 And we have a good friend, Craig Nunes, coming on. You got a tough act to follow there, Craig. How you doing, man? Oh, man. You know, we didn't do that on purpose, but thanks for coming on. That was like going to the gym. My pleasure. Boy, so you're kind of right out of the gate, setting the bar high. Well, Jay Sri set it pretty high, so. A lot of people. I'm ready. How you doing, man? I am doing well. We're rolling, OK. Big show. How's the traffic at the booth? We haven't been able to get by. Fantastic. Right here, really. OK, so I'm excited to have Craig Nunes on with the Cube with Dave and I, because Craig has been a big, big supporter of the Cube. He's been on five, six times. Was it a fantastic company called 3par, which we know because he's been on it multiple times, now part of HP. So welcome back. Thank you. What's changed this the last time you were on the Cube two months ago? We were at HP Discover, right? You guys had us out there, which was a fantastic show. Well, what I would say is what's changed since June when we talked about kind of where we were taking storage, converged storage architecture and driving storage closer to applications. What's changed since then is over the last couple of weeks, we've made some product announcements really to show what we mean by converged storage. And we're talking a lot about how you, in fact, drawing a lot of similarities with what VMware has done with compute, vMotion and things like that. We're doing that now with data amongst systems in the data center. So I was on the Cube yesterday. David Scott was on, I was getting some comments from our directors like, come on, you got to hit them up on the HP question. A lot's changing HP, some turmoil at the top, obviously controversy. And I said, look, I don't want to go there because one, I know they're not going to say anything. So just say no comment. Okay, they're going to say no comment. But more importantly, I wanted to highlight the performance that you guys are doing right now. So was there a question there, John? Were you asking me a question? You don't want that question. Who do you think you want the PC business? I was going to say, you got to buy me a PC business or something if you're going to get it. Should you age at the PC business? No. Next question. That's my opinion. No comment. Got to no comment. No, but seriously, ESSN, you guys are performing really well. Mike Bannick on. Yeah, performance is strong in that group. It's booming. Well, we talked about this after Discover. Yeah, we said it. We said, I'll stake. No sizzle. And the stake is in ESSN. The division is performing well. The storage division is performing well. You guys are growing. I think StoreOnce and 3-par combined were a triple-digit growth. Granted, StoreOnce came from a small base and 3-par was relative. But you guys are essentially doubling. External storage is growing. Our converged storage offers are absolutely on fire. And you might wonder, well, so what's the recipe? And I'll tell you, and part of it is just bringing the success to places like this. The part of what we talked about this week was something we call virtual system, right? For VMware vSphere 5. And part of what folks had no idea we could do, triple your virtual machine density on the server. Did anybody know you could do that? You can do that on virtual system. B-motion, 40% faster. Run with half as much capacity. That's what this thing allows. And so for folks who are growing into their virtualized environment, IT as a service environments, it doesn't take much for folks to see the right choice. And that's the source of the... Well, performance is number one on Herod's list. He said performance, availability, mobility, and security. So performance is top of mind right now. So you guys are leading in there. So tell us what's the update on your end on performance and what new things are coming around the corner for you guys. So when you say performance, what do you mean performance? So Herod in his keynote yesterday, I had a chance to see it. He talked about four things. He said performance, availability, mobility, and security, performance. They're talking about, as you know, VMware has said, Maritsa said, we're going to be able to run any application, any workload anywhere. And we're the exception of low latency, high performance, PC stuff. And so monster VMs implies mission critical applications. Where do you guys fit into that performance equation? Okay, so if you ask a storage customer, do you buy storage on performance? Ah, I don't know if you're going to get a real strong like it. Absolutely. That what you're going to find is, especially in this environment, the challenge is predicting the kinds of workloads you've got and how you keep those workloads from trashing your performance. So it's not about buying an absolute set of available IOPS from storage. It's about buying a platform that can handle whatever comes at you. Exchange today versus a virtualized exchange. Probably a different workload. And it might change over time and you don't know how it's going to change. So investing in a platform that can handle that unpredictable set of workloads. We talk about multi-tenancy. A lot of arrays do multi-tenancy. But handling an unpredictable multi-tenant environment is kind of where we're focused and that's well suited to what's going on here. So couple of things, I want to go back to the growth. So you guys grown very, very rapidly. How much of that growth is coming from EVA replacement as part of HP? Can you give us a sense of that? So let me tell you how we are focused here. We have a large install base. It's continuing to buy. But we have a lot of storage opportunity that it doesn't buy HP storage today. A lot of opportunity, okay? That is where we're seeing that growth taking converged storage to those folks and sure, we have customers, existing EVA customers who are buying in the converged storage but for discrete opportunities that are in addition to what they've got. What's funny, Dave, is that since we coined storage as sexy at EMC Real 2010, it truly has been smoking hot because Amarawa Dalla has said that storage is the biggest opportunity at many layers. Big data kicks in there. You guys obviously in three part were hot so we documented that. How has that changed HP? I know we talked about HP, but I want to get the update from you. What's going on within HP storage around three parts, injection into the sales? What's the uptake? What's the customer feedback? Give us the vibe and specifics on that. Yeah, so I think first and foremost, you can tell by the numbers reported in earnings. It's being very, it's experiencing the pull you'd expect when you go from 100 sales guys to 1,000 sales guys and more, including channel partners we never could dream of having in the past. Probably the more amazing performance is in geographies. We were in about 20 something countries beforehand. We're now in way over 100 countries. Geographies that three part literally had no awareness, no presence, no mind share are absolutely on fire, on fire. Yeah, big times, absolutely. So I want to touch on federation a little bit. You guys made an announcement recently. Well, talk about what it is first of all, because it's kind of for the lay person. Set that up and why is it important and how are you guys different from everything else that's out there? Yeah, so forget about the technology for a while. When you have a data center full of gear, you have today probably managing system by system. It's not a great way to get around that because you have sheet metal boundaries around your resources and what a lot of people are trying to get done is up leveling that resource pool to the data center and what storage federation does is take the data services within a platform like left hand or three par and kind of stretch those data services to the walls of the data center. So you can really think of your left hand systems or your three par systems as one pool of capacity and resources that you can take advantage of, change on the fly without affecting your users, right? That is, so it's a storage federation and peer motion which we announced last week is the ability to move your data anywhere within your data center. In fact, even between data centers in the metro area without disrupting users, VMs, applications, et cetera. So it's kind of literally like what motion does for a VM. We're now doing for your data. We had Savas on yesterday and we were talking about, because we had done some research in Wikibon, David Floyd did some work that suggested that the average cost of migrating an array is $50,000 and he was saying, I love this because I now have perpetual generational migration. Never have to take an array down. I can stand up a new array, tear the old one down and be off and running with no disruption to the application. Yeah, I'll give you a great example. The very first array that 3-par shipped in 2002 is supported by peer motion. Data on that array can be moved. Serial number one. Serial number one, absolutely. Now, there's some caveats here. It's 3-par to 3-par. It's no, you're not supporting heterogeneous arrays. At least at this time, CMAC hinted that might be a possibility in the future. That's what's an interesting invention required there. But for now, you're not putting in a virtualization layer, which is good because you're not at the overhead, but you're not basically allowing a customer to migrate stranded capacity from old arrays. Yeah, and the focus here is really taking the great data services of the 3-par platform or the left-hand platform and really making that available across systems. So our objective is really to kind of drive that flat aggregation of resources. It's not to try to drop stuff in front of aging arrays and migrate and that kind of thing. That's not what we're trying to do. I wanted to talk back up for a second. I mean, I saw some IDC data the other day from a guy named Rob Amatruda. I don't know if you know him, Bob. He's their backup guy. He did a report on purpose-built backup appliances and it showed data domain and Avomar EMC having about two-thirds of the marketplace, which is dominant share. You've got StoreOnce. Give us an update there. It's amazing to me that EMC has that much share. Yeah. What are you going to do about it, if anything? Yeah, so StoreOnce is a dis-based deduplication appliance. Introduced just about a year ago. So from a dead stop, really, in the market to now, we've filled out a pretty complete lineup from low to kind of, I'd call it sort of, mid-size enterprise. And it's become a real great option for folks who are tight on backup window, trying to keep the capacity small. And part of where folks are trying to sort out their strategy here, and we're saying, look, it's more than just in-line appliances, right? What about deduplication on the media server? What about deduplication in primary storage? And if you think about that environment, you want to be able to move data around the environment without rehydrating every time you touch it. StoreOnce is an algorithm not tied to any particular platform, not tied to hardware, so yeah, we're running it in our dis-to-dis-based appliances, our backup systems. We could run it in media servers, primary storage, and that's the strategy. That's what makes StoreOnce different. It's a deduplication approach for the data center, not just for a backup appliance. Okay, we have 90 seconds, Craig. I want to briefly touch on the whole, we've talked about this issue a lot. Tier one. Tier one, baby. What are your criteria to be considered a Tier one class storage array? We're starting to do some work here, and I'd just like your opinion. Yeah, so Tier one has a lot of the same performance and scale attributes that you would imagine, from the old days. But when you think of performance, you got to think of handling the mix of workloads, right? Because that'll affect my performance. How do I handle the unpredictable new demand in my platform? How do I grow? How do I change service levels on the fly? And how do I do all of that flexibly, but with great efficiency? How do I drive in a cost structure that your top service providers in the world will long for? That's what a real Tier one platform can do, and it can deliver all tiers, not just Tier one, cost-effective Tier two and three, as well as mission-critical Tier one. You're spanning the scope for Tier one, okay. We'll come back, and we're going to talk about that some more. We'll keep on doing some work on that. All right, Craig Nunez, VP of Marketing at HP Storage. Thanks very much for coming on the queue. Always a pleasure. Hey Craig, great to see you. Great to see you, man.