B2B Tech Talk with Ingram Micro
B2B Tech Talk with Ingram Micro

Episode · 1 week ago

Offering cloud services without the security risks with HPE GreenLake

ABOUT THIS EPISODE

More and more end users want the cloud-like experience of HPE; however, not all workloads can move out into the public cloud space.  

To solve this, HPE has created GreenLake: A solution that offers the flexibility and billing of the cloud while allowing customers to keep their equipment on premises — Providing the physical and virtual security that the end user needs.  

Hosts Devaughn Bittle and Patrick Cash chat with Russell Fenton , Solutions Specialist at Ingram Micro , and Brian Koch , HPE GreenLake Program Manager at Ingram Micro , about: 

- What HPE GreenLake is & how it relates to the SMB market

- The best opportunity for small businesses to jump into the cloud space

- Where technology is going in the next year 

Contact your dedicated account manager for more information. 

To join the discussion, follow us on Twitter @IngramTechSol #B2BTechTalk 

Listen to this episode and more like it by subscribing to B2B Tech Talk on Spotify , Apple Podcasts , or Stitcher. Or, tune in on our website .

You're listening to bb tech talk with Ingram Micro, a place to learn about how to grow your business and stay ahead of technological advances before they become mainstream. In today's episode we're introducing a new business and technology minded series brought to you by Ingram Micros SMB alliance community, called as the gears turn, hosted by two Ingram Micro SNB alliance council leaders, Mr Devon biddle and Mr Patrick Cash, both successful MSP's and both ready to call the business of it as they see it. So, with that said, let's make it happen. Welcome to ask the gears turn. Hey, it's almost five o'clock somewhere, I think, so let's jump in and talk to we're in talk with Brian Cook. He's the HP Green Lake Program Manager and rust off it and a solution specialist with HP. Guys, thanks so much for taking some time out of your day to chat with Devon and I to day. We appreciate the the opportunity. Happy to beer. Great. So, guys, let's jump right in. Today we're going to be discussing HP Green Lake. Can you give us a high level overview? To start with, a what Green Lake is and what that, that offering looks like. Sure, that's that's not a problem at all. So HPE, Green Lakes, is hpe trying to, you will, move into the the cloud market place. Right, if we look at the overall market trends, we're seeing more and more end users wanting that cloud like experience. HPE has has, if you will, in their research and in others that have researched the industry, realized that, you know what, not all workloads can move out into the public cloud space. So HPE has come up with Green Lake which, if we will, offers the flexibility, you know, the billing or the economics that the cloud offers, but still allowing and customers to keep their equipment, you know, on premise. So offering additional benefits when it comes to, you know, being able to control both the physical security in the virtual security of an end users environment, right. So we're trying to, if you will, bring the best of both worlds around. So, Russ, I don't know if you want to maybe add a little more color beyond that. Yeah, no, I think it's important that that everyone understands exactly what it is, that it is non prim solution in the are the other thing is that we're not really competing against the public cloud. That's that's something that we hear a lot from people who maybe don't aren't familiar with the offering. We think that we're competing against the cloud, but really the cloud kind of compliments our solution and we complement the cloud. So, as Brian was mentioning, there's workloads that just can't run in the cloud. I right. So there's things that people like about the cloud, but there's drawbacks. There's things that people like about nonpremis solution, but but there can be some drawbacks. And so HB tried to kind of take the basketball worlds and you know, it's kind of like a Dhci in the sense that you know, you know hyper converged infrastructure came along and people said, wow, this is really simple, but there's there's some inefficiencies here and then, you know, disaggregated hyper converge infrastructure, DHCI, comes out and now it's like wow, okay, so now we can we have the benefits of being able to flip and flop compute and storage as as needed, but we still that same simplicity. That wasn't that was in that that that original hyper converged infrastructure right. And so in this model we're going to have a security and performance of a nonprem solution, but we're going to have the visibility and the experience of cloud. So the clouds not really a location and it's an experience and it's being able to see your entire it environment through one single pane and glass. And that includes that public cloud, because one of the downsides of public clouds and just takes you know, my top secret corporate financials can't really go up there or this data gravity or data latency...

...sensitive application can't run in there. You know, it also has to do with costs, and so we see a lot of partners who've gone to the cloud say our spend got out of control. We thought it was going to be one thing and by the time we got charge all the egress charges and charges for accessing or moving our own data. You know this. This was more expensive than we thought. And so with Green Lake, with our real are metering, you're right in the environment and it brings the value in the sense of you're getting rid of that over and provisioning to free of cash will. But there's also a sense of certainty, of predictability I've got a contract for three, four five years. I know exactly what it's going to cost per unit. I'm even incentivized if I use more right and so we see partners coming to us and instead of kind of wondering if it's the right time for a project, they know it is because they know what it's going to cost. So there's cost control, there's cash full components, there's security and performance of on Prem and it's all wrapped in this cloud like experience. So I think that that's kind of what we want people to understand about what it is. Well, and it, you know, taking some of the complexity out of cloud SMB is always, you know, a little bit slower to adopt sometimes, and so, to your point, where us, there's that data that they want to hold onto, and so there's some apprehension to just going to the clouds sometimes. So let's take that and dig a little deeper and talk for a minute about, you know, kind of how this relates and applies to to the S ANDB market. A lot of our listeners are s and be alliance members, and so, you know, if it's a smaller business, how does Green Lake relate to them? All right, I'll jump in here on that one and kick US off again. So from an SMB status from hpe green like you know, a lot of cases, to your point, folks are thinking that Green Lake is targeted towards the enterprise space, and wholeheartedly I will it meant that. You know what, if we go back seven eight years, that's where HPE was trying to focus right when it came to HPE Green Lake, their program their targets, the big end customers were who they were going after. But now, as HPE Green Lake has evolved, we've actually seen HPE make movement to get the the solution sets that they're bringing into the marketplace smaller and smaller, more appropriate for the SMB type of, you know, end customer. I would say, you know, if we're looking at sizing right now from a Green Lake standpoint, if we've got an end customer that has maybe forty to fifty seats, we've got solutions out there onto the the HPE Green Lake umbrella that are available that once again allow that that partner and that end customer to take advantage of these these cloud economics right, get rid of the the overprovisioning, get rid of that large upfront purchase order where, you know, an end customer might put a little bit of, should we say, constraint in their budgets. Right, they lose a little agility there if they're they're putting a lot of cash out up front. In turn it into something that that looks more like a utility built, something that's a lot more manageable on a monthly basis and something that better aligns to, if you will, their revenue. Right where we're doing a better job now of aligning that that it spend with the revenue that the business can recognize. So as productivity goes up, your it spend is going to go right along with it for the ride, right, so I don't want to scare anybody off. In the same sense, right, there's a visibility to what that spend is going to be, there's there's going to be predictability with the tools that HPE's introduced, and there's going to be stability in the form of, you know, having pricing locked in for the term of this contract. So surprises aren't really a big thing in green like right,...

...we've got a lot of predictability that we're building into this model here. So I'll flip it over Russ. As there any additional color you want to provide at this on this particular topic? Yeah, I would say that just the you know, the emphasis is really that it's a different model and that new model is beneficial to some of our SMB players because it really gets the focus back on what are your business problems, what are your business needs? What's holding you back? Where do you see your business going? and it puts our partners, are reselling partners and in a position to be that trusted advisor. We're going to give them tools to make sure they're sizing the environment correctly. We're going to enable them with tools to do what is right sizing. So there they can take a workload and model it to see, hey, what would it look like if we put it up in the cloud, because we're envisioning all these SMB's having some some public cloud presence, right, but they can kind of see what would it look like in the public cloud? What kind of utilization would I get? What kind of cost would it be? What would it look like it was on Prim and so they can kind of play this what if game and find the best value. So, but I think the nature of the transaction moves away from technology and bits and byte and more towards what is your business actually need, and then let us go ahead and assemble a proposal for you of you know, technology that would help you meet that and put you in a position to grow, if you grow the way that you're expecting to. So actually, I thought of another thing that I kind of want to jump in here and in Chime in too. Like our experience right what we've seen in this this place, and what I can share from Ningram micro standpoint, is we do have and customers that that fit into this this if you will, profile one such a few will. From a contractual standpoint, we have an end customer that, if you will, there their overall spend over the course of a four year contract. It's about fortyzero. So you're you're looking at about tenzero dollars of it spend on an annual basis. I'm going to say that that's a pretty small and customer. I know HPE has intention of even getting smaller with the solution sets that are out there. That particular solution is the hybrid flash, the HF forty that HPE currently has, and there's a movement, I believe, here in July we're actually going to see HPE launch their MSA storage line into green like as well. So, so what that's going to do is that's going to drive that price point down even farther. So, you know, fortyzero dollars over four years today, we might be looking at solutions that are twenty five thousand dollars over that that same four year period right with the introduction MSA. So we're really focused into their HBE has tools that they have developed to, you know, help get into that that market space for that you know, should we say a little more price sense that of end customer that maybe can't afford all the the bells and whistles of you know, having dedicated engineering and things of that nature. We're going to pull out some of those extra services that maybe they can't take advantage of just to help lower that price point. Yeah, so, and that kind of fits right in with where I was going to head next with a question to you guys around use cases or success story. So that customer, that's a fortyzero customer. Maybe you could walk us through that a little bit, using that as a success story. As far as how was that structured? How did you configure that that environment and the extra, you know, space that they have for growth in that environment. Maybe you could explain on that. Certainly, certainly so, the the experience, if you will, what we did from an engagement standpoint is we're partner actually brought us the opportunity, right they said, I have an end customer that has a business need, and what we were able to do, leveraging our technical support team that we have here inside of Ingram, we were...

...able to work with that partner and that end customer to figure out what their sizing needs were for the business. Right a very, very top or popular phrase to use inside of HPE Green Lake is right sizing. So we've already heard Russ make mention of overprovisioning and and we're trying to solve for that particular problem right we're eliminating that that overspend on it. So in Green Lake we love to right size and that is a key, key component of HPE Green Lake and I really want to stress that. You know, it's great that we have those technical resources that we can help. You know, our SMB partners that maybe don't have those those technical advisors, we can jump on the phone, we can bring the end customer in and you know, we can offer to be an extension, if you will, to our SMB partners. You know, team right will integrate and will be partied what you guys are offering to help provide that right solution. And kind of circling back to our story, well, once the the partner engaged in the end customer was on the line and we're walking through and figuring out their needs. HPE has a tool they call HPE's Green Lake quick quote tool. We were able to get into there and we were able to find the right solution that fit the end customers need and ultimately, at the end of the day, what that solution looked like was, if you will, an eighty percent provisioning that that equated to that end customers, if you will, current it environment, their entire environment, right, a hundred percent of what they had equated to eighty percent of the solution that we're putting up, and then they had an additional twenty percent overhead that, you know, what HPE is not billing for until the end customer and gets into and starts using that particular piece right, that's where the utility bill, if you will. Piece of Green Lake now comes into play. They have that overhead that they can use on demand. They're not built for it until they start using it, and when they start using it they're being built for what they're using, not necessarily the entire additional twenty percent, right. So if they only use an additional one or two percent of that that overhead, fine, that's what you're going to be built on on a monthly basis. So the the solution works out very well for the end customer. We've got their spends now aligned with what they're their revenue streams look like and it's a really good success story. Maybe the other, should we say, piece of the equation when it comes to the the SMB space that that we might want to call out here to is that, honestly, your choice a size of your business does not necessarily matter in HPE Green Lake, and where I'm going with that is right now, within HPE Green Lake it's a level playing field. It doesn't matter if you're the the biggest game in town or you're the smallest game in town, long as you have your hpe green like certifications in place, the pricing that you're going to see versus those really big guys going to be the same. The rebates that you're going to have exposure to going to be the same. So right now really really great time if you're looking to, you know, jump into the the cloud space and kind of make your, you know, initial investments, if you will, into hpe Green Lake. Fantastic time because the the playing field is not going to get any more level than what it is right now. So, Russ, I don't know if there was any other color you wanted to add to that opportunity. Yeah, I know. I would just say that, you know, it's an end user who maybe doesn't have a lot of it resources. So the Green Lake model, where the infrastructure is owned and maintained remotely by HPE, that helps them right. That's that's less seats, less man hours that they have to devote to their their it environment. And then, as Brian was mentioning, they're really benefiting by going through the channel of...

...the expertise of our partners and our own so a lot of these smaller businesses maybe don't have the in how it's expertise to figure out what technology would match to their their business needs. So they're going to get the benefits of our partners in our experience and expertise of seeing we've dealt with business as your size that had the exact same problems as you and we tried this and you know what, and we tried this and this one work better. So they're going to benefit from from our expertise, the scale of our resource verses. And then you let you know, like I was saying, just their own ITP spend goes down and who wouldn't want lasted prices for three, four or five years? I think that that simplifies things. So you end up with a with a small business who it would have been very expensive for them to get all brand new shiny HP gear. That would have impacted their cash flow and instead they're they're still getting that same environment taking care of and monitored by somebody else, benefiting from all of our expertise and they get to keep their money in their pockets. Right. So I think it plays out well for for small businesses. So I find not selling Green Lake today. You know, I'm not partnered to or structure to do that. How do we a get started and what's that? What's that process like going forward? That's a great question. So from an Ingram micro standpoint, first and foremost myself and rust. We're here on the front lines. We're here to help our partner base, you know, out on a daily basis. But beyond that, we've gone through and we've, if you will, created what we call our off road adventure. When it comes to HPE Green Lake. We're actually hosting that, if you will, on our goal hybrid itcom website, and what it's designed to do is essentially take a partner that maybe your only business partner today, and take you through the the necessary steps to get you to the point where you have your green, like silver certification in place and and the benefits there. That's that's seventeen percent rebate. That's that's being paid out to a partner, right. So that's a very substantial amount of money that we're looking at. That seventeen percent rebate is paid against what HPE calls their total contract value. The total contract value is what is the length of the contract? How much, if you will, is the the minimum monthly payment going to look like, right, and then multiplied against the the whole length of the contract. So if it's a sixty month contract, times that, you know, minimum commitment amount that is going to build out on a monthly basis at your total contract value and you're getting seventeen percent of that as a rebate paid from HPE forty five days after the the deal closes out. Right. So there was no big investment from the end customer. There's no, you know, need from a resoller standpoint for a large investment either. Right, there's no purchase order that you have to send over to Ingram micro and you're getting the seventeen percent rebate. Now on top of that when the the green lake deal closes out. There's the monthly reoccurring piece, and we see a lot of questions from from partners on that piece. To write. said, HPE directly going to the end customer and billing things out? Absolutely not. The supply chain is honored, if you will, through this model, meaning HPE is going to generate that invoice monthly, going to come to Ingram, Ingram, we are going to then turn around to you as a partner in general, right, that that same invoice based on what the the monthly amount is. And the nice part is is that your chance right there to get your, if you will, upfront margin. Right, whatever your markup is to the end customer. You apply your margins and the end customer their invoice and also at that point, something else that we love to tell our partner base about when it comes to Green Lake is spin your own services. If you, as a partner, have value added services that that you're already providing to...

...your end user base, augment these Green Lake deals, include your own services. Right. I from my from the seat that I'm in, there is no better delivery agent than the the partner base than that we have that we support right. Our partners are one step, if you will, closer and two steps closer to the end customer than HPE or Ingram Micro. You guys know what they're looking for. In a lot of cases, there's a lot of expertise, there's a lot of certification that is out there in the partner base. Go out there and sell your own services and include them in these Green Lake deals and really enhanced that deal. The way I love to spend Green Lake is we're not selling equipment, we're selling a relationship. Right, there's going to be reoccurring meetings that are going to be happening here. We're going to talk to the end customer, we're going to be talking to partners, we're going to be talking to HPE. Everybody knows what each other are doing. We're moving together lock step on this thing. So it's a relationship. So take take advantage of that, sell your services in that space and really, really, you know, booster margins. So again, I'll flip it over. Russ. Anything else you want to throw on there. Yeah, I mean I'd say, you know, if there's partners who have heard enough or see the writing on the wall that infrastructure as a service is the next big wave here and they want to know how to sell this, they should go to the off road adventure. It's our partner enable their website and that's going to help them get the basic competency to be able to sell Green Lake. But I would say that our partner should also know that that HP is available to help with pitching Green Lake. So they're having their first conversation with an end user. They've gone through the off road adventure, but maybe they're still just not quite confident enough to have that conversation by themselves. They can bring in an HP Green Lake specialist to ride shock on with them and that Clinton at that first kind of preliminary conversation to keep the ball rolling. In terms of so now you have a partner and they they want to do this and they're going down the off road adventure. What do we kind of see from the partners who are doing it? Well, what do they do? Well, they've got to figure out compensation, right. You've got to make sure that you've got a good enough tarret that that your sales people are going to do what they need to do to so, you know, spread the gospel of Green Lake. But also, you know, when you're switching from a traditional sales motion to a recurrent revenue seals motion, this phrase called swallowing the fish, where at first the amount of revenue coming in the doors lower than what you're used to. So in of that that traditional capax million dollar Poh that you might get now it's going to look more like maybe fiftyzero dollars a month, right, and so that that's a reality that when you switch to reoccurring revenue, in the beginning your revenue is going to go down. Now over long term that revenue goes back up and Adobe's probably one of the poster children for a successful switch to and as a service type of model. But what I would tell our partners is, while that is a reality. HP KNOWS IT and that's why they created this seventeen percent vendor rebate that Brian was talking about, and that's why it's paid up front. It's paid forty five days after the deal closes, and so instead of having they still get the benefit of that reoccurring revenue throughout the life of the contract, which is great and everyone wants, but they're getting a lump of money up front so they can compensate their sales people correctly and so that it feels more like a traditional cap x model. So by shifting that rebate to the front, HP is taking the sting out of that transition. They're softening the cost to transition to a reoccurring revenue model. Okay, so, Russ and Brian, one last question I have for you. Guys. I'm going to start with Ross. I'M gonna ask both of you the same question. But Russ, where do you see technology going in the next year? Oh boy, I think it's going to be an expansion of offering. So we're going to see more and more AI and ML being worked in. I think we're going to see more blockchain being worked in, but everyone's looking to bring in as much even third party solutions that we can all for full solution. We don't want...

...this to just be a vendor lock in kind of thing. We want a diverse ecosystem of partners, different third party software providers that are partners with their own services. We don't want this to be a product that is just passed down and then pass down to the next guy. This is a service and we wanted to expand spherically. So instead of a linear pass down model, we want this thing to grow and part of that is by letting these third party software vendors in, like letting our partners. Are Encouraging our partners to wrap their own services in. It's going to improve the customer experience, it's going to can improve the offering, like well said, Brian, which your thought on that question. So from a from a technology standpoint, I'm not going to sit here and say that I have a magic ball that's going to tell me what the the next big thing is going to be, but some of us to do that. So also, well, you guys are lucky. If if you wouldn't mind providing you know, the lottery number, I would love that. Right. I'll provide you something, but all those are number. Sorry. What I see as far as evolution is I see HPE continuing to as they develop new solution sets. So to Russ this point, AI is a big one. Big Datas is, you know, something that is just buzzing the the market place right now and HPE's been doing acquisitions to to kind of aid with that. Both of those those pieces right, I see HPE bringing those solutions sets under the green like umbrella. That's what I see as I see a company that is very, very committed to furthering this this cloud experience. Whether, you know, they continue to I have no doubt that they're going to continue to offer infrastructure as a service where and customers have the equipment on site. I think we'll see HPE maybe start to offer more of, should we say, their own, if you will, data centers as being an available option that maybe end customers can, you know, take advantage of some of the the super computing options that are out there but not necessarily have to take on responsibility of hosting themselves. Right. So offering that as a service. Block storage is something that's coming down the pipe. We've seen HPE announce the electro five thousand is being Green Lake only right. So when exclusive product from HPE standpoint, only offering it through the the Green Lake model at this point. So I see HPE, like I said, continuing to build that portfolio, augment that portfolio. I really love that Rusk called out the fact that, you know what we're looking to build in third parties when it comes to the solution sets. It's not just all about HPE. The I would say probably three quarters of the deals that we have closed under the Green Lake umbrella have some sort of third party element to them as well. So don't don't say here and think you know, I'm green like and I'm solely HPE. No, that is not the case. If you can think of it from a solution standpoint, bring it to us right where. We're willing to work with you guys, and we've seen HPE work with our partners to accomplish what the end users needs are at the end of the day. So very, very exciting place to be, you know, and where when we're talking about hpe green like, that's really where I guess I would go when it comes to the technology piece. Got It well, Russ Brian for Devon, because he lets me, you know, say thanks on his and and my own. You guys have provided a ton of information in a very short period of time. So where can partners go find out either a little bit more about either of you or about HB Greenla? So we're going to we're going to put them right on that. Go Hybrid itcom website and then look for the Green Lake off road adventure. There's a nice little...

...medallion, if you will, on the page that you can click on and it's going to get your right into there. Our contact information is baked right into that website as well, and then we also have hpe green lake and Ingram microcom. If you're not comfortable going to the site, you want to just send us an email. We're here. Feel free ask questions. We love the engagement and we'll jump on the phone with anybody. So thank you. Thank you for tuning in to another episode of BB tech talks as the gears turn. An addition. You've been listening to be tob tech talk with Ingram micros special as the gears turn addition. Hosted by Devin biddle and Patrick Cash. This episode was sponsored by Ingram micros SMB alliance. Bb Tech Talk is a joint production with sweet fish media and Ingram micro. Ingram micro production handled by Laura Burton. To not miss an episode, subscribe to the show on your favorite podcast platform. If you're listening on Apple Podcast, we'd love for you to leave a quick rating of the show. Just have the number of stars you think the podcast deserves. Until next time,.

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