 Okay, we're here in theCUBE unpacking the HPE GreenLake announcements. Daniel Newman is here as the principal analyst and founder of Futurum Research. Daniel, good to see you again. Dave, always good to jump on with you. It's good to have a minute to sit down. So what's your favorite announcement from GreenLake? What do you make of what they announced today? Well, I love the opportunity for the company to position itself up against a growth monster like Snowflake. I mean, looking at the ability to handle the breadth of the data at scale and offer a data service that can compete in that space, that's exactly the kind of narrative that I think the markets, the outside world is gonna wanna hear from HPE is how, you know, you're not just competing with your traditionals, the Dell's, the Cisco's, the IBM's. You're going after the mega growth cloud players in data services. And for me, that's really attractive because I've been really on top of HPE, saying, hey, you're doing a lot of the right things, but people have to feel and see the growth. To me, this is a major move toward a TAM expansion strategy. It's kind of the job of every CEO, right, is to expand the TAM. And I'm interested to see how HPE plays this and communicates this because, you know, traditionally it's a hardware company moving into data management, data services. That's an enormous market. I mean, we always talk about how important data is, but data management is just huge. And to do it in a cloud-like fashion, how do you see that as potentially expanding the total available market for HPE? Well, first, let's just almost walk it back a second, Dave. HPE is a cloud player, okay? And that's the story that it is trying to get out there. It is not a hardware player that's tinkering in software, but HPE has done software. This isn't its first go, but if you wanna be a cloud player, you look at the big hyperscalers, you look at the AWSes, you look at the Google, you look at Azure, the Google. Built, not just on hardware, it's built that big C. You and I've had this conversation before, all the things that make up the cloud, it's the hardware, it's the software, it's the services, the platform. You gotta put all these things together. And if HPE wants to be a public cloud experience, taking advantage of where we're moving with hybrid and offering it private, it has to have that same subset of services. Look at the investment, whether it's been AWS or Google or Azure in data services. HPE has to be in this space. So seeing this come to fruition, in my opinion, is directionally the right path, getting it to be well received, winning the right customers and showing the growth from these investments is gonna be the next important phase. Do you see that as a service model as being more margin friendly for HPE and if so, why? Well, I think universally we've found there's two major improvements that moving to the Azure service. One is it does over time create expanded operational margin. It's just economies of scale. You can utilize every resource more efficiently. Of course, there are CAPEX expenses. You've seen the amount that hyperscalers have had to spend to expand their footprints globally. So there is some CAPEX up front, that also on the back end creates depreciation and different bottom line profit creators. At the same time though, as a service is huge for the multiples and the valuation, which by the way is one of the things that has been a real in focus point for HPE is how does it up that number? You look at the snowflakes, not even profitable but getting huge multiples on revenue. And then you see even the other hyperscalers all getting bigger plays on revenue and on EPS. Most of it has to do with the fact that recurring revenue is beloved by investors. But it's also really sticky and creates a ton of stability within the company for the culture of the business to say, hey, we have customers. They're going to stay with us. They're not going anywhere. They're subscribed to our services. They're buying into what we're doing. And by the way, net revenue expansion, as you get them sticky, you layer in new services. We've seen how this has worked across the board with public cloud with software with SaaS. Can HPE do it as well? And of course it's been something they're doing, but it's something we need to watch really closely. And I think it's an opportunity that the company needs to lean into. And I think they will. You mentioned snowflake a couple of times. There's a discussion in the industry. It was sort of prompted by Martin Casado and Sarah Wong about repatriation, particularly as it relates to software, SaaS companies that the cloud bill is so high at some point they're giving away margin. So they're going to have to come back on-prem. I'm not sure that to date that has applied to the general audience of customer, although there's a lot of debate as well between the expensive cloud, obviously, egress charges, et cetera. So it's hard sometimes to squint through that. When you think about HPE bringing GreenLake to market at scale, bringing repeatable processes, driving, automation, et cetera, how do you think that cloud repatriation argument, which frankly, I haven't seen a huge cloud repatriation in the macro, but how do you think that will play out over time? Do you feel like the on-prem play can be as cost-effective or more cost-effective, or maybe you feel like it is already today? Well, I also listened to the Andries and Horowitz repatriation narrative as well. I think there are economies of scale with cloud that companies have to look at closely, but I also think that has a lot to do with why hybrid has been sort of the story of the day. That's why hyperscalers are going on-prem more, and that's why on-prem's are moving to the cloud, is because it's always gonna be some, some group of different placements of workloads to ultimately get to that optimized result. And so when you look at sort of what you asked, in my opinion, ultimately, it's all about the efficiency of your organization, trying to accomplish what your business is, and will there be some repatriation of workloads? Possibly, but there will be a very important hybrid mix, and I think we're gonna continue to see that trend, and I think that's exactly where everyone's going and HPE is going as well. All right, Danny, we gotta leave it there. Thanks so much for your insights. Appreciate it. We're gonna definitely have you back. You and I are gonna do some cool stuff together, so. Yeah, we'll talk soon. Thanks for your time. Thanks. All right, and thank you for watching. This is Dave Vellante for theCUBE's coverage of HPE GreenLake's announcement. Keep it right there.