 Live from the Sands Convention Center, Las Vegas, Nevada, extracting the signal from the noise. It's theCUBE, covering HP Discover 2015. Brought to you by HP. And now your hosts, John Furrier and Dave Vellante. Our flagship program, we go out to the events and extract the signal from the noise, SiliconANGLE, Wikibon, CrowdChat. HP Discover.Social is the unofficial HP Discover site. Go there for engagement, trending stories, trending hashtags, bunch of crowd chats and watch the live feeds, the keynote. Meg's keynote will be there, Stream Live, theCUBE and a lot of other greatness there. See what's going on in the crowd and then get more information. Our next guest, Bobby Patrick, CMO of HP Cloud. Welcome back to theCUBE, great to see you. That's great to be here again. So day one, we're here live. Meg has not yet to go on, but we got a teaser from Jason Newton. I don't know, coming to the four pillars of innovation. I mean, the messaging is pretty damn good. I got to say. It's solution-focused, transformational. It's relevant. It's right in the sweet spot. But it's interesting, right? I mean, you got hybrid infrastructure, digital enterprise, data-driven enterprise, workplace productivity, which is essentially user experience. And in between all that is the integration of security, cloud. It's not a product, it's a solution. So, you know, the cloud is an integrated world when you agile, dev ops, live in. How does that relate to the HP messaging? Because you can read into it generically. It's all products. And you guys are a big part of that. How does that weave in there? Yeah, well, I'm really excited. Cloud does run through all the four transformational areas. And it's a delivery mechanism. It's how you do business these days. The first transformational area, which is transferred to a hybrid infrastructure, I'm really excited because the word hybrid is in there. And as you know, we put a lot of time and energy into talking to customers and analysts and working through the right wording around these key areas of transformation for IT. And it's about hybrid. It's a hybrid world. It's a distributed world. It's a world where, in some cases, multiple clouds operate in a unique way. They may have proprietary open standards and they operate together, but they operate together to solve some business problem or some business outcome. With this area, though, calling it hybrid infrastructure, it goes a little farther than hybrid cloud. It goes into traditional IT, too. It's a recognition that enterprises are going to run existing applications for some time. They're going to want to modernize and move to cloud to get some benefits and lower costs and get some speed to agility. And they're going to want to build that new and cloud native. And they're going to work all three together to deliver higher market share to grow the business, higher customer satisfaction. So it's good to be part of that core message. It's a lot of bundling. We heard the word composable infrastructure from the converged infrastructure group here. You guys are talking infrastructure to service pass, integration, micro-services, micro-services, containers, orchestration, Kubernetes. I mean, it's a buzzword, bingo. No docker, you didn't say docker. Container's generically. I don't know Kubernetes. So, but we saw each other at Vancouver just recently at OpenStack, right? Which was a hot trend that's really growing now. And you guys had a lot of boots on the ground. I mean, a huge team. That points to the fact that this hybrid world is interesting and I want to ask you a question because the industry's seen a couple of these game changes in the past. TCP, IP, created networking. Networking created internet working. 3Com, switches, and Cisco. Cloud, the buzz is the same right now. Talking to all the thought leaders out there, certainly what you guys have been kind of teasing out of the past two years is it's not a one cloud world. There's a lot of inter-clouding. Not that there's a word. I mean, that's kind of like where we're seeing it. Do you agree with that? And one, what are you guys doing? What is that disruptive enabler that what TCP, IP, IP did to networking? Clouds doing. Yeah, so large, well, there's a few questions in there. But first of all, we believe that the large enterprises and governments and multinationals will have 10 plus clouds they'll use in 2018, right? And it'll be a combination of private clouds and public clouds. And then there's a category about community clouds. Community is kind of the next big focus. Vertical oriented, industry specialized, really focused on improving that kind of, I think the next big wave behind cloud. But I think what HP brings, and this is really big from, you mentioned the OpenStack Summit, that's sort of the cloud native, the science projects. I'm building brand new, net new scalable applications. HP's strength, I've been a year and a half now. The strength here is in core IT, traditional IT, mission critical apps, healthcare apps, sensitive data, electronic health records, right? And so what we've emphasized, Yeah, business. Right, right, right, real businesses. Right, and so what we're emphasizing is kind of both sides. We've got our hands all in open stack, we're the top contributor there, we're big behind open standards. But we're on the traditional side too. We're helping companies move. There's a dozen of them here talking, healthcare companies and banks talking about how they're moving to helium, but they're moving to traditional applications, saving 30 or 40% of IT to free up resources to go do new things. And what we're doing is we're putting both of these worlds together, but in a careful way. If you try to take open stack into mainstream IT today, they don't have the skills, they don't have the process in place. In some cases it's not baked. That's right, it's not, it's right. Not 100% baked, I mean it's baking out. Implementation's not easy, right? Yeah. Maybe they're R&D group, they're playing with it, but not mainstream, right? So what we're doing, and with our big flagship announcement today with Cloud System 9, is we're putting both of those together and we're saying, look, you can use this proven private cloud technology, some proprietary's in there that we've been using for years, opens that underneath, and when you're ready, you can use the APIs in open stack to say, store data, write and swift or something, but it's all kind of packaged together. But we're starting with a view that hybrid begins with private cloud, not public. So on that note, I want to drill down on the announcement to let you get that word out a little bit more deeper, but I want to ask about that plug-in with the APIs. They're not mutually exclusive, what you're saying. Right, that's right. You could actually coexist with the two. That's what it means is you don't have to, as an enterprise, you do not have to have open stack skills yet to be able to use cloud systems and get the benefits of open stack. But those APIs are there, and when you train up your developers, you could take a developer, you've learned how now in command line user URL, in my application, I can store data directly using swift and open stack using the API. It's there for you. If you installed open stack net new, net native, right? You have to know all the APIs, you don't have to know how it all works. So what we're doing is we're bringing both those worlds together, and we've got almost 3,000 customers right now, right? These are big mission critical ones. We've got a healthcare, we've got Cornell University, that's going to be on stage tomorrow talking about how with cloud system, they're saving patient lives. That's the kind of outcome I want to get to. So you're seeing companies take traditional apps, move them into the cloud. Now, are they actually moving them in? Are they putting a sort of a near on there and some kind of connection to them? And why are they moving? They're actually migrating. Well, because in cloud system you get, so when you have things like open stack underneath, you've got a resilient infrastructure you didn't have before. Servers and nodes can go down on a Saturday night because you have replication, for example. Your IT doesn't have to go in and fix it, right? So you begin to lower your cost of operations. You have the less IT staff, one of the CIOs of major manufacturers here, and he said to us yesterday, I'm going to shift my company from 85% IT operations to 85% developers by 2018. One of the largest manufacturers in the world, right? To do that though. Software developers, software developers. To do that though, you've got to find a way to free up IT who's constrained with concurrent systems, right? So what we've learned, Fox here, for example, Fox is on stage talking about how they built a media cloud. Using cloud system, they moved the traditional apps to it, freed up millions of dollars in run rate, began to serve customers better, and they were able to rescale costs. And run rate and costs, and they were able to begin to retune and rescale their organization to build applications fast to, and why didn't they build that in the public cloud? Because the information to them is sensitive. You know how media and privacy can be with movies? Imagine if that movie got out faster, right? Look at Sony. Look at Cornell University. It's while Cornell, the largest biomedical research lab in New York City. That's health records. That's clinical trial information. I asked them a question. I said, I asked their CIO, a year, what do you think you'll be percentage wise public versus private cloud? Because you're going to use probably a little bit of both, right? Yeah, I'll use both. Our website is on the public cloud. Great. We're probably going to be 95% private cloud, you said. It's healthcare. It makes us paranoid verticals are not going all public. That's right. Paranoid verticals. Companies with big systems that are mission critical are not going to rewrite them for public. This big public time risk is also business risk. That's right. Time to market and moving them over. That's right. And the business risk behind it. That's right. So, legacy is a part of it. I mean, this is about legacy. I'm a company. There's tried legacy right now running today all around the world. That's right. So, you've got obviously a different view of the world. You and your customers then sort of the public cloud spectrum. Yeah, that's right. And yeah, you see the majority of apps remaining in some kind of hybrid or private. But remember, we are fans of public cloud. So, if a customer says I want to move to public cloud, what do you say? You can use cloud system today and you can within our cloud service automation tool burst out to AWS, to Azure and control it all with a cloud system. We're fine with that. So, Bobby, I'm interested in this community cloud concept. It's fascinating to me because I think a lot of the community cloud has to do with the data underneath it around that industry. I wonder if you could talk about that. Yeah, community cloud could be geographically based. So, we're doing some community clouds in China right now. They're provincial based. They could be industry based. Maybe they're around supply chain within an industry or they're healthcare based. I think it's the idea that a community can organize processes that go across companies and a cloud can help facilitate that, right? And orchestrate process across. And I think there's going to be a big emergence of vertically oriented, industry specific, very specialized clouds that are tuned though for the processes of that industry. And that's going to kind of cloud to a whole new level. It built on your existing infrastructure, evolving that, right? Yeah, I mean, they could use some public and some private in there. Again, it doesn't matter where. It really doesn't matter where things, where applications land so much as you can control them. You can provide compliance. And in some cases, you know, it has to be somewhere inside your own four walls. In some cases, you may say it's okay running on a availability zone of Amazon East. So, essentially you're sort of replicating the allure of the public cloud within your control space, right? Right, the private cloud will only be successful if a private cloud, a CIO can provide their developers a cloud-like experience, right? That's the only way. Otherwise, it's going to be a bunch of hardware and software sitting there unused, right? And that experience is DevOps driven, integrated stacks. It's service catalog as well. It's where IT users can add access to catalog and provision something really quickly. It's APIs that are programmable. It's the polyglot set of tools that fit the different problems people have. Like Mongo or React or Cassandra. It's having that availability, but having that availability within your own. And I'm going to do that. I'm going to roll in an appliance to get that capability. That's right. That's part of it, right? And that's going to be my VMware appliance or my OpenStack appliance or my Red Hat appliance. Well, with B2, the cloud system is this multi-vendor. You can run all those. In fact, Cloud System 9 today, we launched for Hyper-V. So, we don't care. You can use Cloud System if you're a VMware shop. You can use it if you want to be bare metal. You can use it if you can use whatever hypervisor you want to use it. That's the beauty of the cloud. What don't we support? The reason, the, don't we support? Coball. Yeah. Yeah. Quadran. Right. And you got to remember, the cloud system, and not 9.0 is critical because if you look at synergy research or forestry research, we're far in the leader wave. We're number one, coordinated synergy in the private cloud. And private cloud, new numbers are coming out from 451 that show that private cloud markets growing faster than public. It'll be $24 billion in 2018, right? That's, those aren't small numbers, right? Now again, it's people want hybrid. The destination is hybrid. So, we just believe that the path to hybrid begins with a compatible private cloud. I mean, the theme here that I'm getting the vibe, we'll see the keynote. It's all about the customers, right? Right. Get solutions messaging, which is great from a directional company, marching orders to that point. When you get down into the weeds, it's how they buying, right? That's right. So, they're buying patterns, describe what they're doing. Right. They're buying private because they don't want to get ahead of their skis because there's a path. There's issues, right? Well, you don't really write the applications, there's a lot of risk in it, right? Risk, there's time, there's people, there's resources, and there's stability, all those things that you mentioned about OpenStack and others. And even with Amazon as the same challenge, and they're trying to fill in the holes there too. So, I got to ask you, with this new announcement, we've been following Cloud System Matrix back in the day. Right. Back in the day, four years ago. Remember we had- Don't take yourselves on, John. Yeah, yeah. It's our sixth page we discovered. All right. So, we've been seeing the whole evolution. So, Cloud System Matrix became Cloud System, and that was really about HP provided to their customers a data center version of a private cloud. That's right. That was the journey to the private cloud. That's right. Multi-tenancy and some self-service in there, that's right. And the requirements were very specific. I got security, I have, you know, data governance, all the compliance stuff. That's right. You guys are good at HP as a company, and others are good, they're bread and butter. That's right. But now you throw a cloud on, you mentioned, they want cloud in private. Right. Expand more on that, and what big examples can you give? Because that is really what the rage of DevOps is. That's agile program. That's what Docker containers are talking about. This is the new app development environment. That's right. So, how do I do that with legacy and new? It's speed to innovation and time to values. Fox Media Cloud went from months to minutes in shipping video. Now, it's obviously tape to digital, right? But that ability, and they have proven data that shows they grab market share, increase customer satisfaction, right? And the ability then to build an application experience. On the business front, that they was enabled by the tech. On the business front, enabled by the technology, right? So, that Media Cloud earned John Herbert, the CIO, information week 16, I think, for that project in this last information week 100 round. So, there's very clear and concrete to take Cornell University again, while Cornell, they are about speeding clinical trials. Can I get a clinical trial up faster, right? But that means it's got to be still secure. That means more data. So, there's a few projects there. One is, I want to get the clinical trial up faster. I want them to be able to build the experience for that faster. My developers do that, so I need that experience. But then I got to store a lot more. So, what is it? They've got cloud system for the automation. They're now using OpenStack Swift to store all of that Toronto Health Record data, which is a hockey stick, growth and data. Just a surge of data, right? But in a very efficient, reliable, resilient way. So, it's an infrastructure as a service play, it's a platform as a service play, and it's a developer enablement play. So, I got to ask a hard question because everyone wants to know how you guys are vis-a-vis the competition. You know the name names, but like you guys are a hybrid cloud provider now that has view into the legacy infrastructure of all your customers, while future proofing them with a roadmap to Agile and all the greatness of what you guys provide. Cloud bubble social. So, what does a hybrid cloud provider mean? One. And two, compare that against some of the competition. You can name names or just talk to them. Yeah, hybrid cloud provider means, as a single provider, I can give you the ability to use and support multiple distinct clouds. Ideally, a single tool makes it easy to have visibility and control. To measure, to meter, to charge back, to control, you know, where the workloads are, know where the locality of data is. Probably because the CIO needs, or the CFO needs governance. They need to be able to provide compliance to ensure the data is accurate and safe and manage that all. So, the difference between us and take IBM. IBM believes that the path to hybrid begins with public cloud. They bought software. They talk about blue mixers as primarily a hosted service. They're not thinking about it from a private cloud perspective starting point. We believe, actually, the traditional IT matters. We believe that the bulk of freeing up traditional IT costs and enabling IT to transform, to be agile, to be a service provider, to be an internal service provider, starts with taking those traditional IT applications and making them more efficient. I mean, Dave and I were talking on our intro package today that assessing what HP has to do. Of course, we're speculating and pontificating and opining, but one of the things was, we said, you know, everyone's got to play to their strengths, right? And we were talking about this earlier, okay. IBM has a strategy, other people have a strategy to play to their strengths. You guys are playing to your strengths. And you're saying that's IT as a base and extending in and IBM makes a little bit of a different perspective, but others play to their strengths. What is that strength that, because there's plenty of room, the swim lanes are being developed and hey, IBM got a different approach and if that's their provocative, you know. Our strength is that our existing customers today depend on us for systems that are mission critical and business critical today. Systems that are taking a lot of their resources. And some systems 90% of their time and cost to maintain and they want us to take them to the next step. And the journey is not a skip and jump over and be all cloud native tomorrow. The journey is free up my resources by deploying, you know, a smart private cloud, getting some self-service, you know, scaling up my organization, you know, giving a platform that allows you to support multiple clouds. So you have those, that flexibility, you know. That was the message actually open stack that cloud native apps just aren't developing fast. Because it's new. Right. So you're saying that essentially the difference that you mentioned IBM, you're not trying to force customers to sort of wash it through a PAS layer and go into your infrastructure as a service. Is that really sort of the difference? Right, what I'm saying is, when you're a public cloud provider like Amazon or SoftLayer, you're not thinking about compatibility with other clouds. You're just not. You're not thinking about a world where people are going to use many, many different clouds. You're thinking about, you know, here's how my public cloud runs. Here's how it runs. And if you run it here, maybe I'll provide some extension to the private. We actually have the complete opposite view. We say, you know, our private cloud's all about compatibility. We've got eucalyptus, right? GE will be on stage tomorrow talking about, yeah, they're all AWS, but not all the data is going to be on AWS, a public cloud. So they want AWS standards. So what do they do? They deploy eucalyptus and what do they call them AWS satellites, right? It's private cloud. So I got to ask about the, the compatibility with that. Because that's interesting because you built, so let me straight up. So you believe in inter-clouding to use that term I just made up where there's an interoperability between clouds. Data importability are underneath this. That's right. Making that frictionless is what we're all about, right? Multiple clouds is what customers are going to have. That's right, multiple clouds. And you think about a multinational where you have data that may need to be in EU for citizens' information, safe harbor or other kind of, or you're in China or different places. There's data that's got to sit within those locations, right? They're going to be different clouds. Maybe you use Alibaba, right? Compatibility with Alibaba is going to be critical for our customers in China. So, you know, we view that as a big opportunity for us. You have a tough job, Bobby. I got to say, you know, you guys have a good group of people who've gotten to know you guys pretty well. Yeah, thanks. Solid team, OpenStack, work speaks for itself and you really can't hide the fact that you guys done a number one contribution. Right. But it's a hard game right now. And I was also speculating on the intro that you guys just haven't really clicked on your product thing because it's hard, right? And the market's evolving. The product market's evolving right in front of you. So you guys are doing a great job. I can say that from seeing firsthand. But it's hard and it's still evolving. Well, the shiny penny is public, the public cloud. They've produced the least numbers. Well, that's glamorous. That's the shiny penny and, you know, the hard work is with mission critical systems and business critical apps and things that drive real business. And you guys are sticking to your knitting. You're also playing in the open source. You have investments in both sides. So I got to ask you for the folks out there that are trying, and your job is to communicate the value as a market from a marketing standpoint. Share with the folks out there what's going on, that if they're looking and scratching their head saying, I just don't get the HP cloud group. What the hell are they doing? I mean, what do you say to that? And that's what people want to know. And you guys have a good story and your job is kind of cleaning it up a little bit. And that's why it's wise. What's the story that you guys are delivering for the folks out there who are wanting it? Yeah, so Healian is all, I mean, Healian's one year old, right? For one year old, Discover last year said on here, we talked about just the launch of Healian, is that we're focused on real applications that matter to businesses. We're focused on business outcomes. We're focused on cloud technology that can help our customers transition from traditional IT and move to cloud. And we are focused on core IT systems. We're focused, and we're focused on automation and orchestration and all the tools that are necessary to make that easy. And you're in the cloud business. And we're in the cloud business, but we're not in the general purpose, commodity, public cloud, race to zero, you know, infrastructure, business. We're fine with being compatible with that. And you could use that for certain processes and certain workloads, and we're going to make that easy for our customers. And you're playing years trends. I would argue that Amazon's $710 billion is not a race to zero, but that's a different business model. That's their deal, right? Your deal at HP is you got enterprise legacy going back to Bill and Dave in 1939, and that's grown over the years. And that's just not a business model. You're saying it's useful to look at from an application standpoint, which is what you're talking about, is the application portfolio is a hybrid. We like to talk in terms of, you know, the Jeffrey Morris systems of record, systems of engagement, and now systems of intelligence. And those things will maybe live on different clouds. So what are you seeing in terms of that sort of transition and the infrastructure that those systems are running on? Yes, the systems of record are typically monolithic applications today, right? A lot of SAP systems. SAP is one of the most popular workloads right now in Helian, right? I mean, how many SAP systems are moving to Amazon, right? I mean, you know, they've, I'm sure they have a partnership. I'm sure you go to a website and find something somewhere, but SAP, Oracle, those aren't moving to the public cloud. They're really not. They're doing mostly POC. Not in a big way, right? Sales enablement. That's right. That's right. Those physical apps aren't moving to the public cloud. Right, but we do think, you know, it's a, you know, they call it a bimodal world or IT of two speeds, right? I mean, the SAP system, though, will benefit from a mobile front end, right? For certain, right? How great is that? You can run that on the same cloud. You move the cloud system, you can do that. You can move SAP over, you can free up 30% of your IT resources, and you can build a MongoDB based mobile application, right, using some mobile tools from RICP, Progress, or Mendex, and you can extend your SAP app, and you can control it all. I mean, that's what IT talks to us about every day, right? And, you know, we're just starting at it from a point of we're going to make that ERP system work in cloud, and we're going to make it very efficient. We're going to help free up resources, and we're going to take you on a path to cloud native. And that's strategy is working. And by the way, you look at our growth rate, right? I think I said 2,000 customers last year over 3,000 now, right? You know, we don't give our numbers out yet, but the growth rate's significant. And, you know, we've got a dozen customers on stage talking about real outcomes and real business outcomes, saving patient lives and quantitative. We've come a long way in a year, and I think that's the kind, what's the, when more people hear about that, and it spreads, right? It's hard to say the course when everyone's trying to, you know, poke it out, yeah, you're doing it wrong, but you guys have been disciplined. You've been staying on the alien path, it's been solid, it's working. That's right. What's your plans for the future this year? I mean, we've got it one minute left on the segment, share it as much as you can. What the goals are for the group? What's your marketing objectives? What do you guys want to nail down? Come HP to serve London? So, one of the things you should see here at Discovery is there's more focus on developers and DevOps, right? And while developers are still a small percentage, a lot of CIOs talk about the rise of the developer class. You know, how can they better enable and empower their developers? How can they get developers to be able to, you know, want to use their platform and get the efficiency, and so I do want to spend time on that side of the equation, but not saying, how do I do a bunch of really cool meetups that attract developers to come to it? No, I want to help the CIO help their developers. How do you make the CIO understand their developers, give them the tools they need, make it easy for them? And I think that's a really unique opportunity for HP where we can actually help our IT customers, you know, serve their developers better, which then serves our business better. Rise of the developer class is critical. You could also use the OpenStack as the bottoms up with the organic, and then you probably could pull off with the Helion Success and Apple, you know, worldwide developer-like conference model in the future. I mean, but that's where it's going. Those discussions are in progress. But that's where you see it going, right? That's right. You could engage actual coders, right? The DevOps guys, top-down, bottom-up, you could do both. That's right, and I think by helping IT serve their developers, thinking about it that way, that's a unique view from our perspective, versus us going directly to the end developers. Okay, Bobby Patrick, the CMO of HP Cloud, always a great guest on theCUBE. Candid, as always. Not afraid to answer the tough questions, doing great with Helion. Congratulations on the one-year anniversary. Check out the HP Helion Cloud System 9 announcement. They are a hybrid cloud provider, and I want to ask a couple more questions. We didn't have time about the internal cross-functional. We can get that later. We'll see you later. This is theCUBE, we'll be right back. Go to hpdiscover.social, our social site that we put together with theCUBE, CrowdChat's in conjunction with social media influencers. Go there, go to CrowdChat, engage, join the conversation. Hashtag HP Discover. We'll be right back with more after this short break.