Cloud AI Journey With HPE | Episode 2: Insights From theCUBE Analysts

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More from Cloud AI Journey With HPE

Varma Kunaparaju

Senior Vice President / GM, Cloud Platform & OpsRamp

HPE

Hang Tan

Chief Operating Officer, Hybrid Cloud

HPE

Savannah Peterson

Principal Analyst & Host

SiliconANGLE Media, Inc.

Rob Strechay

Dir./Principal Analyst & Host

theCUBE Research

Breaking the cloud silos with HPE: The future of hybrid cloud and IT observability

The cloud revolution has been transformative for enterprise IT, but not always in the ways businesses expect. Many organizations found themselves in the hybrid cloud by accident rather than intentionally. Now, they’re saddled with operational silos and inefficiencies from a convoluted technology stackHow big is the enterprise problem of fragmented cloud infrastructure? And how are platforms such as HPE GreenLake poised to remedy the situation?“I think what’s great about Hang [Tan] and what he talks about here is that a lot of people ended up in the cloud by accident and not on purpose and not intentionally,” said Rob Strechay (pictured, right), principal analyst at theCUBE

play_circle_outline Full stack observability with cloud-native standards

play_circle_outline OpsRamp as a key cornerstone for hybrid cloud management

play_circle_outline Observability across industry verticals

play_circle_outline Maximizing Industry Observability: Leveraging Data at the Edge for AI-driven Customer Experience Optimization

Info

Episode 2: Insights From theCUBE Analysts

Varma Kunaparaju

Senior Vice President / GM, Cloud Platform & OpsRamp HPE

Hang Tan

Chief Operating Officer, Hybrid Cloud HPE

Savannah Peterson

Principal Analyst & Host SiliconANGLE Media, Inc.

HOST

Rob Strechay

Dir./Principal Analyst & Host theCUBE Research

HOST

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Rob Strechay

>> Hello, cloud community and welcome to Houston, Texas where Rob and I are bringing a special episode of our new Cloud AI Journey with HPE Show. Really pumped to be able to break down an interview that I did recently with Hang and Varma here on the team and look at this gorgeous building we are in here. HPE really knows how to show off.

Rob Strechay

>> Yeah, this building is absolutely a showpiece. They have their new customer experience center here. They have a lot going on and a lot of innovation going on here as well, which you can't beat being in the center of that innovation.

Rob Strechay

>> You really can't. And speaking of, we had such an innovative interview with Hang and Varma earlier, and I want to go back through some of that footage and get your hot take. This first clip is all about something I know that you and I are really passionate about, which is getting workflows, data, everything out of silos. Let's go ahead and run that back.

Rob Strechay

>> Then it was really about bringing the cloud experience on-prem and that was a big win for our customers with HPE GreenLake. And then we asked ourselves, okay, so now what? And what we saw as hybrid cloud became more pervasive was that it created a lot of problems when customers went to the public cloud in a sort of what we call a hybrid by accident way, where they basically led the lines of business, deploy public clouds on their own. And so now you have created a lot of different operational silos. You had operational silos for your traditional infrastructure for your private cloud as well as for all the public cloud deployments you have. And so that's the next big problem we're going after it, which is how do we simplify hybrid multi-cloud operations in a cloud-native way, in a unified way that truly brings the next generation of AI and automation to bear. And so that's really the big focus for us in this next phase of our hybrid cloud, our GreenLake journey.

>> So what do you think, Rob?

Rob Strechay

>> So I think what's really great about Hang and what he talks to here is that a lot of people ended up in cloud by accident and not on purpose and not intentionally. And a lot of it was, "Hey, we have to go cloud first." And that meant to a hyperscaler. I think where Hang brings it back together is that really talking about how deployments of cloud are actually coming on-prem as well. We're seeing that in our data with ETR-

Rob Strechay

>> We absolutely are.

Rob Strechay

>> Over 50% are still on-prem, which again, with new applications. So I think this is really a key to where they're going with their strategy and why, what we're going to talk about with the traditional, I guess you could say traditional stack really isn't equivalent to what is coming now in the future with the full stack.

Rob Strechay

>> I think you're absolutely right. I think it's one of the highlights of that conversation and I'm glad that you called it out. We've got even more footage for you all. Our next clip here is talking about multi-vendor support and observability, really critical with OpsRamp since they've been a part of HPE now for about 18 months. Let's go ahead and roll that back.

Rob Strechay

>> In fact, of the acquisition, our multi-vendor support where we not only support HPE but non-HPE gear into the environment is the number one. Number two, we double down our full stack observability with cloud-native standards and open telemetry and open standards using EPPF and a bunch of modern cloud-native technologies that allows us to instrument these infrastructures and applications' full stack observability. And number three is the AI and AI-related investments that we did and we announced in last year's discover the OpsRamp Copilot and we continued the journey to really accelerate the product acceleration. Last but not the least, network observability, which is we partnered with Aruba, which is a large networking division of HPE. We support multi-vendor network observability that we integrated into Aruba's thing to accelerate a full stack network observability, which is not look at network performance management, but network performance topology and configuration all together to give a unique network observability.

Rob Strechay

>> Okay. Rob, what do you think about this clip?

Rob Strechay

>> So I think Varma brought it home really well, talking about how you can't just be singular in nature in a hybrid cloud, and I think everybody looks at hybrid. Hybrid is the dominant cloud deployment model now, and I think, again, we'll get into this a little bit more, but hybrid doesn't mean here or there. It talks about edge, it talks about colo, it talks about a number-

Rob Strechay

>> Yeah, that's a great point.

Rob Strechay

>> Of different places that they're bringing together. And I think really when you start to look at how HPE has brought a full stack observability together, I think when you start to look at what OpsRamp brings to the party, not just as part of GreenLake but as part of the entire connective tissue for their stack, that is their cloud stack. I think also the fact that they brought it together with, again, Aruba and Aruba Central really is the strength of playing off of the different pieces and innovating as they've brought the companies together.

Rob Strechay

>> Yeah, I think that's actually one of the things I found really about the interview when I was delighted that HPE wanted to highlight this was the fact that HPE isn't trying to acquire OpsRamp and then not leverage their awesomeness despite it being a small team relative to the scope of HPE. They're really celebrating that and bringing that into their solution. Observability is so important right now. OpsRamp is a leader in hybrid observability. It's one of the fun things you're going to see in this next clip, Rob.

Rob Strechay

>> From the infrastructure building blocks to then taking those infrastructure building blocks into T-shirt sized cloud services, then having the runtime layer now with virtualization and containers, now we have a full suite of hybrid cloud management capabilities with OpsRamp being a key cornerstone of that. So we clearly have a full stack and OpsRamp fits very well. We have a sum of parts strategy, but what I'm a firm believer, and I'm a long-term practitioner of technology strategy, is that just because you have a sum of parts strategy doesn't mean that you can neglect the individual pieces within that portfolio. Each piece in that portfolio has to stand on its own merits, has to be able to compete in the marketplace and win business on its own merits. So it's very important for us to make OpsRamp successful. Leveraging the capabilities we have, but we want OpsRamp to be a market leader in hybrid observability period, not tied to anything. And Varma and I talk about this all the time, OpsRamp is really a star in our portfolio. It's a billion dollar business. I truly believe that this is a billion dollar business in the making. Love it. You heard it here. You heard it here first. It's our commitment. We're not here to... Yeah, so Varma do you want to add to that? I think you put a bullseye on my back for a multi-billion dollar revenue here. So no, I think I'm excited about the opportunity. The de facto leadership and hybrid observability can only come when you have a fundamental stack that supports from ground up that, and I think OpsRamp has the underpinnings for doing that and the go-to-market capability that HPE provides with almost 11,000 plus salespeople in the field, it is an achievable target.

>> All right.

Rob Strechay

>> Again, I think when you start to look at how they're breaking this down and looking at the opportunity. Being a billion dollar opportunity here, I think that is, hey, you got to put a big audacious goals out there to aim for. I think that, again, the thinking behind it makes a lot of sense. There is a huge TAM in observability and I think HPE is pretty well positioned to bring that together. As Varma had talked about in the other clip as well around open telemetry and where they're going with some of those open standards and eBPF and some of the other things that are going on. But in this one really looking at how cloud is an operating model, not a place, and really how that is leading them to this billion dollar opportunity for OpsRamp and for GreenLake in general. I think this really is key to how they're going to really make a lot of hay in this. I think that observability is that full stack. I think that there's a platform play here. We talk about it all the time on many of our different analyses that observability is about a platform play. I think that they're coming from it from the infrastructure up perspective. I think they're also making acquisitions, further acquisitions on top of OpsRamp with their acquisition of Morpheus, which we'll talk about probably at a later date. But when you start to look at how they're bringing this together and creating that stack, plus under the hood with the hardware, the software, things like KVM and their own container stack, really, they're taking an innovative approach to bringing that to bear. But I think keying off the fact that they also bring in third parties, like they can not just doing Aruba's technology, but doing Cisco's technology. I think that's key to getting that billion dollar type of run rate.

Rob Strechay

>> Yeah, well, you've got to optimize the experience for the developers engaging with this and have the best end-to-end solution. That's definitely something that I took away from this interview a lot was how they're thinking about that full stack solution for hybrid cloud. The really pivotal role that OpsRamp plays within that and observability is hot. You and I have been talking about it a lot lately. It seems to be one of those areas that's really having a moment.

Rob Strechay

>> I think so. I think observability has really been at the center of people, because you talk about it and especially with AI and traditional cloud-native applications coming on premise as part of AI-based applications where AI and agents is going to be part of these cloud-native applications. They're not going to be, the people aren't going to go and compete against ChatGPT, but if you don't understand how all the parts pieces are working, how do you know your customer experience with that application is happening? This is where observability and full stack observability from the disk on out through the CPU, the memory, all the way out the network, and looking at how that's all brought together is extremely powerful for what OpsRamp brings to the party. They also have a sustainability angle to it with the sustainability capability in their dashboard within the GreenLake dashboard. I think there's a lot going on here that really help organizations plan better, observe better, and manage better that infrastructure as a cloud. So it simplifies what they're doing, which is what people want in a cloud operating model.

Rob Strechay

>> Yeah. Well said, Rob. Well said. Yes, that was great. I've got one more clip for you to review with me today, and this is looking across industry verticals. Let's go ahead and play that back.

Rob Strechay

>> Every industry, this is pretty horizontal in nature when it comes to IT and IT operations management. It may not be industry specific from a need perspective, maybe use cases in some retail industry, potentially call for how does a consumer experience of a retail application is going to see, and in the case of branch offices, you may find hybrid observability needs to address the last mile and making sure that the branch office or a retail location is getting what they need to do. We have a lot of applications that we accelerated in the last 18 months ranging from financial institutions to large retail deployments. Without naming the companies, we have deployments into 2,000 stores where hybrid infrastructure stack is the footprint in these 2,000 stores where hybrid observability from infrastructure that is sitting in the store in a back office to all the way to the cloud workloads that are supporting those infrastructure elements are all part of the use cases that we have addressed in the last 18 months post acquisition. That's a really good example because there's a lot of things going on within a store in terms of actions and needs and privacy and a whole bunch of other things. So it's an excellent example. Hang, similar question to you. Are you noticing any trends in the industry? Anything that everyone needs right now? Is any vertical jumping out in front or is everyone starting to really realize that now is the moment to make this transformation and really think about your hybrid strategy? I think it's pervasive. Oh, cool. It is quite pervasive. I'm not going to cite specific surveys, but I've come across, obviously we talk to a lot of customers and we've seen a lot of the data. You could say anywhere from 70 to 80% of customers out there, enterprises out there are either looking to repatriate or rebalance their workloads across public and on-prem. So I don't think I'm going out on a limb when I say that hybrid is now the dominant IT architecture. So I think that's today. And I think the other thing is honestly, there's a lot of what I call quiet repatriation, quiet rebalancing. People just do it because it makes sense. They're not making big public pronouncements like a few years back when people were making big public pronouncements about going to the public cloud. Now people are just quietly repatriating, because that's the right thing to do. There's no announcements you need to make.

>> Okay, Rob, final hot take.

Rob Strechay

>> I think they nailed it. I think Hang and Varma really hit the nail on the head with the fact that observability and cloud are not specific to industries. I think the use cases within those industries, I mean, we're here in Houston, oil and gas are big here. When you start to look at how they're using it, think about and having, I've worked in the oil and gas industry and you start to look out into, happened to be on an oil refinery in Trinidad and we had wells out on the other side of the island in the rainforest. Those wells generated a terabyte of data per day. That's out at the edge. And you're starting to-

Rob Strechay

>> Whoa.

Rob Strechay

>> Look at how do you bring-

Rob Strechay

>> That's a ton of data.

Rob Strechay

>> Yeah, a ton of data. And that was a small little refinery and operation that we had going on there.

Rob Strechay

>> Yes, great perspective.

Rob Strechay

>> You start to look at these different industries, be it they talk about retail in the 2,000 stores. You start to look at all of these different pieces that are coming together and the data is at the edge. And I think we talk-

Rob Strechay

>> We know this, 50% of data is at the edge.

Rob Strechay

>> At least.

Rob Strechay

>> Yeah.

Rob Strechay

>> And 86% of data that people want to use within their AI is on-prem. So when you look at this observability and you look at how you can control the data, you look at governance, you look at guardrails, you look at how it's not just about those applications, AI is actually a small piece of a state of applications. You really need to optimize for the full customer journey so that it's not just about making their AI fast, it's about making the entire application experience fast, which is where from, again, disk forward out to that customer experience becomes really important. Where OpsRamp has really helped within those industries because it can gather data from all of these different types of assets and kit that the customer has and bring it together. And I think, again, it's just a really key that there's not really an industry vertical that can't benefit from that type of observability.

Rob Strechay

>> No, I think that's a great point. And what a fun example there with the Trinidad oil well.

Rob Strechay

>> Yeah, I mean, you start to look-

Rob Strechay

>> Very on brand for being here in Texas.

>> Yeah, Houston. Yeah, drill.

Rob Strechay

>> Yeah. Well, this has been awesome, Rob. I really appreciate you breaking down this interview with me. I'm so excited for this entire Cloud AI Journey series that we're doing with HPE. This is, we're just going to keep the fun coming.

Rob Strechay

>> Absolutely. And I think, again, that cloud operating model, it's not just in the hyperscalers, it is on-premise in the colos, it's at the edge, it is everywhere, and that's where observability really is key.

Rob Strechay

>> Yeah, I can't wait to see how this scales out and some fun customer stories hopefully in the future and really can't wait to continue this series with you, Rob. Thanks for hanging out today.

>> Thank you.

Rob Strechay

>> And thank all of you for tuning in wherever you might be on this beautiful rock. We're here in fabulous Houston, Texas at HPE HQ in this stunning building. Thank you to everyone here who's made us feel so welcome. My name's Savannah Peterson. You're watching theCUBE, the leading source for enterprise tech news.

Episode 2: Insights From theCUBE Analysts

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Rob Strechay

>> Hello, cloud community and welcome to Houston, Texas where Rob and I are bringing a special episode of our new Cloud AI Journey with HPE Show. Really pumped to be able to break down an interview that I did recently with Hang and Varma here on the team and look at this gorgeous building we are in here. HPE really knows how to show off.

Rob Strechay

>> Yeah, this building is absolutely a showpiece. They have their new customer experience center here. They have a lot going on and a lot of innovation going on here as well, which you can't beat being in the center of that innovation.

Rob Strechay

>> You really can't. And speaking of, we had such an innovative interview with Hang and Varma earlier, and I want to go back through some of that footage and get your hot take. This first clip is all about something I know that you and I are really passionate about, which is getting workflows, data, everything out of silos. Let's go ahead and run that back.

Rob Strechay

>> Then it was really about bringing the cloud experience on-prem and that was a big win for our customers with HPE GreenLake. And then we asked ourselves, okay, so now what? And what we saw as hybrid cloud became more pervasive was that it created a lot of problems when customers went to the public cloud in a sort of what we call a hybrid by accident way, where they basically led the lines of business, deploy public clouds on their own. And so now you have created a lot of different operational silos. You had operational silos for your traditional infrastructure for your private cloud as well as for all the public cloud deployments you have. And so that's the next big problem we're going after it, which is how do we simplify hybrid multi-cloud operations in a cloud-native way, in a unified way that truly brings the next generation of AI and automation to bear. And so that's really the big focus for us in this next phase of our hybrid cloud, our GreenLake journey.

>> So what do you think, Rob?

Rob Strechay

>> So I think what's really great about Hang and what he talks to here is that a lot of people ended up in cloud by accident and not on purpose and not intentionally. And a lot of it was, "Hey, we have to go cloud first." And that meant to a hyperscaler. I think where Hang brings it back together is that really talking about how deployments of cloud are actually coming on-prem as well. We're seeing that in our data with ETR-

Rob Strechay

>> We absolutely are.

Rob Strechay

>> Over 50% are still on-prem, which again, with new applications. So I think this is really a key to where they're going with their strategy and why, what we're going to talk about with the traditional, I guess you could say traditional stack really isn't equivalent to what is coming now in the future with the full stack.

Rob Strechay

>> I think you're absolutely right. I think it's one of the highlights of that conversation and I'm glad that you called it out. We've got even more footage for you all. Our next clip here is talking about multi-vendor support and observability, really critical with OpsRamp since they've been a part of HPE now for about 18 months. Let's go ahead and roll that back.

Rob Strechay

>> In fact, of the acquisition, our multi-vendor support where we not only support HPE but non-HPE gear into the environment is the number one. Number two, we double down our full stack observability with cloud-native standards and open telemetry and open standards using EPPF and a bunch of modern cloud-native technologies that allows us to instrument these infrastructures and applications' full stack observability. And number three is the AI and AI-related investments that we did and we announced in last year's discover the OpsRamp Copilot and we continued the journey to really accelerate the product acceleration. Last but not the least, network observability, which is we partnered with Aruba, which is a large networking division of HPE. We support multi-vendor network observability that we integrated into Aruba's thing to accelerate a full stack network observability, which is not look at network performance management, but network performance topology and configuration all together to give a unique network observability.

Rob Strechay

>> Okay. Rob, what do you think about this clip?

Rob Strechay

>> So I think Varma brought it home really well, talking about how you can't just be singular in nature in a hybrid cloud, and I think everybody looks at hybrid. Hybrid is the dominant cloud deployment model now, and I think, again, we'll get into this a little bit more, but hybrid doesn't mean here or there. It talks about edge, it talks about colo, it talks about a number-

Rob Strechay

>> Yeah, that's a great point.

Rob Strechay

>> Of different places that they're bringing together. And I think really when you start to look at how HPE has brought a full stack observability together, I think when you start to look at what OpsRamp brings to the party, not just as part of GreenLake but as part of the entire connective tissue for their stack, that is their cloud stack. I think also the fact that they brought it together with, again, Aruba and Aruba Central really is the strength of playing off of the different pieces and innovating as they've brought the companies together.

Rob Strechay

>> Yeah, I think that's actually one of the things I found really about the interview when I was delighted that HPE wanted to highlight this was the fact that HPE isn't trying to acquire OpsRamp and then not leverage their awesomeness despite it being a small team relative to the scope of HPE. They're really celebrating that and bringing that into their solution. Observability is so important right now. OpsRamp is a leader in hybrid observability. It's one of the fun things you're going to see in this next clip, Rob.

Rob Strechay

>> From the infrastructure building blocks to then taking those infrastructure building blocks into T-shirt sized cloud services, then having the runtime layer now with virtualization and containers, now we have a full suite of hybrid cloud management capabilities with OpsRamp being a key cornerstone of that. So we clearly have a full stack and OpsRamp fits very well. We have a sum of parts strategy, but what I'm a firm believer, and I'm a long-term practitioner of technology strategy, is that just because you have a sum of parts strategy doesn't mean that you can neglect the individual pieces within that portfolio. Each piece in that portfolio has to stand on its own merits, has to be able to compete in the marketplace and win business on its own merits. So it's very important for us to make OpsRamp successful. Leveraging the capabilities we have, but we want OpsRamp to be a market leader in hybrid observability period, not tied to anything. And Varma and I talk about this all the time, OpsRamp is really a star in our portfolio. It's a billion dollar business. I truly believe that this is a billion dollar business in the making. Love it. You heard it here. You heard it here first. It's our commitment. We're not here to... Yeah, so Varma do you want to add to that? I think you put a bullseye on my back for a multi-billion dollar revenue here. So no, I think I'm excited about the opportunity. The de facto leadership and hybrid observability can only come when you have a fundamental stack that supports from ground up that, and I think OpsRamp has the underpinnings for doing that and the go-to-market capability that HPE provides with almost 11,000 plus salespeople in the field, it is an achievable target.

>> All right.

Rob Strechay

>> Again, I think when you start to look at how they're breaking this down and looking at the opportunity. Being a billion dollar opportunity here, I think that is, hey, you got to put a big audacious goals out there to aim for. I think that, again, the thinking behind it makes a lot of sense. There is a huge TAM in observability and I think HPE is pretty well positioned to bring that together. As Varma had talked about in the other clip as well around open telemetry and where they're going with some of those open standards and eBPF and some of the other things that are going on. But in this one really looking at how cloud is an operating model, not a place, and really how that is leading them to this billion dollar opportunity for OpsRamp and for GreenLake in general. I think this really is key to how they're going to really make a lot of hay in this. I think that observability is that full stack. I think that there's a platform play here. We talk about it all the time on many of our different analyses that observability is about a platform play. I think that they're coming from it from the infrastructure up perspective. I think they're also making acquisitions, further acquisitions on top of OpsRamp with their acquisition of Morpheus, which we'll talk about probably at a later date. But when you start to look at how they're bringing this together and creating that stack, plus under the hood with the hardware, the software, things like KVM and their own container stack, really, they're taking an innovative approach to bringing that to bear. But I think keying off the fact that they also bring in third parties, like they can not just doing Aruba's technology, but doing Cisco's technology. I think that's key to getting that billion dollar type of run rate.

Rob Strechay

>> Yeah, well, you've got to optimize the experience for the developers engaging with this and have the best end-to-end solution. That's definitely something that I took away from this interview a lot was how they're thinking about that full stack solution for hybrid cloud. The really pivotal role that OpsRamp plays within that and observability is hot. You and I have been talking about it a lot lately. It seems to be one of those areas that's really having a moment.

Rob Strechay

>> I think so. I think observability has really been at the center of people, because you talk about it and especially with AI and traditional cloud-native applications coming on premise as part of AI-based applications where AI and agents is going to be part of these cloud-native applications. They're not going to be, the people aren't going to go and compete against ChatGPT, but if you don't understand how all the parts pieces are working, how do you know your customer experience with that application is happening? This is where observability and full stack observability from the disk on out through the CPU, the memory, all the way out the network, and looking at how that's all brought together is extremely powerful for what OpsRamp brings to the party. They also have a sustainability angle to it with the sustainability capability in their dashboard within the GreenLake dashboard. I think there's a lot going on here that really help organizations plan better, observe better, and manage better that infrastructure as a cloud. So it simplifies what they're doing, which is what people want in a cloud operating model.

Rob Strechay

>> Yeah. Well said, Rob. Well said. Yes, that was great. I've got one more clip for you to review with me today, and this is looking across industry verticals. Let's go ahead and play that back.

Rob Strechay

>> Every industry, this is pretty horizontal in nature when it comes to IT and IT operations management. It may not be industry specific from a need perspective, maybe use cases in some retail industry, potentially call for how does a consumer experience of a retail application is going to see, and in the case of branch offices, you may find hybrid observability needs to address the last mile and making sure that the branch office or a retail location is getting what they need to do. We have a lot of applications that we accelerated in the last 18 months ranging from financial institutions to large retail deployments. Without naming the companies, we have deployments into 2,000 stores where hybrid infrastructure stack is the footprint in these 2,000 stores where hybrid observability from infrastructure that is sitting in the store in a back office to all the way to the cloud workloads that are supporting those infrastructure elements are all part of the use cases that we have addressed in the last 18 months post acquisition. That's a really good example because there's a lot of things going on within a store in terms of actions and needs and privacy and a whole bunch of other things. So it's an excellent example. Hang, similar question to you. Are you noticing any trends in the industry? Anything that everyone needs right now? Is any vertical jumping out in front or is everyone starting to really realize that now is the moment to make this transformation and really think about your hybrid strategy? I think it's pervasive. Oh, cool. It is quite pervasive. I'm not going to cite specific surveys, but I've come across, obviously we talk to a lot of customers and we've seen a lot of the data. You could say anywhere from 70 to 80% of customers out there, enterprises out there are either looking to repatriate or rebalance their workloads across public and on-prem. So I don't think I'm going out on a limb when I say that hybrid is now the dominant IT architecture. So I think that's today. And I think the other thing is honestly, there's a lot of what I call quiet repatriation, quiet rebalancing. People just do it because it makes sense. They're not making big public pronouncements like a few years back when people were making big public pronouncements about going to the public cloud. Now people are just quietly repatriating, because that's the right thing to do. There's no announcements you need to make.

>> Okay, Rob, final hot take.

Rob Strechay

>> I think they nailed it. I think Hang and Varma really hit the nail on the head with the fact that observability and cloud are not specific to industries. I think the use cases within those industries, I mean, we're here in Houston, oil and gas are big here. When you start to look at how they're using it, think about and having, I've worked in the oil and gas industry and you start to look out into, happened to be on an oil refinery in Trinidad and we had wells out on the other side of the island in the rainforest. Those wells generated a terabyte of data per day. That's out at the edge. And you're starting to-

Rob Strechay

>> Whoa.

Rob Strechay

>> Look at how do you bring-

Rob Strechay

>> That's a ton of data.

Rob Strechay

>> Yeah, a ton of data. And that was a small little refinery and operation that we had going on there.

Rob Strechay

>> Yes, great perspective.

Rob Strechay

>> You start to look at these different industries, be it they talk about retail in the 2,000 stores. You start to look at all of these different pieces that are coming together and the data is at the edge. And I think we talk-

Rob Strechay

>> We know this, 50% of data is at the edge.

Rob Strechay

>> At least.

Rob Strechay

>> Yeah.

Rob Strechay

>> And 86% of data that people want to use within their AI is on-prem. So when you look at this observability and you look at how you can control the data, you look at governance, you look at guardrails, you look at how it's not just about those applications, AI is actually a small piece of a state of applications. You really need to optimize for the full customer journey so that it's not just about making their AI fast, it's about making the entire application experience fast, which is where from, again, disk forward out to that customer experience becomes really important. Where OpsRamp has really helped within those industries because it can gather data from all of these different types of assets and kit that the customer has and bring it together. And I think, again, it's just a really key that there's not really an industry vertical that can't benefit from that type of observability.

Rob Strechay

>> No, I think that's a great point. And what a fun example there with the Trinidad oil well.

Rob Strechay

>> Yeah, I mean, you start to look-

Rob Strechay

>> Very on brand for being here in Texas.

>> Yeah, Houston. Yeah, drill.

Rob Strechay

>> Yeah. Well, this has been awesome, Rob. I really appreciate you breaking down this interview with me. I'm so excited for this entire Cloud AI Journey series that we're doing with HPE. This is, we're just going to keep the fun coming.

Rob Strechay

>> Absolutely. And I think, again, that cloud operating model, it's not just in the hyperscalers, it is on-premise in the colos, it's at the edge, it is everywhere, and that's where observability really is key.

Rob Strechay

>> Yeah, I can't wait to see how this scales out and some fun customer stories hopefully in the future and really can't wait to continue this series with you, Rob. Thanks for hanging out today.

>> Thank you.

Rob Strechay

>> And thank all of you for tuning in wherever you might be on this beautiful rock. We're here in fabulous Houston, Texas at HPE HQ in this stunning building. Thank you to everyone here who's made us feel so welcome. My name's Savannah Peterson. You're watching theCUBE, the leading source for enterprise tech news.