 Okay, we're back live here at HP Discover 2012. I'm John Furrier, the founder of SiliconANGLE.com. This is theCUBE, our flagship telecast. We go out to the events and broadcast live and HD to signal to you. And we track the signal from the noise and share that with you. It's our independent coverage of HP 2012 and we're proud to bring this to you. Second year in a row, I'm John Furrier, the founder of SiliconANGLE.com. And I'm joined with my co-host. I'm Dave Vellante of Wikibon.org. And we're here with Kaphir Godric, who is the lead of innovation, the head of technology innovation at HP Technology Services, as well as the CTO of HP Technology Services. Welcome to theCUBE. Thank you very much, good to see you guys. So we're here at Discover, John, talking cloud services. We love the services angle, right? Yeah, we have services angle.com. If you're watching here, go to SiliconANGLE.com, which is our general main site. That's the reference point for tech innovation, but we have two separate publications. One is servicesangle.com, servicesangle.com. That's the CIO, that's the business of services, consulting services, customer services, new web services, internet services, mobile services. And then we have devops angle, devops angle. And that's more of the technical side of it, the emerging node.js, Hadoop, big data. A lot of them are the technical agenda. Dev meets ops, ops meets dev. So it's really about the human technical side of the CIO's agenda. So I guess my first question is, what is the CIO's mindset right now? You talk to CIOs all the time, you're doing a lot of one-on-ones. In some cases, it's giving them an early roadmap into cloud and big data and all these converged solutions. And on the other end, you have some high-end, cutting-edge, bleeding-edge CIOs. But give us a general feel for the range and the mindset of the CIO. My discussions with CIOs nowadays, they are related to their future strategies and certainly a lot of things on their mind, of course, as relates to the topics that you just mentioned. But first of all, in my observation is that CIOs, they are occupied with what's happening in their own company. I think there is a business segmentation happening nowadays in the enterprise where basically CIOs, they are requested to realign their whole lines of services and moving a little bit down accountability into the reorganization, resegmentation of their organizations. Organizations with, you know, out of the U.S. organizations with 100 to 1,000 business units, believe it or not, they are going to several tens or maybe less than that of business units. And in the U.S., organizations, they are going under 10 business units into their resegmentation. By doing that, there is a huge opportunity to basically a new type of synchronization between the IT and the business units. So this opportunity allows them not only to utilize the newest technologies available out there in order to improve cost at the end of the day, but also, you know, it's a challenge, right? It's creating to them this challenge that they need to figure out how to do that. So we're talking here, discovered, you know, about cloud and big data and burst and stuff. And CIOs, they are requested by their organization to go outside and try to sniff out into all this amount of data that is available out there and certainly they need the right resources. So, you know, I believe that this internal run together with the optimization and what is available out there in the IT in order to make them successful, that's the challenge. We, if you did a survey recently and asked cost practitioners in the Wikibon community, what initiatives are you going to use, for which initiatives are you going to require outside help in 2012? And I think three out of the first five were cloud-related cloud deployment, cloud management, even cloud strategy actually popped up. And then big data strategy was very high, not a lot of big data deployment, not a big data strategy. Are you seeing that in your base in a lot of requests for outside help in those areas? So everywhere around the world, these are exactly the topics that people are talking with us. Together with the actual data centers and what are we doing with the data centers? People, they are saying, okay, so we are going towards the cloud, where are we going to create this thing? Inside, outside, so we are looking to give the customers the opportunity to create, you know, one platform to utilize, you know, everything that they are creating in-house and on the cloud. And the question is immediately, okay, so how about security? What I'm going to do with that? Where I'm going to host the big data, you know, we publish that we are running something like 50 petabytes of data with our autonomy business only. So if you think about it, that's a lot of data. Customers, you know, enterprises, they are starting holding these amounts of data too with the time. So it's issue of the amounts of data. You need to talk with them about that. It's issue of speed of data. And we announced here, you know, about our new capabilities to go to 100 terabytes per hour. You know, it is pretty amazing if you think about it. So speed to data, that's something that we're trying to solve, so it's not only, we hear about it, we're trying to solve the problem as we hear about it. And certainly when it comes to the types of data, the idle 10 products that we were talking about, we're basically utilizing one layer to look into the structure and unstructured type of data. This is kind of what we're coming back into the customer's solution wise. From the point of view of the consulting, I agree with you. You know, people, they are going out there and they are saying, hey, you know, data centers are going to disappear. CEO is going to see, I say, just one second, everybody saying data centers are going to disappear, you want to build more, doesn't make sense. So it's kind of cash 22, right? So the CIO is going backwards and he's saying, just a second, what are we going to do here? So data center, not only that they are not going to disappear, they are going to be more data centers. You know, if you're looking at data center market and I'm looking, you know, starting to get away from the data because we're in a crazy amount of data going on to market, but just look at the bottom line, at the megawatts at the end of the day, at the power of all this industry is taking. It's 31 gigawatt of power worldwide. 31 gigawatt of power to give you an idea is the whole residential power requirement for a country like the UK or France or Italy or, you know, Western European country. It's a lot of power, but that's not the main point here to make you understand what I'm talking about is the gradient, 19% this year only growth. What is 19%? It's mostly hardware that is supposed to basically handle the data and store the data, right? Network is not so heavy in power after all. It is a part of it, it is not so heavy, but you know, compute is heavy. And of course, storage is going, yeah, storage is growing, you know, 35% to 55% per volume this year only. It's a huge growth of 19% of all per year. We are doing a lot of data and data processing out there. Not for sure. Yeah, so one of the areas obviously that CIOs used to be concerned about, and I'm sure still are, what I mean to say is it popped up on surveys all the time with security. But we noticed this year, you know, it's still up there, but other factors are taking over. Do you feel like CIOs are becoming more comfortable with cloud security? I tend to have an opinion on this one that it took me a lot of time to build it there, but you know. Yeah, well we're trying to figure out, are they just sick of talking about it? You know, I see this statistic, 65% of CIOs they are concerned of security and this is why they are not going into the cloud. I tend, you know, speaking with people and implementing things. If you are serious about going there and you are serious about implementing these kind of models, you need to go with your security, with your security, you know, kind of towards military encryption standards, because you know what, it's with all the cyber crime and cyber wars and cyber security going on out there, people are going to get more skilled, so maybe not 65%, maybe next year we're going to hear about more from one hand, from the other hand, they need to take care of the business, right? So how do you do that? So you're basically implementing more encryption into your security, you're utilizing algorithms that are a little bit smarter and literally, you know, military encryption type of algorithms, they were going to help you out to get into this if you're serious about going there. Now the other thing that we've noticed is hybrid cloud. So last year we did a survey, very few were saying hybrid cloud was the predominant cloud strategy, less than 10%. Today it was almost 40%. What's changed in a year? First of all, are you seeing that and what's changed? Overall, I am not taking those serious these numbers that I'm seeing out there because one single reason, if you're looking to that, last year we've been with the whole story of the cloud at number one in the world. This is number nine, I believe, in most of the top 10s if you're looking into that. So I believe that, you know, because we are a little bit late, overall as a market with platform as a service that is supposed only next year to get into the real availability at the point where we want it to be. So what happens is that, you know, I think that till next year these things will fluctuate here up and down and till the point that we're going to make it sure. So what we did on this one as a company, you know, we converge ourselves, we basically say something like this. We are going to take the same thing that we did for converging infrastructure. So we create a framework if you want and it took us several years and we filled up all this framework with everything required. So converging infrastructure is definitely, you know, the way to go into the cloud from, you know, otherwise and management wise. Now the question is, what are you doing with the cloud itself? So we create this thing called converge cloud. So converge cloud right now might look, you know, that is a framework, but we are going to fill this framework out very fast. Believe it or not, you know, the market is, as you say, so we're seeing these fluctuations, what we're doing right now, staying away from the fluctuation, they create the framework and create solutions. So that's our focus right now. So we talked a little bit before about the data. I want to go back to the whole big data thing because it's obviously a hot topic. It's the hot new buzzword, very hypey. We love it. That means we're going to be covering it. Absolutely. Hype is good for media business. That's right. So when you talk to customers, when you talk to customers, but okay, well, so here's all the hype. What are you doing around big data? Do you have a handle on your data strategy? And very few do. So they're looking for help. How can you help? And what are the CIOs talking to you about in terms of their data strategy? I think the hottest thing for us nowadays is first of all to the customer to understand what Idol 10 is all about. And then for them to be able, and the next step is for them to start being open and saying what kind of data they would like to look into it and what would they like to see outcomes coming out of it? Because I think it was Harvard Business Review, they say about this thing about big data. That big data in order to be big needs a big check on the output if you want. They're going to have all kinds of things. So you need to decide what you want to get out of it. So people are sniffing out in order to understand mostly customer's behavior and to try to push more into the customer and to try to stay away from all kinds of things. So what we are requested by people around the world is basically first of all to tell them what is our capabilities and how we are doing that and how we are correlating things around the big data. And certainly right now being able to utilize one platform for structure and unstructure, it's a big advantage. Then the next thing is, and this is where we are struggling a little bit more, it's for the customers to say what they would like to do with that. And this is the story, every time it's kind of a penetration story. You're getting more into the business of the customer and then they start sharing what they want to do with it. So I think it's a step by step, but we've been very successful with the implementation of these packages and some of the largest customers around the world. And I think that we are going to get better and better. Right now we are taking this and we are spreading it with languages around the world because it's all about also, it's very dependent on the content itself. So it's the types of the data, but also what kind, you have all kinds of languages. I believe right now we're in something like in 10 languages, very successful doing, what we're doing there, but we are doing that more right now. We are going around with more languages and that's one of the things that we are doing on our side. What's the biggest question you're getting from CIOs around big data? What are you guys, how are you guys able to help me out out there? Which is big data, that's the biggest question that we're getting out there. So first of all. So you're saying basically they know they got to do big data, but they have no real understanding yet. Not majority, they do not have this understanding. And the other thing is, I believe that they are confusing algorithms of big data and things that we can do with what you are able to do in all kinds of search engines. The way that search engines, they are utilizing data analytics, which is totally different from what we're doing. We are going down into the content rather than playing with things that are relatively simple into the search business. It's simpler than what we're doing. Great. Well, Kaphir, thanks very much for coming inside the Cube, it was a pleasure meeting you. Thank you very much. Appreciate it, great job. Thank you so much. Thank you very much. The services angle, Dave, is important. We're going to drill more into that in these spotlights. Appreciate you coming on board. We'll be right back with that for the short break. And this is the Cube SiliconANGLE.tv's exclusive coverage of HP Discover 2012.