 Okay, we're back here live in New York City. This is siliconangle.com and wikibond.org's coverage, exclusive coverage of HP Moonshot where the game is changing at the server, data center, cloud mobile and social and inflection point where the transformation to a new modern era is occurring and HP is leading the charge. I'm John Furrier with SiliconANGLE. I'm joined by co-host. I'm Dave Vellante at wikibond.org and we're here with Lakshmi Mandiam, who's with ARM. She's the director of server and ecosystems and Mark Andreessen I think said software is eating the world, open source software is eating the software world and ARM is eating everything else. You guys have just been smoking hot company, created unreal innovation and welcome to the queue. Thank you. Thank you for having us. Yeah, so we were here at 2011, the original Moonshot announcement and you guys kind of got this whole thing started with HP. So a lot has happened since then. Yeah. We'll update on ARM and we'll get into some of what you're doing. It's actually been a really exciting period from the server program perspective. I mean, think about, you know, fourth quarter 2011, it wasn't that long ago, even though we feel like it was long, it was only about 14 months and we've seen this groundswell in terms of ARM and servers. So it was exciting for me personally today watching three of our partners talking about server cartridges for the Moonshot program. I think originally Calzada was the one that was announced but we've had TI, Applied Micro and Calzada and I think the beauty of it was that each of them brings their own special sauce to the equation and I think that's what this whole launch to me has been about in terms of people thinking about the server and the data center paradigm completely differently and how can innovation occur on, I think you talked about workload specific optimizations, heterogeneous processing, all of the elements that ARM and partners are used to doing in other spheres of operation are now coming to the server. I think that's great. Our colleague David Flora, of course he's from England, he calls it horses for courses. That's right. I've heard that a lot at work. And so we see, is this the end of the one size fits all kind of vanilla server world? I think it's certainly a step in that direction. I mean, if you think about the real world challenges that people are facing, you know, they cannot afford to waste even a single watt in terms of trying to sustain generic general purpose processing. And I think the benefit of the ARM architecture is you kind of get the benefits of standardization and being able to run generic workloads, but you also get the benefit of heterogeneous processing and specialization, for example, applied micro talking about their networking and connectivity background, TI talking about their DSP and signal processing background, and of course, Calzada talking about integration of storage fabric and ethernet switching and all these kinds of things. And there are other partners that are part of the Pathfinder ecosystem that were mentioned like, you know, Marvell, for example, has expertise in storage. And so there's a whole bunch of different partners that have expertise in these various domains. And now as we're seeing this application convergence happening, they're able to bring those, that expertise to bear and take advantage of standard ARM server platforms with that special sauce. And I think that's what's going to make the world of difference. So oftentimes when you see a new market emerging, it's highly integrated. This one seems to be starting off disintegrated and very specialized. Now perhaps, you know, in mobile, it started out fairly integrated. So this is a natural outgrowth of that trend, and can the market support that much disintegration? Well, I think that, you know, where there is a need, I think, you know, and I don't think of ARM as only playing in the specialized parts of that equation. I just think the new normal is going to be more integration. And so I think ARM is just very well positioned in terms of the partnerships that we have, the processor technology that we're bringing to bear. And it's not just about processor, it's also about process technology as well. So, you know, we have multiple FAB partners that are talking about 16 nanometer and below FinFET designs. And so I think it's the entire ecosystem of innovation that's come into play. And I mean, we talked today, I mean, there are other partners that have announced 16 core ARM-based designs that are going into networking and other applications. So I think you'll just, you'll start to see more and more deployment of the ARM architecture pervasively in enterprise spaces, not just the servers. Yeah, so when did this all take us back to sort of the inside baseball many, many years ago when ARM said, all right, we're really doing well and, you know, the smartphone space. And, but we see a much broader application for this. Was that day one, you know, was it sort of evolved from, you know, customer demand? It's kind of interesting. It's a bit of a combination of both, you know. So we've, I think, really the server activity probably started about four to five years ago. And we actually had an OEM that called us and said, you know what? I'm running out of power. I'm running out of space. I want to really look at using your technology because, you know, obviously being battery powered, I was just telling someone earlier today, I took my Windows RT-based device to China and I couldn't charge it every day. But it wasn't catastrophic because, you know, it's an ARM-based server. And so mobile and having that power envelope really helps. Well, or else. But essentially, you know, having the battery operated, you know, philosophy in terms of your design just naturally leads to more energy efficiency. But also in terms of having to navigate down the cost curve and have more and more integration, you know, that helps as well. And so really I think, you know, I think Dave talked about it this morning about how the ecosystem is now being driven by mobile and tablets. And so, you know, we've had people that have called us and said, you know, how do we take advantage of the power efficiency, the integration and the cost curve? And I think just the intellectual capital in terms of people investing in the ARM architecture from, you know, your software engineers that are developing on the ARM architecture. I mean, we had 8.7 billion chips shipped last year. That's just, the numbers are astounding. It is astounding. It's a volume game. And also it gives you advanced visibility into the software innovations that are going on. So can you talk about the software activities that are going on in the ecosystem? Absolutely. So if we think about where, you know, we have gotten traction just specifically from the service space, it's really been around open source. And I think back in, I want to say it was 2011, we had partners, you know, running Ubuntu, you know, Canonical announced a commercial deployment of Ubuntu and long term support for Ubuntu. And so has Red Hat has also demonstrated. And so what we're seeing is that that kind of open system innovation has been occurring. And I'm actually invested in a not-for-profit company called Lanaro, which is focused on Linux innovation. And this is a great example of our business model because it's arm and partners collaborating together, sharing engineering resources to drive innovation. And so last fall we announced the Lanaro Enterprise Group. And this was focused on server software. And HP is a member of that. And so, you know, we had 14 companies that were part of that, HP, Facebook and others. And so you can see this kind of collaboration trying to accelerate time to market. And I think Dave talked about how now with this new Pathfinder ecosystem that they have, they expect to be able to get things three times faster than they could historically. And this is again an example of where they're not reliant on historical cadences or limitations in terms of the ecosystem to be able to drive innovation. Yeah, so HP, obviously, leader here out in front, but presumably you're getting inquiries from other large OEMs. There's definitely a number of servers that have been announced based on the arm architecture. There's been a commercial rollout of a storage server based on the arm architecture. So there's quite a bit of activity that's ongoing. And I think, you know, we've had our partners, Calzada and TI and others, that have systems out there now. And of course, Applied Micro is also bringing out the 64-bit system. And I think you'll start to see more and more partners come out in terms of their solutions based on 64-bit architecture. And I think you'll see. We had Ian Ferguson on our last moon shot, just to get some of the video here. But, you know, take us through from that time 14 months ago to today, and also talk about the software market that's changed. Obviously, we don't want the software to find data center. The servers are a big part of that, the programmability, some of the efficiencies in management, all that good stuff. What's happening now? Where's the demand that you see in the marketplace that's you guys are addressing? Can you talk about some of those key changes that's happened since 14 months ago and kind of where is it going in the next couple years? Yeah, so I talked about having Oracle, for example, announcing Java support for 32-bit ARM processors. And last year, they mentioned at TechCon, which is our show, that they would support 64-bit. And so you're starting to see workloads like Hadoop and other things that are dependent on open source and Java, for example, being run now on the ARM architecture. And so we're starting to see a number of different workloads. I think earlier today, several people talked about tuning their workloads specifically and even looking at how they can optimize their workloads. So we see that pervasively in storage servers, data analytics, content delivery networks, all of these different areas. And the main driver is energy? Well, actually, it's not just energy. It's really around total cost of ownership. So when I say that, OPEX is one aspect of it, which is the energy. But it's also around performance density. And I think today, they talked about how they want to achieve greater and greater performance density. So it's really about saving floor space, saving facilities, power and cooling, saving cost of acquisition in terms of reducing the number of components, increased reliability because you're not now dependent on one server now. So I think it's all of these. Yeah, we have people on Twitter basically saying, that's all gray, but that's not software-defined servers. Right. What is software-defined servers? I think people are defining what software-defined servers are. It's not defined yet. So it's software-led. That's what we always say. So it's not yet defined. And I think the beauty of software-defined is at the end of the day, the end user is going to drive what is software-defined, right? And that's driven by the apps. Yeah, it's driven by the applications. It's driven by the kind of workloads. Well, you know, when I come back to the hyperscale space, and to me, those guys are software-defined because they just want to commoditize the infrastructure and they want to automate everything. Exactly. No humans. I would consider that software-defined, and I would consider the traditional enterprises, anything but that. So now there's aspects of that that they want to get to. And I think a portion of the enterprise, you know, will. But it's going to take some time. And then, of course, the other thing is they're going to have to rely on either suppliers like HP or Oracle or whomever, software companies to deliver that, or they're going to go to the cloud. Right. Talk about how you see those two, or do you see those two worlds, that hyperscale world and the traditional enterprise coming together, are they going to blend? Are they going to stay quite distinct for some time? I think it depends. You should be an analyst, by the way. No. Okay. Okay. But it does depend, right? Are you hired? No. We are, actually. So. We're looking for a software-defined. We need more time. So, so I actually think that, you know, long-term people can't ignore this trend, right? You look at, there's been a bunch of reports that talk about how most of the workloads in the future are going to be cloud-resident. And if you think about cost of, you know, for a small, medium business, you know, is it going to be cheaper for them to deploy on the cloud or deploy on their own enterprise? So I think enterprises will have to start looking at how, because I'm sure CIOs are going to say, why can't I go and deploy on Cloud Service X? You know, what benefit are you bringing for me? And so I think enterprises will have to respond to either rethink the way they're doing business as an enterprise, or think about options where maybe some workloads go to the cloud, some stay in-house. So I think there's going to be a shift in the way people are thinking about how to solve these challenges. And the innovation, this is what I love so much about ARM, is because the innovation is all coming from consumer. It's coming from the web-scale giants. And their harbingers, they're showing the traditional data center. It's not only the CIOs. I'd say it's the CEO who's saying, why am I a Facebook at home so easy? My Gmail is so easy. Why is it my Enterprise IT? We understand why. It's like the user experience. You hit the nail on the head, right? So I'm used to using my tablet, my mobile device. I'm able to drag and drop things and make things easier. So in the end of the day, I want that experience everywhere. And that experience today is on ARM. Right. And I think that's why it makes it easier for people to think about duplicating that in other areas. So do you think we'll see that experience in the traditional data center over the next decade? I hope so. I hope so too. I mean, the complexity in the back end is still very high, but from a user standpoint, you guys are at the heart of that. Exactly. And I think, again, this fundamental shift of always on, always connected today. We've all been on Twitter all day. Right? I mean, that's just the way life is now. And I think people are starting to look at economies of scale in terms of making that experience better for people. An utilization too that's come up too. I was having the ability to have low power, high performance, variable based workload management. It's really orchestration is key. It's key. And I think this big debate about, again, the many, I think Carl Freund talked about it earlier, you know, having many nodes that deliver, it's really about performance per watt for the end user. It's not about anything else. Yeah, it's going to be funny. I think, you know, Donna Telly's right, we're going to look back at this time and say, hey, you know, remember when we were talking, we had those chips and all that power in it. Yeah. I think telematics, all those technology at the edge of the network is producing data. It's connected. It's amazing. And this is an obvious path. Yeah. And I mean, other markets are doing it, for example, base stations, which used to have many, many complex processors are now going to a base station on the chip. We've had server on a chip from some of the ARM partners that talk today. So I think that's just, it is SOC, and how do you innovate in the SOC to deliver the best performance per watt or best performance per dollar, whatever your metric is, and I think ARM, because of the breadth that we have, can compete on any of those vectors. Yeah. And the metrics are changing. I want to talk about competition a little bit, because you guys are obviously very disruptive. And of course, we've seen, John and I are a little older, and we've seen all kinds of disruptions over the years, but the guys who got disrupted in the 80s and 90s were kind of dumb and arrogant, and the guys that are being disrupted now aren't, and they have a lot of money, and they have a lot of resources. So talk about the competitive dynamic that you're seeing today, and how does ARM stay ahead? How does it compete with the big whales? You know, at ARM we have a really, our whole business model, and I think this is what is really well aligned to what HB was announcing today. It's really about partnership and ecosystem. And so when you think about ARM, it's not ARM, it's ARM and partners, which actually we have a thousand connected community partners. So it's ARM and partners. And so I think the other aspect of it is, because of the way the IP is developed, and the way we have a very long-term view. So things that I'm working on, I'm really looking at 2015, 2016. I'm talking to people about their plans for 2015, 2016. So you really have a long-term view in terms of where people are going, and you can predict trends and innovation. And I think we view our success as our partner's success as well. So it's not just a single entity ARM, it's ARM and partners. If you think about where people can optimize, so people like Calzada, for example, are optimizing on performance with a balanced I.O. and Applied Micro has said, hey, we're going to go after the super high-end. So if you think about... You're specializing in use cases that they can really get a position in and grow. Right, exactly. And so we scale. I mean, we scale from microcontrollers that are in your, you know, light switch at home to, you know, processors that are going into servers and base stations. So I think it's the scale and the ability to pick your optimization points. So it's not just a single entity. It's many working together and collaborating. And I think that's what the difference is. Yeah, and you guys are in it for the long run. Yes. I would say, I mean, you're pretty much at these levels, I would say pretty much acquisition-proof. Not that there's been a lot of speculation there, but one never knows. But no, seriously, I mean, you're trying to be one of the next big whales, right? Absolutely. With a little bit more speed, I presume. Oh, yeah, definitely. I mean, I think, you know... Less power. Definitely less power. Fast swimming whales. Maybe like a sleek eel. How about that? How about we go with a sleek eel or something like that? No, but jokes apart, I think we're definitely focused on the long term. And if you think about it, you know, we're still shipping our Arm7, which was invented in 1993 or something still in pretty high volume. So, you know, the reason that people look at Arm also is because they view us as being a long-term strategic partner. And I think that's fundamental to the way we operate. All right. Good. Exciting stuff. Huge volumes. Big disruption. Lakshmi, thanks very much for coming on theCUBE and sharing your thoughts with us. Yeah, thank you for having me. I really appreciate it. Okay, we'll be right back with more great action here and wind down and get all the action from H.P. Moonshot, right handed down, John Furrier with Dave Vellante here. It's looking at you. We'll be right back with our next guest after this short break. Thank you.