>> Announcer: Live from Madrid Spain, it's theCUBE covering HPE Discover Madrid 2017. Brought to you by Hewlett Packard Enterprise. >> We're back. This is theCUBE that you're watching, the leader in live tech coverage. We're at HPE Discover 2017 in Madrid. My name is Dave Vellante, I'm here with my co-host for the week, Peter Burris. Peter, it's been great working with you this week. >> Indeed, it's been great. >> We're winding down, and we're really excited to have Ric Lewis, >> Great ideas. >> Senior Vice President and General Manger of the Software Defined and Cloud Group. Many time CUBE guest with HPE, and Jeff Wike of Dreamworks. CTO, thanks for coming on. >> Yeah. Thank you. Thanks for having me. >> Great to see you. You're welcome. Been a good week? >> It's been a fantastic week. >> Things are coming into focus? >> They are. >> You killed it on the keynote, how are you feeling? >> Feeling really good, feeling really good. I mean, the momentum in the software defined and cloud arena is just fantastic. You know, there were times when I used to visit with you guys and we were only talking about what's coming in the future. Now we're talking a lot about what we have, what customers are buying, where we have momentum. And still introducing new things, so it's just a whole lot of fun. >> Jeff, Senior Vice President, CTO, can we talk a little bit about your role? What the scope is? >> Sure. Sure, so Dreamworks Animation, you may have heard of it. >> Yeah. We do we make animated films. >> Good friend Kate Swanberg's been on a number of times. >> Kate's, love her. We make animated films, we do a lot more than that. We're a digital content creation company. So we, we're the largest TV animation studio in the world. We're doing theme park ride work, cause we've got, we're now under NBC Universal. So we're doing a lot of projects, it's a very busy time for us. >> So, Synergy, we talked about Synergy a lot, there's nothing >> Yeah. >> like Synergy we've heard. >> Yeah, yeah. >> Fluid pools of infrastructure. >> Yeah, it just gets better. >> Wait and see and so, what can you tell us? How's the momentum? >> Yeah let's talk a little bit about that. So the momentum on Synergy is fantastic. We started shipping in volume at this conference last year, basically December of last year. And the response has been fantastic. We've looked at Momentum for new infrastructure plays. You know if you look back at our history, whether it was the C7000 or whether it was UCS from Cisco or whether it was VCEs built on UCS, Nutanix. If you kind of look at the first year of a new infrastructure play, Synergy looks like it's the fastest growing thing ever. It's just fantastic, really growing for us. We have over 1100 customers on Synergy now. You know, and that's in 11 months of shipping. And the business, it just continues to grow quarter by quarter. Just really thrilled with the progress there, so happy. >> And you guys are customers? >> We're big customers, if we're not the biggest customer, we're certainly the biggest fan. >> One of the biggest, one of the biggest customers, maybe the biggest fan. >> Certainly the biggest fan. >> Okay so Jeff, tell us, take us back to sort of pre-Synergy, you know, what was it like before and after and what has it done for your business in particular? >> Well one of the things that that we face going forward is we developed, in our infrastructure, and inner data center, we do a lot of rendering to make a movie. That's our largest high performance compute. You know, 80 million render hours, CPU hours to make one of these films. And we're making a lot of them at the same time. We really defined that work flow, and how we optimize the data center hardware to be able to go through that work flow and be able to be as efficient as possible. The issue came with we have a lot of other projects that are coming in, and since we are now under NBC Universal, there's a lot of other work that's happening there. And also, different types of media that's coming, you know, around the corner. And we want to be able to prepare for that. What we would have done traditionally would be to buy to peak, you know because it is rather cyclical, and that's what we would do that on prem, peak. But if we had a special project, we might buy or segment a portion of that and say, you know, this is for this purpose. This is for that purpose, but that's very inefficient. So with Synergy, the beauty of it is we can purchase you know that hardware, but then if we want to be able to use it for another project, we can do that. And we can do that very very quickly. >> You said you repurpose that across your application portfolio. Or your project portfolio. >> Yeah. Yeah, it gives us, I like to say it future proofs us. Because now no matter what the parent company or our own creative ambitions are, we can handle that. We can't say no, well we never say no. We usually say not right now, or wait a couple of weeks or a couple of months to be able to provision that. And now it's, it's instantaneous. >> And I know what Ric's answer would be to this, but I want to hear from the customers. Is this really different than other products that you've experienced. >> It's totally unique. We haven't experienced it before. And I'll give you, I'll give you a little example. We just got our order. We got about 200 servers of Synergy that arrived a couple of months ago. And within seven working days, we were using it in production. And I just want to say, we took, I don't know if I told you this story, but we were able to provision all of that from the time we mounted in the racks within five hours, which is incredible. It would have taken us easily three weeks before. In fact, it took us longer to take it out of the cartons than it did to provision. >> Well, so let me see if I... You're talking about maybe 200 servers. You're probably talking about 8,000 individual tasks configured. To get it done in five hours you probably perform what, 40, 50 tasks? Administrative steps? >> By the way, first time doing it. And our engineers were saying, we could've used more parallelism. We could've done it faster. You know, it's almost a challenge to see just how easy you can do this. >> But I got that right? Is it really like 98 percent reduction in the administrative tasks? >> Absolutely. >> Really? >> That's incredible. >> It is. >> Huh, alright. >> That's before you start flexing work, flexing resources against different workloads and dynamically reprovisioning. This is just provisioning the first time. But it, if you think about it, if you're gonna do it dynamically, it can't take forever, so you've gotta make it, the first time it's gotta be super fast. >> Okay. >> So, I have to admit I'm a little stunned, I didn't know that. So, and as you said, the whole point is that you can reprovision >> Yes. >> Over and over. Which means that the... There's something in economics and technology that's known as an asset specificity. And an asset has high specificity when you buy it and can appropriate it to a specific purpose. And about the only thing in tech that makes something an asset specificity is the administrative tasks of changing it to prepare it to do something else. And you just told me that I can remove nearly 100% of the transaction costs associated with taking an asset from this and applying it to that. >> If you're gonna destroy silos in the data center, that's what you have to do. >> But that's... >> Right, so silo is this asset specificity. If you can repurpose it immediately. >> So I'm excited, that's my second question. How did your people respond to this? Because I talked to a lot of other CIOs that say one of the biggest challenges I'm having, or CTOs, one of the biggest challenges I'm having is I'm able to converge hardware, I'm able to converge to some software, I'm able to converge Administrative tasks, but my people don't like converge. What, they don't like to converge. How are you walking your people through some of these changes to liberate these opportunities? >> Well we've been moving toward, from more traditional, we'll call it IT for now. From traditional IT to dev ops environment and, you know what, it's change. So we've been bringing people along in that you know, to, and some people adapt to it. They say wow this is gonna be great for my career. And engineers want to always use the new stuff, so from that aspect of I know how I work, and I know what I do, to here's a better way of doing it to be more automated, it's been a good experience for people. And you know what, the chance of human error in configuring things... If I look to my long history at Dreamworks, 21 years, I look at any down time we've had or any problems, 90% of that has been from misconfiguration. And it's usually from somebody fat fingering, you know a parameter in the set up of the servers. And now, that's virtually eliminated. >> Did you have to go through some kind of organizational, internal sort of discussion, transformation, whatever you want to call it to actually get to the point where you could buy this way, buy a sort of single SKU of Synergy? Because you maybe previously you were buying bespoke, kind of roll your own components. A little server here, maybe some storage over there, maybe some networking here. Now maybe it's all HP that made it simpler, but you probably had specialist in each of those areas, did you not? >> We did. >> How did you deal with that organizational friction? >> You know, that was an issue as and by the way, there's so many, there's so much technology that's being developed some of it open source, some of it in this partner ecosystem that you have. And trying to stay abreast of that has been a real challenge. And one of the things that we always dreamed of is wouldn't it be nice if there was one way that you could control that. The single pane of glass, which is you know, to be able to have an API layer that everybody could hook in to. I think you've got a company like Hewlett Packard Enterprise that has that dominance in the market place to be able to dictate, I'm using that word. >> Yeah. >> Maybe dictate isn't the right word. >> Offer. >> Offer. (group laughing) >> That's the word we use. Enable. >> Enable, you know those APIs. And all of those are being developed you know almost in parallel. >> Yeah, yeah, yeah. >> So this stuff is really coming in. Now we have our own... We're a snowflake like everybody else is to your point. And what we've done is we brought in the Pointnext team to go in and write those northbound APIs so that we can hook in to one view. To be able to manage all of our legacy, I'll call it legacy, our previous infrastructure along with you know, the new tech that we're buying. So that it makes it easy to manage. >> They made it match the composable API that we put into Synergy. It's natively integrated. All the ecosystem partners are adapting to it. And they said we'll just use that as our standard to even manage our legacy infrastructure. Plus, since Oneview runs on legacy infrastructure, all of the HPE stuff, it just adapts like that. So it's been a very good, good project. >> So you've got a lot of experience with this now. Can you share with, maybe you can quantify it, maybe you can't, but even subjectively the developer impact or the animator impact, the business impact to Dreamworks? >> So the biggest impact... Well I have three things that are my, actually I got this from Meg Whitman, I had a list of 12 objectives for the studio for technology and she said at one of the CIO summits, you've gotta have three. So I said okay, I've gotta pare it down to three. And one of those is provide the technology, the software and infrastructure to meet the creative needs. The second one was innovate for competitive advantage. And the third one was drive efficiency into operations. And if you look at what Synergy provides, it hits every single one of those. So we've actually, you know, over the past year or two, we've actually reduced the number of people that we have maintaining our infrastructure, which is amazing if you consider the fact that this year we doubled the size of our infrastructure. In what other business, in what other area can you actually reduce the amount of people that are maintaining something while you're doubling the amount that you're maintaining. That never happens. And I think it's because of this software defined infrastructure and the fact that you can write these recipes or profiles, whatever you want to call them, personalities. >> Yep, yep, yep. >> To be able to... And test them and harden them. And by the way, that reminds me, one of the things I really like about this is our ability to do proofs of concept, to try different workflows and all that without having to take away resources from the main thing that we're doing which is the artistic community. So we can actually say, you know what? We're gonna go in, reimage these servers. We're gonna do that at night to run this test, in the morning they're back, they're back in the pool. And that's an amazing thing. >> That's dynamic provisioning. No one else can dynamically provision. >> Yeah. >> All the converge systems, all the hyper converge, they're provisioned a certain way. They run VMs a certain way. They stay that way for their lifetime. This stuff dynamically reprovisions, and you guys, you're not even talking about kind of doing containers with VMs and containers with your bare metal, you can dynamically reprovision across that as well. >> Yeah, what he said. (laughter) >> Listen, we're just getting started so just relax, okay. These guys are telling me we gotta wrap. We're not gonna wrap. >> No. >> We haven't even gotten to One Sphere yet. >> We have other topics. Exactly. >> So let's get to One Sphere. >> Yeah. >> Yeah I want to talk about One Sphere. But I do want to say. >> Go ahead, last thought. >> One more thing, so you talked about artists, but the other part of it is for developers so one of the things we don't want the engineering teams to be a hindrance to the developers. Because they want to be able to move quickly, they want to be able to be assessing, and I think one of the things that's not just an impact on our artists, to be able to do these new projects, but also it makes our developers more efficient. They don't have to wait. >> Yeah. >> Okay, great. Now let's talk multi cloud. >> Yep. >> A lot of complexity, the more things get simple, the more complex they seem to get. So, One Sphere. You guys announced yesterday. >> Yeah, so. A core pillar of the HP strategy, make hybrid IT simple, right. And you can see from this conversation we're making hybrid IT simple on-prem. Not only do we have Synergy, but we have a fantastic offering in our Simplivity space. And that platform's over 2,000 customers and growing like crazy as well. But after we did that, we said look, we've got fantastically simple virtualization clusters in Simplivity, we've got great dynamic reprovisioning and composable infrastructure, but customer are not... That's part of their hybrid IT problem, that's the on-prem part. They're also wrestling with I've got multiple cloud instances, I need to get insights into where I'm spending my money, where workloads are deployed and all that. So we started this program, HPE OneSphere. We've had it going for almost three years. We had a small team on it early on. We ramped up the staffing a couple years ago. And what it really does, it's pretty simple. It allows you to build clouds, deploy apps, and gain insights extremely fast. So it's designed for IT ops to be able to build and deploy a private cloud as fast as they can and assemble that with their public cloud assets. And provide one place to look at all of those. For developers, it provides a common multi-tenant environment that has all the services and tools they need to be able to deploy an application whether it's on-prem or off-prem, and you can choose, you can build applications that have some of both inside that developer environment. And then for the business, it shows insights into where's the money being spent? Where are those workloads running and what's it costing me? So, think of it almost as composable at that next level where it's not just resources within chassis, now it's resources across the hybrid IT estate. It actually is public cloud assets from any of the public clouds, whether it's AWS, Azure, Google, Cloud28+, as well as your private cloud assets. And it automates the life cycle stuff that we were just talking about through this application into OneView. It's a SaaS environment, so actually OneSphere is software as a service. It lives in the cloud, it's a subscription that our customers buy, and it does all of this capability to simplify their hybrid environment and taps into the capabilities we just talked about. It's fantastic, nobody has anything like it. >> Okay well we've heard that before, but now... >> Exactly. >> You're putting your money where your mouth is. >> So I was right on that one. >> Okay but it's early days for OneSphere. >> Okay. >> And your private cloud is what we call a true private cloud. >> Which you said on stage yesterday. >> I did that's exactly right. >> It's evidence by your ability to reduce staff to manage infrastructure. >> It's a con experience wherever the data requires is how we put it. >> Yes, yes. We want the simplicity of management and the availability of apps that you get in public cloud in the private cloud. >> And the pricing. Yeah? >> Well, yeah, well... No, cause it's actually more expensive to go public cloud. >> I mean pricing models. >> Oh yes, yeah. >> The consumption is what you're basically talking about, yeah. >> And so you, Jeff you guys are OneSphere or OneSphere betas? >> Yeah, you bet. >> So what were you trying to learn? What were you kicking the tires on, testing? Where'd you focus? >> We, you know, if we look at the future, we're not gonna be on-prem forever, and I certainly don't want to be on-prem forever, I want to take advantage of flexing to public cloud, but again, for our films, you know, we want to be able to provide the producers of those movies, what is that gonna cost me? What is that, how can I tell you what that costs? And where can we move as we start to do more different types of projects? Which ones should go to the public cloud? Which ones should stay inside? And be able to understand that. The other thing that made us nervous about public cloud. Was what they call the zombie cloud instances, you know where you went in, you provision something and then you forget about, and you, but you're paying, you know. And that's, a lot of money is made. >> Kind of like app subscriptions. >> Group: Yes, exactly. >> I'm still paying for that? (laughter) >> Exactly but this gives you all of that... >> 4,000 dollars a month. >> A little different right. >> Or 15,000 a month. (laughter) >> Yeah, that's for sure. That visibility is something that all... We talk about it, CFOs hate this thing... Some of the consumption model is shifting from cap ex to op ex, but CFOs hate surprise op ex. And that's where they're actually surprised by oh my gosh look at that bill. Well this provides visibility into all of those assets, whether they're on-prem or off-prem and what they're costing you. And it's always up to date, and it's always consistent across your entire farm, so you can choose and say that's costing me too much, I want to move those apps over here. And immediately do it. And for a lot of our customers, they're over-provisioned so they have spare capacity on-prem they're not taking advantage of. Why not use some of that and it's instantly provisioned. >> And that's where you initially, anyway, see the business value of OneSphere. >> Well, look, it's OneSphere to rule them all. And I believe whether it's private, public, you know we really want to have what is my total resource availability? So in the future, we never say no anymore. Really, we can tell them how much, but you don't have to say no. And the other thing is we can do this stuff instantly. So, we don't even say when, we just go now here's what you have to pay if you want to do it, we can provide those options. It's a new world. >> I love the demo of, I don't know if you guys saw it, there's a demo with Pong, you know, it's the IT guy of the past. >> Yeah the guy saying no. >> And then they made it vertical. It's the IT guy of the future. So, alright my last question. What cool movies can we anticipate? What's coming? >> Well you know what, How to drain... How to Train, how to drain your tragon I was gonna say. (laughter) How to Train Your Dragon 3 is our next film out and it's gonna be unbelievable. >> I'll bet. >> So my last question. Am I gonna have to continue to sit through 15 minutes of IT credits at the end of future Dreamworks movies as a consequence of Synergy? >> There's less, cause there's less resources required to manage your Synergy hardware. So it's less people. >> I know you don't sit through the credits. (laughter) >> I do. (laughter) I love credits. Alright guys, thanks very much for coming on. >> Thank you. >> It's been a great pleasure. >> Thank you, always fun. >> Alright keep it there everybody, Peter and I will be back to wrap up HPE Discover 2017 from Madrid, you're watching theCUBE. (upbeat music)

>> Narrator: Live from Madrid, Spain it's theCube, covering HPE Discover Madrid 2017. Brought to you by Hewlitt Packard Enterprise. >> Welcome back to Madrid everybody. This is theCube, the leader in live tech coverage. My name is Dave Vellante and I'm here with my co-host for the week, Peter Burris, otherwise known as Mr. Universe. This is HPE Discover Madrid 2017. Flynn Maloy is here as the Vice President of Marketing the HP Point Next. >> Hi guys. >> And John Treadway is here as the Senior Vice President of Strategy and Portfolio at Cloud Technology Partners, an HPE company. Gentlemen, great to see you again. Welcome to theCube. >> Great to see you. >> It's been a good week. We were just talking about the clarity that's coming to light with HPE, the portfolio, some of the cool acquisitions. You and I, Flynn, were at this event last year in London. You had the Cheshire Cat smile on your face. You said something big is coming. I can't really tell you about it partly because I can't tell you about it. The other part is we're still shaping it. Then Point Next came out of it. How are you feeling? Give us the update. >> It's been a really exciting year for services. This time last year we knew as Antonio announced, we're going to be bringing our services together after we announced that we're spinning out our outsourcing business. We're bringing technology services at the time forward. We had a new brand coming. We purchased Cloud Cruiser in February so we're investing in the business. We also invested in services back in the engine room all year long to really build up to our announcement this week with Green Lake which takes our consumption services to the next level. Then of course in September we continue to invest and acquire Cloud Technology Partners and by the way brought on our new leadership team with Ana Pinczuk and Parvesh Sethi. For us here at HP it's really been a banner year for services. It's really been transformative for the company and we're excited to lead it going into FY '18. >> John, Cloud Technology Partners specializing, deep technology expertise. You've got an affinity for AWS, you've got a bunch of guys that reinvent this week in close partnership with them. Interesting acquisition from your perspective coming into HPE. What's it been like? What has HP brought you and what have you brought HP? >> That's a fantastic question. We have really found that everything about this experience has exceeded our expectations across the board. When you go into these things you're kind of hoping for the best outcome, which is we're here because we want to be able to grow our business and scale it and HP gives us that scale. We also think that we have a lot of value to add to the credibility around public cloud and the capabilities we bring. You hope that those things turn out to be true. The level of engagement that we're getting across the business with the sellers, with the customers, with the partners is way beyond expectations. I like to say that we're about six months ahead of where we thought we'd be in terms of integration, in terms of capability and expertise. Really bringing that public cloud expertise, not just to AWS, we do a lot of Azure work, we do a lot of Google work as well, really does allow the HPE teams to be able to go into their clients and have a new conversation that they couldn't have a year ago. >> What is that new conversation? >> The new conversation is really about, and we like to use the term "the right mix." I.T. is not just one mode. You're gonna have internal I.T., you're gonna have private clouds. Public cloud is a reality. AWS is the fastest growing company in tech history ever. If you think about that it's a reality for our clients, HPE clients, that public cloud is there. That new capability that we could bring, that credibility is that we have done this for the last seven years with large enterprises across all sorts of industries and domains: Toko, healthcare, financial services in particular. We bring that to the table, combine that with the scale and operational capability of HPE and now we have something that's actually pretty special. >> Just to add, it is about the customers at the end of the day. It's about where do those workloads want to land? Public cloud, private cloud, traditional, those are all tools in your toolbox. What customers want to know is what is the right mix? There are workloads that are ideal for going to the public cloud. There are workloads that are ideal for staying on prem. Finding that right mix, especially by bringing in the capabilities of what needs to go to public cloud that really rounds out our portfolio for hybrid I.T. >> I'm starting to buy the story. The upstarts, the fastest growing company in the world would say old guard trying to hang onto the past. I like the way you framed it as look, we know our customers want to go to the cloud. They want certain workloads to be on prem. We want them to succeed. We're open, we're giving them choice. Maybe two years ago it sounded like bromide. But you're actually putting it into action acquiring a company like CTP. It's interesting what you were saying, John, about well no not just AWS, it's Google, it's Azure. You've got independent perspective on what should go where or on prem. >> We always have so even as a company that derived most of our revenue from public cloud over the last few years, we've never, ever been the company that said everything should go to public cloud. Toss it all, go to Amazon, toss it all, go to Azure. Never been our perspective. We've had methodology for looking through the application portfolio and helping determine where things should go. Very often a large percentage of the portfolio we say it's good where it is, don't move it. Don't move it right away. >> But in the past that's where it ended. You said okay, hey, go figure out, go talk to HPE. >> That's actually a funny thing because we've had this conversation. Literally when we would say okay we'll take care of this part for the public cloud, but you're on your own for the private cloud stuff, in the past HP would do the reverse. We'll help you with the private cloud stuff, and we think this could go to public cloud. But you're kind of on your own with that. Not that there wasn't any capability, but it wasn't really well developed. Now we can say this should go to private cloud, this should go to public cloud and guess what? We can do both. >> Dave: So now you've got a lean-in strategy. >> Absolutely right, as John said the funnels and the response from our customers have been outstanding. As you can imagine, Mike, all of our top customers are saying fantastic, come talk to us, come talk to us. They're having to prioritize where they go over the last few months. We are well ahead of where we were. >> We strongly believe over the years that the goal is not to bring your business to the cloud. It's to bring the cloud to your business. That ultimately means that public cloud will be a subset of the total although Amazon's done a wonderful job of putting forward the new mental model for the future of computing. Can you guys reliably through things like Green Lake and other, can you present yourselves as a cloud company that just doesn't have a public cloud component? >> Let me approach the response to that question in a slightly different way. When you look at our strategy around making hybrid I.T. simple it's not necessarily which cloud is the right cloud? It's not really about that. It's about where should the workloads land? We do believe that the pragmatic answer is you need to be a little bit above all of those choices. They're all in the toolbox. If you look at, for example, our announcement with One Sphere this week that's a perfect example of what customers are asking the industry to do which is to look across all of it. The reality is it's hybrid, it's multi-cloud and speaking at that length. >> But you're saying it's a super set of tools that each are chosen based on the characteristics of workloads, data, whatever it might be, that's right. So John look, as human beings we all get good at stuff. We say I know that person I can stereotype him. I can stereotype that. What's the euristic that your team is using to very quickly look at a workload? Give our audience, our clients a clue here so that they can walk away a little bit and say well that workload naturally probably is going to go here. And that workload's naturally going to go there. What's it like 30 second where you're able to generally get it right 80% of the time? >> It really comes down to a set of factors, right? One factor is just technical fit. Will it work at all? We can knock out a lot of workloads because they're on old Unix or just kind of generally the technical fit isn't there, right? Second thing is from a business case. Does it make sense? Is there gonna be any operational saving against the cost of doing the migration? Because migrating something isn't free right? It's never free. Third is what is the security and governance constraint within which I'm living? If I have a data residency requirement in a country and there's no hyper-scale public cloud presence in that country then that workload needs to stay in that country, right? It's those types of high-level factors we can very quickly go from the list of here's your entire list down to already these are candidates for further evaluation. Then we start to get into sort of deeper analysis. But the top level screen can happen very, very quickly. >> You do that across the, you take an application view, obviously. A workload view. Then how do avoid sort of boiling the ocean? Or do you boil the ocean? You have tools to help do that. >> We do, I mean we've invested a lot in IP, both service IP and software IP in both Point Next also comes with some strong IP in this as well that we've been able to merge in with. Our application assessment methodology is backed by a tool called Aura. Aura is a tool for taking that data, collecting it, and help providing individualization in reporting and decisioning at the high level on these items. Then every application that looks like a great candidate for something that I'm gonna invest in migration, we need to do a deeper analysis. Because it isn't lifting and shifting. It doesn't work for 90% of the applications, or 80%, or 70. It's certainly not anywhere near 50% of the applications. They require a little bit of work, sometimes a lot of work, to be able to have operational scale in a public cloud environment because they're expecting a certain performance and operational characteristic of their internal infrastructure and it's not there. It's a different model in the public cloud. >> A lot of organizations like yours would have a challenge presenting that to a customer because they can't get the attention of the senior leaders. How is it that you guys are able to do that? You were talking I think, off-camera, talking about 20-plus years of experience on average for each of your professionals. Is that one of the secrets to how you've succeeded? >> This is a big thing and why this integration's working so well is that the people, the early team all the way through today of CTP are all seasoned I.T. professionals. We're not kids straight out of school that have only known how to do I.T. in an Amazon way. We have CIOs of banks that are in our executive team, or in our architecture team that have that empathy and understanding of what it means to be in the shoes. Not having this arrogant approach of everything must be a certain way because that's what we believe. That doesn't work. The clients are all different. Every application is a snowflake and needs to be treated as such, needs to be treated like an individual, like a human. You want to be treated like an individual, not like -- >> Stalker! (laughing) >> Gezunheit. (laughing) >> Okay, so now the challenge is how you scale that. How you replicate that globally and scale it and get the word out. Talk about that challenge. >> That's right and one of the big things we're really excited to see is the merger of the IP that comes from CTP along with everything that we have inside of Point Next and then rolling that out to the 5,000 plus consultants that we've got inside of HP and our partners. That's really where we're expecting a lot of the magic to come from is once we really expose the integrated set of what those capabilities are we think, and Ana has said it on stage. We had heard from a couple of analysts that we believe that together we have the largest cloud advisory in the industry today. >> It was interesting we actually had, we've had challenges in the past where we've gone into clients and were starting to get into some pretty serious level of work. We were a younger company, didn't have the scale, and scope, and capability of HPE. Now we're being brought in to these opportunities and the clients are saying HP, you're right here. We can do that. We have the scale to now start doing the larger transformation programs and projects with these clients that we didn't have before. Now we're being invited back in, right? In addition to that being invited in because now we have the cloud competency that we can bring to the table. >> You know what, I kind of want to go back to the point you made earlier about how it's all cloud. That resonates with me. I think it is all cloud depending on where you want to land the various pieces. If that's what you want to call that umbrella I think it makes a ton of sense. You know, a lot of what we've announced this week with Green Lake is about trying to bridge the benefits gap with public cloud as the benchmark for the experience today for what needs to stay on prem. When you sit down and for all those reasons you outlined, whether it's ready, whether it isn't ready, where the data has to sit, or whether or not. There's gonna be x-workloads that need to stay on prem. We've been working hard in the engine room to really build out an experience that can feel to the customer a lot like what you get from the public cloud. That's gonna continue to be an investment area for us. >> If the goal is success for the business then you don't measure success by whether you got to Amazon. >> That's correct. >> The goal of success is the business. You measure success by whether or not the business successfully adopts the technology where the data requires. What's interesting about the change we're experiencing is in many respects for the first time the way of thinking about problems in this industry is going through a radical transformation. Let's credit AWS for catalyzing a lot of that change. >> Absolutely, setting that benchmark. I mean it really is a catalyst. >> But you look at this show, HP has adopted the thought process, it's adopted it. It's no longer in our position to say fine, you want to think this way, we'll help. >> Imagine this, as One Sphere comes up and as we really can manage multi-clouds and as we'll eventually be able to move workloads between the various clouds, manage the whole estate, view the whole estate and everything under it whether it's off-prem or on-prem is all consumption. I mean, how does that change central I.T.? Central I.T. radically changes. If everything's consumed, wherever it is and you've got a visibility to the whole estate and you can move stuff depending on what the right mix is, that's a fundamental change and we're not there yet as an industry. But that's a fundamental change to the role of Central I.T. >> But your CIOs are thinking along those lines. We can verify they are thinking along those lines. >> Again the strategy's coming into focus for me personally. I think us generally. We talked to Ana about services-led, outcome-led. And if it's big chewy outcome like kind of IBM talks well you've got partners to help you do that. Deloitte, we had PWC on. They're big, world-class organizations with deep expertise in retail and manufacturing and oil and gas. You're happy to work with those guys. If it is service-led or outcome-led you can make money whether you're going to Amazon, whether you're staying on prem, whether you're doing some kind of hybrid in between and you're happy to do that as an agnostic, independent player. Now yeah, of course you'd like to sell HP hardware and software, why not? >> I think that's really an important point. When it comes to the infrastructure itself we do believe we have the best infrastructure in the industry, but we play well with others and we always said HPE plays well with others. When it comes to the app layer we are app agnostic. A lot of our biggest competitors are not. When you go out and talk to CIOs today that's really, this is my app, this is my baby. This is the one that I want. They're not really looking for alternatives for that in many cases. When you're thinking agnostic that's really where we think partner, being agnostic, working with all the ad vendors, working with all the SIs, we think that's where the future-- >> And it's a key thing. You guys are younger, but you remember Unix is snake oil. I mean-- >> Designing is a Russian Trump. >> Unix is snake oil and then two years later it's like here our Unix. >> Flynn: It's the best thing ever. >> So you now are in a position to say great, wherever you wanna go we'll take you there. That's powerful because it can be genuine and it can be lucrative. >> What's unlocking here is the ability to actually execute a digital transformation program within the enterprise. One of the big things the public cloud providers brought to us and that HPE's now bringing in through the internal infrastructure is that agility and speed of innovation of the users. Their ability to actually get things done very quickly and reduce the cycle time of innovation. That frankly has always been the core benefit of the public cloud model, that pay-as-you-go, start with what you need, use the platform services as they grow. That model has been there since the beginning and it's over 11 years of AWS at this point. Now with enterprise technology adopting similar models of pay for it when you consume it, we'll provision it in advance, we'll get things going for you, we're giving that model. It's about unlocking the ability for the enterprise to do innovation at scale. >> I wanna end if I can on met Jonathan Buma last night, J.P., J.B., sorry. You're J.T. >> It's confusing. >> But one of the things I learned, a small organization, 200-250 people roughly when you got acquired, but you've got this thing called Doppler, right? Is that what it's called, Doppler? Explain that, explain the thought leadership angles that you guys have. >> Actually from the very beginning. >> The marketing team loves this, it's fantastic. >> So follow up with how. >> From day one there's a few things that we said were core principles, the way that we were going to grow and run the business. I'll talk about one other thing first which was that we were gonna be technology-enabled, technology-enabled services company. That we were gonna invest in IP both at the service level but as the technology level to accelerate the delivery of what we do. The second thing as a core principle is that we were going to lead through thought leadership. So we have been the most prolific producers of independent cloud content as a services firm bar none. Yeah, there's newspapers, magazines, analyst firms like yourself producing a lot of content. The stuff that we're producing is based on direct experience of implementing these solutions in the cloud with our clients so we can bring best practices. We're not talking about our services. We're talking about what is the best practice for any enterprise that wants to get to the cloud. How do you do security? How do you do organizational change? That has a very large following of Doppler both online where we have an email newsletter. But we also do printed publication of our quarterly Dopplers that goes out to a lot of our clients, the CIOs and key partners. That kind of thought leadership has really set us apart from all of the rest of the, even the born in cloud consultancies who never put that investment in. >> Flynn, you're a content guy. >> Absolutely. >> So you've got to really appreciate this. >> That's a dream, it's an absolute dream. One of the things, another proof point as a way to end, services first strategy is what we're doing in the market community at HP more money, energy, content, time is going into how we're talking, thought leadership and services than anything else in the company. We've got not just branding for Point Next and Green Lake, but bringing Doppler forward, bringing those great case studies forward. Putting that kind of content at the tip of the HPE sphere. It's not something you've seen from our company in the past. I think keep your eyes out over the next year. We'll have this conversation in six months and you'll see a lot more from us on that topic. >> Great stuff, congratulations on the process, the exit, the future. Good luck, exciting. >> Thanks guys. >> Really appreciate it. Keep it right there everybody, we'll be back right after this short break. Dave Vallente for Peter Burris from HPE Discover Madrid. This is theCube. (upbeat instrumental music)

>> Announcer: Live from Madrid, Spain. It's the Cube. Covering HPE Discover Madrid 2017, brought to you by Hewlett Packard Enterprise. >> Welcome back to Madrid everybody. This is the Cube, the leader in live tech coverage, and this is day two of HPE Discover 2017. I'm Dave Vellante with my co-host, Peter Burris, Alain Andreoli is here. He's the Senior Vice President and general manager of the hybrid IT group at HPE. Great to see you again. >> Great to see you David, great to see you Peter. >> So, a lot of good energy here, the story Alain is coming together. >> Alain: Yes. >> We've seen it over the last five years but really fine-tuned the organization and seems like things are going well. >> We have more clarity on our strategy than I've ever seen in a company, and this was not easy to do because the market is changing so fast. We addressing $120 billion market in hybrid IT, we lead the market in compute, we lead the market in storage, we lead the market with private cloud, we have invented composable, we are ramping up our Harper converge offering, and now on top of the infrastructure, we building these layers of one sphere, which is managing a multi-cloud environment for the data, and we are adjusting our services to become advisory and consumption models. This is having such an impact on our customers, 74 percent of our customers are going for hybrid IT journey. So we have organized ourselves to make this journey to be basically the partner of choice for our customers as they go through that. >> I mean so cloud of the last five, seven years, cloud and open-source software have really disrupted our industry. You've had to respond to that, and basically bringing cloud-like operating models to your customers. >> Alain: Yes. >> How have you done that, how do you rate your progress and where are you to date in that regard? >> So the first decision we had to make is are we a neutral party to our customers? (laughing) >> Dave: Yeah. >> We need to redo it. (laughing) >> They're getting you back, right? So, I don't know if you can see that, alright? Alain came by on his scooter, here we go, let's catch this. Here we go, this is called payback. (laughing) During Dr. Tom's interview, Alain came by with his scooter. (laughing) >> I will get you, I will get you for this. (laughing) >> It's great fun on the Cube. >> We can kid, that's alright. >> That's good. >> So the decision we had to make is are we the partner for our customers to go to the cloud or are we saying on PRIM is better? >> Dave: Yeah. >> And we 'vedecided to be this partner. Because we believe there is value for everyone and we believe it is not a one-way street. And we see actually that 32 percent of the customers who have moved work loads to the cloud are bringing these work loads back on PRIM. So we had to advise them. We helped them go through this journey, we really mean it, we helped them to go on Amazon, we helped them to go on Azure, we helped them to go on Google, and we helped them make it work, and this is why it's a service-led journey. The problem if you go on the public cloud is that we don't really know how much it is going to cost you, and you don't really have a single pane of glass to have all your data being managed across, what is now an ecosystem. We enabled them to do that. And the market we are directly addressing on PRIM is not shrinking. We still see huge pockets of growth, in flash storage, in HPC, you've seen the results we have in HPC. In Mission-Critical X86, in Hyperconvert, so we are basically moving from the one-size fits all type of organization of freeing X86 and start off storage, to become a company that offers value to customers, in specialized pools of compute, of storage, of networking, and offering them the end to end journey across the different stack. What I think is going to make a huge difference, if you look at the five-year horizon, is the growth of The Edge and the fact that 70 percent of the data are going to come from The Edge, and then you will really see the power of our strategy of private IT which goes from The Edge, to the core, to the cloud, because we will be able to enable our customers to have their data moving seamlessly across this journey. And we have exactly organized the company that way. >> One of the obvious use cases from what I like to call machine intelligence or artificial intelligence is really infusing artificial intelligence into infrastructure for predictive analytics and predictive maintenance, IT operations management, Infocyte, you got through an acquisition of Nimble and have been impressed with the pace at which you pushed that throughout the portfolio, I wondered if you could address that. >> We've been almost surprised. We looked at, we wanted to become the flash company because we saw that the market over three years, would completely move to flash. And when there is such a pendulum shift, you want to be at the forefront. >> Dave: Right. >> So we looked at all these companies who were having very strong positions on flash and Nimble intrigued us because they had, by far, when we talked to their customers, the highest customer satisfaction, I think it was something like 87 percent. >> The NPS is off the charts. >> The NPS is off the charts, right? And then we peeled the onion and we saw Infocyte, which was almost enough to start south because it was not part of our list, right? Initially of our list of this is how we are gonna select a company we want to acquire, and when we got into Infocyte, how it works, how we can actually port easily these to three power and then to SimpliVity and then to the rest of the portfolio we felt this is the crown jewel that is going to be the foundation of us making >> Dave: And not just the storage portfolio. >> No, end to end so we're gonna do these for everything, now we cannot do it in one day. The priority was to give a seamless experience to customers going three power or Nimble, so we've done that very quickly. We acquired the company six months ago and it's already there for three power. Next one will be Simplivity, very soon in a few weeks, then we go to the whole computes platform as well, then finally to networking. I hope, it's not a commitment, but I hope that by the end of next year, and under a year, we will be done for the whole infrastructure portfolio. >> And explain the benefit to customers. >> And then the benefit is that you basically have, you eliminate the need for level one and level two support because it's proactively, now you have to be wanting to have your device calling home, right? Because otherwise, if you want your device to be in the data center and insulated from communicating with the network effect, that is not going to work, so but assuming you want your device to be connected centrally, so that it can be monitored centrally the artificial intelligence that is embedded in Infocyte is basically going to monitor the behavior of your device compared with hundreds of thousands of other ones and therefore anything that is deviant will be flagged as a potential problem and resolved before you even know about it. That's one. So when you end up having a problem eventually, which is becoming very, very rare, then you directly call the level three engineer who is an expert and who has, on the screen, the behavior of your device for the last month compared to others, and the resolution is in less than a minute. So it's a revolution in the way to do service. >> So, one of the things that we've observed as we've talked to customers is that the characteristics of the problems that they're now trying to solve have real world elements, and that's really what The Edge is about in many respects. For the first 50 years of IT, we were doing accounting, and HR, and supply chain, and we were able to define what the data models looked like, we could therefore say, the data's going to be here, the processing is going to be here, we could build data centers. Now as you said, 70 percent of the data is going to be coming from The Edge. It's not clear, necessarily where the best place to process that data is. Where's the compute going to be? How's it going to integrate with people? In many respects, hybrid IT is about diminishing the degree to which infrastructure dictates the way the problem gets solved. Would you agree with that? It's kind of like where does, let the data reside where it needs to reside, and make sure that the business is a natural infrastructure that reflects and corresponds to the work that needs to get done. >> I totally agree with your problem statement, and the way you position the question. In terms of semantics, I would just say we need to make infrastructure invisible. It's still there because it's all running on infrastructure. The iPhone is infrastructure, your PC is infrastructure, your camera is infrastructure, it's all there. >> A C.I.O said to me not too long ago... >> But you know what? We are having this interview, we are not thinking about what makes it happen. >> Peter: Right, right, right. >> Our business is to talk and communicate right now, this all has got to be seamless and that's how we need to make IT, seamless. >> I had a conversation with a C.I.O. >> Invisible. >> Yeah, who said that the value of my infrastructure is inversely proportional to the degree to which anybody knows anything about it. So, is that kind of what the HP promise is, is we're gonna let the data and the work loads define where the infrastructure goes and ensure we have those options? >> It's exactly right and the vehicle to do that, we call it autonomous data centers. Your phone is a data center. Your data center is a data center. Your off-frame cloud is a data center that you are subcontracting, right? So we want all of these to be autonomous, in terms of self-healing and everything else, and then the intelligence of where these data are being moved and how you use what and when is the single pane of glass that we are developing around one sphere. And how to get the customers to move their work loads and their business around that is what we do with point next with services. This is our strategy. >> So let me break that down a little bit. So, we've got devices that are powerful enough that we could put new types of control, new types of work loads there if we wanted to, we've got now the ability to package infrastructure, and have a single pane of glass, and have a common management framework. >> Right. >> But when you say the autonomous data center, it's we have a common business approach thinking about policy, thinking about value, thinking about how we're gonna do things, and we can put that into this entire vision, and let it actually execute how that manifests itself from a business standpoint. >> Exactly right. >> Have I got that right? >> It's exactly right. I love the way you put it. That's exactly what we are trying to do. it's not going to be done in one day, but that is our strategy, and we have organized, once again, the whole company around it, to execute this strategy and to make it happen for our customers. >> So if we think about what an HPE customer is gonna look like in, you know a really good HPE customer in 2023, what.. >> Alain: That's a long time. >> That's, five years, but I'm giving you that much run way, because you're right, it's not there yet and if it's too ambitious then so be it, but how is a business person going to think differently about working, about the role that IT is going to play in the business, and what it means to have a great partnership with a company like HP? >> Yeah, so we are basically, our motto is One size doesn't fit all, so we are first trying to understand the business of the customer, and then we will apply solutions to enhance this business, or to empower this business, right? So, we have the biggest brace of infrastructure that you can think of, think about this infrastructure becoming self-healing, but this infrastructure is more and more specialized, there is HPC, there is Mission-Critical, we just found Superdome flex, or SAP, we have all these specializations that, for those customers to optimize their business outcome. Then we have the single pane of glass that allows everything to seamlessly operate the data around, and then our point-neck services are going to work with the customers to architect their IT model in a way that their work loads are optimized. And one of the key is the right mix. The right mix of what you do yourself, what you got from multi-cloud, how much do you pay for it, how much do you anticipate that you're gonna pay for it, do you want this to be CAPEX, do you want this to be OPEX? And then how do you manage The Edge, and with Aruba and with Edgeline, and then with all your IT platforms that can manage the data across The Edge. We have the capability to also let the customer decide, do I want a lot of analytics and decisions to be made at The Edge, in my devices, and this is highly valuable depending on what customer business model we are talking about, or, do I want all the data from the analog world through the censors to come straight back to the ranch. All of these decisions, we are gonna have platforms to allow customers to make these decisions, to decide, kind of templates if you want, this is how I want it to run, and to be executed, and then to be automatically, autonomously operated. That's our vision of how we can help our customers moving forward. >> Last question, so the attendees of Discover, your customers, when they go back and he or she talks to their boss, what do you want them to say about Discover 2018? >> I invested two or three days of my time to come to HPE Discover. It was really exciting because I felt that it's like a new company, it's the company I know. I know they are customer first and customer last, and they are the ones who help me when I have a problem, whether they created it or not, they are here to help me. This is not going away, but they are taking us to the new world. They are gonna help us to build our hybrid IT model, and I think we need to trust them to have a seat at the table when we make these decisions, boss. >> Intimacy, innovation... >> Alain: Yeah, innovation. >> Trust. >> HPE's no longer wandering in the desert. (laughing) >> Alain Andreoli thanks so much for coming on the Cube, it is always a pleasure. >> It was a pleasure. Take care, thanks Peter. >> Keep it right there, everybody, Peter and I will be back with our next guest, right after this short break, we're live from Madrid. You're watching the Cube. (techno music)