 from London, England, extracting the signal from the noise. It's theCUBE, Cover, Discover 2015. Brought to you by Hewlett Packard Enterprise. Now your hosts, John Furrier and Dave Vellante. Okay, welcome back everyone. We are here live in London for HP Enterprise, now called HPE, HPE Discover 2015. The first official discover as part of the new entity, standalone HPE Enterprise. This is theCUBE, our flagship program. We go out to the events, extract the signal from the noise. I'm John Furrier with Dave Vellante, my co-host, Antonio Neary, executive vice president, general manager of the EG Enterprise Group at HPE. Great to see you. I know you're super busy and you always come by to come on theCUBE and I really appreciate it. Dave and I are always looking forward to this talk. Great to see you. I love coming here. We're like, just following you along and just watching you do such great things over the years. We knew you were wet. Before you were a movie star. Now you're a movie star on the stage. Congratulations. Nobody saw that, only us. That was in the vault, sorry. Congratulations on the keynotes. Great, and the performance. Great stuff. Give us the quick highlights on EG performance. Certainly a fresh perspective. I mean, you were operating as a single entity prior to the official date November 1st. So, but now people are jazzed up. They're motivated. I hear words like, I want to win. We're going to be competitive. You got great products. Catch all summary real quick. I mean, we're going through a very exciting time. Obviously launching a new company a month or so ago now and be able to spend just out to the gate this amount of time with our customers is kind of unique. As you said, you know, the customers are very, very excited. We launched the new company here, our new brand, our values. But most important, we want them to our strategy. The separation give us purpose and focus and the customers are very impressed about our focus, our innovation roadmap, and how we think about the future. But the enterprise group is at the core of the Hewlett-Packard Enterprise, is the growth engine, is the innovation engine. And if you look at the results of 2015, we actually had a very strong performance. We grew almost 9% last quarter in constant currency. Every aspect of our business is growing. And we have the best product roadmap ever that we introduced in the last four or five years. 14% operating profit, which is five points above the target for the company, which I'm saying is they're going to do better than that, but anyway. You can't say that, but it sounds like a sandbag in situating things. It's good to say expectations that you can beat. It's good to have a profit engine there again. We feel good. Actually, our employees have never been this confident in the sense that they can explain our strategy, our four transformation areas are resonating very well. You think about the study that the industry analysts do, what is GAR and IDC, they have us leading in most of the categories. And I think over the next couple of years, we're going to have a significant opportunity to continue to show. You know, Dave and I, since we've been in the six year doing theCUBE, and it's been really fun to watch. And we've always, we're like proud of like looking at all the great innovation, but there's always been noise around the HP situation. Now that noise is gone. People feel like the shackles are off. But the bets that were being made years ago in 2010, 2011 hyper-converged was in term that was coined. The ESS and the group you were involved in, the chip work, the Gen 8, the moonshot, all those bets are paying off now. So congratulations to the team. Now it's going to be showcased as that successes. So I got to ask you, what's the next bet? We hear composable, you talk about IoT. Infrastructure is code. What's the next bet? What foundation, what are you laying down the next curve of growth? Well, as we laid out here and before, right, is to help customers to the journey to the new style of business and be able to deliver against these four transformation areas. That's our bet. That's the core of our strategy. And the way we do that is to help customers define their roadmap. So when I talked yesterday, right, I think about the hybrid world, how we help them define the right mix, how we help them power the right mix, and how we help them optimize the right mix and use the power of the one Hewlett Packard Enterprise against those objectives. And I think, you know, the way we are integrating our hardware and our products and services, our software, now it's becoming clear to us that we have a great opportunity against those bets. But innovation is live and well in this company because to your point, when I spoke to you in 2011, 2012, we made a commitment and we deliver against those commitments. You need a waiver. Well, I think too, the synergy is interesting. We were talking off camera. You said I was skeptical. I guess so. I guess that's fair. But what really impresses me is you leapfrog. That's the key is you've shown innovation there. Now it's not shipping yet, so we'll see. But- It's shipping in the first quarter. But very soon. First quarter? Yeah, in the beginning of the 2000s. It's trickling out bits and pieces of things we've heard about the machine and the architecture is now there. So you have today product that is different in the marketplace that we know you can ship and you have legs and that. So talk about that a little bit. What synergy means to your business? Yeah, listen, it's all about speed and agility. It's all about time to value. And when we think about a workload-centric approach and the challenge that the customer have today, is how to deliver services quickly. And so obviously customers have mixed workloads, and the cloud has opened the doors to many people, to do things differently. And we felt that many customers want to have the control because of the data, security, and so forth. And we felt that there was a better way to implement cloud on premise, still in a hybrid environment with a platform that gives you that flexibility. Basically a fluid pool of resources that a developer or a VP of operation can compose exactly to the need of the application and then reduce waste, reduce over provisioning, lower capex, and improve utilization. And by the way, maintain it in a simple way. Yeah, so it's not speeds and feeds. Absolutely not. It's architectural. It's architectural. And everybody has their own approach. VC has its approach, that's cool. Oracle has its approach. You came up with something new. But remember, we were the first to come with converging infrastructure, right? Right, and you guys sort of coined the term. Yep, yes. So, okay, but I... And we learned a ton of it. But one could have expected sort of incremental turn of the crank, that's not what this is. Correct. Explain that. This is total, you know, live route, total change in the way we think about it. So obviously, converging infrastructure was nothing more than putting together compute storage and networking in a pre-packaged way, optimized for specific workloads like BDI, and that deliver evolutionary, and that deliver business results. But when we thought about the challenge that our customers are facing today is how we bridge the old to the new, how I modernize my current infrastructure, how I deploy an infrastructure that's cloud ready, how I make the life of developers much easier, and ultimately, really make a radical step forward in the way infrastructure should be deployed, provisioned, and managed. And that's the principle of a healer package. Well, so if I may, so we interviewed Steve Mills when he announced Pure, and he said, look, this is evolutionary. You're not saying that. No, this is totally revolutionary. Think about it, you know, you have traditional IT, you have converge, then you have hike for converge for a specific set of use cases. We think at the end of the day, the enterprise needs to become composable, because ultimately all the CIOs have to become service brokers. And at the end of the day, you have to abstract that complexity from the service broker, and be able to give them a control point where they can compose their infrastructure to their specific needs. And that's totally a different way to think about infrastructure. I think the nuance here, I want to just make sure I get that out there and it's nuanced out, is that converge infrastructure doesn't go away in this consumption of the customer base. It has this place. So it's revolutionary, but it's not replacing see a converge infrastructure. They can still buy converge infrastructure solutions. It's just that the consumption of the cloud and how the apps are driving it, that market. But we think over time, with the innovation that we bring to the market after HP synergy, over time, people will adopt more of this type of architecture for their infrastructure. And eventually- But customers have a great choice. It's a road to the cloud. I mean, it's really cloud-native. And- Well, we can support physical, virtualized and containerized workloads in that infrastructure. Full integrated life cycle management, full integrated provisioning, right? And then with our cloud service broker, announced what we made yesterday, now you have a complete, you know, pane of glass that you can control everything. So a customer can choose their, how much they take a bite out of the apple of the new synergy. They can go all in. It scales for thousands and thousands and thousands. So they don't have to over commit. There's not a risk for that. You can start, you know, with a chassis and then you go from there. But the good news is, what you're doing is like putting more resources available without being constrained by, you know, units. He said, I'm going to put this much compute, this much storage, this much fabric, and then you can compose it as you need. So you can increase capacity as you go. They'll get addicted to it. They'll want more. Give us the update on Apollo. Last couple of HP discoverers, we've done some unveilings. David Scott would do some unveilings and take over the world. You did the Apollo unveiling. Give us the update on Apollo. Apollo has been a huge success. If you think about, you know, big data analytics, right? So hyperscale workloads. Apollo was designed to support both needs. And the incredible scalability that Apollo brings with the density, the power efficiency and the ability to do this in a very efficient way has been a huge success. In fact, we are the leader in high performance computing in the market. If you think about supercomputer, we actually have 165 of the top 500 supercomputers around the globe. We are the market leader in the mid-market, in the mixed segment of the high performance computing. And we've seen incredible growth. And customers love the flexibility that Apollo brings because they actually can customize it to the specific needs. Some customers want power, different type of power supplies. Some customers want different type of cabling. So we can give them all the flexibility to their specific data center needs. So Apollo has been a huge success. And we are excited about what's coming next. So I know you talk about the transformation areas that's solution-driven. We're seeing that show is different this year. It's not by divisions. You can see the org chart by looking at the floor, but not here. I mean, you can see it's solution-based. Well, Robert announced edge line today for me. It's my soft for God. But there's some technology vectors, right? That are exciting. And that are also hyped up. IoT is one of them. It's a super growth area. It's a no-brainer. People obviously see the path. Some technologies are rolling out, but there's some stuff people can do today. What's the vision for EG, Enterprise Group, HPE, for IoT? How are you engaging with customers? How on the consumption side? And what technologies are you rolling out? Well, we made an announcement today, but let me start by stepping back and say, you know, IoT, depending on how you define the market, is a $100 billion market, right? Obviously, the sensor part of this is very easy. It's not that hard. But the ability to process that data in real time is the bigger challenge. IoT for me is a big data problem, right? And so what we announced today here at HPE Discover was the introduction of our edge line platform. And basically, you know, we introduced two new products that are computing at the edge in a partnership actually with Intel. So we have a great partnership with Intel. And we're going to use our Moonshot platform to continue to add new compute platforms for different type of use cases. You know, ruggedized, different type of verticals as we go forward. And, but also with the acquisition of Aruba actually gives us a complete solution, be able to use, you know, beacons to understand where the data sits, and then be able to process that data at the edge so you can make real time decisions and only move the data that you need in a centralized way. As we deploy the machine and all the aspects of innovation, then you can start process bigger amount of data. And that's how the whole roadmap comes together, right? Aruba's a home run there with that acquisition. I mean, the uprange, upsell technology you have there way beyond. I want to encourage you to go to the glasshouse. It's really, really amazing. It's a serious case, right? All right, so let's talk about the Moonshot, because when we first saw that box, we're like that, I'm like, Dave, that's a God box. And we're like, eyes popping out. You know, our big data addiction that we have. We love data, we love big data. But one thing you nailed was the density. Yeah. And so that's an IoT problem opportunity. You know, connecting to the internet and density and power. Right, right. So how are you guys going to resolve that? But obviously wireless could be one. But is that market developing? Are you going to go for the low-hanging fruit? Do you see manufacturing in machines? Yeah, so we actually focus on several verticals. Healthcare is one of them. Manufacturing the other one. Oil and gas is the other one. Interesting enough, there are always new opportunities. But I was just talking to one of our great customers which is a reference, the Sauber Formula One team, which uses our moonshot to analyze wind tunnel data. And think about, you know, when you have a Formula One driver going around the circuit, the amount of data they collect from their cars. In general speaking, they have between 600 and 1000 sensors. They are collecting data real time, going back into the pits. The moonshot is sitting there, processing their data real time, and giving information to the team directors and to the drivers about how they can optimize the performance on the circuit. In real time. Real time. That's kind of a unique case. But think about, you know, oil and gas. You know, to drill a new hole, it takes millions of dollars, right? And so you want to make sure you drill the right hole. You don't want to miss that hole. It's hard to put a data center in that hole too. Yeah, exactly. So how you bring a data center power to process that amount of data from sensors that are collecting that amount of data as they drill the hole. So they make sure they steer that drill in the right direction. So healthcare is another example. We had a great customer example yesterday with Philips Healthcare, where we are helping them define the right mix, process the right amount of data to improve the life of the people, which means basically, you know, completing medicines faster, right? Can we get your take on what's going on in the industry? I mean, the titans of business are making moves. You got Dell by an EMC, got IBM by on a weather company, totally different directions. You know, it remains to be seen what Cisco's going to do. Oracle's obviously pretty clear what their strategy is. Lenovo maybe needs some more time to bake out. HPE now, it's a different company, new balance sheet, excited about that. What's your take on what's going on in the industry? I mean, Meg and I, we're talking about this today with our customers, right? It's fascinating to see kind of similar companies, right? If you think about the potential combination of Dell EMC with Hewlett-Packard Enterprise on the other side, two very diverse strategies, you know? And Meg was, he had a nice way to say, you know, one of us will be right, right? And we think we're going to be right because we feel, you know, being very focused on what we do, and that's the focus of Hewlett-Packard Enterprise, is being very focused on the enterprise market and being agile and nimble. And if you think about, you know, now Hewlett-Packard Enterprise is a very stable company, right? We separated, we have done this extremely well, seamlessly, with no disruption for our customers. And we have an incredible agenda, and we know exactly what we want to play and have to win, but ultimately help our customers, right? That's what is all about it. And that's why, you know, unlocking the value of the app and the data through the full transformation area, bring that right innovation in an integrated solution between hardware, software and services, is our play. It's a big market. I mean, you know, it's maybe not one or the other, maybe. It's one trillion. It's a strategy. It's one trillion. But you like where you are now. Yes, I am. I will rather be here. You've been with HP for many, many years. We always talk about on the Cube. You've been there from the beginnings, success story. And, you know, when I was there back in the 80s and 90s, it was, you know, the kind of company where it was very engineering focused and had great technology, but they weren't risk takers on being first in market. But when they saw the market, they really go hard and would win. We saw that, they were never in the PC business, became number one. They see the straight and narrow, they go hard. So you guys made a decision on cloud, okay? Because you know what you know, you know what you're good at. Partnering, you sell all the people's software, number one reseller in VM where Red Hat, and among other things, you have Opus Stack, Rooming. So that's the strategy, that's very clear. So congratulations. But one thing that's kind of not clear, I want to get your take on, is the networking. Networking has always been phenomenal at HP, still is. But with Aruba, interesting perspective, they're got a kick-ass solution right in there, like so strategic, it may not be big numbers, revenue-wise, but so much potential with the data, the access, edge devices, mobile. And the core of the network, SDNs kind of like, is it baked? What's your take on all this networking? First of all, I'm super excited to have Aruba as a part of the Hewlett-Packard Enterprise family. Domore and Kirito Mccote and that team are phenomenal. And I think I was right, because I was the proponent of that acquisition, and Meg was super supportive. But the reality, when you look at the networking market, it's roughly $35 billion, making it around it. And half of that market is actually the campus market. And so the campus market, right? So it's $17, $18 billion market that you think about it, right? It's going to go through a massive refresh cycle with 802.11ac. The need to provide security, access to the network, and the ability to leverage these new technologies, right? To provide contextual access to the network. And that's what Aruba does very well, is a software company at the core that has incredible assets like ClearPass, AirCentral, and Meridian, with a big data analytics platform, to be able to optimize that experience in a way that hasn't done before. And we just, we're ranked the number one in the campus market for wire and wireless, which hasn't happened in 25 years. So, what do you think about traditional networking access? What do you think about IoT? That's what Aruba give us, the opportunity to really disrupt that industry and provide a great experience to our customers. It's interesting, it's like you mentioned the groundbreaking move with Synergy. Things have flipped around on networking. The wireless used to be the last stop from the core of the network, now it's driving in. So, you agree that wireless can drive into the core and dictate and connect in that way? Yeah, and I will say, ultimately, listen, you are here, you're connected real time. I don't see any cables connected to you except the power, right? And so, that's how you know, it's enabling workplace productivity. That's our major transformation area number four. How we enable workplace productivity in a secure way, providing that end-to-end experience, which includes the application, the infrastructure, right? And the services around it. And then our data center offering is very strong and we have seen double-digit growth in the last several quarters. So, I think Aruba has given us the opportunity to retool that portfolio in a way that we were not able to do before. Congratulations, great, we love that deal. Now, security you mentioned, and we had Sue on earlier, security is a big data problem too. It's also an opportunity to use the big data and wireless can be a part of that. So, it's all kind of coming together. What's going on with the security group? I mean, what's your vision there? Well, Mike Nefkins today talked about security, right? Listen, we already have 5,000 professionals in many security centers around the globe helping customers protect themselves and recover faster when an intrusion or an event has taken place. Obviously, we use our services portfolio, our partnership with FireEye and others, but as well, our software capability, ArcSight 45, to provide that end-to-end capability. Security is a big problem, right? But to your point, we can use big data analytics to solve security problems. And that's something that we can do because we have both set-up assets. And you got a Composable Infrastructure tab with wireless. To process the data faster. The transfer areas are kind of drilling down. It's great, we're going right down the box here. Final one, help me understand the workplace productivity. Yeah. Because when I think of that, I mean, I love the messaging and all the kind of products, but I have to kind of dig through it. When I think of the workplace, but I think of future of work, which is mostly driven by the narrative around CRM vendors driving, you know, this is the CRM, ERP, but it's different here. It's more apt to own. So what is that pillar? What is that transformation area all about? Can you clarify that? So we want to make sure your employees, your partners, your customers are as productive as they can be. And as you know, the professional and the personal lives are becoming one. And ultimately is an experience you want to provide, so how you provide them the right access to the network, how you provide them the right access to the data through an application, and then how you wrap all the security and the compliance around it. And so with our infrastructure, with Aruba, with our security and our software, we think we can provide a unique end-to-end experience and also help customers develop the applications that are mobile-first, cloud-first. And so like upholsts, a Hewlett-Packard Enterprise upholsts that Robert covered today is an example of how to improve that experience. And obviously, together with Aruba now, we are able to provide that end-to-end experience. And that's a solution. Is that a solution? It's a transformation area. It's pretty much running gradient internally. Yes. Kind of like. So that's why if you walk here in that transformation number four, you actually can see several use cases where we bring the entire solution together. Okay, I got to ask the question near and dear to your heart. The services market explodes under these transformation areas. Each one, it's not a product. That's why I'm trying to get my hands on what's the product. There's no one product that's kind of like an opportunity. It's a solution-driven conversation. Services plays a huge role to bring that solution together, but ultimately need hardware, software, and services to deliver that solution. And that's why HPE is positioned for success. So how's the vibe in the professional services group within HPE and also the partners? Because we had some partners on with the cloud group. They're jazzed about it, but the lines are blurring. A VAB and a VAR and a reseller and a distributor, they're all kind of like. Listen, all the, I mean, the general partners have to transform themselves. That's clear, right? And they're coming to us and help me transform to this new style of IT. And the good news HPE, I made this commitment to our general partners. Whatever we do to enable our field, we're doing the exact same thing to enable the general partners. What is training, certification, access to financial services capabilities, which is very, very important, or actually access into advisory capabilities because not all the partners can make that capital investment. As you know, it's a big capital investment so they can use RTS Consulting to really drive that advisor with their customers, which will undermine our customers. So we consider these a continuous go-to market and we want to make sure they transform themselves as we transform our customers. They have to, right? They have to. They're going to disappear. Right. So I got to ask you the leadership question because you're a great leader and you have the history of HPE. Now the new HPE, a lot of new people coming into the company notice a new executive, new talent, technical talent with the DevOps and you have some new managers. What's the hiring strategy? What's the strategy you're taking to retain key people, get new fresh blood in because the requirements are changing is gaps in talent. Yeah, and I think that's one of the things that will continue to work over time. Meg and I were talking today to our general partners and we were saying training and certification we're not at the top of the agenda four years ago. Training and certification and getting the right talent the right person with the right skillset with the right attitude and the right job at the right time is a priority number one today. So obviously we work on a labor pyramid. We have an incredible engineering talent. We have an incredible go to market but obviously you want to bring new ideas. And one of the things we do also is curate the Silicon Valley. So we have our Pathfinder program. We also brought here some of the companies, startups that we invest. So they get exposed to the customer needs because ultimately we want them to be part of the ecosystem of Hewlett-Packard Enterprise in our solutions, right? You don't need to necessarily go and acquire this company you need to just partner with them. So, and we see now many more people interested to come work for Hewlett-Packard Enterprise because they understand the purpose of the company, they understand the strategy and they understand the viable way. Well this is the clarity, it's cool and relevant. You got Docker here, you got DevOps, you got some technology, transformation areas. That's right, that's right. It's back to the growth engine of HB. So I got to ask you about the STEM and leadership area around, we saw some sites that women technology. What's going on there? We've seen a lot of, we were at the Grace Hopper celebration in Houston this year doing a cube there. 16,000 women and it wasn't just women managers. These are developers, DevOps developers. Hoodie's huge workforce injection of ladies, women, women in tech. Yeah, well we have been very supportive of women in tech, big diversity programs as HB college hiring, right. One of the events I'm very proud to sponsor every year is what we call Code Wars where basically we bring high school kids into the HPE campus and we have this whole day event where we give them a problem for them to code and then they get exposed to our technology, we get exposed to some really cool kids. But the point is HB has a history of being part of the community, right. Making a contribution, global citizenship, diversity. And so, and as you know, our CEO is women and a very successful leader. And so every time we have a discovery event, we have a women in technology event that men host with the women's around here. We had an event yesterday morning, it was very impressive. And so that's our commitment. That's what we do as part of our culture. We'd love to get cover more of that. We'd love, we have a women in tech section that we're doing and it's very important to us too. We're very passionate about that so I just want to make sure you got that out. Very congratulations. Final thoughts on the show? It's been an incredible three days. We are very excited at what's going on on the floor. As I said at the beginning, this is a great time for Hewlett Packard Enterprise. We have made history because separating $120 billion company is not easy, right. We did it in record time, very efficiently, customers see the value of the separation. Our technology, our roadmap, has never been better. We have a clear strategy and we are excited about the opportunity to go compete and win at the marketplace. I also want you to final comment on. It's been finally final. You made me think of a good question. The IT team that made it happen. It's one of the most impressive things that I saw that's kind of, I won't say Barry, but if you know HP, you know they've really, always had a great IT. The Italian team had done a phenomenal job. In fact, yesterday we played a documentary on how we did the separation, right. And showing the faces of planning, the moment of war rooms, the time we launched the separation, it has been an incredible experience. Honestly, it has been a little bit emotional because I have been with the company for 21 years, always on the HP side, and seeing what we can do as a company is kind of unique. So I felt very proud about what our IT team did for us, but I worried that for every customer, every single day. I mean, I felt emotional only. I was there nine years, I felt emotional, but it's the right thing, and you can see the results. So congratulations. Well, thank you. I know it's a success and looking forward to talking to you again. Antonio Neary, executive vice president at HP, enterprise group here at HPE. HP discovers theCUBE. You're right back with more after this short break.