(upbeat music) >> Hello and welcome today's session of the cube presentation of the 80 best startup showcase. The next big thing in security featuring Anitian for the security track. I'm your host John Furrier. We're here with the CEO of Anitian, Rakesh Narasimhan, and Aditya Muppavarapu global segment leader of Dev ops for 80 minutes partner network, Rakesh, Aditya, Thanks for coming on. Appreciate it. >> Thank you very much, John. Pleasure is mine. >> So this is the track session. We're going to get into the, the into the details on the leadership of digital transformation and dev sec ops automation, cloud security and compliance. So let's get started. But first Rakesh, we last talked you guys had some awards, RSA conference, 2021, virtual. You guys got some serious awards. Give us the update. >> Yeah, thank you very much, John. Yeah, we were, you know, humbled to be recognized. You know, industry recognition is always a great thing. We deliver value for customers and the industry is recognizing it. So at the RSA conference, we got seven different awards you know, very excited that we were chosen for, you know publishers choice and security company of the year editor's choice and blood security and heart company in cloud security automation. So really thrilled about the recognition thanks. >> Awesome. Seven awards. I mean, RSA is obviously a show that's in transition itself. They're transforming no longer part of Dell technologies now kind of on their own kind of speaks to the wave we're in. So congratulations on the success. They're hot startup here in security track. Give us a quick overview what you guys are enabling because this transformation is everywhere. It's in every sector, it's in every vertical dev sec ops shifting left, you know day two operations get ops. All. This is all talking to one thing, developer, productivity programmable infrastructure with security. Rakesh give us a quick overview of >> Yeah. Exactly. Right. John, I think there's a big shift happening obviously to the cloud and, you know, affects every one of our lives in productivity in enterprise applications, consumers you name it. There's a huge change happening, but central to that theme is security. And so it's one of the areas we focus on Anitian is the fastest way for both existing and new applications to be developed in the cloud. And so we make sure that you can get there fastest time to value and time to revenue pretty quickly by providing the best secure and compliance environment for you. That's really the core of what we do as a company. And we look forward to helping all of our customers and the industry >> Aditya you're a global segment lead at AWS partner network. You seeing on successful companies, you've got a winner here, obviously a success story. I want to get your take on this because this is a trend in cloud native scale, you know, heart, you know horizontally scalable, large scale, but shifting left, okay. Get ops big topics where code is being inspected in real time. People want automation. So I've got to ask you, what does shift left mean to to being out there and this in the security world? What does that mean? >> So, instead of applying your security and compliance guard rails only in production, we also need to apply them across your application development and delivery cycles. Instead of having one gate that becomes a bottleneck we should have multiple checkpoints at various stages. This provides a fast feedback for the developers while they're still in the context of developing that feature. So it's easier and less expensive fix the issues and what it is not is this doesn't mean you move all your focus to dev and ignore production. It also doesn't mean developers are now responsible for security and you can get rid of your security teams. We needed a process and a mechanism in place to leverage the expertise off the security teams and offer their services to the developers very early on in the development cycles, thereby enabling and empowering developers to write secure and compliant code >> I mean, to me not to put my old school hat on, but it's, you know I think to me, I view it as security at the point of coding right at the point of, I don't want to say point of sale but the point of writing the code and the old days it used to be like a patches and getting updates and provisioned into, into production. Same that kind of concept. But as a developer, that's kind of the focus is getting the latest knowledge either through tools and technologies to make it easier for me as a developer to inject at the point of code. Is that right? >> That's right. Yeah. >> So what makes Anitian so different and what's successful within AWS? That's, what's the why the success there? Can you share with us why they're so unique in AWS? >> So I think the biggest case for that is really you know, security, oftentimes security is thought of as an impediment sometimes actually believe it or not. So the configuration, the management, the deployment all of that, you got to be able to do and you got to be able to do that at scale. The great thing about the cloud at is scale and a big portion of that is automation. So what we at Anitian have done is taken that lifecycle of taking, you know applications on a variety of states. If you will, if you're trying to get to production you're trying to do one of two things. You're either you're trying to get into a compliance standard, like Fed Ramp you want a very predictable process, or you're just trying to get an application secure pretty quickly. So how can you do either one of those things becomes the challenge and we help you do that by having a pre-engineered environment where configuration defining deployment all that becomes very consistent and very predictable which means we've automated it in a way that it can scale. You can sort of almost have this regularly happening and not just one application with multiple applications for any company. That is, I think the biggest obstacle that has happened for a lot of folks in the enterprise for sure, to try to get to production and keep that cycle going continuously. And we help with that in a big way. That's one of the reasons why we're having a lot of adoption customers working with partners of course and getting industry recognition for it. >> Yeah. I mean, this is one of the benefits of cloud. I want to get you guys both reaction to this, where as things get going, it's kind of like that, you're you you got to take advantage. You can take advantage of all these solutions. So how many of his customer, I want to look for solutions that help me move the ball forward, not backwards right? So, or help me move the ball forward without building anything that I don't need or that's already been built. So here it sounds like if I get this right Anitian is saying, Hey if you're an Amazon customer I can accelerate you with Fed Ramp compliance. So you don't have to spend all these cycle times getting ready or hiring or operationalizing it is that right? I mean, is that the value proposition? >> They're very accurate, John. So what happens is, you know, we're working with Amazon web services, who's really innovated quite a bit in building all the building blocks, if you will. And so, you know, we're standing on the shoulders of giants if you will, to basically get the max level of automation and acceleration happen. So that just like customers have gotten used to not having to buy servers, but guide, compute and storage. If you will, now they're able to secure and also become compliant with the services that we offer. That level of acceleration I think is needed. If you believe that there's going to be a lot more cloud applications, lot more cloud. If you're going to achieve scale, you've got to automate. And if you want to automate, but secure as well you need a mechanism to doing that. That's really where Anitian comes in, if you will. >> Yeah. And I think Fedramp to me is just a great low hanging fruit example because everyone wants to get into the public sector market. They know how hard it is. Kind of like, you know, we want to do it, but stand in line we've got to get some resources. I'm not kind of get that. But the question I want to get to you Rakesh and Aditya is the bigger picture, which is, as you said more cloud applications are coming. So customers in the enterprise have, have or are building fast dev ops teams accelerate the security paradigm. How do you help those, those folks? Because that's really kind of where the action's going. The puck is going to go there too. Right? So beyond Fed Ramp there's other things >> Right? So I think, I think the way we approached it is really, there's like at least two different sets of customers, right? In the federal market itself. You just think about a commercial SAS companies who are trying to enter the, the, the, the the public sector market. Well, you need to clear a standard like Fed Ramp. So we're the fastest way to not just complete it but be able to start selling and producing revenue. That'd be market per using that functionality. If you will, to that market. Similarly, there's a lot of public sector organizations who are trying to move to the cloud because they have traditionally developed applications and architectures based on what they've done over the last 20 plus years. Well guess what, they're also trying to migrate. So how do you help both commercial companies as well as public sector companies transition, if you will to the cloud in a secure way, but also meeting a public standard. We're helping both those organizations to do that migration and that journey if you will, but it's premised on with pre-engineered it, it's the fastest way for you to get there for you to be able to provide your capability and functionality to the larger marketplace. That's one of the main reasons why I think the productivity jump is enormously high because that's how you get to larger marketplace, if you will, to serve that market >> Aditya. So they have to change your title from global segment leader, dev ops to dev sec ops 80 of his partner network here with this solution in a way it's kind of becoming standard. >> Yeah. Security is getting him embedded into all of your development and delivery life cycle. So that dev sec Ops is becoming more and more critical with customers migrating to the cloud and modernizing their applications. >> How much has automation playing into this? Because one of the things we're talking about fueling digital transformation is the automation component of the security piece here Rakesh How important is automation and what how do you set yourself up for that to be successful? >> That's big question. I think that the big key to that is automation. I think automation is there in general in the cloud space. People expect it, frankly. But I think that the key thing what we have done is pre-integrated not just our platform but a variety of the partner ecosystem are on AWS. And so when a customer is looking forward to taking an application and going to the cloud they're not just getting functionality from us and AWS but also a lot of partner functionality around it so that they don't have to build it. Remember this discussion we had earlier about how do you jumpstart that? Well, it's, it's, it's really, instead of them having the best of breed assemble we've pre done it for them, which means it's predictable, it's consistent it's configured correctly. They can rely on it. That allows us to be able to help them move faster which means they can go serve larger markets and obviously make money around it. >> Rakesh, I got to follow up on that and ask you specifically around this business model. Obviously cloud has become great service. Everyone kind of knows that and then kind of sees the edge coming next and all these other issues that are going to provide more opportunities. But I got to ask you for your company what industries and business models are you disrupting? >> Yeah, I think primarily to we're a classic example of software eating the world, right? Primarily what happens is most of the folks that certainly in the compliance arena are really trying to figure out how to do it themselves, right? And then that's primarily the group of people who are sort of trying to figure that out. And then there's a class of who do consulting who are trying to consult with you and what you should do. And we have taken a very software oriented approach built on Amazon that we will not only help you fast forward that but also, you know, get you compliant but also keep you compliant because it's a cycle much like in other industries you've seen there used to be a time when people that email and they used to run email servers and ran the email servers and backups and things of that nature that transitioned over time where people procure that service from somebody else. And it's still a secure, it's still a scalable and they can rely on that service without having to be in that business if you will. So we see us disrupting the consulting and do it yourself world to actually providing a dependable service out there that you can rely on for security and compliance. >> Awesome. Aditya, I got to ask you on the Amazon side obviously you see a lot of it there. What are some of the challenges that you see with security? >> One of the main challenges I see that is that the landscape itself is rapidly changing. As customers are migrating to the cloud and modernizing what used to be a simple monolithic application running on a server and a office or a data center is now distributed hybrid and spans across development practices like microservices managed services, packaged applications, et cetera and also in the infrastructure platform choices have dramatically increased to from on-prem to call data centers, to edge computing, IOT VMs containers, serverless a lot more options. All these leads to more complexity and it increased the number of threat vectors exponentially though this advancement was great from a usability perspective. It now created a whole slew of challenges. This, this is complex. It's very hard to keep up. It's not something you set and forget. One needs to make sure you have the right guardrails in place to make sure you're continuously compliant with with your own policies are also with regulatory compliance frameworks that are needed for your business. Like GDPR, PCI, DSS, Nast, HIPAA Sox, Fed Ramp, et cetera >> For Rakesh. We're specifically on the dev ops efficiency with Amazon. What do you guys, what's your top few value proposition points? You say >> Biggest value proposition honestly is keeping and maintaining security while you're in compliance at scale with speed. I think those are big issues for companies. Like if you, if you're a company you're trying to be in the cloud, you want to enter the federal market. For example, you got to get that quickly. So what could take a lot of money? 18 - 24 months, our prawn malleable we've just completely automated back. And so within a quarter, depending on quickly the two organizations can work. We can get you into the marketplace. That that speed is of enormous value to companies. But also to remember that as Aditya pointed out there's a lot of complexity in the kind of architecture that is evolved but we have to feel like people like in the issue of what we can help customers would is as much as you take advantage of all the cloud style architecture providing the simplicity of providing security consistently and providing compliance consistently quickly. I think there'll always be a value for that because people are always trying to get faster and cheaper quicker. And I think we're able to do that. But remember, security is not just about fast. It's got to be secure, right? We got to be effective, not just efficient but I think that's a big value prop that we're able to bring to the table on AWS. >> Well I want to go, I got you here. I'll see what showcasing you guys as the hot startup who is your customer on Amazon? I'll see, you have customers that sell in marketplace for fedramp. That's a huge, that's the people who are in business to sell software but also other enterprises as well. Right? So could you just quickly break down your customers? And then when do they know it's time to call a Anitian? >> Yeah, so we have two large groups of customers. If you will. Certainly the commercial segment, as well as in the public sector and the commercial side, you have lots of companies in the cyber security enterprise collaboration as a little robotic process automation, all those categories of companies in the commercial environment they're trying to enter the public sector federal market to go sell their services. Well, you have to get compliant. We are the fastest path to get you there time to value type of revenue we can accomplish for you. That's a group of customers we, we have in market. And then we have the other side, which is a lot of government agencies who are themselves trying to migrate to the cloud. So if you're trying to get your applications for sure once on hybrid or on-premise, and you're trying to go to the AWS cloud, well, we're a great way for you to have a pre-engineered environment into which you can move in. So not only are you secure it's, pre-built, it can scale to the cloud that you're in front of migrate to. So we have both those particular sites if you will, of the marketplace. And then in market, we have lots of agencies, big and small and the government side, but also all these categories in the commercial side that I mentioned >> For Rakesh, Anitian's helping a lot of companies sell them to the public sector market. How big is the public sector federal market >> Right? Yeah. Billions of dollars. More than $250 billion is what people say but it's a very large market, but, but remember it's any any commercial SAS company who's trying to go into that federal market is a target market. We can help that customer get in into that market. >> And just real quick, their choice alternative to not working with the Anitian is what? months the pain. And what's the heavy lift as Andy Jassy would say the heavy lifting, undifferentiated lifting a lot of paperwork, a lot of hoops to jump through. Good. Can you just paint a picture of the paths with, and without >> There's three key areas that I think customers or, you know companies have to do, A. they have to understand the standard B. They have to really figure out the technology the integration, the partners, and the platform itself. It's a lift to basically get all of that together and then actually produce the documentation produce all the configuration and in a repeatable way. And that's just to get one application up there. Well, guess what? Not only do you need to get that up there you need to keep that compliant. And then our future standards come in. You need to go upgrade to that. So the best way for me to describe that is either you you come to the Anitian and we make that age just a service that is subscribed to to keep you compliant and grow or you can try to build it yourself, or you try to go get consulting companies to tell you what to do. You still have to do the work. So those are your sort of choices, if you will, which is one of the reasons why we're enjoying the growth we are because we're making it easy and productive for for companies to get there faster. >> Aditya, I want to get to you real quick. Obviously AWS partnering, they're also known as APN. You guys see some of the best hot startups. They all kind of have the same pattern like this. They do something that's hard. They make it easier. They go faster, more. Cost-effective what's the pattern in this cloud-scale world as startups. We're going to be featuring, you know, every as much as we can hot startups coming out of your network, there's a pattern here. What would you say? They are? Well as the DevOps obviously cloud native, besides iterate, move faster. What's the pattern you're seeing for the successful companies. >> It's like, like Andy's says, it's figuring out how to continuously reinvent yourself is the key to stay successful in this market. >> Awesome. For Rakesh, real big success. Congratulations on your awards. I got to ask you, we're asking all the, all the companies this question, what is your defining contribution to the future of cloud scale? >> Great question. I think when I think about what can be accomplished in the future, not just in the past, I think cloud is a huge phenomenon that has completely up-ended the architecture for all sorts of things commercial government, you know, consumer and enterprise. If you will, I would think we would be humbly the people who will ensure that lots of B2B companies and government organizations are able to move to the cloud and are able to be secure and compliant because I believe that there'll be more and more of that happening in the cloud. And the more that is available, just like the commercial world is takes advantage of all those features. I feel like public government organizations also can accomplish the same things very quickly because of folks like us, which means you have a larger segment of population that you can support. That's only going to make the planet more successful. I'm a big optimist when it comes to tech. I know there's a lot of folks who would look down upon tech or I'll think about it as not great. I'm a very big optimist around tech improving people's lives. And I think we have our own humble role in enabling that to happen in the security and compliance >> Well, anything, in my opinion I'm really a big fan of your work and your team. Anything that could bring great innovation into the public sector faster and more effective as good win for society. So I think it's a great mission. Thanks for, for sharing and congratulations on your awards and thanks for being part of our 80 best startup showcase. Appreciate it Rakesh thank you >> Thank you. >> Okay. This is the cube coverage of 80 startup showcase. I'm John for your host of the cube. This is the next big thing in security Anitian in the security track. Thanks for watching. (Up beat music)

(upbeat music) >> Welcome to this special cloud virtual event, theCUBE on cloud. This is our continuing editorial series of the most important stories in cloud. We're going to explore the cutting edge most relevant technologies and companies that will impact business and society. We have special guests from Jeff Barr, Michael Liebow, Jerry Chen, Ben Haynes, Michael skulk, Mike Feinstein from AWS all today are presenting the top startups in the AWS ecosystem. This is the AWS showcase of startups. I'm showing with Dave Vellante. Dave great to see you. >> Hey John. Great to be here. Thanks for having me. >> So awesome day today. We're going to feature a 10 grade companies amplitude, auto grid, big ID, cordial Dremio Kong, multicloud, Reltio stardog wire wheel, companies that we've talked to. We've researched. And they're going to present today from 10 for the rest of the day. What's your thoughts? >> Well, John, a lot of these companies were just sort of last decade, they really, were keyer kicker mode, experimentation mode. Now they're well on their way to hitting escape velocity which is very exciting. And they're hitting tens of millions dollars of ARR, many are planning IPO's and it's just it's really great to see what the cloud has enabled and we're going to dig into that very deeply today. So I'm super excited. >> Before we jump into the keynote (mumbles) our non Huff from AWS up on stage Jeremy is the brains behind this program that we're doing. We're going to do this quarterly. Jeremy great to see you, you're in the global startups program at AWS. Your job is to keep the crops growing, keep the startups going and keep the flow of innovation. Thanks for joining us. >> Yeah. Made it to startup showcase day. I'm super excited. And as you mentioned my team the global startup program team, we kind of provide white glove service for VC backed startups and help them with go to market activities. Co-selling with AWS and we've been looking for ways to highlight all the great work they're doing and partnering with you guys has been tremendous. You guys really know how to bring their stories to life. So super excited about all the partner sessions today. >> Well, I really appreciate the vision and working with Amazon this is like truly a bar raiser from theCUBE virtual perspective, using the virtual we can get more content, more flow and great to have you on and bring that the top hot startups around data, data ops. Certainly the most important story in tech is cloud scale with data. You you can't look around and seeing more innovation happening. So I really appreciate the work. Thanks for coming on. >> Yeah, and don't forget, we're making this a quarterly series. So the next one we've already been working on it. The next one is Wednesday, June 16th. So mark your calendars, but super excited to continue doing these showcases with you guys in the future. >> Thanks for coming on Jeremy. I really appreciate it,. Dave so I want to just quick quickly before we get Jeff up here, Jeff Barr who's a luminary guests for us this week who has been in the industry has been there from the beginning of AWS the role of data, and what's happened in cloud. And we've been watching the evolution of Amazon web services from the beginning, from the startup market to dominate in the enterprise. If you look at the top 10 enterprise companies Amazon wasn't on that list in 2010 they weren't even bringing the top 10 Andy Jassy's keynote at reinvent this past year. Highlighted that fact, I think they were number five or four as vendor in just AWS. So interesting to see that you've been reporting and doing a lot of analysis on the role of data. What's your analysis for these startups and as businesses need to embrace the new technologies and be on the right side of history not part of that old guard, incumbent failed model. >> Well, I think again, if you look back on the early days of cloud, it was really about storage and networking and compute infrastructure. And then we collected all this data and now you're seeing the next generation of innovation and value. We're going to talk to Michael Liebow about this is really if you look at all the value points in the leavers, it's all around data and data is going through a massive change in the way that we think about it, that we talk about it. And you hear that a lot. Obviously you talk about the volumes, the giant volumes but there's something else going on as AWS brings the cloud to the edge. And of course it looks at the data centers, just another edge device, data is getting highly decentralized. And what we're seeing is data getting into the hands of business owners and data product builders. I think we're going to see a new parlance emerge and that's where you're seeing the competitive advantage. And if you look at all the real winners these days in the marketplace especially in the digital with COVID, it all comes back to the data. And we're going to talk about that a lot today. >> One of the things that's coming up in all of our cube interviews, certainly we've seen, I mean we've had a great observation space across all the ecosystems, but the clear thing that's coming out of COVID is speed, agility, scale, and data. If you don't have that data you are going to be a non-player. And I think I heard some industry people talking about the future of how the stock market's going to work and that if you're not truly in market with an AI or machine learning data value play you probably will be shorted on the stock market or delisted. I think people are looking at that as a table stakes competitive advantage item, where if you don't have some sort of data competitive strategy you're going to be either delisted or sold short. And that's, I don't think delisted but the point is this table-stakes Dave. >> Well, I think too, I think the whole language the lingua franca of data is changing. We talk about data as an asset all the time, but you think about it now, what do we do with assets? We protect it, we hide it. And we kind of we don't share it. But then on the other hand, everybody talks about sharing the data and that is a huge trend in the marketplace. And so I think that everybody is really starting to rethink the whole concept of data, what it is, its value and how we think about it, talk about it, share it make it accessible, and at the same time, protect it and make it governed. And I think you're seeing, computational governance and automation really hidden. Couldn't do this without the cloud. I mean, that's the bottom line. >> Well, I'm super excited to have Jeff Barr here from AWS as our special keynote guests. I've been following Jeff's career for a long, long time. He's a luminaries, he's a technical, he's in the industry. He's part of the community, he's been there from the beginning AWS just celebrate its 15th birthday as he was blogging hard. He's been a hardcore blogger. I think Jeff, you had one of the original ping service. If I remember correctly, you were part of the web services foundational kind of present at creation. No better guests to have you Jeff thanks for coming up on our stage. >> John and Dave really happy to be here. >> So I got to ask you, you've been blogging hard for the past decade or so, going hard and your job has evolved from blogging about what's new with Amazon. A couple of building blocks a few services to last reinvent them. You must have put out I don't know how many blog posts did you put out last year at every event? I mean, it must have been a zillion. >> Not quite a zillion. I think I personally wrote somewhere between 20 and 25 including quite a few that I did in the month or so run up to reinvent and it's always intense, but it's always really, really fun. >> So I've got to ask you in the past couple of years, I mean I quoted Andy Jassy's keynote where we highlight in 2010 Amazon wasn't even on the top 10 enterprise players. Now in the top five, you've seen the evolution. What is the big takeaway from your standpoint as you look at the enterprise going from Amazon really dominating the start of a year startups today, you're in the cloud, you're born in the cloud. There's advantage to that. Now enterprises are kind of being reborn in the cloud at the same time, they're building these new use cases rejuvenating themselves and having innovation strategy. What's your takeaway? >> So I love to work with our customers and one of the things that I hear over and over again and especially the last year or two is really the value that they're placing on building a workforce that has really strong cloud skills. They're investing in education. They're focusing on this neat phrase that I learned in Australia called upskilling and saying let's take our set of employees and improve their skill base. I hear companies really saying we're going to go cloud first. We're going to be cloud native. We're going to really embrace it, adopt the full set of cloud services and APIs. And I also see that they're really looking at cloud as part of often a bigger picture. They often use the phrase digital transformation, in Amazon terms we'd say they're thinking big. They're really looking beyond where they are and who they are to what they could be and what they could grow into. Really putting a lot of energy and creativity into thinking forward in that way. >> I wonder Jeff, if you could talk about sort of how people are thinking about the future of cloud if you look at where the spending action is obviously you see it in cloud computing. We've seen that as the move to digital, serverless Lambda is huge. If you look at the data it's off the charts, machine learning and AI also up there containers and of course, automation, AWS leads in all of those. And they portend a different sort of programming model a different way of thinking about how to deploy workloads and applications maybe different than the early days of cloud. What's driving that generally and I'm interested in serverless specifically. And how do you see the next several years folding out? >> Well, they always say that the future is the hardest thing to predict but when I talked to our enterprise customers the two really big things that I see is there's this focus that says we need to really, we're not simply like hosting the website or running the MRP. I'm working with one customer in particular where they say, well, we're going to start on the factory floor all the way up to the boardroom effectively from IOT and sensors on the factory floor to feed all the data into machine learning. So they understand that the factory is running really well to actually doing planning and inventory maintenance to putting it on the website to drive the analytics, to then saying, okay, well how do we know that we're building the right product mix? How do we know that we're getting it out through the right channels? How are our customers doing? So they're really saying there's so many different services available to us in the cloud and they're relatively easy and straightforward to deploy. They really don't think in the old days as we talked about earlier that the old days where these multi-year planning and deployment cycles, now it's much more straightforward. It's like let's see what we can do today. And this week and this month, and from idea to some initial results is a much, much shorter turnaround. So they can iterate a lot more quickly which is just always known to produce better results. >> Well, Jeff and the spirit of the 15th birthday of AWS a lot of services have been built from the original three. I believe it was the core building blocks and there's been a lot of history and it's kind of like there was a key decoupling of compute from storage, those innovations what's the most important architectural change if any has happened or built upon those building blocks with AWS that you could share with companies out there as many people are coming into the cloud not just lifting and shifting and having that innovation but really building cloud native and now hybrid full cloud operations, day two operations. However you want to look at it. That's a big thing. What architecturally has changed that's been innovative from those original building blocks? >> Well, I think that the basic architecture has proven to be very, very resilient. When I wrote about the 15 year birthday of Amazon S3 a couple of weeks ago one thing that I thought was really incredible was the fact that the same APIs that you could have used 15 years ago they all still work. The put, the get, the list, the delete, the permissions management, every last one of those were chosen with extreme care. And so they all still work. So one of the things you think about when you put APIs out there is in Amazon terms we always talk about going through a one-way door and a one way door says, once you do it you're committed for the indefinite future. And so you we're very happy to do that but we take those steps with extreme care. And so those basic building blocks so the original S3 APIs, the original EC2 APIs and the model, all those things really worked. But now they're running at this just insane scale. One thing that blows me away I routinely hear my colleagues talking about petabytes and exabytes, and we throw around trillions and quadrillions like they're pennies. It's kind of amazing. Sometimes when you hear the scale of requests per day or request per month, and the orders of magnitude are you can't map them back to reality anymore. They're simply like literally astronomical. >> If I can just jump in real quick Dave before you ask Jeff, I was watching the Jeff Bezos interview in 1999 that's been going around on LinkedIn in a 60 minutes interview. The interviewer says you are reporting that you can store a gigabyte of customer data from all their purchases. What are you going to do with that? He basically nailed the answer. This is in 99. We're going to use that data to create, that was only a gig. >> Well one of the things that is interesting to me guys, is if you look at again, the early days of cloud, of course I always talked about that in small companies like ours John could have now access to information technology that only big companies could get access to. And now you've seen we just going to talk about it today. All these startups rise up and reach viability. But at the same time, Jeff you've seen big companies get the aha moment on cloud and competition drives urgency and that drives innovation. And so now you see everybody is doing cloud, it's a mandate. And so the expectation is a lot more innovation, experimentation and speed from all ends. It's really exciting to see. >> I know this sounds hackneyed and overused but it really, really still feels just like day one. We're 15 plus years into this. I still wake up every morning, like, wow what is the coolest thing that I'm going to get to learn about and write about today? We have the most amazing customers, one of the things that is great when you're so well connected to your customers, they keep telling you about their dreams, their aspirations, their use cases. And we can just take that and say we can actually build awesome things to help you address those use cases from the ground on up, from building custom hardware things like the nitro system, the graviton to the machine learning inferencing and training chips where we have such insight into customer use cases because we have these awesome customers that we can make these incredible pieces of hardware and software to really address those use cases. >> I'm glad you brought that up. This is another big change, right? You're getting the early days of cloud like, oh, Amazon they're just using off the shelf components. They're not buying these big refrigerator sized disc drives. And now you're developing all this custom Silicon and vertical integration in certain aspects of your business. And that's because workload is demanding. You've got to get more specialized in a lot of cases. >> Indeed they do. And if you watch Peter DeSantis' keynote at re-invent he talked about the fact that we're researching ways to make better cement that actually produces less carbon dioxide. So we're now literally at the from the ground on up level of construction. >> Jeff, I want to get a question from the crowd here. We got, (mumbles) who's a good friend of theCUBE cloud Arate from the beginning. He asked you, he wants to know if you'd like to share Amazon's edge aspirations. He says, he goes, I mean, roadmaps. I go, first of all, he's not going to talk about the roadmaps, but what can you share? I mean, obviously the edge is key. Outpost has been all in the news. You obviously at CloudOps is not a boundary. It's a distributed network. What's your response to-- >> Well, the funny thing is we don't generally have technology roadmaps inside the company. The roadmap is always listen really well to customers not just where they are, but the customers are just so great at saying, this is where we'd like to go. And when we hear edge, the customers don't generally come to us and say edge, they say we need as low latency as possible between where the action happens within our factory floors and our own offices and where we might be able to compute, analyze, store make decisions. And so that's resulted in things like outposts where we can put outposts in their own data center or their own field office, wavelength, where we're working with 5G telecom providers to put computing storage in the carrier hubs of the various 5G providers. Again, with reducing latency, we've been doing things like local zones, where we put zones in an increasing number of cities across the country with the goal of just reducing the average latency between the vast majority of customers and AWS resources. So instead of thinking edge, we really think in terms of how do we make sure that our customers can realize their dreams. >> Staying on the flywheel that AWS has built on ship stuff faster, make things faster, smaller, cheaper, great mission. I want to ask you about the working backwards document. I know it's been getting a lot of public awareness. I've been, that's all I've learned in interviewing Amazon folks. They always work backwards. I always mentioned the customer and all the interviews. So you've got a couple of customer references in there check the box there for you. But working backwards has become kind of a guiding principles, almost like a Harvard Business School case study approach to management. As you guys look at this working backwards and ex Amazonians have written books about it now so people can go look at, it's a really good methodology. Take us back to how you guys work back from the customers because here we're featuring 10 startups. So companies that are out there and Andy has been preaching this to customers. You should think about working backwards because it's so fast. These companies are going into this enterprise market your ecosystem of startups to provide value. What things are you seeing that customers need to think about to work backwards from their customer? How do you see that? 'Cause you've been on the community side, you see the tech side customers have to move fast and work backwards. What are the things that they need to focus on? What's your observation? >> So there's actually a brand new book called "Working Backwards," which I actually learned a lot about our own company from simply reading the book. And I think to me, a principal part of learning backward it's really about humility and being able to be a great listener. So you don't walk into a customer meeting ready to just broadcast the latest and greatest that we've been working on. You walk in and say, I'm here from AWS and I simply want to learn more about who you are, what you're doing. And most importantly, what do you want to do that we're not able to help you with right now? And then once we hear those kinds of things we don't simply write down kind of a bullet item of AWS needs to improve. It's this very active listening process. Tell me a little bit more about this challenge and if we solve it in this way or this way which one's a better fit for your needs. And then a typical AWS launch, we might talk to between 50 and 100 customers in depth to make sure that we have that detailed understanding of what they would like to do. We can't always meet all the needs of these customers but the idea is let's see what is the common base that we can address first. And then once we get that first iteration out there, let's keep listening, let's keep making it better and better and better as quickly. >> A lot of people might poopoo that John but I got to tell you, John, you will remember this the first time we ever met Andy Jassy face-to-face. I was in the room, you were on the speaker phone. We were building an app on AWS at the time. And he was asking you John, for feedback. And he was probing and he pulled out his notebook. He was writing down and he wasn't just superficial questions. He was like, well, why'd you do it that way? And he really wanted to dig. So this is cultural. >> Yeah. I mean, that's the classic Amazon. And that's the best thing about it is that you can go from zero startups zero stage startup to traction. And that was the premise of the cloud. Jeff, I want to get your thoughts and commentary on this love to get your opinion. You've seen this grow from the beginning. And I remember 'cause I've been playing with AWS since the beginning as well. And it says as an entrepreneur I remember my first EC2 instance that didn't even have custom domain support. It was the long URL. You seen the startups and now that we've been 15 years in, you see Dropbox was it just a startup back in the day. I remember these startups that when they were coming they were all born on Amazon, right? These big now unicorns, you were there when these guys were just developers and these gals. So what's it like, I mean, you see just the growth like here's a couple of people with them ideas rubbing nickels together, making magic happen who knows what's going to turn into, you've been there. What's it been like? >> It's been a really unique journey. And to me like the privilege of a lifetime, honestly I've like, you always want to be part of something amazing and you aspire to it and you study hard and you work hard and you always think, okay, somewhere in this universe something really cool is about to happen. And if you're really, really lucky and just a million great pieces of luck like lineup in series, sometimes it actually all works out and you get to be part of something like this when it does you don't always fully appreciate just how awesome it is from the inside, because you're just there just like feeding the machine and you are just doing your job just as fast as you possibly can. And in my case, it was listening to teams and writing blog posts about their launches and sharing them on social media, going out and speaking, you do it, you do it as quickly as possible. You're kind of running your whole life as you're doing that as well. And suddenly you just take a little step back and say, wow we did this kind of amazing thing, but we don't tend to like relax and say, okay, we've done it at Amazon. We get to a certain point. We recognize it. And five minutes later, we're like, okay, let's do the next amazingly good thing. But it's been this just unique privilege and something that I never thought I'd be fortunate enough to be a part of. >> Well, then the last few minutes we have Jeff I really appreciate you taking the time to spend with us for this inaugural launch of theCUBE on cloud startup showcase. We are showcasing 10 startups here from your ecosystem. And a lot of people who know AWS for the folks that don't you guys pride yourself on community and ecosystem the global startups program that Jeremy and his team are running. You guys nurture these startups. You want them to be successful. They're vectoring out into the marketplace with growth strategy, helping customers. What's your take on this ecosystem? As customers are out there listening to this what's your advice to them? How should they engage? Why is these sets of start-ups so important? >> Well, I totally love startups and I've spent time in several startups. I've spent other time consulting with them. And I think we're in this incredible time now wheres, it's so easy and straightforward to get those basic resources, to get your compute, to get your storage, to get your databases, to get your machine learning and to take that and to really focus on your customers and to build what you want. And we see this actual exponential growth. And we see these startups that find something to do. They listen to one of their customers, they build that solution. And they're just that feedback cycle gets started. It's really incredible. And I love to see the energy of these startups. I love to hear from them. And at any point if we've got an AWS powered startup and they build something awesome and want to share it with me, I'm all ears. I love to hear about them. Emails, Twitter mentions, whatever I'll just love to hear about all this energy all those great success with our startups. >> Jeff Barr, thank you for coming on. And congratulations, please pass on to Andy Jassy who's going to take over for Jeff Bezos and I saw the big news that he's picking a successor an Amazonian coming back into the fold, Adam. So congratulations on that. >> I will definitely pass on your congratulations to Andy and I worked with Adam in the past when AWS was just getting started and really looking forward to seeing him again, welcoming back and working with him. >> All right, Jeff Barr with AWS guys check out his Twitter and all the social coordinates. He is pumping out all the resources you need to know about if you're a developer or you're an enterprise looking to go to the next level, next generation, modern infrastructure. Thanks Jeff for coming on. Really appreciate it. Our next guests want to bring up stage Michael Liebow from McKinsey cube alumni, who is a great guest who is very timely in his McKinsey role with a paper he and his colleagues put out called cloud's trillion dollar prize up for grabs. Michael, thank you for coming up on stage with Dave and I. >> Hey, great to be here, John. Thank you. >> One of the things I loved about this and why I wanted you to come on was not only is the report awesome. And Dave has got a zillion questions, he want us to drill into. But in 2015, we wrote a story called Andy Jassy trillion dollar baby on Forbes, and then on medium and silken angle where we were the first ones to profile Andy Jassy and talk about this trillion dollar term. And Dave came up with the calculation and people thought we were crazy. What are you talking about trillion dollar opportunity. That was in 2015. You guys have put this together with a serious research report with methodology and you left a lot on the table. I noticed in the report you didn't even have a whole section quantified. So I think just scratching the surface trillion. I'd be a little light, Dave, so let's dig into it, Michael thanks for coming on. >> Well, and I got to say, Michael that John's a trillion dollar baby was revenue. Yours is EBITDA. So we're talking about seven to X, seven to eight X. What we were talking back then, but great job on the report. Fantastic work. >> Thank you. >> So tell us about the report gives a quick lowdown. I got some questions. You guys are unlocking the value drivers but give us a quick overview of this report that people can get for free. So everyone who's registered will get a copy but give us a quick rundown. >> Great. Well the question I think that has bothered all of us for a long time is what's the business value of cloud and how do you quantify it? How do you specify it? Because a lot of people talk around the infrastructure or technical value of cloud but that actually is a big problem because it just scratches the surface of the potential of what cloud can mean. And we focus around the fortune 500. So we had to box us in somewhat. And so focusing on the fortune 500 and fast forwarding to 2030, we put out this number that there's over a trillion dollars worth of value. And we did a lot of analysis using research from a variety of partners, using third-party research, primary research in order to come up with this view. So the business value is two X the technical value of cloud. And as you just pointed out, there is a whole unlock of additional value where organizations can pioneer on some of the newest technologies. And so AWS and others are creating platforms in order to do not just machine learning and analytics and IOT, but also for quantum or mixed reality for blockchain. And so organizations specific around the fortune 500 that aren't leveraging these capabilities today are going to get left behind. And that's the message we were trying to deliver that if you're not doing this and doing this with purpose and with great execution, that others, whether it's others in your industry or upstarts who were motioning into your industry, because as you say cloud democratizes compute, it provides these capabilities and small companies with talent. And that's what the skills can leverage these capabilities ahead of slow moving incumbents. And I think that was the critical component. So that gives you the framework. We can deep dive based on your questions. >> Well before we get into the deep dive, I want to ask you we have startups being showcased here as part of the, it will showcase, they're coming out of the ecosystem. They have a lot of certification from Amazon and they're secure, which is a big issue. Enterprises that you guys talk to McKinsey speaks directly to I call the boardroom CXOs, the top executives. Are they realizing that the scale and timing of this agility window? I mean, you want to go through these key areas that you would break out but as startups become more relevant the boardrooms that are making these big decisions realize that their businesses are up for grabs. Do they realize that all this wealth is shifting? And do they see the role of startups helping them? How did you guys come out of them and report on that piece? >> Well in terms of the whole notion, we came up with this framework which looked at the opportunity. We talked about it in terms of three dimensions, rejuvenate, innovate and pioneer. And so from the standpoint of a board they're more than focused on not just efficiency and cost reduction basically tied to nation, but innovation tied to analytics tied to machine learning, tied to IOT, tied to two key attributes of cloud speed and scale. And one of the things that we did in the paper was leverage case examples from across industry, across-region there's 17 different case examples. My three favorite is one is Moderna. So software for life couldn't have delivered the vaccine as fast as they did without cloud. My second example was Goldman Sachs got into consumer banking is the platform behind the Apple card couldn't have done it without leveraging cloud. And the third example, particularly in early days of the pandemic was Zoom that added five to 6,000 servers a night in order to scale to meet the demand. And so all three of those examples, plus the other 14 just indicate in business terms what the potential is and to convince boards and the C-suite that if you're not doing this, and we have some recommendations in terms of what CEOs should do in order to leverage this but to really take advantage of those capabilities. >> Michael, I think it's important to point out the approach at sometimes it gets a little wonky on the methodology but having done a lot of these types of studies and observed there's a lot of superficial studies out there, a lot of times people will do, they'll go I'll talk to a customer. What kind of ROI did you get? And boom, that's the value study. You took a different approach. You have benchmark data, you talked to a lot of companies. You obviously have a lot of financial data. You use some third-party data, you built models, you bounded it. And ultimately when you do these things you have to ascribe a value contribution to the cloud component because fortunate 500 companies are going to grow even if there were no cloud. And the way you did that is again, you talk to people you model things, and it's a very detailed study. And I think it's worth pointing out that this was not just hey what'd you get from going to cloud before and after. This was a very detailed deep dive with really a lot of good background work going into it. >> Yeah, we're very fortunate to have the McKinsey Global Institute which has done extensive studies in these areas. So there was a base of knowledge that we could leverage. In fact, we looked at over 700 use cases across 19 industries in order to unpack the value that cloud contributed to those use cases. And so getting down to that level of specificity really, I think helps build it from the bottom up and then using cloud measures or KPIs that indicate the value like how much faster you can deploy, how much faster you can develop. So these are things that help to kind of inform the overall model. >> Yeah. Again, having done hundreds, if not thousands of these types of things, when you start talking to people the patterns emerge, I want to ask you there's an exhibit tool in here, which is right on those use cases, retail, healthcare, high-tech oil and gas banking, and a lot of examples. And I went through them all and virtually every single one of them from a value contribution standpoint the unlocking value came down to data large data sets, document analysis, converting sentiment analysis, analytics. I mean, it really does come down to the data. And I wonder if you could comment on that and why is it that cloud is enabled that? >> Well, it goes back to scale. And I think the word that I would use would be data gravity because we're talking about massive amounts of data. So as you go through those kind of three dimensions in terms of rejuvenation one of the things you can do as you optimize and clarify and build better resiliency the thing that comes into play I think is to have clean data and data that's available in multiple places that you can create an underlying platform in order to leverage the services, the capabilities around, building out that structure. >> And then if I may, so you had this again I want to stress as EBITDA. It's not a revenue and it's the EBITDA potential as a result of leveraging cloud. And you listed a number of industries. And I wonder if you could comment on the patterns that you saw. I mean, it doesn't seem to be as simple as Negroponte bits versus Adam's in terms of your ability to unlock value. What are the patterns that you saw there and why are the ones that have so much potential why are they at the top of the list? >> Well, I mean, they're ranked based on impact. So the five greatest industries and again, aligned by the fortune 500. So it's interesting when you start to unpack it that way high-tech oil, gas, retail, healthcare, insurance and banking, right? Top. And so we did look at the different solutions that were in that, tried to decipher what was fully unlocked by cloud, what was accelerated by cloud and what was perhaps in this timeframe remaining on premise. And so we kind of step by step, expert by expert, use case by use case deciphered of the 700, how that applied. >> So how should practitioners within organizations business but how should they use this data? What would you recommend, in terms of how they think about it, how they apply it to their business, how they communicate? >> Well, I think clearly what came out was a set of best practices for what organizations that were leveraging cloud and getting the kind of business return, three things stood out, execution, experience and excellence. And so for under execution it's not just the transaction, you're not just buying cloud you're changing their operating model. And so if the organization isn't kind of retooling the model, the processes, the workflows in order to support creating the roles then they aren't going to be able, they aren't going to be successful. In terms of experience, that's all about hands-on. And so you have to dive in, you have to start you have to apply yourself, you have to gain that applied knowledge. And so if you're not gaining that experience, you're not going to move forward. And then in terms of excellence, and it was mentioned earlier by Jeff re-skilling, up-skilling, if you're not committed to your workforce and pushing certification, pushing training in order to really evolve your workforce or your ways of working you're not going to leverage cloud. So those three best practices really came up on top in terms of what a mature cloud adopter looks like. >> That's awesome. Michael, thank you for coming on. Really appreciate it. Last question I have for you as we wrap up this trillion dollar segment upon intended is the cloud mindset. You mentioned partnering and scaling up. The role of the enterprise and business is to partner with the technologists, not just the technologies but the companies talk about this cloud native mindset because it's not just lift and shift and run apps. And I have an IT optimization issue. It's about innovating next gen solutions and you're seeing it in public sector. You're seeing it in the commercial sector, all areas where the relationship with partners and companies and startups in particular, this is the startup showcase. These are startups are more relevant than ever as the tide is shifting to a new generation of companies. >> Yeah, so a lot of think about an engine. A lot of things have to work in order to produce the kind of results that we're talking about. Brad, you're more than fair share or unfair share of trillion dollars. And so CEOs need to lead this in bold fashion. Number one, they need to craft the moonshot or the Marshot. They have to set that goal, that aspiration. And it has to be a stretch goal for the organization because cloud is the only way to enable that achievement of that aspiration that's number one, number two, they really need a hardheaded economic case. It has to be defined in terms of what the expectation is going to be. So it's not loose. It's very, very well and defined. And in some respects time box what can we do here? I would say the cloud data, your organization has to move in an agile fashion training DevOps, and the fourth thing, and this is where the startups come in is the cloud platform. There has to be an underlying platform that supports those aspirations. It's an art, it's not just an architecture. It's a living, breathing live service with integrations, with standardization, with self service that enables this whole program. >> Awesome, Michael, thank you for coming on and sharing the McKinsey perspective. The report, the clouds trillion dollar prize is up for grabs. Everyone who's registered for this event will get a copy. We will appreciate it's also on the website. We'll make sure everyone gets a copy. Thanks for coming, I appreciate it. Thank you. >> Thanks, Michael. >> Okay, Dave, big discussion there. Trillion dollar baby. That's the cloud. That's Jassy. Now he's going to be the CEO of AWS. They have a new CEO they announced. So that's going to be good for Amazon's kind of got clarity on the succession to Jassy, trusted soldier. The ecosystem is big for Amazon. Unlike Microsoft, they have the different view, right? They have some apps, but they're cultivating as many startups and enterprises as possible in the cloud. And no better reason to change gears here and get a venture capitalist in here. And a friend of theCUBE, Jerry Chen let's bring them up on stage. Jerry Chen, great to see you partner at Greylock making all the big investments. Good to see you >> John hey, Dave it's great to be here with you guys. Happy marks.Can you see that? >> Hey Jerry, good to see you man >> So Jerry, our first inaugural AWS startup showcase we'll be doing these quarterly and we're going to be featuring the best of the best, you're investing in all the hot startups. We've been tracking your careers from the beginning. You're a good friend of theCUBE. Always got great commentary. Why are startups more important than ever before? Because in the old days we've talked about theCUBE before startups had to go through certain certifications and you've got tire kicking, you got to go through IT. It's like going through security at the airport, take your shoes off, put your belt on thing. I mean, all kinds of things now different. The world has changed. What's your take? >> I think startups have always been a great way for experimentation, right? It's either new technologies, new business models, new markets they can move faster, the experiment, and a lot of startups don't work, unfortunately, but a lot of them turned to be multi-billion dollar companies. I thing startup is more important because as we come out COVID and economy is recovery is a great way for individuals, engineers, for companies for different markets to try different things out. And I think startups are running multiple experiments at the same time across the globe trying to figure how to do things better, faster, cheaper. >> And McKinsey points out this use case of rejuvenate, which is essentially retool pivot essentially get your costs down or and the next innovation here where there's Tam there's trillion dollars on unlock value and where the bulk of it is is the innovation, the new use cases and existing new use cases. This is where the enterprises really have an opportunity. Could you share your thoughts as you invest in the startups to attack these new waves these new areas where it may not look the same as before, what's your assessment of this kind of innovation, these new use cases? >> I think we talked last time about kind of changing the COVID the past year and there's been acceleration of things like how we work, education, medicine all these things are going online. So I think that's very clear. The first wave of innovation is like, hey things we didn't think we could be possible, like working remotely, e-commerce everywhere, telemedicine, tele-education, that's happening. I think the second order of fact now is okay as enterprises realize that this is the new reality everything is digital, everything is in the cloud and everything's going to be more kind of electronic relation with the customers. I think that we're rethinking what does it mean to be a business? What does it mean to be a bank? What does it mean to be a car company or an energy company? What does it mean to be a retailer? Right? So I think the rethinking that brands are now global, brands are all online. And they now have relationships with the customers directly. So I think if you are a business now, you have to re experiment or rethink about your business model. If you thought you were a Nike selling shoes to the retailers, like half of Nike's revenue is now digital right all online. So instead of selling sneakers through stores they're now a direct to consumer brand. And so I think every business is going to rethink about what the AR. Airbnb is like are they in the travel business or the experience business, right? Airlines, what business are they in? >> Yeah, theCUBE we're direct to consumer virtual totally opened up our business model. Dave, the cloud premise is interesting now. I mean, let's reset this where we are, right? Andy Jassy always talks about the old guard, new guard. Okay we've been there done that, even though they still have a lot of Oracle inside AWS which we were joking the other day, but this new modern era coming out of COVID Jerry brings this up. These startups are going to be relevant take territory down in the enterprises as new things develop. What's your premise of the cloud and AWS prospect? >> Well, so Jerry, I want to to ask you. >> Jerry: Yeah. >> The other night, last Thursday, I think we were in Clubhouse. Ben Horowitz was on and Martine Casado was laying out this sort of premise about cloud startups saying basically at some point they're going to have to repatriate because of the Amazon VIG. I mean, I'm paraphrasing and I guess the premise was that there's this variable cost that grows as you scale but I kind of shook my head and I went back. You saw, I put it out on Twitter a clip that we had the a couple of years ago and I don't think, I certainly didn't see it that way. Maybe I'm getting it wrong but what's your take on that? I just don't see a snowflake ever saying, okay we're going to go build our own data center or we're going to repatriate 'cause they're going to end up like service now and have this high cost infrastructure. What do you think? >> Yeah, look, I think Martin is an old friend from VMware and he's brilliant. He has placed a lot of insights. There is some insights around, at some point a scale, use of startup can probably run things more cost-effectively in your own data center, right? But I think that's fewer companies more the vast majority, right? At some point, but number two, to your point, Dave going on premise versus your own data center are two different things. So on premise in a customer's environment versus your own data center are two different worlds. So at some point some scale, a lot of the large SaaS companies run their own data centers that makes sense, Facebook and Google they're at scale, they run their own data centers, going on premise or customer's environment like a fortune 100 bank or something like that. That's a different story. There are reasons to do that around compliance or data gravity, Dave, but Amazon's costs, I don't think is a legitimate reason. Like if price is an issue that could be solved much faster than architectural decisions or tech stacks, right? Once you're on the cloud I think the thesis, the conversation we had like a year ago was the way you build apps are very different in the cloud and the way built apps on premise, right? You have assume storage, networking and compute elasticity that's independent each other. You don't really get that in a customer's data center or their own environment even with all the new technologies. So you can't really go from cloud back to on-premise because the way you build your apps look very, very different. So I would say for sure at some scale run your own data center that's why the hyperscale guys do that. On-premise for customers, data gravity, compliance governance, great reasons to go on premise but for vast majority of startups and vast majority of customers, the network effects you get for being in the cloud, the network effects you get from having everything in this alas cloud service I think outweighs any of the costs. >> I couldn't agree more and that's where the data is, at the way I look at it is your technology spend is going to be some percentage of revenue and it's going to be generally flat over time and you're going to have to manage it whether it's in the cloud or it's on prem John. >> Yeah, we had a quote on theCUBE on the conscious that had Jerry I want to get your reaction to this. The executive said, if you don't have an AI strategy built into your value proposition you will be shorted as a stock on wall street. And I even went further. So you'll probably be delisted cause you won't be performing with a tongue in cheek comment. But the reality is that that's indicating that everyone has to have AI in their thing. Mainly as a reality, what's your take on that? I know you've got a lot of investments in this area as AI becomes beyond fashion and becomes table stakes. Where are we on that spectrum? And how does that impact business and society as that becomes a key part of the stack and application stack? >> Yeah, I think John you've seen AI machine learning turn out to be some kind of novelty thing that a bunch of CS professors working on years ago to a funnel piece of every application. So I would say the statement of the sentiment's directionally correct that 20 years ago if you didn't have a web strategy or a website as a company, your company be sure it, right? If you didn't have kind of a internet website, you weren't real company. Likewise, if you don't use AI now to power your applications or machine learning in some form or fashion for sure you'd be at a competitive disadvantage to everyone else. And just like if you're not using software intelligently or the cloud intelligently your stock as a company is going to underperform the rest of the market. And the cloud guys on the startups that we're backing are making AI so accessible and so easy for developers today that it's really easy to use some level of machine learning, any applications, if you're not doing that it's like not having a website in 1999. >> Yeah. So let's get into that whole operation side. So what would you be your advice to the enterprises that are watching and people who are making decisions on architecture and how they roll out their business model or value proposition? How should they look at AI and operations? I mean big theme is day two operations. You've got IT service management, all these things are being disrupted. What's the operational impact to this? What's your view on that? >> So I think two things, one thing that you and Dave both talked about operation is the key, I mean, operations is not just the guts of the business but the actual people running the business, right? And so we forget that one of the values are going to cloud, one of the values of giving these services is you not only have a different technology stack, all the bits, you have a different human stack meaning the people running your cloud, running your data center are now effectively outsource to Amazon, Google or Azure, right? Which I think a big part of the Amazon VIG as Dave said, is so eloquently on Twitter per se, right? You're really paying for those folks like carry pagers. Now take that to the next level. Operations is human beings, people intelligently trying to figure out how my business can run better, right? And that's either accelerate revenue or decrease costs, improve my margin. So if you want to use machine learning, I would say there's two areas to think about. One is how I think about customers, right? So we both talked about the amount of data being generated around enterprise individuals. So intelligently use machine learning how to serve my customers better, then number two AI and machine learning internally how to run my business better, right? Can I take cost out? Can I optimize supply chain? Can I use my warehouses more efficiently my logistics more efficiently? So one is how do I use AI learning to be a more familiar more customer oriented and number two, how can I take cost out be more efficient as a company, by writing AI internally from finance ops, et cetera. >> So, Jerry, I wonder if I could ask you a little different subject but a question on tactical valuations how coupled or decoupled are private company valuations from the public markets. You're seeing the public markets everybody's freaking out 'cause interest rates are going to go up. So the future value of cash flows are lower. Does that trickle in quickly into the private markets? Or is it a whole different dynamic? >> If I could weigh in poly for some private markets Dave I would have a different job than I do today. I think the reality is in the long run it doesn't matter as much as long as you're investing early. Now that's an easy answer say, boats have to fall away. Yes, interest rates will probably go up because they're hard to go lower, right? They're effectively almost zero to negative right now in most of the developed world, but at the end of the day, I'm not going to trade my Twilio shares or Salesforce shares for like a 1% yield bond, right? I'm going to hold the high growth tech stocks because regardless of what interest rates you're giving me 1%, 2%, 3%, I'm still going to beat that with a top tech performers, Snowflake, Twilio Hashi Corp, bunch of the private companies out there I think are elastic. They're going to have a great 10, 15 year run. And in the Greylock portfolio like the things we're investing in, I'm super bullish on from Roxanne to Kronos fear, to true era in the AI space. I think in the long run, next 10 years these things will outperform the market that said, right valuation prices have gone up and down and they will in our careers, they have. In the careers we've been covering tech. So I do believe that they're high now they'll come down for sure. Will they go back up again? Definitely, right? But as long as you're betting these macro waves I think we're all be good. >> Great answer as usual. Would you trade them for NFTs Jerry? >> That $69 million people piece of artwork look, I mean, I'm a longterm believer in kind of IP and property rights in the blockchain, right? And I'm waiting for theCUBE to mint this video as the NFT, when we do this guys, we'll mint this video's NFT and see how much people pay for the original Dave, John, Jerry (mumbles). >> Hey, you know what? We can probably get some good bang for that. Hey it's all about this next Jerry. Jerry, great to have you on, final question as we got this one minute left what's your advice to the people out there that either engaging with these innovative startups, we're going to feature startups every quarter from the in the Amazon ecosystem, they are going to be adding value. What's the advice to the enterprises that are engaging startups, the approach, posture, what's your advice. >> Yeah, when I talk to CIOs and large enterprises, they often are wary like, hey, when do I engage a startup? How, what businesses, and is it risky or low risk? Now I say, just like any career managing, just like any investment you're making in a big, small company you should have a budget or set of projects. And then I want to say to a CIO, Hey, every priority on your wish list, go use the startup, right? I mean, that would be 10 for 10 projects, 10 startups. Probably too much risk for a lot of tech companies. But we would say to most CIOs and executives, look, there are strategic initiatives in your business that you want to accelerate. And I would take the time to invest in one or two startups each quarter selectively, right? Use the time, focus on fewer startups, go deep with them because we can actually be game changers in terms of inflecting your business. And what I mean by that is don't pick too many startups because you can't devote the time, but don't pick zero startups because you're going to be left behind, right? It'd be shorted as a stock by the John, Dave and Jerry hedge fund apparently but pick a handful of startups in your strategic areas, in your top tier three things. These really, these could be accelerators for your career. >> I have to ask you real quick while you're here. We've got a couple minutes left on startups that are building apps. I've seen DevOps and the infrastructure as code movement has gone full mainstream. That's really what we're living right now. That kind of first-generation commercialization of DevOps. Now DevSecOps, what are the trends that you've seen that's different from say a couple of years ago now that we're in COVID around how apps are being built? Is it security? Is it the data integration? What can you share as a key app stack impact (mumbles)? >> Yeah, I think there're two things one is security is always been a top priority. I think that was the only going forward period, right? Security for sure. That's why you said that DevOps, DevSecOps like security is often overlooked but I think increasingly could be more important. The second thing is I think we talked about Dave mentioned earlier just the data around customers, the data on premise or the cloud, and there's a ton of data out there. We keep saying this over and over again like data's new oil, et cetera. It's evolving and not changing because the way we're using data finding data is changing in terms of sources of data we're using and discovering and also speed of data, right? In terms of going from Basser real-time is changing. The speed of business has changed to go faster. So I think these are all things that we're thinking about. So both security and how you use your data faster and better. >> Yeah you were in theCUBE a number of years ago and I remember either John or I asked you about you think Amazon is going to go up the stack and start developing applications and your answer was you know what I think no, I think they're going to enable a new set of disruptors to come in and disrupt the SaaS world. And I think that's largely playing out. And one of the interesting things about Adam Selipsky appointment to the CEO, he comes from Tableau. He really helped Tableau go from that sort of old guard model to an ARR model obviously executed a great exit to Salesforce. And now I see companies like Salesforce and service now and Workday is potential for your scenario to really play out. They've got in my view anyway, outdated pricing models. You look at what's how Snowflake's pricing and the consumption basis, same with Datadog same with Stripe and new startups seem to really be a leading into the consumption-based pricing model. So how do you, what are your thoughts on that? And maybe thoughts on Adam and thoughts on SaaS disruption? >> I think my thesis still holds that. I don't think Selipsky Adam is going to go into the app space aggressively. I think Amazon wants to enable next generation apps and seeing some of the new service that they're doing is they're kind of deconstructing apps, right? They're deconstructing the parts of CRM or e-commerce and they're offering them as services. So I think you're going to see Amazon continue to say, hey we're the core parts of an app like payments or custom prediction or some machine learning things around applications you want to buy bacon, they're going to turn those things to the API and sell those services, right? So you look at things like Stripe, Twilio which are two of the biggest companies out there. They're not apps themselves, they're the components of the app, right? Either e-commerce or messaging communications. So I can see Amazon going down that path. I think Adam is a great choice, right? He was a longterm early AWS exact from the early days latent to your point Dave really helped take Tableau into kind of a cloud business acquired by Salesforce work there for a few years under Benioff the guy who created quote unquote cloud and now him coming home again and back to Amazon. So I think it'll be exciting to see how Adam runs the business. >> And John I think he's the perfect choice because he's got operations chops and he knows how to... He can help the startups disrupt. >> Yeah, and he's been a trusted soldier of Jassy from the beginning, he knows the DNA. He's got some CEO outside experience. I think that was the key he knows. And he's not going to give up Amazon speed, but this is baby, right? So he's got him in charge and he's a trusted lieutenant. >> You think. Yeah, you think he's going to hold the mic? >> Yeah. We got to go. Jerry Chen thank you very much for coming on. Really appreciate it. Great to see you. Thanks for coming on our inaugural cube on cloud AWS startup event. Now for the 10 startups, enjoy the sessions at 12:30 Pacific, we're going to have the closing keynote. I'm John Ferry for Dave Vellante and our special guests, thanks for watching and enjoy the rest of the day and the 10 startups. (upbeat music)