 From the CUBE studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is a CUBE conversation. Hi, I'm Stu Miniman and welcome to this Pensando event. We're talking about how Pensando is helping to future-proof your enterprise. Really happy to welcome back to the program. Prem Jain, he is the CEO of Pensando. Prem, thanks so much for joining us. Thank you. All right, so we had the opportunity, Jeff Frick was at the launch when Pensando came out of stealth. Of course, we were all together there, New York City, beautiful views at the Goldman Sachs office in New York City. We had John Chambers there and Tony O'Neary and really explaining to the world what your team is doing and giving that amount to the world we're a little bit more than six months later. So just first gives the update is how's your team been doing? Obviously, when people come out of stealth or have any major things going on, you can't necessarily predict when things like a pandemic or global financial situations are happening, but how's the team doing? And give us the updates since last we spoke. Yeah, sure. Sure, thank you. It was a great launch actually we had and that was in October. Since then, the company had made tremendous progress in all different areas of the company. So let me start with a number of people. We have grown to 250 plus people in the company. We've filled up all our key positions in the company and we are really making very good progress with the whole overall team. Product-wise, we're continuously delivering since October last year. We had made multiple releases for the enterprise customers. We have made multiple releases for the cloud customers. And we also have done work with some other service-wide customers. And the product is really doing very well in these environments. We have partners like you mentioned in the Discover show. HP is going to launch our cards into their server. Server, this is the official launch. We are already shipping to some customers. And this particular thing is with all their servers as well as with a GreenLake product. We continue to work with our cloud partners and they are also, we have done multiple releases to them and they will all go in production in next six months timeframe. We also have a lot of interest. We are seeing it from the service provider customers and we are working with a few of them. I cannot mention the name at this particular point but we will share with you once that information becomes available. And they are very excited about the technologies which we have. And they think this innovation which we're bringing it to the market is really great for the edge market in the cloud as well as edge of the service provider. Our customers- Congratulations Prem on the progress there. Of course, HPE was an investor and expected to be an OEM. So getting that less than a year from when you've come out of stealth to being generally available this month, great milestone there. And as you said, you've already got some early customers using it. Help us understand when the company first launched your team has a very storied pedigree. Everyone in the network industry knows what you've done before. When I was waiting to watch when you were in stealth, it's like, okay, well, I know there's going to be a chip and we'll see how all the software that's happening in the world is going to change that. So very much edge is one of the key use cases that you talk about that you're enabling but help our audience understand a little bit. If I'm an HPE customer and I'm looking at GreenLake, I'm looking at ProLiant, what are those things that I'm doing that says, oh, hey, HPE is now going to offer this to me? Yeah. So I think what the customer is going to get in the very beginning is HPE is going to ship our DSC card into the server. And that's make the server a future proof. And the reason for that is because initially they're just using the networking capabilities but then going forward, they can enable security capabilities. We can do like distributed firewall. They can do distributed load balancing. We can provide the encryptions. We can provide the capability of making it sure the system is highly secure. We have created a air gap between the host and the network itself. They can also making it sure that they can get the visibility on the networking side as well as the application is very close to the application edge. Security is the right place to be close to where the application is running on the server. And then we provide the capability with a policy and service manager so that they can manage life cycle of this particular products into all these servers which is installed as well as making it sure they can enable all the features and capabilities based upon the object model. Yeah, excellent, absolutely. Security needs to be everywhere. So when they think about edge models, how do I get into those devices? So therefore, form factor of a card that fits in seems to be well. We talked about it at the launch. Goldman Sachs was a customer of yours there. Very well known in the enterprise space. Financial services needs to make sure security is there. Needs to understand that. Maybe speak to that enterprise customer and if there's anything specifically with how Goldman sees this rolling that could help illustrate a little bit more of what you're doing. Sure. So we start shipping to Goldman right after the launch as we talked about in the launch itself. They have since then, they are now expanding it and rolling it out more servers and capabilities into their environment, particularly using distributed firewall and other capabilities, which is, they wanted to make sure that it get deployed into their environment. And one of the things which is we are looking at it also is that we want it to be, for every future server is there by, we want to be part of it and then they can enable all these services related to like I talked about before, firewall, load balancing, micro segmentation, other capabilities, containers down the road to make sure that we can provide storage also as a part of it. So we can enable them to deploy those services. And that makes it also in their case of future proof once they deployed, roll out this particular capabilities. At the same times, we have more than 10 to 12 customers which is we are doing a park and these are all very large enterprise customers and the park so far is going very well. And these customers again will deploy different capabilities of the product starting in Q3, Q4 this year. The park is going very well and we are very excited about working with these customers and these are name brand customers. Once you will see it, once we will announce it, you will see it, this is really making a difference in their environment. You talk about the capabilities that customers are using today and then the roadmap of services that they will be able to add on top of that. Obviously, if you're talking about future proof, I shouldn't change the hardware, but how do I think about it from a customer standpoint? Is it similar to kind of a SaaS model as to how things updated? Do I purchase it more as a script than as a feature card? How should I be thinking that from a consumption model or the finance team when you say, oh, there's all these wonderful things, what will that do to my cost over time? No, absolutely. I think it's a very good point. The way the customers should think about it is that they're getting, one is the piece of the hardware which provides these capabilities. And then on top of it, the subscription model, which allows them to pay in three years or if they want to buy it all in once, they can also do that. It's a very cost-effective way of deploying these services. This is a new paradigm. This is a world of distributed services paradigm. And I think this will allow them to scale up, scale down, whatever is needed, because by the time you add this card into a server, you are basically adding these capabilities in every server. And more servers you're going to add, you don't need to worry about, do I need to add this particular capabilities on the servers? You can enable whatever is necessary to enable in that server. And it's a very cost-effective model once you enable these services, encryptions, compressions, firewall, load balancing, all the networking services and storage services. Once you enable all those, it's very cost-justifiable in terms of deploying these capabilities. So, when I think about HPE and their history, you market, very much they offer flexibility. They want things to be really simple when they go out the door. You've both partnered with them, as well as created competing products with HPE in the past. So, it gives a little bit more as to what, you know, Pensando plus HPE will deliver to the marketplace. Yeah, so I think it's a very good partnership so far. I think then we assume that this is going to continuously get better and better. The reason I think is very important because instead of just selling a classic server, HPE has now had the ability to provide the security solutions, networking solutions, as well as storage solutions to their customers. And this one is really providing all these services, simplifying the design of the network and also making it sure that the customers can enable all these capabilities wherever they want. It's a model which is unprecedented in the sense of it's a totally distributed and the customers should be able to enable whatever the service they need there, even if they didn't plan it in the past. Yeah, excellent. We very much these days talk about, you know, how important data is and I need to be able to deliver services, you know, where the data is. So, you know, very much a discussion of the cloud, as well as the edge. So, you know, it sounds like this is extending, you know, the importance of that data and being able to bring those services, you know, very much where the data is being created and serviced in real time. Okay. Okay, so from, you know, the HPE relationship obviously gives you, you know, a good chunk of the enterprise business, but down the road should we be thinking about other partnerships and potentially even other OEM relationship? Yes, I think like I said, we are working with two or three major cloud vendors and they will be rolling it out by the end of this year. And they see themselves, like we said, we are going to democratize the cloud based upon the fact that the only solution which is Amazon has based upon the Nitro, we are now providing the capabilities to all the cloud vendors and they can take this particular technologies and integrate in their environment, which is what we are providing the software stack and they are integrating and they will be going into the productions and providing more capabilities, more features and stuff like that, then what the competition will provide. So this is really an excellent opportunity, both for us as well as for our cloud vendors, partners. Yeah, one of the key things when you hear talk of what AWS is doing with Nitro and that the outpost solution is, they talk about, from a hardware standpoint and a software standpoint, they pull certain things off of the software layer to be able to have the B-Board performing, but also it's both in the cloud and in your location, whether that be an edge data center with outposts, it's the same on both ends. So should I be thinking of this in a similar model that you need to, I guess, where is it that it would be an enterprise only play and what considerations is it between enterprise and cloud when you'd be buying it from multiple vendors if they're enabled by your solution? Absolutely, and I think for the enterprise, the people who want to build their own cloud, I think this has provided a really excellent solution because all the capabilities which we have will provide all the features which you can get from the cloud vendors in that particular sense. And if you are in the cloud, you can provide the scale and capabilities to the cloud vendors. Now, the combination is a very powerful solutions between you can get the same services whether you are in a premise or leveraging the cloud. And that can give also hybrid opportunities. You can run same capabilities, same features in the hybrid cloud model where you're running some on your premises and some running in the cloud itself. Excellent, all right. So, Prem, you've got the solution coming out with HPE. You talked a little bit about some of the other partnerships in the cloud, partners there. Gives a little bit of priorities for the second half of 2020. Yeah, so I think the first half, we have done very well financially also. We are running almost close to 50% ahead of our forecast where we were at this particular point. Going forward, I think we need to make sure that we execute based upon the current roadmap which we have and making it so that we meet the customer's expectations and our partner's expectations. And also, I want to also give you another thing is that which is our plan is basically our second generation innovation also is going to come in very soon. And we will be able to take that into the production also on the first half of next year. So I think overall, for the second half, we have a pretty good opportunity to really capture with our solutions as well as looking forward to win some more design wins both with our current solutions as well as the new solutions which we are going to take it to the next. All right, well, Prem Jean, let me just give you the final word as to, how customers should be thinking about Tensando as they look to future-proof their enterprise. Absolutely, I think based on the history, we are known as an innovation machine in the industry and we continuously to do better and better. So I think the people should think about us is providing really looking at this transition which is happening in the enterprise cloud as well as in the service part of space and we will provide the solution which is really will meet their expectations and the solution is consistent, whether it's for VMs, whether it's for containers, whether it's for bare metal services and providing all these services in a very consistent manner. All right, well, thank you so much for the updates. Congratulations on the continued steps along with HPE and definitely look forward to catching up with you and the team in the future. Thank you very much for giving me this opportunity and definitely we will talk six months from now and again, see how much progress we have made and what I told you and I will compare the notes and say this is what we have done better. All right, stay tuned, we have a lot of interviews with some of the Tensando teams as well as the partnership with HPE. I'm Stu Minoon, check out the cube.net for all of the background on this and thank you for watching.