 Welcome to the power van the cubes coverage of the HPE Aruba Pensando announcement Antonio Neary is here and John Chambers to help us set up the day guys great to see you thanks so much for coming on yeah thanks for having us today David's gonna be fine sure is so two years ago you guys might recall we are in the Goldman Sachs offices overlooking Manhattan and that's when you announced the investment in Pensando the relationship two years goes by fast how's it going yeah definitely two years ago boss by fast and a lot has happened right a lot has happened since then what I will say first and foremost the partnership had got stronger much stronger because as John and I and the team work together we validated the vision the vision that ultimately the world will be way more distributed that edge to cloud architectures will be required and the original idea that John had with the Pensando team partnered with us to bring that cloud experience to the edge it goes stronger and stronger and stronger at the same time we also introduced new joint offers with the Pensando silicone and software with our HP ProLiant servers and since then we have learned quite a bit right so which inform us what the next step should be and that's what we hear today to talk about not just the work we have done around the distributor services cards as we talked about it in the past but now the distributor service is switching which we believe is another market in transition opportunity for us to disrupt as we go forward so John speaking of transitions you've seen a number of industry transitions dating back to you know my East Coast days yes but so what was the wave or the waves that you saw that sort of led you to this new venture to the partnership with HPE well the exciting part is Antonio and I can almost finish each other's sentences you compete against market transitions enabled by new technology the biggest transition of all is the clouds moving to the edge the computer moving to the edge your storage security your software applications etc and we saw this wave together and when you talk about what's changed in the last two years I think it exceeded both of our expectations how where our teams work together we outlined audacious goals of a hundred million in terms of orders within the first two years and we hit and exceeded that we said we're going to be in a billion after three years after we had a hundred million we're on track for that and if you watch our dream of democratizing the cloud giving the capability for any major hyperscaler to compete within Amazon Web Services originally with them and now bringing it down to any enterprise or any government agency be able to do it and the ability to do this as a team is what's unheard of in innovation is hard to move with speed two companies to move together with innovation and more focus on the outcome than anything else our teams work even better than I thought we we could and I think you're seeing today the next major phase that we make where we take these concepts and we're going to revolutionize the switching industry every 10 to 12 years there's a chance for a major change and you get through that and often the incumbents don't change we're going to get through this we think very very well and we're again setting a tremendous challenge to the market with you know in liberty software and silicon and programmability throughout the whole architecture and results that I think even surprised our engineers a hundred times the scale of the nearest competitor in the market today at 10 times the performance at one-third the total total cost of ownership and Tony and I can even sell that with that our teams are functioning well and it's that ability to see markets and say how does your partner win that culture is so important to us in terms of the direction it's already a chime in on this because you for years have been talking about the great basically redefining cloud not just a remote set of services somewhere out there in the cloud but connecting to on-prem and hybrid multi-cloud out to the edge is that the big wave that that you see here is that what you're writing definitely is one component of the wave I think the other part is remember what I said in 2018 when I became CEO of Hewlett Packard Enterprise that the enterprise of the future will be a century cloud enabling data driven and through the unfortunate events of the global pandemic right that has been validated right we live now in a much more distributed and you know enterprise than ever before the original architectures that John obviously pioneered for for decades you know you have the data center and you have the campus and the branch now you have this extension called the micro branch the micro branch is our homes our home offices right but now what happens is that the cloud obviously is here to stay because it's all about speed and agility but it's also important that we define cloud correctly which is an experience that we should bring for all the applications and data and what we see that the vast majority of the data is created at the edge where we live and work here we are you and I and John having a conversation there is cameras everywhere taping this there's a lot of bits being created and those are bits I hope I value when people watch this but but to me that's the the big opportunity to really disrupt the cloud as we know it and bring that set of capabilities closer to what the action is the second part of this which I think is important is that what we saw with the consumption of it and this is where you know we have a vision to become the edge to cloud platform that you can consume as a service and that's our HP Green Lake offer but the other service offerings taken off to a level we have not imagined and it's not just the fact that the public cloud is there is everything whether it's in your premises or at the edge and that's why I'm so excited about the partnership with Pensanda to disrupt these age to cloud architectures with a know how that we have our go to market in the as a service model to accelerate those markets in transition you take the excitement of a company that's reinventing itself and you think about HPE they are literally the original Silicon Valley grad startup so much of what is great about the valley they brought Lou Platt who was the CEO at HPE when I came to Silicon Valley and nobody knew what Cisco was much less the internet they thought we were a food company I called up Lou and I said Lou I need help I don't know the valley teach me about how you've been successful he not only met with me once he met with me for three years at the end of the three years he said I said to him now we're really cook at this time we're going out of control becoming the most valuable company in the world for a while and I said Lou what can I do to pay the HPE back and he said very simply John give back to the next generation that stuck with me forever the values of a company the leaders where there was Lou whether it was the original leaders of the company or Antonio their cultures and values are so much aligned so we have a chance to change the market together I was all in and you know while we competed a little bit it in the past it was very little and now we have a chance to change a whole market and take on the John's and perhaps really disrupt the whole industry that gets exciting we've got a team that is built eight billion dollar products per year eight different times now we're going to do it a ninth and maybe a tenth together and to share that is truly exciting with a world-class team at HPE so let's talk a little bit about HPE Aruba and Pensando where you guys are going you started sort of at the core two years ago and I think you know I think Aruba in some regards is misunderstood I mean you're basically building a major cloud strategy around that stretches to the edge so what is it that you are trying to disrupt here maybe give us a little insight as to the industry transitions that you're seeing yeah so first of all Aruba is doing incredible well I mean if you see the our latest results yeah growing between 25 and 30 percent on a year-over-year basis we have improved profitability but what I'm really excited about is that our value proposition a mobile first cloud first approach is resonating with customers when it comes down to connectivity and analytics so to me that's an incredible value and in order to become a cloud company we leverage the Aruba infrastructure that was developed over the years to build a subscription based model to connectivity and extend it all the way to what we call the cloud which for us is the core business that now with John and his team we are changing the architectures around those are those components of the the solution so Aruba has been incredible foundational not only to grow the company but also to give us the foundation technology to become that H2 Cloud company so what we're doing with John we are taking out this new architecture to the next level of the the entire solution so we started with the server business we integrated these distributed service cards and now we are taking it to their rack level architecture and eventually to the you know data center architecture in a true H2 Cloud environment and that means we are introducing the distributed service switching technology which is again is a joint innovation between the Aruba IP and the Pensando IP which we think with John will change again every 10 to 12 years that switching market and it's fun to take on the big comparison bring them down which I love doing and it's also unique to see how fast our teams are moving together our cultures are very similar and we set audacious goals for a team and so far they've been exceeding them so you know a little bit about this networking market is this a is this a new category of switch is this how unique is this well I think it's all the above it's Antonio use the word platform and architecture it's a distributed service platform that now is going into switching as well its ability to redefine everything with software in silicon and that's a lot different than what the industry seen before and to move with speed in terms of software defined program ability everywhere everything automated and simple simple which makes it so easy to start how simple all you do is plug a server in to the switch and you look at what we're doing together already with the HPE servers and how you literally add value on top of with the distributive services card and platform so you see it all coming together how big could it be I think it will be the next generation and truly not just the cloud moving to the edge but internet working security how low balancing all comes together that really is going to change an industry group so I think it's going to be the next big product for the whole segment of the industry and I think it will bring tremendous value from the company obviously we love the technology and these these markets but ultimately about from the customer's perspective is less less capex because they don't need to add lot balancing and all these things that are costs and actually friction points and point of failure but also optics because to the point that John said right it's all about simplicity and automation and awareness around the the application and also the the infrastructure that ultimately we want this to be autonomous and intelligent so therefore is that an opex reduction on the runtime to it go ahead John it's in many ways future proof it's an architecture for the future not for the past when you get your peers that talk about scale in low single digit thousands and we talk about scale in millions you talk about performance that literally is tenfold in order of magnitude better and you build an architecture that allows the market to go where they want with easy use for your customers that's about innovation with speed that can lead no small company or no large company probably could do by themselves I think very few people in the industry would have the courage to do it but probably not the culture to remake it work well talk about HPE Pensando I mean you got small company big company and you guys have been at this now for a couple years it seems to be gaining momentum that that is in and of itself unique why HPE and Pensando well I think again start with a thesis that John and I share about the future as John said it takes courage to do these things and ultimately culture is everything well we jointly realized that the way we think the way we work is very similar these are two companies that are very engineering driven and everything they do but they put the customer at the center of how we think about the future and it has been amazing to me in fact I we connect every handful of weeks to check what we are and I keep you know in many ways here's the larger company in many ways it's pushing the smaller company to go further and faster and to me is all about speed so we think about what makes a strategic partnership work it has to be really material both sides in other words it has to change in industry HPE is done an amazing job you doubled your profits in the last four years and you're reinventing yourself again and again but it's a common vision of where the markets going to go as Antonio articulated very well when goes to the edge green lakes gonna be your delivery vehicle for it it's about bringing together all these technologies into one not individual appliances or approaches you do load balance and you do security you do skill and you do networking and it's about the best of each company saying how do you help the other country be successful when our teams are together other than their accents usually can't tell who's from HPE and who's from Pensando how should we be evaluating the progress over the next several quarters months years one of the sort of benchmarks we should be looking for well I think the most important metrics customer relevance in my mind the financials generally tend to follow that because if you're relevant is you know we were talking in our teams you know are you important your strategic right generally we are very important what we do matters but we want to be strategic and I think this joint innovation will catapult us to be way more strategic in everything we do so it's customer relevancy obviously from the financial perspective we both have an idea to create multi-billion-dollar businesses otherwise why doing it right so and in the market is huge is huge I mean you know Dave that obviously we are living an amazing time where data is exploding everywhere right and I think this is just a starting point right so we obviously start with an idea and a thought and a specific focus but if you think about the next generation is create data fabrics that are secure and then you can run these models with the AI machine learning that scale the network fabric becomes the core of everything you do right so think about it the way you ask the question it's been two years as of the announcement that we're making jointly since we made the announcement two years ago we've overexcited every expectation it starts with the customers as you said Antonio how many of the large customers do we have two years from now are we in the same leadership position like we are with the first generation of the distributed services platform and have we got a number of the very largest accounts in the world committed to us and are we still one to two generations ahead of our newest competitor two years from now like we are today with our current card capability and platform capability pretty cool partnership thanks so much guys for helping us kick off the power of and really appreciate it thank you the right there's your Betty we've got thank you a ton of content you're going to hear from technologists how they're trying to change the 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