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HPQ)" data-reactid="11">Hewlett-Packard Co. (HPQ)
Bethany Mayer - Senior vice chairman and popular supervisor, Hewlett-Packard Networking
HP conference call and webcast. (Operator Instructions) I would now like to turn the call over to Brian Marshall, Senior Managing Director and Head of Tech-Research at ISI." data-reactid="21">respectable day and welcome to this joint ISI and HP convention name and webcast. (Operator guidelines) i'd now like to flip the call over to Brian Marshall, Senior Managing Director and Head of Tech-analysis at ISI.
HP, doing roughly about $2.5 billion of annual sales, actually has grown year-over-year for 13 consecutive quarters. So obviously that's moving in the right direction." data-reactid="23">Thanks each person for becoming a member of us today. i'm very excited to have Bethany Mayer, Senior vice chairman and generic supervisor of Hewlett-Packard Networking community. definitely, this neighborhood is among the fastest turning out to be business units with inside HP, doing roughly about $2.5 billion of annual income, basically has grown 12 months-over-12 months for 13 consecutive quarters. So surely it truly is relocating within the correct course.
HP Networking today in a little bit more detail, especially with respect to some of the new trends that we're seeing out there. In particular, software-defined networking, the changes that's going to have in the industry and how HP is going to be leading that effort going forward." data-reactid="24">and i'm basically excited to talk about HP Networking these days in a bit bit more element, mainly with respect to one of the crucial new trends that we're seeing available. In certain, application-defined networking, the alterations it really is going to have in the industry and the way HP goes to be leading that effort going ahead.
HP as well as Blue Coat, where she was responsible for the Packeteer transaction, drove triple-digit growth there over a several-year environment. She spent some time at Mirapoint and JDSU, at Cisco, Ericsson and Apple, so very happy to have her join us today." data-reactid="25">Bethany has spent over 25 years in the networking house, besides the fact that children actually would not look like it. She spent a lot of time at HP in addition to Blue Coat, the place she was chargeable for the Packeteer transaction, drove triple-digit increase there over a several-yr environment. She spent a while at Mirapoint and JDSU, at Cisco, Ericsson and Apple, so very happy to have her join us nowadays.
So with that, I think she's going to have doubtless about 15 slides or so, then we will go at once into Q&A. We even have Nitesh Sharan from Hewlett-Packard's IR with us as neatly.
And so earlier than we hand it over to Bethany's presentation, i might identical to to point out that this presentation may also encompass some forward-looking statements that comprises risk and uncertainties and assumptions. For a detailed disclosure, please consult with Slide 2 within the presentation deck.
With that, i would like to turn it over to Bethany.
HP Networking business unit within HP Networking. And also as he mentioned, we're about a $2.5 billion revenue run rate at this time." data-reactid="30">thank you, Brian, I recognize the time and appreciate all your time obtainable. As Brian mentioned, I head up the HP Networking company unit within HP Networking. And additionally as he mentioned, we're a few $2.5 billion income run fee at the present.
HP Networking, so that in case you don't have that, you will. First, I'd like to start with our customer value proposition." data-reactid="31">i wanted to move over a couple of issues for you, just to birth out, to give you a short understanding typical of HP Networking, in order that if you shouldn't have that, you are going to. First, i would like to start with our client cost proposition.
Our cost proposition is in reality reasonably wonderful in the business, but it's very, very compelling to CIOs, and that's definitely round simplification of their network. The network has been for many, many years, a very complicated infrastructure, very fragile, very intricate to manipulate and alter, and because of this, many CIOs have in reality struggled with making changes to reply to their enterprise the use of the network.
HP Networking and everything we do is focused around simplification of that networking, architecture, the infrastructure, and the operating activities that go on with that network. So we have four key areas of focus for us in terms of that value proposition and I wanted to just briefly mention them." data-reactid="33">And so our center of attention within HP Networking and everything we do is focused round simplification of that networking, structure, the infrastructure, and the operating activities that go on with that community. So we have four key areas of center of attention for us in terms of that cost proposition and that i wanted to simply briefly mention them.
HP. But that is very, very key to us. It's a key philosophy for our organization and it also allows our customers a great deal of choice as a result of that open standards-based focus on our products." data-reactid="34">the first is, open requirements. we're an open standards-based company and business as you might also be aware of from HP. however that is terribly, very key to us. or not it's a key philosophy for our corporation and it additionally allows our clients a fine deal of option as a result of that open requirements-based center of attention on our products.
HP's Converged Infrastructure strategy is a very key part of our business overall within the enterprise group at HP. And it means a lot to our customers, because basically as these technologies converge together, they'll provide a lot more simplicity and automation for the customer base and that's what we want to do." data-reactid="35">We also have a extremely strong attention around convergence. And as you understand, HP's Converged Infrastructure approach is a very key part of our enterprise ordinary inside the commercial enterprise group at HP. And it capability lots to our valued clientele, as a result of really as these technologies converge together, they may give a lot more simplicity and automation for the client base and that's what we want to do.
Virtualization is one other factor of our offering, that's very vital to simplify the network. We already do and have performed for a couple of years loads of virtualization concepts inside the network to permit our purchasers to in reality not need to class command lines into bins, with the intention to make a change in that network. So we have now completed a lot of work in virtualization already and naturally with SDN we're doing extra.
and at last, automation. everything we do with reference to thinking about working fee for the CIO specializes in guaranteeing they can automate as a lot as feasible in the network. And here is frankly very different paradigm from what they've faced in the past. They've needed to remedy that with human elements instead of just automating the know-how itself, and we provide loads of automation there.
And what it does for the customer in tough terms is it provides a sixty six% reduce TCO and an eight month return on investment for them. So it's a very, very potent price proposition, very compelling from a dollars and cents viewpoint as neatly.
HP has been in the networking business for quite a long time, and started out in the 90s with a very interesting innovation around redefining the campus economics. So what that meant was they created a lifetime warranty for their products. That is not just a business model activity. That requires innovation of the products themselves in order to offer that. And we still offer that today on many of our products." data-reactid="43">I simply wanted to also briefly mention one of the innovations that we've got had over the final a couple of years. As you may know, HP has been within the networking enterprise for quite a very long time, and began out in the 90s with a extremely interesting innovation round redefining the campus economics. So what that meant was they created a lifetime guarantee for his or her products. That is not only a company mannequin activity. That requires innovation of the products themselves with a purpose to present that. And we nonetheless offer that today on lots of our items.
So in case you introduced a swap from us in 1996 and it is now accomplished, and it has had some type of problem, you can come back to us and we will offer you one more one to substitute it. We may not provide the 1996 edition of that product, but we will offer you one other one which will exchange one certain function.
additionally as you seem to be in the course of the years, we now have developed a few other technologies which are very, very imaginative are: first, virtualized blade server connectivity, which we name virtual connect, is a very, very amazing piece of our networking portfolio and allows for valued clientele to utilize the networking connectivity in blade server itself with enormous expertise.
we've additionally developed a virtualization know-how we call, intelligent Resilient Framework, or for brief IRF, which means that you can virtualize a number of switches collectively, as if there's single switch, together with the hop function of that community. So it be no multi-hop, it is definitely a single virtualized change. and that is a extremely big expertise, especially within the information core, in the event you're aggregating plenty and loads of server racks.
We within the 2009 timeframe additionally got here out with our single pane-of-glass management, which is a really key factor of our product offering these days of our intelligent administration center, which manages not simplest all of our items, but several different peoples' products as well. and then within the 2011 timeframe, we developed our FlexNetwork structure, which i'll describe to you, in addition to we started to increase our OpenFlow enabled utility-defined networking controller.
HP Networking and HP as a company." data-reactid="48">As you may additionally be aware of, we've had OpenFlow enabled in our products due to the fact that 2007, and we're carrying on with that lifestyle with now 29 OpenFlow enabled switching systems going to the entire achieved portfolio of OpenFlow enabled switches with the aid of the conclusion of 2013, so enormous progress. after which finally, what we are doing nowadays is, we're deploying SDN applications with shoppers even as I speak. So some remarkable activities within the innovation space for HP Networking and HP as a corporation.
when it comes to who we are from a market momentum perspective, a number of issues, and Brian outlined one in every of them, which is 13 consecutive quarters of increase. we're additionally no 1 in wise managed switches. we are the no 1 network dealer by means of plenty, at a forty one% market share in China, and number two network dealer globally. And in case you add it up, all of our other rivals, apart from Cisco, they would not equal our profits. So we're quantity two via a great deal. and of course, we have a huge competitor in this house as we all know, however we've a big market place these days.
I just wanted to share with you a number of of our consumers, to offer you a bit sense of who we sell to. We sell to many Fortune 1,000 all the way down to small-medium companies. we now have a very first-rate huge breadth of product offering and we cowl many segments, incomes new purchasers at roughly 40 1 / 4, so very satisfactory momentum.
As i mentioned, we developed something we name our FlexNetwork structure. here is very essential and or not it's more than a diagram. it is how we design products and it has a really amazing cost propositions with the purchasers. So it's truly the first unified structure that allows for consistency throughout the statistics middle, the campus and the branch of an business. And we now have constant technologies throughout all of these areas of the community that permit a customer to roll out a really, very essential networking structure it's open standards based mostly, totally scalable, very secured, very agile, and as i discussed, extremely constant.
And consistency is very vital. in the event you are making a transformation to a community around that automation dialogue we had, if all of your packing containers have distinctive operating methods of them, are configured differently, should be provisioned otherwise, you have a very complicated time changing that network. And so consistency is in fact a key right here. after which it's all managed by using a single administration platform, which once more is exciting within the industry, no person else does that, and that is our IMC.
we've a extremely powerful breadth of products as smartly that range from the information core in the course of the campus and into branch. So in the information core, we do core switching and routing in addition to aggregation desirable-of-rack. within the campus, we now have core switching and routing as well. We even have wired and instant and we in reality combine those right into a unified wired instant platform in the campus. And in the branch, we now have routing, switching and also that wired wireless for the branch as well as flex administration or intelligent management middle platform for administration, so a huge breadth of items.
I need to focal point on utility-defined networking for you, as a result of it is a really key part of our approach and our product offering, and that i want to aid you understand it. So first I just need to speak a bit bit concerning the drivers. So if I had mentioned that community for a lot of, a long time has been definitely very intricate to change and gradual to alternate.
You could alternate a lot of issues in your infrastructure and also you may setup a digital computer in exactly a few minutes if you want, but to exchange your community, it literally can take months, and a great deal and loads of planning and a lot of americans. and that's the reason a problem, since the cloud is not going to wait around for months. And if an IT firm cannot carry a carrier to their end-consumer, the end-person can commonly go to the cloud devoid of them.
So in fact, the IT organization needs to alternate its paradigm and needs to have the network be agile and aware of enterprise, as all other elements of the infrastructure are nowadays in now not use, what we call human middleware or a whole lot and loads of individuals typing an awful lot and loads of issues into a great deal and lots of packing containers. That does not aid them and it won't get them to the cloud.
also there are lots of, many devices that all of us recognize are being bought into the commercial enterprise today, and despite the fact that an IT company decides, smartly, that we're simply not going to enable it. The reality is it happens anyhow devoid of them. so they deserve to have a mechanism to permit their clients to are available in with gadgets and have them be safe and use them correctly.
and then eventually from a market growth point of view, the SDN market is going to be very tremendous. And the reason why is as a result of this paradigm, where which you can manage your community from a single mechanism is a profound alternate within the networking trade. and that i'll talk about that.
So we're a founding member of the Open Networking foundation. And if you seem to be at the explanation or definition of SDN, let me simply point a few things out for you, here's what the definition says. The handle and statistics planes are decoupled. okay, that's key. it truly is different than what you do nowadays.
today, the handle and facts aircraft are in a single box, the switch. and you have to trade the swap, swap by using swap, so as to make a metamorphosis. So the manage and information planes are decoupled. The network intelligence and state are logically centralized, so that skill they're no longer in change by using change via swap, and the community infrastructure is abstracted from the applications, and how you want to installation things within the community. here is, as I stated, a really giant and different paradigm from what exists in networking these days and we're a large part of this, which i'm excited about.
So just to offer you an instance, in the event you're building a cloud, here is what it takes today to really bring up 50 users. It takes a lot of folks, lots of provisioning, loads of instructions for 50,000 clients in the cloud. So if you are looking to install a bunch of users in the cloud, it takes you over 3,000 man hours of effort and over 420 network admins. So I imply that's simply no longer scalable. It simply is never and it be not appropriate for the cloud, and that's the reason the aspect of SDN.
So in case you look at the way the network is architected these days, it cannot supply agility and it can't deliver a couple of issues, starting with, the community would not recognize what functions are running over it. In a method that's a fine looking element, however in a further way it is a nasty factor, as a result of purposes are sometimes instances delicate to network alterations and network performance. And if the network would not be aware of that it be operating an utility that requires that, there is a problem with the application.
The community is awfully rigid, physically. So it be no longer supposed for multi-tenant environments or diverse forms of consumer forms or place, it lacks programmability. after which at last, it is manually managed in many cases. You can not manipulate it from an additional element in the network. So those are the concerns with the community because it exist.
And what SDN provides you is massive agility, and it means that you can have a network that is responsive to company wants. and looking at it, in case you birth from the bottom, the infrastructure layer, what SDN first brings is an open requirements-primarily based programmatic entry to the infrastructure. So here's where OpenFlow comes in, k. it is the open requirements-primarily based programmatic access to the infrastructure.
It additionally gives a manage layer that abstracts the manage from the equipment, and it does that in a centralized method. and then ultimately, it offers APIs that are programmable that build orchestration or network capabilities, and even different purposes on that network. So this is what an SDN architecture should still appear to be.
And in case you study it from a physical point of view, you're going to see the network devices at the infrastructure layer with the usage of OpenFlow as a programmable interface, the SDN controller itself, which has the south-facing OpenFlow programmable capabilities and north-facing APIs that are open as smartly and programmable to lots of different things, including cloud orchestration the usage of OpenStack is a good illustration or SDN purposes, which i could describe one for you and even business applications. So that is what it seems like.
HP is doing, is we're following that architecture you can see. And what you can see from what we've done is, first, we've implemented OpenFlow in now 29 of our switching platforms. So that's 29 as compared to one with one other competitor that we know about. A lot of OpenFlow enablement in those products and has been enabled since 2007." data-reactid="67">So what HP is doing, is we're following that architecture you can see. And what that you may see from what we've done is, first, we have implemented OpenFlow in now 29 of our switching platforms. So it truly is 29 as in comparison to one with one different competitor that we find out about. lots of OpenFlow enablement in these products and has been enabled when you consider that 2007.
As neatly, we have our SDN controller. We exhibit it in a server, nonetheless it's utility definitely, and can be put in a server, may also be put on a server anywhere in that community you wish, because it's the single element of manage. we have constructed that, it's in statistics nowadays with several shoppers, together with the ones that I display you in this slide for distinct SDN functions.
HP cloud, so we can virtualize the network using our SDN controller. We also have built a security application, we call Sentinel, and we did that for our customer HBO, who was having problems with people bringing devices into their network." data-reactid="69">after which, we built applications, one is virtualization for our HP cloud, if you want to virtualize the network using our SDN controller. We also have developed a safety application, we name Sentinel, and we did that for our client HBO, who changed into having issues with people bringing devices into their network.
and that i'll clarify that security software in some element. What it potential is now we have taken our DDLab's cloud that supplies signatures to our TippingPoint equipment normally and in its place of it supplying the signatures to the TippingPoint appliance; it delivers the signatures to the SDN Controller, which then pushes these signatures out to all the switching ports within the cloth.
so that in the event you bring up device in that was regular first rate, say, the day prior to this since it become clear by means of all the networking requirements using the IPS, you trot on domestic and your kid plays with it and then you bring it returned in again, the community can experience that there is malware on the equipment and block it. So that's the key there. And it could do this at every single port within the network instead of dragging all that traffic through the community to a single device. it's a extremely staggering profound capability where you actually have dissolved IPS into the switching fabric itself.
And we additionally developed an application with CERN, which, of path, moves terabytes of statistics widespread, which load balances that statistics movement throughout the community using the community itself in its place of home equipment. So this is, as I noted, very profound and the applications are fascinating as a result of they may also be very diverse.
So simply when it comes to what has type of sprung out when it comes to SDN is, i believed i'll kind of offer you a sense of myths which are out there and clarify a little bit about why they aren't true. So the primary myth is that the best network characteristic in utility on a digital computing device or creating an overlay community is SDN. ok, it is now not proper.
this is a network utility. Virtualization of the community is an software of SDN. SDN as the definition mentions has programmable access to the gadgets which are the infrastructure. And in case you simply use an overlay that doesn't take note what gadgets are beneath it, that overlay, and the great of carrier of that overlay is in jeopardy. in order that isn't SDN.
also it is not SDN to have an offering that makes use of a proprietary programming means to program a device. k, that's very nearly the opposite of SDN because you're going device-with the aid of-gadget to reprogram it and you have all these gadgets that are now inconsistent and also you're doing that on a device-by-equipment foundation. You don't seem to be setting apart the control plane from that machine. you're really just controlling that gadget much more granularly.
after which eventually it's now not the conclusion of hardware innovation. There are lot of issues you can do in silicon which will assist and increase community efficiency and that doesn't get supported in a white field. It gets supported via true innovation in silicon itself. So these are the key issues that aren't SDN.
And what i would like to also share with you is we now have developed an ecosystem of application-described networks as well. So not only it's going to re-support our personal products, but we can guide other individuals's items as smartly, so third-party digital switches and infrastructure, we all work with third-party controllers as neatly because of our open-regular capacity.
we will work with other corporations around the utility layer. we'll enhance our own application. And almost have an software ecosystem with our partners and other corporations. The theory right here is to deliver back-to-lower back client alternative, their option and the way they construct their SDN-enabled community.
and that they can assemble it one piece at a time. here is now not a rip and substitute. And in reality, what i'll share with you is here's our version of how the clients will adopt SDN. So first, they'll lay the basis with OpenFlow-enabled switches. Then they will create a lab to take part in an SDN Controller functions and data purposes. they'll flow from that to really deploying functions on their network and then from there perhaps setting up their own purposes after which finally deploying that commercial enterprise-broad.
So this is going to take time. and it'll be a migration. It are usually not a rip and change. And what's unique is if you believe about it, you also can use your SDN Controller emigrate your network from the place it's nowadays to SDN because nearly using that controller that you can virtualize parts of your network or you can automate constituents of your community whereas nevertheless managing the network that you have it truly is there nowadays. So in any case, that is the adoption and that is the reason what I even have these days to talk to you about SDN. thanks.
Brian Marshall - ISI neighborhood
HP is one of the areas that they have confidence in. HP Networking is one of the areas that they have confidence and most confidence in going forward. Can you talk a little bit about the sources of the confidence internally, I mean, is it with respect to the pipeline, the channel, the products et cetera?" data-reactid="83">first rate. Now, we'll change into the question-and-reply session of the dialogue. but Bethany, I believe one of the vital exciting areas, in case you go returned to probably the most contemporary revenue call that Meg and Cathy type of singled-out is that HP is likely one of the areas that they trust in. HP Networking is among the areas that they have confidence and most confidence in going ahead. can you speak a bit bit in regards to the sources of the self belief internally, I mean, is it with respect to the pipeline, the channel, the products et cetera?
HP has very strong organic innovation and it is so exciting to be part of it. And that innovation is evidenced in many, many things we do including the SDN capabilities that we have put in place for our customers." data-reactid="85">smartly, I think that first the momentum has been very wonderful. we have persevered to develop in economic uncertainty and all types of distinctive areas, however the growth has been very first rate and positive. also, the innovation has been very mighty. HP has very powerful biological innovation and it is so interesting to be a part of it. And that innovation is evidenced in lots of, many things we do together with the SDN capabilities that we now have put in vicinity for our customers.
So I suppose they're regarding the momentum we've got had. we've got put in location an excellent go-to market team. we now have leveraged our channels very heavily. We're at 96% channel leverage. So this is very distinct than our competitors. And we now have a extremely strong relationship with our channel partners. And all of those issues together mixed I consider give them effective self assurance in our business unit.
Brian Marshall - ISI neighborhood
HPs market share historically in networking, our perspective is that it's been much stronger in the campus and the branch side of the post to the data center. I guess if you could clarify some of that. And maybe talk about what some of the ambitions are and the visions for developing a stronger presence on the data center switching side." data-reactid="88">in case you suppose about HPs market share traditionally in networking, our standpoint is that it's been plenty stronger within the campus and the branch side of the publish to the records middle. I wager in case you may make clear some of that. and perhaps discuss what some of the ambitions are and the visions for developing a higher presence on the data center switching facet.
HP started in networking by building ProCurve, which many of you may know about, ProCurve, was a campus and branch offering only and actually very successful, very fast growing business for HP, very innovative technologies, with its own ASICs. We still have our own ASICs within our business unit. And a strong player in the campus, really kind of crept up there very quickly in market share in the campus environments." data-reactid="90">So HP all started in networking by using building ProCurve, which lots of you might also learn about, ProCurve, turned into a campus and branch providing best and really very a hit, very quickly growing to be business for HP, very imaginative technologies, with its own ASICs. We still have our personal ASICs within our company unit. And a powerful player within the campus, in fact sort of crept up there very without delay in market share within the campus environments.
HPN to build our data center portfolio, which is now actually very healthy with products that include the core switch capabilities, our core routing functionality as well as our top of racks and then software capabilities around virtualization." data-reactid="91">We now as a result of having obtained 3Com in 2009 and then finalized that acquisition in 2010 have a really huge breadth of product that runs from data center through campus and branch. And we've got executed loads of work inside HPN to build our statistics core portfolio, which is now in reality very fit with items that include the core change capabilities, our core routing functionality as well as our correct of racks and then utility capabilities around virtualization.
So we know today that according to Infonetics as a result of they do segmentation in the network, I think we're at 10.5% share in information middle, but we're turning out to be quick there historically from what I've viewed in market share numbers. And so we have a long approach to move, no doubt, however I feel very good concerning the innovation we should present to shoppers and that i do suppose good that certainly from our momentum greater people are buying our products.
Brian Marshall - ISI group
if you check with the funding group, I feel there is some already predetermined believes in regards to the have an effect on that SDNs going to have on the profitability of infrastructure machine going forward. I believe many issues by using definition literally getting rid of some intelligence, some controls and intelligence from a change and inserting it into a low margin server then you definitely would have some income migration from that change into the server.
What do I believe about that?
Brian Marshall - ISI neighborhood
sure, if you can touch upon that?
So, each are wonderful to me. So couple of issues, one is returned to the ASIC component; it basically matters a whole lot for a community efficiency, simply FYI. however even though you were to assert all the intelligence goes into the handle airplane, well, truly we're ok with that. because, frankly that price we bring to the network is around the intelligence in the network in the automation and within the virtualization of the community. in order that intelligence is of price to the client and to typical expense.
And so we believe as a way to truly be a really potent profit pull for us. And interestingly sufficient, in case you analyze VMware, I suggest, they don't have any hardware, but their earnings pull share is wonderful. And or not it's that managed mechanism that matters to people, that management ability, the automation that you deliver to undergo, that's your cost. and that i would say the different piece is, your ASIC can help you and might give loads of capabilities as well.
Brian Marshall - ISI group
if you take that line of thinking one step further, I mean, most likely you guys are the quantity two participant in this area. you have got a beautiful huge juggernaut with might be 70% of the market as incumbent, but are you able to speak concerning the fee elasticity of the market, mainly with recognize to a couple of those new developments that are coming down the pipe. I suggest, is there an capacity to probably pressure share gains by using altering a bit bit of the place the profits lie in the equation?
yes, completely. I mean, our converged infrastructure capabilities in fact add to that because frankly if there is a switching port that matches within the server or if it suits in a storage machine, i'm ok with that. I imply, if the client desires to converge those applied sciences and have a cloth that goes throughout them that has a fewer boxes, that is now not a foul factor for us.
HP because we own the servers, the storage and the networking. And it's not a packaging exercise. There is the big difference between partnering for packaging versus actually doing R&D organically in your own company around these three technologies. So HP is very comfortable with these shifts in the industry and in the networking space. And I feel that were in a position to take very strong advantage of that." data-reactid="106">We accept as true with strongly that converged infrastructure is the manner that the market will go. And now we have considered that with our competitors because they've also in reality imitated us. and admittedly that means is pleasing to HP because we own the servers, the storage and the networking. And or not it's no longer a packaging activity. there's the massive difference between partnering for packaging versus basically doing R&D organically on your own enterprise round these three technologies. So HP is very at ease with these shifts within the trade and in the networking area. and i consider that were in a position to take very effective advantage of that.
Brian Marshall - ISI group
HP Networking has is early adoption, obviously very early with respect to the trends of SDN, supporting it back in 2007, 2008. I think over 15 million OpenFlow-enabled ports out there in the market today. But you talk a lot about the importance of ASICs, obviously Cisco, as well as Juniper and others, have pretty strong ASIC development groups, in addition to what you guys offer. Can you talk a little bit about maybe some of the differentiating characteristics of HP's SDN strategy relative to some of the other guys, I mean, is it basically being early-to-market, ASICs et cetera." data-reactid="108">in case you suppose about it I think one of the vital benefits of that HP Networking has is early adoption, obviously very early with recognize to the traits of SDN, assisting it returned in 2007, 2008. I believe over 15 million OpenFlow-enabled ports obtainable out there nowadays. however you talk a whole lot about the significance of ASICs, surely Cisco, in addition to Juniper and others, have fairly potent ASIC building companies, besides what you guys present. can you talk a little bit about possibly probably the most differentiating qualities of HP's SDN approach relative to one of the other guys, I imply, is it definitely being early-to-market, ASICs et cetera.
well, early-to-market is important. but frankly, we suppose we are able to marry intelligence both within the machine itself with enormous capabilities and robust handle capabilities in utility. And we shouldn't have a predilection between where we put that, correct. We're satisfied with it being intelligence in a single place and not necessarily intelligence across all containers, correct.
HP is an advantage that we have that none of our competitor in the networking space can match today, that's very key." data-reactid="111">So from my point of view, I believe our differentiation will be partly around convergence, as a result of that converged skill that we're absolutely working on within HP is an knowledge that we have that none of our competitor in the networking area can healthy these days, it really is very key.
HP offers. So we have a really, really strong differentiation with the enterprise group and our software group. And even if you think about it, it could go all the way down to our devices list and end-to-end concept with our ElitePad as an example are using SDN for network security in a BYOD solution. There is a lot of capabilities here that I think differentiate us very strongly." data-reactid="112">And our SDN ability, in case you think about it, may well be prolonged tremendously throughout loads of distinctive gadgets and know-how in the architecture of the infrastructure. It might also healthy into other orchestration capabilities that HP presents. So we now have a very, in fact powerful differentiation with the commercial enterprise group and our application community. And although you consider about it, it may go all of the means down to our devices checklist and conclusion-to-conclusion conception with our ElitePad as an example are using SDN for network protection in a BYOD answer. there is lots of capabilities right here that I think differentiate us very strongly.
Brian Marshall - ISI group
and you outlined previous for your slide presentation that the deployment of SDN may still be business-vast by 2015, is that variety of the timeframe by which you could predict lots of disconverged infrastructure tackle a ramp-up as smartly. I imply, is this all going to turn up at once or can you layer in distinctive items to the puzzle? and then, as we're able to go along with SDN, we can simply flip the change and switch it on or do we future-proof, if you will?
I do think it's a migration. I believe that people will utilize SDN in distinct constituents of their network for different functions, for a length of time. I feel they will use SDN to migrate to SDN, agree with it or not, because it's a handle mechanism, appropriate. so that you can manage certain components of your network with it and you can in fact transition different ingredients of your community using it as a manage aircraft.
So I do believe it be going to be a transition. The business, rightfully so wants to be sure that whatever solution they put in the infrastructure will work and should no longer cause them downtime, I absolutely respect that. And so we will offer them different types of capabilities that they could take knowledge of SDN devoid of feeling like they may be worried about their usual infrastructure. it truly is our plan.
Brian Marshall - ISI community
I think it ultimately, I suggest, what we see, being adopted by using the market is, how will we shop charges? How will we reduce CapEx and OpEx?
it is going to.
Brian Marshall - ISI neighborhood
and that i think if you seem on the applications; many people discuss SDN as in reality enabling the introduction of thousands of functions. however when I discuss with people within the industry, what I hear is that that doubtless four or 5 community virtualization, network tapping, protection, four through 7 services in administration. Do you consider that the lion share of the market; we estimate this could be a $three billion market by using 2016, I suppose your slide pointed out $2 billion through 2015. I consider will these four or five main functions signify the lion share of that market?
possibly, however additionally I form of have to say I have no idea, because clients could be in a position to utilize APIs to do what they desire with it, if they select too. And so I believe we'll be shocked with the aid of people who create distinct applications for the network that we haven't thought of these days. and i think there are lots of chances. and i feel around the layer 4 via 7, there is some pleasing issues so that you can try this we definitely do not do even nowadays, appropriate.
We do a great deal with our business applications that are universal, however there is loads of new applications that individuals are crating within the mobility house that might have an have an effect on on that too. So I bet my place is I feel there will be some commonplace ones that everybody are looking to focal point on and that i get it. but I think there should be also others that we just do not know about yet today.
Brian Marshall - ISI community
can you talk via a bit bit about the items of VAN, the virtual utility networks strategy? Can VAN eventually integrate with different cloud and virtualization structures going ahead?
virtual application Networks is our management thought for functions within the community. So it works along with SDN and the SDN controller to definitely provide. So the SDN controller specializes in services within the infrastructure. The VAN application specializes in management of the infrastructure. and you'll marry those two beautifully, and so we make the most of virtual software community technologies within our intelligent management middle to do lots of the automation that we do nowadays even with out SDN.
so you can use it to actually cable up a change, play it into an Ethernet port and the clever management center the use of virtual application networks, will go in, will locate that gadget, will configure that gadget and truly have you be capable of utilize it as a pool of components for your network itself. So it's an automation tool even today. And it's used very with no trouble to manage the networking environment after which we will couple it with our SDN capabilities, so one can control the functions.
Brian Marshall - ISI neighborhood
Are there any questions from the dial-in queue? if you are pulling that maybe i could simply proceed. if you think about you outlined the way you're going to sort of mix the VAN and the SDN community utility application opportunities going ahead. are you able to talk a bit bit greater? I imply, are you able to birth to present extra form 4 through 7 capabilities long term? And in that case how do you consider in regards to the use of home equipment in that variety of market? I imply do you feel finally that many of the four via 7 implementations going forward will really be from the application point of view or do you believe those appliances will be required?
neatly, I think once more back to the migration and it will take time. I consider that individuals will migrate to different implementations of 4 via 7 services. So in some situations, they'll make the most of the network and SDN and in one more circumstances they may use instruments themselves. because back to that there are definite types of network performances that be improved, you might be able to use a tool in certain situations. however for instance, you could installation Microsoft Lync across a complete infrastructure using SDN.
which you could installation distinct types of company functions which are very delicate to community performance moderate alternate for example the use of SDN. and also you may additionally make the most of these layer 4 through 7 capabilities that you really construct into the controller, in order that the network is aware of, k, here's an trade packet it really is going across, a MAPI packet that requires certain services of the network, therefore the network will exchange to be in a position to guide MAPI, It is very chatty.
So I feel that there will be a lot of diverse kinds of ideas to assist distinct functions on the network. And in some situations that should be really dissolved into the fabric itself the use of SDN and in some instances you may additionally choose an equipment as smartly for that goal.
Brian Marshall - ISI group
Operator, are there any questions from the dial-in.
currently we don't have any questions.
Brian Marshall - ISI community
ok, i could take one from the webcast category-in. Bethany, considering you debunk the end of hardware innovations fantasy in the presentation. What are your views on switching margins within the SDN paradigm?
The margins are in keeping with price. They aren't in line with like how a lot a connector fees. And even though you examine appliances nowadays and i'll offer you a fine instance of Blue Coat changed into an equipment. We used truly an business-based motherboard. I mean, there wasn't as loads of know-how within the motherboard, but we bought the equipment at astonishing gross margin. So I feel margins are regarding value.
And in case you build powerful value in the equipment itself that offers enhancement to the network efficiency, I think you are going to nevertheless see respectable margin probability in gadgets. And additionally back to that idea of implementing OpenFlow into a device, there are lot of issues which you can do in an ASIC to enhance OpenFlow and OpenFlow understandings. So this goes back to that intelligent equals' margin. And my opinion is that the clever can nonetheless advantage the contraptions themselves as neatly as the control plane software that you're using.
Brian Marshall - ISI community
HP obviously offers with respect to ArcSight and others, but at the end of the, is this going to be additive to the HP Networking opportunity or will it be some sort of substitution for something else in the portfolio. Can you talk a little bit sort of puts and takes there?" data-reactid="148">I suppose we now have time for an additional query. We're arising on forty five minutes right here, however I consider it comes lower back to, are there any competencies cannibalistic effects going ahead? I suggest, in case you feel concerning the Sentinel security application, I consider you outlined it in fact TippingPoint, and there is going to be some other protection tie-ins, as that I suppose HP without doubt presents with appreciate to ArcSight and others, however at the end of the, is this going to be additive to the HP Networking possibility or will or not it's some sort of substitution for something else within the portfolio. are you able to speak a bit bit form of places and takes there?
neatly, I suppose that our safety corporation is fitting further and further software oriented, I mean, it is been there stance Arc don't wish to talk about. And dissolving technologies into the switching textile itself, no matter if its safety or no matter if it be one more software in reality is terribly advantageous and you can nonetheless profit again to the cost equals margin, that you could nonetheless gain loads of earnings from the utility utility itself, correct. And the fact that it occurs to grow to be dwelling within the switching cloth, first, brings benefit to the client, but also makes the network a whole lot more simple.
So there could be capabilities that will become being embedded within the switching cloth using utility-described networking. and that i feel that the mixture of utility capabilities and intelligence in that SDN controller combined with the fabric and what that you can do to affect the textile the usage of it, can be of value to shoppers.
So it will affect to a few degree, some hardware within the network that are appliance-based, I feel. but I consider it's additionally to the advantage of the client, and actually do not feel it will harm the vendor, as a result of again if the supplier is bringing intelligence as their value, if it happens to be in utility, it is completely first-class.
Brian Marshall - ISI community
possibly one last question from the webcast, or not it's a captivating one. How does the applicability of SDN trade based on the measurement of the customer?
So I bet the question is might or not it's relevant to smaller organizations, here is what I consider the element is there. I feel that initially it has greater value for the bigger commercial enterprise, because the enterprise has much more complexity. but you could additionally really, in case you idea about it you might maybe use SDN as a provider provider, offering features to a small-medium company most likely, since you may assist them control their network efficiency for diverse functions like cloud applications they're deploying. that is very possible. but I do feel at first and perhaps over a reasonable period of time, the greater commercial enterprise, it will deliver them more skills than a small-medium company.
Brian Marshall - ISI group
HP Networking, and Nitesh Sharan from HP, IR. Thanks guys. And as always, it's back to work." data-reactid="158">With that i'd want to thank you very a great deal for taking the time these days. It become super chat with Bethany Mayer, the Senior vice chairman and standard supervisor of HP Networking, and Nitesh Sharan from HP, IR. Thanks guys. And as at all times, it's again to work.
thanks. This concludes your convention. You may additionally now disconnect.
extra From looking for Alpha
The $38 billion networking market is about to heat up.
Hewlett-Packard had best 8.three p.c of networking-device market share in 2014, smartly behind the market leader, Cisco, which dominated forty nine.three % of the market, according to Gartner. In March, HP bought Aruba Networks for roughly $2.7 billion with the intention to shut the gap. even though Aruba most effective makes up 1.7 % of market share, Aruba has been on commonplace transforming into 30 % yearly for the previous 5 years and should be key to HP Networking.
there is lots of market share that we can gain, noted Meg Whitman, CEO of Hewlett-Packard, to Bloomberg in an interview. We re a No. 2 player. big change between us and No. 1—I suppose we ve bought a really tremendous portfolio, and we re heading appropriate to where the market is moving, which is wired and instant.
New application will allow valued clientele to control their whole community with a single app as an alternative of distinct tools, providing programs of products that will work smartly together. HP will also be revamping its income body of workers. previous this month, HP and Arista Networks spoke of they would partner to compete with Cisco s records-middle products.
Bloomberg aspects out that the hassle to combat Cisco begun under Whitman s predecessor Mark Hurd, who spent greater than $2 billion on networking providers such as 3Com and Colubris Networks. but HP s networking income have increased by means of below 10 p.c over four years.
because the clear market leader, we now have delivered unified wired, wireless and cloud-managed systems to our valued clientele for years and will continue to achieve this, talked about John Choi, a spokesman for Cisco, to Bloomberg.
photograph: The Hewlett-Packard sign up entrance of the enterprise s Palo Alto campus. (Kirstina Sangsahachart/daily news)
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HP2-Z33 Certification Brain Dumps Source : HP Unified Wired-Wireless Networks and BYOD
Test Code : HP2-Z33
Test Name : HP Unified Wired-Wireless Networks and BYOD
Vendor Name : HP
Q&A : 65 Real Test Questions/Answers
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LPI [21 Certification Exam(s) ]
LSI [3 Certification Exam(s) ]
Magento [3 Certification Exam(s) ]
Maintenance [2 Certification Exam(s) ]
McAfee [8 Certification Exam(s) ]
McData [3 Certification Exam(s) ]
Medical [25 Certification Exam(s) ]
Microsoft [228 Certification Exam(s) ]
Mile2 [2 Certification Exam(s) ]
Military [1 Certification Exam(s) ]
Motorola [7 Certification Exam(s) ]
mySQL [4 Certification Exam(s) ]
Network-General [12 Certification Exam(s) ]
NetworkAppliance [35 Certification Exam(s) ]
NI [1 Certification Exam(s) ]
Nokia [2 Certification Exam(s) ]
Nortel [130 Certification Exam(s) ]
Novell [37 Certification Exam(s) ]
OMG [9 Certification Exam(s) ]
Oracle [232 Certification Exam(s) ]
P&C [1 Certification Exam(s) ]
Palo-Alto [3 Certification Exam(s) ]
PARCC [1 Certification Exam(s) ]
PayPal [1 Certification Exam(s) ]
Pegasystems [10 Certification Exam(s) ]
PEOPLECERT [4 Certification Exam(s) ]
PMI [15 Certification Exam(s) ]
Polycom [2 Certification Exam(s) ]
PostgreSQL-CE [1 Certification Exam(s) ]
Prince2 [6 Certification Exam(s) ]
PRMIA [1 Certification Exam(s) ]
PTCB [2 Certification Exam(s) ]
QAI [1 Certification Exam(s) ]
QlikView [1 Certification Exam(s) ]
Quality-Assurance [7 Certification Exam(s) ]
RACC [1 Certification Exam(s) ]
Real-Estate [1 Certification Exam(s) ]
RedHat [8 Certification Exam(s) ]
RES [5 Certification Exam(s) ]
Riverbed [8 Certification Exam(s) ]
RSA [13 Certification Exam(s) ]
Sair [8 Certification Exam(s) ]
Salesforce [3 Certification Exam(s) ]
SANS [1 Certification Exam(s) ]
SAP [78 Certification Exam(s) ]
SASInstitute [15 Certification Exam(s) ]
SAT [1 Certification Exam(s) ]
SCO [9 Certification Exam(s) ]
SCP [6 Certification Exam(s) ]
SDI [3 Certification Exam(s) ]
See-Beyond [1 Certification Exam(s) ]
Siemens [1 Certification Exam(s) ]
Snia [6 Certification Exam(s) ]
SOA [15 Certification Exam(s) ]
Social-Work-Board [1 Certification Exam(s) ]
SUN [63 Certification Exam(s) ]
SUSE [1 Certification Exam(s) ]
Sybase [17 Certification Exam(s) ]
Symantec [132 Certification Exam(s) ]
Teacher-Certification [3 Certification Exam(s) ]
The-Open-Group [8 Certification Exam(s) ]
TIA [3 Certification Exam(s) ]
Tibco [18 Certification Exam(s) ]
Trend [1 Certification Exam(s) ]
TruSecure [1 Certification Exam(s) ]
USMLE [1 Certification Exam(s) ]
VCE [5 Certification Exam(s) ]
Veeam [2 Certification Exam(s) ]
Veritas [25 Certification Exam(s) ]
Vmware [51 Certification Exam(s) ]
Wonderlic [1 Certification Exam(s) ]
XML-Master [3 Certification Exam(s) ]
Zend [5 Certification Exam(s) ]