 Okay, we're here live at HP Labs in Palo Alto, California. I'm John Furrier, the founder of SiliconANGLE.tv, and we are here for a special CUBE edition of HP's press conference announcing a revolutionary new innovation with server technology. And this is the CUBE, our flagship telecast, where we go out to the events and go out and capture the stories wherever they may be. And today it's in Palo Alto, California, where we are in building one of Hewlett Packard. And behind me, you can see the offices of Bill Hewlett and Dave Packard, the founders of HP, original condition of the offices. This is where the home of Silicon Valley was born. Hewlett Packard is a great company of historic innovation, and we are pleased to bring you SiliconANGLE.tv, the CUBE's exclusive coverage of the post-event analysis. I'm John Furrier with SiliconANGLE.com, and I'm here with my co-host on the CUBE. I'm Dave Vellante of Wikibon.org, and John is quite a spot that we're in with the 70-style paneling, the open-door policy of HP and its founders. I did a social cam yesterday, Justin.tv's app. You got to go download it if you don't have it yet for the iPhone and Android. Social cam, you can do videos. Dave, we were setting up yesterday, and this is like a sacred area within HP. This is building one on Page Mill Road in Palo Alto and Bill Hewlett and Dave Packard, the founders of Hewlett Packard, known legendary in Silicon Valley for their innovation. Their style of management, and they had an open-door policy, and literally the doors are open, there are doors on there, but you're the only guys who had offices at HP for many, many years, and the offices are in original condition. You can see, it looks like an episode of Mad Men. These were the only doors in the building other than the outside doors. There are no doors in this facility other than these two, and they were always open, right? I mean, you used to work at HP, and the culture is renowned, walking around management by objectives, management by walking around, and of course, this spot used to be basically surrounded by farmland, right? Yeah, a funny story. I posted my social cam on Facebook yesterday, and I had one of my followers on it, friends on Facebook, Jim Long, who was a longtime HP employee. He was actually at Berkeley when they invented UNIX, he was part of that whole crew, and did a social cam on that when the guy who founded C died. Anyway, he commented and said, Billy, Bill Hewlett and Dave Packard were the only guys who had doors in their offices, rarely closed them at all, and CEO John Young sat in the bullpen area out here in a cube. So, literally, even the CEO, John Young, when he took over as CEO, didn't even have an office. But it's just so historic, you can see, if you go to the wide shot mark, you can see behind us, the picture of the founders and their youth, and their first product, the Audio Oscillator, which is a storied product with Walt Disney. And Dave, you know, Youla Packard reminds me of the way startups should be built in an era where they're just pumping out factories of entrepreneurs with Y Combinator and these other incubators. HP started like a startup. In a garage. A product, be profitable, don't carry a lot of debt, two founders, two technical founders, one more business with Dave Packard, but they were all about the people, and citizenship and innovation. And they had a management tenant, we talked about management by walking around, but what really was key about Yula Packard was, they really had business discipline. It wasn't a frothy company. They didn't have a real layoff policy, but it was just a storied company. And just, to me, the typical type startup, and it's pretty revolutionary to think about that now. It's interesting to be here, John, because obviously a lot of turmoil going on with HP these days, and they're in the news and we know that story well. Invent was the original tagline and the logo of HP. And Carly Fiorina used to have ads with Invent behind it, but of course, really not much was invented there. She ended up buying Compaq. Herd bought EDS, really not an Invent culture. And we're here today at what I would consider an innovation day, some very interesting announcements coming from HP that we're gonna talk about. Can HP get back to its Invent roots? That's really one of the big questions that we have. Yeah, I think they can. I mean, today's announcement, which we'll cover quickly in a second, but today's announcements, we'll talk about Moonshot in detail, shows to me that HP can move on a dime, and they've been moving fast. This is an interesting announcement for HP for many, many reasons. One, it's a game-changing announcement that affects the chip side of their supply chain and architecture around servers, which has had a legacy approach with Intel, who's not here. And HP is very, very strong in that business. Strong in that business, but it was a combination of a clobberage between HP Labs. So that's kind of the deal here. So to me, this announcement speaks volumes of the new HP. So let's get right to the announcement, Dave. So the announcement today is that HP is announcing a new extreme low-energy server technology. Kaleisa is the company. Calzada. Calzada, sorry, Calzada. ARM-based processor, and the big story here is that HP is announcing a architecture in their servers. That's really based upon a low-energy, what I would call mobile-like chip set. So the PC evolution on the old days, our days of client server and PC revolution, Dave, was the PC server microprocessor was the industry standard. And what happened was the server technology, Allah Wintel, grew out of that. So what happened in the server business was they were just the chips from the PCs retrofitted for, you know, Intel-based servers, which were competing against UNIX-based servers at that time. So nothing's really changed since then. So what today's happening is these new chip sets are absolutely a new definition with new requirements. And they're announcing it based upon the ARM, you know, low-energy architecture with a bunch of partners. And this is a game changer because it changes the footprint and really powers in new use cases that we're seeing where there's a lot of challenges. Those use cases are cloud, mobile, and big data. So what's happening here is that, for those of you who aren't familiar with ARM, is the dominant processor within mobile phones and cell phones. And Calzada is a company that basically has expertise not only around low power, but is taking the ARM architecture and making it data center server-class ready for the applications that John just mentioned, the Web 2.0 piece. HP today is announcing really three components of this announcement. Something called HP Redstone, which is essentially a platform based on HP ProLiant chassis. So it's an existing chassis that you can use from the supply chain, but it's very different. We saw Calzada chips, basically four chips on a card that slide in and essentially multiple trays. And you can get 2,880 servers in Iraq. 2,880 servers in Iraq versus say, tens of servers that you would normally get in Iraq. The second piece of this is the HP Discovery Lab. And that's essentially a lab in Houston that's going to open early next year and HP's going to announce other labs in Europe and AP. And these are places where customers can come and partners can come and benchmark. And the third piece of this is what's called the HP Pathfinder program. And Pathfinder is basically an ecosystem, which is very important. If you're going to have these new apps running on these new types of servers, you need to have an ecosystem. So HP's putting those three pieces together. The platform, the lab and the ecosystem is really what they're announcing today. I mean, it's really a comprehensive announcement if you think about it, Dave. I mean, that's the normal thing you look for. What I look for in an announcement is what's the technology that they're announcing very relevant in the challenges that we're seeing? And two, is it a real announcement? And so this ecosystem approach, those foundations you just mentioned, our HP's commitment, and they talked about this at the beginning of the race. But I want to talk about that core technology piece and they want to get your opinion. Now we've been covering on siliconangle.com and you guys have been doing the research at wikibond.org around data centers. We had Intel on at the Cube at Oracle Open World, Pauline Nist was a great guest talking about the chip challenges for Intel. Intel is not here and that is really the big story is that Intel has been a partner of HP for many, many years. The Wintel Alliance, Windows Intel, has been a big part of HP's hardware story and they're not here. And so this is a major concern around why isn't Intel here? So they didn't talk about it and HP is like we're not going to talk about that. So we want to drill into that. But the other thing is the cost of data centers. One thing that came out of our conversations on the Cube this year is that data center costs are skyrocketing. Footprint costs and also the overall cost to actually cool the heat from these servers. And so when people start scaling up and scaling out, huge energy issues. So Dave, what's your take on this? Well, is it going to be a fundamental shift? Do you think the adoption will be right away? What's your take? I think you're right. Intel's not being here is a big part of the story. Now HP did say that Adam Intel's low power chip and we talked to Pauline Nist about Adam, which is their arm competitor, will be is on the roadmap. They made that definitive statement in the Q&A session. So Intel, that says to me Intel's behind arm. I mean, very clearly arm leads in low power and Intel's playing catch up here. And so HP's making an innovative announcement and they're going to use the chip that's ready. The second is these processors are not for every application. Therefore, as John said before, Web 2.0, big scale out. So in those situations, you're going to, if you're using traditional x86 architectures, HP claims that you could save up to 90%. You could eliminate up to 90% of the existing processing power today. Just for people who are watching and not knowing what's going on behind me, people are walking in and out of this office behind me. This is the office of Pyl Eulett and behind Dave is the office of Dave Packard, the founders of HP. So we might see some people kind of strolling in and out getting the tour. Wall Street Journal's here, The New York Times, Wired Magazine, people are getting tours. All right, so our next guest is going to be Barry Evans, who's the co-founder and CEO of Calzada. He was just up there on the announcement. He's going to be coming on theCUBE. And Dave, I want to ask him how it all got started. They talked about kind of the mobile phones market. And I really want to talk about how he grew his company. And Calzada in this announcement is key for them because having HP as a partner, obviously as a supply deal, should catapult the company to financial success. And it's a validation for them. So I want to ask him that. Is there anything that you want to ask him? Yeah, so Calzada essentially takes the arm low power processors and add some secret sauce and put some on steroids and make some server ready. So I really want to understand what that secret sauce is, why the importance of HP and what kind of trajectory that's going to mean for their company. Because I think you're right, John, you got to have a big partner. If you're going to sell servers, you got to be basically with IBM, HP, Dell or Oracle, or you're really not going to sell a lot of these things. Maybe we can ask a question and get them to tease out why they beat out Intel. That would be a good one. Yeah, we really need to explore that. Because I mean, again, my premise is that they're ahead. And I think substantially ahead, so. Well, I wrote a post talking about the processor wars. And you know, as a blogger, you do that. You throw a war in there and it gets headlines. But mainly what I was trying to tease out was the fact that Don Clark, who's here from the Wall Street Journal, wrote a post that talked about a quote from Steve Jobs, a biography which said that Intel had the inside track for the mobile deal for the iPad, chipset, and you end up going ARM. And Steve, it was known within Silicon Valley that Steve viewed himself as the person that was handed the baton from Dave Packard and from Noise from Intel. So he has a spot in his heart for Intel. So he's actually given them the business to lose. It's theirs to lose and they didn't get it. So it's interesting, ARM is obviously a great mobile product, but now here we go back to servers. Can a mobile architecture really fit in server class architecture? Well, John, you remember back in the 80s when people were looking at PCs and the microprocessor based revolution as just that, toys. And at the time, RISC and SISC dominated the marketplace. HP's own PA risk and IBM's risk were very much the dominant players in the marketplace. Of course, IBM mainframes and look what happened there in a span of 10 to 15 years. Intel now has, according to IDC, 97% of the server shipments of the marketplace. Now, are we predicting something like that with ARM? Well, probably not in the next five or 10 years, but I think there's no question that power and energy consumption are increasingly becoming a greater and greater portion, two things, greater and greater portion of the cost of running these systems. Number two is new applications like Hadoop will be at Hadoop World next week are emerging in analytics and scale out that lend themselves well to these type of low-cost scale-out processors. Yeah, and just crazy, a little plug too for the cubes, look on angle.tv and wikibon.org will be at Hadoop World next week, getting in on Monday for Tuesday and Wednesday, a two-day broadcast for Hadoop World. We'll be on the ground in New York City exploring all the advances in big data. Dave and I, you and I will be there exploring for year two, the cube, and last year, a huge success. So, stay tuned, join us there, siliconangle.tv next Tuesday, the cube. And, you know, the announcement here today is HP is announcing Moonshot, Project Moonshot, which is a new advancements in server architectures using low power and home.