 The Cube at EMC World 2014 is brought to you by EMC. Redefine VCE, innovating the world's first converged infrastructure solution for private cloud computing. Brocade, say goodbye to the status quo and hello to Brocade. And we're back. This is SiliconANGLE TV's live wall-to-wall coverage from EMC World 2014 in Las Vegas. I'm Stu Miniman with wikibond.org. Joining me for this focus on cloud solutions is my co-host Steve Keniston. And joining us for this segment is Peter Kutt, who's VP and General Manager of EMC's Cloud Business Unit. Always looking to extract the signal from noise to find the best guess we have. So Peter, it's your first time on theCUBE. Thanks so much for joining us. No, thank you for having me. Appreciate it. So we were chatting a little bit offhand before the segment, talking about how, if this was just a storage show, there wouldn't be 12 to 15,000 people here. And of course, EMC World covers much more than that. We're talking about not only the entire federation, all the partners, but things like big data, the move to the third platform, mobile, and of course cloud, which is your area. Can you give our audience just a little bit as to what is the Cloud Business Unit at EMC and how that fits into the EMC ecosystem? Sure, great question. So when you think about it, EMC's basically step back and look at the kind of capabilities we have around all the pieces in the puzzle and the federation that need to be plugged together as well as in the industry. And what we've done in the past about pulling solutions together, but double down on that investment and create really engineered offerings. So truly engineered offerings where customers have been doing integration on their sites for the management and orchestration layers down to the storage and the data services and backup and all the things that go around it. But now, effectively, we've provided kind of an engineered solution that they can marry with our capabilities and services and educational services to change people and process around it. So it's not only the outcome or end result they get, but also the way to get transformed. Okay, if you could just unpack that a little for us. What are the piece parts that you put together and who's your ultimate end audience? Yeah, so the first thing, end audience would absolutely be the line of business and the business owners and really empowering developers and others to be able to consume IT resources on demand and as they want to do it. So putting them into the control seat, but with the semblance of being able to measure what they use. So giving them a very cloud-like experience on-premise with the security and agility that they need to basically help drive IT in from what I would call a cost center into what I'd call a value center or even driving revenue. So when you look at these new applications and being able to empower your development environments, your developers, et cetera, provision quicker, be able to consume things faster. Again, it gives them the ability to make IT a valued asset. And Peter, what do you see in some of the first use cases where clients are really looking to take advantage of the cloud, start that automation process, kind of get their feet wet, help them understand it before they kind of take the big picture into some maybe big production app that they really kind of want to keep their arms around first. But what are some of the first few people are doing? Well, I think test and dev is a great application almost immediately, right? You get the capabilities to implement this. And then the beauty of this though with the EMC catalog and the data services and the other things that we surround this with is that end users and developers have the ability to basically do their own backups and restores, control their own storage tiering and make those changes dynamically in their environment so that they get control. But again, all the while under IT policy, under business management and under the kind of control and understanding of IT to the extent where they can measure it and charge it back appropriately. So test and dev is a great one, but also second platform applications that are more on demand. So, you know, SharePoint as a service, Applications as services, Database as services that allow people to be very, very, make a lot of progress very quickly in gaining value. But again, providing that quickly and the last piece would be platform as a service, you know, giving like Cloud Foundry, private environments for people to work with from a, you know, simple click and then be able to add like an HDFS store to that from our catalog. And just, you know, the package comes together and it really gives people a fully operational environment. Do you have any of that one little nugget that as I'm looking to go and deploy a cloud or a cloud as a service, that I as a practitioner, as I start down this road, I should really be thinking about first, so I make a good decision on the path I choose? Yeah, I think looking at your partners for the long term and, you know, one of the things that Joe and David have focused on for EMC is choice, right? Because as you think of making the decision of your cloud infrastructure and your cloud providers, one of the things that we've done as the Federation is really allow a lot of choice. And that includes whether it's hypervisor, we'll see as we get into overall, you know, network infrastructures, physical infrastructure. And as again, Viper is really the foundation for the cloud, it's where all our automation and immigration to the vCloud suite and really into OpenStack and Microsoft, that's where our value at and our integration is. And when you think about that, Viper's open and the announcements here, I think we'll show a little bit more of that, but again, already supports competitive storage. That's good advice. So Peter, we've talked for a few minutes here and Amazon hasn't come up yet. So, you know, when we think about cloud computing, you know, most users, you know, start with Amazon, you know, especially you talk those test dev environments, you know, they've been doing it since 2006, you know, they're cranking along with revenue, they're launching a lot of new products. You know, EMC, I think was the one that coined the term private cloud and is definitely one of the companies driving hybrid cloud. Can you talk, where do you guys, you know, rationalize the kind of public-private hybrid discussion these days and, you know, where does things like, you know, Amazon and Google and Microsoft sit in your view? Well, I think, again, everything has its place and again, it's to what you're trying to achieve and how you're trying to build it. When you think about the private cloud pieces and the on-premise, you know, really all it's, it's first of all about empowering IT to create those services of automation, of end-user capabilities, but to be able to do it with the IT semblance of in the organization, you know, some customers won't allow things to go outside the data center, some do. There are some applications that are mission-critical and need different SLAs than can be provided in certain public cloud environments. And then when you look at some of the private cloud capabilities, automated backup and restore capabilities, automated disaster recovery and high availability, things that you don't necessarily get out of a public cloud offering today, you know, those are things that you can apply and things that you've trusted for quite a long period of time in your data center. And then the other piece of this is, let's make sure we're clear, it is a hybrid cloud. So I mean, you're going to broker, really, you want IT to be able to broker those connections, allow that to public cloud providers of choice, but still provide an on-prem piece of it because I think, you know, when you look at David's and Joe's slide earlier today, you know, the investment of 44 billion versus 2 trillion, I think there's an opportunity to obviously take advantage of both private and public clouds, IAE hybrid, so. Okay, so your role, I believe, you know, covers the whole federation. So, you know, you've got Pivotal, obviously with their vision of cloud, we're very much focused on developers, you know, VMware kind of straddling in between kind of the legacy and pushing the new environment with VCloud hybrid service. Can you talk to us about, you know, how you fit with the federation story and how much you're spending on, you know, helping people move to, you know, those mobile applications versus, you know, doing those mission critical things that are today, you know, kind of picture for us. Sure, unpacking that, the first piece of it was looking at, so how does EMC fit in the federation? I think we fit in a great spot because when you look at VMware and you look at EMC and you look at Pivotal and combining that all together, customers don't just want infrastructure as a service, that's where they start, I agree, but the next piece is they want platform as a service, they want applications as services, and they want database as services. And again, when you look at the data services and all of the storage and the capacity behind it and all the things we can offer, high availability, disaster recovery to that cloud, it's really just about tying the best of three pieces together to deliver an end solution. So that was the first piece and the second piece of your question was more on, just that spectrum of applications, so modern application versus, you know, kind of traditional. Absolutely, back to the federation piece of it. You know, when you look at how developers will need to consume infrastructure as a service with platform as a service, because they'll need, you know, Hadoop stores, they'll need a bunch of things to actually tie that all together. If they can go to a single interface and request all of that and receive what they need, that's the power of the cloud and that's the power of, you know, we think of IT transformation overall. So I like your statement that we need to move beyond just, you know, infrastructure as a service, it's just resources, and absolutely, I mean, you're seeing people move up the stack there. You know, I guess my question is, wrapping myself around the question, is, you know, are customers ready, you know, to make this change? You know, what are you seeing in the field? What are you seeing in your field? And, you know, one of the big talking points, you know, we've had is, you know, you have storage administrators or, you know, what used to come to the show. We need cloud administrators. We need, you know, developers and, you know, those worlds are very different. So how much does that play into your world? Well, I think a lot of it, though, is there's still storage in every solution, right? There's still data services back up and high availability and disaster recovery. And again, a lot of the platform three applications will be using geographic distribution of Viper's technology as an example. So I think there's an opportunity to tie all those things together and provide services for the storage administrator to the cloud administrator. Really, the role is a little bit different, but the capabilities are so much broader and it gives you a lot more opportunity. So just to poke at that a little bit, you know, how much do I just need those services to just work? I mean, shouldn't if my orchestration layer and everything works right, my data lake that I build or whatever I have there, it should just be there. I might need a storage guy to set it up. I might need a storage guy if something breaks with the most part. A storage guy shouldn't need to be involved as much. Not for the day-to-day tasks, it's more planning its operations as normal. You know, again, the cloud end user really controls the creation. And one of the most important pieces that I think is a key thing to get across here is reclamation, right? So a lot of people really forget that the promise of the cloud is that things have ages, they have leases, they have timeframes that they work. And then there's reclamation that automatically happens as part of a deep provisioning or when an end user says I don't need these resources anymore. So it's a huge value. And to your point, day-to-day operations will change, but the planning, the growth, the capacity management and the sheer amount, as Joe mentioned, you know, looking at, you know, just the sheer amount is a 10x increase in what an individual storage administrator is going to have to deal with or a cloud administrator's going to have to deal with. It's mind-boggling to think about how they're going to manage that without automation, without that capability. I mean, just my last point on that, Steve, I know you want to jump in here with a question. If I look at what Facebook does, they can manage 20,000 servers with a single administrator and your typical enterprise admin is doing somewhere from the 300 to 700. So we're talking order of magnitude, so we need to help customers make that step and change their processes. I agree. It's people in process and scale because when you think about the automation, and again, we go back to that profit center where maybe not profit center, but we call it revenue center and value center that IT can become. I think those are the key things where, you know, especially getting to that, you know, IT as a service model and you go in to get to your budget and people are looking at as investment. Back to your question earlier, what am I seeing with our customers in the field? The ones who have made that transition to cloud and to automating for their end users or using large amounts of data to do, let's call quick analysis to get a new product to market or leveraging that large data set in a cloud environment to provide their developer's way of honing information to react to their customers. I can tell you that when direct quote from one customer is, when I go in for budgeting, again, the only people who basically, you know, don't get questioned in this case was their function, their line of business, which I won't mention what it was, but ultimately, and the IT group. And that's because of what they've done with cloud, it's because of what they've done with IT transformation as well as next-gen applications. You know, we've talked a lot about this transformation earlier this morning. We had Daryl Smith on, who was Chief Database Architect for EMC. And we were talking a little bit about databases as a service and platform as a service and IT as a service. And, you know, I kind of asked him a little bit about the question that Joe had put up this morning or it wasn't necessarily a question. He had pulled out a statistic from the IDC report about, you know, by 2020, we're going to need eight million more folks within IT to help manage things that are going on. And then we talk about cloud, we talk about automation, we talk about making things easier. So I asked Daryl, you know, so how do you rationalize we need eight million more people? And he said, you know, it's more about the lines of business coming together with IT to help kind of rationalize the decisions and the service levels and the values. How do you see that, is that? Absolutely part of it. I think one of the things that all of this is based on is IT partnering with their lines of business. As I mentioned that customer that was a specific quote of, you know, I don't get questioned when I go in for budgets is because the line of businesses are standing behind them, it's transparent and charged back, it's showback. So there's no question that the line of businesses are paying for what they use, but the end result of what they get out of the products they're producing is actually helping them generate revenue now, because they're using information to make, to help their customers make decisions faster and in their business it's a huge one. So it's a reclamation of cash. So to your point it's overall alignment with IT and the line of businesses to drive more and better services. And I have to say the other thing I'm fairly impressed with both here at the launch already, walking around the show floor, hearing a lot of things, this conversation, right? You know, I think a lot of folks that maybe this dates myself, right? EMC is kind of this, you know, it's our products but it really isn't, right? There's a software layer and a software stack and software diversity that you can use to play into will allow customers to one, have that diversity that you were talking about. So when you say make choice, as you were saying before, you know, what's that one piece of advice you give customers? Make sure that you're open to a choice. You guys are providing customers with that choice. We are, we are. And it's across the board. Think of it as I mentioned it before, really from compute down to network to storage. You know, again, supporting our competitors in a true sense with Viper, but also providing the automation and the provisioning and the kind of just taping all of that automation that Stu mentioned earlier and providing it to the industry so that we can get that across platforms. We can make sure, we can have the choice out there but still get the end result. Which really, if you think about cloud and IT as a service, infrastructure as a service, platform as a service, remember, IT is the target to make it easier to administer but really the end user actually controls everything. And they decide, now there's policies, the beauty of the private cloud is there's a bunch of policies that you can put in there and then manage when they go out and when they stay and again, it's all up to IT in the business processes. But back to the point is that, you know, the control is really in the end user's hand. They get the service they want with the SLA they need. And again, it's all about choice for them. And it's doing that without having the end user become one of those 8 million IT people themselves, right? Right. It's simplifying that process. That's right. That's right. They basically go in and they go into a service catalog and they choose whatever they're looking for, whatever they request and they get it. And again, leasing and making sure the reclamation happens so that there's not a lot of waste or sprawl gives you the capabilities and then again, certain service levels are something that people can choose. Or if IT decides that maybe certain service level should be restricted to production or to certain things, it's a very easy piece to customize. So again, service level maps to what is the requirement as opposed to and what people want to pay for. Right. So Peter, you know, when I think about some of the cloud offerings that are out there, the Federation, you know, has a few services. You look at, you know, there's VCloud Hybrid Service and Pivotal has some pieces. One of the biggest strengths of EMC is that, you know, they've got a sales force out there and the whole ecosystem has that. From, you know, I guess the question I want to ask is, does EMC need to build a cloud if it wants to be successful in there or is the combination of the helping customers build their kind of private and hybrid and the services like VCloud Hybrid Service and what Pivotal is doing, is that where you put the target? When I think of EMC as a player in cloud, you know, what's the bumper sticker you want to put on that? I think it's the message of the hybrid cloud and I think that's the bumper sticker and then to kind of unpack that to answer your question. I think the pieces are making sure that you understand that there is, is most likely going to be a private cloud component of any of this, right? There is going to be an on-prem piece in most cases and if there's not, as David mentioned earlier today, the EMC Hybrid Cloud Services is now a Federation asset. So it was mentioned that way. So when you think of it from perspective of the Federation go to market for cloud, it allows us to tie the on-prem and the off-prem but our service providers are also really, really partaking in this and again, it allows us to broker those connections, do provisioning, you know, it's not just about VCHS. So I really think about that base core component on-prem that allows you to basically connect out to whatever your public cloud provider of choice is because again, I want to go back to choice. I want to make sure that we don't say it's just one or the other. There are AWS as a choice, VCHS as a choice, other service providers in our catalog are choices and again, it's all up to the customer and the relationship they want but the on-prem piece, when you think about pulling together VMware, Pivotal and again, EMC infrastructure and all the services around it, again, it gives customers a very robust offering and it's an engineered solution. It is a built cloud meaning that it's all integrated all the way through and the end user can consume, you know, pretty much as it's delivered. All right, well Peter, hey, I really appreciate you coming in, digging through all the solutions here. We're going to talk about service providers some of our other guests on here. Look forward to finding all the cloud discussions that we have here and welcome to be in a CUBE alum. So Peter Cutts, VP and general manager of EMC's cloud business unit. This is Stu Miniman and Steve Keniston, breaking it all down on the CUBE and we'll be right back with our next guest.