>>the >>globe. It's the Cube with digital coverage of AWS >>reinvent 2020 >>sponsored by Intel, AWS and our community partners. Everyone welcome back to the cubes. Virtual coverage of AWS reinvent 2020 Virtual I'm John for your host. Got a great segment here with two analyst day Volonte and Zia's Carvell who's head principles of zk research dot com. Guys. Great to see you A W s Kino. Thanks for >>coming on. Let's be back in the cube. >>Welcome back. Great to see you guys. Wanna get your thoughts? Um, it's mainly you because we talked with the enterprise a lot. You are leading analyst. You cover a broad range from networking all the way up to the C suite for enterprise buyers and and technology trends. Um, Andy Jassy laid down, in my opinion, what was directionally his next 20 mile stare. The next conquest for Amazon. And that is global. I t spend they locked in the infrastructures of service pass kicking ass. There. Check check. Hello, Enterprise. Different ballgame. What's your thoughts? >>Yeah, they have so much in different areas, obviously. You know, they have dominated cloud instances right there. Mawr compute storage memory. You know insists that anybody but you can see him, um, spreading their wings now, right? I think one of the more interesting announcements was actually what they're doing with Amazon connect. That's their contact center platform. And this is something that I think, Even last year, a lot of people weren't really even sure if they'd be in a long primary in the pocket. People about this market, they were asking, If you really think Amazon's in this, there's something they're experimenting. But we're here to stay. And I think one of the interesting things that they bring to market is, you know, almost unprecedented scale with their cloud platform as well as all the machine learning algorithms. And I think if if you believe that machine learning artificial intelligence is changing, I t. Forever and that's everything from the infrastructure to the network through the applications, then they have an inherent advantage because they have all those machine learning albums built into this stuff that they dio and so they can constantly look at these different markets and disruptive, disruptive, disrupt and take more and more sharing that and that's what they've done. E think that's you know, the context and announcements were great example that they're not doing the telephony things, and, you know, they're kind of bare table stakes. They do that pretty well, but they've just unloaded a whole bunch of ai based features that >>Dave, what's your take on this context center? Because it's not just call centers. I mean, there was a whole industry around call center, unified communications. That whole world. This is about the contact. It's about the person. This is not just a nuanced thing like telephony or, you know, PBX is in the old days. Remember those days? Things is not about the call. It's about the contact. This is what Jazzy saying. >>I think that way had Diana or on early. And I said, I like the fact that their AWS specifically is going after these solutions because several years ago it was just sort of. Here's a bunch of tools. Go figure it out. I think the contact center is I mean, everybody can relate Thio the pains of going through getting rerouted, having to restate all your credentials, not knowing who you are. And so between machine learning, Alexa, Natural language processing, better work flows. I mean there's this huge opportunity toe reinvent the whole call center contact center. So, uh, yeah, I think you called it John. It's a no brainer for a W s toe Really disrupt that >>business. Well, it also puts him in a position. You know, news is breaking on the day of and yet his keynote here at reinvent that, uh, you got Salesforce spying slack for 27 close toe, $28 billion. That's a 55% premium over when they announced it. And that's like a 30 x or 50 x on on revenue. Massive number to confess the message board software. I mean, so So. So. If Amazon can come in and get the context center model, which is not just voice, it's chat, it's machine learning. It's bots. And the innovation to create a step function kind of brings it back into the that integration of user network compute. You know, I just think that it feels very edgy in the sense of edge computing, because if I'm a person, I'm mobile. If I'm a person at work or at home, so there's a whole redefinition Zs, what's your take on this edge? Play from Amazon in context toe the enterprise software landscape. That seems to be, you know, focus on buying companies like Salesforce. >>Well, I think edges really the next big foray for computing. If one of the things and you ask we talked about this, you know, was that the compute, the unit of Compute, has gotten smaller and smaller, Right? We went from data centers to servers to virtual machines, the virtual machines and clouds. Now we're talking about containers and containers on edges, and this requires, um if you if you believe in the world of distributed computing where we're gonna have mawr containers running in MAWR, places on MAWR edges, right. The value proposition where companies is now they can move their data closer to the customer. They could move data closer to the user. And so, if I'm a retailer and I'm trying to understand what a customer is doing, I could do that in store. If I'm Tesla and I'm trying to understand what the drivers doing, I could do that in car, right? If I'm a cellular provider, I could do it by cellular edge. So the edge, I think, is where a lot of the innovation is going to be at Amazon has the luxury of this massive global network. You know, they just announced the number another a number of other local nodes, including Boston and a few other places. So they've got the footprint in place. And this this is what makes Amazon's are difficult to compete with, right? They built this massive network and this all these, no doubt for their e commerce business. And now they're leveraging that deliver I t services. You can't just go build this from the ground up the variety, right? You have to be able to monetize it another way. And they've been doing that with the commerce for a long time. And so it makes them. It makes it very, very difficult for them to capture Google could with Daniel forget about the item. Oh, yeah, so good. Microsoft. Possibly. But they I think that the more distributed compute becomes the more favors Amazon, >>I would add to that if I could, John, I mean, look good. Look at the prevailing way in which many of the infrastructure the old guard is Andy. Jesse calls them. Companies have pursued the edge they've essentially taking, taking x 86 boxes and, you know, maybe made him rugged and throwing them over the fence to the edge. And that really is not gonna play the edges. Now there's not one edge. I mean, there's a very highly specific use cases and factories and windmills. And maybe maybe it's small retail organizations, and whatever it is that those are gonna be really unique situations. And I think the idea of putting a programmable infrastructure at the edge is gonna win. I also think that the edge architecture is gonna be different. It's going to require much more efficient processing to do a I Influencing a lot of the data is gonna be, uh, stay at the edge. A lot of it's not gonna be persisted. Some of it's gonna come back to the cloud. But I think most of it is actually gonna gonna either not be persisted or stay at the edge and be affected in real time. When you think of autonomous vehicles so totally different programming model, >>well, I think that's the point of what I was saying earlier Zeus was talking about Is that it's It's the edges is just different. I mean, you got purpose built stuff. I mean, they were talking by the way they have snowball. So they have, ah, hard edge device. And they got out outpost now in multiple flavors and sizes. But they also were talking about computer vision and machine learning. We're going together for that. The panoramic appliance. I think it was where there's all these different cases to your point, Dave, where it's just different. At the edge, you have the zones for five G. I mean, if you go to a five g tower, that's essentially an edge. Just there's equipment up to this. Radios is transceivers and other back haul equipment. So when you look at the totality of what it is, the diversity, I think that's why this whole idea of Lambda and Containers is interesting. Toe Zia's. When you were saying about the compute sizes being small, because if you could put compute at the edge on small pieces to match the form factor that becomes interesting. I think that's what this Lambda container announcement I found interesting because I see that playing directly into that your reaction to >>that. It actually, um, makes it. If not done correctly, it could make I t much more complex because, um, containers air interesting because they're not like virtual machines. First live in perpetuity. Containers you They're very ephemeral, right? You spin them up to 30 seconds, you spin them up for a couple of minutes that you deprecate them. So at any given point in time, you could have thousands of containers, a handful of containers, millions of containers, Right? But it necessitates a common management. Uh huh. Underlay that could be used to visualize where these containers are, what's running on them. And that's what AWS provides. You know, all the stuff they're doing Lambda and Eks and things like that that lends itself to that. So a customer can then go and almost create a container architecture that spans all their cloud's edges, even on Prem. Now, uh, when Amazon has but still be able to manage it and simplify it, I think somebody's trying to do it themselves. They're gonna find that the complexity almost becomes untenable. Unless you have a Nike organization the size of Amazon companies don't. So we're >>gonna here, we're gonna hear from Deepak singing in a few sessions. He did the eks anywhere. That's essentially kubernetes service on the data center. But look at what they did with eks anywhere and then CCS, which has a common control plane to your point, that's compelling. And so, you know, if you're a developer or you're an enterprise, you might not have If you want to go with this. I t world. We talked about earlier zeros before you came on on our last segment. Most I t is not that built out in terms of capabilities. So learning new stuff is hard, so operating Amazon might be foreign to most I t shops. This is a challenge. Did you agree with that? Or or how do you see that? >>Um, well, a lot of Amazon used, obviously just the interviews and numbers of fucked that right. Um, but I think the concept of in a world where you have that common operating layer that spans it's no longer geographically limited to a data center or to a server. You know, it's it's now distributed across your entire multi cloud or distributed cloud environment. And so one of the important things right people remember is the world is becoming more dynamic and or distributed, and your I t strategy has to follow that. If you're doing things that are counted that you're not only standing still, you're actually going backwards. And so what Amazon is doing is they're allowing companies to be is dynamic distributors. They need to be to be able to maintain that that common operating layer that actually makes it management, because without it, you just you wind up in a situation. Like I said, that's incredible. A lot of people facing that today. And that's why that's why there's this big divergence, right? This five native cos they're going fast and legacy companies that can. >>Guys, I want to spend the next 10 minutes we have getting into more of the business side from this keynote because because I know your research on digital transmission first. I know you know the networking side up and down the stack and all that good stuff, but you've been doing a lot of research around the digital transformation with the cloud. Dave, you just put out a great great breaking and else think your 55th, um, episode on digital transformation with the cloud. It's very clear that Jackie is basically preaching, saying, Hey, Clay Christensen is former professor who passed away. He brought up this whole innovator's dilemma kind of theme and saying, Hey, if you don't get the reality that you're in, you better wake up and smell the coffee. It's a wake up call. That's what he's basically saying That's my take away. This is really this business management lesson. Leadership thinking is super important, and I know we've We've talked about people process, technology. Uh, let's Covad eyes this real quick. Bottom line. What is the playbook? Do you agree with jazz? His point of view here? Um, he's pretty being hardcore. He's like, literally saying adapter die in his own way. What, you guys thoughts on this? This is a true forcing function. This cove, In reality, >>I mean I mean, if you talk about the business transformation, digital transformation, business transformation, you know, what does that mean? I, like, said earlier that the last 10 years about I t transformation, I think the next 10 is gonna be about business transformation, organizational industry transformation, and I think what that means is the entire operational stack is gonna get digitized. So your sales you're marketing your your customer support your logistics. You know you're gonna have one interface to the customer as opposed toe, you know, fragmented stovepipe siloed. You know, data sets all over the place, and that is a major change. And I think that's ultimately what a W. S is trying to affect with its model and has obviously big challenges in doing so. But But that, to me, is what digital transformation is ultimately all about. And I think you're going to see it unfold very rapidly over the next several >>years. What's your reaction? What's your view on on the on Jackie? >>And he talked about his eight steps toe reinvention. Um and e think what digital transformation to me is the willingness to re invent disruptive own business even in the face that it might look horrible for your business, right? But understanding he is there something that I think is true. And a lot of, um, business leaders don't fully by this that if something is good for your customer, they're going to do it, and you can either make it happen, or you gonna watch it happen and then have the market taken away from me because there's a lot of cases you look at how slow you know, A lot of the banks, you know, operated until you know, the a lot of these, uh, cloud native, uh, money exchange systems came around the cape. Alan Ben more and things like that, right? Even retailers Amazon completely disrupted that model. You could say that Amazon killed, you know, Toys R us, but 20 rescue Toys R Us E. And I think there's got to be this hard willingness to look at your business model and be willing to disrupt yourself. And what Kobe did, John, I think, is a taught us a lesson that you have to be prepared for anything because nobody saw this coming. And sure you can. And a lot of companies thrived out of this, and a lot of one's gone away, but that the ability to be agile has never been more important. But you're only is Angela's. Ike lets you be, and that's what that's what. The W. Is going to sell us the ability to do anything you want with your business. But the staff, you have to have the business because they're willing to do that. >>You know, that's a great point. That's so smart. It's crime that's worth calling out. And we were talking before we came on live about our business with the Cube. There's no virtual, there's no floor anymore. So we had to go virtual if we weren't in the cloud. If we weren't doing R and D and tinkering with some software and having our studio, we'd be out of business. Dave. Everyone knows it. Now Get the Cube virtual. We have some software were position, and this kind of speaks directly to what Andy Jassy said. He said. Quote. If you're not in the process of figuring out as a company, how you're going to reinvent your customer experience in your product and reinvent who you are, you are starting to unwind. You may not realize it, but you are. What he's saying is you better wake up and smell the coffee and I want to get your guys reacted. You, particularly you around your experience and research. I've noticed that some customers that had cloud going on did well with co vid and said ones that didn't are still struggling not to catch up. So you're kind of intense. You got some companies that were that were on the wave, Maybe kind of figuring it out, that we're in good position and some that were flat footed and are desperate. Um, seems to be a trend. Do you agree with that? And what's your view on this idea of being ready? What does that even mean to be? Have readiness or >>take, you don't get the data points that Andy threw up there, right? That 50% of the companies that were the global fortune $500.2000 or are no longer here, Right? That Zatz Pretty shocking statistic. And that does come, uh, you know, from the willingness to disrupt your business. And if you got you're right. The companies that had a good, solid class raging in place, we're able to adapt their business very quickly. You could you look at retailers. Some had a very strong online presence. They had online customer service set up those companies didn't find other ones, were really forced to try and figure out how to let people in the store had a mimic. You know, the in store experience, you know, through from, uh, you know, support interface or whatever. Those are the ones that really struggling. So you're right. I think companies that were on the offensive plug to Dover companies that were fully in the cloud really accelerated their business and ones that didn't buy into it. I think they're struggling to survive in a lot of They're gone. >>Yeah, and all that. John, When Jesus was talking about his view of digital transformation, I was just writing down some of the examples to your point. The folks that were sort of had were cloud ready, covert ready, if you will. And those that weren't But think about think about automobiles. You know, there's testily even a manufacturer of automobiles or they software company. Personal health has completely changed over the last nine months with remote. You know, uh, telehealth automated manufacturing. You think about digital cash, e commerce and retail is completely, you know, accelerated. Obviously toe online. Think about kids in college and kids in high school and remote learning farming. You know, we've done a great job in terms of mono crops and actually creating a lot of food. But now I think the next 10 years is gonna be how do we get more nutritious food to people and so virtually every industry is ripe for disruption, and the cloud is the underpinning of that disruption. >>Alright, guys, got a few more minutes left. I want to get your thoughts quickly on the keynote. What it means for the customers that we're watching again. This is not a sales and marketing conference as they talk about. But if you're sitting in the audience, you guys, we're watching and we're virtual um Did it hit home with you? If you're a customer, what did he what? Give us Give the grades. Where do you Where do you hit a home run? Where he missed. Did he leave anything out? What's your take Zia's? We'll start with you. >>Um, I thought it was actually really good Keynote. I thought you did a good job of making the case for AWS. They talked about the open. They have more instances than anybody. So you could do almost any kind of compute in their cloud. I think one of the important lessons variety to is the importance. You can't just do everything. The software right? Hardware Still important silicon still important that, and to meet the needs of very special he needs from things like machine learning and AI. Amazon's actually spending their own silicon very much like Athens doing with their computers. And so if you are going to be a customer service focused company, you need to think of the I T. Stack and everything from the silicon, the hardware through the software, and build that integrated experience to Amazon's giving a tools to do that Now E. Do I would like to see Amazon be a little more, um, a supposed the cloud competitive friendly. The one thing I hear from customers all the time is they love the Amazon tools. They love the optimization capabilities, but you know, if they are adopting some kind of multi cloud strategy, the Amazon tools don't work in Azure and the capital don't work in Amazon. The same with Google, and it would be well within the best interests of those three companies. They find a way to get together and allow their common framework to work across clouds. Amazon's already got a lead that they could do that, and I don't think it's gonna be, but that that is something I think that's still missing from this world is they make it very difficult for customers to move the multi cloud. >>Well, some would say some people are saying, saying that the number one in the cloud I mean, got cloud wars Bob Evans over there saying Microsoft is dominating number one position over everybody else, multiple quarters in a row Now he's looking at revenue and granted. You got a lot of propping up there you got. You know, Windows server and sequel. You got a bunch of professional services, But clearly the I as in past side of the market, Microsoft is, like, way behind um So, yeah, they've got the numbers little legacy in their Microsoft should, and they got a little base. If I'm Amazon, I'm not. I'm worried about Microsoft more than anybody. I think you know, I looking at the Civil War between the Seattle forces. I mean, this is really Microsoft's gotta greatest all base, and they could flip that license deals and >>the cloud is good enough. I mean, it's myself doing very, very well with its classic Microsoft. You know >>they your point. Microsoft is the king of good enough, right? They put out features. They market heavily to the I t pro on. They put out licensing packages, so you're almost foolish to not at least fry their products. And then they do roll it out. So it's good enough and then you live with it for a while. But ultimately, whenever people use Microsoft, they do have an alternative under in there for a very special case. But e don't wanna >>the king of good enough. That's a great line. I love that. I'm gonna use that. But this Babel fish thing for Aurora that is a huge dagger. Potentially, it's an escape valve for customers. They wanna leave Microsoft. But clearly, if Microsoft you're gonna get penalized by running your license on Amazon. >>If our CEO our i t c t, I'd say, Okay, I definitely want to do business with with Amazon. That's what I heard today from Jassy, and I would want to hedge my bets either with Microsoft, especially if I'm a Microsoft shop or with Google's from analytics heavy unquestionably. I'd want to hedge my bets and have some kind of 70 30 80 20 mix. >>Look, if you're Andy Jassy and he's told me my interview, do it directly. I asked this question. He was very forthright. He doesn't hide from the fact that, uh, customers have multiple clouds, but they have a primary and secondary, but they're not gonna have, like, five or six major clouds. Yeah, it's hard to get these teams trained at to begin with. So there's a hedge. There's a supplier leverage. I get that. He's totally gets that. But if you're Amazon, you're gonna have your annual conference. You really don't wanna be in the business of talking about the other guys cloud, you say hybrid, right? It's on my show. You know, like you're competing. This is there's definitely competition between Microsoft and A W s. So you gotta respect that. But yeah, of course. There's multiple clouds called hybrid eks everywhere. Uh, container service. I mean, >>especially global, right? Different cloud providers of different strengths in different regions. You know, Microsoft, very strong in the Gulf. AWS isn't you know. So if you're a global company, um, you know, then you almost by default, have to go multi cloud multiple cloud vendors because of geographic differences. Obviously, China, with its own set of cloud providers. So, you know, smaller midsize businesses could get away with one, but As soon as you become global, you have to use more. >>Well, I'm a big fan of distributed computing. I loved the large scale concept of distribute computing. You got regions. Now you've got local zones. You got I O t edge. You got cloud going on Prem Edge. It's really an edge game at this point. Greater now distributed hyper Put hyper next to anything hyper cloud on your sounds better Piper >>Cube. And the opportunities the cloud providers and Amazon, you know, certainly is leading. This is the ability to take this complex, hyper distributed world and use their management tools toe create a normalized operating simplify What would be an overly complex world about it? >>Okay, we got a break. Just quick plug. There's a big salesforce event coming up on December 10th. Check it out on the Amazon site that that plug in you watching the cube stay tuned for more coverage after this break

>> from Seattle Washington It's the Q covering AWS Imagine brought to you by Amazon Web service is >> Hey, welcome back there, buddy Geoffrey here with the Cube. We're in downtown Seattle Day Ws Imagine Edie, you event. It's their education event and every education Everything from K through 12. The higher education community College Retraining after service is a really great show. It's a second year. We're happy to be here. We've got somebody has come all the way from Spain to talk about his very special company. It's Ignasi. Nuclear is he is >> the CEO of click dot edu. Yeah, nice. You see? Welcome. >> Thank you are way really pleased to be with you. >> Great. So tell us, kind of what is clicky? Do you What? What is kind of your core value? >> It's ah, platform that makes all the things that the school needs seeing atleast in Spain. So it's a miss system also on elements also the communication with the family that Petra is Ah Wei Tau financial the school and also a lot of things that they are related on >> right? And you've been around for a while. So when did the company started? How was kind of some basic numbers on how many customers do you have? Could you operate in a lot of countries? A lot of schools? >> The as we have schools working with us already in all of Spain, Also in Chile, Colombia, Arneson, UK. On also in a little country in Europe that is called Andorra. So we're really happy because you have more than 1,000,000 off users working with us. >> 1,000,000. Congratulations. And is it mainly do you specialize between, say, K through 12 or higher education? Or we're kind of all over the place? >> Yes, we're focusing K 12 schools. So the one off the important parts are the communication with parents on dhe to follow all the things that the student. That's >> right. So you guys have a very special thing that you're announcing here at the show is really focusing on Alexa for K through 12 which nobody else is doing. That's really something unique that you guys, How did you get in that? What did you see in voice communication and Alexa that you couldn't do in the platform before that? You really saw the opportunity? >> Yes. All the people say is that >> the future or the present Now is the voice on all we will communicate by boys in the future over Internet. You see a lot off young guys doing all the things my boys know, right? Texting, etcetera. So we thought that it could be a nice idea that the communication between parents and also for a students to the school and be on in the other way, could be could be by boys. So we imagine how to do >> it on. We did it. It's really knew. >> When did you start it? When did you start that project? >> This project we began three months ago, >> three months ago. So, >> yeah, it's really, really knew the boy's idea, right? It was in >> a show that I have seen. Ah ah, law. A lot of people were talking about that, but there were, at least in Spain, in the Spanish. Nothing about so with it, we can be the first. So >> we leave. That's >> great. So before we turn the >> cameras on, we're talking about some of the issues that you have in one of the ones is integration to all these systems because, you know, I have kids. I might have multiple kids in a couple different grades. You have kids and a fine looking for access on their homework or their test scores. You know he's got integrate with all those different back ends to keep things private. But you're kind of in a good spot because your system is the one that's on the back end, right? Yeah, so that worked pretty well. And then the other piece, he talked about his two way voice. I don't think a lot of people think in voice communication, yet it's still more of an ask and get a reply asking and get a reply. But you guys are actually pushing notice vacations from the school, out to the families using voice. How's that working out? You know what are some of the use cases? Yeah, >> it's like it's like the parent can ask Toe elixir, for example, What's a home or for tomorrow for one of your son or daughter on DA on The Echo tell you about that. So it's really impressive, because in that moment the system goes to the school system to get that information on our system. Yeah, on Alexa translating voice So it's It's It's funny >> I just think it's funny that I get e mails from all my digital assistants telling me, suggesting things that I should ask them because it's really not native yet as as an interface to work with these machines. But, well, he's mentioned that the young people voices much more natural. So I wonder if there's been some surprises or some things you didn't expect in terms of people comfort level with voice as a way to communicate with me. >> Say, I think it's, ah most natural way also for us that we are not not if but off course. So we communicate better by boys and writing or texting. So, so off course. It's the future because it's another away. So the use off that systems goes up because off that. So I think it's the most the most thing that for for causes more surprising, >> right? And so will you guys supply the Alexa? It's for people's homes. Or is it something they can tap into their existing Alexa Yeah, >> uh, usually, ah, the case for using that is in your home or else on your phone so you can install licks on your phone and you can ask them. I'll see if the UK fun ankle, >> but handle it. But how do I look? How do I hook my existing echo? Yeah, yes, I bought into the school system. >> Yes, because sometimes some universities are They pulled their A coin. I don't know in the university, or but you can use your echo that you are using it for other things. Listen, music me Listen, missing music or whatever >> and you >> can use the >> same. Yeah, you can. You >> only have to, like, download an >> app for >> your phone. There >> is more less is the same us Alexa to >> install, click in the Web or a skill that it's cow. It's called right, and then you >> have it. So what's next? What's on the road? Map on the voice specifically, Where do you see this kind of evolving over the next little while? >> Yes, our our next goal in the parties that they can use the teachers in the school. The boy systems also so for doing what they do every day in ah Maur writing or whatever, we can do it by voice. For example, interview with the parents, a transcript or, for example, to say that somebody hasn't come to the school or toe tell to the Transportacion that something is company. These kind of things is what we are. Imagine it's in our next things that we will do it with voice. >> It'll be Lexa in the classroom, hoping, thinking, Yeah, right. What about privacy? I would imagine knows funny. In the early days of Cloud, security was a was was not good of the show stopper. People were concerned about 10 years later. Now security is a strength of cloud, right? It's probably more secure than most people's data centers or disgruntled employees. I would imagine privacy and security. This is probably pretty top of mind in the school district as well as a lot of personal information. Are they comfortable? Do they kind of get the security of cloud and cloud infrastructure, or is that still sticking point? >> You know that in Europe there are really strict low of our protection off that right, so we are really concerned about that. So we are talking with the school's what kindof systems. They will be comfortable because you want to use it, so we'll have to find >> the clue to do that. But It's really >> important, I think, all over the world, but in the stage or in Europe who are really concerned about that. So we'll see how to find it. But we can create a private skill, right? Yes, because there are birds shown off, Alexa, that is for business. So you can create your provide things on. You don't have to be for that. Somebody's listening. You >> right? All right. So the last last question here at the conference and you come last year? >> No. So what do >> you know? Just your impressions of the conference Has it nice to be with a bunch of like minded, you know, kind of forward thinking educators because because education doesn't always get the best reputation being kind of forward looking. But here you're surrounded. So I just wonder you could share some of your thoughts of the of the event so far. Yeah, >> I think this guy no five ins give you more motivation on you. Increase your you're way t to see that there are a lot of people that is pushing to innovate and do the things different. So really, really interesting to goto some machine learning. Ah, suppose is shown about California. What? They are doing that right? So I'm really interested. >> Good. Get all right. Look Nazi. Thanks for taking a few minutes. And, uh, congratulations on that project. That's really crazy. Thank >> you for your interest in. >> All right, >> Jeff, you're watching the Cube. Where it aws Imagine in downtown Seattle. Thanks for watching. We'll see you next time.

>> From the Amazon Meeting Center in downtown Seattle, it's theCUBE covering IMAGINE: A Better World, a Global Education Conference, sponsored by Amazon Web Services. >> Hey, welcome back everybody. Jeff Frick here with theCUBE. We're in downtown Seattle at AWS IMAGINE Education. First year of the show, 900 registrants, 20 countries represented, really all the public sectors show, but this one's just focused on education as its own track. A lot of really interesting innovation going on, and as part of the keynote, we saw a really cool concept video about bringing Alexa into the class. The Echo Dot talking, and so, we're excited to have kind of the guy driving this whole project. He's David Hakanson, the CIO of Saint Louis University. First off, what a great keynote you had this morning. >> Thank you, thank you, and we're really excited to announce this today. So, today we announced that we are putting an Amazon Echo Dot in every single residence hall room. So, over 2,300 devices that will be in every room awaiting students for this fall. The device will be essentially their virtual assistant. They can ask questions specific to the university, through our custom skill, or any other question that's normally through the Alexa platform. >> So, the voice of God is talking above us, but that's okay. So, it was interesting when you were starting your presentation earlier today, I'm like, what are the applications going to be? I mean, what are these kids going to do with this? Like, we've got a Dot at home. We ask it to play music all the time, but you really did your homework on trying to think through what are the different use cases, what types of information are going to help the kids get their information a little bit faster, a little easier? >> That's right. We want this to be valuable for our students, and our students are active inside and outside of the classroom. Our university does over a million hours of community service a year, so we attract a very active student. We don't want them to be spending time searching for information. We want them to get that information immediately. Whether it's something simple, such as when is the library closed? Or, what channel is their favorite show going to be on? We want them to be able to get very fast access to information because right now, they have to search through web pages or calendars to find out what's going on on campus or other key information, and that takes time. >> Right. Well, it's funny because there's a lot of conversation about the educational experience, and really trying to develop an engaging experience for the kids in school, for the students, but the question is always, you know, how do you define engagement, what is engagement, and what are the actual things, the physical activities, that are going to drive this? And you guys, amazing stat. You said you went from concept to delivery in three months, and in that process, really explored a lot of interesting concepts. I wonder if you can add a little bit more color to that development process. >> Absolutely. It started with a six week pilot program, where we tested different virtual assistant technology to see what did the students really like, and they chose the Amazon Echo system. And once we made that decision, we were able to go from that concept to completion in three months, which was fantastic for us because we wanted to make sure we were ready for the fall semester. To do that, we worked very closely with AWS and the Alexa for Business team, as well as the partner, the skill development partner, called Empowered. We were able to use the partner ecosystem to allow us to move very quickly, and through that process engaging our students, engaging our stakeholders to make sure that the device was going to meet their needs, not just be something that looked good on their desk. >> Right. So was voice part of the initial design criteria, or did that come when you were looking at different type of interactive devices? Because clearly, the kids today are super adept on their phone, and they can text with their eyes closed with one finger tied behind their back. Voice is still relatively new. At least, maybe it's not as new as I think, so how did you get to the voice as the main UI for kind of this new, cutting edge information system? >> So, we started with voice saying we want a virtual assistant that's voice based because we see that as the future. So, if you're on your smart phone looking for information, you're still having to go to a website or to different data sources to get that, whereas asking a question is much faster, and getting that answer, it's a much faster transaction. So, we started with that saying how can we use voice technology to help our students be more productive, and then, engaged our students in that conversation, and they were very excited about that. >> Right. So, one of the really cool things about Alexa and the Dot is the programmability, which, obviously, you guys took advantage of. So, a little color on kind of how you chose what to program, but I think even more exciting is what kind of opportunities that opens up as an individual student, as a CS project in the class, and as you said, your university has a lot more going on than just incoming students. You've got graduate degrees, medical things going on, so I wonder if you can shed a little light on kind of how you developed what you have for the launch date, but you know, some of the future things that you see down the road. >> That really goes to the Alexa for Business foundation that we chose, and Alexa for Business was the differentiator for us. It was a key area because through that tool and ecosystem, we could manage the devices, and we could group the devices. So, we could group a learning community of engineers, of students studying engineering, and give them specialized skills or allow them to develop a skill and have that only on their devices, not on everyone else's devices. So, the ability to manage these allowed us to really focus on that educational experience, allow students to start creating skills, and then be able to manage and deploy them at scale. >> That's great. I can't wait to come back a year from now and hear kind of what happened. I'm sure there's going to be all kinds of cool surprises, tough surprises, you know, upsides and downsides 'cause you said they're getting installed this week and the kids are showing up in a couple weeks. >> That's correct, that's correct. (laughing) We're moving very quickly. >> Alright David. Well again, I'm going to give you the last word as you touched on it a little bit, but you know, how working with Amazon and AWS specifically you know, kind of impacted this project and how does that help you, you know deliver your objectives more efficiently and faster? >> Yeah, the only way we could have gone from concept to completion in three months was by working closely with AWS and the partner ecosystem. We could not have done this at any scale or efficient timeframe without them. They were a fantastic partner, helping us all the way from choosing the right partner to develop the skill to helping us on how do we get all these devices to work on our network, to how do we get all these devices working on our network and installed within a couple days, and so, from beginning to end AWS has been instrumental in our success to bring this new innovative technology to our students. >> Okay, well we might have to have a field trip out to Saint Louis and check it out. >> You're welcome to come. >> Alright, he's David, I'm Jeff. We're at AWS in downtown Seattle at AWS IMAGINE. Thanks for watching.

>> 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 Las Vegas, it's theCUBE. Covering AWS reinvent 2017, presented by AWS, Intel, and our ecosystem of partners. >> Okay, welcome back everyone, live here in Las Vegas, this is theCUBE exclusive coverage, but still going to angle media, I'm John Furrier the founder, still going to hang out with Keith Towson, my cohost this week, our next guest, Chris Jordan the chief CEO of IOLAP, online transaction processing for all database geeks out there, Chris welcome to theCUBE. >> Thank you. >> So you guys were part of the team that worked with Amazon on Alexa for business, which believe me, rushing into the market is an understatement. They needed to get this into the market. >> Chris: Sure, absolutely. >> Alexa is the most popular lightning in a bottle. When we saw her come out, we were like, this is going to be awesome. Of course we've got some new cool stuff with the wireless cameras, and amazing set of services. But, in the industry track on Tuesday, the number one repeat session, 'cause that's kind of an indicator, people want more demand was Alexa, anything to do with Alexa. Voice is hot, so tell us about your role with Alexa for business, how did you guys get involved? How far along were you with Amazon before they launched it? Tell us about your relationship with Amazon. >> Right so our relationship with Amazon really started with when they launched red shift five years ago, right. We're a traditional analytics big data, data warehousing type company, and when red shift came out it became really compelling to us. We were already interested in Amazon, or AWS prior to that, got real interested with red shift. Two years ago when Alexa came out, we started playing with it, immediately put it in our innovation lab, and started trying to figure out how can we use this in an enterprise setting? How can we get it into the business place and make use of it? And we almost immediately started working with a couple of our customers one of whom, who was one of the launch partners today in the keynote, with looking at what we can build, and how we can use Alexa in that environment, and what we found was a lot of roadblocks. Alexa was a, Echos and Dots, is a consumer product, right. And it really wasn't right for the enterprise, and so we started building out components that help us get to the enterprise. Ten months ago we started working with the Alexa for business team, and worked real closely with them. When they made the keynote announcement this morning, there was I think eight launch partners that are listed on the website today, one of which we are. We feel like we have a pretty different approach to where we want to use Alexa in the enterprise. >> Alright, so voice is hard. I mean Alexa is great, in fact my wife actually moved Alexa from the kitchen into my room because she thinks Alexa is listening to her. So, some security issues there. But Alexa is great, you talk get some impact. But in the rating of the databases, and normal enterprise stuff is hard. Look at voiceover IP, look how hard that was to jam into an enterprise. So I mean, that's. >> The number one channel is the first thing we bumped into was user authentication if you've got an Alexa device sitting in a room, anybody that comes in and asks a question is going to get the answer if it's built to do it. You can't have that in an enterprise setting. So we had to come up with an authentication method, some active directory integration or something like that, and that was well the first component that we built, and integrated into our platform. That allows us to understand and enable access control and. >> Alright, so let's go down and look at where the challenges were with Alexa for business that they had to overcome, and ones that got a knock down going forward. Either directly through AWS or through Ecosystem Partners. Go ahead. >> Well the first challenge was device management, and that's the biggest thing that they solved with Alexa for businesses. If I'm a company that wants to roll out a hundred devices across the organization, or a thousand devices in hotel rooms or something like that. How do I manage that? How do I deploy it? How do I sign the users and all that? Alexa for business solved that today. >> So let's go down this MDM path a little bit. Alexa is not just a service that runs on a Dot, or an Echo. There are screen use cases for it. I personally don't like just talking to a hailless unit. What are some of the other MDM integration points, not Android, Apple, iOS applications, hailless devices, just apps as a use case for (mumbles). >> Yeah definitely, so the services that are already built, and actually there were actually announced last year at reinvent here Lex and Poly, with those we can build applications that were interacting on our phone either via voice through text with a chat bot like interface but we can also do a display so we can be showing results while we are asking and getting a response. Show results on a screen, either on a device like an echo show, or on a television with a fire stick plugged in it, or on a computer screen with a URL launch. >> So, I'm really interested in this, what John likes to call the white space of Amazon. They get involved in so many areas, good point is authentication. Eventually, Amazon is going to figure that out. So where are the white spaces, and where echo system partners can safely invest, add value to customers and Amazon, but at the same time stay in business? >> What we're doing is taking our years of domain experience, and innovating with our clients to come up with personas and use cases, and really develop those voice applications if you will. That become a almost like another interface into all of the enterprise systems that they've already built. And for us, we think that's what ultimately the business will be. Our platform is great and it solves some problems that aren't necessarily solved already, but I don't think there's anything that stops AWS from solving those problems themselves, in fact I would expect them to over time. >> Well they want The Ecosystem to step up. Eddie Jazzy told me when I had my meeting with him one on one last week prior the conference. I asked him straight up, I go, you know people might be afraid that you're going to roll over these awesome opportunities. And he said look our customers want us to do certain things like monitoring, but new relic is kicking ass, Mongo DB on the database side. So he wants to create, they want to create an environment for partners to thrive, no doubt about it. So you know even though that they might take over it all anyway at some point. But what is the opportunity for partners? 'Cause you guys are first in kind of jumping in the water with Amazon. This is going to be a massively intoxicating area for developers because it's voice. And if they can turn around these API's, I mean the innovation is spectacular. >> Yeah I think it's wide open to build out kind of prebuilt solutions, we've got five already that we think are interesting in the enterprise. At the very least it's a great conversation starter to have a KPI concierge for a CFO. And we've got prebuilt sort of garden path of questions and answers that we can guide the CFO down, and build out his group of KPI's, and that's a repeatable solution. We definitely think there's that solution type problem. The platform we think we've built some unique things there, to be able to integrate the visual assistant part of it, and I think. >> Well, you guys get to leverage your tech in a way that can be put into a new flywheel if you will, but Keith this is what we were talking about earlier. I want to ask Chris the question, because this is the real question. What would be the alternative without Amazon to roll in and roll out kiosks, buy a PC, full stack engineering, QA, I mean it would be ridiculous the cost would be, now you can just walk down and knock down potentially anything with an iPad. >> Right, we. >> You stick an iPad on, you got a kiosk. >> We had our first proof of concept up and running within three weeks, or three months I'm sorry. And we couldn't have done that if it wasn't for all of the platform and service that AWS had already built. >> Huge opportunity, not for startups, but for existing companies. Alright, so what's your advice for folks to end the segment here out there, you guys are on it. You're taking you're intellectual property, wrapping around Alexa, or Alexa is wrapping around you however it works. What's your advice to folks who want to jump in on this bandwagon? >> First thing is to jump in and start playing with voice, and see how it changes the way you interact with your systems. We discovered our customers jumped in, and we thought, there were things that way, they're like can we do this, can we do that? That we never thought of until we just jumped in and started doing it, so jump in. >> Alright, share one thing that people might not know about Alexa for business something that's part of your experience working with AWS on this early program. Share some color, a funny story, something anecdotal, something maybe crazy. Did Verde wear that t-shirt Seattle shirt every day? >> Well, definitely one of the it's not exactly an Alexa for business story, but the thing that really led me to need some form of authentication is when I first put my Echo at home, my children were playing with it, and within ten minutes had ordered a book on a hundred different ways to cook ramen noodles. And so I thought, I don't need them to be able to buy everything they can without me authenticating that somehow, and we need to get some authentication on this device. >> Exactly, all the crazy stuff that comes out. >> Yeah. >> Alright, Chris thanks for coming on. Congratulations on your success of your business. IOLAP, IOLAP, where you guys based out of? >> We're headquartered in Dallas, Texas area, Frisco. >> John: Congratulations. >> Thank you. >> Alright, Alexa for business, hot topic. Let me see, probably a tsunami of integration going on. Again, this could move the needle big time, game changer. Hopefully create great apps. theCUBE, live coverage, day three here at reinvent, more coverage here after this short break. (upbeat music)

>> Narrator: Live from Las Vegas, it's theCUBE covering the AWS re:Invent 2017. Presented by AWS, Intel, and our ecosystem of partners. >> Welcome back, I'm Stu Miniman joined by my co-host, Keith Townsend, and this is one of the interviews we've been really excited. Of course, we've got about 60 interviews. We love all of them. Lots of good excitement. Lots going on at this ecosystem. Over 43 thousand in attendance here in Las Vegas, but happy to welcome back to the program, Chris Wolf, who's the Vice President and CTO of Global Field and Industry at VMware. Chris, great to see you. >> Thanks Stu, thanks Keith. Great to see you guys. >> So for the year, the whole VMware on AWS has been a hot buzz discussion. We've all been arguing internally and on theCUBE about you know, partnering and how does that work and who gets the most benefit out of it, but let's start, Chris I'd love to hear your viewpoint, you know. You talk to a lot of customers. I've talked to some customers that are really excited about it, especially at VMWorld, that were there testing it and doing it. Give us the customer viewpoint. What's really exciting them? What's interesting them? And I know there's a lot of new news we're wanna gonna get into. >> Yeah, you know, there's so much that I think is exciting to customers because you know, they're struggling with being more agile, being more software defined, being able to have more flexibility in their environments. And to be able to leverage VMware Cloud on AWS allows them to go through data center consolidation easier. It allows them to get applications to the Cloud to take advantage of Cloud services. One of the things people, I think kind of falls between the cracks in VMware Cloud on AWS is the fact that if I want to modernize an application or a traditional application, refactoring an application is enormously expensive. It's very hard to do. It's very time consuming. If I can start to move an application into the VMware Cloud on AWS and then start to integrate that with other native AWS services, I get the benefit of modernizing that application without having to touch any of the application code, which is a huge benefit to customers. >> Yeah, we've spent the last couple of years at this show, which well, do I lift and shift? Do I just re-platform it? Do I refactor it? Do I totally rewrite it? You know, the number of customers that I've talked to at this show, their advice that they give to their peers is like well, go faster. And how do we go faster? Do I just take my VMware stuff that I was doing in my own data center, stick it in VMware on AWS, start using all the cool stuff. Is that kind of the path that you see? >> That's part of it. You know, I think there's a couple threads here. There's the notion that you know, I wanna go faster, but to go faster, I have to slay some old demons in IT. Where I have to change my mindset. You know, I can't say I want to be more software defined and more agile and then have specific hardware requirements in my architecture. Of course, that's not for all applications, but that's part of that shift in mindset is how can I go faster? And if it's harder to transform some of my data centers, if I can get into that operational model by getting on Amazon quicker, then that's good for my business. >> Yeah, let me just poke on one more thing on that and I know Keith wants to jump in here, but one of the great things, I think back to 15 years ago. It was like, you know my Windows operating system going end to life. I'm gonna stick it in VM and keep it there forever. But, boy that application was all the technical data. My users hated it and everything like that. How does VMware go from I managed what you had to enabling your future? >> The thing that we're really focused on here in terms of enabling the future, when you think about programmatic compute and networking and storage and security, all applications need them. I can abstract all that away with a Lambda function or whatever, but at the end of the day, somebody has to do it and that part of the fabric becomes really important for things like having a security auto-trell. The other thread there is where VMware's strategic to customers is that they say, "You know I might wanna start this in the Cloud, "but I wanna maintain full control "of all of the intellectual property, "so I wanna use Kubernetes, I wanna use containers, "I wanna use a variety of open source projects. "I wanna use their native API's for my software engineers, "but I wanna have flexibility to build these applications "without pre-destining their future." Maybe it runs in a Cloud today, maybe it runs in a data center tomorrow, maybe it runs out at the edge. Maybe I do an acquisition and it has to run in that facility. The bottom line is, I don't always know what the future holds for my apps. And for the aspect of the apps that are core to your business, there's a lot value in running them on VMware because we can allow you to maintain that flexibility and independence, just like we've done way back in the past with your traditional enterprise applications. >> So Chris, that's a great setup for the next set of questions, which is, VMware has been known to move at the speed of the CIO. We're at AWS re:Invent. These folks move much faster than the speed of the CIO. The question is around, what's VMware's focus? You know, there's VMware Cloud on AWS, there's PKS, there's VIG. You guys came out with Openstack, VMware integrated Openstack 4.0, and then even VMware Cloud on AWS, the promised innovation three and a half months after the release. Iteration on that. That's much faster than what the CIO used to have. How are those conversations balanced between the CIO and the new business user here at AWS? >> Yeah, way to sugarcoat Keith. That's a good question. Look at CIOs today. There's very innovative CIOs. We had the NFL CIO up on stage in the morning Keynote, right? And I thought that was highly dynamic, really talking about how you have to transform business. What we're really focused on in terms of helping customers is making sure that that fabric that runs their business applications is just as fluid and dynamic as their businesses. The security has to be as fluid and dynamic or more dynamic than the threats that you face. So, these are areas that we're focused on, but your point is: how can VMware continue to deliver quick innovation? I think VMware integrated Openstack actually is an example of VMware integration or innovation, so I'm glad you brought it up. We don't talk about Openstack that much now, but VMware was the very first Openstack distro-vendor to make upgrades of Openstack versions they feature as software. Where our competitors in that space were making it a professional services engagement. You look at us, what we've done in terms of supporting containers natively on vSphere. We announced PKS and we were very quick to embrace Kubernetes. We announced Greengrass preview that we're bringing to market as well on vSphere. So, you're absolutely right to give us the feedback that in the past, you could say Vmware was a bit conservative of a company. We were slow and deliberate in some of our innovations. They were important and we were deliberate because we had a reputation to uphold for product quality. That's what our customers expect, but at the same time, it's very good feedback to say that we have to work quicker, and that's the model that we're in. I think that the AWS partnership for Vmware is one example of how we've had a couple of companies learning from each other in terms of AWS and interacting with the enterprise and VMware in terms of innovating a Cloud space, and you're staring to see the benefits and the fruits of that labor now. >> So, ironically I ran into the VMUG president, Ben Clayton doing a show floor. It's amazing to see the crossover between the VMware community and the AWS community. I think VMware Cloud on AWS has been a boom, a realizing that Cloud is coming into the enterprise in a great way. Let's talk about the community and the users. How do you help move that traditional community of, I think VMUG is 200,000 users. How do you help move that membership forward to this new speed of IT? >> It's a terrific question. There's definitely some challenges with getting folks. Part of it is IT folks, we're builders at heart. We love building everything. We love the pieces and parts. We can understand how they matter, but even if they matter like this much, it doesn't necessarily mean that I should build a snowflake for my business because some of the problems that VMware solves, you could say that every business in the world has to solve the same problems. So why focus on some of those smaller nuisances? What we've been really after is providing much more content into the VMUG communities around transformation, around how more modular IT architectures are important. Even beyond the VMUG community, if you think about some traditional VMware channel partners, where their core focus was on some very tightly integrated hardware-based solutions. Those partners, the more innovative ones, are now building hybrid applications across VMware and AWS components and modernizing enterprises that way. We're trying to encourage our VMUG community to do the same thing. I've had talks with VMUG events this year talking to them about Edge Compute and how VMware is investing there and what R&D looks like. Part of this is, I think all of us in IT, we have to have that point in time where we say "I have to let go, "I know the market's shifting, "I know I have to do something different." If I didn't let go in my past, I would still be known for being a Certified Novell Engineer, right? Times change and we have to change too, so it's really important to be prescriptive and give our community all the tools they need to evolve with us. >> Chris, you mention the Greengrass thing that you have in preview for a bit. I want you talk about that a little bit and when I heard Andy Jassy this morning, he talked about the continuum. Instances, which underneath, that's virtualization from VMware. There's containers and there's serverless. Andy says if he was to build IWBS today, he'd build it all serverless. We know it's not a zero sum game and nothing changes overnight, but virtualization is not decimated by containers overnight and containers doesn't go away now that serverless comes out. I want you to talk about the Greengrass and how that spectrum fits into the customers you're talked to in the VMware journey. >> I think it's really, really exciting and certainly I'm a huge proponent of serverless. My 14 year old son has an Echo Dot in his bedroom and he likes to program it to do really fun things. My favorite example is he had it talking about who the ugliest person in the world is and wanted Alexa to name his sister. There's a part of me that's like "No don't do that, son" but then the other part's like "I'm so proud of you." >> That's awesome. But if we step back, there's this huge press to start doing more in terms of getting the analytics and the intelligence to either where the data's being created or where the data's being consumed. We've had a lot of customers come to us jointly, saying "Look, I can't move the data to the Cloud "to do deep analytics or machine learning. "It defies the laws of physics "or the networking costs are just too much. "Or there's latency considerations. "I need a faster transaction execution time." We have a customer, a joint customer, where they're monitoring the heat of the brake pad on a train and they're trying to understand in real time, how that impacts the train's maintenance schedule and when they should take it out of service. They need to get the intelligence of the Cloud closer to where these things are occurring. Let's bring that all back to Greengrass on vSphere. You heard an announcement of machine learning on Greengrass today. To do machine learning, I need some considerable compute horsepower to really make it effective. Most of our customers already have a lot of that horsepower already out at the edge. One of our customers has six to 10 servers. This is very common of a lot of retail organizations, six to 10 servers per stores times 10,000 stores. They're trying to do more with IOT and more analytics. They want to leverage the investments that they already have an infrastructure. The other part that's strategically important to VMware is this: we want to have Cloud services be able to execute where the data's being created and that's a natural use case for virtualization. Then second, we want to have a platform that can allow the most popular opensource technologies to also run there to give customers all of that choice. So for us, it's all about promoting heterogeneity at the edge. We see those Cloud services as really that new generation of application platforms that customers, they don't want some artificial constraint of a Cloud data center to say "this is where it has to run." I want it to run wherever the business requirements say it needs to run and that's what's important and that's what we're doing with this announcement. >> Chris, we talk to a lot of CTOs, senior architects, CIOs and even looking at VMware, trust that part of it has been very stable in the environment for years, the product selection can be overwhelming. CIOs, CTOs need to focus their investment and their strategies in a certain area. Conversations, where are you telling CTOs, CIOs to focus their investment? >> It's a really good question. You definitely have to have a focus area and for us, it's about a platform for rapid agility and innovation. That's really key. We don't know what the future's gonna be. We can guess and you are both two very visionary guys and you have a general idea of what's gonna happen over the next 12, 18 months, but there's things that are just unexpected, especially in the business context. We can understand technology, but business dynamics change very quickly. Helping CTOs and CIOs understand how to build a fabric that can make them more agile and flexible is really key. That's one. So, greater automation, greater efficiencies, rapid innovation, but even more importantly for a lot that's really top of mind is security. Giving them a way to do rapid recovery, being able to start to segment some of their resources, being able to dynamically offer and adjust security and understand threats in real time and combat them in real time is key. The traditional model of security is: I have a dynamic threat so I'm gonna have increased layers of static security to combat it and I'll just add more layers. Doesn't work. We've had customers have massive outages that we've worked with because they've had ransomware attacks and things like that, so they want to be more agile and more dynamic. Their VMware environments, they've been able to get up very quickly, but these lessons are teaching organizations that they have to think differently. So really, that security and agility I see is really top of line for a lot of folks. >> Chris, I've seen lots of traffic at the VMware booth, talked to a lot of customers that are interested. The elephant in the room when I talk to all of them is cost. We've looked at Big Bear Metal, Amazon released that instance. That's a big hunking instance, a lot of memory, a lot of networking. I've talked to a couple customers that said, "I did the analysis on VMware over AWS "versus heck, just buying a rack "and stick it in my environment." You get a significant difference in there. One customer is like "Hey, it was 3x the cost "for me to just buy it and do it myself, "and I didn't feel I was gonna get any "operational efficiencies even doing it "'cause I know VMware and I know how to run it." What do you say to those customers? What are they missing? I'd love any misconceptions that you're hearing out there. >> I'll give ya an example. Let's use the cost analogy. My daughter wants a new radio for Christmas. I can go to Best Buy and buy a really nice stereo, but that's actually 3x the cost of me buying the circuit board kit, say on Amazon, and soldering in the components myself. When you think about that in a practical, real world example, we used to buy motherboards and build PCs and servers back in the day. We don't even think about doing it anymore and even if I could save 25 dollars doing it, I still wouldn't do it because there's more important things I can be doing with my time to differentiate my business. Look, we are-- >> I wanna poke at that. Because you're partners at Delium Sig and I buy one of the VX whatever family from their team. It's pretty easy to ploy, I do that. I understand how to do VMware. It's not gonna take me months to deploy. I know how to a VMware environment and it's that type of configuration. They're saying it's not building versus buying and I understand there's a spectrum there, but just the raw VMware and AWS. They said "I'm gonna get two bills. "I'm gonna get one from VMware and one from Amazon" and the price of it does seem pretty massive compared to what they were doing. So, are they wrong about that? >> I'm really surprised at that. We're not hearing that from our customers We're seeing them have very solid in terms of cost saving, in terms of running on AWS because unlike a traditional Cloud environment, I can oversubscribe physical hosts, I can run more workloads because it is native VMware. You're also getting additional benefits. I'm getting V-SAN storage, I'm getting NSX for networking and security. To say I'm just gonna take vSphere and compare, I would say that that's probably not the closest comparison. There's other aspects that we're providing that operate in a Cloud environment. And, listen, we had this before. Five years ago, people were saying, "Well, Cloud's too expensive so I'm gonna stay on premises." We don't even think that way anymore. There's other benefits that you're getting in the Cloud model that you have to weigh into consideration and we've seen VMware Cloud on AWS is as price competitive as a lot of the native public Cloud services are without all the added benefits of networking and security and management and other things that we throw in. >> Chris, wanna give you the final word. What's exciting you these days? You used to sit on kind of this side of the table, look at the environment. You're deep in some of the emerging pieces. What's getting you excited? I'd love to hear any final insights on partnering between VMware and Amazon, which a lot of us on the outside are like cats and dogs living together. >> Okay, let's hit a couple of them. First, certainly for me, the innovation that's occurring at the edge, I think is extremely exciting. Driving new use cases around augmented reality, more machine learning. How we're looking in terms of moving services to where data's being generated instead of moving the data, which is always problematic. That's a new wave of innovation that I think is really exciting. So that's the certainly the area I'd say that's most exciting for me, is how we can innovate there. It's also around hybrid applications. It's the integration of things like Lambda functions in a traditional file system. I was with a major global financial services organization yesterday and we were not talking about traditional Lambda function use cases. We were talking about integrating Lambda with database and file system events and VM's running on vSphere. So, there's this whole new way to modernize applications that we're just at the cusp of. That pace of innovation's happening faster and faster. I'll say this about Amazon: we are really committed to working together and I think what you're seeing in the industry in general, it's not just VMware with AWS, but it's with our partners in the container spaces. An example is containers as a service and platform as a service, is we're being very pragmatic about focusing on what we're really, really good at. And there's areas where VMware is fantastic at it, in terms of reliability and heterogeneity at the edge and there's natural synergies where we can work together with Amazon web services. In my opinion, they've been a fantastic partner. All of the work that we've done with the Greengrass team and the IOT team, in terms of bringing Greengrass to market on vSphere, has been an enormously positive experience. We share lessons learned, we share engineering, work together. It's extremely collaborative because just like all of our technology partners, there's always areas where we're going to compete a little bit and there can be some overlap, but there's a lot more areas where we get to work together and that's what we're really focused on with VMware and AWS. >> Well, Chris, I know Keith and I always appreciate your perspectives, the VMware community engagement, know you're always open to having some good, real discussions here, so really appreciate you coming sharing all our viewpoints. Congratulations on all the progress here. We're certainly excited to see where it goes. >> I appreciate the opportunity. >> Alright, for Keith Townsend, I'm Stu Miniman. We'll be back with lots more coverage here. 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>>live from San Francisco. It's the Q covering in dramatic. A World 2017 brought to you by Inform Attica. Welcome >>back, everyone. We live here in San Francisco at the Mosconi West with In From Attica. World 2017. This is Cubes Exclusive coverage. I'm John Furry with the Cube and Peter Barris with vicky bond dot com General manager we have on research. Our next guest is Tracy Ring, specialist leader at Deloitte Consulting in the trenches. Put it all together. Welcome to the Cube. Thanks for joining us today. Appreciate it. >>Thank you for having me. I'm excited to be here. >>So your specialist, But in the system global system, integrated world, that means you basically globally look at the solutions. And And what's interesting is why I'm excited. Conversation with you is that, you know, point solutions can come and go. But now we're in this compose herbal world of cloud data, etcetera, where ah, holistic view has to be looked at. So what? I want to get your thoughts on in from Attica and what you guys are doing because we've heard it's the heartbeat. But yet there's also a hygiene issue. So you got this heart surgeon and the hygienist, and you have all kinds of specialty rolls of and data. It's pretty broad, but yet supercritical. How do you look at the holistic big picture? >>Absolutely. I mean, we're seeing the view of ecosystems being so much more important. Were so Maney technology disruptors. I mean, three years ago, we weren't even hearing about Kafka, and Duke was really new, and and so I think demystifying, simplifying, helping customers understand the art of the possible what can be done? What are leading practice organizations doing and then really making it real? How do you so this complex story together, how do you best leverage and get your investment out of technologies like in from Attica in their complimentary tools >>is interesting. IBM has Watson in from Attica. Has Claire ASAP has Leonardo s A P has Einstein. >>It would be >>great to get them all together >>and have dinner, right? So I mean, but this speaks >>well, You got Alexa and Amazon and Google. I mean, this is an interface issues you're talking about. Ah, cognitive. A real time new user interface and machine interface into data that is completely out of the possible. It's what's happening in the world is changing. Developers is changing. Practitioners, architects. Everyone's impacted your reaction to all this. >>You know, I think it's probably the most exciting time that we've seen in so long, and I think you so well articulated all of the players that air there. I think when you add in I, O. T. And Device Management, you know it's really an exciting time. And I think it's really driving some amazing things with regard to how organizations are literally transforming themselves. And in both our clients as well as the ecosystem of technologies, companies air are literally shifting their entire business model. It's it's very exciting. >>So one of the things that the typified system integrator types behavior like to elect a lawyer big consulting firm was big application. Let's deploy the big application for accounting for finance for HR whatever. Also culminating in New York, which was the Grand pa of everything. Right now we're talking about analytics where we have to focus on the outcome's not just a big package for a function, but really a complex, ideally strategic differentiating outcome. Yeah, typically using a whole bunch of smaller tools that have to be bought together similar. What John was talking about as a specialist who looks at these tools take us through kind of a new thought process, outcome, capability to tool in the entire journey to get there. >>Absolutely. I think one of the things that delight does that is really, really unique is having conversations that start with art of the possible, what could be done? What are leading practice organizations doing Help me set a strategy? Yeah, and I think the real answer is there's less about sort of benchmarking what everyone else is doing and more about >>really, You got it, You got >>it. It's really about revolutionizing, you know, and and going into a new angle of what is truly, truly possible. And I think, ah, lot of the things that were sort of table stakes and in the way that we would look at success totally turned on its head. And we're looking at organizations monetizing their data and, you know, creating new business ventures because of the insights that they're deriving and a lot of times will use. Delight has an insight studio and a greenhouse, and a couple of really highly collaborative spaces that we take clients to. Ah, well, you know, plan 123 day workshops, depending on how difficult of problem they're trying to solve and help them charter road map. And take that road map, which is in many cases, business oriented business results driven and help them so in and layer in the technologies that are gonna make that reality possible. What's >>the opportunities for cognitive? I mean, you guys talk a lot of Deloitte about a Friday different things, but specifically there's some key opportunity around. Call the cognitive or you guys call the cognitive. IBM also used that word cognition, but really a I artificial augmented intelligence are signs of a new kind of opportunity landscape. Whether you see for customer opportunities out there, >>absolutely, we talk a lot about what we consider the inside driven advantage. And that's really about using all of the tools in the toolkit to make that insight driven, data driven, better decisions around what organizations conduce. Oh, and kind of. It is a huge component of that, you know, it's we've been hearing stories for years about companies sort of predicting the next best offer and you know, we're seeing this move so much further, removing into robotics process automation. You know, the space is getting, I think, even more complex. But I think what's interesting is when we talk to organizations about, you know, they're not hiring tons of people to go out and do data integration through wonderful organizations. Confirm Attica. That's really been solved. So companies were able to both take their technical resource is and shift them into solving Maur difficult problems, hairier technology opportunities and use that to help shape their business. >>That's like compose abilities. So in dramatic, a world's got a set of solutions and technologies. Some sass ified someone fram. But here it is. But you're deluded you. That's just one element to your mix of things composed for clients. You mention those three years opportunities. Digital transformation is kind of the categorical wave >>Iran, but the end of >>the day it's business transformation. You mentioned changing the business model. >>How do >>customers take advantage of those business opportunities in whether it's robotics or industrial i ot or insights and analytics? What What is the customer impact and how did they get those business benefits? >>Yeah, I mean, I think again like I said, a lot of times it starts with, you know, what is their goal? What do they want to be known for in the marketplace and that value branding of Of what is it that they see themselves differentiating amongst their competitors and using a pretty solid process and rigorous approach to that strategy? Tea set? You know, what are the pillars to achieve? That is, I think, a big piece of it. I think the other component is we see a lot of organizations sort of challenging themselves to do more. And we'll have organizations say I believe that I can doom or what? What could I do? And I think that's interesting that >>we'll just fall upon that because Pete and I were talking earlier before we came on about what gets customers excited when the iPad came out. That was the first kind of visual of >>I gotta have my analytics on the dashboard. Let's start. I >>call the dashboard wave now with bots and aye aye. You're seeing another reaction. >>Yeah, I gotta have that. Automated. Do you see it the same way? And how does that >>translate to the custom when they see these this eye candy and the visualization stuff. How does that impact your world and the impact of the customer? Your customer? >>Absolutely. I mean, we used to live in a world where if I needed to have my data extracted, I would, you know, submit a request. And it was this very long, lengthy process. And, you know, when you think about the robotic single and and process automation, you know, automated data pools are are there. And I think the interesting part is is that it's not about just cost out of i t. It's not about, you know, getting off of on premise hardware. It's about driving better customer satisfaction, driving better business outcomes. You know, the implications. I think whether you're in life sciences or you're in retail, you can touch your customer in a way that is. You know what I would say? Sort of delighting them versus just giving them what they asked for. >>So I wanna I wanna test of theory on you and see how live and see how this seals lines up with thinking and where you see your customers going. So we have this notion that wicked bond, our research of what we call systems of agency. And by that we mean effectively that historically we did we create systems that recorded action big t p e r p. More recently, as you said, we're now creating systems that suggest action predictive analytics, those types of things. And now we're moving in the world were actually going to have systems that take action. Yeah, where authority and data have to move together so that the system is acting as an agent on behalf of the brand now in from Attica has done some really interesting things here with some of their new tooling, some of the metadata tooling to ensure that that type of meeting can move with the data. So if you think about where Deloitte and customers are going, are they starting to move into this new realm where we're building systems, take action on behalf of the brand and what does that mean for the types of tooling? But we're gonna have to find for customers so they can make it, you >>know? I mean, this morning we were delighted to hear the latest announcement around how metadata is really such a core component, and and I think of it is metadata is in many cases where most organizations do see the monetization of their data payoff. Right? We're not only do I have highest golden record like we talked about 10 years ago, I have data lineage. I have data traceability. I have the whole entire story. So it's really much more cost justified. Uh, you know, hearing the announcement today of Claire, and you know how we now have the Aye Aye of our clairvoyance is really exciting. And, you know, I I don't know that we're completely there. And I think we'll continue to innovate as in from Attica. Always does. But we certainly are a whole lot closer. And I would say, you know, your concept is you know, certainly we're all going to the park for >>good. My final question. Let's get your thoughts on because you have a global perspective. You work with the ecosystem partners. You heard all the stories. You've heard all the raps and all the Kool Aid injectors from the different suppliers. But there's two things going on that that's interesting. One is we're kind of going back to the end to end solution. Absolutely. I'm seeing five g with Intel Smart cities I ot So everyone wants to get back to that end to an accountability with data and packets moving. All that could step with applications over the top. But yet there's not one single vendor owning it, so it's kind of a multi vendor world, yet it's gotta be in tow end and bulletproof secure. I mean, >>that's your world. It's not derailed. I mean, you got to be busy, your reaction to that. And what's that? What's that >>mean to the industry? And how should customers? I'd look at that Say okay, Want to get some stability? I want great SL ways, but I want a flexibility for compose ability I want and empower my app developers Dr Top Line Revenue. This is the Holy Grail. We're kind of in the wheelhouse right now. >>Yeah, 100%. I think it's a very exciting time and the like, I said, the fabric of what organizations need to sew together two really achieve their analytic insights and, uh, you know, leveraging their data. I think data is just becoming more and more important, and it's a phenomenal place toe to be in both for where I sit on the consulting side helping all of our customers and certainly where globally we're seeing our client's going >>and your and your message to the client is what we got your back on. This >>has to look, that's what you guys do. You sew it together. It's got to be more than that. It's got ideas for you could see. I think it's a >>lot. I think it's that it's not just about bolting in a technology or 10 technologies. It's about solving the most difficulty technology problems with, you know, with data helping. >>You gotta be savvy to, as they say in the swim lanes of the different firms and got to bring your expertise to the table with some of your own tech. >>Absolutely. And and I think for us we never sort of a ra missed that there is a huge business, and if you if you don't take the business aspect of it, what business problem are we solving? What value are regenerating? How are we ultimately impacting our customers customers, you know? Then you know you're sort of missing the what we consider the most important piece of the pie. >>Tracey Ring with the Lloyd. Great to have you on. Thanks for your insight. Very insightful. That all the data's right there. We're gonna make sense of it here in the Cube. Thanks for sharing, Dee Lloyd. Really put it all together. Composing the future Cloud Data Mobile. It's all here. Social is the que bringing all the live action from San Francisco. I'm John for Peter Burst more after this short break.

>> Narrator: Live from Silicon Valley, it's theCUBE, covering Google Cloud, Next 17. >> Hey, welcome back everyone. We're here live in the Palo Alto Studios, SiliconANGLE Media, is theCUBE's new 4400 square foot studio, here in our studio, this is our sports center. I'm here with Stu Miniman, analyst at Wikibon on the team. I was at the event all day today, drove down to Palo Alto to give us the latest in-person updates, as well as, for the past two days, Stu has been at the Analyst Summit, which is Google's first analyst summit, Google Cloud. And Stu, we're going to break down day one in the books. Certainly, people starting to get onto there. After-meetups, parties, dinners, and festivities. 10,000 people came to the Google Annual Cloud Next Conference. A lot of customer conversations, not a lot of technology announcements, Stu. But we got another day tomorrow. >> John, first of all, congrats on the studio here. I mean, it's really exciting. I remember the first time I met you in Palo Alto, there was the corner in ColoSpace-- >> Cloud Air. >> A couple towards down for fries, at the (mumbles) And look at this space. Gorgeous studio. Excited to be here. Happy to do a couple videos. And I'll be in here all day tomorrow, helping to break down. >> Well, Stu, first allows us to, one, do a lot more coverage. Obviously, Google Next, you saw, was literally a blockbuster, as Diane Greene said. People were around the block, lines to get in, mass hysteria, chaos. They really couldn't scale the event, which is Google's scale, they nailed the scale software, but scaling event, no room for theCUBE. But we're pumping out videos. We did, what? 13 today. We'll do a lot more tomorrow, and get more now. So you're going to be coming in as well. But also, we had on-the-ground, cause we had phone call-ins from Akash Agarwal from SAP. We had an exclusive video with Sam Yen, who was breaking down the SAP strategic announcement with Google Cloud. And of course, we have a post going on siliconangle.com. A lot of videos up on youtube.com/siliconangle. Great commentary. And really the goal was to continue our coverage, at SiliconANGLE, theCUBE, Wikibon, in the Cloud. Obviously, we've been covering the Cloud since it's really been around. I've been covering Google since it was founded. So we have a lot history, a lot of inside baseball, certainly here in Palo Alto, where Larry Page lives in the neighborhood, friends at Google Earth. So the utmost respect for Google. But really, I mean, come on. The story, you can't put lipstick on a pig. Amazon is crushing them. And there's just no debate about that. And people trying to put that out there, wrote a post this morning, to actually try to illustrate that point. You really can't compare Google Cloud to AWS, because it's just two different animals, Stu. And my point was, "Okay, you want to compare them? "Let's compare them." And we're well briefed on the Cloud players, and you guys have the studies coming out of Wikibon. So there it is. And my post pretty much sums up the truth, which is, Google's really serious about the enterprise. Their making steps, there's some holes, there's some potential fatal flaws in how they allow customers to park their data. They have some architectural differences. But Stu, it's really a different animal. I mean, it's apples and oranges in the Cloud. I don't think it's worthy complaining, because certainly Amazon has the lead. But you have Microsoft, you have Google, you have Oracle, IBM, SAP, they're all kind of in the cluster of this, I call "NASCAR Formation", where they're all kind of jocking around, some go ahead. And it really is a race to get the table stake features done. And really, truly be serious contender for the enterprise. So you can be serious about the enterprise, and say, "Hey, I'm serious about the enterprise." But to be serious winner and leader, are two different ball games. >> And a lot to kind of break down here, John. Because first of all, some of the (mumbles) challenges, absolutely, they scaled that event really big. And kudos to them, 10,000 people, a lot of these things came together last minute. They treated the press and analysts really well. We got to sit up front. They had some good sessions. You just tweeted out, Diane Greene, in the analyst session, and in the Q&A after, absolutely nailed it. I mean, she is an icon in the industry. She's brilliant, really impressive. And she's been pulling together a great team of people that understand the enterprise. But who is Google going after, and how do they compete against so of the other guys, is really interesting to parse. Because some people were saying in the keynote, "We heard more about G Suite "than we heard about some of the Cloud features." Some of that is because they're going to do the announcements tomorrow. And you keep hearing all this G Suite stuff, and it makes me think of Microsoft, not Amazon. It makes me think of Office 365. And we've been hearing out of Amazon recently, they're trying to go after some of those business productivity applications. They're trying to go there where Microsoft is embedded. We know everybody wants to go after companies like IBM and Oracle, and their applications. Because Google has some applications, but really, their strength is been on the data. The machine the AI stuff was really interesting. Dr. Fei-Fei Li from Stanford, really good piece in the keynote there, when they hired her not that long ago. The community really perked up, and is really interesting. And everybody seems to think that this could be the secret weapon for Google. I actually asked them like, in some of the one-on-ones, "Is this the entry point? "Are most people coming for this piece, "when it's around these data challenges in the analytics, "and coming to Google." And they're like, "Well, it's part of it. "But no, we have broad play." Everything from devices through G Suite. And last year, when they did the show, it was all the Cloud. And this year, it's kind of the full enterprise suite, that they're pulling in. So there's some of that sorting out the messaging, and how do you pull all of these pieces together? As you know, when you've got a portfolio, it's like, "Oh well, I got to have a customer for G Suite." And then when the customer's up there talking about G Suite for a while, it's like, "Wait, it's--" >> Wait a minute. Is this a software? >> "What's going on?" >> Is this a sash show? Is this a workplace productivity show? Or is this a Cloud show? Again, this is what my issue is. First of all, the insight is very clear. When you start seeing G Suite, that means that they've got something else that they are either hiding or waiting to announce. But the key though, that is the head customers. That was one important thing. I pointed out in my blog post. To me, when I'm looking for it's competitive wins, and I want to parse out the G Suite, because it's easy just to lay that on, Microsoft does it with 365 of Office, Oracle does it with their stuff. And it does kind of make the numbers fuzzy a little bit. But ultimately, where's the beef on infrastructure as a service, and platform as a service? >> And John, good customers out there, Disney, Colgate, SAP as a partner, HSBC, eBay, Home Depot, which was a big announcement with Pivotal, last year, and Verizon were there. So these are companies, we all know them. Dan Greene was joking, "Disney is going to bring their magic onto our magic. "And make that work." So real enterprise use cases. They seem to have some good push-around developers. They just acquired Kaggle, which is working in some of that space. >> Apogee. >> Yeah, Apogee-- >> I think Apogee's an API company, come on. What does that relate to? It has nothing to do with the enterprise. It's an API management solution. Okay, yes. I guess it fits the stack for Cloud-Native, and for developers. I get that. But this show has to nail the enterprise, Stu. >> And John, you remember back four years ago, when we went to the re:Invent show for the first time, and it was like, they're talking to all the developers, and they haven't gotten to the enterprise. And then they over-pivoted to enterprise. And I listen to the customers that were talking and keynote today, and I said, "You know, they're talking digital transformation, "but it's not like GE and Nike getting up on stage, "being like, "'We're going to be a software company, "'and we're hiring lots--'" >> John: Moving our data center over. >> They were pulling all of over stuff, and it's like, "Oh yeah, Google's a good partner. "And we're using them--" >> But to be fair, Stu. Let's be fair, for a second. First of all, let's break down the keynotes. And then we'll get to some of the things about being fair. And I think, one, people should be fair to Diane Greene, because I think that the press and the coverage of it, looking at the media coverage, is weak. And I'll tell you why it's weak. Cause everyone has the same story as, "Oh, Google's finally serious about Cloud. "That's old news. "Diane Greene from day one says "we're serious with the Cloud." That's not the story. The story is, can they be a serious contender? That's number one. On the keynote, one, customer traction, I saw that, the slide up there. Yeah, the G Suite in there, but at least they're talking customers. Number two, the SAP news was strategic for Google. SAP now has Google Cloud platform, I mean, Google Cloud support for HANA, and also the SAP Cloud platform. And three, the Chief Data Science from AIG pointed. To me, those were the three highlights of the keynote. Each one, thematically, represents at least a positive direction for Google, big time, which is, one, customer adoption, the customer focus. Two, partnerships with SAP, and they had Disney up there. And then three, the real game changer, which is, can they change the AI machine learning, TensorFlow has a ton of traction. Intel Xeon chips now are optimized with TensorFlow. This is Google. >> TensorFlow, Kubernetes, it's really interesting. And it's interesting, John, I think if the media listened to Eric Schmidt at the end, he was talking straight to them. He's like, "Look, bullet one. "17 years ago, I told Google that "this is where we need to go. "Bullet two, 30 billion dollars "I'm investing in infrastructure. "And yes, it's real, "cause I had to sign off on all of this money. And we've been all saying for a while, "Is this another beta from Google. "Is it serious? "There's no ad revenue, what is this?" And Diane Greene, in the Q&A afterwards, somebody talked about, "Perpetual beta seems to be Google." And she's like, "Look, I want to differentiate. "We are not the consumer business. "The consumer business might kill something. "They might change something. "We're positioning, "this a Cloud that the enterprise can build on. "We will not deprecate something. "We'll support today. "We'll support the old version. "We will support you going forward." Big push for channel, go-to-market service and support, because they understand that that-- >> Yeah, but that's weak. >> For those of us that used Google for years, understand that-- >> There's no support. >> "Where do I call for Google?" Come on, no. >> Yeah, but they're very weak on that. And we broke that down with Tom Kemp earlier, from Centrify, where Google's play is very weak on the sales and marketing side. Yeah, I get the service piece. But go to Diane Greene for a second, she is an incredible, savvy enterprise executive. She knows Cloud. She moved from server to virtualization. And now she can move virtualization to Cloud. That is her playbook. And I think she's well suited to do that. And I think anyone who rushes to judgment on her keynote, given the fail of the teleprompter, I think is a little bit overstepping their bounds on that. I think it's fair to say that, she knows what she's doing. But she can only go as fast as they can go. And that is, you can't like hope that you're further along. The reality is, it takes time. Security and data are the key points. On your point you just mentioned, that's interesting. Because now the war goes on. Okay, Kubernetes, the microservices, some of the things going on in the applications side, as trends like Serverless come on, Stu, where you're looking at the containerization trend that's now gone to Kubernetes. This is the battleground. This is the ground that we've been at Dockercon, we've been at Linux, CNCF has got huge traction, the Cloud Native Compute Foundation. This is key. Now, that being said. The marketplace never panned out, Stu. And I wanted to get your analysis on this, cause you cover this. Few years ago, the world was like, "Oh, I want to be like Facebook." We've heard, "the Uber of this, and the Airbnb of that." Here's the thing. Name one company that is the Facebook of their company. It's not happening. There is no other Facebook, and there is no other Google. So run like Google, is just a good idea in principle, horizontally scalable, having all the software. But no one is like Google. No one is like Facebook, in the enterprise. So I think that Google's got to downclock their messaging. I won't say dumb down, maybe I'll just say, slow it down a little bit for the enterprise, because they care about different things. They care more about SLA than pricing. They care more about data sovereignty than the most epic architecture for data. What's your analysis? >> John, some really good points there. So there's a lot of technology, where like, "This is really cool." And Google is the biggest of it. Remember that software-defined networking we spent years talking about? Well, the first big company we heard about was Google, and they got up of stage, "We're the largest SDN deployer in the world on that." And it's like, "Great. "So if you're the enterprise, "don't deploy SDN, go to somebody else "that can deliver it for you. "If that's Google, that's great." Dockercon, the first year they had, 2014, Google got up there, talked about how they were using containers, and containers, and they spin up and spin down. Two billion containers in a week. Now, nobody else needs to spin up two billion containers a week, and do that down. But they learned from that. They build Kubernetes-- >> Well, I think that's a good leadership position. But it's leadership position to show that you got the mojo, which again, this is again, what I like about Google's strategy is, they're going to play the technology card. I think that's a good card to play. But there are some just table stakes they got to nail. One is the certifications, the security, the data. But also, the sales motions. Going into the enterprise takes time. And our advice to Diane Greene was, "Don't screw the gold Google culture. "Keep that technology leadership. "And buy somebody, "buy a company that's got a full blown sales force." >> But John, one of the critiques of Google has always been, everything they create, they create like for Google, and it's too Googley. I talked to a couple of friends, that know about AWS for a while, and when they're trying to do Google, they're like, "Boy, this is a lot tougher. "It's not as easy as what we're doing." Google says that they want to do a lot of simplicity. You touched on pricing, it's like, "Oh, we're going to make pricing "so much easier than what Amazon's doing." Amazon Reserved Instances is something that I hear a lot of negative feedback in the community on, and Google's like, "It's much simpler." But when I've talked to some people that have been using it, it's like, "Well, generally it should be cheaper, "and it should be easier. "But it's not as predictable. "And therefore, it's not speaking to what "the CFO needs to have. "I can't be getting a rebate sometime down the road. "Based on some advanced math, "I need to know what I'm going to be getting, "and how I'm going to be using it." >> And that's a good point, Stu. And this comes down to the consumability of the Cloud. I think what Amazon has done well, and this came out of many interviews today, but it was highlighted by Val Bercovici, who pointed out that, Amazon has made their service consumable by the enterprise. I think that's important. Google needs to start thinking about how enterprises want to consume Cloud, and hit those points. The other thing that Val and I teased at, was kind of some new ground, and he coined the term, or used the term, maybe he coined it, I'm not sure, empathy. Enterprise empathy. Google has developer empathy, they understand the developer community. They're rock solid on open source. Obviously, their mojo's phenomenal on technology, AI, et cetera, TensorFlow, all that stuff's great. Empathy for the enterprise, not there. And I think that's something that they're going to have to work on. And again, that's just evolution. You mentioned Amazon, our first event, developer, developer, developer. Me and Pat Gelsinger once called it the developer Cloud. Now they're truly the enterprise Cloud. It took three years for Amazon to do that. So you just can't jump to a trajectory. There's a huge amount of diseconomies of scale, Stu, to try and just be an enterprise player overnight, because, "We're Google." That's just not going to fly. And whether it's sales motions, pricing and support, security, this is hard. >> And sorting out that go-to-market, is going to take years. You see a lot of the big SIs are there. PwC, everywhere at the show. Accenture, big push at the show. We saw that a year or two ago, at the Amazon show. I talked to some friends in the channel, and they're like, "Yeah, Google's still got work to do. "They're not there." Look, Amazon has work to do on the go-to-market, and Google is still a couple-- >> I mean, Amazon's not spring chicken here. They're quietly, slowly, ramming up. But they're not in a good position with their sales force, needs to be where they want to be. Let's talk about technology now. So tomorrow we're expecting to see a bunch of stuff. And one area that I'm super excited about with Google, is if they can have their identity identified, and solidified with the mind of the enterprise, make their product consumable, change or adjust or buy a sales force, that could go out and actually sell to the enterprise, that's going to be key. But you're going to hear some cool trends that I like. And if you look at the TensorFlow, and the relationship, Intel, we're going to see Intel on stage tomorrow, coming out during one of the keynotes. And you're going to start to see the Xeon chip come out. And now you're starting to see now, the silicon piece. And this has been a data center nuisance, Stu. As we talked about with James Hamilton at Amazon, which having a hardware being optimized for software, really is the key. And what Intel's doing with Xeon, and we talked to some other people today about it, is that the Cloud is like an operating system, it's a global computer, if you want look at that. It's a mainframe, the software mainframe, as it's been called. You want a diversity of chipsets, from two cores Atom to 72 cores Xeon. And have them being used in certain cases, whether it's programmable silicon, or whether it's GPUs, having these things in use case scenarios, where the chips can accelerate the software evolution, to me is going to be the key, state of the art innovation. I think if Intel continues to get that right, companies like Google are going to crush it. Now, Amazon, they do their own. So this is going to another interesting dynamic. >> Yeah, it was actually one of the differentiating points Google's saying, is like, "Hey, you can get the Intel Skylake chip, "on Google Cloud, "probably six months before you're going to be able to "just call up your favorite OEM of choice, "and get that in there." And it's an interesting move. Because we've been covering for years, John, Google does a ton of servers. And they don't just do Intel, they've been heavily involved in the openPOWER movement, they're looking at alternatives, they're looking at low power, they're looking at from their device standpoint. They understand how to develop to all these pieces. They actually gave to the influencers, the press, the analysts, just like at Amazon, we all walked home with Echo Dot, everybody's walking home with the Google Homes. >> John: Did you get one? >> I did get one, disclaimer. Yeah, I got one. I'll be playing with it home. I figured I could have Alexa and Google talking to each other. >> Is it an evaluation unit? You have to give it back, or do you get to keep? >> No, I'm pretty sure they just let us keep that. >> John: Tainted. >> But what I'm interested to see, John, is we talk like Serverless, so I saw a ton of companies that were playing with Alexa at re:Invent, and they've been creating tons of skills. Lambda currently has the leadership out there. Google leverages Serverless in a lot of their architecture, it's what drives a lot of their analytics on the inside. Coming into the show, Google Cloud Functions is alpha. So we expect them to move that forward, but we will see with the announcements come tomorrow. But you would think if they're, try to stay that leadership though there, I actually got a statement from one of the guys that work on the Serverless, and Google believes that for functions, that whole Serverless, to really go where it needs to be, it needs to be open. Google isn't open sourcing anything this week, as far as I know. But they want to be able to move forward-- >> And they're doing great at open source. And I think one of the things, that not to rush to judgment on Google, and no one should, by the way. I mean, certainly, we put out our analysis, and we stick by that, because we know the enterprise pretty well, very well actually. So the thing that I like is that there are new use cases coming out. And we had someone who came on theCUBE here, Tarun Thakur, who's with Datos, datos.io. They're reimagining data backup and recovery in the Cloud. And when you factor in IoT, this is a paradigm shift. So I think we're going to see use cases, and this is a Google opportunity, where they can actually move the goal post a bit on the market, by enabling these no-use cases, whether it's something as, what might seem pedestrian, like backup and recovery, reimagining that is huge. That's going to take impact as the data domains of the world, and what not, that (mumbles). These new uses cases are going to evolve. And so I'm excited by that. But the key thing that came out of this, Stu, and this is where I want to get your reaction on is, Multicloud. Clearly the messaging in the industry, over the course of events that we've been covering, and highlighted today on Google Next is, Multicloud is the world we are living in. Now, you can argue that we're all in Amazon's world, but as we start developing, you're starting to see the emergence of Cloud services providers. Cloud services providers are going to have some tiering, certainly the big ones, and then you're going to have secondary partner like service providers. And Google putting G Suite in the mix, and Office 365 from Microsoft, and Oracle put in their apps in their Clouds stuff, highlights that the SaaS market is going to be very relevant. If that's the case, then why aren't we putting Salesforce in there, Adobe? They all got Clouds too. So if you believe that there's going to be specialism around Clouds, that opens up the notion that there'll be a series of Multicloud architectures. So, Stu-- >> Stu: Yeah so, I mean, John, first of all-- >> BS? Real? I mean what's going on? >> Cloud is this big broad term. From Wikibon's research standpoint, SaaS, today, is two-thirds of the public Cloud market. We spend a lot of time talking-- >> In revenue? >> In revenue. Revenue standpoint. So, absolutely, Salesforce, Oracle, Infor, Microsoft, all up there, big dollars. If we look at the much smaller part of the world, that infrastructures a service, that's where we're spending a lot of time-- >> And platforms a service, which Gartner kind of bundles in, that's how Gartner looks at it. >> It's interesting. This year, we're saying PaaS as a category goes away. It's either SaaS plus, I'm sorry, it's SaaS minus, or infrastructure plus. So look at what Salesforce did with Heroku. Look at what company service now are doing. Yes, there are solutions-- >> Why is PaaS going away? What's the thesis? What's the premise of that for Wikibon research? >> If we look at what PaaS, the idea was it tied to languages, things like portability. There are other tools and solutions that are going to be able to help there. Look at, Docker came out of a PaaS company, DockCloud. There's a really good article from one of the Docker guys talking about the history of this, and you and I are going to be at Dockercon. John, from what I hear, we're going to spending a lot of time talking about Kubernetes, at Dockercon. OpenStack Summit is going to be talking a lot about-- >> By the way, Kubernetes originated at Google. Another cool thing from Google. >> All right, so the PaaS as a market, even if you talk to the Cloud Foundry people, the OpenShift people. The term we got, had a year ago was PaaS is Passe, the nice piffy line. So it really feeds into, because, just some of these categorizations are what we, as industry watchers have a put in there, when you talk to Google, it's like, "Well, why are they talking about G Suite, "and Google Cloud, and even some of their pieces?" They're like, "Well, this is our bundle "that we put together." When you talk to Microsoft, and talk about Cloud, it's like, "Oh, well." They're including Skype in that. They're including Office 365. I'm like, "Well, that's our productivity. "That's a part of our overall solutions." Amazon, even when you talk to Amazon, it's not like that there are two separate companies. There's not AWS and Amazon, it's one company-- >> Are we living in a world of alternative facts, Stu? I mean, Larry Ellison coined the term "Fake Cloud", talking about Salesforce. I'm not going to say Google's a fake Cloud, cause certainly it's not. But when you start blending in these numbers, it's kind of shifting the narrative to having alternative facts, certainly skewing the revenue numbers. To your point, if PaaS goes away because the SaaS minuses that lower down the stack. Cause if you have microservices and orchestration, it kind of thins that out. So one, is that the case? And then I saw your tweet with Sam Ramji, he formally ran Cloud Foundry, he's now at Google, knows his stuff, ex-Microsoft guy, very strong dude. What's he take? What's his take on this? Did you get a chance to chat with Sam at all? >> Yeah, I mean, it was interesting, because Sam, right, coming from Cloud Foundry said, what Cloud Foundry was one of the things they were trying to do, was to really standardize across the clouds. And of course, little bias that he works at Google now. But he's like, "We couldn't do that with Google, "cause Google had really cool features. And of course, when you put an abstraction layer on, can I actually do all the stuff? And he's like, "We couldn't do that." Sure, if you talked to Amazon, they'll be like, "Come on. "Thousand features we announced last year, "look at all the things we have. "It's not like you can just take all of our pieces, "and use it there." Yes, at the VM, or container, or application microservices layer, we can sit on a lot of different Clouds, public or private. But as we said today, the Cloud is not a utility. John, you've been in this discussion for years. So we've talked about, "Oh, I'm just going "to have a Cloud broker, "and go out in a service." It's like, this is not, I'm not buying from Domino's and Pizza Hut, and it's pepperoni pizza's a pepperoni pizza. >> Well, Multicloud, and moving workloads across Clouds, is a different challenge. Certainly, I might have to some stuff here, maybe put some data and edge my bets on leveraging other services. But this brings up the total cost of ownership problem. If you look at the trajectory, say OpenStack, just as a random example. OpenStack, at one point, had a great promise. Now it's kind of niched down into infrastructural service. I know you're going to be covering that summit in Boston. And it's going to be interesting to see how that is. But the word in the community is, that OpenStack is struggling because of the employment challenges involved with it. So to me, Google has an opportunity to avoid that OpenStack kind of concept. Because, talking about Sam Ramji, open source is the wildcard in all of this. So if you look at a open source, and you believe that that PaaS layer's thinning down, to infrastructure and SaaS, then you got to look at the open source community, and that's going to be a key area, that we're certainly watching, and we've identified, and we've mentioned it before. But here's my point. If you look at the total cost of ownership. If I'm a customer, Stu, I'm like, "Okay, if I'm just going to move to the Cloud, "I need to rely and lean on my partner, "my vendor, my supplier, "Amazon, or Google, or Microsoft, whoever, "to provide really excellent manageability. "Really excellent security. "Because if I don't, I have to build it myself." So it's becoming the shark fin, the tip of the iceberg, that you don't see the hidden cost, because I would much rather have more confidence in manageability that I can control. But I don't want to have to spend resources building manageability software, if the stuff doesn't work. So there's the issue about Multicloud that I'm watching. Your thoughts? Or is that too nuance? >> No, no. First of all, one of the things is that if I look at what I was doing on premises, before versus public Cloud, yes, there are some hidden costs, but in general I think we understand them a little bit better in public Cloud. And public Cloud gives us a chance to do a do-over for this like security, which most of us understand that security is good in public Cloud. Now, security overall, lots of work to do, challenges, not security isn't the same across all of them. We've talked to plenty of companies that are helping to give security across Clouds. But this Multicloud discussion is still something that is sorting out. Portability is not simple, but it's where we're going. Today, most companies, if I'm not really small, have some on-prem pieces. And they're leveraging at least one Cloud. They're usually using many SaaS providers. And there's this whole giant ecosystem, John, around the Cloud management platforms. Because managing across lots of environment, is definitely a challenge. There's so many companies that are trying to solve them. And there's just dozens and dozens of these companies, attacking everything from licensing, to the data management, to everything else. So there's a lot of challenges there, especially the larger you get as a company, the more things you need to worry about. >> So Stu, just to wrap up our segment. Great day. Wanted to just get some color on the day. And highlighting some parody from the web is always great. Just got a tweet from fake Andy Jassy, which we know really isn't Andy Jassy. But Cloud Opinion was very active to the hashtag, that Twitter handle Cloud Opinion. But he had a medium post, and he said, "Eric Schmidt was boring. "Diane Greene was horrible. "Unfortunately, day one keynote were missed opportunity, "that left several gaps, "failed to portray Google's vision for Google Cloud. "They could've done the following, A, "explain the vision for the Cloud, "where do they see Google Cloud going. "Identify customer use cases that show samples "and customer adoption." They kind of did that. So discount that. My favorite line is this one, "Differentiate from other Cloud providers. "'We're Google damn it,' isn't working so well. "Neither is indirect shots as S3 downtime, "didn't work either as well as either. "Where is the customer's journey going? "And what's the most compelling thing for customers?" This phrase, "We're Google damn it," has kind of speaks to the arrogance of Google. And we've seen this before, and always say, Google doesn't have a bad arrogance. I like the Google mojo. I think the technology, they run hard. But they can sometimes, like, "Customer support, self-service." You can't really get someone on the phone. It's hard to replies from Google. >> "Check out YouTube video. "We own that too, don't you know that?" >> So this is a perception of Google. This could fly in the face, and that arrogance might blow up in the enterprise, cause the enterprises aren't that sophisticated to kind of recognize the mojo from Google. And they, "Hey, I want support. "I want SLAs. "I want security. "I want data flexibility." What's your thoughts? >> So Cloud Opinion wrote, I thought a really thoughtful piece leading up to it, that I didn't think was satire. Some of what he's putting in there, is definitely satire-- >> John: Some of it's kind of true though. >> From the keynote. So I did not get a sense in the meetings I've been in, or watching the keynote, that they were arrogant. They're growing. They're learning. They're working with the community. They're reaching out. They're doing all the things we think they need to do. They're listening really well. So, yes, I think the keynote was a missed opportunity overall. >> John: But we've got to give, point out that was a teleprompter fail. >> That was a piece of it. But even, we felt with a little bit of polish, some of the interactions would've been a little bit smoother. I thought Eric Schmidt's piece was really good at end. As I said before, the AI discussion was enlightening, and really solid. So I don't give it a glowing rating, but I'm not ready to trash it. And tomorrow is when they're going to have the announcements. And overall, there's good buzz going at the show. There's lots going on. >> Give 'em a letter. Letter grade. >> For the keynote? Or the show in general? >> So far, your experience as an analyst, cause you had the, again, to give them credit, I agree with you. First analyst conference. They are listening. And the slideshow, you see what they're doing. They're being humble. They didn't take any real direct shots at its competitors. They were really humble. >> And that is something that I think they could've helped to focus one something that differentiated a little bit. Something we had to pry out of them in some of the one-on-ones, is like, "Come on, what are you doing?" And they're like, "We're winning 50, 60% of our competitive deals." And I'm like, "Explain to us why. "Because we're not hearing it. "You're not articulating it as well." It's not like we expect them, it's like, "Oh wait, they told us we're arrogant. "Maybe we should be super humble now." It's kind of-- >> I don't think they're thinking that way. I think my impression of Google, knowing the companies history, and the people involved there, and Diane Greene in particular, as you know from the Vmware days. She's kind of humble, but she's not. She's tough. And she's good. And she's smart. >> And she's bringing in really good people. And by the way, John, I want to give them kudos, really supported International Women's Day, I love the, Fei-Fei got up, and she talked about her, one of her compatriots, another badass woman up there, that got like one of the big moments of the keynote there. >> John: Did they have a woman in tech panel? >> Not at this event. Because Diane was there, Fei-Fei was there. They had some women just participating in it. I know they had some other events going on throughout the show. >> I agree, and I think it's awesome. I think one of the things that I like about Google, and again, I'll reiterate, is that apples and oranges relative to the other Cloud guys. But remember, just because Amazon's lead is so far ahead, that you still have this jocking of position between the other players. And they're all taking the same pattern. Again, this is the same thing we talked about at our other analysis, is that, certainly at re:Invent, we talked about the same thing. Microsoft, Oracle, IBM, and now Google, are differentiating with their apps. And I think that's smart. I don't think that's a bad move at all. It does telegraph a little bit, that maybe they got, they could add more to show, we'll see tomorrow. But I don't think that's a bad thing. Again, it does make the numbers a little messy, in terms of what's what. But I think it's totally cool for a company to differentiate on their offering. >> Yeah, definitely. And John, as you said, Google is playing their game. They're not trying to play Amazon's game. They're not, Oracle's thing was what? You kind of get a little bit of the lead, and kind of just make sure how you attack and stay ahead of what they're doing, going to the boating analogy there. But Google knows where they're going, moving themselves forward. That they've made some really good progress. The amount of people, the amount of news they have. Are they moving fast enough to really try to close a little bit on the Amazon's world, is something I want to come out of the show with. Where are customers going? >> And it's a turbulent time too. As Peter Burris, our own Peter Buriss at Wikibon, would say, is a turbulent time. And it's going to really put everyone on notice. There's a lot to cover, if you're an analyst. I mean, you have compute, network storage, services. I mean, there's a slew of stuff that's being rolled out, either in table stakes for existing enterprises, plus new stuff. I mean, I didn't hear a lot of IoT today. Did you hear much IoT? Is there IoT coming to you at the briefing? >> Come on. I'm sure there's some service coming out from Google, that'll help us be able to process all this stuff much faster. They'll just replace this with-- >> So you're in the analyst meeting. I know you're under NDA, but is there IoT coming tomorrow? >> IoT was a term that I heard this week, yes. >> So all right, that's a good confirmation. Stu cannot confirm or deny that IoT will be there tomorrow. Okay, well, that's going to end day one of coverage, here in our studio. As you know, we got a new studio. We have folks on the ground. You're going to start to see a new CUBE formula, where we have in-studio coverage, and out in the field, like our normal CUBE, our "game day", as we say. Getting all the signal, extracting it from that noise out there, for you. Again, in-studio allows us to get more content. We bring our friends in. We want to get the content. We're going to get the summaries, and share that with you. I'm John Furrier, Stu Miniman, day one coverage. We'll see you tomorrow for another full day of special coverage, sponsored by Intel, two days of coverage. I want to thank Intel for supporting our editorial mission. We love the enterprise, we love Cloud, we love big data, love Smart Cities, autonomous vehicles, and the changing landscape in tech. We'll be back tomorrow, thanks for watching.

>> Hey, welcome back everybody. Jeff Frick here with theCUBE. We're in downtown San Francisco at Twitter's world headquarters at the Data Privacy Day, a full day event of sessions and breakout sessions really talking about privacy. Although privacy is dead in 1999 get over it, not really true and certainly a lot of people here beg to differ. We're excited to have our next guest Jules Polonetsky, excuse me, CEO of Future of Privacy Forum. Welcome. >> Thank you, great to be here. Exciting times for data, exciting times for privacy. >> Yeah, no shortage of opportunity, that's for sure. The job security and the privacy space is pretty high I'm gathering after a few of these interviews. >> There's a researcher coming up with some new way we can use data that is both exciting, curing diseases, studying genes, but also sometimes orwellian. Microphones are in my home, self-driving cars, and so, getting that right is hard. We don't have clear consensus over whether we want the government keeping us safe by being able to catch every criminal, or not getting into our stuff because we don't trust them >> Right. [Jules] - So challenging times. [Jeff] - So, before we jump into it, Future Privacy Forum, kind of a little bit about the organization, kind of your mission... [Jules] - We're eight years old at the Future Privacy Forum, we're a think tank in Washington, D.C. Many of our members are the chief privacy officers of companies around the world, so about 130 companies, ranging from many of the big tech companies. And as new sectors start becoming tech and data, they join us. So, the auto industries dealing with self-driving cars, connected cars, all those issues. Wearables, student data, so about 130 of those companies. But then the other half of our group are advocates and academics who are a little bit skeptical or worried. They want to engage, but they are worried about an Orwellian future. So we bring those folks together and we say, 'Listen, how can we have data that will make cars safer? How can we have wearables that'll help improve fitness? But also have reasonable, responsible rules in place so that, we don't end up with discrimination, or data breaches, and all the problems that can come along?' [Jeff] - Right, cause it's really two sides of the same coin and it's always two sides of the same coin. And typically on new technology, we kind of race ahead on the positive, cause everybody's really excited. And lag on kind of what the negative impacts are and/or the creation of rules and regulations about because this new technology, very hard to keep up. [Jules] - You know the stakes are high. Think about AdTech, right? We've got tons of adtech. It's fueling free content, but we've got problems of adware, and spyware, and fake news, and people being nervous about cookies and tracking. And every year, it seems to get more stressful and more complicated. We can't have that when it comes to microphones in my home. I don't want to be nervous that if I go into the bedroom, suddenly that's shared across the adtech ecosystem. Right? I don't know that we want how much we sweat or when it's somebody's time of the month, or other data like that being out there and available to data brokers. But, we did a study recently of some of the wearables, the more sensitive ones. Sleep trackers, apps that people use to track their periods, many of them, didn't even have a privacy policy, to say 'I don't do this, or I don't do that with your data.' So, stakes are high. This isn't just about, you know, are ads tracking me? And do I find that intrusive? This is about if I'm driving my car, and it's helping me navigate better and it's giving me directions, and it's making sure I don't shift out of my lane, or it's self-parking, that that data doesn't automatically go to all sorts of places where it might be used to deny me benefits, or discriminate, or raise my insurance rates. [Jeff]: Right, right. Well, there's so many angles on this. One is, you know, since I got an Alexa Dot for Christmas, for the family, to try it out and you know, it's interesting to think that she's listening all the time. [Jules] - So she's not >> And you push the little >> Let's talk about this >> button, you know. >> Or is she not? >> This is a great topic to [Jules] -talk about because a sheriff recently, wanted to investigate a crime and realized that they had an Amazon Echo in the home. And said, 'Well maybe, Amazon will have data about what happened >> Right >> Maybe they'll be clues, people shouting,' you know. And Amazon's fighting because they don't want to hand it over. But what Amazon did, and what Google Home did, and the X-Box did, they don't want to have that data. And so they've designed these things, I think, with actually a lot of care. So... the Echo, is listening for it's name. It's listening for Alexa... >> Right. And it keeps deleting. It listens, right it hears background noise, and if it didn't hear Alexa, drops it, drops it, drops it. Nothing is said out of your home. When you say 'Alexa, what's the weather?' Blue light glows, opens up the connection to Amazon, and now it's just like you're typing in a search or going directly >> Right, right. [Jules] - And so that's done quiet carefully. Google Home works like that, Siri works like that, so I think the big tech companies, despite a lot of pain and suffering over the years of being criticized, and with the realization that government goes to them for data. They don't want that. They don't want to be fighting the government and people being nervous that the IRS is going to try find out information about what you're doing, which bedroom you're in, and what time you came home. >> Although the Fit Bit has all that information. >> Exactly >> Even though Alexa doesn't. [Jules] - So the wearables are another exciting, interesting challenge. We had a project that was funded by both Robert Johnson Foundation, which wants Wearables to be used for health and so forth. But also from a lot of major tech companies. Because everybody was aware that we needed some sort of rules in place. So if Fit Bit, or Jaw Bone, or one of the other Wearables can detect that maybe I'm coming down with Parkinson's or I'm about to fall, or other data, what's their responsibility to do something with that? On one hand, that would be a bit frightening. Right, you got a phone call or an email saying 'Hey, this is your friendly friends at your Wearable and we think >> showing up at your front door >> You should seek medical, you know, help. You would be like, whoa, wait a second, right? On the other hand, what do you do with the fact that maybe we can help you? Take student data, alright. Adtech is very exciting, there's such opportunities for personalized learning, colleges are getting in on the act. They're trying to do big data analytics to understand how to make sure you graduate. Well, what happens when a guidance counselor sits down and says, 'Look, based on the data we have, your grades, your family situation, whether you've been to the gym, your cafeteria usage, data we took off your social media profile, you're really never going to make it in physics. I mean, the data says, people with your particular attributes... Never, never... Rarely succeed in four years at graduating with a degree. You need to change your scholarship. You need to change your career path. Or, you can do what you want, but we're not going give you that scholarship. Or simply, we advise you.' Now, what did we just tell Einstein? Maybe not to take Physics, right. But on the other hand, don't I have some responsibility, if I'm a guidance counselor, who would be looking at your records today, and sort of shuffling some papers and saying, 'Well, maybe you want to consider something else?' So, either we talk about this as privacy, but increasingly, many of my members, again who are chief privacy officers if these companies, are facing what are really ethical issues. And there may be risks, there may be benefits, and they need to help decide, or help their companies decide, when does the benefit outweigh the risk? Consider self-driving cars, right? When does the self-driving car say 'I'm going to put this car in the ditch Because I don't want to run somebody over?' But now it knows that your kids are in the backseat, what sort of calculations do we want this machine making? Do we know the answers ourselves? If the microphone in my home hears child abuse, if 'Hello Barbie' hears a child screaming, or, 'Hey, I swallowed poison,' or 'My dad touched me inappropriately,' what should it do? Do we want dolls ratting out parents? And the police showing up saying, 'Barbie says your child's being abused.' I mean, my gosh, I can see times when my kids thought I was a big Grinch and if the doll was reporting 'Hey dad is being mean to me,' you know, who knows. So, these are challenges that we're going to have to figure out, collectively, with, stakeholders, advocates, civil libertarians, and companies. And if we can chart a path forward that let's us use these new technologies in ways that advances society, I think we'll succeed. If we don't think about it, we'll wake up and we'll learn that we've really constrained ourselves and narrowed our lives in ways that we may not be very happy with. [Jeff] - Fascinating topic. And like on the child abuse thing, you know there are very strict rules for people that are involved in occupations that are dealing with children. Whether it's a doctor, or whether it's a teacher, or even a school administrator, that if they have some evidence of say child abuse, they're obligated >> they're obligated. [Jeff] - Not only are they obligated morally, but they're obligated professionally, and legally, right, to report that in. I mean, do you see those laws will just get translated onto the machine? Clearly, God, you could even argue that the machine probably has got better data and evidence, based on time, and frequency, than the teacher has happening to see, maybe a bruise or a kid acting a little bit different on the school yard. [Jules] - You can see a number of areas where law is going to have to rethink how it fits. Today, I get into an accident, we want to know who's fault is it. What happens when my self-driving car gets into an accident? Right? I didn't do it, the car did it. So, do the manufacturers take responsibility? If I have automated systems in my home, robots and so forth, again, am I responsible for what goes wrong? Or, do these things have, or their companies have some sort of responsibility? So, thinking these things through, is where I think we are first. I don't think we're ready for legal changes. I think what we're ready for is an attitude change. And I think that's happened. When I was the chief privacy officer, at AOL, many years ago, we were so proud of our cooperation with the government. If somebody was kidnapped, we were going to help. If somebody was involved in a terrorism thing, we were going to help. And companies, I think, still recognize their responsibility to cooperate with, you know, criminal activity. But they also recognize that it is their responsibility to push back when government says, 'Give me data about that person.' 'Well, do you have a warrant? Do you have a basis? Can we tell them so they can object? Right? Is it encrypted? Well, sorry, we can't risk all of our users by cracking encryption for you because you're following up on one particular crime.' So, there's been a big sea change in understanding that if you're a company, and there's data you don't want to have to hand over, data about immigrants today, lots of companies, in the Valley, and around the country, are thinking, 'Wait a second, could I be forced to hand over some data that could lead to someone being deported? Or tortured? Or who knows what?' Given that these things seem to be back on the table. And, you know again, years ago, you were a good asterisk, you participated in law enforcement and now people participate, but they also recognize that they have a strong obligation to either not have the data, like Amazon, will not have data that this sheriff wants. Now, their Smart Meter and how much water they're using, and all kinds of other information, frankly about their activity at home, since many other things about our homes is now smarter, may indeed be available. How much water did you use at this particular time? Maybe you were washing blood stains away. That sort of information is >> Wild [Jules] - going to be out there. So, the machines will be providing clues that in some cases are going to incriminate us. And companies that don't want to be in the middle, need to think about designing, for privacy, so as to avoid, creating a world where, you know, whole data is available to be used against us. [Jeff] - Right and then there's the whole factor of the devices are in place, not necessarily the company is using it or not, but, you know, bad actors taking advantage of cameras, microphones, all over and hacking into these devices to do things. And, it's one thing take a look at me while I'm on my PC, it's another thing to take control of my car. Right? And this is where, you know, there's some really interesting challenges ahead. As IT continues to grow. Everything becomes connected. The security people always like to say, you know, the certainty attack area, it grows exponentially. [Jules] - Yeah. Well cars are going to be an exciting opportunity. We have released, today, a guide that the National Auto Dealers Association is providing to auto dealers around the country. Because, when you buy a car today, and you sell it or you lend it, there's information about you in that vehicle. Your location history, maybe your contacts, your music history, and we never would give our phone away without clearing it, or you wouldn't give your computer away, but you don't think about your car as a computer, and so, this has all kinds of advice to people. Listen, your car is a computer. There's things you want to do, to take advantage of, >> Right. [Jules]- New services, safety. But there are things you want to also do to manage your privacy, delete. Make sure you're not sharing your information in a way you don't want it. [Jeff] - Jules, we could go on all day, but I think I've got to let you go to get back to the sessions. So, thanks for taking a few minutes out of your busy day. [Jules] - Really good to be with you. [Jeff] - Absolutely. Jeff Frack, you're watching The Cube. See you next time. (closing music)