookies. So we're going to not mess it up this time. We're going to win in the monetization. Charles, where are those monetization opportunities? Obviously at the edge, the telco cloud at the edge. What is that all about and where's the money? >> Well, Dave, I think from a Dell's perspective, what we want to be able to enable operators is a solution that enable them to roll out services much quicker, right? We know there's a lot of innovation around IoT, MEG and so on and so forth, but they continue to rely on traditional technology and way of operations is going to take them years to enable new services. So what Dell is doing is now, creating the entire vertical stack from the hardware through CAST and automation that enable them, not only to push out services very quickly, but operating them using cloud principles. >> So it's when you say the entire vertical stack, it's the integrated hardware components with like, for example, Red Hat on top- >> Right. >> Or a Wind River? >> That's correct. >> Okay, and then open API, so the developers can create workloads, I presume data companies. We just had a data conversation 'cause that was part of the original stack- >> That's correct. >> So through an open ecosystem, you can actually sort of recreate that value, correct? >> That's correct. >> Okay. >> So one thing Dell is doing, is we are offering an infrastructure block where we are taking over the overhead of certifying every release coming from the Red Hat or the Wind River of the world, right? We want telcos to spend their resources on what is going to generate them revenue. Not the overhead of creating this cloud stack. >> Dave, I remember when we went through this in the enterprise and you had companies like, you know, IBM with the AS400 and the mainframe saying it's easier to manage, which it was, but it's still, you know, it was subsumed by the open systems trend. >> Yeah, yeah. And I think that's an important thing to probe on, is this idea of what is, what exactly does it mean to be cloud at the edge in the telecom space? Because it's a much used term. >> Yeah. >> When we talk about cloud and edge, in sort of generalized IT, but what specifically does it mean? >> Yeah, so when we talk about telco cloud, first of all it's kind of different from what you're thinking about public cloud today. And there's a couple differences. One, if you look at the big hyperscaler public cloud today, they tend to be centralized in huge data centers. Okay, telco cloud, there are big data centers, but then there's also regional data centers. There are edge data centers, which are your typical like access central offices that have turned data centers, and then now even cell sites are becoming mini data centers. So it's distributed. I mean like you could have like, even in a country like say Germany, you'd have 30,000 soul sites, each one of them being a data center. So it's a very different model. Now the other thing I want to go back to the question of monetization, okay? So how do you do monetization? The only way to do that, is to be able to offer new services, like Charles said. How do you offer new services? You have to have an open ecosystem that's going to be very, very flexible. And if we look at where telcos are coming from today, they tend to be very inflexible 'cause they're all kind of single vendor solutions. And even as we've moved to virtualization, you know, if you look at packet core for instance, a lot of them are these vertical stacks of say a Nokia or Ericson or Huawei where you know, you can't really put any other vendors or any other solutions into that. So basically the idea is this kind of horizontal architecture, right? Where now across, not just my central data centers, but across my edge data centers, which would be traditionally my access COs, as well as my cell sites. I have an open environment. And we're kind of starting with, you know, packet core obviously with, and UPFs being distributed, but now open ran or virtual ran, where I can have CUs and DUs and I can split CUs, they could be at the soul site, they could be in edge data centers. But then moving forward, we're going to have like MEG, which are, you know, which are new kinds of services, you know, could be, you know, remote cars it could be gaming, it could be the Metaverse. And these are going to be a multi-vendor environment. So one of the things you need to do is you need to have you know, this cloud layer, and that's what Charles was talking about with the infrastructure blocks is helping the service providers do that, but they still own their infrastructure. >> Yeah, so it's still not clear to me how the service providers win that game but we can maybe come back to that because I want to dig into TCO a little bit. >> Sure. >> Because I have a lot of friends at Dell. I don't have a lot of friends at HPE. I've always been critical when they take an X86 server put a name on it that implies edge and they throw it over the fence to the edge, that's not going to work, okay? We're now seeing, you know we were just at the Dell booth yesterday, you did the booth crawl, which was awesome. Purpose-built servers for this environment. >> Charles: That's right. >> So there's two factors here that I want to explore in TCO. One is, how those next gen servers compare to the previous gen, especially in terms of power consumption but other factors and then how these sort of open ran, open ecosystem stacks compared to proprietary stacks. Peter, can you help us understand those? >> Yeah, sure. And Charles can comment on this as well. But I mean there, there's a couple areas. One is just moving the next generation. So especially on the Intel side, moving from Ice Lake to the Sapphire Rapids is a big deal, especially when it comes to the DU. And you know, with the radios, right? There's the radio unit, the RU, and then there's the DU the distributed unit, and the CU. The DU is really like part of the radio, but it's virtualized. When we moved from Ice lake to Sapphire Rapids, which is third generation intel to fourth generation intel, we're literally almost doubling the performance in the DU. And that's really important 'cause it means like almost half the number of servers and we're talking like 30, 40, 50,000 servers in some cases. So, you know, being able to divide that by two, that's really big, right? In terms of not only the the cost but all the TCO and the OpEx. Now another area that's really important, when I was talking moving from these vertical silos to the horizontal, the issue with the vertical silos is, you can't place any other workloads into those silos. So it's kind of inefficient, right? Whereas when we have the horizontal architecture, now you can place workloads wherever you want, which basically also means less servers but also more flexibility, more service agility. And then, you know, I think Charles can comment more, specifically on the XR8000, some things Dell's doing, 'cause it's really exciting relative to- >> Sure. >> What's happening in there. >> So, you know, when we start looking at putting compute at the edge, right? We recognize the first thing we have to do is understand the environment we are going into. So we spend with a lot of time with telcos going to the south side, going to the edge data center, looking at operation, how do the engineer today deal with maintenance replacement at those locations? Then based on understanding the operation constraints at those sites, we create innovation and take a traditional server, remodel it to make sure that we minimize the disruption to the operations, right? Just because we are helping them going from appliances to open compute, we do not want to disrupt what is have been a very efficient operation on the remote sites. So we created a lot of new ideas and develop them on general compute, where we believe we can save a lot of headache and disruptions and still provide the same level of availability, resiliency, and redundancy on an open compute platform. >> So when we talk about open, we don't mean generic? Fair? See what I mean? >> Open is more from the software workload perspective, right? A Dell server can run any type of workload that customer intend. >> But it's engineered for this? >> Environment. >> Environment. >> That's correct. >> And so what are some of the environmental issues that are dealt with in the telecom space that are different than the average data center? >> The most basic one, is in most of the traditional cell tower, they are deployed within cabinets instead of racks. So they are depth constraints that you just have no access to the rear of the chassis. So that means on a server, is everything you need to access, need to be in the front, nothing should be in the back. Then you need to consider how labor union come into play, right? There's a lot of constraint on who can go to a cell tower and touch power, who can go there and touch compute, right? So we minimize all that disruption through a modular design and make it very efficient. >> So when we took a look at XR8000, literally right here, sitting on the desk. >> Uh-huh. >> Took it apart, don't panic, just pulled out some sleds and things. >> Right, right. >> One of the interesting demonstrations was how it compared to the size of a shoe. Now apparently you hired someone at Dell specifically because they wear a size 14 shoe, (Charles laughs) so it was even more dramatic. >> That's right. >> But when you see it, and I would suggest that viewers go back and take a look at that segment, specifically on the hardware. You can see exactly what you just referenced. This idea that everything is accessible from the front. Yeah. >> So I want to dig in a couple things. So I want to push back a little bit on what you were saying about the horizontal 'cause there's the benefit, if you've got the horizontal infrastructure, you can run a lot more workloads. But I compare it to the enterprise 'cause I, that was the argument, I've made that argument with converged infrastructure versus say an Oracle vertical stack, but it turned out that actually Oracle ran Oracle better, okay? Is there an analog in telco or is this new open architecture going to be able to not only service the wide range of emerging apps but also be as resilient as the proprietary infrastructure? >> Yeah and you know, before I answer that, I also want to say that we've been writing a number of white papers. So we have actually three white papers we've just done with Dell looking at infrastructure blocks and looking at vertical versus horizontal and also looking at moving from the previous generation hardware to the next generation hardware. So all those details, you can find the white papers, and you can find them either in the Dell website or at the ACG research website >> ACGresearch.com? >> ACG research. Yeah, if you just search ACG research, you'll find- >> Yeah. >> Lots of white papers on TCO. So you know, what I want to say, relative to the vertical versus horizontal. Yeah, obviously in the vertical side, some of those things will run well, I mean it won't have issues. However, that being said, as we move to cloud native, you know, it's very high performance, okay? In terms of the stack, whether it be a Red Hat or a VMware or other cloud layers, that's really become much more mature. It now it's all CNF base, which is really containerized, very high performance. And so I don't think really performance is an issue. However, my feeling is that, if you want to offer new services and generate new revenue, you're not going to do it in vertical stacks, period. You're going to be able to do a packet core, you'll be able to do a ran over here. But now what if I want to offer a gaming service? What if I want to do metaverse? What if I want to do, you have to have an environment that's a multi-vendor environment that supports an ecosystem. Even in the RAN, when we look at the RIC, and the xApps and the rApps, these are multi-vendor environments that's going to create a lot of flexibility and you can't do that if you're restricted to, I can only have one vendor running on this hardware. >> Yeah, we're seeing these vendors work together and create RICs. That's obviously a key point, but what I'm hearing is that there may be trade offs, but the incremental value is going to overwhelm that. Second question I have, Peter is, TCO, I've been hearing a lot about 30%, you know, where's that 30% come from? Is it Op, is it from an OpEx standpoint? Is it labor, is it power? Is it, you mentioned, you know, cutting the number of servers in half. If I can unpack the granularity of that TCO, where's the benefit coming from? >> Yeah, the answer is yes. (Peter and Charles laugh) >> Okay, we'll do. >> Yeah, so- >> One side that, in terms of, where is the big bang for the bucks? >> So I mean, so you really need to look at the white paper to see details, but definitely power, definitely labor, definitely reducing the number of servers, you know, reducing the CapEx. The other thing is, is as you move to this really next generation horizontal telco cloud, there's the whole automation and orchestration, that is a key component as well. And it's enabled by what Dell is doing. It's enabled by the, because the thing is you're not going to have end-to-end automation if you have all this legacy stuff there or if you have these vertical stacks where you can't integrate. I mean you can automate that part and then you have separate automation here, you separate. you need to have integrated automation and orchestration across the whole thing. >> One other point I would add also, right, on the hardware perspective, right? With the customized hardware, what we allow operator to do is, take out the existing appliance and push a edge optimized server without reworking the entire infrastructure. There is a significant saving where you don't have to rethink about what is my power infrastructure, right? What is my security infrastructure? The server is designed to leverage the existing, what is already there. >> How should telco, Charles, plan for this transformation? Are there specific best practices that you would recommend in terms of the operational model? >> Great question. I think first thing is do an inventory of what you have. Understand what your constraints are and then come to Dell, we will love to consult with you, based on our experience on the best practices. We know how to minimize additional changes. We know how to help your support engineer, understand how to shift appliance based operation to a cloud-based operation. >> Is that a service you offer? Is that a pre-sales freebie? What is maybe both? >> It's both. >> Yeah. >> It's both. >> Yeah. >> Guys- >> Just really quickly. >> We're going to wrap. >> The, yeah. Dave loves the TCO discussion. I'm always thinking in terms of, well how do you measure TCO when you're comparing something where you can't do something to an environment where you're going to be able to do something new? And I know that that's always the challenge in any kind of emerging market where things are changing, any? >> Well, I mean we also look at, not only TCO, but we look at overall business case. So there's basically service at GLD and revenue and then there's faster time to revenues. Well, and actually ACG, we actually have a platform called the BAE or Business Analytics Engine that's a very sophisticated simulation cloud-based platform, where we can actually look at revenue month by month. And we look at what's the impact of accelerating revenue by three months. By four months. >> So you're looking into- >> By six months- >> So you're forward looking. You're just not consistently- >> So we're not just looking at TCO, we're looking at the overall business case benefit. >> Yeah, exactly right. There's the TCO, which is the hard dollars. >> Right. >> CFO wants to see that, he or she needs to see that. But you got to, you can convince that individual, that there's a business case around it. >> Peter: Yeah. >> And then you're going to sign up for that number. >> Peter: Yeah. >> And they're going to be held to it. That's the story the world wants. >> At the end of the day, telcos have to be offered new services 'cause look at all the money that's been spent. >> Dave: Yeah, that's right. >> On investment on 5G and everything else. >> 0.5 trillion over the next seven years. All right, guys, we got to go. Sorry to cut you off. >> Okay, thank you very much. >> But we're wall to wall here. All right, thanks so much for coming on. >> Dave: Fantastic. >> All right, Dave Vellante, for Dave Nicholson. Lisa Martin's in the house. John Furrier in Palo Alto Studios. Keep it right there. MWC 23 live from the Fira in Barcelona. (light airy music)

>>from around the globe. It's the Cube covering >>space and cybersecurity. Symposium 2020 hosted by Cal Poly >>Over On Welcome to this Special virtual conference. The Space and Cybersecurity Symposium 2020 put on by Cal Poly with support from the Cube. I'm John for your host and master of ceremonies. Got a great topic today in this session. Really? The intersection of space and cybersecurity. This topic and this conversation is the cybersecurity workforce development through public and private partnerships. And we've got a great lineup. We have Jeff Armstrong's the president of California Polytechnic State University, also known as Cal Poly Jeffrey. Thanks for jumping on and Bang. Go ahead. The second director of C four s R Division. And he's joining us from the office of the Under Secretary of Defense for the acquisition Sustainment Department of Defense, D O D. And, of course, Steve Jake's executive director, founder, National Security Space Association and managing partner at Bello's. Gentlemen, thank you for joining me for this session. We got an hour conversation. Thanks for coming on. >>Thank you. >>So we got a virtual event here. We've got an hour, have a great conversation and love for you guys do? In opening statement on how you see the development through public and private partnerships around cybersecurity in space, Jeff will start with you. >>Well, thanks very much, John. It's great to be on with all of you. Uh, on behalf Cal Poly Welcome, everyone. Educating the workforce of tomorrow is our mission to Cal Poly. Whether that means traditional undergraduates, master students are increasingly mid career professionals looking toe up, skill or re skill. Our signature pedagogy is learn by doing, which means that our graduates arrive at employers ready Day one with practical skills and experience. We have long thought of ourselves is lucky to be on California's beautiful central Coast. But in recent years, as we have developed closer relationships with Vandenberg Air Force Base, hopefully the future permanent headquarters of the United States Space Command with Vandenberg and other regional partners, we have discovered that our location is even more advantages than we thought. We're just 50 miles away from Vandenberg, a little closer than u C. Santa Barbara, and the base represents the southern border of what we have come to think of as the central coast region. Cal Poly and Vandenberg Air force base have partner to support regional economic development to encourage the development of a commercial spaceport toe advocate for the space Command headquarters coming to Vandenberg and other ventures. These partnerships have been possible because because both parties stand to benefit Vandenberg by securing new streams of revenue, workforce and local supply chain and Cal Poly by helping to grow local jobs for graduates, internship opportunities for students, and research and entrepreneurship opportunities for faculty and staff. Crucially, what's good for Vandenberg Air Force Base and for Cal Poly is also good for the Central Coast and the US, creating new head of household jobs, infrastructure and opportunity. Our goal is that these new jobs bring more diversity and sustainability for the region. This regional economic development has taken on a life of its own, spawning a new nonprofit called Reach, which coordinates development efforts from Vandenberg Air Force Base in the South to camp to Camp Roberts in the North. Another factor that is facilitated our relationship with Vandenberg Air Force Base is that we have some of the same friends. For example, Northrop Grumman has has long been an important defense contractor, an important partner to Cal poly funding scholarships and facilities that have allowed us to stay current with technology in it to attract highly qualified students for whom Cal Poly's costs would otherwise be prohibitive. For almost 20 years north of grimness funded scholarships for Cal Poly students this year, their funding 64 scholarships, some directly in our College of Engineering and most through our Cal Poly Scholars program, Cal Poly Scholars, a support both incoming freshman is transfer students. These air especially important because it allows us to provide additional support and opportunities to a group of students who are mostly first generation, low income and underrepresented and who otherwise might not choose to attend Cal Poly. They also allow us to recruit from partner high schools with large populations of underrepresented minority students, including the Fortune High School in Elk Grove, which we developed a deep and lasting connection. We know that the best work is done by balanced teams that include multiple and diverse perspectives. These scholarships help us achieve that goal, and I'm sure you know Northrop Grumman was recently awarded a very large contract to modernized the U. S. I. C B M Armory with some of the work being done at Vandenberg Air Force Base, thus supporting the local economy and protecting protecting our efforts in space requires partnerships in the digital realm. How Polly is partnered with many private companies, such as AWS. Our partnerships with Amazon Web services has enabled us to train our students with next generation cloud engineering skills, in part through our jointly created digital transformation hub. Another partnership example is among Cal Poly's California Cybersecurity Institute, College of Engineering and the California National Guard. This partnership is focused on preparing a cyber ready workforce by providing faculty and students with a hands on research and learning environment, side by side with military, law enforcement professionals and cyber experts. We also have a long standing partnership with PG and E, most recently focused on workforce development and redevelopment. Many of our graduates do indeed go on to careers in aerospace and defense industry as a rough approximation. More than 4500 Cal Poly graduates list aerospace and defense as their employment sector on linked in, and it's not just our engineers and computer sciences. When I was speaking to our fellow Panelists not too long ago, >>are >>speaking to bang, we learned that Rachel sins, one of our liberal arts arts majors, is working in his office. So shout out to you, Rachel. And then finally, of course, some of our graduates sword extraordinary heights such as Commander Victor Glover, who will be heading to the International space station later this year as I close. All of which is to say that we're deeply committed the workforce, development and redevelopment that we understand the value of public private partnerships and that were eager to find new ways in which to benefit everyone from this further cooperation. So we're committed to the region, the state in the nation and our past efforts in space, cybersecurity and links to our partners at as I indicated, aerospace industry and governmental partners provides a unique position for us to move forward in the interface of space and cybersecurity. Thank you so much, John. >>President, I'm sure thank you very much for the comments and congratulations to Cal Poly for being on the forefront of innovation and really taking a unique progressive. You and wanna tip your hat to you guys over there. Thank you very much for those comments. Appreciate it. Bahng. Department of Defense. Exciting you gotta defend the nation spaces Global. Your opening statement. >>Yes, sir. Thanks, John. Appreciate that day. Thank you, everybody. I'm honored to be this panel along with President Armstrong, Cal Poly in my long longtime friend and colleague Steve Jakes of the National Security Space Association, to discuss a very important topic of cybersecurity workforce development, as President Armstrong alluded to, I'll tell you both of these organizations, Cal Poly and the N S. A have done and continue to do an exceptional job at finding talent, recruiting them in training current and future leaders and technical professionals that we vitally need for our nation's growing space programs. A swell Asare collective National security Earlier today, during Session three high, along with my colleague Chris Hansen discussed space, cyber Security and how the space domain is changing the landscape of future conflicts. I discussed the rapid emergence of commercial space with the proliferations of hundreds, if not thousands, of satellites providing a variety of services, including communications allowing for global Internet connectivity. S one example within the O. D. We continue to look at how we can leverage this opportunity. I'll tell you one of the enabling technologies eyes the use of small satellites, which are inherently cheaper and perhaps more flexible than the traditional bigger systems that we have historically used unemployed for the U. D. Certainly not lost on Me is the fact that Cal Poly Pioneer Cube SATs 2020 some years ago, and they set the standard for the use of these systems today. So they saw the valiant benefit gained way ahead of everybody else, it seems, and Cal Poly's focus on training and education is commendable. I especially impressed by the efforts of another of Steve's I colleague, current CEO Mr Bill Britain, with his high energy push to attract the next generation of innovators. Uh, earlier this year, I had planned on participating in this year's Cyber Innovation Challenge. In June works Cal Poly host California Mill and high school students and challenge them with situations to test their cyber knowledge. I tell you, I wish I had that kind of opportunity when I was a kid. Unfortunately, the pandemic change the plan. Why I truly look forward. Thio feature events such as these Thio participating. Now I want to recognize my good friend Steve Jakes, whom I've known for perhaps too long of a time here over two decades or so, who was in acknowledge space expert and personally, I truly applaud him for having the foresight of years back to form the National Security Space Association to help the entire space enterprise navigate through not only technology but Polly policy issues and challenges and paved the way for operational izing space. Space is our newest horrifying domain. That's not a secret anymore. Uh, and while it is a unique area, it shares a lot of common traits with the other domains such as land, air and sea, obviously all of strategically important to the defense of the United States. In conflict they will need to be. They will all be contested and therefore they all need to be defended. One domain alone will not win future conflicts in a joint operation. We must succeed. All to defending space is critical as critical is defending our other operational domains. Funny space is no longer the sanctuary available only to the government. Increasingly, as I discussed in the previous session, commercial space is taking the lead a lot of different areas, including R and D, A so called new space, so cyber security threat is even more demanding and even more challenging. Three US considers and federal access to and freedom to operate in space vital to advancing security, economic prosperity, prosperity and scientific knowledge of the country. That's making cyberspace an inseparable component. America's financial, social government and political life. We stood up US Space force ah, year ago or so as the newest military service is like the other services. Its mission is to organize, train and equip space forces in order to protect us and allied interest in space and to provide space capabilities to the joint force. Imagine combining that US space force with the U. S. Cyber Command to unify the direction of space and cyberspace operation strengthened U D capabilities and integrate and bolster d o d cyber experience. Now, of course, to enable all of this requires had trained and professional cadre of cyber security experts, combining a good mix of policy as well as high technical skill set much like we're seeing in stem, we need to attract more people to this growing field. Now the D. O. D. Is recognized the importance of the cybersecurity workforce, and we have implemented policies to encourage his growth Back in 2013 the deputy secretary of defense signed the D. O d cyberspace workforce strategy to create a comprehensive, well equipped cyber security team to respond to national security concerns. Now this strategy also created a program that encourages collaboration between the D. O. D and private sector employees. We call this the Cyber Information Technology Exchange program or site up. It's an exchange programs, which is very interesting, in which a private sector employees can naturally work for the D. O. D. In a cyber security position that spans across multiple mission critical areas are important to the d. O. D. A key responsibility of cybersecurity community is military leaders on the related threats and cyber security actions we need to have to defeat these threats. We talk about rapid that position, agile business processes and practices to speed up innovation. Likewise, cybersecurity must keep up with this challenge to cyber security. Needs to be right there with the challenges and changes, and this requires exceptional personnel. We need to attract talent investing the people now to grow a robust cybersecurity, workforce, streets, future. I look forward to the panel discussion, John. Thank you. >>Thank you so much bomb for those comments and you know, new challenges and new opportunities and new possibilities and free freedom Operating space. Critical. Thank you for those comments. Looking forward. Toa chatting further. Steve Jakes, executive director of N. S. S. A Europe opening statement. >>Thank you, John. And echoing bangs thanks to Cal Poly for pulling these this important event together and frankly, for allowing the National Security Space Association be a part of it. Likewise, we on behalf the association delighted and honored Thio be on this panel with President Armstrong along with my friend and colleague Bonneau Glue Mahad Something for you all to know about Bomb. He spent the 1st 20 years of his career in the Air Force doing space programs. He then went into industry for several years and then came back into government to serve. Very few people do that. So bang on behalf of the space community, we thank you for your long life long devotion to service to our nation. We really appreciate that and I also echo a bang shot out to that guy Bill Britain, who has been a long time co conspirator of ours for a long time and you're doing great work there in the cyber program at Cal Poly Bill, keep it up. But professor arms trying to keep a close eye on him. Uh, I would like to offer a little extra context to the great comments made by by President Armstrong and bahng. Uh, in our view, the timing of this conference really could not be any better. Um, we all recently reflected again on that tragic 9 11 surprise attack on our homeland. And it's an appropriate time, we think, to take pause while the percentage of you in the audience here weren't even born or babies then For the most of us, it still feels like yesterday. And moreover, a tragedy like 9 11 has taught us a lot to include to be more vigilant, always keep our collective eyes and ears open to include those quote eyes and ears from space, making sure nothing like this ever happens again. So this conference is a key aspect. Protecting our nation requires we work in a cybersecurity environment at all times. But, you know, the fascinating thing about space systems is we can't see him. No, sir, We see Space launches man there's nothing more invigorating than that. But after launch, they become invisible. So what are they really doing up there? What are they doing to enable our quality of life in the United States and in the world? Well, to illustrate, I'd like to paraphrase elements of an article in Forbes magazine by Bonds and my good friend Chuck Beans. Chuck. It's a space guy, actually had Bonds job a fuse in the Pentagon. He is now chairman and chief strategy officer at York Space Systems, and in his spare time he's chairman of the small satellites. Chuck speaks in words that everyone can understand. So I'd like to give you some of his words out of his article. Uh, they're afraid somewhat. So these are Chuck's words. Let's talk about average Joe and playing Jane. Before heading to the airport for a business trip to New York City, Joe checks the weather forecast informed by Noah's weather satellites to see what pack for the trip. He then calls an uber that space app. Everybody uses it matches riders with drivers via GPS to take into the airport, So Joe has lunch of the airport. Unbeknownst to him, his organic lunch is made with the help of precision farming made possible through optimized irrigation and fertilization, with remote spectral sensing coming from space and GPS on the plane, the pilot navigates around weather, aided by GPS and nose weather satellites. And Joe makes his meeting on time to join his New York colleagues in a video call with a key customer in Singapore made possible by telecommunication satellites. Around to his next meeting, Joe receives notice changing the location of the meeting to another to the other side of town. So he calmly tells Syria to adjust the destination, and his satellite guided Google maps redirects him to the new location. That evening, Joe watches the news broadcast via satellite. The report details a meeting among world leaders discussing the developing crisis in Syria. As it turns out, various forms of quote remotely sensed. Information collected from satellites indicate that yet another band, chemical weapon, may have been used on its own people. Before going to bed, Joe decides to call his parents and congratulate them for their wedding anniversary as they cruise across the Atlantic, made possible again by communications satellites and Joe's parents can enjoy the call without even wondering how it happened the next morning. Back home, Joe's wife, Jane, is involved in a car accident. Her vehicle skids off the road. She's knocked unconscious, but because of her satellite equipped on star system, the crash is detected immediately and first responders show up on the scene. In time, Joe receives the news books. An early trip home sends flowers to his wife as he orders another uber to the airport. Over that 24 hours, Joe and Jane used space system applications for nearly every part of their day. Imagine the consequences if at any point they were somehow denied these services, whether they be by natural causes or a foreign hostility. And each of these satellite applications used in this case were initially developed for military purposes and continue to be, but also have remarkable application on our way of life. Just many people just don't know that. So, ladies and gentlemen, now you know, thanks to chuck beans, well, the United States has a proud heritage being the world's leading space faring nation, dating back to the Eisenhower and Kennedy years. Today we have mature and robust systems operating from space, providing overhead reconnaissance to quote, wash and listen, provide missile warning, communications, positioning, navigation and timing from our GPS system. Much of what you heard in Lieutenant General J. T. Thompson earlier speech. These systems are not only integral to our national security, but also our also to our quality of life is Chuck told us. We simply no longer could live without these systems as a nation and for that matter, as a world. But over the years, adversary like adversaries like China, Russia and other countries have come to realize the value of space systems and are aggressively playing ketchup while also pursuing capabilities that will challenge our systems. As many of you know, in 2000 and seven, China demonstrated it's a set system by actually shooting down is one of its own satellites and has been aggressively developing counter space systems to disrupt hours. So in a heavily congested space environment, our systems are now being contested like never before and will continue to bay well as Bond mentioned, the United States has responded to these changing threats. In addition to adding ways to protect our system, the administration and in Congress recently created the United States Space Force and the operational you United States Space Command, the latter of which you heard President Armstrong and other Californians hope is going to be located. Vandenberg Air Force Base Combined with our intelligence community today, we have focused military and civilian leadership now in space. And that's a very, very good thing. Commence, really. On the industry side, we did create the National Security Space Association devoted solely to supporting the national security Space Enterprise. We're based here in the D C area, but we have arms and legs across the country, and we are loaded with extraordinary talent. In scores of Forman, former government executives, So S s a is joined at the hip with our government customers to serve and to support. We're busy with a multitude of activities underway ranging from a number of thought provoking policy. Papers are recurring space time Webcast supporting Congress's Space Power Caucus and other main serious efforts. Check us out at NSS. A space dot org's One of our strategic priorities in central to today's events is to actively promote and nurture the workforce development. Just like cow calling. We will work with our U. S. Government customers, industry leaders and academia to attract and recruit students to join the space world, whether in government or industry and two assistant mentoring and training as their careers. Progress on that point, we're delighted. Be delighted to be working with Cal Poly as we hopefully will undertake a new pilot program with him very soon. So students stay tuned something I can tell you Space is really cool. While our nation's satellite systems are technical and complex, our nation's government and industry work force is highly diverse, with a combination of engineers, physicists, method and mathematicians, but also with a large non technical expertise as well. Think about how government gets things thes systems designed, manufactured, launching into orbit and operating. They do this via contracts with our aerospace industry, requiring talents across the board from cost estimating cost analysis, budgeting, procurement, legal and many other support. Tasker Integral to the mission. Many thousands of people work in the space workforce tens of billions of dollars every year. This is really cool stuff, no matter what your education background, a great career to be part of. When summary as bang had mentioned Aziz, well, there is a great deal of exciting challenges ahead we will see a new renaissance in space in the years ahead, and in some cases it's already begun. Billionaires like Jeff Bezos, Elon Musk, Sir Richard Richard Branson are in the game, stimulating new ideas in business models, other private investors and start up companies. Space companies are now coming in from all angles. The exponential advancement of technology and microelectronics now allows the potential for a plethora of small SAT systems to possibly replace older satellites the size of a Greyhound bus. It's getting better by the day and central to this conference, cybersecurity is paramount to our nation's critical infrastructure in space. So once again, thanks very much, and I look forward to the further conversation. >>Steve, thank you very much. Space is cool. It's relevant. But it's important, as you pointed out, and you're awesome story about how it impacts our life every day. So I really appreciate that great story. I'm glad you took the time Thio share that you forgot the part about the drone coming over in the crime scene and, you know, mapping it out for you. But that would add that to the story later. Great stuff. My first question is let's get into the conversations because I think this is super important. President Armstrong like you to talk about some of the points that was teased out by Bang and Steve. One in particular is the comment around how military research was important in developing all these capabilities, which is impacting all of our lives. Through that story. It was the military research that has enabled a generation and generation of value for consumers. This is kind of this workforce conversation. There are opportunities now with with research and grants, and this is, ah, funding of innovation that it's highly accelerate. It's happening very quickly. Can you comment on how research and the partnerships to get that funding into the universities is critical? >>Yeah, I really appreciate that And appreciate the comments of my colleagues on it really boils down to me to partnerships, public private partnerships. You mentioned Northrop Grumman, but we have partnerships with Lockie Martin, Boeing, Raytheon Space six JPL, also member of organization called Business Higher Education Forum, which brings together university presidents and CEOs of companies. There's been focused on cybersecurity and data science, and I hope that we can spill into cybersecurity in space but those partnerships in the past have really brought a lot forward at Cal Poly Aziz mentioned we've been involved with Cube set. Uh, we've have some secure work and we want to plan to do more of that in the future. Uh, those partnerships are essential not only for getting the r and d done, but also the students, the faculty, whether masters or undergraduate, can be involved with that work. Uh, they get that real life experience, whether it's on campus or virtually now during Covic or at the location with the partner, whether it may be governmental or our industry. Uh, and then they're even better equipped, uh, to hit the ground running. And of course, we'd love to see even more of our students graduate with clearance so that they could do some of that a secure work as well. So these partnerships are absolutely critical, and it's also in the context of trying to bring the best and the brightest and all demographics of California and the US into this field, uh, to really be successful. So these partnerships are essential, and our goal is to grow them just like I know other colleagues and C. S u and the U C are planning to dio, >>you know, just as my age I've seen I grew up in the eighties, in college and during that systems generation and that the generation before me, they really kind of pioneered the space that spawned the computer revolution. I mean, you look at these key inflection points in our lives. They were really funded through these kinds of real deep research. Bond talk about that because, you know, we're living in an age of cloud. And Bezos was mentioned. Elon Musk. Sir Richard Branson. You got new ideas coming in from the outside. You have an accelerated clock now on terms of the innovation cycles, and so you got to react differently. You guys have programs to go outside >>of >>the Defense Department. How important is this? Because the workforce that air in schools and our folks re skilling are out there and you've been on both sides of the table. So share your thoughts. >>No, thanks, John. Thanks for the opportunity responded. And that's what you hit on the notes back in the eighties, R and D in space especially, was dominated by my government funding. Uh, contracts and so on. But things have changed. As Steve pointed out, A lot of these commercial entities funded by billionaires are coming out of the woodwork funding R and D. So they're taking the lead. So what we can do within the deal, the in government is truly take advantage of the work they've done on. Uh, since they're they're, you know, paving the way to new new approaches and new way of doing things. And I think we can We could certainly learn from that. And leverage off of that saves us money from an R and D standpoint while benefiting from from the product that they deliver, you know, within the O D Talking about workforce development Way have prioritized we have policies now to attract and retain talent. We need I I had the folks do some research and and looks like from a cybersecurity workforce standpoint. A recent study done, I think, last year in 2019 found that the cybersecurity workforce gap in the U. S. Is nearing half a million people, even though it is a growing industry. So the pipeline needs to be strengthened off getting people through, you know, starting young and through college, like assess a professor Armstrong indicated, because we're gonna need them to be in place. Uh, you know, in a period of about maybe a decade or so, Uh, on top of that, of course, is the continuing issue we have with the gap with with stamps students, we can't afford not to have expertise in place to support all the things we're doing within the with the not only deal with the but the commercial side as well. Thank you. >>How's the gap? Get? Get filled. I mean, this is the this is again. You got cybersecurity. I mean, with space. It's a whole another kind of surface area, if you will, in early surface area. But it is. It is an I o t. Device if you think about it. But it does have the same challenges. That's kind of current and and progressive with cybersecurity. Where's the gap Get filled, Steve Or President Armstrong? I mean, how do you solve the problem and address this gap in the workforce? What is some solutions and what approaches do we need to put in place? >>Steve, go ahead. I'll follow up. >>Okay. Thanks. I'll let you correct. May, uh, it's a really good question, and it's the way I would. The way I would approach it is to focus on it holistically and to acknowledge it up front. And it comes with our teaching, etcetera across the board and from from an industry perspective, I mean, we see it. We've gotta have secure systems with everything we do and promoting this and getting students at early ages and mentoring them and throwing internships at them. Eyes is so paramount to the whole the whole cycle, and and that's kind of and it really takes focused attention. And we continue to use the word focus from an NSS, a perspective. We know the challenges that are out there. There are such talented people in the workforce on the government side, but not nearly enough of them. And likewise on industry side. We could use Maura's well, but when you get down to it, you know we can connect dots. You know that the the aspect That's a Professor Armstrong talked about earlier toe where you continue to work partnerships as much as you possibly can. We hope to be a part of that. That network at that ecosystem the will of taking common objectives and working together to kind of make these things happen and to bring the power not just of one or two companies, but our our entire membership to help out >>President >>Trump. Yeah, I would. I would also add it again. It's back to partnerships that I talked about earlier. One of our partners is high schools and schools fortune Margaret Fortune, who worked in a couple of, uh, administrations in California across party lines and education. Their fifth graders all visit Cal Poly and visit our learned by doing lab and you, you've got to get students interested in stem at a early age. We also need the partnerships, the scholarships, the financial aid so the students can graduate with minimal to no debt to really hit the ground running. And that's exacerbated and really stress. Now, with this covert induced recession, California supports higher education at a higher rate than most states in the nation. But that is that has dropped this year or reasons. We all understand, uh, due to Kobe, and so our partnerships, our creativity on making sure that we help those that need the most help financially uh, that's really key, because the gaps air huge eyes. My colleagues indicated, you know, half of half a million jobs and you need to look at the the students that are in the pipeline. We've got to enhance that. Uh, it's the in the placement rates are amazing. Once the students get to a place like Cal Poly or some of our other amazing CSU and UC campuses, uh, placement rates are like 94%. >>Many of our >>engineers, they have jobs lined up a year before they graduate. So it's just gonna take key partnerships working together. Uh, and that continued partnership with government, local, of course, our state of CSU on partners like we have here today, both Stephen Bang So partnerships the thing >>e could add, you know, the collaboration with universities one that we, uh, put a lot of emphasis, and it may not be well known fact, but as an example of national security agencies, uh, National Centers of Academic Excellence in Cyber, the Fast works with over 270 colleges and universities across the United States to educate its 45 future cyber first responders as an example, so that Zatz vibrant and healthy and something that we ought Teoh Teik, banjo >>off. Well, I got the brain trust here on this topic. I want to get your thoughts on this one point. I'd like to define what is a public private partnership because the theme that's coming out of the symposium is the script has been flipped. It's a modern error. Things air accelerated get you got security. So you get all these things kind of happen is a modern approach and you're seeing a digital transformation play out all over the world in business. Andi in the public sector. So >>what is what >>is a modern public private partnership? What does it look like today? Because people are learning differently, Covert has pointed out, which was that we're seeing right now. How people the progressions of knowledge and learning truth. It's all changing. How do you guys view the modern version of public private partnership and some some examples and improve points? Can you can you guys share that? We'll start with the Professor Armstrong. >>Yeah. A zai indicated earlier. We've had on guy could give other examples, but Northup Grumman, uh, they helped us with cyber lab. Many years ago. That is maintained, uh, directly the software, the connection outside its its own unit so that students can learn the hack, they can learn to penetrate defenses, and I know that that has already had some considerations of space. But that's a benefit to both parties. So a good public private partnership has benefits to both entities. Uh, in the common factor for universities with a lot of these partnerships is the is the talent, the talent that is, that is needed, what we've been working on for years of the, you know, that undergraduate or master's or PhD programs. But now it's also spilling into Skilling and re Skilling. As you know, Jobs. Uh, you know, folks were in jobs today that didn't exist two years, three years, five years ago. But it also spills into other aspects that can expand even mawr. We're very fortunate. We have land, there's opportunities. We have one tech part project. We're expanding our tech park. I think we'll see opportunities for that, and it'll it'll be adjusted thio, due to the virtual world that we're all learning more and more about it, which we were in before Cove it. But I also think that that person to person is going to be important. Um, I wanna make sure that I'm driving across the bridge. Or or that that satellites being launched by the engineer that's had at least some in person training, uh, to do that and that experience, especially as a first time freshman coming on a campus, getting that experience expanding and as adult. And we're gonna need those public private partnerships in order to continue to fund those at a level that is at the excellence we need for these stem and engineering fields. >>It's interesting People in technology can work together in these partnerships in a new way. Bank Steve Reaction Thio the modern version of what a public, successful private partnership looks like. >>If I could jump in John, I think, you know, historically, Dodi's has have had, ah, high bar thio, uh, to overcome, if you will, in terms of getting rapid pulling in your company. This is the fault, if you will and not rely heavily in are the usual suspects of vendors and like and I think the deal is done a good job over the last couple of years off trying to reduce the burden on working with us. You know, the Air Force. I think they're pioneering this idea around pitch days where companies come in, do a two hour pitch and immediately notified of a wooden award without having to wait a long time. Thio get feedback on on the quality of the product and so on. So I think we're trying to do our best. Thio strengthen that partnership with companies outside the main group of people that we typically use. >>Steve, any reaction? Comment to add? >>Yeah, I would add a couple of these air. Very excellent thoughts. Uh, it zits about taking a little gamble by coming out of your comfort zone. You know, the world that Bond and Bond lives in and I used to live in in the past has been quite structured. It's really about we know what the threat is. We need to go fix it, will design it says we go make it happen, we'll fly it. Um, life is so much more complicated than that. And so it's it's really to me. I mean, you take you take an example of the pitch days of bond talks about I think I think taking a gamble by attempting to just do a lot of pilot programs, uh, work the trust factor between government folks and the industry folks in academia. Because we are all in this together in a lot of ways, for example. I mean, we just sent the paper to the White House of their requests about, you know, what would we do from a workforce development perspective? And we hope Thio embellish on this over time once the the initiative matures. But we have a piece of it, for example, is the thing we call clear for success getting back Thio Uh, President Armstrong's comments at the collegiate level. You know, high, high, high quality folks are in high demand. So why don't we put together a program they grabbed kids in their their underclass years identifies folks that are interested in doing something like this. Get them scholarships. Um, um, I have a job waiting for them that their contract ID for before they graduate, and when they graduate, they walk with S C I clearance. We believe that could be done so, and that's an example of ways in which the public private partnerships can happen to where you now have a talented kid ready to go on Day one. We think those kind of things can happen. It just gets back down to being focused on specific initiatives, give them giving them a chance and run as many pilot programs as you can like these days. >>That's a great point, E. President. >>I just want to jump in and echo both the bank and Steve's comments. But Steve, that you know your point of, you know, our graduates. We consider them ready Day one. Well, they need to be ready Day one and ready to go secure. We totally support that and and love to follow up offline with you on that. That's that's exciting, uh, and needed very much needed mawr of it. Some of it's happening, but way certainly have been thinking a lot about that and making some plans, >>and that's a great example of good Segway. My next question. This kind of reimagining sees work flows, eyes kind of breaking down the old the old way and bringing in kind of a new way accelerated all kind of new things. There are creative ways to address this workforce issue, and this is the next topic. How can we employ new creative solutions? Because, let's face it, you know, it's not the days of get your engineering degree and and go interview for a job and then get slotted in and get the intern. You know the programs you get you particularly through the system. This is this is multiple disciplines. Cybersecurity points at that. You could be smart and math and have, ah, degree in anthropology and even the best cyber talents on the planet. So this is a new new world. What are some creative approaches that >>you know, we're >>in the workforce >>is quite good, John. One of the things I think that za challenge to us is you know, we got somehow we got me working for with the government, sexy, right? The part of the challenge we have is attracting the right right level of skill sets and personnel. But, you know, we're competing oftentimes with the commercial side, the gaming industry as examples of a big deal. And those are the same talents. We need to support a lot of programs we have in the U. D. So somehow we have to do a better job to Steve's point off, making the work within the U. D within the government something that they would be interested early on. So I tracked him early. I kind of talked about Cal Poly's, uh, challenge program that they were gonna have in June inviting high school kid. We're excited about the whole idea of space and cyber security, and so on those air something. So I think we have to do it. Continue to do what were the course the next several years. >>Awesome. Any other creative approaches that you guys see working or might be on idea, or just a kind of stoked the ideation out their internship. So obviously internships are known, but like there's gotta be new ways. >>I think you can take what Steve was talking about earlier getting students in high school, uh, and aligning them sometimes. Uh, that intern first internship, not just between the freshman sophomore year, but before they inter cal poly per se. And they're they're involved s So I think that's, uh, absolutely key. Getting them involved many other ways. Um, we have an example of of up Skilling a redeveloped work redevelopment here in the Central Coast. PG and e Diablo nuclear plant as going to decommission in around 2020 24. And so we have a ongoing partnership toe work on reposition those employees for for the future. So that's, you know, engineering and beyond. Uh, but think about that just in the manner that you were talking about. So the up skilling and re Skilling uh, on I think that's where you know, we were talking about that Purdue University. Other California universities have been dealing with online programs before cove it and now with co vid uh, so many more faculty or were pushed into that area. There's going to be much more going and talk about workforce development and up Skilling and Re Skilling The amount of training and education of our faculty across the country, uh, in in virtual, uh, and delivery has been huge. So there's always a silver linings in the cloud. >>I want to get your guys thoughts on one final question as we in the in the segment. And we've seen on the commercial side with cloud computing on these highly accelerated environments where you know, SAS business model subscription. That's on the business side. But >>one of The >>things that's clear in this trend is technology, and people work together and technology augments the people components. So I'd love to get your thoughts as we look at the world now we're living in co vid um, Cal Poly. You guys have remote learning Right now. It's a infancy. It's a whole new disruption, if you will, but also an opportunity to enable new ways to collaborate, Right? So if you look at people and technology, can you guys share your view and vision on how communities can be developed? How these digital technologies and people can work together faster to get to the truth or make a discovery higher to build the workforce? These air opportunities? How do you guys view this new digital transformation? >>Well, I think there's there's a huge opportunities and just what we're doing with this symposium. We're filming this on one day, and it's going to stream live, and then the three of us, the four of us, can participate and chat with participants while it's going on. That's amazing. And I appreciate you, John, you bringing that to this this symposium, I think there's more and more that we can do from a Cal poly perspective with our pedagogy. So you know, linked to learn by doing in person will always be important to us. But we see virtual. We see partnerships like this can expand and enhance our ability and minimize the in person time, decrease the time to degree enhanced graduation rate, eliminate opportunity gaps or students that don't have the same advantages. S so I think the technological aspect of this is tremendous. Then on the up Skilling and Re Skilling, where employees air all over, they can be reached virtually then maybe they come to a location or really advanced technology allows them to get hands on virtually, or they come to that location and get it in a hybrid format. Eso I'm I'm very excited about the future and what we can do, and it's gonna be different with every university with every partnership. It's one. Size does not fit all. >>It's so many possibilities. Bond. I could almost imagine a social network that has a verified, you know, secure clearance. I can jump in, have a little cloak of secrecy and collaborate with the d o. D. Possibly in the future. But >>these are the >>kind of kind of crazy ideas that are needed. Are your thoughts on this whole digital transformation cross policy? >>I think technology is gonna be revolutionary here, John. You know, we're focusing lately on what we call digital engineering to quicken the pace off, delivering capability to warfighter. As an example, I think a I machine language all that's gonna have a major play and how we operate in the future. We're embracing five G technologies writing ability Thio zero latency or I o t More automation off the supply chain. That sort of thing, I think, uh, the future ahead of us is is very encouraging. Thing is gonna do a lot for for national defense on certainly the security of the country. >>Steve, your final thoughts. Space systems are systems, and they're connected to other systems that are connected to people. Your thoughts on this digital transformation opportunity >>Such a great question in such a fun, great challenge ahead of us. Um echoing are my colleague's sentiments. I would add to it. You know, a lot of this has I think we should do some focusing on campaigning so that people can feel comfortable to include the Congress to do things a little bit differently. Um, you know, we're not attuned to doing things fast. Uh, but the dramatic You know, the way technology is just going like crazy right now. I think it ties back Thio hoping Thio, convince some of our senior leaders on what I call both sides of the Potomac River that it's worth taking these gamble. We do need to take some of these things very way. And I'm very confident, confident and excited and comfortable. They're just gonna be a great time ahead and all for the better. >>You know, e talk about D. C. Because I'm not a lawyer, and I'm not a political person, but I always say less lawyers, more techies in Congress and Senate. So I was getting job when I say that. Sorry. Presidential. Go ahead. >>Yeah, I know. Just one other point. Uh, and and Steve's alluded to this in bonded as well. I mean, we've got to be less risk averse in these partnerships. That doesn't mean reckless, but we have to be less risk averse. And I would also I have a zoo. You talk about technology. I have to reflect on something that happened in, uh, you both talked a bit about Bill Britton and his impact on Cal Poly and what we're doing. But we were faced a few years ago of replacing a traditional data a data warehouse, data storage data center, and we partner with a W S. And thank goodness we had that in progress on it enhanced our bandwidth on our campus before Cove. It hit on with this partnership with the digital transformation hub. So there is a great example where, uh, we we had that going. That's not something we could have started. Oh, covitz hit. Let's flip that switch. And so we have to be proactive on. We also have thio not be risk averse and do some things differently. Eyes that that is really salvage the experience for for students. Right now, as things are flowing, well, we only have about 12% of our courses in person. Uh, those essential courses, uh, and just grateful for those partnerships that have talked about today. >>Yeah, and it's a shining example of how being agile, continuous operations, these air themes that expand into space and the next workforce needs to be built. Gentlemen, thank you. very much for sharing your insights. I know. Bang, You're gonna go into the defense side of space and your other sessions. Thank you, gentlemen, for your time for great session. Appreciate it. >>Thank you. Thank you. >>Thank you. >>Thank you. Thank you. Thank you all. >>I'm John Furry with the Cube here in Palo Alto, California Covering and hosting with Cal Poly The Space and Cybersecurity Symposium 2020. Thanks for watching.

>> Announcer: From around the globe, it's theCUBE covering HPE Discover Virtual Experience. Brought to you by HPE. >> Hi, and welcome back. I'm Stu Miniman, and this is theCUBE's coverage of HPE Discover 2020, the Virtual Experience. Happy to welcome back to the program, just had him on at VeeamON at theCUBE's coverage there. David Harvey, he is the Vice President of Strategic Alliances at Veeam. David, welcome to our coverage of HPE Discover. >> Thank you. I appreciate the invitation and great to see you again. >> All right, so when I talked to you at VeeamON, of course, you talk about lots of partners and you love all of them, but now we get to hear the truth. HPE, which one of your partners do you love the best? Talk to us a little bit about that HPE relationship. >> Sure, yeah, absolutely and really great to be part of Discover this year. And I think it's a fantastic set up in the way that HPE is running this event. As we've talked about with you guys before as well, HPE's always been a really special relationship for us. It was really the first relationship that we sort of established over eight years ago. And so from our point of view, it's got a long, rich heritage, that level of trust and desire for growth has been fantastic. And in the recent years as well as both of us have really continued to lean in, it's just continued to grow at a fantastic rate. I mean you would've seen some of the recent results there. Veeam's grown over 20% in the second half of 2019 with IBC. I'm really happy to say that the HPE alliance is growing well in excess of that. And so we're really pleased on how things have continued to evolve. >> Well congratulations on that growth. Yeah, boy, eight years so much has changed. So of course, I think about HPE and VMware and one of the earliest partners for server virtualization. But HPE's got a broad portfolio. Bring us through where Veeam sits. You know you got solutions like GreenLake out there, of course, traditional virtualization. So give us a little bit of kind of the breadth and depth of engineering work and partnership that you have. >> Yeah, great question Stu. And I think the interesting part of this is when you look at sort of the ecosystem that's out there now and the evolution HPE's gone through in embracing partners, the focus on the portfolio development and engagement between the two companies has reflected that. There are so many different areas that we could work with HPE on, but when we sat down together and we said where can we really provide the best value to our customers, we focused on a few key parts of the portfolio. Storage, obviously, is key. 3PAR, Primera, Nimble, StorONE, Apollo, areas where we've done really strong work over the years and continue to provide great solutions to the customers. Really pleased with how we've increased into SimpliVity. That's a really big push area for us over the last 12 months. And we're starting to see some great success together with that providing really unique solutions to extend the value of SimpliVity into new use cases, complimenting what they already have. And then obviously at Discover a couple of years ago we did a big push with GreenLake. And we're really pleased with how that's moving forwards as well because that's not really as much as a technology type of play, but that's a philosophy play about how we're satisfying the economic and service needs of the customers. So we're really pleased how that's been moving forwards, and that's another really big push for us this year. >> Well excellent. Maybe it would help to illustrate this. Do you have some customer examples? I understand sometimes, if you can share who the the logo is >> Harvey: Sure. >> that's great, otherwise if it needs to be a little more anonymized, that's fine too. >> No I think that's a great question, and the reason why we like talking about these types of things is we do thousands of orders a year with HPE. It's a really rich partnership on a global basis. If I remember correctly, last time we had over 100 countries where we've done deals together, so it's really nice to see it be appeared as on a global basis. A couple of easy ones that come to mind, certainly is White River Health Services. Big medical system solution serving over half a million customers that are out there. And those guys had a massive growth rate of data, 30% growth year over year, and really needed to make sure that that availability of data was there so that they provided solid solutions to their customers. We partnered up with a solution with StorONE and provided them with a fantastic amount of savings per year on their overall solution but also gave them that business continuity that they were looking at. So I think that's a great example. If we move over to Europe though there's another good market for us where we're seeing really success, great success together. The Metropolitan Thames Valley is a very large housing authorities are a very different virtual but shows the wide applicability of the solution, where they were having trouble looking at the ability to put a full disaster recovery plan into place, And obviously contingencies is a key topic right now. So we worked with HPE and then we've really put in great solution that not only reduced the ability to recover from seven days to less than 30 minutes, but we also managed to be more efficient with the amount rack utilization that was in place for them as well. So economic support, very critical business continuity support, and obviously a unified solution to allow them to be in a scenario where they knew that the IT partners they were working with were fully in unison so there was never any service question if they needed any support. So a couple of really good examples from around the world. >> You know, I wonder if we can touch a little bit on the competitive dynamics here. So eight years ago, HP had its own data protectant. When HP split that piece went over to micro focus so it kind of (murmurs) the swim lanes a little bit. But HP has also been increasing their partnership, so Veeam, you're a good partner but there are other partners out. So how do you help differentiate and how do you make you got clean engagements through HPE's channel and with their field? >> Yeah, that's a really good question, and there's a number of different answers to that, but I think that one of the things that will support what I'm about to touch on is that we're really proud that we just got awarded the Global Technology Partner award again this year. This is the second year running for HPE. Last year was the first time a software application partner was provided and now two years in a row, we've demonstrated that the partnership is really valuable for HPE. And I think to your point, Stuart, it comes down to a couple different areas. The first is just the overall attitude, approach, and relationship. Partnerships work when you can turn your back on each other. They work on the assumption that you really have the same vested interest for success and you can roll through some tough times as well as the good times. With good dialogue, with focus on the objectives you are trying to achieve, but also more importantly that you are excited and you enjoy working together. And so, it's a pleasure to spend hours and hours together to come up with something that satisfies the customer pains that you are solving. Now combined with that attitude because to me that attitude is a core foundation, technology's hugely important but if you can't have a business relationship, you can't actually execute that technology position. Now we're fortunate enough as well that you combine that attitude of partnershipping together with the investments and technology that we've done, and that's why we feel like we continue to differentiate. I think it's great that HPE has such a rich ecosystem. I think it's helpful to get focus on what is a huge topic for customers and frankly, the technology world is a complex ecosystem nowadays. But I think you stand out from the rest by focusing on being the most successful, being the best, having the right attitude, making the right investments together to move forward and that's where we've demonstrated, historically, our engineering commitment and our future roadmap commitment, which we're working on right now together heavily combining with a big marketing and sales investment, so all of the facets and the organization come together in a nice, seamless manner. So, you know, trust, I think it's great that they have the depth of ecosystem that's out there, we're just really proud that we continue to be the preferred partner in this space and we keep getting recognized for the investment that we have with HPE as well. >> Excellent. Yeah, you brought up it is such a complex ecosystem out there. One of the themes that we heard, your show as well as HP Discover, you know, we're talking about customers going through that digital information. You gave us a couple of customer examples, but maybe some big themes, what're you hearing? You know, how do the (murmurs) markets align between Veeam and HPE? >> Yeah, great question. And I think that is another great example where when you use the topic of data transformation, it's a really broad discussion. You know, what we've tried to do is focus on the areas that we provide the most value to customers right now. And I think that focuses us down and data protection powered by intelligence storage, which is a really key topic for a lot of our joint customers that are out there. We really want to make sure we can extend your data management from on-premise to the cloud. That's a really key area we're working with the Simplivity team on. And then finally, the consumption-based data management working very closely with GreenLake. And the (murmurs) of all of those solutions satisfied the plethora of needs that the customers have on storage of data availability. And I think that from that point of view, that's where keeping that focus on what is solving pains today, is why were having such great success together. So I think from that basis, we found that that helps the sales teams identify and satisfy the needs of the customer, It helps us get clarity on execution, and more importantly, keeps us in the scenario where we got really clear bars for success to make sure that this partnership is not just a, I call it a website partnership, but a real partnership that's driving key revenues, key (murmurs) leadership, and frankly, key solutions for the customers. >> Yeah, if you talk about where your data lives and how Veeam could support across multiple environments. There's the technical pieces which Veeam's done a good job on and I think people understand pretty well. I wonder if you could talk a little bit about the financial piece of things. How do you make sure, you know, especially with a deep partner like HPE, that you make it seamless as companies are trying to move more towards the SaaS and Opex models, and that it's not getting understanding, full control of what my billing is, and how these things go together. >> Yeah, it's a really good point, and I think there's sort of a capital facet to that. You know, the first part is, on a global basis across all of the segments that we've worked together on, especially if when you look at the success we have at the higher end price together, and the high end commercial. You have to be in a situation where you can support the financial structure that they have as a business. And that's looking at it whether or not it's a traditional Capex employment related to more of the traditional HP solutions, or looking at the flexibility of the Veeam licensing combined with that so they can have the choice that they desire. As well as moving down that path, that if they decide they want to move through a more consumption-based type of position by having that seamless integration with GreenLake as well, you get through a scenario where you can find the right solution for their needs and then the economic structure is really a choice for them, taking away a lot of that pain imposition. Now what we're seeing overall to that point too, which I think is also interesting is customers are going through evolution. If you go back a number of years, every conversation and topic was related to public cloud and it's still a huge area of focus. But, I've also seen a lot of organization especially at the higher end, really start to look at how they can take a lot of their consumption-based economics and bring it on-premise because they want to make sure that the reaction position they got, they're getting their data back is within their premise as well. And so that's why we're really enjoying a lot of success together because we can synergize the flexibility of the HPE offerings with the commercial offerings of (murmurs) Veeam, and be in a scenario where it's almost a perfect fit for most customers. And we try not to force them down a specific path because I think those days are gone, but customers want to look at the economic or the budget constraints they've got today and find the best fit, but they want that best fit without compromising on their overall support they get, and they want the scenario, like we have with HPE where it's fully on their price box, single supplier, single throat to choke, making sure were in unison, and they've got continued investment moving forward in the portfolio (murmurs). >> Excellent. Well final question I have for you is in the general market place, people often get stuck in their head to how they think about a company. Veeam is such a close partner to HPE. (murmurs) has thousands of customers with them. Give our viewers a little bit of how should people be thinking about HPE in 2020, and then also give us the final take away for Veeam and HPE. >> Yeah, great question. I mean, I've been working with HPE now a multitude of, overall over six years now. And the evolution that we're seeing is fantastic. I think that my view on how you should see HPE is, a trusted advisor related to talking about the transformation you're going through your data, and also a clear, solidified portfolio, especially in the storage realm related to the control of the data. Following the data from the origination point of the application all the way through. And so I think from that point of view, there's clarity with portfolio, there's a comprehensive interlock of the portfolio. And so from that point of view, I think there's calmness in the discussion. What I would say is that (murmurs) further and how to look at the HP (murmurs) relationship is. That continued investment on future proofing and hopefully some exciting announcements as we move through the year, will demonstrate that we are constantly making sure that we're differentiating at the frontier (mic cuts) for the customer. And you can see that in the growth of our enterprise business together. You could see that in the growth of high end commercial business together, and you can also see the fact that our customers are growing every single year together. So when we put these solutions in place, they're loving them and they're growing them year over year, and very quickly as well. So we're seeing a very high percentage of our customers reorder within the first year because they're really enjoying the unification of the solution. And so hopefully, the HP customers should look at that, through confidence, through calmness, and be really pleased that the market leader approach will indict protection by Veeam and they're primary (murmurs) leader when it comes to technology with HPE, together provide a really powerful solution, and we're really pleased on the customer satisfaction results we're getting from this work. >> All right. Well, David Harvey, thank you so much for the updates. Looking forward to some of those innovations that you talked about coming later this year. Thanks so much for joining us. >> Thanks so much. I really appreciate the time and enjoying Discover, and I hope everybody's having a great event. >> All right, stay tuned for launch of theCUBE's coverage, HPE Discover 2020, the Virtual Experience. I'm Stu Miniman. Thanks as always for watching.