 Welcome back to Las Vegas everybody my name is Dave Vellante I'm here with John Ferrier and we are running SuperCloud 5 which is a cross-continent connection we got content pumping in from HPE Discover in Barcelona. John and I are here in the ground in Las Vegas and and we've got the the crew in Palo Alto Savannah and Lisa doing live live hits is unbelievable. I have had many a reinvent where I've spent the week in whether it was Barcelona or Frankfurt or London at HPE Discover. I'm here with two folks from HPE Brian Falves here he's vice president of North America HPE services sales and Joseph George, Cube alum, global VP of strategic alliances both at HPE so guys we're we're here like I said I've done Barcelona many times during this this year but you guys got a lot going on over there but why are you here? Yeah why are we here it's a it's a common question actually because we we look a little odd out in the show floor we're the only you know company like ourselves among our competition that are actually here exhibiting supporting the show the reason we're here is because our company strategy is the world you know the world will be hybrid and we're delivering the hybrid cloud experience and so it it makes sense to be at AWS to pick up in that hybrid. So if I were AWS yeah right the cloud they say the fullness of time everything's gonna go in the cloud we've heard that many many times if I'm AWS I'm changing my mentality of what the cloud is they've talked a lot this week about we're meeting customers where they are so the definition of cloud is changing and I would be all over guys like you yeah say because you got customers they're loyal they're not moving their data into the cloud so you got to move the cloud to the data and that's what you guys are doing right so what are the conversations like with customers in that regard? Yes it's interesting and you're right it's not a it used to be we talked about this a few weeks ago supercomputing the cloud conversation used to be I've got stuff in this data center we're gonna move it to another data center and partnering with our friends at AWS we're realizing that our customers are telling us that the journey to cloud is an exploration of applications and data and where they need to reside and how quickly we need to respond with outcomes so think about an emergency room all the stuff that's going on there x-rays and you know all sorts of analysis around conditions and symptoms you got to get a response quick so there's not an hour five minutes to even send all that data somewhere else it's got to operate on the edge there are some things you want to keep in your data center because it's IP it's sensitive it's confidential it's competitive advantage for a lot of our customers or in a co-location data center and there's some things absolutely you want to put in the public cloud so if we have a more robust intelligent conversation that says let's look at your applications let's look at your data let's figure out where they need to reside are they going to be mobile after a year do we do things change does it need to go from one public cloud provider to your data center doesn't it go from the edge to your data center doesn't you go from the data center to your public cloud those are all the organic life living life-giving conversations we're having now with customers when it comes to the cloud it's a much more thorough open robust conversation okay so I get the the need for you to partner with AWS I think about snowflake for instance so for years it was kind of one of this these types of relationships because every year AWS was out something that was a snowflake ripoff we separate compute from storage they're still doing it they announced clean rooms we had clean rooms okay yeah we've heard that years ago from snowflake but they partnered together and it makes sense and now they're happy they're not even front of me's they're both making money and I get it because snowflake selling software AWS is selling infrastructure service but you guys are infrastructure companies so explain how that relationship I'll disagree right great so explain how that relates how you make money in that relationship because we're a cloud company we're not an infrastructure company infrastructures absolutely at the core and historically what we've done but our value proposition is cloud there's this kind of false false narrative out there or false decision about you know are you should something be in should use public cloud should use private cloud or on-prem the answer is all of it right it's this idea this notion we have of hybrid by accident versus hybrid by design and what happened is years ago everybody was going to the cloud they all had cloud first strategies we're going to take this to the cloud and then they started doing that activity of moving workloads and data to the cloud or figured out this is hard it's expensive right there's the management of change that goes with it there are certain regulatory reasons of myriad reasons why things would need to stay on-prem and so they ended up building out you know an on-prem infrastructure component build out a cloud component then edge became prolific and so now your cloud is everywhere so it's not you know it's no longer oh I tried to go the cloud and some apps didn't make it it's for my future planning my future growth supporting my business leaders in my company I need to have a multi cloud strategy I need to be hybrid and so that's hybrid by design you need to design for and what each be does especially where you know a lot of customers have multiple public clouds what each be does is consider us the gap fillers right you work with HPE greenly cloud platform you can see all of those clouds we bridge all of those together you can bridge your edge your Colos your own data centers all those devices and even create kind of a true unified you know data fabric right all of those locations can appear as one pool of data this is the new conversation so I'm paying you for that that that that value right that that's that's so you're shifting the way in which you charge or I mean you're still selling underneath the covers you still have storage and compute and everybody sure as everybody you got to have it but snowflake is buying it and renting it if you have it right you do have it you have to have it but but but they don't make they don't make storage for instance you do so but you're also but you're saying but you're selling that value layer on top vendor it's a vendor what we're talking about is our vendors us as vendors when you when you talk to the customers they're like I've got these applications I've got this data that I need to have secured I need to have this kind of response time in outcomes when you have that as your foundation for your discussion it changes it says okay well some things need to live on the edge be born on the edge be operated on outcome based on the edge doesn't go anywhere else some things absolutely can be in a public cloud some things need to stay in my data center in my four walls for this reason security etc when you start having that conversation it opens up so many doors for our customers when they're trying to deal see see patients they're manufacturing products for customers they're trying to do cyber security on financial transactions it's a whole different conversation and but this is the conversation we think our customers actually want and I buy that totally but but if I'm if I'm a customer and I'm gonna leave my data on-prem or at the edge I'm gonna be wanting to pay you guys because you're better at it yeah okay can we quote you can we look at outposts I mean AWS is selling they would love to sell outposts that was an indication and I would say this the the the the time it took to get to outposts where it is today I think was in many ways a failure and it gave it gave you guys it was a tap on the shoulder like hey here we come and then it gave you time I think to create things like GreenLake that didn't you didn't create GreenLake overnight that was a lot of hard work and effort years and years and it was and it was a lot of like okay we're gonna do some services tricks over here and then but now everything you do is GreenLake eyes you got API's and your partnerships are all plugging into those API's so so they would like to sell outposts but frankly you got a better stack yeah I've been you know selling GreenLake you know for almost 10 years here at HPE and you know it used to be flex capacity so it was kind of a consumption model for infrastructure it has evolved and transformed so far beyond that and really what it is now is what customers are coming and literally knocking at our door and saying this is what I need from you is the experience they everybody's accustomed to and and values the tools and the orchestration capabilities of control plane that comes with using public cloud AWS Azure whatever it is right and when they turn and they say okay I'm gonna have like you were talking about I need all this data that's gonna have to stay on-prem or these workloads and apps that stay on-prem they're like okay accept that but geez I want that continuity of that experience the way I derive the way interact with and drive value on public cloud I want that in my on-prem my private cloud I want that from you HPE that's the critical differentiator is that software layer the GreenLake cloud platform that sits over the infrastructure so now you know for since the the day this company was started you know we we put an audio oscillator in a box and brought it over to Disney right and we've been putting stuff in boxes and bring it over to customers for 75 plus years now you do a GreenLake enter into a GreenLake relationship with HPE you get a login right that's your interaction console I can log in I've got a console I have all the orchestration automation and tools that I need I've got identity and access management built in and I'm off to the races and I'm driving value right from that underlying infrastructure at the same speed at which I can drive value from working with imagine the customer's perspective now right it was okay by these systems or in running my data center or work with the a public cloud vendor and put stuff up there I have concerns across the board but now imagine just a layer where you're taking applications data users etc. and putting it into a portal with HPE GreenLake and then determining where these things need to reside at that point in time with the flexibility to manage portability of things over time right it really is us as an industry getting back to listening to what customers are actually saying we talk about all things we are building as a vendor community now it's time for us to stop and listen to what our customers are saying where they say we have privacy concerns we have sensitivity concerns we have security concerns how do we manage across the whole portfolio and I think this is what HPE GreenLake offers and we call that abstraction we call it abstraction layer we call it super cloud that's right that's was was our sort of term to to find that abstraction layer so again I get it and it's a real clear value there we sort of help think through that concept and in a lot of customers were saying we want to pay for that okay so I get that but then why does other than the fact that AWS wants to take your customers why does AWS want to work with you in that regard because they you know look at outpost they understand that the world is hybrid I think I you know some some good friends in the industry who worked at at Amazon for years and the old mantra was get a customer signed up and pull all of their apps and data and workloads you know as quickly as possible I remember those guys they pounded on my head to take and then they burned out and it didn't work well it doesn't work and then they all found out they they kind of experienced their own end of hybrid by accident like oh man this this doesn't work and it became acknowledged that you know the the best customer you know might have 60% of the workloads right and data in AWS and so they that's why they responded with outpost and said we need to have an on-prem option meanwhile Antonio at HPE was preaching already for years the world will be hybrid and today the world is hybrid as we all know and so we've been building the software assets and acquiring the companies and tools we need to deliver cloud experience for your on-prem private cloud that rivals and is has this this continuity with their customers experience with public I mean it's even down to have heard them come in and say look I have these young buck developers when they come in and they're they're delivering their value to my company and they're working in public cloud they understand how to do that I don't want to have to like give have this like reverse compatibility when they turn back to the old infrastructure on-prem I want the same experience I want them to be able to interact with infrastructure that's where that's why AWS is a partner of ours because they're seeing the same things I think five years ago is a different story I think AWS without post as an example realizes there's a need that's out there so this notion is be you know remember AWS is that was a HP Discover in Las Vegas just in June the partnership is growing because they see that that need as well now you guys announced the LLMs as a service at it's government you said you're gonna ship it this year and getting close we got about a month to go and so but you were the only ones to announce that so it as part of GreenLake so that we were a thumbs up on that yeah my question is when you start to think about you know the the cubes research did a gen AI power law and we basically the premise was to get size of model on the vertical axis but but you've got this long tail of industry specificity and domain specificity on the horizontal axis and our premise was you're gonna see a lot more models smaller models along there and a lot of those gonna be on-prem and at the edge are you seeing demand for that are you actually seeing people deploy that what can you give us the update on that yeah I'll start so I'll say that the customers are interested in building a lot of their own LLMs it kind of comes back to IP and data if there's an LLM that a customer generates generally their view is not it's not something that's made for my competitors to use as well it's something for us plus our applications our specific scenarios are slightly different we want some that's very tuned for our company so there's a lot of demand for that we're seeing a lot with you know gen AI all over the place right there's a lot going on chat GPT etc these are all great examples of LLMs that are being developed so there is an appetite for it but again I think that the time that's going by is helping our customer set understand what LLM means to them can they can go and access something that's very public but it could be a wide swath of data some that's applicable some that's not applicable to their their sense or they create their own LLM and they're able to ping from it it's very very specific to what they're looking can you deliver the same level of innovation and LLM optionality that we're seeing in the cloud in your hybrid environments are you going to be able to keep pace and do that yeah absolutely and and I think you know just to you know maybe a point of an extra clarification on our our large language model in the cloud it's really about kind of democratizing access to to AI and making it accessible to customers of all sizes because if you want if you're you know a huge bank in New York and you want to train a large language model you have the resources to come out and buy the best of high-performance computing you know assets and resources stand up and one of your data centers hire a hundred people to go make it all happen right and just you know click your fingers if you're a smaller organization you need to get your model trained up you might start with a you know a public model you're going to add your data to it you need a place to get that training done at speed the speed is in the game in this business you don't have time or the money or the resources to spin this huge thing up what HPE GreenLake for large language model does is provide it's basically it's a it's a multi-tenant cloud it's like a public cloud environment where you can log in put it to use use the infrastructure use the tools use our expertise develop your model and then shut it off you don't have to make the big investment I think it's pretty noble in its approach again in democratizing access to AI and for our customers to compete everybody can have a large language model the differentiator what makes one company better than another is how you train love that your own data we love that announcement we're gonna see GA this year I believe which year TBD we're in FY 24 the reason I inferred calendar say that is because we've seen a high correlation between GA and uptake in this business I'm sorry guys you got to go last yeah I want one last comment on that one thing that was different than kind of everything you would see on clouds there's a super computer back there right this is something that we we have one on for years HPE, Cray, SGI all these capabilities number one on the on the top 500 list there's a super computer back there so when you're in AI running the cloud you're trying to get to the rightest answer fastest super computers help you do that and that's why in the power law you might see some camel humps along that x-axis because super computers of a lot of data all right guys thanks so much for coming on thank you right there from more from super cloud 5 from Las Vegas Dave Vellante John Furrier we'll be right back after this short break