 Live from Las Vegas, it's theCUBE. Covering Dell Technologies World 2019. Brought to you by Dell Technologies and its ecosystem partners. Welcome back to the party theCUBE Live, day two of our coverage of Dell Technologies World. I'm Lisa Martin with one of the best men in TV dressed man, Dave Vellante. Dave, that tie is awfully dapper today. Yeah. Always a pleasure to be with you and we're pleased to welcome back to theCUBE, Ty Schmidt, VP and fellow of Extreme Scale Infrastructure from Dell EMC. We're all kind of color coordinated here. Somebody sent us a memo. Happy to be back, thank you. Great to have you here. So we've been having great conversations the last, I'd say day and a half. Lots of energy, lots of excitement. This is the first Dell Technologies World since Dell returned to the stock market a few months ago. Talk on all things, lots of buzzwords. Hybrid, multi-cloud, partnerships, Edge. One of the things that Jeff Clark said this morning in his keynote that I think needs to be said in a Game of Thrones voice is the Edge is coming. Edge is coming. What does the Edge mean? Is it like digital transformation where it means five things to two different people? Yeah, so the Edge is coming. Some would say the Edge has been here but now it's being at least called something that we can try to get our heads wrapped around, right? So the Edge has been here, it's here, it's continuing to manifest itself. I'm going to give you a couple of examples. What we're hearing from customers, human nature is I want this thing to be defined. I want it to be something stable, bounded that I can then go and create a workforce or a product line and I know exactly what we're doing. Well, I've got news for those folks. It's not that. It's chaotic, it's dynamic, it's disruptive. I'll bucketize it into a few big level buckets that we're seeing but the thing I'm trying to get people to get their heads wrapped around is that the Edge is not defining usage models. The Edge is not defining products. The usage model is defining the Edge and so there's thousands and thousands of different usage models but I'll talk about a few of them, right? I think most people in their minds are thinking about a distributed network, a distributed data center, something outside of my traditional data center space that I need compute, storage, something to facilitate my business. I'm calling that the private Edge. Stealing a little bit from the private cloud, calling it the private Edge and basically it's a direct ingest or usage of the compute that I'm buying, the storage that I need. It's at a location, typically follows the data, so where I'm collecting data. It's my array of sensors and cameras and you name it IOT type devices. Where that data's at, I need to have on-prem data center capacity to collect that data, do something with that data and then do something actionable at that facility and minds and construction centers and retail stores. People talk about autonomous vehicles. The reality is leading up to the autonomous vehicle, there's a need for data collected off of these cars as they are experimenting with different terrains and weather conditions and driving conditions and we are providing those types of Edge data center capabilities for those automotive companies to drive their cars around, stop into these depots, download their data, get updates and off they go to collect more data and that's an example of the private Edge. So we've seen, we've all been in data centers, raised floor, pristine, beautiful, physical security. The Edge could be a truck, a police car, a dock, it could be anything. So how are you seeing customers deal with the physical security aspects at the Edge? That's a great question. So there's a physical and logical component to it, right? So they're all over the place. So these first examples of what we're seeing Edge being actually adopted outside of a traditional data center space, tremendous sensitivity to physical security. Some of them are taking care of it themselves so they have a courtyard or a building that they're wanting to simply put a device in and they're handling security, physical security at that location. Others are, listen, I'm trying to understand the cost trade-offs of building this fortress which kind of is counterproductive to what I'm trying to accomplish here. Can you provide that as part of your data center solution? And so looking at things like ballistic protection, overall theft protection, these things are smaller. They can be hauled off so we have to anchor them to the ground, we have to have, we have to think differently about how these things are connected so that somebody can't come up and cut through a wall or cut through a pipe and get access to this critical data. So how we approach that physically is a tremendous, tremendous concern to customers and we're addressing that through the solutions we're providing. Ballistics, bomb proof, flame proof, intrusion proof, different types of biometric sensors. In some cases we hide them in plain sight. Paint them with graffiti, put some bullet holes on them, make them look like they're not worth anything. So you do some serious stress testing as well, what's your favorite stress test? There's a lot of shock and vibe testing so we have to protect against seismic, we have to protect against wind loads. We may have 1,000 pounds of snow on top of them, we have to test these things against those type of environmental conditions. We haven't yet tried to drive over one with a bulldozer or some type of a vehicle but we do do impact testing, ballistic testing, and there's a lot of fun testing. And I didn't mean to minimize the logical security, a lot of this is critical infrastructure. And so everybody talks about the threat matrix and so what do you see in there? What's Dell bringing to the table? I mean our wonderful array of security elements with our company right now are applying to that. I think what we're having to do with customers, and this is an early part of the journey, is how is this data being protected? And the logical component, at least what we're seeing today, doesn't necessarily differ as much from the traditional data center. But things like you can automatically detect whether an intrusion, a physical intrusion has been made and decide to do something actionable like lock hard drives. So even if somebody was to steal the server or the hard drive, they can't do anything with it. GPS type sensors and devices that can track the valuable components in the solution and not allow them to be turned back on unless they are connected into that network as a proof point. And so there are a number of things that are being driven that somewhat look like the traditional data center but by essence of where they're located and how these things are remote. We have to think about that. When you're talking with customers who are on, everybody's on a journey of many different types, digital transformation, IT, security, workforce, we've talked about all of those things in the last years Dell Tech World and of course this week as well. How do you advise them of where do I start? If I have like for example, when Dell was talking about the latitude devices this morning and all of this really cool tech built in even with screen protection for example, we're all, and John Reese even talked about the edge of people and the edge of IoT and centers which makes sense, but where does a company like a Dell start these conversations with customers who have a ton of probably people edges and IoT edges or yeah, with where do we start kind of reining this all in so we can get the data act on it in real time, process it as close to where it's being generated as possible in a way that we can actually understand. Absolutely, this is the world I live in, right? So fundamentally it helps to understand that most companies, lots of different organizations but when it comes to a data center type of solution you have the IT group who are trying to do something transformational, the software writers, the applications and workload developers who are trying to take advantage of next generation IT to do something transformational. Also you have the facility side. So this is the data center, the real estate and the two don't necessarily talk about strategy and align on how they're going to facilitate transformation. So ultimately it starts with having deep discussions with both of those organizations. What are you trying to do to transform your business? How does that translate to the types of IT gear, storage, networking that you're going to require? What if you weren't constrained by your facility? What could you do and paint that picture for them? It also in parallel involves deep discussions with the facility and corporate real estate side of a company. What do you have, what are your challenges? Many companies do have, and I'll speak for the telcospace, they have a landscape of what you could consider edge data centers, they're the central offices. If you extend out to the cell tower, these are pieces of real estate that they're trying to monetize. And but what comes with that are the constraints and the variability from site to site, regulation requirements, cost of construction, labor rates, whether it's union or not. There's just a tremendous amount of variability. The end of the day where Dell comes in and helps is, one, we are a great thickener of things because we can, I will say force, but really it's enable the discussion between the IT and the facility teams. We do have that understanding and we are looking at it objectively through both of those lenses. At the end of the day, creating a cost model, something that customers can use to look at trade-offs, locations, types of technology, looking at those trade-offs to help them make decisions is what we're spending a lot of our time doing. Well, it's a real cultural dichotomy. You got the IT technology team trying to move fast and break things. You got the facilities team trying to say, let's keep it stable and safe. And they're both critical. They were absolutely both critical and they have deep ownership and governance on those respective sides of the business. And so these edge data centers, the part of the world that I own, it really forces that discussion to happen. It's the collision between IT and facilities where those decisions have to be made at a real estate level, at an infrastructure facility level, and at an IT networking security level. And all those things have to be understood and accomplished, solved at the same time. And quickly, they don't have the luxury of time to really sit and battle this, swat it back and forth like a tennis match. They don't. I will say that majority of the industry right now, this is a big play for them. You can't push all of your chips in without having a lot of this information. So what we're seeing is a lot of, I would call it crawl, walk, run, where they are starting with modeling techniques, then they're going with proof of concepts to test out. What does this mean from an OPEC standpoint? What does this mean from a CAPEX? How much have I been going to have to spend? Does it scale from one to a thousand or 10,000? And so getting this data and helping them build the models to help them understand that allows them to plan big and understand what they need to do at a higher level. Wow, so much to dig into. This is like the edge dot, dot, dot to be continued. Ty, thank you so much for joining Dave and me on theCUBE next year. Can't wait, this is here all the great things, but there's going to be more stories, awesome. Ty, thank you. Thank you very much. For Dave Vellante, I'm Lisa Martin. You're watching us on theCUBE live in Las Vegas, day two of theCUBE's coverage of Dell Technology World 2019. Thanks for watching.