(intro tune) >> Welcome back to HPE Discover 2021, the virtual version. My name is Dave Vellante and you're watching theCUBE's continuous coverage of the event. John Gromala is here. He's the Senior Director of Product Management for HPE GreenLake Lighthouse, new offering from HPE. We're going to talk about that. We're going to talk about Cloud Native. Hey, John, welcome to theCUBE. Good to see you again. >> Awesome. Great to be with you again. >> All right. What is GreenLake Lighthouse? >> Yes, very excited. Another new offering and innovation from HPE to support our broader GreenLake strategy and plans. It's really a brand new purpose built Cloud Native platform that we've developed and created that pulls together all of our infrastructure leadership with our platform software leadership into a single integrated system, built to run GreenLake Cloud Services. So think of it as, you know, fully integrated, deploy at any place you want on your premises, at a co-location provider or at the edge, wherever you need, they'll all inter-operate and work together, sharing data, you know, running apps together, great capability for people to bring the Cloud where they want. As we talk about with GreenLake, it's the Cloud that comes to you. >> So, should we think of this as a management platform? Is it also sort of a quasi development platform? Kind of where does it fit in that spectrum? >> Well, it's really more of a integrated system with all of the integrated control planes needed to run it, you know, in a distributed fashion. So it's a true distributed Cloud intended to run at any client location it's needed, connects back to GreenLake central and our GreenLake Cloud operations teams to go ahead and run any Cloud services that they want. So you get the benefit of running those workloads wherever you need, but that, you know, centralized control that people want in terms of how they run their Clouds. >> OK so, we think of these, these things like, for instance, how is it different from AWS outposts or things like, you know, as your stack or as your hub? >> Yeah. Very simply, you know, this is because it's a distributed Cloud intended to make it so you could run it wherever you need. You don't need to be tethered to any of the public Clouds or the various public Clouds out there. So people can now run their systems wherever they want, however they need without that required tethering that much of those other vendors require. So you can really sort of own your own Cloud or have that Cloud come to wherever you need it within your overall IT. >> Can I tether to a public Cloud if I want to? >> Yeah. The Cloud services, like many other Cloud services can interconnect together. So no issue if you want to run or even do fail over between public Cloud or on premises, it's all how you want to set it up. But that connection to public Cloud again, through GreenLake is done at that Cloud services level. You know, where you would connect one of these Greenlake Lighthouse systems to the public Cloud through services. >> OK so, maybe you could talk a little bit about the use cases in a minute, but how flexible is this? How do I configure Lighthouse? You know, what comes standard? What are my options? >> Yeah, so we've designed it in a very modular fashion so that people can really configure it to whatever their needs are at any given location. So there's a basic set of modules that aligned to a lot of the compute and storage instances that people are familiar with from all of the Cloud providers. You simply tell us which workloads you want to be running on it, and how much capacity you want. And that'll get configured in deploy to that given sight. In terms of the different types, we have what we're calling two series, or a set of series that are available for this to meet different sets of needs. One being more mainstream for, you know, broad use cases that people need, you know, virtualized container, any other type of enterprise workloads, and another more technically focused with higher performance networking for higher performance deployments. You can choose which of those fits your needs for those given areas. >> So maybe you could talk a little bit more about the workloads and what specifically is supported and how they get deployed. >> Yeah. Again, all of it is managed and run through GreenLake Central. That's our one location where people can go to watch these things, manage them. You can run, you know, container as a service, VM as a service, as needed on these different platforms. You can actually mix and match those as well. So one of these platforms can run multiple of those and you can vary the mix of those as your business needs change over time. So think of it as a very flexible way to manage this, which is really what Cloud Native is all about. Having that flexibility to run those workloads wherever and however you need. In addition, we can build a more advanced type of solutions on top of those sort of foundational capabilities with things like HPC as a service and Ops as a service to better enable clients to deploy any other given enterprise workloads. >> John, what about the security model for Lighthouse? That's obviously a big deal. Everybody's talking about these days. You can't open the news without seeing some kind of hack. How does lighthouse operate in a secure environment? >> Well, you know, first of all, that there's sort of a new standard that was established, you know, within these Cloud operating models. And HPE was leading in terms of infrastructure innovation with our Silicon Root of Trust, where we came out with the world's most secure infrastructure a few years ago. And what we're doing now, since this is a full platform and integrated system, we'll be extending that capability beyond just, you know, how we, you know, create a root of trust in our manufacturing facilities to ensure that it's secure, running it within the infrastructure itself. We'll be extending that vertically up into the software stacks of containers and VMs sort of using that route of trust up to make sure everything's secure in that sense and then eventually up to the workloads themselves. So by being able to go back to that root of trust it really makes a big difference in how people can run things in an enterprise secure way. Great innovations continued. And one of our big focus areas throughout this year. >> So where does it fit in the portfolio, John? I mean, how is it compliment or how is it different from, you know, the typical HPE systems, the hardware and software that we're used to? >> You might think of this as sort of a best of, bringing together all the great innovations of HPE. You know, we've got awesome infrastructure that we've led for many, many years. We've got, you know, great more Cloud Native software that's being developed. We've got great partnerships that we've got with a lot of the leading vendors out there. This allows us to bring all of those things together into a integrated platform that is really intended to run these Cloud Native services. So it builds on top of that leadership, fits in that sense with the portfolio, but it's ultimately about how it allows us to run and extend our GreenLake capabilities as we know them to make them more, more consumable, if you want to call it for a lot of our enterprise clients at whatever location that they. >> So when would I use Lighthouse and when would I use sort of a traditional HPE system? >> Yeah, again, it's a matter of which level of integration people want. You know, Cloud is really also in terms of experience about simplifying what people are purchasing and making it easier for them to consume, easier for them to roll out a lot of these things. That's when you'd want to purchase a Lighthouse versus our other infrastructure products. We'll always have those leading infrastructure products where people can put together everything in exactly the way that they want and go through the qualification and certification of a lot of those workloads. Or they can go ahead and select this GreenLake Lighthouse, where they have a lot of these things available in a catalog. We do validation of the workloads, and platform systems, so that it's all sort of ready for people to roll out at a much more secure, tested and agile fashion. >> So if I have a Cloud first strategy, but I don't want to put it in the public Cloud, but I want that Cloud experience. And I want to go fast. It sounds like Lighthouse, I'm the perfect customer for Lighthouse. >> Precisely, you know, this is taking that Cloud experience that people are wanting, the simplicity of those deployments and making it where it can come to them in whichever location that they want, you know, running it on a consumption basis. So that it's a lot easier way for them to go ahead and manage and deploy those things. Without a lot of the internal qualification and certifications that they've had to do over years. >> Versus OK, but and, or if I want to customize it maybe I want to, maybe I'm a channel partner. I want to bring some of my own value. I got a specific use case, that's not covered by something like Lighthouse. That's where I would go with a more traditional infrastructure. >> Correct. Yeah, if anyone wants to do customization, we've got a great set of products for that. We really want to use a Lighthouse as a mechanism for us to standardize and focus on more enabling these broader Cloud capabilities for clients. >> And lighthouse, talk a little bit more about the automation that I get that, you know, things like patching and software updates, that's sort of included in this integrated system, is that correct? >> Yeah. >> Absolutely. You know, when people think about you know, managing workloads in the Cloud, they don't worry about taking care of firmware updating and a lot of those things. That's all taken care of by the provider. So in that same experience, Lighthouse comes with all of the firmware updating, all of the software updating all included, all managed through our GreenLake managed services teams. So that's just part of how the system takes care of itself. You know, that's a new level of capability and experience that's consistent with all of the Cloud providers out there. >> And that's, OK so, that's something that is a managed service. So let's say I have a Lighthouse on prem, you're going to, that manage services doing all the patching and the releases, and the updates and that, that lives in the Cloud, that lives in HPE, that lives in my prem. >> Well, yeah, ultimately it all goes through GreenLake central and gets managed. You know, all of those deployments are automated in nature so that, you know, people don't have to worry about them. There's multiple ways that that can get delivered to them. We have some, you know, automation and control plane technology that brings that all together for them. You know, it can vary based on the client, on, you know, their degree of how they want to manage some of that, but it's all taken care of for them. >> And, you know, you've got GreenLake in the name, am I to infer from that that it sort of dovetails in, is one of the puzzles in the GreenLake mosaic. >> Yeah, exactly. So think of, think of GreenLake as our broader initiative for everything Cloud. And how do we start enabling not only these Cloud services, but make it easier for people to deploy those and consume them wherever they need. And this is the enablement piece. This is that portion of Greenlake that helps them enable that connected degree like central, where they can manage everything centrally. And then we've got that broad catalog of services available. >> And when can I get it, when's it go GA? >> Yeah. So it'll, July is when our first set of shipments and availability are there. So just a very, you know, few days after, you know, discover here and we'll expand the portfolio over time with more of a mainstream version, early, more technical or performance oriented ones available soon thereafter. And we've got plans even for edge type offerings, more in the future as well. So a case where we'll continue to build and expand more targeting these platforms to folks needs. Whether they're enterprise or maybe there are vertical offerings that they want, in terms of how they, you know, move all these things together. Think of Telco is a great case where people want this. Healthcare is another area where we can have the value of these integrated systems in a very purpose-built way. >> Can I ask you like, what's inside? You know, what can I get in terms of you know, basic infrastructure, compute, storage, networking? What are my options? >> All of the above, you know, what we'll do is we'll go through the basic selection of all of that greatest hits within our complete portfolio, pull them together, give you a few simple choices. You know, you think about it as, you want general purpose compute modules. You might want compute optimized or memory optimized modules. Each of those are simple choices that you'll make that come together. Underlying all that are the great infrastructure pieces that you've known for years. But we take care of simplifying that for you. So you don't have to worry about those details. >> Great. Well, John, congratulations on the new product, and thank you for sharing the update with theCUBE. >> Thank you very much. Great to talk to you. >> All right, thank you for watching theCUBE's coverage of HPE Discover 2021. My name is Dave Vellante. Keep it right there. We're right back with more coverage right after this short break. (outro tune)

>>The cube presents HPE discover 2022 brought to you by HPE. >>Hey everyone. Welcome to Las Vegas. It's the cube live on the show floor at HPE discover 2022, the first in person discover in three years, there are about 8,000 people here. The keynote was standing room only Lisa Martin here. I got a powerhouse group joining me for this keynote analysis. Dave ante joins us, Keith Townsend, John farrier, guys. Lot of news. It's all about HPE GreenLake. What were some of the things Dave, that stuck out to you? >>Well, I'll tell you right now, I gotta just quote, Antonio OIR said, Neri said four years ago, I declared that the enterprise of the future would be edge centric, cloud enabled and data driven. As a result, we launched HPE GreenLake. It kind of declared victory. Now I would say that what they're talking about and what they announced, I would consider table stakes. You know, I wish it started in 2014. I wish Antonio took over in 2015 instead of 2018, but I have to give credit, he's brought a focus and uh, and a, he think he's amped it up, John. I mean, if he's really prioritizing, uh, the, as a service they're going on in all in they're burning the boats, uh, and it's good. They got a lot of work to do. They >>Got a lot of work to do three years ago, John Antonio stood on this very stage saying we, and by 2022, we're gonna be delivering our entire portfolio as a service here we are with GreenLake. What I wanna get your thoughts on Keith's as well. >>Yeah. Well, first of all, I think that the crowded house was, uh, and a sign of people wanna come back together. So it's, to me, that was the first good news I saw, which was the HP community, their customer base. They're all here. They're glad to be back and forth. So it shows that they, their customer base it's resonating their value proposition of annual recurring revenue as a service plus the contract values with GreenLake are up. So this resonance with the customers, Dave, on the new operating model, that's a great check the box there. Um, I would say that I don't think HP's, as far along as Antonio had hopes, he'd be the pandemic was a setback. Um, but GreenLake is a real shining star. It's, uh, it's producing some green if you will money for them in terms of contracts, but they still got a lot more work to do because they're in a really interesting zone, Dave, because edge the cloud, although relevant and accurate where the, the shift is going, are they really there with, with the goods? And to me, I'm looking forward to seeing this discover if they have it or not. Certainly the messaging's good, but we're gonna UN UN unpeel that onion back and look at it. But >>Keith they're on the curve, right? At least they're on the cloud curve. >>They're absolutely on the curve. They have APIs, they have consistent developer experience. They announced the developer portal. They're developer centric. You can now consume your three par storage array services via a Terraform, uh, provider. They speak the language of cloud practitioners. You might struggle a little bit if I'm a small startup, you know, why would I look towards HPE? They kind of answered that a little bit. They had evil genius as a customer on stage, not a huge organization. A lot of the pushback they've been given is that if I may startup, I can simply go to a AWS portal, launch, a free trial service and run it. HPE kind of buried the lead. They now have, at least they announced preannounced the capability to, to trial GreenLake. So they're moving in the right direction. But you know, it's, it's it's table states. Well, >>Here's the thing. Here's the dynamic day that's going on. This is something that we've got got we're first of we've been covering HPE HP for now 11 years with the cube and look at Amazon's success and look at where Amazon's struggling. If you can say that they're having crossed overs to the enterprise, uh, cuz the enterprises are now just getting up to speed. You're seeing the rise of lack of talent. It certainly changing, uh, cyber security. You can't find talent. Kubernetes, good luck with that. Try to find someone. So you're seeing the enterprise aren't really geared up or staffed up for doing what I call, you know, high end cloud. So the rise of managed services is, is what we're seeing out there right now. You want Kubernetes clusters is a great set of managed services. You want other services? So that's the tell sign that the enterprises H HP's customers are now walking before they can run. They're crawling, they're now they're walking. So it's they have time to get in the Amazon lane in my opinion. Well, you >>Think about the hallmarks of cloud, obviously there's as a service, there's consumption based pricing. There's a developer, you know, friendliness, uh, there's ecosystem, which is really, really important. I think today, a lot of the ecosystem is partners, resellers and managed service providers. And to your point, Keith table stakes are things like single sign on being able to have, you know, a console being able to do it from a, from a URL to your point about startups is really interesting because that's one of the other hallmarks of cloud is you attract startups. And Lisa, we were at the snowflake summit and I asked the same question, can snowflake attract startups with their own super cloud. And what you saw was ecosystem partners developing in the snowflake cloud and monetizing. And that's something that we're waiting to see here. And I, I think they know >>You're suggesting way you suggesting that HP's gonna attract startups. >>Well, >>I, I think that's a sign if they can do that. That's a sign. And, and right now, I mean, you heard the example that Keith Keith gave. Uh, but, but not, not many. >>Yeah. I'm hoping that H I don't think HP is gonna ever attract startups, but I think the opportunity GreenLake affords the ecosystem is build clouds or purpose driven clouds around GreenLake. Mm-hmm <affirmative> whether it's the agreement with Equinix or all the cos and semi clouds, I think GreenLake gets most small CSPs, a leg up or 80% of the way there, where they can add that 20% of the IP and build services around GreenLake. And then that can attract the, the startup >>Or entrepreneurs. So the, the big question is, okay, where are these developers gonna come from? They could come from incumbents inside of companies. You know, the, the, the DevOps crowd from the enterprise, the really ops dev crowd. Right? I mean, yeah, don't you see that as a sort of a form of innovation startup, even though it's not a true startup. >>Yeah. Even though it's not, >>So Todd's making faces over there, we <laugh> >>Look, it, look it, they have >>Listen, if they don't, if they can't >>Do that, no, this is their focus is not startups. I agree with Keith on this one, they have to take care of business, home Depot. They have big customers and they have a lot of SMBs as well. They've got a great channel. H HP's got amazing infrastructure and, and client action going on. They gotta get the operating model, right job one as a service ARR, and then contract value and, and nail that with GreenLake. >>Who's their ideal customer profile. >>Their ideal is their install base. Look what Microsoft did with 365, they were going down. Their stock price was 26. At one point go to the, they went to the cloud 365, moved everything to the cloud and look at the success they're having. HP has the same kind of installed base. They gotta bring them along. They gotta get the operating model, right. And the developers that they're targeting are the ones inside the company and, or manage services that they're gonna go to the ecosystem for. That's where the cloud native comes in. That's where thing kind of comes together. So to me, I'm bullish on the operating model, but I'm skeptical that HP can get that cloud native developer. I haven't seen it yet. I'm looking for it. We're gonna look for it here. >>A key to that is going to be consistently. I, the, one of the things I'm looking for on the tech side, I, I hate to compare what HPE is doing to what VMware did with vCloud error years ago, but vCloud error on the outside looked >>Wonderful. Yes, >>It did. Once you tried to use it, it was just flaky underneath. And that's the part I'm looking to see customers pounding on it and saying, you know what API call after API I call, can I, uh, provision 10,000 pods a day? Does it scale down? Does it scale? And is it consistent? Is it >>Fragile Al roo she's co seasoned veteran? Uh, she was at V VMware cloud. She saw that movie. She gets a Mulligan, Dave. So I think her leadership is impressive. And I think she could bring a lot to the table to your point about don't make that same mistake and they gotta get this architecture, right. If they get the operating model right with GreenLake, they can double down on that and enable the developers that are driving the digital transformation. That to me is the, the key positions that they have to nail. And they do that. The rest is just fringe work. In my opinion, >>The reason why Alma was brought in, sorry, Lisa, it was, and then you gotta chime in here was to really build out that platform so that internal people at HPE can actually build value on top of it and the ecosystem that's her priority. >>We're gonna hear a lot from the ecosystem in the next couple of days, but I wanna get your perspective on, you've been following HPE a long time, all three of you. What are some of the things that you're hearing right now that are differentiators? We were just at Dell technologies. We talking about apex. We saw the big announcement they had with snowflake. We were at snowflake two weeks ago. I wanna get all three of your opinions on what are you seeing? Where is HP leading? >>I mean, HPE and Dell will, both with Dell, with apex are go, they're both gonna differentiate with their strengths. And, you know, for Dell, that's their breadth and their, their portfolio. And for, for HPE, that's their sort of open posture. I mean, John, you, you know this well, uh, that's their, their ecosystem, which I know has to evolve. And to me, their focus, you know, Antonio laid out some of the key differentiators. I, I, I think some of them were kind of, you know, pushing the envelope a little bit. Uh, but, but I think they're focus on as a service burning the, the, the boats telling wall street, this is our business. I think that's their differentiator. Is that they're, they're all in. >>Yeah. I, I think they, they try to highlight it by re announcing their private cloud service. I don't even know why they needed to announce that they have a private cloud. GreenLake is a cloud it's is a private cloud >>With block storage, hit disaster recovery. It's like good >>With like everything you get. But I think the, the key is, is that all of that is available today and you can get it in all kinds of frame of, of formats and, and frames specifically, if I'm a customer and I wanna get outta the data center and you, you know, Dave, we go back and forth about this all the time, and I wanna repatriate some workloads to Kubernetes on prem. I don't need to spend up another data center. I can go to Equinix, get GreenLake min IO, object storage on the back end, HPE lighthouse, all those services that I need for Kubernetes and repatriate my workloads without buying a new data center. And I get it as a service. I can get that Dave from HPE GreenLake, Dell apex is on the way. The >>Other thing they're differentiating with Aruba, that's something that Dell doesn't have. Yeah. And, and that is their edge play, I think is stronger than >>Of the others. Mean the, to me, the differentiator for HP is their, their history. Their channel's amazing. They got great Salesforce and they have serious customers and they have serious customers that have serious problems, uh, cyber security, uh, infrastructure, the security paradigm's changed. Uh, the deployment is changed how they deploy applications in their customer base. So they gotta step up to that challenge. And I think their differentiator is gonna be their size, their field and their ability to bring that operating model. And the hybrid model is a steady state. That's clear multi-cloud is just hybrids stitched together, but hybrid cloud, which is basically on premises and cloud to edge operating model is the number one thing that they need to nail. And if they nail that right, they will have a poll position that they could accelerate on. And again, I'm really gonna be watching how well they could enable cloud native developers, okay. To build modern agile applications while solving those serious problems with those serious customers. So again, I think hybrids spun in their direction. I'm not gonna say they got lucky, cuz they've always been on the hybrid bandwagon since we've been covering them. But I thought they'd be for a long day, but they're lucky to have hybrid. That's good for them. And I think do what Microsoft did convert their customers over and they do that, right? >>I think the key to that is gonna be ecosystem. Again, the developers need to see, especially the data piece, they talk about the cloud operating model. I think they're really moving that direction. The data piece to me is the weakest. Like they'll, they'll make claims that we can do anything that the cloud can do. You can't run snowflake, can't run data bricks, can't run Mongo Atlas. So they gotta figure out that data layer and that's optionality of, of data stores. And they don't have that today. >>Yeah. They, they, they have an announcement coming and I can't pre-announce it, but they're, they've, I've deemed them against it. They have the vision, Emeral data services, their data fabric multi-protocol access is a great start. They need the data network behind it. They need the ability to build a super cloud, a across multiple cloud providers, bringing some Google infos love inside of, uh, right next to your data. They have the hardware, they have the infrastructure, but they don't have the services. >>That's a key thing. I think one, you just brought up great point, Keith, and that is, is that at the end of the day, Dave, we're in a market now where agility and speed can be accomplished by startups or any company and HP's customers. Okay. Can move fast too. Okay. And so whoever can extend that value. If HPE can enable value creation for their customers, that's gonna be truly their, their task at hand, they got the channel, they got some leverage, but at the end of the day, the customers have alternatives now and they can move faster to get the value that they need to solve their serious problems. Uh, like cyber, like scalable infrastructure, like infrastructures code, like data ops, like AI ops, it's all here. And it's all coming really fast. Can GreenLake carry the day. And >>By the way, everything we just said about GreenLake in terms of table stakes and everything else, it applies for Dell. >>Yeah, absolutely. >>No question. It does guys. We have, and jam packed three days. We're gonna be talking with the ecosystem. We're gonna be talking with HPE leaders with customers. You're gonna hear all of these, uh, all this information unpacked over the next three days. We will be right back with our first guest for Dave ante, Keith Townson and John furrier. I'm Lisa Martin. Our first guest joins us momentarily.

>>Welcome back to our coverage of HBs. Green Lake announcement's gonna talk about transformation acceleration, who doesn't wanna go faster as they're transforming, right? Everybody is transforming and they want to go as fast as possible to get time to value keith White is here, he's the senior vice president and general manager of Green Lakes commercial business at HP. Michelle LaU is Green Lake cloud services solutions at HP gents. Welcome. Good to see you >>awesome to be here. Thanks so much. Great to be here. >>Dave keith, we've we've been talking virtually for >>quite some time now. >>Q three earnings beaten raise uh focusing on, you know, some real momentum uh want to understand where it's coming from. A r I've said it's headed toward a billion, I think you said 700 million was where you were at last quarter, 1100 customers, orders were up 46%,, Last quarter revenue up over 30%. Where's the momentum >>coming from? No, it's fantastic. And I think what you're seeing is, you know, the world is hybrid. So in essence customers are looking for that solution that says, hey, mere my public cloud with my on premise scenario and give me that hybrid solution and we're just seeing just tremendous momentum and interest across a variety of workloads across a variety of vertical solutions and frankly we're seeing customers basically uh lean in on really running their business on HP. Green Lake, so you know, we had a pretty exciting announcement with the s a a couple weeks back, $2 billion deal, um but again, this shows the value of what Green Lake and the on prem requirements are high level of security, high level of capability? They're doing analytics on all the data that's out there. I mean this is the number one intelligence agency in the world. Right? So super excited about that and it just validates our strategy and validates where we're going. Um the other thing that's really exciting is we're seeing a lot of customers with this whole S. A. P migration, right? Um so ongc, one of the largest oil and gas companies in India, I want to say it's one of the top five S. A. P. Implementations in the world has chosen. Green Lake is their opportunity as well, huge retailers like wal wars. Uh so worldwide we're seeing tremendous momentum. >>That's great. Congratulations on the momentum. I know you're not done uh Michelle new role for you. Awesome. Um when we covered uh discover this year in the cube, we talked about sort of new workload solutions that you guys had. Uh S. A. P. As keith was just mentioning Ml Ops V. D. I. A number of of those workloads that you were really focused on the solution side. How's that going? Give us the update there? >>No, it's coming along really well. I mean you highlighted some of the big ones there. I mean the way we are thinking about Green Lake. Right? I mean, you know, we talked about the great momentum that we've had. The question is why are we having that right? Why are missing that momentum in the market? And I think I'll kind of call out a few features of the green platform that's really making it attractive to customers. Right? What is the experience? What we're trying to do is make it a very, very seamless experience for them? Right. Quick provisioning, easy to manage, easy to monitor, kind of an automated solution. Right? So that's kind of a key element of what we're trying to offer performances. Another one. Right? I mean, the end of the day, what we're doing is we are building out our infrastructure stack and the software stack in such a way that is optimized for the performance. Right? I mean, if you take data for example, it's called the right elements to make sure that the analytics can be done in a machine learning algorithms can be run. So those are like, you know, some of the performance, I think it's a great experience is a big factor. Tco right? I mean customers are very, very focused on their cost base. Right? Especially as they are starting to run up the bills in public cloud. They're like, man, this is expensive, I need to start thinking about costs here because costs catch up pretty fast. So that's kind of another element that people are really focused on and I would say the last one being choice. Right? I mean we provide this platform which is open. Alright. So customers can use it if they want to migrate off it, they can migrate off it. We're not locking them in. So those are some of the value propositions that are really resonating in the marketplace and you're seeing that in the numbers that we just talked about. >>So keep speaking of transformation you guys are undergoing obviously a transformation your your cloud company now. Okay, so part of that is the ecosystem. The partners talk about your strategy in that regard, why you're so excited about welcoming the partners into this old Green Lake world, >>you bet and you know I'm a big fan of one plus one equals three. My seven year old daughter tells me that doesn't actually add up correctly but at the same time it's so true with what we're doing and as official just said an open platform that allows partners to really plug in so that we can leverage the power of S. A. P. Or the power of Nutanix. So the power of Citrix at the same time, all of these are solutions that require, you know deep system integration and capabilities to really be customized for that customers environment. So whether that's infosys or accenture or we pro you know that we need we need those partners as well along with our own advisory and professional services to help customers. But at the same time, you know we talked about the fact that this is really about bringing that cloud experience to the on prem world might be a data center but we're seeing a lot of customers get out of the data center management business and move into a Coehlo. And so the fact that we can partner with the ECU annexes and the Cyrus ones of the world really enable a whole new environment so that customers again can run their business and not get caught up with keeping the lights on and managing power and those types of things. And then finally I'll say, look, the channel itself is actually migrating to offer more services to their customers managed service providers, telcos, distance and resellers and now what we're providing them is that platform with which to offer their own manage services to customers in a much more cost effective cloud experience way with all the benefits of being on prem secure latency app integration and that sort of thing. So it's exciting to see the ecosystem really gate Gardner the momentum and really partner with us closely >>follow up on the partner question if I could. So partner services are part of Green Lake. It's a journey, not everything all at once. Uh but so it's essentially as simple as saying, okay, I want that service, that's my choice. Uh you've given them optionality and it's ideally as seamless as it is in HP services, that the direction that you're >>going. That's right, yeah. So the set that api set that Stalin team are building are basically saying, hey, leverage our cost analytics capabilities, leverage our capacity management, leverage the interface so that you can plug into that single control plane. And so they're making it super simple for our partner ecosystem to do that. And what I think is really important is that if you are a partner, you want to basically offer choice to the customer and if the customer decides, hey, I want to use um red hats open shift for the container platform versus rs morale offering, then they can get just as good of a first class offering with respect to that. Someone wants to use Citrix or Nutanix or VM ware for their video solution. They have that choice. And so we want to make sure we're offering customer choice for what's best for their situation, but also making sure that it's fully integrated with what we do. God thank >>You. So we see more software content of the show. I wonder if you could. I mean certainly as morale is a big piece of that. I talked earlier about margins hit record for HPE. Almost 35% gross margins. This course of software is gonna obviously push that further along um, Lighthouses, another one. How should we think about the direction that you're going >>software. Absolutely. So if you think about what we are building out here is a solution, right? This is solution that's very tightly integrated between the infrastructure stack and the soft and this software that enables it. So really there three or four components to the solution day. Right. So think about Lighthouse, which is an infrastructure stack that is optimized for what's going to run on that. Right? If it's a general purpose compute it will the infrastructure will look different. If it's a storage intensive workload, it will look different. If it's a machine learning workloads will look different. Right? So that's kind of the first component and just optimizing it for what's going to run on it. Second is, um, what we call the Green light platform, which is all about managing and orchestrating it. And what we want to do is we want to have a completely automated experience right from from the way you provisioned it to the way you run the workloads to the way you manage it, to the way you monitor it to the way partners link into it. Right to the way in the software vendors kind of sit on top of that. Right. And then we talked about escrow as well as the engine that runs it right from a container platform perspective or we spend some time talking about unified analytics today. Those are the types of data integration that power Green Lake and the last piece of software I would say is as we kind of think about the ecosystem that runs on top of Green Lake, whether it's our software or third party software. Right? They all have a place equal place on top of the green light platform. And we are very focused on building on the ecosystem. Right? So as a customer or an enterprise who wants to use you should have the choice to run you know 40 50 102 105 100 different software packages on top of Green Lake. And it should be all an automated fashion. But we have tested that in advance. There's there's commercials behind that. It becomes a very very self service provision, seamless experience from the customer's perspective. >>Great. Thank you. So keep 2020 was sort of like sometimes called the force marched to digital right? And some some customers they were already there. Uh so there's a majority now that we've been through this awful year and change, customers are kind of rethinking their digital strategies and their transformations that there can be a little bit more planned fel now you know the world didn't end and and you know I. T. Budgets kind of stabilized a bit actually, you know did better than perhaps we thought. So where are we in terms of transformations? What's the business angle? What are you seeing out there? >>Yeah. I mean customers found a lot of holes that they had in their environment because of the pandemic. I think customers are also seeing opportunities to grow pretty aggressively. You know we just announced Patrick terminals, one of the largest shipping companies in south pack and you know that whole shipping craziness that's going on right now they needed a new digital transformation in order to really make sure they could orchestrate their container ships effectively. Even we talked about Woolworth's there now, changing how they deal with their suppliers because of the Green Lake platform that they have. And so what you're seeing is, hey, you know, first phase of digital transformation public cloud was an interesting scenario. Now they're being able to be planned for like you said and say, where's the best place for me to run this for the latency required with that data, for the choice that we have from an I. S. V. Standpoint, you know, for the on prem capabilities of what we're trying to do from a security standpoint etcetera. So the nice thing is we've seen it move from, you know, hey, we're just trying to get the basic things modernized into truly modernizing data centers, monetizing the data that I have and continuing to transform that environment for their customers, partners, employees and products >>kind of a left field question a bit off topic, but certainly related edge. You guys talk about edge a lot. Hybrid is clear. I think in people's minds you've got an on prem you're connecting to a cloud maybe across clouds? Is edge an extension of hybrid or is it today sort of a bespoke opportunity that maybe we'll come back to this new version of cloud, What's happening at the edge >>that you see? Yeah. So let me just uh I mean think of the edge as it's a continuum. Right? The way at least we think about it, it's not data center or the edge. Right. Think of it as, you know, there's a data center, uh there's a hyper scale data center, there's a data center, there's a closet somewhere, right? There's a cola opportunity, Right? And then you're running something in the store. Right? So let's take the example of a retailer. They're running something in the store and what are they running? They're running? Point of service applications or they're running IOT devices. Right. And at some point they have to connect back into the cloud. Right. So we actually have, you know, something to find van capabilities that connect, you know, uh you know, the Edge devices or edge analytics back into the cloud, we actually have a small form factor kubernetes um operating system that runs on the edge. Right. So we think of all of that as kind of a distributed environment in which Edge is one place where the application runs and where the data sites but it needs to be connected back and so we provide the connectivity back, we provide the mechanism by which we run it and then there's a security model, especially around sassy that is emerging on securing that. So that's kind of how we think about it as part of the overall distributed architecture that we are building and that's where the world will be >>another node in the cloud. >>Another note in the distributed world. Exactly >>yeah. I think the other thing to think about with the edges that this is where the majority of your data is actually getting created. Right? You talked about IOT devices, you know, you'll hear from Zen's Act and what they're doing with respect to autonomous driving with vehicles. You know, we talk about folks like ab that are building the factory of the future and robotics as a service in order to be able to really make sure that that precision happens at that at that point. So a ton of data is coming from that. And so again, how do you analyze that? How do you monetize that? How do you make decisions off of it? And it's it's an exciting place for us. So it's great to have all the connectivity we talked >>about last question, maybe both could address it. Uh we've we we used to see this cadence of of products often times in the form of boxes come out from HP and HP. Now we're seeing a cadence of services, we're seeing more capabilities across this, this this this green lake uh state that you guys are building out. What should we expect in the future? What are the kinds of things that we should evaluate you on? >>Well, I'll start and then maybe you can jump in but you know, the reality is we are becoming much deeper partners with our customers right there looking to us to say help me run my data center, help me improve my data and analytics. Help me at the edge so that I can have the most effective scenario. So what you're seeing from us is this flip from hardware provider into deep partnerships with that with the open platform. I'd say the second thing that we're doing is we're helping them fuel that digital transformation because again, they're looking for that hybrid solution. And so now they're saying, hey HP come and showcase all the experience you have from point next from your advisor and professional services and help me understand what other customers are doing so that I can implement that faster, better, cheaper, easier, etcetera. And then from a product standpoint, kind of a ton of great things. >>That's exactly right. I mean uh we are taking a very, very focused customer back view as we are looking at the future of Green Lake. Right. And exactly the way kids said, right, I mean it's all about solving customer problems for us. Some customer problems are still in the data center, some of them are in close, some customer problems are in the edge. So they're all uh fair game for us as we think about, you know, what we are going to be building out and do your point earlier. Dave it's not about, you know, a server or storage is the institutions right. And the solutions have to have integrated hardware, integrated software, staff, integrated services. Right. There are partners who sell that, who service that and all that entire experience from a customer perspective has to be a seamless. Right? And it's just in our cloud platform, we kind of help the customer run it and manage it and we give them kind of the best performance at the lowest cost, which is what they're looking for. So that's kind of what you'll see us. You'll see more of a cadence of these services can come out, but it's all going in that direction in helping customers with new solutions. >>A lot of customer problems out there, which your opportunities and you know, generally the hyper scale as they are good at solutions. They don't, you know, there's not a lot of solution folks like that. That's a that's a wonderful opportunity for you to build on on top of that huge gift, that Capex gift >>at the hyper scholars have given us all. That's right. And we're seeing the momentum happen. So it's exciting. That's cool guys. Hey, thanks a lot for coming to the cube. Yeah, Yeah. All right, >>okay. And thank you for watching keep it right there more action from HP. Es Green Lake announcements, you're watching the cube. Mm. Mm

>>Welcome back to HPD discovered 2021. The virtual edition. My name is Dave Volonte and you're watching the cubes continuous coverage of H. P. S. Big customer event. Patrick Moorehead is here of moor insights and strategy is the number one analyst in the research analyst. Business. Patrick. Always a pleasure. Great to see you, >>David. Great to see you too. And I know you're you're up there fighting for that number one spot to. It's great to see you and it's great to see you in the meetings that were in. But it's even more fun to be here on the cube. I love to be on the cube and every once in a while you'll even call me a friend of the cube, >>unquestionably my friend and so and I can't wait second half. I mean you're traveling right now. We're headed to Barcelona to mobile World Congress later on this month. So so we're gonna we're gonna see each other face to face this year. 100%. So looking forward to that. So you know, let's get into it. Um you know, before we get into H. P. E. Let's talk a little bit about what you're seeing in the market. We've got, you know, we we finally, it feels like the on prem guys are finally getting their cloud act together. Um it's maybe taken a while, but we're seeing as a service models emerge. I think it's resonating with customers. The clearly not everything is moving to the cloud. There's this hybrid model emerging. Multi cloud is real despite what, you know, >>some some >>cloud players want to say. And then there's this edges like jump ball, what are you seeing in the marketplace? >>Yeah. Davis, as exciting as ever in. Just to put in perspective, I mean the public cloud has been around for about 10 years and still only 20% around 20% of the data in 20% of the applications are there now will be a very important ones and I'm certainly not a public cloud denier, I never have been, but there are some missing pieces that need to come together. And you know, even five years ago we were debating dave the hybrid cloud. And I feel like when amazon brought out outposts, the conversation was over right now, what you have is cloud native folks building out hybrid and on prem capabilities, you have a classic on, on prem folks building out hybrid and as a service capabilities. And I really think it boils down 22 things. I mean it's, it's wanting to have more flexibility and you know, I hate to use it because it sounds like a marketing word, but agility, the ability to spin up things and spin down things in a very, a quick way. And uh you know what they've learned, The veterans also know, hey, let's do this in a way that doesn't lock us in too much into a certain vendor. And I've been around for a long time. David and I'm a realist too. Well, you have to lock yourself into something. Uh it just depends on what do you want to lock yourself into, but super exciting and what H. P. E. You know, when they further acts in the sea with Green Lake, I think it was four years ago, uh I think really started to stir the pot. >>You know, you mentioned the term cloud denial, but you know, and I feel like the narrative from, I like to determine as I think you should use the term veteran. You know, it's very, they're ours is the only industry patrick where legacy is a pejorative, but so, but the point I want to make is I feel like there's been a lot of sort of fear from the veteran players, but, but I look at it differently, I wonder what your take is. I, I think, I think I calculated that the Capex spending by the big four public clouds including Alibaba last year was $100 billion. That's like a gift to the world. Here we're gonna spend $100 billion like the internet. Here you go build. And so I, and I feel like companies like HP are finally saying, yeah, we're gonna build, we're gonna build a layer and we're gonna hide the complexity and we're gonna add value on top. What do you think about that? >>Yeah. So I think it's now, I wish, I wish the on prem folks like HP, you would have done it 10 years ago, but I don't think anybody expected the cloud to be as big as it's become over the last 10 years. I think we saw companies like salesforce with sas taking off, but I think it is the right direction because there are advantages to having workloads on prem and if you add an as a service capability on top of the top of that, and let's say even do a Coehlo or a managed service, it's pretty close to being similar to the public cloud with the exception, that you can't necessarily swipe a credit card for a bespoke workload if you're a developer and it is a little harder to scale out. But that is the next step in the equation day, which is having, having these folks make capital expenditures, make them in a Polo facility and then put a layer to swipe a credit card and you literally have the public cloud. >>Yeah. So that's, that's a great point. And that's where it's headed, isn't it? Um, so let's, let's talk about the horses on the track. Hp as you mentioned, I didn't realize it was four years ago. I thought it was, wow, That's amazing. So everybody's followed suit. You see, Dallas announced, Cisco has announced, uh, Lenovo was announced, I think IBM as well. So we, so everybody's sort of following suit there. The reality is, is it's taken some time to get this stuff standardized. What are you seeing from, from HP? They've made some additional announcements, discover what's your take on all this. >>Yeah. So HPD was definitely the rabbit here and they were first in the market. It was good to see. First off some of their, Um, announcements on, on how it's going and they talked about $428 billion 1200 customers over 900 partners and 95% retention. And I think that's important. Anybody who's in the lead and remember what aws I used to do with the slide with the amount of customers would just get bigger and bigger and bigger and that's a good way to show momentum. I like the retention part two which is 95%. And I think that that says a lot uh probably the more important announcements that they made is they talked about the G. A. Of some of their solutions on Green Lake and whether it is A. S. A. P. Hana. Ml apps HPC with Francis, VD. I was Citrus and video but they also brought more of what I would call a vertical layer and I'm sure you've seen the vertical ization of all of these cloud and as a service workloads. But what they're doing with Epic, with EMR and looseness, with financial payments and Splunk and intel with data and risk analysis and finally, a full stack for telco five G. One of the biggest secrets and I covered this about five years ago is HPV actually has a full stack that Western european carriers use and they're now extending that to five G. And um, so more horizontal, uh, and, and more vertical. That was the one of the big swipes, uh, that I saw that there was a second though, but maybe we can talk about these. >>Yeah. Okay. Okay. So, so the other piece of that of course is standardization right there there because there was a, there was a, there was a lot of customization leading up to this and everybody sort of, everybody always had some kind of financial game they can play and say, hey, there's an adversary as a service model, but this is definitely more of a standardized scalable move that H P E. Is making with what they call Lighthouse. Right? >>Yeah, that's exactly right. And I've talked to some Green Lake customers and they obviously gave it kudos or they wouldn't have HP wouldn't have served them up and they wouldn't have been buying it. But they did say, um, it took, it took a while, took some paperwork to get it going. It's not 100% of push button, but that's partially because hp allows you to customize the hardware. You want a one off network adapter. Hp says yes, right. You want to integrate a different type of storage? They said yes. But with Green Lake Lighthouse, it's more of a, what you see is what you get, which by the way, is very much like the public cloud or you go to a public cloud product sheet or order sheet. You're picking from a list and you really don't know everything that's underneath the covers, aside from, let's say, the speed of the network, the type of the storage and the amount of the storage you get. You do get to pick between, let's say, an intel processor, Graviton two or an M. D processor. You get to pick your own GPU. But that's pretty much it. And HP Lighthouse, sorry, Green Lake Lighthouse uh is bringing, I think a simplification to Green Lake that it needs to truly scale beyond, let's say the White House customers that HP Yeah, >>Well done. So, you know, and I hear your point about we're 10 years in plus. And to me this is like a mandate. I mean, this is okay, good, good job guys about time. But if I had a, you know, sort of look at the big player, it's like we have an oligopoly here in this, in this business. It's HP, Cisco, you got Dell Lenovo, you've got, you know, IBM, they're all doing this and they all have a different little difference, you know, waste of skin of catch. And your point about simplicity, it seems like HP HP is all in antony's like, okay, here's what we're going to announce that, you know, a while ago. So, and they seem to have done a good job with Wall Street and they got a simple model, you know, Dell is obviously bigger portfolio, much more complicated. IBM is even more complicated than that. I don't know so much about Lenovo and in Cisco of course, has acquired a ton of SAAS companies and sort of they've got a lot of bespoke products that they're trying to put together. So they've got, but they do have SAS models. So each of them is coming at it from a different perspective. How do you think? And so and the other point we got lighthouse, which is sort of Phase one, get product market fit. Phase two now is scale, codify standardized and then phase three is the moat build your unique advantage that protects your business. What do you see as HP ES sort of unique value proposition and moat that they can build longer term. >>That's a great, great question. And let me rattle off kind of what I'm seeing that some of these players here, So Cisco, ironically has sells the most software of any of those players that you mentioned, uh with the exception of IBM um and yeah, C I >>CSDB two. Yeah, >>yeah, they're the they're the number two security player, uh Microsoft, number one, So and I think the evaluation on the street uh indicate that shows that I feel like Dell tech is a very broad play because not only do they have servers, storage, networking insecurity, but they also have Pcs and devices. So it's a it's a scale and end play with a focus on VM ware solutions, not exclusively of course. Uh And um then you've got Lenovo who is just getting into the as a service game and are gosh, they're doing great in hyper scale, they've got scale there vertically integrated. I don't know if if too many people talk about that, but Lenovo does a lot of their own manufacturing and they actually manufacture Netapp storage solutions as well. So yeah, each of these folks brings a different game to the table. I think with h P e, what you're bringing the table is nimble. When HP and HP split, the number one thing that I said was that ah, h P E is going to have to be so much faster than it offsets the scale that Dell technology has and the HBs credit, although there, I don't think we're getting credit for this in the stock market yet. Um and I know you and I are both industry folks, not financial folks, but I think their biggest thing is speed and the ability to move faster. And that is what I've seen as it relates to the moat, which is a unique uh competitive advantage. Quite frankly, I'm still looking for that day uh in in in what that is. And I think in this industry it's nearly impossible. And I would posit that that any, even the cloud folks, if you say, is there something that AWS can do that as your can't if it put it put its mind to it or G C P. I don't think so. I think it's more of a kind of land and expand and I think for H P E. When it comes to high performance computing and I'm not just talking about government installations, I'm talking about product development, drug development. I think that is a landing place where H P. E already does pretty well can come in and expand its footprint. >>You know, that's really interesting um, observations. So, and I would agree with you. It's kind of like, this is a copycat industry. It's like the west coast offense like the NFL, >>so, >>so the moat comes from, you know, brand execution and your other point about when HP and HP split, that was a game changer because all of a sudden you saw companies like them, you always had a long term relationship with H P E, but or HP, but then they came out of the woodworks and started to explode. And so it really opened up opportunities. So it really is a execution, isn't it? But go ahead please. >>Dave if I had to pick something that I think HP HPV needs to always be ahead in as a service and listen you and I both know announcements don't mean delivery, but there is correlation between if you start four years ahead of somebody that other company is going to have to put just, I mean they're going to have to turn that ship and many of its competitors really big ships to be able to get there. So I think what Antonio needs to do is run like hell, right? Because it, it I think it is in the lead and as a service holistically doesn't mean they're going to be there forever, but they have to stay ahead. They have to add more horizontal solutions. They have to add more vertical solutions. And I believe that at some point it does need to invest in some Capex at somebody like Anna Quinn X play credit card swiper on top of that. And Dave, you have the public, you have the public cloud, you don't have all the availability zones, but you have a public cloud. >>Yeah, that's going to happen. I think you're right on. So we see this notion of cloud expanding. It's no longer just remote set of services. Somewhere out in the cloud. It's like you said, outpost was the sort of signal. Okay, We're coming on prem. Clearly the on prem uh, guys are connecting to the cloud. Multi cloud exists, we know this and then there's the edge but but but that brings me to that sort of vision and everybody's laying out of this this this seamless integration hiding the complexity log into my cloud and then life will be good. But the edge is different. Right? It's not just, you know, retail store or a race track. I mean there's the far edge, there's the Tesla car, there's gonna be compute everywhere and that sort of ties into the data. The data flows, you know the real time influencing at the edge ai new semiconductor models. You you came out of the semiconductor industry, you know it inside and out arm is exploding, dominating in the edge with apple and amazon Alexa and things like that. That's really where the action is. So this is a really interesting cocktail and soup that we have going on. How do >>you say? Well, you know, Dave if the data most data, I think one thing most everybody agrees on is that most of the data will be created on the edge, whether that's a moving edge a car, a smartphone or what I call an edge data center without tile flooring. Like that server that's bolted to the wall of Mcdonald's. When you drive through, you can see it versus the walmart. Every walmart has a raised tile floor. It's the edge to economically and performance wise, it doesn't make any sense to send all that data to the mother ships. Okay. And whether that's unproven data center or the giant public cloud, more efficient way is to do the compute at the closest way possible. But what it does, it does bring up challenges. The first challenge is security. If I wanted to, I could walk in and I could take that server off the Mcdonald's or the Shell gas station wall. So I can't do that in a big data center. Okay, so security, physical security is a challenge. The second is you don't have the people to go in there and fix stuff that are qualified. If you have a networking problem that goes wrong in Mcdonald's, there's nobody there that can help uh they can they can help you fix that. So this notion of autonomy and management and not keeping hyper critical data sitting out there and it becomes it becomes a security issue becomes a management issue. Let me talk about the benefits though. The benefits are lower latency. You want you want answers more quickly when that car is driving down the road And it has a 5GV 2 x communication cameras can't see around corners. But that car communicating ahead, that ran into the stop sign can, through Vita X talked to the car behind it and say, hey, something is going on there, you can't go to, you can't go to the big data center in the sky, let's make that happen, that is to be in near real time and that computer has to happen on the edge. So I think this is a tremendous opportunity and ironically the classic on prem guys, they own this, they own this space aside from smartphones of course, but if you look at compute on a light pole, companies like Intel have built complete architecture is to do that, putting compute into five G base stations, heck, I just, there was an announcement this week of google cloud and its gaming solution putting compute in a carrier edge to give lower latency to deliver a better experience. >>Yeah, so there, of course there is no one edge, it's highly fragmented, but I'm interested in your thoughts on kinda whose stack actually can play at the edge. And I've been sort of poking uh H P E about this. And the one thing that comes back consistently is Aruba, we we could take a room but not only to the, to the near edge, but to the far edge. And and that, do you see that as a competitive advantage? >>Oh gosh, yes. I mean, I would say the best acquisition That hp has made in 10 years has been aruba, it's fantastic and they also managed it in the right way. I mean it was part of HB but it was, it was managed a lot more loosely then, you know, a company that might get sucked into the board and I think that paid off tremendously. They're giving Cisco on the edge a absolute run for their money, their first with new technologies, but it's about the solution. What I love about what a ruble looks at is it's looking at entertainment solutions inside of a stadium, a information solution inside of an airport as opposed to just pushing the technology forward. And then when you integrate compute with with with Aruba, I think that's where the real magic happens. Most of the data on a permanent basis is actually video data. And a lot of it's for security, uh for surveillance. And quite frankly, people taking videos off, they're off their smartphones and downloaded video. I I just interviewed the chief network officer of T mobile and their number one bit of data is video, video uploaded, video download. But that's where the magic happens when you put that connectivity and the compute together and you can manage it in a, in an orderly and secure fashion. >>Well, I have you we have a ton of time here, but I I don't pick your brain about intel the future of intel. I know you've been following it quite closely, you always have Intel's fighting a forefront war, you got there battling a. M. D. There, battling your arm slash and video. They're they're taking on TSMC now and in foundry and, and I'll add china for the looming threat there. So what's your prognosis for for intel? >>Yeah, I liked bob the previous Ceo and I think he was doing a lot of of the right things, but I really think that customers and investors and even their ecosystem wanted somebody leading the company with a high degree of technical aptitude and Pat coming, I mean, Pat had a great job at VM or, I mean he had a great run there and I think it is a very positive move. I've never seen the energy at Intel. Probably in the last 10 years that I've seen today. I actually got a chance to talk with Pat. I visited Pat uhh last month and and talk to him about pretty much everything and where he wanted to take the company the way you looked at technology, what was important, what's not important. But I think first off in the world of semiconductors, there are no quick fixes. Okay. Intel has a another two years Before we see what the results are. And I think 2023 for them is gonna be a huge year. But even with all this competition though, Dave they still have close to 85% market share in servers and revenue share for client computing around 90%. Okay. So and they built out there networking business, they build out a storage business um with obtain they have the leading Aid as provider with Mobileye. And and listen I was I was one of Intel's biggest, I was into one of Intel's biggest, I was Intel's biggest customer when I was a compact. I was their biggest competitor at A. M. B. So um I'm not obviously not overly pushing or there's just got to wait and see. They're doing the right things. They have the right strategy. They need to execute. One of the most important things That Intel did is extend their alliance with TSMC. So in 2023 we're going to see Intel compute units these tiles they integrate into the larger chips called S. O. C. S. B. Manufactured by TSMC. Not exclusively, but we could see that. So literally we could have AMG three nanometer on TSMC CPU blocks, competing with intel chips with TSMC three nanometer CPU blocks and it's on with regard to video. I mean in video is one of these companies that just keeps going charging, charging hard and I'm actually meeting with Jensen wang this week and Arm Ceo Simon Segers to talk about this opportunity and that's a company that keeps on moving interestingly enough in video. If the Arm deal does go through will be the largest chip license, see CPU licensee and have the largest CPU footprint on on the planet. So here we have A and D. Who's CPU and Gpu and buying an F. P. G. A company called Xilinx, you have Intel, Cpus, Gpus machine learning accelerators and F. P. G. S and then you've got arms slashing video bit with everything as well. We have three massive ecosystems. They're gonna be colliding here and I think it's gonna be great for competition date. Competition is great. You know, when there's not competition in Cpus and Gpus, we know what happens, right. Uh, the B just does not go on and we start to stagnate. And I did, I do feel like the industry on CPU started to stagnate when intel had no competition. So bring it on. This is gonna be great for for enterprises then customers to, and then, oh, by the way, the custom Chip providers, WS has created no less than 15 custom semiconductors started with networking uh, and, and nitro and building out an edge that surrounded the general compute and then it moved to Inferential to for inference trainee um, is about to come out for training Graviton and gravitas to for general purpose CPU and then you've got Apple. So innovation is huge and you know, I love to always make fun of the software is eating the world. I always say yeah but has to run on something. And so I think the combination of semiconductors, software and cloud is just really a magical combination. >>Real quick handicap the video arm acquisition. What what are the odds that that they will be successful? They say it's on track. You've got to 2 to 13 to 1 10 to 1. >>I say 75%. Yes 25%. No China is always the has been the odd odd man out for the last three years. They scuttled the qualcomm NXP deal. You just don't know what china is going to do. I think the Eu with some conditions is gonna let this fly. I think the U. S. Is absolutely going to let this fly. And even though the I. P. Will still stay over in the UK, I think the U. S. Wants to see, wants to see this happen. Japan and Korea. I think we'll allow this china is the odd man out. >>In a word, the future of H. P. E. Is blank >>as a service >>patrick Moorehead. Always a pleasure my friend. Great to see you. Thanks so much for coming back in the cube. >>Yeah, Thanks for having me on. I appreciate that. >>Everybody stay tuned for more great coverage from HP discover 21 this is day Volonte for the cube. The leader and enterprise tech coverage. We'll be right back. >>Mm.

>>mhm >>mm >>Hello and welcome back to HPD discovered 2021. My name is Dave Volonte and we're going to dig into H P E. Green Lake, we've heard a lot about this, we want to find out how real it is and test a little bit of how how can help solve your business problems. We also want to understand Green Lake relative to the competition. HPV was the first, as you probably know to declare it all in with an as a service model and virtually every major infrastructure player has now followed suit. So we want to hear from HP directly how it's different from the competition, where it's innovating and that means we're gonna poke a little bit of customer examples and how the partner ecosystem is adopting and responding to Green Lake and with me is the right person to do this is keith White, who is the senior Vice President General Manager of the Green Lake cloud services business unit at HP, keith, great to see you, thanks for coming back to the cube. >>Okay, fantastic to see you as always. So thanks so much for having me. >>Yeah, it's our pleasure. So look, we're hearing a lot leading up to discover and at this event about Green Lake you got momentum now, everybody's excited about it. What's driving demand? Where's the excitement coming from? >>No, it's a great question. And you know, the reality is customers are expecting this cloud experience, right? So they they've been using the public cloud, they've been engaging on that front and this cloud experience is really driven, a pretty high amount of customer expectations, make itself served, make it automated, make it easy to consume, only want to pay for what I'm using and then manage it all for me on the back end. But 60 to 70% of apps and data will stay on prem per Gardner and I D. C. And so give me that experience on prem. And so that's why I think Green Lake has gotten so much interest, so much positive growth and momentum is because we're bringing that cloud experience to our customers in their data center, in their Coehlo or at the edge and that's where they want to see it just as much. And so since the world is now hybrid, we have a fantastic solution for folks. >>So you, you were first in this game and so you took some arrows and I'm interested in how Green Lake has evolved, Take us through the journey maybe what were some of the bumps in the road that you had to overcome? Maybe how it compares with the competition. Maybe some of the things that they're going to have to go through as well to get to the point where you are. >>No, it's true. And you know, the great thing is HP as a company is really moving to be much more of a cloud services and software company. And you know, we're seeing this from our competition, as you mentioned, have followed suit. But in essence, you know, you have to move from just sort of providing lease type financing type scenarios for our customers into truly delivering that cloud experience. And that's what's been so exciting over this last year is we've gone from just the basic cloud services, compute storage, networking and VMS to really providing containers as a service, bare metal as a service. Uh, machine learning ops, S. A P V. D I. You know, we've now created a set of workloads and as you heard it discover we're now delivering industry solutions, so electronic medical records for hospitals or high delivery payment transaction processing for, for financial, so that the challenge of moving from just sort of leasing basic capabilities to a true cloud experience that again pay as I go, fully automated self serve, all managed for me has really been a challenge and it's exciting, it's exciting to see customers jump on and really sort of lean in and see the business value that comes from having that level of solution >>keith, am I correct in that pretty much every large tech company has a services arm and they could, they could sort of brute force, some kind of cloud like experience and that's kind of what people have done historically the layer in a financial like leasing financial as you said and and but every situation was unique, it was kind of a snowflake if you will and you guys are probably there a few years ago as well and so I'm interested in sort of how you evolved beyond that. Was it a mindset was a technology, was it sort of cultural? You know, it came from the top as well, but maybe you could describe that a little bit. >>Yeah, the ship comes from our customers because what's happening is customers no longer trying to buy component parts. They're saying it's really about Tesla's like, hey, I want you to deliver this for me. In essence, we're running the data center for them now. We're running their machine learning operations environment for them. Now, you know, we're migrating their mainframe over now. And so what's happening is these sls are really, what matters to customers like that? It's not so much about, hey, what are the speeds and feeds and this and that? And so yes, you can sort of brute force that piece of it. But what you really are having to do is create this deep partnership and relationship with your customer to truly understand their business challenges and then provide them with that capability. Now I think the things that's exciting is yes, the public cloud gives you some some significant benefits for certain workloads and certain capabilities. But what we're hearing from customers is hey, I want to have much more control over my data center. I want to ensure that it has the security required. I want to make sure that I can make the adjustments necessary and so you're doing all that at a lower cost with open platform that I can use a variety of tools and other applications just makes it that much more powerful. So I think that's what we're seeing is we're getting into what our customers really requiring and then you know the most interesting thing is how do you make it work with my entire environment because I am running Azure and I am running A W. S. And I am running google and I'm running some other things. And so how does this cloud really helped me bring all those together to really govern that hybrid estate? And that's where I think Green Lake has really shine. >>So it kind of part of the secret sauce is automation because you've got to be, you still have, you have to be competitive, you know, at least within reason to cloud cost, sometimes it's going to be less expensive, maybe sometimes it can be more expensive. You've got some advantages in certain cases where, you know, there's government governance things and and you know, we don't have to go through all that, but there's the automation but you've got to be profitable at this too. So there's the automation, there's the tooling, there's the openness. So, so that was really a key part of it. Is it not that sort of automating? >>That's right. Automation is key as is really understanding what that customer environment is and optimizing for that piece of it. And so as you heard, we're really excited to announce our Green Lake Lighthouse, which is really providing workload optimized systems that are fully managed for them that provide that capability to run multiple workloads for that customer. But at the same time, to your point, there's a lot of charges that happened on the public cloud side. So, you know, data is the new, you know, gold if you will right, everyone's trying to monetize their data, trying to use it to make decisions and really understand what's happening across their environment and in the cloud. You know, if you put it up in the cloud, you have to pay to get it out. The egress charges can be significant and it's also a bit slower at times because of the latency that happens across that that that connection. And so we are now in a situation where we're seeing a lot of customers that are really trying to analyze their data, leveraging our HPC systems, leveraging our machine learning operation systems in order to really get that data happening, Getting the dancers out much, much faster and a much lower cost than what it would cost them to do that in the cloud. >>So you have some experience at this now. I wonder if we could dig into the customers how customers are using Green Lake. Maybe you can give some examples of success. >>Yeah. Yeah, no. You know it's exciting because you know first off everyone's looking at their digital transformation and that means something different for every single customer, so really understanding what they're trying to do from a transformation standpoint and then saying, okay, well how can we bring a solution to help accelerate that? To help be uh, you know, more connected to your customers to help improve your product delivery. We went to Lyondellbasell for example, one of the largest manufacturers in the world. And you know, they said, hey look, we don't want to run our data center anymore. Most most customers are trying to get out of the data center management business and they're saying, hey, run this for me, uh let me free up resources to go focus on things that really can drive additional value for our customers instead of keeping the lights on patching, blah blah blah. So we have taken their entire environment and moved it to a Coehlo and we're managing it now for them. And so in essence we freed up not just a ton of resources, but they have also been able to drop their carbon footprint, which is also this whole sustainability push is significant as well. And then you look at a customer like care stream, one of the largest medical diagnostic companies in the world, saying hey we gotta be able to allow our doctors to be able to um analyze and diagnose things much much faster through our X ray systems and through our diagnostic machines. And so they have implemented our machine learning operations scenario to dramatically speed up those types of capabilities. So as you go down the list and you start to see these customers really um leveraging technology to meet that digital transformation, saving costs, moving their business forward, creating new business models. It's just, it's really exciting. >>What about partners keith? How how have they responded? I mean, on the one hand, you know, that's great opportunities for them, you know, they're they're transforming their own business model. On the other hand, you know, maybe they were comfortable with the old model, they got a big house, nice, nice boat, you >>know? >>But how are they changing their their their business and how are they leaning in >>similar to what we're seeing? The opportunity for partners is dramatic, right? Because what happens is you have to have a very different relationship with your customer to truly understand their digital transformation. Their business challenges the problems that they're having to address. And so where we're seeing partners really, really sort of the opportunity is where there's the services and that sort of deeper relationship piece of it. So in essence, it's creating much more opportunity because the white spaces dramatic we're seeing, I want to say it's in the 30 to $40 billion worth of market opportunity as we move into an as a service on prem world. So they're seeing that opportunity. They're seeing the ability to add services on top of that and deepen the relationship with our customers. And you know, it's it's from my SVS. We're working closely with S. A. P. For example, to deliver their new rise private cloud customer edition. We're working closely with loosest, for example, who is doing a lot of payment processing type scenarios Nutanix and their database as a service scenario and Splunk because again, we went back to the data piece and these guys are doing so much big data type implementations for risk analytics and and regulatory type scenarios. It's just significant. And so because there's such a push to keep things on prem to have the security to reduce the latency to get rid of the egress charges and everything else. There's just a significant white space for both our partners and then from our distributors and resellers, they're getting to change their business model again, to get much deeper in that relationship with our customers >>to be Green Lake is, I mean it's H. P. E. As a service, it's your platform. And so I wonder if you can think about how you're thinking about uh, share with us, How you think about platform innovation? Um, you've got the pricing model, you know, flex up, flex down. Is there other technology we should know about and other things that are going to move you forward in this battle for the next great hybrid cloud and edge platform? >>Yeah, it's a great push because if you think about it, we are Green Lake is the edge to cloud platform And in essence because we have such a strong edge capability with the arab acquisition we made a few years back. That's really significant momentum with the Silver Peak acquisition to give us SD when you've got that edge connectivity all the way up to our high performance computing. And so you'll see us deliver high performance computing as a service. We're announcing that here at discover um you'll see us announced, you know, machine learning ops I mentioned ASAP, but also a virtual desktops. I think the pandemic has brought a lot more work from home type scenarios and customers really want to have that secure desktop. And so, working with partners like Citrix and Nutanix and and VM ware and Crew were able to provide that again, unique scenario for our customers. And so, um, yeah, the innovation is going to keep coming. You know, I mentioned bare metal as a service because many people are starting to really leverage the metal that's out there. You're seeing us also engaged with folks like intel on our silicon on demand. So this is a really exciting technology because what it allows us to do is turn on cores when we need them. So hey, I need additional capacity. I need some power. Let's turn on some cores. But then I turn off those cores when I'm not using them. You go to a software core based software pricing model, like an oracle or a sequel server. I'm saving dramatic cost now because I don't have to pay for all the cores that are on the system. I'm only paying the licenses for the ones that I use. And so that should bring dramatic cost savings to our customers as well. So we're looking from the silicon all the way up. Uh you know, you hear us talk about project Aurora, which is our security capability. We're looking at the silicon level, but we're also looking at the the container and bare metal and then obviously the workloads in the industry solution. So we're sprinting forward. We're listening to our customers were taking their feedback. We're seeing what they're prioritizing and because we have that tight relationship with them as we help move them to the direction they want to go, it's giving us a ton of fantastic inside information for what really matters. >>Right, Thank you for that. So, I want to ask you about data. A lot of organizations are kind of rethinking their ideal data architecture, their organization. They're they're they're seeing the amount of data that is potentially going to be created at the edge, thinking about ai inference and influencing at the edge and maybe reimagining their data organization in this age of insight. I wonder how Green Lake fits into that. How are you thinking about the new era of data and specifically Green Lakes role? >>Yeah, you mentioned the age of insights and and it really is right. So we've moved sort of as the next phase of digital transformation is basically saying, hey look, I've got all this data. I've got to first get my arms around my data estate because in essence it's in all these different pockets around. And so Green Lake gives you that ability to really get that data estate established. Then I want to take and get the answers in the analytics out of it. And then I want to monetize that data either out to my customer set or out to my industry or out to other scenarios as well. And so as we start to deliver our develops capability, our ai and analytics capabilities through HPC. And it's an open platform. So it allows data scientists to easy boot up easily boot up a cluster with which to do their models and their training and their algorithms. But we can also then use and Estancia at that into the business decisions that our customers are trying to make again without the significant cost that they're seeing on that on the public cloud side and in a very secure way because they have the data exactly where they need it. You'll see us continue to do sort of disaster recovery and data protection and those types of scenarios both with our partners and from H P E. So it's exciting to just understand that now you're going to have the tools and resources so you can actually focus on those business outcomes versus how do I protect the data? Where do I start, how do I get my model set up, etcetera. All that becomes automated and self service. You mentioned earlier >>When you talk to customers Keith one of the big sort of challenges that you're addressing. What's the typical, there was no typical but the but the real nuts that they're trying to crack is it financial? We want to move from Capex to opec's is that hey we want this cloud model but we can't do it in the public cloud for a variety of reasons, edicts, organization leaders or we want to modernize our our state. What are the real sort of sticking points that you're addressing with Green Lake? >>Yeah, I think it's threefold and you sort of touched on those. So one is, it really does start with modernization. Hey, you know, we've got to take costs out of the equation. We've got to reduce our carbon footprint. We've got to automate these things because we have limited resources and how do we maximize the ones that we have? And so I mentioned earlier, getting out of the data center, modernizing our apps, really monetizing our data. So I think that's number one. Number two is what you said as well, which is, hey look, I don't need to have all these capital assets. I don't want to be in charge of managing all all these assets. I just want the capability and so being able to sell them that service that says, hey, we can, we can do X number of desktops for your V. D. I. We can run your S. A. P. Environment or we can make sure that you have the, the analytics structure set up to be able to run your models that becomes super compelling and it frees up a lot of resources in cash on that front as well. And then I think the third thing is what you said, which is the world is hybrid. And so I need to find out what's going to run best in my on prem environment and what's going to run best up in the cloud. And I want to be able to optimize that so that I'm not wasting costs in one place or the other, and I want to be able to govern and govern that holistically. So I have the ability to see what's happening end to end across that so I can manage my business most effectively. So I think those are the three big things that people are really excited about with Green Lake as they enable those things. Um and you know, the reality is that it also means that they have a new partner to help them really think through how can they move forward? So it's not them by themselves. Uh It's really in a one plus one equals three type scenario and then you bring the ecosystem in and now you've got, you know, things working really well. So, >>so big enterprise tech, it's like, it's like the NFL is a sort of a copycat league. And so what, you know what I'm saying? But you guys all got >>big, yeah, >>you've got great resources, hey, this West Coast office exactly is gonna work. We're gonna get a short passing game going. And so that happened. So I feel like, okay, you've raised the bar now on as a service and that's gonna become table stakes. Um you know, it's got a lot of work to get there. I know, and it's a it's a journey, but but when you think about the future uh for H. P. E. Uh what's exciting you the most? >>I think what's exciting me the most is this the reaction that we're seeing with customers because in essence it gets them out of the bits and bytes and speeds and feeds and you know, um >>you >>know, component goo and really gets into business value, business outcomes sls and, and that's what they're looking for because what they're trying to do is break out of, you know that day to day and be able to really focus on the future and where they're going. So I think that's one, I think the second big thing is as you see all these things come together, um you know, we're able to basically provide customers with, I would say a mindset that's like, hey, I can do this holistically, but I can always pick and choose the best that I want and if I ramp up, I have capacity. If I ramp down, I don't have to pay for first scenarios. And so I'm getting the best of both worlds across that piece of it. And then third is I mentioned it earlier. But this whole relationship thing is so important because you know, this isn't about technology anymore. As much as it it is about what's the value that you're going to get out of that technology. And how does that help us move the company and the world forward? Like I love the fact that H. P. E. Was so involved in this pandemic. >>You know, >>with our systems were able to actually uh to run a set of of algorithms and analysis on how to, you know, find a vaccine on how to how to address the things that are going forward. You've seen us now up in space and as we, we broaden our frontier and so as a company you're seeing technology turned into things that are truly helping the world go forward. I think that's exciting as well. >>Yeah. Space. It's like the ultimate edge. >>I >>like you said to me if I take it, it's not not about ports and Mick, nips and gigabytes anymore. It's about the outcome. You mentioned before the S L. A. Um, you know, the thing about, you know, think about virtual, it's great. We have to get in the plane. Its downside. We all know we can't hang out, you know, afterwards, you know, have a drink or you know, chit chat about what's going on in the world, but we can't reach a lot more people. But the other downside of virtual is, you know, you don't have the hallway track. It's not like, hey, did you check out that, that demo on IOT? It's really cool. Where is that? So give us the hallway track. How can folks learn more about discover where would you direct folks? >>You bet. You know, I'm doing a full spot. Obviously let me start with at the top right Antonio Neri our ceo he's going to lay out the whole strategy and then I'll have a spotlight. It's about a 30 minute deep dive on all of these things that that you and I just talked about and then we've got a bunch of breakout sessions were doing some with our partners like Nutanix and others, um, Microsoft as well as we talk about, we didn't really touch on that, but you know, we have a strong partnership with the hyper scholars with Microsoft and with others because in essence customers are expecting an integrated solution that's hybrid. And so, you know, we're showcasing all of that with the with the discover breakouts as well and they're available on demand. We have a huge opportunity with respect to that, so really excited and you know, frankly we're here to help, like I hope people understand this is our opportunity to help you be successful and so please know that our ears are wide open to hear what the challenges are and we're ready to help customers as they needed. >>I'm glad you mentioned the partnership with Microsoft and other hyper skills. I feel like keith, the the Hyper scale is giving us a gift. They've spent last year they spent over $100 billion on Capex build out. That is like, it's like the internet. Thank you. >>Now we're gonna build on >>top of it, we're gonna build an abstraction layer that hides all that underlying complexity. We're gonna connect things and and that's really your job. That's really kind of what you're bringing to the table I think with Green Lake and some of these innovations. So >>I really >>appreciate it. Go ahead please. >>I appreciate the time as well. It's always a pleasure and it's always exciting to get a chance to share with you and and as always, any time you don't want me back, I'm happy to happy to join. Alright, >>would love to do that. So appreciate that. And thank you for spending some time with us. Stay tuned for more great coverage from HPD discovered 21 everything is available on demand as well as the that is the other good thing about virtually go back and watch all this content. This is Dave Volonte for the cube the leader in enterprise tech coverage. Be right back

>>Yeah, >>approximately two years after HP split into two separate companies, antonioni Ranieri was named president and Ceo of Hewlett Packard Enterprise. Under his tenure, the company has streamlined its operations, sharpened his priorities, simplified the product portfolio and strategically aligned its human capital with key growth initiatives. He's made a number of smaller but high leverage acquisitions and return the company to growth while affecting a massive company wide pivot to an as a service model. Welcome back to HPD discovered 2021. This is Dave Volonte for the cube and it's my pleasure to welcome back Antonio Neary to the program. Antonio it's been a while. Great to see you again. >>Hi, Dave. Thanks for having me. >>That's really our pleasure. It was just gonna start off with the big picture. Let's talk about trends. You're a trend spotter. What do you see today? Everybody talks about digital transformation. We had to force marks to digital last year. Now it's really come into focus. But what are the big trends that you're seeing that are affecting your customers transformations? >>Well, Dave, I mean obviously we have been talking about digital transformation for some time uh in our view is no longer a priority is a strategic imperative. And through the last 15 months or so since we have been going through the pandemic, we have seen that accelerated to a level we haven't never seen before. And so what's going on is that we live in a digital economy and through the pandemic now we are more connected than ever. We are much more distributed than ever before and an enormous amount of data is being created and that data has tremendous value. And so what we see in our customer's name, more connectivity, they need a platform from the edge to the cloud to manage all the data and most important they need to move faster and extracting that inside that value from the data and this is where HP is uniquely positioned to deliver against those experiences and way we haven't imagined before. >>Yeah, we're gonna dig into that now, of course you and I have been talking about data and how much data for decades, but I feel like we're gonna look back at 2030 and say, wow, we never, we're not gonna do anything like that. So we're really living in a data centric era as the curves are going exponential, What do you see? How do you see customers handling this? How are they thinking about the opportunities? >>Well, I think, you know, customer realized now that they need to move faster, they need to absolutely be uh much more agile and everything. They do, they need to deploy a cloud experience for all the work clothes and data that they manage and they need to deliver business outcomes to stay ahead of the competition. And so we believe technology now plays even a bigger role and every industry is a technology industry in many ways, every company, right, is a technology company, whether your health care, your manufacturer, your transportation company, you are an education, everybody needs more. It no less. It but at the same time they want the way they want to consumer dave is very different than ever before, right? They want an elastic consumption model and they want to be able to scale up and down based on the needs of their enterprise. But if you recall three years ago, I knew and I had this conversation, I predicted that enterprise of the future will be edge century, cloud enable and data driven. The edge is the next frontier, we said in 2018 and think about it, you know, people now are working remotely and that age now is much more distribute than we imagined before. Cloud is no longer a destination, it is an experience for all your apps and data, but now we are entering what we call the edge of insight, which is all about that data driven approach and this is where all three have to come together in ways that customer did envision before and that's why they need help. >>So I see that, I see the definition of cloud changing, it's no longer a set of remote services, you know, somewhere up there in the cloud, it's expanding on prem cross clouds, you mentioned the edge and so that brings complexity. Every every company is a technology company but they may not be great at technology. So it seems that there are some challenges around there, partly my senses, some of some of what you're trying to do is simplify that for your customers. But what are the challenges that your customers are asking you to solve? >>Well, the first they want a consistent and seamless experience, whatever that application and data lives, so, you know, for them, you know, they want to move away from running it to innovate in our 90 and then obviously they need to move much faster. As I said earlier about this data driven approaches. So they need help because obviously they need to digitize every every aspect of the company, but at the same time they need to do it in a much more cost effective way. So they're asking for subject matter expertise on process engineering. They're asking for the fighting the right mix of hybrid experiences from the edge to cloud and they need to move much faster at scale in deploying technologies like Ai deep learning and machine learning and Hewlett Packard Enterprise uh is extremely well positioned because we have been building an age to club platform where you provide connectivity where you bring computing and storage uh in a softer, define scalable way that you can consume as a service. And so we have great capabilities without HP Point next technology services and advice and run inside. But we have a portfolio with HP Green Lake, our cloud services, the cloud that comes to you that are addressing the most critical data driven warlords. >>Probably about 24 months ago you announced that HP was was going to basically go all in on as a service and get there by by 2022 for all your solutions. I gotta get, I gotta say you've done a good job communicating the Wall Street, I think, I think culturally you've really done a good job of emphasizing that to your, to the workforce. Uh, but but how should we measure the progress that you've made toward that goal? How our customers responding? I I know how the markets responding, you know, three or four year big competitors have now announced. But how should we measure, you know, how you're tracking to that goal? >>Well, I think, you know, the fact that our competitors are entering the other service market is a validation that our vision was right. And that's that's that's good because in the end, you know, it tells us we are on the right track. However, we have to move much faster than than ever before. And that's why we constantly looking for ways to go further and faster. You're right. The court of this is a cultural transformation. Engineering wise, once you state, once you state the North Star, we need to learn our internal processes to think Cloud first and data first versus infrastructure. And we have made great progress. The way we measure ourselves. Dave is very simple is by giving a consistent and transparent report on our pivot in that financial aspect of it, which is what we call the annualized revenue run rate, which we have been disclosed enough for more than a year and a half. And this past quarter grew 30% year over year. So we are on track to deliver a 30-40% Kegel that we committed two years ago And this business going to triple more than uh more than one year from now. So it's gonna be three times as bigger as we enter 2022 and 2023. But in the end, it's all about the experience you deliver and that's why architecturally uh while we made great progress. I know there is way more work to be done, but I'm really excited because what we just announced here this week is just simply remarkable. And you will see more as we become more a cloud operating driven company in the in the next months and years to come. >>I want to ask you kind of a personal question. I mean, COVID-19 is you know, sharpened our sensitivity and empathy to to a lot of different things. Uh and I think uh ceos in your position of a large tech company or any large company, they really can't just give lip service to things like E. S. G. Or or ethical uh digital transformation, which is something that you've talked about in other words, making sure that it's inclusive. Everybody is able to participate in this economy and not get left behind. What does this mean to you personally? >>Well, they remember I'm in a privileged position, right? Leading a company like Hewlett Packard Enterprise that has Hewlett and Packard on the brand is an honor, but it's also a big responsibility. Let's remember what this company stands for and what our purpose is, which is to advance the way people live and work, and in that we have to be able to create a more equitable society and use this technology to solve some of the biggest societal challenge you have been facing The last 18 months has been really hard on a number of dimensions, not just for the business but for their communities. Uh, we saw disruption, we saw hardships on the financial side, we saw acts of violence and hatred. Those are completely unacceptable. But if we work together, we can use these technologies to bring the community together and to make it equitable. And that's one is one of my passion because as we move into this digital economy, I keep saying that connecting people is the first step and if you are not connected, you're not going to participate. Therefore we cannot afford to create a digital economy for only few. And this is why connectivity has to become an essential service, not different than water and electricity. And that's why I have passion and invest my own personal time working with entities like World Economic Forum, educating our government, right, Which is very important because both the public sector and the private sector have to come together. And then from the technology standpoint, we have to architect these things that are commercially accessible and viable to everyone. And so it's uh it's I will say that it's not just my mission. Uh this is top of mind for many of my colleagues ceos that talked all the time and you can see of movement, but at the same time it's good for business because shareholders now want to invest in companies that take care about this, how we make, not just a word more inclusive and equitable, but also how we make a more sustainable and we with our technologies, we can make the world way more sustainable with circular economy, power, efficiency and so forth. So a lot of work to be done dave but I'm encouraged by the progress but we need to do way way more. >>Thank you for that Antonio. I want to ask you about the future and I want to ask you a couple of different angles. So I want to start with the edge. So it seems to me that you're you're building this vision of what I call a layer that abstracts the underlying complexity of the whether it's the public cloud across clouds on prem and and and the edge and it's your job to simplify that. So I as the customer can focus on more strategic initiatives and that's clearly the vision that you guys are setting forth on. My question is is how far do you go on the edge? In other words, it seems to me that Aruba for example, for example, awesome acquisition could go really, really deep into the far edge, maybe other parts of your portfolio, you're kind of more looking at horizontal. How should we think about HP. Es, positioning and participation in that edge opportunity? >>Well, we believe we are becoming one of the merger leaders at the intelligent edge. Right? These edges becoming way more intelligent. We live in a hyper connected world and that will continue to grow at an exponential pace. Right? So today we we may have billions of people and devices pursue. We're entering trillions of things that will be connected to the network. Uh, so you need a platform to be able to do with the scale. So there is a horizontal view of that to create these vertical experiences which are industry driven. Right? So one thing is to deliver a vertical experience in healthcare versus manufacturer transportation. And so we take a really far dave I mean, to the point that we just, you know, put into space 256 miles above the Earth, a supercomputer that tells you we take a really far, but in the end, it's about acting where the data is created and bringing that knowledge and that inside to the people who can make a difference real time as much as possible. And that's why I start by connecting things by bringing a cloud experience to that data, whatever it lives because it's cheaper and it's way more economical and obviously there's aspects of latest in security and compliance. They have to deal with it and then ultimately accelerate that inside into some sort of outcome. And we have many, many use cases were driving today and Aruba is the platform by the way, which we have been using now to extend from the edge all the way to the core into the cloud business. And that's why you HP has unique set of assets to deliver against that opportunity. >>Yes, I want to talk about some of the weapons you have in your arsenal. You know, some people talk about, hey, well we have to win the architectural battle for hybrid cloud. I've heard that statement made, certainly HP is in that battle. It's not a zero sum game, but you're a player there. And so when I, when I look at as a service, great, you're making progress there. But I feel like there's more, there's, there's architecture there, you're making acquisitions, you're building out as moral, which is kind of an interesting data platform. Uh, and so I want to ask you how you see the architecture emerging and where H. P. S sort of value add, I. P. Is your big player and compute you've got actually, you've got chops and memory disaggregate asian, you've done custom silicon over the years. How how should we think about your contribution to the next decade of innovation? >>Well, I think it's gonna come different layers of what we call the stock, right? Obviously, uh, we have been known for an infrastructure company, but the reality is what customers are looking for. Our integrated solutions that are optimized for the given world or application. So they don't have to spend time bringing things together. Right? And and spend weeks sometimes months when they can do it in just in a matter of minutes a day so they can move forward innovative on I. T. And so we were really focused on that connectivity as the first step. And Aruba give us an enormous rich uh through the cloud provisioning of a port or a wifi or a one. As you know, as we move to more cloud native applications. Much of the traffic through the connectivity will go into the internet, not through the traditional fixed networks. And that's what we did acquisitions like Silver Peak because now we can connect all your ages and all your clouds in an autonomous softer. The final way as we go to the other spectrum. Right? We talk about one load optimization and uh for us H. P. S my role is the recipe by which we bring the infrastructure and the software in through that integrated solution that can run autonomously that eventually can consume as a service. And that's why we made the introduction here of HP Green like Lighthouse, which is actually a fully optimised stack. They with the push of a bottom from HP Green Lake cloud platform, we can deploy whatever that that is required and then be able to Federated so we can also address other aspects like disaster recovery and be able to share all the knowledge real time. Swarm learning is another thing that people don't understand. I mean if you think about it. So I'm learning is a distributed Ai learning ecosystem and think about what we did with the D. C. Any in order to find cures for Alzheimer's or dementia. But so I'm learning is going to be the next platform sitting on this age to cloud architecture. So that instead of people worrying about sharing data, what we're doing is actually sharing insights And be able to learn through these millions of data points that they can connect with each other in a secure way. Security is another example, right? So today on an average takes 28 days to find a bridge in your enterprise with project Aurora, which we're going to make available at the end of the year by the end of the year. We actually can address zero day attacks within seconds. And then we're work in other areas like disaster recovery when you get attacked. Think about the ransom ramp somewhere that we have seen in the last few weeks, right? You know, God forbid you have to pay for it. But at the same time, recovery takes days and weeks. Sometimes we are working on technology to do it within 23 seconds. So this is where HP can place across all spectrums of the stack And at the same time of course people expect us to innovate in infrastructure layer. That's why we also partner with companies like Intel were with the push of a bottom. If you need more capacity of the court, you don't have to order anything. She's pushed the bottle, we make more calls available so that that warlord can perform and when you don't need it, shut it off so you don't have to pay for it. And last finalist, you know, I will say for us is all about the consumption availability of our solutions And that's what I said, you know, in 2019 we will make available everything as a service by 2022. You know, we have to say as you know, there is no need to build the church for Easter Sunday when you can rent it for that day. The point here is to grow elastically. And the fact that you don't need to move the data is already a cost savings because cost of aggression data back and forth is enormous and customers also don't want to be locked in. So we have an open approach and we have a true age to cloud architecture and we are focusing on what is most valuable aspect for the customer, which is ultimately the data. >>Thank you for that. One of the other things I wanted to ask you about, again, another weapon in your arsenal is you mentioned supercomputing before. Up in space, we're on the cusp of exa scale and that's the importance of high performance computing. You know, it used to be viewed as just a niche. I've had some great conversations with DR go about this, but that really is the big data platform, if you will. Uh can I wonder if you could talk a little bit about how that fits into the future. Your expertise in HPC, you're obviously a leader in that space. What's the fit with this new vision you're laying out? >>Well, HPC, high performance computing in memory computer are the backbone to be able to manage large data sets at massive scale. Um, and, you know, deployed technologies like deep learning or artificial intelligence for this massive amount of data. If we talked about the explosion of data all around us and uh, you know, and the algorithms and the parameters to be able to extract inside from the day is getting way more complex. And so the ability to co locate data and computed a massive scale is becoming a necessity, whether it's in academia, whether it's in the government obviously to protect your, your most valuable assets or whether it is in the traditional enterprise. But that's why with the acquisition of cray as G. I. And our organic business, we are absolutely the undisputed leader to provide the level of capabilities. And that's why we are going to build five of the top six exa scale systems, which is basically be able to process the billion billion, meaning billion square transactions per second. Can you imagine what you can do with that? Right. What type of problems you can go solve climate problems? Right. Um you know, obviously be able to put someone back into the moon and eventually in mars, you know, the first step to put that supercomputer as an edge computer into the international space station. It's about being able to process data from the images that take from the ice caps of the of the earth to understand climate changes. But eventually, if you want to put somebody in in into the Marks planet, you have to be able to communicate with those astronauts as they go and you know, you can't afford the latency. Right? So this is what the type of problems we are really focused on. But HPC is something that we are absolutely super committed and it's something that honestly, we have the full stack from silicon to software to the system performance that nobody else has in the industry. >>Well, I think it's a real tailwind for you because the industry is moving in that direction and everybody talks about the data and workloads are shifting. We used to be uh I got O. L. T. P. And I got reporting. Now you look at the workloads, there's so much diversity so I'll give you the last word. What what really is the most exciting to you about the future of HPV? >>Well, I'm excited about the innovation will bring it to the market and honestly as the Ceo I care about the culture of the company. For me, the last almost 3.5 years have been truly remarkable. As you said at the beginning, we are transforming every aspect of this company. When I became Ceo I had three priorities for myself. One is our customers and partners. That's why we do these events right to communicate, communicate, communicate. They are our North Star, that's why we exist. Second is our innovation right? We compete and win with the best innovation, solving the most complex problems in a sustainable and equitable way. And third is the culture of the company, which are the core is how we do things in our Team members and employees. You know, I represent my colleagues here, the 60,000 strong team members that had incredible passion for our customers and to make a contribution every single day. And so for me, I'm very optimistic about what we see the recovery of the economy and the possibilities of technology. Uh, but ultimately, you know, we have to work together hand in hand and I believe this company now is absolutely on the right track to not just be relevant, but really to make a difference. And remember That in the end we we have to be a force for good. And let's not forget that while we do all of this, we have some farm with technology. We have to also help some, uh, to address some of the challenges we have seen in the last 18 months and H. P. E. is a whole different company uh, that you knew 3.5 years ago. >>And as you said, knowledge is the right thing to do. It's good. It's good for business Antonio. Neary, thanks so much for coming back to the cube is always a pleasure to see you. >>Thanks for having me. Dave and >>thank you for watching this version of HP discover 2021 on the cube. This is David want to keep it right there for more great coverage. Mm

>>Welcome back to HPD discovered 2021. The virtual edition. My name is Dave Volonte and you're watching the cubes continuous coverage of H. P. S. Big customer event. Patrick Moorehead is here of moor insights and strategy is the number one analyst in the research analyst. Business. Patrick. Always a pleasure. Great to see you, >>David. Great to see you too. And I know you're you're up there fighting for that number one spot to. It's great to see you and it's great to see you in the meetings that were in. But it's even more fun to be here on the cube. I love to be on the cube and every once in a while you'll even call me a friend of the cube, >>unquestionably my friend and so and I can't wait second half. I mean you're traveling right now. We're headed to Barcelona to mobile World Congress later on this month. So so we're gonna we're gonna see each other face to face this year. 100%. So looking forward to that. So, you know, let's get into it. Um you know, before we get into H. P. E. Let's talk a little bit about what you're seeing in the market. We've got, you know, we we we finally, it feels like the on prem guys are finally getting their cloud act together. Um, it's maybe taken a while, but we're seeing as a service models emerge. I think it's resonating with customers. The clearly not everything is moving to the cloud. There's this hybrid model emerging. Multi cloud is real despite what, you know, >>some some >>cloud players want to say. And then there's this edges like jump ball, what are you seeing in the marketplace? >>Yeah. Davis, as exciting as ever in. Just to put in perspective, I mean, the public cloud has been around for about 10 years and still only 20%. Around 20% of the data in 20% of the applications are there now, albeit very important ones. And I'm certainly not a public cloud denier, I never have been, but there are some missing pieces that need to come together. And you know, even five years ago we were debating dave the hybrid cloud and I feel like when Amazon brought out outposts, the conversation was over right now, what you have is cloud native folks building out hybrid and on prem capabilities, you have the classic on prem folks building out hybrid and as a service capabilities. And I really think it boils down 22 things. I mean it's wanting to have more flexibility and you know, I hate to use it because it sounds like a marketing word, but agility, the ability to spin up things and spin down things in a very quick way. And uh, you know what they've learned. The veterans also know, hey, let's do this in a way that doesn't lock us in too much into a certain vendor. And I've been around for a long time. David and I'm a realist too. Well, you have to lock yourself into something. It just depends on what do you want to lock yourself into, but super exciting. And what H. P. E. When they threw the acts in the sea with Green Lake, I think it was four years ago, I think really started to stir the pot. >>You know, you mentioned the term cloud denial, but you know, and I feel like the narrative from, I like to determine is I think you should use the term veteran. You know, it's very, they're ours is the only industry patrick where legacy is a pejorative, but but but so but the point I want to make is I feel like there's been a lot of sort of fear from the veteran players, but I look at it differently. I wonder what you're taking. I think, I think, I think I calculated that the Capex spending by the big four public clouds including Alibaba last year was $100 billion. That's like a gift to the world. Here, we're going to spend $100 billion like the internet here you go build. And and so I, and I feel like companies like HP are finally saying, yeah, we're gonna build, we're gonna build a layer and we're gonna hide the complexity and we're gonna add value on top. What do you think about that? >>Yeah. So I think it's now, I wish, I wish the on prem folks like HP, you would have done it 10 years ago, but I don't think anybody expected the cloud to be as big as it's become over the last 10 years. I think we saw companies like salesforce with sas taking off, but I think it is the right direction because there are advantages to having workloads on prem and if you add an as a service capability on top of the top of that, and let's say even do a Coehlo or a managed service, it's pretty close to being similar to the public cloud with the exception, that you can't necessarily swipe a credit card for a bespoke workload if you're a developer and it is a little harder to scale out. But that is the next step in the equation day, which is having, having these folks make capital expenditures, make them in a polo facility and then put a layer to swipe a credit card and you literally have the public cloud. >>Yeah. So that's, that's a great point and that's where it's headed, isn't it? Um, so let's, let's talk about the horses on the track. Hp. As you mentioned, I didn't realize it was four years ago. I thought it was, wow, That's amazing. So everybody's followed suit. You see, Dallas announced, Cisco has announced, uh, Lenovo was announced, I think IBM as well. So we, so everybody started following suit there. The reality is, is it's taken some time to get this stuff standardized. What are you seeing from, from HP? They've made some additional announcements, discover what's your take on all this. >>Yeah. So HPD was definitely the rabbit here and they were first in the market. It was good to see, first off some of their, Um, announcements on, on how it's going. And they talked about 4, $28 billion 1200 customers over 900 partners and 95% retention. And I think that's important anybody who's in the lead and remember what Aws used to do with the slide with the amount of customers would just get bigger and bigger and bigger and that's a good way to show momentum. I like the retention part two which is 95%. And I think that that says a lot uh probably the more important announcements that they made is they talked about the G. A. Of some of their solutions on Green Lake and whether it was S. A. P. Hana Ml apps HPC with Francis V. I was Citrus in video but they also brought more of what I would call a vertical layer and I'm sure you've seen the vertical ization of all of these cloud and as a service workloads. But what they're doing with Epic with EMR and looseness, with financial payments and Splunk and intel with data and risk analysis and finally, a full stack for telco five G. One of the biggest secrets and I covered this about five years ago is HPV actually has a full stack that western european carriers use and they're now extending that to five G. And um, so more horizontal uh and and more vertical. That was the one of the big swipes uh that I saw that there was a second though, but maybe we can talk about these. >>Yeah. Okay, Okay. So, so the other piece of that of course is standardization right there there because there was a, there was, there was a lot of customization leading up to this and everybody sort of, everybody always had some kind of financial game they can play and say, hey, there's an adversary as a service model, but this is definitely more of a standardized scalable move that H P E. Is making with what they call Lighthouse, Right? >>Yeah, that's exactly right. And I've talked to some Green Lake customers and they obviously gave it kudos or they wouldn't have HP wouldn't have served them up and they wouldn't have been buying it. But they did say, um, it took, it took a while, took some paperwork to get it going. It's not 100% of push button, but that's partially because hp allows you to customize the hardware. You want a one off network adapter. Hp says yes, right. You want to integrate a different type of storage? They said yes. But with Green Lake Lighthouse, it's more of a, what you see is what you get, which by the way is very much like the public cloud or you go to a public cloud product sheet or order sheet. You're picking from a list and you really don't know everything that's underneath the covers, aside from, let's say the speed of the network, the type of the storage and the amount of the storage you get. You do get to pick between, let's say, an intel processor, Graviton two or an M. D processor. You get to pick your own GPU. But that's pretty much it. And HP Lighthouse, sorry, Green Lake Lighthouse uh, is bringing, I think a simplification to Green Lake that it needs to truly scale beyond, let's say, the white house customers at HP. Yeah, >>Well done. So, you know, and I hear your point about 10 years in, you know, plus and to me this is like a mandate. I mean, this is okay. Good, good job guys about time. But if I had a, you know, sort of look at the big players, like, can we have an oligopoly here in this, in this business? It's HP, Cisco, you got Dell Lenovo, you've got, you know, IBM, they're all doing this and they all have a different little difference, you know, waste of skin of catch. And your point about simplicity, it seems like HP HP is all in Antonio's like, okay, here's what we're going to announce that, you know, while ago, so, and they seem to have done a good job with Wall Street and they get a simple model, you know, Dell's obviously bigger portfolio, much more complicated. IBM is even more complicated than that. I don't know so much about Lenovo and in Cisco of course, has acquired a ton of SAAS companies and sort of they've got a lot of bespoke products that they're trying to put together, so they've got, but they do have SAS models. So each of them is coming at it from a different perspective. How do you think? And so and the other point we got lighthouse, which is sort of Phase one, get product market fit. Phase two now is scale codify standardized and then phase three is the moat build your unique advantage that protects your business. What do you see as HP? Es sort of unique value proposition and moat that they can build longer term. >>That's a great, great question. And let me rattle off kind of what I'm seeing that some of these these players here. So Cisco, ironically, has sells the most software of any of those players that you mentioned, uh with the exception of IBM. Um, and yeah, C >>ICSDB two. Yeah, >>yeah, they're the they're the number two security player, uh, Microsoft, number one. So and I think the evaluation on the street uh indicate that shows that I feel like uh Deltek is a is a very broad play because not only do they have servers, storage, networking and security, but they also have Pcs and devices, so it's a it's a scale and end play with a focus on VM ware solutions, not exclusively, of course. Uh And um then you've got Lenovo who is just getting into the as a service game and are gosh, they're doing great in hyper scale, they've got scale there vertically integrated. I don't know if if too many people talk about that, but Lenovo does a lot of their own manufacturing and they actually manufacture Netapp storage solutions as well. So yeah, each of these folks brings a different game to the table, I think with h P E, what your bring to the table is nimble. When HP and HP split, the number one thing that I said was that uh huh H P E is going to have to be so much faster than it offsets the scale that Dell technology has and the HBs credit, although there, I don't think we're getting credit for this in the stock market yet. Um, and I know you and I are both industry folks, not financial folks, but I think their biggest thing is speed and the ability to move faster and that is what I've seen as it relates to the moat, which is a unique uh, competitive advantage. Quite frankly, I'm still looking for that day in, in, in what that is and I think in this industry it's nearly impossible and I would posit that that any, even the cloud folks, if you say, is there something that AWS can do that Azure can't, if it put it put its mind to it or G C P. I don't think so. I think it's more of a kind of land and expand and I think for H P E, when it comes to high performance computing and I'm not just talking about government installations, I'm talking about product development, drug development, I think that is a landing place where H P E already does pretty well can come in and expand its footprint, >>you know, that's really interesting um, observations. So, and I would agree with you, it's kind of like, this is a copycat industry, it's like the west coast offense, like the NFL >>and >>so, so the moat comes from, you know, brand execution and your other point about when HP and HP split, that was a game changer, because all of a sudden you saw companies like them, you always had a long term relationship with H P E but or HP, but then they came out of the woodworks and started to explode. And so it really opened up opportunities. So it really >>is an execution, >>isn't it? But go ahead, please >>Dave if I had to pick something that I think HP HPV needs to always be ahead and as a service and listen, you know, I both know announcements don't mean delivery, but there is correlation between if you start four years ahead of somebody that other company is going to have to put just, I mean they're gonna have to turn that ship and many of its competitors really big ships to be able to get there. So I think what Antonio needs to do is run like hell, right, Because it, it, I think it is in the lead and as a service holistically doesn't mean they're going to be there forever, but they have to stay ahead. They have to add more horizontal solutions. They have to add more vertical solutions. And I believe that at some point it does need to invest in some Capex at somebody like ANna Quinn x play credit card swiper on top of that. And Dave, you have the public, you have the public cloud, you don't have all the availability zones, but you have a public cloud. >>Yeah, that's going to happen. I think you're right on. So we see this notion of cloud expanding. It's no longer just remote set of services. Somewhere out in the cloud. It's as you said, outpost was the sort of signal. Okay, We're coming on prem clearly the on prem, uh, guys are connecting to the cloud. Multi cloud exists, we know this and then there's the edge but but but that brings me to that sort of vision and everybody's laying out of this this this seamless integration hiding the complexity log into my cloud and then life will be good. But the edge is different. Right? It's not just, you know, retail store or a race track. I mean there's the far edge, there's the Tesla car, there's gonna be compute everywhere. And that sort of ties into the data. The data flows, you know the real time influencing at the edge ai new semiconductor models. You you came out of the semiconductor industry, you know it inside and out arm is exploding is dominating in the edge with with with apple and amazon Alexa and things like that. That's really where the action is. So this is a really interesting cocktail and soup that we have going on. How do you >>say? Well, you know, Dave if the data most data, I think one thing most everybody agrees on is that most of the data will be created on the edge. Whether that's a moving edge a car, a smartphone or what I call an edge data center without tile flooring. Like that server that's bolted to the wall of Mcdonald's. When you drive through, you can see it versus the walmart. Every walmart has a raised tile floor. It's the edge to economically and performance wise, it doesn't make any sense to send all that data to the mother ships. Okay. And whether that's unproven data center or the giant public cloud, more efficient way is to do the compute at the closest way possible. But what it does, it does bring up challenges. The first challenge is security. If I wanted to, I could walk in and I could take that server off the Mcdonald's or the Shell gas station wall. So I can't do that in a big data center. Okay, so security, Physical security is a challenge. The second is you don't have the people to go in there and fix stuff that are qualified. If you have a networking problem that goes wrong and Mcdonald's, there's nobody there that can help uh, they can they can help you fix that. So this notion of autonomy and management and not keeping hyper critical data sitting out there and it becomes it becomes a security issue becomes a management issue. Let me talk about the benefits though. The benefits are lower latency. You want you want answers more quickly when that car is driving down the road and it has a five G V two X communication cameras can't see around corners, but that car communicating ahead, that ran into the stop sign, can I through vi to X. Talk to the car behind it and say, hey, something is going on there, you can't go to, you can't go to the big data center in the sky to make that happen, that is to be in near real time and that computer has to happen on the edge. So I think this is a tremendous opportunity and ironically the classic on prem guys, they own this, they own this space aside from smartphones of course, but if you look at compute on a light pole, companies like Intel have built Complete architectures to do that, putting compute into 5G base stations. Heck, I just, there was an announcement this week of google cloud in its gaming solution putting compute in a carrier edge to give lower latency to deliver a better experience. >>Yeah, so there, of course there is no one edge, it's highly fragmented, but I'm interested in your thoughts on kind of who's stack actually can play at the edge. And I've been sort of poking uh H P E about this. And the one thing that comes back consistently is Aruba, we we can take a room but not only to the, to the near edge, but to the far edge. And and that, do you see that as a competitive advantage? >>Oh gosh, yes. I mean, I would say the best acquisition That hp has made in 10 years has been aruba it's fantastic. And they also managed it in the right way. I mean, it was part of HB but it was it was managed a lot more loosely then, you know, a company that might get sucked into the board. And I think that paid off tremendously. They're giving Cisco on the edge a absolute run for their money, their first with new technologies. But it's about the solution. What I love about what a ruble looks at is it's looking at entertainment solutions inside of a stadium, um a information solution inside of an airport as opposed to just pushing the technology forward. And then when you integrate compute with with with Aruba, I think that's where the real magic happens. Most of the data on a permanent basis is actually video data. And a lot of it's for security uh for surveillance. And quite frankly, people taking videos off, they're off their smartphones and downloading video. I I just interviewed the chief network officer of T mobile and their number one bit of data is video, video uploaded, video download. But that's where the magic happens when you put that connectivity and the compute together and you can manage it in a, in an orderly and secure fashion >>while I have you, we have a ton of time here, but I I don't pick your brain about intel, the future of intel. I know you've been following it quite closely, you always have Intel's fighting a forefront war. You got there, battling A. M. D. There, battling your arm slash and video. They're they're taking on TSMC now and in foundry and, and I'll add china for the looming threat there. So what's your prognosis for for intel? >>Yeah, I liked bob the previous Ceo and I think he was doing a lot of of the right things, but I really think that customers and investors and even their ecosystem wanted somebody leading the company with a high degree of technical aptitude and Pat coming, I mean, Pat had a great job at VM or, I mean, he had a great run there and I think it is a very positive move. I've never seen the energy At Intel probably in the last 10 years that I've seen today. I actually got a chance to talk with pat. I visited pat uhh last month and and talk to him about pretty much everything and where he wanted to take the company the way you looked at technology, what was important, what's not important. But I think first off in the world of semiconductors, there are no quick fixes. Okay. Intel has a another two years Before we see what the results are. And I think 2023 for them is gonna be a huge year. But even with all this competition though, Dave they still have close to 85% market share in servers and revenue share for client computing around 90%. Okay. So and they've built out there networking business, they build out a storage business um with with obtain they have the leading Aid as provider with Mobileye. And and listen I was I was one of Intel's biggest, I was into one of Intel's biggest, I was Intel's biggest customer when I was a compact. I was their biggest competitor at AMG. So um I'm not obviously not overly pushing or there's just got to wait and see. They're doing the right things. They have the right strategy. They need to execute. One of the most important things That Intel did is extend their alliance with TSMC. So in 2023 we're going to see Intel compute units these tiles, they integrate into the larger chips called S. O. C S B. Manufactured by TSMC. Not exclusively, but we could see that. So literally we could have AMG three nanometer on TSMC CPU blocks, competing with intel chips with TSMC three nanometer CPU blocks and it's on with regard to video. I mean in video is one of these companies that just keeps going charging, charging hard and I'm actually meeting with Jensen wang this week and Arms Ceo Simon Segers to talk about this opportunity and that's a company that keeps on moving interestingly enough in video. If the arm deal does go through will be the largest chip license, see CPU licensee and have the largest CPU footprint on the planet. So here we have AMG who's CPU and Gpu and buying an F. P. G. A company called Xilinx, you have Intel, Cpus, Gpus machine learning accelerators and F. P. G. S. And then you've got arms slashing video bit with everything as well. We have three massive ecosystems. They're gonna be colliding here and I think it's gonna be great for competition. Date. Competition is great. You know, when there's not competition in CPUs and Gpus, we know what happens right. Uh, the beach just does not go on and we start to stagnate. And I did, I do feel like the industry on CPU started to stagnate when intel had no competition. So bring it on. This is gonna be great for for enterprises then customers to and then, oh, by the way, you have the custom Chip providers. WS has created no less than 15 custom semiconductors started with networking and nitro and building out an edge that surrounded the general computer. And then it moved to Inferential for inference trainee um, is about to come out for training Graviton and Gravitas to for general purpose CPU and then you've got apple. So innovation is huge and I love to always make fun of the software is eating the world. I always say yeah but has to run on something. And so I think the combination of semiconductors software and cloud is just really a magical combination. >>Real quick handicap the video arm acquisition. What what are the odds that that they will be successful? They say it's on track. You got a 2 to 13 to 1 10 to 1. >>I say 75%. Yes 25%. No China is always the has been the odd odd man out for the last three years. They scuttled the Qualcomm NXp deal. You just don't know what china is going to do. I think the EU with some conditions is going to let this fly. I think the U. S. Is absolutely going to let this fly. And even though the I. P. Will still stay over in the UK, I think the U. S. Wants to see wants to see this happen, Japan and Korea I think we'll allow this china is the odd man out. >>In a word, the future of h p. E is blank >>as a service >>patrick Moorehead. Always a pleasure. My friend. Great to see you. Thanks so much for coming back in the cube. >>Yeah, Thanks for having me on. I appreciate that. >>Everybody stay tuned for more great coverage from HP discover 21 this is day Volonte for the cube. The leader and enterprise tech coverage. We'll be right back.

>>Welcome back to HP discover 2021 the virtual version my name is Dave valentin. You're watching the cubes continuous coverage of the event, john Ramallah is here. He's the senior director of product management for HP. Green Lake Lighthouse. New offering from HP. We're gonna talk about that. We're gonna talk about cloud native. Hey john, welcome to the cube. Good to see you again. >>Awesome. Great to be with you again. >>All right. So what is Green Lake Lighthouse? >>Yeah, it's very excited. Another new offering and innovation from H P E to support our broader Green Lake strategy and plans. It's really a brand new, purpose built cloud native platform that we've developed and created. That pulls together all of our infrastructure leadership with our platform software leadership into a single integrated system built to run green light cloud services. So think of it as you know, fully integrated, deploy it any place you want on your premises at a co location provider or at the edge wherever you need. Um, they'll inter operate, work together sharing data, you know, running apps together. Great capability for people to bring the cloud where they want as we talk about what Green like it's the cloud that comes to you. >>So should we think of this as a as a management platform? Is it also sort of a quasi development platform kind of, where does it fit in that spectrum? >>Well, it's really more of an integrated system with all of the integrated control planes needed to run it in a distributed fashion. So it's a it's a true distributed cloud intended to run at any client location that's needed, connects back to Green Lake Central and our Green Light cloud operations teams to go ahead and run any cloud services that they want. So you get the benefit of running those workloads wherever you need but that, you know, uh centralized control that people want in terms of how they run their class. >>Okay so we think of these things like for instance how is it different from a WS outposts or things like you know as your stack or as your hub? >>Yeah, very simply this is because it's a distributed cloud intended to make it so you can run it wherever you need. You don't need to be tethered to any of the public cause or the various public clouds out there so people can now run their systems wherever they want however they need without that required tethering that much of those other vendors require. So you can really sort of own your own cloud or have that cloud come to wherever you need it within your overall. I. T. >>Can I tether to a public cloud if I want to. >>Yes. The cloud services like many other cloud services can interconnect together, so no issue, if you want to run or even do fail over between public cloud or on premises, it's all how you want to set it up. But that connection to public cut again through Green Lake is done at that cloud services level. Uh you know where you would connect one of the screen, like lighthouse systems to the public cloud three services. >>Okay, so maybe we talk a little bit about the use cases in a minute, but but how flexible is this? How do I configure Lighthouse? You know what what comes standard? What what what what are my options? >>Yes, so we've designed it in a very modular fashion so that people can really configure it to whatever their needs are at any given location. So there's a basic set of modules that align to a lot of the compute and storage instances that people are familiar with from all of the cloud providers, you simply tell us which workloads you want to be running on it and how much capacity you want and that will get configured and deployed to that given site. In terms of the different types, we have what we're calling to series or a set of series that are available for this to meet different sets of needs, one being more mainstream for broad use cases that people need virtualized container, any other type of enterprise workloads and another more technically focused with higher performance networking. For higher performance deployments, you can choose which of those fits your needs for those given areas. >>So maybe you could talk a little bit more about the workloads and what specifically is uh supported and how they get deployed. >>Again, all of it is managed and run through Green Lake Central. That's our one location where people can go to watch these things manage them. You can run container as a service VM as a service as needed on these different platforms. You can actually mix and match those as well. So one of these platforms can run multiple of those and you can vary the mix of those as your business needs change over time. So think of it as a very flexible way to manage this, which is really what cloud native is all about, having that flexibility to run those workloads wherever and however you need. In addition, we can build more advanced type of solutions on top of those sort of foundational capabilities with things like HPC is a service and collapses a service to better enable clients to deploy any of their given enterprise workloads. >>John what about the security model for lighthouse? Um, that's obviously a big deal. Everybody's talking about these days. It can't open the, the news without seeing some kind of, you know, hack de jure, how does Lighthouse operate in the, you know, secure environment? >>Well, you know, first of all, there's sort of a new standard that was established, um, you know, within these cloud operating models and HPV was leading in terms of infrastructure innovation with our Silicon Root of Trust, where we came out with the world's most secure infrastructure a few years ago. And what we're doing now, since this is a full platform and integrated system will be extending that capability beyond just how we create a root of trust in our manufacturing facilities to ensure that it's secure. Running it within the infrastructure itself, will be extending that vertically up into the software stacks of containers and VMS sort of using that root of trust up to make sure everything's secure in that sense. And then eventually up to the workloads themselves. So by being able to go back to that root of trust, it really makes a big difference in how people can run things in an enterprise secure way. Great innovations continued and one of our big focus areas throughout this year. >>So where does it fit in the portfolio, john I mean, how is it uh, compliment or how is it different from, you know, the typical HP systems, the hardware and software that we're used to? >>You might think of this as sort of a best of bringing together all the great innovations of H P D. You know, we we've got awesome infrastructure that we lead for many, many years. We've got, you know, great more cloud native software that's being developed. We've got great partnerships that we've got with a lot of the leading vendors out there. This allows us to bring all of those things together into an integrated platform that is really intended to run these cloud native services. So uh it builds on top of that leadership fits uh in that sense with the portfolio, but it's ultimately about how it allows us to run and extend our green light capabilities as we know them, to make them more uh more consumable if you want to call it for a lot of our enterprise clients and whatever location. So >>when would I when would I use Lighthouse? And when would I use sort of a traditional H P E system? >>Again, it's a matter of which level of integration people want. Cloud is really also in terms of experience about simplifying what people are purchasing and making it easier for them to consume easier for them to roll out a lot of these things. That's when you'd want to purchase a Lighthouse versus our other infrastructure products, we'll always have those leading infrastructure products where people can put together everything exactly the way that they want and go through the qualification and certification of a lot of those workloads or they can go ahead and select this green like Lighthouse, where they have a lot of these things available in a catalog. We do validation of, of the workloads and, and uh, platform systems so that it's all sort of ready for people to roll out in a much more secure, tested and agile fashion. >>So if I have a cloud first strategy, but I don't want to put it in the public cloud, but I want that cloud experience. Uh, and I want to go fast. It sounds like Lighthouse is that I'm the perfect customer for for Lighthouse, >>precisely. You know, this is taking that cloud experience that people are wanting the simplicity of those deployments and making it where it can come to them in whichever location that they want. You know, running it on a consumption basis so that it's a lot easier wait for them to go ahead and manage and deploy those things with out a lot of the internal qualifications and certifications that they had to do over the years >>versus okay. But or, and or if I want to customize it, maybe I want to, maybe I'm a channel partner. I want to bring some of my own value. I got a specific use case that's not covered by something like Lighthouse. That's where I would go with the more traditional infrastructure, >>correct? Yes. If anyone wants to do customization, we've got a great set of products for that. We really want to use Lighthouses, a mechanism for us to standardize and focus on more enabling these broader cloud capabilities for crime >>and Lighthouse. Uh Talk a little bit more about the automation that that I get, you know, things like patching and software updates that's sort of included in this integrated system. >>Is that correct? Absolutely. You know, when, when when people think about, you know, managing workloads in the cloud, they don't worry about taking care of from we're updating and a lot of those things that's all taken care of by the provider. So uh in that same experience, Lighthouse comes with all of the firmware, updating, all of the software, updating all included, all managed through our Green Lake managed services teams. So that's just part of how the system takes care of itself. Um You know, that's a new level of capability and experience that's consistent with all other cloud providers >>and that's that's okay, so that's that's something that is a managed service. Um So let's say I have a lighthouse on prem, you're gonna you're gonna that managed services doing all the patching and the releases and the updates and that lives that lives in the cloud, that lives in hp, that lives in my prem. >>Well, yeah, ultimately it all goes through Green Lake Central and it's managed. Um you know, all of those deployments are are automated in nature so that people don't have to worry about them. Um There's multiple ways that that can get delivered to them. We have some automation and control plane technology that brings that all together for them. Um You know, it can vary based on the client on their degree of of how they want to manage some of that, but it's all taken care of for them. >>And you've got Green Lake in the name and my to infer from that that it's sort of dovetails in is one of the puzzles in the Green Lake mosaic. >>Yeah, exactly. So think of think of Green Lake as our broader initiative for everything cloud and how do we start enabling not only these cloud services, but make it easier for people to deploy those and consume them, consume them wherever they need. And this is the enablement piece. This is that portion of green light that helps them enable that connected to green like Central where they can manage everything centrally. And then we've got that broad catalog of services available. >>And when can I get it? When you go G. A. >>Yes. So it'll july is when our first set of shipments and availability are there. So just a very few days after you discover here, and we'll expand the portfolio over time with more of a mainstream version early, more technical or performance oriented ones available soon thereafter. And we've got plans even for edge type offerings, uh more in the, in the future as well. So a case where we'll continue to build and expand more targeting these platforms to folks needs whether their enterprise or maybe there are vertical offerings that they want in terms of how they move all these things together. Think of Telco is a great case where people want this. Healthcare is another area where we can add the value of these integrated systems in a very purpose built way. >>Can I ask you what, like what's inside, you know, what, what can I get in terms of, you know, basic infrastructure, compute storage, networking, what are my options, >>all of the above. You know, what we'll do is we'll we'll go through the basic selection of all of that greatest hits uh within our complete portfolio. Pulling together, give you a few simple choices, you know, you think about it as you want, general purpose compute modules you might want compute optimized or memory optimized modules. Each of those are simple choices that you'll make that come together underlying all that are the great infrastructure pieces that you've known for years, but we take care of simplifying that for you so you don't have to worry about those details. >>Great well, john, congratulations on the new new product and uh and thank you for sharing the the the update with the cube. >>Thank you very much appreciate. >>All right, thank you for watching the cubes coverage of HP discover 2021. My name is Dave Volonte. Keep it right there right back with more coverage. Right after this short break. >>Yeah. Mhm.

>>live from Las Vegas. It's the Q covering AWS executive. Something >>brought to you by Accenture. >>Welcome back, everyone. We are kicking off day two of the cubes. Live coverage of the ex center Executive Summit here at AWS. Reinvent, I'm your host, Rebecca Knight. We have three guests for this panel. We have some bad meta. He is the chief information officer at Putnam based in Boston. Where? Boston People together. Thank you so much for coming on the show. Nitin Gupta. He's the partner and solutions lead. Financial service is at AWS Welcomed and Shale Jane back again for more. Who leads the data business group in North America. Thanks >>so much the last time. >>Yes. We can't get enough of each other. So thank you so much for coming on the show. We're talking about the data data journey and financial service is so I'm gonna start with you, Sam. It tell us. Tell our viewers a little bit about Putnam. That your assets under management. Your employees? >>Sure. So you know, problem is a global firm. We are a leader in mutual funds in the mutual fund business. We're in 84 year old organization. We based in Boston on, and we are known for innovation. We've done a lot of firsts in our industry on our focus has always bean looking after the needs of our shareholders. So even as we launch digital transformation, we launch it with the lens off, making sure we're covering the needs of our shareholders. >>So what was the impetus? What was the driving force to it? To embark on this cloud journey? >>Sure, So you look recovered. The financial markets recover industries. We look at our own industry as well. Things are changing rather rapidly, right, if I may just turn it around a little bit. Last year's letter from our CEO Bob Reynolds, said That problem now has Maur increasingly Maur four and five star funds, according to Morningstar, then we've had it as a percent of total funds ever. Before we had inflows, when the rest of the industry were having outflows, we built a digital platform and we said digital technology at problem is how we gonna view the internal technology department who will help enable our company to go and provide the investment insights directly to our advisors and to our shareholders so that they can benefit from the performance that we're we're delivering, right? We can only do that through a change. What's really going on in our industry is that there's more choice that's now available to shareholders than ever before. So while we talk about where there's outflows in in in our world, there's actually a lot of flow happening, right, So So it's for us to figure out how. How are the tastes changing right? What are people buying would do advisors need? When do they need them and can reposition ourselves to service them at scale, and so that those are the things that are driving our business? For us to continue to serve the shareholders needs. We really need to be in tune with where the market is. So we're helping do that at Putnam through technology, >>so shale in it. And I mean, what he's just described is thin. This enormously changing landscape and financial service is disrupted by a lot of new entrance. A lot of financial text in tak, a lot of different kinds of technologies. A lot of industries are experiencing this rapid pace of change. How do u ex ensure in AWS work with Putnam amidst this tremendous change, and how do you sit down with the client and sort of work out? Where do we go from here? >>So you know, I want to touch upon a couple of things that made you said And Rebecca You said, So no one is the cloud of their journey. It's It's not a destination that you're trying to get to, And then the other thing that you talked about, it's change. So we had in the cycle right now. But there's a lot of change happening at an industry we had in the cycle Where you nothing, that $38 trillion or something, which is a generator, you know, they're just getting transferred from one generation to the other. I'm not getting any off it. Unfortunately, you know >>all of >>this change that is happening in the industry. What is really required is you need something up in terms of technology, a platform that allows you to move quickly on adapt really quickly to this change. And I think that's where cloud comes in when we talk about all the new generation technologies like data machine learning, artificial intelligence, how >>do you >>leverage all of those. How do you fail quickly? How do you test experiment? Run thousands of not millions of experiments and see what will work in what will not work and do that in a very cost effective way and cloud of a very easy. It's an effective way to do it. And the weight of Louis is helping our customers. Obviously. You know, we we announced a bunch of service is yes, today way have the widest and the deepest tack that is dead in the industry today. You know the strength of our partners. Accenture. So you know, Accenture has Bean one of our longest standing partners altar and financial firm on, you know, working with them, working with our partners to enable our customers. But then we're also investing very heavily in building our industry capabilities. Are accounting solution architects? Professional service is security professionals helping our customers answer all the questions that they would need to answer as they go in this journey with us. So it's, you know, we are in this with them for for the long haul on dhe, you know, super excited about parking trip. >>So from our perspective, I think where we view the world as at a point where we're post digital, where digital was to put a front end that made your engagement with the customers much better. But now we're talking about intelligent enterprise, which is to really digitize the company from the inside out. So not only you need cloud for agility and all the other benefits that cloud offers, but you also need to look at data is the vehicle that would actually not only transform the culture of the company but also be able to integrate with your partners. For example, Cement talked about, you know, getting mind share from the advisers. But if you can exchange data, integrate data much better, faster with them and serve data to them in shapes and speeds that they need, they'll be more amenable to put you on their roster as well. So I think we're seeing a change that's mostly driven by the fintech industry disruption. That's that's happening as well. And it is no better time than now with the cloud and data to really help transform companies like >>the's tons of innovation, right, it's We heard Andy Jassy talk about the Let's roll Sweet the Sweets that are available to us. Our job is to learn what they are and how does it apply to our business because at the end of the game you said it's about our shareholders. It's about the value that we can bring. But we want to harness the power off all of the innovation, and we can't even though we've Bean an innovator, we're not going to innovate alone, all right, so it's really helpful to have to surround yourself with partners who have done this before, to be learning from others and bringing in the right tools at the right time, so so we can turn things around quickly, right? This is way are obviously very conservative and risk averse when it comes to managing other people's money. So we have to be very, very careful. Having said that, you know, we want to learn about all the guardrails we can put in place so we can go faster. >>I want to actually do something about what Shayla brought up, and that is the cultural change within the organization, because change is hard and so many people are resistant, particularly when things are going relatively well and they say Why mess that up with the new technology? So how is hard? Maybe >>is the understatement of the week very hard, and as you guys know, you know where it's not. It's not hard because people don't just want changes. They are experts in things that they've been doing for the last 15 years. 20 years. They've bean at our firm for a really long time. They really know how everything works from front to back. What happens, though? Now, when we get a changing need from the market and people want to buy things differently and we want to sell different products and maybe wanna introduce new products to the market, we can create bottlenecks that slow things down if we're not careful. So this is where we want to learn about the two pizza teams and how you can do things faster. How can we apply that to our world? Which means business partners working with technology, co located in small teams, being completely empowered to deliver solutions, right, working with our risk and compliance people, making sure that everyone's doing things that there were supposed to be doing right? How do we put that to work in the financial service is industry. So where we're learning as we go, we're learning to break down the sidles in the organization, and it's hot all the way around because we're experts in our areas. We know what we've done really well. But fortunately we have a leader in our CEO who's basically said that Let's transform problem so that we become leaders in the digital era for financial service is so with his support waken. Get the executive team align, and as the executive team aligns, then you find that people in the organization they want to work in this model, right but way don't know yet what we don't know, right? It's so we know how to do things from yesterday. Now we're learning and working together. So you guys have come in and this is where we've said, Bring in the people who have done this before and let's hold a session with 40 50 people that Putnam and let's just learn about what that transformation looked like at other places, so we don't make the same mistakes. >>Well, that's what Andy Jassy said in his fireside chat this morning. He was talking about how he had surgery recently in the question you need to ask your surgeon is how many times have you done this surgery? Because that is the critical thing. And so having a trusted partner is so important. So how how does it work that we're working together, collaborating on this relationship? How are you ensuring that Putnam doesn't make mistakes and does do the right tool for the right job shell? >>So, um, earlier this year, we actually launched an offering. A devious lighthouse with eight of us and what it is is a is a collection off. All of our assets are thought, leadership and architectures that we have garnered over the years, having worked with plants like Putnam and have them through the journey. So we put them all together and we bring Bring that Fourth Putnam is one of the first clients actually take advantage of it Abuse Data Lighthouse and, for example, we have a methodology that is specially customized for doing data on on eight of us. So things like that is what we bring to the table to help eliminate the risk that they may encounter. >>And data is critical to us, right? It's we manage a set of data assets, and that's the engine off the organization. So when we look at cloud migration way, look at what's our data strategy? How are rebuilding the so called you guys introduce the terminology for confirmed data sets? And then can we gallon eyes the rest of the organization around it, from investment professionals to operational professionals who used that data every day. Manager governent Make sure that it is what it's supposed to be. And to do that in a cloud environment where their user experience becomes a lot simpler, a lot easier almost takes I t a little away from the day to day. We don't have to be in the report writing business because we can make them more self service right that will create efficiencies in our organization. Our clients are asking us to do things at a lower cost than ever before and introduce more products and more tools and more service is right, so >>I would just tie with Samantha, just said with your question about culture. So if you can make it easy for people, for example, making things self service and data that's discovered through a catalog, so you have a place where you can go and find all the data sets it available. What is the quality? What is the veracity of data and then be able to take a piece of that and try some experiments with it? I think that would enable the cultural change much faster >>because they are able to basically do their jobs better. >>Yes, yes, >>it is. A is a more productive implement. Will highly >>engaged employees, right? We don't want to be in a situation where we find a lot of those disengagement moving employees and the mission for company. We want high engagement. We own people committed to what they're doing. We want to remove hurdles, and technology is they can produce great efficiencies, but it's not done right. It can also be a big hurdle. So we want to learn how to deliver the right tools, the right products to make it easier for way like to say, bring delightful experiences for our clients and our employees. >>Delightful. Another were another Jeff Bezos favorite word of his Obviously Putnam is, is a real innovator and really on the vanguard of this new technology. What are you seeing in the greater financial service is landscape. I mean, how how what are the what is the corporate mind set when it comes to this kind of change? >>So you know, when we look across our financial service is customer base across banking, capital markets, insurance pretty much every customer today. The question is not, you know if we should move to the cloud or when should we move to the cloud? But I think every every CEO and see io is asking the question, How do I move too loud? And what applications do I move over? How do I start on this journey of transformation? Whether it's a digital or it's reducing costs are improving my risk. Posher whatever that end goal is on dhe, you know, when we look at use cases across the industry, risk and data is with one of the easiest use cases to get started with, say, on Ben Field. They were looking at Solvent E to calculations for 25 million other policy holders, and they reduce that time from 10 days to 10 minutes. That is a, you know, really good use case off getting moving to the cloud. You know, if Indra is a great example. They're very public customer analyzing 38 building over market records in the stock market and looking in on alive in all of the data. On it up with data and risk is one of the core use cases that companies start with but then >>has to >>get more as they learn more about the cloud. As they get more get a deeper understanding, they start looking at other things, like Transforming Corp core applications. Today we have core creating applications, scored insurance application score, banking applications that are running running on the cloud. And then they start looking and innovation. You know, how do we look at artificial intelligence? How do we look at machine learning? How do we look at the new technologies to really transform our business and one of the great use case? And we thought so. You know, a lot off insurance companies Liberty Mutual using Lexx as part of their there was a conversational agent for their customers. But one of the interesting examples I have is it's ah, it's a reinsurer in Denmark, Italy insurer in Denmark, and what they're doing is they're using image recognition from from Amazon to look at on accident in the field and then analyzing that, using the using our recognition service to see what that that actual damages and what the cost is and feeding that information to the underwriter really compressing the time that it takes two from a clean filing to processing and payment to a matter of a few few few hours on getting that payment to the to the customer. So really creating a very positive customer experience. >>So it speaking of customer experiences, what have you know? You said you thought you were in service to your shareholders. What have been some of the results that you've seen? >>So you have to look across the organization, right? So our advisers served the need on the retail side, so we were like a bee to be business, right? So we have to be cognizant of what's going on in their world. They're sitting down with clients and talking through the choices, and they have certain needs what they need to fulfill their obligations. They need to explain why they're doing what they're doing. If Putnam knows where each of the advisers are at in their journey with their clients, we can be more helpful to them in explaining why our funds are behaving the way they are right, that information can be had at the right time at the right moment when they need it. Need it, And that brings advisers closer to our our teams are retail distribution teams are marketing teams are investment teams are investment professionals, are using data and analytics to get information to. We're using technology to get information to them faster, so companies are doing releases. There's a ton of information out there these days. We're using technology to dig deeper into the press releases as well as the SEC filings, looking at the footnotes, really trying to understand what they're trying to say, what they said before and what are analysts should be focused on. And we can take a 70 page document, condense it to seven pages and pinpoint what the technology tools say's are really insights. And the analysts will take the time and read the whole thing. But they'll also look at the insides and they'll add it into their process. So technology's additive to the investment process and really making a change help and then that's helping Dr performance. So at the end of the day, we're living good performance on our funds through data analytics technology, you know, give you another example. Some off the were were very strong in the in the mortgage analytics business and on the fixed income side. Our team's very well known. They've been together for many, many years now. They're starting to use data at scale, and we found that being able to go to the cloud to do these analytics right in hours instead of days has really made a material difference in the number of iterations we can run. So now the questions are, when we do risk management, can we do that a little differently and run more reiterations and get more accuracy? So we're seeing all of that benefit. That's direct user experience, that people are seeing people seeing how technology is helping them do a better job with their thesis. >>Excellent. Thank you so much for coming on. The Cube seem ed knitting and shale. A pleasure having you on. >>Thank you for being here. >>I'm Rebecca night. Stay tuned for more of the cubes. Live coverage of the Ex Center Executive Summit coming up in just a little bit

>> Narrator: Live from Las Vegas, it's theCUBE. Covering ServiceNow Knowledge 2018. Brought to you by ServiceNow. >> Welcome back everyone to theCUBE's live coverage of ServiceNow Knowledge18. We're coming at you from Las Vegas, I'm your host, Rebecca Knight, along with my cohost Dave Vellante, we are theCUBE, we are the leader in live tech coverage. We are joined by Sebastiaan Laurijsse, he is the global senior director, IT, cyber security, digital transformations at NXP, thanks so much for coming on theCUBE Sebastiaan. >> Thank you for having me. >> Good to see you. >> Thank you. >> So I want to start out by asking you a little bit about NXP, what you do and then what your company does and then also what you do there. >> NXP is the leading semiconductors in providing products for automotive and our company vision is providing a sure connections and infrastructures for a smart world. And that's what we are trying to achieve by implementing new ways of working with making the world more autonomous, like autonomous driving et cetera, so that's really what we're trying to do. >> Dave: Cool company. >> We are really building the future of tomorrow. >> Yeah. >> Big, large company too right? >> Yeah. Roughly about 36 thousand employees currently. >> Wow, okay, yeah. >> So you said you're really building the future of tomorrow, unpack that a bit, tell our viewers exactly what you're doing there. >> So today what you have experienced also on this event is a lot about artificial intelligence and machine learning. NXP has been elected as the number three in the world as the provider of solutions for artificial intelligence. So if you really think what we are developing today, it's already started and will become available in five or three years from now. So it's, you only can imagine what the future brings us and what we will shape. >> When do you think owning your own car and driving your own car will become and exception? >> Driving your own car, you won't own a car anymore. It will be some kind of help that comes to your home on demand when you need it and it even predicts when you like to travel and then it comes by automatically. >> How far away is that, you think it's two decades? >> Nah I think here it's not about technology, I think we have the technology to even enable it today. >> Dave: It's policy. >> It's policy, regulation, compliancy that doesn't allow to lets go harvest all data to make the right decisions there. >> We had the insurance company on the other day and they were like, no we're going to figure this out. >> Out of necessity. >> We always figure this stuff out. >> Yeah it's really not about technology anymore, it's really about legal, what prevents us access the data to make the right decisions, right. >> It's amazing though just to watch the progression of automotive, I mean they're basically software defined vehicles now I mean how many semiconductors are in a car now? >> Yeah but also you can clearly see within that experience, we are transforming our business to more software because developing a product as hardware that needs to stay in for 15 years or longer if you look to a car. Then you would like to have the ability to be dynamic more on top of the product by using software so also our products are becoming software defined. >> So you're a very R and D centric culture. >> Sebastiaan: Yes. >> Maybe talk about that ethos and the cultural aspects, and maybe what the process looks like, share with our viewers. >> I think it's the most awesome part of the company. Of course we also manufacture our products but mainly R and D is so dynamic, we have so, tech savvy people and we have so much issues as IT and you think what are they consuming so much bandwidth on Netflix and then they tell me hey we are developing a product for 4K entertainment into the car. So I have an issue on my wider network, you're providing all kinds of services but you're building for entertainment into the car for the future. >> That car better be autonomous. >> Exactly. >> Yes. >> That's for the kids in the back seat I think. >> Yes. >> You once described ServiceNow as the platform of platforms can you talk a little bit about that from your R and D process? >> So what you clearly see and also I think that all companies will eventually become an IT company, yeah? Also the banking companies tell us now today they are an IT company with a banking license. What I truly believe in is that we need to close the gap between IT and the business so I think the future model is that IT will dissolve for a certain part into the business. But you don't want to have, of course you still have you shared services, you still have a hybrid model where you have the countries where you're providing support from, so you're not always as close to the business. You have 24 seven economy and you need to provide those services and what you don't want to build is human interfaces. So what you try to achieve by building the platform of platforms, the fabric is that you try to connect the business acumen, the business dynamics, the project management tools that requires management into the IT systems and since you can detect the phase where they are in if they are facing issues with their products the projects are slipping or delaying, you would like to increase automatically the severity of the incidents. So that they can automatically solve and you have a better understanding of the business priorities. >> NXP is really interesting because you're at the intersection of a lot of big trends. I'm mean you're a hardware-- >> Sebastiaan: IOT. >> You're hardware manufacturers, you're a software developer, security, AI, IOT and underlying all this is data. >> Yeah, the new money. >> Yeah, right so I'm just envisioning this pretty complicated matrix, I'm wondering if you could describe that in your terms. >> If you look from an IT infrastructure perspective the growth on data is enormous. To cope with that growth because the data allows us to make better products. Data could be a requirement but could be also the affect of the results. What we tried to prevent, the project in bringing to the real life that you feel your requirement of quality is increasing. We had consumer great, automotive great, and we had for the flying industry, also the same great. But however your norm is increasing, so what you clearly see by increasing the norm, we call that the total quality culture, you also would like to have a total quality product, you don't want to replace your phone one year from now and I think if you look four years back, a phone, one and a half years, two years and then you had a new one. But as products become more expensive, they become more part of your daily life, part of your personal brand even and it generates that data, we need, if you try to work on proper quality that will generate an enormous amount of data. But a data can use, you optimize your processes upfront in the future as such it becomes more cost efficient to develop new products. So it's really about the conditioning for more data is also conditionally need to optimize your processes. >> Where does ServiceNow fit in to all this? How do you use ServiceNow? >> So for me what you really see in ServiceNow today is the best work flow engine you can imagine. It really orchestrates all IT and connecting business processes. And I think the potential and I think if you look into the portfolio where they have HR, it's going beyond IT and now they often, as already said by John Donahue, they come in via the IT angle, ITSM but as the process become more and more part of your culture rather than inhabit a forced way of working then the platform starts supporting the culture of your organization because by machine learning a proper UI, visualization capabilities it becomes really part about metering, showing what you're doing and really helps you to orchestrate your daily work and that's also I think of the new company, it's a little too difficult to pronounce, have you ever, it's about orchestrating the future way of working. >> So we're hearing so much about this, making the world of work work better for people, you describe it as a work flow engine, really helping employees organize their work days, orchestrate their work days, improve them, can you describe the culture at NXP and sort of how ServiceNow is improving employees everyday lives. >> What we really try to do and it's also what we see it's easy to show the cost efficiency savings you have from a platform as ServiceNow. If you improve your onboarding by optimizing the process by three days, because that's your first point of engagement when you bring some people on board and if it goes fluently, work integration with ServiceNow providing the services, everything is ready at day one. Day one you're there, your laptop is ready, your provisions, your desk is ready, and you have orchestrated a process that's a flawless end user experience. And that's what we would like to provide with ServiceNow, orchestrate with ServiceNow, because that's what the uses is. If it's a need of any of the help of services, we would like them to go, shift left to ServiceNow and with help of knowledge help themselves. We are all doctor Google and we would like to have access to that information ourselves and not be dependent by the expert, we all become that expert. >> Are employees happier? I mean I think that's a question too. Because we know that from research that happier employees make more productive >> Are more productive. Workplaces. They're more likely to stay, recommend it to their friends and the network gets bigger, I mean what's your-- >> If you have a company that shapes the future, we have very happy employees. (laughing) >> Self fulfilling prophecy there. >> Yes. >> When did you go live with? >> So we are one of the first adopters in 2007 in Europe. So we really started then, I don't know the name because they talk about days, months and now they talk about locations. (laughing) But I think we did a big overhaul during some of our big integrations that we have done so we are really one of the first customers in Europe providing the product. >> And how far, where, what version you in now? >> We are ready to upgrade, we will skip one release if we go to-- >> It's coming to London. >> Yep, London. >> Oh okay. And you started with ITSM like most? >> ITSM, ITOM, so IT operation management and now we have the IT business management app like demand management, IT financial management, really orchestrating from demand to fulfilling. >> A lot of our guys have written that they feel like machine intelligence and ITOM go together very well. >> Yes. >> You agree with that and how do you see that affecting your business? >> So what we clearly see is that the mean time to detect, the mean time to repair, we would like to detect algae before they hit the end user. So you really would like to make sure that before they notice it's already been solved. Or when it goes wrong, they already say we're on top of it, we know, we know the impact, we know that the whole chain of events, a single network port or power outage somewhere in a room could cause a big effect on the whole IT service and therefore research now helps us to make sure that we are on top of the things. >> Sebastiaan you mentioned off camera that you are very intimately involved with ServiceNow and helping them with their roadmap, providing feedback so can you share with us some of the things that you talk about with them and what would you like to see, where's their white space, what's on their to do list from your perspective? >> So what, but of course, if you look to our portfolio, what we are doing as NXP. So a member of the product advisory council for IT operation management and I'm closely working also on the Lighthouse program with ServiceNow and all kind of new releases, what I really think if you see what you are investing, of course they are now coming forward with the chatbots, awesome but if I see how my children consume information, using YouTube and I think also John touched upon it, what we are building as NXP is in the flawless end user experience and everything as being you don't have a UI. If you look to your car, today you have a speedometer, an RPM meter, why do you have RPM on your dashboard, why? What's the value of you know? In the past you needed it to shift gears and why is it still there? Does it really add value? >> Cause it's cool. (laughing) We love dials, come on. >> So it's about the end user experience, it's about your lifestyle, your brand identity it's not as more about requirements so, of course UI is important, I believe it, what's more important I think to invest in that engine behind it machine learning, artificial intelligence and how to ingest data. So because what is really required to make smart decisions is a lot of data and still I think the platform has potential, but there's some room for improvement to get proper integration by onboarding more data making the right decisions and orchestrate the actions out of it and I think the learn think act, we have the same strategy as sense, think, act at NXP I think that's how robotics and AI will work in the future. >> Data is the fuel for your innovation. >> Yes. >> So it's a great point you're making. >> I wonder if you could talk a little bit about the feelings in Europe, you're based in the Netherlands, about automation and the future of jobs because in the United States there is a significant anxiety about the machines coming for our jobs and at least the media portray it that way and I'm curious from your perspective, what is the feeling in Europe? >> Of course I think I see the opportunity but automation will change of course, automation, machine learning, it will essentially change the whole way of working. Because what we say it's about helping the business by decision automation, making decisions so we try to reduce the human effort, we have a total equality culture but we still need more and more people to help them that ask the right questions. Because the innovation of course come from a lot of data But still have people who connect the dots of never existing connections before. If you have a lot of data and you don't know which questions to ask, would you build a new solution? So it's still about smart people and creativity and of course we know patterns, we know what people are doing. But still the real breakthroughs is being done by people and therefore we need those people still in the future. So the anxiety is there yes, automation is there but I think it's about building a joint incentive between your outsource provider, your source provider between your workforce is what's the incentive for them on automation because otherwise you get a culture of fear and anxiety and a lot of doubt and that will be counterproductive for your company value. >> What do you think as a journalist. I mean you're right, the mainstream media talks about this a lot and they're actually accurate, the data is there to suggest that machines are replacing humans and cognitive functions and that's a concern but there's not a lot written in the media about the opportunity, there is some about the opportunities but more importantly what to do about it, in other words, public policy, education, I mean maybe I'm just missing it but. >> No, I agree with you, I completely agree and also this idea that Sebastiaan is bringing up is showing, proving that this can work for you, I mean this is actually going to improve your work life by taking Carol out of the drudge work or show opportunities for humans and robots to work alongside of each other. >> Yes. >> Rebecca: So there you go. >> Well in tech you better be an optimist you know. >> It's true. >> Although it seems like Musk and Stephen Hawking weren't optimists but maybe they're thinking you know hundreds of years-- >> Light years ahead. >> Right, right, right, right. You report directly to the CIO, at this conference, we're hearing so much about the changing role of the CIO and how the CIO has to be thinking so much more broadly about the business than ever before I mean how do you see it? >> So that's an interesting question because that's exactly where we are in today so we have had the classic way of the CIO, financial risk control et cetera then we have the transforminal CIO, then we have the CDO, or we have the future COO who takes care of operations because today IT is often being seen in the enterprise companies as a shared service center, something you do with the lights off but clearly bank accounts, what I already told you before was we are now IT companies with a banking license as IT becomes more dominant, it becomes part of operations and yes, we need a transformational CIO, CDO or a new type of COO that sees IT as part of the operations and the way of working. And of course you can give the new title, but at the end it's just a smart guy who helps the company succeed and brings IT as one together to make success. It's not about the role or responsibility, I think there's still the name of a chief information, chief data officer it's still the right title because he makes sure he gets the right data towards the business to make the right decisions faster. >> Right, great. >> It's not about running only the lights on. When the lights doesn't go on, it's IT's fault, right? >> Rebecca: Always, always. >> Always. >> Yeah that need doesn't go away but it's table stakes now. >> Exactly, Sebastiaan, thanks so much for coming on theCUBE, it was a pleasure having you here. >> Thank you. >> I'm Rebecca Knight, for Dave Vallante we will have more from theCUBE's live coverage of ServiceNow Knowledge18 coming up just after this. (upbeat music)

>> Announcer: Live from Las Vegas it's theCube, covering ServiceNow Knowledge 2018. Brought to you by ServiceNow. >> Welcome back to The Cube's live coverage of ServiceNow Knowledge18, I'm your host Rebecca Knight along with my cohost, Dave Vellente. The biggest conference of ServiceNow, 18,000 people here at the Venetian. We're joined now by Marc Talluto, he is the DXC Fruition Global Practice Lead at DXC. Thanks so much for coming on the show. >> Thank you for having me, appreciate it. >> So let's start out by telling our viewers a little bit about what you do in your role within the organization. >> Sure, you know, just a brief history, so I was one of the co-founders and CEO of Fruition Partners. So we were acquired by CSC, now DXC, about almost three years ago and within DXC, you know, DXC made a very conscious decision to use ServiceNow as kind of a pivot point to digital transformations for the customers. So by acquiring Fruition and then further investments, so we've done acquisitions in Australia, mainland Europe, the Netherlands, we've really consolidated a lot of the best regional partners inside one DXC Fruition practice. So within this practice, that's where we do a lot of our transformation work with customers that are starting or continuing their ServiceNow journey. >> Marc you and I met in the early part of this decade when this show was a lot smaller and it was, you know, well under, maybe around 5,000, probably even a little bit smaller than that. And it was companies like Fruition that got in early. You didn't see the CSC/DXCs and the other big systems integrators and this thing has just exploded. What's your perspective on the last five, six years? >> Oh boy, well I will say a lot of this is driven, a lot of the growth, not just from ServiceNow but from the GSIs, the global system integrators, that really see ServiceNow, how it can really be applied to their customer base. And so in the last five years you went from people that were interested but really didn't understand what it could mean, 'cause you know, if it's perceived only as a ticketing tool it's like, oh, that's not important. But as it's now seen as a, really a service manager platform, that getting in and servicing IT is just a way to go help HR, to go help suck ups, all these other venues. So what we're seeing is really an explosion of the GSI community here trying to do acquisitions like we've done. So there's been about, in the last five years, 17 different acquisitions of all those regional players into those various global SIs. But then those global SIs themselves, as we've seen on some of the presentations here, I and DXC ourselves, we're now using ServiceNow internally as a way to automate a lot of our internal processes. Used to be what we called Customer Zero or the Lighthouse Account is now the GSI themselves. So I think they've really embraced the message we've been kind of saying all along, which is, yes it's good for IT, but it's really good for how you operate all your shared services' businesses. So that's been, and it's been just accelerating every year. >> Yeah, remind me, so when you started Fruition did you start with ServiceNow or did you have, had you had experience with other platforms before that? >> Yeah, so we actually started in 2003, so about five years before we ever met ServiceNow. >> Dave: There was no ServiceNow, really. >> No, yeah, so we were used to using the remedies of the world, I mean, the other kind of various tools that were out there. But we also weren't a system integrator when we started. We were an, it's funny 'cause you hear the messaging now, organizational change is more important, customer success is more important. Those are really the roots of our company. We were like, listen, the process needs to be better. You know, we're pouring in to governance and all these things, we could use Remedy, we could use other tools but we need to really figure out why people are choosing to engage to do service management or they just kind of go off and do their own thing. So for those five years that's all we did was talk to organizations about crawl, walk, run. How are you maturing from fragmented service offerings, fragmented support, to really kind of being able to centralize those operations and then extend outside of IT? And when we met ServiceNow it was like, it's like they were telling us what we've been telling customers for years so I was like, that's great. >> The lack of a tool, a platform, that really does what ServiceNow does, in a way it might've been a tailwind for your business 'cause complexity, but on the other hand you had to respond and you jumped on it early. I mean I would think a lot of SIs might've said, oh no, that takes complexity out, complexity is cash for us. You guys had a different philosophy, you said were going to get in early, talk about that journey, that position. >> True, well you know when we first met ServiceNow, like I said, 2008 when they were about 40 people total, you know, their entire company. And I think we were 10. So we were almost, you know, similar sizes. But you know what we were able to provide ServiceNow was explaining the customer journey. That the technology was very important, it was very lightweight and nimble but that customer journey, that customer needed to understand, what should I do first, what should I do next? What should my one year, two year, three year look like? And that's something that we've always kind of held, that we saw ServiceNow also as being this platform. We believed in the Glidefast story which was ServiceNow before ServiceNow, maybe we were one of the first ones to say, there's IT service managers, let's just talk about cloud service management, enterprise service management. So I feel like their story and our story, we've kind of been maturing together as we've seen customers really adopt the platform. And some of the great case studies that we've seen over the years, those have been our customers that we've helped encourage to say, what's the difference between an asset that's in IT and an asset that's in manufacturing, right? These are the same disciplines so let's help them go out there and do that. So it's been, it's obviously been a tidal wave of work. It's been very interesting expanding globally and you know, this is just a result of a lot of hard work on everybody's part. >> We're sort of, at this conference we're hearing that this is a real moment in time, when you were describing talking to companies, trying to understand those who were sort of happy to operate in this fragmented way versus those that were truly committed to a technological change and bringing things together. Is that true in your mind, that there really is a recognition on the part of companies and employers? This is, we need to get better at this. >> You know what we're hearing? We're hearing from very large enterprises, some of them and even Aerospace and Defense that are like, we have to recruit younger talent. They do have aging populations that'll be exiting their workforce. I see this from universities that recruit, obviously students, but it's then the workforce. The expectation is now so much higher that their experience with IT inside their employer is much closer to their experience as a consumer. We've been saying it for years but now it's really become a business imperative as customers, I should say as our customers, they are trying to make their workforce happier. Well not only just more productive, more engaged, but also, you know, retention. It's, I feel like it's the moment of the worker themselves. And look at other economic factors, unemployment's at a historic low. Finding people, you're competing for your own workforce to come work for you. They can't show up and you give them a Windows 95 machine or like an Office 2001 product suite, they're like, that's a reflection of how you as a company actually operate so all of those are kind of coming together in to this consumer like experience for the employees of our customers. >> And a lot of talk about new ways to work, the future of work. So what's your expectation going forward for how that affects business, affects your business, organizations? Sounds like they're closing the gap between consumer experiences and enterprise experiences, what's next? >> So you know, big word, friction, been frictionless. Right, like where's the efficiency, what is the friction in different departments working together? I think as people really do adopt this, call it the service manager platform, that system of engagement, once those silos start to come down, once they start to share that data, we see it in individual customers, they kind of go through this aha moment. They've cleaned up their data sources, they realize everything's on one platform, and then they're like, can't I build this, can't I build that, can't I build that? Yeah, you can, and it really starts to accelerate. So I think we'll see the barriers of these business units really fall, I think IT's role is going to shift to be almost a, we talk about a service management office not a project management office. So the service management office is, how well are all of my services, whether it's HR, whether it's finance, how are those services being consumed by my employees? So I think we'll see that pivot, it gets away from IT being more T, the technology, and more to the I. Like what information and services am I providing? I think really we are at that catalyst and as people start to adopt that it moves much more quickly from here. >> What's next, what is, going forward what do you see as the DXC ServiceNow strategy? >> Boy, so this is something that we've been working, so DXC's only been in existence for one year, right? But it came from HBES, it came from CSC, right, 26 billion dollar company, 180,000 people. DXC is putting all of their investment strategy around digital transformation, behind ServiceNow. So we have another team here that focuses completely on building ServiceNow offerings that are behind all the other DXC offerings. So what do I mean by that? The difference is whereas Fruition will go up to a customer and say, we'll help you do ServiceNow work, the platform DXC team says, we want to deliver cloud orchestration, we want to deliver desktop and mobility workforce call centers, but all of those are powered by ServiceNow at the back end, all of our analytics so we do a lot of other things as DXC, obviously billions of dollars worth but we're switching that all to be standardized on ServiceNow. So we're actually breaking down the silos in our own company of how our different departments work together. So if a customer buys a cloud orchestration platform and they're also a workplace and mobility customer and they also have maybe the HR BPO, that's all on ServiceNow. The DXC platform, DXC, built on ServiceNow. So that's everything DXC's throwing at it is to be that player. >> And do you see ServiceNow, is that the platform of platforms? >> Marc: Yes. >> And I mean, you guys really are a technology agnostic. But if it fits you'll use it. >> Well we're an independence offer provider. We don't create our own products like an IBM might or somebody else might and basically put those products in front of a customer when they're really not the right fit. >> So, I mean, you think we had John Donaho on early and he said, look, there's WorkDay and there's SalesForce and there's SAP, et cetera, et cetera, et cetera. We want to be the connective tissue to those platforms. Software companies are funny though, they all want to be the connective tissue. But if this is what ServiceNow does, so, do you feel like they are in a unique position to be that platform of platforms and-- >> I really do, and we've worked with a lot of other software companies that want to connect in to that ServiceNow ecosystem because what we find is other software products are like, listen, I might be really good at security, intrusion detection, but do I want to create a work flow? And I want to create the CMDB, that means that I have to go build an entire almost secondary product to my core competency. So if I'm really good at anti virus, if I'm really good at intrusion detection, even if I'm really good at reporting I still need people to act on the information I'm providing them. But I don't want to build that action engine, so that's what they're almost setting up their own boundary, saying let ServiceNow be the action engine for me and we'll just plug in to them. They're becoming the standard for how customers work between silos. >> Great, well Marc, thank you so much for coming on the show, this has been really fun talking to you. >> It's my pleasure, thank you, great to see you. >> I'm Rebecca Knight for Dave Vellante, we will have more from ServiceNow Knowledge18 just after this. (upbeat techno music)

>> Announcer: Live from Las Vegas. It's theCUBE covering VMworld 2017, brought to you by VMware and its ecosystem partners. >> Okay, welcome back, everyone. Live here at VMworld 2017 day three wrap-up. We're going to wrap up the whole show. I'm John Furrier with Dave Vellante, Stu Miniman, Keith Townsend. Cube, set, two sets of coverage. Guys, great job, we have Justin Warren as well, John Troyer, Lisa Martin. Great team, guys, amazing. Three days, a lot of content, wall-to-wall coverage. Double barrel shotgun of Cube content. Amazing. What's left in the tank? Let's get this done. Dave, your thoughts as VMworld comes down to a close. >> Well, so I missed VMworld last year as you know, 'cause I was doing another show. Pat was giving me a lot of grief for that. But if I go back two years ago, two years ago VMware was shrinking. Its license revenue was in decline. Its cloud strategy was in continued disarray. Customers were kind of, you know, losing a lot of faith. >> John: Ecosystem was in turmoil. >> And the world thought that Amazon was going to completely destroy this company. Fast forward two years later, license growth, you know, 12-13%, the company's growing. It's nearly eight billion dollars, three billion dollars of operating cash, big stock buybacks, clarity on the cloud and, I think, and I'd love for Keith's opinion on this, a recognition of the customers that "I can't just throw everything in the cloud." Okay, that's one thing, but what I can do is try to bring the cloud model to my data, and AW, I mean Amazon, sorry, VMware is going to be a partner in doing that. And I think those have all been tailwinds along with some product cycles and some >> John: And Dell Technologies buying out from the federation which was taking on water. Let's not forget. Let's not forget about the federation EMC owned VMware and that was bought by Dell. >> People talk about the Dell discount. I'm not seeing the Dell discount right now. >> What is a Dell discount? What does that mean? >> The Dell discount is because Dell owns VMware, just like when EMC owned VMware, it somehow shackles them and depresses the value. Michael obviously doesn't agree. >> So product focus as well has been not diminished at all. The products are front and center. They still got the sessions. Guys, on the product side, what's your view? >> Strong product offering. I really love the message they want. A lot of the response from the community was like, "Pat is feeling energized." He has this shadow of what is going to happen post-acquisition. Is there going to be a Dell discount? You know what? VMware, you know, famously, five years ago, Pat was onstage. He said he's going to double down on virtualization. He jettisoned Pivotal, and we were all wondering, "What is he doing?" Proved over the long run he was right. Last year, this year, he's doubled down, not on just virtualization, but on this concept of SDDC. And it's finally starting to pay off. We're seeing consistently this concept of VCF. VMware cloud foundation on premises, off prem, and even in AWS, ironically. You know, three or four years ago, we were like, well, is OpenStack going to eat VMware's lunch? VMware has turned the tables and become that OpenStack layer, that consistent cloud layer, at least for that legacy type of way to do IT. Taking your internal data center processes and moving them to the cloud consistently across their vCAN network in the AWS. >> So if I get this right, you're basically saying that VMware essentially went from a position where they're twisting in the wind at all levels, turmoil in every department, every, house is on fire, to pulling one major bold bet, grab it out of the hat, kicking ass, taking names, Pat Gelsinger and team made good calls. >> You know what, I'm not a fan of calling what VMware's SDDC thing a private cloud. I don't think it's true private cloud. It is valuable to the infrastructure, but it's not private cloud, but customers love the message. Take what I'm doing now, check an easy box, move it into AWS or vCAN and it's resonating. >> Well certainly, Stu just gave you the eye dagger, 'cause Stu, the true private cloud report from Wikibon, which has been going viral at the show, been the talk of the show, everyone has been talking about it, Wikibon's true private cloud report. People love that, too, because the message is simple, take care of business at home, called the on prem. Yeah, change the operating model, that's going to take some time. >> So, my thought on this is, for years, we were talking about the stack wars. Lately, we've been talking about the cloud wars, and for the last few years, when I talked to the partner ecosystem, they were shrinking their booths. They were looking for alternatives. Remember Cisco? Aw geez, flaying anything but VMware. Let's see if we can do this. You know, IBM who was a big VMware partner. Well, they got rid of X86. Where are they going to part with VMware? On and on, HPE going closer with Microsoft. Even Dell, pre-acquisition, how much deeper they going to go with Microsoft? Now, you know, John, we've been talking on theCUBE for a while. You know, there's Microsoft. Their stack, their partnerships, their application, where they're putting it. Amazon, huge elephant in the room, when they made the deal it was like, oh well, you know, Pat's on his way out the door, and he's kind of, you know, pulling one over on Dell before he leaves. Now, I think we understand a little bit better where this fits in that portfolio of the Dell family. Open source, still something we beat on Pat and EMC before that. They're not really open source. They've got a proprietary software alternative that their partners seem excited about. They've really fumbled around with their cloud strategy for a year. They've got one that seems to be going well. We'll see, 4,500 service provider partners, the Amazon thing. We will still see where revenue comes. >> Stu, that's a good point. Pat Gelsinger was kicking ass as a CEO now, but his channels on his job many times, so props to Pat. He made some good calls, stayed on course, held the line on the direction, did not cave at all, him and his team, they did it. There's been some turnover as we know in VMware. I'll see the results. I'll clear the scoreboard. They're winning. Question I'll put to you guys right now. Impact of Andy Jassy from AWS here on day one. How much of an impact was that? He made some statements. And the question I want to ask you, in addition to the impact, is he said, "This is not an optical deal." Most companies make optical illusional deals, make it look like they're all in, and they don't really deliver. So one, impact of Jassy being here and two, who was he talking about? >> Dave: Well >> Where's the Barney deal? >> Well, so okay, first thing is I saw, I've always seen that AWS deal from Andy Jassy's perspective as TAM expansion. Big part of a CEO's job is, I've got to expand my TAM, especially when you see the growth of AWS, and it's slowing down a little bit, even though it's still impressive. He's got to expand his TAM. Well, how does AWS do that? Look to 500,000 VMware customers. So that's number one. Barney deal? There are a lot of Barney deals out there. I mean, most... >> What are you referring to, 'cause Google came on the stage the next day. I was getting tweets saying "Azure?" Stu, guys, who's the deal? Who was Andy Jassy talking about when he was looking at the VMware customers saying, essentially, this is not, implying others are? >> I'm not sure that he was necessarily throwing shade at anyone specifically. What there was is there was 18 months from when this deal went through, a lot of work. This was a lot of engineering work. Talk to the cloud foundation team, talk to the VSAN team. The amount of work to actually integrate, because we know Amazon actually has an extensive engineering team. They hyper-optimize what they're doing, so this is not some white box that I just slapped VMware on and said the BIOS, you know, it works and everything where I still am a little concerned if I'm, you know, a VMware employee as customers, I talked to some customers that really excited about this, the Lighthouse customers. They say it's going to get my team that loves their vCenter. They love everything, it's going to help them move faster. Then, you're talking to, "Oh there's these services they're going to be able to use." I'm like well, how much are they going to realize oh hey, this is great, and the VMware sales reps are just going to get eaten by the lion while the customer goes off. >> And so the impact's big then, you're saying, but you won't answer the question of who he's referring to. You don't think he's referring to anyone. Keith, what do you think? >> Let's look at, I like the comment about how difficult the integration was. Last year when I read, it said something like, wait, hold on what, the AWS, who is notorious about controlling their message, what I thought was funny is that Andy didn't use the term private cloud, he didn't use the term VMware cloud, he, VMware infrastructure and AWS, which is a massive engineering effort. So from that, I question whether or not they could execute upon that, but Andy Jassy being onstage on Monday showed the commitment that we're going to make these other services work, the total addressable market of 500,000 additional customers. You don't do this for bare metal servers. >> John: VMware has 500,000 customers? >> Yeah. That's the total addressable market, but that's not where AWS is going to grow by halting physical servers, by selling more Lambda, selling more CDN, selling more PAS, is the key, and where VMware and AWS relationship his weak is in that true integration between the two hybrid IT environments. So when you say, "Where's the barney deals?" the barney deals are, I think it's across the industry. Unless you're getting fully in bed and committed to make that level of investment >> No but engineering resources, this comes back down to what, the new kind of engagement between biz dev deals look like. You need to have that kind of level. >> I have no problem pointing to the Nutanix Google deal, anything that people are doing with Azure, no one's partnered at this level. >> Okay, Azure is a good one too, because I've heard from startups that have been enticed by the dollars, 'cause Microsoft's been sprinkling some cash on, who have left to go back to AWS, because of technical reasons, reverse proxies, basically software clued just to basically make stuff work. >> Well, so, where do we, how much do we know about the IBM VMware relationship? Because I mean IBM's >> Pat brought it up today. >> Soft layer hosting, right? They've got a lot more experience with VMware, IBM has said, I think they're shipping, they've been shipping for quite some time. So there's an example of engineering that had already largely been done, that's actually delivering value for customers. Pat probably brought it up because it's a great distribution channel for him. And I think Keith's right on. AWS doesn't speak in terms of VMs. They talk in terms of cloud services, like Lambda, database services, middleware, PAS layers, that's really where they're going to hook people in this community into their platform. >> Okay, so here's a question to end the segment as we wrap up the show, because this is kind of where it's all going. To me, my big epiphany was the following. Andy Jassy, statesman, Harvard MBA, now CEO of AWS, ticking names, ticking this, huge accomplishments, he's done great in his career, he's only getting better. And then Sam Ramji, great developer chops, knows software ecosystems, not Andy Jassy in terms of the title, but in terms of status, still a solid guy. Two contrasting positions, running the biggest cloud today, to Google brainpower, okay? So you're looking at that and you're saying, "Hmm, where is this going to go?" So the question on the table is, what does it take for someone to be successful in today's IT environment? Does IT need to be smarter in business or does need to be more smarter in IT, or both, and does Google have enough IQ in IT to actually make the products fast enough or are they at risk? >> Well I'll take the customer point of view, and you know, we always talk about people, process, technology. The technology is maturing, and it's maturing pretty quickly, but maybe still not quite to the point where the true private cloud vision is where we need it to be, but what's going to slow that down is the people and process side is going to take a lot longer. Stu, you made a comment yesterday, VMware's moving at the pace of the CIO. >> It's Keith's line, he's been using all week. >> Okay, great line and Robin Matlock heard that today, course marketing CMO said, "And the CIO needs to move faster." (men laugh) Well guess what? They can't. I thought that was just a perfect testament >> But that is exactly the dilemma isn't it? >> It really is, and this stuff is hard. And cloud doesn't necessarily make it any easier, (laughs) if anything, it makes it more complex, 'cause it's a completely new business model. >> But remember the old term, forklift upgrade? Okay, you don't have forklift upgrades anymore, you have rip and replace, whatever word you want to use. >> Stu: Now we have lift and shift. >> Lift and shift, rip and replace, lift and shift. Is Google, and this is my challenge to Sam, I didn't have time to ask him this question, I'll certainly do one on one next time I see him. Is Google smart enough with IQ in IT, certainly we know they're smart enough, but do they have enough IQ in IT to really make the transformation, or are they betting on a rip and replace version of a cloud? >> So John, no doubt Google's smart, and they built amazing things that, the ripple that Google has through the industry is phenomenal. They spin off whole industries based on what they're doing. Google played a very different game than Amazon is, you know, when you talk to customers and how they're first getting onto Google, you know, data's really important, analytics of course. Couple of years ago Google was saying, "Oh, we're just going to be that data analytics cloud," now of course they're trying to be a big player. Amazon, the company, remember, Amazon isn't just AWS. Andy Jassy fits into Jeff Bazer's great plans. You know, I'd love to hear, when we go to reinvent, what's happening in Whole Foods that's impacted by AWS. They are everywhere, they are, you know, Walmart did. >> How about TAM expansion, my wife's checking Amazon even more. >> But this is really interesting right, because Walmart's now using its muscle to say, "Hey, you going to do business "with AWS" >> Absolutely >> "And Whole Foods? "You're not doing business with us." So the point being that digital business is allowing companies to traverse industries and now you're seeing it in really interesting competitive lashbacks. >> So Capital One was onstage, I say something that over the past couple of years been controversial, no one believes me, but I believe this is what needs to happen. Capital One claimed that it's a technology company, they're not a bank. Well I want to bank with a bank, that' a whole 'nother conversation. But technology is just a tool to get your job done, and just like we had bookkeepers that knew Excel and then eventually Excel just became a part of your toolkit. AI, I talked to Chuck Hollis of Oracle about this on the podcast the other day. AI is just going to be a business toolkit that a business user uses. To the question, business users will become smarter at using technology. The cloud providers that enables the business user to have the least amount of friction to use that technology, to solve business challenges will win. The question is, is that Google or Andy Jassy, who has done it with Amazon, or some other cloud provider that's eating their own dog food. >> Okay guys, let's wrap this up. Let's go around the table, one word, two words, how do you wrap up VMware's position vis a vis as they go forward? >> VMware's on fire, I think the data center's on fire, the ecosystem is reforming around the cloud. And there's a lot of momentum right now, I mean I'm wondering, okay, what's going to happen to derail this, but right now the fundamentals look very good. >> Relevant, John. >> Yeah. >> Cool and relevant again. It's right, you know, cool, we can all argue, you know, look, I like what I heard with Amazon, it was better than I was expecting coming in. You know, getting in there, they talked about serverless, they talked about edge computing, something I actually had a couple really good conversations ticking to, partners doing IoT, and customers looking at that. If they can be relevant, not just in the data center, but in the cloud, and even at the edge, VMware's going to have a good life going forward. >> Yeah, and I'll wrap it up, you stole my word relevant, so I'll say, I'll a little bit further than relevant, VMware is still the leader in enterprise infrastructure software. They're not letting that lead go. >> But just on that, the last thing, they're an infrastructure software company. I think they showed how they can be more than that in the future. >> And my take is, smart strategy playing out, now people are starting to realize the long game that Pat's been playing. It's showing up in the financial results, and there's clarity, and you can see the game playing out, you're starting to see there where they're going to position, so good job, guys, that's a wrap. Want to thank our sponsors. Without sponsors theCUBE would not be able to come for the three days of wall-to-wall coverage provided to the community. We get great support from the folks on Twitter, we get support from the folks who watch the videos, want to thank you for watching, and also the sponsors, VMware, Hewlett Packard Enterprises, Dell EMC, IBM, OVH, CenturyLink, Datrium, Densify, Druva, Hitachi, INFINIDAT, Kamarino, NetApp, Nutanix, Red Hat, Rackspace, Rubrik, Skytap, Veeam and Zadara Storage. Thanks to all the 20 sponsors that we can go out and bring our best stuff here. Really appreciate your support. Thanks for watching theCUBE. This is a wrap from VMworld, thanks guys, thanks everybody here, and that's a wrap for VMworld 2017, thanks for watching.

>> Announcer: From San Jose, California, it's The Cube, covering Big Data Silicon Valley 2017. >> Welcome back everyone. We are at Big Data Silicon Valley, running in conjunction with Strata + Hadoop World in San Jose. I'm George Gilbert and I'm joined by Raymie Stata, and Raymie was most recently CEO and Founder of Altiscale. Hadoop is a service vendor. One of the few out there, not part of one of the public clouds. And in keeping with all of the great work they've done, they got snapped up by SAP. So, Rami, since we haven't seen you, I think on The Cube since then, why don't you catch us up with all that, the good work that's gone on between you and SAP since then. >> Sure, so the acquisition closed back in September, so it's been about six months. And it's been a very busy six months. You know, there's just a lot of blocking and tackling that needs to happen. So, you know, getting people on board. Getting new laptops, all that good stuff. But certainly a huge effort for us was to open up a data center in Europe. We've long had demand to have that European presence, both because I think there's a lot of interest over in Europe itself, but also large, multi-national companies based in the US, you know, it's important for them to have that European presence as well. So, it was a natural thing to do as part of SAP, so kind of first order of business was to expand over into Europe. So that was a big exercise. We've actually had some good traction on the sales side, right, so we're getting new customers, larger customers, more demanding customers, which has been a good challenge too. >> So let's pause for a minute on, sort of unpack for folks, what Altiscale offered, the core services. >> Sure. >> That were, you know, here in the US, and now you've extended to Europe. >> Right. So our core platform is kind of Hadoop, Hive, and Spark, you know, as a service in the cloud. And so we would offer HDFS and YARN for Hadoop. Spark and Hive kind of well-integrated. And we would offer that as a cloud service. So you would just, you know, get an account, login, you know, store stuff in HDFS, run your Spark programs, and the way we encourage people to think about it is, I think very often vendors have trained folks in the big data space to think about nodes. You know, how many nodes am I going to get? What kind of nodes am I going to get? And the way we really force people to think twice about Hadoop and what Hadoop as a service means is, you know, they don't, why are you asking that? You don't need to know about nodes. Just store stuff, run your jobs. We worry about nodes. And that, you know, once people kind of understood, you know, just how much complexity that takes out of their lives and how that just enables them to truly focus on using these technologies to get business value, rather that operating them. You know, there's that aha moment in the sales cycle, where people say yeah, that's what I want. I want Hadoop as a service. So that's been our value proposition from the beginning. And it's remained quite constant, and even coming into SAP that's not changing, you know, one bit. >> So, just to be clear then, it's like a lot of the operational responsibilities sort of, you took control over, so that when you say, like don't worry about nodes, it's customer pours x amount of data into storage, which in your case would be HDFS, and then compute is independent of that. They need, you spin up however many, or however much capacity they need, with Spark for instance, to process it, or Hive. Okay, so. >> And all on demand. >> Yeah so it sounds like it's, how close to like the Big Query or Athena services, Athena on AWS or Big Query on Google? Where you're not aware of any servers, either for storage or for compute? >> Yeah I think that's a very good comparable. It's very much like Athena and Big Query where you just store stuff in tables and you issue queries and you don't worry about how much compute, you know, and managing it. I think, by throwing, you know, Spark in the equation, and YARN more generally, right, we can handle a broader range of these cases. So, for example, you don't have to store data in tables, you can store them into HDFS files which is good for processing log data, for example. And with Spark, for example, you have access to a lot of machine learning algorithms that are a little bit harder to run in the context of, say, Athena. So I think it's the same model, in terms of, it's fully operated for you. But a broader platform in terms of its capabilities. >> Okay, so now let's talk about what SAP brought to the table and how that changed the use cases that were appropriate for Altiscale. You know, starting at the data layer. >> Yeah, so, I think the, certainly the, from the business perspective, SAP brings a large, very engaged customer base that, you know, is eager to embrace, kind of a data-driven mindset and culture and is looking for a partner to help them do that, right. And so that's been great to be in that environment. SAP has a number of additional technologies that we've been integrating into the Altiscale offering. So one of them is Vora, which is kind of an interactive sequel engine, it also has time series capabilities and graph capabilities and search capabilities. So it has a lot of additive capabilities, if you will, to what we have at Altiscale. And it also integrates very deeply into HANA itself. And so we now have that for a technology available as a service at Altiscale. >> Let me make sure, so that everyone understands, and so I understand too, is that so you can issue queries from HANA and they can, you know, beyond just simple sequel queries, they can handle the time series, and predictive analytics, and access data sort of seamlessly that's in Hadoop, or can it go the other way as well? >> It's both ways. So you can, you know, from HANA you can essentially federate out into Vora. And through that access data that's in a Hadoop cluster. But it's also the other way around. A lot of times there's an analyst who really lives in the big data world, right, they're in the Hadoop world, but they want to join in data that's sitting in a HANA database, you know. Might be dimensions in a warehouse or, you know, customer details even in a transactional system. And so, you know, that Hadoop-based analyst now has access to data that's out in those HANA databases. >> Do you have some Lighthouse accounts that are working with this already? >> Yes, we do. (laughter) >> Yes we do, okay. I guess that was the diplomatic way of saying yes. But no comment. Alright, so tell us more about SAPs big data stack today and how that might evolve. >> Yeah, of course now, especially that now we've got the Spark, Hadoop, Hive offering that we have. And then four sitting on top of that. There's an offering called Predictive Analytics, which is Spark-based predictive analytics. >> Is that something that came from you, or is that, >> That's an SAP thing, so this is what's been great about the acquisition is that SAP does have a lot of technologies that we can now integrate. And it brings new capabilities to our customer base. So those three are kind of pretty key. And then there's something called Data Services as well, which allows us to move data easily in and out of, you know, HANA and other data stores. >> Is it, is this ability to federate queries between Hadoop and HANA and then migration of the data between the stores, does that, has that changed the economics of how much data people, SAP customers, maintain and sort of what types of apps they can build on it now that they might, it's economically feasible to store a lot more data. >> Well, yes and no. I think the context of Altiscale, both before and after the acquisition is very often there's, what you might call a big data source, right. It could be your web logs, it could be some IOT generated log data, it could be social media streams. You know, this is data that's, you know, doesn't have a lot of structure coming in. It's fairly voluminous. It doesn't, very naturally, go into a sequel database, and that's kind of the sweet spot for the big data technologies like Hadoop and Spark. So, those datas come into your big data environment. You can transform it, you can do some data quality on it. And then you can eventually stage it out into something like HANA data mart, where it, you know, to make it available for reporting. But obviously there's stuff that you can do on the larger dataset in Hadoop as well. So, in a way, yes, you can now tame, if you will, those huge data sources that, you know, weren't practical to put into HANA databasing. >> If you were to prioritize, in the context of, sort of, the applications SAP focuses on, would you be, sort of, with the highest priority use case be IOT related stuff, where, you know, it was just prohibitive to put it in HANA since it's mostly in memory. But, you know, SAP is exposed to tons of that type of data, which would seem to most naturally have an afinity to Altiscale. >> Yeah, so, I mean, IOT is a big initiative. And is a great use case for big data. But, you know, financial-to-financial services industry, as another example, is fairly down the path using Hadoop technologies for many different use cases. And so, that's also an opportunity for us. >> So, let me pop back up, you know, before we have to wrap. With Altiscale as part of the SAP portfolio, have the two companies sort of gone to customers with a more, with more transformational options, that, you know, you'll sell together? >> Yeah, we have. In fact, Altiscale actually is no longer called Altiscale, right? We're part of a portfolio of products, you know, known as the SAP Cloud Platform. So, you know, under the cloud platform we're the big data services. The SAP Cloud Platform is all about business transformation. And business innovation. And so, we bring to that portfolio the ability to now bring the types of data sources that I've just discussed, you know, to bear on these transformative efforts. And so, you know, we fit into some momentum SAP already has, right, to help companies drive change. >> Okay. So, along those lines, which might be, I mean, we know the financial services has done a lot of work with, and I guess telcos as well, what are some of the other verticals that look like they're primed to fall, you know, with this type of transformational network? >> So you mentioned one, which I kind of call manufacturing, right, and there tends to be two kind of different use cases there. One of them I call kind of the shop floor thing. Where you're collecting a lot of sensor data, you know, out of a manufacturing facility with the goal of increasing yield. So you've got the shop floor. And then you've got the, I think, more commonly discussed measuring stuff out in the field. You've got a product, you know, out in the field. Bringing the telemetry back. Doing things like predictive meetings. So, I think manufacturing is a big sector ready to go for big data. And healthcare is another one. You know, people pulling together electronic medical records, you know trying to combine that with clinical outcomes, and I think the big focus there is to drive towards, kind of, outcome-based models, even on the payment side. And big data is really valuable to drive and assess, you know, kind of outcomes in an aggregate way. >> Okay. We're going to have to leave it on that note. But we will tune back in at I guess Sapphire or TechEd, whichever of the SAP shows is coming up next to get an update. >> Sapphire's next. Then TechEd. >> Okay. With that, this is George Gilbert, and Raymie Stata. We will be back in few moments with another segment. We're here at Big Data Silicon Valley. Running in conjunction with Strata + Hadoop World. Stay tuned, we'll be right back.