 George, my co-host. I'm Dave Vellante, Wikibon.org. Jim Gontier is here. He's the vice president of marketing and operations at ISS and HP. And I think, other than John and Dave's been on theCUBE more than anybody. So welcome back. We love talking to you folks. Especially since you guys really get it. Yeah, we were counting up, you know. Ten times, I think, you've been on theCUBE. We were there for the original moonshot. We were there for Gen 8. You've been with us for pods in Barcelona. Yeah, pods, we were there in Barcelona. You got to be in Dave and Bill's office when we did the original. I was telling Dave, we're like a tick. We're like embedded in HP. We're not leaving, so we can't leave. But you're also very objective, which is the part I like. And we've been following you guys. So we've heard the spiel, we've heard the pitch, we've heard the analysis, we've done the tire kicking and it's fun to ride such great success. And I think, you know, last year at Moon, or 14 months ago at Moonshot, it was really an amazing thing because it was Bill and Dave's office, but it was also the beginning of, wow, we want that box. And I think I was talking to the folks and you say, hey, can we get one? Well, now you can, because they're shipping today. Now we can, because a lot of people want to build up some, stand up some infrastructure and they don't want to rush to the cloud too fast and they want to test this out. So one, let's break down quickly so we can get to the facts. I know you're super busy. What's going on with Moonshot here in terms of what you've learned? We've dissected the announcement. What's happening today that's surprising you? Quick highlights of the notable announcement points. So let me just give you the high notable announcement points. I mean, when you think about HP and our decades of innovation, we see four massive new trends. It's around mobile, social, cloud and big data. Now the fun part is that all of the things that are enabling those huge trends are also the things that are eliminating and primarily that's the infrastructure. So we looked at what it would take to do all of these new servers and you heard a combination of Meg and Dave, right? I mean, if you took the amount of energy required for all the new servers that we're going on the next four to five years, it would be the equivalent of powering two million US homes. So the bottom line is a fundamentally new and different way had to be put in place and we believe that way is moonshot and with moonshot what we're able to do is deliver dramatically lower costs, much higher levels of density, much lower in terms of complexity and we're able to do that in a fundamentally different architectural approach but you guys know us, right? It's not always about just hate products. It's also about innovations that we're doing at the program level. So you can hear me all day but it's really nice to hear the CIO at CGG talk about how this is gonna fundamentally help change his business, to hear from one of the leading researchers at Purdue how this is going to help research in general and then last but not least, we talk about how this is an application optimized server. When you talk to a dedicated hoster like the folks at Savis, which is a CenturyLink company to hear Brent say this is how he's not only gonna be able to do much better things for his customers but how it's gonna help them from a business model perspective. So as you can tell, we're pretty pumped not just about the product but also the programmatic innovation that we're delivering with Moonshot. Well, an ecosystem. I mean, every partner guest that came on had a demo, I mean, a card today that they wanted to show us. People love toys. Yeah, that's great. But they're all diverse. It was not, I mean, there was commonality across them but they were different value propositions for each one and that's the interesting thing to me. And actually Dave, you hit it on the head. The beauty of this is it's not about just what we're doing from a processor and architecture perspective. It's really building that ecosystem. In order to go transform an industry which you've heard us say it multiple times, that's the mission that the enterprise group is on. You've gotta create this coalition of like-minded folks who also have that same passion to transform the industry. So whether it's AMD or ARM or TI or Intel or CalZeta or the various other ones that you heard from today, the beauty is we're not just gonna be limited to the traditional components that you can use. We're gonna be able to look at things like digital signal processors. Maybe there's an audio, video, virtual or video analysis play. We're gonna be able to look at things for financial services, genomics, big data. We will have new things in our skill set and in the tool set that have not been applicable before. And by the way, when you create that coalition we'll be able to accelerate the pace of innovation for the industry up to like 3X. So low power is obviously a big driver. When I go back to, I think back to 2007 the whole green IT movement and as I say, low power, big catalyst but there's more to this than that. But the question I have is that whole green IT thing that mean went away but HP is driving that hard. You're really the only guys, I mean other people are talking about it but you're actually doing something about it. You're reinventing the platform. Why do you think that is? Why, I mean customers are banging on the server vendors because of heat density and we have this huge problem. You guys are stepping up and fixing it. Why isn't the competition more aggressive about this? I can't answer for the competition but I can tell you clearly and I have the pleasure of talking of hundreds of customers a year. Power and cooling is still one of their top, if not the top, one of the top three OPEX issues they face. And the way they look at it is going all the way back to our conversion for structure approach. They would rather spend their time and their efforts and their assets on innovation as opposed to paying bills or on maintenance and operations. So if you think of energy as dollars that could be freed up instead of paying them to a utility company they could actually use them for innovation. That's the reason why we're doing it and we're doing it across the spectrum. You know the story about everything from sea of sensors to the fundamentally new different architecture. When I walk in and have a conversation that says, look Dave here's what you're doing with your traditional infrastructure. I can save you 89% of energy. That's why folks are extremely excited about Moonshot and that's why you see we have the take up rate and all the buzz in this building and from the announcement. Not only that you're gonna cut my cost to the you give a case study example taking me from a half rack replacing 1600 servers in a half rack and going from 3.3 million to 1.2 million. Isn't that gonna come right out of your P&L? No, not necessarily. So here's the fun part. I mean, and I get the question of, hey well Jim aren't you comparing this to regular proliance? Well, you know truthfully, yes we are. For two reasons. One, as the industry leaders, that's what leaders do. We actually are not worried about well this is gonna cannibalize but to answer your points succinctly this is a compliment to proline. This is not gonna fundamentally take over everything tomorrow. If I go back to some of the I guess things we've already done to help transform the industry let's be honest, we invented the first UX servers. We invented the first x86 server. We invented the or have the patents for the very first blades. They didn't just change overnight. It's gonna take years but as you can tell we're onto something with Moonshot and we can't wait to start unleashing that. By the way, it's not you know our stuff that people should be worried about our competitors should be worried about. We talked about this with Dave Donatelli and sort of tongue in cheek but this market is elastic, right? If you cut the price of compute and storage people buy more. We like to joke that the amount of software, the amount of requirements will scale to match the amount of processing and cost that's readily available. Jim, you know we love to push the edge with our coverage so that we can keep on around. We were the first ones to actually be covering Cloud Mobile and social back in 2009 and so obviously we love the position in Cloud Mobile and social and add big data which we do all the big data shows at theCUBE so you know that. But I want you to explain to the folks out there the real significance of how seminal this is in terms of the tech business because there is a modern era. We can always talk about sports, modern baseball, modern era. So we're in a modern era of tech, the computer business. Correct. And a modern computer enterprise. People are gotta power the cloud and other things. So give us your take on that and because you're out talking to the customers Moonshot is a point in time where we say this is a shift to this new way, lower power, obviously buy more, open up new markets. New applications can be built on it. So share with us your view on that. Yeah sure, I mean if you look at where we are today and basically where we along with several analysts are saying we're gonna probably need something on the order of between eight to 10 million new servers. Let me put that in perspective. Those eight to 10 million servers basically if you were to put the amount of data centers required and put those servers in and you were to put them end to end it would literally scale across the island where on and for those who are watching us we're in Manhattan. So it would literally go that far. The amount of power required would be about to power two million US homes. So let's just take this to this next example. If I were to have the industry move to 10% of let's say a Moonshot like architecture, by the way they're all patent protected but if the industry were to move to 10% of a Moonshot like architecture that'd be the equivalent of taking three quarters of a million cars off the road nine billion barrels of oil and about almost half a million gallons of gas. The numbers are ridiculous. So you said eight to 10 million servers. You said eight to 10 over what period of time? Between now and roughly 2016, 2017. Yeah I mean that's the level. Yeah that's the level of and that's why you also hear the sense of urgency in our voice. Present course and speed on the space, the power, the density, the admin time and everything else. It is not sustainable. But Jim I gotta push back on this because HP is not, that's not the first time HP has done something really revolutionary. You gotta be, you gotta execute. Correct. And that requires execution. Now your competition's not gonna let you get away with it. Amazon's gonna fight for the cloud. IBM's got servers, you got competition. So talk about how you're gonna compete is obviously the ecosystem's a big part of that and you have to execute that. So just take us through the plan there. So there's a couple of ways and I don't wanna pick on individual folks but here's what separates Moonshots from basically most of the rest of the industry. Yeah, sure. Other folks can look at a refactoring of how to go do servers but how we pulled off that refactoring and the fact that we took a converge approach. I mean, obviously we understand a little bit about server storage and networking because we're either number one or number two in every single one of those classes. All of the- And by the way, you had OpenFlow early and still have it. You're the first ones to ship OpenFlow which was the DNA of SDN, something to find networking. And we also have innovations like our most recent 7,000 series from our, I should say our store virtual 7,000 series that literally is another example of a software defined storage solution. So if you take that knowledge, now you add on top of that knowledge the fact that we've created the Pathfinder Innovation Ecosystem, getting 25 sets of folks who wanna help accelerate the pace of innovation, who wanna bring new categories of solutions, pick your favorite analogy or pick your favorite segment. It could be for big data. It could be for finance. It could be for genomics. It could be for, I guess we'll call it video surveillance. All of those are new areas, new things. So to answer your points succinctly, the programmatic innovation is gonna help us accelerate it and we've got most of the industry with locked arms with us and the products that- So I wanna read a headline for you out there. Now you gotta go at five, which is now, but we wanna read this to you. It's from theverge.com, which is a gadget blog. They're not that savvy on enterprise, so I'm giving them a hall pass on this one. But it says HP launches Project Moonshot, low power server to try to save itself. That's just- That's some of the sentiment. I'm using them as an example and I love the sides of Great Side, not picking on them, but that's a similar sentiment you've seen on Wall Street. Oh, HP, Windows, HP. I mean, the whole world's not getting HP right now relative to this. Explain to the folks out there who aren't in their trenches what really, it's not about HP trying to save themselves. They're kind of already saved, right? But you just, you've got this new technology. Talk about what this means to the industry. So it means a couple of things. Let's start with the fact of this is, and you've heard us use the phrase, a seminal moment. A lot of us are going to look back a couple of years from now and go, wow, the industry started to change and you two were here with us when we actually did it. The second thing is that if you look at just this larger- We hope. Probably. I keep on doing these cute things. But we'll count that you were here for that seminal moment. The second thing is because we've put this Pathfinder Innovation Ecosystem, it's not just about us. It's about the entire industry. So we're going to get- Share your interest. That wave carry, yes, of people who want to go do it. And by the way, today is just the first announcement. We're far from done. There's going to be a continual cadence of new types of HP ProLiant Moonshot servers that will be coming out, similar to what you've seen us do with the Blade Solution Builder, right? Towards the end, well, not toward the end, but at least when I was exiting the Blade's business, we had 318 partners who woke up every day thinking about solutions that we had never thought of. And that's why we were able to go from June of 2006 to in 2008. We were already number one- So where are you expecting the demand now? Obviously everyone wants this. This is some big data applications, but where do you see the cloud? Are you going to see the cloud providers picking this up first, or traditional large-scale enterprise, or where do you see the adoption curve here? That's a great question. So it'll probably be traditional, and I always word traditional because even that's starting to morph, but let's just say what we know today as primarily large, web-scale class customers. You heard Brent from basically Savvis or CenturyLink today, right? So for dedicated hosters, if you're not looking at Moonshot today, you're probably spending too much money. When we look at front-end type things- That's low-hanging fruit. This is the cloud guys. For today, you're absolutely correct. So when we look at web front-end, whether it's static or dynamic pages, that's another great place where we can do that. Now, the fun part is, as we start to look at things like digital signal processors, we start to look at FPGAs and others, we're going to come up with a whole bunch of great new HP ProLine Moonshot servers that are going to deliver the same kind of quants, density, space, and various others, for industries and verticals that traditionally would not be applicable or could not have this kind of technology. So it's like having the best-of-purpose builds, solution, hardware for the software guys, you're giving them industry-standard purpose-built enablement. We're giving them the best possible outcome for that workload, because we have tuned, tweaked, and benchmarked that system when I say we, the collective ecosystem, to ensure that they get the best possible output out of that product. And that output can be, pick your favorite, cost, density, space, energy, admin-effective usage ratios. And we're talking about explosion of new apps, but also there's no reason that you couldn't slot in i7s and i5s in here. Is that good, right? The beauty of the architecture, and you've seen us do this before, is we've built this architecture to last for quite a long time. The whole idea of having the individual components and moving everything into a share-everything model allows us to go through and do that. I mean, I don't want to get too geeky on you, but the product's got 10 terabits per second worth of, I guess we'll call it connectivity. So even for cartridges that we don't know of today, Moonshot will be able to do that. And I guess probably the best way to explain it is if you look at even our own, and I'll use the phrase chefs who drink their own champagne, hp.com today is running on the equivalent of roughly a dozen light bulbs. That shows you how much we're going to go fundamentally change the industry. And think of this as the birth of a new class of server today. Yeah, I mean Moonshot originally, when you announced it in November of 2011, it was kind of concept, very narrow, and you didn't show too much leg there, but today you've just exploded it. And if you continue that innovation, I would expect great things to happen. We will continue that innovation, Jim, so okay. So when's the next Cube gig we're going to be staying with the coverage? When's our next? Is it Barcelona? Is it Europe? What are you thinking? So we haven't picked a location yet, but I'm sure we'll tell you as soon as it is. But kidding aside, towards the end of the year, we're going to have another large announcement where we talk about the next class of all of the Moonshot servers that we're putting in place and some of the partners who, we talked about five today that you haven't heard from and what they're going to be doing with us, along with a whole new suite of customers. I got to ask you a personal question to you about this because obviously you're intermittent in the launch and the whole product, it's very passionate, obviously, but what's the biggest surprise you've had here today that you've, throughout the process and now getting to the end of the day of the announcement, you're going to be smoozing tonight at the reception. What's the biggest surprise that happened that you didn't figure would happen? The number of people who attended the actual web event was, and I won't give you the number, but it was extremely large, so it was higher than what we thought. And then, frankly, the second one is the amount of secondary requests that we're now getting. I mean, this is an event, right? And you'd expect to get a few phone calls. No, our press team is next door and they're furiously, they're furiously like responding to tweets and various other so many things and setting up additional. We're doing our share of pumping it out there. That's great message. Awesome. So the response, you're overwhelmed by the response. Not overwhelmed, we're extremely pleased, but it's a lot higher than what we thought it'll be. When I say... Surprised by the amount of interest. Yeah, I mean, we knew this was going to be big, but we didn't realize it was going to be this big and so now we're making sure that we're going to answer all of those questions. And more importantly, it's not, you know, press and analysts and others, it's customers that are now starting to come to us and trying to get time at the Discover Lab, which we're going to make sure happens. Well, I have one quick follow-up, final, final questions, I always get that final, final question. Let's talk about the Meg Whitman. Is she happy with this? How she looks ecstatic on the webcast and Donna Telley is beaming. How are those guys feeling? Well, I haven't had a chance to talk to Meg, but let me put it to you this way. What's a nice way to say this. In some of the early communications before the launch, she sees this and she's been very public about it as this is yet another example of HP innovation. This is yet another example of how we're going to transform the company over that five-year plan. And so she was pretty pumped up and I guess the last data point that we saw was on Friday night. She's actually traveling today. And Dave, I mean, I don't know if you saw him on CNBC, he rocked it. He rocked it on theCUBE, he was really awesome. So congratulations and hey, we love it. Got to execute now, the ecosystem is a great strategy and we'll be following it. Jim Ganti inside theCUBE, CUBE alumni, great to have you on. Always dynamic, informative, great concept. This is SiliconANGLE, theCUBE be right back. Dave and I will wrap up the day and after the short break. All right, thanks guys.