>>The cube presents HPE discover 2022 brought to you by HPE. >>Okay. We're back to wrap up HPE discover 2022. The Cube's continuous coverage is day three. John furrier, Dave ante. We had a business friend that we met during the pandemic. A really interesting gentleman, norm Ette. He's the director of global technical marketing at Hewlett Packard enterprise, a real innovator norm. Great to see you. Thanks for making time for coming on >>The cube, gentlemen. Thank you. Thank you. I appreciate that. You're giving me the opportunity to bring it home. Yeah. You know, if I'm only gonna get one shot at it, it might as well be >>The last we always, we always like to bring the energy in the last segment because you know, the cube, we grind it out for three days. I mean, it's just such a great content injection. And so we love to wrap it up, especially with someone like yourself who can really help us convey the themes, but even more so when we look around here this entire ecosystem, you and your team built this. And so take us through that. >>Well, we did, you know, and it takes a village. You know, we have the core team, HPE global technical marketing, uh, which is my team. And then of course we're partnered with other parts of the, our marketing organizations on different pieces, different aspects. And then we have a tremendous team of vendors that we work with on a regular basis. Companies such as, you know, F two B and ivory and others that, you know, really kind of pitch in. And they're, they're kind of my, I call 'em my flex force. You know, we also have another group called promote live and we bring all these people together. And, and in addition, all the vendors, we have something like 380 employees that come from all different parts of the organization to, to land in Las Vegas, to man, these booths and staff, these, uh, staff, these exhibits. >>And so for one week, we get to really work as a, as a, a team, as a family, you know, there's no organizational borders, so to speak, you know, you know, we're a big company, everybody has, you know, different objectives and different things that they're focused on, but we get a chance to all get together and work as one, one team. And so that, that the people aspect is what's so exciting, I think this week. And I think I even saw some of your broadcast earlier. So I think it kind of, it kind of came through as well. Just the joy of, of being together, you know? Sure. Human beings <laugh> >>And, and H HP's got a new spring and its step, which so much focus brought to the table from Antonio and, you know, the team is the lining. >>Yeah, we do. And that's, you know, when you go, when we start talking about the design and you know, one of the things that, you know, we work on this months ahead of time. Yeah. Right. And so it's kinda like a spinning top, you know, we, we, we keep, we, we keep spinning that thing tightening up and then this week you put it on the table and just let it go. Yeah. Right. But it's that whole multi-month process of, of, of twisting that top around and getting it going and right at the middle and right at the centerpiece. And, uh, the core design principle and an ask from, uh, Antonio is that we make sure that we major on HPE, uh, GreenLake edge to cloud platform that, you know, it, it's a, obviously you've been talking about it all week. Yeah. Uh, we've been talking about it all week. It's a big focus of our company. And so right at the very center, we have our HPE GreenLake edge to cloud platform demonstration, and then everything in the showcase then radiates from that centerpiece, uh, you know, right, right. At, right at the nexus of all the activities. So the experience starts there and propagates its >>Way. Well, I wanna get into some of the themes and the set pieces you have here. Um, you are in technical marketing and this platform is a tech play. So it's not so much just solutions that you're enabling the theme this year is very much technical marketing. So there's edge, especially cloud data and edge is the big themes security's baked in throughout the whole set, right as well. And that messaging, but it's technical marketing right now. We had, you know, platform play uett packer is a platform. Google packer enterprise is a >>Platform. It is, and it's a, it is a, it's a software platform. Um, you, it, it really completes a cloud strategy. And when you really think about it, I, again, I know some of these numbers have been floating around. Um, but, uh, you know, 70% of all data is still staying OnPrem for good reasons, you know, and then 30% of it can be out there in the public cloud. Uh, so what you kind of have is an incomplete cloud strategy, if you will. And what's happened is that organizations have gotten spoiled a little bit by the cloud experience. Mm-hmm <affirmative> right. That, you know, I, you know, your, your dev teams say go, Hey, I just, I wanna work in a Azure. I wanna work in AWS. I love how I go through this process. Why can't I do that with my on-prem stuff? Why, you know, why, you know, I want that kind of experience. So it organizations are really being challenged about how to create that, that kind of service and that experience to their customers because expectations are not because >>Data ha it has to be inclusive. It can't be exclusive to just one part of the organization. >>Yeah. And so how did you, how did that impact obviously, cause GreenLake was coming together, you know, you got the multiple months in advance planning for this big event, right. A lot of lot work goes into it. What was some of the impact to the execution of this event, um, that you can share in terms of the set pieces? Some of the displays was there was there, I won't say radical cause it's not radical. It looks, it turned out great. But what are some of the popular things happening here? What worked, what resonated with customers and what was different from, from, uh, that GreenLake enabled you to do differently? >>Well, I mean, first the first thing is that we, we kind of had a high touch experience at that center point, right. That nexus, the hub of the activity, the GreenLake edge to club platform, uh, demonstration. And it started with us just kind of, you know, having the strategy about first of all, if you sh, if you guys show this and I know, I think maybe you have, when you enter in, we've got like this big aha moment, right. And that aha moment is that platform right in the center, surrounded with wonderful visuals above, below, you know, behind, uh, all around it. But we, we, we had to think about, okay, now I'm staring at this thing. What am I, how am I gonna experience it? So, uh, when I say a high touch experience, we start with a, what I call a platform generalist that would greet you up front, engage in the conversation, you know, so realize that, you know, Dave is a network operations director, he's got some keen interests. >>He has some sort of peripheral idea about what the, uh, HPE GreenLake edge cloud platform is about, but what can it really do for him? You know, what can do, what can he use? How can he use it? So we start at that level of conversation, you know, socialize the core services, the attributes, you know, the, the technology that is actually enabling it. And then as we've identified in our conversation that you're a network geek, you know, and you want to understand, you've heard about Aruba, you know, how's Aruba central play into that. How do the networking services play into that? And so for then we take that, that, that big leap and go up two steps up onto the platform. And we go over to the network specialist, what I, what I'm calling a platform specialist, uh, who understands all the things about the platform, but then is peaked in networking. And we have that conversation and you see how the Aruba customer can benefit by this evolution, uh, and how the different platform services combine to give a holistic experience across a company. And so when I'm an it ops director, and I'm trying to service my network, guys, my storage guys, my compute guys, my external cloud services guys, that this is an environment that I can, so you >>Have an experience where they come in, they can easily move to a point quickly in the display, on the platform >>And it's tailored for them. Exactly. Right. Exactly. That's the exactly. Right. And so if I transition over to you, you know, and you're my, you know, you're my specialist, you know, you're not saying, Hey, Dave, what brings you here today? What are you today? <laugh>, you know, I, I mean, you're prequalified, it's a prequalified conversation. We jump into it. And then that specialist is armed with knowledge as to where, okay, this guy is really interested in switching technology and switches as well. Well, that's demo five 12. Mm-hmm <affirmative>, you know, let me have one of my colleagues take you over there. So then you're, you're escorted over to demo five 12 to go to the next level or perhaps, and this has happened throughout the week that people want to take a test drive of the environment. And so we have the HPE GreenLake living lab, and we have a, a test drive environment right there. >>And so we bring you right to that test drive, where you can, you know, kick the tires yourself, you fire up a live environment. We have a series of exercises that you're taken through. And, uh, I think I've just checked with one of my colleagues where like, well over, you know, well, over 1100 experiences of people doing that here. And that lab has 25 seats, but also externally. Yeah. So right off of hpe.com, that same test drive experience that we're doing here. People can launch at home. And so we got in this morning, there were like four guys logged in from New Zealand, you know, doing exercises, which is pretty neat. So, so when you ask me the question, what are the design considerations, uh, that HPE GreenLake that we baked in and thought through it's again, that, Hey, it's a, it's a big thing. Yeah. It's a big, it's an experience. Let's start with you just digesting the, you know, the comp basic concepts. Then let's talk about your persona and how it directly maps to what you can do. And then if you want to get deeper, you know, we have the solutions that we design behind it, solution demos, and, and if you wanna drive it, let you know, buckle up. Let's >>Go. Yeah, you get right to a spot, multiple monitors, great experience, high touch. Um, that's awesome. I gotta ask you another question. Cause you've been, you know, pre pandemic, you've been doing a lot of this technical marketing and events and then virtual hit right now. We're back face to face, right? It's clear, Dave and I were just talking about our, on our opening day, year on day. One, people love to see each other back. Every event we've been to face to face. People are energized to a level. We didn't even see. What are you seeing here in terms of performance? Obviously, you got sales people here, you got executives here, you got customers right. Face to face, right. >>Doing belly to belly, >>Belly to belly, as Dave says, that's a positive, what's it like, explain what it's like. >>Well, I mean, you don't, you never know what you got until it's gone, right? >>Yeah. >>You, and so people didn't really realize that, Hey, we really needed to have this kind of touch and this, this kind of activity. And it was funny because people be before the pandemic, there was also a push to do a lot of virtual stuff, you know, economies of scale. Yeah. You know, some of that stuff works. Teams are making decisions, but then it all goes away and people realize how valuable, you know, just the conversations were, you know, meeting >>Somebody, relationships, meeting >>Somebody for a coffee, you know, talking through different bumping into colleagues than that. You haven't seen for years, or you worked with somebody and now they're doing this. And then you realize you have some sort of synergy with each other and you know, you can still help each other. And just the, just, you know, just the discovery <laugh> of being at discover, you know, and running into these different types of things. So, uh, well >>You think about it norm, you know, we, we've done plenty of stuff virtually we have, but I think we've talked maybe four times this week. Yeah. You've seen you here walking around the hallways. We saw you last night, right? Yeah. You just, that just wouldn't happen in your little virtual >>World. Yeah. I mean, not at all. And during that virtual era, and I think we'll look back on that and we're still gonna do virtual stuff >>Course, and we're learning, >>It's got value, but I just want to thank you guys for just being the cube and the whole team, you know, Frank, everybody just tremendous partners through that because you can still look at that content that we produced together last year and it's still relevant. We're still sharing it. It still has impact. We, we point, you know, we tell people, Hey, here's call to action. You're leaving. Discover by the way, there's these three or four pieces out on the cube that really go with, go at this topic. >>Right. That GreenLake event we did last year was phenomenal. >>It was, it was, and it was a partnership with you guys. And I, I, you know, I, I speak on, on behalf of many of my colleagues here at HPE, we just wanna thank the cube for all the support, creativity, uh, and how we got through that >>All together. We we'll back at you because norm you were a real innovator when John and I first met you, we were like, Hey, this guy, actually, he's gonna, he's gonna push us to some new levels. Technical >>Marketing know >>That's our, our team marketing. Like our team was a little nervous, a lot nervous actually, because you know, you do, you are not only demanding, but you're super creative. Well, thank you. And so you, you helped us, you know, up, up our game. >>Yeah. Thanks a lot. Yeah. You know, Frank was getting, Hey, Frank, Dave, can you guys do this? You >>Know, so yeah, we were on the background. >>I mean, but we were, we were growing and surviving and thriving together and getting through it, but what's coming out. The other side now is a new format. You mentioned virtual. That's not going away. Hybrid is a steady state for all of us. Even the cube. Yeah. So the new protocols and the new standards are emerging. And I think the newness of it scares people also like how do you do it? Um, who, whose role is it to take the virtual and digital? So this whole new set of experiences still coming out. Yeah. What's your vision? How do you see this? Cause we're face to face clearly is what everyone wants from school kids to adults. Right. We want face to face. Right. How does digital fit in? >>Well, I mean, that's, that's a, that's a really tricky question. I'll give you a, a, I'll kind of back into the answer a little bit. Um, you guys can see this, right, right behind us. We had this whole backdrop here, greetings from the edge of virtual reality experience. Well, we built that. We built that during the COVID era, so we could have experiences with people remotely. Right. Uh, and we used it for our executive summit, you know, last year for the virtual discovery, we shipped those Oculus headsets to everybody. They, everybody jumped into it. And so I was sitting there being a host, you know, with four CTOs that were scattered all over the world. So we were in cyberspace together. Right. And so of course being good, uh, you know, good business people we realized, Hey, this is pretty fun. So let's dust it off and bring it out here for the more general public. >>So again, it was like a 200 person, you know, uh, executive level experience and all of that, but it had tremendous value, different types of experiences. I recommend you try it if you ever have the opportunity. Um, so that's a way that we start emerging virtual reality and digital experiences to try to keep that human connection, but now we're using it again. And everybody's in these little pod rooms, six of them together. So they're having this experience in cyberspace and they're having it physically. Yeah. And so I think some, and everyone's enjoying being together and still in cyber space together. So I think when we start to build assets and we start to look at different types of things and experiences, we gotta think, we, we gotta think through that now. Right. You know, how is this, how is this investment or this, this experience, how's it gonna translate, you know, outside of these four walls, right. And how can we use it outside of these four walls, uh, and create, you know, a more engaging experience. So that's a little bit of a backing into that answer, but I think I'm, I'm, >>It's emerging. It's >>Important. Well, I'm saying it more as an example of us thinking through and trying to leverage. Yeah. >>I love it though. I mean, you always, you've always been struck me as a visionary and I, I loved that answer and I can just see, it's just gonna progress by the end of the decade. This is gonna become right. Uh, a a, you know, a normal sort of practice, and we're gonna bring people in from the outside and interacting. I love what you were saying about, yeah. Even though we're here physically, we're actually creating a virtual world within this physical pod. We are. Where can people discover more about that? About, about, about the shows, the content that >>Was here? Well on hpe.com, you can just launch into discover. We have a tremendous amount of content that's been recorded, keynote sponsor sessions, the cube they're dialed in all kinds of different pieces of assets that we've done. Um, I'll plug just another couple of things just to, again, to talk about the connectivity of things that we're doing. So one of the projects that I lead, uh, I am very proud to lead is HPE space born and our space born computer space, born computer two, flying a most powerful machine, uh, computer to ever fly in space. Uh, we've been up there for a year. We've done 24 different experiments over the year to, for the benefit of the entire scientific community. Um, also, you know, doing things for the ISS national lab in NASA, our partners up there, but what we've got is we've built a scale replica of the Columbus module, right? So this is, you know, this is a 28 by 12 foot module. Hey, we're bringing her home seriously. >>They're gonna pull the plugs. They're gonna pull the >>Plug on me soon. Right. So anyway, so we have that module built, right? And this is, uh, we work with a Hollywood production company. We've had it before, but you know, we we've customized it. We have a live link to the ISS station in there. And, and so we're talking about everything that we're doing there, but also in this virtual reality experience, we have you going on a space walk, right. And so we've, we've captured that as well. So we've, we're tying this physical and virtual experience together. Uh, and, uh, so it's a fun project. So you can check that >>Out. We did exit scale together during the pandemic, and that's when I first really got into to space point. It was awesome to see frontier announced actually breaking through the exo scale barrier. We, we were on the cusp, but we, we now see it breaking through. So, yeah. Congratulations on that. Thank you >>Very much. And, you know, a couple, you know, just couple other things that we're doing, that's pretty exciting. I don't, I don't wanna give away all my tricks, uh, but you know, we've organized our demonstrations through the customer lenses. So we have these customer journeys that we see people that are using our technology, you know, so I'm, I'm not talking about the storage business unit or, you know, the networking business unit, but how are our customers really trying to, you know, advance AI and machine learning, for example, how are they actually trying to, you know, protect their data? You know, the different things, the business issues, the business issues. Yeah. And so we've organized our demos through that, and we have these, these pods and then satellites, and you, you, you give you walk through that whole thing and it's addressing different aspects of that. >>Um, and then another thing that we've done is we have tours here, uh, as well, where, cuz there's so much content that people can take tours and you know, 1400 people have taken those tours. Uh, you know, and these are guided tours, headsets, curated, big numbers, designated places to go. And we see big traffic the first day or so and by design. And so we hit the highlights and then they decide how to use their valuable time later in the showcase about what they want to deep dive on. And so that's been a tremendous success for >>Us. Well norm thanks for bringing us on the tour of discover. Yeah. Well and really, you know, sharing that with our audience and you've been an awesome partner. And as you say, a great innovator, hope I can't wait to see what's next. All right. >>You so much. Hey, thanks for letting me on here guys. Welcome to our pleasure. I'm somebody I made. You're a Cub >>Alumni alumni. You're alumni. Welcome to alumni. So >>Guys great. Our week. That's a wrap on on day three, uh, Dave Valant day, John furrier for Lisa Martin. Don't forget to go to Silicon angle.com where we've got all the news, all the interviews that we've done this week, get written up and posted on Silicon angle.com. The cube.net I publish every week. Uh, my breaking analysis on, on, on wikibon.com. It's on a podcast. So check that out. Thanks to everybody. Thanks for the crew. Everybody back at the office. Really appreciate it. Great job. And we'll see you next time. All right.

(upbeat music) >> theCUBE's back on day three here in Cloud City Mobile World Congress. This is where all the action is, and this is theCUBE set. I'm John Furrier with Dave Vellante. We're here with DR, Danielle Royston, who is the CEO of TelcoDR, as well as the CEO of Totogi. Great to see you again. >> Hey. >> Hey, how are you guys? >> Good. >> Great time, great boat last night, good industry executives. A lot of intimate high player, big players here in the industry, even though not a lot of attendance, but the right people are here and events are back. >> Yeah. Yeah. I think, MWC was the first event to cancel with COVID in February, end of February 2020. So first big event to come back. It's such a nice symmetry. Yeah. Typically you have big delegations, hundreds of people from the big groups coming to the show. We're seeing the executives are coming, smaller delegations, but they're all in the booth and that we're having great conversations and it's awesome. >> Yeah, and the thing I will say is that theCUBE's back too. We'd like them to be, be in here in the action, because one of the things that's happened with this hybrid events is that people are watching. And so there's a virtual space and the physical space and Cloud City has built out paradise. It's beautiful and spectacular behind us. If you look around, for the people who can't see, it's really made for the combination of on-site and virtual experience, the content, the people, Bon Jovi last night, it's just the top of Mobile World Congress and it's translating to the industry. This has been amazing. So congratulations. >> Thank you so much. >> Well. I got to say, you have a lot to say as we all know. >> Danielle: Yeah. >> But I think it was easy for the big guys. >> Danielle: Can't shut me up. (laughing) >> That's why we love you in theCUBE. But I think it was easy for the big guys to tap out and say, hey, we can save a bunch more money. >> Danielle: Yeah. >> We don't really have much to talk about. We're going to talk about it again. Hey, let's talk about 5G. >> Yeah, yeah, exactly. >> 5G's coming. >> It's the revolution. >> And I told you about 5G though. >> Whereas the narrative here is all about the future. And it's not about the future of blah blah blah, it's about the future of, this is the journey that we're taking and here's where it's starting and with the meat in the bone. >> Yeah. And I think what's really interesting about Cloud City is the fact that we've brought these different players together that are all focused, as you said, on the future. And I'm starting to see these connections where they're collaborating. Vendors that didn't know each other probably would never have partnered before. Totally different areas. I'm hearing the conversation in the booth about like, hey, I talked to P1 security, or I went and talked to LMX and we're putting deals together 'cause we're complimentary. And it's amazing and so that's really good. >> And the integration partnership, heard that from Google yesterday on our news exclusive break in there. They see integration and they're talking about Android, with what Android did for mobile. They're seeing a whole new software paradigm coming into telco. Its partnership, its ecosystem and open. These are new kind of dynamics. >> And I think for you guys, when you say integration and open, I think those things are really paired and they're important. A lot of times Telco people will hear integration, and they'll think customization. Coding it up and customizing it so that they talk to each other. But I think the open part of that is really important where we're connecting via APIs. And I think that's bringing the hyperscalers. That's what they do. They provide these systems and the software that's all API based and you can use it very quickly and you can unravel it if you need to. And it's that feature velocity, we talked about a couple days ago. >> And automation is the underpinning. >> Yeah, yeah. >> I mean, that's really the theme, right? >> Right. >> It's not like a one-off hardcore custom integration that's going to be frozen. >> One time to upgrade it every 18 months or whatever it is. Yeah, it's a life. >> Dave: How about Musk yesterday? >> John: I mean, he's always a crowd pleaser. First of all, my kids love him. He's crazy. >> Who doesn't love Elon Musk? >> I mean, he is amazing. He's a builder and he takes no prisoners. He's just, you know what, my goal was not to go bankrupt. That's what he said a couple of years ago. >> Dave: Which was brilliant because everybody's gone bankrupt in that business and he's just close it off. >> And he's just like, look, we're here, we're just going to chip away at it and we're just going to keep striving, not making up excuses. He takes the failures. He takes the phase plans. He gets back up and he keeps going. He's focused on building. >> He's focused on one thing. He's not focused on everything. He's focused on getting to Mars. And I think that's what I like to compare myself to Elon Musk. Not that I'm building rockets or getting to Mars, but that the hard problem that I'm solving is getting Telco to the public cloud and that's going to take a decade. It might have been accelerated because of COVID, it might've taken 20 years and now it might take 10. But you look at what he does, and that guy, he has haters on Twitter that are pew- pew. Always like, throw in their bars, but he's like, I got my rocket company. I got my communication and space company. We're going to need the bore holes, the Boring Company. I need batteries, I got my Tesla company. And so this guy focuses. >> He's got some haters, but he's got a lot more lovers on his other side because people might not know this, but he fired the entire PR department because he's like, I don't need PR. I'm just going to go do my own, his own PR. >> Obviously, the crypto stuff's always fun. Doge coins, always a laugh. >> Danielle: I think he just plays around with that. >> And it's just more of like playing. >> Yeah, that's a watch this. >> He just likes to see what he can do. >> Doge coins app. That Saturday Night Live was an interesting thing he did, but I think he illustrates the point of a new generation. And I think my young kids, not young, they're in their twenties now. They look at him and they say, that's aspirational because he's building and he's focused on that one thing. And again, the growth that you mentioned Telco to the cloud, getting back to that is that, I want to ask you this growth question. It used to be like, okay, growth was there, people expanded cell towers, networks were networks. Now it seems that the growth of Telco, with Telco is going into, with the edge and all the open-RAN stuff, which means we need more infrastructure. >> Danielle: Yeah. >> We need more stuff. There's more needed and there's growth behind them. What's your reaction? >> I think we need more software. Software eats the world. And it's, I mean, there's a lot of hardware to chomp in Telco and it's just going to keep eating it and that's just going to accelerate. I think that's where Telco needs to start to build that muscle. They don't have great software capability. They don't have public cloud building capability. And so that's a big up-skilling. That's a new hiring. And I think it's an executive conversation. It's not just an IT thing or just a marketing thing or networking thing. >> I got to chime in here for a second because there are a lot of parallels with how the data center transition has occurred. And what's happening here. We talk about all the time. It was a mainframe, et cetera. There are parallels. >> Danielle: Yeah, yeah. >> And what happened when the data center went to software-defined a whole bunch of hardware was allocated to run all the software-defined stuff. It wasn't built for that. >> Danielle: Yeah. >> But the cloud, what you guys are doing with Totogi and taking advantage of AWS's is Nitro and Graviton. That's built to be software-defined. >> Correct. >> And so the Telcos are going to go through the same thing. If they just virtualize, they're going to say, oh wow, we're wasting 30% of our power, our compute power on just supporting all this software-defined stuff, because it wasn't built for that, but the cloud is built for that. >> Danielle: Yeah. >> And that is going to be a huge difference. >> And I keep trying to make this distinction. And I think people in Telco still don't get this about the public cloud. They think of it as a place. It's a place to run a workload. And that tells me, they think of it as infrastructure. They think of it as servers still like, well, I'm going to run into my closet or AWS's closet. I'm like, and I was just having a conversation about this with this senior person from GSMA. I'm like, it's actually about the software that's there. It's about the databases they're building and the analytics and the AI and the ML but they let you buy by the minutes or by the API call. And that is my, like you need to think about that because it's mind-blowing. It's a totally different way to think. >> And you're totally right. I'm just going to, again, give you props on this. I've had many one-on-one with Andy Jassy for the past seven years for exclusives, but over the years it's been consistent. Each platform lifting and shift wasn't the end game. Okay. Replatforming in the cloud, certainly a great advantage, a great starting point. It was the refactoring. And that's why you see Amazon Web Services, for instance, keep adding more services 'cause that's the model. >> Danielle: Yeah. >> They keep offering more goodness so that the businesses could refactor, not just replatform. >> Danielle: Yeah. >> And that's what you're getting at. I think with the AI and machine learning, where you start getting into these new use cases, but why I couldn't do that before. >> Danielle: Right, right. >> This is going to be a huge game changer. >> Well, Forrest Brazeal. A great guy, a cloud guru wrote a great blog called a lift-and-shift is a ticking time bomb. And it's a great start to get your stuff over there. It forces your team to start to interact with like an AWS or GCP in a real way. Like now they, they got to use it. You take it away and I'm like, but once you move it, you got to re-factor. You got to rewrite. And then that's why it's a ticking time bomb. You got to get, move it over and get going. >> Danielle Royston, DR, Digital Revolution of you are one. You got it here, Telco DR. And this has been a great experience for theCUBE, as we get back to business with real life events and virtual. For the folks who couldn't make it here, Barcelona is still a great city. Obviously a great place to come and the events will be back. They'll be hybrid. They'll be different. Certainly, theCUBE will wait double them down, but, we've got a great video. I want to share for the group, the Barcelona and Cloud City. This is a montage of what it's like here and a little experiential video. So take it away and run that video. (upbeat techno music) >> Hi, I'm Katie Goldfinch, here in Barcelona for an action packed Day Two at TelcoDR's Cloud City. This morning, the focus was firmly on DR. and her MWC keynote, which told Telco execs in no uncertain terms that now is the time to act on embracing public cloud. Back in Cloud City content ruled the day with both theCUBE and Cloud City live stages, hosting public cloud, thought-leaders covering a wide range of topics to educate and inspire attendees. And in the beautiful space of Cloud City, the excitement grew throughout the day as we streamed MWC's exclusive keynotes from Elon Musk and preparations got underway for tonight's star performer, Jon Bon Jovi. (upbeat techno music) Wow! What an amazing day from groundbreaking keynotes into space and back to a star studded performance. Don't forget, you can catch up on anything you missed and join us for the rest of the week at cloudcity.telcodr.com or following #cloudcity. (upbeat techno music) >> Okay, we're back. That was great look at what's going on here in Cloud City. This next video, DR, you're going to love this. Your keynote highlights and some Bon Jovi highlights, which by the way, was the most epic thing. People were packed. >> Dave: It was exciting. >> Place was packed. It had the security clicking people, counting all the people, people are standing back. All the people from their booths are all coming in to watch. >> Dave: He was pumped. >> Let's take a look at this awesome highlight video from yesterday. (upbeat techno music) (upbeat techno music) >> Okay, we're back at theCUBE. Dave, that was a highlight reel yesterday. DR has got some action on stage, great messaging, revolution, digital revolution. >> You know your comment about how you think like Elon Musk. That's an inspiration from it. I mean, what a lot of people don't know is when you look at autonomous vehicles, remember you're driving down Palo Alto, you see one of those lidar things. He's doing away with lidars, it's too expensive. It's $7,000. He's taking it with cheap cameras and software down to a couple of hundred bucks per vehicle. >> Danielle: Wow. >> That's the way he thinks. And you're doing the same thing to Telco. >> Danielle: I am. I am I'm trying to change Telco. I mean, he's changing the world. He might be one of the most important humans on Earth right now. I don't think I'm exactly that level, but I'm trying to become a really important person in Telco. We have this great message. I think it's going to help Telcos to get better businesses. And I think it's a great idea. >> For the folks out there watching, what is that big change? If you're going to drive down this Cloud City street, main street of Cloud City and just all about Cloud. Because public clouds here, it's going to become hybrid, dynamics, operating models are changing. What is the key message that you'd like to send? >> I think all of the software in Telco needs to be rewritten. And that's how many millions of lines of code is that? And it's going to be shrunk down and put out on public cloud and rewritten using the software Legos of the public cloud. That is a big undertaking. No one's working on it. I'm working on it. I'm doing it. Let's go do it. >> Let's do it. And if you look out a couple of years, what would be a successful, what does checkmate look like in this chess game? >> I'm winning? #winning >> You're opening move is pretty good as we say in chess. >> I mean, I think it, it takes, again, it takes singular focus like Elon Musk on Mars. Someone needs to singularly focus on getting the public cloud and you can't sit there and protect your old business models, your CR revenue, if you're Amdocs. Give that up. When they start to give up their CR revenue to focus on public cloud, then they'll be, okay, there's a worthy adversary out there really focusing on it. >> I mean the late Clayton Christensen had all the same things. Innovator's dilemma. You get stuck here, what do you do? >> Danielle: What do you do? >> You kill your own, you eat your own to bring in the new, I mean, all these things are going on. This is a huge test. >> And to be willing to burn some boats. >> I think it's transparency, simplicity, and the consumer saying, hey, this is a great experience. That's the Tel sign. >> Danielle: Yeah. >> And that's what we're going to see over this next decade. >> Plus consumers love their Telco. I can't wait for that. I want to love my Telco. >> Dave: Like you love Netflix. >> Yes, exactly. >> DR, we love you because you've got a bold vision. You're putting it out there and you're driving it. You're walking the talk. Congratulations. And again, Cloud City's a home run. >> Awesome. >> Great success. Thanks for having theCUBE. >> Thank you guys. As always super fun. Great day. >> Okay. >> CUBE's coverage here. And remember, we're here getting all the action and it's all going to go online after a synchronous consumption. But right now, it's all about Mobile World Congress and Cloud City. This is the action. And of course, Adam in Cloud City Studio is waiting for us and he's going to take it from here.

(soft upbeat music) >> TheCUBE's back on day three here in Cloud City, Mobile World Congress. This is where all the action is and this is theCUBE's set, I'm John with Dave Vellante. We're here with DR, Danielle Royston, who is the CEO of TelcoDR, as well as the CEO of Totogi. Great to see you again. >> Hey. >> Hey, how are you guys? >> Good >> Great time, great booth last night, good industry executives. A lot of intimate high player, big players here in the industry, even though not a lot of attendance, but the right people are here and events are back. >> Yeah. I think, MWC was the first event to cancel with COVID in end of February 2020. So first big event to come back, it's such a nice symmetry. Typically you have big delegations, hundreds of people from the big groups coming to the show. We're seeing the executives are coming, smaller delegations, but they're all in the booth and that we're having great conversations and it's awesome. >> Yeah. And the thing I will say is that theCUBE's back too we'd like them to be in here in the action, because one of the things that's happened with this hybrid events is that people are watching. And so there's a virtual space and the physical space, and Cloud City has built out paradise, it's beautiful and spectacular behind us. If you look around for the people who can't see, it's really made for the combination of onsite and virtual experience. The content, the people Bon Jovi last night, it's just the top of Mobile World Congress. And it's translating to the industry, this has been amazing. So congratulations. >> Danielle: Thanks so much. >> Dave: I think I got to say, you have a lot to say as we all know. But I think it was easy for the big guys. >> Danielle: Can't Shut me up. (chuckles) >> That's why we love you in theCUBE. But I think it was easy for the big guys to tap out and say, Hey, we're going to save a bunch more money, we don't really have much to talk about. We're going to talk about again. Hey, let's talk about 5G. (chuckles) >> It's a revolution >> Have I told you about 5G though. >> Whereas the narrative here is all about the future and it's not about the future of blah-blah-blah, it's about the future, this is the journey that we're taking and here's where it's starting, and with meat on the bone. >> Yeah. I think what's really interesting about Cloud City is the fact that we've brought these different players together that they're all focused, as you said, on the future. And I'm starting to see these connections where they're collaborating. Like, vendors that didn't know each other probably would never have partnered before, totally different areas. I'm hearing the conversation in the booth about like, Hey, I talked to people in security, or I went and talked to LMX and we're putting deals together 'cause we're complimentary and it's amazing. >> John: And integration partnership, heard that from Google yesterday on our news exclusive break in there, they see integration. And they're talking about Android with what Android did for mobile. They're seeing a whole new software paradigm coming into Telco, it's partnership, it's ecosystem and open. These are new kind of dynamics. >> Danielle: And I think for you guys, when you say integration and open, I think those things are really paired in and they're important. A lot of times Telco people will hear integration, they all think customization. Coding it up and customizing it, so that they talk to each other. But I think the open part of that is really important where we're connecting via API's and I think that's bringing the hyper-scalers, that's what they do. They provide these systems and the software, that's all API base and you can use it very quickly, and you can unravel it if you need to. And it's feature velocity we talked about a couple of days ago. >> And automation is the underpinning of that. I mean, that's really the theme, it's not like a one-off hardcore custom integration that's going to be frozen. >> Danielle: One time to upgrade every 18 months or whatever it is, it's alive. >> Dave: How about Musk yesterday? >> John: I mean, he's always a crowd pleaser. First of all, my kids love him. He's crazy. >> Who doesn't love Elon Musk? >> I mean, he is amazing. He's a builder. And he takes no prisoners. He's just, you know what? My goal was not to go bankrupt. That's what he said a couple of years ago. >> Dave: Which was brilliant because everybody's gone bankrupt in that business and he's just blows it off. >> And he's just like, look it, we're here to just want to chip away at it and we're just going to keep striving, not making up excuses. He takes the failures, he takes the face plants, he gets back up and he keeps going. He's focused on building the future. >> He's focused on one thing, he's on focused everything. He's focused on getting to Mars. And I think that's what I like to compare myself to Elon Musk, not that I'm building rockets or getting to Mars, but that the hard problem that I'm solving is getting Telco to the public cloud. And that's going to take a decade. It might have been accelerated because of COVID, it might've taken 20 years and now it might take 10, but you look at what he does and that guy, he has haters on Twitter they're kind of pew pew, always like throw in their bars, but he's like, I got my rocket company, I got my communication and space company. We're going to need to bore a holes, The Boring Company. I need batteries, I got my Tesla company. And so this guy focuses. >> John: He's got some haters, but he's got a lot more lovers on his other side because people might not know this, but he fires the entire PR department because he's like, I don't need PR I'm just going to go do my own, his own PR. Actually the crypto stuff's always fun, Dogecoins are always a laugh. >> Danielle: I think he just plays around with that. >> And it's just more of like playing. >> Dave Vellante: And that's like, watch this! (laughs) >> He just like to see what he can do. >> I said that live was interesting thing he did, but I think he illustrates the point of a new generation. And I think my young kids, not young, they're in their '20s now, they look at him and they say, that's aspirational because he's building and he's not, he's focused on that one thing. And again, the growth that you mentioned Telco to the cloud, getting back to that, I want to ask you this growth question. It used to be like, okay, growth was there, people expanded cell towers, networks were networks, now it seems like the growth of Telco, what Telco is going into with Edge and all the open ranch stuff, which means that we need more infrastructure. We need more stuff, there's more needed and there's growth behind them. What's your reaction? >> Danielle: I think we need more software. Software eats the world. And it's, I mean, there was a lot of hardware to chomp in Telco and it's just going to keep eating it, and that's just going to accelerate. I that's where Telcos need to start to build that muscle. They don't have great software capability, they don't have public cloud building capability. And so that's a big up-skilling that's a new hiring and I think it's an executive conversation. It's not just an IT thing or just a marketing thing, or networking thing. >> Dave: I got to chime in here for a second because there are a lot of parallels with how the data center transition has occurred. And what's happening here. We talk about all the time, Oh, it's a mainframe, et cetera. There are parallels. And what happened when the data center went to software-defined a whole bunch of hardware was allocated to run all the software-defined stuff. It wasn't built for that, but the cloud, what you guys are doing with Togi and taken advantage of AWS's Nitro and Graviton. That's built to be software-defined. And so the Telcos are going to go through the same thing. If they just virtualized, they're going to say, oh wow, we're wasting 30% of our power our compute power on just supporting all this software-defined stuff, 'cause it wasn't built for that, but the cloud is built for that. And that is going to be a huge difference. >> Danielle: And I keep trying to make this distinction and I think people in Telco still don't get this about the public cloud. They think of it as a place. It's a place to run a workload. And that tells me, they think of it as infrastructure. They think of it as servers still like, well, I'm going to run into my closet or AWS' has closet. I'm like, and I was just having a conversation about this with a senior person from GSMA. I'm like, it's actually about the software that's there, it's about the databases they're building and the analytics and the AI, and ML that they let you buy by the minutes or by the API call. And that is like, you need to think about that 'cause it's mind blowing, it's a totally different way to think. >> John: You're totally right. And just going to again, give you props on this. I've had many ones with Andy Jackson for the past seven years for exclusives, but over the years it's been consistent. Each platform lifting and shift wasn't the end game. Re-platforming in the cloud certainly a great advantage, a great starting point. It was the refactoring. And that's why you see Amazon Web Services for instance, keep adding more services 'cause that's the model. They keep offering more goodness so that the businesses could refactor, not just re-platform. And that's what you're getting, I think with the AI and machine learning, where you start getting into these new use cases, but why couldn't do that before? >> Danielle: Right. >> This is going to be a huge game changer. >> Well Forrest Brazeal, a great guy, a cloud guru wrote a great blog called a lift-and-shift is a ticking time bomb. And it's a great start to get your stuff over there, it forces your team to start to interact with like, an AWS or GCP in a real way like now they, they got to use it. You take it away and I'm like, but once you move it you got to re-factor you got to rewrite and then that's why it's a ticking time bomb. You got to move it over and get going. >> John: You know, Royston DR, Digital Revolution of you are one, you got it here TelcoDR and this has been a great experience for theCUBE as we get back to business with real life events and virtual, the folks who couldn't make it here, Barcelona is still a great city, obviously a great place to come and the events will be back, they'll be hybrid, they'll be different. certainly theCUBE will lay, doubling down, but we've got a great video. I want to share for the group, the Barcelona and Cloud City, this is a montage of what it's like here and little experiential video. So take it away and run that video. (slow upbeat music) (upbeat music) >> Hi, I'm Katie Goldfinch here in Barcelona for an action packed day two at TelcoDR's Cloud City. This morning, the focus was firmly on DR and her MWC keynote which told Telco execs in no uncertain terms that now is the time to act on embracing public cloud. Back in Cloud City, content ruled the day with both theCUBE and Cloud City live stages, hosting public cloud thought-leaders, covering a wide range of topics to educate and inspire attendees. And in the beautiful space of Cloud City, the excitement grew throughout the day as we streamed MWC's exclusive keynotes from Elon Musk. And preparations got underway for tonight's star performer, Jon Bon Jovi. (upbeat music) >> Katie: Wow! What an amazing day from groundbreaking keynotes into space and back to a star studded performance. Don't forget, you can catch up on anything you missed and join us for the rest of the week at cloudcity.telcodr.com or following #cloudcity. (slow upbeat music) >> OK we're back, that was great look at what's going on here in Cloud City, this next video DR, you're going to love this. Your keynote highlights and some Bon Jovi highlights, which by the way, was the most epic thing, people were packed, >> Dave: It was exciting. >> This place was packed. It had the security, clicking peoples, counting all the people, people are standing back. All the people on their booths, they're all coming in to watch. >> Dave: He was pumped. >> Let's take a look at this awesome highlight video from yesterday. (slow upbeat music) (upbeat music) (slow upbeat music) >> Okay. We're back to theCUBE. Dave, that was a highlight reel yesterday. DR has got some action on stage, great messaging, revolution, digital revolution. >> You know your comment about how you think like Elon Musk, that's an inspiration from it. I mean, what a lot of people don't know is when you look at autonomous vehicles, remember you're driving down Palo Alto, you see one of those LIDAR things, he's doing away with LIDARs, it's too expensive. It's $7,000, he's taking it with cheap cameras and software down to a couple of hundred bucks per vehicle, that's the way he thinks and you're doing the same thing to Telco. >> Danielle: I am. I'm trying to change Telco. I mean, he's changing the world. He might be one of the most important humans on earth right now. I don't think I'm exactly that level, but I'm trying to become a really important person in Telco, we have this great message. I think it's going to help Telcos to get better businesses ad I think it's a great idea. >> John: For the folks out there watching, what is that big change? You're going to drive down this Cloud City street, main street of Cloud City and just all about cloud. 'Cause public clouds here, it's going to become hybrid dynamics, operating models are changing. What is the key message that you'd like to send? >> I think all of the software in Telco needs to be re-written. And that's how many millions of lines of code is that and it's going to be shrunk down, and put out on public cloud, and re-written using the software legos of the public cloud, that is a big undertaking. No one's working on it. I'm working on it. I'm doing it. Let's go do it. >> John: Let's do it. And if you look out a couple of years, what would be a successful, what does checkmate look like in these chess game that you play? >> (chuckles) I'm winning, hashtag winning. (laughs and crosstalk) I think it takes, again, it takes singular focus like Elon Musk on Mars. Somebody needs to singularly focus on getting to the public cloud and you can't sit there, and protect your old business models, your CR revenue if you're Amdocs, give that up. When they start to give up their CR revenue to focus on public cloud, then they'll be, okay there's a worthy adversary out there really focusing on it. >> John: I mean the late Clay Christianson had all the same things. Innovator's dilemma. You just get stuck here, what do you do? You kill your own, you eat your own to bring in the new, I mean, all these things are going on, this is a huge test. >> Danielle: If we're willing to burn some boats. >> I think it's transparency, simplicity, and the consumer saying, Hey, this is a great experience. that's the tell sign. And that's what we're going to see over this next decade. >> Consumers love their Telco, I can't wait for that I want to love my Telco. >> Dave: Like you love Netflix. >> Yes, exactly. >> DR, we love you because you've got a bold vision. You put it out there and you're driving it. You're walking the talk. Congratulations. And again, Cloud City is a home run, great success. Thanks for having theCUBE. >> Thank you guys as always, super fun. Great day. >> Okay. TheCUBE's coverage here and remember we're here getting all the action, and it's all going to go online after, synchronous consumption. But right now, it's all about Mobile World Congress and Cloud City. This is the action. And of course, Adam in Cloud City Studio, is waiting for us and you're going to take it from here.

>> Live from Las Vegas, it's theCUBE covering AWS re:Invent 2018 brought to you by Amazon Web Services, Intel and, their Ecosystem Partners. >> Okay, welcome back everyone. Day three, we're live in Las Vegas for AWS re:Invent 2018. It's our sixth year covering Amazon re:Invent and AWS, Amazon Web Services meteoric rise in value, profitability, market share, just a rising tide floating all boats. I'm here with Dave Vellante. We're kicking off day three analyzing, you know, Vernon's keynote. Things start to wind down. Yesterday was kind of the big day with Andy Jassy. Dave, after yesterday it's pretty clear that there's a couple big mega trends that people are talking about. One AWS Outpost, okay, that is going to be a one year conversation about what that means, what implications. I mean basically if you're a Cloud-native company you order a data center and Amazon Prime will deliver it in two days, why would anyone want to buy hardware again from HPE or other companies? This is a huge risk, huge challenge, a huge shot across the bow to the industry because this essentially the thing. This is essentially Cloud in a box. Put it in, plug it in, we'll service, turn it on and it works and developers can just do their thing, that's amazing. So I think that's going to be a very hotly-contested topic throughout, at least one year until they ship that and all the posturing and jockeying's going to go on there. And then the other thing that was interesting was there was a lot of coolness, the F1, Racing car with analytics. You had Lockheed Martin with space satellite provisioning, that was pretty cool. And, you know, you got robots and IoT. That's cool, you got space, you got robots, you got, you know, sports cars all using analytics, all using AI, all using large-scale compute storage and networking, very elastic, all with all kinds of new tools and reference engines, but Jerry Chen laid it out from Greylock yesterday around the strategy. Amazon drives the cost down on the infrastructure side and bring the API concept up to AI and bring the marketplace together. So, a lot of action. Today we're going to see the impact and the fallout of that. What's your thoughts? >> Well, first of all John, there's so much to talk about. I want to say, so Werner Vogels this morning gave the keynote. When, when I first joined, you know this industry, we, IBM was everything, IBM was the dominant player. So we used to pour over IBM system and technology guides, and IBM white papers, because they set the technical standard for the industry and they shared that knowledge obviously with their customers to inspire them to buy more stuff, but they were giving back to the community as well to help people understand architectures and core computer science. Listening to Werner Vogels today, Amazon is now the beacon of technology in the industry. He went through the worse day of his life, which was December 12, 2004 when their Oracle Database went down for 12 hours because of a bug in the code and because they were pushing it beyond its limits. And so he described how they solved that problem over a multi-year effort and really got heavy into the technology of database, and recovery, and it was actually quite fascinating. But my takeaway was Amazon is now the company that is setting the technical direction of the industry for the next wave of Cloud-based applications. So that was actually really fascinating. We heard similar things on S3 and S3 recovery, even though they're still using some Oracle stuff it was really, really fascinating to see and very, very impressive. So that's one. As you say, there's so much to talk about. The IoT pieces, John, I really like what Amazon is doing with IoT. They're coming at it from a bottoms up approach, what do I mean by that? Do you remember when mobile first came out Microsoft basically said, hey we're going to put Windows on a phone, top down. We're going to take our existing IT Desktop standards, we're going to push 'em down to mobile, didn't work. And I see a lot of IT companies trying to do that with IoT today, not Amazon. Amazon's saying, look we're going to go bottoms up and serve the operation's technology people with a software development platform that's secure, that allows it, that's fully managed and allows them to build applications for IoT. I think it's the right approach. >> I think the other thing that's coming out is a Tweet here from Bobby Allen who we know from theCUBE days. I, you know, when we, I shared a Tweet about, you know, the future of the converged infrastructure on the outpost he says, software should be where tech companies differentiation value lies. This is back to our beating of the drum about software, software, software, you know. Andy Bechtolsheim, the Rembrandt of motherboards, Pat Gelsinger calls him, said, he's the founder of Arista, hardware's easy, software's hard. Software's where the action is. What Amazon's doing is essentially pushing large-scale platform capabilities and trying to make that as cheap and affordable as possible, the range of services, while creating a new shim layer around API concepts and microservices up the stack to enable people to write software faster, more compelling, more meaningful, and to iterate, and this is resonating with customers, Dave, because if I'm a business I got to write software, okay. I don't want to be in the running data center business because the data center powers the business. So the end doesn't justify the means in that regard. You say, hey, I need a data center to power my top-line revenue which is either going to be software-based or some sort of Edge network scenario, or even a human interface wearable or whatever. Software is the key. So if Amazon can continue to push the cost structure the lock-in spec is locked in because the better value so if it's going to be 80% less cost, and you call that a lock-in spec? A lot of lock-in spec, it's not like a technical lock-in spec, that's just called value. >> I'm locked in to Google Search. I mean, you know, I don't know what to tell ya. I'm not going to use any alternative search I'm just familiar with it, I like it, it's better. >> But software's the key, your thoughts. >> Okay, so, my thoughts on lock-in are, lock-in is one of the most overstated concepts in the business. I'm not saying that lock-in doesn't happen, it does happen, it happens everywhere. It happens across open-source. You do open-source you're locked-in to your developers. I've done research on this John and my research shows that 15% of the buyers really make primary decisions based on whether or not they're going to be locked-in. 85% look at the business value and they trade that off against lock-in so, you know, yeah, buyer beware, blah, blah, blah, but I think it's just really overstated. Yes, it's a Cloud, mother of all lock-ins, but what's the value that you get out of it? Speaking about another lock-in. I want to talk about Intel a little bit because the press has been like chirping about, about Intel and alternative processors, and the arm-based stuff that Amazon is doing. >> Well hold on, let's just set the table on this conversation. Intel announced a series of proprietary processors, their own silicon, you know the-- >> Amazon you mean. >> I mean Amazon, yeah, proprietary processors that are specific to certain workloads, inference engines, and other things around network-- >> Based on the Annapurna acquisition of 2015, a small Israeli-based company that they acquired. >> Yeah, so the press, I've been sharing on, oh, chips must be confronting Intel, your thoughts. >> Yeah, so here's the deal. Look it, Intel is massive and they do a huge amount of business with the Cloud players. Now, here's the thing about Intel, it's really, I've observed Intel for decades. Intel wants a level playing field amongst its customer base and so it wants a lot of different Cloud suppliers even though there's three, four, five, you know, worldwide, there's, there's many dozens, and hundreds of Cloud players out there. Intel wants to support them all. They're an arms dealer, right? They love all their customers and so, so what they do is they sprinkle around the innovation in the industry, they try to open up their architecture such that people can, you know, write software to their architecture and they try to support all their customers. We see it at all the shows. You see it at Lenovo, you see it at Dell, you see it here at AWS, you see at Google, Intel is everywhere and they are by far the biggest supplier. Now, Amazon, of course, has to have alternatives, right? They care about data-center power, you know, they do buy some stuff AMD, why not, why wouldn't you second-source some of this stuff? They do a lot of work with Invidia, ARM has its place, and so, but it's a rounding error in the grand scheme in the market. Now why people get excited is they say, okay, ARM now has a foot in the door, oh, Intel's in trouble. Intel obviously still a dominant player. I think it's, you know-- >> Is Intel in trouble? >> The press likes to glom onto that. Intel's like the dominant player in the microprocessor business and it has to move, and it has to move fast. I would not say Intel is in trouble, I'd say it continues to be the dominant player in the data center. It's got opportunities for alternative processors like Invidia. Intel strategy is to put as much function on the DI as possible and to grab that function, it's always the way it's behaved. You see people like Invidia trying to create opportunities, and doing a very good job of it, and so, there's white space there. It's competition, we love competition, right? >> Here's my, here's my. >> Intel needs some competition frankly. >> Here's my take. One, Intel pays, Amazon pays Intel a lot of money. >> Huge amount of money. >> So it's not like Intel's hurting, Intel's not in trouble. Here's why Intel's not in trouble. One, the Cloud service provider business that Raejeanne runs, she was on theCube yesterday, is growing significantly. A new total adjustable market, they call TAM expansion, is happening. >> So, you know, if you're looking at microprocessors it's not a one, or few, suppliers, it's a total TAM expansion and of course with that expansion of the market Intel's going to take a big chunk of the shares, so they are not in trouble, Amazon pays them a lot of money, they're a big-time supplier to AWS, check. Two, Intel is on a cadence on processor design that spans years. And Raejeanne and other Intel executives have spoken to us off the record, and here on theCUBE that hey, you know, sometimes there's use cases where they're not responding fast enough that are outside they're operating cycles, but as Raejeanne said, Amazon makes them get better, okay? So, they have to manage that, but there's no way Intel's in trouble. I think the press are using this as, to create link bait, for news that is sensational. But, yeah, I mean, on the surface you go, oh, chip, Intel, oh that's Intel's business, it must be bad for Intel. So, yeah, Amazon made their own processor. They got some specific things they want to build specialized processors for like GP Alternative, or inference engines that are tied to the stack, why wouldn't they? Why wouldn't they? >> What Intel will do, what Intel will do is they'll learn from that and they'll respond with functionality for maybe others, or maybe they'll earn Amazon's business, we'll see, but yield to your point, you know, Intel's exposure to the desktop and the laptop, a lot of people wrote about that, that Intel is, the (mumbles) entry is Intel's business, they're so huge, the cost of doing what they do, Intel's such a strategic supplier to so many companies and as we talked to Raejeanne about yesterday the Cloud has completely changed that dynamic and actually brought more suppliers. The data center consolidation that you've seen has been offset by the Cloud explosions, that's a good trend for Intel. And of course the mobile dynamic, you know more about that then I do, but, everybody said mobile's going to kill Intel, it obviously didn't happen. >> Look it, Intel, Intel's smart, they've been around, they're going to not miss the ball. They got a big team that services a lot of these big players. >> Are they still paranoid in your opinion? >> I think they are. >> I do too. >> I do too, I mean I, look it, Intel is, have a cadence of Moore's law. They have a execution style that's somewhat similar to AWS, they've very strict about how they execute and they have a great execution engine. So I would bet the farm that Intel's talking to Amazon and saying, what do you need for us to be better? And if Amazon does what they do best, which is tell them what they need, Intel will deliver. So I'm kind of not worried about Intel on that front. I think in the short term maybe this processor doesn't fit for that, but, that's why GPUs became popular, floating point was a unique thing that CPUs didn't do well on so a GPU comes out, there it is. And we're going to see processors like data-processing units, Pradeep Sindu, former founder of Juniper's, got a venture called, Fungible, that's building a data-processing unit. It's a dedicated chip to serve analytic workloads. These are specialized silicon chips that are going to come on faster, and, to the marketplace. So , just because there's more chips doesn't mean Intel dies 'cause if the TAM expands it's a, it's an overall bigger market so their share might not be as dominant on a smaller market, but it's-- >> You know, I got a, I got to come back to your John Chambers interview. I've watched it a couple times now and I would recommend people would go to, thecube.net, and see John Furrier's interview with John Chambers. The great companies of this industry have survived, you know, I talked about paranoia, Andy Grove, they've survived because they were not dogmatic about the past. So for the past several decades this industry has marched to the cadence of Moore's law and that was obviously very favorable to Intel. Well, that's changing, and it's changed, the innovation engine now, you've called it the innovation sandwich, which is data, machine intelligence applied to that data, in the scale of Cloud. So Intel has to pivot to that to take advantage of that and that's exactly what they're doing. So the great companies of the future, the Microsoft's, the Intel's, the AWS's, they survive because they can evolve. It's the Wang's that didn't, they denied, it was the PC-- >> They were entitled. >> The digital, right. They thought they were entitled and the point that John Chambers made is there's no entitlement and he kept referring to Boston 128, it used to be the Silicon Valley. And the leading executives today, of companies like, like Cisco, like Intel, like Microsoft, can see a vision to the future and they change when they have to change. >> So companies that are entitled, who are they (chuckling)? >> Wow, that' a really-- >> Is Oracle entitled? >> A good question. >> HPE, Dell? >> I think Oracle absolutely acts as though they're entitled and they're bunkering down into their red stack. Now, you know I've often said, don't bet against Larry Ellison, and I wouldn't make that bet against Larry Ellison, but his TAM is confined to Oracle customers. He's not currently going after, non-Oracle customers in my opinion at least not with a strategy that's obvious to me. And I think that's part of the reason why Thomas Kurian left the company is I think they had a battle about that, at least that's what my sources tell me. I haven't talked to him directly, I actually don't know him, but I know people who know him and have worked with him. HPE, I think HPE is more confused as to what the next step is. When they split the company apart they kind of gave up on software, they gave up on an integrated-supply chain. Mike Odell took the other approach, and thanks to VMware he's got a wining strategy. So, I think today's leading executives realize that they have to change. Look at Ginni Rometty, remember IBM was in trouble in my opinion because Watson failed, and their Cloud strategy essentially failed. So they just made a 34 billion dollar acquisition, a Red Hat, which is a bold move. And that, again, demonstrated a company who said, okay, hey it's not working, we have to pivot and we have to invest and go forward. >> Alright Dave, great kickoff day three. Andy Jassy coming up at the end of the day and he's going to do his annual, kind of, end of the last day roundup on theCUBE, kind of lean back, talk about what's going on and how he feels from the quotes, what people missed, what people got, and do a full review of re:Invent 2018. Day three kicks off here, CUBE, two sets on the floor gettin' all the content. We already have over a hundred videos. We'll have 500 total video assets, go to siliconangle.com and check out the blog there. A lot of stories flowing, a lot of flow, a lot of demand for the content. Stay with us for more after this short break.

>> Narrator: Live from Las Vegas, it's The Cube, covering IBM Think 2018. Brought to you by IBM. >> Hello everyone, welcome to the third day of live coverage here at IBM Think in Las Vegas. This is The Cube, our flagship program, we go out to the events, and extract a civil noise of the leader in live technology coverage. I'm John Furrier, with my co-host Dave Vellante. Our seventh, eighth year covering a bunch of IBM shows. With all now six of them rolled into one IBM Think, this is their big tent event, day three, keynotes just finished, it's blockchain day here at IBM, and as we said, on the opening, on Tuesday, this is like, the innovation sandwich. In the middle is the meat, is data, and then the bread is blockchain and AI. And really that is the architecture of IBM's future strategy, foundationally set up by cloud computing and a variety of other applications and whatnot, but really the future is about data, with blockchain and AI surrounding it. Today's blockchain day, your thoughts on the keynote? Keynote speeches? >> Mm-hm. >> IBM, blockchain, certainly we've seen a lot of advertising on TV. Your thoughts and reaction to the keynote. >> Yeah, and I like your innovation sandwich, I just want to add, that the substrate of all this is cloud. It's critical, if you're going to get network effects, you've got to have the cloud. Today, yeah, was blockchain day, we heard from Marie Wieck, who's the general manager of IBM blockchain. IBM has a tendency, as you know, John, to identify a hot trend, especially some in Open Source, they did this with Linux, they did this with Spark, and they kind of, elbow their way in, you know, maybe that's a pejorative, but they do that, and they say, "Here's some code, here's some resources." They spend money on it, and they give credibility to that Open Source effort. The Hyperledger project is the one they targeted here. It's the fastest growing project in the history of the Linux Foundation. IBM contributed lines of code, people, they've got 15 hundred blockchain experts on this, and they're going all in on blockchain. Which I think, John, is really positive for the blockchain, and even the crypto community, because it brings the credibility of a, you know, a Fortune 100 company to that world. They've announced the blockchain starter kit. All this stuff is available on the IBM cloud. They announced today PWC as an audit partner, which again, brings credibility to the table. Although, I think as you and I know, and we're going to have some guests on later today, there's some other tech emerging, that is going to maybe complement that. >> Yeah. >> And we heard from David Katz, who is the CEO of Plastic Bank, this is the company that's essentially creating currency out of plastic. Allowing disadvantaged people to turn collecting plastic into money. And, at the same time, help save the planet. >> I mean, this is a great example of blockchain as an enabling technology. New ways to do business. As you know, we've been hot on blockchain for the audience watching, you know, we've been covering big data, and AI, that's in our wheelhouse, do all those shows and events, cover that territory with our journalism, and TV and research. But blockchain is an adjacency to storage and infrastructure, and also decentralized applications. The fundamental thing that we're seeing, and we talked to Brian-- Brian Behlendorf, who's with the Hyperledger project, at the Open Source Summit, the Apache Foundation, which IBM is a big sponsor of, IBM needs to do well here. Because they're, again, innovations is essentially betting on blockchain. But it's not just the developers at Open Source, the business users are the ones that are going to create the value, and what I mean by that is, if you look at the blockchain world, and crypto currency and decentralized applications, that's essentially the three components to this market. The blockchain is the infrastructure, ledger, storage of data, et cetera, you know over simplified, but the cryptocurrency runs protocols and infrastructure that power that, and then the application's going to sit on top. We've reported and observed that the secret of success in this new world, is nailing the business logic, and the business model, efficiencies that take advantage of the underlying technology. And that the risk factors in making that success happen, is that business model, not the technology. Although the technology is super important, the technology can be switched out a reduced risk. So the real risk in blockchain and cryptocurrency, and decentralized applications is nailing the business model disruption. This is different than the old way of tech, which was the risk was technology selection. This is a big deal, IBM needs to up their game on that piece of it. I've heard a lot of tech, I've got some nice use cases, but on the outreach basis, they got to go to the business users, and say, "This is an opportunity to leverage the data, "leverage the software and AI with watts and other things." And then leverage the underlying technology, software defined storage, software systems that move to the blockchain, in a decentralized and distributed way. Distributed and decentralized is the future of infrastructure, this is the secret of success, this is where the winners are establishing the clear line of sight. >> Well, one of the things that you're hearing at this conference, Ginny set this up yesterday, was incumbent disrupters, and we were just, kind of, having fun at the open yesterday, but I think it's really smart for IBM. You know me, John, I'm a big fan of saying most of your business is going to come from your existing customers, and if you're chasing all this new business, and start ups, and developers, you're not going to be as productive as if you go to your core. And I think that you're seeing this. IBM back to the core, and they're bringing blockchain to that core as a way to disrupt existing business models, defend against disrupters. So you're absolutely right, companies need to look for inefficiencies where there's a third party taking a toll, and then attack it hard with blockchain. I actually think-- well no, so IBM is really talking business. How do we bring blockchain to the business? They're not really talking about what we talk about a lot, this crypto economy and this whole other mission driven initiative. >> Well, but I mean, if they want to talk business, they got to talk token economics. That's where the business model efficiencies will be rendered on the app side, and the money side. The killer wrap in blockchain and crypto is money. Okay, and marketplaces. IBM got to great marketplace, but it's not just about the developers, that's an organic one stakeholder. The stakeholders that matter is the business guys and the developers coming together. That is absolutely fundamental. If they don't understand that, that's going to be hard to be successful. You can't just throw money at developer programs and say, "Oh, when we win the developers, we win the day." Cloud was, kind of, that playbook, but this world is so fast, and accelerating in it's value creation, that the business users are fundamental in actually grokking what the capabilities are, and putting that into motion quickly, and the proof points is pilots converting to production. That's going to come from the business units. That's where the intellectual property is, is looking at the technology innovations that are possible on the business logic. Business logic is the new IP, this is where the action is, and I haven't heard IBM talk at all about token economics, they kind of talk about it, but that really is the business impact. >> Well, I mean, you sort of heard that today from Plastic Bank, although they didn't talk about a token, they didn't talk about coins, they did talk about monetizing plastic, but in using blockchain to do that, I assume there's tokens behind that, but maybe not. Maybe it's just Fiat currency. It's unclear to me, but I think you're right, the killer app is money. >> Look at it, this is simple. The equation in crypto, and not blockchain, is value creators create value, and they can capture the value. Capturing the value is where the money is, the creating the value is where the technology can happen. So you got to nail both of those as areas. And money is the killer app, so that's going to come from the business side, so the real benefit of decentralization is offering the value capture equation to look different and be different. That's token economics. That's where the action's going to be. So, it really is, it's not mutually exclusive, they're both things. >> Well I think that what you're hearing, so value comes from two places in the simplest form, increased revenue, cut costs. I'm hearing a lot from IBM of cut costs, now again, the Plastic Bank this morning was a really interesting example, I'm glad IBM uses it, but the vast majority of things you're hearing from IBM, like the IBM Maersk relationship, et cetera, are about cutting costs, taking out inefficiencies. >> Well, I mean, the bank thing is easy to look at in your mind, but it's any supply chain. The ICO market that's at a massive bubble right now, is because the supply chain of funding start ups and growth, used to come from private equity and venture capital, that is being disrupted because it certainly hyped up, but that's a supply chain. Any supply chain activities, set of activities, that make up a supply chain, can and will be disrupted by blockchain, crypto, and token economics. >> Yeah, so let's talk about that. Because again, you're not hearing a lot of that from IBM. But I think we have a perspective there. You know, the 1.0 was the wild west, a bunch of developers, blockchain developers, theory developers, doing stuff, building up protocols, making a lot of money. And disintermediating the VCs, right? The new form of raising capital. The VCs are now all in, right? We saw this in Bahamas, you saw this in Puerto Rico, at the two conferences, at four conferences that we covered. So explain that? >> Well, that's just one application, the VCs and these guys are inefficient in some way, but what's happening with crypto currency about access to capital. Now there's a lot of capital being thrown out there. That's mainly because of the hype and the bubble aspect of it, but the real disruption is access to capital, that value chain, value activities are being disrupted and being more efficient. That's a global phenomenon, and that's happening in financing of start ups. Anything with a supply chain, whether it's moving food from point A to point B, is what IBM also highlights as well, anything that's structural incumbent is at risk. And so, this is where, I mean IBM has a ton of supply chain business. They've been doing this for generations in the computer industry. They connect systems together, and create value with using technology. So this is not going to be-- this is a great opportunity for IBM. Again, if they can convert that business value into the blockchain with the value capture, the create capture model, they can run the table. >> But I want to come back to innovation equation. And part of that innovation equation is being able to raise capital. And last I checked, which was last month, about 6.5 billion had been raised in crypto investments. >> And 60% of the projects failed. >> For sure, okay. But failure-- Silicon Valley, fail fest, it's probably up to 10 billion now, much more is being raised through crypto in startups in blockchain than there is in VC. The VCs realized this, and they want a piece of the action, but we're seeing private equity, we're seeing hedge funds, we're seeing crypto billionaires. >> The path of least resistance for the entrepreneur is where the action is. They go right to the new money opportunity. Because they can raise more money. >> So, here's the question. You take Fiocoin, for example, smart guys, trying to go after S3 with peer to peer storage, they raised 250 million dollars in 30 minutes, okay? Is it too much too fast? >> Yes, I think so, but it's what the market's giving. I mean, Fiocoin doesn't even have a product. They're on a roadmap. That's essentially a series A financing. >> Dave: That's a series C. >> Well, no, in terms of the evolution of the startup, it's a seed financing as a series C or D or F financing. >> Yeah, 250 million. >> I mean, it's insane. >> David Scott told us that he needed 85 to start Three Par. I mean that's a storage company 10 years ago, 20 years ago. >> Yeah. >> What a change. At 250 million. >> Look, it's a bubble. But the reality is that it's a bubble that's not going to pop and destroy the sector, it's just a proof point that the efficiency of funding is going to be disrupted. It is being disrupted. >> No, we'll see if it's going to destroy this sector or not. This could, you know-- Warren Buffet says it's going to end badly, others are believers. >> I'm long on blockchain, obviously you know that. I'm pretty biased, but anywhere there's inefficiencies, there's an opportunity for entrepreneurs and business leaders to put new business logic in place to capture that value. That's where the action will be. That's the innovation. And if IBM's innovation sandwich could work, you got a blockchain AI, data in the middle, everyone's going to be full and hungry and eat up everyone's lunch. So, Dave, that's the blockchain day. I'm John Furrier, with Dave Vellante, day three wall to wall coverage here at IBM Think in Las Vegas. More live coverage after this short break. (futuristic music)

>> Announcer: Live from Las Vegas, it's theCUBE, covering AWS re:Invent 2017. Presented by AWS, Intel, and our ecosystem of partners. >> Hey, welcome back everyone. We're here live in Las Vegas. 42,000, 45,000 people here for Amazon Web Services re:Invent 2017 annual conference. This is the day three, it's our wrap up, wrapping up the day and the show. I'm John Furrier with Stu Miniman, and Justin Warren. We've been covering this thing, interviewing guests, interviewing some partners and customers. Breaking down the day, breaking down the stories. Guys, let's wrap this thing up. I mean what is your analysis, what is your take? Justin we'll start with you. We had a chance to interview all the top people, always at the parties. What is the story here at Re:Invent? >> This is a real merging of the application developers and what we would call the more traditional kind of companies. It feels like Re:Invent this year is like a real blending of the entire IT ecosystem. Cloud is the place to be. We have 45,000 people here, the energy here is amazing. I'm seeing lots of new vendors. Lots of vendors that are the kind of Cloud native people, I'm also seeing a lot of traditional vendors here. So the traditional vendors are coming to the AWS. They're coming to the Cloud party. >> Stu, your thoughts, your reactions. >> Yeah, so John, having done this for five years now there's certain things you kind of compare and contrast. I remember a few years ago, it was oh, frictionless, Amazon is gonna make it so easy. Well come on, there's so many announcements, we know the Cloud is not easy anymore. But there's a term we use sometimes, it's the democratization of things. Last year it was Alexa is the democratization of people doing skills and therefore they're kind of getting their hands wet with the server list and the lines and stuff. This year, deep lens is, we talked to Swami who said a fun way to learn machine learning. We talked to a bunch of people that went and did it. They were like "Hey, I got this cool little kit "and I did it and it was fun. "I did the hotdog not hotdog thing." People are super excited, they're learning. When you talk about kind of communities, we haven't talked a lot about open source this week but, a lot of movement with what Amazon is doing there. They are enabling their partners and really enabling, as they say, its builders. It's all over all the airports. It's what they talked about in all the keynotes. And it's reality. It's refreshing to listen to keynotes where there's some snark of certain things but it's like "Look, Amazon is not BS." Amazon, they bring it they deliver it. You get your hands on it immediately. This conference is the one that just every year it delivers and impresses. >> I would just add my take on it, we can have a conversation. I agree with both of you and I want to add it's not BS, it's legit. I think now is the time where we've crossed over a tipping point where Amazon web service is absolutely legit in the enterprise. They've proven it in public sector and continue to prove it. They continue to prove it to the start ups by offering them a great way to get into market. I think to me, the big story this year is legitimacy across the board in every vertical and every category startup, enterprise, public sector. And two, the FUD we've been hearing for five years, is being debunked. OK, so the nonsense that we've been hearing from other vendors "Amazon can't do this, "they can't do that." FUD is being debunked, it's just not true. So Amazon has had a historical track record of moving fast and delivering. They're legitimate, they've debunking this. And in the marketplace, vendors are moving in and making money. They're growing with access to new markets. The developers are building new solutions. So to me, this whole re-engineered and re-imagining is happening and Amazon is just feeding the marketplace. They're absolutely executing flawlessly. >> John, I'll call back. I know Dave Velante wishes he was here with us but y'know his seminal piece that he wrote, Amazon is not only the 800 pound gorilla but they are the cheetah in the marketplace because they move faster. I'm trying to think of what animal is the best listener too because Amazon, they listen, they react, they move fast. It's interesting, if there's any critique I got from some customers, it's like "Well they're not as transparent as "some of their roadmaps a year from now." Well, if they're working on server list Aurora, I don't think a year ahead of time, they were ready for it. Amazon is moving so fast that six week pizza teams, scrums, you know things are changing so fast that they're trying to-- >> I wanna ask both of you guys a question because, okay, let's assume the competition is here. They're gonna react, they're trying really hard, Microsoft in particular, Oracle, both installed base guides, old guards trying to be new guards. Google and new guard may have some tech and some scale that pretty much come in quickly. The question is this: As Amazon rolls in these enterprise work loads, they're getting the data, they're getting the instrumentation. They have the new Relic Report coming out that's teasing the marketplace that their gonna have data on so many workloads. That if they open that up, they could have a competitive advantage because they are seeing more data. So if they get more services and they have more data, they might be in an opportunity to provide something that no other vendor could provide. That is market intelligence or service level intelligence. Thoughts, your reaction to that Justin. >> If the other vendors are reacting to what Amazon already announced this week they are already too late. They were too late a year ago. They need to be looking where Amazon is going to be in two or three years and they need to start planning for that. In fact, if they've only just started planning for that, it's already too late. They needed to have started working on that three, four, five years ago. >> Yeah, and John, absolutely. We hear from Andy every time and he's like every time I'm thinking about my competition, maybe he was thinking about Larry a little bit, you know the migration is off of that. But what he is thinking about it what customers want. Here's what I'd say: that all the Cloud players, they're playing different games. I don't think most of them are saying "I'm watching Amazon and what they have." Look, there was some impressive video stuff from Amazon but Google made a lot of video announcements earlier this year. We were at the show, Google's goy YouTube. Google has a lot of experience, you know they really... Google really knows how to do data. Microsoft has lots of applications. They played to their strengths and they listened to their customers. But Amazon to your point John, data, I said it last year when we interviewed Andy, I think data is the next fly wheel. Talking to the Wikibon analyst team here the economies of scale that Amazon can get due to their customers and their data set continue to separate them even further. >> I asked Andy Jassy that question directly and it's on SiliconANGLE.com, the longer post and the full transcript if you want to see it. It's a really important point. I said hey, are you saying that you listen to customers therefore you are winning? OK, I got that, you're doing a great job. Well done. You saying Microsoft doesn't listen to its customers? Or Oracle doesn't listen to their customers? They got a lot of customers. I forget his exact words, I'd have to look at the transcripts but I'll just paraphrase. They might not really be listening to their customers. So he kind of was saying, well what are they actually looking for to listening to? Kind of insinuating that they're not really listening to customers. >> John, so here's an interesting thing because when in the analyst session some of the nuance there is they said your customers can't tell you what to build, you need to understand the outcomes they need and the business because, hey look, Google is going to say we're smarter than you anyway, we know how to build it. Amazon has good engineers >> It's the old marketing theme that customers don't want drills, they want holes. You have to understand their market. >> Steve Job said when he was alive, look if I was gonna build the iPhone by customer input, I would have built a kick-ass Blackberry. Right so, you gotta look at what's going on at the time of the evolution. OK, Oracle, Larry Olson. So one of my favorite points was Tom Sebold was on theCUBE and I said "Hey Tom, so what would you do, "you're doing great with the C3IOT, "clean sheet of paper, you're an entrepreneur, "you're kicking ass, surfing the big wave. "But what if you were in charge of Oracle or IBM? "What would you do?" And he said " I wouldn't bet against Larry, I did that already." So the question is, Andy Jassy versus Larry Ellison. The old dog, can you teach the old dog new tricks? Andy Jassy the up-and-commer? What's your thoughts? >> I would not discount Larry, I agree with Tom. Tom knows Larry pretty well and it's like I would not bet against Larry but again I think, if he tries to out AWS AWS you can't be more AWS than AWS, that is a losing proposition. I don't think Larry is that stupid. I think he's going to be the best Oracle that he can be and find the customers who need the best Oracle. >> He's gonna have the right boat for Oracle. >> John I want to put a point on that even. The battle is not infrastructure as a service. That battle has been won. It's stats and passed. Amazon keeps building their services where they can get embedded more and engage it. Oracle, very heavily involved with stats, making ton of acquisitions in this space, I think they understand it, they've had some challenges in going, of course Oracle is doing the Cloud. I'm not saying there isn't a need for infrastructure service but it's the-- >> Jassy might have a blind spot. He drops his shoulder a little bit before he punches, maybe he can get in there Ellison. But the tell sign for Jassy is this: and I told him this on Twitter, but I need to tell him this in person. On his keynote he had a Gardner magic quadrant that said Would the leader of infrastructure of service... First of all, I think Gardner is old guard, so their metrics don't apply to the new guard, but that's a tell sign, Stu. He's using Gardner magic quadrant as a reference as to what he thinks winning is. Is that a blind spot for him? Because your point, infrastructures of service. >> I think that's his signal, like having Goldman-Sachs on stage, that is just saying the Cloud has arrived, it is enterprise ready, it is safe. The AWS Cloud is not just for start ups anymore. This is big business, this is the new normal. >> The Gardner badge value is a signal to customers-- >> There are a lot of customers who will only take you seriously if you are in the right, magic quadrant. Now whether that's a good decision or not-- >> John: He knows that's not the right magic quadrant but-- >> I'm not here to argue about what customers believe in but Amazon, again, if that's what customers want to see-- >> What do you think? >> Amazon will bring it. >> John, my friends have told me not to even mention Gardner so uh-- >> That's tricky but I don't mind. They're old guard as far as I'm concerned. Anyway, the modern definition of a Cloud. If the metrics of a new guard is not the magic quadrant, which is my thesis, what is the metric for new guard? >> I don't think we have it yet. I don't think anyone has cracked that formula. Maybe you guys can figure that out and you will have the new wonderful brand. >> It's on my zillion to-do list. Alright final thoughts on this conference, Stu go. >> John, the number one thing I always want to look at here is what's the customer sentiment? There's more than 10,000 people here last year than this year. Yeah, there's some logistic things, they were sorting out, but customers, they're moving faster, like oh my gosh! There's still a little bit, for years it was like oh I'm going to be disrupted type thing. Now it's like oh, can I learn fast enough? Can I keep up with it? Oh great, I think I have something there. But there's... It's not the new cool shiny, it's the how can I take advantage of as many things as possible? You asked a great question, Andy, so many announcements but they only need to worry about what they need, when they need it. There are so many things that can actually have actual significant impacts on the business today, that is those. Great customers, great events... John, compared to where we started at this show, it's been an amazing... >> Yeah, five years ago there was only one Cube, we were like "Hey, come on up!" >> You were in the back corner. >> Now it's like we're booked we got two sets. Thoughts on this show, final thoughts. >> It's been a great show, there's been my first Re:Invent. It's not quite what I was expecting but it's better than I was expecting. It is that real blending of things and Stu, I agree that customer's stories, the things that we are hearing from the different paths of the AWS ecosystem they use, and how quickly they get hold of something, they get productive, they learn about it. The number of people lining up for sessions here learning about deep technical talks about how to get things done, they have vastly oversubscribed. Everyone is desperately keen to get onboard and get going. >> John: We've been at shows where there's deep technical content and then it gets diluted. >> Yes. >> This is the sixth year of the show, it keeps getting better. John, it might need to be broken up into some pieces because it's a little too big. We'll talk to the event team about that. >> Well my take is this: Amazon, they're really on message. Oh we have customers, we have customer's input. OK, I buy that, that's true but the real thing that they're doing that they're not talking about, or they are but in their own ways, what I think is valuable is that they are creating a value. They're creating an opportunity for developers to have an easier program to program. Start ups to make money, get into the market with less venture capital. They're allowing new application layer level services, easy to execute and get in a market. And they're just creating a lot of low-cost, high-value opportunities. And they're sharing it, so they're not really doing the land grab, they're long game is land grab through just territory taking over. >> They're the center of an entire ecosystem. This is their ecosystem. It's an amazing thing. >> John, what's the one thing that five years from now we are going to look back at an announcement at this show, and be talking about. >> I think there's two threads: the innovation engine that Amazon is becoming, its quarter strategy, I'm gonna look at, we are gonna see the AI stuff and the software round at the top of the stack where things are automated for just Joe developer, Mary Developer out there. Joe six pack, Mary Jane developer, just banging out code, rolling out a kiosk app that's on an iPad, that has awesome intelligence in it versus an old way of locking down a server rolling it in, full stacked developers, I think the notion of full stack developer is probably going to go away from this. I think that's my take. >> So John, for me, server-less is going to deliver on what it has been promising us and failing on for way too long. >> John: Stu... >> I couldn't agree more, I think that we are going to see everything with like server-less. I don't really like the term but that's what we're all gonna use. We didn't like Cloud originally but-- >> John: I think like deity, but we're stuck with it. >> Cloud, we all hated that one too. Come on. >> Well I want to thank you guys, great show. I want to thank Intel and all the ecosystem partners and all the folks that support theCUBE over five years at Amazon Re:Invent. All the folks watching, we really appreciate it. We don't ask you to register but if you see us out there hit us up on Twitter. Let us know you're out there. And of course, still go to SiliconANGLE.com. The new website, thecube.net and for Amazon this year, we rebooted our Twitch channel: Twitch.TV/SiliconANGLE and added a new one: Twitch.TV/thecube. We're gonna program to those and of course we have our other channels and continue to cover. I want to thank the crew and everyone here, everyone back live blogging, everyone back at the ranch, thanks for watching. This is a wrap up of 2017 AWS Re:Invent. Thanks for watching. (electronic music)

>> Announcer: Live from Las Vegas, it's The Cube, covering HPE Discover 2017. Brought to you by Hewlett Packard Enterprise. >> Welcome back everyone. Live here in Las Vegas is SiliconANGLE's CUBE, our flight ship program. We go out to the event ... I'm John Furrier, My co-host David Vellante. Been watching 3 days of wall to wall exclusive coverage of Hewlett Packard Enterprise Discover 2017. Our seventh year covering HP Discover, now called HPE Discover. Dave, we've covered them all. Now we're doing some European versions. I missed the last one in London, but you were there. But you and I have covered HP Discover, Now HPE Discover, for now our 7th year. Interesting times as they say. >> Dave: I'll say. >> We live in interesting times. HP's been getting hammered. Certainly the competitions been slamming them, The press has not been kind to them, People think they're irrelevant. Wall Street just slammed them, so Jim Cramer on CNBC, really taking Meg to task, But we always come back and we feel differently when we're actually at the event. When you actually talk to the people in the company. They got a lot of cash on the books. They've got a lot of customers. They got technology. They're doing the vendor R&D that you guys have pointed out in your recent, ground-breaking, true private cloud research market sizing you put out there. Astonishing change. And I think, my gut is, yeah, certainly HP's had some changes in corporate development, but the reality is that they now have set that up and the market is exploding. It's got the cloud market that's coming on premise. The private cloud business is taking off. >> Yeah, you know, John, we have documented this over the last seven years, and it's like the Band-Aid is coming off slowly, and it finally feels like this Discover (ripping noise) is finally almost there, right? Because you remember the split, and then the spin merge, and then the software business, okay. This has been the cleanest Hewlett-Packard Enterprise Discover that we've been to. There wasn't a lot of noise about software, they had a little separate event going on. Not a lot of talk about the spin merge, a lot of talk about Pointnext, I think that's good, I like their branding. >> It's like they cleaned up all the rooms in the house, and the outside's got a new fresh coat of paint. I got to say, last year- noticeably, the branding, which we were kind of originally critical on two and a half, three years ago; the show was beautiful, the branding's amazing this year, again, they're going to that next level, you're starting to see the clean messaging, it's as if the ship has been kind of re-readied. And we said that last year, but to be fair, we did say last year that they got to prove it to you, They got to show the results. And we were talking with Alain, who runs their data center infrastructure group, he agrees; the metrics that all the other analyst firms are using out there are irrelevant, and he believes that new metrics have to be redefined. This to me is the biggest story of this show, is that HP is eyeing a new sea change and I don't think people understand it. That's my personal opinion. >> I think you're right, I mean, the narrative on HP is, oh, they're just a hardware company, hardware's dying, what are they doing, et cetera. Well the reality is, people have been telling me the hardware business is dying since I've been in the business. The good trend for them is, the hardware business is consolidating. Of course, the tough news is, a lot of it's going to the public cloud. But as you've been pointing out all week, there's plenty of growth, on prem, in what we call the true private cloud. >> That's the biggest discussion of the show here, is the impact of the Wikibon research, the true private cloud report that you guys put out, I want to spend some time with you on that and ask you some really pointed questions. What is the true private cloud report that Wikibon put out, and what does it mean, why are people talking about this research so much here? >> So three years ago, the team at Wikibon started to quantify this notion of private cloud, and we looked at it and said, ah, this is cloud-washing. Really this is just virtualization. What we really want to see is, on prem, mimicking,to a substantial degree, the public cloud. Orchestration, certainly, >> Agility, >> Management, agility, pay-as-you-go, those types of things. Okay, so, the genesis of the market move is something that we heard from Alan Nance, our friend, several years ago at the Vertica user conference. He said- he was, at the time, CIO of Philips- he said, "my CEO said 75% of our spend in infrastructure "is non-differentiated, so we're going to eliminate it, "and everything we're going to do is going to be as a service." That was three years ago. So, massive change, and Philips went out to all of its suppliers and said, this is what were doing, if you can't do business with us this way, you're out. And remember, we wrote a bunch of stuff about it, and Alain came back, okay. So they were one of the early folks making that move. Everybody is now doing that. So what's happening is, there's going to be $150 billion that is going to vaporize out of non-differentiated heavy lifting. And it's going to go in two places: it's going to go into the public cloud, and it's going to go to what we call true private cloud, and that true private cloud business is going to grow to be about $250 billion within the next 10 years, okay? So that's a long term market forecast. >> So the addressable market for true private cloud is what, 260, or 250 plus- >> 250, just under $250 billion. Which is growing faster than infrastructure as a service, public cloud, and it will ultimately, we believe, be larger than that IAAS business. Not as large as SASS, that's going to be the biggest public cloud market, but it's a huge opportunity for companies, and it's a land grab, and it's a dogfight. >> So, I want you to explain this, 'cause I think this is important, and it took me a couple minutes to click on this. You had mentioned that- there's a point in your slide on that deck, the size of the market is huge, it's $250 billion, that's a lot of cash. But the TAM component of labor costs, now, this is the big fear, everyone thinks, "oh, my job is going away, AIs and auto ate my job away", but yet you're saying $150 billion of cash costs are going to shift. >> To where? >> Absolutely. Okay, so a couple of things. What is going to shift? Today, there's so much IT labor spent on provisioning servers, provisioning storage, tuning systems, tuning databases, all this stuff that can be now hyper-automated, as the CEO of Wipro said, so that's happening today, as we speak. So, vendor R&D, i.e., R&D money that goes into appliances, boxes, new systems, new software, is going to replace and automate out those non-differentiated tasks. So if your job is provisioning LUNs, you really want to re-skill. >> So what's that mean for the customer in HP, and why is that important to this show, why are people talking about this report, what's the relevance? >> Because everybody's talking about their digital transformation. And how do you fund a digital transformation, right? You've got to spend all this money to become a digital, data driven company. Well, where do I get that money? >> John: Real cash involved, basically. >> Yeah, there's cash involved, so how do I do that? Well, I have to shift away from things that aren't driving value for my business, and eliminate that, and put the resources in things that are driving value. Application development, new development paradigms, digital transformations, new partnerships, and that's where the money's going. And so again, if you're an IT infrastructure patch management pro, you either have to re-skill, or you're going to be out of a job. >> Did you see Kate Swanborg light up when we talked about the private cloud, 'cause that's exactly what was her point. >> Yeah, well they're seeing it at DreamWorks, because essentially what they're doing, they're changing the game in animation. My prediction is, they're going to be able to pump out many more movies within a year now, and that's going to make them more competitive. I think that's part of the reason why she didn't want to dig too deep into what they're doing, 'cause I think they see it as a competitive advantage. >> Yeah, and she did tease a little bit out by saying that the creative people are so much more productive, she mentioned the dragon. Alright, other impact: Wall Street. We see a lot of analysts kind of taking HP to town. We know the competition, we talked to Michael Dell, he came on The Cube; Meg stopped by but she did not come in, that's notable for the folks out there, Michael certainly sits down with us; Michael says, "hey, I got plenty of cash", when I bring up the debt thing, he thinks bigger is better, HP thinks smaller and nimbler is better- >> This is going to be really interesting- >> Your thoughts on that as we move forward? >> Look, there's two, sort of, bromides, right, with Wall Street. First disappointment is never the last; uh oh, that would be bad news for HP, but Meg said, "we have bottomed in terms of margins, margins will improve." And a big thing's going to happen next month, HP's gets the cash from the spin merges, right, that's going to happen, and that's a big deal because their balance sheet- they're going to have $12 billion in cash on the balance sheet, which will match their debt, and they're going to start to be acquisitive. Dell EMC can't be acquisitive right now. They got to retire that debt and delever. >> We saw SimpliVity and Nimble, front and center, a lot of good success with the software there. >> Yep, so this will be really interesting to see, is this the last disappointment, is this a buying opportunity? >> Yeah, we're going to watch it, and- >> So if I had to bet, if I had to bet I'd say it is a buying opportunity, based on what I'm seeing here. It's much cleaner, leaner, and they've also restructured the sales organization to a great extent, so hopefully the execution's going to be better. >> Well, I'm not that generous, I think I want to see more results, I think- >> I know, but if you see more results, you're going to miss the upturn. (laughs) >> Well the question, to me, is- I do believe that they have an advantage with the true private cloud report you guys put out, I think that validates the shift of spend in IT, which validates the fact that it's growing, not shrinking, and yes, people might not be buying boxes but they're going to be buying IT. >> And the big thing is, well you know, John, the street right now wants growth. That's why Amazon can make no money and still crank, right? But if HPE can eke out any growth and start throwing off cash again, I think the stock is going to do just fine. >> Other notable things; obviously, the outsource business is gone, Pointnext is the solution, we had Ana on from Pointnext, she was the leader; other notable thing is the absence of Chris Hsu with Micro Focus, we had a chance to ... saw him at the Foundation Room at the Mandalay Bay the other night, had a great conversation. Apparently, they're not included in HPE Discover because they're a separate company. They're apparently doing really well. >> Well Micro Focus is killing it, right? I mean, their stock price increased faster than Facebook last year (laughs) so, that's an interesting play. I think it's a new private equity play, John. You know, the private equity play used to be, suck as much cash out and then leave the carcass. I think the new private equity play is, invest, and then take it to market again, and try to get that value from the market, so increase the value. >> I think you're onto something, and this is why I've always been complimentary of HP's corporate governance game, because I think that private equity is all about taking things private, and being nimble, and then going public again, so- >> And Micro Focus, in my opinion, picked up those assets for short money. >> Yeah; well, HP owns a big part of the company, so- >> Yeah, of course, but that's why they did the deal, it's short money, and they wanted the cash, and that's why they had to put the security piece in there. >> Alright- Dave Vellante, I'm John Furrier here breaking it down, ending our three days of exclusive coverage, at HPE 2017. Look for us at Madrid, the show there; I won't be there, Dave will be there; and again, HPE Discover, enjoy the rest of the conference, thanks for watching; this is The Cube out, thanks to the team and everyone here for a great job, see you next time.

>> Announcer: Live, from Boston, Massachusetts, it's theCUBE, covering OpenStack Summit 2017. Brought to you by The OpenStack Foundation, Red Hat, and additional ecosystems support. >> Hi, I'm Stu Miniman, and my cohost this week has been John Troyer. This is SiliconANGLE Media's production of theCUBE, worldwide leader in live tech coverage. And this has been OpenStack Summit 2017 in Boston, Massachusetts. John, we came in with a lot of questions. One of my premises, coming into the event was that we needed to reset expectations, a little bit. I know I learned a lot this week. Still one of my favorite communities. A lot of really smart people. Really interesting things going on. Open source infrastructure is really the focus here. Start with you, big meta takeaways from the show so far. >> Big picture, my first summit, my first summit here. Didn't quite know what to expect. I love the community, a lot of activity. A lot of real world activity going on. People building clouds today. So that was very insightful and very, that's a great data point. As far as the ecosystem goes, a lot more talk about integrating with the rest of the open source ecosystem, about integrating with other public and private clouds. So I thought that there was also a lot of self awareness here about where OpenStack is on it's journey and how it might proceed into the future. So overall, I think, you know, a really practical, focused, and grounded week. >> Yeah, came in with the whole concept of big tent. I think which we said, there's a big hole poked in that. There's the core is doing well, there's a number of projects, I forget the user survey, whether you know, there's the kind of the six core pieces and then there's like 9 or 10 in the average configuration. So there's more than the core, there's interesting things going into it and last year I felt that OpenStack kind of understood where it fit into that hybrid cloud environment. As you pointed out this year, some of those upper layer things, I feel like I understand them a little more. So, of course, containers and Kubernetes, a big piece of the discussion this week. Containers definitely transforming the way we build our applications. It seems a given now, that containers will be a big part of the future and OpenStack's ready for it. We had yesterday, we had the people that did the demo in the keynote, but containers doing well. Kubernetes fits in pretty well, even though, I think it was Randy Bias that said, "Well, OpenStack needs Kubernetes." My paraphrase is Kubernetes doesn't need OpenStack. KubeCon is going to be in Austin at the end of the year and that show could be bigger than this show was here in Boston. Year over year, for the North American show, attendance is down a little bit, but still robust attendance, lots of different pieces. Containers, Kubernetes, you mentioned some of the other pieces, any other add-ons on that? >> Well now, I mean other than its worth saying that these are not either or, this is all and. If you look at the total addressable market, every place that containers and Kubernetes can play, that's every cloud in the world, right? It's up there at the application layer. If you look at where OpenStack belongs, it is in these private clouds that have special needs, that have, either from privacy, security or functionality latency, just data gravity, right. There's all these reasons why you might want to build out a public cloud and we see that with Telco. Telecomm is building out their own infrastructure, because they need it, because they run the network core. So that's not going away. As far as containers go, again the story was not either or, it's and. You can containerize the infrastructure. That's super useful. Sometimes being bare metal is useful. Separately, you can put containers on top, because that's increasingly becoming the application packaging and interface format. So, I didn't see a lot of ideology here, Stu, and that was refreshing to me. People were not saying there is one true way. This is a modular system that, at this point in it's life cycle, it has to become very pragmatic. >> John, I think that's a great point, because we knock on, and everybody knocks on, OpenStack's not simple and the reason is because IT is not simple. Everybody has different challenges, therefore, it's not a Lego brick, it's lots of ways we put it together. Had some really interesting deep dives with a customer, couple of users today. The Adobe advertising cloud, Paddy Power Betfair, both of those gave us real concrete examples of how and why they build things the way they do. How OpenStack and Kubernetes go together. How acquiring another company, or switching your storage vendors is made easier by OpenStack. So, we've talked to a number of practitioners, they like OpenStack, reminds me of VMware. People like being able to build it and tweak it. Very different scale for some of these environments, but people are building clouds. The Telecom's are doing some good things. All the Linux companies are super excited about the future, that it helps them kind of move up the stack and become more critical environments and how it all ties into this multi-hybrid cloud world. Digital transformation, many of these pieces, I need that modern infrastructure and the open infrastructure coming from OpenStack and related pieces pull it all together. >> Well, where is the innovation going to come from in this next generation of cloud? I thought our segment with Orran, talking about the Massachusetts open cloud, was great, because he's there as a computer science professor, somebody who's been intimately involved with virtualization, with IBM, with VMware, saying, "Okay, we need to build this next generation. "Where can we innovate? We have to own the stack "and OpenStack is a great way for us to innovate "with those different components." One of the challenges, because OpenStack as a set of technologies, is so modular, is where's the knowledge come from? Where's the knowledge transfer? Can you find an OpenStack expert? Do you have to grow them? So, I see that as one challenge going forward for the OpenStack community, is how do we grow the knowledge base? How do we make sure that people are trained up and able to architect and operate OpenStack based clouds? >> Yeah, John, how about the individuals themselves? We talked to Lisa-Marie Namphy about the Ambassadors Program. We talked to a number of our guests throughout the week about training everything, from Orran Krieger, talking about how his students are helping to build this, to engagement contribution. I mean it's nuance, when I look at the future of jobs. A lot of companies here are hiring. Which is always heartening to me. What's your take on that aspect? >> Well, it's still a very vibrant community. You look at these different camps, a lot of them are vendor affiliated these days. There are very few communities that are outside of a vendor and these open source foundations are one source of those. I think, look there's still 5 or 6,000 people here, right? This is not a small event and these people are active, hands on operators, for the most part. So-- >> Yeah and the thing I'd point out, there are lots of companies that have contributors here. The other category is still really big here. A point Lisa-Marie made, many of the people that have contributed here have switched jobs a number of times. NASA helped start it. They kind of left, they came back. Some of the big Telecom companies, they're not selling OpenStack, they're using it to help build their services. So, it's like wait, which are vendors, which are providers? I think we know everybody's becoming a software company. Wait John, TechReckoning, are you a software company yet? >> We use a lot of soft, we use a lot of cloud, mostly on SaaS side. >> At SiliconANGLE Media we actually have a part of our business that is software. We've got a full development team, you know open source plays into somewhat we do, but I guess what I'm saying is, the traditional demarcation between the vendor and the consumer in open source tends to be blurring. I don't remember in the keynote if they had, hey how many people have contributed to the code. That's something that we used to get, partially because we have splintered out this event a little as to, the goals, it's no longer the people building it. They've got lots of ways to do that and a lot of the drama's gone. We had for many years in OpenStack, it was who's going to own what distribution and who's driving what project and a lot of that's come out. We talked about the last couple of years, has it become boring in certain ways? But it's important, it's driving a lot of pieces and OpenStack should be here to stay for awhile. >> Yeah, it's part of the conversation. I love the term open infrastructure. We heard it once or twice. We'll see if that becomes a topic of conversation. Going back to Lisa-Marie Namphy's segment, I encourage people to check out your local OpenStack meet-up right? You'll find that other conversations are going on there, other than just OpenStack. This is an ecosystem, it interacts with the rest of the world. >> Yeah, and talk about that next generation, edge is really interesting, the conversation we had with Beth Cohen. Also talked to Lee Doyle from the analysts perspective. Lots of cool things happening with that next generation of technology. 5G's going to play into it. So, there's always the next next thing and OpenStack's doing a good job to, as a community, to be open, working with it and understanding that they don't need to be all things to all people, certain other pieces will pull in and we have that broad diverse ecosystem. >> Looks a, I'll go out and make a prediction, I think in five years, we're going to look back and we're going to say, actually, OpenStack driven plumbing is going to be driving a lot of the next generation to the internet. >> Yeah, I love that, actually I forget if it's two or three years ago, what I said was that, as Linux took a long time to kind of work its way into all the environments, OpenStack pieces will find its way there. Brian Stevens from Google said, "If it wasn't for open source, in general, "Linux specifically, we wouldn't have "any of the hyperscale guys today." All those companies leverage open source a bunch. We've heard whisperings that, not just the telecommunications, some very large global companies that are trying to figure out how OpenStack fit into it. Coming into the show, it was all the talk about, oh, Intel stopped its joint lab with Rackspace, HPE pulled its cloud out, there's some other hyperscale companies that are looking at OpenStack. It's reached a certain maturity and it will fit in a number of places. All right, well, hey John, we started the beginning of the week, it was cloudy and overcast, a little cool in Boston. The skies opened up, it's blue. I've loved having two weeks here in Boston. Really appreciate you joining me for the journey here. Here for the OpenStack Summit. >> Thanks for having me, it was fascinating. >> Thank you John. Want to thank our audience, and thank the whole team here in Boston, and the broad SiliconANGLE media team. This is our biggest week that we've ever had, as to how much content we're creating. So, thanks so much to everyone. Thanks for our community for watching. As anything, when they scale, let us know if there's things we need to fix or feedback that you have for us. For Stu Miniman, John Troyer, the whole team here in Boston and beyond, I want to thank you so much for watching theCUBE. Be sure to check out SiliconANGLE TV for all the upcoming events. Let us know where we should be at and feel free to reach to us with any comments, and thank you for watching theCUBE. (light techno music)