 Live from the Santa Clara Convention Center, this is SiliconAngle.tv's exclusive coverage of Hitachi Information Form 2010. Now, Inside the Cube from SiliconAngle.tv. Okay, we're back. SiliconAngle.com's continuous coverage of Silicon Valley Technology. We are the Cube, Inside the Cube, but Tom Pranav, who's the CEO of Veyon. Veyon. Veyon, okay, well thanks for joining the Cube. We're here at the Hitachi Big Announcement. They're announcing a whole new platform, years in the works, game changing, very high end. I'm here with my co-host Dave Vellante, founder of wikibond.org, a research firm based in Massachusetts. Dave, take it away. Tom, tell us a little bit about Veyon. Veyon is a 30-year-old business. We qualify in federal government speak as a Vietnam veteran owned small business. We've been a Hitachi data systems partner since they were formed in 88. Prior to that, we were selling Hitachi product. So we've basically been representing Hitachi data systems or Hitachi limited product in the federal marketplace for the last 30 years. We are their longest partner in the IT business outside of Japan. Okay, that's pretty key for Hitachi, obviously. They need a way to sell to the U.S. government. So obviously a critical partner. Talk a little, go ahead. Our business is mainly federal government and public sector. So we do about 95, 96% of our business is in those two market segments of that 96, 97%, 80% of its federal government and 20% is in the public sector. So we're all over the United States, Texas, California, Wisconsin, Michigan, Illinois, Indiana, Florida, et cetera. You know, we were talking off camera that I used to be involved in the government business at IDC and it used to be that the government CIO is one of the benchmark themselves against commercial businesses. But I'm seeing actually a real change now. We're seeing some real innovation going on in the government. A lot of cloud adoption. Is that an accurate perception? Is the government sort of becoming leading edge in some of those things? Well, the CIO for the federal government is pushing cloud as a major initiative. The General Services Administration is pushing a cloud project for the public cloud. And most large entities within the federal government are looking at how to do private clouds. The vast majority of the federal government, while they probably would like to use a public cloud because of security of data. You don't want your social security records on a public cloud. Exactly. So it's things like that are being driven to a private cloud. But there is a huge push within the federal market space to adopt the cloud construct and get the benefits from that kind of structure. Tom, Jack Domei was talking about the notion of governance. Obviously, in the government sector, that's a big issue. You've got data. You've got to have it secured. Obviously, it's minimum. Governance, what does that mean to enterprises? Because the data needs to be managed. And he was really referring to that as, okay, you've got data out there. How long is it going to be lasting for? He was teasing that out. Can you elaborate on what that kind of means for the average person out there? What are the challenges around data governance? The half of the data required to be stored in the United States today is driven by federal government rules and regulations. Those rules and regulations get driven down to states, counties, cities, et cetera. And then there's data that you need to maintain yourself as an individual, such as your IRS tax records. So they can go back seven years and audit you. Hopefully somewhere you've got hidden your seven-year-old IRS filings and the data that went with it. So trying to manage that and trying to make sure that data is available according to the rules and regulations and how long it needs to be kept and at what level. So part of the announcement today is huge for the federal government and the public sector. And the huge part is being able to keep the data that you're necessary to keep but basically drive it down the different tiers as it isn't used. And within the federal market space, much like commercial market space, data gets created and it's used probably for a week or 10 days. And then it slowly, you know, falls... Trails away. Trails away. And with the tiering that's in the marketplace today, they can meet the requirements to govern that. The command suite that they've created around this is going to help the operational people within the centers and be able to drive that business and to better manage that. That's the efficiency message basically they're talking about. That is, yes. Talk a little bit more about the Hitachi relationship. I mean, obviously there's a long 30-year relationship there, but why Hitachi? I mean, you've got a lot of choices out there. Why HDS? We basically, unlike most resellers in the marketplace, represent two or three different products. That's four or five different products. Hitachi is our major partner and while we do periodically because you have like for like bids, you have to supply some other products. We lead with Hitachi and we work hard on representing Hitachi across the federal market space and then in isolated public sectors. The reason we've done that is in part the technology that from day one they brought to the marketplace. The Hitachi product has been the most reliable product in the marketplace since they brought the storage to the marketplace and it continually gets stronger and more reliable and with a lot more feature and function. We have a lot of customers that fall into the Intel community and into the Defense Department and we are running mission-critical applications that support the warfighter and the last thing you want to do is have some kind of an outage and you want to be able to manage that product as best you can and manage it from very remote locations in places you and I would never prefer to go to. Alright, we're talking to Tom Frauna from Vion. He's the CEO of Vion and Vion is a big HDS partner in the federal government. We're talking about the federal government actually innovating. We're talking about cloud, the federal government CIO, security, a big inhibitor and maybe the federal government is going to lead there. Tom, last word for you. What advice would you give to your customers as it relates to storage in general? The requirements are going to keep growing. You absolutely have to have a good management structure in place both to build the infrastructure but to manage the infrastructure. The key thing today about this announcement is fourfold there are customers within the federal government market space that are in a power grid that has no more power. So when you introduce a product it reduces the power requirements substantially and allows you also to grow the amount of data you can put in a given footprint is huge to some of these customers and accounts and I think that's going to be one of the things with this announcement that's really going to attract well with the federal government marketplace. Efficiency, innovation, sustainability. Tom Frauna, great to have you on theCUBE. Thanks so much for coming on. My pleasure. Thanks for having me. Good to see you.