 Live from Las Vegas, it's theCUBE, covering Discover 2016 Las Vegas, brought to you by Hewlett Packard Enterprise. Now, here's your host, Dave Vellante. Welcome back to Discover 16 everybody, this is theCUBE, I'm Dave Vellante, and we're here at Wall-to-Wall coverage for three days from Las Vegas, this is our sixth year covering HP, now E, Discover. Alan Andreoli is here, he's the Senior Vice President and General Manager of the Global Servers Business Unit, longtime CUBE guest, Alan, welcome back, good to see you again. Dave, great to see you again. Yeah, so business is good, we were talking off camera and we had talked earlier to some of your colleagues about 80 consecutive quarters of market share growth is quantified by IDC, so congratulations on that, very proud, it's like, that's better than New England. Patriots, I'm probably not a football fan from New England, but nonetheless, it's these dynasties that people talk about, but people want to knock the leader down. How have you been able to maintain 80 straight quarters of market share growth? Yeah, you've got to celebrate good results and this was a very good quarter, so the first half year was, I think we grew almost double single digits, the server business in constant currency, we also grew in dollars, over 3%. So sorry, high single digits in growth this quarter? Almost double digits, yeah, in a declining overall market, because the overall economy has been a little difficult, so we have been winning significant market share in the second quarter. So constant currency you're growing, almost double digits in a market that's declining, that's substantial, and you're stealing share from everybody? And the way we did, and we are the only company, according to IDC, we are the only major player who have been growing, out of the top five, the other four have been declining. And is this because of the turmoil with God, for instance, to IBM selling its x86 business, the Dell EMC merger? You have Dell EMC, you have IBM becoming Lenovo, and what's left of IBM being a little disrupted. You have Cisco, who is now apparently plateauing, you know, they started with blades and they are plateauing. We won't market share in blades, we won't market share in racks, we won't market share in density optimized. So we had great results. I'm naturally a little bit of a paranoid, so I know that the future has to be won, but so far, our customers have been great with us in continuing to trust us in a market that has changed profoundly versus what it was two years ago. So we have gone to new places, and these new places are paying off. We have very different business today than we were two, three years ago, and this is working well. Well, one of the things that we've noted, and like I said, we've been here watching the progression for six years, is optimizing on workloads as a strategy that you embarked on as a company many, many years ago. And that's come to fruition, we saw the reveal with Apollo and other markets that you've targeted. Talk about that strategy of workload optimization. To my knowledge, these strategies are matched on the market still, right? Because you say we have a lot of competition, new people, new influence coming. Yes, and we can discuss about competitors, but typically they come and attack on one place. And what we have done is we've completely mapped the market, we've segmented the market in terms of workload and customer segments, and we've used a modular approach where we spend like to simplify half of our R&D to do all the key modules, and typically it's moving from generation to generation, and the other half of the R&D to specialize our offering to yield the best outcome for the typical workload that these people typically use. And this is work phenomenal. You know, we were not a very well-known player in HPC a while back, we are now by far the world leader in HPC and we have discussions with government and so on. In big data storage, we are so big that we just were announced by ITC as the world leader in total storage, including internal storage, we're just talking about that in the initial world. We are now entering into IoT. We had the largest provider to the cloud service provider, so we had the largest provider to the cloud. We continue to be the largest provider of ProLiant for the enterprise, and we are launching innovative solutions in SMB with Easy Connect, I don't know if you are doing the coverage of Easy Connect, we are inventing a new IT form factor for the branch or the small enterprise. We've only heard a little bit about that, talk more about this Easy Connect. So it's, we're trying new things. And so this new thing is basically we saw, the thinking process was the following. Who would have the highest likelihood of looking at the public cloud? People who are not IT friendly, which means small companies or places where there is no IT specialist. So what could we do to run IT in a box? That does wireless connectivity that manages what you pay to Amazon or to Azure or whatever. That gives you some basic storage, if there is stuff that you want to store in-house or whatever, and we created an appliance, which has the form factor of, it's like slim like this, and this is the size, more or less. You can put it on the desk, on the wall, on the ceiling or whatever you'd like. And it does everything you want. You don't take care of it. So if you are a chain of 1,000 stores, you have 1,000 of them, they all call home and they are managed centrally. If you adjust by yourself, you preset it at the beginning, and then it does your, so we're trying to go to these places where the future of IT, of compute will be, and we're very proud of this one and hope it will work and we do it on a subscription basis. We look at IoT and we felt, can it be that there will be the sensors in the analog world that kind of go to a gateway, which is where the industry is today, and then the gateway will call the cloud or the data center, and then there will be this gigantic amount of communication. It's crazy. It's going to multiply the connectivity in the world by a factor of 100 in the next five years. If the IoT takes off the way we think it will. Or is there compute at the edge? If you need compute at the edge, you need to then calculate everything that you can before you go to the cloud. And this is where we have reinvented Mochot with Edgeline, 1,000 and 4,000, that we have just launched. So we try to be very innovative because as a market leader, we need to look at all these growth segments. If you stay on the core segment where everybody goes, which is going against ProLiant, which is by far the market leader, the L360, the L380, we are selling millions and everybody is trying to copy that and go cheaper, obviously we will get hurt. So we need to get to all these places. And so far, so good. So you're absolutely right. You're right on about all this network traffic that's going back and forth. And Dr. Tom was on earlier. Oh, you had Dr. Tom. Yes, and he was, he shared with me some IDC figures that said 40% of the data will stay at the edge. I will tell you right now, my colleagues at IDC, no way those numbers, there's no way 60% of the data is going to go back to a central location. It's going to be much more at the edge than 40%. It's just, it's going to be too expensive. It's too slow. Then Dr. Tom is going to be super successful. Yes, because that's our conclusion. That's why we're doing what we do. Fundamentally, the edge computing is critical and there's no question in our mind anyway and the models that we've run. So I think those numbers are very conservative. I think it's much, much higher at the edge. So, and nobody, you know, you hear a lot about people saying, oh, take, censor the cloud. But there's a lot of stuff that happens in between. And it seems like your strategy is to put compute where it belongs. And so, yes. And, and I'm not done with this because it's sinking process. And the cloud may not be the cloud. It may be the clouds. Yeah, yeah, it will be the clouds. Because it's hard, you know, for me it is still hard to believe that 10 years from now 90% of the data of the planet will be owned by two companies and that everything will be who controls what, you know? So I think clouds will be heterogeneous. It's going to be very interesting to see what happens in Europe, in Germany, in France, in, we know already in China, in Russia, but you know, what about Japan, whatever. So there is going to be national fragmentation to a degree. And then I believe there will be also potential fragmentation of the cloud by workload because one size doesn't fit all. When you run, IT is going to run our life. I am my own CIO, I took it off my phone, but you know, we are all our own CIO. It is so important. It cannot be that one or two companies are going to run. So our positioning is that we are the one that takes you through the journey. We took you to the data center. We are taking you now to the hybrid cloud with synergy and beyond. We're going to take you to the IoT and so on. We are the company that is fully invested in this transformation of IT for the enterprise. So workload segmentation, check, made a bet there. Hybrid cloud, you're betting that. Probably a good bet. IoT, exciting, huge potential market. You're also making a big bet on just memory-centric computing. That's the future, the new wave, which potentially adds new value that we haven't even imagined before you have the Star Trek video, things like that, which is out there. But talk about that a little bit in terms of I know it's off in the future, although we're seeing bits and pieces come in today. We had DreamWorks on earlier, talking about how that's affecting their business, non-volatile. Yeah, so I would like to say to the current horizon, which is what DreamWorks probably was talking about because that's what they love, which is persistent memory. Yes. So we, in the memory business or in the storage business, what counts is how big and how fast. And then there is another dimension, which is does it stay when it's on and off or does it goes away? And so we ask ourselves the question, how can we, because more and more of the apps are requiring direct memory access with very, very, very small latency in much bigger volumes. And they want this to be persistent. And if you can get to have much more memory being persistent around the CPU, you multiply the performance of the application. So we invented what we call, so in a server you can have the option to put memory modules. It's called a DIM. You can put as many as the server can afford to. And now we have made two sides to this memory. One side is a DRAM. DRAM is as fast as it gets. But the problem is when you switch the power off, it disappears. So on the other side, we've put a flash. It's slower than a DRAM. It's much faster than a disk or tape. But it's much slower than a DRAM. So all the flash does is to store the data of the DRAM when the DRAM goes off. There is a battery in the server. Automatically when the server is powered off for whatever reason, the data gets in the flash. So we've made the speed of a DRAM persistent. And in a number of applications, customers like Dreamworks, they love it. They love it. So this is the type of innovation that we are doing. And this is not by segment. This is our foundational. This we bring this type of innovation to all the segments, to all the servers we have. But this is the type of innovation that we do on top and beyond the rest of the industry to stay also the market leader as a whole. Right, excellent. And that's a stepping stone to a broader vision, which is we see in the machine. We'll hear more about that as well as the rest of the show. Alan, we got to leave it there. Thanks so much for coming on theCUBE. I love talking to you because you're such a clear thinker. You know this market very well. Congratulations on all the success. I'll give you the last word on Discover 2016 in Vegas. We're looking forward to being in London again in December. But what's the bumper sticker here? This is great. There are 14,000 people here. It's very, very vibrant. And this is the first discover we have as Ulet Packard Enterprise by ourselves. And it gives us a lot of focus. We are much more agile. And I think we had this morning a session for compute. And we didn't have enough people, space in the room for the people to come in and listen to the stories. So I think this, I was very happy with that. Standing room only, we love it. We're at Gile on theCUBE, bringing you all the innovations here from HPE Discover 2016. Keep right there, buddy, we'll be back with our next guest right after this. Thank you, Alan. Thank you, David.