The Future of Cloud Computing | The Element Podcast – E01

(electronic music) – From automotive to
manufacturing to even farming, businesses everywhere are transforming into technology companies. This is The Future of Cloud
on The Element Podcast presented by Hewlett Packard Enterprise. I’m your host Martina
Trucco and I’m joined by Robert Christiansen,
Gary Thome and Flynn Maloy. Thanks so much for joining me here guys. – Good to be here, thank you. – So you know, let’s just
dive right in to the topic because this is a topic
that is near and dear to a lot of our listeners hearts and maybe for some that
didn’t even realize this is actually something that they need to be worried about. Let’s talk about how we got here to this place where really every company needs to be thinking
about their tech strategy to stay competitive. – Well the way we got here is by accident. – Okay. – Okay so let’s just be clear that the central IT teams
and most enterprises had been not responding
to the business needs rapidly enough and then along comes these hyper scaler cloud computer systems come out and available. A credit card and a bunch
of smart people said, hey we can do it differently,
and off they ran. And now what was called
shadow IT now has become ubiquitous in the whole mix. So that’s where we are now today is this mash up. – There’s a crossover point I think, I think Wired Magazine quoted
it a bunch of years ago where suddenly it was in the mid 2000’s where the IT you get at
home is suddenly better than the IT you get at business. For a long time business
was better you know. And now you know the business IT with all the regulations
and security and everything we’re trying to catch up And that’s why those credit
cards are being swiping right. That’s why their doing it. – People expect, they want
to have that same level of convenience that agility
in the workplace right. – Well and very much so. I think we’ve seen like
you said the consumer side is really about getting that
consumer experience with IT and that’s how their customers
are interfacing with it and now business’s are saying golly we need to do the same thing too, whether it’s consumer
business facing business or business to businesses
they’re really recognizing that opportunity and that need to be able to connect with your customers digitally through whether
it’s online, mobile whatever stuff like that as well. So that’s really driving a lot of this kind of world that we’re living in that Rob was talking about. The hybrid kind of by accident world. – By accident world, we
should coin that one. By accident world. – You heard it here first folks, the by accident world. – It’s also the need for speed, you know. The very first moment I met Robert, after our companies
started working together, we were talking about
Public Cloud, Hybrid Cloud you know, what are the drivers, why all this complexity it’s simplicity. And Roberts like it’s speed. – It’s all speed, it’s
absolutely all speed. So, and this is the thing
I’m really passionate about right now is that when
technology is ubiquitous everybody has it, you’re
watching this right now, you could take your credit card and you could go find ten people and you can disrupt the
insurance market tomorrow. And when that happens, when that happens, you want us to talk about
shivers running through the big organizations when
a start up group can come up and then completely change
the face of technology. So is technology the competitive edge? – Well the rules of the game are changing. – That they changed, right. – Now it’s table stakes. – That’s right, it’s how
do I get in the game. Well, everybody’s doing it. So what’s the difference? – Well I think that’s
what we all want to know so what is the difference,
how do we actually use it for a competitive advantage? – Well, one of my passions, passions is the disruption
that’s rolling through IT today. In every organization that I work with the people look like deer in the headlight or a dog stuck on a freeway. They are just scared. Because they see their jobs
changing so dramatically that they don’t know where to go or what to do or how to do it. And they have no sherpa, no guiding light, no Obi-Wan to lead ’em down some path. Nothing like that so they’re just they’re just so scared of this massive change that’s coming. Because everybody’s got
all the same tools now. And so then it’s all about,
how do you evolve the people? – When I talk to customers too, I mean this is it exactly. They say to me, everything’s
changing so fast and even when we have a
technology conversation, almost always the biggest objection is not the technology it’s
like how am I gonna do it, how am I gonna get people
to change to really realign to what technology can bring them now. And jobs change. – Jobs change. – And wow, my responsibilities change. And this is almost always
like the number one problem that they face not the technology. – And there’s reasons
to be a little scared. Look at all of the security. Look at all of the compliance. If you don’t grab the opportunity today you could stumble into a corner. If you don’t get your hands on it, if you don’t work with an Obi-Wan and really understand
what the situation is then you can get in trouble. Creditors can outpace you,
you can do something wrong on the audit. As complexity increases
there’s a reason for that. – To do something wrong is important. So I want to go back to
what Flynn just said here because that piece that
he just said right there is holding people back,
’cause they’re afraid that they’re gonna do something like expose an IP address
out to the public right, and all of a sudden their
data is suddenly available and they didn’t even know
that they had one out there. So this is the stuff that actually ends people up on the front
page of the Wall Street Journal, don’t be the headline. Get yourself a sherpa, make
sure you got the right people to help you don’t be that person. But you’re absolutely
right, doing something wrong it’s gonna be the problem. – I hear that a lot too and sometimes it’s a security fear it could be a compliance fear until some
sort of government regulation it could be a cost fear like you’re not paying attention to cost. There’s just so many different places. It can be an availability fear, like I don’t really set up my applications to that to run resiliently. I mean all those things I hear. – So people are holding back and not, it’s the people who
really taking advantage are the ones who are getting ahead. We always talk about building
a competitive advantage. That is competitive advantage. Don’t hold back, you’ve got to figure out the lay of the land so
that you can accelerate past your competitors. That’s why there’s so
much opportunity here for the whole market. – Well, I want to unpack
some of this a little bit because the idea of this
sort of by accident IT and hybrid that we’re in, let’s pretend that our company and our
listeners were not in that world. If they were just getting started, clean sheet and we were gonna recommend to them how to actually think about accessing their needs and getting started and doing it right, not
becoming a headline. What are some of the
things that you’d recommend to them to kind of get started? – I’ll take that first one. Yeah — – It’s your bread and butter. – So you have to have a framework, you have to have a
transformation framework. And what happens is most everybody starts in a technology area of the
evolution, their change. And then they forget
about the operating model, they forget about their
security framework, they don’t understand the
financial implications they haven’t done anything
around transforming their people. So what ends up happening
is the technology folks do what technology folks
do, and they put up a nice little castle that says come on in, we are open for business, use cloud today. And then no one knows how to do it. They built this fantastic thing, I’ve seen this happen so many times. And then the people who are necessary who are around that moat, that castle that have to live and work
around that world every day they don’t know what to do. They’re just like this,
so you have to have a wholistic framework that moves everybody in maturity up at the same time and that takes a new thinking. You just don’t find that
out of the box today. That the organizations who
haven’t done that before will leave pieces behind and
then we have to come back and play clean up. So that framework’s where you start. And you have to have a governing body that does that, and it
knocks down silos like that. – I could not agree more with that too you know as a person in technology a lot of the technologies I’m supposed to go and invent new stuff. New technologies are always disruptive and that’s been true for as
long as technology’s been around it disrupts the way people live, the way that we work and
everything like that. And so I’ve come to just
really appreciate that. In order to be able to
adopt that new technology whether it’s anything, but these days of course this cloud is kind of the new thing. Cloud technology is really how
do I transform individuals, transform organizations to be able to figure out how to realign and best take advantage
of those technologies. – And you know I want to go back to a point you made
about cloud operations. Actually how you run it. Cloud ops is not the same as IT ops. There’s all these new skills that you need and by the way, everybody’s
learning that together. That goes back to kind
of the hesitation point. Really learning how
cloud ops is different. How do you manage security? How do you manage compliance? How do you manage access? How do you manage costs? These are all things that
are kind of specialty areas that are different from the technology that we grew up with or we’ve got on prem, working in that world is different — – And in actually I think this
is a really good point too because I mean traditional IT models how do you manage those things is you basically don’t give
people access to stuff until you’ve got all
that figured out first. – [Robert} Right. – That’s exactly. Swipe that card. – This is how you go in. – It’s a different world now though. – It is and really the
cloud operating model is no I go right now, immediately and so you have to have a different model that says okay you did alright. Yes, you can go as fast as you want, but still not get yourself in trouble. – I have an analogy. So I have an analogy right. And every time we do speaking in front of a group of people who
are trying to transform, so we do these summits
and that kind of thing. I say, this is what you have, you have the keys to
a Ferrari in your hand and your about ready to turn them over to your 16 year old with
an open ended credit card. What could go wrong. (laughing) What could go wrong. You’re gonna travel at speed
with the same processes that you had before that
had governors on ’em. Finance, controls, procurement, risk that slowed that process down — – That business, that business — – That business — you are bypassing all of that. All of it. And suddenly, you want
to talk about accidental. – [Martina] Yep. – Crack up on line three right. Second turn right, someone hit the wall. Next thing you know you got a dev ops team doing a bunch of dev ops stuff and they crash it into the wall. And next thing you know you got a bunch of stuff on the track. Bad metaphor. (laughing) – I’m hearing a lot that the job of IT in these companies is really changing. I mean I think that’s a really key trend that we’re seeing here. And Robert I know you
talk to customers a lot, same for you Gary, same for you Flynn. What are you seeing from
like on the customer side about sort of how those needs are changing and where are they moving? The ones that are doing it right, what are they getting right? – Well you know– – You go, gather my thoughts on this one. – One of the things that I learned is I really started spending a lot of time with Robert and his team is this idea that if you take your bad
hygiene on predm to off prem, you’re not solving any other problems and your not getting
the speed and agility. It is the promise of cloud right. And so really having those,
understanding what cloud ops is turning stuff off on the weekends, getting rid of those workspaces
that you’re not using. As simple as that sounds
that’s the good hygiene that we’ve come to learn on prem because of all of the controls, why we think it’s slower than consumer, but if you take that
into the off prem world and this whole concept is
why hybrid IT is so difficult and why everybody is learning it. And why we have such a business there talking about hybrid IT
because you’ve got to have those controls and that understanding off prem as well as on. – I couldn’t agree with you more, triple click on that. Here’s what I believe is
the future of those teams. It’s gonna be, there’s a few modalities, you’re gonna have centralized where IT takes everything
in they control everything and they let people come in and out. There’s a bifurcation of that where they say, hey I’ll share with you and you share with me some responsibility. And there’s a federated
model where they take just the core of the
things that they need to do and they push them out. I think that ladder will be 10x that. Alright, I think that they’re gonna central teams are basically gonna hold identity, logging, basic
security functionality, key management. Those type of things that are really core and they’re gonna push out a
framework to the businesses, the one’s that are really thin and they’re gonna say,
hey as long as you stay within the rails of this racetrack in this world here do whatever you want. – You don’t think this is the thing — – And that’s the controls right. – So IT historically IT does have something to bring to the table, they always have because the
capabilities that IT has around understanding how to keep things running, keep them secure, and fast and resilience and governance and stuff
those are all things that are really good. The challenge is that
the model historically has not been what you just described. There’s been very much
kind of a process model of first you have to get this approval, then you get this approval,
then you do this thing, then this thing. And what you really need
to switch to is more of a kind of a producer consumer model which is really the way
that consumer works today which is why it’s so good, which is to your point. We’re going to offer
these capabilities to you, but then you can consume instantly. And by offering that basic capabilities like identity, logging stuff like that we can build in that governance into that without having to build in the friction of going through step by
step by step to do things. – So we’re gonna put that Ferrari, instead of putting it out on the open road we’re gonna put it on a racetrack. And it’s gonna have some really nice padded guard rails around it. – Have a string on it
and just go like this. And so within that racetrack
you’ve got a great environment you can go as fast as you want, ’cause we’re gonna have the guard rails. – Got the rails. You have to have the guard rails around it and we just, I think
about a group of people who I talk to run a multi billion
international organization they’re a top success
case I would consider, and the thing that they did
that I thought was really good is they admitted to themselves, this was the best part, as central IT, they admitted to
themselves that we are not the center of the
universe of this company. – Yep. – Alright, and I ask
you to think about that. Alright, a lot of times
I see organizations they have the keys and
you gotta come in and out of my world okay, that’s not the case anymore. They have choices. They didn’t have choices before now they have choices. Now software developers can go and define the infrastructure they want in code today and not include you. And that’s really scary, that’s a really scary
proposition for them. So they admitted to themselves that we are just the facilitators of that speed and here are the rules
of the road in software that will keep you safe if you stay here in this space. – It’s really at the heart of why their job is changing, right. – Oh, yeah. – It’s like job number one
is completely different. – You think about, I’m an old school IT, I was a C programmer for 14 years right, so I kind of get what
it means to be a techy. There’s this natural ego
that comes with that. – You gotta go through me. – That’s exactly right. That’s a hard shift for — – It’s scary to let go. – Well, as the business
guy not the tech expert on the panel I would say, you guys spend too much money. And so getting those cost controls, – [Robert] Yeah, but you
don’t understand what’s wrong. yeah getting those cost
controls is super important. And I think that as they
drive their own guys as that model shifts, it’s
really putting in place the business controls as well. As the IT controls so we
don’t get the headlines yes, but also you know at the end of the day we’ve got to make our number and no one’s getting more money in IT. And that I think we need
to grab this innovation, we need to accelerate across
all of the opportunities innovation hybrid Cloud
and we got to do it for less money than we use to. That’s just a fact. – So as the techy guy on this, I think there is a technology
side to this as well. Once you get in that
mindset saying this is what we’re going to do, then
you have to look and say what are the technologies that I need that are gonna allow me to put in those guardrails around the racetrack so the developers and the business’s can still be driving the
Ferrari as fast as they want. But that’s a different set of technologies then what IT organizations
have historically implemented. So now you got to be thinking about it, it’s not just the cloud technologies but also those guardrail technologies and how am I really gonna
get all those things put in place in addition
to the transformation of the processes and the
people and stuff like that. All those things. – This is a story this big. I mean it is huge. – I’m not sure we’ve got enough room here. – Put my arms out right. – Spread it around,
spread the love around. You know Flynn, I want to come back to something that you were mentioning about we gotta make the numbers. Nobody’s getting more money
right in the IT department. We need to turn it from a cost center into a real source of
value for businesses. A big part of that is you guys
are seeing a lot of change in terms of how people
are actually consuming — – Consumption.
– The IT right. – Yep.
– Yep. – Tell us a little bit more
about what you’re seeing there. What are the trends? – Yeah, that’s a model. Well I’d say we’ve watched this trend, let’s just start here, if
you went five years ago and asked kind of the IT industry what is consumption mean, five years ago, they would say well it’s
financial engineering, it’s subscriptions, it’s leasing, it’s moving from cap x to op x, that’s what it was five
years ago that’s right, and as the market has evolved
over the last five years in particular with the
ascension of Public Cloud and all the capabilities there, that definition of consumption
has totally changed. So consumption today, the
benchmark is pay per use, metered usage goes up
and down as you need it, pay just for what you use. So on the subject of saving money, that saves money, pay
just for what you use. It’s also simplified. So when you think of consumption today that’s somebody else
doing the IT heavy lifting behind the curtains. You’re not standing it up and building it and turning it on and integrating it and testing it and
managing it and running it. It’s happening somewhere else. And then it’s instant on
and instant off right, I could turn it up, I could turn it down. That is consumption today. And what we see as a
wave across the industry is not just Public Cloud, but even on prem and certainly
with some of the offerings from Hewlett Packard Enterprise pioneering in that space, we
talk about it all the time. Consumption is changing the landscape. Regardless of where the infrastructure is. IT needs to be consumed
now across the board. – You know and I think this is really extremely important point in this as well and the problem is it’s not just a is it Cap X the right
model of consumption based on or is Opex the right model. Actually one time I talked to two CIOs in the same industry within
a week of each other, they both wanted to build
an industry specific cloud. One of them their CFO said
the best way to build it was Capex the other one the CFO said the best way to build it was Opex. And really when you dug
into it they’re both legitimately good reasons, but the point of it is really, you’ve got to look at the
needs of your environment, your business, your applications and say what is the right model
from a financial standpoint and you really gotta be able to kinda do, do the right ones. – I’ll pivot on exactly
what you just said there because you touched on
what I would consider is what’s the why. I like Simon Sinek, I’m a
big fan of his stuff right. What’s the why? If we’re all charging the cloud because you’re going and you’re going, you’re going, that’s a bad why. That’s a real bad why. If you’re going because
there is a business driver that drives top line revenue okay, how the financial people figure out on the back end okay
on a consumption model to go up and down with the business needs as you’re driving revenue
and you consume to match it and if some disruption comes
in you have to turn it down and you can turn it down with you, now you’ve got a model that works. That’s the consumption. Business revenue,
revenue, revenue, revenue drives consumption. – Absolutely, I think
that’s what’s fascinating is that when you’re talking
about this new kind of way of thinking about consumption,
you hit on it Flynn, but I feel like we really
need to emphasize it ’cause it is so it is not just
about Public Cloud anymore and it’s not just about
Private Cloud anymore. It can have that same level of agility that same level of flexibility on wherever you need to put the infrastructure right. – That is the wave of IT in the future. And it is the way we consume it in our consumer lives. Going back to that theme. That’s what we expect
in our consumer lives. That’s what businesses have come to expect and it’s the companies
that are able to bring that instant on, instant
off, that consumption market to help accelerate
customers, those are the ones that are gonna win in the next — – You know and staying on that theme on that notion of consumption, no matter where the infrastructures based paying for what you use, how are we seeing that kind of align with this explosion of
data that’s being created, at the edge in particular? There’s so many companies now that we’re gonna continue to see that you know a huge
proportion of their data is gonna be created out of the edge, their gonna want to process it there, they may not want to bring it home so what’s the right mix there? – Wow, where’s our crystal ball right. I’ll get tarot cards out here and I’ll tell you how it’s gonna be right. – I’m gonna bring a
crystal ball out later. (laughing) – Me personally, this is my opinion. I don’t think it’s clear yet. I really don’t. The market is moving so fast. Evolution of technologies
are moving so quickly we are gonna be limited by
physical speed of light issues, the fastest way to move a
petabyte of data right now, load it on the back of
a truck and ship it. FedEx is the fastest method
for moving data right now. – And that is a real
edge issue in some cases. – That is a real issue. So we have latency issues,
we’ve got bandwidth issues, we’ve got speed of light issues
those type of things right cost issues. I have to say, it will
always, always, always, be tied to the value of revenue. Alright, top line revenue. If it makes sense from
a revenue point of view and autonomous cars, if it sells more cars and the data’s better
there, it’ll stay there. And then you’ll take extractions from it, you’ll take cuts of it,
you’ll take analytics done there on site and been pushed into a bigger repository right later to do — – But you don’t need to
offload all that data. You just need to offload just the right — – Go back to the business reasons. Go back to the business things to say. Go back to the business. Exactly right. There will always be this push
for those edge experiences that’s where the rubber’s hitting the road in every company in the world. And the companies that succeed there are the companies that are gonna succeed. It’s going to happen at the edge. The IT industry is going
to have to figure this out, because there’s always
gonna be that pull coming. – This is something where
I’m seeing this more and more companies and enterprises are saying, I’ve always collected that data, I just never thought it was valuable. Now they’re realizing like,
wow there may be real value in that data that’s sitting out there. What do I do about it? So first off I gotta store it there. Does that make sense to
transmit it all back or not? A lot of cases no. Then, how do I analyze it though, it means I need to bring
the kind of analyses and the data scientist to the edge. That means bringing the
computer to the edge also so it’s evolving some different
computing architectures from the technology standpoint, but of course, it’s really
going back to what’s of value the day of the data, how’s
the business gonna — – Let me just answer, the beta max VHS that has not been solved. – That’s an old analysis. – I had hair then right. (laughing) – You don’t know understand
what it’s gonna be yet. – One last thing, so I
recently got my Tesla 3 right, okay I got an order and two
years waiting for it right. Ta da, got my car right. First thing I notice
is when I charge it up wouldn’t that be a great place to pull out all the data as opposed to
sending it across the wire like they do now. – Yes. – Right, so or airplanes
when the pull up at the gate are they jacking it or
are the broadcasting it. So I think there in lies
the right connectivity for pulling a large amount of data, that right space, that right timing. – You just gotta figure
out where each of those information ecosystems — – Yeah, yeah, yeah — – Absolutely. Because when the cars on the road it’s different than when
it’s stopped at your house or in a smart city in the context of other autonomous vehicles multi modal transportation. – Yeah.
– Absolutely. Well this is interesting
cause now we’re starting to get a little bit into the possibilities of the future right. You mentioned a crystal
ball, I was gonna bring up the crystal ball because we actually have a magical HPE crystal ball and we’re all gonna look into it together. It’s a beautiful HPE green. We’re gonna look at it
and I really want to know what are you guys seeing
in that future state. Two years from now, five years from now what’s this gonna look like? I mean, I’m with you Flynn,
it’s not an either or answer right. – I’ll T it up, so I think that the edge this conversation is
only going to accelerate. I think it’s a parabola. It’s going to dominate
IT in the next few years and I think the winners
are going to be those that figure out how take
consumption to the edge. This experience that we’re all getting in consuming IT, paying
just for what you use, to get those edge
experiences that you want. I think it is the merger
of those two things maybe a little AI sprinkled on top that’s going to change. – A little scoop of AI. – Couple scoops of AI. With edge and consumption together, that’s where IT is moving. That’s where it’s moving. – How about you Gary? – I’m kind of in a similar
boat I guess really. So how about that, so I
don’t know if that helps any. – I thought we were gonna
have more disagreement here. – So edge to cloud, but I think it’s really about bringing the cloud to the edge in a way and of course that’s bringing
the cloud to the data. So whether it’s analytics or whatever, something like that as well. I think the disruption
in the cloud has brought has been for very good reasons. And the edge needs to be kind of thinking about being part of that. Physically, obviously it
has to be geographically isolated because that’s kind of where that data is being collected
and action is happening, but I think we need to
think about how’s that model gonna really gonna come to this, but yeah, the future is like wow who knows what’s
going to happen for sure, but I think that’s kind
of where it’s going. – So I’ll respectively have
a whole nother conversation. I’m very passionate
about this when everybody has the same technologies owning a large infrastructure
around that technology when other people can
get it for a credit card and a team it becomes a leveling factor, which you said it, it’s
ubiquitous, everybody has it. Then, therefore what is the
thing that is competitive? It’s people. It is people. People, people, people. This is the part that I believe
will be so much different in the next five years is the
focus on team development, enablement of teams, the full stack teams, how do the teams cooperate,
systems that manage around the teams, how
do I get my teams to be safely sprinting and failing fast, how do I train people to be super flexible and resilient to failure. How do I do experiment and not worry about if you don’t like me because
I did something wrong or if I’m a manager and I
allow my team to thrive? We have an environment now where people who have the ability to
pivot and change careers almost within an 18 month period. We have people on our team
who are doing the third career of their life right
now in a six year period. Three completely different careers unrelated to what they went to school for. So this is the new modality right. So I personally believe that we have coming up in 2020 and beyond
this whole next generation that’s coming up here, is
gonna be about us leaders figuring out how to get the newer, more younger, agile people and the people of our ages
to figure out how to break the chains and shackles
of personal development and how do we use this whole
thing to better the advancement of the human race as
opposed to just driving into a technology which ones better, you understand. That’s where I think
it’s gonna be and that’s my personal belief. – His crystal ball is awesome. – Yeah, I want that crystal ball. – People always makes the difference. – But more so now though. More so ’cause you know that – Because you’re right
because a small start up can disrupt big organizations
if they have the right people – Example after example in the market. Exactly right.
– But you still have to go to the CIA to get the
best tools in the world when you were 20 years ago. See that’s the serious. That’s where all the biggest,
baddest stuff is happening. Not anymore, not anymore. – This has been fantastic guys
– It’s been great, thank you. – It’s been great. Thank you so much, really
appreciate all the time. This has been The Future of
Cloud on The Element Podcast presented by Hewlett Packard Enterprise. Thanks for tuning in. We’ll see you next time. (futuristic music)

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