 Live from Las Vegas, it's theCUBE. Covering Discover 2016 Las Vegas. Brought to you by Hewlett Packard Enterprise. Now, here are your hosts, John Furrier and Dave Vellante. Okay, welcome back everyone. We are here at day two of wall-to-wall coverage of three days of live coverage of HP Enterprise, HPE Discover 2016. This is SiliconANGLE's flagship program theCUBE where we go out to the events and extract the signal from the noise. I'm John Furrier with my co-host, Dave Vellante. We're pleased to have Antonio Neary, Executive Vice President General Manager of the Enterprise Group, or also known as EG for HP Enterprise. Welcome back, great to see you. Big support of theCUBE. I know you love to come by theCUBE and kind of kick back and relax and share all that information on your success, the numbers, the forecasted revenues. Welcome back. I'm a customer, I can't miss this event. So, first of all, you've been on theCUBE so many times, going way back, CUBE alumni. But really, the changes and the bets that you've made as a team, and you personally were involved in a few projects. Let's talk about those. What were the big bets? Because the Compose has got traction, big time, both concept and messaging and product and the delivery of real products and solutions. What were the big bets that you made? So, I mean, listen, this is the outcome of a consistent strategy and consistent execution. I think, you know, when we go back to what we said a few years ago, right, we will continue to innovate in the data center. And we met few bets, right? So, obviously, continue to evolve that technology to modernize IT, to help customers implement hybrid infrastructure, to help customers through these transformation areas that you can see here, which actually, they're all showcased wonderfully. But the reality, we continue to invest in innovation. So, clearly, our portfolio has never been stronger. We focus on high-performance computing, which is great, is growing rapidly. We thought about that the step from traditional IT to converge was only one step. We think that the converge to, hyper-converge to composability is the next journey customers are going to go through. And that's why we innovated on HP synergy. We talked about the cloud with HP Helium. And now we are making a new bet, which is the edge, right, and we talk about this. All right, so workload optimization, hybrid cloud, now you talk today in your keynote beyond the data center. Correct. And workload optimization started a while ago. I remember the Apollo reveal. I mean, you guys have been on that, like you said, it's consistent. You barely haven't pivoted from that in the last five years, really. And it was more exciting is the roadmap to come. Because this is a point in time. What you see here is the point in time. Can you talk about that a little bit? No. But I can assure you, there will be many more new innovations around the journey. Let's talk about one bet that didn't pan out so well, but now it's back on the table, Moonshot. OK, so Moonshot? I would disagree with that. I think Moonshot pan out in many different ways. In new ways now. Right. It was what, four years ago? Yeah, so Moonshot was designed for extreme workloads. And we see the growth in areas like video transcoding, hosted desktop initiative, web scale, certain aspects of workloads. And now with that technology, we are able to morph it into new adjacencies. That's doing well. It's doing very well. Tom Brass was telling the numbers are pretty significant on the growth. Tell us the edge. This is a paradigm shift. And I want to get your thoughts on this. Because you've seen Me Too approaches best of breed, which is now going away more towards solutions. The edge as a data center, you're basically shipping, we were saying earlier, like the iPhone was a computer that ran phone calls. You're now not just going to do a Me Too edge device. You're shipping a data center to the edge that happens to have software that runs the edge device. Yeah, well, we know that over time, we're going to run into a mesh computing. You need to run analytics where the data is being collected to provide real time information in the hands of people who can do something with it. So the interesting part about that is about be able to collect that data and process it with the right power and the right footprint and give those analytics in real time. And so that's why our focus is slightly different. It's not about connecting devices to the network at the age, but it's to analyze data at the age with the right compute, the right connectivity, and the right big data analytics. Also, Dr. Tom Brash was on earlier with the folks from the non-IT group, the old technology guys, and the sensors, the analog, national instruments. That's analog. They've been doing IoT for generations. That's right. And it's pretty advanced, but yet not connected to IT digitally. Well, that's why that relationship is great. We'll talk about that. Why is it important? I think we have a common vision about the industrial IT. They have some incredible technology that together with the expertise we have from the data center, like you said, bringing that data center to the edge and their ability to really drive that acceleration of computing data with our technology is going to be an interesting fact. I mean, if you see the converged IoT system we introduced is a marvel of technology. We have a 5G connectivity there, which they are helping us, different protocols for sensors. We have our moonshot with the latest Intel Xeon compute power, which is enterprise compute power. We have a Rubaclear pass to connect and gather data securely, and you have storage. Megan, her keynote mentioned technology services as a crown jewel. We used to run that business. That must have felt good. And so a question to you is, but first of all, how does that feel? I mean, that's fantastic. I feel great. I mean, listen, my first job at HPE was in technology services. We first met, you were. Exactly, and well, actually 21 years ago. And so I think service is super critical, particularly in today's environment where everybody needs help to transform themselves. So as you evolve in all these, you know, big bets that you're making, technology services has to evolve with it. So I'm waiting for edge care to come out as... Campus care. Campus care. Okay, well, can you have campus care? Yes. That sort of evolve into IoT care, right? Yeah. So are we here today with technology services that are already prepared for the edge? Well, we're going to focus on four very unique aspects with technology services. Hybrid IT, big data analytics, campus branch IoT, and then ultimately application migration and multi-cloud. That's the focus. That's the focus of TS Consulting and then be able to support those heterogeneous environments in a way that TS support does better than anybody else. So I got to ask you a question. This came up in our earlier interview, Dave and I were talking and we were commenting after the interview with Dr. Tom Braddage said this is a game-changing category creating products. Right. Okay, and we were speculating about HPE's experience in building categories. And we were kind of scratching our heads to think what examples does HPE have in this area? Is there a core competency to really go in, put the stakes down early and win it, hold the ground from cradle to grave on the whole deal? Do you, I mean, I thought the laser jet was one. Can you share where HPE has leadership or is that a new DNA that you're bringing in? No, but go back history. Who invented the first X86 server? HPE. Who created the first rack mounted server? HPE. Who created the first blade of infrastructure? HPE. Who created the first supercomputer rack scale? HPE, that's called Apollo. Who created the first software defined server? HPE, it's Moonshot. Who created the first composable infrastructure? HPE. Who's created a new category called commercial IoT? I asked the right guy. I asked the right guy. You asked for it and I just answered. I wanted the clarification. So now you have this category and IoT's got growth. Well, I appreciate that. Thanks for clarifying. I need to get slammed down on the ground like that. But I appreciate that. Get the new category edge. What's the strategy? Give us the Antonio vision of how are you going to execute that? I mean, just big picture. Well, listen, IoT is such a big thing. I mean, you know, our point of view is that we're going to participate where we can play and win and add value. So our core competence is to bring solutions to improve time to value. And in that case, we think that bringing that computer at the edge, getting the right connectivity and the right analytics in a verticalized solution. Because at the end of the day, IoT to me is a big data problem, is really a big data problem. But then you need to create vertical solutions for those big data problems. So we're going to focus on transportation, healthcare, industrial, and then ultimately, things like oil and gas. And then, you know, we will see. We'll see where we go from there. The reality is that there is so many use cases it can go address, but ultimately you need an ecosystem. It's not just the solution, the ecosystem. So there's a big tailwind. Giant TAM expansion, which comes at a good time because, you know, if you see the public cloud is obviously going to eat into the core of the traditional business. When you look at that, you know, that when you do your TAM analysis, are you constantly 80 quarters of server, consecutive server growth? Number one in storage, at least for a little while now, but growing, gaining share over the last, what, end quarters. Are you confident that the market, I mean, it's huge, but is it big enough for you to continue to be able to gain share? Yeah. So I think, separate two, one is the data center profit pools, as you stated correctly. They are being under pressure. I think there is a massive transformation in that data center. I don't want to call it public cloud. I call it off-prem. And then there is different stacks. You'll run and throw that on that. But we'll continue to innovate in that space. Composability is an example of how we're going to drive that next innovation. But in that, the segmentation really matters. As I said, high performance computing is a market that's growing and is playing at our strength. When I think about mission critical workloads is growing, it's playing at our strengths. We own already 50% of the market in HANA in Europe. So as we see HANA workloads and the memory workloads taking more and more ground, that's placed to our strengths. We will continue to innovate in the places you know, gen 9 to gen 10, and we have an incredible roadmap. Then the business innovation like CloudLine that we did for the service provider is another aspect of this. And then software to find the data center. That's the next big thing, because we know we have to move up the stack. And we actually have an exciting roadmap with HB Software to simplify the deployment of automation and orchestration for our customers. And then you go, and that market is roughly $140 billion. And remember that 75% of that is still very traditional driven. And then you have this big market at the edge where there is not a lot of pressure. And Aruba plays a huge role. And I think the Aruba acquisition was spot on, because Aruba is not just a wireless company. At the core, Aruba is actually a software company. But the fact that we can extend Aruba's capability and adjacency like Telco, SD1, and then now these IoT spaces give us the opportunity to participate in the market we were not thinking before. When you say not a lot of pressure, you mean not a lot of pressure from competitors that have the portfolio and the end-to-end capability. And the profit are not yet disrupted. So there is a lot of opportunities there. And that's why we're making a big investment. If you follow the two days, right? First day was all about the transformation journeys in the data center, application, cloud support. The second day was all about disruption and then the edge. And that's where we are making a lot of focus. I mean, we are focusing a lot at the edge. We think we can play in one. It's incremental for you. It's incremental, absolutely. It's a great strategy. And I think the composable field of blank plays well because it goes up and down the stack. Correct. And so one of the, you know, we heard the theme also IT opposite of you guys are focused on developers of security, the developer aspect. I want to get your thoughts on this in your personal view. Going back in your history of the old HP, Bill and Dave used to have the big book that the engineers would all buy for test and measurement. And that was the treasured, you know, sacred book. And they won the engineering community. HP, the old HP, if you were an engineer, you bought HP and they won the technical community. We're seeing enterprise developers really coming in and SAP staff are same message. Mainstream, Apple developers coming into the enterprise. How are you going to win the hearts and minds and the community for those developers? Is it going to be a technical strategy? Is it going to be solutions? What's your thoughts and personal view? So there is no question that today, one of the biggest audience you have to address is developers. We used to talk about CIOs, VP of Ops. More and more, we're talking about line of business and developers. And so you have to appeal to developers because in this world, which is all about time to value, developer plays a huge role. They need to develop applications for this idea economy faster. So you need to get them a set of tools and environments where they can do that. So an example of the announcement we made with HP Staccato this week is to get them a framework where it can develop agile cloud native applications faster. And so that's one aspect, the technical tools. But on the other hand, don't forget the CIO which has to manage what they do. And one interesting moment, at least for me in the last six to nine months is that, yes, you focus on develop, make them as productive as you can, but don't forget the other side. And what they are looking for on the other side is production assurance. So develop application faster, but remember, you have to lifecycle that application. And so what the CIOs are saying, give me the tools as you do with the developers. So when they drop that application, I have production assurance. So we have to continue to bridge both worlds. And then technologies like Staccato, composability and all that will make things easier. But on the other hand, we need to make sure the lifecycle like service anywhere and all that to manage those tools in a way they haven't done before. Well, thanks so much for spending some valuable time. I know you're super busy. And now that you're the big chief in the enterprise group, spending time is super valuable. We know that's a gesture of loyalty to theCUBE. Love coming here. Love coming here all the time. We love having you. How do you neary inside the Cube? Cube alumni here, breaking down all the action, extracting the signal from the noise. I'm John Furrier with Dave Vellante. We'll be right back with more after the short break.