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Talking Meta Silicon, Oracle – Cerner, CES, HPE Barclays Win, Adobe & Planet Earnings – The Six Five Webcast
by Daniel Newman | December 23, 2021

On this episode of The Six Five Webcast hosts Patrick Moorhead and Daniel Newman discuss the tech news stories that made headlines this week. The six handpicked topics for this week are:

  1. Meta Diversifies Its Approach to Silicon
  2. Oracle Acquiring Cerner?
  3. What to Expect from CES
  4. Latest Earnings Report from Adobe
  5. Planet Earnings Report
  6. Barclays Selects HPE GreenLake for Private Cloud Platform

For a deeper diver into each topic, please click on the links above. Be sure to subscribe to The Six Five Webcast so you never miss an episode.

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Disclaimer: The Six Five Webcast is for information and entertainment purposes only. Over the course of this webcast, we may talk about companies that are publicly traded and we may even reference that fact and their equity share price, but please do not take anything that we say as a recommendation about what you should do with your investment dollars. We are not investment advisors and we do not ask that you treat us as such.

Transcript:

Daniel Newman: Hey, everybody. Welcome to another episode of The Six Five Podcast. I’m your host, Daniel Newman, and joined by my always esteemed co-host in crime, Mr. Patrick Moorhead. Good morning. It’s Friday. We’re a little early. We’re starting early. We’ve got to go fast. We’ve got a long day, a really great advisory that we’re both in. However, we never want to miss a chance to get our thoughts on the record. Mr. Moorhead, how are you?

Patrick Moorhead: I’m doing great. Doing what I love to do on a Friday morning, which is doing a pod with my bestie, Daniel Newman, and looking forward to hopefully getting out onto the slopes by Saturday if a storm doesn’t keep me here in Austin.

Daniel Newman: Yeah, that’s great, buddy. I’m glad you’re going to get a little time away. I’m planning to take two days off for the holiday. I’m going to take the 24th and the 25th. I’m also considering taking off January 1st, but we’ll see if the world aligns so that I can have that kind of pleasure, but no, it’s an exciting day. It’s Friday morning. We love this. Last week, we had to go on a Saturday.

You can hear I’m a little hoarse. I’m not sick, but I lost my voice. I was in Raleigh this week. I did a bunch of videotaping, recording, a bunch of talking, and somehow woke up, I’m a little quiet, but I can still smell, so I think the world is okay right now for me looking at the markets, watching my portfolio get set on fire on the daily. I’m still smiling because, you know what? I’m up, I’m breathing, and the world is good.

There’s so much to talk about today, pal. We’ve got some great topics. We’re talking about Meta, Oracle, CES, which is going to come right around the corner. By the way, this is our last episode for this year, so we’re going to talk a little bit about what’s going to come up here in January. I think it’s our last episode. I think, maybe not. I don’t know. We’ll see. Adobe earnings, Planet earnings, and then a big win for HPE, but before we kick off, going to do the quick disclaimers.

This show is for information and entertainment purposes only, and while we will be talking about publicly traded companies, please do not take anything Mr. Moorhead or I say as investment advice. Without further ado, Patrick, you wrote an awesome article this week on Meta, Facebook, Meta, Facebook, getting more and more into first-party silicon. Let’s start there.

Patrick Moorhead: Yeah, it’d be great. Meta’s silicon strategy has been a mystery forever and not just because they changed their name to Meta, but before that Facebook and Instagram, and I had really… This just spell in my lap, the opportunity to talk with Jason Taylor, who runs all of infrastructure for Meta. As running infrastructure, as you and I have talked about, has a lot to do with having the right silicon and that silicon can be a combination of first-party silicon that you do yourself. Some can be co-designed with somebody else, but most of that silicon are from vendors like Marvell, Intel, NVIDIA, AMD, Qualcomm, folks like that.

The fact that I got kind of first dibs on this was really made my day, and really the driver for this is that Meta made a key hire, Dr. Alexis Bjorlin, and she was at Broadcom most recently, but she had spent many years at Intel, so a real heavy hitter. The big question is, why do they need to bring a heavy hitter to Meta to do infrastructure? Well, it’s pretty simple. Well, first of all, their infrastructure is huge, and in my conversation with Jason Taylor, he really gave kudos to the current vendors in relation to machine learning training with regards to like computer vision, text-to-speech, natural language translation.

He really seems to be running into a brick wall on what they really, I don’t know, make their business on, which is recommendation engines. We see it on Netflix. We see it on Amazon. You click this, tee up this, you buy this, we think you might like this. That’s some pretty hardcore type of training that goes into it and, quite frankly, Jason said, “Looking at the roadmaps out, there’s not enough bandwidth here. We don’t have enough network bandwidth. We don’t have enough memory bandwidth.”

Dr. Bjorlin is being brought in to not only manage and work with companies that Jason was very complimentary of, the Intels, AMDs, the Marvells, et cetera, but to potentially create their own in-house chip for this. The only inkling publicly that Facebook had ever given is they did do their own in-house transcoding chip for video. You look at the amount of hours that you spend or kids spend watching videos on Instagram as an example. It just goes to show, Daniel, it reinforces that silicon is eating the world. We were talking about it a decade ago.

People were kind of laughing at us, but I think it’s really safe to say that if you have special things that you have to do that can’t be provided by the merchant silicon people and you have the capability, you might have to create or partner to do your own silicon. What I mean by partnering, AMD and Marvell both have custom capabilities that they do, so the hyperscaler or the console game maker like a Microsoft and Sony don’t have to do it on their own.

Daniel Newman: Yeah, you bring up a great point, and this is one of more and more stories I think that’s going to come out of giant tech where they’re going to be looking at their own designs. I think you made a great point yesterday. Apple had some dues about their expanded silicon capabilities and you point out the difference between design and production. I think that’s an important nuance for the market to understand, but the ability because of arm instruction sets now to be a designer of your silicon and then work with companies to produce it on your behalf, is it increasingly becoming impossible?

We’re seeing it being done with Apple. We’re seeing it being done with AWS. You talk about recommender engines for Facebook, I mean, look at Alibaba. They’ve been doing this for a while. They’ve been building out for this exact purpose. When you’re shopping on Amazon, when you’re shopping on Alibaba, when you’re surfing on Facebook or on different social networks, the ability to create recommender engines that meet all of your needs specific to your platform are going to become increasingly important.

Of course, you have frameworks like Merlin from NVIDIA that do meet a lot of these requirements and can help certain organizations to achieve their goals for recommender engines. Some companies say, “You know, that’s great, that’s good. That’s a good starting point, but we want something that’s even more specific to what we’re trying to do in our platform,” And the world has increasingly become able to deliver that.

These companies that have a lot of money, a lot of resources, they can hire the right people like we’ve seen with AWS, like we’ve seen with Alibaba, like we’re seeing with Microsoft, they’re going to be able to do it. That might end up being Netflix and that might end up being Starbucks in the future. “Might say, we want to build an ASIC that’s just for people who drink our coffee and want a very specific experience on our app,” but they might use something that’s off the shelf. That’s to be seen.

I have a great article that was really thoughtful. There’s a lot going on here. The number of entrants into silicon is going to continue to change and application-specific silicon, programmable silicon is going to continue to change the landscape of competition. It’s going to put more pressure on your traditional players, but it’s also going to… All players are going to have the opportunity to grow as the overall demand for chips continues to grow. It’s not a zero-sum game. It’s an additive opportunity and we’re going to see more players enter, and especially these players like Facebook, they’re not going to be selling what they’re going to design to other people, but they will in itself become significant players because of the amount of market that they impact.

Let’s go on to the next thing, Pat. Oracle, some big news broke about their potentially buying Cerner. Both of us were quoted in a number of articles about this. You know, look, Oracle is absolutely a company on fire. In our last episode, we talked about their earnings. The stock has been one of the most robust as tech as been absolutely slaughtered over the last month and a half. Oracle is going up and that’s because they’re somewhere between a growth and an exciting tech play, but they’re also a value play. They have a dividend. They do a lot of buybacks. They have a robust recurring revenue. They make profit. Their growth is fairly stable. They’re old, but they’re also new.

The idea of them entering more deeply into healthcare with a $30 billion acquisition of Cerner is a pretty interesting potential play for this company. This is a cited in The Wall Street Journal that they are far along in this potential deal at 30 billion. This would be the largest deal that the company has done. It would usurp the $10 billion PeopleSoft $9 billion NetSuite deal, and it would also be at a fairly significant premium somewhere around 25 to 30% over the $23 billion current valuation.

Now, Cerner’s an interesting company. It’s currently led by David Feinberg. David Feinberg came over as Google Cloud’s Healthcare Chief, so he was really the one that was building out that industry. If you know about Google, the company’s been very focused on vertically-focused, industry-focused cloud solutions, healthcare being one of the. As I see it, the healthcare industry is highly fragmented. You’ve got technologies like Cerner, like Epic that have long been noncompatible in many ways with centralized cloud. We all know the need for our healthcare technologies to be more integrated, to work more like every other application on the planet, but there’s tons of complexity with that with data sovereignty, privacy, regulatory, HIPAA.

The idea of having a company like Oracle with its database capabilities but also its cloud infrastructure capabilities and growing SaaS capabilities to possibly be able to build something out that could be more robust and usable in the healthcare space seems like a pretty attractive way for the company to spend money, add revenue, and become an absolute pillar of a major industry that’s got growth side in any economic situation. As I see it, a pretty exciting opportunity, Pat. I’ll let you fill in the gaps.

Patrick Moorhead: Yeah. The way that I’d like… My first reaction was, first off, Oracle’s done an incredible job on its horizontal enterprise SaaS applications, and whether that’s Fusion or NetSuite, is really focused on a certain area like human resources, marketing, sales, operations, and finance. That’s the way that they look at it. Sure, there are some tailor-made solutions for some verticals like Oracle really leans into the carrier market, folks like Verizon, people like that, but this to me is very vertical. You connect their horizontal capabilities with Fusion and NetSuite to the vertical capabilities that a Cerner would provide, it gets really interesting. I’m wondering if this we will see Oracle gobble up vertical key folks, key enablers?

I was on the board for 10 years and I was Chair for five years in Austin’s really revered hospital, St. David’s Medical Center downtown. I will tell you that this type of technology is the backbone of what they do. I mean, it’s pretty much all wrapped around that in a very similar way that a manufacturer might be wrapped around an SAP or an Oracle, a database, something like that. I’m wondering if we’re going to see Oracle, which by the way, saw their market cap fricking explode when they made their big cloud announcement, if we’ll see more, but man, Oracle’s on a roll.

Daniel Newman: By the way, did you see the announcement yesterday about Xerox? Xerox’s not exactly the coolest. sexiest brand anymore, but I think they kind of committed to being all-in on Oracle as well. Not a bad win. If you’re over 60, you’re going to really appreciate that deal, but in all serious, just a lot of people, like I said, kind of shrugged the company off, but it’s been a really great year overall for Oracle.

Let’s keep moving, Pat, and CES expectations. Every once in a while you and I, instead of doing the news, we get to prognosticate a little bit. We will both be there. We’ll be bringing The Six Five crew. We’re going to be on the floor doing a bunch of interviews together, but we’re also going to be roaming around, checking out what’s new. Quick take, Pat, what’s your big expectations?

Patrick Moorhead: Yeah, so this could go a little long, so I’m going to blow through this. First of all, I always like to categorize CES into types of shows. There’s the visionary shows where we’re going to see something new like a new category, like a self-driving car or 8K TV or something like that. Then, there’s what I call delivery shows, which is actually delivering on the promises you made from prior shows. I fully believe this is going to be a delivery show, first of all, in semiconductors, bigger, better, faster chips for PCs and cars. Intel, AMD, NVIDIA, Qualcomm, and Microsoft are going to be there in full force. PC announcements, I think, will focus on cloud collaboration and experiences.

Gosh, Dell couldn’t help themselves. They already made some announcements, very thought-provoking ones, that a modular concept called Luna that you can take apart has a really massive track pad. In fact, it’s the entire base of the system itself and it’s easy to take apart for as close as you can get to green. From a manufacturing materials point of view, it’s also one of the greenest if not the greenest devices out there.

The other thing was this webcam that is wireless that you stick to your display. You can put it where you are actually looking on your PC. In automotive, you’re going to see more self-driving capabilities, some cool and sexy in-dash. There was a cool BMW. BMW came out and talked a little bit out front about this. Essentially, this wall of displays inside of their future cars. Big GM keynote. Gosh, Waymo’s going to be on the floor. Daimler, Hyundai, GM, and TuSimple will also be on the floor.

Everything will be about the Metaverse, Daniel. Even if it wasn’t about the metaverse three months ago, that’s one of the new hot topics. Surprisingly enough, Meta will be on the floor at CES and I don’t remember ever Meta or Facebook being on the floor there. I’m definitely going to check that out. For the smartphone, what I want to see is I want to see more interoperable matter device. Matter is a compatibility standard so Apple and Google and Amazon can talk with each other, which I just love.

From a TV point of view, we’re going to see more 8K, we’re going to see OLED all over the place and we’ll probably see Sony’s quantum dot OLED. I don’t know why that combination is good. I have a quantum dot behind me. It is about as hot and gives me a sunburn on my back, but it’ll probably have some incredible visuals. Smartphones, we might see a smartphone or two, but people are going to be holding those for Mobile World Congress. Finally, T-Mobile and Verizon have some big announcements it looks like they’re going to make, but I couldn’t tell you even if I knew about that.

Daniel Newman: All right, I think it’s going to be all about technology. All right. Let’s move into the next topic. Now, I know in all seriousness, Pat, you did cover it really well. There’s too many things to possibly even try to cram into a short segment here. What I’m going to be really zeroing in on is going to be 8S, anything that’s self-driving automotive. CES is a car show. It’s an auto show. Don’t for a minute think it’s not.

I’m going to be enamored by really large screens, but then I’m going to forget about them as quickly as I see them. I’m going to lost in the lights of Las Vegas and frustrated by the endless amounts of traffic getting from end to end of the strip. I’m going to be triple, quadruple vaxxed by then, so hoping that a lot of people decide not to go because I’m hoping that the streets aren’t as busy and we do have more ability to get around and walk around.

I think, Pat, biggest thing for me is sort of seeing how a mega event returns. You kind of talked about the technological themes. We don’t need to be at these events to be updated on what’s new. We’ve proven that now. We’ve actually proven that very much so that we can be actually more productive on a longer tail of being not on-site. Having said that, very excited to get back on-site. I’m going to do CES, going to do NRF, going to do MWC unless someone stops me, Pat, but the things you’re paying attention to are absolutely right.

8S is my big thing, and then, of course, the Metaverse. I want to know all about all things crypto, Web3, non-fungibles. I want to know about how we’re going to be using data to create immersive experiences that blend physical and virtual and digital realities in a way that are going to be meaningful, valuable, and increase humanity because most of us suck now because we stare at our damn phones all day and we don’t actually look at each other anymore. Can tech actually bring back the humanity? That’s the opportunity, the Metaverse. It’s not about getting deeper. It’s about being more connected, more human, let’s go. All right, Pat.

Patrick Moorhead: You’re deep, you’re deep. It’s Friday morning, baby. This is about as deep as I’ve seen you in a long time.

Daniel Newman: Yeah. I’m feeling deep right now. I’m feeling thoughtful. It’s I’m in a reflection point, dude. I miss Thanksgiving. It’s time to go. Let’s talk a little bit, Pat. We do the earnings jaunts here from time to time and let’s talk a little bit about what happened with Adobe. There is a lot that we could say. Yesterday wasn’t only Adobe’s earnings day, but Adobe was also their financial analyst day. I had the chance to tune in to multiple hours. I got to listen to the remarks of the company’s top executives, including CEO Shantanu Narayen. I hope I got that right. I always like to double check, but Shantanu did a great job presenting the company. It was just a terrible day for the market, so it’s really hard to tell.

This company saw it stocks sold off 10%, down over 60 points, well down over its November highs, but you look at what happened in the overall tech space yesterday and then you look at the sell-off and everyone’s like, “Oh, Adobe got sold off because of weak guidance. Adobe got sold off because slowing digital marketing.” How about Adobe got sold off because the entire market for high tech is being sold off right now in a really significant way?

Having said that, though, I had the chance to dig deep into the company and the business results were bright. The company saw record revenue in Q4, record revenue for the year, 20% growth in the quarter, 23% revenue growth in the year. Huge recurring revenue growth all of its businesses. It’s got three major segments. It’s got its creative cloud, it’s document cloud, it’s experience cloud. All three jumped. Creative at 19, document 29, and experience at 23. This is a company that’s got a $205 billion TAM addressable market by 2024 and in its three different segments, it is a leader in all of them.

In creative cloud, the company is… When it comes to creating things like NFTs, I mean, it’s absolutely at the front end of this trend. We were just talking about how CES and Metaverse and NFTs, well, where do people create this kind of art? It’s in Adobe and Adobe has already made really important partnerships with companies like Rarible where you can actually mint an NFT and make it secure and actually be able to claim appropriate ownership. We talk about digital transformation as a broad secular trend. Well, all joking as side, Pat, you and I both know this as business owners, there’s still a lot of paper floating out there. The document cloud is unquestionably the most renown cloud on the planet for taking physical documents and digitalizing them.

The PDF is one of the most utilized sources of unstructured data on the planet and it’s also the way we tend to share contracts and documents and formalize relationships and that’s Adobe. Then, of course, the biggest thing in about half the company’s TAM is in its experience cloud. It’s an analytics company. It’s a customer data platform company and that’s $110 billion TAM for the company by 2024 and they’re seeing significant growth there.

On the back of this all, too, it’s a heavy recurring revenue company. They’ve got big growth in their recurring revenue across all of their clouds. They’ve moved from perpetual licensing to recurring, so they’re in all the right areas. You know their guidance, Pat, they got hit for this pretty hard, but they’re targeting something almost to 20% growth next year. They’re talking about the fact that they are coming. About half their revenue is done overseas, so they’re dealing with FX and currency exchange and some issues with pressures on global currencies that could impact the company. They’re going to have to adjust for that.

We’re dealing with red hot inflation. We’re dealing with interest rate potentially rising. We’re dealing with a series of COVID that seems to just never quit. Then, you add all of that together with the fact that we’re get this mega spending bill and tax impact and you start to wonder, will tech get hit? Accenture came out yesterday with numbers and they believe that enterprise spending on digital transformation is only going to continue to grow in 2022 and Adobe is really at the core of this.

While I never love to see guidance being more humble than discreet, I like companies being ambitious, they were barely less than what was expected. The sell-off wasn’t about really anything Adobe did. I think the sell-off is just an overall negative sentiment towards tech and a uncertainty around what’s going to happen with these macroeconomic issues. Adobe in the long run may have been a loser yesterday, but they’re a winner in the long run.

Patrick Moorhead: That’s so good. I use Adobe products every day and I think I probably have for the last 20-plus-plus years. Heck, I just wish my Adobe products weren’t the products that are screw up me rebooting and constantly asking me to sign in. I think the story of Adobe as closer to Microsoft than probably any other company in that they were a software company, they had to make a transition so that they didn’t get caught up and spit out in the Web 2.0 cloud transition. Yeah, I think they got unfairly beaten up in a horrible week on Wall Street.

As long as they keep driving to the cloud and driving to SaaS, this company is going to be okay. It would be interesting to see, you know…. An interesting tie-up to me would be Box and Adobe. I don’t know, I’m sure that’s been looked at before. Adobe probably thinks, “Hey, I’m just going to build potentially Box’s capability.” You now see Box with signature capabilities. They’re building that out heavily, but anyways, interesting space, for sure.

Daniel Newman: All right. Well, let’s keep moving on earnings, Pat. This is one we’re going to kind of do a loop-back because last week you talked a lot about Planet and now the company’s come out with earnings. Another company that’s really seen the market shape, and this is part of that overall SPAC or at least the DE-SPAC companies that are in high-growth, high-tech, exciting areas. What’s up with planet?

Patrick Moorhead: Yeah, so they delivered record revenue of around $32 million, reaffirmed fiscal year 2022, increased customers by 32%, and they were rewarded with this. Their stock went down significantly over the past few days, but Daniel, we want to talk about somebody getting shellacked out of unfair. This might take the winner. I mean, they hit the high end of their guidance of the prior year. All four research analysts covering the company have 15, $16 price targets. and I just showed $6.21. There was a big contract that went away that CFO Ashley Johnson characterized as a, “unforeseeable government regime change.”

She didn’t say Afghanistan, but she didn’t have to. I mean, the CIA didn’t even predict that this would happen. I guess they expect Planet to be a little bit smarter than the CIA, which by the way, they weren’t. Nobody should lose sight. This company is exceptionally well-capitalized. $590 million of gross proceeds from the DMY Technology IPO. They just closed acquisition of VanderSat, which is a cloud analytics company based in Holland and it’s a company on the move. I don’t make stock picks on this show because it’s for educational and information purposes only, but I think the anger came out on this primarily because it was a brand new growth company.

Daniel Newman: Yeah. Pat, I think the market conditions right now make it almost impossible to provide real assessment or analysis of the situation. We’ve all seen sort of the penalty box situation with SPACs as a whole. The market’s been less than forgiving, and then on top of that, you add in a situation where companies that are not yet profitable or that are early revenue days are just not being valued very highly because of the long-term growth that it’s going to take to get the returns to people.

If you believe in space, if you believe in the business and the concept, this could be a great opportunity to swoop in, but again, not investment advice. Just to say hey, sometimes when things fall this far, this goes back to that old Warren buffet adage of, you know, “When everybody’s greedy be weary and everybody’s weary be greedy.” We’re in that situation right now where people are weary, got the gall, and you believe in the, in the business and you believe in the technologies. This could be a very interesting time.

All right, let’s keep moving. We need to go fast. We promised we were going to be almost on time, Pat, and we have a chance of actually doing it this time. This is crazy. We’re almost, almost on time. We haven’t spoken about HP in a bit, but HPE, one of the absolute leaders in consumption-based on-prem or private cloud, made a really big announcement this week when Barclays selected their HPE GreenLake platform for their private cloud. This is a big one, Pat. This is going to be an opportunity for HPE and GreenLake to host more than a hundred thousand workloads for Barclays in their strategic hubs, which encompasses UK, U.S.A., across Asia.

I want to talk about a philosophical bit here because individual customer wins are always interesting, but the real question and the real thought process that goes through my head here is HPE has been a company… Talk about a company that’s been in the penalty box. As the entire market has gone up, HPE has been somewhat stagnant. Now, CEO Antonio Neri, you and I both have good relationships with Antonio. He’s been on our shows. He’s been on different… We’ve had a lot of interactions.

We talked to him around earnings, been on our pods. He was the first of these big IT infrastructure of ours and vendors, sorry, vendors, to basically come out and say, “You know, we’re going to pivot our business. We are going to go ARR. We’re going to go to cloud. We’re going to go to subscription and we’re going to do it by this time. We’re going to deliver success.”

A few weeks back we covered their earnings. We talked about the amount of growth and at that time, Pat, I said, “Watching GreenLake and watching the growth of their subscription business, the ARR in their GreenLake business, is going to be the key metric that’s going to demark whether or not long term the company is a success. How did they get that number up? THey’re going to get big wins. They’re going to need customers that are currently evaluating different architectures for hybrid and multicloud and making decisions about prem-based workloads and say, “Hey, do we want to work with a AWS? Do we want to work with a Oracle CLoud@Customer? Do we want to work with an Azure Stack? Do we want to work with Dell APEX? Do we want to work with Lenovo TruScale?”

There’s a couple of things going on. One is the overall space for hybrid cloud is growing a lot, so that means all of these companies have the opportunity to grow. The second thing that’s going on is they’re competing fiercely to be able to be the value provider, centralized control plane, workload placement. HPE was one of the first and is the earliest and has one of the most complete hybrid cloud consumption platforms to date. Again, I believe Cisco, I believe Dell, I believe Lenovo will all get better. I do believe the offerings from Google, AWS, Oracle, and Microsoft, of course, are going to become more comprehensive.

Neri was early. Neri had the right track, GreenLake. The entire GreenLake platform is far along and companies like Barclays clearly recognize it, Pat, and so this is a good win. It’s one win. They need many more wins, but the overall GreenLake, their whole Edge-to-cloud concept and platform is doing really well. This is an example of Neri executing to the commitment he’s made several years ago and continues to make today.

Patrick Moorhead: Yeah, so I’m going to get a little bit more granular than your awesome macro take, but this really got my attention. We see customer wins come across our email daily or hourly. Customer takeouts here and things like that. I see so many that sometimes I take most of them just with a grain of salt, but I am going to do a lot more research on this one. Here’s what I know, for this is a substantial win. I want to know… They even gave us an element of size, a hundred thousand workloads. Now, I don’t believe that’s a hundred thousand different applications because I think that is just completely too many. I think it’s likely 100,000 containers or 100,000 VMs. it’s global. It’s across the UK, U.S., and across Asia. It will have… It’s unified, meaning it will scale to the public cloud.

They didn’t say that, but I believe that’s what unified would be. Barclays only pays for the resources they consume with the option to reserve workloads and run them on demand. That is the public cloud promise and it’s one of the biggest of flexibility and I think that is cool. Capacity is available on demand, granular consumption-based pricing for compute memory and storage, public cloud. They even talked about different types of applications, so VDI, SQL databases, Windows server, and Linux. That, by the way, is why I believe that it’s a hundred thousand VMs or containers as opposed to a hundred thousand unique application.

I like the way that they ended the disclosure. GreenLake is at $5.7 billion in total contract value, 900 partners, 1250 enterprise customers across 50 countries across all industry sectors. What I like about the number of customers disclosures, it kind of reminds me of what PEER has done for years is they’ve had this multiyear list and number of customers that the only time you do stuff like that, in my opinion, Daniel, is when you have confidence that that number is going to keep growing and that number will likely be larger than your competitors.

It’s going to be interesting to see because Dell has a little bit of a larger footprint than HPE does because they also do PCs. Whether Dell jumps on the number of customers’ bandwagon with their as-a-service capabilities, but net-net, I think incredible win. I’m doing more research on this one. I want more details I want to know what public clouds they’re connecting it to. I want to know how many different applications are in there. Maybe Barclays will share it. I think it’s going to make a great writeup if I get the data, hint, hint, HPE.

Daniel Newman: Well, we’ll send this video over to them, I’m sure, and we’ll let them look, and note the question, HPE. Yeah, so Pat, look at us, 36 minutes including intro. Not bad. That might be a land speed record, and if you remember, when we started The Six Five, it was all about six topics, five minutes each, 30 minutes, plus a little intro, a little outro, but you and I just have too darn much to say most of the time, but that’s okay. We love our audience. We’re 106 episodes in. Maybe one more this year, maybe not. If you don’t see us again this year, you will see us live on the show floor in Vegas because we, baby, are taking the show on the road. We will be doing these shows live this year, as much as the world allows us to, Pat.

I want to thank everybody in case we don’t see you again in 2021. Thanks for being loyal. Thanks for tuning in. We love our audience here on The Six Five. We will be bringing you more coverage. This show is going nowhere anytime soon. June next year, Six Five Summit. Strap in, tune in. We want you to be there or be a part of it. For this week, for this episode, though, it’s time to say goodbye. Hit that subscribe button. Good feedback to me, bad feedback to Pat. We’ll see you later. Bye-bye, now.

Patrick Moorhead: Take care, everybody.

About the Author

Daniel Newman is the Principal Analyst of Futurum Research and the CEO of Broadsuite Media Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise. Read Full Bio