 Live from Las Vegas, it's theCUBE. Covering Discover 2016 Las Vegas. Brought to you by Hewlett Packard Enterprise. Now, here are your hosts, John Furrier and Dave Vellante. Okay, welcome back everyone. We are here live in Las Vegas for HP Discover 2016 exclusive coverage from SiliconANGLE Media's theCUBE Star Flagship Program. We go out to the events and extract the signal from the noise. I'm John Furrier, my co-host Dave Vellante. And our next guest is Bobby Patrick, CMO of the Cloud Enterprise Group at HPE and Michael Loomis, head of sales at Global Enterprise at New Osh Networks. Part of now, part of Nokia. Welcome back to theCUBE. Welcome for the first time. Thank you very much. You made the CUBE alumni club. Congratulations. It's growing very fast. I got my card when I leave. I got to get platinum membership now, now. We're going to have a VIP. You know, after six times, you get a platinum card. People want to have a CUBE alumni event at these events so it's going to be fun. Next year, we'll look at that. Bobby, I want to get touch base on the cloud. Obviously, you'd run in the cloud group and Nokia's a customer of you guys. Obviously, HPE, everyone knows the history. Had the public cloud, they kind of pivoted over and now you guys found your swim lane. I want you to just take a minute to clarify and re-amplify what we talked about last time in London around HPE's cloud strategy. It's not like it's not defined. You guys have a clear line of sight. Take a minute to just share your vision and specifically the company's cloud strategy. Yeah, thanks, John. It's great to be here again. Cloud is the catalyst for our customers' transformation and our partners. We've got 24 here at Discover on stage showcasing Healing Network. And I've been here two years now and our cloud strategy couldn't be any more on fire and working and there's three problems to it. The first one is we want to help customers in a multi-cloud world. Source, manage and consume cloud services across traditional IT, private, managed and public, right? We saw the Azure partnership before. We have Dropbox now as well and others. So we're demonstrating that. Second one is we want to partner with the leading public cloud as well. So you mentioned the public cloud. We used to have in the past. Now we're focused on that part of the right mix of our customers' cloud strategy on public cloud partnerships. So you see that with Microsoft Azure, specialty clouds like interlinks around document collaboration, Dropbox. These are all examples that we're demonstrating around partnering with public clouds. And the third one is we want to integrate our solutions with those clouds as well. So managing that multi-cloud world is complex. We're working with companies like Nokia. We're taking Healing and Healing OpenStack and Healing Cloud Foundry. We're layering on it called cloud orchestration which we now bundle as our Healing Cloud Suite today. And we pull in public cloud. We pull in managed, private and traditional IT into one single solution for our customers. So you mentioned Azure. There's nothing in the announcements this morning that mentioned Azure. Is that the previous relationship? Right, we announced our partnership with Azure last discover. This one, there's a number of announcements just showing it at work, right? Our managed cloud broker offering, cloud brokerage is a really big deal now for CIOs trying to manage a multi-cloud world. Now extends to Azure. So there's a lot of those announcements that you're going to see throughout Discover with Azure and there's going to be some other cloud announcements as well. Well, we'll get to the Eucalyptus-AWS relationship kind of later, but I want to ask you specifically around the strategy and how you see the cloud enabling delivery. And on the opening I mentioned, Dave was asking about my views on HP's growth and I kind of used the story of, back in the old days of the mini computers, this little laser jet attachment to a Wang system was a major growth engine for HP and the rest of history. So we're kind of looking at the cloud and saying, okay, is IoT that bolt onto the cloud that is going to lift up, where cloud becomes obviously pervasive like mini computers and then distributed computing did? How are you guys enabling things like IoT? Because now the hybrid cloud public private data center is integrating together. Do you see that as an integration into the cloud and you enabling those kinds of things? There's actually two big kind of growth axes that I think are important, right? One is you mentioned IoT, so the number of devices connected, the amount of data, just huge orders of magnitude growth. You've got to actually drive costs down and things as well be part of that. And so that's a big deal, IoT universal platform that we announced as well. Healing is a back end for that. So massive scale on OpenStack, on our cloud line servers or others. So you get that maximum economics, with new wash and others spreading and cost multiple data centers for availability. We have that platform for IoT. But I think from a growth in March, when you look at the new HPE now, right? The lighter, nimbler, stronger. When I layer on our security products, security is the number one concern our customers have going to cloud. You know, ArcSight being able to threat detection across a hybrid cloud, right? Right, the ability to do encryption with our data secure product, right? Bringing in our big data products, like Vertica for the columnar data store in our work around Hadoop or distributed R, right? When you begin to bring those pieces into the fold, right? You begin to have the ability to add on top high value software and services. More of the stack, obviously infrastructure across the bottom. So what I see is us growing share of wallet, growing our strategic relevance by both handling the massive amounts of data that's being generated, supporting the connected world, but also security, managing that data, big data, fast data, and providing that full stack on top. And we're bringing all those pieces together. And the past HPE kind of had these siloed BUs in a way, right? Not anymore. All these pieces are coming together and that's a big part of my organization responsibility. So Michael, talk about where Nuage fits in. What's the relationship? Where do you guys add value? So Nuage is what we call a software defined networking product. It's borne out of some routing technology that we've had for a number of years. We started our router products back in 2001 and we're number one or number two, depending on the category in service provider edge routers. And when you look at the problem of scale out and flexibility in the cloud, you need some complex network constructs that may not be readily available in some of those cloud tools. And obviously you can't go throw an expensive service provider edge router at that problem. So what we did is we took that software, used that as a SDN controller to manage the forwarding tables of the virtual switches or the namespace in the case of Linux container, integrated that into a distribution or a cloud system like Keelion. And there you go, you've got a stack that can scale out at the network layer and at the computer application layer. The VMware killer. Yeah. As a solution. That's correct. I was just gonna say that. Matt Kelsinger always talked about network and he's so proud of his acquisition of the SDN player in the Sierra, which is a part of VMware. But David and I always saw that the network was the bottleneck, you're seeing a rub out there. Yeah. Specifically talk about where the network piece fits in and why that's so important right now with cloud. You mentioned some technical things, but is it really the DevOps enabler? Is it about the containers? Is it about the microservices? All the above, what's the key issue? Network is important for scale. Anytime you want to go multi data center or hybrid or you want to secure your applications, you got to have an advanced networking solution or an SDN solution. What's driving that scale? You know, we approached private cloud a few years back. We had the stack, we were putting it together. We got nice production pilots up in the customers. And then we found that a lot of the applications weren't built to consume the flexibility and the scale out that we delivered with that private cloud. So these enterprises are going back and they've got new applications that are coming on that are microservices oriented architectures, cloud native applications, and they can consume this architecture and they're starting to, it's not just IoT, it's lots of applications that are re-looking at how to take advantage of this infrastructure that's being built. And that spreads across multiple data centers and part of the hybrid cloud, which is why solid networking solutions important. It's absolutely critical to have good networking. Let's get to the DevOps question. Obviously the big thrust workloads. One of the things you guys talked about in your announcement this morning was obviously workload management, having the ability to flexibility, right, opposable infrastructure, yada, yada, yada. I got it, Michael, you're developing this stuff. And the thing that Dave and I hear in Wikibon community from customers is make it easier for me. The total cost of ownership is out of control. It's super hard to do this. How does this get easier? How are people managing through the complexity to make it simpler? And how are they managing the total cost of ownership? Healing on. So that's just why it's important for us because we come in and we have a lot of great networking technology, but people are not going to consume that networking technology in and of themselves. They need a integrated, complete stack that's supported, installs quickly, and has an orchestration layer on top that's going to allow it to scale the full set. Give an example, was I just saying Healian. What specifically about Healian makes it simpler and lower cost? So when you look at Healian, one great tool set they built together is an installer tool set. And so there's nice scripting that's going to take, when you look at a cloud, you've got open stack components, you've got your cloud foundry components, you've got your networking components, storage components, and to have all of that stuff installed and deploy seamlessly and scale out as demand is required, that doesn't come off the shelf if you're going to self integrate some of these open source projects. So that, the support and service that's added with Healian. And then if you look at the CSLA layer on top to manage all the components and integrate in with some of the public clouds, that's what takes the technology stack from being a great set of standards and a great set of open source products that can now be consumed. Well, the installation was the biggest barrier open stacks had for a long time about how complex it was to install at scale, right? So I think that's something to be cracked. And it takes it from a stack of technology to something that actually solves a business problem. So that business problem is IT labor. Right, that's right. Non-differentiated provisioning or patching. So talk about the shift that's going on within that sort of labor pool from stuff that gives you no competitive advantage to where we are today or where we're headed. We used to go into proof of concepts and the customer would, one of two types. They'd either have an open stack expert in there, someone who had lived and breathed it and was part of the original community and they would work with us to get the initial stack up and running. A guy. A guy. Or we would have to bring that guy to the table and they'd get somebody that was trying to be that person. We'd help them stand up open stack at the same time we'd go in with Nuage. We knew that wasn't going to work. So that's when we started partnering strongly with partners like Helion who can come in and make that work for the enterprise. And if you're in a CIO's position, you don't want to be dependent on one or two open stack experts that you've got to make sure stay or you've got a higher an army of open stack engineers. What you want is a private cloud that works in a trusted partner to deliver it for you. But you want the openness and the standards based attributes of a product like Helion. So you can plug other pieces of the environment in. So that's, it's really important. And Dave, just you know, the average customer that we have today has one engineer for every 240 virtual machines with Helion staccato 4.0, which we're rolling out. We believe we can get that to one to 500. And that's because you've got a universal control plane where you've got a single pane of glass basically across all the clouds Azure, AWS open stack based clouds, maybe even some VMware stack clouds as well. And, and you could through one, see the workloads deploy them. That's how you really get a continuous delivery pipeline going. It's API's for developers, but a single pane of glass for IT. And scale. As you were talking about before, Mike. That's what's key. It's working now. You brought up VMware, VMware killer when you mentioned it. So I'll bring up the VMware question. So back in the day, VMware ecosystem was really robust. So I'm saying it's on the decline. We'll see that. What's the update of our VM world? theCUBE will be there again this year. But they made for every one of their partners, they made $10 for every dollar VMware book. So they threw off a lot of cash, which is great for the ecosystem. It feeds the, feeds the beast, if you will. How are you guys, Bobby, doing that with your partners? And how do you see Docker, for instance, enabling things like that? And how does that all, you have to do some sort of economic advantage for your partners. Can you share some insight into what you guys offer? Yeah, yeah. So in addition to, you know, that the terms around helping it be attractive to skill up and, and trans, our partners transforming as well. Most of them have been resellers. You know, they want to climb the stack now, they want to be more relevant to their customers. So skilling up does come with cost. And one of the big things we're doing is working on go to market with them. Actually bringing them, bringing them opportunities, bringing them into deals. In the case of like with, with, with Nokia, right? The ability to, to go in with them, work on accounts together. These are major, really large, significant IT transformations with our other partners as well. Skilling them up, getting, bringing them into deals. So are they wrapping services around? They're monetization services wrappers. Yeah, they're actually building hosts that back up as a service, other kinds of service offerings that they build and run themselves that we will actually sell through our go to market channels. Or they'll deploy onsite that, you know, most of our business, you know, 70% goes through the channel, right? So is there a number? Can you share a number? $10? I don't have the number. Michael, how can I say the number? How does the ecosystem build around and how do they make money with Healian? Is it the services? Is it the apps? We deploy, we sell software licenses. So as Healian scales out, we get more workloads on the system than we're going to sell more software licenses. But the ecosystem's critical for us because when you're talking about building a private cloud and you're talking about building an open private cloud, which is getting away from the vendor lock that exists today, which is why people are driving to some of these open source products, it means that a lot of products have to come together and work well together. And so usually it's the open stack distribution that's like Healian that's leading that ecosystem. We're a part of that. And then we get interaction with a lot of other components as a part of that ecosystem that helps build an end solution to the customer. And we have 360 now cloud builder partners. We had 30, 18 months ago. We'll have 3,000 and 18 more months, right? We're transforming them and they're building new businesses, higher marketing services that grow in their companies. How do you see the CSC, Spinco, whatever we want to call that, affecting is you have basically a built-in consumer of your stuff. They're one of like Antonio Neri's biggest customers, probably, right? How will that shake out, do you think? And of course, CSC has a strong relationship with AWS. That's goodness, but... Yeah, I think it's about focus, as Meg always says, right? It's about having companies that can really focus on their best thing, right? So we're going to have a growth company focus on software and hardware and infrastructure and services. I think outsourcing, they're coming together with CSC. They'll be a big partner of ours, but we're also partnered with Accenture and others as well. So I think it's allowed everybody to be the best at what they do. We'll have relationships, contractual and partnership relationships, but it will allow maybe a bit more competition. Probably very, very healthy. You feel healthy with the SIs, the big power SIs. You guys in good shape with those guys? Yeah, in Price Waterhouse, Cooper's just received a partner of the year for cloud. They're here in a big way, Accenture's here. Yeah, I think they're big as well, but you know, our enterprise services and they're here in a big way too, and I think that'll continue. Some of the influencers out there last question wants to know about the update on Eucalyptus, AWS, that relationship, can you give an update? Yeah, so our strategy is to partner with public cloud providers, many of them. Eucalyptus has a great story. You know, we're obviously going to reinvent, we're a big part of that. You know, I think there will be, you'll see more to come on the public cloud partnership face. But we'll be at Reinvent, note to theCUBE, watch it, we'll be at DockerCon as well, coming up very quickly, I think next week or the week after, thank you. I mean, events coming up. Guys, thanks so much, appreciate it. Thanks for spending the time. Yeah, thank you. Bobby Patrick Megalumus here on theCUBE. This is theCUBE, we'll be right back after this short break.