Hewlett Packard Enterprise Company (HPE) Earnings Call Transcript & Summary

Okay. We're now going to dive right into some of the news and get into the GreenLake announcement details. And with me to do that is Keith White, who's the Senior Vice President and General Manager for GreenLake Cloud Services at Hewlett Packard Enterprise. Keith, thanks for your time. Great to see you.

Hey, thanks so much for having me. I'm really excited to be here.

You're welcome. So listen, before we get into the hard news, can you give us an update on just GreenLake and the business? How's it going?

You bet. No, it's fantastic. And thanks for the opportunity, again. And hey, I hope everyone's at home staying safe and healthy. It's been a great year for HPE GreenLake. There's a ton of momentum that we're seeing in the marketplace. We've booked over $4 billion of total contract value to date. And that's over 1,000 customers worldwide. And frankly, it's worldwide. It's in 50 different countries. And this is a variety of solutions, variety of workloads. So really just tons of momentum. But it's not just about accelerating the current momentum. It's really about listening to our customers, staying ahead of their demands, delivering more value to them and really executing on the HPE GreenLake promise.

Great. Thanks for that. And really great detail, congratulations on the progress, but I know you're not done. So let's get to the news. What do people need to know?

Awesome. Yes, there's 3 things that we want to share with you today. So first is all about high-performance computing. So I can go into some details on that. We're actually delivering new industry workloads, which I think will be exciting for a lot of the major industries that are out there. And then we're expanding our HPE capabilities just to make things easier and more effective. So first off, we're excited to announce today an acceleration of mainstream enterprise adoption for high-performance computing through HPE GreenLake. And in essence, what we're really excited about is this whole idea of -- it's a unique opportunity to provide customers with the power of an agile, elastic, pay-per-use cloud experience with HPE's market HPC systems. So pretty soon, any enterprise will be able to tackle their most demanding compute and data-intensive workloads, power artificial intelligence and machine learning initiatives to provide better business insights and outcomes. And again, providing things like faster time to insight and accelerated innovation. So today's news is really going to help speed up deployment of HPC projects by 75% and reduce TCO by up to 40% for customers.

That's awesome. Excited to learn more about the HPC piece especially. So tell us what's really different about the news today from your perspective?

No, that's a great thing. And the idea is to really help customers with their business outcomes, from building safer cars to improving their manufacturing lines with sustainable materials, advancing discovery for drug treatment, especially in this time of COVID or making critical millisecond decisions for those finance markets. So you'll see a lot of benefits and a lot of differentiation for customers in a variety of different scenarios and industries.

Yes. So I wonder if we could talk a little bit more about, specifically, exactly what's new. Can you unpack some of that for us?

You bet. Well, what's key is that any enterprise will be able to run their modeling and simulation workloads in a fully managed -- because we manage everything for them, pre-bundled, so we'll give folks this idea of small, medium and large HPC as a Service to operate in any data center or in a co-lo location. These workloads are almost impossible to move to the public cloud because the data is so large or it needs to be close by for latency issues. Oftentimes, people have concerns about IP protection or applications and how they run within that local environment. So if customers are betting their business on this insight and analytics, which many of them are, they need business-critical performance and experts to help them with implementation and migration as well as they want to see resiliency.

So is this a do-it-yourself model? In other words, the customer has to have to manage it on their own? Or how are you helping there?

No, it's a great question. So the fantastic thing about HPE GreenLake is that we manage it all for the customer. And so in essence, they don't have to worry about anything on the back end. We can flow that. We manage capacity. We manage performance. We manage updates and all of those types of things. So we really make it super simple. And we're offering these bundled solutions featuring our HPE Apollo Systems that are purpose-built for running things like modeling and simulation workloads. And again, because it's GreenLake and because it's cloud services, this provides self-service, provides automation. And customers can actually manage however they want to. We can do it all for them. They can do some on their own. It's really super easy. And it's really up to them on how they want to manage that system.

Keith, what about analytics? A lot of people who want to dig deeper into the data, how are you supporting that?

Yes. Analytics is key. And so one of the best things about this HPC implementation is that we provide an open platform. So customers have the ability to leverage whatever tools they want to do for analytics. They can manage whatever systems they want to pull data from. So they really have a ton of flexibility. But the key is, because it's HPE GreenLake and because it's HPE's market-leading HPC systems, they get the fastest, they get the -- it all managed for them. They only pay for what they use. So they don't need to write a huge check for a large upfront. And frankly, they get the best of all those worlds together in order to come up with things that matter to them, which is that true business outcome through analytics, so that they can make the decisions they need to run their business.

That's awesome. You guys are clearly making some good progress here. Actually, I see it, really, as a game changer for the types of customers that you described. I mean, particularly those folks that, like you said, you think they can't move stuff into the cloud. They've got to stay on-prem, but they want that cloud experience. I mean, that's really exciting. We're going to have you back in a few minutes to talk about the GreenLake Cloud Services and some of the new industry platforms that you see evolving.

Awesome. Thanks so much. I look forward to it.

Yes. Us, too. So okay, right now, we're going to check out a conversation that I had earlier with Peter Ungaro and Addison Snell on HPC. Let's watch. [Presentation]

Welcome, everybody, to the Spotlight Session here, at GreenLake Day. We're going to dig into high-performance computing. Let me first bring in Pete Ungaro, who's the GM for HPC and mission-critical solutions at Hewlett Packard Enterprise. And then we're going to pivot to Addison Snell, who's the CEO of Research firm, Intersect360.

And so Pete, starting with you. Welcome. And really a pleasure to have you here. I want to first start off by asking you, what are the key trends that you see in the HPC and supercomputing space? And I really appreciate if you could talk about how customer consumption patterns are changing.

Yes. I appreciate that, Dave, and thanks for having me. I think the biggest thing that we're seeing is just the massive growth of data. And as we get larger and larger data sets, larger and larger models happen. And we're having more and more new ways to compute on that data. So new algorithms like AI would be a great example of that. And as people are starting to see this, especially as you're going through digital transformations, more and more people, I believe, can take advantage of HPC, but maybe don't know how and don't know how to get started. And so they're looking for how to get going into this environment. And many customers that are longtime HPC customers just consume it on their own data centers, they have that capability, but many don't. And so they're looking at how can I do this? Do I need to build up that capability myself? Do I go to the cloud? What about my data and where that resides? So there's a lot of things that are going in to thinking through how do I start to take advantage of this new infrastructure.

Excellent. I mean we all know HPC workloads. You're talking about supporting research and discovery for some of the toughest and most complex problems, particularly those that are affecting society. So I'm interested in your thoughts on how you see GreenLake helping in these endeavors specifically.

Yes, one of the most exciting things about HPC is just the impact that it has. Everywhere from building safer cars and airplanes, to looking at climate change, to finding new vaccines for things like COVID that we're all dealing with right now. So one of the biggest things is, how do we take advantage of that and use that to benefit society overall. And as we think about implementing HPC, how do we get started and then how do we grow and scale as we get more and more capabilities. So that's the biggest things that we're seeing on that front.

Yes. So okay. So just about a year ago, you guys launched the GreenLake initiative and the whole complete focus on as a service. So I'm curious as to how the new GreenLake Services, the HPC services, specifically as it relates to GreenLake, how do they fit in to HPE's overall high-performance computing portfolio and the strategy?

Yes. Great question. GreenLake is a new consumption model for -- so it's very exciting. We keep our entire HPC portfolio that we have today but extend it with GreenLake and offer customers expanded consumption choices. So customers that potentially are dealing with the growth of their data or they're moving to digital transformation applications, they can use GreenLake to easily scale up from workstations to manage their system costs or operational costs, or if they don't have staff, to expand their environment. GreenLake provides all of that in a managed infrastructure for them. So if they're going from like a pilot environment up into a production environment over time, GreenLake enables them to do that very simply and easily without having to have all that internal infrastructure, people, computer, data centers, et cetera. GreenLake provides all that for them so they can have a turnkey solution for HPC.

So a lot easier entry strategy. The key word that you used there was choice, though. So basically, you're providing optionality. You're not necessarily forcing them into a particular model? Is that correct?

Yes. 100%, Dave. What we want to do is just expand the choices so customers can buy and acquire and use that technology to their advantages, whether they're large or small, whether they're a start-up or a Fortune 500 company, whether they have their own data centers or they want to use a co-lo facility, whether they have their own staff or not. We want to just provide them the opportunity to take advantage of this leading-edge resource.

Very interesting, Pete. I really appreciate the perspectives that you guys are bringing to the market. I mean, it seems to me it's going to really accelerate broader adoption of high-performance computing to the masses, really giving them an easier entry point. I want to bring in now Addison Snell to the discussion. Addison, he's the CEO, as I said, of Intersect360, which, in my view, is the world's leading market research company focused on HPC. Addison, you've been following this space for a while. You're an expert. You've seen a lot of changes over the years. What do you see as the critical aspects in the market, specifically as it relates toward this as-a-service delivery that we were just discussing with Pete. And I wonder if you could sort of work in there the benefits in terms of, in your view, how it's going to affect HPC usage broadly.

Yes. Good morning, Dave, and thanks very much for having me. Pete, it's great to see you again. So we've been tracking a lot of these utility computing models in high-performance computing for years, particularly as most of the usage by revenue is actually by commercial endeavors using high-performance computing for their R&D and engineering projects and the like. And cloud computing has been a major portion of that and has the highest growth rate in the market right now where we're seeing this double-digit growth that accounted for about $1.4 billion of the high-performance computing industry last year. But the bigger trend, which makes GreenLake really interesting is that we saw an additional about $1 billion worth of spending outside what was directly measured in the cloud portion of the market in areas that we deem to be cloud-like, which were as-a-service types of contracts that were still utility computing. But they might be under a software-as-a-service portion of the budget under software or some other managed services type of contract that the user wasn't reporting directly as cloud, but was certainly influenced by utility computing. And I think that's going to be a really dominant portion of the market going forward when we look at growth rate and where the market's been evolving.

So that's interesting. I mean, basically, you're saying this -- the utility model is not brand-new. We've seen that for years. Cloud was obviously a catalyst that gave that a boost. What is new, you're saying, is -- and I'll say it this way, I'd love to get your independent perspective on this, is sort of the definition of cloud is expanding, where people would say it's not a place, it's an experience. And I couldn't agree more. But I wonder if you could give us your independent perspective on that, both on the thoughts of what I just said, but also how would you rate HPE's position in this market?

Well, you're right. Absolutely. The definition of cloud is expanding, and that's a challenge when we run our surveys that we try to be pedantic in a sense and define exactly what we're talking about, and that's how we're able to measure both the direct usage of a typical public cloud, but also a more flexible notion of as a service. Now you asked about HPE in particular, and that's extremely relevant, not only with GreenLake, but with their broader presence in high-performance computing. HPE is the #1 provider of systems for high-performance computing worldwide, and that's largely based on the breadth of HPE's offerings in addition to their performance in various segments. So picking up a lot of the commercial market with their HPE Apollo Gen10-plus, they hit a lot of big memory configurations with the Superdome Flex and scale up to some of the most powerful supercomputers in the world with the HPE Cray EX platforms that go into some of the leading national labs. Now GreenLake gives them an opportunity to offer this kind of flexibility to customers rather than committing all at once to a particular purchase price. But if you wanted to position those on a utility computing basis, pay for them as a service without committing to a particular public cloud, I think that's an interesting role for GreenLake to play in the market.

Yes, I know. It's interesting. I mean, earlier this year, we accelerated Exascale Day with support from HPE. And it really is about a community and an ecosystem. There's a lot of comradery going on in the space that you guys are deep into. Addison, just so we could wrap, what should observers expect in this HPC market, in this space over the next few years?

Yes. That's a great question, what to expect, because if 2020 has taught us anything, it's the hazards of forecasting where we think the market is going. When we put out a market forecast, we tend not to look at huge things like unexpected pandemics or wars, but it's relevant to the topic here. Because as I said, we're already forecasting cloud and as-a-service models growing. Anytime you get into uncertainty, where it becomes less easy to plan for where you want to be in 2 years, 3 years, 5 years, that model speaks well to things that are cloud or as a service, to do very well flexibly. And therefore, when we look at the market and plan out where we think it is in 2020, 2021, anything that accelerates uncertainty, actually, is going to increase the need for something like GreenLake or an as-a-service or cloud-type of environment. So we're expecting those sorts of deployments to come in over and above where we were already previously expecting them in 2020, 2021 because as-a-service deals well with uncertainty, and that's just the world we've been in recently.

I think those are great comments and a really good framework. And we've seen this with the pandemic, the pace at which the technology industry, in particular, and of course, HPE specifically have responded to support that. Your point about agility and flexibility being crucial. And I'll go back to something earlier that Pete said around the data. The sooner we can get to the data to analyze things, whether it's compressing the time to a vaccine or pivoting our businesses, the better off we are. So I want to thank Pete and Addison for your perspectives today. Really great stuff, guys. Thank you.

Yes. Thank you.

Keep it right there for more great insights and content. You're watching GreenLake Day. All right. Great discussion on HPC. Now we're going to get into some of the new industry examples and some of the case studies and new platforms. Keith, HPE GreenLake, it's moving forward. That's clear. You're picking up momentum with customers, but can you give us some examples of platforms for industry use cases and some specifics around that?

Yes, you bet. And actually, you'll hear more details from Arwa Kaddoura. She leads our GreenLake, the market efforts, in just a little bit. But specifically, I want to highlight some examples where we provide cloud services to help solve some of the most demanding workloads on the planet. So first off, in financial services, for example, traditional banks are facing increased competition and evolving customer expectations. They need to transform so that they can reduce risk, manage costs and provide a differentiated customer experience. We'll talk about a platform for Splunk that does just that. Second, in health care institutions, they faced a growing list of challenges, some due to the COVID-19 pandemic and others years in the making, like our aging population and rise in chronic disease is really driving up demand, and it's straining capital budgets. These global trends create a critical need for transformation to improve that patient experience and their business outcomes. Another example is in manufacturing. They're facing many challenges in order to remain competitive, right? They need to be able to identify new revenue streams, run more efficiently from an operations standpoint and scale their resources. So you'll hear more about how we're optimizing and delivery for manufacturing with SAP HANA. And Arwa is going to highlight a little more detail on today's news, how we're delivering supercomputing through HPE GreenLake at scale, and finally, how we have a robust ecosystem of partners to help enterprises easily deploy these solutions. For example, I think today you're going to be talking to Skip Bacon from Splunk.

Yes, absolutely. We sure are. And some really great examples there, especially in a couple of industries that stood out. I mean, financial services and health care, they're ripe for transformation and maybe disruption if they don't move fast enough. So Keith, we'll be coming back to you a little later today to wrap things up. So thank you.

You bet.

Now we're going to take a look at how HPE is partnering with Splunk and how GreenLake complements data-rich workloads. Let's watch. [Presentation]

We're now going to dig deeper into a data-oriented workload and how HPE GreenLake fits into this use case. And with me is Skip Bacon, Vice President of Product Management at Splunk. Skip, good to see you.

Good to see you as well, Dave.

So let's talk a little bit about Splunk. I mean you guys are a dominant player in security and analytics. And it's funny, Skip, I used to comment that during the Big Data, the rise of Big Data, Splunk really never positioned themselves as this big data player and all that hype. But you became kind of the leader in Big Data without really even promoting it. It just sort of happened overnight. And you're really now rapidly moving toward a subscription model. You're making some strategic moves in the M&A front. Give us your perspective on what's happening at the company and why customers are so passionate about your software.

Sure. A great setup Dave, thanks. So let's start with the data that's underneath Big Data, right? I think, as usual, the industry sort of seizes on its term and never stops to think about what it really means. Sure. One big part of Big Data is your transaction stuff, right, the things that get generated by all of your Oracles and your SAP apps that reflect how the business actually occurred, but a much bigger part is all of your digital artifacts. All of the machine-generated data that tells you the whole story about what led up to the things that actually happened, right, within the systems, within the interactions within those systems. That's where Splunk is focused. And I think what the market as a whole is really validating is that, that machine-generated data, those digital artifacts are at least as important, if not more so, than the transactional artifacts to this whole digital transformation problem, right? They're critical to showing IT how to get better at developing and deploying an operating software, how to get better at securing these systems and then how to take this real-time view of what the business looks like as it's executing in the software right now and hold that up to and inform the business and close that feedback loop, right? So what is it we want to do differently digitally in order to do different -- better on the transformation side of the house. So I think a lot of Splunk's general growth is proof of the value prop and the need here, for sure, as we're seeing play out specifically in the domains of IT operations, DevOps, cybersecurity, right, as well as more broadly in that closing business loop. Splunk's been on a tear in growing our footprint overall with our customers and across many new customers. We've been on a tear with moving parts of that footprint to an as-a-service offering in Splunk Cloud, but a lot of that overall growth is really fueled by just making it simpler, quicker, faster, cheaper, easier to operate Splunk at scale. Because the data is certainly not slowing down, right? There's more, and more, and more of it every day, more latent or potential value locked up in it. So anything that we can do and that our partners can do to improve the cost economics, to improve the agility, to improve the responsiveness of these systems is huge to that customer value prop. And that's where we get so excited about what's going on with GreenLake.

Yes. So that makes sense. I mean, the digital business is a data business, and that means putting data at the core. And Splunk is obviously a key part of that. So as I said earlier, Splunk, you're a leader in this space, what's the deal with your HPE relationship? You touched on that. What should we know about your partnership? And what's that solution with HPE? What's that customer sweet spot?

Yes. Good -- all good questions. So we've been working with HPE for quite a while on a number of different fronts. This GreenLake piece is the most interesting and sort the intersection of -- purest intersection of both of these threads or these vectors, if you will. So we've been working to take our core data platform, deployed on an enterprise operator for Kubernetes, stick that atop HPE's GreenLake, which is really Kubernetes-as-a-service platform and go prove performance, scalability, agility, flexibility, cost economics, starting with some of Splunk's biggest customers. And we've proven all of those things in great measure. I think the opportunity -- the ability to vertically scale Splunk in containers atop beefy boxes and really streamline the automation, the orchestration, the operations, all of that, yields what, in the words of one of our mutual customers literally put it as, this is a transformational platform for deploying and operating Splunk for us. So hard at work on the engineering side, hard at work on the architecture, referencing, sizing, capacity planning sides and then increasing, really, rolling up our sleeves and taking this stuff to market together.

Yes. I mean, we're seeing the -- just the idea of cloud, the definition of cloud expanding, hybrid brings in on-prem. We're talking about the edge. And really, we've seen Splunk rapidly transitioning its pricing model to a subscription platform, if you will. And of course, that's what GreenLake is all about. What makes Splunk a good fit for GreenLake and vice versa? What does it mean for customers?

Sure. So a couple of different parts, I think, make this a perfect marriage. Splunk, at its core, if you're using it well, you're using it in a very iterative discovery-driven, kind of follow the path to value basis. That makes it a little hard to plan the infrastructure to size these things, right? We really want customers to be focused on how to get more data in, how to get more value out. And if you're doing it well, those things are going to go up, and up, and up over time. You don't want to be constrained by sizing, capacity planning, procurement cycles for infrastructure. So in the GreenLake model, customers got already deployed systems, already deployed capacity available on as-a-service basis, very fast, very agile. If they need an extra ounce of capacity to bring in that next data set or run that next set of analytics, right, it's available immediately as a service. Not, hey, we've got to kick off the procurement cycle for a whole bunch more hardware boxes. So that flexibility, that agility are key to the general pattern for using Splunk. And again, that ability to vertically scale, stick multiple Splunk instances into containers and load more and more of those up on these physical boxes, right, gives you great cost economics. Splunk has a voracious appetite for data for doing analytics against that data. Less expensive we can make that processing the better. And the ability to really fully sweat the assets, fully utilize those assets, that kind of vertical scale, is the other great element of the GreenLake solution.

Yes. I mean, when you think about the value prop for customers with Splunk and HPE GreenLake, it's a lot of what you would expect from what we used to talk about with the early days of cloud, that flexibility. It takes away a lot of the sort of mundane capacity planning. You can shift resources. You talked about scale in a number of use cases. So that's sort of another interesting angle, isn't it?

Yes. Faster -- it's the classic tech story. Faster, quicker, cheaper, easier, right? Just taking the whole new levels and whole new extremes with these technologies.

So what do you see as the differentiators with Splunk and HPE? Maybe what's different from sort of the way we used to do things, but also sort of modern-day competition?

Yes. Good -- all good questions. So I think the general attributes of Splunk are differentiated. GreenLake are differentiated, I think when you put them together, you get this classic 1 plus 1 equals 3 story. So what I hear from a lot of our target customers, big enterprises, big public sector customers, they can see the path to these benefits. They understand in theory how these different technologies would work together, but they're concerned about their own skills and abilities to go build and run those. And the real beauty of GreenLake and Splunk as this all comes sort of predesigned, pre-integrated, right, prebuilt, HPE is in there providing these running containers as a service. So it's taking a lot of the skills and the concerns off the customers plate, right, allowing them to fast-forward to cutting-edge technology without any of the risks. And then, most importantly, allowing customers to focus their very finite resources, their peoples, their time, their money, their cycles on the things that are going to drive differentiated value back to the business. Let's face facts, buying and provisioning hardware is not a differentiating activity. Running containers successfully, not differentiating. Running the core of Splunk, not that differentiating. You can take all of those cycles and focus them instead in the simple mechanics, how do we get more data in, run more analytics on it and get more value out, right? Then you're on the path to really delivering differentiated, sustainable, competitive basis type stuff back to the business, back to that digital transformation effort. So taking the skills out, taking the worries out, taking the concerns about new tech out, taking the procurement cycles out, improving scalability. Again, quicker, faster, cheaper, better, for sure.

It's kind of interesting when you look at how the parlance has evolved from cloud and then you had private cloud. We talked a lot about hybrid. But I'm interested in your thoughts on why Splunk and HPE GreenLake now? I mean, what's happening in the market that makes this the right place and the right time, so to speak?

Yes. Again, I'd put cloud right up there with Big Data is one of those really overloaded terms. So I think we keep redefining as we go. If we define it in one way as an experience instead of outcomes the customer is working for, right? What does any one of our mutual customers really want? Well, they want capabilities that are quick to get up and running, that are fast to get to value, that are aligned with how they -- price-wise with how they deliver value to the business and that they can quickly change, right, as the needs of the business and the operations shift. I think that's the outcome set that people are looking to. Certainly, the early days of cloud, we thought were synonymous with public cloud. And hey, the way that you get those outcomes is you push things out to public cloud providers. What we saw is a lot of that motion and cases where there wasn't the best of alignment, right? You didn't get all those outcomes that you were hoping for. The cost savings weren't there. Or again, these big enterprises, these big organizations have a whole bunch of other workloads that aren't necessarily public cloud-amenable, but what they want is that same cloud experience. And this is where you see the evolution of the hybrid clouds and into private clouds. Any one of our customers is looking across the entirety of this landscape. Things that are on-prem that are probably going to be on-prem forever. Things that they're moving into private cloud environments, things that they're moving into or growing or expanding or landing net new and public cloud, they want those same outcomes, those same characteristics across all of that. That's a lot of Splunk's value prop as a provider, right, is we can go monitor and help you operate and develop and secure exactly all of that no matter where it's located. Splunk and GreenLake is all about that stack working in that very cloud-native way even where it made sense for customers to deploy and operate their own software, even if the Splunk they're running over here themselves is helping them monitor and secure other workloads that they've put into their public cloud environments.

Well, it's another key proof point that we're seeing throughout the day here. You're a software leader, HPE, bring it together, its ecosystem partners to actually deliver tangible value to the customers. Skip, it was great to hear your perspectives today. Really appreciate you coming on the program.

My pleasure, and thanks so much for having us. Take care. Stay well.

Yes. Cheers. You, too. Okay.

Keep it right there, we're going to go back to Keith now have him end -- close out this segment of the program. You're watching HPE GreenLake Day on theCUBE. All right. So we're seeing some great examples of how GreenLake is supporting a lot of different industries, a lot of different workloads. We just heard from Splunk. Really as part of the ecosystem, really a data-heavy workload, and we're seeing the progress, HPC example, manufacturing. We talked about health care, financial services, critical industries that are really driving toward the subscription model.

So Keith, thanks again for joining us. Is there anything else that we haven't hit that you feel our audience should know about?

Yes, you bet. We didn't cover some of the new capabilities that are really providing customers with a holistic experience to address the most demanding workloads with HPE GreenLake. So first, is our GreenLake Managed Security Services. So this provides customers with an enterprise-grade, managed security solution that delivers lower costs and frees up a lot of their resources. The second is our HPE Advisory and Professional Services Group. So they help provide customers with tools and resources to explore their needs for their digital transformation. So think about workshops and trials and proof of concepts and all of that implementation. So you get the strategy piece, you get the advisory piece and then you get the implementation piece that's required to help them get started really quickly. And then third would be our HPE Ezmeral software portfolio. So this provides customers with the ability to modernize their apps and data, unify hybrid cloud and edge computing, and operationalize artificial intelligence and machine learning and analytics.

I'm glad that you brought in the sort of machine intelligence piece and the machine learning. Because that's -- a lot of times, that's the reason why people want to go to the cloud. At the same time, you bring in a security piece, a lot of reasons why people want to keep things on-prem. And of course, the use cases here, we're talking about are really bringing that cloud experience, that consumption model on-prem. I think it's critical for companies because they're expanding their notion of cloud computing, really extending into hybrid and the edge with that similar experience or substantially the same experience. So I think folks are going to look at today's news as real progress. We're pushing you guys on some milestones and some proof points toward this vision. It's a critical juncture for organizations, especially those -- look, they're looking for comprehensive offerings to drive their digital transformations. Your thoughts, Keith?

Yes. No, we know as many as 70% of current and future apps and data are going to remain on-prem. They're going to be in data centers. They're going to be in co-los. They're going to be at the edge. And really for critical reasons. And so hybrid is key, as you mentioned a number of times. We want to help customers transform their businesses and really drive business outcomes in this hybrid, multi-cloud world with HPE GreenLake and our targeted solutions.

Excellent. Well, Keith, thanks again for coming on the program. Really appreciate your time.

Always. Always. Thanks so much for having me. And take care. And stay healthy, please.

All right. Keep it right there, everybody. You're watching HPE GreenLake day on theCUBE. [Presentation]

Hi, and thanks for joining us today. I'm Arwa Kaddoura, Vice President of Go-To-Market for HPE GreenLake. In this session, we're going to explore a few of the ways we are bringing the cloud to your data center and co-locations, especially for your most demanding workloads. We'll show a few examples of how we do this. And how we can help you with HPE GreenLake. With HPE GreenLake, we're leading the market for on-premises and hybrid cloud. With a decade of experience and over 1,000 customers, we've been able to continue enriching our portfolio of services, leveraging the vast input from our customers. And what we're hearing now is they want us to take on the apps and data that are most critical to run their business on. Our customers love the cloud experience and want it available everywhere, including their data center and co-lo. HPE GreenLake is the cloud that comes to you. We deliver a cloud experience for your infrastructure and workloads in your data center or co-location and at the edge. HPE GreenLake cloud services offer consumption-based economics and scalability for a wide range of platforms, all managed for you by HPE or by our rich ecosystem of partners. In June, we brought a self-service point-and-click experience of the cloud to our new services for containers, virtual machines and MLOps and dramatically sped up the delivery of our infrastructure services with standardized building blocks, T-shirt size, that you can get in as little as 14 days. And a few weeks ago, we added VDI as a service to meet the strong demand to help your employees around the globe work securely wherever they may be. Today, we will look at 4 examples of how we provide the cloud experience for the workloads that are most critical to run your business, and we'll give a few industry examples. First, we'll talk about helping financial institutions manage risk and compliance. We'll talk about improving health care with a secure, flexible electronic health records platform, optimizing production and delivery for manufacturing with SAP HANA and answering your biggest questions with high-performance computing. When we talk about these demanding workloads, whether we're talking about inventory management, payment processing, medical imaging or any additional ones you see here, 2 things typically hold true. First, they're very difficult to move to the public cloud due to the challenges around latency and performance, data gravity, IP and privacy protection and the data entanglement with many other apps. And secondly, they require app-specific expertise to implement and integrate, continual performance optimization, strong resiliency, security and compliance management and containerization to achieve mobility. These are tough to meet, but essential to have, if you're betting your business on these workloads. We've helped our customers meet these challenges and requirements in the data center. Let's start our discussion about these workloads with managing risk and compliance. Risk and compliance management require analyzing huge amounts of data streaming in real-time through the organization. And Splunk is widely used for this. As the scales, we have found that often infrastructure is the bottleneck and organizations develop blind spots due to this. This means they could only see some of the data. Scaling and making changes is also a slow process with such a complex set of infrastructure. And IT resources often don't have the skills to manage new platforms such as container-based implementations. We've looked at the situation and built a differentiated architecture to solve this challenge. The solution is container-based using the HPE Ezmeral Container Platform. It's an infrastructure that is tuned for Splunk and resulted in a big reduction in the total servers needed. It's delivered as a service through HPE GreenLake, on premises, fully managed to make adoption fast and to cover the skill gaps IT may have. The outcomes, we tested our approach and found the dramatic improvements you see here. Infrastructure efficiency improved dramatically with 17x increase in throughput and 12 Splunk indexers per host, up from one. Compliance and insights into risks improved from removing the blind spots with a 10x reduction in infrastructure needed to ingest up to 8.7 terabytes per host, per day. And customers have a greatly simplified IT operating model by moving to HPE GreenLake, fully managed so that HPE takes care of the container and infrastructure management. Next, let's talk about improving health care with a secure, flexible, EHR platform. The global pandemic is putting an extraordinary burden on an industry whose budgets and resources are already stretched to the limits, and HPE can help. Health systems and medical research institutions around the globe recognize the value of HPE GreenLake for our infrastructure-as-a-service needs. Scalable storage for high-resolution medical imaging, high-performance compute for medical research and VDI for the digital workplace. Today, we are pleased to introduce the platform for Epic's EHR system. This is a full platform-as-a-service offering for electronic health records. The service supports the Epic software stack with validated HP infrastructure and Epic-certified expertise to run the full environment for you. This enables health care institutions to offload the complexities of moving to and operating a modern Epic platform, reducing cost, risk and time with a fully managed pay-per-use cloud service in their own data center or co-lo facility. Now our customers can focus on delivering life-affecting health care outcomes and not on the nuances of daily technical operations and upgrades. So how is HPE qualified? Think back to the requirements we talked about for expertise. We have a 25-year partnership with Epic, and over 65% of Epic customers use our HPE infrastructure, including storage, servers, software and networking. We know Epic and are trusted by Epic customers. We have a dedicated program management office with focused Epic resources to help health care systems make the most of their Epic platform, improving their quality of care, financial performance, workflow efficiency and, most importantly, their patient outcomes. The next workload I'd like to cover is SAP HANA. SAP HANA runs many, if not most, manufacturing organizations, including our very own here at HPE. SAP finds that 70% of customers are looking to remain on-premises with SAP HANA as they migrate to S/4 for the reasons we discussed earlier: performance, resiliency, security, IP protection and control. And we're proud to be one of SAP's most critical technology partners, running approximately 40% of the on-prem SAP customer base. These customers trust HPE infrastructure to run their critical SAP environment, and we're excited to extend the value into a fully managed on-prem cloud service. Today, we bring the cloud benefits of HPE GreenLake to SAP HANA customers on-premises in 2 ways. Standard HPE GreenLake uses SAP-certified technology from HPE with the scalable pay-per-use model with HPE's outstanding support and management services ready to meet the demanding requirements of SAP HANA. And now we are working with SAP for the SAP HANA Enterprise Cloud Customer Edition, which is powered by HP GreenLake and fully managed by SAP for you, which is the SAP cloud in your data center. HPE Pointnext Services are essential to our customers. One of the reasons that customers choose HPE for workloads such as SAP is our expertise from strategy all the way to operation. With advisory and professional services specific to your application, we help you succeed. HPE understands migration to SAP S/4HANA. And as the leading technology vendor of SAP HANA infrastructure and a large SAP HANA customer ourself, we have the expertise within our advisory and professional services to ensure your success as you move to S/4. HPE has delivered over 1,500 SAP HANA consulting projects, and HPE Pointnext Services has the expertise globally to accelerate time to value and mitigate your risk. And lastly, HPE offers a center of excellence experience for SAP HANA, providing specialized support from our experts to optimize operations for SAP environments. The last and maybe the most demanding workload that we'll cover today is HPC, high-performance computing. Today, we are announcing HPE GreenLake for HPC. This is an exciting time as we bring our cloud services to HPC wherever you need it. As the leader in HPC, we have significant IP to give HPC customers. We offer the speed and scalability that you need with components such as high-speed interconnects, high-density compute platforms and software to manage HPC operations and performance. And unlike other technology companies, these are all from HPE, fully integrated, fully supported and can be fully managed by HPE. And we've built an ecosystem of ISV applications that we closely collaborate with to make HPC run seamlessly. High-performance computing can get complex. With HPE GreenLake for HPC, we'll simplify the approach without taking away any of the power. Pick the starting point that fits your use case, small, medium or large, and get started. These building blocks are HPC-optimized, meaning you can bring the technology that we use to predict weather or to code the human genome to your everyday apps. No capital upfront, pay for what you use, and the implementation is managed for you. With our building block approach, we can eliminate a long design and implementation phase, which could take months or even a year. Over time, as your clusters grow, modernize and change, HPE GreenLake capacity management helps you always have capacity ready ahead of your needs. What is the experience with HPE GreenLake for HPC? You order. We deliver in as little as 14 days. We install your systems, and you could quickly deploy your HPC apps. With the new point-and-click service experience, researchers and analysts can get access to their HPC cluster resources from the self-service portal without putting IT in the middle of every request. We manage the clusters for you, take care of upgrades, performance and growth. And you pay based on what you use, simplifying HPC economics and operations. This is how we bring the cloud to your most demanding workloads. So we've covered a lot. And the big question is, so what? How do you benefit? Analysts have found that with HPE GreenLake you save 30% to 40% on total cost of ownership by eliminating over-provisioning, which on its own is huge. But the additional benefits are equally important to our customers. You could speed deployments of projects by 75%, cut your risk with 85% less unplanned downtime and improve IT productivity by 40% due to the services included that greatly simplify IT operations. What's next? If you want to learn more about how we bring cloud services for your most demanding workloads, whether they're for risk management, EHR, SAP or HPC or for other workloads you depend on us for, please engage our HPE account team or your HPE partner. If you're already our customer for HPE GreenLake, thank you, and we're ready to globally help you with your next project. And of course, please visit us at hpe.com/greenlake. Thanks for joining me today. [Presentation]

Okay. So we're deep into HPE GreenLake Day. Hopefully, you've enjoyed the Spotlight Sessions with Keith, with Pete, with Addison and Skip from Splunk. And of course, the platform session that Arwa Kaddoura hosted. We're going for proof points here. We really want you to squint through the narrative today and see for yourself what's real here and the kind of progress that HPE is making with GreenLake. So thanks to everybody for joining the conversation. We now want to turn our attention to more proof points. The next segment of this HPE GreenLake Day is where you'll have further opportunities to learn more about GreenLake and how you might apply it to your business. Now if you're interested in watching additional sessions, we have 2 new ones available for you to see. First, is a session on the new managed security service from HPE with HPE GreenLake. Or you can take a deeper dive into high-performance computing with GreenLake. Just look, navigate the agenda tab and select one of those 2 sessions, they're available at any time. But if you want to stick with us for the live show, we have 2 live demos in our Meet The Experts sessions, where you'll have the opportunity to ask your questions and have real-time interaction with the experts from HPE. In fact, I have Steve Showalter and Arshnoor here. And they're with me right now to tell you a little bit about there Meet The Experts session. So Steve, let's start with you. Tell us a little bit about yourself and what you'll be covering in your demo today.

Sure. Thanks, Dave. My name is Steve Showalter. I'm a part of the GreenLake Cloud Services R&D Team. Super excited to be here today, and I hope everyone can join our session coming up, where we'll take a deeper dive and a live demo of GreenLake Central. In case you haven't seen it before, GreenLake Central is a platform we use to deliver services and capabilities to our GreenLake customers. In today's demo, we'll show you how we've designed GreenLake Central to take a persona-based approach to deliver the right capabilities and insights to various constituents in our customers' organizations. For example, we'll show how a CIO or CFO would use GreenLake Central to view their GreenLake consumption and costs and compare those to public cloud costs from AWS or Azure right within the same reporting tool. We'll also show you how an IT operation staff would use GreenLake central to engage in capacity planning for their GreenLake environment or manage their GreenLake private cloud services. We'll also show how end users within the customer environment would use GreenLake Central to self-service and life cycle managed resources from these GreenLake Cloud Services or even how a Chief Security Officer would use their continuous compliance capability that we deliver through GreenLake central to understand their real-time compliance posture against whatever regulatory frameworks they may need to be audited against. So I hope you can join me for this informative and interactive session and look forward to seeing everyone there.

That's awesome. It sounds like some great details there, a full 360 view, great visibility. Arshnoor, so tell us a little bit about yourself. What's going on in your session? Give us the hook.

Hi, I'm Arshnoor, Product Manager for GreenLake for Containers. And GreenLake for Containers is our upcoming service, which promises a true cloud-like experience with massive operational simplicity. This offering is built on our HPE Ezmeral Container Platform software and aims to bring speed and portability to both your cloud-native and non cloud-native applications using open source Kubernetes. We have a unique data fabric that provides persistent storage for stateful applications. And today, you'll see how we demystify Kubernetes operational complexity and provide value to various personas throughout the containerized application life cycle. For example, an IT admin will have all the standardized Kubernetes cluster templates and in-built automation to spin up the environment for our developer in just few clicks. And a developer has to just focus on continuous deployment and delivery of their applications. And a CIO gets complete visibility across different Kubernetes' clusters for the cost.

That's awesome. I mean, we know from our data that containers, generally, Kubernetes, specifically, one of the most significant areas where customers are spending time and money so that all sounds fantastic. So you can -- you're having trouble deciding which one to go to? Well, you're going to have the chance to see both demos, if you want. So we'll be live for the next hour with each Meet The Experts session. So we're going to run them twice. If you can't decide, go to both. Okay. Thanks for watching HPE GreenLake Day. You're watching theCUBE.