 Live from Vancouver, Canada, it's theCUBE. At OpenStack Summit, Vancouver, 2015. Brought to you by headline sponsors EMC, and jointly by Red Hat and Cisco, with additional sponsorship by Brocade and HP. And now your hosts, John Furrier and Stu Miniman. Okay, welcome back everyone. We are live in Vancouver, British Columbia. This is OpenStack Summit Live. This is theCUBE, Silicon Angles Flagship Program. We go out to the events to extract the signal noise. I'm John Furrier, my co-host Stu Miniman. Our next guest is Bobby Patrick, who's the CMO of HP Cloud. Welcome back to theCUBE. It's great to be here. Great to see you. It's great to be here, John. HP Cloud is really dominating in the OpenStack community, just in earning its right. You guys have been involved from day one, helped from formation, one of the top contributors, if not, I think the top code contributors. Yeah, for Kilo. And now, holding sessions, having a great party tonight, everyone's talking about the party. What's going on? Victoria, what's happening on stage here? If you recall, a year ago, we announced HP Healian, right? This is the brand to pull it all together across HP. And OpenStandard is open source for commitment from Meg Whitman across the whole company. Billion dollar commitment, actually, from the CFO, which is tremendous. And I think what's happening is we're really delivering on that, right? You look at the customers that are on stage now, like Fox or Dreamworks, or customers like Alcatel Lucent, or Intralinks that are taking our Healian OpenStack and putting in their offerings and making better offerings. We've come a long way in a year now. We've got, we're committing more code upstream to OpenStack than really any other company. Code reviews, code commits, and code changes. And we are delivering customers, we're making it simpler for enterprise to adopt, right? We're going past the stage now of science projects and really into the Type A companies using it. And I think that investment's paying off and it's showing here at a really terrific event. Gartner pretty mission science project. It was a headline on the register that Gartner analysts basically call on OpenStack science projects. It backpedaled a little bit, but that's essentially what he's saying. Mostly on the management side of it, it's talking about, but I mean, that's kind of a negative on OpenStack. But the game's changing, it's not just, I mean, what doesn't Gartner not understand? There's certainly the science projects out there, but the message here is in production, the sessions are packed, people are sitting on the floor. I mean, it's pretty intense here. Well, Gartner's infatuated with public cloud, right? And that's certainly, the numbers there are impressive, right? I think our view is that the path to hybrid cloud, which is where most enterprises want to be, they'll have multiple clouds, by some estimates, 10 clouds in just three years. The path to hybrid we believe begins with private cloud. Amazon's not focused on compatibility with other clouds and we are. So we've bought Eucalyptus, pure mock-up of AWS compatibility. OpenStack is all about private cloud elasticity and programmability. And so I think what's happening is, Forrester today, great, or this event, a great report, Lauren Nelson, if you saw hers about OpenStack as real, I think they're analysts to get it. There are other analysts that are holding different views, but we've come a long way in a year, right? And I think, come next year. It was easy to be skeptical even two years ago. Yeah, I mean, you've got big companies on stage now. We've got, there's a lot of great successes and I think private cloud as an area of focus is now becoming recognized. People are realizing, you know, secure data, like sensitive information, IP, right? It's not going to go, you know, your traditional apps. Are you going to put your traditional apps on the public cloud and rewrite them? No. So private cloud actually is built for traditional apps and built for cloud native. And that's where our focus is. So I got to ask you, obviously, there was an article in the New York Times about HP getting on the public cloud. We all know that was not true. Your bill was misquoted, Clinton Hardy probably went to market with it. So on around the Amazon summit, yes or no, are you guys in the public cloud business? We have a public cloud and run a public cloud today and it's based on OpenStack. We are in the business though of helping customers use multiple clouds and we're okay with compatibility. You can use Healian today and you can burst out to Amazon. You can burst to Azure someday in China. You can burst to Alibaba. We believe that, you know, our cloud's part of our hybrid strategy, but you know, for us to say that we're, you know, our public cloud is going to be the one everybody uses. Yeah, that's not going to happen. So there's a nuance here. This is a clear, let's get down the weeds. It's important because we've been following this so we know, I want to get this clarified for the audience out there. So it might be, someone might take the assertion, oh, they're not in the public cloud business, meaning not a pure play public cloud. General purpose commodity. You have a public cloud. You are not getting out of the public cloud component of your architecture. Your clients burst between private, hybrid and public. So it's a totality of the cloud strategy to have a public component. But if you think about HP's expertise, right, and I've learned a lot in my last year with HP, our customers, the enterprise, traditional enterprise, IT, healthcare company, sensitive data, traditional apps. You know, we're focused on moving those to cloud and then helping our customers broker and manage multiple clouds and then helping them build, you know, ultimately go cloud native, go native, right? And that focus on traditional apps is not what an Amazon's focused on. So I think, you know, we're focused on a big part of the cloud market and you know, you can't do it all. Just like Amazon doesn't have a private cloud today and doesn't go after traditional apps. So Bobby, some great points there. One of the things that we've been hearing at the show, talking about things like interoperability, but very much in an open stack viewpoint. As you said, customers are doing a lot of things. It's a multi-cloud world. Your customers, they're using Amazon, they're using Office 365, they're using Salesforce. How does HP look at helping to orchestrate, help to pull together all the various pieces of the cloud solutions that customers do for their various services? Yeah, so we believe, again, the road to hybrid and the hybrid cloud management because of private cloud. So we offer a single tool with Heliant, with Heliant called Cloud Service Automation and you can broker out to Amazon, you can broker out to, you can burst out to Azure. One tool to control it all, where's your data? Where's your data located right now? Where are your workloads located? Our viewpoint though is that the private clouds are control point. And the private clouds, what gives you the view into all the different kind of clouds that you want to use. So we absolutely want to play in that hybrid cloud management control area. We believe incompatibility with all the clouds, which is why about Eucalyptus. And that proof point, right, should answer the public cloud question pretty clearly. Yeah, well, Bobby, we know changing apps is really hard and most apps today are kind of those traditional apps that I need to have them control of them, so therefore they're on site. Going up the stack to change the applications is a big part of Heliant. Can you talk about how it's well beyond kind of the infrastructure layer and how HP's helping to change those apps? Yeah, so we're committed at the infrastructure layer from elasticity and object storage and the things you need, but also at the programmability pass layer. So Cloud Foundry is a huge, another one. You mentioned our open stack work. Our work in Cloud Foundry is equally significant, right? And we're bringing those two together. We're one of the few to actually build and integrate the two together. One common identity, making it very easy for both the developer and the operators to work together. You know, again, the idea that you can run a traditional app on a private cloud. Get, what we're finding is that customers who've deployed their traditional apps onto a private cloud. In about 12 months, get a 40% cost advantage by doing that where the freeing resources up. When a server goes down on the weekend, they don't have to come in and fix it anymore because the architecture's better. So my point is that that focus on traditional apps, again, is not where anyone else is focused on when it comes to benefiting from Cloud. Yeah. So Cloud's a portfolio to you guys. You look at the Cloud as a variety of solutions. So it's not like the pure play. Everyone's infatuated with public Cloud in Amazon. And it's been that way for a while. What's changing that now, in your opinion? I have my opinion. You know, two years ago it was easy. Amazon's winning, be like Amazon. And that's truly not the case. They're a unique animal in themselves. But in the enterprise, which they don't have a presence. I think you're finding, John, that the healthcare IT, whether your healthcare IT or your financial services IT, or you're an insurance company, that there's a general need to transform IT, to disrupt the business models, disrupt, with disruptive IT, and you need to do something different. And in healthcare IT, what we're seeing right now is that there's deployments of Cloud today to help speed clinical trials, to help save patients' lives. But the reality is 95% of that sensitive data, the HIPAA compliant data, is not going to go to Amazon. It's going to sit on a private Cloud. Somewhere secure, somewhere you can. That brings up a good point. What's the language of the customer? No one, the language of the customer isn't like pass or private. No, it's outcomes. They look at resources, and what's available to them. Well, it's, and they take it up a level, right? It's what outcomes matter, right? How do I free up my IT resources that are constrained, managing existing systems? But more importantly, how do I help have IT grow the business? How do I build, how do I increase customer satisfaction? How do I collaborate better with my partners? And Cloud is a big part of that. What specific conversations are you having with customers? Be specific, not just on outcome, but like try to drill down, that you're having top three conversations that are going on with HP and their customers. Yeah, how do I, how do I, okay. With context to Cloud. Right, so it's really, how do you make it simple for me, right? This is how can you really take me on this, and then the big gap are skills. Because it's not just technology, it's people and process. So can you provide the skills, the training, the education? Can you compliment my teams? We have a large OpenStack professional services team that a year ago we didn't even exist, it's worldwide, with some of the best skills in OpenStack. That's because the skills part of the equation is really important. So I think it's not just technology, it's people and process. It's things like, hey, you can benefit from private Cloud with your existing world today, and free up resources, and then do new. Those conversations are very frequent and they're in every industry. Yeah, so Bobby, HP is a big contributor to what's going on OpenStack. I talked about the Cloud Foundry piece. Talk about it, they're customers that you're jointly developing with, because that's a big story here at the OpenStack. Yeah, so in certain industries like Telco, right? Where people want to use OpenStack to virtualize networks, because it's called network functions virtualization, to get tons of cost savings, but they also want to reinvent their business. They want to go create new services. You know, they're all into OpenStack, but they're saying, you know what, I might create some secret sauce here. I may not want to all go upstream. And so what we found, here's a change we found over the last year. A year ago we would have said, we really want to package up and make OpenStack simple, and make it repeatable. What we're finding is, particularly in industries like Telco, is it's custom. You've got to be able to go in there, augment it. Each company has a bit of a different strategy, and they want to extend it. And they may want to keep some of that still private for competitive advantage. And so you've got to be able to provide the services along with the software to help make that Telco successful. For the folks out there watching the horn here, it's, I'm looking out over some cruise ships. We're in Vancouver. It's a great venue. You get a party going on tonight. The vibe here is very, very strong this year. You're seeing a lot of learning. Again, it brings me back to the old VMware days when there was early ecosystem, the old Microsoft days in the 90s. I mean, people are sitting on the floors. I mean, this isn't like, it's beyond the hype. It's actually really happening. It's on a path to maturity with OpenStack. What's the vibe here? Inside the venue, just share your observations. What are you noticing? I think the big difference is people this time are proud. Right, so for example, we have these, and you might want to, John, put one of these on your suit here. But we have, for all of the projects, we have these Trove Troopers, Swift Justice for the Swift Project, Ironic Alchemist, Keystone Kings. And it's kind of interesting. People are lining up to get these and iron them on to their hoodies or maybe their suit jacket or not. Because they want to show off what they've done. Because Swift is now working. It's now under a lot of big applications and it's a great object storage to show your platform today. I think what's happening is there's excitement, but people are starting to see the enterprises using it, getting value out of it. And there's a lot of people here who are very proud now. A lot of these PTLs who started early on, Mark and Toronto, he'll speak with him tomorrow. He started early on when this was like a 45-person conference saying how important this is. We're now seeing the returns from that and I think people are proud. So the passion of the early income, the early guys are still here. The founders are still around, call them founders, like a better description. Early community, but yet the entrance of the big guy, Oracle here, IBM, Cisco, Red Hat, HP, and the list of- I haven't noticed most of those here, but yes. Yeah, but those big people can come in and screw up a community, right? Or the early guys get forced out because it's like all the big vendors are coming in. But this is different now. I mean, do you see the same thing we were talking earlier around? There's a nice balance between the passion and energy, the proudness of the early guys and the achievements, but also the contribution from the open source business model of the big vendors, I can say it. They're not here to burn the village. They're here to contribute and actually add value. Yeah. Talk about that dynamic. Share your perspective on that. I think it has a lot to do with the customers now that are here. It's not, again, it's not the few science projects that we heard about it over and over. It's these Type A enterprises now who are saying, I'm going to go get competitive advantage. I want to, I want cloud throughout my business. You know, and I want to disrupt my business. I want to run like a startup. I mean, we hear this more and more from enterprises now. I want to run like a startup. I want to be able to do not just four application releases a year, I want to be able to do 40 application releases a year. And doing that requires a cloud-like platform and a DevOps or other kinds of culture changes. And you've got companies here today that we're seeing throughout that weren't here six months ago, weren't in Paris, obviously weren't in the prior conferences that are diving in. And that's what I think shows the excitement. Yeah, so Bobby, it's interesting. This whole maturation of cloud, originally it was like, great, we said the kind of public cloud infatuation. And then some people said, well, maybe software's got to change anything. And hardware doesn't matter at all. Actually, like one of the things that HP's done recently, what's called the bright box, is hardware gets commoditized some, software takes care of it more, but I need somebody to put all the piece together, give me that hug and the support and everything. So, can you maybe speak a little bit of that? Well, software infrastructure definitely matters. And I think what's interesting, if you go to our booth, the HP booth, what do you find in there? Dell and Cisco equipment. I can say that again, right? In our booth are other vendors' equipment. They're throwing their stuff into your booth? It's in our booth, and it gets certified to work with Helium, because vendor lock-in is a really big issue, and we want to help minimize it. Having said that, the right hardware to solve the right problems is critical, and HP has cloud-line servers that are scaled out fast. Slim-line servers for object stores did DL pro-line servers for analytics and big workloads. And if we can put an architecture together that's smart, that helps deliver an end-to-end solution better, that's what, you know, a lot of type A customers, you know, science projects, maybe not, type A businesses and the next generation of adopters for cloud, you know, they're going to look to that end-to-end solution. They're going to want that support of the middle of the night when something goes wrong, right? So, I think it's a combination of all that, and you know, infrastructure matters. It's just a question of what's the right infrastructure for the right use case? You guys got HP Discover coming up, which big event will be there at theCUBE, so it'll be exciting, and I'm sure there's a slew of announcements that you can't talk about coming together. I've heard some rumblings, so I won't kind of let the genie out of the bottle, but I want to get your personal perspective, because I think, you know, HP is doing a lot of great work in cloud, and there's been changes, there's been turmoil, there's been, and focus is a billion dollar investment. There's a lot of meat on the bone, so I want you to just take a quick moment in the segment here, and just share, what's going on with HP from your perspective, give the quick commercial, talk about what you've done, what's shipping, what's game-changing, and just lay it out there. Well, we're making, at the top line, we're making a fundamental change across the board to solutions and outcomes that transcend different parts of the business, so one of the big, big transformational areas is helping companies transform to a hybrid infrastructure, right? That includes HealIn, that includes other technology components, so we're coming together with a solution focus versus a product or business unit line focus that we've done in the past. Separately, we've got some big announcements. We've got a big, big cloud one, and we're going to have on the stage some big customers, some of the top manufacturers, top healthcare companies in the world who are going to get on stage and talk about saving money, but more importantly, driving business growth and moving to the cloud, and traditional applications and how they benefit to the cloud. So I think it's going to be use cases, it's going to be customers' outcomes and successes, but it's going to feel like one, as you know, we're splitting on November 1st, right, into two companies, the Hewlett Packard Enterprise side, which is focused on enterprise technology infrastructure and software for business and cloud. It's going to look like a very combined focus proposition, solution-oriented, and I think that'll be clear and present across the show. The customers are asking for it. And just quick highlights, what should people know about HP Cloud? You're in business, you're doing stuff, you're selling product. Yeah, so we have the number one private cloud solution in the world, several vendors, Forrester Wave, but also Synergy recently came out and said, again, we're the number one solution for private cloud today. Most people don't know that. That's a big deal, it's a big business. We don't disclose the numbers, but it's a big business, it's growing fast. There are a lot of companies that are going to be there talking about the benefits of private cloud and we're going to demonstrate hybrid cloud management, we're going to demonstrate bursting to AWS. We're going to have a manufacturer that's largely based on AWS standards, but deploying what they call AWS satellites, which essentially are private clouds running throughout their infrastructure to store their sensitive information in their core IP. And that's going to be on stage, that's going to be shown firsthand and... There's a priority for cloud within HP, it's fair to say. Yeah, cloud is, again, cloud runs across the entire, but HP Healing is really the only pan-HP brand. Yeah, it's going to be very interesting. We're going to start to see a lot of the benefits from that investment go back two years, just even three, but go back even just two, you're going to start to see some of the fruits of the labor. And we're looking forward at HP Discover. Bobby Patrick, the CMO of HP Cloud here inside the Cube. We'll be right back with our wrap up of day two after the short break.