 Live from Las Vegas, it's theCUBE. Covering Discover 2016 Las Vegas. Brought to you by Hewlett Packard Enterprise. Now, here's your host, Jeff Frick. Hey, welcome back everybody. Jeff Frick here with theCUBE. We're at HPE Discover Las Vegas 2016. And one of the hottest topics that's going on it, yes it was cloud, yes it was big data, but IoT. It brings all those things together. It impacts a huge industrial world that's already in place and is a huge opportunity for new investments, revolutions, excitement, and Meg made a big announcement on the keynote this morning. So we're really happy to have Doug Oathout, the VP of IoT Marketing. What a great job to be in today. It's a very great job to be in today. The world is expanding and getting much bigger in IoT as we speak. So it's everything. As everybody likes to say, the car is probably your biggest IoT wearable. There's cars all over the show. It's industrial with GE. They had the announcements with National Instruments was up there today with Meg. It's really kind of an all-encompassing technology. It is, and what it's doing is bringing together multiple industries, whether it's automotive, manufacturing. But what we're doing is the manufacturing plants, the cars are getting IT built into them. So with the internet of things, there's going to be a lot of data and a lot of information to absorb. And you need to process that, where it's being created to make the right decisions. And that's what we announced today, is our IoT capabilities to make decisions at the edge. Which is pretty interesting, because there's the sensors which everybody knows about. And then there's the communication back to the mothership. But it is really important to be able to push that compute, push that intelligence out to the edge devices so they can be doing things there as opposed to having to cycle back to the mothership. And it's extremely important in industries like healthcare and manufacturing where you want to be able to make real-time decisions. Because the last thing you want is to have to send all the information all the way back to the mothership and wait three days to tell you to take that manufacturing line down because you're making ineffective devices. Or in healthcare, you want to be able to make those decisions at the hospital versus at the data center because you want to make the doctors more effective and more productive in their jobs on a daily basis. You bring up a really interesting point. We've talked to Bill Rue and the team at GE a lot. We love those guys. And they've done a great job out in the East Bay in the Bay Area building their software group from a small group to hundreds and hundreds. And I think now they're actually running all GE software from there. But when you talk to them, it's really about the entire lifecycle of this experience. It's not just at the edge. It really allows you to kind of take a soup-to-nuts approach to the way people interact with technology and the way all these things connect together. Yeah, so especially with a company like GE, we're doing two things with them. We're really working on how do we make their equipment better, right? How do we make their jet engines, their manufacturing equipment better? But we're also working with them with our joint customers on how do we make their manufacturing site incorporating internet of things at the edge, but also incorporating new product capabilities and new product improvements. So GE is really doing two things with us. We're working on their products and we're also working with our joint customers together with GE predicts. So I was going to say, how are you working with GE? Where does HPE start? Where does GE start? But you bring up an interesting topic that came up earlier today, which is this kind of concept of IT versus OT, right? You guys have been doing IT for a long time. GE and big industrials have been doing OT for a long time. Now really, they were probably kind of melded together before, but this is really more of a force mash, if you will. Yeah, it's the next wave, right? So IT has always been running the books, running the data center, running the software that runs your business, and then the operating teams always run the business, whether it's manufacturing, logistics, distribution, the healthcare environment itself. Now what's happening is these intelligent devices are hitting the street in these industries, and they want to make better decisions. So you have to connect them, and who connects them? IT connects them. So we're putting data center technologies into the manufacturing plant so they can make real time decisions. So they can do machine learning right there so that you don't have to wait six years for the new product development cycle to start, where you do the analytics on what worked and what didn't work in the previous life cycle of the product. Doug, talk a little bit about how important analytics is to this whole thing, and how the ability to capture more data, store more data, not be sampling, not be throwing stuff away, not have a liability of digital exhaust, but it's really a digital asset, if you will, then now you can do so much more with to better enable your operational technology. And the most valuable piece of the Internet of Things is collecting the data. Okay, the problem with collecting the data is there's a lot of it. So you have to be able to acquire it quickly, but you also have to have a data model set up, which is where data analytics comes in, is what information is critical for you to make that decision in that point in time that day? And then what information do you want to store or share so that you can make product improvements in the future? And that's where our announcement really comes in today. We announced new edge line converged IoT systems which allow you to have high powered data center technology at the edge in the manufacturing plant so you can make real time decisions there. And then as you set up your data model, you decide what you're going to share back with the data center or the cloud so that in the future you can improve the product or do continuous learning off that and make improvements on the manufacturing floor or the process factory. So from your point of view, shift gives a little bit, right? IoT is everything from my Fitbit, as we said to my car to GE running big turbines. Where do you see kind of the opportunities in the short term that's going to be the most impacted by IoT? Where's kind of the little hanging fruit, if you will? There's two areas that are going to be most impactful in the short term. There is this efficiency gains in manufacturing and process industry where if you have the right data, you can make your decisions on how to fix something better. So for example, if every month I have to do something to a machine to make sure it keeps running, if I have the real data from that machine, I can decide to not do it for 60, 90, 120 days because the machine is running fine. So what you do is instead of doing a time-based maintenance model, you do an actual database maintenance model. The second is connected cars. And connected cars for two reasons, the intelligence in the car, the entertainment in the car and all the applications in the car is what everybody sees. But logistically, assisted cars, logistics for delivery, garbage collection. If you can do that more efficiently, avoid the traffic jams, avoid whatever's going on in the city, you can actually make the public employees much more efficient. Or your distribution company can make their beer distribution more efficient. So it's huge efficiency gains, both in a connected vehicle, as well as in smart manufacturing or smart processing. I love the maintenance example because you may actually decide that you want to throttle the thing. You're running a turbine and there's a spike in the price of electricity and you might go past a maintenance threshold, not for safety, but you can make business decisions, not just simple time-based decisions on whatever factors at that moment that you decide are the most relevant. And I hate to say it, but oil went over $50 a barrel today. Guess what happened? They turned more oil pumps back on. The ones they turned off when the oil was at $25 a barrel actually turned back on today. So you make real-time decisions based on the data of the day in the context of what's actually happening that day. And you have to look at, does the oil refinery have enough efficiency, enough room to take in that oil so that you can get it through the process soon enough where you can collect your money. So having that data is nice. Having real-time analytics and real-time capabilities is the key to making more money or making better decisions. Love it. But there's a dark side, right? Security. We always got to bring in security and I'm sure people are afraid of, you know, since I'm going to take charge of my self-driving car, you know, grab control. So security obviously has got to be baked in everywhere. What are you guys seeing on kind of the security front? What is kind of the philosophy that you're taking there? Because obviously big factories, you know, this is not somebody giving me a virus on my Word document. This is a little bit more impactful or certainly can be. Right, so we take security in three ways. First is the security of the devices. Okay, so you have to make sure the device is trusted. So we have an application from Aruba called ClearPass which authenticates the device, gives it a profile and makes sure it acts according to that profile. It connects to only certain things and only communicates with certain things. And if it starts acting badly, the Aruba ClearPass can kick it off. So it doesn't stay on the network. So you avoid that intrusion. Second is we look at the application that actually is getting the data and making sure it's secure. So if it gets infiltrated with some bad data or infiltrated with some sort of virus, we can actually protect the application from passing that information to someplace else or protect that application from going down. And then lastly is data protection. What do I do with the data once I collect it? And how do I store it? And what do I shift where, right? So it's very key to us that you have all three levels of security because if you don't, you know, your Fitbit could actually take your car offline which would be really a bad thing to do especially if you're driving, right? So as you can hear, we are, you know, here and we're shooting this live. So it's a little voice from up above. She's just happy that you got the security going on. So last word, again, you are in a really fun space, a whole nother kind of wave of fantastic opportunity coming out of technology. What are you most excited about in the short term? What are you working on in the next six months? Kind of your top priorities. I'm most excited about is the two teams within a company coming together. You know, IT for years has been seen as a cost center. IT has been seen as so many who keeps the business up and running. IT actually has the opportunity here and now to actually improve the processes within a company, improve products for a company and actually make a huge difference. So the IT managers out there in the world, right? This is your chance to shine. Take this as an opportunity to go see your counterparts in engineering or in production and go make a difference in, you know, in what they do every day. That's true. You can really make a difference. You really can. That's great. Well, Doug, thanks for taking a minute out of your busy day. You're probably one of the busiest guys here at this show I would have met. At least today. At least today. So thank you, Jeff. Absolutely. I'm Jeff Rick with Doug Othout. We are at HPE Discover Las Vegas or HPE Discover Las Vegas 2016. Thanks for watching.