 In Las Vegas, Nevada, this is theCUBE, SiliconANGLE, and Wikibon's flagship program. We go out to the immense instructor soon from the noise. Go to SiliconANGLE.com, that's the reference point for tech innovation, you'll see all the stories in tech, from Apple, to Android, to HP, to IBM, to NetApp, to all the enterprise customers, Amazon. We cover the cloud mobile and social, first blog to do that since 2009, the only blog doing it until the night, and the first one to cover that. I'm John Furrier, the founder of joint Jeff Frick, and our next guest is Bruce Trev-Arthin. Trev-Arthin got it, managing director of the cloud.net.nz. The cloud.net.nz, your company. Welcome to theCUBE. Thanks very much for having me. So this is theCUBE, so this is where we get all, kind of we talk tech. So let's talk about cloud infrastructure as a service and HP, so first introduce your company and then get into specifics. Sure, so the cloud as an infrastructure as a service provider, built in New Zealand, for New Zealand companies. So any service we take to market has a very in-country flavor to it. Naturally you can buy cloud services globally now. So the key for us was around automation and in-country nature of those services. And we developed that in 2008, early 2008. We've been evolving it ever since. And it's going really well. It's certainly growing at a rate quicker than we anticipated. And the technology platform eases the pain of that rate of growth. So just take us through what's changed since 2008 to now in terms of good stuff like automation, because configuration management and cloud has evolved, right? Little things. So what are the things that you can point to and say since 08 to here, were big improvements in game changing? Some of the big game changes, well, first and foremost, at the cornerstone of the environments, and we have three discrete production environments and in the three major cities of the North Island. And the cornerstone of each of those environments is the storage array, the storage network. And initially that was on a fairly monolithic technology that scaled okay, but didn't really provide us with any flexibility or any differentiation when it comes to actually taking that storage to market as a product. So the HP three-past all-serve product slotted in there pretty well like a glove and gave us not only that tier one resilience in terms of the architecture there, but also with the different tiers of storage. And the way you can carve them up and deliver them out as a very specific level of service, that meant that from this one storage technology, we could actually deliver all of our storage requirements under this one management, one technology umbrella. So it certainly reduced our overhead and gave us the ability to then scale without having to maintain and manage all of these disparate sort of technologies. So when you talk about the cloud, we hear a lot from HP about bursting. What does that mean for folks out there that are trying to figure that out? Because, you know, as customers, they want to have some SLA user experiences that they're consistent. I mean, Amazon has great elastic cloud and great resources, good stack. I mean, we use a lot for our stuff, but could be lumpy. So what have you found from customers in dealing with HP in particular with this bursting? So bursting's pretty new for us. We're currently working with HP on that. The beauty of that, again, it does come back to the three power and some of the converged technologies, converged convergence of the technologies up in the compute stack as well. But, you know, just touch on what we did back in 2008. So we had to build our own orchestration and building engines because it wasn't any kind of cloud system matrix back then. Thankfully, now there is. And that's certainly- It's hard stuff at a rate. It's hard stuff at a rate. You know, we had to develop that. We had to keep evolving it and there's a finite limit. And I'll say so myself to how far we can push that before you have to adopt something like an enterprise out of the box product. But so we're working with HP through that now and regarding bursting, I'm a little more comfortable with that concept commercially from the point of view that HP run the same stack as us anyway. So if we burst to HP, it's on three power. It's on Gen 8 servers. It's on that same physical infrastructure and therefore performance. And the constraints or the caveats around that performance to make sure that the multi-tenancy aspect of delivering cloud is not to the detriment of any other multi-tenanted customers, that's going to be the same on HP's cloud. So quite comfortable with that versatility. So Bruce, talk a little bit about again, 2008's a while ago. So you were kind of at the beginning of this show how the customer app selection and process for putting stuff at your facility has changed over that time. And what does it look like going forward? So we, and again, it's a New Zealand-centric approach to this, but we are a nation of early adopters. So ultimately, in 2008, we saw the need to commoditize the tin that was on-premise. And so what customers were doing, it's a customer understood 2CPU and they understood 4G RAM and they understood a terabyte of disk. So if they were going to go along to a website and buy medium, what does that mean? And then they have to architect their solution to adhere to the constraints of medium. What does that mean? So we felt that, certainly back then, and I'll come to why it's changing, but we felt back then that customers needed to consume what they understood. And so we had to sell TPU, RAM, and disk. And then we can add some resilience and some other enterprise elements around the outside. But so we've shift forward five years to now. And now what we're seeing is less concern about TPU, less concern about the RAM, less concern about the amount of disk. And basically, here's my workload, make it go. By the way, make it go in these two locations and keep that one up to date so that if this one fails, I can turn it on. And that's really the shift. I think a lot of... So how are they measuring that now if they're not measuring it by the metrics that you kind of started out with? So, and this is the whole industry in itself, right? You've got companies like New Relic who actually, their entire model is around being able to measure the entire experience from the database interaction through the stack out to the end user. And you can measure that right down to per user now. So that's the measurement. You don't no longer have to worry about, am I using 90% of my CPU or is my RAM ballooning or is my disk latency going up? That's just no longer really a concern for the actual customer deploying their workload. But I think the main reason for that shift is that software doesn't last forever. And it has to evolve and often it gets rewritten from scratch. And more and more now when software gets rewritten from scratch, it's written in a cloud way. So they're writing it to actually make use of things like Amazon Beanstalk or a computing environment that will scale but not necessarily in a traditional sense. Interesting. So what do you see as the biggest challenge Amazon has in the enterprise? Because a lot of people are using Amazon for shadow IT. I mean, we're at HP show, but I'm just going to say it. I mean, we are big fans of Amazon. We think they're doing awesome. They have great commoditization of infrastructure as a service. They pump out new stuff all the time. RDS, Elastic Beanstalk is fantastic, tight, fast. But not SLA oriented. They're just moving so fast. What do you see? Very innovative though, right? I mean, it was disruptively innovative. One, they're commoditizing a market called infrastructure. And on top of commoditization, they're innovating. You don't see that very often in our business. So it's exciting to watch. The question is, is that, you know, where are they going with that? Enterprise is a different ball game. OpenStack has got a lot of traction because it's just flexible. It's like a warm blanket for an enterprise. What's your take on the charging Amazon and the warm cuddle of OpenStack for the enterprise? You know, Amazon have inertia as well. You know, there's a, I wouldn't call them a juggernaut, but there's no stopping them. So recently, obviously Amazon are now in Australia. So that makes them an Australasian player, which affects New Zealand. But so when we take our products and services to the market, there's a big in-country message there. And so Amazon ultimately, I wouldn't want them to go away. They're innovating, which gives us ideas. They're also driving the price down and commoditizing it to the end of the degree, which means that we have to come up with new innovative ways ourselves to achieve the same capability in-country at a different scale. And when it comes to enterprise and SLAs, look, I think, again, tool for the job tends to be the approach. And Amazon absolutely fits certain workloads. And we have customers who would quite happily put archival data on Amazon because for a cent a gig, why wouldn't you? And then we have customers who actually need that data on the end of a 10 gig fiberlink, but they're not gonna get a 10 gig to Amazon for anything, any kind of cost effective price from New Zealand. So tool for the job. And I think Amazon, they belong in the toolbox. There's a place for that. Jeff, what's your take on Amazon? Given your opening stack of co-hosting at theCUBE. Yeah, and also at AWS Summit, I think this relentless innovation and relentless drive on pricing and relentless delivery value has been very powerful. And it's like my whole carrot stick thing. Had they not done that, had Amazon not delivered those services and the adoption of what it is, I don't know that we would be where we are today in terms of the speed of adoption of the cloud. So clearly they're driving out front. I'm curious to talk a lot of it about globalization. And I know moving data is hard and moving data across large geographies, right? It's real time. It takes real time even at the speed of light. It takes time to move data. So talk a little bit about kind of your focus on going very local and what's kind of the impact of the globalization that you see and we have to have these data centers all over the place. I mean, we're going to have the data distributed all over the place. And that's the same in country. We have Auckland, Hamilton, Wellington. We don't just have one, we have three. Not only because we need the resilience of being able to fail over between them, but also because a customer with an office in Wellington and a branch in Auckland say they wouldn't necessarily want to have their workload where they have the most people, for example. So there's no point posting in Auckland if all of your people are in Wellington because if you lose that connection to Auckland, it's as good as losing the connection to the internet totally. So regionalization of latency sensitive or high volume data services is important because international bandwidth is expensive and certainly from New Zealand it's expensive to the point that it's simply not freely available right down at the end user level. It's cost prohibitive. And so regionalization plays a role and I think you can scale that up to the world. So then you have to have your actual platforms regionalized and I think we're seeing that with a zero now in Australia as well, Amazon in Australia. Whereas previously they were just in, for example, Microsoft Azure was in Singapore and Hong Kong. And so for them to push into an Australasian market seemed a little niche, but ultimately they're not getting the market penetration by being only in four sites in the world because people actually want their workload closer to the high-speed networks. Yeah. Bruce, thanks for coming inside theCUBE. We got our next guest coming up. This is congratulations down under in New Zealand taking care of the cloud business down there and being an owner of your own business. Good luck and has been a good ride. Thank you. It's great fun. Keep doing it while it's fun. Being your own boss is good because no one can fire you unless you're out of business. So that's what I always say, don't go out of business. That's true, that's true. Thanks for having me. As we say to all the startups in Silicon Valley, you can't go out of business if you have money in the bank. That's right. So, hope this is good. Thanks for coming out of theCUBE. Share your perspective. This is Silicon Angles theCUBE. We'll be right back after this short break with more action. Day one of HB Discover, three days. Wall-to-wall coverage with a Mexican out coming up at four o'clock. Stay tuned. We'll be right back at this short break.