 Live from San Diego, California, it's theCUBE. Covering Cisco Live US 2019. Brought to you by Cisco and its ecosystem partners. Welcome back to theCUBE's coverage of day two of Cisco Live from San Diego. I'm Lisa Martin with Stu Miniman and Stu and I are pleased to welcome to theCUBE Rose Schuller, the corporate vice president of the Data Center Sales at Intel. Rose, welcome to theCUBE. It's great to meet you guys. Great to have you here too. Thank you for joining us on the very popular buzzy DevNet Zone. It's crazy. The vibe here is really, really good. The last couple of years. It's been amazing, amazing. So you've been at Intel for... 30 years. Quite a long time, 30 years also since Cisco started doing a customer partner event. Lots happened in 30 years. They'd love to understand your role at Intel and also as we're here talking about all of these waves of innovation from 5G and Wi-Fi 6 to GPUs everywhere, to bubble, edge. What are some of the things that you're hearing from customers when it comes to modernizing their data centers? That's a great question in terms of modernization of infrastructure. And there's some really interesting trends that I think are occurring. And I think the one that's getting a lot of us is really edge computing. And what we're finding is, depending on the use case, it can be an enterprise application where you're trying to get localization of your data. It could be an IoT application where it's really critical for latency or bandwidth to keep computing data close to the thing, if you will. Or it could be mobile edge computing where you want to do something like analytics and AI on a video stream before you tax the bandwidth of the cellular infrastructure with that data stream. So across the board, I think edge is super exciting. And you can't talk about edge with, like I said, talking about artificial intelligence. Another big trend, whether it's running native, running with an accelerator, an FPGA. I think we're seeing a myriad of use cases in that space. Yeah, I'd love to if we could, you know, dig in a little bit to the edge piece because you're right, it's super exciting there. It's got to be some different requirements for what's happening at the edge as opposed to what's happening at the hyperscales of the service providers or the traditional enterprise. So we've always seen over the years, you know, Intel will bake things into the chip, they'll do their magic to make sure it's there. What sort of things, what are the requirements you're hearing from customers that are help driving what the next innovations will come from Intel at the edge? Yeah, so let me break it into a couple of domains. We'll talk first about the technology and then we'll talk about the go to market. Is that okay? Perfect. From a technology perspective, you've got to look at the environment of which you're deploying the edge. So if you're in the enterprise, your IO is pretty traditional. You're going to use ethernet and that sort of thing. You move over into the cellular space, mobile edge computing, you have, you know, different backhaul technologies that are leveraged. But what gets super interesting is when you go to IoT and when you're in IoT, there's a tremendous amount of fragmentation. The IO fragmentation, the protocol fragmentation is pretty pervasive. So one of the big challenges is how do you standardize and really open up the development of those protocols to allow and what I like to say is take frictionless data. You don't want any impediments to the data getting to the compute where at the compute, you can run your analytics and really start to take data and transition it to business intelligence. So fragmentation is really an interesting problem statement from a technology perspective. And there are some interesting concepts around how do you use 5G because of the variability and the bandwidth and the different lanes and protocols and SLAs that exist in that multi-lane highway, if you will, of 5G. I think it presents some interesting technology options to master that fragmentation. From a go-to-market perspective, you can see a number of situations where we would call them snowflake implementations, you'd build them once and you'd sell them once. We had people that were very excited about the number of proof of concepts they were doing. Hey, we just implemented and deployed our 150th or 200th proof of concept. And then when you'd get them at dinner at night, they'd say, I'd say, how much money are you making? Yeah, it's not really revenue generating yet. So we found that really pulling together solutioning with our ecosystem partners, and Cisco is a critical partner in this space, we've been able to create solutions that we co-market and co-sell that allow for scale. So we put a program in place and we're starting to see some really interesting results from that perspective. So let's talk about 5G, one of the things that Chuck Robbins was talking about yesterday was this expansion and 5G, a lot of opportunities, but you're saying there's also, that brings challenges to customer environment. How are Intel and Cisco going to help customers start to unlock the value of 5G once that expansion becomes a reality? Yeah, I think that's a great question and we have to look at how we align around standards. How do we align around really creating the initial use cases? I think that's what everybody's big question is, right? What's the $64,000 question with 5G? It's what are our initial use cases beyond LTE offload? Okay, so we have a use case around LTE offload, but one of the areas that we see a lot of excitement around, and I mentioned it earlier, is video. So how can we partner with Cisco? Look at what that implementation looks like, not only on a street lamp, but also in a digital sign that might be now an interesting Trojan horse, if you will, for a small cell, and what's then that back end implementation look like? And once we understand either the video use case or the public safety and security use case, how do we then create those solutions to really bring the technology to market? And I think that's an excellent opportunity for Intel and Cisco to work together on. All right, Rose, let's bring it into your core, the data center group. Sure, let's talk about data center. DevNet Zone's been really buzzing the whole time, but I tell ya, the takeover this morning on ACI, really that core networking group is overwhelming. They practically had people on our set here because they were all coming to get inside it here. So what's the latest? Any new announcements in the last couple months or updates? So like I've said, I've been at Intel 30 years and I've been to a lot of launch events, but at the beginning of April, we had our first data-centric launch. We had seven different product launches. It ranged from the edge to the network, to cloud and multi-cloud, and covered compute to storage and memory to connectivity like Ethernet. And it was the most pervasive, exciting launch we've done at least in my 30 years, especially on the data center side. And like I said, we were able to show how the platform ingredients and the center point of that was obviously Intel's second generation of Xeon scalable architecture. That is the quarter stone, supplementing it with the how we process data on that platform, how do we move data with some of our new Ethernet technologies, how do we store data with our Intel data center, obtain persisted memory, was really kind of an end-to-end exciting, exciting launch event. We had 95 world records that we broke. Yeah, it was really, it was an exciting day, very exciting day. And again, move, process, store, talking about from a value proposition for our end customers. How do you really propel insights? Simply said, how do you use workload-specific capabilities to create acceleration of business intelligence? And we had announcements around instruction sets specifically in the CPU for artificial intelligence. As an example, with 14x improvement over a standard CPU by using that instruction, we had how do you create business resiliency with hardware security features that we're integrating? And really, how do you get acceleration of new services around some technologies around hardware and software, combination of the orchestration of those two? So some really great, great announcements. It was fun. To say it was meaty, it sounds like a massive understatement, but tell us a little bit about how customers are reacting. Because one of the stats Chuck Robbins also talked about yesterday was that less than 1% of data, organizations are getting value out of less than 1% of it. So this data-centric launch, super meaty, how is that going to position Intel in your partner ecosystem to help your customers start turning that dial up so that they're actually getting more value out of that data that they know is gold, but it's dark. Yeah, no, I think that's an excellent question. And you can look at IoT use cases like we talked about. And in an IoT use case, it's end to end. You have to compute at the edge and the network and in the multi-cloud. You have to move the data, whether it be wireless or wireless, so I think that's a pretty standard answer and approach to that question. But when we also look at trends that we're seeing in the market, and we see things like how much video content is really becoming pervasive, and the data challenges that that creates. And you look at technologies like Intel Optane Data Center Persistent Memory, and you have a new technology that solves a lot of problems around capacity issues. Capacity in an affordable price point. You have a technology that solves problems around persistence. How do I minimize my downtime from minutes to seconds? And what does that mean in terms of value? So we can sit here and Intel is really good about talking about features and new instruction sets, but at the end of the day, it comes down to how do I make more money, how do I save more money, and offer new services that are specific that my customers are asking for on a real-time basis. And I think the portfolio of that launch really kind of solidified that value proposition. Yeah, Rose, I was living on the vendor side when Cisco launched UCS. There were many in the marketplace that said, why is Cisco getting into this business? Compute's kind of played out. It's, they're all pretty much the same. Intel's dominant in that position, and just choose your favorite flavor and it's there. I think we've looked at where we are today. There's a lot going on in the compute space. Yeah. Cisco, the rest of your partners and the like, it's got to be a pretty exciting time still to be working in this, and you've seen some of those ebbs and flows over the years. I have, and I think I should start by wishing them the 10-year anniversary. I think it's the 10-year anniversary of UCS. But what's fascinating is the evolution that compute has gone through. I think when we started down the journey together with Cisco on UCS, it was I'm going to make servers, and that's the kind of the playing field for the technology. But when you think about the evolution of storage and software-defined storage, and you think about the evolution of networking, and the transition to network function virtualization, you now have a common platform that can host a myriad of different applications. So to answer your question, the evolution went from I'm going to build a server, and I think their initial position was really strong in blades, which leverages a lot of their existing relationships and customer relationships, and has really grown to now I have a compute platform for server storage network, I have the ability to play in multiple spaces, leverage my channel relationships. So I think the transformation has been amazing, and then when you think about how do I take those assets and leverage them and bring them to the edge that's evolving, nothing but opportunity for both Intel and Cisco. So here we are in the middle of Cisco's fourth quarter, fiscal 19, in a very strong FY18, the quarterly Q3 results that they released just last month, really good, strong growth across infrastructure platforms, applications, security. As we look at this continuing partnership with Cisco and Intel, what are you excited about with all the momentum that you clearly talked about with Intel and Cisco going into Cisco's fiscal year 2020? Well, I think we both have an awesome opportunity. We have just launched, as I said, the Intel second generation Xeon scalable processors. We are very well aligned with Cisco on that technology. So what do we need to do? We have that, we have obtained data center persistent memory, so we have a great set of ingredients, not to mention Ethernet and SSDs, where our job in 2020, their fiscal year 2020, is to really drive adoption, work together on co-marketing, work together on co-selling. And since we have such a collective, strong value proposition, I think there's a tremendous opportunity in refresh, new customer accounts, et cetera, to really drive mutual growth, which is the foundation of the best types of relationships when we're growing together. Awesome, well, Rose, it's been a pleasure to have you on the program this afternoon. Your energy and your excitement after being at Intel for 30 years is remarkable. Still there, still there, it's great company. It's contagious, so thank you for sharing that with us today. Thank you so much for the time. Our pleasure. For Stu Miniman, I'm Lisa Martin. You're watching theCUBE Live from Cisco Live in San Diego. Thanks for watching.