 Live from Boston, Massachusetts, it's theCUBE. Covering HPE Big Data Conference 2016. Now, here are your hosts, Dave Vellante and Paul Gillan. I went back to wrap up day one of the HPE Big Data Conference, HPE UO Packard Enterprise Big Data Conference. Hashtag sees the data. Paul Gillan, this was good introduction for you to Vertica and the Vertica community. It's, you know, you're going to have to digest it. But, I mean, essentially, you've got, you know, the traditional enterprise data warehouse and you get the big sucking sound called Hadoop. Taken away, sort of people used to joke the ROI on, you know, Hadoop is a reduction of investment and that's a lot of what happened. Vertica kind of sits in the middle and has been able to sort of skate above that fray. Despite the fact that it being very competitive, Amazon Redshift and you got Teradata and Oracle and Green Plum and the Ts and all this stuff in there, but Vertica has been able to survive and thrive despite that big sucking sound. Not that it's not still competitive, it is very much so. We definitely saw, you know, more discussion about use cases beyond just pure retail and which is great, good positive sign and we're seeing the evolution of the platform, Vertica 8, we're going to hear more tomorrow about Haven and Autonomy, Haven on Demand, which is the cloud product which combines all these capabilities and delivers them up through services. Robert Young-John's tomorrow's going to talk more about that, but today, you know, was frankly more the same with HPE Vertica. It's execution, good stories, good use cases and looking forward to tomorrow. I think what I take away with HPE in general is it's a company that is strong on just executing well. They have a strategy, they've executed well. Very well engineered product. Obviously its customers are very favorable. We had a couple of security companies here today. We had a company that does uniform management and cleaning. We had a company doing advanced machine intelligence based stock trading, really kind of all over the map. So I got the sense that Vertica is a versatile tool that its customers find a lot of different applications for it. Certainly that's something that we heard from Colin when he was on earlier. The question I have though is I don't get a sense that there's anything breakout here. I don't see new markets emerging. I don't see a lot of excitement. I see a lot of interest and loyalty. But I almost wonder if Vertica was owned by somebody else if they would be doing more with it to really create a market leader. Well, there's some other examples, right? So you look at the teaser inside of IBM. I mean, it's kind of a similar story, right? Yeah, very much. I think, and frankly I think the acquisition was almost a hedge on Oracle for HPE at the time. HPE, now HPE, but also an opportunity to get into the big data space. And this was a growth area. It was a software asset that they felt they could help bring in to shore up the software business. Leo Apatec at the time was trying to go harder into software. It was pre-autonomy, that was their big play which didn't pan out the way they had hoped. But so, in a large sense, you're right on the one hand that it's kind of not breakout. I'm not sure it would be different inside another company. As I say, there's other examples with Netiza. I don't feel like Netiza's breakout solid Aster data and Teradata. It's again, it's a hedge against the big sucking sound because you can at least add value in between the EDW and the Hadoop open source by focusing on those workloads that are going to yield performance with an MPP architecture. And that's why you saw initially a lot of retail, a lot of improving the existing businesses. And you're seeing scratching the surface and maybe even deeper than that in some new areas, but it's not one of those transformative, disruptive breakout areas. To your point, maybe we don't need more of that right now. I mean, we've come through a period of the last couple of years where it seemed like everything had to be transformative and disruptive. And we're seeing some fallout from that now, some disappointment in the Hadoop market with the lack of really coherent business models there. Maybe the future does belong, at least the near term future belongs more to companies, technologies like Vertica, which deliver a clear value, which have good, sustainable, loyal customer bases, which aren't trying to break the mold, but which are delivering very well on what we know does deliver value. Well, a good question would be, and I don't know the answer to this, would be a good question for Colin or Stonebreaker, would be if systems like Vertica, ColumnStores and NPP were available when the enterprise data warehouse started to take off, would it have had a bigger foothold? Because it feels like, as you're saying, this is sort of, how did we make the data warehouse better? But there's so much infrastructure built up in the enterprise data warehouse. So many processes, and it's just wired to the business, you can't just rip it and replace it. And so maybe over time it'll sift more off, or maybe the workload is such that you still need that EDW. I mean, EDW is not going away. It doesn't show any signs of going away. Certainly it's not a high growth market right now, and Teradata is struggling to position itself in the big data world, but certainly organizations are not abandoning them, but as you point out, her Vertica's position seems to be more of adding value to the enterprise data warehouse, incorporating some of the newer elements from the Hadoop ecosystem, and merging those two together. It's certainly not a bad position. I mean, it was a relatively small acquisition. I think it was a $320 million acquisition at the time, which is not, I mean, HPE just paid $275 million for SGI. That's true. These are relatively small acquisitions in this day of $67 billion acquisitions to L-buying EMC. So I don't know what the IRR was on that, but I would suspect that HPE's made money on Vertica, but it definitely has not been transformative. I think the other thing we're seeing is the analytics business and the security business are coming together, and that's, if I think about the future of HPE's security business, or frankly anybody's security business, I think analytics is a fundamental component of that. That's a competitive business though. Cisco's big in on security now, IBM making big commitment to security, and then you've got the traditional companies, the Trend Micros and the Symantecs that are out there. So I'm not sure that security is a market that anyone's going to be making a lot of money on in the near future, simply because it is so fragmented. Well, Trend Micro purchased tipping point, which was an HPE asset recently. So a lot of shuffling of the deck, I think HPE was trying to clean up, HPE trying to clean up its portfolio a little bit and get more focused, but regardless as to the outcome, it's clear that analytics and security are coming together and it was interesting to hear one of our guests talk about how the defenders were going to get a leg up because of machine learning and AI. We'll see. I mean, we've been hoping for that for a long, long time every January you look back and say, okay, we're more or less secure we've spent more and we're less secure every year. Now, part of that is the threat matrix and the growth of data, et cetera, et cetera, but clearly the bad guys are outpacing the good guys in terms of our ability to thwart penetration. We've kind of lost that battle is what I'm hearing. Now it's about how do we respond? So the responses are going to require analytics. Now, whether or not people can make a ton of money off of them, we'll see. The big guys, IBM, HPE, at least for now in that business see what happens, EMC with RSA, and then a zillion sort of startups, right? And as you mentioned Cisco and Microsoft and others. Right, and as one of our guests, I think maybe it was Brendan, I don't remember if I'm on security front was talking about how the analytics edge, analytics could be an edge for users that really the bad guys can't duplicate because we do have cloud, we do have these very high powered analytical engines going to take a long time for the attackers to duplicate that, at least in short term we have some lead on them in one area. Hard to believe with IoT that the problem is going to get any better. Oh my God, that sounds like a security disaster waiting to happen, doesn't it? Right. 15 year old thermostat, someone hacks into my 15 year old thermostat which the company that made it has been acquired five times in that time, nobody's supporting it anymore, who knows. Okay, so we're looking forward to tomorrow. Robert Young-Johns will be here as the keynote speaker, we'll have him on, he is the grand pooba of HPE Software. And Chris Selen, VP of Business Development for HPE Big Data. Chris is a smart guy, has been around the CRM industry a long time, knows a lot about how to put big data to use, he should be a good interviewer. He's got long time, you know, CUBE guests, more practitioners, more technologists, you know, more CUBE actions. So, hashtag is seize the data, you can tweet us, I'm at Divalante, he's at P. Gillen, G-I-L-L-I-N. Let's see, we've got live programming going on right now, out at VMworld 2016, John Furrier and Stu Miniman and the teams are out there, we've got two sets out in Vegas, so tune in to siliconangle.tv, check that out, check out wikibon.com for all the research, check out siliconangle.com for all the news of the day. That's a wrap for today, we will see you tomorrow. Thanks for watching.