 I'm here in Las Vegas, this is Silicon Angles, the Cube, our flagship program, we've got the advanced extract of Silicon & Noise. This is HP Discover, this is Las Vegas, day two of three days of wall-to-wall live coverage. I'm John Furrier, founder of Silicon Angle, and I'm joined with my co-host. I'm Dave Vellante of wikibon.org. Nick Iliatus is here, he's the CTO of Broadcom. Hardened, Cube guest, Cube alum, Nick, welcome back. Glad to be here, excited, hardened, Cube alum. So, you guys have had great relationship with HP for a long, long time, your default adapter and Gen 8. So, yet another HP Discover. So, talk about the relationship a little bit. What's that mean to Broadcom? So, Broadcom has had a very long relationship with HP. Actually, we're on our 13th generation of ethernet controller and HP has been our customer of Broadcoms for most of those generations. So, it's been a long relationship. And we provide, after 13 years, or 13 generations, the software quality and the software performance is key. Because HP knows that we deliver performance quality in our product, so that's key to the relationship. In terms of performance, we have off-load technology in our controllers, which is in terms of FCOE and iSCSI is the best in the industry. And I think you'll see some of that in some upcoming products that will get to be announced from HP in the follow-on. So, 13 generations. So, you talk about the quality. So, talk about that a little bit more. What does that mean for customers in terms of, what does that mean, quality? Is that majority of the hardened stack? Is it, does it create a barrier of entry for the competition? Does it give you competitive advantage? Does it allow you to keep your costs down? What are the benefits for the customers? Quality has many facets. First of all, it is hardening, meaning that the software has been field tested over multiple generations. It has features that allow you to diagnose the operation of the network, so it actually allows you to have visibility. It is feature-rich as over 13 generations, you get feedback from the customers, you incorporate that into your software and that creates a much more valuable asset for deploying. And HP sees that because when they deploy our products, the customers are familiar with it. They've been using it for many years. And if there's an issue, we are very responsive to go out and fix it for them. So, the responsiveness is another part of quality as well. And then, in fact, that they're using it as a default adapter, I think speaks to that as how they view it as well. Nick, I want to ask you, we just had access data on. They do a, you know, they got partner of the year for security. And we're talking about that. The challenges in cyber security. What are you guys doing relative to security threats? And honestly, when you get down into the hardware, you get some code, there's cryptography, there's all kinds of new algorithms, new performance levels. What's Broadcom up to around security? Well, our controller products that go into service don't really have a security aspect to them other than being able to set up some authentication and everything like that. But in broader Broadcom portfolio, we do have encryption crypto capabilities that are best in class and into performance. We have some multi-core processors that have, we just announced actually this week at the Lindley conference, that provide 100 gig of crypto in line. 100 gig, that's the best-in-conference. What does that mean for the people who don't know what that means in terms of capabilities? In terms of 100 gig crypto, you could probably encrypt multiple enterprises in terms of their traffic, let's say like a bank, like a dozen banks without breaking a sweat. I mean, it's that kind of- All traffic. All the traffic, every bit. And that's because of the cores? The cores, yeah. So there's a multi-core processor that has accelerated our chip as well, so it's very key technology. And it's actually the highest performing multi-core processor in the industry. Wow. Obviously, Meg Whitman's getting behind Security Day. We heard that yesterday on the keynote. That's always an interesting conversation. I mean, software on a chip, things are getting embedded in. And is that more of the trend now? I mean, we're hearing breaking down the silos from IBM, from HP, all the different vendors are trying to collapse and not have separate products and boxes. Is the trend more software getting embedded in and extracting away some of the deep tech? What do you see there in that trend there? So the software obviously on chip is a key attribute of what we do, right? And actually our controllers, the adapters that go into the HP servers are actually based on a very long word risk processor. So one of the reasons we have so much flexibility in our controllers is because they are actually programmable. They're not a state machine driven controller where once they leave the factory, everything they can do has been dictated. Actually, these controllers actually run code on them at very high rates. So that's going to really hit the trend for dynamic policy, right? That's really the end upgrade ability. So you can now upgrade the controller in the field with new features after the story's been shipped. That Dave and I were hearing that all week, last week, dynamic is the way static policy is dead. That's what people are talking about. Nick, SDN's obviously the big buzzword we covered extensively on SiliconANGLE and Wikibon, VMware's acquisition of NYSERA course, started all the buzz around it. Talk about, from a CTO's perspective, what's different about network virtualization? And we're all familiar with virtualizing compute. And everybody knows servers were underutilized, been consolidation play, networking's different. Ports are oversubscribed, they're not underutilized. So how is SDN network virtualization? How is that all evolving from a CTO's perspective? How is it different? So I look at SDN as network orchestration, being able to orchestrate your network holistically and be able to automate the provisioning of machines, virtual machines, and be able to move, vMotion and all that, machines in the network can have the network move with them, meaning the network reconfigures itself through software commands that track the movement of one virtual machine from one server to another, or you bring up a virtual machine on one server that wasn't there before, and the network has to be able to recognize and provide proper virtualization underneath. And when it ends up happening, when you have multiple virtual machines on a single server, that network has to be able to take their trapping and break it into different virtual tunnels so that you maintain separation. So if you're a multi-tenant type of environment, you have three virtual machines that belong to three different tenants, you don't want their traffic to intermingle. So the network has to be able to keep that traffic separated and deliberate to where it belongs. So that's the challenge for network virtualization is being able to keep all the traffic going from where it belongs and not have it bleed over into other tenants' traffic and do it with an SLA. So if you're providing hosting services and say, I'm going to give you a gigabit of service, you want to make sure that your network recognizes that virtual machine, sets up a virtual connection to it, and then provides a gigabit of service just for that virtualized part of the connection, not just the entire connection. So you're talking about an automation component and you're talking about this noisy neighbor problem. Because today, network management obviously very labor-intensive, right? So the promise of SDN is that labor component gets reduced dramatically. I mean, how dramatic will that be? I think as an order of magnitude reduction in network provision in the past, you would go out and do element management. You would go to a box and say, I want to configure this port for these VLANs or I'm going to set up a certain traffic management attribute. So what SDN does is it creates a platform that the network is viewed as holistic. And you are able to go out and provide commands to the network that is interpreted by the different elements and they basically do what the orchestration tells them to do. So I think this is the evolution of how networks get managed versus being element managed. They're now being managed as a fabric, managed as a whole entity versus individual boxes. I wonder if we can talk about network performance a little bit. We talk a lot about flash and a mechanical test, the last moving piece of computing systems. And flash allows that to go away. That's good news. Now it changes shifts the bottleneck to the network. That's where you guys come in, presumably. So talk about how you affect performance and maybe some of the trends you're seeing in terms of technology, uptake, 10 gig, 40 gig. So the first trend that we're seeing is the adoption of 10 gig. So up until the Romney cycle, gigabit was the predominant technology being used to connect servers to the network. We're now seeing that 10 gigabit is starting to rise to double digits. And another piece of the 10 gig technology that's enabling this is 10G base T. So this is 10 gig running over a two stick pair of cable that was used for one gigabit servers. So now the network administrator can add new servers to an existing network and deploy a switch that can both tie their legacy one gig servers to the network as well as their 10 gigs. Without ripping and replacing that infrastructure. Other than just that one switch. All the wiring stays the same. Now that 10 gig performance now allows you to take media that was typically in a desk, directly attached storage, sitting inside the server, move it to the network, and still have that level of performance be there. Because the network now is as fast as that local bus was inside that server. Excellent. How about, let's talk a little bit about Moonshot. We're hearing a lot about Moonshot at this event. Dave Donnelly just came by, very excited. We are too. So why are you excited about Moonshot? Moonshot, first of all, it changes the server paradigm in the way that says that we are going to have these cartridges that are purpose built versus having the general purpose servers. And these purpose built cartridges have different attributes that you can then deploy X of this and Y of that and have a server complex that has different capabilities based on how you deploy these cartridges and give it flexibility. Also Moonshot in itself is a very networked box. Because all those cartridges have to talk to each other as well as the network. So if somebody goes over and takes a peek at the Moonshot box, I think they'll be surprised at how much Broadcom content. That's why you're excited, yeah, okay. It's actually a very nice evolution of the server complex and how it gets deployed in that way. The numbers are staggering in terms of what they're saying, hb.com, and what they're powering it on. The question I want to get your thoughts on as a technical person, especially at Broadcom because you have exposed so many things at a root level as well as the market forces is the Internet of Things. You guys have a view on that. What is your take on the Internet of Things? It's going to throw a lot of data. Dave and I were just debating this the other day. How much data will actually be thrown up? Is it little data? I mean, it's trickling data. Is it probes? What is an Internet of Things? Is it kind of a sensor on a refrigerator in the Internet of Things? Is living room, devices, to big turbines, factories, nuclear plants, I mean. It's actually all of those things. I mean, so it's share with us your vision of Internet of Things from a technical perspective and how the market plays. Certainly, it's actually very exciting because it now takes this network environment we all live in with our smartphones and computers and takes it and embeds it deeper into the fabric of society. So now you have, like I said, refrigerators, cars. I think automotive is the one real killer app of my mind of the Internet of Things. We can track traffic and see where your car is. Oil is burning, you know, all these things that do amazing things, amazing things. And now, so you have this wireless infrastructure that can reach out and pull this information in. But then you need the network fabric behind it to be able to bring it to where it needs to go to be processed. But there's also an angle that says, we want to really filter how much of that data gets to the core because the live-its redundant. So you want to have intelligent edge. So I call this the intelligent edge of the network, the pre-processes, the Internet of Things data, and then presents something that's a little more. Maybe some metadata. Metadata, that's a good word. To the analytics part of the network. I think the New York Times just had a story about metadata. It's something else. In the headline, right? Well, in the headline. Metadata, metadata. About talking about the NSA thing. We'll get back to that and say, you're on a roll. Yeah, so the network has to become intelligent at its edge to be able to provide the analytics, the important data, not the redundant data. So I think there's going to be an architecture that says we're going to have wireless and some wired. The fabric has to be aware, right? The fabric has to be aware. So there's an edge, it's a handshake, if you will, going on between the pre-processing. And there's location services required because some of this stuff doesn't sit still, right? These things move, right? So you have to be able to know where they are, how fast they're moving, and what they're doing. So there's a lot of- What kind of data scale are we talking about? I mean, talking about large-scale data being thrown off or just little lightweight pieces that in the aggregate make up a massive pile. It's a lot of large numbers, right? You've got little things times a million becomes big things, right? So it will become a lot. And I think, how real is Internet of Things in your mind? Obviously what you just walked through was actually an architecture. I can take my phone out and I can tell you where my car is right now and what the alarm system in my car is doing because my car has a GSM radio in it. So my car is always communicating with the network and telling the world there'll be by alarm is armed, what is closed, the engine's off. So I'm already living the Internet of Things with my- So you'll be taking videos of people checking out your car or, you know- I actually probably could. I actually probably could. So I'll see, you know, my son just graduated in high school, he's a Palo Alto high school and he was the only first graduate to walk down the aisle with Google Class. And so, you know, I gave him my development kid that I got as part of Google IO because a gift. So we can play with it and kind of imagine the future. Because really what that is, if you think about what that's doing, that could be peering with other devices. So I have wearable glasses that could be talking to my Fitbit, my phone, my phone becomes the base station of my personal devices. So in a sense it's a personal area network. That has to connect to a fabric. But if I interact with other things, then it's a whole other, is it a mesh network? So it brings up network stuff. Yeah, because you have to communicate it. At the end of the day, the glasses are not very interesting as they aren't able to get data. I mean, I have my killer app for the Google Glasses. I don't know if you're interested in hearing about it. Yeah, I love to. So I walk into a room full of people and my glasses identify all the people, tell them what their names are and what they do. So now, no longer do I have to like fish for business cards and try to figure out, is that John, is that Richard? The glasses do it for me. Yeah, it pulls up to cute videos. So let's talk about the NSA thing since we brought that up. Obviously that is wakening America to what we know in the geek world, tech world as network surveillance. It's been network management, it's been around for years. I've always assumed that anything I do on the internet is something I'm going to see. And we had guys off the record tell us that's the tip of the iceberg and there's a lot more that we don't know about. So the word metadata is educating the world. What's your take on that whole scandal, that whole leak, the whole spying? Obviously I think Google and Yahoo are not doing diesel to government. I'm sure the government has requests that Google's clarified, over amplified that they're clean, so to speak. And it seems to be blown out of proportion. What's your take on all that? Well, I mean, I really have no first hand knowledge of what NSA or the FBI were doing. But if you look at where we are today as a society, we share information openly, right? Google knows who I am, what I'm searching for, my bank knows what I'm buying, my visa purchases. If we're assuming any level of privacy in this world, you have to take action to make sure. If you don't want to have people know or organizations know what you're doing, you have to be proactive. So I think people have to assume that unless you do something, the information about what you're doing will be known. Especially the people that want to make money off of it. That's a good point. A lot more is known about us than who we're calling on a cell phone. We always say that American Express knows more about us and Safeway, where I shop, knows all my habits. They have all that data. So I mean, it is what it is. And the thing is that I don't know if the broad society is aware of it, but obviously us as technologists are aware of what you can do. I mean, you can easily tap traffic on a switch and say I'm going to redirect it before it hits the Google or somebody else's servers, peel it off. I mean, that's unfortunately very easy to do. You guys are also involved in the media business, you power a lot of the networks for media companies. What do you think about the whole video, YouTube, social media, cable TV, you have in-home, all the signals now over the air is now coming back into vogue. Is this going to be multiple technologies just converged in one screen? A tablet? The connected home you're talking about. Connected home. The connected home. I think we're going to see a lot of these companies provide you services like the Comcast of Horizons and try to actually provide you a turnkey experience in the home. Instead of having to be this guy that takes something like an X10 and a smart TV and I set that box and try to figure out how to make it all work together, I think you're going to see the service providers come in and say I can turnkey temperature control, home automation and all the music in every room and do it for you versus you having to be the... Have you seen the Nest product? Yes, that's a term of thought. That's pretty elegant. It is, yes. Do you have one? No, unfortunately my heating system is not compatible but I have something I jewelry right myself. You built your own. You're a CTO, you built your own, I don't mean that. But that's... Keep it out in the basement. But that's interesting, that's basically designed for user experience. Designed to be like very Star Trek-like, not just temperature control, but like an iPod. Exactly. And handling a lot of things. And it has an app on an iPad, so it's very, very... Self-discovery, a lot of software written. Very elegant product, we're watching that as a Nest. Nick, thanks for coming on theCUBE. We really appreciate it. One, love talking about Broadway, but more importantly, love to tap your expertise and just get a sense of what's happening in the trends, we really appreciate it. This is theCUBE. I'm John Furrier with Dave Vellante. We'll be right back with our next guest after this short break. Thank you.