 Live from Las Vegas, Nevada, it's The Cube at HP Discover 2014, brought to you by HP. Okay, welcome back everyone. Day one wrap up here, full swing actually, because we're going to wrap up early, get to the keynotes and the sessions. I'm John Furrier with Dave Vellante. Here in The Cube, our flagship program. We got the events and extract this to the film noise. Dave, day one, great interviews. Got some big names on here early. All the usual suspects from services. Getting in the trenches, right? Getting all the data. And from the folks on the front lines, from Scott Weller's organization, break and fix the services, which is a more complex business every day, to David Scott, who's the star of the show. You got to say, storage continues to be the center heartbeat of the innovation. All the flash, software defined networking, storage all coming together. Bethany Mayer involved in NFV, Tom Joyce building from the ground up, essentially convert systems, just a great action. Yeah, well I think today was the, kind of the enterprise group day really for us, John. Tomorrow's cloud day. And it's going to be interesting to hear it. So different format this year, John. The number of the events have taken this format. We saw that with IBM a couple of weeks ago, where they had the keynotes in the middle of the day. Personally, I like the morning keynotes. It gets everybody charged up and it gives people a Kool-Aid injection of the messaging. And then the cube can comment on it, which is why I like it. But so we're going to hear the keynotes now in the sort of midday here. I think you're going to hear a lot about the new style of IT. I think you're going to hear a lot about the cloud. And then of course you're going to sort of run through the HP businesses, but as I say, new approach to communicating to the audiences. I personally prefer when everybody's coffeeed up, caffeineed up in the morning, first thing, give them that messaging injection. What do you think? So my take is this, what I'm hearing, well, we haven't gotten to the cloud this tomorrow. Colin Mahoney was here from the big data. HP clearly is focused on the recovery. Okay, but there's two things going on that I want to highlight. One is Meg Whitman, this is sources that I have close to the company and some of the folks told me off camera. It's absolutely committed to making sure that the existing divisions within HP do not get sideways and they continue to perform on their business metrics. That's a full commitment to the old school HP, I say old school, the HP, the big division groups. At the same time, you're starting to see the emergence of what I call the elite forces, nimble teams that can jump quickly. What Tom Joyce has done with Converged Systems, really good move, counters some stuff we've seen with VCE, modern specialized markets. That will either be the foundation for the transitional markets, or just new markets in and of themselves. Bethany Mayer's NFV is a great example. He's talking about a multi-billion dollar opportunity that she's capturing and she's essentially agile. She's starting with a clean sheet of paper. She gets to go cross HP and cherry pick people, technologies to put together for the first time a viable offering around NFV, which is the telcos. That has a significant management change from HP where in the past, things are going to the divisions, R&D comes out of R&D. It's a slow process. It's a slow boat to China, so to speak. Really, really that's different. What you're seeing now, Dave, is two groups, the divisions, large scale divisions, and these nimble teams. And I think to me, that is something that's new that I'm seeing. I've been seeing it happen for a while. I wasn't sure it was kind of a bakeout of a new opportunity, but clearly cloud, these markets are moving way too fast. I think what's happening internally, you know, I haven't confirmed this yet, but I'm just reading the tea leaves. You're starting to see these SWAT teams going out there and attacking these markets. I think you're absolutely right, John. I mean, I think Meg is looking at this saying, wow, you know, she's trying different things. She's moved Vecti into the enterprise group. She's shuffled the deck a little bit in cloud. She put Martin Fink and HP Labs in, brought him into the cloud as well. I think she's looking at initiatives like Vertica saying, okay, we need to incubate fast growing parts of the organization because we can't acquire companies or we've chosen not to. They could if they wanted to, but they've chosen not to because they're still paying down the debt. And so the challenge that HP has that you really don't talk about much publicly is how do they grow organically? So the way they do that is exactly what you said. I think you're reading the tea leaves. That's very intuitive of you. We see you got Vertica, you got Bethany Mayer's, you know, network functioning virtualization group. You got the cloud group, HP Helion, Helion. I can't ever say that word. And those are growth initiatives inside of HP that are organic. And it's hard for a $112 or $115 billion company to grow organically with no acquisition juice. Well, I'm going to be out tomorrow, Dave. So I'm going to be coming in later in the afternoon. I got to fly out tonight for some meetings. Facebook has their press event, which I'm going to be attending. It's always good to get off the record. I just tweeted on Facebook, I'm trying to make it. I love Facebook press events because it's like allow people to connect and share, which is Mark Zuckerberg's constant line that he always says about why Facebook's important. So they do share some off the record information. And then we have some events tomorrow with Nimble. It'd be great, exciting to get out there. Nimble Storage, quick plug for those guys. And then they're coming back here. I'm going to miss the Vecti interview and looking forward to hearing how that goes from you. Chris Seeland, great lineup. And then in the afternoon, I'll be back in the afternoon for Moonshot at around 12. And then in the afternoon we've got Cloud, Bill Hill. Tomorrow's Cloud Day. Tomorrow's Cloud Day here on theCUBE for HP. Really an important area. I think HP's biggest opportunity is in the three areas we talked about, Dave. One, these new SWAT teams and like Bethany Mayer, Tom Joyce, you have the cloud and big data. And infiltrating cloud DNA and big data DNA through the divisions is their big opportunity. So that should be a great day. And just in general, the Internet of Things, Dave. Google bought a satellite company for half a billion dollars today, that's big news. This is just more and more changing of the guard. And I think this is the market we're living in. Well, you brought up Internet of Things today in a couple of the interviews. And I think that's, it's almost like HP has to leapfrog mobile. I mean, obviously they do mobile. The enterprise mobile is driving a lot of new applications, but they're not playing in the mobile device market. It's certainly not in a big way. It's almost like they have to leapfrog that trend to hop on the new mega trends. Some people call it fog computing, industrial Internet, Internet of Things, Internet of Everything. It's not a big part of HP's marketing though, John. Do you think they can catch that wave? I think they can catch it. I think what HP's all about is being relevant right now. I think in mind of the customer, they got a lot of things going on that has been distracting them on the internal front. I think Meg has done a good job with the messaging and cleaning up the nonsense around the sides, around bringing the messaging internal, controlling the message, and really focusing on the road to recovery. And I always say, you can't hit icebergs if you don't sail where the icebergs are. So I think you're seeing the ship's turn away from the North Atlantic into the warmer waters. I think that's her job. I think on the product side, HP is smart to execute with the cloud, smart to keep that consumerization supply chain business that they have. And I think that, if you look at what Michael Dell's doing in particular, he's going private because he wants to retool mobile. And I guarantee you that Michael Dell comes out guns blaring with a mobile device of some sort. The consumerization of IT has to go up the stack to the edge of the network. That's internet of things. That's mobile device. This is the future. So to me, Dave, that fundamentally is the case. Now, will that translate into stock performance? Will that translate directly into better business performance? I think they may take more bleeding before they recover. That being said, I don't think that's necessarily a bad thing. The question is, how patient will Wall Street be? Hey, the HP stock's doing great. It was the dog of the dial trading in the low 20s. Now it's up 30% plus this year, the past 12 months rather. And so I think for a company the size of HP, there's so many things that HP can do to drive evaluation. But there's a huge upside. I mean, HP, you mentioned Dell before, they're in the sort of a similar boat. Both trading at 50 cents on the revenue dollar. The company like HP should be trading north of one X revenue, don't you think? And so that's a lot of upside to HP just in basic blocking and tackling. So looking forward to tomorrow, a lot of flash talk today. We didn't touch on that, but... We got a lot going on. We're launching the crowd chat tomorrow. We're going to make a general availability announcement of that tomorrow. Look for the news on the internet. We should have some stories on the web. We're talking to journalists and briefing journalists all day today. We're setting out a release tomorrow. The crowd chat will be launching. And also Dave, just I think in general, the Cube is on a run. We're in the middle of our summer tour. A lot more action going on. So tomorrow should be a great day. And we'll be on crowdchat.net slash HP Discover. Go there. That's where we'll be hanging out. You go there, you sign in and be part of the conversation. LinkedIn, Facebook, or Twitter come there. And we're crowd storming, as they say, Twitter storming, crowd storming. We will be in there sharing the conversation. Certainly it will be active during the keynote. So at three o'clock, you're going to start to hear the keynotes. So watch here. We'll be broadcasting them live. Go to the web. Get on crowd chat and join the conversation. We'll be certainly be online. So that's a wrap from day one from the Cube. Stay tuned for the keynotes and continuing wall-to-wall coverage of HP Discover. This is the Cube with John Furrier and Dave Vellante. We'll be back tomorrow morning first thing. Take care.