(smooth electronic music)
>> Narrator: Live from Las Vegas,
it's theCUBE, covering Discover 2016 Las Vegas,
brought to you by Hewlett Packard Enterprise.
Now here are your hosts, John Furrier and Dave Vellante.
>> Okay, welcome back everyone,
we are here live in Las Vegas for HP Discover 2016,
exclusive coverage from SiliconANGLE media's theCUBE
is our flagship program, we go out to the events
and extract the signals from the noise.
I'm John Furrier.
My co-host, Dave Vellante,
and our next guest is Bobby Patrick,
CMO of the Cloud Enterprise group at HPE,
and Michael Loomis, head of sales of global enterprise
at Nuage Networks, now part of Nokia.
>> That's right.
>> Welcome back to theCUBE.
Welcome for the first time.
>> Thank you very much.
>> You made theCUBE alumni club.
Congratulations. (laughing)
It's growing very fast. >> You're in the club now.
>> Do I get my card when I leave?
>> I've got like a platinum membership now, no?
>> We have a VIP. >> You got something?
>> You know exclusive.
>> Yeah after six times you get the platinum card.
>> People want to have a CUBE alumni event the these events,
so it'll be fun next year, >> I like that.
we'll look at that.
Bobby I wanted to touch base on the cloud,
obviously you run the cloud group.
>> Right. >> Nokia's a customer
of you guys.
Obviously HP, everyone knows the history.
Had the public cloud, they kind of pivoted over.
And now you guys found your swim lane.
>> Right. >> I want you to just
take a minute. >> Right.
>> To clarify and reamplify what we talked
about last time in London. >> Right.
>> Around HP's cloud strategy.
It's not like it's not defined.
You guys have a clear line of sight.
>> Bobby: Right.
>> Take a minute to just share your vision
and specifically the company's cloud strategy.
>> Yeah thanks John, it's great to be here again.
You know cloud is the catalyst
for our customers' transformation and our partners.
We've got 24 here at Discover on stage
showcasing Helion at work.
And I've been here two years now
and our cloud strategy couldn't be
any more on fire and working.
There's three prongs to it.
The first one is we want to help customers
in a multi-cloud world.
Source, manage, and consume cloud services
across traditional IT, private, managed, and public right?
You saw the Azure partnership before.
We have dropbox now as well and others.
So we're demonstrating that.
Second one is we want to partner
with the leading technology public clouds as well.
So you mentioned the public cloud
we used to have in the past.
Now we're focused on that part of the right mix
of our customer's cloud strategy
on public cloud partnerships.
So you see that with Microsoft Azure,
specialty clouds like Intralinks
around document collaboration,
you know dropbox, those are all examples
of where we're demonstrating our partnering
with public clouds.
And the third one is we want to integrate our solutions
with those clouds as well.
So managing that multi-cloud world is complex.
We're working with companies like Nokia.
We're taking Helion and Helion Openstack
and Helion Cloud foundry.
We're layering out called cloud orchestration
which we now bundle as our Helion cloud suite today.
And we pull in public cloud, we pull in managed,
private, and traditional IT into one
single solution for our customers.
>> So you mentioned Azure.
There's nothing in the announcements this morning
that mentioned Azure.
Is that the previous relationship?
>> Right we announced our partnership
with Azure last Discover.
This one, there's a number of announcements
just showing it at work, right.
Our managed cloud broker offering,
and cloud brokerage is a really big deal now
for CIOs trying to manage a multi-cloud world,
now extends to Azure.
So there's a lot of those announcements
you're going to see throughout Discover with Azure.
And there's going to be some other cloud announcements as well.
>> We'll get to the Eucalyptus/AWS relationship
kind of later. >> Sure.
>> But I want to ask you specifically
around the strategy and how you see
the cloud enabling delivery.
And on the opening I mentioned
Dave was asking my views on HP's growth.
And I kind of used the story of back in the old days
of the mini computers, this little laserjet
attachment to a Wang system was a major
growth engine for HP. >> Right.
>> And the rest is history.
So we're kind of looking at the cloud
and saying okay, is IOT that bolt onto the cloud
that is going to lift up where cloud becomes
obviously pervasive like mini computers
and the stream computing did.
How are you guys enabling things
like IOT? >> Right.
>> Cause now the hybrid cloud, public, private, data center
is integrating together. >> Right.
>> Do you see that as an integration
into the cloud and you enabling
those kinds of things?
>> There's actually two big kind of growth axes
that I think are important, right.
One is you mentioned IOT.
So the number of devices connected,
the amount of data, just huge orders of magnitude growth.
You've got to actually drive costs down
and things as well to be part of that.
And so that's a big deal.
Our IOT universal platform that we announced as well.
Helion is a backend for that.
So massive scale on openstack, on our cloudline servers,
or others so you get that maximum economics.
You know with Nuage and others spreading
across multiple data centers for availability,
we have that platform for IOT.
But I think from a growth and margin,
if you look at the new HPE now, right.
The lighter, nimbler, stronger.
When I layer on our security products,
security's number one concern our customers have
going to cloud, you know arcsight
being able to do threat detection
across a hybrid cloud, alright.
The ability to do encryption with our data secure product.
Bringing in our big data products,
like Vertica for the columnar data store
and our workaround hadoop for distributed R right.
When you begin to bring those pieces into the fold,
you begin to have the ability to add on top
high value software and services,
more of the stack, you know obviously infrastructure
across the bottom.
So what I see is us growing a share of wallet,
growing our strategic relevance
by both handling the massive amounts of data
that's being generated, supporting the connected world,
but also security, managing that data,
big data, fast data and providing
that full stack on top.
And we're bringing all those pieces together.
In the past, HP kind of had these
siloed BUs in a way, right?
Not anymore, all these pieces are coming together
and that's a big part of my organization's responsibility.
>> So Michael talk about where Nuage fits in.
What's the relationship?
Where do you guys add value?
>> So Nuage is a what we call a
software defined networking product.
It's born out of some routing technology
that we've had for a number of years.
We started our router products back in 2001.
And we're number one or number two,
depending on the category in service provider edge routers.
And when you look at the problem of scale out
and flexibility in the cloud,
you need some complex network constructs
that may not be readily available
in some of those cloud tools.
And obviously you can't go throw an expensive
service provider edge router at that problem.
So what we did is we took that software,
used that as a SDN controller
to manage the forwarding tables
of the virtual switches or the namespace
in the case of Linux container,
integrated that in to a distribution
or a cloud system like Helion
and there you go, you've got a stack
that can scale out at the network layer and at the computing
application layer. >> Another VMWare killer.
>> Yeah. >> As a solution.
(laughing) >> I was going to say that.
Pat Gelsinger always talked about network
and he's so proud of his acquisition.
The SDN player Nicira, which is a part of VMWare.
But Dave and I always saw that
the network was the bottleneck.
You're seeing a rube out there.
Specifically talk about where the network piece fits in.
And why that's so important right now with cloud.
You mentioned some technical things,
but is it really the dev ops enabler?
Is it about the containers?
Is it about the microservices?
All of the above?
What's the key issue? >> Well...
Network is important for scale.
Anytime you want to go multi-data center
or hybrid or you want to secure your applications,
you've got to have an advanced networking solution
or an SDN solution.
What's driving that scale, you know
we approached private cloud a few years back.
We had the stack, we were putting it together.
We got nice production pilots up in the customers.
And then we found that a lot of the applications
weren't built to consume the flexibility
and the scale out that we delivered
with that private cloud.
So these enterprises are going back
and they've got new applications that are coming on
that are microservices oriented architectures,
cloud-native applications.
And they can consume this architecture
and they're starting to...
It's not just IOT, it's lots of applications
that are re-looking at how to take advantage
of this infrastructure that's being built.
And that spreads across multiple data centers
and part of the hybrid cloud.
Which is why solid networking solutions are important.
>> Yeah, it's absolutely critical
to have good networking.
Let's get to the dev ops question.
Obviously the big thrust is workloads.
One of the things you guys talked
about in your announcement this morning
was obviously workload management,
having the ability, flexibility.
Imposable infrastructure, yada yada ya.
I've got a...
Michael, you're developing this stuff.
And the thing that Dave and I hear
in WikiBON community from customers
is make it easier for me.
The total cost of ownership is out of control.
It's super hard to do this.
How does this get easier?
How are people managing through the complexity
to make it simpler?
And how are they managing the total cost of ownership?
>> Helion.
So this is why it's important for us.
Because we come in and we have a lot
of great networking technology,
but people are not going to consume
that networking technology in and of themselves.
They need a integrated complete stack
that's supported, installs quickly,
and has an orchestration layer on top
that's going to allow it to scale,
scale the full set. >> Give me an example.
Give me an example besides just saying Helion.
What specifically about Helion makes it simpler
and lower cost?
>> So when you look at Helion, one great tool set
they built together is an installer tool set.
And so there's nice scripting
that's going to take...
When you look at a cloud you've got openstack components,
you've got your cloud foundry components,
you've got your networking components,
storage components, and to have all of that stuff
install and deploy seamlessly and scale out
as demand is required, that doesn't come off the shelf
if you're going to self integrate
some of these opensource projects.
So that, the support and service that's added with Helion,
and then if you look at the CSA layer on top
to manage all the components and
integrate in with some of the public clouds,
that's what takes the technology stack
from being a great set of standards
and a great set of open source products
that can now be consumed.
>> The installation was the biggest barrier openstack's had
for a long time. >> Right.
>> Around how complex it was to install and scale right.
So I think that is
something we've cracked. >> Well...
It takes it from a stack of technology
to something that actually >> Right.
>> solves a business problem. >> That's correct.
>> So that business problem is IT labor.
>> Bobby: Right, that's right.
>> And non-differentiated provisioning or patching.
So talk about the shift that's going on
within that sort of labor pool
from stuff that gives you no competitive advantage
to where we are today or where we're headed.
>> We used to go in to proof of concepts.
And the customer would...
One of two types.
They either have an openstack expert in there.
Someone who had lived and breathed it
and was part of the original community.
And they would work with us to get
the initial stack up and running.
>> Dave: A guy.
>> A guy.
Or we would have to bring that guy
to the table and they'd get somebody
that was trying to be that person.
We'd help them stand up openstack
at the same time we'd go in with Nuage.
We knew that wasn't going to work.
So that's when we started partnering
strongly with partners like Helion
who can come in and make that work
for the enterprise.
And if you're in a CIO's position,
you don't want to be dependent
on one or two openstack experts
that you've got to make sure stay
or you've got to hire an army of openstack engineers.
What you want is a private cloud
that works and a trusted partner
to deliver it for you, but you want
the openness and the standards-based attributes
of a product like Helion so you know
you can plug other pieces of the environment in.
So that's, it's really
important open. >> And Dave...
Just so you know the average customer
that we have today has one engineer
for every 240 virtual machines.
With Helion Stackato 4.0, which we're rolling out,
we believe we can get that to one to 500.
And that's because you've got
a universal control plane where you've got
a single pane of glass basically
across all the clouds, Azure, AWS, Openstack based clouds,
maybe even some VMWare stack clouds as well.
And you can through one see the workloads, deploy them.
That's how you really get a continuous
delivery pipeline going.
It's APIs for developers, but a single pane of glass for IT.
>> And scale as you were talking
about before Michael. >> That's right, scale.
>> That's what's key.
It's working now so it's...
>> You brought up VMWare.
VMWare killer when you mentioned this.
So I'll bring up the VMWare question.
So back in the day, VMWare ecosystem was really robust.
>> Bobby: Yeah.
>> Some are saying it's on the decline.
We'll see that what's to update at VMWorld,
theCUBE will be there again this year.
But they made, for every one of their partners,
they made $10 for every dollar VMWare booked.
So they threw up a lot of cash,
which is great for the ecosystem.
You know feeds the, feeds the beast if you will.
How are you guys, Bobby, doing that with your partners?
And how do you see docker for instance,
enabling things like that?
And how does that all...
You have to do some sort of economic advantage
for your partners.
Can you share some insight >> Yeah.
>> Into what you guys offer? >> Yeah, yeah, yeah.
So in addition to you know the terms
around helping it be attractive to skill up
and transf...
Our partners are transforming as well.
Most of them are resellers.
You know they want to climb the stack now.
They want to be more relevant to their customers.
So skilling up does come with cost.
And one of the big things we're doing
is we're going to go to market with them.
Actually bringing them opportunities,
bringing them into deals.
In the case of like with Nokia, right.
The ability to go in with them,
work on accounts together, these are major,
really large significant IT transformations.
With our other partners as well, skilling them up.
Bringing them into deals. >> Oh are they
wrapping services around?
Their monetization is service wrappers?
>> Yeah they're actually building hosts.
We've got backup as a service.
Other kinds of service offerings
that they build and run themselves
that we will actually sell through
our go to market channels.
Or they'll deploy onsite, you know.
Most of our business, you know,
70 percent goes through the channel, right.
>> John: So is there a number?
Can you share a number?
$10?
>> I don't have the number.
(laughter)
>> Michael how... >> I can't say the number.
>> How does the ecosystem build around,
how do they make money with Helion?
Is it the services, is it the apps?
>> We deploy...
We sell software licenses so as Helion
scales out, we get more workloads on the system
then we're going to sell more software licenses.
But the ecosystem's critical for us
because when you're talking
about building a private cloud
and you're talking about building
an open private cloud, which is getting
away from the vendor lock that exists today
which is why people are driving
to some of these open source products.
It means that a lot of products
have to come together and work well together.
So usually it's the openstack distribution
that's, like Helion, that's leading that ecosystem.
We're a part of that.
And then we get interaction with a lot of other components
as a part of that ecosystem.
It helps build an end solution to the customer.
>> We have 360 now, cloud builder partners.
We had 30 18 months ago.
We'll have 3,000 in 18 more months, right.
We're transforming them and they're building
new businesses, higher margin services,
and growing their companies.
>> And how do you see the CSC, Spanco
whatever we want to call that, effecting
because you have basically a built in consumer.
>> Bobby: Right.
>> Of you know, your stuff.
>> They're one of like Antonio Neri's
biggest customers, right.
Probably right.
>> How will that shake out, you think?
And of course CSC has a strong relationship
with AWS, that's you know good news.
>> Yeah, yeah.
So I think. >> Talk about that a little bit
>> Quality is about focus as Meg always says, right.
It's about having companies that can really focus
on their best thing, right.
So you know what, we're going to have a growth,
a high growth company, focus on software
and hardware and infrastructure and services.
I think outsourcing, they're coming together with CSC.
They're building a, you know, they'll
be a big partner of ours.
But we're also partnered with Accenture and others as well.
So I think it's allowing everybody
to be the best at what they do.
We'll have relationships, contractual
and partnership relationships,
but it will allow maybe a bit more competition.
Probably very healthy.
>> You feeling healthy with the SIs,
the big power SIs, you guys in good shape with those guys?
>> Yeah, I mean Price Waterhouse Cooper's just received
partner of the year for cloud.
They're here in a big way.
Accenture's here.
Yeah, I think they're big as well.
But you know our enterprise services
and they're here in a big way too.
And I think that'll continue.
>> So many influencers out there,
last question, wants to know about the update
on Eucalyptus/AWS,
that relationship. >> Yeah.
>> Can you give an update?
>> Yeah so our strategy is to partner
with public cloud providers.
Many of them, Eucalyptus has a great story.
You know we're obviously, we go to REInvent,
we're a big part of that.
You know I think there'll be...
You'll see more to come on the public cloud partnership.
Partnership space.
>> Well we'll be at REInvent.
Note to theCUBE watchers.
We'll be at dockercon as well
coming up very quickly, I think next week
or the week after.
Thank you, so many events coming up.
Guys thanks so much, appreciate it.
Thanks for spending the time.
>> Yeah thank you.
>> Bobby Patrick, Michael Loomis here on theCUBE.
This is theCUBE, we'll be right back after this short break.
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