 Live from Las Vegas, it's theCUBE, covering HPE Discover 2017, brought to you by Hewlett Packard Enterprise. Welcome back everyone, we are here live in Las Vegas for HPE Hewlett Packard Enterprise Discover 2017. This is theCUBE, SiliconANGLE's flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier with my co-host Dave Vellante. Our next guest is Phillip Catrone, who's the VP and General Manager of Worldwide OEM, Data Center Infrastructure Group. You're taking all the stuff and offering it out to customers for HPE. The portfolio's massive, welcome to theCUBE. That's right, hey, thank you so much. It's great to be here. And what a great business, you know? I got to tell you, we have thousands of customers. Multiple billions of dollars of revenue, double digit growth for the past five years. It's an awesome business. And I'd love to talk to you about all the vertical markets that we're taking care of. So let's start in with the strategy. So we see HPE, okay, do not have a cloud play, which is fine. I mean, what does a cloud play really mean? The cloud is everywhere, so it's not like a cloud play, kind of reminds me of the internet play. What's your internet play? It's the internet. So you guys are seeing the cloud all around you with other folks. That's an OEM opportunity in and of itself as people become service providers. The solutions are all over the place as well. There are service providers, but we find with OEM customers. Let's think about OEM customers as this. Let's talk about edge for a moment. We move compute to the edge as far as possible, right? It's an in vogue. It's a current contemporary topic of saying at the edge. In OEM, we work with customers, say in healthcare. Whether you want records at the hospital, having it in a private cloud, accessible to all doctors. But it goes a step further. You need to acquire the data first. Now let's talk about a CT scanner. A CT scanner needs a lot of processing to produce the image. So we'll put a compute specialized compute server inside the CT scanner to receive probably a terabyte of data per minute that has to be recorded flawlessly into the server. Now we accumulate that information. Now it's not just one record. It's thousands of records. Now we can take doctors and take a look at all that information to try to create better outcomes for patients. So think about pushing all of that data to a private cloud inside of a hospital in a healthcare example. Now you can look at video surveillance, another great example, manufacturing, control of assets on your manufacturing floor and possibly even telecommunications. So think about not just cloud but pushing it down to the edge and doing the compute processing storage there and then possibly using the cloud later on for big data analytics. I forgot to ask you the question. Why are people interested in the OEM solution from you? Because you mentioned business is good, doing over billions of dollars. But why are they wanting to OEM, YHB? Why not just buy off the shelf stuff and cobble it together? Yeah, so that's a long answer. And I hopefully have enough energy to keep you and your audience entertained here. But let me say this. If you're going to bet your business on a product, on the infrastructure, who are you going to do it with? Because it's a lot of responsibility. I can't book revenue until my OEM customers book revenue. That means they depend on Hewlett Packard Enterprise. So think about that level of responsibility. Okay, now let's think about the four components of what makes our OEM business. First off, I'm going to break this down into four S's. The first S is going to be solution. Everything around here you see at HP Discover is all about the portfolio. Resilient portfolio. What does OEMs care about? They care about great products, quality products, feature rates, great value, but they also care about long life. So why do I care about long life? Some of these customers will spend six months to eight months qualifying, certifying a solution on a server. They don't want to redo that for possibly another year or two, five years down the road. Pardon me. So they actually want to take their time and live that life out as long as it squeezes. So it's integral to their solution. It is. And they really spec it out. They're not just like bloating it, stacking and racking. That's right. But now they need someone to execute it. They need a supply chain, the second S. They may, if a customer, a small customer, inside of Iowa wants to ship product in Singapore, Japan, or South America, they need a company that can take them global. We can do that. One skew, a custom skew for that customer, the exact configuration, their image loaded in the factory deployed globally. The third S, services. Once it's deployed, they're going to need someone to maintain it. They'll do first level call on their application or something along those lines, but they need someone to get on site and actually help them fix it if something were to happen. We give that assurance in our services. And then finally, you know, the OEM business is a dedicated business. It's not a, you may have not heard about us before. They were just a covert business, but it has dedicated resources, dedicated sales staff, dedicated engineering to manage and maintain. We have like a control tower. So think about our IT customers who are receiving products into their data center. It's a one-time transaction, generally speaking, or infrequent. For OEMs, it's every week we get a PO. We've got to be executing flawlessly all the time. So we need a control tower to maintain that entire ecosystem to make sure it's a flawless execution. So what's the fourth S? So you got it? I got solutions, supply chain services. Staff, I call it dedicated resources, staff. Now I got to ask you Phil, so you, before the split of HPE, HPE had a big instrumentation business and sold presumably to a lot of, for instance, medical device applications and use cases. Was there synergy between your business and that business? How did the split affect you? Certainly affected the supply chain in a way. Supply chain shrunk. Did it affect your buying power? How did you navigate that split? So generally speaking, the two businesses were operating separately anyway, even from a supply chain perspective. And yes, it's true that there are common customers between, say, HPE today and HPE today as well. But in the case of calling on common customers, there's a workstation application where HPE specializes it. And then there's a storage or a compute from a server perspective and we specialize in that. And there actually has been minimal overlap. So actually, if anything, there's still a very collaborative relationship with HPE today. And you said it's multiple billions growing in double digits per year. And what exactly, I mean, can you give us a sense of some of the solutions that you're selling? I mean, what's hot? Yeah, I'll tell you, some great, I want to go back to, I'm going to say two items. First off, telecommunications. Telecommunications was a huge opportunity to build out of 4G. Now, 4G is out and that was billions of dollars of opportunity working with all our OEM customers. Now we're looking ahead of 5G. Now there's a tremendous opportunity and we're starting to work on the servers of tomorrow. Now, do we have the portfolio today to do 5G? Of course, but when 5G finally lands, it's probably going to be a ball. It's going to evolve and it'll probably end up even being a different server than what we actually have on the truck today because we're going to optimize and tune. But what's super, super hot, I want to go back to healthcare for a minute and it's important for all of us. When my children sometimes ask me, hey dad, what do you do for a living? Well, if I tell them I say, well, you know, OEM out, they don't want to tell that to me, right? Okay, so, no, no, we build servers and I don't understand that, what's a server? Storage, they don't get it. But if I say it this way, I help you connect that phone. Probably 90% of the phones in the United States connect to an HPE server, that's a fact. Okay, that means it's enabling. So we provide communications, we provide entertainment, we're the infrastructure behind and we save lives. How can you possibly proclaim that we save lives? I'll tell you how. When I'm telling, I'll go back to that CT scanner example. When a terabyte comes off that scanner and goes onto that server, there cannot be a hiccup. It's not buffered, it's got to land directly on it. If not, it's a missed scan. That means the patient gets re-radiated and it's an FDA offense. None of our, we got family members that have to go through CT scans, that's not a good thing. So, we help save lives. That's the perspective. Now, what's important, what's happening, what's so popular is collecting that data. And let's go to digital pathology. That's the latest thing. Now, are you familiar with digital pathology? Not really. Now, but the key point though is, is that the having the reliability is critical on the OCS. Absolutely critical. And they go to HPE for the reliability, the custom engineering, staff. That's right. These are the services you guys provide. And big data analytics, and that's where digital pathology went to. We want to close on this topic. When you go in, if someone has cancer and they take a tissue sample and they look for, they run the genome sequencing and they're looking for the mutations in the cell. Now, as you start to accumulate that, and then we work with companies that are accumulating a petabyte a week of data on this very topic. Okay, that's a lot of data. Okay, now I want to figure out what's the most effective cure? So, I can go back and look at millions of patients and look at what the therapies were for that specific mutation. That's very compelling. Now, instead of throwing a barrage of every possible treatment to treat every patient, which in and of itself is detrimental to the body, now maybe it can be very small. I talk to some doctors and they say, you know, sometimes an aspirin can be a therapy for a specific mutation. Well, why would I give it radiation? And this is the reason why data is going to, this is the power of big data. Power of big data. It's going to help us make better decisions. Well, thanks so much for coming in. Really appreciate sharing the insight. OEM opportunities are out there. And congratulations on your success. Thank you so much. Appreciate it. This is theCUBE coverage here at HPE Discover 2017. Stay with us for more. We're on day two of three days of exclusive coverage with theCUBE. I'm John Furrier with Dave Vellante. We'll be right back. Stay with us.