 brought from Las Vegas, it's theCUBE. Covering EMC World 2016, brought to you by EMC. Now, here are your hosts, John Furrier and Dave Vellante. Okay, welcome back everyone. We are here live for day three of three days of wall-to-wall live coverage of EMC World 2016. This is Silicon Angles theCUBE, our flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier, my co-host this week, Dave Vellante. We also have two Cubes, Stu Miniman, Brian Gracely on the second cube there. Double barrel shotgun of content here on the kickoff of day three. We're joined with special guest, Wikibon CTO, David Floyer, and analyst, David. Great to see you, Dave Vellante. Dave's, great to see you. Okay, so day three was upon us. We got a little preview here on the Cube, Dave, around some of the announcements. CJ decides emerging products group of EMC. He's the future. He's cloud native. We heard from the core business. Everything's kind of coming together. They made that bet a couple of years ago. They're playing it out on the horizons of Dell Merger. Your thoughts? Well, John, this is a classic case of a company who's jumping S-curves, right? I mean, you've got the core business, which run by Guy Churchwood. We had him on, you know, yesterday. It's a flat to down business. And then you've got the new S-curve, which is CJ Desai, all the new stuff. DSSD, Scale.io, Isilon, which is their bread and butter. So they threw that piece in to give some nice critical mass. Because if you run into that P&L, you want to have some kind of profitable business, which Isilon really is. So, you know, that challenge remains that the core business is really, really big and shrinking. And the new business is relatively small and presumably growing quite fast. So, you know, I don't know, David, I mean, how long before the whole thing can grow? That is the ultimate question. That's the $64,000 or $64 billion question. $67 billion question, actually. That's the key, isn't it? And I think one of the most challenging things that I saw was them struggling slightly, MC, to move from a vendor, a storage vendor to a systems vendor. And that's where they are trying to get to within the enterprise. They need to take on HP, for example, full-on. They need to be selling the integration with the VCE products. They need to be selling the storage, of course, which they're very, very strong in, and equally selling the systems which integrate both the server, the network and the storage together, along with the automation and orchestration features that those are going to have to deliver. It's a start for them, but they're making a good start, but it's still a long way to go in terms of the process. It doesn't delve in VMware, sort of make that all happen. Well, it's interesting. I mean, you mentioned it yesterday on theCUBE, Dave, in one of the interviews at Widdish, but you talked about the low-level plumbing. A lot of the stuff's always been kind of plumbing for EMC, certainly mentioned systems. As David pointed out, that's kind of plumbing, but the theme here with Cloud needed is something about prepackaged applications going to the app, up the stack, if you will. So I got to ask David a question. David, you can chime in, that'd be fantastic, the theme here is modernizing. Okay, so what the hell does that mean now? You got low-level plumbing going on, it got all flash everywhere, but yet, they want to enable a DevOps world. Right. Okay, that's going to be very app-focused. And then we haven't even gotten to the whole IoT fantasy yet. So you get the fantasy of IoT, you have the traditional market today, emerging S-curve, David, you pointed out. What the hell does modernizing mean for EMC, and now Dell EMC customers? So let me tell you my view of it anyway, and what I believe EMC is working towards. There's modernizing in the terms of you want to make cloud-native applications. And that's clearly, you've got to use a whole different set of techniques, much faster time to market, et cetera. But equally, and just as important, you need to be able to update today's applications so that they can compete in that. Let me give you a concrete example of that. Data is most valuable a few milliseconds after it's been created. When you have got the answer to that question of, for example, in real time, should I accept your credit card or not? You're suddenly in Bangkok. So you need to merge that analytic data, which has spent a lot of time and effort using modern techniques to develop. You've got to merge that back into the production application to make that decision in real time on that production application. So by doing both, providing both types of a system, then you'll hopefully be able to really get the best value out of that data. As data gets older, it gets less valuable. So on the customer end, we're talking about replatforming. So what you just said actually hangs together, okay? So okay, let's take that to the next step. Okay, what the hell do you do? Essentially you're talking about a replatforming of the enterprise. Is it possible? Is there a path? And what are you seeing, David, around this notion of positioning for the future and getting agile at the same time and not screwing up the existing legacy or traditional engine of these companies? So you have to essentially replatform while operating the business. What are the challenges? What is the path? So one of the challenges, so one of the challenges, there are a lot of challenges on that route. But let me tell you some of the things that are absolutely crucial to that. The first is automation and orchestration. So you've got to treat the true private cloud, which we've talked and investigated a lot about. We've got to treat it in exactly the same way as the public cloud and provide the same sort of capabilities. So that's one component of it. The other component of it is to use technology and in particular flash technology to increase the speed that which you can push data through the enterprise. Time to value for the data. So instead of in today's system having 10, 20 copies of data, you want to have one copy of data and then be able to use that data both for operational work, for development work and for the analytic work as well. So I think that too, this EMC world is always a lot about messaging. Member of cloud meets big data and modernize to me a couple of connotations. One is when I first heard, I was like, oh boy, I remember when Unisys was going through its mainframe modernization, IBM mainframe modernization. The second thing it strikes me is they're asking their customers, hey, modernize, buy stuff. The third thing is I think they're setting forth a sort of a messaging statement that is a challenge to the Amazons of the world. Because essentially what they're saying is look, the existing legacy apps, you want to modernize those, you're not going to move those to Amazon. And the cloud native stuff, we have a path for you. You don't have to go anywhere, stay right with us, same service, same levels of reliability and availability and the SLA that you've come to know and their responsiveness, et cetera. The question is, right, and there's a concern, right, to Dell merger customers have to be looking at, well, what should we do? You see HP at this event, poking at EMC, look at how the HP customers are getting value, et cetera, et cetera. Oracle's talking about taking advantage of this opportunity, this time of change. So the question is, what should the CIO be doing? So Dave, I think this is really a great question. And if I'm the CIO and I used to work with CIOs, we talked to a lot of CIOs with Wikibon and theCUBE, here's the answer. The best move is not to move. And what I mean by that is the worst thing you could do right now is go pick someone now. The customer is in control. I would do a bake-offs 10 ways from Sunday because if you're positioning for the future, we talked about replatforming, the best move is to sit back and let EMC and now Dell technologies come to the table bearing goods and gifts of, whether that's pricing, better platform, full bake-off. HP now has to come to the table. So the vendors need to show their worth. So I believe that the best move for the CIO is to sit back, get your teams together, have these architectural conversations that David was pointing out, some of those dynamics and do a bake-off. Well, you know, it's interesting, Alan Nance, when he came into theCUBE a couple years ago, essentially did just that. They said, our future vision is we're going to buy everything as a service. So they gathered all their vendors in and said, here's the requirement. A cloud contract. How are you going to meet it? And they basically did a bake-off. And if you weren't able, the guys who met it best became preferred vendors. The guys who met it became, you know, approved vendors. The guys who didn't meet it, they don't do business with them anymore. Right. So that's a great suggestion. Yeah. I mean, it's the best move. I'd add one extra piece to that, which is moving data around is expensive and takes a huge amount of time. So in general, where the data is, is where you should be doing your compute. You should be moving the compute to the data as much as you can. And if you take those two philosophies, which is wait and see, and don't move too much data around from where it's useful, where you want it, then those two strategies make a lot of sense. And Bert Lattomo just asked, what about Lenovo and this equation? I would say that you would treat the edge device as an edge-connected device, whether it's a connection with a computer, mobile, person, or IoT device. It's an edge device. It's software going to have the power on that. So we're day three. Let's talk in two or three years about where Lenovo is. They're going to take some time, but they're going to be a player. Well, EMC, talk about the connected nodes. And that's something that, I know Dave's been doing a lot of work on on IoT. But day three, it's all laying out. Traditional core emerging technologies, the replatforming of the enterprise is happening and the CIOs and the customers are in control. They're in charge. And we're going to be citing things to come, guys. Great, great analysis. Day three, wall-to-wall coverage on theCUBE here. At EMC Royal 2016, I'm John Furrier with Dave Vellante and David Floyer, you're watching theCUBE. Looking back at the history of...