(upbeat music) >> Welcome back to "theCube's" coverage of Mobile World Congress 2021. We're here in person and remote. This is a physical and virtual. It's a hybrid event, and "theCube's" got wall-to-wall coverage. I'm John Furrier, your host of "theCube." We've got a great guest here, Adolfo Hernandez, Vice-President, Global Telco Business Unit for Amazon Web Services, AWS. Adolfo, thank you for coming on remotely for this virtual hybrid Mobile World Congress. >> Thanks for having me, John, exciting. >> You have an impressive background in telecom industry. Over the years the technology industry has been great innovation. We've seen, I mean, how many Gs have been we've gone through, but I remember the days when wifi wasn't even around. So (laughing) You got a complete change in the past couple decades. This year, more than ever with the pandemic coming through this, you're starting to see some clear visibility on the trends, and also, this is the first Mobile World Congress in person since 2019, so a lot has changed. What is your view on the marketplace, and what is your message you're telling the telecom industry from Amazon's and your perspective? What do you see? >> Yeah, you're absolutely right, John. This is a fascinating time to be on the cloud, to be at Mobile World Congress. I remember Mobile World Congress 2020 was the first event that actually got canceled. So that was the beginning of the pandemic. And now, here we are, a year and a bit later, working with the leading telecommunications operators with the leading telecommunication sides based on solution providers and what better place that would be in doing that with AWS in this very transformational time in this space. We are supporting telecom operators around the world, as they reinvent communications in many different ways. This is not just one more G, we are definitely transforming the industry. Like any industry, we see telecom operators having to get simplification on their operations and transforming the IT side of the house. So they've go the internal IT, that needs a big transformation, they also got the network IT, everything related with OSS and BSS, and they need to migrate that to the cloud. And we've got a lot of experience by doing that with telcos around the world, to really help them accelerate that journey to the cloud. And we can help them with data center consolidation, migrations and a number of things. So we've got examples like GiffGaff, which is one of the largest MVNOs, and one of the first ones in Europe to go all in on the AWS cloud and they move all the data and the heart of the business there. So once you're sort of dealing with the network, the IT transformation, then you've got to go and look at how do you reinvent and accelerate the delivery of 5G connectivity? Well, that's very current as we're doing now. And we really want to help them because when they accelerate to the cloud, they get more flexibility, they get more agility, they get more cost effectiveness. And if you think about how traditional telco networks were built, where you have to provision a lot of systems you have to provision a lot on the base stations, and then you needed to provision a lot of systems on the Ram side, and then you needed to put aggregation centers, traffic centers, and then you would have the headquarters, and then you would have all the network functions, going from the radio all the way into the center. All of the systems needed to be provision for peak capacity. They sort of famous Mother's Day moment. As you move to the cloud, you can provision on the different parts of the cloud, you can provision on the AWS Outpost, you can provision on locals phone, you can provision on regions, and you leverage right away the experience that we've got on all of our infrastructure, reducing costs, getting a lot of flexibility and being able to embark, just and consume what you need. And, an example of that, it's been a Telefonica Vivo in Brazil. We talked about that a couple of weeks ago, and they've accelerated their move by deploying a 5G standalone cloud native platform. And that gives them a lot of automation capabilities. It gives them faster CI/CD/CT. So really cool stuff that you couldn't do in the old ways of building networks- >> It's interesting you mentioned CI/CD pipeline and developers. To me that's what comes to my mind when I think of AWS, the enablement of developers, now the enterprise. Now you've got the telco cloud and Amazon is not known for being a 5G player, but you guys are enabling a lot of 5G. Could you address that question? How is Amazon web services enabling 5G? What's your answer to that? >> So first of all, I have to say that 5G is an absolutely great example that this is a lot about moving to the cloud. 5G is cloud native, it's cloud friendly. You can virtualize pretty much every function. You can separate every function from the hardware and the software move everything to the cloud. And that is really lending itself to move to a cloud delivery model. As we were talking about earlier, we are enabling people to go and take the AWS infrastructure like AWS Outpost and bringing all the AWS infrastructure, all the services, all the APIs and all the tools that you have on AWS, virtually to any single location. And that allows you to really deploy themes like thousands of cell sites across a run, you couldn't do that before. On the AWS local zones, you can take everything that compute storage databases and a lot of different services. And those are perfect for large metro areas where you need to do a lot of network traffic aggregation, and this makes them really good to deploy in parts of the network core. Again, that's another re-innovation. And then you can look at then the regions and the regions have everything that you need from a compute storage and services perspective. And that those are really well suited for BSS for OSS to keeping the network running and to do all of that. And you can do that today, leveraging existing infrastructure. You don't have to acquire that, you don't have to provision, that you don't have to provision for the peak capacity and then you don't have to install and manage, and I think that's a serious breakthrough for the industry. >> Okay, so let me just capture that, 'cause I heard a bunch of things that I really like, cloud native 5G. What does cloud native 5G mean for the telco industry specifically? >> Well, I think if I had to put it down to one thing, it's just about making it really easy to roll out. And it's about being able to deploy easily to automate easily, so you can free up investment and you can free up resources and you can free up overhead. You can really start taking advantage of all that flexibility and scalability and automation that you get with the cloud and you apply that to a network, and that is the very first time we're able to do that in wireless. And it's just going to give you a lot of advantages. Look at Dish. We made this announcement with Dish that they are moving with one of the industry first 5G cloud native networks out there. Look at the example I talked about earlier, Telefonica Vivo, we're doing that 5G standalone solution. So you're going to be seeing, this is just the beginning, but this is going to be not the end because there's a lot of interest in getting these benefits. >> I saw the Dave Brown announcement with Dish a while back just recently. So I want to ask you, does Graviton processors play a role on the Dish deal? Do you mind answering that? If you comment on that? >> Yeah, I think you might remember Dave Brown being very proud of everything that Graviton2 processors can do in terms of increase in the price performance, helping telco operators, not only with the price performance factor, but also with the energy equation. So it's just really exciting to have that differentiation and being able to deliver that innovation and that value to telco operators in a cloud native 5G network. >> I got to ask you about some of the open source and cloud scale things coming together. That's a big trend I'm seeing here at Mobile World Congress. Openness, multi-vendor, scaling up quickly, provisioning stuff fast and easy, leveraging existing technologies and of course, developer friendly. So with that, I got to ask you, what's all the big deal about with this Open RAN. Obviously radios are key and wireless. What does Open RAN mean? Can you take us through, what's the importance of this? >> Yeah, Open RAN is an industry wide or mostly industry-wide initiative to look into effectively trying to apply some of these open and sharing models to the RAN. You've got vendors and you've got telco operators participating. But what we do and you know as well John, 'cause you've been working with AWS for a while, you know, that we're very customer focused, and 90% of what we do is what we hear that they are trying to solve because it's the things that matter to them. So what we engage with them, what we engage with somebody like Dish, and they tell us that they are interested in Open RAN, we will go and partner with the right partners who can provide the right solution to deliver on that Open RAN. And you've seen we signed agreements with the likes of Nokia to do research and solutions on cloud RAN. You also saw a couple of weeks ago, we did another collaboration announcement with Mavenir, to deliver not only cloud run, but I said of 5G solutions like IMS, the 4G 5G converge packet, or messaging and others. So we are engaging with the complete ecosystem on our customer's behalf to deliver whatever thereafter, and Open RAN is one of these topics and that we're delivering to operators like Deutsche and others in the market. >> Do you think that this new shift with cloud is going to increase the surface area? 'Cause that to me is the big theme I'm seeing what this new shift, as we look at, even telco cloud and the Edge, it's the classic surface area. And this is well known in the security world, but the there's no perimeter anymore. The surface area for security is everywhere. So things have changed. But telco just seems like the edge is expanding, you got satellite, you got space, you got more 5G, more commercial, so much more surface area. What's the impact going to be to the industry and to applications? >> Well, I think what we're seeing is 5G comes out there because there is a need for more data, more bandwidth obviously increased security, new standards, but there is also about latency, latency reduction. And I think that's really going to change the paradigm as we inject these increased responsiveness, these low latency, closer to the edge, and we bring the applications and we bring the compute and we bring storage as we do with wavelength right through to the edge as we are doing with Verizon, Vodafone, KDDI, SK Telecom and operators around the world. This is going to enable a number of transformational use cases for society, whether they are in virtual reality, whether they are with autonomous driving, whether it's about automating and getting more intelligence into manufacturing processes, there is just so much potential to transform society. And it all comes back with these sort of new 5G and some of the themes that enables moving closer to the edge. So as I said, really interesting times. >> Adolfo Hernandez, Vice President of Global Telco Business Unit with Amazon Web Services. Thanks for the great insight here on "theCube" for our Mobile World Congress coverage. Really, really great insight. Thanks so much. >> Thanks, John, delighted to be here. >> If you don't mind, I'd like to just quickly shift gears to something while I got you here on the industry. Adolfo you're very well known in the industry for someone who knows how to turn things around. You've done that in the past. You've been part of growth companies, you've been part of companies that have refocused. Telco has been a big change over people looking at this new opportunity as a growth opportunity. And people are looking at divesting some non-critical divisions and looking at acquisitions. I mean the private equity's on fire right now, and you're starting to see a lot more formation because there's more visibility into territory to take, there's more opportunities to be had. So there's more potential revenue than there is you can do on the cost cutting side. So everyone I talked to who's been in the industry has got their eyes are really popping out of their head, they're saying there's more opportunities if we can reconfigure our resources to take advantage of cloud. You're an expert in this area. For the folks out there who are in the boardrooms, cranking away thinking through how to organize for the cloud scale, what would be your advice to those teams? >> Well, I mean, there's a lot of insight to be had from the experience that AWS we've gained through the years, of doing this IT. And you definitely have to get a top down vision. Obviously it's really got to start at the C-suite, is moving to the cloud for what it bring. Either faster pace of innovation, the cost reduction, the agility. And that's you've got to be thinking about going to the cloud top down. Then the next thing you've got to go and say, "Okay, what are the parts of my operation "that I can go after with cloud? "Where do I start? "Do I start with the IT applications? "Do I start with some new go-to market initiatives? "Do I start by infusing some machine learning capabilities "into existing operations? "Do I start by building a data links "that I can go and monetize, "or I can go on and use to generate "best at customer service, "or I can go and fundamentally transform my networks?" Now, every telco's going to start in in different place, but I would say is you've got to start looking at that agility, that faster innovation, that better use of resources that cloud brings to telco for the very first time in a time in, in decades. And then if you're going to do that, I would strongly recommend people to talk to the provider that's got the capabilities, the broader set of services, the deepest set of services, and the most relevant experience to do that, 'cause we've been doing that in IT, and we've been working on telcos now for five plus years. And we've got pretty much every relationship. And as you know, John, this is really important. In telco you depend on collaborations on ISBs on software vendors, and every vendor out there, every software company out there will develop certainly on AWS. So we would be delighted to engage with them and help them move forward. >> Yeah, and Andy Jassy the CEO of AWS last year at re:Invent really made that the hallmark of his keynote around get those teams together, the executives top-down be a builder, think like a builder. McKinsey just put out a report, trillion dollar opportunities that no one sees yet that's coming. So a lot of emphasis on revenue, new revenue opportunities that are coming. And certainly this has been something that telcos been looking for for a long time. So great opportunity and thank you for sharing your insight. Appreciate it. >> Thanks, John. >> Okay this is "theCube's" coverage of ABS Mobile World Congress, 2021, I'm John Furrier, your host. Thanks for watching.

>>long from Las Vegas. It's the Q covering a ws re invent 2019. Brought to you by Amazon Web service is and in along with its ecosystem partners. >>Welcome back to the Cube. Here live in Las Vegas for aws reinvent I'm John for a devil on the ads, always extracting the signal from the noise. We're here for 1/7 reinvent of the eight years that they've had at what a wave. One of the biggest waves is the modernization of procurement, the modernization of business, commercial business and the rapid acceleration of public sector. We're here with the chief of public sector for AWS. Teresa Carlson, vice president publics that globally great to have you >>so great to have the Q begin this year. We appreciate you being here, >>so we're just seeing so much acceleration of modernization. Even in the commercial side, 80 talks about transformation. It's just a hard core on the public sector side. You have so many different areas transforming faster because they haven't transformed before. That's correct. This is a lot of change. What's changed the most for you in your business? >>Well, again, I'll be here 10 years this mad that A B s and my eighth reinvent, and what really changed, which was very exciting this year, is on Monday. We had 550 international government executives here from 40 countries who were talking about their modernization efforts at every level. Now again, think about that. 40 different governments, 550 executives. We had a fantastic day for them planned. It was really phenomenal because the way that these international governments or think about their budget, how much are they going to use that for maintaining? And they want to get that lesson last. Beckett for Modernization The Thin John It's a Beckett for innovation so that they continue not only modernized, but they're really looking at innovation cycles. So that's a big one. And then you heard from somewhere customers at the breakfast this morning morning from from a T. F. As part of the Department of Justice. What they're doing out. I'll call to back on firearms. They completely made you the cloud. They got rid of 20 years of technical debt thio the Veterans Administration on what they're digging for V A benefits to educational institutions like our mighty >>nose, and he had on stages Kino, Cerner, which the health care companies and what struck me about that? I think it relates to your because I want to get your reaction is that the health care is such an acute example that everyone can relate to rising costs. So cloud helping reduce costs increase the efficiencies and patient care is a triple win. The same thing happens in public sector. There's no place to hide anymore. You have a bona fide efficiencies that could come right out of the gate with cloud plus innovation. And it's happening in all the sectors within the public sector. >>So true. Well, Cerner is a great example because they won the award at V a Veteran's administration to do the whole entire medical records modernization. So you have a company on stage that's commercial as I met, commercial as they are public sector that are going into these large modernization efforts. And as you sit on these air, not easy. This takes focus and leadership and a real culture change to make these things happen. >>You know, the international expansion is impressive. We saw each other in London. We did the health care drill down at your office is, of course, a national health. And then you guys were in Bahrain, and what I deserve is it's not like these organizations. They're way behind. I mean, especially the ones that it moved to. The clouds are moving really fast. So well, >>they don't have as much technical debt internationally. It's what we see here in the U. S. So, like I was just in Africa and you know what we talked about digitizing paper. Well, there's no technology on that >>end >>there. It's kind of exciting because they can literally start from square one and get going. And there's a really hunger and the need to make that happen. So it's different for every country in terms of where they are in their cloud journey. >>So I want to ask you about some of the big deals. I'll see Jet eyes in the news, and you can't talk about it because it's in protest and little legal issues. But you have a lot of big deals that you've done. You share some color commentary on from the big deals and what it really means. >>Yeah, well, first of all, let me just say with Department of Defense, Jet are no jet. I We have a very significant business, you know, doing work at every part of different defense. Army, Navy, Air Force in the intelligence community who has a mission for d o d terminus a t o N g eight in a row on And we are not slowing down in D. O d. We had, like, 250 people at a breakfast. Are Lantian yesterday giving ideas on what they're doing and sharing best practices around the fence. So we're not slowing down in D. O d. We're really excited. We have amazing partners. They're doing mission work with us. But in terms of some really kind of fend, things have happened. We did a press announcement today with Finn Rat, the financial regulatory authority here in the U. S. That regulates markets at this is the largest financial transactions you'll ever see being processed and run on the cloud. And the program is called Cat Consolidated Audit Trail. And if you remember the flash crash and the markets kind of going crazy from 2000 day in 2008 when it started, Finneran's started on a journey to try to understand why these market events were happening, and now they have once have been called CAT, which will do more than 100 billion market points a day that will be processed on the cloud. And this is what we know of right now, and they'll be looking for indicators of nefarious behavior within the markets. And we'll look for indicators on a continuous basis. Now what? We've talked about it. We don't even know what we don't know yet because we're getting so much data, we're going to start processing and crunching coming out of all kinds of groups that they're working with, that this is an important point even for Finn rep. They're gonna be retiring technical debt that they have. So they roll out Cat. They'll be retiring other systems, like oats and other programs that they >>just say so that flash crash is really important. Consolidated, honest, because the flash crash, we'll chalk it up to a glitch in the system. Translation. We don't really know what happened. Soto have a consolidated auto trail and having the data and the capabilities, I understand it is really, really important for transparency and confidence in the >>huge and by the way, thinner has been working with us since 2014. They're one of our best partners and are prolific users of the cloud. And I will tell you it's important that we have industries like thin red regulatory authorities, that air going in and saying, Look, we couldn't possibly do what we're doing without cloud computing. >>Tell me about the technical debt because I like this conversation is that we talk about in the commercial side and developer kind of thinking. Most businesses start ups, Whatever. What is technical debt meet in public sector? Can you be specific? >>Well, it's years and years of legacy applications that never had any modernization associated with them in public sector. You know now, because you've talked about these procurement, your very best of your very savvy now public sector >>like 1995 >>not for the faint of heart, for sure that when you do procurement over the years when they would do something they wouldn't build in at new innovations or modernizations. So if you think about if you build a data center today a traditional data center, it's outdated. Tomorrow, the same thing with the procurement. By the time that they delivered on those requirements. They were outdated. So technical debt then has been built up years of on years of not modernizing, just kind of maintaining a status quo with no new insides or analytics. You couldn't add any new tooling. So that is where you see agencies like a T F. That has said, Wow, if I'm gonna if I'm gonna have a modern agency that tracks things like forensics understands the machine learning of what's happening in justice and public safety, I need to have the most modern tools. And I can't do that on an outdated system. So that's what we kind of call technical death that just maintains that system without having anything new that you're adding to >>their capabilities lag. Everything's products bad. Okay, great. Thanks for definite. I gotta ask you about something that's near and dear to our heart collaboration. If you look at the big successes in the world and within Amazon Quantum Caltex partnering on the quantum side, you've done a lot of collaboration with Cal Cal Poly for ground station Amazon Educate. You've been very collaborative in your business, and that's a continuing to be a best practice you have now new things like the cloud innovation centers. Talk about that dynamic and how collaboration has become an important part of your business model. >>What we use their own principles from Amazon. We got building things in our plan. Innovation centers. We start out piloting those two to see, Could they work? And it's really a public private partnership between eight MPs and universities, but its universities that really want to do something. And Cal Poly's a great example. Arizona State University A great example. The number one most innovative university in the US for like, four years in a row. And what we do is we go in and we do these public sector challenges. So the collaboration happens. John, between the public sector Entity, university with students and us, and what we bring to the table is technical talent, air technology and our mechanisms and processes, like they're working backwards processes, and they were like, We want you to bring your best and brightest students. Let's bring public sector in the bowl. They bring challenges there, riel that we can take on, and then they can go back and absorb, and they're pretty exciting. I today I talked about we have over 44 today that we've documented were working at Cal Poly. The one in Arizona State University is about smart cities. And then you heard We're announcing new ones. We've got two in France, one in Germany now, one that we're doing on cybersecurity with our mighty in Australia to be sitting bata rain. So you're going to see us Add a lot more of these and we're getting the results out of them. So you know we won't do if we don't like him. But right now we really like these partnerships. >>Results are looking good. What's going on with >>you? All right. And I'll tell you why. That why they're different, where we are taking on riel public sector issues and challenges that are happening, they're not kind of pie in the sky. We might get there because those are good things to do. But what we want to do is let's tackle things that are really homelessness, opioid crisis, human sex trafficking, that we're seeing things that are really in these communities and those air kind of grand. But then we're taking on areas like farming where we talked about Can we get strawberries rotting on the vine out of the field into the market before you lose billions of dollars in California. So it's things like that that were so its challenges that are quick and riel. And the thing about Cloud is you can create an application and solution and test it out very rapidly without high cost of doing that. No technical Dan, >>you mentioned Smart Cities. I just attended a session. Marty Walsh, the mayor of Boston's, got this 50 50 years smart city plan, and it's pretty impressive, but it's a heavy lift. So what do you see going on in smart cities? And you really can't do it without the cloud, which was kind of my big input cloud. Where's the data? What do you say, >>cloud? I O. T is a big part at these. All the centers that Andy talked about yesterday in his keynote and why the five G partnerships are so important. These centers, they're gonna be everywhere, and you don't even know they really exist because they could be everywhere. And if you have the five G capabilities to move those communications really fast and crypt them so you have all the security you need. This is game changing, but I'll give you an example. I'll go back to the kids for a minute at at Arizona State University, they put Io TI centers everywhere. They no traffic patterns. Have any parking slots? Airfield What Utilities of water, if they're trash bins are being filled at number of seats that are being taken up in stadiums. So it's things like that that they're really working to understand. What are the dynamics of their city and traffic flow around that smart city? And then they're adding things on for the students like Alexis skills. Where's all the activity? So you're adding all things like Alexa Abs, which go into a smart city kind of dynamic. We're not shop. Where's the best activities for about books, for about clothes? What's the pizza on sale tonight? So on and then two things like you saw today on Singapore, where they're taking data from all different elements of agencies and presenting that bad to citizen from their child as example Day one of a birth even before, where's all the service is what I do? How do I track these things? How do I navigate my city? to get all those service is the same. One can find this guy things they're not. They're really and they're actually happening. >>Seems like they're instrumented a lot of the components of the city learning from that and then deciding. Okay, where do we double down on where do we place? >>You're making it Every resilient government, a resilient town. I mean, these were the things that citizens can really help take intro Web and have a voice in doing >>threes. I want to say congratulations to your success. I know it's not for the faint of heart in the public sector of these days, a lot of blockers, a lot of politics, a lot of government lockers and the old procurement system technical debt. I mean, Windows 95 is probably still in a bunch of PCs and 50 45 fighters. 15 fighters. Oh, you've got a great job. You've been doing a great job and riding that wave. So congratulations. >>Well, I'll just say it's worth it. It is worth it. We are committed to public sector, and we really want to see everyone from our war fighters. Are citizens have the capabilities they need. So >>you know, you know that we're very passionate this year about going in the 2020 for the Cube and our audience to do a lot more tech for good programming. This'll is something that's near and dear to your heart as well. You have a chance to shape technology. >>Yes, well, today you saw we had a really amazing not for profit on stage with It's called Game Changer. And what we found with not for profits is that technology can be a game changer if they use it because it makes their mission dollars damage further. And they're an amazing father. And send a team that started game changer at. Taylor was in the hospital five years with terminal cancer, and he and his father, through these five years, kind of looked around. Look at all these Children what they need and they started. He is actually still here with us today, and now he's a young adult taking care of other young Children with cancer, using gaming technologies with their partner, twitch and eight MPs and helping analyze and understand what these young affected Children with cancer need, both that personally and academically and the tools he has He's helping really permit office and get back and it's really hard, Warren says. I was happy. My partner, Mike Level, who is my Gran's commercial sales in business, and I ran public Sector Day. We're honored to give them at a small token of our gift from A to B s to help support their efforts. >>Congratulates, We appreciate you coming on the Cube sharing the update on good luck into 2020. Great to see you 10 years at AWS day one. Still, >>it's day one. I feel like I started >>it like still, like 10 o'clock in the morning or like still a day it wasn't like >>I still wake up every day with the jump in my staff and excited about what I'm gonna do. And so I am. You know, I am really excited that we're doing and like Andy and I say we're just scratching the surface. >>You're a fighter. You are charging We love you, Great executive. You're the chief of public. Get a great job. Great, too. Follow you and ride the wave with Amazon and cover. You guys were documenting history. >>Yeah, exactly. We're in happy holidays to you all and help seeing our seventh and 20 >>so much. Okay, Cube coverage here live in Las Vegas. This is the cube coverage. Extracting the signals. Wanna shout out to eight of us? An intel for putting on the two sets without sponsorship, we wouldn't be able to support the mission of the Cube. I want to thank them. And thank you for watching with more after this short break.

>>live from Las Vegas. It's the Cube covering Splunk dot com. 19. Brought to You by spunk >>Hey, welcome back. Everyone's two cubes coverage here in Las Vegas for spunk dot com. 19 dot com 19. This is slugs. 10th year doing dot Com Cube seventh year of coverage. We've watched the progression have security data market log files. Getting the data data exhaust turned into gold nuggets now is the centerpiece of data security, data protection and a variety of other great things and important things going on. And we're here to great guests from slug i n songs. Vice president and general manager of security markets and Friedrichs, a VP of security automation. Guys, great to see you again. We just saw you and there's reinforce. Thanks for coming back. >>Thank you for having us. >>So you guys announced security operation Sweet last year. Okay, now it's being discussed here. What's the update? What our customers doing? How are they embracing the security piece of it? >>Wow. Well, it's being a very busy year for us. Way really updated the entire suite. More innovation going in. Yes, six. Tato got announce and phantom and you be a every product is getting some major enhancement for concealing scale. For example, years now way have customers running in the cloud like 15 terabytes, and that's like three X and from It's like 50 terrifies 50 with Search has classes. So that's one example and fend him throughout the years is just lots of capabilities. We're adding a case. Management was a major theme, and that's actually the release before the current one. So we'll be, really, you know, 80 and focusing on that just to summarize sort of sweet right. You be a continue to be machine learning driven, and there's a lot of maturity that's that's going into the product, and there's a lot of more scale and backup. Restore was like one of the major features, because become more mission critical. But what's really, really, really exciting? It's how we're using a new product called Mission Control to bring everything all together. >>I want to get into the Mission control because I love that announcement. Just love The name was behind it, but staying on the sweet when they're talking about it's a portfolio. One of the things that's been consistent every year at dot com of our coverage and reporting has been wth e evolution of a platform on enabling platform. So has that evolves? What does the guiding principles remain? The same. How you guys sing because now you're shipping it. It's available. It's not just a point. Product is a portfolio and an ecosystem falling behind it. You know the APP, showcase, developer, Security and Compliance Foundation and platforms on Just I T ops and A I ops are having. So you have a variety of things coming out of for what's the guiding principle these days is continuing to push the security. You share the vision >>guiding principle and division. It's really way believe the world. As we digitize more as everything's happening, machines speed as people really need to go to analytics to bring insides into things and bring data into doing that's that's really turning that into doing so. It's the security nerve center vision that continue guide what we do, and we believe Security nerve center needs really data analytics and operations to come together and again, I'm gonna tell you, Mission Control is one of the first examples that we bring all of the entire stack together and you talk about ecosystem. It takes a village is a team sport. And I'm so excited to see everybody here. And we've done a lot of integrations as part of sweets to continue to mature more than 1900 AP I integrations more than 300 APS. Justice Phantom alone. That's a lot of automated actions. People can take >>the response from the people in the hallways and also the interviews have been very positive. I gotta get to Mission Control. Phantom was a huge success. You're a big part of building taking that into the world now. Part was flung. Mission Control. Love the name Mission Control. This is the headline, by the way, Splunk Mission Control takes off super sharp itching security operations. So I think Mission Control, I think NASA launching rockets Space X Really new innovation. Really big story behind his unification. You share where this came from, what it is what's in the announcement? >>Yeah. So this is all about optimizing how sock analysts actually work. So if you think about it, a sock typically is made up of literally a dozen different products and technologies that are all different consuls, different vendors, different tabs in your Web browser, so it for an analyst to do their job literally pivoting between all of these consoles. We call it swivel chair syndrome, like you're literally are frantically moving between different products. Mission Control ties those together, and we started by tying slugs products together. So we allow you to take our sin, which is enterprise security, or you be a product's monkey. Be a and phantom, which is our automation and orchestration platformer sore platform and manage them and integrate them into one single presentation layer to be able to provide that unified sock experience for the analyst So it it's an industry first, but it also boosts productivity. Leading analysts do their job more effectively to reduce the time it takes. So now you're able to both automate, investigate and detect in one unified presentation, layer or work surface. >>You know, the name evokes, you know, dashboards, NASA. But what that really was wasn't an accumulation, an extraction of data into service air, where people who were analysts do their job and managed launching rockets. But I want to ask you a question. Because of this, all is based on the underpinnings of massive amounts of volume of data and the old expression Rising tide floats all boats also is rising tide floats, Maur adversaries ransomware attacks is data attacks are everywhere. But also there's value in that data. So as the data volume grows, this is a big deal. How does mission Control help me manage to take advantage of that all you How do you guys see that playing out? >>Yes, Emission control really optimizes the time it takes to resolving incident. Ultimately, because you're able to now orient all of your investigation around a single notable event eso It provides a kn optimal work surface where an analyst can see the event interrogated, investigated triage, they can collaborate with others. So if I want to pull you into my investigation, we can use a chat ops that capability, whether it's directly in mission control or slack integration waken manage a case like you would with a normal case management toe be ableto drive your incident to closure, leveraging a case template. So if I want to pull in crisis communications team my legal team, my external forensics team, and help them work together as well. Case management lets me do that in triage that event. It also does something really powerful. High end mentioned. The operations layer the analytics in the data layer. Mission Control ties together the operational layer where you and I are doing work to the data layer underneath. So we're able to now run worries directly from our operational layer into the data layer like SPL quarries, which spunk is built on from the cloud where Mission Control is delivered from two on premise Face Plunk installations So you could have Michigan still running in the Cloud Splunk running on premise, and you could have multiple Splunk on premise installs. You could have won in one city, another one in another city or even another country. You could have a Splunk instance in the Cloud, and Mission Control will connect all of those tying them together for investigative purposes. So it's very powerful. >>That's a first huge, powerful when this comes back to the the new branding data to everywhere, and I see the themes everywhere, the new colors, new brake congratulations. But it's about things. What do ours doing stuff, thinking and making things happen. Connecting these layers not easy, okay? And diverse data is hard. Thio get access to, but diverse data creates great machine learning. Ay, ay, ay, ay, ay creates great business value. So way see a flywheel development and you guys got going on here. Can you elaborate on that? Dated everywhere And why this connective tissue that you're talking about is so important? Is it access to the war data? Is that flywheel happening? How do you see that playing out? >>I'll start with that because they were so excited where data to everything company or new tagline is turning data into doing. And this wouldn't be possible without technologies like Phantom coming in right way have traditionally been doing really great with enterprise was data platforms. And with an Alex now was phantom. We can turn that into doing now with some of the new solutions around data stream processing. Now we're able to do a lot of things in real time. On you mentioned about the scale, right scales changes everything. So for us, I think we're uniquely positioned in this new age of data, and it's exploding. But we have the technology to help your payment, and it's representing your business way. Have the analytics to help you understand the insights, and it's really the ones gonna impact day today enabling your business. And we have two engine to help you take actions. That's the exciting part. >>Is that what this flywheel, because diverse data is sounds great, makes sense more data way, see better? The machines can respond, and hopefully there's no blind spots that creates good eye. That kind of knows that if they're in data, but customers may not have the ability to do that. I think that's where the connecting these platforms together is important, because if you guys could bring on the data, it could be ugly data on his Chuck's data data, data, data. But it's not always in the form you need. Things has always been a challenge in the industry. How do you see that Flywheel? Yeah, developing. >>Yeah, I think one of the challenges is the normalization of the data. How do you normalize it across vendors or devices, you know. So if I have firewalls from Cisco, Palo Alto Checkpoint Jennifer alive, that day is not the same. But a lot of it is firewall blocked data, for example, that I want to feed into my SIM or my data platform and analyze similarly across endpoint vendors. You know you have semantic McAfee crowdstrike in all of these >>vendors, so normalization >>is really key and normalizing that data effectively so that you can look me in at the entire environment as a single from a single pane of glass. Essentially, that's response does really well is both our scheme on reed ability to be able to quarry that data without having a scheme in place. But then also, the normalization of that data eyes really key. And then it comes down to writing the correlation searches our analytics stories to find the attacks in that data. Next, right. And that's where we provide E s content updates, for example, that provide out of the box examples on how to look for threats in that data. >>So I'm gonna get you guys reaction to some observations that we've made on the Q. In the spirit of our cube observe ability we talked to people are CEOs is si sos about how they cloud security from collecting laws and workloads, tracking cloud APS and on premise infrastructure. And we ask them who's protecting this? Who is your go to security vendors? It was interesting because Cloud was in their cloud is number one if it's cloud are not number one, but they used to clear rely on tools in the cloud. But then, when asked on premise, Who's the number one? Splunk clearly comes up and pretty much every conversation. Xanatos. Not a scientific survey, it's more of it handpicks. But that means it's funk is essentially the number one provider with customers in terms of managing those workloads logs across ABS. But the cloud is now a new equation because now you've got Amazon, Azur and Google all upping their game on cloud security. You guys partner with it? So how do you guys see that? How do you talk cutters? Because with an enabling platform and you guys are offering you're enabling applications. Clouds have Apple case. So how do you guys tell that story with customers? Is your number one right now? How do you thread that needle into this explosive data in the cloud data on premise. What's the story? >>So I wish you were part of our security super session. We actually spent a lot of energy talking about how the cloud is shifting the paradigm paradigm of how software gets billed, deployed and consumed. How security needs to really sort of rethink where we start, right? We need to shift left. We need to make sure that I think you use the word observe ability, right? T you got to start from there. That's why as a company we bought, you know, signal effects and all the others. So the story for us is start from our ability to work with all the partners. You know, they're all like great partners of ours AWS and G, C, P and Microsoft. In many ways, because ecosystem for cloud it's important. We're taking cloud data. We're building cloud security models. Actually, a research team just released that today. Check that out and we'll be working with customers and building more and more use cases. Way also spend a lot of time with her. See, So customer advisory council just happened yesterday talking about how they would like us to help them, and part of that they were super super excited. The other part is what we didn't understand how complicated this is. So I think the story have to start in the cloudy world. You've gotto do security by design. You gotta think about automation because automation is everywhere. How deployment happens. I think we're really sit in a very interesting intersection off that we bring the cloud and on prime together >>the mission, See says, I want to get cameras in that room. I'm sure they don't want any cameras in the sea. So room Oliver taking that to the next level. It's a complexity is not necessarily a bad thing, because software contract away complexity is from the history of the computer industry that that's where innovation could happen, taking away complexity. How do you see that? Because Cloud is a benefit, it shouldn't be a hindrance. So you guys were right in the middle of this big wave. What? You're taking all this? >>Yeah. Look, I think Cloud is inevitable. I would say all of our customers in some form or another, are moving to the cloud, so our goal is to be not only deliver solutions from the cloud, but to protect them when they're in the cloud. So being able to work with cloud data source types, whether it's a jury, w s, G, C P and so on, is essential across our entire portfolio, whether it's enterprise security but also phantom. You know, one exciting announcement that we made today is we're open sourcing 300 phantom maps and making making him available with the Apache to get a license on get hubs so you'll be able to take integrations for Cloud Service is, like many eight of US service is, for example, extend them, share them in the community, and it allows our customers to leverage that ecosystem to be able to benefit from each other. So cloud is something that we work with not only from detection getting data in, but then also taking action on the cloud to be. Will it protect yourself? Whether it's you, I want to suspend an Amazon on your instance right to be able to stop it when it's when it's infected. For example, right those air it's finishing that whole Oodle Ooh and the investigate monitor, analyze act cycle for the cloud as we do with on from it. >>I think you guys in a really good position again citizen 2013. But I think my adjustment today would be talking to Andy Jackson, CEO of AWS. He and I always talk all the time around question he gets every year. Is Amazon going to kill the ecosystem? Runs afraid Amazon, he says. John. No, we rely on third party. Our ecosystem is super important. And I think as on premises and hybrid cloud becomes so critical. And certainly the Io ti equations with industrial really makes you guys really in a good position. So I think Amazon would agree. Having third party if you wanna call it that. I mean, a supplier is a critical linchpin today that needs to be scalable, >>and we need equal system for security way. You know, you one of the things I shared is really an asymmetric warfare. Where's the anniversary? You talk about a I and machine learning data at the end of the day is the oxygen for really powering that arm race. And for us, if we don't collaborate as ecosystem, we're not gonna have a apprehend because the other site has always say there's no regulations. There's no lawyers they can share. They can do whatever. So I think as a call to action for our industry way, gotta work together. Way got to really sort of share and events or industry together. >>Congratulations on all the new shipping General availability of E s six point. Oh, Phantoms continue to be a great success. You guys on the open source got an APB out there? You got Mission Control. Guys, keep on evolving Splunk platform. You got ABS showcase here. Good stuff. >>Beginning of the new date. Excited. >>We're riding the waves together with Splunk. Been there from day one, actually 30 year in but their 10th year dot com our seventh year covering Splunk. I'm John Ferrier. Thanks for watching. We'll be back with more live coverage. Three days of cube coverage here in Las Vegas. We'll be right back.

>> live from Boston, Massachusetts. It's the queue covering your red. Have some twenty nineteen brought to you by bread hat. >> Well, good afternoon. Where you might be watching us here on the Cube. We are live in Boston. Is we wrap up our coverage headed toward the homestretch? You might say of Red had Summit twenty nineteen. Want was to Mittleman. I'm John Walls. And thank you for joining us here. We're now joined by Ah, Louise, right. Bower, who was the vice president and chief technical strategists and head of innovation lab at Dinah Trees. And always good to see you today. Thanks for being with us. Hello. Thanks for having me s O software intelligence that that's your your primary focus. You've got headquarters here in the Boston area back in Austria. Tell a little bit about it. You would, Dina Trace. And I guess first off, what this news this week has met to you in terms of the release is and then maybe what you're doing in general. You know what Dina Trace is all about? >> Yes. Oh, that phrase has been around for, like quite a time. Started out as an a P M. Company. like fourteen years ago have been reinventing ourselves over and over again on DH. So we move from the traditional monitoring approach. So the innovation we had in the very beginning when we launched the first product was really would be practical, pure passer. The ability trace and went that way a lot about facing racing, like becoming super cool for micro services. So it would be like the first teacher we could be burying, doing, tracing before it was cool, like forty, fifty years ago. And then I was were involving the product more, more Skilling into bigger and bigger environments. So what's bigger and bigger mean? I remember in the beginning when we were working on environments who we're talking about, like one hundred host has a big environment like five hundred told that that's a big environment today, we say, for even one hundred thousand toast. Okay, it's a big environment, but they can't get even bigger then. The massive change was really for us five years ago, where way implemented our entire product offering, built the new Dina trays, Mr Focus, that we realize that okay, it's data and between people date and having them analyzed data is nice, but it's only getting you so far. So the more complex the replication get, more data you get to analyze. And it's just more exponentially scaling how many people you would need to deal with this. And that's why five years ago, we started to incorporate a I into our new court platform, then for automatic problem analysis. That's also where we're not just BPM. That's just what we call like the Dogg Tools data on glass tools to show a lot of data. Do some analysis on top of it. But it don't help you, too, really resolve a problem. So we used build in the eye, and that automatic would cause analysis again. Next teacher doing Aye, aye ops, affordable school like five years ago. Andi. The latest evolution. We also so again, and not a change in the way people are using monitoring tools. Um, we've invested a lot into building out in AP eyes don't see monitoring tools like be the Martin still here and the application over there, but having them monitoring who being highly integrated into the fabric fire eyes. So we have, As of today, eighty percent of our customers are using the product also via reprise, but tying them into operational automation. What we heard even today in the keynote here about a ABS and Howie iop starts to control and manage that form. More is becoming the intelligence or the back plane behind a modern native stack. >> So we have Chris right on. Who was in the keynote this morning? Came on our program this morning, too, when we talked about just the rippling effects of distributed architectures. I look at my applications there, you know, going to micro service architectures. You look at where's customers data? Well, lots of stuff all over the clouds and sass, and that has a ripple. Effect it to your space. You know, I hear observe, ability monitoring, you know, hack even bring up, like, you know, the civilised world. It becomes a whole separate meeting. So Donna Trace has been going through a transformation. You know, give >> us a >> point check ins to you know, where your customers are, how you're helping them move through this modernization and, you know, move to distributed architectures where that fits in >> so that their customers we focus on mostly are like Fortune five hundred customers who we work with. And obviously they have everything that exists on the planet. When we talk about self for like even from the mainframe to cloud native to serve less, as you mentioned here. And they were in this transition process right now, like modernizing their applications, which, as a necessity, we all want to move fast. There we want therefore flexible architects is we want to build more enough innovative products but at the same time to realize that this is also a message business risk behind following this approach. Think about you in the role of the CEO and say where we're going to modernize our architecture. We're going to rebuild everything we platform and so forth. You can if you succeed. Everybody would say you had. Yes, you did what you had to do. I mean, sorry if you failed, you failed. It's s so for them, it's a It's a big risk to move down that route and retired to take that risk out of the process as much as possible. Really Starting, obviously was monitoring their traditional sex, as they have to today, but really supporting that along that entire journey to a cloud native architecture er, starting with what we referred to as our support for monoliths to micro service architecture's. So Theodore is basically you don't want to rip apart the replication and figure out how it's going to work in my purse services world. But we have to technology that's called smart scape smart. Skip Moelis bills a real time, all of your entire data center and old applications running into it. And it was virtually that sect. You're marvelous, you came. How would they look like in a microt services architecture without catching any codes and then making it work? So once you've done this once, you've decided to move there the next step? Obviously, yes, you could have rebuilt that application. Usually we see applications with micro services architectures being significantly Mohr complex or more distributed by the sign that a traditional that you might have Web server application, Teo Database Server. Now you might be talking about maybe two hundred micro services or more so twenty times ranges. Writer on this under under lower bound here, which means that your traditional operational approach up okay, it's either the database of observer. The application server doesn't work anymore. on top of this. You did all of this to deploy fast. Like for like, bi weekly releases, even maybe daily off, like a smaller granularity. So you were reading a lot of entropy to that system and you have to analyze way more data. Did he ever had to do before? And this is where we kind of getting to the level where theoretically humans could do it. But it would just take us too long where the Holy I ops capability come in where we let let the machines that a monitoring tto take care of it at that level. So we helping them to operation US thieves processes and then really supporting them along the whole journey, where every customer we talked like this vision. But we're also here today in the keynote of an autonomous cloud and with carbonated, we already made a great step in this direction, looking at the interest, actually, like today say, I need five replicas off this container. I don't know, given that it's does it open shift and specifically here, it's going to happen. But if we move to the application layer is a lot, that has to be done and it has to make it easier for people to do. And that's where we tied into the entire customers. Ecosystem toe, automate like their cloud environment and have actually built a practice around which we call autonomous cloud management that we have been working with with customers on to enable them to achieve this over time. But it's going to be a lot maturity there. >> Yes, I mean, so what it talked about that you know, a CIA autonomous cloud management. What exactly you know, is that and how are you bringing that to your customer >> base? Autonomous Cloud Management resulted out off two different areas. The first one was when we were implement re implementing our platform. What I mentioned before, one step for us was to move to the SAS platform, and we looked at all the operation practices that were around back then, you know, we don't want to tell the doc I really don't want to do it. Like having people twenty four seven look at dashboards, then goingto a wicky, then reading a description of how to fix the problem. If you're the engineer, that why why do we do this this way? Must make any sense. So we developed our own practice, which we referred to as no wops. I know it doesn't mean that you're not doing operations. That would be pretty crazy, but not doing this traditional Naga type of operation, sitting there staring at a screen twenty four seven and then mentally executing any operation. So we had our own practice that we've built around it and, quite frankly, which has spilled it because we needed it for ourselves, and then we kept talking to customers and partisan, he says. Really cool what you did there like, Oh, how did you do this? What's like yourself? Respect behind this and what does the practices? What do your process? What's the culture change? So we were engaging with some customers, and then we were seeing that some of our customers back then, even we're doing bits and pieces off. This isthe well because there's a lot of practice and a lot of knowledge around. How did the autonomous count management and at the same time that we talked about the other customers who not yet on a charity who definitely want to get there? But I'm not quite sure how to do it, and I don't want to figure it out themselves. So we thought, Okay, let's take all of these best practices that we have and build more or less a methodology around it. How to make this actually works like how to do this. We really broke it down into, like, individual sprints to distance sprint one that distance sprint to to really have the results within three months, six months, twelve months. Whatever the cases that you want to run on. And then we realised talking to customers. This by itself isn't still enough. So that's why we started to open up this to an entire ecosystem. So WeII brought ecosystem partners along, like working closely with read a lot of our companies, but also system integrators who can help us. We speak of projects because we as a company, our software companies were not a services are consulting company, and we do support customer that some of those engagement. But if you think of like a really Fortune five hundred company that's a multi approaches, it will keep hundreds of people busy. So to recap like built in methodology, we built ecosystem to deliver on that promise at scale. And now the last step was we were doing this. We also built like a reference architecture for it, and I was just in an eternal ideas. So how do we, like structure this building reference architecture and then realized Okay, It's kind of like super helpful for customers. So that is why we don't decided to open source this reference architecture this fabric as well, too, like the tires after community, so they can also use it. So technically, stability is three pieces. It's the methodology, it's the ecosystem. And it's like the reference architecture that you can work with to help you, Chief. Go. >> All right, um, tell us how your a I fit into this. I've heard some analyst firms are saying, you know, some of the next generation of your space could be a I ops. Do you consider yourselves moving in that direction, or do you have some counter view on that? >> I think today a lot of things ar e I upset my now b a i ops, and it's a very undefined goal. This mentioned earlier. We decided to have aye aye based algorithms as powerful platform five years ago and nobody back then was talking about the layoffs. Funny story. Some of our competitors even told us you can't use the eye for monitoring just like totally stupid that there are other companies that they were doing it. But again, so the whole industry is learning here. I think it's really about data analysis. If you look at, if you scare the bigger and bigger environment, you really have to look at the process off what human operations people are doing on. There's obviously some hard decisions that you have to take their have. You have to work with teams to resolve our problems. But the biggest portion is really data analysis interpretation, right and a lot of this can be put into, and a I component that doesn't What's the Dyna trees, eh? I does it more. This is like your saree in codes, so to speak, which is able to find what's broken in the education, what was related to an issue in the application and being able to automatically find the root cause. Very importantly, we're kind of like opinionated and how in a I for operational practices should be working because one thing you don't want it serious you want? Don't want it happening. Iop system tell you well, you should. We start this service because some neural and that were told to do so. That's a building, a lot of confidence. That's why our approach is really tio follow. Like what we call a deterministic a pia a sari. And hey, I did it able to explain back to the user White came to a certain conclusion. So why should their we sort this herb is west of the rollback, this deployment or why that's the I b. Believe that if I fixed this problem, then like the bigger problem will be solved. So that's our approach, Teo T. I actually started like, roughly four years ago, five years ago, even a bit more than that on you. And I think that have a lot of experience, really rolling it out its scale and seeing it will help people because the next the ultimate next question, without always Scott Wass. If you wanna know what the problem is, why don't you fix it? And that's exactly the conversation you want to have, maybe just briefly at here, because it usually comes up okay, f a I and isat replacing people's jobs? I don't think so. We also heard it in the keynote today from Chris. It's augmenting our capabilities. There's hard decisions that you have to take, but just going through tons and tons of data. It's not going to your isn't very often when we talked at operations team or almost every time. First of all, you can't hire enough people anyways to get all the old done that's on your plate. Secondly, um, just by the amount of data and the time that I had to react. It's just long with a human understanding scenario way. Do this demo on self healing, often application. Where were deployed, something broken into production and have it being rolled back and we can do fifty one seconds. No human can do it that fast. That's just what pure, softer automation can do for you. So I think that then you can focus on other areas and more important, new project with us people in on the off space. What's what the three projects that you want to work and you never have time to work out and usually come up with the list. Yet this is what we give you back that time to work on exactly the things that move your business forwards. You >> said fifty one seconds. You've never seen Stew in action. You still have a lot of confidence. >> Well, we we love the machine, enhance human intelligence. You're definitely We could all use those machines to help us all get away from the drudgery and be able to do more. >> Always safe travels. Thanks for being with us. Headed back to Austria. Say, hide all your folks back in Austria, right There always is on his way home on his way to the airport. Thank you for being with us here on the Cube. Thanks. Appreciate the time our coverage continues here. Red hat some twenty nineteen. You're watching the cube?

live from Las Vegas it's the cube covering AWS reinvent 2018 brought to you by Amazon Web Services Intel and their ecosystem partners everyone welcome back to the cube day two of three days of wall-to-wall coverage here in Las Vegas for AWS Amazon Web Services reinvent 2018 start sixth year covering I was only meeting to all the reinvents except for the original one I'm John for a mykos David Lunz we got two sets here and set one we got another set over there's so much content set upstairs total of four sets here covering all the video covers and right now we're coming off the keynote with Andy Jesse full of action packed analysis Dave a pretty amazing set of keynotes they had so many announcements here at ABS they had to basically start releasing them they did media alerts before the show midnight madness just a lot of front-end releases that would be notable releases for any other other conference they're letting out early Andy Jesse only has two hours on stage he's giving the keynote finishing up huge amounts of news announcements Dave so you know you went to the analyst session I met with any Jesse last Monday night for the preview we've been following Amazon a lot of the stuff that we've been saying for the past multiple years is actually happening our original predictions and impact of a toes of business on the IT landscape is happened and happening and now new areas that they're focused on that extends their a leadership both technology and the business and on the business model side continue to come on they well yesterday launched as a preview satellites as a service you actually stand up some satellites which is the power of the IOT has so many implications so many things to talk about through the course of today a lot of interviews we're gonna have again day two let's analyze Andy's keynote and the company what's your take their business is strong their lead a lot of analysts are fooled by the numbers you're not we've been watching it huge number of lead in the cloud I think the first thing I want to say is I go to Silicon angle calm I read you're both of your pieces that are up there your piece on Forbes this is a preview and then the the number of announcements here is just overwhelming last two days at the analyst event they gave us previews of sixty-two announcements and that's only a partial list of the announcement 62 that they took us through it was like rapid-fire kool-aid injection unbelievable so silicon Hangul comm is covering as much of that as physically possible any chassis made a big point this morning and at the private analyst meeting of talking about the context of the cloud market he's very sensitive to people misinterpreting growth there are 26 27 billion dollar business exclusively focused on infrastructure as a service and they're totally transparent about the size of that business everybody else throws in SAS I mean you've made this point a bunch of times and all these other things they mix in hosting and you really can't tell what's what despite that Amazon is by far the leader infrastructure as a service with over 50% of the marketplace now they're only growing at 46% but there are 26 27 billion-dollar run rate business growing at 46% so you see sometimes like Microsoft growing it whatever 70% but they're much much smaller so the absolute number in terms of revenue growth is much much higher for Amazon so that's sort of point number one the thing that Jesse doesn't talk about is the profitability of the business they're transparent about it in their financials Amazon has 28 percent operating margins now just to put that in the context software companies like Oracle have 37 percent operating margins Microsoft 32 percent AWS I just mentioned 28 percent Cisco 25 percent VMware as a software companies with 22 percent operating margins IBM 15 percent Dell eight point seven percent HPE seven percent this underscores the power of the AWS model at scale where they're driving the marginal cost of new services and deploying new services down to zero and it just keeps getting stronger and stronger and stronger and as a great point as a flywheel effect totally Amazon like but it's a great point ago we've been saying it for a long time the competitive advantage is scale and speed and jessee's now adopting that into his rhetoric into his into his narrative totally true and the other thing to point out on that margin and the profitability is that they're plowing it back in so what what you have at scale I wrote this in my Forbes post and in space at all in Silicon angle transcripts are my my exclusive interview with Andy is that not only are they profitable so they have software like margins for what is what is a hardware business basically in the cloud the stack and in Iraq on their own servers they're making their own chips as they start getting the scale up Dave they are getting a competitive advantage I'm following the profitability back in to launch new services so as the trajectory and I kind of tease this out in my Forbes article I wrote which is as you have a trajectory of growth they're building on that trajectory and the competition is trying to copy Amazon and you can't you can't get the trajectory value by trying to meet Amazon's current trajectory that's called diseconomies of scale I teach you that in business school this economies of scales it's the unsub optimized execution model where you run you don't have the learning experience that you don't have the scale Amazon has that trajectory and as people try to match them they will lose and they're at risk of losing because the risk so the only play for the competition in my opinion like Google like Microsoft like others is to change the goalposts they got to change the playing field on Amazon this is the number one thing that the industry is looking at Amazon is making the market they continue to make the market as market makers that's gonna attract an ecosystem that's gonna attract value and and more companies the only competitive strike that I think one could make is to change the playing field they got to change the game on Amazon that is extremely difficult to do when you're operating at scale you got the profitability numbers you talked about so again that is the new bar and as Amazon I'm we've said this every year ever and every year they've done it they've doubled their aurora customers on the database lied every year they introduced more services last year they in 2018 they'll have introduced significantly new services and the number of eighteen hundred plus okay the year before is like fourteen hundred next year we're probably higher by introducing new services faster that keeps the pace and that's what's hard to copy it's hard for competition to try to match that and as they try to match it they have the diseconomies of scale this is a major advantage this is going to give Amazon customers a comfort because they know that that's that scale becomes more stable products becomes stable the flywheel kicks in and as data gets into the cloud it gets sticky so there's no real lock in spec you can move every in and out of Amazon all you want but why would you because the benefits of being in Amazon far outweigh benefits of actually doing anything else so again the lock-in spec doesn't exist anymore from a technology feature standpoint it's a lock in spec on business model oh it's better well and I want to add something some color to what you said about the the new services and the pace of innovation their services of substance and we know this because our developers you know they talked to us about Amazon Andy Jesse told the story about one of his his executives that was on a plane leaving Seattle he didn't mention Microsoft but clearly he was talking about Microsoft that somebody's laptop was up the PowerPoint presentation it said their strategies explicitly said just announce what Amazon announces don't worry about the functionality and and what so what Amazon what Microsoft is doing presumably it was Microsoft is basically saying check the box freeze the market we have that too so to your point competitors cannot compete with Amazon on pace of innovation no way what they have to do is in the case of Microsoft they have to rely on their software estate in the case of Google you know they've got their innovations ok fine but nobody can match Amazon head-to-head don't just lose every time I like Google's position I love I love Google's got the technology power but you're exactly right that competitive strategy of checking the boxes is an old way of competing and I think what's interesting is the competition has not yet woke up to the fact that the game has already changed on them look at the public sector work that Teresa Collins done the CIA deal really made Amazon a business model because people said hey the CIA could do it we could do it that's been that's come up in all my conversations across all Amazon executives but what's happening now the DoD isn't the only soul source or that's Oracle's business they try to compete I'm checking the boxes but because it's so easy to use the cloud and Andy talked about this as keynote is that you can't fake it till you make it hey you can't you got it you have the surge it's gotta be up and running so it's very easy to do a bake off so you know that it's so that whole way of competing of checking the boxes over the only way to compete is have value and that is a new flywheel that's what's happening right now and that's key so so let me set it up so when you get to reinvent I mean I'm so psyched to be here with you John it's been a while but but try that you try to absorb all the innovation so you so try to boil it down you got to look at it it to simplify it two dimensions one is the data exploiting data better use out of data and the other is developers and developer tools and making it simpler for developers their announcements the 60-plus announcement that they made I break them down into five categories storage and database services compute networking and security third is ease of use and abstractions making things simpler fourth is machine learning and developer tools and the fifth is these new growth frontiers like you mentioned satellite as a service and some other things like in hybrid that we're going to talk about so the announcements kind of fit into that framework but let's maybe highlight some of the announcement a lot of time at least just run down the announcements real quick to meet the main main ones at the place he started the bottom of the stack and move it has moved up storage deep glacier FX Windows file systems lustre for high-performance workloads the new persona developer he call it the Builder the right tool for the right job this is a constant refrain he's been saying control tower blueprints and guardrails template based approach to stand up new use cases for compliance all the kind of detailed manual things that they're automating signal from the noise I love that phrase he put on this put on the big screen that's our motto here it's looking angle security hub lake formation instant data lakes he kind of was pooh-poohing data Lake which I love them like oh shit it'll is just one piece of freedom around databases so one storage was a huge part of the innovation and they're expanding that front and compute and storage it's gonna be critical the database war is definitely happening open engines Aurora doubling customers DynamoDB runtime capacity on demand sensors and time series dais they have timestream block chaining address that straight up look at weekly we'd love blockchain if the customers wanted we're gonna look at and understand it then announce that they announced the quantum ledger database ql DB amazon manage blockchain service so you want etherium or hyper ledger got it and then he moved on to Mitch from databases to machine learning this is where sage maker comes in so you got s3 and ec2 that the pillars you got Aurora that's the key product and then sage making the other key product at the top of stack sets the tone for all these abstractions the machine learning trends tensorflow if you want to use it no problem we'll optimize it Amazon inference engine so elastic inferences blatant see they got a chip inference chip in inferential inferential so you put it the chip and the elasticity service together you have a powerful combination that comes out of the Annapurna acquisition from 2015 building and tuning and managing machine learning apps is gonna be a control area they're gonna add value on and the insights coming from this and marketplace capability so and then on and on and finally the Amazon on premise stack which is gonna be called outpost is the final nail of the coffin behind the strategy because think about it you're gonna put Amazon on premise with a hardware device that's gonna connect with the cloud with all the innovation and this is what amy jazzy talked about we're not just a software company we're hardware we're networking we're compute we're storage and we're software abstractions we're gonna bring that and put it in a device so we're gonna basically create a Amazon Cloud in a box search solution on premise to allow people to manage those Layton sees where network traffic is there this is not just a software only he's not gonna let people run their databases on their clouds it's the Amazon footprints I wanna make a comment about that I came in to reinvent with the with the statement that Amazon actually is winning in hybrid now they used to not talk about hybrid as you well know how can I make that statement when they don't really deliberately go after hybrid well the reason I made the statements cuz the entire ecosystem is connecting to Amazon s3 targets Direct Connect you've seen Amazon do things like snowball and VPC so now what Amazon is doing without post is they're putting the exact same hardware that Amazon uses in its data centers allowing customers to put that in their data centers the identical configuration control plane hardware etc that move is going to really even further extend yeah Amazon's lead and hybrid yeah and we're gonna have eme Jesse on Thursday day of coverage here we have Teresa Carlson on Andy Jessie all the topics David gave McCann you name all the AIG folks coming on as well we're gonna get into all this and extract the signal from all this signal out here of course RTS on VMware I forgot it the other way so there's so much this noise omus iot there IOT strategy is bottoms up and very very impressive gonna have Jerry Chen come on former VMware cloud guy now great little cray lakh venture capital partners over there he's gonna come on and analyze what's the only announcements we're gonna continue to tease out the announcement of course but a silicon angle comm check out all the news it's a tsunami of content coming out of reinvent totally game-changing days we're gonna wrap it up here we're gonna do more analysis so you'll see a bunch of videos on on our YouTube channel and stay tuned watching all week here for live coverage I'm chef Devaux want a stay with us we'll be right back [Music]

>> Narrator: Live from downtown San Francisco, it's The Cube, covering IBM chief data officer strategy summit 2018, brought to you by IBM. (playful music) >> Welcome back to the IBM chief data officer strategy summit in San Francisco. We're here at the Parc 55. My name is Dave Vellante, and you're watching The Cube, the leader in live tech coverage, #IBMCDO. Seth Dobrin is here. He's the chief data officer for IBM analytics. Seth, good to see you again. >> Good to see you again, Dave. >> Many time Cube alum; thanks for coming back on. Asim Tewary, Tewary? Tewary; sorry. >> Tewary, yes. >> Asim Tewary; I can't read my own writing. Head of data science and advanced analytics at Verizon, and from Jersey. Two east coast boys, three east coast boys. >> Three east coast boys. >> Yeah. >> Welcome, gentlemen. >> Thank you. >> Asim, you guys had a panel earlier today. Let's start with you. What's your role? I mean, we talked you're the defacto chief data officer at Verizon. >> Yes, I'm responsible for all the data ingestion platform, big data, and the data science for Verizon, for wireless, wire line, and enterprise businesses. >> It's a relatively new role at Verizon? You were saying previously you were CDO at a financial services organization. Common that a financial service organization would have a chief data officer. How did the role come about at Verizon? Are you Verizon's first CDO or-- >> I was actually brought in to really pull together the analytics and data across the enterprise, because there was a realization that data only creates value when you're able to get it from all the difference sources. We had separate teams in the past. My role was to bring it all together, to have a common platform, common data science team to drive revenue across the businesses. >> Seth, this is a big challenge, obviously. We heard Caitlyn this morning, talking about the organizational challenges. You got data in silos. Inderpal and your team are basically, I call it dog-fooding. You're drinking your own champagne. >> Champagne-ing, yeah. >> Yeah, okay, but you have a similar challenge. You have big company, complex, a lot of data silos coming. Yeah, I mean, IBM is really, think of it as five companies, right? Any one of them would be a fortune 500 company in and of themselves. Even within each of those, there were silos, and then Inderpal trying to bring them across, you know, the data from across all of them is really challenging. Honestly, the technology part, the bringing it together is the easy part. It's the cultural change that goes along with it that's really, really hard, to get people to think about it as IBM's or Verizon's data, and not their data. That's really how you start getting value from it. >> That's a cultural challenge you face is, "Okay, I've got my data; I don't want to share." How do you address that? >> Absolutely. Governance and ownership of data, having clear roles and responsibilities, ensuring there's this culture where people realize that data is an asset of the firm. It is not your data or my data; it is firm's data, and the value you create for the business is from that data. It is a transformation. It's changing the people culture aspect, so there's a lot of education. You know, you have to be an evangelist. You wear multiple hats to show people the value, why they should do. Obviously, I had an advantage because coming in, Verizon management was completely sold to the idea that the data has to be managed as an enterprise asset. Business was ready and willing to own data as an enterprise asset, and so it was relatively easier. However, it was a journey to try to get everyone on the same page in terms of ensuring that it wasn't the siloed mentality. This was a enterprise asset that we need to manage together. >> A lot of organizations tell me that, first of all, you got to have top-down buy-in. Clearly, you had that, but a lot of the times I hear that the C-suite says, "Okay, we're going to do this," but the middle management is sort of, they got to PNL, they've got to make their plan, and it takes them longer to catch up. Did you face that challenge, and how do you ... How were you addressing it? >> Absolutely. What we had to do was really make sure that we were not trying to boil the ocean, that we were trying to show the values. We found champions. For example, finance, you know, was a good champion for us, where we used the data and analytics to really actually launch some very critical initiatives for the firm, asset-backed securities. For the first time, Verizon launched ABS, and we actually enabled that. That created the momentum, if you will, as to, "Okay, there's value in this." That then created the opportunity for all the other business to jump on and start leveraging data. Then we all are willing to help and be part of the journey. >> Seth, before you joined IBM, obviously the company was embarking on this cognitive journey. You know, Watson, the evolution of Watson, the kind of betting a lot on cognitive, but internally you must have said, "Well, if we're going to market this externally, "we'd better become a cognitive enterprise." One of the questions that came up on the panel was, "What is a cognitive enterprise?" You guys, have you defined it? Love to ask Asim the same question. >> Yeah, so I mean, a cognitive enterprise is really about an enterprise that uses data and analytics, and cognition to run their business, right? You can't just jump to being a cognitive enterprise, right? It's a journey or a ladder, right? Where you got to get that foundation data in order. Then you've got to start even being able to do basic analytics. Then you can start doing things like machine learning, and deep learning, and then you can get into cognition. It's not a, just jump to the top of the ladder, because there's just a lot of work that's required to do it. You can do that within a business unit. The whole company doesn't need to get there, and in fact, you'll see within a company, different part of the company will be at different stages. Kind of to Asim's point about partnering with finance, and that's my experience both at IBM and before I joined. You find a partner that's going to be a champion for you. You make them immensely successful, and everyone else will follow because of shame, because they don't want to be out-competed by their peers. >> So, similar definition of a cognitive enterprise? >> Absolutely. In fact, what I would say is cognitive is a spectrum, right? Where most companies are at the low end of that spectrum where using data for decision-making, but those are reports, BI reports, and stuff like that. As you evolve to become smarter and more AI machine learning, that's when you get into predictive, where you're using the data to predict what might happen based on prior historical information. Then that evolution goes all the way to being prescriptive, where you're not only looking back and being able to predict, but you're actually able to recommend action that you want to take. Obviously, with the human involvement, because governance is an important aspect to all of this, right? Completely agree that the cognitive is really covering the spectrum of prescriptive, predictive, and using data for all your decision making. >> This actually gets into a good point, right? I mean, I think Asim has implemented some deep learning models at Verizon, but you really need to think about what's the right technology or the right, you know, the right use case for that. There's some use cases where descriptive analytics is the right answer, right? There's no reason to apply machine learning or deep learning. You just need to put that in front of someone. Then there are use cases where you do want deep learning, either because the problem is so complex, or because the accuracy needs to be there. I go into a lot of companies to talk to senior executives, and they're like, "We want to do deep learning." You ask them what the use case is, and you're like, "Really, that's rules," right? It gets back to Occam's razor, right? The simplest solution is always the answer, is always the best answer. Really understanding from your perspective, having done this at a couple of companies now, kind of when do you know when to use deep learning versus machine learning, versus just basic statistics? >> How about that? >> Yeah. >> How do you parse that? >> Absolutely. You know, like anything else, it's very important to understand what problem you're trying to solve. When you have a hammer, everything looks like a nail, and deep learning might be one of those hammers. What we do is make sure that any problem that requires explain-ability, interpret-ability, you cannot use deep learning, because you cannot explain when you're using deep learning. It's a multi-layered neural network algorithm. You can't really explain why the outcome was what it was. For that, you have to use more simpler algorithms, like decision tree, like regression, classification. By the way, 70 to 80% of the problem that you have in the company, can be solved by those algorithms. You don't always use deep learning, but deep learning is a great use case algorithm to use when you're solving complex problems. For example, when you're looking at doing friction analysis as to customer journey path analysis, that tends to be very noisy. You know, you have billions of data points that you have to go through for an algorithm. That is, you know, good for deep learning, so we're using that today, but you know, those are a narrow set of use cases where it is required, so it's important to understand what problem you're trying to solve and where you want to use deep learning. >> To use deep learning, you need a lot of label data, right? >> Yes. >> And that's-- >> A lot of what? Label data? >> Label data. So, and that's often a hurdle to companies using deep learning, even when they have a legitimate deep learning use cases. Just the massive amount of label data you need for that use case. >> As well as scale, right? >> Yeah. >> The whole idea is that when you have massive amounts of data with a lot of different variables, you need deep learning to be able to make that decision. That means you've got to have scale and real time capability within the platform, that has the elasticity and compute, to be able to crunch all that data. >> Yeah. >> Initially, when we started on this journey, our infrastructure was not able to handle that. You know, we had a lot of failures, and so obviously we had to enhance our infrastructure to-- >> You spoke to Samit Gupta and Ed earlier, about, you know, GPUs, and flash storage, and the need for those types of things to do these complex, you know, deep learning problems. We struggled with that even inside of IBM when we first started building this platform as, how do we get the best performance of ingesting the data, getting it labeled, and putting it into these models, these deep learning models, and some of the instance we use that. >> Yeah, my takeaway is that infrastructure for AI has to be flexible, you got to be great granularity. It's got to not only be elastic, but it's got to be, sometimes we call it plastic. It's got to sometimes retain its form. >> Yes. >> Right? Then when you bring in some new unknown workload, you've got to be able to adjust it without ripping down the entire infrastructure. You have to purpose built a whole next set of infrastructure, which is kind of how we built IT over the years. >> Exactly. >> I think, Dave, too, When you and I first spoke four or five years ago, it was all about commodity hardware, right? It was going to Hadoop ecosystem, minimizing, you know, getting onto commodity hardware, and now you're seeing a shift away from commodity hardware, in some instances, toward specialized hardware, because you need it for these use cases. So we're kind of making that. We shifted to one extreme, and now we're kind of shifting, and I think we're going to get to a good equilibrium where it's a balance of commodity and specialized hardware for big data, as much as I hate that word, and advanced analytics. >> Well, yeah, even your cloud guys, all the big cloud guys, they used to, you know, five, six years ago, say, "Oh, it's all commodity stuff," and now it's a lot of custom, because they're solving problems that you can't solve with a commodity. I want to ask you guys about this notion of digital business. To us, the difference between a business and a digital business is how you use data. As you become a digital business, which is essentially what you're doing with cognitive and AI, historically, you may have organized around, I don't know, your network, and certain you've got human skills that are involved, and your customers. I mean, IBM in your case, it's your products, your services, your portfolio, your clients. Increasingly, you're organizing around your data, aren't you? Which brings back to cultural change, but what about the data model? I presume you're trying to get to a data model where the customer service, and the sales, and the marketing aren't separate entities. I don't have to deal with them when I talk to Verizon. I deal with just Verizon, right? That's not easy when the data's all inside. How are you dealing with that challenge? >> Customer is at the center of the business model. Our motto and out goal is to provide the best products to the customers, but even more important, provide the best experience. It is all about the customer, agnostic of the channel, which channel the customer is interacting with. The customer, for the customer, it's one Verizon. The way we are organizing our data platform is, first of all, breaking all the silos. You know, we need to have data from all interactions with the customer, that is all digital, that's coming through, and creating one unified model, essentially, that essentially teaches all the journeys, and all the information about the customer, their events, their behavior, their propensities, and stuff like that. Then that information, using algorithms, like predictive, prescriptive, and all of that, make it available in all channels of engagement. Essentially, you have common intelligence that is made available across all channels. Whether the customer goes to point of sale in a retail store, or calls a call center, talks to a rep, or is on the digital channel, is the same intelligence driving the experience. Whether a customer is trying to buy a phone, or has an issue with a service related aspect of it, and that's the key, which is centralized intelligence from common data lake, and then deliver a seamless experience across all channels for that customer-- >> Independent of where I bought that phone, for example, right? >> Exactly. Maintaining the context is critical. If you went to the store and you know, you're looking for a phone, and you know, you didn't find what you're looking for, you want to do some research, if you go to the digital channel, you should be able to have a seamless experience where we should know that you went, that you're looking for the phone, or you called care and you asked the agent about something. Having that context be transferred across channel and be available, so the customer feels that we know who the customer is, and provide them with a good experience, is the key. >> We have limited time, but I want to talk about skills. It's hard to come by; we talked about that. It's number five on Inderpal's sort of, list of things you've got to do as a CDO. Sometimes you can do MNA, by the weather company. You've got a lot of skills, but that's not always so practical. How have you been dealing with the skills gap? >> Look, skill is hard to find, data scientists are hard to find. The way we are envisioning our talent management is two things we need to take care of. One, we need solid big data engineers, because having a solid platform that has real trans-streaming capability is very critical. Second, data scientists, it's hard to get. However, our plan is to really take the domain experts, who really understand the business, who understand the business process and the data, and give them the tools, automation tools for data science, that essentially, you know, will put it in a box for them, in terms of which algorithm to use, and enable them to create more value. While we will continue to hire specialized data scientists who are going to work on much more of the complex problems, the skill will come from empowering and enabling the domain experts with data science capabilities that automates choosing model development and algorithm development. >> Presumably grooming people in house, right? >> Grooming people in house, and I actually break it down a little more granular. I even say there's data engineers, there's machine learning engineers, there's optimization engineers, then there's data journalists. They're the ones that tell the story. I think we were talking earlier, Asim, about you know, it's not just PhDs, right? You're not just looking for PhDs to fill these rolls anymore. You're looking for people with masters degrees, and even in some cases, bachelors degrees. With IBM's new collar job initiative, we're even bringing on some, what we call P-TECH students, which are five year high school students, and we're building a data science program for them. We're building apprenticeships, which is, you know, you've had a couple years of college, building a data science program, and people look at me like I'm crazy when I say that, but the bulk of the work of a data science program, of executing data science, is not implementing machine learning models. It's engineering features, it's cleaning data. With basic Python skills, this is something that you can very easily teach these people to do, and then under the supervision of a principal data scientist or someone with a PhD or a masters degree, they can start learning how to implement models, but they can start contributing right away with just some basic Python skills. >> Then five, seven years in, they're-- >> Yeah. >> domain experts. All right, guys, got to jump, but thanks very much, Asim, for coming on and sharing your story. Seth, always a pleasure. >> Yeah, good to see you again, Dave. >> All right. >> Thank you, Dave. >> You're welcome. Keep it right there, buddy. >> Thanks. >> We'll be back with our next guest. This is The Cube, live from IBM CDO strategy summit in San Francisco. We'll be right back. (playful music) (phone dialing)

why from Las Vegas Nevada it's the queue covers AWS reinvent 2016 brought to you by AWS and its ecosystem partners now here your host John Fourier and Stu Mittleman he welcome back everyone we are here live in Las Vegas for Amazon Web Services AWS reinvent 2016 their annual user developer conference I'm John furry with silicon angle Joe and Mike Coast give me a minute with boogie bond it's the cube our flagship program when we go out to the events and extract the signal noise and right now we have some really hot signal it's Andy jassie CEO of Amazon Web Services welcome back to the cube great to see you cube alumni three years in a row now you've been on the cube great to have you back keep the tradition going thanks for coming on it's great to be here and I wanted to congratulate you on your 29th birthday today I wish I'm eighteen actually you're gonna go that way I'll never get over eighteen okay appreciate that appreciate the merry Cammarata bringing the cake out for the team but what a birthday present for us to be at the cube this year because you guys have celebrate your 10 year birthday a little bit younger than I am but the world has changed in the past five years we sat down at your house and in your sports bar talked about the future and that's all on Silk'n angle comm and Forbes magazine calm but you guys have to set the agenda and 32,000 people up from 19,000 it's a significant uptick in attendance the enterprise cloud market is changing you guys are disrupting yeah your thoughts and on what's happened since Tuesday night with James Hamilton laying up a secret sauce of silicon brows back it's not being touched by anybody else efficiencies scale yeah well you know for us it's it's unbelievable to see how many people are here a reinvent I as I said in the keynote yesterday we weren't sure the first year that we could get 4,000 people to come so to have 32,000 people here and 50,000 more on our live streams for the keynotes it's just it's really inspiring and you know our teams spend most their time thinking about new new customer experiences new features new capabilities that enable our customers to build more for their customers and then operating the services and for our team to have a chance to be here with all of our customers for a week and just see how excited people are about what we're doing the platform I mean you really feel it when you're here it's a movement and it's a movement because it allows builders to build customer experiences much quicker than ever before and change their businesses you guys got a spy nose juice got some specific questions on some specific points but I want to get your thoughts on the Amazon what I call spring in your step for the first time at reinvent have seen some bravado but more you know confidence around thinking a position Vernor Vogel said a Mediate that sometimes doesn't understand things or hey why do I want to get a lower price by doubling upfront enough seeing the sales guy you mentioning a little bit of Oracle and but mainly it's the themes around the old garden and a new way so I want you to take a minute to explain your view on this new way this new environment because you're comparing interesting old ways of doing things how people buy from IP suppliers how technology is coded deployed and this new way where the game is all new ballgame everywhere scale changes in how people buy our changing it can you share your thoughts on this new way yeah well that's a I mean there's so much that we could share in that area but I you know I think that if you think about what's different about a company like Amazon and a business like AWS relative to the companies who've been providing infrastructure for the last few decades there are a lot of differences but I'll list a few you know the first is I think many companies talk about being customer focused very few walk and I think Amazon in every business including AWS is extraordinarily customer focused everything we do starts with the customer moves backwards from there 90% of our roadmap but what we build is driven by what customers tell us matters and the other 10% we try to listen to a customer's of trying to articulate and then read in between the lines and invent on their behalf I'd say most of the big technology companies the old guard our competitor focused and that could be a successful strategy they can wait and see what others are gonna do and then try to one-up them it's just not ours we tend to be customer focused second thing is we are pioneers you know we we hire builders who look at customer experiences and see what's wrong with them and then figure out how to reinvent them most of the old guard technology companies have lost their will and their DNA to invent and so they acquire most their innovation and that can work too but I think in a space as dynamic as the cloud which is the biggest technology shift in our lifetime you are much better off with the partner that has the most functionality that's iterating the fastest the most amount of customers the biggest ecosystem who's had the vision for how these things fit together from the start and then the third thing I'd say is that we are unusually long-term oriented you know I think one of the standard old guard tactics is that when a deal is to be done at the end of the quarter or the end of the year they show up at your doorstep and they harass you till you sign a deal only to be heard from again a few years from now well you actually need to sign a new deal that is not the way that we pursue our business we're trying to build a business and instead of customer relationships that lasts all of us and so we operate we treat customers we think long term and we iterate in a different way than you see the old guard do and you wrote the business case for creating AWS I think if somebody you know wrote the case study today they you talk about the flywheel you talk about the effect that scale has on your business I think many look at it is your scale and that flywheel allowed you to kind of compress margins in the industry overall well you know you know right the next business case that was scale let's kind of say if margin and you know you talked about how the race to zero wasn't it beyond kind of ancho piece of scale what is the advantage that you have with the experience and the scale and you know is there a new flywheel that goes beyond what we've been talking about well you know I think that there will be multiple successful players in this space because the market segments is something like AWS addresses are trillions of dollars worldwide but there are gonna be 30 it's gonna be a small handful and it's in part because scale really matters and in part because the amount of functionality that you need for people to choose you as their primary infrastructure technology platform is massive and we have a lot more functionality by a large amount than anybody else now I think that if you look at a couple of the key criteria and reasons that we've been successful one of them is that we just have iterated so quickly I mean I think that the rate at which we deliver new capabilities for customers is pretty unusual I mean every day on average customers wake up and they have three new capabilities they can take advantage of just by virtue of being on the platform but we're also on top of just delivering quickly we're innovating at a really rapid rate I mean look at what we did in building the no sequel database DynamoDB they would build look at what we did in building our own database engineer Aurora which is the fastest growing service in the history of AWS we just made Postgres compatible yesterday look at what we announced on the IOT side yesterday with green grass and with snowball edge look at what we did even with snowmobile where it's been impossible for companies to move large amounts of data look at how many instances we have and then look at us bringing FPGA instances to the client the pace of raw innovation on the AWS platform is very unusual and I think what that does that creates its own flywheel where because you don't have to spend a hundred million dollars upfront to buy an infrastructure platform you only pay for what you use when you make the choice of who you're gonna partner with is your primary infrastructure platform you want the platform the the most capability because it allows you not just to move your existing apps but to be able to launch new ones and any any imaginable business idea you have so one of the advantages Amazon has had both on that the dot-com side and now in the it beside it your data you've got a lot of information I think about what actually said that's part of a new flywheel that you're gonna be doing how much of that data is just what Amazon's gonna be able to drive and how much will that kind of spread to the ecosystem and your customers is there data exchanges or how do you look at data well we certainly have a lot of data and a lot of models and a lot of deep learning capabilities and we expose several of those to the AI services we housed yesterday but I think one of the significant flywheels you'll see over times that so many customers are storing their data inside of AWS because they love our storage services and our data stores that they're gonna want to use that data and they're gonna want to layer on top of it all kinds of analytics services whether it's batch whether it's you know various hadoop applications whether it's real-time processing of streaming data they're gonna want to run their data warehouse off of it and they're gonna want to run machine learning models as well as their AI models on top of it and even though I think loads and loads of companies will use the AI services that we've released yesterday I think a lot of the biggest machine learning that's gonna happen is company's own data companies have huge amounts of data that they want to get better signal from and a lot of that data lives on AWS and they're gonna use a lot of the analytics and machine learning tools that we have to get more value from it and you want to ask you specifically around the cloud competition we've said on the queue I think for you so at the first main event that we were here it's not a winner-take-all to winner take most the multi cloud conversations been going around and that's been kind of confusing people as well one of my goals this year at the reinvent was to look at the VCS dig deep once all the parties talk to entrepreneurs I wanted to find out from the canary in the coalmine the startups the developers what their their sense was they all love AWS because you you had a great service for them but now as the competition comes in Microsoft in particular spending a lot of dough trying to lure them in through their ecosystem Google mean they just have some tech not a lot of Salesforce these terms want to build their own sales forces and might not want to compete with Oracle or or Microsoft together monsters Salesforce massive commission incentives all kinds of mechanics that they're doing in the day and that product may or may not be as strong as you guys what's your message to that group of people that want to win with you what do you say to those guys on how do you look at that and what are the how do you respond to their feedback and what's the outlook for them because that's a big question of people's mind is I love Amazon I want to win with them but I might be lured by well you know I think if you look at the startup market segment the vast majority of startups continue you choose AWS as their provider and in fact you could argue an even larger share than before and the reasons are a few fold number one at the end of the day what startups want is they're trying to build incredible businesses and they're often trying to build businesses where the idea never existed before and to do that well you need the broadest functionality you can get Native US has much broader functionality with anybody else there's also a much larger ecosystem around our platform so if you actually want to use other software in your business you want to be able to use it on the infrastructure technology platform that you choose and again many more info system providers in the ad avails platform but they also are building applications where even though they're startups these security and the availability those applications are a big deal and there's just a lot more maturity in the AWS platform because we've been at it a lot longer you can't learn some of those lessons until you get two different elbows of the curve and as Gardner has said because AWS has several times the aggregate size so the next 14 providers combined we just have a different scale on a different set of lessons now we also help our startups and we go to market with our startups and we have get in front of our customers we have a lot of enterprise customers on the platform we're super interested in the new technology and the new offerings that our startups have and we continue to put them in front of saying at obviously Google obviously that's on the cube actually this morning Google doesn't really have a sales force now not known for customer engagement they're known for technology and I kind of hinted that Amazon doesn't have many sales guys but you do apparently a lot of simple you talk about the number how many sales people what's the field organization look like and he clarified that potential misconception that Amazon is just a self-service cloud well when we launched AWS in 2006 we had two sales people and in fact one of the first calls our first sales person made was to Tom McCaskill is the CEO SmugMug who has been just an incredible customer of AWS and provided so much valuable feedback and the ten and a half years we've been to the market but since then we have a very large field team I mean this is this is not a small team it's a very large field team with a lot of sellers and a lot of solutions architects and a large process yeah I mean it's it's it's you know we don't disclose the exact number but it's thousands it's it's a significant team sellers solutions architects professional services training certification it's a big team and we're continuing to grow at a very rapid rate yeah Andy you know that rapid rate is amazing to watch because you know you've spoken to us before about you look for builders you look for people that you know want challenges and keep learning I've talked to you know a few friends this week that have joined Amazon and they said the culture is different in a good way and I want you to talk about kind of that Amazon ethos there's you know a lot of companies have like mission statements you guys have leadership principles that are up on your website I hear they are you know quoted quite regularly you know in in daily life and it's you know very different can maybe there's a little bit of insight on that well 14 leadership principles and I think they've been the single most important reason that we have been able to scale as fast as we have and scale across the world the way we have without losing our culture and you know there are so many of the leadership principles that I think are really interesting you know one of them has to do with hiring and developing the best and we are really vigilant about not lowering the bar when you're trying to hire as many people as we are at Amazon and AW is a big temptation is just a lower the bar to allow you to move quickly and that's always a mistake when you're trying to build great products for customers I like you know I'll give you a couple the leadership principles I like one is the leadership principle that's being right a lot and when we first started when we rolled out the leadership principles people thought being right a lot meant that it had to be their idea they had at the start that she went with the people would get dug in and argue for their idea but being a leader and being write a lot means that you get to the right answer regardless of whose idea was at the beginning and regardless of how many times you change your mind along the way great leaders change their minds when they get new information so I really like that leadership principle I also really like have backbone disagreeing commit and so what that leadership principle is about is we don't just make it an option we expect employees if they disagree with the direction we're headed regardless of seniority of anybody in the room that they speak up and say we're going the wrong direction we're doing the wrong thing for customers even if we end up making the same decision we're gonna make before we end up with more rigor and the decision and people can argue too you know as long as they want as respectfully as they as they can in making the point and we're at the end of the day a truth-seeking culture so you know that old adage about two people look at a ceiling and one says it's ten feet and the other says it's 14 feet and they say okay let's compromise it's 12 feet what's very rarely twelve feet and so when you have a truth-seeking culture like we have it encourages people to disagree and debate with one but then once we make a decision yeah the disagreeing commit means that even if it's not the direction you were advocating everybody has to get him seeking argument you could say well if the customers not involve which version of the truth the customer has to calibrate that right I mean from here Stanfill ultimately the cut I mean we try to get customers involved the decisions we're making and we we speak to cus for input from customers yeah and we get input all the time but there are also times when you're making these decisions where you can't perfectly know we're trying to make what we think is the right decision for customers we get it right a lot of the time and sometimes we don't and if we don't then we'll learn from it sign here I gotta get this in but I gotta ask you a personal question do you get worried that you guys might get too cocky I mean right now you're on a great run rate the traction is amazing for me personally see it it's pretty stuff you know proud about you guys do this I'm a big fan as you know we're customer but you do a great work how do you guys not get too cocky what's that ethos what do you guys what do you say the customers would say it a little too big for your britches and Ian team how do you calibrate that I think that a lot of that has to do with the culture of the team and I think if you look at the culture of this team it is not a cocky team it's not an arrogant team it's a customer focused team and we I mean I think we're pretty thrilled with how things have gone the first 10 and a half years I don't think any of us would have had the audacity to predict yeah that would be where we are but I think we all know that the next 10 years are gonna have even more innovation and changed in the first 10 years so that's what we're really focused on and you know one another one of our leadership principles says that you know great leaders don't believe that their body odor doesn't stink you know and that's really intended to say that we recognize that there's all kinds of things that we can be doing better yeah and we have to be a constantly learning organization and that's the way we think about our business we have a lot of management style content on silca Daniel my third part of my three-part series with Andy final question I want you to summarize your you know really well done you had some nice clever confident in there the whole superpowers a bombastic claim with some that validated with some meat good very clever I like how you did that how would you summarize the keynote did the boy look down to what you were trying to accomplish what were you trying to convey what was the core theme of your keynote yesterday morning yeah the core theme really is that with the cloud with AWS builders have capabilities that were never before available to them on premises or elsewhere and with those capabilities or superpowers it allows them really to take on any technical challenge that they're facing and to build and implement any idea they can dream up and you know that was really the theme and then you know sprinkled in there we had a few announcements the 14 to be precise yesterday and then some customers who I think you know I think are really vivid illustrations of really reinventing their businesses and building customer experiences that weren't easily possible before doing it on top of AWS well congratulations on all your success I know it's still early I know I know you don't get to coffee knowing knowing you firstly after after the little sitting down with you and reinventing is about pioneering so you got to be humble and congratulations Andy Jesse the CEO of Amazon Web Services here in the cube I'm Sean for Ace to many are you watching Silicon angles the cube we right back with more live coverage of ABS 2016 reinvent after this short break