 Dave Vellante, I'm with Wikibon.org. I'm here with my colleague, Stu Miniman, and we're live at HP Discover, HP's big customer event. This is theCUBE, SiliconANGLE.tv's continuous coverage. This is our second year at HP Discover, and we're here with David Scott, who runs the storage business for HP. He's the executive vice president of that business line. Former CEO of 3Par, many of you know. The big acquisition a couple years ago that HP made in a bidding war with Dell, HP won. And it's doing great with the company now, but Dave, David, welcome to theCUBE, first of all. It's great to be back. And David has a responsibility for the entire storage portfolio now, not just the single product company that you guys were and tremendous success story there, but it's two years in now. 18 months, not quite two years. Okay, two years in from when we were talking about this at VMworld, right? We were watching the blow by blow. So how's it going? Really well. I think HP's in the process of transforming the storage industry. I think I've mentioned before, we have aggregated some terrific storage assets in platforms like 3Par and StoreOnce, and LeftHand, and Ibrics. And we're really bringing it all together and making a mark on the market. Yeah, I mean, frankly, the portfolio was deficient three or four years ago. I mean, I would go to analyst meetings and I'd say, okay, you got EVA and you got these products, they're good products, but all the cool stuff's happening at 3Par and Compellent and Ibrics and LeftHand, of course, was in accuracy. So conscious strategy. So now the little cool stuff's happening at HP. So this is the thing. You and I have talked about this a number of times, the whole best of breed versus integrated stacks, right? And now the whales are sucking up all the good stuff, right? So what's happening there? I mean, what's your take on all that? Well, you know, I think we feel that the world's been transforming with this evolution towards cloud, the delivery of IT as a service, whether it's private or public clouds, the massive explosion in unstructured data and human information. And fundamentally, all of the kind of leading architectures in the industry by revenue, they were all designed 17, 22 years ago, very different circumstances, not fit for purpose for these new generation of challenges. And the opportunity HP's is seen is fundamentally to bring forward four modern use software storage architectures that are best in breed, comprehensive, going from kind of one end of the spectrum all the way up to massive, highly scalable systems that really deliver tremendous agility, efficiency, simplicity for our customers. Yeah, so let's talk about store once. I mean, you guys are making a lot of noise about that, making a number of claims, very aggressive marketing for HP, going, frankly, going after EMC, talking about better performance, better restore performance. EMC's the market leader, they acquired data domain, Avamar, have a big market share. And now, the interesting thing is store once was developed inside of HP. That's right, it's absolutely organic development out of HP Labs. We have more than 50 patent pending innovations there, brought to market by HP Storage two years ago. Two years ago, we set out this vision of federated de-duplication, the idea of having a single de-duplication algorithm for all of the use cases around the enterprise and therefore being able to pass unrehydrated data through the network very efficiently, rather than all of these incompatible technologies from companies like EMC were deployed in different use cases and you can't pass data between them without going through this massively expensive rehydration cycle, passing it through the network, consuming lots of bandwidth and de-duplicating it again. Very, very inefficient, difficult to manage and we're offering really clean, single architectural approaches and we're doing it with the de-duplication this-to-this backup space with store once, just as we're doing it with three-part on the primary storage space. Yeah, so let's stay on the de-duplication piece a little bit. I mean, the pressure's on, right? I mean, you've got a big market, it's surprised me the size of that appliance market, the de-duplication appliance market, it's now bigger than the tape market was and I thought it would be limited by the tape market. What did I miss? Well, I think- Sorry, sorry, what I mean is, let me be more clear, what I mean is it would be limited by the size of the tape market. It's exceeded that size, why? What mental model did I not get? I think quite frankly, you're seeing the massive explosion in unstructured data. I think by 2020, something like 35 zettabytes of data is going to be kind of stored, 85% of that is going to be human information, unstructured information and it's really been traumatic for legacy backup systems. They just can't keep up with the performance requirements. You have a patchwork of solutions for backup applications quite often, sometimes you have one application for backing up your physical servers and other applications to backup your virtual machines, the third one for cloud-based backup solutions. And what's more, I think a lot of these environments, backup repositories, if you like, are for most customers, they're archive. They don't have separate archives unless there is a legal requirement for them to do so. And so trying to recover information in a granular way from those archives is also a big challenge. And so over the last couple of days between StoreOnce introducing industry-leading performance at 100 terabytes per hour backup speed with our new source-side StoreOnce catalyst software, native backup speed of 40 terabytes per hour, but more importantly, the ability to recover and restore at 40 terabytes per hour, the same restore speed as a backup speed, no compromise, unlike our market-leading competitors. We love when you take shots. Fundamentally, we are servicing this massive explosion in data better, and we're doing some very exciting things with integrating autonomy with our data protector backup software with StoreOnce to allow more granular information access by introducing the world's first meaning-based information protection system, and that's data protector seven, which is shipping now. Yeah, you know, I made some announcements, I guess on Monday, about that integration. So, you know, autonomy's got a big customer base and should be able to move some product through there. The vision, David, of deduplication everywhere with a single algorithm, no rehydration. I love that, by the way. I first heard it in an EMC world three years ago, and then EMC bought data domain and I said, well, that's never going to happen. Then you guys came out with that vision and you started with the vision. You're now starting to deliver on it through things like data protector, and do you feel like customers are going to really hop on that, or do they need education? What are the barriers to them, you know, really adopting that vision? Well, I think the key for us is that there's now a real opportunity to serve as customers better, because, you know, these first generation deduplication technologies, they have no high availability, EMC data domain, you get a node fail, you need to fix it, and then there needs to be manual intervention to restart the backup streams. The B6200 that we introduced in November last year, it has the unique capability, excuse me, of autonomic restart, a high availability solution. The system will detect if there's been a failure and automatically restart the failed backup streams on other nodes within the B6200, and that is the kind of differentiation that we've been offering, higher restore speeds. We're five times faster restoring from the B6200 than EMC is with data domain. Does that matter? Of course it does. How much does downtime cost? 100, you know, millions of dollars a day, and we can literally recover as much in one day as it will take EMC with data domain to recover in one week. So there's a demand out there, and with this new software being supported by backup applications like HP's Data Protector, by Symantec NetBackup with Symantec BackupExecSoon, it's very easy for customers to swap out these kind of generation one de-duplication engines and swap in HP store once technology. Okay, so the pressure's on, right? We should, a year from now when we're sitting here, hopefully we'll be sitting here, we'll look at the IDC data. You would expect that that slice of the HP pie, slice of the backup pie to be much more toward HP's, right? That's the expectation. You guys would be very aggressive about that. Well certainly if you look at our products like StoreOnce and 3PAR, they have incredibly high growth rates. StoreOnce has been running at either near triple digit or triple digit growth rates over all of the last few quarters, just like the 3PAR platform, which has been growing at triple digit growth rates. 3PAR, by the way, happens now to be the largest storage array product line that HP sells, a real milestone that we've passed. Really? Absolutely, but I think, you know, there's incredible momentum behind the business. Even though HP's overall storage business only grew 1% last quarter year over year, under the covers, the more interesting stat was that we grew 8% year over year from an external storage perspective. And when I compare that to the reported growth rates of all of our competitors like EMC, NetApp, it exceeds all of those competitors significantly. So I think you're starting to see signs that there can be positive market shifts. So can I just clarify one of the things you said? You said 3PAR is the leading product, number one product within HP, within HP Storage, right? Within HP Storage, absolutely. Yeah, and so just for people's clarification, I mean these are markets that are growing, you know, the 3PAR storage market, not the 3PAR piece, but the storage market that 3PAR participates in is growing at, I don't know, single digits, you know, 10% right? And the store once market, the deduplication of clients is growing much more quickly, you know, 30, 40%, and you're saying you're growing at triple digits, so you're gaining share there. So, you know, I think back, you know, if he's dialed back 10 years ago, you know, HP dominated the internal DAZ marketplace with server portfolio, and now HP has, you know, a solid portfolio of external storage, but what I find really interesting, and I cover the convergence space, is HP's one of the few vendors out there that can really put those pieces together, the compute and storage. We've seen a blurring of those technologies, HP's partnering with companies like Fusion IO, heavily involved in Flash. You know, can you talk a little bit to what, you know, your storage group is doing with the compute guys these days? Yeah, well, you know, a whole converged storage strategy is based and predicated on leveraging industry standard platforms, mainly because we're the number one supplier of industry standard servers in the world. And so, platforms like our left hand scale out iSCSI solution directly leverage our ProLiant and our blade system platforms, and that allows us to really deliver complete converged solutions today. And if you look at left hand, we have some really exciting stuff. The whole area of virtual storage appliances is set to start to kind of explode and we've been a leader there. We've had a left hand VSA virtual storage appliance for a significant period of time and in solid state, you know, it was actually the first, one of the first platforms in that space to support solid state disk in industry standard technology. We also, earlier in the year, introduced the P4900 implementation of left hand, which is an appliance solution for scale out. And that was a complete solid state solution as well. So we've made great progress there. We've made great progress in solid state in other areas of the product line like three part. In fact, you know, solid state drives and really team up very nicely with sub-lun storage tiering. Though those two technologies are very co-linked and few people would know but the HP three power platform was actually the first high end platform ever to support the combination of sub-lun storage tiering with our adaptive optimization product with solid state disk. So we've been a leader there, a leader in convergence and we see the opportunity to leverage the fact that we're a big storage player or a big server player and really deliver more value in the conversion industry moving forward. I want to stay on three part for a second because it's such an exciting story. I was walking around the discover show floor and I stopped by the storage area and I saw next to the yellow three part device, the system and then a sign that said, tier one storage for the cloud. So tier one, you were the, you ran the XP product line before you went to three part and that was the sort of classic tier one reliability, availability, service ability. Is the definition of tier one storage changing? No, I think if you look at the environments that the HP three part platform was originally targeted for it was for these large infrastructure as a service for public cloud providers. Utilities. These are effectively utilities. You don't get more tier one than a utility. I still have the red herring all marked up. Exactly and seven out of the top 10 global hosting service providers use three part as their tier one storage for the cloud. And that's fundamentally the success that the platforms had. And as people start to adopt private clouds within their own enterprises, they want to use the same technology that the leading global hosting service providers have had so much success with delivering tremendous mission critical availability over a long period of time. And so that's why in part we're growing at 100% plus growth rates quarter after quarter. And I do want to make a point though. Some people say in HP is three part just replacing EVA and that's absolutely not the case. If you take the example of combining EVA and three part revenues together, last quarter we grew 19% year over year. So the combination of EVA and three part. So we're clearly taking market away from other vendors like EMC, like network appliance, et cetera. I have to, I'm getting the two minutes on here. So I have to ask you, because you are a very successful entrepreneur, CEO of a public company, tremendous exit. And you participated in one of the greatest wealth creations I've ever seen in storage. You timed it just amazing and three part, compelling and on and on and on, I salon, et cetera. Are we going to see a similar trend with the flash guys? The take out of extreme IO at a reported, what was it, 400 and change, even though that wasn't a publicly announced number but that was kind of the whisper number. Are we going to see a similar value creation in your opinion in that flash area or is this a little bit too early? Well, I think it's not clear where the end state value creation in the flash market or the non volatile memory market is going to be. And there are a lot of opportunities for vendors like HP that have very strong server and storage intellectual property and franchises to create value that individual startups may not be able to create by themselves. So it's one of those differences between the opportunities that avail themselves to compelent and free power and I salon, et cetera. These are the situation that the flash market. Because of the end to end systems. Because of the end system linkage that is likely to be a dominant factor in the solid state market. Last question, what's keeping you at HP? I mean, you seem energized, you look good. I love the opportunity. I mean, who wouldn't like to take just these incredible assets, drive them kind of hard in the direction of solving real customer problems as they exist today and are going to exist in the future and being able to transform the storage market. And that's what we're doing here at HP Storage. David Scott, thank you very much. We really appreciate all the support you're coming on theCUBE all the time and it's great to see you again. Delighted to be here. Good luck with everything. Thank you so much. All right, this is theCUBE. Keep it right there. We'll be right back with our next guest.