 Ian Ferguson, this is a man we want to talk to because arm is hot, arm is sexy, arm is the future. Ian, have a seat inside the cube here. Hi. I'm John Furrier of Silicon Angle. Ian, nice to meet you. And Dave Vellante. Dave Vellante. Hey, nice to meet you. Pleasure. I'm maybe hot and sexy. I don't know whether I am, but. I was going to say something. Cool and sexy. Face built for radio. You look good. You look good. All right. I'm John Furrier with SiliconAngle.com with my host, Dave Vellante. We are here for special coverage of HP's announcement of Project Moonshot, a multi-year initiative around new servers, new low energy, multi-year, multi-program, great for LAMP stack, portable code, not bound to CPU, it's all about power, mobile architecture, moving to the servers at scale, arm is a big part of it. So Ian, tell us one, why is arm so hot? I mean, Steve Jobs chose it for the iPad over Intel. It was a shoe in for Intel. He said in his biography, now you got arm going to the servers. What's the big deal? I mean, why is everyone so into this arm stuff? Share it with the folks. I don't know how many people we've gotten on watching right now, but 2400 people watching. So they all want to know what arm architecture is. I'll see it's a deviation from x86. The old way is Intel. The new way is arm. If you got a mobile phone, you know what low power can do for your battery life. What does it do for servers? Were you two kind? And yeah, I think we've spent 21 years designing technology that is incredibly miserly when it comes to leaking power. So we look at what you can do on your phone inside a particular number of watts or even in joules. And I think what's changed is that that energy constrained systems is no longer just a battery. If you look at a data center and it's 10 megawatts instead of how much performance am I getting? How much can I get out of my 10 megawatts? So it's a slightly different energy constrained system compared to your iPad or your phone, but it's still an energy constrained system. And as Paul mentioned earlier in the announcement, these in these data centers, the server is the profit generator. So it's not really useful work you can get out. It's like how many dollars can I get out of my data center in a 10 megawatt power envelope? And we've been doing that for 21 years. So we're looking to apply that energy efficiency knowledge into a new space. So you're dealing with multiple variables now when you look at this new architecture. In a way, it's an operating system within the operating system. Can you share the new things that you guys have done, the things that you have done and the new things that are happening today that folks might not know about that's going on in this space? Okay. Well, I think, like we said, we're at the early stages. This has been worked on for a few years with pioneers and thought leaders like HP. We have this little legacy 20 years of x86 code in some spaces to go on. But in the cloud, there's a lot of open source. There are end users that own their own software stacks. And so there's lower software barriers to entry for another architecture. And what we've done is we've been working to get good Java. A lot of these new workloads take good advantage of Java or Pearl scripts and things like that. So less ties to x86. We need good commercial grade server Linux and we've been working with people like Ubuntu. You'll see in the Pathfinder program that Red Hat is also listed in HP's partners. So we're sort of trying to get those underpinnings of the basic operating system and tools. But really what is exciting about this announcement today is we need real hardware out in the cloud that people can go have at and see how do the current workloads run on arm? And then how do you take that technology, maybe optimize it for a new architecture? And through this Redstone platform, putting that out into the cloud, people can go and run workloads on this technology and see does it give a meaningful benefit? Yes or no? And in some workloads, x86 is absolutely the right way in other ways. We hope that people will see a benefit from the arm architecture. Talk about the early adopters in terms of the developers that are out there. Obviously a new breed of developers are on the marketplace. You're seeing, like you said, people using non-compiled oriented software to do stuff and it's cloud and there's also the networking issues. So converge infrastructure makes a difference. We heard from HP talk about that. But what can you share with the folks out there that you've heard or seen or know about this new type of developer and what can they do with arm? What are some of the use cases and innovative things that a developer can think now about that they couldn't think about before? Yeah, good question. So certain and we keep hearing the word of offline analytics and Hadoop and that kind of workload, the sort of cloud areas of this world. People looking at unstructured databases, web serving, web hosting types of applications where instead of needing a lot of CPU performance, it's relatively modest CPU compute and then a lot of IO and memory. So we see those areas as the first place for arm. We announced the 64 bit instruction set last week and we certainly see over time that the arm architecture is moving in a place where it will become more broadly applicable to a broader set of server applications. We see it starting to fit into enterprise as you get to 64 bit and there's more performance and there's more address space for those sorts of applications. But near term it's certainly the cloud and like I say offline analytics, web serving, that kind of thing. How about in the mobile environment? Obviously it's been a big boon to the mobile environment having that kind of architecture for devices but now on a connected end to end basis. The proverbial end to end architecture. How does that look? Well, I think it's interesting and conceptually and intellectually it looks like we should be able to do something there and we've certainly been talking to some network operators and we hope there are some of the people that might try this hardware. Whether people are going to offload from the phone and put stuff back up into the cloud, run the binary in different places. It sounds good. I think it will come. I think they're similar hanging through. Sounds good as code for it's not there yet. I think that's a fair way of putting it. And I think until I'm not a fan of staying in the PowerPoint world and we've been in PowerPoint saying this stuff looks good, really if we come back to the announcement today there's hardware that people can start to play with in the coming future and say does this work in that workload that you're describing, intellectually it sounds like it should but let's go and see whether it gives a meaningful benefit. Big data and web based apps, key app for this, right of the box. So in terms of in your role here, in terms of delivering low power processors for server markets, for data centers, where do you leave off and where do others pick up? Can you describe that point a little bit? Yeah, I'll certainly try. So you know, arms business model is really different from your traditional supplier into the server market. We do not make chips. We license intellectual property which could be a processor core or a graphics core or the intelligence that a foundry uses to make that chip really fast or really low power or somewhere in the middle. So we really need an ecosystem to get our technology from where we are today into a market space, into any market. Whether that's Samsung into the Galaxy tablets, whether it's the Broadcoms or Marvels or TI's to take technology into phones or whether it's Calzada and we were an early investor in Calzada because we needed somebody that was a thought leader to go and take a silicon chip and take it into this space. So we're certainly involved with that. We believe in design once, license many. We believe the space needs multiple suppliers to keep everyone honest on pricing, to drive innovation in the space. You've seen the benefits of multiple people going into the smartphone area. People are putting other clever things around the CPU core. So that's the first thing. The second thing is software and clearly we're at the early stage and that's why we're excited about being in the Pathfinder program where we're going to help people with tools, with expertise on how to optimize their applications for the ARM architecture because it's a new world. Everyone knows x86 very well in the programming world of the servers. ARM is new. How do you take advantage of our SIMD instructions is kind of a new thing and we'll be looking to add that sort of value into the center when it opens next year. So I have a question on the big whale in the room, which is Intel, right? I mean they're a huge company. They all pay. They're about half a billion dollar company and revenue wise Intel's 44 billion, about 88 times your revenue. You've got 300 million in cash, they've got 22 billion, about 73 times more. Yet the market only values Intel about 10X, you guys. What does that tell you? And how do you guys think about competing with the big whale? Be faster, obviously. We love innovation. We love startups. But share with us a little insight there. Yeah. We're massively bigger than you said. We're actually 800 million dollars instead of half a billion. Run rate. There you go. We are. Good. Good. It's really, you know, the CPU for us and into these systems is an important piece of the system, but it's not the whole thing. And if you look at how servers will be reworked, what we're trying to do is empower innovation outside the CPU. And we're going to see heterogeneous environments where people like Nvidia come in and say we're doing interesting stuff with our GP GPUs. We can blend it with ARM. They were announced as one of the architecture license of 64-bit last week. You see what Calzade is doing and saying we're going to take the core mechanics of the ARM core and put interesting server management and things like that around the core. Diversity is key. And we're going to see a broad range of silicon chips coming out. And so it's not the little, just the little ARM fish or plankton or whatever we are in that well analogy. You know, it's us. It's Samsung. It's Nvidia. It's all of this broad ecosystem. Well, there's a lot of people. And really it's not a, you know, my process of pipeline is better than yours is that at an SOC level with the integration level that Calzade is doing and with other things that other partners that I can't disclose are doing around the core, you're going to see a diversity of devices. And is Intel the right thing for some server applications in the future? Absolutely. Are they right for everything? Absolutely not. And you'll see that diversity and choice, which I think the market will benefit from. Great. All right. Ian Ferguson, ARM. You guys are the darling right now. Great products, technology, HP's integrating you guys in via your partner. Thanks for coming inside the Cube. It's an honor to be in front of these gentlemen's offices. The last time I got this close to HP is when I got rejected on a job in 1988. So it's great to come and finally make it back to the headquarters and I appreciate your time and I appreciate your interest in ARM. Thank you very much. Thank you everyone.