 Okay, we're back live here at SiliconANGLE.tv's. This is theCUBE. We're live at Brocade's headquarters in Silicon Valley, California. And this is our flagship program. We go out to the events and expect to see them from the noise. And this is the Brocade Technology Analyst Day where they're announcing their new technology to net fabric technology and products. And my next guest is Jesse Jones with HP Enterprise, Global Enterprise, what's service? Services, HP Enterprise. Obviously you guys have a huge footprint and out there, so tell us a bit about what you're doing here at Brocade and some of your relationships with Brocade. All right, absolutely. One of the things, and one reason is, is we provide a service to over 160 data centers. Globally, we provide what we call a leveraged infrastructure which is essentially, you get a bill. The clients get a bill. So one of the things that we have to ensure that we are running on a complete stable infrastructure, in other words, best in breed, best in the industry so we don't impact our clients on the other end. I'm here at Brocade because of course, Brocade is our sand partner and also provides us and works with us and partners with us to ensure we have a stable, reliable, sustainable infrastructure. Tell us about what's going on in the marketplace and my trends standpoint. So obviously we have a site I put a plug for at servicesangle.com and obviously, we're seeing a huge change over from how people are delivering services with cloud and mobile, for example. And there's a huge growth of data. So data protection, backup and recovery have been around for as long as it's been servers and storage, right? So, but now even more importantly is seeing big data. Big data. Bringing the notion of low latency, data access, tiered storage. We've talked with HP's three par over and over again about things like that. But right now, from the enterprise standpoint, they got to grow and deploy all these new solutions. How's that changing some of the service impacts? Basically, it really doesn't because what happens is the industry and the other partners that we work with, as well as our own internal products, understand that their products are part of our solutions. So when they're designed, they're architecture, this, the, we look at it as the future. So in other words, it used to be where products thrown at us go build a solution. Now it's here's the solution and they come in with a product going, does our product meet your solution and we look for the, you know, we have to consolidate a lot. That's the big thing. A lot of the old iron out there needs to be reduced. That frees up a lot of the, what I call the overcrowding of the data centers. Reduction import counts. Not tearing things in and uplifting up but basically we like to migrate onto new and better stuff. What are the biggest challenges that you're seeing with your customers out there? Obviously Brocade sells a big problem with their fabric and they got to do the fiber channels, stuff going on. What are the biggest challenges right now with data centers? Obviously footprint's a big one. Footprint, footprint. What are the top three challenges and opportunities? One of them is migrations, being able to get off the old stuff. Years ago, they were sold. This stuff would be there forever and you know and I know that's not true. So migration, being able to, you know, migrate seamlessly behind the scenes to get off of something that, you know, it's 10 years old, is a problem child because you're really running, you know, your production application. So seamless migrations is another one. The ability to reduce their headcount and their floor space and their data centers and move into a service type offering. Because it's a lower cost, they don't have to have all that infrastructure. We manage all of that. Yeah, I mean, we've always used the expression it's like changing an engine of an airplane while you're at 30,000 feet. You got a lot of old stuff and you got a lot of new explosive stuff, modular, data center, end user computing with mobility and you know, flash is changing some of the architecture. So obviously the data centers are evolving. Right. What are you seeing as the most pressure points for infrastructures? As far as... In terms of like this changeover. So we, you know, we've talked about this modern era. You know, people are moving faster. You know, Moore's Law, we just had Intel IDF yesterday talking about the future stuff around data center and storage and it's smaller, faster, cheaper. It's been Moore's Law and with higher performance and you know, lower energy consumption. Obviously energy consumption is a big deal but you know, they still got to operate their data centers. It's still a huge OPEX cost. Oh yeah, OPEX is not going away. What are some of the trends in the OPEX side to get that down? Basically is being able to globally manage the infrastructure. So instead of a single data center, you know, you have to have a person or each data center have their individual resource to run that data center. You can do it from a global perspective to push out things, to automate things. Tools automation is number one right now is the big push. We have to have it because we don't have humans to do it anymore. And the tools have to be reliable. I mean, you know, when you're moving people's data around and it's moved the wrong direction, you know what happens with that. HPs know, and I see with being in the services business just give some of the highlights of what's happening right now with HP and services and the services portfolio that you're dealing with. Right now is bringing cloud. I mean, you know, essentially it's kind of funny because everybody keeps saying, well, cloud's new, cloud's new, and HP Enterprise services. We've been delivering cloud. The only difference between our cloud and the real cloud is the portal. Because behind the scenes, you get a bill for services that we deliver on your backup. Come on, it's all a big cloud in the background. So getting those two together, working together to have an enterprise cloud and to move forward on that because you know we're going cloud. This is the first time there's a terminology that's not a lightning bolt. Exactly. What are the biggest misconceptions around cloud in terms of what you guys have been delivering? I mean, you talk about cloud being kind of behind the scenes. Yeah, I mean, it's basically called networking and compute and on-demand kind of infrastructure. Just grab it when you need it. It's there, you know it's out there, but you have to guarantee it's out there. So that's the big, what I consider a critical point. If a client needs something, that cloud has to contain it. And like I said, you don't want a lightning bolt hitting you on the way out. So let me ask you another more philosophical question. So looking out over the landscape of services over the past couple of decades, we've seen it evolve. Client server really kind of brought us into this world. We saw the big guys deploying SAP deployments, all this stuff and so on the app side, it's been these multi-zillion dollar deployments. Now the time cycles are shrinking. So with all that kind of background, now we get cloud mobile and socials, big providers of new apps and all kinds of new things. What do you see as the biggest disruptions out there? Who's going to, who's being disrupted the most? Is it the orchestration players? Is it the CIOs? I mean, where's the disruption? I think it's the CIO level. I mean, every time they turn around and get something new thrown at them, where do you, oh, this is the best of the best or this is the best? You have to start, it's either put up or shut up anymore. It's no more this game of, hey, try this, put your whole life into, invest into this, and like, your business is on the wrist. So we have to ensure that what we provide is moving forward, maintains the performance requirements because now availability is like everybody assumes availability. Most clients, you know, that's five, nine, six, nine. Now they want to know, can you meet my SLA, my IOPS, my performance feeds? That's the new push. And the ability to downsize what they're doing and still be able to keep and maintain their modern infrastructure. Get off the old apps. I mean, you know, there's clients out there with the applications that are running, say, you know, some wheel out back that's been running for 20 years. We got to get them off of that into the new without taking them out of business. So that's what we do well. Yeah, we've covered, last year we did it in a cube in L.A. with HP services and it was really great because obviously you're managing not just HP but multi-vendor environments and HP's open, message has been very well received. But with that being said, you know, the old added 70% runs the business, 30% is to help and create the new stuff. So that's the OPEX side. So two questions. One is, where are that 70% number? Obviously the goal is get that down, right? Get that down and get that more investment to bring the new stuff in. So that's one question. Where's that kind of happening? Where's that? What activities are reducing that 70% number? And then CIOs are investing more. So the second question is, you know, for the past decades, do more with less, do more with less. There's always that spurred the outsourcing. So the second part of the question is the labor side. You know, within the IT and market, roles are changing. We're seeing no SQL databases, for example, and big data, you know, change the role of DBA, the CIS admins moving to more network admins. So two questions. OPEX, how's that being reduced? And two, the new roles of the labor. What do you see those two areas? Well, it used to be what we try, let's just start with the OPEX part. Okay, operating expense. The best way to reduce that is to put a standard across that everybody's using globally. So 99.9% of your clients require X. That's what you go after. You don't keep building all these little silos. Your OPEX goes straight up. So if you've got almost 100% of your clients want to report or you need backups on this amount, you make sure it's cookie cut across the globe. Okay, as far as the resources, it used to be when computers came out in the 70s, you needed a PhD to run them, and then all of a sudden it went to, CIS admins knew how to use the GUI. Well, now we're back to, you know, resources that are trained, and if you have a standard, guess what? You only got to train them on that standard. So it's not like you have a guy that's doing SAP, Oracle, some RBS stuff, or over here and there, it's all cookie cut. The idea is to commonality, be able to support those service levels, and keep the infrastructure to where it meets and exceeds what they expect. What are the big trends on the global scale, as companies try to grok the whole globalization side of it? What do you see as a big trend? Is it just standardization? Is it organizational? I think it's standardization, automation. You know, being able to do more automation with less people doing that, because the more manual work, that takes forever. If I can automate batch jobs into something simple, automate that, automate that, then those people can be used for better resourcing. So what do you think about the whole brocade technology day here? What's your take on the presentation and what the I love it. I love it right now that they're looking at both sides. You know, sand fibers not going anywhere. It is not going anywhere. It's what I call mature. It's growing. It's not dying on the vine. And now they're bringing in the ethernet fabric with the, you know, the new VCS. And I think that's what we look for is that, you know, FCOE, iSCSI, Infiniband all come out. Those were all great. Wonderful. Yeah, right. They lasted how long? Okay. So the agile enterprise has been kicked around. The word agile is just in favor now. Agile development, agile data center, agile services. I mean, you just put agile blank. Yes. And we should all be more agile, right? I should be more agile. What do you take, what do you make of all that? Cause at the end of the day, you're in the services business. You got to have that readiness. You got to be deployed. You got to be able to meet the SLAs. It's new requirements. It's faster. What does agile mean to you? Agile means to me that I can move the workloads when I need to move the workloads without impact, without interruption behind the scenes. If I need to add storage, if I need to do more backups, if I need to expand my SAM, it's got to be behind the scenes. It's got to be mobile, agile, but without impacting my production. It has to be flexible. So let's talk about your experience with obviously a lot of change going on under the hood right now. We just talked about the iPhone 5 as more of like an example of a consumer. But you know, under the covers or under the hood, a lot more actions going on. And then you're beginning through the enterprise, you've got the same kind of dynamic. So talk about SAP and Oracle and the big guys in the application space. You mentioned workloads. How is the landscape changing relative to workloads, whether it's a big SAP and Oracle relative to these infrastructures? What's the big changes? Not a lot of big changes as far as the actual, what the critical requirements are. I mean, they understand it. They are, you know, we have to have response times that meet or exceed what that application is willing to do. We also need to understand that, you know, they're, when we put these boxes out there and we start to do the applications that they have to be laid across the right storage and to be able to move and grow with that storage without having to uplift the Oracle app or the SAP app and move them around. I think they're following the same footprint as they have before is the need is out there. They're going to go towards it. We're here with Jesse Jones from HP. My final question to you is about Brocade. So talk about Brocade's position in the marketplace and what do folks need to know about what's happening with Brocade today with this announcement? I think, well, we're Brocade's stance today as far as I'm concerned, as Brocade's our number one partner as far as what the future, the sustainability, the availability, the performance are required, and the fact that they're actually a partner in business. So if I need something, they're willing to sit down, to work with us, to design what I need. The announcement today means exactly what we are looking for on the Ethernet side. The server side's always been the side that's left out there. We've got storage covered with the sand, sand fiber, but with the Ethernet fiber, this VCS is going to play in a huge role with the VMs, the amount of servers we can support. So I think this is outstanding. Hundreds of VMs in a chassis, simplicity, should ease the pain on serviceability, allow you guys to do more faster and expand the businesses. Jesse, thanks for coming on theCUBE. We really appreciate we are here at the Brocade Technology Analyst Day. I'm John Furrier with SiliconANGLE.tv. This is theCUBE, a special broadcast here at Brocade's headquarters in Silicon Valley, California. We'll be right back after this short break with our next guest.