 From London, England, extracting the signal from the noise. It's theCUBE, Covered, 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.com, HPE Enterprise, HPE Discover, here in London. This is theCUBE, our flagship program. We go out to the events and extract the signal noise. I'm John Furrier, the founder of SiliconANGLE. Join my co-host Dave Vellante, co-founder wikibond.com. Our next guest is Dominic Orr, president of Aruba, an HPE company. Still kind of separate, but you know, having all the wireless and doing all the networking stuff, been a big success. Congratulations, welcome back to theCUBE. Thank you, it's been a pleasure. Great to see you, wireless. As we were just talking before, we came on. It's finally hit its groove. Everyone who's a millennial, anyone who's a native on the internet knows Wi-Fi is the number one, most important thing. The show here, your power in the Wi-Fi here. You guys have been very, very successful in the wireless ethernet game, Wi-Fi. What is the new thing happening now? Because Wi-Fi has been established as a standard in everyone's mind, no matter whether a young kid with their Instagram to large stadium, like Levi Stadium, Wi-Fi is critical infrastructure. It's a user experience. What's the success formula and how does that translate to the future? So I think when we first started in the business 12 years ago, Wi-Fi really was used as an ethernet port extender over the air. So it is sort of like a fries on the burger. I think the fundamental shift since the introduction of the iPad and all the Android devices is the Happy Meal formula switch shifted. Now Wi-Fi is the burger and ethernet is the fries to support the infrastructure. And a fundamental difference between the two design is that now we're all about high density, we're all about roaming, and we're all about supporting multi-media traffic as compared to when we first started where the traditional kind of ethernet extender traffic is over to the laptop. That's a big difference. As more and more digital transformation happens, one of the big themes for HP's entire four pillars of transformation, rich media is key. And you're going to see more and more on wireless LTE bandwidth. I mean, our bills go off, you know, every half a month, you reach 100% of your LTE. My kids get on, I turn the data plans off. Again, it's shifting. The consumption is just rapidly accelerating on Wi-Fi. So the demand for more over the air interface is significant, but yeah, there's physics. You can't change the laws of physics. You can't impose software, which you guys have done. Take us through the magic formula, because you're powering at Levi's Stadium, that's one of the best Wi-Fi deployments in the world, to hundreds of thousands of people. Yeah, so I think you are so right about the law of physics and to attack that, there's only two way. You can make the cell smaller so that you have less devices, less number of devices to share. But to an extent, you can only make the cells so small before the infrastructure element interfere with one another, and then you reach the limit of physics. So the second area, once you make the cell size smaller, is to make sure you do a couple of things about splicing up the spectrum. We call spectrum low balancing to kind of let it agile to go between the different bands of spectrum. Is that like frequency hopping? I would say not hopping, but- For spectrum shifts. Yeah, so basically spectrum low balancing. The idea there is that when you get to the signals to be too close, you put them in different frequencies so you can avoid the traffic from the same lane. You can start doing low balancing as to having recruitment of cells that are far away, strengthening the radiation power to let it pick up some of the traffic. But finally, I think a technology that's going to be very prevalent in the wireless world is the deep packet inspection to make sure the access point be aware of what traffic they're carrying and have the ability to throttle traffic that are not real-time sensitive. For example, you look like you're listening to me about how do I know- I'm not tweeting. That in your pocket, that's right. You have an icon on it, you know, traffic back on your pocket, right? Multitasking. Exactly, so- Low balancing, the tweets. Your Fitbit might be, brought this in your jacket, maybe Wi-Fi power, you know, who knows. So I need to be able to suppress those non-time critical- It's differentiated services. You've got to understand, you have to understand the different network access and the traffic, balancing, spectrum. Yeah, and also the concept of a VIP, right? There are people that you care more about to have a good experience. I always say that- Or content, live video. Might take a priority over, say, a text message. Exactly, like the stadium traffic as you mentioned, now the modern day stadium are all tuned for live replay from every, from the angle of every seat, right? And those are the kind of- So this is a metadata exploitation that you're doing, yes? Yes, absolutely, because you have to keep track of even encrypted data about what is time sensitive and what is kind of bulk traffic. So there's some CPU intensive stuff as well. You're using CPU to also manage that, it sounds like? Yeah, I think part of it is CPU, part of it is I think over time, particularly with, you know, critical mass, like Aruba is now part of Hewlett Packard Enterprise, we probably have the capability of building the hardware through the A6 and in the controllers and so on, that be able to do a lot of real-time assist processes. So I just checked on, tweeted, multi-task you, but I had to look away as I couldn't listen. 68,500 to seat capacity at Levi's Stadium in San Francisco will be holding the NFL Super Bowl 50 this year, and that's a big number. There yet, you guys are powering instant replays from every single camera angle to every single seat in less than six seconds, which is quite an accomplishment. Yes, in fact- That's a pretty big deal. We actually designed it not only for filling every seat, but assuming there will be standing room attendance so that it is really significantly over-designed using Microsoft technique that when you have a capacity field stadium like that, you basically leverage the physics of using the audience body to attenuate the propagation. So I got to ask you the question. First of all, it's phenomenal to have you on theCUBE. I love to talk about spectrum, software, how you guys managing them, and the frequencies, two different nuances for the folks that don't know wireless. There's some physics involved in spectrum, and then there's also frequencies, and there's a whole nuance. We could do a whole segment just on that, but there's also the bigger picture. When you look at the wireless, say I'm a buyer. Okay, a number of CPEs, access points, the normal stuff, the hardware, you add it up, not that big of a number, maybe a million, a couple million dollars here and there, but for a large enterprise, that's not a lot of money on the ticket, but the value is the number one thing, people value. So it's the most valuable asset to the user, yet it's not necessarily the highest ticket price. So from a sales perspective, so that begs the question, if it's such a strategic, valuable product, how does that translate in? Because you are the access point, the first mile in for the customer, also last mile on the other side. That's a real strategic asset when you think about things like SDN, and some of the things you mentioned about deep packet inspection, that kind of intelligence could provide a lot of value for deeper in the infrastructure, storage, application developers. Can you take us through your vision on how you go from the edge and how it gets the core of the network? That's very, very good point, John. I think there's two perspective from there. One is we spend the last five, 10 minutes on basically expanding on how to build out the kind of a stable layer of air on top of the Y infrastructure. The exciting thing and also the recurring revenue aspect of this is on top of the stable air how do you build on security and how do you build on all the smart interfaces so that people can use the air interactively for kind of customer engagement, mobile engagement, and also use it for analytics to run the business and so on. So it's not the hardware? No, it's not hardware. It's the interaction, it's engagement data. Yes, yes, and so there's a lot of recurring revenue on the software aspect. If you are careful to design the whole system, and that is really what differentiates the enterprise mobility solution as compared to just a consumer grade wireless access point, right? Which is just speeds and feeds, throughput, number of devices you can support simultaneously. Here you're talking about differentiates of saying, oh, it's a user who's a consumer and enterprise at the same time. Exactly, and also if you talk about a stadium like that, you're talking about a system of 1,500, 2,000 access points as a whole and look at it as the traffic on top of this system and the systemic aspect is where a lot of the recurring revenue comes from in sort of the single box. Another aspect which actually partially drove the HPE of Rubber coming together is that if you look into a lot of the projects you mentioned, the pure wireless component from a capital cost installation perspective is probably about 30% of the cost and you have to typically overhaul the wiring infrastructure and also there's a lot of professional services in designing and implementing. So now as part of Hewlett Packard Enterprise, we pretty much have the ability to capture the whole dollar as compared with a standalone Rubber we were capturing about 30, 35% of it. That's end-to-end solution. So Dominic, I wonder if we could talk about your business that you're managing now at HP, the entire networking business. The eye-popping number was 43% year-over-year growth for the business, of course that included Aruba. But even if you take out Aruba, it was high single digits is what HPE said. So talk about that business. Now the non-Aruba piece of the business has been up some quarters, down some quarters. Talk about that business and the growth strategy. Sure, and there's really three aspects in that business. The first is the campus access, the traditional wiring closet. As you know that that has been a relatively stable market for a while. And ironically because of the shift of network design for mobile first, wireless first, there's a lot of attention to rebuild out and refresh the wiring closet to support the multi-gigabit wireless supported by 11AC Wave 1, Wave 2 products. And that is driving, we believe in the next two, three years, a major campus refresh where wiring closet will become thinner, faster, and smarter. And that's a major cycle. For example, HPE has recently, my organization, introduced the smart rate set of features on new switches to auto-sense whether you really need the multi-gigabit burst for your wireless traffic to back-hold it. And now over twisted pair, you know, Cat5 cable that you can actually back-hold multi-gig traffic. That's almost unthinkable in a few years ago. The second piece of the business is data center moving from the traditional kind of big iron connecting the server into inside the rack, so called converge system or hyperconverged system area where HPE has been leading in the whole open-switch area using kind of open-source switching software to allow the bright box deployment. And thirdly is the area of software-defined network. Obviously both in the data center because of VM mobility and the access of the network because of the massive internet of things and mobile user engagement and so on. The network and applications start interacting heavily and that is the layer of software that is powered by software-defined architecture. I know we were tight on time but I have one final question. I was, Dave and I were in our production meeting going through the list, you know, we'd go and Dominic, we'd go, oh yeah, we had a great last year, great interview, so much to talk about. But there's one thing I wanted to bring up because I wanted to get your opinion on this or thoughts, because I thought of you and instantly when we were talking about internet of things. The CPE and wireless back in the day, the truck roll costs. You remember those days, right? The cost of actually deploying any kind of wireless or fixed wireless solution was pretty expensive. Internet of things is hyped up right now very similar to the early days of Wi-Fi and Metro wireless. Similar dynamic, really simple value to understand, edge of the network, devices in the farm, the windmills, but you still need to have battery and a network connection. So costs might become an issue. So I wanted to get your thoughts on internet of things and the future of internet of things and what are the critical gates we have to go through? Is it still a CPE-like device? Is it still too costly? Will it get lower? What's your thoughts? Observation is you're hitting on one key issues right there about battery, right? So things will no longer be a thing when the battery runs out. So we are now seeing a trend of low energy Bluetooth of BLE being kind of the increasingly the standard of connectivity. In fact, you will see a set of gateways that will be linking both the proprietary protocol and the BLE back into a corporate Wi-Fi infrastructure where manageability and security is going to be key. In our future session, I anticipate that you will increasingly talk about IoT but not just from the point of view of connectivity but really from the point of view of manageability and security. Those, I guarantee you will be the two dominating subjects for IoT. Dominic, thank you so much for coming on theCUBE. I know you got a hard stop. The president of Aruba and HPE company, again, they're Aruba is the wireless. They are the networking stuff. Great leadership, congratulations. Great success for HPE, great M&A action that they've had here. This is theCUBE bringing you all the signal from the noise, separating it all out here on theCUBE here at HPE Discover in London. We'll be right back with more after this short break. Thank you.