 From London, England, it's theCUBE. Covering Discover 2016 London. Brought to you by Hewlett Packard Enterprise. Now, here's your host, Dave Vellante and Paul Gillis. Back to the banks of the Thames, sort of, at the London Docks. We're here at HPE Discover at Excel London 2016. This is theCUBE, the worldwide leader in live tech coverage. Dr. Tom Bradichic is here. He's the vice president and general manager of servers and IoT systems for Hewlett Packard Enterprise. Dr. Tom, always a pleasure. Great to see you again, my friend. It's great to be here again. It's great to be at another HPE Discover, a lot of energy, a lot of activity. I think it's the best one yet and I think they just keep getting better. So, I have to say, I'm quite impressed. The first time we met you, you were sort of educating us on the seven principles of IoT. Now, we've got Meg Whitman on stage. We've got a partner ecosystem developing. It's one of the pillars of Hewlett Packard Enterprise. So, congratulations. Give us the big picture of the macro on IoT. Yeah, you bet. That is indeed a great word to choose a pillar. It's become a pillar of our company. You might say, well, that escalated quickly and we need to escalate things quickly. We need to be agile and be first movers and we're first movers in a couple of ways that we'll discuss. But you're right. Meg Whitman's keynote on day two was all about what we call the intelligent edge. In the intelligent edge, it would be effectively a superset of the IoT. The IoT has edges and edges are places. It could be a factory floor. It could be an automobile. It could be a wind farm, a power plant, an oil rig. These are places where the edge is that's not if the data center. That's a good way to look at the edge. But there are other types of edges, campuses and branches. So, we've consolidated this notion of the intelligent edge under a particular group. And it's a very significant part now of the Hewlett Packard Enterprise company. I'm very privileged and happy to be working in that organization, as you pointed out. And what we're doing in this intelligent edge, I like to portion into the three C's. Connectivity, compute, and control. And it's a good way, it's a good template for discussion. It's a good way to see what we're doing. What are we doing with connectivity, for example? Well, we have a world leading wireless connectivity, which is a big part of campus' branches and the IoT. We have the edge line system, which includes connectivity to things through data acquisition technologies. And then of course we have other types of connectivity with respect to the enterprise class IT we have in the data center that can apply to an IoT cloud or an edge cloud, you know, if you will. Or an edge that connects to a cloud, if you will. Now with that said, the second C is called compute. And this is where we're a first mover. Because we're taking unprecedented levels of proven HPE enterprise technology in computing out to the edge. Now the profundity of this lies in the fact that that compute was reserved or pent up, trapped if you will, inside a data center. And all the data had to go there to the compute to be computed. Well, we're reversing it. We're taking that compute capability. And again, we're a leader in compute, that's profound. And we're taking it out to the edge where we can compute at the source of the data capture. And there are many reasons, seven to be exact, why you would want to compute at the edge. One of them is latency, one of is security, one of them is bandwidth. But there's a lot of reasons why you have to in many ways or prefer to compute at the edge and not send all the data back. So that's number two C, compute. So we've got connectivity compute. The third C is control. This is overlooked by many IT companies, but not us, because we're again leading and differentiating in there. We're a first mover in integrating control systems technology, which comes from the operations technology world or the OT world, into and embedded in the same box as IT, meaning the compute and the storage that we talked about. And that control technology physically can reside at the edge in HPE offerings, but also control is built into our universal IoT platform. And the universal IoT platform does have a dimension of controlling devices. Our Aruba platforms have a dimension of controlling devices and managing them with respect to security, with respect to identification and discovery. So under these three Cs, we can partition the different products that we have to give a comprehensive offerings. That's the big picture. So in the third C, you're bringing, for example, factory control technology into your information technology systems. Is that right? I mean, I'm thinking about my sprinkler system has a controller, pretty simple, basic device. That's your irrigation technology with control technology. You could easily bring that into a technology system. There have to be just an enormous number of permutations, however. So how are you parsing through all those opportunities? I spent a lot of my career working with companies, convincing them to do something that it doesn't yet understand, if you will. And I don't mean that in a negative way, just mean simply, because it's new. And by definition, it's a new thing. This whole world of converged edge systems, that's a new product category. Because it's new, it has no history, by definition. But it will indeed disrupt, and I don't mean to overuse this phrase, but digitally disrupt, digital disruption, the control world and the embedded systems world that resides at the edge, at the factory floor, in the power plant, in different places. And we're in the forefront of thinking it as a thought leader, but we're also in the forefront of creating products. So we're not only a first talker and a first thinker, we're a first doer. And with these products. Well, the companies that dominate there, I mean, you're talking about Honeywell, and Rockwell, and Siemens, and companies that have not traditionally been constituencies of HPE or anybody in this industry. So what are you doing with those guys? Yeah, that's a great question. We have to create a new ecosystem. That doesn't exist, you're absolutely right. And that's what being a first mover is, you're first, right? So we created an ecosystem with many of the names that come up when you think about operational technology. We have a great relationship with General Electric, a big name, of course, National Instruments, we've talked about, and also startups in that area. And the idea is to cooperate with them and build a better solution because it's converged. And I might pick up a fourth C, if you will, converge, but that's really not the primary one. Convergence is, let me give you the example of a smartphone. You all have one, in fact, I see them here. In that smartphone is not just a cell phone, but it was converged the digital camera. You don't carry on a separate camera anymore, or you don't have to, is the point. In that is converged a GPS system, you don't have to carry on that separately. Let me go on, a music player, a video player, your address book, and of course, the telephone capability. It got all in one little box, if you will, and that's what makes it so powerful. A flashlight. And the question isn't what's in it, the question is what's not in it, right? There's an app for that, right? So you get my point on convergence of a smartphone. What about convergence of all the disparate systems, data acquisition, control systems, computing, IoT gateways, networking, what about all that? We'll put it all in one box. Are you going to make this or your partner's going to make it? We're not going to, we did. That's the edge line converged edge system proposition. You're absolutely right. The conversation with your partners is, look guys, we're really good at this. That part of it, yeah. You've got the compute part, you're really good at the operation. Let's partner together. We'll bring A, you bring B, we'll go to market together. And please let me elaborate on it because it's so key as you've brought that up, Paul. We're not going to create all the content in the soup. We're going to create some of it. Well, what are we good at? Well, we're good at computing, we're good at systems management, we're good at storage. That's our contribution to the solution or the soup. Other people have stuff like control systems, data acquisition, industrial networks. We're going to get their brands, we're going to get their cooperation inside the box. A perfect proof point is right now that one can purchase, national instruments creates data acquisition and control systems. We have their product that slides right into the HPE edge line 4,000 and edge line 1,000. That's a perfect example. And it's their product. And in fact, their skills are not taken over by us. Their skills are complimentary. It just happens to be in the same location now physically. Okay, so I want to understand differentiation. Why can't Michael Dell watch this video and say, hey, Dr. Tump, thanks for the idea. I'm now going to go to the edge. What's different about HPE? Well, first of all, I'd be somewhat flattered if he watched the video. Let me just get that out of the way. You'd be surprised. It's amazing, too. It's a tech thing, Dave, earlier today. All right, let me answer that. Let me not say it's not possible for a competitor to copy and do what we're doing, because we have smart competitors out there and I want to give all due respect. However, we're a first mover and there is a complication when it comes to how small it is and how compact it is. That's an integration, frankly, an engineering philosophy to get that business value. So I would say other companies could be more challenged. Could they figure it out? Perhaps. Are they a first mover? No, because we have taken that position, right? So we have a first mover advantage and also when you do something new, remember this is new, no history, really, our experience, you get the first learning and you're able then to continue to move forward. So the pace at which I can move forward in my business, talking as a supplier on behalf of our customers, is going to be faster than that which my competitors might copy. That's the philosophy here. Are there other technical advantages that you have? I mean, Aruba, I would think, is an advantage. Oh, let's talk about the Aruba product line. Clearly, some advantages in security. We have a really cool technology called Meridian which is taking location services that have traditionally been on the outside, helping you get an automobile to one place to another. And we're putting them inside, thinking that inside the building. So you can find printers, you can find other people, you can find conference rooms, et cetera. Now, how does that relate to the IoT? Well, those are things connected to the internet of things. That's how you find them, because they're internet connected. So we connect assets, we connect locations, we connect people. Okay, good. Give you the last word on, we're out of time, but the basic mega trends that you see that are tailwinds for Hewlett Packard Enterprise is the space. Yeah, very good. And some of them are quite in our favor. Others that we're jumping on and being agile to learn. The ability to run prognostics predict the future is a big, big trend, not only in the IoT, but because it's in the IoT, we've got other things coming in with data and we can help predict the future of their health, the future of people's buying patterns, the future of the healthcare of people, the auto industry, traffic patterns as well. And predicting the future through prognostics is big and the edge line platform, the edge line converged edge system platform is the first mover in allowing that to happen at the edge. So it's really a great trend and we're looking at that. A second trend is of course the ubiquitous connectivity. Excellent. Okay, I'm going to ask you to stay here. We've got a little tease, we've got a partner coming in, we're going to talk OT a little bit and how we're going to see how this is all coming together, okay? Very good. So can you stay with us? You bet. Good, well keep it right there, and Dr. Tom Bradiches, right back.