 Live from San Francisco, extracting the signal from the noise, it's theCUBE, covering Oracle OpenWorld 2015 from Studio C, brought to you by Cisco. Now your host, Brian Grace Lee. Welcome back to theCUBE. We're here live at Oracle OpenWorld 2015 here in San Francisco. Down here what we're calling Studio C, right here in the middle of the show floor, here at Oracle OpenWorld. Really excited, tons of energy here on the floor, 60,000 people. Larry Ellison just finished up his afternoon keynote. Lots of talk about security, lots of talk about the cloud, really talking about the transformation that's happening here at Oracle OpenWorld. And excited to have two guests for this segment. I'm Brian Grace Lee with Wikibon. We've got Lisa Spellman who is general manager of Intel's data center marketing. Yep, great to see you. And of course a man who needs no introduction this week, Jim McKeown from Cisco's data center business group, vice president. Welcome both of you. Thank you. Thanks for having us, yeah. I was thinking about as I came over today, probably five, six years ago, seven years ago when UCS first got announced, there's a lot of naysayers, a lot of people saying Cisco servers, it's a low margin business, why are you getting into that? And the thing that struck me, because I was at Cisco at the time was, I don't think people understand what Cisco gets into. They get into innovation. And between the two companies was a ton of innovation, innovation around memory extension, innovation around converged networking, fiber channel and ethernet, innovation around driving APIs around infrastructure that had really never been done. Talk about where the partnership's gone and just, I mean does it exceed your expectations thinking back to where you were five, six, eight years ago? Well I'll go first and then Jim can have a chance to win, but I think it's exciting in many ways. I think Cisco was ahead of the game in creative and sophisticated solutions that were addressing some of tomorrow's problems and tomorrow's now today. So they've had tremendous success in the market and we've been delighted to share in that with them. And one of the areas that's most interesting is how a lot of people have thought of Cisco in the past as a network company and then they've moved into the enterprise space and into the cloud space. And now you see actually network, enterprise and cloud are themselves converging as markets and as styles of infrastructure converge, their solutions are becoming even more prevalent and even more favored across people who want a well run, well managed entire data center, not just server rack. Yeah, and it's great to see, I mean Cisco has always pushed being leading edge and over and over again we see Cisco getting benchmark wins against virtualization environments, benchmark wins against bare metal. It's showing that it's not just everything is the same. There's opportunity to innovate, there's opportunity to really drive the market. How do you guys think about that innovation? It's part of the DNA I would think. You know actually I have to say we were fortunate because we started as a green field in the space, right? We did not have to bring all the legacy components along with us and everything that we did in the past. So we were able when we launched UCS, start with Clean Slate, design for virtualization, design for the types of applications that are going to be coming as opposed to bringing along some of the other components that we had been doing for years and years and years. So when we got in, timing was right. We actually had some great updates from coming out of Intel that we were able to incorporate early on and we just got the market at a transition where the beginning of integrated infrastructures were happening, bringing together, because it's not just a server, it's a compute offering. We call it a unified computing system because it is a system. Bringing together compute, network and storage access and it was timed right. Right, well and I think that change, that time of change six, seven years ago was really kind of the beginning of people went from bare metal to virtualization. They're starting to think about how do I do things in a cloud like manner? We're now, this show has been, you could call it Oracle Cloud World almost. That's been the theme all week. Talk about how you both think about clouds because it's very much world of many clouds, clouds for all. What's your take on how many people are going to innovate in this space and what customers really want? It's interesting because there's a lot of people that think of cloud and they think of really big cloud service providers and when we launched our cloud for all, one of our taglines is there's tens of thousands of more clouds that are yet to be born and we want to be part of that with partners like Cisco to drive that innovation and new capability that does actually transform businesses. So you can look at industry after industry and see how moving to cloud type architectures has actually changed the industry. And I mean, a classic example is the taxi industry. It's still on your phone. It's just you're not calling, you're hitting. And that can now happen across not just consumer services, but that will start to move into business services over the next several years. And there have been real and legitimate barriers to entry to getting enterprise on-premise or hybrid clouds built, but one by one, the folks at the show here are helping knock those down and make it possible for enterprise to realize that value from the cloud infrastructure. Right, well, and I know from having been at Cisco, Cisco's never afraid of the big challenge. So you talk to them about an Uber or Airbnb, these radical business funds. John Chambers was talking about that for decades. Chuck Robbins is now in place. Talk about what Chuck's philosophy is around the data center and around cloud. How are you, is it similar or is he a bigger vision? Well, I mean, I think it's what we're all seeing. The data center is not combined to the four walls of the data center anymore, right? You know, we talk about, I'll give a bold prediction. There's going to be more than two clouds in 10 years. So just go ahead on the record for that. What's going on is actually we're finding compute is becoming very specific. We, you know, we can talk about things monetized, but we're actually able to do more with compute in different environments. So whether it's IoT at the edge and actually have it just the right amount of compute there or if it's data center where you have to scale up, you know, we're doing much more focus there. And then the scale out types of applications that are going on. So you have what's going on is there's more change going on with applications. More change going on with digitization. And we're, you know, Cisco's rapidly becoming a digital company, embracing it full on, Chuck's leading that charge. And we're just saying the change is coming. What we do know as our two companies, like the infrastructure that underlies that has to be reliable, but it has to be flexible with different form factors. And the more that you can have consistency and standardization, you're going to have better management, but there's going to be a lot of dynamic changes going on in our world. Yeah, we see a vast diversity of workloads that are growing. I mean, just the changes in extensions within the workloads that people are running in their data center leads to still a general purpose solutions that can address a lot. You can't build a custom stack for every single thing. But then one of the big themes we see across all of those workloads is a data analytics, just prevalence, like that wave is coming. It's the next thing, and it's what's going to take everyone by storm as they figure out how to get real insight out of the data that they're now stuffed with. Right, right. Well, we're seeing that. Whether we're talking about, like you said, IOT, I mean, everybody's got a device. Everybody's got 10 devices, and their kids have a bunch of devices. How are your customers understanding that? Because that's a big change. It's a lot more data, rethinking about how networks work, rethinking about where to put the compute environment. What are the early thoughts you're hearing from your customers around that space, and what are they asking you to help them with? I think that data explosion, we're just, it feels huge right now, and I think we're just at the beginning, because we're still in it to your point about humans driving the need for additional or creating more data, driving more storage. And it's going to shift over the next five, however many years into a things are creating it. It's the sensors, it's the world, and a lot of our customers are asking for the rationalization. How do I make sense of that, and how do I turn that into a business model I can monetize? Because again, when you're serving your enterprises or your government customers, and looking at what do they need, they need to advance and accelerate their business model, versus keep doing what they're doing only more efficiently. So that's survival, and then there's win on top of it. Well, and both of you focus on the data center, but I have to imagine, Cisco's got such tremendous understanding of how networks work, protocols work, Intel's got such understanding of what the devices are changing. We're seeing all sorts of form factors. I got to imagine this partnership while it's data centers the core, you've got to be thinking about how do those other elements affect the data center? Is that going on? Is that kind of a conversation going on? I mean, I think what you alluded to with the data and analytics, I mean, you're going to be doing data computation at the edge, you're going to be creating big data lakes or enterprise data hubs as our friends from Cloud Air like to call it, and forming those where you actually can do deep learning study from it, and then you're going to be doing things that you're going to be, I'm just going to have a cloud-based service. It's going to come, where I can actually just take advantage of this, let's call it data science automation, right? There's a lot of companies that are doing that, so it's everything's a cycle. For a while we were actually just trying to figure out how to collect the data so we could actually have more data so we could get insights from the data. Now we're actually understanding if you don't actually do prep on that data, clean it up, do analysis on that data before you actually do the analytics on the data, then you're not going to get the information. So it's a cycle, we keep going around, and as we understand more and more how to do those solutions, we understand more and more from an infrastructure standpoint what's required and how to better hit it. We're also very lucky to have Cisco such a tight alliance that we have with them because they are a prominent leader in the network space and we've had great success and learnings from them and the whole area of the comm service providers is going through an industry transformation as they look and move off a fixed function and proprietary ASICs and ASSPs and we've had great partnership there. Actually we have some announcements coming out in the next months together that I think will be pretty exciting, so watch it. You don't want to drop them on here? Exclusive for theCUBE? Exclusive for theCUBE, what does it announce everything? They're excited, but it's all coming in. It's really targeted in that space and winning together and continuing to help that industry through a transformation. Again, we're not forcing it, they need it for their business model as they struggle with the explosion of data, the explosion of users and again monetizing and continuing to have viable business models. So we've been talking about these things at massive scale, explosion. You mentioned just a few minutes ago automation and I got to commend both of you. If I had said three or four years ago, open source and Cisco or Intel, you'd have kind of gone, well those two words don't, both of your companies are making tremendous contributions in open source around automation, around these new frameworks for cloud native. How do you think about, I mean how much is open source, are you hearing from your customers saying, hey, be part of the community and how much do you just feel like that's going to help you engineer better products? Well, we've been working actually together with Red Hat as a partner on some of those open source related but engineered solutions. So one of the barriers with open source, it hasn't always been the technology. Of course, we're putting in enterprise features and trying to really focus in that space but it's the confidence and it's people having the belief that it will work for them and they can bet on it. It's a lot of cultural change. Am I putting intellectual property out there? What does it mean to work with the community? And I think it's great that both of you are getting comfortable with it. Companies are trying to figure it out but no, I think it's fantastic. I think people should go off and look at the things that you're, because it gives people a sense of not only what you want to work on but where they can come and help because it is. These problems are difficult problems. They're not going to be solved by one company. Well, we also hope that when people see names like Cisco and Intel partnered together that does build the confidence and trust because we're brands that are built on that reliability and that credibility and we will deliver that through our open source solutions and our open source partners. Let's talk a little more about big data. What are the things that you're doing to help make it simpler? There was an article a few years ago that said data scientists is going to be the sexiest job in the 21st century but they're hard to find, right? What are you doing to make data science and big data analytics easier for people? That article is funny. We've seen a lot of, our chief data scientist likes to refer to that a time or two again. So for those of you that haven't watched online and saw our Intel CEO, Brian Kuzanich, speak on Sunday night, he actually talked about this and had our chief data scientist, Bob Rogers, on stage with him to talk about one of the things and big investments we've made is in our trusted analytics platform, excuse me, and this is, again, we've developed it and now it's open source. We're handing it completely back to the industry to start developing and getting outcomes out of. So that is a platform as a service that's designed to democratize big data services and so that you're not reliant on the bottleneck of data scientists and data analytics and all the people that have all the skill sets that are in such incredible demand, they can't even finish school before they get snapped up. Right, I feel bad because we always joke that when you look at a PowerPoint presentation about a product, security is always the last bullet point. You know, we're a good way into this talk. Larry talked for an hour about security and he talked about security, you know, he said, well, we've got to get further down in the stack, you know, almost down to the silicon level. Well, what's your, what does Intel's overall take on trying to put security deeper down into the stack even at the silicon level? You know, fundamentally we're in complete alignment that the lower that you go, the more secure you get. We just think he made a mistake on that last portion. He forgot to say Intel Xeon because that's really where it's at. So you can see we've been putting over the years features into the silicon like Intel trusted execution technology and you start to see, especially in the cloud space, cloud service providers are differentiating their offering because of those silicon features. So with TXT and that's a differentiating feature and we're continuing to invest there and also tie together that relationship with our Intel security group formerly, you know, McAfee where you take software, you learn it in software, develop it, move it down into the silicon over time to continue to harden that stack. Right, well, and it's becoming more and more important. Obviously customers are afraid of getting attacked. The attackers are getting better, but it's differentiating for service providers. They want to be offered to say, we're secure, we can audit, we can do compliance. We're going to do that in real time. So I'm going to give you both a chance to sort of last question, last answer. What are the, what's the one theme that you're really taking away from this week that you're really going to be talking to your customers about? Well, I think cloud. But I also, it's the understanding that cloud is going to be a journey, right? So anytime we make predictions, something's going to happen 10 to 15 years out, we're declaring there's a journey along the way. There's a lot of customer needs are going to be met by private cloud. There's going to be a lot of customer needs are going to be met by big clouds. There's also going to be a lot of specialized clouds that are going to spin up there to really do it. And I think big data and analytics is one of the solutions that are going to fit in that. Machine learning, deep learning will be after that. I think not to sound uncreative, but I think Jim's nailed it. I think that's what Orgel's definitely put on here is a cloud show. So we like to say we're ahead of the game with our cloud for all type of idea. It really is pervasive and it will cut across all industries, all vertical segments, all usage models. And I think the previous barriers that people had about the difficulty of deploying clouds, the difficulty of managing clouds, the difficulty of the software stack are getting knocked down one by one. And I think it's a revolution that's happening. I think that's a great thing to sort of wrap on. Lisa and Jim, thanks for this great, great conversation. Cisco and Intel have been doing a ton of really good innovation, continue to do it. Great partnership, excited to hear what you're going to announce next month. Folks, with that we're going to wrap up here. Stay tuned for all the things we've been doing here on theCUBE, Silicon Valley, SiliconAngle.tv, wikibon.com for all the research we're doing around this space. Stick around, we'll be right back.