>> Announcer: Live from the Moscone Center. It's theCUBE! Covering AWS Summit San Francisco 2018. Brought to you by Amazon Web Services. (upbeat techno music) >> Hey, welcome back, everyone. We're live here in San Francisco. This is theCUBE's exclusive coverage of AWS Amazon Web Services Summit 2018 with my co-host Stu Miniman. We have two great guests. Hot startup from SingleFx, the CEO, Karthik Rau, and the CTO, Arijit Mukherji. Welcome to theCUBE. Good to see you again. >> Karthik: Yeah, great to see you again. Thanks for having us. >> So, we've been following you guys. You've been out five years. Two years in stealth, three years ago you launched on theCUBE. >> Karthik: Right here on theCUBE. >> We see you at AWS and VMware. Cloud's changed a lot. So, let's get an update. Karthik, take a minute to explain where you guys are at now company-wise, employees, traction momentum, product. Where are you guys at now? >> Karthik: Yeah, absolutely. So, SignalFx, first of all, let me tell you what we do. SignalFx is a realtime streaming operational intelligence solution. Basically, what that means is we collect monitoring data, operational data across the entire cloud environment, from the infrastructure all the way up to the applications. And we apply realtime analytics on that data to help people be a lot more proactive in their monitoring of these distributed environments. We launched the company in 2015. We come ... I'll let Arijit talk about our origins. We came out of Facebook. And we had a lot of experience building this to Facebook. In the past three years, we've been building up our company aggressively. We've now got hundreds of customers including several large Fortune 500 accounts, large web scale accounts like Acquia and HubSpot and Yelp and KAYAK. And we're over 100 employees now, about 120 employees. And yeah, doing great. >> So, Werner Vogels, the CTO, laid out on stage plus a great Matt Wood conversation about machine learning but the real thing that Werner laid out was the old way, the web server, multi-tier architecture stack kind of thing going on there to a more cloud DevOps horizontally scalable where sets of servers that could be spawned in parallel creates a new kind of operating model but also creates challenges around what to instrument. You know, as we would joke, someone left the lights on, implying EC2s been running. And all these kinds of things are going on. And you mentioned some of the Facebook kind of challenges. People were building their own scale. What have you guys learned and how does that apply today's modern infrastructure? What are some of the threshold challenges that companies are facing when they say, one, already there or I want to get there? How do you guys look at the main issues? >> Karthik: Do you want to take that? >> Yeah, so monitoring modern environments and infrastructure is actually quite a challenge. There's obviously a few things going around. One, as you mentioned, is the variety, the sheer variety of things. No longer just the three-tier architecture I have cloud services. I have containers. I have lambdas. I have my own applications. I have the cloud infrastructure itself that all needs to be monitored. And things are also becoming far more numerous. So, there's just many more of everything, right? And so, making sense of that space is becoming a big challenge. And our company was founded on the idea that monitoring is becoming an analytics problem. So, it's no longer about looking at individual servers or applications instances. It's more about making sense holistically over what's going on and being able to combine different types of data from different systems together to provide you with that high level view and that's the kind of functionality that we at SignalFx have been trying to provide. >> What are some of the data flows volumes look like. Cause I've heard multiple people talk about either Facebook or in open compute environments where there's just so much data coming in from the instrumentation that no human could actually get their arms around it. And you need to supplement it with machine learning and intelligence. I mean, is that something that you're seeing? What are some of the -- >> Yes, so actually what we see is different prospects or customers will be in different stages of a spectrum where maybe they were in a stage one where they're sort of using traditional architectures and then moving to these more modern systems. And as they get more modernized themselves, their use cases or the ways they wanted to do monitoring also gets more advanced. And so, we see the whole spectrum of it, as you mentioned. And so, understanding analytically how what we're is doing is great. But then you also want to take the human out of things as much as possible, right? >> Yeah. >> And make things more automated. And you want to look at the data and how things are behaving to learn from existing patterns to find outlines. So, that's really a very interesting challenge. And what I look at what we can do as a company going forward, like all the technological stuff that we can invest in, it's quite interesting. >> Yeah, Karthik, take us inside your customers. How does this modern monitoring, how does it change their business? How does it impact things like feedback loops and DevOps and everything that customers are having to deal in this kind of ever changing environment? >> Yeah, well I'll give you an example. There's a Fortune 500 company. They do product launches. And this is one of our customers and their product launches drive so much traffic that they do 80% of their business in the first two minutes of a product launch. And this is not at all uncommon in today's economy. And they're leveraging a lot of modern technologies, container architectures, serverless function architectures to spin up a bunch of capacity during these launches. And they were effectively flying blind most of the time. Because most of the traditional systems management monitoring solutions are not designed, A, to handle that volume. But, B, to handle the instant discovery requirements of if you're going to do 80% of your business in the first two minutes. So, the challenge is you're always playing defense. You're reacting to issues. And you're mostly flying blind. By leveraging SignalFx, they're getting realtime visibility, realtime discovery of these components as they're coming up. We're the only solution that can do that. So, literally within seconds of spinning up all of these containers, they're getting live streams into their dashboards, and live analytics, and live alerts. And what that's enabled them to do is be a lot more aggressive and effectively doing a lot more of these launches. So, that's driving their business and it's helping them drive their digital strategy forward. >> And microservices is really enabling you guys to be more relevant. Because truly the signal from the noise is where all these services reporting to? >> Karthik: Yeah. >> You talk about container madness. >> Karthik: There are two fundamental problems. So, one there's an architecture shift. And that's driving massive amounts of volume. You have physical machines that will live for three years in a data center. Divide it up into VMs, 10, 20 VMs per server. That'll maybe live for a few months. To now every process running in it's own container that might live for a few minutes. So, you have a massive exponential explosion in the number of components. But that's not the only problem. I was part of an architectural shift at VMware for a number of years. We weren't just affecting an architecture change. What's happening now is there's a cultural change and a process change that's happening as well. Because with containers, your development team can push changes directly out into a production environment. And what you're finding is you're going from sequential product development to parallel product development and a massive exponential increase in the number of code pushes. The only way you can operationalize that is you have to have realtime visibility in everything that's happening. Otherwise, the left arm doesn't know what the right arm is doing. >> John: And you need prescriptive and predictive analytics. >> Exactly. And you need predictive analytics to identify there's something unusual here. It's not a problem yet. But this is highly unusual and maybe it's your canary release. We need to do a code push. So, you want to roll it back. So, having that level of predictiveness becomes absolutely critical. >> Yeah, you mentioned realtime. We used to argue what really is realtime. And it was usually well in time to react to what the customer needs. What does realtime mean to your customers? Architecturally, is there something you do different to kind of understand what that means? >> Arijit: Yeah, so we actually fundamentally took a very different approach when we build a product. Where, typically, monitoring our metrics, monitoring was done with what we call a store and create or a batch-like architecture where you store all the data points that are coming in, then you create from it to any other use cases. While what we build at SignalFx is a fully end-to-end streaming architecture which is realtime. And what we mean by realtime is like two to three seconds between a data point coming through us and it's firing an alert or showing up in your chart. So, that's the kind of realtime. And it requires us to do lots of innovations up and down the stack. And we've built a lot of IP. We've got now patterns. And more are coming because the approach we took was quite novel. Different from-- >> John: You guys got a great management team. And looking at what you guys have done. I've been impressed with you guys. I want to just ask, Karthik, you mentioned about all these parallel processes that are going on. Totally agree. The process change, operationalizing an all new cultural way to create software manage the data. I mean, it really is the perfect storm for innovation. But also, it could literally screw people up. So, I got to ask you, who are you targeting for your customer? Who is the person that you talk to? Assuming it's kind of DevOps, so it's more like a cloud architect. Who do you target? Who do you sell to? Who's the buyer? Who uses your service? >> Karthik: Well, we see ... Every enterprise we see following a very similar journey. So, the first stage is, typically, you're just getting familiar with cloud. And you're probably just lifting and shifting enterprise workloads into the cloud. Probably experimenting with big data on the cloud. You're not yet doing microservices or containers or DevOps. And for them, we're still selling largely to classic IT. There just trying to get better visibility into their digital environment, you know, they're cloud environment. But then, what ends up happening is they very quickly get to what we call basically chaos. It's stage two. And it has a lot of parallels to shadow IT. What happened with SAS, where you have hundreds of different SAS tools is happening all over again with cloud but you've got hundreds or thousands of different operational tools. Different ways of doing monitoring, logging, security. And every team is doing it's own thing. And so, that's a big problem for enterprises who are trying to build best practices across their broader team. In that place, we're typically selling to departments because they don't have a centralize strategy yet. But what we find is the organizations at maturity have figured out that it's important to have certain centralized core services. And that doesn't mean they're forced on the end users. But they provide best practices around monitoring, logging, and such. And just make it easy for them to use those solutions. So, that's almost a new IT organization. It's platform engineering -- >> John: Is that a cloud architect? >> Platform engineering team, infrastructure engineering team, and they are effectively building best practices around the new stack not the traditional stack. >> So, you are or aren't targeting department level? Are you are? >> We sell to departments. But we also sell to the teams that are standardizing across the entire organization. >> So, cloud architects, for instance? >> Depends on the stage of the cloud journey. >> Or company. >> And the company, exactly. >> From an architectural standpoint, you talked that there's virtualization, there's containers, now serverless. How do you even figure out what to monitor in serverless? How fast is that changing? And how is that impacting your road map? >> So, serverless brings a very interesting challenge because they are very, very ephemeral. Like they're ephemeral in some sense. So, we realize there are two things. One is serverless, there's a reason why things are moving faster. It's because you want to be able to move faster. But then you also need to be able to monitor faster. It's no good monitoring serverless at five minutes later, for example. So, one of the things we invested in was how to get metrics, etc. and telemetry from these serverless environments in a very fast fashion. And that's something that we've done. The second thing we are doing that really works for this environment is afterall it's not about how many times a serverless function ran, it's about the value that it's providing the application that's running on it. And by focusing on a platform that let's you send these application metrics in great detail and then be able to monitor and analyze them, I think really amplifies the value in some sense. So, those are the two ... >> John: And talk about the ecosystems. One of the things I want to ask you guys because we've been seeing a collision between a lot of the different clouds. Clients want multicloud. Well, obviously, we're here at Amazon. They believe they should be the only cloud. But I think most customers would look at either legacy systems with some instrumentation and operational data to edge of the network, for instance. I mean, look at the edge of the network. That's just an extension of the data center depending on how you look at it. So, how do you guys view that kind of direction where customer says, "Hey, you know, I got a cloud architect. We're on Amazon. Of course, we have some old Microsoft stuff. So, we've got Azure going up there. We're kicking the tires on Google. And I got this whole IoT Edge project. SignalFx, instrument that for me. (laughs) Is that what you do? Or how do you deal with that? How would you deal with that kind of conversation? >> Well, I think most enterprises, the larger companies we see looking at multiple clouds. And they have different workloads running in different clouds, depending on the needs and what they're looking to do. So, the nice thing about a solution like SignalFx is we span all of these different architectures. And what we find is that most of the larger companies want to separate their business process solutions from their runtime architectures. Because they want to have a solution like SignalFx that it doesn't matter who you're using. If you choose to have your analytics intensive workloads in Google Cloud and your eCommerce workloads in Amazon, but you only want one system that will page someone in the middle of the night if there's a problem, then you have SignalFx to do that. And then you have your choice of runtime environments depending on what your developers need or what the business demands. We provide a lot of that glue across the different environments. >> Do you see that as the preferred architecture with most customers? Cause that makes a lot of sense. I mean, whether you're doing other data services, it kind of makes sense to separate out. Is that consistent? >> To have different applications >> Yeah. >> In different clouds? It depends. I mean, I think we see some people who are more comfortable running on a single cloud vendor and they make the decision based on what a portfolio of platforms and service features that are available. And they really like those, and they say it's easy to just go with one. But more often, we find people wanting to at least have some percentage running in a different cloud vendor. >> John: All right, final question. What's the secret sauce for the company? Tell us about the secret sauce. >> Arijit: I think-- >> We got the patents. I heard patents. You don't have to show all this exactly. But what is the secret DNA of the tech? What's the magic? >> I think it's our very unique architecture. It's entirely different from what you have. It's streaming and it focuses on scale, on timeliness, as well as on analytics capability. I think that unique combination is very special for us. And that, in a way, sort of allows us to address very, very different use cases, including this hybrid environments and what not, in a very effective way. So, it's a very, very powerful platform that can be used for many use cases. >> All right, so that was John's final question. Karthik, I've got one last one for you. What's it like being a CEO of a software company in the cloud era today compared to what it's been earlier in our career? >> Well, it's moving very, very quickly, right? I mean, technology always move very quickly. But I think compared to when I was at VMware in the mid 2000s, it just feels like every 18 months there's a new technology wave. You know, when we started our company five years ago, that was the first year that AWS eclipsed a billion dollars in sales and Dagra hadn't even launched. It launched a month after we started the company. And then serverless came. And now function architecture is all there. So, there's just so much change happening, and it's happening so quickly, it forces vendors like us to really be on the cutting edge and forward looking and making sure that you're keeping an eye out for what's coming cause the markets are moving way faster, I think, then they were 15 years ago. >> John: Well, Karthik, thanks so much. We appreciate you guys coming on, SignalFx. I'll give you the final word on the interview. Take a minute to share something with the audience that they might not know about SignalFx that they should know about. >> Well, I think what people may not realize is how realtime we can actually get. I think most people are used to doing all their monitoring and observation, and they think of realtime in the order of minutes, or if you can get stuff every 30 seconds. We really are the only realtime solution. That's why we say real realtime. We're on the order of seconds. You can build really, really sophisticated analytics and get visibility like you can't anywhere else. So, it's real, realtime. >> And that's soon to be table stakes. TheCUBE is realtime. We're live right here, on theCUBE here, in San Francisco at Amazon Web Services, AWS Summit 2018. We've been covering all the Amazon re:Invents since it started, of course. I'm John Furrier with Stu Miniman. Back with more live coverage after this short break. (upbeat techno music) (gentle instrumental music)

>> Announcer: Live, from the Moscone Center, it's theCUBE covering AWS Summit San Francisco 2018. Brought to you by Amazon Web Services. (electronic music) >> Welcome back to theCUBE's coverage of AWS Summit here in San Francisco. I'm Stu Miniman, happy to welcome to the program a first time guest, Sai Mukundan, who's in product management at Cohesity, excuse me, Sai, thanks so much for joining us. >> Thanks, Stu, lovely to be here at AWS Summit. >> Okay, tell us a little bit about your background and really, what led you to come to Cohesity? >> Sure, so as you know, Cohesity is one of the private VC funded companies in the Bay Area. I was actually in Microsoft Azure prior to Cohesity. >> Can't mention Azure here, we're at the AWS event, Sai. >> It's okay, I mean, that's where I was, right? >> So, I've been in storage domain, in the industry for some time, prior to that at Veritas. Being in product management for a number of years, and I think what drew me to Cohesity was really two things, right. One is the fact that it was led by, it's led by Mohit Aron, one of the pioneers when it comes to distributed systems and building and scaling companies. And then, the second thing is to really be part of something where you can make a big difference in industry. I mean, you are making a sea change in the storage domain, of all things, to become hard again. And so to be part of that change was really what drew me to Cohesity. >> Yeah, (mumble), you talk about storage in Cloud. You know, when you think back, it's like, remember, Cloud was going to be simple, it's just this wonderful thing. We just turn it on, I don't have to worry about things like, definitely don't have to worry about storage. You know, they'll take care of all my security, your backup goes away, I don't have to worry about any of the things anymore. Oh, wait, maybe we do need to worry about those things, right? >> Yeah, absolutely, absolutely. So, what we see from customers is, a lot of them really want to adopt the Cloud and have been adopting it in their own way, right? But what they're faced with is, really, broadly, I would say from a storage perspective, three different challenges. One is the fact that they have, they continue to have their on-premises and now they're looking to leverage the Cloud, so that's number one in terms of how can I make it very seamless without any point products or point solutions. The second is, from a Cohesity perspective, we are really focused on what we call a secondary storage. Things that are outside what we call the primary, which is not your mission critical, high IOPS, low latency applications, but things like backup, test, dev, DR, right? And so, there's a lot of silos in there. So, how do I adopt the Cloud, at the same time reduce the silo infrastructure? And the third one is really around ease of use and management and simplicity around it. So that's really where the complexity comes in and Cohesity is trying to address that. >> Okay, Sai, when I look, some of the marketing material from Cohesity, I heard the term, it was hyper-converged, secondary storage. Isn't that some box that lives in my data center? How does that fit into, kind of, the Cloud discussion that we're having today? >> Yeah, so let me clarify that myth a little bit, right. So, in the data center, yeah, you have a lot of boxes, right. But, from Cohesity, the way we like to think about our solutions is it's completely software defined, right. Software defined, API-driven approach to doing things. So let me, kind of, set you up with what the challenge is from a customer standpoint. So when you have secondary storage, or the element of backup and test, dev, and DR. What customers typically have is a combination of media servers, massive servers, talking to storage, tape, and then Cloud becomes an afterthought. You typically have some kind of a Cloud gateway, talking to various different public Clouds, right. So you can see how this environment is pretty complicated in the fact you have different point products. So very scattered and inefficient. The second thing, from an inefficiency standpoint, is the fact that there is the same copy of data maintained across many different systems. And then, now, when you think about the Cloud, you're now trying to manage the on-premise with the Cloud, right, and managing it in two different environments is not very easy. That's the problem space and then with Cohesity, what we are trying to do is, we have what we call The Data Platform, again that's the software-defined aspect of it, which can run on hardware that we provide. Or it can run on hardware that the customers bring to the table. So, again that's where the software-defined nature comes in. And the same software, we call it the Cloud Edition can run on AWS or any of the other public Clouds as well. >> Okay, so paint a picture for me. Is the data center kind of the primary piece and the Cloud, is it kind of a back up archive, things like that? Or are they equal and they live, or there's some customers, can I just have Cohesity software only in public Clouds, or does there need to be some data center component of this? >> It's really all of the above, in the sense that we have customers who think of it, think of a hybrid approach to doing things. So they have their on-premises and the Cloud as well, right. And, in the hybrid approach, they're typically trying to do two things. One is, leverage just the storage in the Cloud as an extension of their on-premise, wherein you can archive the data for long-term retention or for tiering. And then the second use case is really around test, dev, and disaster recovery in the Cloud. Then we have a second set of customers which are born in the Cloud, Cloud only, right. And that's where our Cloud Edition product, the software-defined nature of it helps them run in the Cloud and so all the same main points. We don't want any silos now existing in the Cloud, right. And then, there is a third category wherein they are predominantly on-prem today, but heavily looking to leverage the Cloud, and Cohesity is that data continuum, so to speak, in terms of a single platform, a single fabric, that can manage both on-premise, as well as the Cloud environment. >> Great, so I heard, Cloud Edition, I could be only in The Cloud and can work with Cohesity. >> Absolutely. >> When I look at customers, you know, it's typically heterogy as an environment. It's great if I've got some brand new, born in the Cloud there, but most customers, they've got a heterogeneous environment, which means, I've got multiple different storage types in my data center. I'm probably using multiple Cloud services, and we'd think that'd be a good position for Cohesity, to be that secondary storage layer, to help manage all of that, no matter what we are. Am I getting that right? >> Yeah, absolutely. I would say, the more fragmentation, or the more point solutions a customer is using today, the greater the benefit they can realize from Cohesity. 'Cause we are really bringing all of that together, right. So, you mention storage, storage is a big part of it. But, you also see a lot of customers looking toward up more compute as well in The Cloud, right. That's where the likes of Amazon EC2 and The EBS really comes in to play as well, right. And in that case, really, the use cases are test, dev, disaster recovery, and then the fact that they can do more with the data, right? One of the other things that our platform offers is the ability to do analytics on it. The ability to find insights, as Mohit likes to call it, it's dark data today, but we can shed some light on it. So that's really where the direction is where we are headed in terms of innovation and where Cohesity is headed as a company. >> Sai, what do you find from customers? Are they aware of the challenge that they have in the Cloud? I think, in the data center, it's kind of well known that I need to be able to deal with these. Are there customers that are just unaware that they've got some of these challenges or falling into pitfalls and losing data or having issues that they then have to deal with? >> I would say there are two sets of customers in that space. One is the customer who is really wary about things, who's really security conscious, who's kind of just dabbling with The Cloud, maybe, here and there, but really conscious about adopting it on a broader perspective. Just because they're really concerned about whether it's PII information, or any other security aspects, right. So, for them, having a solution that spans both on-premise and the Cloud really is a great stepping stone, so to speak, in terms of now I can confidently move the data to the Cloud. It's encrypted both at rest and in flight, and I can continue to use the same solution in both cases. We have a second set of customers, I would say, who are more, have been more bullish about the Cloud in general. But now they are taking a step back and saying, hey, wait a minute, I'm continuing to face some of these same challenges that existed on-premise in the past, right. It's siloed again, I have various different storage. We have S3, EBS, you have potentially other things, And then, I'm running into the same pitfalls. So how can I take a step back, take a more holistic approach and solve the problem? So, again, they're with the software-defined nature of our solution really appeals to them because we come in and we can solve some of those problems as well. They then face the same sort of problems in the Cloud world as they did on-prem world and now they can say hey, let me look at Cohesity as a solution that can get me there. >> All right, you brought up PII, so I have to ask the big question that's in everybody's mind lately, what about GDPR? AWS said this morning, all their services, fully ready, 100%, how does this impact Cohesity and your customers? >> So, GDPR is a big thing for us and our customers and prospects, as well. So we are actively working on getting GDPR compliant. Today, our platform is FIPS compliant, so that's already a big stepping stone to getting there. So we look at GDPR in one of, in two ways again, right. One is the the solution that we provide to our customers, The Data Platform and The Data Protector, as we call it, being GDPR compliant. Meaning, the data that lands on that system, the ability to delete the data, the ability to say who has access to the data, road-based access, things like that. The second aspect is our support and the fact that we have access to a lot of customer information ourselves, right. The fact that we can look at their systems and make sure that everything that we do internally is also GDPR compliant, so that the customers and our support systems and our salesforce database is all GDPR as well. So both those elements come in to play and we are actively working on all of them. >> Well, I wouldn't expect that you'd be looking at the customers' data. (Stu chuckles) >> Well, when I say customers' information, what I mean is the fact that when we access their platform, let's say they file a support ticket. The fact that now we can access their platform, debug their systems, look at the logs and alerts. It's equally important to be compliant there as well, from a GDPR stand point. >> Totally understand, I just wanted to make sure there wasn't any ambiguity there. Great, Sai, I want to give you the final word. We look forward to 2018, what can we be looking for from Cohesity as a regards to the Cloud Marketplace? >> Yeah, I think a couple of things there. One thing that you will hear more about is Cohesity and Cloud. We are actively, we have been working on The Cloud elements, both from a storage perspective and a computer perspective. But looking here, I would say more on what we can do with Cloud Edition, especially with the fact that there are more Cloud native, born in the Cloud applications and providing the same data protection and platform abilities in the Cloud, that is number one. And then the second aspect, I would say, is continued reinforcement of our hybrid message. The fact that we can solve this pain point for our customers in the on-prem world and the Cloud world. Really, from a scalable standpoint, from an API different standpoint, and the ease of use in management. Those three themes are something that you will continue to hear from Cohesity. >> All right, Sai Mukundan with Cohesity, thanks so much for bringing us the update. We'll be back with lots more coverage here from AWS Summit San Francisco, I'm Stu Miniman, you're watching theCUBE. (electronic music)

>> Voiceover: Live from the Moscone Center, it's theCUBE. Covering AWS Summit San Francisco 2018. Brought to you by Amazon Web Services. >> Welcome back, I'm Stu Miniman and this is theCUBE's exclusive coverage of AWS Summit here in San Francisco. Happy to welcome back to the program Jagane Sundar, who is the CTO of WANdisco. Jagane, great to see you, how have you been? >> Well, been great Stu, thanks for having me. >> All right so, every show we go to now, data really is at the center of it, you know. I'm an infrastructure guy, you know, data is so much of the discussion here, here in the cloud in the keynotes, they were talking about it. IOT of course, data is so much involved in it. We've watched WANdisco from the days that we were talking about big data. Now it's you know, there's AI, there's ML. Data's involved, but tell us what is WANdisco's position in the marketplace today, and the updated role on data? >> So, we have this notion, this brand new industry segment called live data. Now this is more than just itty-bitty data or big data, in fact this is cloud-scale data located in multiple regions around the world and changing all the time. So you have East Coast data centers with data, West Coast data centers with data, European data centers with data, all of this is changing at the same time. Yet, your need for analytics and business intelligence based on that is across the board. You want your analytics to be consistent with the data from all these locations. That, in a sense, is the live data problem. >> Okay, I think I understand it but, you know, we're not talking about like, in the storage world there was like hot data, what's hot and cold data. And we talked about real-time data for streaming data and everything like that. But how do you compare and contrast, you know, you said global in scope, talked about multi-region, really talking distributed. From an architectural standpoint, what's enabling that to be kind of the discussion today? Is it the likes of Amazon and their global reach? And where does WANdisco fit into the picture? >> So Amazon's clearly a factor in this. The fact that you can start up a virtual machine in any part of the world in a matter of minutes and have data accessible to that VM in an instant changes the business of globally accessible data. You're not simply talking about a primary data center and a disaster recovery data center anymore. You have multiple data centers, the data's changing in all those places, and you want analytics on all of the data, not part of the data, not on the primary data center, how do you accomplish that, that's the challenge. >> Yeah, so drill into it a little bit for us. Is this a replication technology? Is this just a service that I can spin up? When you say live, can I turn it off? How do those kind of, when I think about all the cloud dynamics and levers? >> So it is indeed based on active-active replication, using a mathematically strong algorithm called Paxos. In a minute, I'll contrast that with other replication technologies, but the essence of this is that by using this replication technology as a service, so if you are going up to Amazon's web services and you're purchasing some analytics engine, be it Hive or Redshift or any analytics engine, and you want to have that be accessible from multiple data centers, be available in the face of data center or entire region failure, and the data should be accessible, then you go with our live data platform. >> Yeah so, we want you to compare and contrast. What I think about, you know, I hear active-active, speed of light's always a challenge. You know globally, you have inconsistency it's challenging, there's things like Google Spanner out there to look at those. You know, how does this fit compared to the way we've thought of things like replication and globally distributed systems in the past? >> Interesting question. So, ours great for analytics applications, but something like Google Spanner is more like a MySQL database replacement that runs into multiple data centers. We don't cater to that and database-transaction type of applications. We cater to analytics applications of batch, very fast streaming applications, enterprise data warehouse-type analytics applications, for all of those. Now if you take a look inside and see what kind of replication technology will be used, you'll find that we're better than the other two different types. There are two different types of existing replication technologies. One is log shipping. The traditional Oracle, GoldenGate-type, ship the log, once the change is made to the primary. The second is, take a snapshot and copy differences between snapshots. Both have their deficiencies. Snapshot of course is time-based, and it happens once in a while. You'll be lucky if you can get one day RTO with those sorts of things. Also, there's an interesting anecdote that comes to mind when I say that because the Hadoop folks in their HTFS, implemented a version of snapshot and snapdiff. The unfortunate truth is that it was engineered such that, if you have a lot of changes happening, the snapshot and snapdiff code might consume too much memory and bring down your NameNode. That's undesirable, now your backup facility just brought down your main data capability. So snapshot has its deficiencies. Log shipping is always active/passive. Contrast that with our technology of live data, whereat you can have multiple data centers filled with data. You can write your data to any of these data centers. It makes for a much more capable system. >> Okay, can you explain, how does this fit with AWS and can it live in multi-clouds, what about on-premises, the whole you know, multi and hybrid cloud discussion? >> Interesting, so the answer is yes. It can live in multiple regions within the same cloud, multiple reasons within different clouds. It'll also bridge data that exists on your on-prem, Hadoop or other big data systems, or object store systems within Cloud, S3 or Azure, or any of the BLOB stores available in the cloud. And when I say this, I mean in a live data fashion. That means you can write to your on-prem storage, you can also write to your cloud buckets at the same time. We'll keep it consistent and replicated. >> Yeah, what are you hearing from customers when it comes to where their data lives? I know last time I interviewed David Richards, your CEO, he said the data lakes really used to be on premises, now there's a massive shift moving to the public clouds. Is that continuing, what's kind of the breakdown, what are you hearing from customers? >> So I cannot name a single customer of ours who is not thinking about the cloud. Every one of them has a presence on premise. They're looking to grow in the cloud. On-prem does not appear to be on a growth path for them. They're looking at growing in the cloud, they're looking at bursting into the cloud, and they're almost all looking at multi-cloud as well. That's been our experience. >> At the beginning of the conversation we talked about data. How are customers doing you know, exploiting and leveraging or making sure that they aren't having data become a liability for them? >> So there are so many interesting use cases I'd love to talk about, but the one that jumps out at me is a major auto manufacturer. Telematics data coming in from a huge number, hundreds of thousands, of cars on the road. They chose to use our technology because they can feed their West Coast car telematics into their West Coast data center, while simultaneously writing East Coast car data into the East Coast data center. We do the replication, we build the live data platform for them, they run their standard analytics applications, be it Hadoop-sourced or some other analytics applications, they get consistent answers. Whether you run the analytics application on the East Coast or the West Coast, you will get the same exact answer. That is very valuable because if you are doing things like fault detection, you really don't want spurious detection because the data on the West Coast was not quite consistent and your analytics application was led astray. That's a great example. We also have another example with a top three bank that has a regulatory concern where they need to operate out of their backup data centers, so-called backup data center, once every three months or so. Now with live data, there is no notion of active data center and backup data center. All data centers are active, so this particular regulatory requirement is extremely simple for them to implement. They just run their queries on one of the other data centers and prove to the regulators that their data is indeed live. I could go on and on about a number of these. We also have a top two retailer who has got such a volume data that they cannot manage it in one Hadoop cluster. They use our technology to create the live data data link. >> One of the challenges always, customers love the idea of global but governance, compliance, things like GDPR pop up. Does that play into your world? Or is that a bit outside of what WANdisco sees? >> It actually turns out to be an important consideration for us because if you think about it, when we replicate the data flows through us. So we can be very careful about not replicating data that is not supposed to be replicated. We can also be very careful about making sure that the data is available in multiple regions within the same country if that is the requirement. So GDPR does play a big role in the reason why many of our customers, particularly in the financial industry, end up purchasing our software. >> Okay, so this new term live data, are there any other partners of yours that are involved in this? As always, you want like a bit of an ecosystem to help build out a wave. >> So our most important partners are the cloud vendors. And they're multi-region by nature. There is no idea of a single data center or a single region cloud, so Microsoft, Amazon with AWS, these are all important partners of ours, and they're promoting our live data platform as part of their strategy of building huge hybrid data lakes. >> All right, Jagane give us a little view looking forward. What should we expect to see with live data and WANdisco through the rest of 2018? >> Looking forward, we expect to see our footprint grow in terms with dealing with a variety of applications, all the way from batch, pig scripts that used to run once a day to hive that's maybe once every 15 minutes to data warehouses that are almost instant and queryable by human beings, to streaming data that pours things into Kafka. We see the whole footprint of analytics databases growing. We see cross-capability meaning perhaps an Amazon Redshift to an Azure or SQL EDW replication. Those things are very interesting to us, to our customers, because some of them have strengths in certain areas and other have strengths in other areas. Customers want to exploit both of those. So we see us as being the glue for all world-scale analytics applications. >> All right well, Jagane, I appreciate you sharing with us everything that's happening at WANdisco. This new idea of live data, we look forward to catching up with you and the team in the future and hearing more about the customers and everything on there. We'll be back with lots more coverage here from AWS Summit here in San Francisco. I'm Stu Miniman, you're watching theCUBE. (electronic music)

>> Announcer: Live from the Moscone center it's theCUBE covering AWS Summits San Francisco 2018. Brought to you by Amazon Web Services. >> Welcome back, this is theCUBE's coverage of AWS Summit San Francisco. Here at the Moscone Center West. I'm Stu Miniman, happy to have a distinguished panel of guests on the program. Starting down of the fair side, Steven Jones whose the Director of Solution Architecture with AWS, helping us talk about how AWS gets to market is Chris Wegmann, Manager and Director of Accenture, and then super excited to have a customer on the program Chad Anderson is the IT Director of Operations at Del Monte Foods. Gentleman, thank you so much for joining us. >> Thanks for having us. >> Alright Chad, we're going to start with you, talk to us a little bit about your role inside Del Monte and really the journey of the cloud, something we've been talking about for years, but Del Monte has an interesting story. I want to kind of understand your role in that. Start us off. >> Ya so I oversaw the project for us to migrate everything to AWS. We started off with just needing to really understand if were missing something here. Like, shouldn't we be moving to the cloud and that ended up in a study where we just kind of went threw the numbers, we looked at what the benefits were going to be and it kind of just turned into a obvious choice for us to do it. >> Back us up for a second, give us you know your organization Del Monte Foods and your technology group is this global and scope kind of how many end user do you have? How many sites? Can you give us a little bit of the speeds and feeds of what what was being considered, was it everything or some pieces, what was the impetus for the journey of the cloud? >> Ya, so we have about a thousand users, globally we are mostly in Manila, for our global share services our business back office work is done there and then most of it is U.S. footprint of plants and distribution centers and headquarters, et cetera operations. >> Alright so Chris, the SI partner for this cloud journey. So bring us a little bit of insight, bring us back to you know, kind of what was the business challenge and what was your teams role in helping along those journeys? >> The business challenge was getting Del Monte, getting the heart of their organization SAP to AWS quickly. Alright, there was a short time frame, I learned a lot about fruit packing during the project, but it was about how quickly could we get there? So, when we actually started, we started looking at taking seven months to do the migration of their environment. We really got into it and really got focused on what needed to be done. We looked at a lot of automation, put a lot of automation on the process, a very diligent approach, and we were able to do it, we thought we could do it in four months, and we did in three and a half months so very rapid, and I think as Chad will tell you we really kind of focused on building the right architecture, putting a lot of automation, and then also getting it in there with the right performance and then being able to tune things down, because you can you can move so quickly between engine sizes and memory and it was a really really exciting process to go through. >> Ya, so you said it originally we thought it was seven months, and it was good and done in half that time. That's not my experience with Enterprise Software roll outs. So, what was the delta there? How was the team able to move so fast? >> A lot of it was obviously AWS, being able to spin up the infrastructure, being able to automate a lot of the tasks that had to be done. Alright we did it threw three different environment sets. So we started diligent, moved to test, then went to production, and in each step we automated more and more of the process so we were able to condense the speed of the technical work that had to take place in a really short amount of time. >> We had to treat it also, like a mission critical thing across it wasn't just a infrastructure move it really the application guys were focused on this, we stopped all development of other activities going on. We really just kind of turned everybody and say "Let's get this done as soon as possible "and not be competing with each other." >> When you say stop everything, but of course the business didn't stop, but was transition pretty seamless. >> I mean other projects. >> Ya, ya, ya I understand, but I mean from the cut over and from your users stand point, did it go pretty smoothly? >> Oh definitely, these guys did an amazing job of putting together a plan that was really ready to be executed against. It took some, it took a lot of, I mean on my part it was really just to negotiate the extended maintenance window, but as far as the best compliment I ever got was people were like what did you do? Like I didn't even know that you guys did anything. From day one they took it and ran with it and we were stable. I mean it was pretty awesome. >> A black box, magic happens here and all of a sudden everything is running faster, scaling easier, cost is better, some of those types of thing? >> Ya, cocktails and beach time. >> Steve cocktails? I didn't realize that when I moved my enterprise application to cloud cocktails were involved. >> A few cocktails are involved. >> I mean look, I remember a few years ago where it was like well it's your development will do in the cloud, but I mean SAP has really raised cloud full boar and you know very strong partner, but bring us up to how does AWS help customers make sure that, this is critical things running the business, that it runs so smoothly. What have you learned along the way? What is different in 2018, then say it was even a year or two ago? >> A lot of great questions in there Stu, I would say this is become the new normal. Right? It use to be full disclosure, dev test, training type work loads in the early days but over the course of years we have taking a lot of learning with partners like Accenture and customers like Del Monte and we've taking those learnings and put them back into the platforms, so what you see today is a platform that a partner like Accenture could come in build a lot of automation tooling around, to reduce time frame from seven months down to three and a half. I think it was around two hundred servers, 50 of those were SAP related, and 25 terabytes of data that were moved in a short amount of time. So it's a combination of years worth of effort to build a platform that is scalable, resilient, and flexible. As well as the work that we have done directly with SAP that has gone right back into the platform. >> Chad bring us inside kind of operations on your team. What is the before and after? What's it look like? Was there change in personal or roles or skills? >> We transition services with our migration. So the Accenture team has taking over the long term operational activities as well as helping us through the migration efforts. We had a lot of preparation that was going on besides the server migration that was happening and I think what is really unique about them is because they can deliver these capabilities of the migration they have got a lot of the tooling and the automation is built into the operational mana services model as well. So it's been a much easier kind of hand over from those teams because we are working with the same vendor. >> Most of the time its not just that I've migrated from my environment to the cloud, but how does that enable the new services either Accenture from AWS from the marketplace. What has changed as to how you look at your SAP environment and kind of capability wise? >> It's just incredibly flexible now. It's just one of those situations where we can start small and we can scale so rapidly and it's like I feel like its kind of like walking into a fast food restaurant and just like oh, I'll take one of these, one of these, and one of these. You wait there and the food comes out, it just happens automatically. So, it's a great thing. >> Chris, I remember I interviewed a CEO a few years ago, and he said use to give me a million dollars in 18 months and I'll build you the Taj Mahal from my applications. Today I need to move faster and it's not a one time migration, but there's ongoing I've heard it a time and again there, so where does Accenture, it's not just the planning, where's Accenture involved? What is kind of the ongoing engagement? >> We go end to end. Right? So, we start out with strategy, we start out with a migration. The migration takes planning and execution, but really we focus on the run area as well using our Accenture platform and tooling that we have built. We really focus on how do you continue to optimize? How do you continue to improve performance? How do you govern? How do you do things like quota and security management and that type of stuff. I do think that a lot of our customers start with cloud think I can spin this stuff up, I can run it just like I ran my on premise data center and it's not the same. You go from a capacity planning person to a cost management person. You need to have a cloud architect understanding how you build your applications to be Cloud ready and AWS ready. There are a lot of great services, but if your not taking advantages of those services you can't auto scale, you can't do that stuff. So, we really help our clients go threw that entire process and make sure their getting the most value out of AWS all the way through the run for many years after they have done the migration. >> Chad, do you have any discussion of how are you reporting back to the business as to what were the hero numbers or success factors that said hey this was actually the right thing to do? >> Ya I mean we're a canned food company, so people are very interested in making sure that we are keeping our cost low. Most people from a business prospect want to talk to me about the efficiencies that their seeing and how's that going to show up a reduction in SG and A. We have seen it, I mean when you move to a group of people that can manage a larger set of infrastructure with a smaller group of people and the underline services can be turned on and off, so you only utilize what you really absolutely have. Those numbers show up on our bottom line. >> Steve, any other similar, what do you hear from customers when it comes to SAP, and what is the main driver, and what are the big hero things? >> So in the early days, it was all about cost right, driving cost out of the system. Now it's the flexibility, the ability to move quicker. Chad was relating earlier how you would spend a lot of time sizing environment and now there actually able to right size their environments using purpose built equipment the AWS has built for SAP. It's enabled them to actually reduce cost and move quicker. That's what we are hearing is common theme now these days. It's okay to move faster, to maybe not worry about sizing as much as we use to. >> Ya for future initiatives, I mean it's, there's all these windows of time that are just gone for us to stand up new services whether it's traditional application that needs servers and computer, whether it's SAP services, we are kind of all on that platform now where we can just click and plug in items much easier. >> Chad, what do things like digital transformation and innervation mean to a canned food company? >> We are desperately trying to get in touch of our consumer. So, whether were figuring out how to get improve kind of how we are managing our digital assets, how were managing, our pages on Amazon, or our pages on Walmart.com. We need to be much more in touch and much more consumer focused and a lot of these newer technologies, et cetera there built to run on AWS and we ready to kind of integrate that into our existing enterprise environment. >> Innervation has been a big part of our customers reason for moving to cloud. I'd say 18 months ago, we saw a big transition in our enterprise customers a lot of them were starting off with cost savings, for operational savings, just overall improvement of their operations, and then we seen about 18 months ago we saw a big shift of people very much focused on innervation and using AWS platform as that catalyst renovation. So, the businesses asking for Alexa apps, they're asking for the integration. Well, the SAP data has to be there to support that stuff. Right, and your enterprise tech has to be there, so by doing that it's enabled a lot of innervation in our processors. >> Chad, last question when you talk about innovation, are there certain areas that your team's investing in is it AI, is it IOT, you know what are some of the areas that you think will be the most promising and how do Accenture and AWS fit into those from your planning? >> Ya, I mean IOT is definitely an interesting area for us, and getting to a point where we can measure our effectiveness and our manufacturing processes, those are all really initiatives now that we're starting to focus on, now that we kind of gotten some of the infrastructure related stuff and were ready to kind of build out those platforms. We're talking about scaling out our OE software and our infrastructure its just such an easier conversation to kind of plan for those activities. We turned a three month sizing exercise as to how much IOT did and we think were going to have to process through these engines into a hey let's go with this and if it doesn't work then we'll take it out and increase the size. It really helps us deliver capabilities new capabilities and new types of ways of measuring or helping our business run in a much more effective and efficient way. >> Anything that you've learned along the way that you've turned to peers and say "Here's something I did, maybe do it faster or do it a little bit different way?" >> I think Accenture has been an amazing partner. I think a lot of people are skeptical about running their entire enterprise across the network and once you kind of bring them in and you really let them look under the cover of what you have. One of the reasons we went with them was just the trust and confidence that they had that we could do this. Once I kind of saw that it was like well I mean let's trust the process here. I mean these guys are the experts and so so that's been a big thing is just reach out learn about what people are doing. There's no reason why you can't do this. >> Well Chad, Chris, and Steve thank you both so much for highlighting the story of a customer's journey to the cloud. We will be back with lots more coverage here at AWS Summit in San Francisco. I'm Stu Miniman. You're watching theCUBE. (upbeat music)

(techno music) >> Announcer: Live, from the Moscone Center it's theCUBE. Covering AWS Summit, San Francisco 2018. Brought to you by Amazon Web Services. >> Hello everyone, welcome back to theCUBE's exclusive coverage here in San Francisco, I'm John Furrier with Stu Miniman. This is Amazon Web Services, AWS Summit 2018. We got two great guests, Dave McCann the vice president general manager of AWS Marketplace and Service Catalog and Matthew Scullion is a CEO of Matillion, partner of Marketplace. Guys thanks for coming on good to see you again >> Thank you. >> Thanks for havin' us. >> Alright, so Dave, Marketplace is doing phenomenal, well, we talked with Lew Cirne from New Relic at Reinvent, and was talking about how successful they've been on the Marketplace, so clearly it's working, 170 thousand active customers on stage, we saw the keynote today, What's going on with the Marketplace? Take a minute to explain how the Marketplace is set up now and how it's evolved to this point. >> Thank you, so, great to be back. Can't believe it's four months since Reinvent. So Marketplace is a digital library, of software. You know the cloud is helping our customers innovate faster but you need to be able to innovate with the software not just with the compute and the storage, and so our purpose is to stand up a digital library of software for our customers to subscribe and launch, and we're continuing to grow on multiple dimensions. We've deployed out to all the new standard regions, so we're now up in Korea, we're clearly in LHR so in all the standard regions we've fit Marketplace. And then we continue to expand the library of software, so more and more companies, like a Matillion, publish into the library. We're over 1,300 software companies now, and we're over 4,000 different software titles and you know, our customers show up, they're typically a developer or a manager, with a project with a budget, and they're looking for the best tool that they can keep the project going on schedule. >> And just to make clarification nuances, I know it's commercial and is there a public sector version or is it all one? >> That's a really good question. We actually launched Marketplace last August in our GovCloud Region, so we do actually operate a GovCloud Region for our US government customers and we actually offer a separate Marketplace for the US intelligence agencies. So that's the library of what were doing and we continue tho grow and as Werner said this morning, bunch of new stats. >> The business, the business model obviously people see, um, two things happening. I want to get your reaction to, one is Werner Vogels laid out how services are going to be laid out all over the place and it's not, you know, monolithic as he says. They're all a bunch of services. Scale is a huge factor in enabling that, and also the business model changes are going on, we're seeing people be successful. How are your customers and partners using Marketplace today, how does it work, I mean, do they just call up and say, "Hey! Dave I want to get in the Marketplace." I mean what, I mean, obviously downloading services, enabling services makes sense. How is it working? Like what do they do? Like what's the model? >> So, let's start from the customer and walk backwards. You know Amazon talks about working backwards from the customer. So typically in a company will be a set of developers who are building on us and they'll have a set of architects very often they've a few cloud architects and across the set of software, networking, security, database, dealer analytics, BI, DevOps, all the way to business apps. There'll be a set of architects saying, "What's the best software as we move to the cloud? "Do we bring what we had, or do we buy new?" So the architects are recommending to the developers, "Hey, for your project, here's a good tool." So in the buyer, architects are recommending, and then the developer gets told you can use these vendors. On the seller side of things, software companies like Matillion have to decide "How do we reach the AWS customer?" and then they have to package up their software, put it in our library, and make a bunch of decisions that he can talk about, and then they make it available. >> Yeah Dave it's been interesting to watch kind of the maturation in the Marketplace. It's been large for a number of years but how your partners have changed how they package software, last year there was a discussion that you know, it changed how billing is done, so that Amazon can help make it just seamless for customers, whether they buy service from, you know, AWS or beyond. You know, give us, you used to talk about the customer and the partner, walk us through a little bit of that maturation and how that's that's gone. >> So, we're a six year old service and so we you know we're agile, we keep releasing features. So last year in April, at San Francisco, with Splunk we launched something called SaaS Contracts, which was a new API for SaaS vendors and now we have over 300 SaaS companies in the last year that have developed to that API. So a software vendor can decide they want to deliver as a software package or as an AMI so it could be SaaS or AMI. And we also provision APIs. So we're constantly introducing flexibility on how that vendor can price and package and the more we innovate, the more software companies use our features. >> Yeah, I'm sure you get asked, you know, what's the concern, is there concern, from some of the SaaS players that, "Oh, I'm going to go in there, "I'm going to price and package the way Amazon does, "what's to stop them from just kind of "duplicating what I'm doing and becoming a competitor?" >> You know, that question comes up a lot, and you know look, the software industry is $550 billion. It's growing at 6% a year which is $30 billion and AWS all late last year did about $18 billion. So the software industry is growing by an AWS a year, and the reality is there's so much innovation going on that whatever innovation we're doing, you know, there's lots of room for other software vendors to innovate on top of our stack, 'cause we live in an expanding universe. >> Stu and I always joke, it's like so funny, we look at the, we watch all the cloud, of your competition, you Google Microsoft and Oracle, IBM, whatever, and they all quote numbers. If you factored in the ecosystem, in your number, the cloud revenues would be, I mean trillions. So you know, you guys I know you don't include that, in the numbers and like Microsoft does put Office in there, so it's kind of apples and oranges and so you know, Matthew I want to ask you, 'cause you're a partner. You're doing business on that, so, this is the formula we've been seeing that's been working where, the ecosystem growth, rising tide floats all boats, clearly that's Amazon's strategy. And they're opening up their platform to partners. So talk about what you guys are doing. First, take a minute to explain your company and then talk about your relationship to the Marketplace, and how that's working, and the relationship, how you make money, and the business model behind it. >> Yeah sure, and thanks for the question and for having me. So first of all Matillion, we're a software company, an ISV we make cloud-native data integration technology, purpose-built for this new generation of cloud data warehouses. For us that's Amazon Redshift, it's also Snowflake, and we sell both of those products on the AWS Marketplace, So customers are using us any time when they want to compete with data, so drive product development, or service their customers better, or in fact, become more efficient in the way they run their IT infrastructure. Perhaps migrating an on-premise warehouse into the cloud. So we developed that product through 2014-15, and we were looking for a route to market. Being honest, originally we were going to set it up as a SaaS business, and I saw a pitch from one of Dave's reports, a guy called Barry Russell, talking about AWS marketplace. We're like, okay here's a platform that's going to allow me to deliver my software anywhere in the world to any AWS customer pretty much instantly. More to the point, it's going to deliver my customer a really excellent experience around doing that, from a performance point of view, my software's going to go to go into their VPC sat right next to their data sources, in their Redshift cluster. From a security point of view, that question, very important in data integration, just taken totally off the table, so inside that firewall inside their VPC and of course super convenient and simple to buy. You just access AWS Marketplace, pay with Genuine Cloud Economics by the hour and stand it up pay a few AWS bills. So a really compelling way to deliver the software. >> Was there a technical integration required on your end? I mean like, there's some clients that are born in the cloud Amazon, some are, have built their own stuff. Do you have to, I mean, where are you guys fit into that? One, are you using Amazon? If not, was there any integration piece that you had to do? And if so, what was the level of work required to integrate? >> Yeah, and to be honest, I think this is, you know, the key question on how to be successful selling in this this kind of landscape of public cloud vendor marketplaces and, and the public cloud. So, I mean we're a born on AWS and in fact are born on AWS Marketplace products, and that intersection of product engineering with the route to market, and it's not just the software, it's also the things you surround it with, like great quality content, online support portals, videos, a really great launch experience, that means you're going to be clicked to running our software, commercial-grade ETL tool in under five minutes, free for the first 14 days and then by the hour billing, you know, there's a lot of different angles that go into that and you've absolutely got to be thinking about it. Other people are being successful just kind of sticking their products on the Marketplace and using it just as a billing mechanism but I think for us one of the reasons we've been able to drive great customer resonance and growth, is having that intersection of engineering, content and the Marketplace, together. >> Matthew I wanted have you talk to me a little bit about Matillion, 'cause when I think about kind of customer acquisition, you know Data Warehousing Market's been around for a long time. Redshift's been doing phenomenal, I mean for a while it was the largest, you know, fastest growing product in the AWS you know, portfolio. Being only through the Marketplace, does that, you know, how does that help you get customers, how do they learn about you? Do you ever worry about, like, oh well they just think I'm an Amazon service? Maybe that's a good thing. You know, I'm just curious about kind of that whole go-to-market and relationship with the customers being, you know, super tight, with AWS, you said Snowflake's in there too, so yeah, I'm just curious about that dynamic. >> Yeah, I mean the, the AWS only service thing that historically was a pro and a con. So back in the day we were just Redshift. We're now a couple of other data warehouses as well, you mentioned Snowflake, that's quite right. So that's allowed us to kind of move up the value chain with our customers and give them some choice, which they wanted. Yeah, I think in terms of the go-to-market economics, I mean, we all say this, sometimes its glib, here I think it's authentic. You want to start with what's best for the customer, right. And so we're delivering with genuine cloud economics. Our product starts at $1.37 an hour and yet it'll scale to the world's largest enterprises, and if they don't like it they can turn it off. Typical SaaS products, you're actually signing up for 12 months. So you're not that focused on keeping your customer happy for 11 of those months. Me, I need to keep that customer happy 100% of the time, because he can turn it off any time he likes. >> Yeah, yeah, I always wonder sometimes as an analyst, you know, should it be called a SaaS product if I'm signed into a year or multi-year contract. >> Yeah, so really interesting dynamic of our business is our entire revenue drops by 15% Saturday, Sunday, and it's cause people are turning off dev instances. They come back on Monday morning. Now, as a CEO I could worry about that and say, "Where's my 15% gone Saturday, Sunday?" Actually I'm delighted, 'cause it means my customers are only paying for value they're getting out of the product. >> And then, so about the business model, I wanted to drive into that. I want you to explain and give some color commentary to what your choice was if you didn't have the Marketplace. Hire a sales force? That's going to cost you some money. First you got to find people. >> Yeah. >> Push it to about a thousand customers, run ad campaign. Did you guys do the analysis and say, "Whoa, this is like A,B"? >> Well, so when we launched this product, we were a 12 man company, so I'm not going to say that we rolled in a management consultancy to work that stuff out for us, being honest. But we took a view. I think there have been two big things. First of all, in those very early days when you're trying to find some product market fit, you're trying to find some customers. That global reach instantly delivered by the Marketplace is amazing. So I'm from Manchester UK, apologies for the accent, that's where a good part of our business is still based, although we have offices now in New York and Denver and Seattle as well. If you drill a vertical hole downwards from Manchester, UK, you pop out in Melbourne, Australia that's the first customer we picked up on AWS Marketplace, still a customer today. So in those early guerrilla days, >> No travel, instant global footprint. >> And they were spending money with us before we spoke to them for the first time as well. Now today, we do have a sales force, of course, but it's not a sales force that's closing big deals. They're being value-added, and additive, they are escorting customers through the buying journey, and we've got just as many pre-sales guys as we have sales guys just helping the customer 'cause that's what we want to do. They're going to use the products and consume it 'cause it's easy to do and to turn it off. >> So you focus the high-value activities with the high value employees on the right customer mix, while the rest is just kind of working through the cloud economics. >> Yeah, that's it. Hey, we have to do marketing, of course. We're here doing an event, it's going great. We were lucky enough to be mentioned in the, in the keynote this morning, so our booth's been swamped, >> And now you're on theCUBE, you're a CUBE alumni. >> Exactly. >> The world's going to see, going public next. >> One of the things we do on the marketing front, is when you come into Marketplace and you talk about how we onboard a seller, we have a whole team who we call category managers and so there's an expert over each subject area such as data analytics or networking or security and we not only give them the engineering advice on how to package, on how to onboard and by the way we didn't curate manage so we publish his AMI and he tells us what regions he wants it to go to. And so he may say, clone to Korea, but I don't want it over here, so the seller could decide geography but then we lay on a business go-to-market plan and we actually develop a joint go-to-market. And so we'll do co-marketing with our sellers, and they can choose whether it's by country, by territory, is it large enterprise, is it small business. So there's a set of business advice that we lend. >> So you apply some best practices and some market intelligence on the portfolio side. >> Exactly. >> And the sector. And then we have all the data right? We provide these guys with a real time API they're pulling data off the API every day and what's happening, and so were monitoring that data and everything's measured so this is a digital channel. And then of course the ultimate thing we do when I ran my last SaaS company, we provide the billing platform. And so the buyer comes in on the AWS account, uses the AWS account, so now we bill on behalf of, we do the collection from the buyer, and then we disperse the funds back to the vendor. >> You're making the market for 'em, and they're still doing their blocking and tackling. >> The customer gets a really good experience on their bill and then the customer spend actually becomes visible in Cost Explorer, so we've tagged everything, so we also tagged it so that it's "this is Matillion", and so the customer knows "I'm spending X much on, "X amount of dollars on Matillion on that stack." >> So you're a sales channel and you're adding more value, Matthew, if someone asks you, just say I say, "Hey Matthew, look I got a great product and it's kickin' ass, I want to get into Marketplace" what do I do, what advice would you give me, what would you say? "Oh, I'm skeptical of Amazon's Marketplace" or, "Hey, I really want it". How would you talk to those two tubes of audiences? >> Yeah, so I think the first thing, and we alluded to it earlier, is I think really hard about that 360 experience of packaging the product and how it's launched, that's engineering in the software itself. You need to think about how the customer's going to interact with it, but you also need to clothe that software with great quality content and support, and finally the right type of go-to-market motion around that. And one of the big benefits for us in terms of the AWS Marketplace has been the efficiency of the sales model. So we've got really efficient go-to-market economics and also the types of customers that we sell to and we've, for a company of our stage, you know, we're a post series B, high-growth software company, but for a company of that stage, we are, have a disproportionately high number of global 8,000 global 2,000 customers, that are because Marketplace takes away the barrier of selling into those guys. So as advice on how to be successful, I'd focus on that packaging side and advice as to why to do it, you've got instant worldwide reach into the traditional stomping ground of the the startup other tech vendors but also into the world's biggest software users. >> A virtuous circle, faster to the customers, at a lower cost structure, you still make money, everyone's happy, sounds like a, the Amazon business model. >> It is. >> Great customer experience, great selection, and you know, adoption by the customer, and then continued innovation. Another thing that we do is we have a portal where these guys are publishing new versions, so it's not a one-and-done model. So as these guys update their models, their engineers just publish into seller portal and then that new version comes in, and then we publish that new version out to the customer. So there's a refreshing of the AMI so the latest version is up there. >> And Werner's keynote today really highlighted it's not just about developers anymore, it's about the business teams coming together, pushing stuff real time to the Marketplace is now a business ops model and it's really kind of coming together with entrepreneurial traction and the footprint's a gateway to the world. You have a world footprint. >> Yes, it's 21st century software distribution and really the buyer gets the ultimate choice and you know the buyer can go for an annual contract or for by the hour, so economically, lots of choice. >> Alright, so I'll put you on the spot to end this segment. I'll be a naysayer. Dave you got competition out there, what, what's in it for me? How do you compare vis-a-vis the competition? >> Dave: You're a software vendor? >> Yeah. >> As, you're playin' the persona? >> Yeah, I'm a software guy, I'm looking at marketplaces, you know, why you guys? >> You know, you have to go where the customer is, ultimately you have to decide who your customer is. You know, Werner talked this morning about the tens of thousands of companies that are up on AWS, and so, if I've got 170 thousand buyers showing up on my marketplace, and they're intentional on their budget, and you're a software vendor you get reach, and given what Gartner says on where we are, on fulfilling share in cloud, is where the customer is. >> And if you're a service too, software service APIs, it's even better goodness there. >> Yeah we have thousands of consulting partners also use Marketplace as a library so if you're an SI, and we have tens of thousands of SIs, those SIs also view Marketplace as a good place to find software for the project. >> You've been in this business for a while. I mean, we've always talked about this on theCUBE, I want to ask you real quick, I mean more than ever now, ecosystems and communities are paramount, priority. Especially with this kind of dynamic 'cause that ecosystem is that fabric to enable, you know, go-to-markets that are seamless with economic scale, visibility into the numbers, what's your reaction when someone says that comment to you about community and an ecosystem? >> Well you know, an ecosystem is a collection of software companies that inter-operate. And the reality is that our customers are rewriting all the software. The world is rewriting its software portfolio. You know, a large customer I went to see recently has a thousand software applications. Now as they move them all to the cloud, they're either rewriting or they're modernizing, but as they rewrite them, they're going to use distributed services, they're going to use micro-services. And so they're refreshing their entire stack. >> Yeah, it's a re-platforming of the internet. >> Transformational. >> Dave McCann, who runs the Marketplace for AWS. Really kickin' butt out there. Congratulations on all your success, and I know there's a lot more to do, I wish we had more time, I'd love to do a follow-up with you and find out what's going on the Marketplace. and Matthew a partner, congratulations, hyper-growth, hittin' that trajectory. Congratulations, we'll come visit you in Manchester and then we'll drill a hole, we'll go to Melbourne right down there. Appreciate, thanks for coming on theCUBE, thanks. >> Thank you. >> I'm John Furrier and Stu Miniman. More live coverage after this short break. We are in San Francisco, live for AWS Summit 2018. We'll be right back. (techno music)

>> Narrator: Live from the Moscone Center, it's theCube, covering AWS Summit San Francisco 2018 brought to you by Amazon Web Services. (upbeat music) >> We're back I'm Stu Miniman and we're here with theCube's exclusive coverage of AWS Summit San Francisco here in the Moscone Center West. Happy to welcome to the program two gentlemen from DynaTrace, we've got Andy Grabner, who's a DevOps specialist and Dave Anderson, vice president of marketing. Gentlemen, thanks so much for joining us. >> Thanks for having us. >> Alright so Dave we'll start, since you've got the marketing title, give us a little bit your role there and for our audience that might not be familiar with DynaTrace, I'm sure everybody knows 'em, but give us a little bit of the background. >> So essentially what DynaTrace does is, the world needs software to work perfectly. What we do is we help customers build and manage their software in their cloud environments on premise to help deliver a fantastic customer experiences because we know that it all needs to work. We've been in the market for the Magic Quadrant leader for the last eight years in the APM space, but we're expanding out beyond that now as the customer demands. >> Excellent, well one of my favorite lines you say you have to make software work, is they said hardware will eventually fail and software will eventually work. So Andy you've given a session here at the show tell us what your role is at DynaTrace, what are you doing here at the show? >> So I've been with the company for 10 years and I've been through a similar transformation that I believe most of the people here want to go through from quote unquote old-fashion, on premise, legacy, monolithic applications to using containers, microservices, and eventually serverless. So my session was all about fearless from monolith to serverless. I gave them some ideas on what we went through, how we as a company transformed, but also how our product transformed from, before we did on premise monitoring, built for the monolithic apps, and now we basically do full cloud-scale, in the cloud, but still covering all the enterprise technology because everybody that wants to build the cool, new stuff that they are selling here, you still have legacy applications that you integrate with and still carry around. So it's all about enterprise cloud technology that we cover. >> So Dave I hear all this I'm sure DynaTrace has more than 10 years of server-less and 12 factor authentication experience, right? >> Dave: Yes. >> Okay so you're the hipster you know, a cloud native company, you were doing all of it before any of us knew about exists. Tell us a little bit, historically, how did DynaTrace start before and move into this space? >> Yeah, so we've been in the space for around 10 years. We've been a leader in the space, but what we really did four or five years ago is we predicted on the future we were going to have serverless environments, we're going to have microservices, customers are going to have multiple cloud environments, they're going to need that software to work and they're going to need automation. So what we did is we took our 50 best engineers and we said go and re-invent the future and that's exactly what they've done. Our CTO has a vision, fully automated IT, so our whole product philosophy is around making it really simple for our customers to be able to see within this really complex digital environment, exactly what's going on, how is the software performing, how are the users adopting it and how do we role out better features and better functions to the customer base. >> All right, I love the re-invent pun, but this is the Summit, ReInvent's in November. Andy, we were talking to Sandy Carter, in the last segment, talking about customers and customers have so many applications that it's great to say this is the future and serverless and micro-architectures distributed is great and everything, but some of your stuff's going to be lift and shift, some of the stuff's probably got to stay where it is for a while, how do customers manage that portfolio and a few years ago it was like, we're going to do a bi-model world, we were not onboard with that, but there's a spectrum and there's lots of applications and it's really complicated, so what is the advice, how do you help customers kind of squint through that, and work through that? >> So I think essentially people want to update the critical apps, be more innovative, they want to go and invest in the new enterprise clouds tech, I would say, right? So we basically help them, first of all, figure out which of the applications that they have right now are easier to migrate, whether it's lift and shift or re-platform because we actually give them full visibility into the current tech, tell them where are the most dependent and least dependent services, which ones are easier to extract and harder to extract, depending on the dependencies and the traffic take us over into criticalities. So we help them first of all figure out their cloud migration plan, what to migrate first. We talked about T-shirt sizing your migration, small, medium, and large, and then not only do we help them to migrate things over but to break the big monoliths apart put stuff on top of it, right? So this is also happening, so we really help them to figure out which application, which service to tackle first, to migrate over. We do it in a safe way because we not only help them to later on monitor their new system, but we help them along the way. So we talked about DevOps earlier. I mean we had our little prep call. We actually think that monitoring, the space we are, is not just something to keep the lights on in production, but it's something that has to be checked along the delivery pipeline. That's why we are part of the development process, we are apart of your CICD, when a code change goes in, an architectural change goes in, when they move over, we monitor all these changes and we give you early warning signals that this change is going to be good one or not a good one. And that's how we solve them. >> Well so much things in the cloud, it's never a one time thing, it's got to be an ongoing process, it's iterative and if I hear right though, you're not just only an AWS, it's my on premises stuff, multi-cloud, you play with all of those environments. >> Yes. Yes exactly so I mean you name it. I'm not sure if I'm allowed to name all the other vendors in this space here at AWS. >> Look we're independent media, we cover all of those shows, and I think your customers are using all them, so you can say, they're all in an AWS, but they might also use GCP and Azure and other stuff. >> I think the stats were like 98 or 90% of customers are hybrid enterprise, multi-cloud, and that's why we designed the product to be able to do just that. They're going to have applications running in the cloud that are making calls back to things on premise. You want to be able to see that entire delivery chain. So absolutely we provide that single visibility across all of their cloud environments and on premise. >> What are you seeing as some of the biggest challenges your customers are facing, Dave? >> The shear, the complexity, the pressures which they face, which is they've got to shift to the cloud faster. They've got their CEO going, we need to provide better digital experience. They're going to build out these new cloud platforms. They're just struggling for time to deploy these things. They need to move faster. There's threats of competition, all the buzzwords that come, but they're all real for IT people. And then all we're doing is giving them that visibility because the environments have become so complex, microservice, serverless, multi-cloud, on-premise, and just to be able to help them challenge the visibility into where is everything, how is it performing, is it working and then give them the confidence to release faster as Andy talks about. >> So Andy, one of the things that people look at sometimes is okay it's a multi-cloud environment, but okay if I go down the container environment, can I do that multi-cloud? If I go down the path of say something like Fargate, that's only with Amazon, so are your customers concerned about that, how deep down do they go? I should say, how far up the stack are they willing to go with Amazon or are they holding back and trying to use services that are more easy to be able to be migrated if need be? >> I want to give you two answers to this. >> Yeah. >> First of all, the developers don't care. >> Okay. >> I don't care where it runs. >> No, I understand. I've got a software development team. When they port it over to any of us, they're like autoscaling's awesome, it's great, I don't want to have to port somewhere else, and if it works, I go back to, it was like, standards and proprietary versus that if you solve my business need, I'm needed. So I agree, but, what's your other answer? >> Yeah so but it is clear that people, what we hear at least, what I hear, people want to figure out, how can they define their next platform and make sure that at least they're not doing a complete vendor lock in, a cloud lock in, so they definitely think and invest in, how can we deliver something, a platform to our developers so that they can just worry about writing code and we make sure that, if we decide Amazon today, maybe something else later, it's not going to be too hard and so I think we see the people try, I think still a lot of people are in the early stages. So they start primarily with one vendor, with one platform, with one technology, but they always make sure that they keep their options open to eventually move over and they're constantly look, that's why they're constantly bringing in new technology, which is also a challenge for every vendor that is here on the floor to make sure we're coping with this technology disruption that is constantly happening, not only for the users, the consumers of the technology, but those of us as vendors and I think that's what we try to keep up with, yeah? >> Yeah, so how we doing as industry and how are customers doing at keeping up with all this change? >> It is, I think, constant dedication, constantly looking what's new. We, as Dave mentioned, we until only a couple of years ago figured out something new is coming, so we actually broke out our own team, our innovation team, that figure out what's the next big thing, I think we see this also with our customers. You constantly have to disrupt yourself, you constantly have to redefine yourself and that's what we did with monitoring. We redefined monitoring because we saw five years ago that a new wave of technology's coming and we don't stop now, we keep innovating and everybody else is doing it as well. You always have to keep up with what's coming and experiment and figure out what makes sense for you and what maybe does not make sense for you. You don't have to be part of every hype. >> And we do that in two ways, we sort of do that also in that a lot of the features that we put into the product actually come from our customer base. So we have a really strong connection with our customers, we listen to the customers, and we say, what do you need, what challenges are you suffering, what would you like to have, and then we build them into our product roadmap. So it's kind of a hybrid model of making sure you're able to listen to the customer and take their needs in, but also sometimes they don't know what's coming, so we'd work with an AWS, to understand what they're building out, and other technology partners to make sure that our product is future proof. >> So when you built that innovation team and everything, is it serverless underneath now for some of your products? >> It's a set of technologies, right? It's all of what you basically see here on the floor and others. I think the nice thing, what I heard actually today on the floor, they said you don't only talk about DevOps and CICD and innovation, you actually live it and what they mean with this, he said, if I look at how often DynaTrace produces new features, we deploy new feature releases twice a month, we deploy daily new updates, and then they said, if you look at other vendors in this space they also claim to be living what they expect from you, but they deploy twice a year still or maybe every other month. So I think we redefined monitoring, but also redefined and live what we actually expect our customers to do. >> Yeah, if you say you're a DevOps company, you better be embracing CICD and publish now and often. All right, Andy and Dave, thank you so much for giving us the updates. Congrats on the progress, we look forward to catching with you up more in the future. We'll be back with lots more coverage here from AWS Summit San Francisco, I'm Stu Miniman. You're watching theCube. (upbeat music)

>> Announcer: Live from the Moscone Center, it's theCUBE covering AWS Summit San Francisco, 2018, brought to you by Amazon Web Services. (techy music playing) >> Welcome back, I'm Stu Miniman joined by my cohost Jeff Frick, and this is theCUBE's live coverage of AWS Summit San Francisco. We are thrilled to welcome back to the program Sandy Carter, who's a vice president with Amazon Web Services. Been with the company about a year. We've had you on the program many times, but first time since you've been at AWS, so... >> That's right, I'm celebrating my year yesterday with Amazon Web Services. >> Stu: And no cake, all right. >> I had a cake yesterday, actually, cake and champagne, by the way. (laughing) >> Sandy, we always love to hear, you know, you talk to so many customers, you know, bring us back for a little bit. What brought you to AWS, what's exciting to your customers when you're talking to them today? >> Well, you know, I really love innovation, I love being innovative, and you know, bar none Amazon is the most innovative company out there today, but really what brought me to Amazon was their focus on the customer, really "obsession" on the customer. When they say obsession they really mean obsession. They work backwards from the customer. We really have this big, big thrust. In fact, one of my favorite stories is when I first came to Amazon we'd be in these meetings and people would say, "Well, what does Low Flying Hawk think about this," or "What does Low Flying Hawk think about that," and I was like, "Who is Low Flying Hawk?" Well, he's a person who would give comments on a forum and just a person who wasn't even spending millions of dollars with Amazon but just had a lot of big clout. We actually just opened a building named Low Flying Hawk, believe it or not. >> Jeff: Have you identified this person? >> They do know who he is, yes. (laughing) But it's really, it just symbolizes the focus that Amazon has on the customer and why that's so important. >> And Sandy, at re:Invent you actually, you spoke to the analyst, I was listening to the session. It's not just kind of, people think AWS they think public cloud. You work for Amazon, it's everything kind of across what you think of Amazon.com, AWS, everything from drones and using Kindles and everything like that. Can you give us a little bit of kind of that pan view of how Amazon looks at innovation? >> Yeah, so it's really interesting. Amazon is very methodical in the way that we innovate, and what we do is we really try to understand the customer. We work backwards from the customer, so we do a press release first, we do frequently asked questions next, and then we do a narrative-- >> You're saying you do an internal press release, yes, yes. >> Yeah, internal press release. Internal frequently asked questions, and then we review a six-page document, no PowerPoints whatsoever, which enables us to debate and learn from each other and just iterate on the idea that makes it better and better and better so that when we come out with it it's a really powerful idea and powerful concept, something that the customers really want. >> So, we'll ask you what you're doing now, but one more kind of transition question, what was your biggest surprise? You know, there's a lot of kind of mystery from people on the outside looking in in terms of culture, and we know it's car driving and innovative growing like crazy company, not only in business but in terms of people. What was your biggest surprise once you kind of got on the inside door? >> My biggest surprise was just how incredibly encouraging and supportive the team is at AWS. My boss is Matt Garman, he's been supportive since day one, you know, Andy, they just cheer you on. They want you to do well and I've really never been at a company that everybody's really pulling for you to be successful, not political infighting but really pulling for you to be successful. So, that's really was the biggest surprise to me, and then that customer obsession. Like, it's not customer focus, it really is customer obsession. >> Right, I think it's so well illustrated by the, again not AWS, but Amazon with the store, right, with no cash register, no people. >> Sandy: Amazon Go. >> To think about that-- >> Sandy: Yeah. >> From the customer point of view is nobody likes to stand in line at the grocery store, so it's such a clean illustration of a customer centric way to attack the problem. >> And I love that because what we did is we opened up the beta first for employees, so we would go in and play with it and test it out, and then we opened it up in Seattle and we would give customer tours. Now it's open to the public in Seattle, so it just again shows you that iterative process that Amazon uses and it's super cool, have you guys been? >> Jeff: Have not been. >> Ugh, in fact, my daughter went in. She put on a mask, she was going to fool the system but it wasn't fooled. All the ML and all the AI worked brilliantly. >> I love how everyone loves to get so creative and try to, you know, get through the system, right, try to break the system. >> I know, but my daughter, that's what I would figure for sure. (laughing) >> So, what are you working on now? You've been there a year, what are you working on? >> So, we are innovating around the enterprise workload, so we know that a lot of startups and cloud native companies have moved to the cloud, but we're still seeing a lot of enterprises that are trying to figure out what their strategy is, and so, Stu and Jeff, what I've been working on is how do we help enterprises in the best way possible. How can we innovate to get them migrated over as fast as possible? So for instance, we have Windows that runs on AWS. It's actually been running there longer than with any other vendor and we have amazing performance, amazing reliability. We just released an ML, machine learning OMI for Windows so that you can use and leverage all that great Windows support and applications that you have, and then you guys saw earlier I was talking to VMware. We know that a lot of customers want to do hybrid cloud on their journey to going all-in with the cloud, and so we formed this great partnership with VMware, produced an offering called VMware Cloud on AWS and we're seeing great traction there. Like Scribd's network just talked about how they're using it for disaster recovery. Other customers are using it to migrate. One CIO migrated 143 workloads in a weekend using that solution. So, it just helps them to get to that hybrid state before they go all-in on the cloud. >> So, are they, I was going to say, are they building a mirror instance of what their on-prem VMware stack is in the Amazon version? Is that how they're kind of negotiating that transition or how does that work? >> So, with VMware they don't have to refactor, so they can just go straight over. With Microsoft workloads what we're seeing a lot of times is maybe they'll bring a sequel app over and they'll just do a lift and shift, and then once they feel comfortable with the cloud they'll go to Aurora, which as you've found was the fastest growing service that AWS has ever had, and so we see a lot of that, you know, movement. Bring it over, lift and shift, learning and you know, if you think about it, if you're a large enterprise one of your big challenges is how do I get my people trained, how do I get them up to speed, and so we've done... Like, we've got a full dot net stack that runs on AWS, so their people don't even have to learn a new language. They can develop in Visual Studio and use PowerShell but work on AWS and bring that over. >> You know, Sandy, bring us inside your customers because the challenge for most enterprises is they have so many applications. >> Sandy: Yeah. >> And you mentioned lift and shift. >> Sandy: Yeah. >> You know, I know some consultant's out there like, "Lift and shift is horrible, don't do it." It's like, well, there's some things you'll build new in the cloud, there's some things you'll do a little bit, and there's some stuff today lift and shift makes sense and then down the road I might, you know, move and I've seen, you know, it was like the seven Rs that Amazon has as to do you re-platform, refactor-- >> That's right. >> You know, all that and everything, so I mean, there's many paths to get there. What are some of the patterns you're hearing from customers? How do they, how is it easier for them to kind of move forward and not get stuck? >> Well, we're seeing a lot of data center evacuations, so those tend to be really fast movement and that's typically-- >> Jeff: Data center evacuation-- >> Yeah, that's what-- >> I haven't heard that one. >> Yeah, that's what, evacuation, they've got to get out of their data center buyer for a certain date for whatever reason, right? They had a flood or a corporate mandate or something going on, and so we are seeing those and those are, Stu, like lift and shift quickly. We are seeing a lot of customers who will create new applications using containers and serverless that we talked about today a lot, and that's really around the innovative, new stuff that they're doing, right. So, Just Eat, for instance, is a large... They do online food service out of the UK. I love their solution because what they're doing is they're using Alexa to now order food, so you can say, "Alexa, I want a pizza delivered "in 20 minutes, what's the best pizza place "that I can get in 20 minutes?" Or "I want sushi tonight," and Alexa will come back and say, "Well, it's going to take "an hour and a half, you had sushi two days ago. "Maybe you want to do Thai food tonight." (laughing) And so it's really incredible, and then they even innovated and they're using Amazon Fire for group ordering. So, if there's a big football game or something going on they'll use Amazon Fire to do that group ordering. All that is coming in through Alexa, but the back end is still Windows on AWS. So, I love the fact that they're creating these new apps but they're using some of that lift and shift to get the data and the training and all that moving and grooving, too. >> Yeah, what do you, from the training standpoint, how, you know, ready are customers to retrain their people, you know, where are there shortages of skillsets, and how's Amazon, you know, helping in that whole movement? >> Well, training is essential because you've got so many great people at enterprises who have these great skills, so what we see a lot of people doing is leveraging things like dot net on AWS. So, they actually... They have something they know, dot net, but yet they're learning about the cloud, and so we're helping them do that training as they're going along but they still have something very familiar. Folks like Capital One did a huge training effort. They trained 1,000 people in a year on cloud. They did deep dives with a Tiger Team on cloud to get them really into the architecture and really understanding what was going on, so they could leverage all those great skills that they had in IT. So, we're seeing everything from, "I got to use some of the current tools that I have," to "Let me completely move to something new." >> And how have you, you've been in the Bay Area also for about a year, right, if I recall? >> Actually, I just moved, I moved to Seattle. >> Jeff: Oh, you did make the move, I was going to say-- >> I did. (laughing) >> "So, are they going to make you move up north?" >> I did because I was-- >> You timed it in the spring, not in November? >> I did, there you go. (laughing) When it's nice and sunny, but it's great. >> Exactly. >> It's great to live in Seattle. Amazon has such a culture that is in person, you know, so many people work there. It's really exhilarating to go into the office and brainstorm and whiteboard with people right there, and then our EBCs are there, so our executive briefing center is there, so customers come in all the time because they want to go see Amazon Go, and so it's really an exciting, energizing place to be. >> Yeah, I love the line that Warner used this morning is that AWS customers are builders and they have a bias for action. So, how do you help customers kind of translate some of the, you know, the culture that Amazon's living and kind of acting like a startup for such a large company into kind of the enterprise mindset? >> That's a great question, so we just proposed this digital innovation workshop. We are doing this now with customers. So, we're teaching them how to work backwards from the customer, how to really understand what a customer need is and how to make sure they're not biased when they're getting that customer need coming in. How to do, build an empathy map and how to write that press release, that internal press release and think differently. So, we're actually teaching customers to do it. It's one of our hottest areas today. When customers do that they commit to doing a proof of concept with us on AWS on one of the new, innovative ideas. So, we've seen a lot of great and exciting innovation coming out of that. >> All right, well, Sandy Carter, so glad we could catch up with you again. Thanks for bringing discussion of innovation, what's happening in the enterprise customers to our audience. For Jeff Frick, I'm Stu Miniman, we'll be back will lots more coverage here, you're watching theCUBE. (techy music playing)

>> Narrator: Live from the Moscone Center it's theCUBE, covering AWS Summit San Francisco 2018. Brought to you by Amazon Web Services. >> Hello everyone and welcome back to our exclusive Cube Coverage here in San Francisco, California for Amazon Web Services AWS Summit 2018. We are all day covering the regional event for Amazon Web Services. I'm John Furrier with Stu Miniman, our next guest is Steve Hall, vice president of partnerships at a company called, CloudCheckr. Cloud check with an r dot com. Companies we see in the ecosystem doing great stuff really capturing the growth of the cloud. Steve, welcome to theCUBE. >> Thank you for having me. >> So I got to ask you, so you guys are like Switzerland, you guys are involved in a lot of the stuff. Before I go into some of the pointed questions, we'll have to get your thoughts on the cloud, but take a minute first to explain what CloudCheckr does, your core business, and why are you calling yourself "Switzerland". Is it like you play nice with all the clouds? Is that where all the cryptocurrency is going to go? I mean give us a straight scoop. >> Sure you bet, so CloudCheckr is a cloud management platform, right, that helps organizations get visibility in control across their public cloud estate. So, you know the challenges that we're seeing really typically fall into two categories. It's "I thought it was going to save me money when going to the cloud" and "I thought that my data was going to be less secure going into the cloud". CloudCheckr helps solve both those problems by helping you reduce costs, eliminate waste, all that good stuff, as well as, identify your attack surface and make sure that its protected. >> John: Is it SaaS offering or is it more... >> SaaS offering, born in the cloud for the cloud. We focus as you said, Switzerland, we really focus on sort of a management layer that sits across a multi-cloud environment where you're not just looking at Amazon and AWSs, but also the Azures and GCPs of the world to make sure that you have kind of that unified single pane of glass that everyone kind of wishes for but they don't necessarily know how to get. >> Yeah and I get the joke on Switzerland with the cryptocurrency. There's legit people are going to Switzerland but metaphorically you guys are, you're independent you want to play with all clouds cause you got to look at the holistic picture. What's the critical thing that you're seeing right now? We had a guest on earlier talking about you leave the lights on so to speak. You know the EC2 is running a lot of inefficiencies. You got security. Are you guys kind of like a dashboard, single pane of management glass in there? Is it other services? What specifically are you guys focused on right now? Obviously the growth of the cloud is what it is. You guys, that's a tailwind for you guys. >> Yeah I mean. >> The key thing that you do? >> So I mean I think the biggest thing that we see driving our business right is the economics around the cloud. Everyone's moving, the workloads are you know obviously whether they're in the early days or kind of more mature, everyone thinks that by moving to the cloud they're going to save money. And there's data out there to suggest that there's upwards of 30 to 40 percent wastage happening inside of the cloud environments today just because people, using that analogy, leave light switches on, and they didn't even realize that they, they didn't know how to find them, right. So where we see a lot of pain, right, is what do I do, right? Where do I start? And so partnering with not only the native tools that Amazon brings to bear, you know trusted advisor and specter, all the other cool tools... >> So is a new term being developed called cloud sprawl? Stu we talked about server sprawl. I mean you've got Lambda now. I mean is it cloud sprawl? Is that an issue? >> Oh there's so surely. And cloud spend sprawl, right. You know it's this shadow IT thing that goes on. Somebody told me a story of the CMO at Bank of America got a phone call a couple of years ago from the CEO after a Superbowl ad that ran and said what is this thing that you're doing? And she said oh we just turned it on in the cloud. And he's like did you talk to IT? Did you have anybody do it? And she's like why would I do that? Why would I even bother? I can just go do it myself. So how do I get my arms around that. Right obviously is somewhat of an opportunity but also challenge. >> Steve you talk about getting your arms around something. When we talk to customers, you know IT is heterogeneous. >> Steve: Right. >> So you know yes public cloud and people are growing and using more Amazon, but there's other clouds, there's by service providers, and oh yeah I've still probably got some data centers because you know there's 35 years after you stopped building those a few years back for you to do that. How do you help them get around there? And I'd love to hear how are you seeing Amazon maturing and working in some of those environments. It used to be Amazon is all in public cloud only. Then it was oh there's the VMWare stuff, there's the RedHat stuff. Oh hey they're starting to work with service providers even. What are you seeing and how are you involved in that? >> Yeah you bet. I mean again I think you touch on again probably the biggest problem which is visibility, right? And transparency. And how do I create accountability around all of that because there's new roles that are emerging inside of these organizations to try to do things with this cloud stuff as well as a lot of questions are being asked. They don't even know how to answer them. And so you know where Amazon I think is really maturing, we'll start there, right is not only providing a lot of just the native tooling, it's somewhat kind of yes Amazon focused but focused really on kind of providing that, that visibility that they need. Where I think CloudCheckr really kind of steps in is sort of a little bit deeper level view of what they have as well as how do you cross-pollinate that with the other environments. Whether it's a hybrid environment or another cloud provider that you want to again kind of bring into one singular view. That's really how we try to help. And then I think that the other piece that you touched on, which is there's this whole managed service provider and reseller community that's really quite mature in fact within the AWS ecosystem. Which I think is one of the things that AWS really kind of differentiates itself with by empowering partners to be able to build a practice around AWS. Because again another challenge that we see is cloud is great, but I don't have the people to do it. Or I don't know what the people that I do have don't know what to do and so having a trusted like a managed service provider to turn to to go do that stuff is like a blessing. >> What sort of areas, where can that local managed service provider, where can they help? You know is it just cause they have localized people? But what services od they have, is it just enabling people to get up into the cloud? Or are there things that they're doing between you know the service provider and Amazon with direct connect and the like? >> Well I think that so the first thing honestly ends up becomes billing truthfully. And that sounds so boring in many respects, but okay I get a bill, but the billing is really... >> Stu: Yeah the CFO doesn't think it's boring. >> But they don't. As well as you get the bill, how do I make sense of it right? And so you know clients are looking for managed service providers to sort of make sense of all of this cost data and usage data and give them sort of the view of who's using what and how much should we spend right? Because money talks. And so that is driving a different conversation for managed service providers. So building, we're seeing a lot of our partners working up new practices around cost optimization and how to build an entire, not only just billing portal, but a practice on top of that to help optimize the environment for... >> Well there's such a huge opportunity there. I've talked to customers that were like I dedicated engineer to do financial engineering rather than architecting. >> Yeah, yeah. >> So there's an opportunity when you see that it's like oh wait, do you want a head count of a highly trained engineer? >> Right. >> Or you know is there, that's what the partner can help with right? >> Yeah and there's a couple of different ways that they can do it too. We see partners, some that are hiring the smart guy in the room, putting him in a back room and doing the analytics and analysis around that data. Others are literally just creating white labeled portals and putting it in front of their customers. So there's lots of different ways that AWS makes it easy for a partner to build new products and actually turn their seven percent margins into 20 percent margins by building more services and solutions around the AWS infrastructure. >> Steve I want to get your industry expertise on something. You're the vice president of partnerships and you know we always talk on theCUBE, Stu, myself, Dave Vellante, Jeff, Rick, and the team around what it's like to compete in a modern era. And we commented on Amazon's competitive strategy. For the first time they've got to actually deal with heavy dose of competition. >> Steve: Yeah. >> And no one's going to give up the market share. They've got to fight tooth and nail. You deal with all the cloud providers. But people are learning there's a new kind of partnership. If everything's API based you've got SAASified, platform as a service kind of going away to infrastructure as a service. You have this cloud fabric, global reach with regions, all kinds of new moving parts. How is it changing partnerships? How do, how should people who are in trying to partner with the big clouds. >> Steve: Yep. >> Is there a posture, is there an approach, is there a playbook that you see that's different than the old way? The old was you know, press the pavement, press the palms together, you get dinner, you get coffee, whenever you do a deal, longer time horizon. Now it's you've got to have services, you got the data, whole different landscape. What's your thoughts on the partner equation. How should people partner, what's the playbook? >> And I'll speak on for CloudCheckr's perspective. So we've been going to REInvent and these summits for the last five, six years, right. So I remember when this was 500 people in a room, right. You know and there's 10 vendors exhibiting. And here you have 7,000 plus people now that are, you know where you have lots of vendors that you're very familiar with, right. That are large scale kind of like global vendors. So definitely the competitive landscape has changed and it's partly just like you said, the opportunity, right. This is a... I heard somebody say it's probably market cap of a a trillion dollars in public cloud right at the end of the day. So everyone sees the opportunity but how do you actually make good use of it as a partner to the cloud providers? First of all you solve a real problem. Right? There's a lot of... I tend to see a lot people that are just cloud dipping their solutions and kind of coming to market around things because they want a piece of the pie. But if you really focus yourself on how do I solve some of the most pressing needs. And that's where again we see, you know, our product helping customers around cost and security but even our partners. >> So the ecosystem is the key. You've got to be part of a ecosystem. Is that the criteria? >> You got to play, well yeah, it's not just go to coffee and have drinks. Right you know what I mean. It's connect with the people inside of your community. Whether it's at these events or whether it's in your local AWS offices or in the smaller sort of settings to say what are your customers asking for right? And how can we help you with that? I mean it's pretty obvious stuff. >> So Steve, you mentioned security a few times. You know if you go back a few years it was like oh I'm going to be less secure if I go to cloud. Now most people realize it's an opportunity for me to readdress security. >> Yeah. >> And chances are security's better because when's the last time I really updated all my security. >> Yeah. >> What are the hot buttons? What are you seeing? What's Amazon doing well? What does the industry as a whole need to do better? >> Absolutely well I mean you touched on it. Security used to be the reason not to go and now it is the reason to go. And I think companies realize oh my God they've got hundreds of security engineers. We have two. So I think that their infrastructure's probably more secure. What we're seeing as the hot press buttons. I mean I think the last 18 months, 12 months have been all about S3 buckets, right. You know and all of this data that's been exposed sitting out there on the internet. And I think AWS did a fabulous job of changing some of the configurations to allow customers not to stab themselves in the foot. But I think that a lot of it ends up being human error, right. You know really it's the human element inside of security that continues to plague the industry. And the cloud only makes it harder because now you don't have IT people doing IT. You've got business people doing IT, right. Back to the Bank of America example. So, sorry Bank of America. So my point is yeah I think that you know it's really back to how do we create solutions that non-IT people can use and make sense of it so that we can put common sense good controls in place. >> Business models are critical nailing the business model's critical. >> Steve: Yeah. >> Alright Steve final question for you. I want to kind of just put you on the spot a little bit here. You guys are trying to solve a real big need in the market place. Becoming a trusted source for cloud optimization, cloud costs, I mean it's going to impact obviously financial workflows and rolling the data up so a lot of moving parts at AWS and other clouds. >> Yeah. >> So are you guys using machine learning and AI because if Werner Vogels says hey look at all the magic that can happen in the cloud, how are you guys using all these data points? How are you rolling them up? Can you share >> Yeah. >> the philosophy, the tech. >> Yeah. >> Are you guys cutting edge? Are you on the front bleeding edge? What... >> Absolutely. >> Are you guys eating your own job food? I mean I'm obviously putting you on the spot there. >> Yeah, no no that's fine. I mean so we are absolutely using machine learning and artificial intelligence on the back end. Using AWS technology in fact to empower a lot of that inside of the project or platform. And it is all about taking all of these disparate data sources, I called them machine exhaust, of the cloud right that's kind of coming out. How do I put good sense to that? And CloudCheckr really is that layer above all of that whether it's your cloud trail logs or your cloud watch metrics or your cloud usage report, putting it all into one place and then doing machine learning and predictive analytics around that. That's exactly what CloudCheckr's all about. >> So it's an interpretation challenge, right. >> Right, right I mean, go ahead. >> Yeah so Steve it's just we talked about kind of the heterogeneous nature and you brought up a term a service area. >> Steve: Yeah. >> When we start adding in things like IOT, service area's going to grow exponentially and the heterogeneous nature >> Yes. is just going to go up you know. >> Steve: Yeah. >> The same. Is CloudCheckr going to help there? Is that something your customers are ready for? >> I think they're already there right. So I mean I think a lot of our customers, like the use cases that we see are either big data analytics or IOT or you know some other use case around why they're using public cloud to begin with. And so really it's about as that expansion increased usage occurs, how do I protect that attack surface? How do I look for known good state information and then lock my doors and windows if you will? As well as how do I make sure that I'm using the right resources in the right way? So that again I have that visibility and transparency and then you can have the right controls and automation around it to do something about it. >> Steve thanks for coming on theCUBE. Really appreciate it. Check out CloudCheckr. >> Thanks. >> Again this is one of those things as you use the cloud there's going to be more bells and whistles, more services to watch and instrument. Obviously cost containment and managing the growth is certainly going to be something to watch using the data and managing that's what CloudCheckr does. Of course theCUBE is bringing all the data here at the trusted source for all the action at AWS Summit 2018. I'm John Furrier, Stu Miniman. More coverage after this short break. (upbeat music)

>> Announcer: Live from the Moscone Center, it's The Cube covering AWS Summit San Francisco 2018. Brought to you by Amazon Web Services. >> Welcome back to our exclusive Cube coverage here at AWS, Amazon Web Services Summit 2018 in San Francisco. I'm John Furrier with my cohost, Stu Miniman. We have a special guest. We have an influencer, authority figure on AWS, Corey Quinn, editor of Last Week in AWS, also has got a podcast called Screaming, >> Corey: In the Cloud. >> Screaminginthecloud.com just launched. Corey, great to have you on. Thanks for joining us. >> No, thank you for letting me indulge my ongoing love affair with the sound of my own voice. (laughing) >> Well we love to have you on and again, love the commentary on the keynote on Twitter. Lot of action, we were in the front row, kind of getting all the scene. Okay, if you're going to write the newsletter next week for what happened this week, if this week was last week, next week, what's your take on this? Because again, Amazon keeps pounding the freight train that's just the cadence of AWF announcements. But they're laying it out clear. They're putting up the numbers. They're putting out the architecture. They're putting out machine learning. It's more than developers right now. What's your analysis, what's your take of what's happening this week? >> I think that certain trends are continuing to evolve that we've seen before where it used to be that if you're picking an entire technology that you're going to bet your business on, what you're going to build on next. It used to be which vendor do I pick, which software do I pick? Now even staying purely within the AWS ecosystem, that question still continues to grow. Oh so I want to use a database, great. I have 12 of them that I can choose between. And whatever I pick, the consensus is unanimous, I'm wrong. So there needs to be, I still think there needs to be some thoughtful analysis done as far as are these services solving different problems. If so, what are the differentiating points? Right now, I think the consensus emerges that when you look into a product or service offering from AWS, the first reaction all of us feel is to some extent confusion. I'm lost, I'm scared. I don't really know what's going on. And whatever I'm about to do, I feel like I'm about to do it badly. >> Yes, scale is the big point. I want to get your reaction. Matt Wood, Dr. Matt Wood, Cube alum, been on many times, he nailed it I thought when he said, look it, machine learning and data analysis was on megabytes and gigabytes, they're offering petaflop level compute, high performance, and then Werner Vogels has also said something around the services where, you can open things up in parallel scale. So, what's your reaction to that, as you look at that and say whoa, I've got a set of services I can launch in parallel, and the scale of leveraging that petaflops. I mean, this is kind of like the new, you know, compute model. Your reaction is it real? Are customers ready for it? Where are we in that evolutionary customer journey? Are they still cavemen trying to figure out how to make fire and make the wheel? I mean where are we with this? >> I think that we see the same thing continuing to emerge as far as patterns go, where they talk about, yes there's this service. Just start using it and it scales forever. And that's great in theory, but in practice, all of the demos, all of the quick starts, all of the examples, paint by numbers examples that they'll give you, tend to be at very small scale. And yes, it works really well when you have effectively five instances all playing together. When you have 5,000 of those instances, a lot of sharp edges start to emerge. Scale becomes a problem. Fail overs take far longer. And let's not even talk about what the bill does at that point. Additionally once you're at that point, it's very difficult to change course. If I write a silly blog, and effectively baby seals get more hits than this thing does, it's not that difficult for me to migrate that. Whereas if I'm dealing with large scale production traffic that's earning me money on a permanent basis, moving that is no longer trivial or in some cases feasible at all. >> Yeah Corey, how does anybody reasonably make a decision as to how they're going to build something because tomorrow, everything might change. You said oh okay great, I had my environment and I kind of you know, built my architecture a certain way, oh wait there's a new container service. Oh, and start building a, oh wait now there's the orchestrated version of that that I need to change to. Oh wait, now there's a serverless built way that kind of does it in a similar way. So you know, it seems like it used to be the best time to do things would've been two months ago, but now I should do it now. Now the answer is, the best time for me to do things would be if I could wait another quarter, but really I have to get started now. >> I tend to put as much on future Corey as I possibly can. The problem is that at one time I could've sat here and said the same thing to you about, oh virtualization is the way to go. You should migrate your existing bare metal servers there. And then from virtualization to Cloud and Cloud to containers. Then containers to serverless. And this narrative doesn't ever change. It's oh what you're doing is terrible and broken. The lords of thought have decried that now it's time to do this differently, and that's great, but what's the business use case for doing it? Well, we did this thing that effectively people get on stage at keynotes and make fun of us for now, so we should really change it. Okay maybe, but why? Is there a business value driving that decision? And I think that gets lost in the weeds of the new shiny conference ware that gets trotted out. >> Well I mean Amazon's not, I mean they're being pretty forthright. I mean, you can't deny what Intuit put out there today. The Intuit head of machine learning and data science laid out old way, new way. Classic case of old way, new way. Eight months, six to eight months, ton of cluster, you-know-what going on as things changed it. They're just data scientists. They're not back-end developers. They went to one week. Nine months to one week. That's undeniable right? I mean how do you, I mean that's a big company but, that seems to be the big enchilada that Amazon's going for, not the pockets of digital disruption. You know what I'm saying? So it's like, how do you square that out? I mean how do you think about that? >> Cloudability had a great survey that they released the results of somewhat recently where they were discussing that something like four or five of the, or I'm sorry 85% of the global spend on AWS went to four or five services that all have been around for a long time. RDS, EC2, S3, PBS, Data Transfer. And so as much as people talk about this and you're seeing pockets of this, it's not the common gaze by a wide margin. People don't get up on stage and talk about, well I have these bunch of EC2 instances behind a low balancer, storing data on S3 and that's good enough for me, because that's not interesting anymore. People know how to do that. Instead, they're talking about these far future things that definitely add capability, but do come at a cost-- >> I mean it's the classic head room. It's like here's some head room, but at the end of the day it's EC2, S3, Kinesis, Redshift, bunch of services that's U.S that seem to dominate. The question I want to ask you is that they always flaunt out the, every year it changes, Kinesis was at one point the fastest growing service in the history of AWS. Now it's Aurora. We made a, I made a prediction on the opening that a SageMaker will be the fastest growing service, because there just seemed to be so much interest in turn-key machine learning. It's hard as you-know-what to do it. >> I agree. >> Your thoughts on SageMaker? >> In one of my issues a few weeks back, I wound up asking, so who's using SageMaker and for what? And the response was ridiculous. What astounded me was that no two answers were alike as far as what the use case was. But they all started the same way. I'm not a data scientist, but. So this is something that's becoming-- >> John: What does that mean to you? What does that tell you? >> It tells me that everyone thinks they're unqualified to be playing around in the data science world, but they're still seeing results. >> But Corey I wonder because you know, think back a few years ago. That's what part of the promise of big data, is we have all this data and we're going to be able to have the business analysts rather than you know, some PhD sort this out. And machine learning is more right. We want to have these tools and we want to democratize data, you know. Data is the new bacon. It's the new oil. Data's the new everything. So you know, machine learning, you think this is all vapor and promise, or do you think it's real? >> I think big data is very real and very important. Ask anyone who sells storage by the gigabyte. And they will agree with me. In practice I think it's one of those areas where the allure is fascinating but the implementation is challenging. Okay we have history going back 20 years of every purchase someone has ever made in our book store. That's great, why do I still wind up getting recommendations? >> Well yeah and I guess, I want to talk that it was the, I see it more as, everything that was big data is now kind of moving to the ML and AI stage. Because big data didn't deliver on it, will this new wave deliver on the promise of really extracting value from my data? And it's things like this, live data. It's doing things now with my data, not the historical, lots of different types of data that we were trying to do with like the Hadoops of the world. >> Got ya. I think it's a great move because either yes it will or no it won't, but if it doesn't, you're going to see emergent behaviors of so why didn't it work? Well we don't understand the model that this system has constructed, so we can't even tell you why it's replacing the character I with some weird character that's unprintable, so let alone why we decide to target a segment of customers who never buys anything. So it does become defensible from that perspective. Whether there's something serious there that's going to wind up driving a revolution in the world of technology, I think it's too soon to say and I wouldn't dare to predict. But I will be sarcastic about it either way. >> Okay well let's get sarcastic for a second. I wan to talk to you about some moves other people are making. We'll get to the competition in a minute but Salesforce required MuleSoft. That got a lot of news and we were speculating on our studio session this week or last week with the CEO of Rubric that it's great for Salesforce. It can bring structured data in, on PRIM and the Cloud. Salesforce is one big SaaS platform. Amazon is trying to SaaS-ify business through the Cloud. So, but one of the things that's missing from MuleSoft is the unstructured data. So the question for you is, how are you seeing and how is your community looking at the role of the data as a strategic asset in a modern stack, one, both structured and unstructured data, is that becoming, even happening or is it more like, well we don't even know what it means. Your thoughts? >> I think that there's been a long history of people having data in a variety of formats and being able to work with that does require some structure. That's why we're seeing things emerging around S3's, increasing capabilities, being able to manipulate data at rest. We're seeing that with S3 and Glacier Select. We're seeing it with Athena which is named after the goddess of spending money on Cloud services, and there's a number of different tooling options that are, okay we're not going to move three x-abytes of data in so we have to do something with where it is. As far as doing any form of analysis on it, there needs to be some structure to it in order for that to make sense. From that perspective, MuleSoft was a brilliant acquisition. The question is, is what is SalesForce going to do with that? They have a history of acquisition, some of which have gone extremely well. Others of which we prefer not to talk about in polite company. >> It comes back down to the IDE thing. How many IDE's does Salesforce have now? I mean it's a huge number. >> I'm sure there's three more since we've started talking. (laughing) >> Yeah so Corey, you brought up, you know, money. So you know, the trillion dollar, what feedback are you getting from the community? You know there's always, well I get on Amazon and then my bills continue to grow and continue to grow. Same thing at Salesforce by the way if you use them. So you know, there's always as you gain power, people will push back against it. We saw with with Mike Hichwa with Oracle. I hear it some but it's not an overriding thing from when I talk to customers about Amazon. But I'm curious what you're hearing. Where are the customers feeling they're getting squeezed? Where is it you know, phenomenal? What are you seeing kind of on the monetary side of Cloud? >> In my day job, I solve one problem. I fix the horrifying AWS bill, both in terms of dollars and cents as well as analysis and allocation. And what astonishes me, and I'm still not sure how they did it. It's that AWS has somehow put the onus onto the customer. If you or I go out and we buy a $150,000 Ferrari, we wake up with a little bit of buyer's remorse of dear lord, that was an awful lot of money. When you do the equivalent in AWS, you look at that, and instead of blaming the vendor for overcharging, instead we feel wow, I'm not smart enough. I haven't managed that appropriately. Somehow it's my fault that I'm writing what looks like a phone number of a check every month over to AWS. >> John: It creeps up on you. >> It does. It's the boiling a frog problem. And by the time people start to take it seriously, there's a lot of ill will. There's a sense of, our team is terrible, and wasn't caring about this. But you don't ever cost-optimize your way to success. That's something you do once you have something that's up and working and viable. You don't start to build a product day one for the least possible amount of money and expect to attain any success. >> Well let's talk about that real quick to end the segment because I think that's a really important thing. Success is a double-edged sword. The benefit of the Cloud is to buy what you need, get proof of concept going, get some fly wheels going or whatever, virtuous circle of the application. But at some point, you hit a tipping point of oh shit this is working. And then the bill is huge. Better than over-provisioning and having a failed product. So where's that point with you guys or with your customers? Is there like analytics you do? Is that more of a subjective qualitative thing? You say, okay are you successful? Now let's look at it. So how do you deal with customers? 'Cause I can imagine that success is, it becomes the opportunity but also the problem. >> I think it's one of those, you know it when you see it type of moments, where if a company is spending $80,000 a month on their Cloud environment and could be spending 40, that's more interesting to a company that's three people than it is to an engineering team of 50. At that point, sorry they're embezzling more than that in office supplies every month. So that's not the best opportunity to start doing an optimization pass. More important than both of those scales to me has always been about understanding the drivers of it. So what is it that's costing that? Is it a bunch of steady state things that aren't doing work most of the time? Well, maybe there's an auto-scaling story in there. Maybe there's a serverless opportunity. Maybe nobody's using that product and it's time to start looking at rolling it in to something. >> They've left the lights on right? So to speak. >> Exactly. >> The server's are still up. Wait a minute, take them down. So, writing code, analytics, is that the answer? >> All of the above. In a vacuum, if you spin up an instance today, and don't touch it again, you will retire before that instance does. And it will continue to charge you every hour of every day. Understanding and being able to attribute who spun that up, when was it done, why was it done, and what project is it tied to? Is it some failed experiment someone did who hasn't worked here in six months? Or is that now our master database? We kind of need to know in either direction what that looks like. >> Alright before we wrap, you got to tell us, what do we expect to hear from your podcast? >> Good question. My podcast generally focuses on one-on-one conversations with people doing interesting things in the world of Cloud, which is vague enough for me to get away with almost anything as far as it goes. It's less sarcastic and snarky than some of my other work, and more at the why instead of the how. I'm not going to sit here and explain how to use an ABI. There are people far better at that than I am. But I will talk about why you might use a service, and what problem it reports to solve. >> Alright Corey, great to have you on. Uh the Screaming Pod, Screaming Cloud, >> Corey: ScreamingInTheCloud.com >> ScreamingInTheCloud.com, it's a podcast. Corey thanks for coming on and sharing the commentary, the insight on AWS, the how and the why, the Cube breaking down. All the action here in Moscone Western San Francisco, AWS 2018 Summit, back after more, after this short break. (spacey music)

>> Announcer: Live from the Moscone Center it's theCUBE, covering AWS Summit San Francisco 2018. Brought to you by Amazon Web Services. >> Hello everyone, welcome to theCUBE here in San Francisco at Moscone West, theCUBE's exclusive coverage of Amazon Web Services Summit 2018. It's the first of their kickoff of their little satellite events, really about developers and training and educating people on Amazon Web Services products and services. Again theCUBE covers re:Invent, that's their big show, This is more of a, less of a sales and marketing but more of a really get down and dirty with the developers and practitioners. I'm John Furrier, with my cohost this week Stu Miniman all day today, wall to wall coverage. Stu, the keynotes just kicked off, Andy Jassy is not here, notable. Werner Vogels does all the summits so he's always been the headline. Last year Andy Jassy kind of did the keynote, fireside chat, we had that up on our YouTube channel, SiliconANGLE theCUBE, but here the story is all about SageMaker and the continued dominance of Amazon Web Services, and then again as we were speculating at re:Invent, and we've been saying on theCUBE, the maturization of Amazon Web Services is clear. Everyone knows the numbers, they're breaking out the reporting, they clearly got competitive forces for the first time in AWS's history, they have some serious competition upping their game. Microsoft nipping at their heels, Google putting out some open source tech, Oracle trying to throw FUD into the fire and say, change the rules and kind of keep the rules on their terms, so the competitive pressure. But at the end of the day there's a whole new era of modern software development, modern business applications and we're seeing it with things like cloud expansion, on-premise consolidation, hybrid-cloud, multi-cloud, decentralized infrastructure, blockchain AI, these are the themes, this is what developers want, this is what businesses are doing, let's analyze and discuss the keynotes. What's your thoughts? >> Yeah, so John, I mean, first of all, we watched the rolling thunder that is AWS just rolling through the entire industry, and now rolling all over the globe. So the AWS Summit, I think they actually had an idea about Summit in Singapore like, last night, and we're going to be covering a few of them. I was last year at the AWS New York City Summit, and I tell you, that New York City show alone was one of the best shows I went to all year. The amount of people, the excitement, what really differentiates as you said, the big re:Invent versus the summit, first of all, the summit, they tend to be a local audience, it's free for basically everybody to come in. So numbers are great, you know, we're in San Francisco, they going to 10, 15 thousand people here probably. Google Cloud Next was here last year in February and it feels almost the same amount of people here for a regional Amazon show. So the numbers are wow, the announcements, every day Amazon's running an announcement, so Doctor Werner Vogels, Doctor Matt Wood, get up stage, go through some of the usual we're dominating every industry and every service and everything there, but when you piece apart there's like, ooh, there's real announcements that are coming, things that jumped out, we talked about machine learning, Matt Wood talked about SageMaker is really growing super fast, people that I talked to that have been using it are loving it. They came out with SageMaker local, which means that I can develop it on my laptop and do it with that cool, you take ML with that cool, what was it, that deep lens, that they've got. It's how do I get these environments? Amazon isn't just about infrastructure cloud anymore, They've gone to paths, they're pushing to edge, they're doing all of these things. They had a whole ton of announcements, when they were already past the time that the keynotes were going to be done, Oh, you thought we're done, well security, security, security and secrets manager, firewall manager, there's so many services. The theme I've been looking at the past couple years, how do we keep up with all of this, even internally? You talk to Amazon people, they don't know everything that everyone's doing, because it's all those two pizza teams and how they're growing. >> And they always have to get all their sound bites in because they don't have a lot of time to get all that packed into one powerful punch. Just on a quick side note for the folks that watching knows theCUBE, we've been covering Amazon really since the beginning, since the re:Invent started, you know we've been covering data center infrastructure and big data, Hadoop and now beyond. You're starting to see coverage around blockchain and cryptocurrency. So again, we are expanding our coverage of the AWS ecosystem and cloud to include most of the major regional shows of AWS Summit, continuing to go deep into the AWS re:Invent and the community, we are also initiating coverage heavily on Google, Google Cloud Next, we'll be at their show and soon to be at Microsoft show, that's still to be determined with Microsoft that they will let us in, we're working on that, we think that's going to be good, but we'll be nailing and doubling down on the cloud coverage. So Stu, with that as a backdrop, people know we've been deep with Amazon, I've been called an Amazon fanboy many times, but the numbers are clear. I'm a Google fanboy, by the way, too, I love Google stuff. Microsoft I got to learn more about, obviously they have bundling and Office so they're a legacy player, Oracle a legacy player, so you got two legacy players, you got Amazon and Google, I would put them in two different categories, but then Alibaba in China trying to dip in as you got those, the real kind of cloud native companies, Google and Amazon on one end, you get the legacy players with Microsoft and Oracle and IBM on the other. So you have this really highly competitive environment. We're seeing for the first, or second time, Andy Jassy did it at re:Invent, but Werner Vogels put up the competitive slide. He said "This is what we're doing." And he showed the number of services that Amazon offers, vis a vis the competition, and he didn't actually call out the vendors but we kind of know, I put on my Twitter feed, you can see his number one, the second one's Microsoft. Google they put in the Google colors, that's obviously Google, and red is Oracle. Amazon is clearly dominating on the number of services available across the cloud. So when we've been squinting through the numbers on who's leading who, you've really got look at two perspectives. The broad range of available services and the number of customers using those services versus point solutions that might be one instance of the cloud. This is a new architecture, it's not the old waterfall model it's not the old six months to provision into it, mentioned that. This is like a highly competitive environment. So Stu I've got to ask you, how do you squint through that and look at the competition that Amazon has, obviously the numbers aren't great. But how should customers look at the competition, how are you looking at it, how is our team evaluating the competition? >> Well first of all John, it is not a zero sum game and it is very nuanced and complicated. And for most customers it's not a solution, it's many solutions and it's something that Amazon doesn't love, is that you talk about things like multi-cloud and they would say "Well, we have the "best service everywhere and we're the cheapest everywhere "and everyone's all in on us," well, when you get down to it, You know, I hate I have to defend a little bit, you say Microsoft and Oracle, legacy. Microsoft has business productivity applications. They are the leader in the space when you talk about... >> Yeah they're the leader in legacy applications. >> But you know, you start with the Microsoft Office Suite, and say what you will, it's still dominant out there, it's there. Microsoft gave enterprises the green light to go to SaaS, and they really helped drive that. >> John: Whoah, whoah, that's a direction. >> Yeah. >> John: But they're a legacy vendor, what you just said is that they're legacy. >> But Azure is doing quite well... >> John: Oracle's going to the cloud, are they legacy? >> Oracle's got a phenomenal team, have been building some really interesting things in cloud, but obviously no doubt about it, Amazon's leading, but when you talk to users and you say, okay, there's lots of reasons they might be using Azure for various pieces. Everybody is using AWS, except for those people, John, and you used the example, the ones that compete against Amazon and obviously that's a concern. Because today Amazon is competing against more and more companies, so that's a little bit... >> I'm not, I'm not down on the legacy, what I'm trying to point out is that IBM was clear about this, they were up front about it at IBM Think we were just at, which is, they're saying the legacy has to evolve. Doesn't mean legacy's going to die, I mean Microsoft clearly is going to the cloud, their stock's at like 90 plus, it was at 26 a few years ago so, Satya Nadella taking over from Ballmer. Clearly that's the direction Microsoft has to go, and they're doing it. Now, they're a legacy company doing cloud. Oracle, legacy company, doing cloud. IBM, legacy company, doing cloud. So that's necessarily a bad thing, I'm just saying vis a vis the competition I would put Google and I would put Amazon in a new, modern, non-legacy kind of world. >> Yeah, well okay, and you find one of the lines I love that Werner Vogels was talking about is we talked about AWS customers are builders, and he said builders have a bias for action. And I love that, because if you talk to companies, and you know, we've talked a lot on theCUBE, digital transformation, much more than a buzzword, John, I've not talked to anybody, that they're like, "Oh, kind of hogwash, you know, I'm just going to "keep doing the same thing I've been doing "for the last 10 years and I'll keep being successful." We understand that change needs to happen and it's not easy. So if you've got data scientists, if you've got, you know, understanding data, if you're embracing developers, Amazon has affinity with these groups, and that's why they build and they listen to their customers and there's new services and another thing, Amazon gets up on stage and it's not so much "Oh, here's the vision of where we're going," it's here's the stuff that we GAed that we already had you in the beta. Here's the new things, and they might give you a couple things in preview, but they iterate and move so fast. >> Yeah, checking the boxes on the product side, but... >> But much more than checking the boxes, they listen to their customers. >> Well, well of course, that's what they say, but we know they're doing that, but the thing, I mean checking the boxes, they're on the cadence of the Amazon releases, which we've talked about that. But fundamentally, Stu, I think the two big things and this is what I want to get your reaction to is, what's going on with Amazon, the consistent thing is that they lay out the preferred architecture of the modern stack and it's not the same architecture as the old way. Two, the SageMaker and machine learning and where AI is going, if you look at what Matt Wood discussed, SageMaker, my prediction, will surpass Aurora as the number one shipping service for Amazon in the history of their product. That thing is on a torrent pace, and the way they lay it out architecturally, they're not head figment, they're saying this is what we're doing, they lay out the architecture, and they're putting in the machine learning. So, to me, I love that. Now, all the other stuff that they're doing it's just the cadence of Amazon. More announcements, more services, general availability, they're moving the ball down the field, as Jeff Frick would say, matriculating the ball down the field. So your reaction to the modern architecture, and the SageMaker, machine learning for all developers. >> Yeah, absolutely, Amazon is setting the bar for how we think about architecture today. They're leaders in serverless, an area I've been hot on the last year or so. You know, Werner was up on stage talking about Ai Roba who I got the chance to interview last year. So absolutely they are the bar that everything is measured on in this industry. And if they're not, have the leading product in everything, they are close second and they have so many services that there is just this flywheel of not only services and customers and the new flywheel we talked about on theCUBE two years ago with Andy Jassy is data. John, I want to throw back at you a question. Amazon released something called AWS Secrets Manager. Do we trust Amazon with our secrets? Is the government coming after Amazon now? There's some of these macroeconomic things happening, you're hearing everything in Silicon Valley, what are you hearing lately? >> Well what I'm hearing is one, people are really kind of not happy with Amazon's success because it, you know, market share at the expense of other old guard or legacy vendors, and so that's taking it's toll. Oracle to me is the biggest company that's impacted most by Amazon. It's clear that a war of words is happening between Ellison and Jassy. Two, there's a big policy battle going on in D.C. I think Bloomberg broke a story that Oracle is trying to incite Trump to tackle Amazon proper, but and then Amazon is affected, Amazon Web Services is affected, because they have all that Department of Defense and the CIA deal, so you're seeing Amazon, Amazon Web Services for the first time dealing with competitive pressures that's old school tactics, which is policy formulation, and as they say in the policy game in D.C., Stu, the battle is won before it's even fought. This is new territory for Amazon, they really got to get their act together, and if I had to tell Andy Jassy any advice would be like look it, you got to start thinking chess game at this point, and understand that the competition is not going to roll over. We've said this on theCUBE many times. Oracle's not going to roll over, IBM's not going to roll over. Now, other companies, like Cloud Air who's down thirty percent on earnings, they're going to have to do a deal with Amazon, just like VMware did. So I think you have these big cloud players sucking the oxygen out of the room, and there are impacts. The growing startups who are pre-public companies or are public companies have to either join the ecosystem or find another partner. The major cloud players are going to fight tooth and nail for market share as stakes on the table is the future internet, it's basically everything in cloud that's going to extend to democratization around decentralization, the future of money, sovereignty, government, digital nations, internet of things, these are, it's a high stakes chess game and Amazon is now on new territory, and I think that to me is the big walkaway is that no one is going to let them take this uncontested. >> Yeah, John, look at this crowd. The expo hall is filling up, customers are still excited. The buzz that I hear is that Amazon, they listen, they still move really fast when they need to make changes, I remember a year ago when we were here for the Google event I was talking, it's like, ah, Google's got such better pricing for the small business and everything like that. A week later Amazon changed all of their pricing, billing by the microsecond, I talked back to some of my sources and they're like, "Yeah Amazon listened and totally flipped the game." >> Yeah, well Jassy, he... >> There are sustainable advantages, so difficult in the fast pace of change but Amazon is doing better than what Oracle used to do in the past, they were kind of like, we'd get the lead and kind of want the competition intact, with them with the old sailing analogy, Amazon doesn't worry about the competition, they listen to their customers, they're moving forward. >> Well, I think that they do, they don't admit it but they have to watch, they've got to look in their rear view mirror a little bit, but Stu, to end out the analysis I would say the following, my observation is this: Andy Jassy and his team are very customer-centric. He sat on theCUBE many times, so as an organization they're very process oriented, they'll listen to customers. But if you look at what's happening in the world today, is that in the old way, the way that Intuit laid it out that took months to provision the software, the old technology business model or venture architecture for a business was make a sound technology decision, and all the chits will fall in the right places. This is completely opposite now, if you look at what's going on with cloud and blockchain and cryptocurrency and decentralized applications, it's the business model that matters, the technology switching costs are now fungible with Lambda you're starting to see these sets of services that can be spun up in parallel. So the scale and flexibility of the platform, and Werner Vogels pointed this out on the keynote, this is fundamental. The decisions that are fatal to a company is the business model and the business logic, this is where the action is. That means it's not just a developer game any more, it's the CTO, it's the data scientists, and Werner Vogels laid that out and I think that to me was my big walkaway from today's keynote is that Amazon recognizes that it's not just about developers, make developers more productive, but bring all those people together to do the right for the business model, the business logic and applications. >> Yeah, John, we're always looking for what are those things that are slow down the company and the roadblocks, one thing Amazon I think did a great job they're out in front of GDPR, that are super hot topic out there, and they just say categorically, "We're ready for GDPR on all of our services," so full steam ahead, don't stop your spending, keep growing. >> Couldn't be a better time to be a theCUBE host to analyze and talk about the competition. Let's see how Amazon handles the competition, do they just keep pedal to the metal, or do they address it and play those 3D chess games? TheCUBE here in San Francisco for live coverage of AWS Summit 2018 in San Francisco, more coverage after this short break. We'll be right back. (techno music)