I'm very happy to be able to be here right at this point in time and maybe, you know, from this slightly more technical or slightly more on the ground experiences of a policy officer in the European Commission and the Secretary General to talk about what this energy union project means and what we are trying to achieve with that and how that fits in with the political priorities of the Commission. And then I just draw something here I was reading through this latest and quite getting quite some purchase booked by the IIA talking about the consequences of Brexit and everything through that which said well actually there's even if we are talking about a half out or half in approach energy is one of the areas where it is going to be likely to be cooperation with UK and for UK involvement and then maybe this sort of links to some of the areas that we're going to be discussing about regional cooperation management of the system in a regional level and benefiting as part of a wider European approach. First of all for where am I in the normal things? Helen mentioned that I work in the Secretary General. Now those of you who are sensible have no interest in the internal politics of the Commission. Nonetheless I'm going to indulge just for a moment on what that means and why it's important. One of the things that you could say that's happening inside the Commission is there's a sense that there's a strong need to ensure that the coherence and the coordination of policies done at a more stronger level in a more current way from the beginning. So we have what might be called ex-ante coordination instead of ex-post-coordination. On one level this is seen by the appointment of Vice Presidents whose job was not to manage individual Director General Ministries but rather to act as Deputy Tishi or act as Deputy Prime Ministers would to coordinate the work on specific policy areas, bringing together the work of different Directorates General and different Commissioners more to the point. To stop having a sense that policy was unconnected with each other and to ensure that from the very beginning policies were conceived in a joined up way. And which policies were to be particularly important in this, especially now as we have a Vice President who's clearly making sure that we don't have extraneous policies in Vice President Timmermans, of course Vice President Timmermans, well they were to be reflecting the political priorities set by President Junker when he was candidate Junker and when he was appointed by when he was nominated by the Council and later upon and set out in his political program to the Parliament. And of those 10 political priorities one of them was very clearly energy and that's not an accident. It's because in searching and looking up where areas that Europe could do better, looking forward, so I could say even do even better, one of the clearest areas was energy talking to stakeholders, politicians, policymakers across Europe. This is already clear. These are senses that were already clear, which is not a sense of having we had a disaster for the last five years and we need to improve it. It's like this is one of the areas where we are hitting huge challenges, some of them challenges of success and we have to ensure that we bring a coherence to energy policy and to climate policy that cuts across the entire policy making of the DG. And that's why energy union was one of the first political deliveries of this commission. I think the second after the investment fund, after the Junker fund. So what is our vision of an energy union? I actually think this is something that's very useful to look at when you're reading the document. Start off at the beginning and see what is the vision it's delivering, that it aims to deliver. Let's judge some of the successes based on that. Are we able to do it? Well, the vision is of a energy with solidarity, energy security based on solidarity and trust, that we can trust each other to deliver our aims and that we can act in solidarity with each other in terms of ensuring security supply, ensuring that we meet our aim. And that we speak of one voice in global affairs. I'll come back to each one of these later. Second point is that we have an integrated continent-wide European system that we don't think in terms of the systems as being broken up into national systems. That these borders are not how we manage the system but we see them as operating as one with energy flows across those systems. We have a sustainable low carbon and climate friendly economy which means that we have renewables, that we have more energy efficiency, that we have an integrated energy and climate policy and integrated low carbon policy, integrating renewables with the wider part of it. We have the idea of strong and innovative competitive European economy and here's one of the sections because we're talking about the pillars, the dimensions of the energy union strategy. One of the dimensions is research and innovation, which I think is going to be something that both is going to be the hardest level of work because it's really trying to bring things together that haven't worked necessarily all that well and really will show the benefits of the new approach in terms of how we deliver the energy strategy through innovative new companies in the future, linking the developments in information and computer technology through the requirements of energy efficiency, through to the integration of renewables into the wider linking of the retail market to the wholesale market and which companies are going to do this and how they're going to do it and as an aside I would say this is also something where Ireland potentially has huge potential to benefit with a strong ICT sector and very strong requirements in terms of managing the integration of renewables within the system and finally the idea that citizens should be able to take ownership of the energy transition. It's the vision, it's set out at the very beginning of the document and we see exactly where we are most successful or not over the next years. If you want to see what that program translates into and I'll come back to that at the end, there's action points and more to the point a roadmap of specific proposals that are set out how to deliver the vision. The meeting between in the sandwich, that is setting out in more detail what that means and how it's going to be done and why we think certain things, but I think if you just start off with those two documents, the beginning and the end of this presentation, maybe you could all go home and you wouldn't have to put up with listening to it. Energy security is based on solidarity and trust. What kind of concrete actions are we delivering here? Well, last year it's very clear, I'm actually far longer than that, that we've had challenges coming from our dependence on a single supplier in many member states. What we need to do is to have a resilient and diverse supply of gas into Europe. We have to be sure of our security of gas supply, take into account the lessons that we learned from last year's stress tests, work towards practical implementation of our energy security strategy. Right now in the commission, we are looking at developing proposals on a new updated gas security supply regulation, which will make concrete some of the recommendations, the lessons that we learned from the stress test last year. We also recognize that our dependence on a single supplier is often driven by being picked out individually by the weaknesses that individual member states can sometimes have when they are faced with negotiating with a strong partner. And so these weaknesses are exploited within intergovernmental agreements, which is why there's already a commission decision given the commission of power of X post review of intergovernmental agreements relating to energy supplies. A strong sense, looking at the evidence, if you read through the document and you see why, that this needs to be looked at again. And then we need to take account of two things. First of all, X post is maybe too late. And the second point is, the related point is, actually sometimes the intergovernmental agreement where a member state has entered into negotiations with a large energy supplier who might be trying to exploit its vulnerable position. The real damage, so to speak, is being done in the commercial agreement associated with that. And so we're looking very carefully at how we can ensure that that's not what's happening, that the commission has effective access to ensure that the commercial agreements associated with the intergovernmental agreements are not undermining the internal market and our collective security supply. Recognizing, of course, the need to ensure commercial confidentiality. This isn't a procedure for just opening up all kinds of information to the wider public. But to anybody who says, well, look at how can we do that? How can we trust the commission to look at this kind of commercial information?  And if there's one area that we can be fairly confident that we don't get leaks in in Brussels, it's out of DG competition in relation to state aid investigations or antitrust investigations or merger investigations. This information doesn't leave the commissioners perfectly able to keep this information confidential, but nonetheless ensure that the aims and purposes of the terror market are met. And we have the idea of creating and facilitating a diversification of energy supplies, looking at alternative supplies coming from the southern corridor and what needs to be done to realize that, ongoing discussions with states in the region, and looking at alternative supplies in terms of using our LNG facilities with development of an LNG strategy. And here I can put the emphasis on using as well as building new ones. There are facilities available within Europe and we have to look at, well, what are the blocks? Is the problem that you cannot import to Spain and then transport that to other parts of Europe? That you cannot import to the Netherlands and then reverse flow all the way through different parts of Germany or even further east? These are practical issues about how the system is operated as a whole, as well as looking at where additional LNG might be needed as part of an increase in the robustness and the resilience of the European system. Looking at the aims of creating a fully integrated internal energy market, let's look at some of the concrete actions, some of them literally concrete poured into the ground. Well, building on the work we have already, there's a electricity infrastructure regulation and the projects of common interests and looking for the second list of projects of common interests and how that can be done. But think here, there's two points I want to emphasize that are particularly interesting from an Irish point of view, which will be the European electricity market design project and the regional cooperation, how that happens. So the European electricity design, in some respects, is the complement from the gas side of looking at security supply, which also looks at security electrified. The complement in the electricity side is the market design. And it's the sense of stepping up to the challenge, as I say, the challenge of success, that we have large volumes of renewables on the system, that we have to manage and manage in an efficient way, that we have to ensure that investments are made in the future based on clear long-term market signals, that we have to ensure that renewables and new renewables can be built based on this and that they can be traded across borders, both in the short term and in thinking of the long term. And these are the issues that are being looked at in terms of market design. And another final very important thing here is the aim of market design is to take the benefit of new information computer technology, ICT, and to link the wholesale and the retail markets, so that this idea that consumers and citizens can participate in the electricity transition, the energy transition, is real. So right now, we in the Commission are at the advanced stages of preparing a consultative communication to look at all these areas, which we hope to publish and we intend to publish in July. And that will set out questions, it will set out a political vision and also concrete questions, political questions but also technical questions about how this market design should look in the future. What that will involve in the next steps are, well we'll have the first reports back with the State of the Energy Union at the end of the year, but I'll come back to the State of the Energy Union, leading to the development of detailed legislation built on engagement with stakeholders which is already starting over the next year and a half, year, year and a half, so that by the end of 2016 we should have concrete legislative proposals on the table. They should be well linked to other areas I'm going to come to now, very well linked to the future renewables and renewables reform of the renewables directive. It should be very clear, it should address issues that are burning for many people, how to integrate capacity mechanisms across borders, how to address this question of state interventions, how to ensure that the short-term and the long-term security system is delivered, looking at how we can trade across borders, as I say, long-term and short-term. I'm not making any of the other points less important, I just noticed the time and I'm focusing on that, I think maybe the audience is most interested in here, but feel free to raise your hand and say actually, Ty, talk about vulnerable consumers, our energy prices costs. Energy efficiency, again one of the dimensions, one of the important dimensions of system, so some of this is building on existing work, clearly the energy efficiency directive is already there, but looking at how it can be renewed and I would say that one of the clear and important issues here is going to be getting the link between energy efficiency, some of the elements of the energy efficiency directive that I've already started, which annoy certain energy suppliers, this one percent obligation, but looking at that and saying how can we actually begin to again deliver the transition to energy service companies, linking back to the wholesale retail market integration. What are the areas that we have to really look at in terms of where do the obligations sit at European level in terms of delivering our ambition and where does this come out of national levels? We want to develop related to that a heating and cooling strategy, now I could put this under a renewables area or this area, but in terms of where do we consume energy and we consume it for heating and cooling in large part, so looking at what flows out of that. The work has already started on this, started through the detailed analytical work for the review of the starting to do the detail analytical work to review the energy efficiency directive, which is itself tied to the wider aim of the European Union to look forward towards a increase in our ambition from the 27 percent set by the European Council last year up to 30 percent increase in energy efficiency. Another important point here and we see it in the action as well is the aim to have a smart finance or smart buildings approach. This is not necessarily yellow, it might need some complementary legislative proposal. There are different tools that can be used that exist already to achieve this and we're looking at those in quite some detail to see how can we do that. What tools and then flowing out of that if we need to have support from existing financial institutions in a framework for doing that, whether we need to have some change to some legislation, this is not primarily a legislative approach decarbonizing the economy. So it's very easy to say we're going to hit 40 percent reductions. Well in greenhouse gas emissions, 43 percent reductions in the ETS sector. We start to see the interactions now though, that's 30 percent in the energy non ETS sector. Give or take it's 30 percent. How do we do that? Well where does it come from? How much is it delivered by the heating cooling strategy and a shift towards renewables? Our energy efficiency and the electricity market design. Each one of these dimensions are very much that, it's just a prism by which you can look at the overall challenges that we have. Well two points I want to raise here in terms of looking at these interactions is the looking at road transport. It's going to be incredibly important and it's part of our aims to integrate and to mainstream the connections between the transport agenda and the energy agenda and the climate agenda. And again, I'd point out to this is one of the reasons why we now have a vice president for energy union who's able to bring this together at an early stage and look at it and see the connections between climate policy and transport policy. In terms of renewables, well again in renewables we have the challenge of a European target of 27 percent. But does that translate into national targets? Do we build up or do we build down? Well I think the aim is to be, no matter what, to be clear that we're meeting our aims in a cost-effective way. And this is where we'll see, and you'll see it already coming in the proposals, already in the consultation, excuse me, in July, the beginning of this link to be drawn out between cross-border participation and allowing renewables to be traded across borders effectively, renewable energy. Taking on board the lessons from the experience with the cooperation mechanism, looking for ways that can be improved or where its shortcomings can be addressed and remembering that this is a European target now. I'm nearly finished and then we can start to move into actual questions and maybe you can see what you can actually drag out of me that I haven't said, that you think I haven't said. But I want to point this out here, this link between the integrated set plan, the idea of looking at research innovation, having a global technology innovation leadership, thinking of a way that we can develop the technologies in Europe and then export them related to renewables, related to energy efficiency, related to the management of the system, something that Ergbert already has experience with here, maybe in advance of anybody else, as well as the link with transport. I just want to focus here on the pure energy side of things. In the preparation of the energy union framework strategy and the preparation of that document, this was the hardest part to write. I can tell you that it was changing radically right up to the very end as the need to bring all these different parts together led you to look at it in slightly different ways with the clear knowledge at all stages that it was critically important that we begin to deliver on this. That's also one I think where you can see again the value of this new approach from this commission which will be hopefully can deliver successes but so we come back in five years time and say this has been a success. It links together work in the joint research center in the director general for research and technological development in DG energy in DG trade. Actually in this stage I was calling up I said well actually there's more than that. There's DG education and culture which has these knowledge and innovation clusters which are located there and they've got a very good one here in that so why aren't we hearing from them yet so I had to call up people directly say what's the feed in here because the areas of research innovation education are spread out and yet this is where the answers to delivering our problems are going to be. Now we will see the first results of the new way of thinking with the focus and four key areas that was set out in the energy union document coming in the second half of this year with the new set plan with the communication of the set plan. I think next year then we'll start to see this coming in the energy global technology innovation leadership where the DGs where the director is general where the staff where the technical people are really sitting together and through and working these ideas out now and seeing where the interactions between each other's policies are and how that can be done to deliver with the benefits that's bringing and that's as again I'll say my little bit of own propaganda for what I think Ireland can do it's where there are real gains here where it's talking about the application of information technology and computer technology I read through some statistics shortly before I came here how much more the proportion of GDP Ireland's GDP was from ICT and that's not just transfer pricing and some of those skills and knowledge and understanding are precisely what's going to be needed to manage the energy transition so looking at governance well the European commission has committed to producing an annual state of the energy union report this will serve as the key point where we can update on progress update on the commitments and the undertakings that have been given by member states in relation to renewables or energy efficiency set out the way forward for what our policy proposals are likely to be so this is I think this will become a key date in the energy calendar from the future so when's the key date going to be it's still being worked out precisely but it'll be in the towards the end of this year and quarter three actually quarter four sorry I shouldn't say three or four in quarter four of this year and we also are looking very in very detail at how we can streamline the reporting and planning so let's just talk about some of the reporting and everybody knows this is always hard work but there's every every piece of European legislation often has some kind of report attached to it somewhere and the aim is to bring those together as far as possible into a single report not every report will sit in but to bring the key political messages so that the messages don't get lost so that the information that's been provided by member states is brought up and can be communicated and then used in an effective way so while reporting shouldn't be just for its own sake it's also the consolidation of reporting shouldn't be just for its own sake it's to allow a policy development process to be done effectively we're also looking in in detail about what this means for the reporting member states in terms of their planning Ireland's development of white paper and well how's that white paper development process going to fit into the wider European climate and energy and climate strategy what elements do we think that need to be in that in order to allow the wider European Union to do its work I could say the same thing about the UK or Germany or France or Poland so there's we need to be an element of where we can collectively talk and send back the information over back so another element of fear of governance and this is something I want to talk about as well is the idea of the regional approach to the energy and climate policy framework now there's two levels at which the regionalization can happen one is the let's call it the political level where it's about the setting of targets and the understanding of the impact that each decision will have on its own well if we expect to have 40 percent renewables in our energies in our electricity system what does that mean for you and your neighboring system what do we need to think about to integrate the systems between the UK and Ireland do we want to have that happen or not high level political regional approaches a sharing of information of development of structure and the other level of which regional approach becomes very important is in the in the practical day-to-day cooperation and I think this is something where I am very fortunate that I got to work on the Irish system as the single electricity market was integrated I think many of the ideas that you see was like are fitted into that the idea of having a cross-border system planning flowing out of wider energy policy targets the idea of having cross-border system operation and cross-border market operation some of this will have to happen at a regional level building on the experience we've had so far across Europe whether that was with day ahead market coupling or elements of gas markets so keeping these two regional approaches in common with each other is going to be very important one to allow policy decisions we made the other one to allow the real effects of those policy decisions to be addressed and for example relating this back to the market design there's no doubt that elements of market design will need to be implemented first on a regional level just as we saw with market coupling just we see with many different areas this will raise important issues for Ireland clearly in terms of how it relates to the wider regional areas that with France and the UK and how that's done in terms of both markets market design elements of it but also in terms of planning and thinking about the interaction of those resources happen and in very small writing oops action points the action points is the well there's 15 depending on how you count it you can some sub points there as usual there are some negotiations about this looking at the foreign element of it the external dimension with sub points within points but I think they are set out something that you can hold the commission's feet to the far too in five years time and say did we deliver on those I think equally how they get translated into the annex to the energy union document is very important with the I can't remember 43 actions 43 individual actions again with the possibility of things where they set out look at these are the legislative programs that we imagine these are the concrete initiatives be that setting up an infrastructure form be that having a consultation on energy market design this year or gas security supply legislation this year or review of the impact sorry Sydney review of the intergovernmental agreements next year thank you for your attention so normally comes up there but I think I might have left it off and I hope I've got to give you some sense of where it is that we're coming from how we see the interconnections from the different areas I really look forward to taking questions and even maybe give you some more background on some of some of the tensions in the development of the the documents thank you very much


In today's busy world of transportation upkeep, there isn't a lot of room for mistakes. Whether it's a downtown traffic way or a remote county intersection, many people depend on your decisions. Tight budgets and liability issues create a need for efficient, reliable management of your agency's resources and operations. Many agencies find that personal computers are a good way to keep their operations efficient. Over the last four years, the staff at Douglas County, Kansas has used a PC to speed up their design of box culverts. The process starts with the collection of field data using electronic surveying equipment. The data collector automatically records all the survey shots that they take and they bring that into the office and we dump that into the computer. And then with some utilities that we have, we can bring that into AutoCAD and do our cross sections and contours from that. It's turned over to the design engineer and from that information, he can design the box culvert. Then they use the PC to perform hydraulic and structural calculations. And with that data, it goes and searches through data files or tables that I've put in another part of the spreadsheet and it'll give me back my time of concentration and my rainfall intensities for that particular storm. And then I can do the structural design with this program also and it asks me for the depth of fill over the box and then the estimated slab floor thickness. And with that input, I can see the required depth of my reinforcing steel and it calculates everything right immediately. What used to take days or hours to go through an iterative process to come up with the ultimate depth and thickness of slab, it does immediately in front of the screen. This program helps calculate the steel and concrete quantities. It also produces a cost estimate for the job. And then I have another place on the spreadsheet that does all the engineers estimating of the cost, whether a contractor would do the work or the county would do the work. And then I just have to hit a couple keys and it automatically prints out the 14 page report and this all can be done within five minutes. The longest part of it is just printing out the report. The program also provides the dimensions needed for computer aided drafting of the culvert. All the information that is specified by the design engineer is entered into the data file. The list program takes that data file and essentially draws about half of the drawing for us and draws the basic outline of the box culvert, various views of the box, cut sections of it and does about half of the work for us as far as drawing is concerned. Sounds impressive. Keep in mind that Douglas County has had several years to work up to this point. Thorough research and early planning helped them to get this far. So the point here is before you buy a computer do some research, define your needs, take your time, don't rush into a hasty purchase. Let's examine some of the basic things you should consider before buying any computer equipment. First, stop and consider what it is you want a computer to do. Douglas County bought theirs for development of engineering drawings and designs. Look at the kinds of work you now perform. Ask yourself if a computer can speed your work up or help you serve the public better. Most important, a computer may help you do things you can't do now. Remember Douglas County and their box culverts? Not every job should be computerized. Start first on the areas where you can get the most benefit. The thing to remember here is think ahead. Only after you decide why you need a computer can you be ready to look for the software to meet these needs. The right computer with the wrong software is inefficient and frustrating. To avoid this, again, do your research. There are plenty of helpful magazines and publications available. Also call around. Talk to other agencies like yours that use PCs and contact state and federal agencies. They're good sources of information. Sit down with the vendors and consultants to see what they have to offer. Be sure to see the software in action. You may also want to seek help in determining your needs. The software you choose will require different types of hardware to support it. The monitor and graphics display card determine the number of colors you'll have in the sharpness of your image. Computers give you hard copies of your work and they're an essential piece of hardware for most software applications. For technical drafting and drawing you may want to plotter. A mouse allows a user to quickly move the cursor around the screen for faster data input.  Just remember not to overdo it. Keep your needs and your budgets in mind. Call computer dealers and see about testing the software you want to use. You'll look for the best warranty, setup and technical support. The computer and the software aren't the only costs you'll have to deal with. Discats, paper, printer supplies and other items should have a spot in your budget. Besides accessories you'll have the costs of training your employees. Plus it'll take a lot of time to collect and enter the initial data you may need to get your system going. Also software is regularly revised and improved so be sure to keep it up to date. We've given you a lot of information. Let's review the four basic steps in selecting a computer system. First, identify your needs. What do you need the computer to do? Second, select the software. Choose the software that best fits your needs. Third, select the hardware. Pick hardware compatible with your software. Finally, plan for ongoing cost. Supplies, training and support can eat up your budget and your time if you're not ready for them. Computers are effective. They already play a large role in most urban areas. They can be equally effective out here. It's the start of another day here at County Public Works. About a year ago the county bought computers for this office and things have changed for the better. Let's see how computers have changed an average morning at County Public Works. Good morning Nancy. Good morning. How you doing? Okay. Say, did you remember I need that bridge report by this afternoon? Oh yeah, no problem. I started it yesterday. I can have it to you by name. Hey, that's great. Thanks. Let's look at the same situation before they had computers. Nancy, do you have that report done yet? Come on, I need it Ponto. With word processing software and a computer, the document is only type once. Not only will you cut down on typos, but you can move whole paragraphs or create standard wordings to use over and over again on contracts, bid specs, or form letters. Nancy, I need to see the estimate for the pavement resurfacing project on the McIntyre Road. McIntyre, right, I've got it here. Yeah, I was wondering what if we would hire another supervisor who could... With a computer, you'll hear what if a lot, especially when dealing with budget spreadsheets, project planning, or job estimates. The computer does the math for you quickly and accurately, enabling you to test alternative cost strategies. Plus, formulas, functions, and commands can be stored in the spreadsheet to automate a wide variety of other operations. You can even create graphs from data in the spreadsheet. Budgeting and estimating will never be the same. Public works? Uh-huh. Okay, just a minute. Mike, it's Bob on line three. He wants to know about the size and the age of the culvert over on county 614 on Miners Creek. I need to finish this report. Could you help him? Sure, I'll pick him up into office. Thanks. Hi, Pete. How are you doing today? Okay. Sure. The culvert you're asking about was built in 1938. The structure is, but... Notice, he didn't have to look up any information in a filing cabinet. And he didn't have to call anyone back. This process is database management. It's nothing new. If you've ever had a phone directory or had equipment on the inventory, you've dealt with database management. Computerized database management gives you flexibility. You can do more than find information about culverts. You can reorganize, sort, and compare information in many ways. And a special purpose database application can make information work for you instead of the other way around. The main thing to remember here is that learning and implementing computerized database management takes time. It won't come overnight, but when it does, it will be a big asset to you around the office. You can also add specialized software to your system to study your town or county's traffic capacity. You can calculate and keep track of bridge ratings or perform a traffic simulation to check trouble spots. Programs like these help you perform detailed analysis quickly, leaving you more time to concentrate on decision making. Another example of the flexibility that a personal computer provides is found in here, the county's design room. These tables don't get much use anymore these days, not since the county started using computer-aided drafting and design, or CAD. With CAD, you can create standard features to be used many times in different drawings. You can tie information to drawing elements, for example, to keep track of material specs and quantity takeoffs. With a programmable CAD system, drawings can even be created automatically by entering a few key dimensions. Finally, CAD lets you make revisions and plot fresh drawings quickly and easily. Another area that's developing rapidly with microcomputers are geographic information systems. By combining computerized mapping and database management, GIS lets you work with information in terms of where as well as what. For example, the location of specific items can be found on the map. And GIS also gives quick access to info about these items. Organizing and protecting the information you store with a computer requires some new techniques. Utility software can help with these housekeeping tasks and can simplify your interaction with a computer. Programs help you make backup copies of your data, organize and manage files on your disk, create your own menus for selecting programs, and even recover lost data. All have an important place in your software library. A typical morning here at County Public Works. The computer increases the staff's capabilities and enhances their work and decisions. It can do the same for your office. Hey, Nancy. Looks like you got that report done for my lunch meeting. It is. Hey, this looks great. This computer's made all the difference around here. Say it's 11.30 once you take an early lunch. Well, thanks. Thanks again.


Okay, we're here live at HP Labs in Palo Alto, California. I'm John Furrier, the founder of SiliconANGLE.tv, and we are here for a special CUBE edition of HP's press conference announcing a revolutionary new innovation with server technology. And this is the CUBE, our flagship telecast, where we go out to the events and go out and capture the stories wherever they may be. And today it's in Palo Alto, California, where we are in building one of Hewlett Packard. And behind me, you can see the offices of Bill Hewlett and Dave Packard, the founders of HP, original condition of the offices. This is where the home of Silicon Valley was born. Hewlett Packard is a great company of historic innovation, and we are pleased to bring you SiliconANGLE.tv, the CUBE's exclusive coverage of the post-event analysis. I'm John Furrier with SiliconANGLE.com, and I'm here with my co-host on the CUBE. I'm Dave Vellante of Wikibon.org, and John is quite a spot that we're in with the 70-style paneling, the open-door policy of HP and its founders. I did a social cam yesterday, Justin.tv's app. You got to go download it if you don't have it yet for the iPhone and Android. Social cam, you can do videos. Dave, we were setting up yesterday, and this is like a sacred area within HP. This is building one on Page Mill Road in Palo Alto and Bill Hewlett and Dave Packard, the founders of Hewlett Packard, known legendary in Silicon Valley for their innovation. Their style of management, and they had an open-door policy, and literally the doors are open, there are doors on there, but you're the only guys who had offices at HP for many, many years, and the offices are in original condition. You can see, it looks like an episode of Mad Men. These were the only doors in the building other than the outside doors. There are no doors in this facility other than these two, and they were always open, right? I mean, you used to work at HP, and the culture is renowned, walking around management by objectives, management by walking around, and of course, this spot used to be basically surrounded by farmland, right? Yeah, a funny story. I posted my social cam on Facebook yesterday, and I had one of my followers on it, friends on Facebook, Jim Long, who was a longtime HP employee. He was actually at Berkeley when they invented UNIX, he was part of that whole crew, and did a social cam on that when the guy who founded C died. Anyway, he commented and said, Billy, Bill Hewlett and Dave Packard were the only guys who had doors in their offices, rarely closed them at all, and CEO John Young sat in the bullpen area out here in a cube. So, literally, even the CEO, John Young, when he took over as CEO, didn't even have an office. But it's just so historic, you can see, if you go to the wide shot mark, you can see behind us, the picture of the founders and their youth, and their first product, the Audio Oscillator, which is a storied product with Walt Disney. And Dave, you know, Youla Packard reminds me of the way startups should be built in an era where they're just pumping out factories of entrepreneurs with Y Combinator and these other incubators. HP started like a startup. In a garage. A product, be profitable, don't carry a lot of debt, two founders, two technical founders, one more business with Dave Packard, but they were all about the people, and citizenship and innovation. And they had a management tenant, we talked about management by walking around, but what really was key about Yula Packard was, they really had business discipline. It wasn't a frothy company. They didn't have a real layoff policy, but it was just a storied company. And just, to me, the typical type startup, and it's pretty revolutionary to think about that now. It's interesting to be here, John, because obviously a lot of turmoil going on with HP these days, and they're in the news and we know that story well. Invent was the original tagline and the logo of HP. And Carly Fiorina used to have ads with Invent behind it, but of course, really not much was invented there. She ended up buying Compaq. Herd bought EDS, really not an Invent culture. And we're here today at what I would consider an innovation day, some very interesting announcements coming from HP that we're gonna talk about. Can HP get back to its Invent roots? That's really one of the big questions that we have. Yeah, I think they can. I mean, today's announcement, which we'll cover quickly in a second, but today's announcements, we'll talk about Moonshot in detail, shows to me that HP can move on a dime, and they've been moving fast. This is an interesting announcement for HP for many, many reasons. One, it's a game-changing announcement that affects the chip side of their supply chain and architecture around servers, which has had a legacy approach with Intel, who's not here. And HP is very, very strong in that business. Strong in that business, but it was a combination of a clobberage between HP Labs. So that's kind of the deal here. So to me, this announcement speaks volumes of the new HP. So let's get right to the announcement, Dave. So the announcement today is that HP is announcing a new extreme low-energy server technology. Kaleisa is the company. Calzada. Calzada, sorry, Calzada. ARM-based processor, and the big story here is that HP is announcing a architecture in their servers. That's really based upon a low-energy, what I would call mobile-like chip set. So the PC evolution on the old days, our days of client server and PC revolution, Dave, was the PC server microprocessor was the industry standard. And what happened was the server technology, Allah Wintel, grew out of that. So what happened in the server business was they were just the chips from the PCs retrofitted for, you know, Intel-based servers, which were competing against UNIX-based servers at that time. So nothing's really changed since then. So what today's happening is these new chip sets are absolutely a new definition with new requirements.  And this is a game changer because it changes the footprint and really powers in new use cases that we're seeing where there's a lot of challenges. Those use cases are cloud, mobile, and big data. So what's happening here is that, for those of you who aren't familiar with ARM, is the dominant processor within mobile phones and cell phones. And Calzada is a company that basically has expertise not only around low power, but is taking the ARM architecture and making it data center server-class ready for the applications that John just mentioned, the Web 2.0 piece. HP today is announcing really three components of this announcement. Something called HP Redstone, which is essentially a platform based on HP ProLiant chassis. So it's an existing chassis that you can use from the supply chain, but it's very different. We saw Calzada chips, basically four chips on a card that slide in and essentially multiple trays. And you can get 2,880 servers in Iraq. 2,880 servers in Iraq versus say, tens of servers that you would normally get in Iraq. The second piece of this is the HP Discovery Lab. And that's essentially a lab in Houston that's going to open early next year and HP's going to announce other labs in Europe and AP. And these are places where customers can come and partners can come and benchmark. And the third piece of this is what's called the HP Pathfinder program. And Pathfinder is basically an ecosystem, which is very important. If you're going to have these new apps running on these new types of servers, you need to have an ecosystem. So HP's putting those three pieces together. The platform, the lab and the ecosystem is really what they're announcing today. I mean, it's really a comprehensive announcement if you think about it, Dave. I mean, that's the normal thing you look for. What I look for in an announcement is what's the technology that they're announcing very relevant in the challenges that we're seeing? And two, is it a real announcement? And so this ecosystem approach, those foundations you just mentioned, our HP's commitment, and they talked about this at the beginning of the race. But I want to talk about that core technology piece and they want to get your opinion. Now we've been covering on siliconangle.com and you guys have been doing the research at wikibond.org around data centers. We had Intel on at the Cube at Oracle Open World, Pauline Nist was a great guest talking about the chip challenges for Intel. Intel is not here and that is really the big story is that Intel has been a partner of HP for many, many years. The Wintel Alliance, Windows Intel, has been a big part of HP's hardware story and they're not here. And so this is a major concern around why isn't Intel here? So they didn't talk about it and HP is like we're not going to talk about that. So we want to drill into that. But the other thing is the cost of data centers. One thing that came out of our conversations on the Cube this year is that data center costs are skyrocketing. Footprint costs and also the overall cost to actually cool the heat from these servers. And so when people start scaling up and scaling out, huge energy issues. So Dave, what's your take on this? Well, is it going to be a fundamental shift? Do you think the adoption will be right away? What's your take? I think you're right. Intel's not being here is a big part of the story. Now HP did say that Adam Intel's low power chip and we talked to Pauline Nist about Adam, which is their arm competitor, will be is on the roadmap. They made that definitive statement in the Q&A session. So Intel, that says to me Intel's behind arm. I mean, very clearly arm leads in low power and Intel's playing catch up here. And so HP's making an innovative announcement and they're going to use the chip that's ready. The second is these processors are not for every application. Therefore, as John said before, Web 2.0, big scale out. So in those situations, you're going to, if you're using traditional x86 architectures, HP claims that you could save up to 90%. You could eliminate up to 90% of the existing processing power today. Just for people who are watching and not knowing what's going on behind me, people are walking in and out of this office behind me. This is the office of Pyl Eulett and behind Dave is the office of Dave Packard, the founders of HP. So we might see some people kind of strolling in and out getting the tour. Wall Street Journal's here, The New York Times, Wired Magazine, people are getting tours. All right, so our next guest is going to be Barry Evans, who's the co-founder and CEO of Calzada. He was just up there on the announcement. He's going to be coming on theCUBE. And Dave, I want to ask him how it all got started. They talked about kind of the mobile phones market. And I really want to talk about how he grew his company. And Calzada in this announcement is key for them because having HP as a partner, obviously as a supply deal, should catapult the company to financial success. And it's a validation for them. So I want to ask him that. Is there anything that you want to ask him? Yeah, so Calzada essentially takes the arm low power processors and add some secret sauce and put some on steroids and make some server ready. So I really want to understand what that secret sauce is, why the importance of HP and what kind of trajectory that's going to mean for their company. Because I think you're right, John, you got to have a big partner. If you're going to sell servers, you got to be basically with IBM, HP, Dell or Oracle, or you're really not going to sell a lot of these things. Maybe we can ask a question and get them to tease out why they beat out Intel. That would be a good one. Yeah, we really need to explore that. Because I mean, again, my premise is that they're ahead. And I think substantially ahead, so. Well, I wrote a post talking about the processor wars. And you know, as a blogger, you do that.  But mainly what I was trying to tease out was the fact that Don Clark, who's here from the Wall Street Journal, wrote a post that talked about a quote from Steve Jobs, a biography which said that Intel had the inside track for the mobile deal for the iPad, chipset, and you end up going ARM. And Steve, it was known within Silicon Valley that Steve viewed himself as the person that was handed the baton from Dave Packard and from Noise from Intel. So he has a spot in his heart for Intel. So he's actually given them the business to lose. It's theirs to lose and they didn't get it. So it's interesting, ARM is obviously a great mobile product, but now here we go back to servers. Can a mobile architecture really fit in server class architecture? Well, John, you remember back in the 80s when people were looking at PCs and the microprocessor based revolution as just that, toys. And at the time, RISC and SISC dominated the marketplace. HP's own PA risk and IBM's risk were very much the dominant players in the marketplace. Of course, IBM mainframes and look what happened there in a span of 10 to 15 years. Intel now has, according to IDC, 97% of the server shipments of the marketplace. Now, are we predicting something like that with ARM? Well, probably not in the next five or 10 years, but I think there's no question that power and energy consumption are increasingly becoming a greater and greater portion, two things, greater and greater portion of the cost of running these systems. Number two is new applications like Hadoop will be at Hadoop World next week are emerging in analytics and scale out that lend themselves well to these type of low-cost scale-out processors. Yeah, and just crazy, a little plug too for the cubes, look on angle.tv and wikibon.org will be at Hadoop World next week, getting in on Monday for Tuesday and Wednesday, a two-day broadcast for Hadoop World. We'll be on the ground in New York City exploring all the advances in big data. Dave and I, you and I will be there exploring for year two, the cube, and last year, a huge success. So, stay tuned, join us there, siliconangle.tv next Tuesday, the cube. And, you know, the announcement here today is HP is announcing Moonshot, Project Moonshot, which is a new advancements in server architectures using low power and home.