(upbeat music) >> Okay, welcome back everyone. The cube coverage of AWS re:Mars, 2022. I'm John Furrier, host of theCUBE. We got Eric Foellmer, vice president of marketing at Boston Dynamics. Famous for Spot. We all know, we've seen the videos, zillion views. Mega views all over the internet. The dog robotics, it's famous. Rolls over, bounces up and down. I mean, how many TikTok videos are out there? Probably a ton. >> Oh, Spot is- Spot is world famous (John laughs) at this point, right? So it's the dance videos, and all the application videos that we have out there. Spot is become has become world famous. >> Eric, thanks for joining us on theCUBE here at re:Mars. This show really is back. There was still a pandemic hiatus there. But it's not a part of the re's. It's re Mars, reinforcement of security, and then reinvent the flagship show for AWS. But this show is different. It brings together a lot of disciplines. But it's converging in on what we see as the next general- Industrial space is a big poster child for that. Obviously in space, it's highly industrial, highly secure. Machine learning's powering all the devices. You guys have been in this, I mean a leader, in a robotics area. What's this show about? I mean, what's really happening here. What if you had to boil the essence of the top story of what's happening here? What would it be? >> So the way that I look at this show is it really is a convergence of innovation. Like this is really just the cutting edge of the innovation that's really happening throughout robotics, but throughout technology in general. And you know, part of this cultural shift will be to adopt these types of technologies in our everyday life. And I think if you ask any technology specialist here or any innovator here or entrepreneur. They'll tell you that they want their technologies to become ubiquitous in society, right? I mean, that's really what everyone is sort of driving towards from the perspective of- >> And we, and we got some company behind it. Look at this. >> Oh, there we go. >> All right. >> There's a (Eric laughs) There's one of our Spots. >> It's got one of those back there. All right so sorry to interrupt, got a little distracted by the beautiful thing there. >> So they're literally walking around and literally engulfing the show. So when I look at the show, that's what I see. >> Let's see the picture of- >> I see the future of technology. >> Get a camera on our photo bomb here going on. Get a photo bomb action. (Eric chuckles) It's just super exciting because it really, it humanizes, it makes you- Everyone loves dogs. And, you know, I mean, people have more empathy if you kicked Spot than, you know, a human. Because there's so much empathy for just the innovation. But let's get into the innovation because let's- The IOT tech scene has been slow. Cloud computing Amazon web services, the leader hyper scaler. They dominated the back office you know, data centers, all the servers, digital transformation. Now that's coming to the edge. Where robotics is now in play. Space, material handling, devices for helping people who are sick or in healthcare. >> Eric: Mhm. >> So a whole surge of revolutionary or transitionary technologies coming. What's your take on that? >> So I think, you know, data has become the driving force behind technology innovation. And so robotics are an enabler for the tech, for the data collection that is going to drive IOT and manufacturing 4.0 and other important edge related and, you know, futuristic technology innovations, right? So the driver of all of that is data. And so robots like Spot are collectors of data. And so instead of trying to retrofit a manufacturing plant, you know, with 30, 40, 50 year old equipment in some cases. With IOT sensors and, you know, fixed sensors throughout the network. We're bringing the sensors to the equipment in the form of an agile mobile robot that brings that technology forward and is able to assess. >> So explain that a little slower for me. So the one method would be retrofitting all the devices. Or the hardware currently installed. >> Eric: Sure. >> Versus almost like having a mobile unit next to it, kind of thing. Or- >> Right. So, I mean, if you're looking at antiquated equipment which is what most, you know, manufacturing plants are running off of. It's not really practical or feasible to update them with fixed sensors. So sensors that specifically take measurements from that machine. So, we enable Spot with a variety of sensors from audio sensors to listen for audio anomalies. Thermal detectors, to look for thermal hotspots in equipment. Or visual detectors, where it's reading analog gauges, that sort of thing. So by doing that, we are bringing the sensors to the machines. >> Yeah. >> And to be able to walk anywhere where a human can walk throughout a manufacturing plant. To inspect the equipment, take that reading. And then most importantly upload that to the cloud, to the users >> It's a service dog. >> you can apply some- >> It's a service dog. >> It really is. And it serves data for the understanding of how that equipment is operated. >> This is big agility for the customer. Get that data, agile. Talk about the cost impact of that, just alone. What the alternative would be versus say, deploying that scenario. Because I'd imagine the time and cost would be huge. >> Well, if you think, you know, about how much manufacturing facilities put into the predictive maintenance and being able to forecast when their equipment needs maintenance. But also when pieces of equipment are going to fail. Unexpected downtime is one of the biggest money drains of any manufacturing facility. So the ability to be able to forecast and get some insight into when that equipment is starting to perform less than optimally and start to degrade. The ability to forecast that in advance is massive. >> Well I think you just win on just in retrofit cost alone, nevermind the downside scenarios of manufacturing problems. All right, let's zoom out. You guys have been pioneers for a long time. What's changed in your mind now versus just a few years ago. I mean, look at even 5, 10 years ago. The evolution, cost and capability. What's changed the most? >> Yeah, I think the accessibility of robots has really changed. And we're just on the beginning stages of that evolution. We really are. We're at the precipice right now of robots becoming much more ubiquitous in people's lives. And that's really our foundation as a company. Is we really want to bring robots to mankind for the good of humanity, right? So if you think about, you know, taking humans out of harm's way. Or, you know, putting robots in situations where, you know, where it's assessing damage for a building, for example, right. You're taking people out of the, out of that harm's way and really standardizing what you're able to do with technology. So we see it as really being on the very entry point of having not only robotics, but technology in general to become much more prevalent in people's lives. >> Yeah. >> I mean, what, you know. 30 years ago, did you ever think that you would have the power of a supercomputer in your pocket to, you know. Which also happens to allow you to talk to people but it is so much more, right? So the power of a cell phone has changed our lives forever. >> A computer that happens to be a phone. You know, it's like, come on. >> Right. >> What's going on with that. >> That's almost secondary at this point. (John laughing) It really is. So, I mean, when you think about that transition from you know, I think we're at the cusp of that right now. We're at the beginning stages of it. And it's really, it's an exciting time to be part of this. An entire industry. >> Before I get your views on integration and scale. Because that's the next level. We're seeing a lot of action and growth. Talk about the use case. You've mentioned a few of them, take people out of harms way. What have you guys seen as use cases within Boston Dynamics customer base and or your partner network around use cases. That either you knew would happen, or ones that might have surprised you? >> Yeah. One of the biggest use cases for us right now is what we're demonstrating here at re:MARS. Which is the ability to walk through a manufacturing plant and collect data off various pieces of equipment. Whether that's pump or a gauge or seeing whether a valve is open or closed. These are all simple mundane tasks that people are, that manufacturers are having difficulty finding people to be able to perform. So the ability for a robot to go over and do that and standardize that process is really valuable. As companies are trying to collect that data in a consistent way. So that's one of the most prevalent use cases that we're seeing right now. And certainly also in cases where, you know, Spot is going into buildings that have been structurally damaged. Or, you know, assessing situations where we don't want people to be in harm's way. >> John: Yeah. >> You know- >> Bomb scares, or any kind of situation with police or, you know, threatening or danger situations. >> Sure. And fire departments as well. I mean, fire departments are becoming a huge, you know, a huge user of the robots themselves. Fire department in New York recently just adopted some of our robots as well. For that purpose, for search and rescue applications. >> Yeah. Go in, go see what's in there. See what's around the corner. It gives a very tactical edge capability for say the firefighter or law enforcement. I see that- I see the military applications must be really insane. >> Sure. From a search and rescue perspective. Absolutely. I mean, Spot helps you put eyes on situations that will allow a human to be operating at a safe distance. So it's really a great value for protecting human life and making sure that people stay out of harm's way. >> Well Eric, I really appreciate you coming on theCUBE and sharing your insight. One other question I'd like to ask if you don't mind is, you know. The one of the things I see next to your booth is the university piece. And then you see the Amazon, you know, material management. I don't know what to call it, but it's pretty impressive. And then I saw some of the demos on the keynotes. Looking at the scale of synthetic data. Just it's mind blowing what's going on in manufacturing. Amazon is pretty state of the art. I'm sure there are a customer of yours already. But they look complex these manufacturing sites. I mean, it looks like a maze. So how do you... I mean, I could see the consequences of something breaking, to be catastrophic. Because it's almost like, it's so integrated. Is this where you guys see success and how do these manufacturers deal with this? What's the... Is it like one big OS? >> Yeah, so the robots, because the robots are able to act independently. They can traverse difficult terrain and collect data on their own. And then, you know, what happens to that data afterwards is really up to the manufacturing. It can be delivered from the cloud and you can, it can be delivered via the edge. You know, edge devices and really that's where some of the exciting work is being done right now. Because that's where data can scale. And that's where robot deployments can scale as well, right? So you've got instead of a single robot. Now you have an operator deploying multiple robots. Monitoring, controlling, and assessing the data from multiple robots throughout a facility. And it really helps to scale that investment. >> All right, final question for you. This is personal question. Okay, I know- Saw your booth over there. And you have a lot of fan base. Spot's got a huge fan base. What are some of the crazy things that these nerd fans do? I mean, everyone get selfies with the Spot. They want to- I jump over the fence. I see, "Don't touch the dog." signs everywhere. The fan base is off the charts. What are the crazy things that people do to get either access to it. There's probably, been probably some theft, probably. Attempts, or selfies. Share some funny stories. >> I'll say this. My team is responsible for fielding a lot of the inbound inquiries that we get. Much of which comes from the entertainment industry. And as you've seen Spot has been featured in some really prominent, you know, entertainment pieces. You know, we were in that Super Bowl ad with Sam Adams. We were on Jimmy Kimmel, you know, during the Super Bowl time period. So the amount of entertainment... >> Value >> Pitches. Or the amount of entertainment value is immeasurable. But the number of pitches that we turn down is staggering. And when you can think about how most companies would probably pull out all the stops to take, you know. To be able to execute half the things that we're just, from a time perspective, from a resource perspective >> Okay, so Spots an A- not always able to do. >> So Spots an A-lister, I get that. Is there a B-lister now? I mean, that sounds like there's a market developing for Spot two. Is there a Spot two? The B player coming in? Understudy? >> So, I mean, Spot is always evolving. I think, you know, the physical- the physical statue that you see of Spot right now, Is where we're going to be in terms of the hardware, but we continue to move the robot forward. It becomes more and more advanced and more and more capable to do more and more things for people. So. >> All right. Well, we'll roll some B roll on this, on theCUBE. Thanks for coming on theCUBE. Really appreciate it. Boston Dynamics here in theCUBE, famous for Spot. And then here, the show packed here in re:MARS featuring, you know, robotics. It's a big feature hall. It's a set piece here in the show floor. And of course theCUBE's covering it. Thanks for watching. More coverage. I'm John Furrier, your host. After the short break. (upbeat music)

>> Announcer: Live from San Francisco, celebrating 10 years of high-tech coverage, it's theCUBE, covering VMworld 2019. Brought to you by VMware and its ecosystem partners. >> Welcome back to Moscone here. We're at San Francisco VMworld 2019. I'm John Walls, along with Stu Miniman, here on theCUBE. Thanks for joining us here for our first of three days of coverage here at a very exciting program. I was just blown away by the keynotes this morning. We'll talk about that with Beth Phalen and Rajiv Ramaswami here. Beth is president and GM of data protection at Dell EMC, and Rajiv, of course, the chief operating officer at VMware. So thanks to you both for joining us. >> Good to be here, yeah. >> John: Good to see you both. >> Glad to be here. >> So first off, let's just talk about, if you will, the vibe of the keynotes. Pat, great command of the stage, obviously. Lot of big announcements. But I was just, I thought the whole presentation and the size of the crowd and their reactions were fairly impressive. What was your take on that? >> I totally agree. Being in the audience, it was comprehensive, it was holistic, it told a story that people could connect with, and it recognized just how much the world of IT is changing, and what VMware is doing in influencing that. I was impressed. >> Yeah, no, no, from my vantage point of view, being on the inside here-- >> Yeah. >> It's, yeah, our portfolio continues to get broader and broader. Our relevance to customers keeps getting bigger. And this year in particular, we had a whole series of announcements here. There were two major acquisitions, our largest two acquisitions, over the last week. So there was a lot to digest. And in fact, we were actually working on putting that story together at the very last minute, as you can imagine, because these acquisitions were literally announced on Thursday. (Beth laughs) So a lot came together, it came together beautifully. I thought Pat did a great job putting it all together and giving the story. >> Yeah, I know, the Pivotal, obviously, everybody went 10 days ago, two weeks ago, saying, "It can't happen that fast, can it?" Well, the answer is yes, it can happen that fast. >> Rajiv: Let me give you one more story there. >> Yes, yes. >> You might remember Callum Eade was on stage. He was the guy who swam across the English Channel-- >> Beth: Mm-hm? >> At the very beginning. So just to tell you how last-minute that was, he finished his swim, I talked to him on Friday morning, and then I went to Pat and said, "Pat, you know, one of our guys "actually swam across the English Channel." (Beth laughs) He said, "Yeah, we should have him ontage at VMworld." (Beth and John laugh) >> So we flew him over over the weekend-- >> Wow, wow. >> Here, got him to Vmworld, and there he was onstage. >> (laughs) Oh, man, that's impressive. >> Yeah, yeah. >> It was a great story. It was a good call to bring him in. >> Yes, yes. >> Yeah. >> All right, so obviously, you have this strong partnership that got a little stronger with some announcements today. >> Rajiv: Yeah. >> So let's get into that a little bit. Beth, if you would, talk a little bit about what you announced on stage, or what was announced onstage today. >> Yeah, I mean, there are three things that we're talking about this week, with our good partners at VMware. How we make sure that we have data protection for the Dell EMC cloud, for the VMware Cloud, excuse me, on Dell EMC. Previewing what we're doing to protect Kubernetes environments, which is super exciting. And then the project we talked about just quickly on stage this morning, around how we're doing work together to bring PowerProtect into, as tight as possible, to the best integration for vSphere and our VMware customers. So, Rajiv, anything that I missed, or-- >> Yeah, no, no, at the big-picture level, look, I mean, you've had a long history in data protection solutions. You modernized your portfolio quite a bit over the last year-- >> Beth: Yeah. >> With the introduction of the new X400 appliances and the IDPA PowerProtect software. >> Beth: Yeah. >> And we've been talking together for a while now about, what can we be doing together better? >> Beth: Mm-hm. >> And this just came across, you know, we've been working on this together, and now we have specific things to talk about. So on the first one, which is really data protection for VMware Cloud, now, VMware Cloud on AWS, one of the first use cases, important use cases, is actually around disaster recovery. So customers want to use the cloud or the data as a backup for a DR site. And very cost-effective to do that, it makes a lot of sense. Now, we've been working to continue and improve that solution, and making it much more broadly applicable, making use of native cloud storage capabilities. For example, Amazon S3. And so, that's really the collaboration that we are doing with Beth's team here, where we're using their underlying technology to build a VMware data disaster recovery as a service that will work on our VMware Cloud environments and make use of native cloud storage capabilities. So, very powerful, brings a lot of value for our customers together. >> John: Yeah. >> And I think that everybody watching probably understands just how important it is to have a DR site, but for many companies, it's cost-prohibitive and really old-school to think about having a dedicated DR site. So using the cloud as your destination, if something were to happen, you had to recover, it is an excellent fit, and I expect it to be one of the fastest-growing use cases. We're already seeing it. It's going to continue to grow dramatically going forward, having DR as a service as a core to people's recovery strategy. >> Yeah, Rajiv, one of the things we've been watching is, VMware's always had a robust ecosystem, but it's been going through a major shift. >> Rajiv: Yes. >> You know, VMware kind of at the center, and the server, storage, and network around it to where everything fits in the multi-cloud environment. When we see data protection with VMware Cloud on Dell EMC, it's obviously a natural fit, because it's under there. What do you talk to your partners about when you say, "Okay, the Dell side of things is getting "further embedded into VMware"? How do you make sure that you have an open and robust ecosystem without unbalancing that? >> That's a great question. VMware has always prided itself on being a platform company, and you're only a platform company if you actually have a broad ecosystem of people who are building and developing on your platform. >> Stu: True. >> So we are not walking away from that one little bit. We continue to support a very broad-based set of providers across many different functions, whether it be data protection, whether it be security, whether it be compliance, you know, a whole bunch of things around the platform. What we will do, though, is we will pick a set of partners, and we will do deeper integrations with them, right? We are always going to have broad APIs available for everybody. Just as another example with Carbon Black that you saw today, yeah, we had actually partnered with Carbon Black on a deep integration between Carbon Black and AppDefense, okay? But at the same time, we have open APIs with every Guest Introspection provided that there is, and we will continue to maintain that, with every endpoint provided that there is. It's much the same way here. We're going to do deep integration with Beth's team. We are actually using some of their technologies to enhance our services, but also enabling them to do better integration with vSphere and the whole VMware environment, while at the same time allowing a rich ecosystem of third-party providers to work with us on top of our platforms. >> Yeah. >> Yeah. >> Beth, was wondering if you could help us dig in a little bit to that Kubernetes space. >> Beth: Mm-hm. >> So, obviously, a big presence here at the show, you know, Prevalent talked in the keynote. When I walked the show floor, everybody's talking about Kubernetes. >> Beth: Mm-hm, mm-hm. >> So from the data protection standpoint, what's been done to more into that environment? What's different that people might not have known from your group from just a couple of years ago? >> Yeah, a couple of things. One, we've been working on this jointly with Jon Rose's organization and doing an incubation on this for well over a year, and working with Velero, making sure that everything we're doing is tied very closely with what's going on at VMware. And as you start talking about the container space, what you're saying with data protection, it's a different set of assets that you need to protect. You have to make sure that you're protecting the metadata, you have to bring up the whole environment. And so it's sort of a variation on a theme, and what we're particularly proud of is that we're approaching it in a way that's really ground-up and designing data protection, not retrofitting the past, but what are the needs for a Kubernetes environment, and make sure that they can restore that, come back to whatever data they need to do and whatever applications they need to get back to. >> Beth, you talked about Velero, too. I mean, so, what you're talking about, how does that enhance or how is that adding to the data protection capabilities of that, then? What are you building on, in terms of enhanced services there? >> Well, I think, what I understand about the project, I'd like to hear your point of view too, is as Velero builds out and working on the Kubernetes environment, it becomes the center for people's production environment, right? And as you move into a production environment, data protection becomes an essential part of that. So whereas a couple of years ago, Kubernetes might have been something that people were dabbling with, or maybe had not their most important applications running on, it's now becoming center and core. And so, what we're doing, working with VMware, is making sure that directly integrated into that, the UCS has that need around backup, disaster recovery, and all types of RRTO and RPOs are all met, even though now the application's being run in a Kubernetes environment. >> Sort of the conversation around, as we talked about Tanzu, VMware Tanzu-- >> Yeah. >> Which is in our portfolio. >> It's a great name, by the way. >> Thank you. (Beth and John laugh) So the portfolio, the idea here is you're going to have build, run, and manage, and when you look at the manage component of this, it's not just that every service is going to be developed by VMware. There's going to be a set of third-party services that run on top of this platform that will do functions like backup, disaster recovery, for Kubernetes clusters. And my anticipation is that Dell would be a second party, third party on that environment as part of the overall Tanzu portfolio, as a marketplace-type service. >> Beth: Yep, that's what we're working towards. >> Yeah. >> Yeah, just following up on that Tanzu, VMware has mostly been a platform, an infrastructure layer for applications-- >> That's correct. >> You know, Pivotal was the group that really dealt with the modern. >> Rajiv: Yes. >> But you've made some acquisitions. Data protection's always had that integration with the application. What's changing now that requires Dell and VMware to kind of delve upstack a little bit more than it might have in the past? >> For us it's very simple, as Pat already articulated. The world is moving to where it's all about how to build and manage your applications portfolio. That's become a CIO's top job. And so, for us to be relevant to that space, infrastructure companies naturally need to move up-- >> Mm-hm. >> Address the needs of application developers, and while at the same time the application developers need the infrastructure teams to deliver the infrastructure that they can easily build around and manage these apps without having to do it all themselves. So that's really, the bringing together of the developers and the IT operators is what we are doing. And that's the rationale for why we brought Pivotal in-house, and why we are building this overall Tanzu portfolio. >> It's kind of what goes around, comes around, right? >> Absolutely. Well, as Pat explained, right? >> Right. >> You know, six, seven years ago, we weren't really in a position to focus on it. >> Right. >> And it made sense to have Pivotal stand alone-- >> John: The time was right. >> And they invested, they built up their franchise over time, and here we are. The time is right. >> Right, Rajiv, Beth, thank you. I appreciate the time, good to see you. >> Beth: Great discussion. >> Congratulations on day one! Off to a great start, and-- >> Not over yet. (Rajiv and Beth laugh) >> (laughs) Oh, I know, I know, and nor for us. But a great start. >> Thank you so much. >> Thank you, sir, good to see you both. >> Yeah, yeah. >> Beth, always a pleasure. >> Yes. >> Thanks for being with us once again. >> Thank you. >> Oh, sorry, (laughs) sorry. >> With more live from theCUBE, you're watching theCUBE's coverage of VMworld 2019. (upbeat electronic music)

>> Presenter: Live from Las Vegas it's theCUBE covering HPE Discover 2017, brought to you by Hewlett Packard Enterprise. (light techno music) >> Okay welcome back everyone we are here live in Las Vegas for HP Discover 2017. This is SiliconANGLE's, theCUBE is our flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier, the co-founder and co-CEO of SiliconANGLE with my co-founder and co-CEO Dave Vellante with Wikibon, and our next guest is Alain Andreoli, who's the Senior Vice and President General Manager of the DCIG, the Data Center Infrastructure Group at HPE. Great to see you, welcome back to theCUBE. >> Thank you, it's a pleasure to be here again. >> Great show, you guys have a lot of great innovations. Notable was the analyst press conference that we were at. You were feeling all the questions, the buzz around Gen10 and all the action you guys are putting inside the new service from security to all the innovation that's happening, pretty great opportunity and the true private cloud numbers coming out of Wikibon are showing fastest growth is cloud on-prem. This points to significant opportunities, your thoughts? >> Yeah, well, the need for compute is clearly growing and you continue to grow forever. What we see is that the compute points are also expanding so it can be on-prem, it can be off-prem, it can be in the edge, and on-prem there is a bit of a revolution which is coming from the experience of the public cloud, and so, private clouds are becoming very, very fancy. So you see on-prem compute basically turning into two families, very specialized for high-performance computing, for mission-critical, for AI, and others. The things that are really, very critical to the business. And then for all the other workloads, they need flexibility like a public cloud but on-prem because they can keep control, they want to mimic the agility and they want to have the same economic level. So we are playing on both fronts, we are doing very well on the specialized front with HPC Acquisitions of HDI and so on, and we are making a breakthrough on the private cloud with Synergy and soon with the new stack. >> So the whole notion of DevOps and cloud have opened up the doors and certainly you guys have been very clear with the simplicity message. Big data is big part of the application process, cloud providers, multiple clouds, so this right mix conversation-- >> Alain: The right mix, the right mix >> Is what Meg is putting out their is a nice message, and what you're saying is "hey the on-prem is not going "anywhere and we have the data to prove it." But you look at the big clients, they want the control. What is the conversation that you're having when you say, "Hey I need more capabilities," obviously high-performance computing, powering AI, and machine-learning, we're seeing, obviously those things. But from the business model side, what are the customers asking from you for solutions? What are the key things they want from HPE right now? What is that-- >> In terms of economic control? >> Solutions that are top priorities. When they sit down and say, "Well, you know, I need more compute." Okay, what does than mean? What specifically are you building for customers to help them with the digital transformation, to simplify the business model of on-prem with cloud and to deal with the multi-cloud world. >> So, they believe that the management of the mix between the different alternatives that they have right now with, certainly, a complexity and they rely on us to take this complexity away. So we are very bullish about the project New Stack because we think that this will allow data to be managed across the different horizons in the data center, across multiclouds and with more and more data being created and eventually computed at the edge. So these three horizons together make intelligent distributed computing, which will be more self-tuning, which will be extreme data analytics, and ultimately, this will allow customers to manage data seamlessly across everything. We think that this is kind of strategically where our customers want to be. Then the way they get there depends. Some customers have a view, which is just modernization of what they have right now. Some of the customers want to be more dramatic and run everything they have as if it was a seamless cloud, and then they have to decide the mix between on-prem and on-prem. Most of the customers, I was looking at what is actually making the public cloud. More than 50% are born from the cloud, they are people who never had the data center and may never have one until they grow up because then when they grow up, they need one. >> John: (chuckles) For control? >> What we have learned, for control-- >> John: And expense-- >> Dave: The Cloud Cliff. >> Expense, That's The Cloud Cliff. So, more than half of the public cloud customers never had a data center. About 15%, 15, 16% of the customers of the public cloud are consumers. And then, you have a small third which are enterprises. That's the first thing to realize, right? That the move of the enterprise is still pretty small. I was discussing with the largest systems integrator in Germany yesterday, and their view is the German perspective, because here in the US we have a tendency to believe that everything is public cloud or will be. The German view is totally different, for instance. So, I think, you know, we have gone through a cycle which has been public-cloud-heavy in terms of marcom where the market believed that public cloud was going to be everything, and we are now landing in a reality zone where this mix is an opportunity for the customers. They have some trivial workloads that can go on the public cloud, but we see that on-prem remains, basically, what people are doing. >> That last point's really important because even though you said, "Well, less than maybe a third is enterprises "in the public cloud," if you look and feel the workloads that are going to the public cloud, it's not the core of enterprise IT workloads. >> So what I believe is that we are thinking it the wrong way when we think in public cloud and which workload goes there. The workloads are not going to the public cloud. It's that a lot of the workloads that used to be run on-prem are now coming from the cloud, SaaS-- >> John: Right. >> That's different, that is very different. So, customers are not deciding what is on-prem, off-prem, they are now looking at software packages that come from the cloud, like Salesforce, or others. And this means that while they're running their data center as vital applications that don't come from the cloud, so it's more and more specialized, and then they have a variety of applications that don't come from the cloud, that they will run on their public cloud. This is why I see these two topologies, if you want, of specialized-- >> John: Yeah. >> Super compute and data-centric, and then, very fluid, and this where Synergy plays so well, because Synergy allows this fluidity-- >> John: Yeah. >> Of pools of resources, and you can basically adjust to the various applications that you have. >> Oh, this is classic early adopter kind of behavior, you mentioned the SaaS coming in and being influenced because they're easy to get into right? You can get some subscription and get some value, but then I think the true private cloud is interesting to me because what it really shows, to extend your point, is that the business models are changing for the agility piece, that's the DevOps. So, as you see IT consumption changing to cloud-like, or true private cloud-- >> Dave: Yep, yep, yep, yep. >> Essentially, that is an OPEX business model. So, the business transformation is now where the rubber hits the road for what digital is. So to me, we see this dynamic so with that being said, what aspects of HP taking advantage of? You mention Synergy, what else do you guys have cookin' up? What's out there that customers are using to turn the knob and go faster on the acceleration on that? >> With customers, I wouldn't like us to look at customers only as being enterprises, because as more and more business is being generated from the cloud, people who do business from the cloud, whether they are enterprise service providers, or software providers, or business born from the cloud, these people also acquire technology, and they have need for services, and they require infrastructure. So, this is a segment of the market where we're going to to double down in the future. So, we are looking, we call them, like, Tier 2, Tier 3's, because the very large ones have a tendency to try to build their own things-- >> John: Yeah, service providers-- >> But, a lot of other service providers and there are-- >> John: Cloud service providers. >> You know, a small third of the market also demand technology and support from us. So, we are going to expand our cloud line strategy. We are going to offer open systems, and be very aggressive there, both for compute, storage and for networking. So there are kind of two prevalent markets. If you want more, there is a market of completely open systems, we call them whiteboxes, you know, we call them for the cloud, Cloudline, which is now a multi-billion dollar business for us. And then you have the people who want products that offer a lot of value that are differentiated, like Synergy, like Proliant, like Blade Systems, like 3PAR, like Nimble, and so on, and obviously we are doubling down on these as well with our Acquisitions and own development like Gen10. >> So the narrative from Hewlett Packard Enterprise and all of your competitors is, you know, hybrid is the reality, fair enough-- >> Alain: That's for sure. >> And we agree, but there is an aspect of zero-sum game here in that the markets at the macro level are not growing like they used to. So, market share becomes very, very important. You've put up a slide in your keynote, 81 straight quarters of leadership. Now, we all know that you can play games with the numbers, but the most important metric we would argue is revenue share. If you're number one in revenue, that's the true market leadership. So you've had 81 straight quarters of leadership, as we've just defined leadership. That's 20 years. >> In this quarter, we had leadership, and next quarter I think we'll have leadership as well-- >> Dave: How have you been able to do that? >> We are not looking at market share for the sake of market share. We want to bring value to our customers and to our shareholders. So if there is, moving forward, a part of the market that does not yield value for either party, we may not want to measure our market share against that because we may not define this as being our own market. But so far, we are leading the overall market in compute. We are now a strong number two in storage, with the acquisition of Nimble, and we're happy to be there. But our strategy is not being number one for the sake of being number one. >> Now on Dave's point, I'm very critical on this, I've been readin' about it, and again I may be overstepping my boundaries here, but I believe that if we're going to a new era of modern computing, dull metrics don't apply because everybody seems to be number one at something. I go to so many shows where I go to Dave where I'm number one in this, I'm-- So, the question is if the old is shifting to a new model, and it's horizontally scalable, vertically specialized kind of a marketplace, which you guys are addressing with some of your tech, what are the metrics? So that we're asking ourselves the question, what should be the benchmark standard? >> So I have a strong point of view and I was discussing with an analyst last night, we had dinner, and I've had the same point of view for the last couple of years. The history of the market is to measure by product category: rack, towers, old flash arrays, disk arrays, mixed arrays, and so on. I think this is a rear mirror view, it doesn't matter. The decisions that customers are making are: what is my specialized computing? Which includes computing, storage, networking. What is my specialized data center, basically. What is my private cloud? Then what is my consumption of IT coming from service providers and therefore, you have the service provider market, which itself can be separated into different segments. That's the way to measure the business. So, I want to be leader in specialized compute. I want to be leader in private cloud because this is what enterprise will be consuming. And basically, we're already leaders there, but I want to be continue to be leader in providing gear to service providers, who have decided to rely on partners to build their data centers and not build them themselves. This makes sense, because then you look at the market differently, you're not looking at micro-territory-- >> John: I agree, I 100% agree with you. >> Density, optimized whatever, you're saying, okay, what is a service provider going to need in the future? What is going to be specialized computing in the future? What is going to be a private cloud in the future? Once you have covered that-- >> John: Yeah. >> What is going to be compute at the edge in the future? And what do you need to orchestrate all the data? These are the clusters of the market that matters. They are the ones we are pressuring and they are the ones-- >> And you could be building technology-- 100% agree with you, I would also add, by the way, I agree with you 100%, and I would even amplify it by saying you could be building something new, like a server, chips, silicon security, that has no category. So how does that relate into things-- (laughing) >> Well, Synergy is the category. >> Dave: Right. >> You know, it's-- >> 'Cause it's horizontally scalable, so again, you could be number one, two, or three by the old categories, but be wholistically number one in the market. >> So, I think it's more, you know, it's more categories of business outcomes. >> John: Yeah. >> Like, specialized high performance, you know, flexibility, agility of a private cloud. I think that's, you know, so, if you make a parallel with the car industry, you can say is the market, like, diesel engine, or gas engine, or electric engine, or is it like sport cars, SUVs, or whatever. I want us to look at SUVs and sport cars, how do we do the best SUV? How do we do the best sports car? Versus, you know-- >> John: The components, and do how you have-- >> This technical view of it's a rack or it's a tower. >> Yeah. >> And how do you add the most value for customers-- >> Yeah. >> That is profitable for shareholders? >> At the end of the day, when we have our argument in our office about this on the research side, we say, "Look, at the end of the day, "let's identify some of these new catego-- and try 'em, not measurement points, but customers and revenue can't lie. If you have customers, here it is, number of customers. >> And so, the problem then is to measure it. Once you have defined what is right metrics, can you measure it? >> John: Right. >> And so, unfortunately, the analyst today cannot measure the market where it has evolved. So we are still looking at rack and towers, and so on, and I think this is wrong, the wrong view. >> Okay, so, talk about the hot thing that we like is the Root of Trust product, the silicon thing that's called the Root of Trust, you know, with the firmware thing. This seems to be getting a lot of buzz to show. It's innovation, we had some independent testers on with your guys, and the Gen10, this is pretty impressive. Thoughts on, is this the kind of direction you continue to go with, what's your thoughts on this security-- >> Well, we think security's super important and, you know, you open the newspaper or the TV today, and you see what's happening, it's quite amazing, including today, what's happening today, here in the US. So, it's incidental the we come in just today with our new generation of compute, but it's taken two years of interviews with customers to really understand what's most important to them. And the risk of cyber threat has turned enormous, and I think that you have been interviewing experts from the FBI, and so on-- >> John: Yeah, right. >> During this session, who came here and help us to build this solution. And I think we're coming at the right time with the right solution that will take a few years to our competitors to try to match that, and then we'll go in this direction because that's the only way technically you can do it. >> John: Yeah. >> It's at the silicon level, so you basically have unique encoding on your server in silicon, and the firmware always, you know, compares itself throughout the whole life cycle of the server, even before the server is finally built through this Root of Trust. I think we've done this extremely well, I'm very, very proud of our ingenious. >> And it's been validated against the The NIST, NIST Securities Team, and so, congratulations on that. >> Alain: And these are the most stringent startups in the industry, right? >> It's pretty impressive, I mean, this has been a trend that we've been seeing, the silicon, the silicon angle, no pun intended. But it's interesting, and always, security's come up in the past, people want that. And with IoT, the support, the attack vectors can be sealed up pretty well-- >> And so are our Edgeline products, they have IDOL 5, and so, they will also have access to this technology. >> Great innovation, thanks for coming on theCUBE, really appreciate you share the insight. I'll give you a final word here. Share with the audience something you think they should know about HPE right now that they may not know about, I know the messaging's pretty simple, you got the nice messaging, but going beyond the messaging, what would you like to share with the audience about your group and HPE's innovation coming out of Discover 2017? >> You feel the buzz here, you can see, I think we have never been in such a focused and clear position, we exactly know the businesses we are pressuring, the Hybrid IT make it simpler, and the edge, and the service to make it happen. We are just crystal clear. But when you put the three together, you get to this dimension of intelligent distributed computing, and this is a market that we will lead in the future. Also, we are such a strong and stable company. We will have over $12 billion of cash net in our balance sheet by the end of next month. And this puts us in a position to continue to double down on these bets we have made for the future of the market. So we are very, very confident that we are in a great spot, and frankly, it's great now because it feels like we are starting to be a destination. The last 18 months, we separated from some of our legacy friends, and now, not only are we on our own, but we have a clear strategy moving forward. We are proving that we are implementing it with the six acquisitions that we have made over the last few months, and more in the pipeline, continuing to deliver the capability to integrate these acquisitions, and the capability to continue to motivate our customers to be with us. >> And the spotlight is on you guys, we'll be tracking it, thanks for coming on theCUBE, really appreciate it, Senior Vice President, General Manager of the Data Center Infrastructure Group, sharing his opinion here on what's happening and where's it going in the future for HPE. We'll be back with more live coverage with theCUBE, here in Las Vegas after the short break. I'm John Furrier with Dave Vellante, we'll be right back, stay with us. (light techno music)