 From London, England, it's theCUBE. Covering Discover 2016 London. Brought to you by Hewlett Packard Enterprise. Now, here's your host, Dave Vellante and Paul Gillis. Welcome back to Discover 2016, everybody. This is theCUBE, the worldwide leader in live tech coverage. We're just coming out the keynotes. Meg Whitman, Antonio Neary, Alan Andreoli. We had Rick Lewis, we had Andy Bechelstein. Just folks from Microsoft, just a compendium of what's going on and update from the top at Hewlett Packard Enterprise. Alan Carpentier is here. He's the Vice President of Global Sales for the Aruba business and Mort Illum joins him. He runs sales for EMEA, gentlemen. Welcome to theCUBE. Thank you, thank you. We're 18 months in. Aruba's rocking 13% growth and revenue last quarter. Higher even, perhaps, in EMEA. Ella, give us the update. What's driving all this momentum? So, I think we can say that it's perhaps the fastest integration we've never done in HPE. Indeed, we managed, as you know, what we call a reverse integration. So, we kept intact Aruba. So, and you know, well, Dom O, and KRT, and clearly, we merged the HPE networking team in Aruba side and we used the strategy around Mobile First. That's really the big description of the big descriptor of the market and where we are very relevant versus the competitors and we are very focused. And I think the beauty of this integration is because all of the team, you know, the entire sales team is very focused on Mobile First and we saw the first outcome of this result after three months after the integration. So, very, very fast integration. We, Paul and I used to work with Bob Metcalf and he used to be fond of saying that wired will always beat wireless. Of course, it's the man who invented Ethernet, but Dom O said to us, no, it's Ethernet over the air. Yeah, yeah, yeah. And that really is a fundamental dynamic that has shifted with the mobile industry. Talk about what's happening in Europe more. It might be different than some of the use cases that we're familiar with. I think it's a global perspective anyway, right? But in Europe, we are seeing customers becoming far more aware of the mobile needs and the mobile capabilities of their workforce or their business. So I think there is, you know, there's a natural movement that is going on as technology has also evolved, the software stack has evolved, the security aspects have improved. You see the business is turning into a true mobile, true wireless environment. And that's what we are really engaging on. And I think the majority of our customers right now that we are, and we are taking some massive accounts are in that space where they are moving to the next level of technology. They maybe have a wireless system that has been, you know, a couple of years old and technology have moved so fast that now you can run a full steam business on a wireless technology with the security, with the access control and with the IP that you can get inside. You can do, you know, location-based services inside your organization to find meeting rooms. It's very, very advanced. And that is where we have a lead in the market. You compete against a behemoth in the market, Cisco. When you win, what do you win on? So yeah, so I said more than I think we need to make a distinction between wireless and mobility. The big difference is exactly what this problem more time is, all the features are on software-defined networking. So the ability to manage a hand-to-hand architecture around mobile first. And it's not only wireless, it's also wired. Because today the profile of Aruba is when you sell one wireless, you sell one wired, roughly. So that's the first thing. Then the security aspect. And the hand-to-hand solution around this. So now when we visit customers, they start with their workplace discussion. And now we start to see customers that they want to increase their own business with the technology that we are selling to them. So typically we have some verticals such as hospitality, healthcare, retail, or large public venue, where now they're more interesting by the ability coming from us about developing new services, new business model for them, toward their customers. So that's the big change we start to see. And we see also a big interest around cloud. You know, the customer are mentally prepared with the data center space about the cloud. And they are moving also on the cloud for mobility. So that's also a big trend that we start to see on the market, and especially in Europe. They're moving the cloud for mobility. So you mean mobility, cloud is actually driving a need for mobile services because customers are centering more and more of their data in the cloud. Yeah, and also the fact that they want to delegate the management of their mobility environment to use, to consume the mobility than manage end-to-end on this type of solution. So we see also a trend coming in this. So the cloud services are being deployed and consumed, or the mobile services are being deployed and consumed from the cloud. So it's really mobile, wireless, people wanting to upgrade, that's driving today's momentum. This intelligent edge is sort of future growth for you, right? Is that the next wave? Yeah, because when you put this in place, you are smart. And then you have another trend that arrives, IoT, where we don't know the limit. And then the customer, they need to refresh their campus domain because they want to move to a digital workplace, but they don't know really the limit of what will be the next generation of campus where more IoT devices and so on. So it's why they are very comfortable with us because we are really prepared themselves to this new wave of big components that will arrive and especially on the security aspect. So ClearPass is one of the major solutions to secure the environment, also prepared for the IoT domain. What are you going to do or will you be involved in the endpoint access component of IoT? In other words, you provide the mobile hubs, but you'll need wireless transmission on endpoint devices. In some cases, there'll be very low memory or low power devices. Is that your market as well? No, no market is connectivity. Security and certain use cases. So typically we use for the geolocalization in the workplace or in the stadium or any venue. We use beacon solutions that help customers to geocalyze their users. And we have some application, for example, meeting rooms. So we have worked with some startup to define the uber for meeting rooms. So that means you book your meeting rooms through your smartphone. And then we use the IoT solution to do this because we need to understand where is the users, where is the rooms, or we can guide, or we can give the direction for the users of this meeting room. So we have this type of new services for the workplace as well. And it's really IoT behind. Well, it's an interesting new application. Are there other applications like that that we should be looking at? Yeah, a lot of. I think the beauty of this integration, the fact that we have kept Aruba intact, we're still in the mindset of a startup. And the startup are able to speak with other startups. So it's why we have now an ecosystem of a lot of startups that will work with us to develop new services around the digital workplace. I mean, I would think you are a leading indicator of IoT adoption as we were talking off camera. It has to start with the connectivity. If you're not connected, you have to do a truck roll to the windmill. And that's... No, but you see, in the old days, it was around connectivity, right? I have a wireless device. I have a laptop. I want to connect it to the network. I want to get it access. Today's a revenue stream, right? It creates customer loyalty. It creates customer satisfaction. It improves service capabilities. This is a completely new revenue transformation that is going on in the businesses. In retail, you want to track where your people are. Not because you want to track where they are, because you want to be able to provide them a better service and create customer loyalty that increases the revenue and the margin of their business. So you talk to business people with our mobile-first strategy, instead of the IT people, or both at least, right? So it is really, you know, this IoT notion and what you can actually utilize it for is really mind-blowing. And I think the point is that we are the foundation, the connectivity that we provide are the foundation for that new services. Now we cannot today say that we have all things in place, but we are working with third parties and others to make sure that if you have the Aruba base, you can explore that world. And I think that's a very strong setting point for us at the moment. Talk a little bit more about security. We were talking earlier about the denial service attack a couple of weeks ago, a few weeks ago now on Twitter, and it was a kiddie script through DVR and IP cameras. How can you or can you help with a situation like that where the factory reset of the device or was it overridden by the user when they changed the passwords? I mean, silly things like that. Can you help? So again, ClearPass is really a security platform for the mobile environment, but not only from MoMedity now because we are moving ClearPass also for wired solutions. So we have a complete platform that could be also an aggregator for other security provider on this platform. So the idea we have behind is we need to develop the future of the security for the campus, including the IoT based on ClearPass. So you will see some introduction around ClearPass for IoT. So ClearPass is clearly the future of the mobile workplace or also the IoT or intelligent age solution in the future. Integrating the straights around IoT where you motion this example is clearly the issue that a lot of customers are facing today. By definition, an IoT device is not smart, it's not secured, and it's why you need to put a secure platform on top of this, and it's clearly the mission of ClearPass. Can ClearPass solve the problem of device security? Of attackers being able to break into devices themselves? Or do you work more at the network level? So ClearPass, today we use more ClearPass for access control of the network, but we want now to move to the security aspect of the network, including the IoT. That's really the big mission we have for this new year. Is there a time frame for when you move that? No, it's really now. What to ask about beacons, a technology that's fairly new, but I think there's some very exciting potential. What is the potential you see in Bluetooth beacons? Well, it depends. I think it's a huge potential, right? But it also depends on for what usage. We see many, many, many different beacons in the market at the moment. We have a very unique beacon in Aruba because we actually have a wireless connectivity in the beacon as well. Because one of the big challenges in a retail store as an example is that you have thousands of beacons because you want to track or in an office space, you want to be able to manage these beacons in the standard beacons without the wireless connectivity to the Aruba access point, you actually have to go and manage every beacon individually. Now with our solution, which is a more advanced solution I would say, you have a very, very automated approach to controlling and updating these beacons to whatever service you want them to provide. So there's a development and a future proofing in that connectivity. So that's our strategy around beacons and I'm sure there is more in that development area but is it really enables the first part of IoT in our connectivity model? I think on these beacon topics. So first we decided to introduce some new product solution for new generation, a beacon inside the access point. So that means one customer by a certain version of our access point, they have included a beacon and because we estimate that beacon will help customer to be more accurate and also be able to start to push message and it's what we call mobile engagement because we are helping customers to engage with the smartphone, the smartphone of their users or customers. So it's why when I said before that we are moving to certain verticals with certain use cases, clearly the beacon technology help us a lot because we are able to provide new services and also new engagement from our customers where with their users for better customer experience or also to make more business and retail is really where we see a big, big booming market there where they try to understand what they can do with that and how they can engage more with their customers based on the technology. How about some examples, particularly ones in Europe that would be useful for us to better understand how people are adopting your technology. You know, I think there's multiple adoption models. There is a retailer for sure, as I just mentioned big retailer organization who wants to understand how their movement of traffic is within the retail stores, right? To optimize on the streams, on the offers, on the and they can even work that back with the analytics engine to look at what is then sold at the register, right? So it's a very interesting model. It could be in hotels where you, both from a security perspective, but also from a guest loyalty perspective can understand where your guests are. You know, large public venues. You can use the beacon technology and our access point to localize people and be able to order at seat like we did with Levi Stadium. So there's so many business opportunities in this in Europe and across the world. It's really an area where there's a lot of interest from customers at the moment. One thing as an American, I couldn't help being struck by coming into this this convention center today was the high level of security and we see that all over Europe. Americans don't have anything like that level of security. So I guess a backhanded question is, does this have a backhanded benefit for your business in that you are, there is so much government interest in improving security using wireless devices to for security. Is that actually moving the industry forward? I think that's probably there is a movement that security becomes more important. I think some of the companies that were not an IT company before have become an IT company of today because IT is a fundamental for that security aspect. But I don't see people going security first. I see customers coming with increased revenue, customer loyalty, customer satisfaction, and security. So I think it's becoming more and more an aspect but I don't think it's driving a behavior. Maybe you see it differently. Yeah, no, no, I think in Europe it's very true. In US, I think it's a little bit more in advance for two domains. So as I said before, we have certain verticals where we have the early adapters that are really going on the digitalization mobility. And you have also some verticals where they are very reluctant to move in these directions like FSI or public governmental organization because they are very afraid about the security aspect. In US, we, you know, big part of the very sensitive agency, military or, you know, intelligence agency, they use technology to secure this type of environment. And we see also on the finance domain, we have won some big bank, many on the clear path solutions to, you know, they try to keep the control, to be compliant with the regulation solution that they need to be aligned with that. And then that's the starting point for them to the long journey to go to the full mobility or full wireless solution. So I think in this way, it's now starting to come in Europe. And as usual, it's coming from more of the north of Europe. But I think US are very more advanced on this domain. So lots of really interesting use cases, you know, indoor navigation, you're talking, where's the cube? I want to, where is that today? Proximity marketing you mentioned, get an offer, if you get that today on some like when I use ways, you get, you're starting to get offers, but not as useful when I'm driving, trying to get somewhere, when I'm in a retail environment, quite useful. Hotels, keyless access, I don't know if that's really caught on yet. Employee tracking, I mean, it'd be great to know where the service person is. So they, you know, they have to sit around for three hours. Parking assistance is another example that I think I've read about. So lots of really exciting use cases that you can monetize during the services. It's exactly what we are doing. So things are good then. They say, if you really want to know what's happening in a company, talk to two places, sales and engineering. So we're talking to sales. What else can you tell us before we wrap? I mean, I think you just highlighted the beauty of the Aruba model and the big differentiation we have versus the competitors who are very focused, focused on the mobile first strategy workplace, but helping customers to have a better customer experience for their usage of the mobile workplace and also give them the ability to make more business. And it's where we see a huge momentum from Aruba where the customer are very confident with those solutions because behind is more revenue for them. So that the big differentiator we have today versus the competition. It's why we are winning big time on those domain, you know, hospitality, healthcare. Healthcare is also a new way of innovation because there is a productivity aspect behind. So that's really where we are really focused on our self-force to be very expert in each domain. Outstanding story. Thank you very much for coming on theCUBE. It was great to see you. Thank you very much for having us. Congratulations, acquisition going really well and a real jewel, I think, going forward. So appreciate it. Thank you. All right, keep it right there, everybody. Paul and I will be back. We're here at London Excel and the Ducklands and UK. We'll be right back. This is theCUBE.