(upbeat music) >> Welcome back everyone to The Cubes coverage here in Seattle, Washington. For AWS's Marketplace Seller Conference. It's the big news within the Amazon partner network, combining with marketplace, forming the Amazon partner organization. Part of a big reorg as they grow to the next level, NextGen cloud, mid-game on the chessboard. Cube's got it covered. I'm John Furry, your host at Cube. Great guests here from Data bricks. Both cube alumni's. Jack Anderson, GM and VP of the Databricks partnership team for AWS. You handle that relationship and Joel Minick vice president of product and partner marketing. You guys have the keys to the kingdom with Databricks and AWS. Thanks for joining. Good to see you again. >> Thanks for having us back. >> Yeah, John, great to be here. >> So I feel like we're at Reinvent 2013. Small event, no stage, but there's a real shift happening with procurement. Obviously it's a no brainer on the micro, you know, people should be buying online. Self-service, Cloud Scale. But Amazon's got billions being sold through their marketplace. They've reorganized their partner network. You can see kind of what's going on. They've kind of figured it out. Like let's put everything together and simplify and make it less of a website, marketplace. Merge our partner organizations, have more synergy and frictionless experiences so everyone can make more money and customer's are going to be happier. >> Yeah, that's right. >> I mean, you're running relationship. You're in the middle of it. >> Well, Amazon's mental model here is that they want the world's best ISVs to operate on AWS so that we can collaborate and co architect on behalf of customers. And that's exactly what the APO and marketplace allow us to do, is to work with Amazon on these really, you know, unique use cases. >> You know, I interviewed Ali many times over the years. I remember many years ago, maybe six, seven years ago, we were talking. He's like, "we're all in on AWS." Obviously now the success of Databricks, you've got multiple clouds, see that. Customers have choice. But I remember the strategy early on. It was like, we're going to be deep. So this is, speaks volumes to the relationship you have. Years. Jack, take us through the relationship that Databricks has with AWS from a partner perspective. Joel, and from a product perspective. Because it's not like you guys are Johnny come lately, new to the scene. >> Right. >> You've been there, almost president creation of this wave. What's the relationship and how does it relate to what's going on today? >> So most people may not know that Databricks was born on AWS. We actually did our first $100 million of revenue on Amazon. And today we're obviously available on multiple clouds. But we're very fond of our Amazon relationship. And when you look at what the APN allows us to do, you know, we're able to expand our reach and co-sell with Amazon, and marketplace broadens our reach. And so, we think of marketplace in three different aspects. We've got the marketplace private offer business, which we've been doing for a number of years. Matter of fact, we were driving well over a hundred percent year over year growth in private offers. And we have a nine figure business. So it's a very significant business. And when a customer uses a private offer, that private offer counts against their private pricing agreement with AWS. So they get pricing power against their private pricing. So it's really important it goes on their Amazon bill. In may we launched our pay as you go, on demand offering. And in five short months, we have well over a thousand subscribers. And what this does, is it really reduces the barriers to entry. It's low friction. So anybody in an enterprise or startup or public sector company can start to use Databricks on AWS, in a consumption based model, and have it go against their monthly bill. And so we see customers, you know, doing rapid experimentation, pilots, POCs. They're really learning the value of that first, use case. And then we see rapid use case expansion. And the third aspect is the consulting partner, private offer, CPPO. Super important in how we involve our partner ecosystem of our consulting partners and our resellers that are able to work with Databricks on behalf of customers. >> So you got the big contracts with the private offer. You got the product market fit, kind of people iterating with data, coming in with the buyers you get. And obviously the integration piece all fitting in there. >> Exactly. >> Okay, so those are the offers, that's current, what's in marketplace today. Is that the products... What are people buying? >> Yeah. >> I mean, I guess what's the... Joel, what are people buying in the marketplace? And what does it mean for them? >> So fundamentally what they're buying is the ability to take silos out of their organization. And that is the problem that Databricks is out there to solve. Which is, when you look across your data landscape today, you've got unstructured data, you've got structured data, you've got real time streaming data. And your teams are trying to use all of this data to solve really complicated problems. And as Databricks, as the Lakehouse Company, what we're helping customers do is, how do they get into the new world? How do they move to a place where they can use all of that data across all of their teams? And so we allow them to begin to find, through the marketplace, those rapid adoption use cases where they can get rid of these data warehousing, data lake silos they've had in the past. Get their unstructured and structured data onto one data platform, an open data platform, that is no longer adherent to any proprietary formats and standards and something they can, very much, very easily, integrate into the rest of their data environment. Apply one common data governance layer on top of that. So that from the time they ingest that data, to the time they use that data, to the time they share that data, inside and outside of their organization, they know exactly how it's flowing. They know where it came from. They know who's using it. They know who has access to it. They know how it's changing. And then with that common data platform, with that common governance solution, they'd being able to bring all of those use cases together. Across their real time streaming, their data engineering, their BI, their AI. All of their teams working on one set of data. And that lets them move really, really fast. And it also lets them solve challenges they just couldn't solve before. A good example of this, you know, one of the world's now largest data streaming platforms runs on Databricks with AWS. And if you think about what does it take to set that up? Well, they've got all this customer data that was historically inside of data warehouses. That they have to understand who their customers are. They have all this unstructured data, they've built their data science model, so they can do the right kinds of recommendation engines and forecasting around. And then they've got all this streaming data going back and forth between click stream data, from what the customers are doing with their platform and the recommendations they want to push back out. And if those teams were all working in individual silos, building these kinds of platforms would be extraordinarily slow and complex. But by building it on Databricks, they were able to release it in record time and have grown at a record pace to now be the number one platform. >> And this product, it's impacting product development. >> Absolutely. >> I mean, this is like the difference between lagging months of product development, to like days. >> Yes. >> Pretty much what you're getting at. >> Yes. >> So total agility. >> Mm-hmm. >> I got that. Okay, now, I'm a customer I want to buy in the marketplace, but you got direct Salesforce up there. So how do you guys look at this? Is there channel conflict? Are there comp programs? Because one of the things I heard today in on the stage from AWS's leadership, Chris, was up there speaking, and Mona was, "Hey, he's a CRO conference chief revenue officer" conversation. Which means someone's getting compensated. So, if I'm the sales rep at Databricks, what's my motion to the customer? Do I get paid? Does Amazon sell it? Take us through that. Is there channel conflict? Or, how do you handle it? >> Well, I'd add what Joel just talked about with, you know, with the solution, the value of the solution our entire offering is available on AWS marketplace. So it's not a subset, it's the entire Data Bricks offering. And- >> The flagship, all the, the top stuff. >> Everything, the flagship, the complete offering. So it's not segmented. It's not a sub segment. >> Okay. >> It's, you know, you can use all of our different offerings. Now when it comes to seller compensation, we view this two different ways, right? One is that AWS is also incented, right? Versus selling a native service to recommend Databricks for the right situation. Same thing with Databricks, our sales force wants to do the right thing for the customer. If the customer wants to use marketplace as their procurement vehicle. And that really helps customers because if you get Databricks and five other ISVs together, and let's say each ISV is spending, you're spending a million dollars. You have $5 million of spend. You put that spend through the flywheel with AWS marketplace, and then you can use that in your negotiations with AWS to get better pricing overall. So that's how we view it. >> So customers are driving. This sounds like. >> Correct. For sure. >> So they're looking at this as saying, Hey, I'm going to just get purchasing power with all my relationships. Because it's a solution architectural market, right? >> Yeah. It makes sense. Because if most customers will have a primary and secondary cloud provider. If they can consolidate, you know, multiple ISV spend through that same primary provider, you get pricing power. >> Okay, Joel, we're going to date ourselves. At least I will. So back in the old days, (group laughter) It used to be, do a Barney deal with someone, Hey, let's go to market together. You got to get paper, you do a biz dev deal. And then you got to say, okay, now let's coordinate our sales teams, a lot of moving parts. So what you're getting at here is that the alternative for Databricks, or any company is, to go find those partners and do deals, versus now Amazon is the center point for the customer. So you can still do those joint deals, but this seems to be flipping the script a little bit. >> Well, it is, but we still have vars and consulting partners that are doing implementation work. Very valuable work, advisory work, that can actually work with marketplace through the CPPO offering. So the marketplace allows multiple ways to procure your solution. >> So it doesn't change your business structure. It just makes it more efficient. >> That's correct. >> That's a great way to say it. >> Yeah, that's great. >> Okay. So, that's it. So that's just makes it more efficient. So you guys are actually incented to point customers to the marketplace. >> Yes. >> Absolutely. >> Economically. >> Economically, it's the right thing to do for the customer. It's the right thing to do for our relationship with Amazon. Especially when it comes back to co-selling, right? Because Amazon now is leaning in with ISVs and making recommendations for, you know, an ISV solution. And our teams are working backwards from those use cases, you know, to collaborate and land them. >> Yeah. I want to get that out there. Go ahead, Joel. >> So one of the other things I might add to that too, you know, and why this is advantageous for companies like Databricks to work through the marketplace. Is it makes it so much easier for customers to deploy a solution. It's very, literally, one click through the marketplace to get Databricks stood up inside of your environment. And so if you're looking at how do I help customers most rapidly adopt these solutions in the AWS cloud, the marketplace is a fantastic accelerator to that. >> You know, it's interesting. I want to bring this up and get your reaction to it because to me, I think this is the future of procurement. So from a procurement standpoint, I mean, again, dating myself, EDI back in the old days, you know, all that craziness. Now this is all the internet, basically through the console. I get the infrastructure side, you know, spin up and provision some servers, all been good. You guys have played well there in the marketplace. But now as we get into more of what I call the business apps, and they brought this up on stage. A little nuanced. Most enterprises aren't yet there of integrating tech, on the business apps, into the stack. This is where I think you guys are a use case of success where you guys have been successful with data integration. It's an integrators dilemma, not an innovator's dilemma. So like, I want to integrate. So now I have integration points with Databricks, but I want to put an app in there. I want to provision an application, but it has to be built. It's not, you don't buy it. You build, you got to build stuff. And this is the nuance. What's your reaction to that? Am I getting this right? Or am I off because, no one's going to be buying software like they used to. They buy software to integrate it. >> Yeah, no- >> Because everything's integrated. >> I think AWS has done a great job at creating a partner ecosystem, right? To give customers the right tools for the right jobs. And those might be with third parties. Databricks is doing the same thing with our partner connect program, right? We've got customer partners like Five Tran and DBT that, you know, augment and enhance our platform. And so you're looking at multi ISV architectures and all of that can be procured through the AWS marketplace. >> Yeah. It's almost like, you know, bundling and un bundling. I was talking about this with, with Dave Alante about Supercloud. Which is why wouldn't a customer want the best solution in their architecture? Period. In its class. If someone's got API security or an API gateway. Well, you know, I don't want to be forced to buy something because it's part of a suite. And that's where you see things get sub optimized. Where someone dominates a category and they have, oh, you got to buy my version of this. >> Joel and I were talking, we were actually saying, what's really important about Databricks, is that customers control the data, right? You want to comment on that? >> Yeah. I was going to say, you know, what you're pushing on there, we think is extraordinarily, you know, the way the market is going to go. Is that customers want a lot of control over how they build their data stack. And everyone's unique in what tools are the right ones for them. And so one of the, you know, philosophically, I think, really strong places, Databricks and AWS have lined up, is we both take an approach that you should be able to have maximum flexibility on the platform. And as we think about the Lakehouse, one thing we've always been extremely committed to, as a company, is building the data platform on an open foundation. And we do that primarily through Delta Lake and making sure that, to Jack's point, with Databricks, the data is always in your control. And then it's always stored in a completely open format. And that is one of the things that's allowed Databricks to have the breadth of integrations that it has with all the other data tools out there. Because you're not tied into any proprietary format, but instead are able to take advantage of all the innovation that's happening out there in the open source ecosystem. >> When you see other solutions out there that aren't as open as you guys, you guys are very open by the way, we love that too. We think that's a great strategy, but what am I foreclosing if I go with something else that's not as open? What's the customer's downside as you think about what's around the corner in the industry? Because if you believe it's going to be open, open source, which I think open source software is the software industry, and integration is a big deal. Because software's going to be plentiful. >> Sure. >> Let's face it. It's a good time to be in software business. But Cloud's booming. So what's the downside, from your Databricks perspective? You see a buyer clicking on Databricks versus that alternative. What's potentially should they be a nervous about, down the road, if they go with a more proprietary or locked in approach? >> Yeah. >> Well, I think the challenge with proprietary ecosystems is you become beholden to the ability of that provider to both build relationships and convince other vendors that they should invest in that format. But you're also, then, beholden to the pace at which that provider is able to innovate. >> Mm-hmm. >> And I think we've seen lots of times over history where, you know, a proprietary format may run ahead, for a while, on a lot of innovation. But as that market control begins to solidify, that desire to innovate begins to degrade. Whereas in the open formats- >> So extract rents versus innovation. (John laughs) >> Exactly. Yeah, exactly. >> I'll say it. >> But in the open world, you know, you have to continue to innovate. >> Yeah. >> And the open source world is always innovating. If you look at the last 10 to 15 years, I challenge you to find, you know, an example where the innovation in the data and AI world is not coming from open source. And so by investing in open ecosystems, that means you are always going to be at the forefront of what is the latest. >> You know, again, not to date myself again, but you look back at the eighties and nineties, the protocol stacked with proprietary. >> Yeah. >> You know, SNA and IBM, deck net was digital. You know the rest. And then TCPIP was part of the open systems interconnect. >> Mm-hmm. >> Revolutionary (indistinct) a big part of that, as well as my school did. And so like, you know, that was, but it didn't standardize the whole stack. It stopped at IP and TCP. >> Yeah. >> But that helped inter operate, that created a nice defacto. So this is a big part of this mid game. I call it the chessboard, you know, you got opening game and mid-game, then you get the end game. You're not there at the end game yet at Cloud. But Cloud- >> There's, always some form of lock in, right? Andy Jazzy will address it, you know, when making a decision. But if you're going to make a decision you want to reduce- You don't want to be limited, right? So I would advise a customer that there could be limitations with a proprietary architecture. And if you look at what every customer's trying to become right now, is an AI driven business, right? And so it has to do with, can you get that data out of silos? Can you organize it and secure it? And then can you work with data scientists to feed those models? >> Yeah. >> In a very consistent manner. And so the tools of tomorrow will, to Joel's point, will be open and we want interoperability with those tools. >> And choice is a matter too. And I would say that, you know, the argument for why I think Amazon is not as locked in as maybe some other clouds, is that they have to compete directly too. Redshift competes directly with a lot of other stuff. But they can't play the bundling game because the customers are getting savvy to the fact that if you try to bundle an inferior product with something else, it may not work great at all. And they're going to be, they're onto it. This is the- >> To Amazon's credit by having these solutions that may compete with native services in marketplace, they are providing customers with choice, low price- >> And access to the core value. Which is the hardware- >> Exactly. >> Which is their platform. Okay. So I want to get you guys thought on something else I see emerging. This is, again, kind of Cube rumination moment. So on stage, Chris unpacked a lot of stuff. I mean this marketplace, they're touching a lot of hot buttons here, you know, pricing, compensation, workflows, services behind the curtain. And one of those things he mentioned was, they talk about resellers or channel partners, depending upon what you talk about. We believe, Dave and I believe on the Cube, that the entire indirect sales channel of the industry is going to be disrupted radically. Because those players were selling hardware in the old days and software. That game is going to change. You mentioned you guys have a program, let me get your thoughts on this. We believe that once this gets set up, they can play in this game and bring their services in. Which means that the old reseller channels are going to be rewritten. They're going to be refactored with this new kinds of access. Because you've got scale, you've got money and you've got product. And you got customers coming into the marketplace. So if you're like a reseller that sold computers to data centers or software, you know, a value added reseller or VAB or business. >> You've got to evolve. >> You got to, you got to be here. >> Yes. >> Yeah. >> How are you guys working with those partners? Because you say you have a product in your marketplace there. How do I make money if I'm a reseller with Databricks, with Amazon? Take me through that use case. >> Well I'll let Joel comment, but I think it's pretty straightforward, right? Customers need expertise. They need knowhow. When we're seeing customers do mass migrations to the cloud or Hadoop specific migrations or data transformation implementations. They need expertise from consulting and SI partners. If those consulting and SI partners happen to resell the solution as well. Well, that's another aspect of their business. But I really think it is the expertise that the partners bring to help customers get outcomes. >> Joel, channel big opportunity for Amazon to reimagine this. >> For sure. Yeah. And I think, you know, to your comment about how do resellers take advantage of that, I think what Jack was pushing on is spot on. Which is, it's becoming more and more about the expertise you bring to the table. And not just transacting the software. But now actually helping customers make the right choices. And we're seeing, you know, both SIs begin to be able to resell solutions and finding a lot of opportunity in that. >> Yeah. And I think we're seeing traditional resellers begin to move into that SI model as well. And that's going to be the evolution that this goes. >> At the end of the day, it's about services, right? >> For sure. Yeah. >> I mean... >> You've got a great service. You're going to have high gross profits. >> Yeah >> Managed service provider business is alive and well, right? Because there are a number of customers that want that type of a service. >> I think that's going to be a really hot, hot button for you guys. I think being the way you guys are open, this channel, partner services model coming in, to the fold, really kind of makes for kind of that Supercloud like experience, where you guys now have an ecosystem. And that's my next question. You guys have an ecosystem going on, within Databricks. >> For sure. >> On top of this ecosystem. How does that work? This is kind of like, hasn't been written up in business school and case studies yet. This is new. What is this? >> I think, you know, what it comes down to is, you're seeing ecosystems begin to evolve around the data platforms. And that's going to be one of the big, kind of, new horizons for us as we think about what drives ecosystems. It's going to be around, well, what's the data platform that I'm using? And then all the tools that have to encircle that to get my business done. And so I think there's, you know, absolutely ecosystems inside of the AWS business on all of AWS's services, across data analytics and AI. And then to your point, you are seeing ecosystems now arise around Databricks in its Lakehouse platform as well. As customers are looking at well, if I'm standing these Lakehouses up and I'm beginning to invest in this, then I need a whole set of tools that help me get that done as well. >> I mean you think about ecosystem theory, we're living a whole nother dream. And I'm not kidding. It hasn't yet been written up and for business school case studies is that, we're now in a whole nother connective tissue, ecology thing happening. Where you have dependencies and value proposition. Economics, connectedness. So you have relationships in these ecosystems. >> And I think one of the great things about the relationships with these ecosystems, is that there's a high degree of overlap. >> Yeah. >> So you're seeing that, you know, the way that the cloud business is evolving, the ecosystem partners of Databricks, are the same ecosystem partners of AWS. And so as you build these platforms out into the cloud, you're able to really take advantage of best of breed, the broadest set of solutions out there for you. >> Joel, Jack, I love it because you know what it means? The best ecosystem will win, if you keep it open. >> Sure, sure. >> You can see everything. If you're going to do it in the dark, you know, you don't know the outcome. I mean, this is really kind of what we're talking about. >> And John, can I just add that when I was at Amazon, we had a theory that there's buyers and builders, right? There's very innovative companies that want to build things themselves. We're seeing now that that builders want to buy a platform. Right? >> Yeah. >> And so there's a platform decision being made and that ecosystem is going to evolve around the platform. >> Yeah, and I totally agree. And the word innovation gets kicked around. That's why, you know, when we had our Supercloud panel, it was called the innovators dilemma, with a slash through it, called the integrater's dilemma. Innovation is the digital transformation. So- >> Absolutely. >> Like that becomes cliche in a way, but it really becomes more of a, are you open? Are you integrating? If APIs are connective tissue, what's automation, what's the service messages look like? I mean, a whole nother set of, kind of thinking, goes on in these new ecosystems and these new products. >> And that thinking is, has been born in Delta Sharing, right? So the idea that you can have a multi-cloud implementation of Databricks, and actually share data between those two different clouds, that is the next layer on top of the native cloud solution. >> Well, Databricks has done a good job of building on top of the goodness of, and the CapEx gift from AWS. But you guys have done a great job taking that building differentiation into the product. You guys have great customer base, great growing ecosystem. And again, I think a shining example of what every enterprise is going to do. Build on top of something, operating model, get that operating model, driving revenue. >> Mm-hmm. >> Yeah. >> Whether, you're Goldman Sachs or capital one or XYZ corporation. >> S and P global, NASDAQ. >> Yeah. >> We've got, you know, the biggest verticals in the world are solving tough problems with Databricks. I think we'd be remiss because if Ali was here, he would really want to thank Amazon for all of the investments across all of the different functions. Whether it's the relationship we have with our engineering and service teams. Our marketing teams, you know, product development. And we're going to be at Reinvent. A big presence at Reinvent. We're looking forward to seeing you there, again. >> Yeah. We'll see you guys there. Yeah. Again, good ecosystem. I love the ecosystem evolutions happening. This NextGen Cloud is here. We're seeing this evolve, kind of new economics, new value propositions kind of scaling up. Producing more. So you guys are doing a great job. Thanks for coming on the Cube and taking the time. Joel, great to see you at the check. >> Thanks for having us, John. >> Okay. Cube coverage here. The world's changing as APN comes together with the marketplace for a new partner organization at Amazon web services. The Cube's got it covered. This should be a very big, growing ecosystem as this continues. Billions of being sold through the marketplace. And of course the buyers are happy as well. So we've got it all covered. I'm John Furry. your host of the cube. Thanks for watching. (upbeat music)

>>Hello. And welcome back to the cubes live coverage here in Seattle for the cubes coverage of AWS marketplace seller conference. Now part of really big move and news, Amazon partner network combines with AWS marketplace to form one organization, the Amazon partner organization, APO where the efficiencies, the next iteration, as they say in Amazon language, where they make things better, simpler, faster, and, and for customers is happening. We're here with Chris Cruz, who's the general manager, worldwide leader of ISV alliances and marketplace, which includes all the channel partners and the buyer and seller relationships all now under one partner organization, bringing together years of work. Yes. If you work with AWS and are a partner and, or sell with them, all kind of coming together, kind of in a new way for the next generation, Chris, congratulations on the new role and the reor. >>Thank you. Yeah, it's very exciting. We're we think it invent, simplifies the process on how we work with our partners and we're really optimistic so far. The feedback's been great. And I think it's just gonna get even better as we kind of work out the final details. >>This is huge news because one, we've been very close to the partner that we've been working with and we talking to, we cover them. We cover the news, the startups from startups, channel partners, big ISVs, big and small from the dorm room to the board room. You guys have great relationships. So check marketplace, the future of procurement, how software will be bought, implemented and deployed is also changed. So you've got the confluence of two worlds coming together, growth in the ecosystem. Yep. NextGen cloud on the horizon for AWS and the customers as digital transformation goes from lift and shift to refactoring businesses. Yep. This is really a seminal moment. Can you share what you talked about on the keynote stage here, around why this is happening now? Yeah. What's the guiding principle. What's the north star where, why what's what's the big news. >>Yeah. And so, you know, a lot of reasons on why we kind of, we pulled the two teams together, but you know, a lot of it kind gets centered around co-sell. And so if you take a look at marketplace where we started off, where it was really a machine image business, and it was a great self-service model and we were working with ISVs that wanted to have this new delivery mechanism on how to bring in at the time was Amazon machine images and you fast forward, we started adding more product types like SAS and containers. And the experience that we saw was that customers would use marketplace for kind of up to a certain limit on a self-service perspective. But then invariably, they wanted by a quantity discount, they wanted to get an enterprise discount and we couldn't do that through marketplace. And so they would exit us and go do a direct deal with a, an ISV. >>And, and so to remedy that we launched private offers, you know, four years ago. And private offers now allowed ISVs to do these larger deals, but do 'em all through marketplace. And so they could start off doing self-service business. And then as a customer graduated up to buying for a full department or an organization, they can now use private offers to execute that larger agreement. And it, we started to do more and more private offers, really kind of coincided with a lot of the initiatives that were going on within Amazon partner network at the time around co-sell. And, and so we started to launch programs like ISV accelerate that really kind of focused on our co-sell relationship with ISVs. And what we found was that marketplace private offers became this awesome way to automate how we co-sell with ISV. And so we kinda had these two organizations that were parallel. We said, you know what, this is gonna be better together. If we put together, it's gonna invent simplify and we can use marketplace private offers as part of that co-sell experience and really feed that automation layer for all of our ISVs as they interacted with native >>Discussions. Well, I gotta give you props, you and Mona work on stage. You guys did a great job and it reminds me of the humble nature of AWS and Amazon. I used to talk to Andy jazzy about this all the time. That reminds me of 2013 here right now, because you're in that mode where Amazon reinvent was in 2013. Yeah. Where you knew it was breaking out. Yeah. Everyone's it was kind of small, but we haven't made it yet. Yeah. But you guys are doing billions of vows in transactions. Yeah. But this event is really, I think the beginning of what we're seeing as the change over from securing and deploying applications in the cloud, because there's a lot of nuanced things I want to get your reaction on one. I heard making your part product as an ISV, more native to AWS's stack. That was one major call out. I heard the other one was, Hey, if you're a channel partner, you can play too. And by the way, there's more choice. There's a lot going on here. That's about to kind of explode in a good way for customers. Yeah. Buyers get more access to assemble their solutions. Yeah. And you got all kinds of like business logic, compensation, integration, and scale. Yeah. This is like unprecedented. >>Yeah. It's, it's exciting to see what's going on. I mean, I think we kind of saw the tipping point probably about two years ago, which, you know, prior to that, you know, we would be working with ISVs and customers and it was really much more of an evangelism role where we were just getting people to try it. Just, just list a product. We think this is gonna be a good idea. And if you're a buyer, it's like just try out a private offer, try out a self, you know, service subscription. And, and what's happened now is there's no longer a lot of that convincing that needs to happen. It's really become accepted. And so a lot of the conversations I have now with ISVs, it's not about, should I do marketplace it's how do I do it better? And how do I really leverage marketplace as part of my co-sell initiatives as, as part of my go to market strategy. >>And so you've, you've really kind of passed this tipping point where marketplaces are now becoming very accepted ways to buy third party software. And so that's really exciting. And, and we see that we, you know, we can really enhance that experience, you know, and what we saw on the machine image side is we had this awesome integrated experience where you would buy it. It was tied right into the EC two control plane. And you could go from buying to deploying in one single motion. SAS is a little bit different, you know, we can do all the buying in a very simple motion, but then deploying it. There's a whole bunch of other stuff that our customers have to do. And so we see all kinds of ways that we can simplify that. You know, recently we launched the ability to put third party solutions outta marketplace, into control tower, which is how we deploy all of our landing zones for AWS. And now it's like, instead of having to go wire that up as you're adding new AWS environments, why not just use that third party solution that you've already integrated to you and have it there as you're span those landing zones through >>Control towers, again, back to humble nature, you guys have dominated the infrastructure as a service layer. You kind of mentioned it. You didn't really kind of highlight it other than saying you're doing pretty good. Yeah. On the IAS or the technology partners as you call or infrastructure as you guys call it. Okay. I can see how the, the, the pan, the control panel is great for those customers. But outside that, when you get into like CRM, you mentioned E R P these business apps, these horizontal and verticals have data they're gonna have SageMaker, they're gonna have edge. They might have, you know, other services that are coming online from Amazon. How do I, as an ISV, get my stuff in there. Yeah. And how do I succeed? And what are you doing to make that better? Cause I know it's kind of new, but not new. Yeah, >>No, it's not. I mean, that's one of the things that we've really invested on is how do we make it really easy to list marketplace? And, you know, again, when we first start started, it was a big, huge spreadsheet that you had to fill out. It was very cumbersome and we've really automated all those aspects. So now we've exposed an API as an example. So you can go straight out of your own build process and you might have your own C I CD pipeline. And then you have a build step at the end. And now you can have that execute marketplace update from your build script, right across that API all the way over to AWS marketplace. So it's taking that effectively, a C CD pipeline from an ISV and extending it all the way to AWS and then eventually to a customer, because now it's just an automated supply chain for that software coming into their environment. And we see that being super powerful. There's nowhere manual steps >>Along. Yeah. I wanna dig into that because you made a comment and I want you to clarify it here in the cube. Some have said, even us on the cube. Oh, marketplace. Just the website's a catalog. Yeah. Feels old school. Yeah. Feels like 1995 database. I'm kind of just, you know, saying no offense sake. And now you're saying, you're now looking at this and, and implementing more of a API based. Why is that relevant? I'm I know the answer. You already set up with APIs, but explain the transition from the mindset of it's a website. Yeah. Buy stuff on a catalog to full blown API layer. Yeah. Services. >>Absolutely. Well, when you look at all AWS services, you know, our customers will interface, you know, they'll interface them through a console initially, but when they're using them in production, they're, it's all about APIs and marketplace, as you mentioned, did start off as a website. And so we've kind of taken the opposite approach. We've got this great website experience, which is great for demand gen and, you know, highlighting those listings. But what we want to do is really have this API service layer that you're interfacing with so that an ISV effectively is not even in our marketplace. They interfacing over APIs to do a variety of their high, you know, value functions, whether it's listing soy, private offers. We don't have that all available through APIs and the same thing on the buyer side. So it's integrating directly into their AWS environment and then they can view all their third party spend within things like our cost management suites. They can look at things like cost Explorer, see third party software, right next to first party software, and have that all integrated this nice as seamless >>For the customer. That's a nice cloud native kind of native experience. I think that's a huge advantage. I'm gonna track that closer. We're we're gonna follow that. I think that's gonna be the killer killer feature. All right. Now let's get to the killer feature and the business logic. Okay. Yeah. All partners all wanna know what's in it for me. Yeah. How do I make more cash? Yeah. How do I compensate my sales people? Yeah. What do you guys don't compete with me? Give me leads. Yeah. Can I get MDF market development funds? Yeah. So take me through the, how you're thinking about supporting the partners that are leaning in that, you know, the parachute will open when they jump outta the plane. Yeah. It's gonna be, they're gonna land safely with you. Yeah. MDF marketing to leads. What are you doing to support the partners to help them serve their >>Customers? It's interesting. Market marketplace has become much more of an accepted way to buy, you know, our customers are, are really defaulting to that as the way to go get that third party software. So we've had some industry analysts do some studies and in what they found, they interviewed a whole cohort of ISVs across various categories within marketplace, whether it was security or network or even line of business software. And what they've found is that on average, our ISVs will see a 24% increased close rate by using marketplace. Right. So when I go talk to a CRO and say, do you want to close, you know, more deals? Yes. Right. And we've got data to show that we're also finding that customers on average, when an ISV sales marketplace, they're seeing an 80% uplift in the actual deal size. And so if your ASP is a hundred K 180 K has a heck of a lot better, right? >>So we're seeing increased deal sizes by going through marketplace. And then the third thing that we've seen, that's a value prop for ISVs is speed of closure. And so on average, what we're finding is that our ISVs are closing deals 40% faster by using marketplace. So if you've got a 10 month sales cycle, shaving four months off of a sales cycle means you're bringing deals in, in an earlier calendar year, earlier quarter. And for ISVs getting that cash flow early is very important. So those are great metrics that we're seeing. And, and, you know, we think that they're only >>Gonna improve and from startups who also want, they don't have a lot of cash ISVs that are rich and doing well. Yeah. They have good, good, good, good, good to market funding. Yeah. You got the range of partners and you know, the next startup could be the next Figma could be in that batch startups. Exactly. Yeah. You don't know the game is changing. Yeah. The next brand could be one of those batch of startups. Yeah. What's the message to the startup community. Yeah. >>I mean, marketplace in a lot of ways becomes a level in effect, right. Because, you know, if, if you look at pre marketplace, if you were a startup, you were having to go generate sales, have a sales force, go compete, you know, kind of hand to hand with these largest ISVs marketplace is really kind of leveling that because now you can both list in marketplace. You have the same advantage of putting that directly in the AWS bill, taking advantage of all the management go features that we offer all the automation that we bring to the table. And so >>A lot of us joint selling >>And joint selling, right? When it goes through marketplace, you know, it's gonna feed into a number of our APN programs like ISV accelerate, our sales teams are gonna get recognized for those deals. And so, you know, it brings nice co-sell behavior to how we work with our, our field sales teams together. It brings nice automation that, you know, pre marketplaces, they would have to go build all that. And that was a heavy lift that really now becomes just kind of table stakes for any kind of ISV selling to an, any of >>Customer. Well, you know, I'm a big fan of the marketplace. I've always have been, even from the early days, I saw this as a procurement game changer. It makes total sense. It's so obvious. Yeah. Not obvious to everyone, but there's a lot of moving parts behind the scenes behind the curtain. So to speak that you're handling. Yeah. What's your message to the audience out there, both the buyers and the sellers. Yeah. About what your mission is, what you're you wake up every day thinking about. Yeah. And what's your promise to them and what you're gonna work on. Cause it's not easy. You're building a, an operating model. That's not a website. It's a full on cloud service. Yeah. What's your promise. And what's >>Your goals. No. And like, you know, ultimately we're trying to do from an Aus market perspective is, is provide that selection experience to the ABUS customer, right? There's the infamous flywheel that Jeff put together that had the concepts of why Amazon is successful. And one are the concepts he points to is the concept of selection. And, and what we mean by that is if you come to Amazon it's is effectively that everything stored. And when you come across, AWS marketplace becomes that selection experience. And so that's what we're trying to do is provide whatever our AWS customers wanna buy, whatever form factor, whatever software type, whatever data type it's gonna be available in AWS marketplace for consumption. And that ultimately helps our customers because now they can get whatever technologies that they need to use alongside Avis. >>And I want, wanna give you props too. You answered the hard question on stage. I've asked Andy EY this on the cube when he was the CEO, Adam Celski last year, I asked him the same question and the answer has been consistent. We have some solutions that people want a AWS end to end, but your ecosystem, you want people to compete yes. And build a product and mostly point to things like snowflake, new Relic. Yeah. Other people that compete with Amazon services. Yeah. You guys want that. You encourage that. Yeah. You're ratifying that same statement. >>Absolutely. Right. Again, it feeds into that selection experience. Right. If a customer wants something, we wanna make sure it's gonna be a great experience. Right. And so a lot of these ISVs are building on top of AWS. We wanna make sure that they're successful. And, you know, while we have a number of our first party services, we have a variety of third party technologies that run very well in a AWS. And ultimately the customer's gonna make their decision. We're customer obsessed. And if they want to go with a third party product, we're absolutely gonna support them in every way shape we can and make sure that's a successful experience for our customers. >>I, I know you referenced two studies check out the website's got buyer and seller surveys on there for Boer. Yeah. I don't want to get into that. I want to just end on one. Yeah. Kind of final note, you got a lot of successful buyers and a lot of successful sellers. The word billions, yes. With an S was and the slide. Can you say the number, how much, how many billions are sold yeah. Through the marketplace. Yeah. And the buyer experience future what's those two things. >>Yeah. So we went on record at reinvent last year, so it's approaching it birthday, but it was the first year that we've in our 10 year history announced how much was actually being sold to the marketplace. And, you know, we are now selling billions of dollars to our marketplace and that's with an S so you can assume, at least it's two, but it's, it's a, it's a large number and it's going >>Very quickly. Yeah. Can't disclose, you know, >>But it's a, it's been a very healthy part of our business. And you know, we look at this, the experience that we >>Saw, there's a lot of headroom. I mean, oh yeah, you have infrastructure nailed down. That's long, you get better, but you have basically growth up upside with these categor other categories. What's the hot categories. You >>Know, we, we started off with infrastructure related products and we've kind of hit critical mass there. Right? We've, there's very few ISVs left that are in that infrastructure related space that are not in our marketplace. And what's happened now is our customers are saying, well, I've been buying infrastructure products for years. I'm gonna buy everything. I wanna buy my line of business software. I wanna buy my vertical solutions. I wanna buy my data and I wanna buy all my services alongside of that. And so there's tons of upside. We're seeing all of these either horizontal business applications coming to our marketplace or vertical specific solutions. Yeah. Which, you know, when we first designed our marketplace, we weren't sure if that would ever happen. We're starting to see that actually really accelerate because customers are now just defaulting to buying everything through their marketplace. >>Chris, thanks for coming on the queue. I know we went a little extra long. There wanted to get that clarification on the new role. Yeah. New organization. Great, great reorg. It makes a lot of sense. Next level NextGen. Thanks for coming on the cube. Okay. >>Thank you for the opportunity. >>All right here, covering the new big news here of AWS marketplace and the AWS partner network coming together under one coherent organization, serving fires and sellers, billions sold the future of how people are gonna be buying software, deploying it, managing it, operating it. It's all happening in the marketplace. This is the big trend. It's the cue here in Seattle with more coverage here at Davis marketplace sellers conference. After the short break.

>>Welcome back everyone to the cubes coverage here in Seattle, Washington, AWS's marketplace seller conference. It's the big news within the Amazon partner network, combining with marketplaces, forming the Amazon partner organization, part of a big reorg as they grow the next level NextGen cloud mid-game on the chessboard. Cube's got cover. I'm John fur, host of Cub, a great guests here from data bricks, both cube alumnis, Jack Anderson, GM of the and VP of the data bricks partnership team. For ADOS, you handle that relationship and Joel Minick vice president of product and partner marketing. You guys are the, have the keys to the kingdom with data, bricks, and AWS. Thanks for joining. Thanks for good to see you again. Thanks for >>Having us back. Yeah, John, great to be here. >>So I feel like we're at reinvent 2013 small event, no stage, but there's a real shift happening with procurement. Obviously it makes it's a no brainer on the micro, you know, people should be buying online self-service cloud scale, but Amazon's got billions being sold to their marketplace. They've reorganized their partner network. You can see kind of what's going on. They've kind of figured it out. Like let's put everything together and simplify and make it less of a website marketplace merge our partner to have more synergy and friction, less experiences so everyone can make more money and customer's gonna be happier. >>Yeah, that's right. >>I mean, you're run relationship. You're in the middle of it. >>Well, Amazon's mental model here is that they want the world's best ISVs to operate on AWS so that we can collaborate and co architect on behalf of customers. And that's exactly what the APO and marketplace allow us to do is to work with Amazon on these really, you know, unique use cases. >>You know, I interviewed Ali many times over the years. I remember many years ago, I think six, maybe six, seven years ago, we were talking. He's like, we're all in ons. Obviously. Now the success of data bricks, you've got multiple clouds. See that customers have choice, but I remember the strategy early on. It was like, we're gonna be deep. So this is speaks volumes to the, the relationship you have years. Jack take us through the relationship that data bricks has with AWS from a, from a partner perspective, Joel, and from a product perspective, because it's not like you got to Johnny come lately new to the new, to the scene, right? We've been there almost president creation of this wave. What's the relationship and has it relate to what's going on today? >>So, so most people may not know that data bricks was born on AWS. We actually did our first 100 million of revenue on Amazon. And today we're obviously available on multiple clouds, but we're very fond of our Amazon relationship. And when you look at what the APN allows us to do, you know, we're able to expand our reach and co-sell with Amazon and marketplace broadens our reach. And so we think of marketplace in three different aspects. We've got the marketplace, private offer business, which we've been doing for a number of years. Matter of fact, we we're driving well over a hundred percent year over year growth in private offers and we have a nine figure business. So it's a very significant business. And when a customer uses a private offer that private offer counts against their private pricing agreement with AWS. So they get pricing power against their, their private pricing. >>So it's really important. It goes on their Amazon bill in may. We launched our pay as you go on demand offering. And in five short months, we have well over a thousand subscribers. And what this does is it really reduces the barriers to entry it's low friction. So anybody in an enterprise or startup or public sector company can start to use data bricks on AWS and pay consumption based model and have it go against their monthly bill. And so we see customers, you know, doing rapid experimentation pilots, POCs, they're, they're really learning the value of that first use case. And then we see rapid use case expansion. And the third aspect is the consulting partner, private offers C P O super important in how we involve our partner ecosystem of our consulting partners and our resellers that are able to work with data bricks on behalf of customers. >>So you got the big contracts with the private offer. You got the product market fit, kind of people iterating with data coming in with, with the buyers you go. And obviously the integration piece all fitting in there. Exactly. Exactly. Okay. So that's that those are the offers that's current and what's in marketplace today. Is that the products, what are, what are people buying? I mean, I guess what's the Joel, what are, what are people buying in the marketplace and what does it mean for >>Them? So fundamentally what they're buying is the ability to take silos out of their organization. And that's, that is the problem that data bricks is out there to solve, which is when you look across your data landscape today, you've got unstructured data, you've got structured data, you've got real time streaming data, and your teams are trying to use all of this data to solve really complicated problems. And as data bricks as the lake house company, what we're helping customers do is how do they get into the new world? How do they move to a place where they can use all of that data across all of their teams? And so we allow them to begin to find through the marketplace, those rapid adoption use cases where they can get rid of these data, warehousing data lake silos they've had in the past, get their unstructured and structured data onto one data platform and open data platform that is no longer adherent to any proprietary formats and standards and something. >>They can very much, very easily integrate into the rest of their data environment, apply one common data governance layer on top of that. So that from the time they ingest that data to the time they use that data to the time they share that data inside and outside of their organization, they know exactly how it's flowing. They know where it came from. They know who's using it. They know who has access to it. They know how it's changing. And then with that common data platform with that common governance solution, they'd being able to bring all of those use cases together across their real time, streaming their data engineering, their BI, their AI, all of their teams working on one set of data. And that lets them move really, really fast. And it also lets them solve challenges. They just couldn't solve before a good example of this, you know, one of the world's now largest data streaming platforms runs on data bricks with AWS. >>And if you think about what does it take to set that up? Well, they've got all this customer data that was historically inside of data warehouses, that they have to understand who their customers are. They have all this unstructured data, they've built their data science model, so they can do the right kinds of recommendation engines and forecasting around. And then they've got all this streaming data going back and forth between click stream data from what the customers are doing with their platform and the recommendations they wanna push back out. And if those teams were all working in individual silos, building these kinds of platforms would be extraordinarily slow and complex, but by building it on data bricks, they were able to release it in record time and have grown at, at record pace >>To not be that's product platform that's impacting product development. Absolutely. I mean, this is like the difference between lagging months of product development to like days. Yes. Pretty much what you're getting at. Yeah. So total agility. I got that. Okay. Now I'm a customer I wanna buy in the marketplace, but I also, you got direct Salesforce up there. So how do you guys look at this? Is there channel conflict? Are there comp programs? Because one of the things I heard today in on the stage from a Davis's leadership, Chris was up there speaking and, and, and moment I was, Hey, he's a CRO conference, chief revenue officer conversation, which means someone's getting compensated. So if I'm the sales rep at data bricks, what's my motion to the customer. Do I get paid? Does Amazon sell it? Take us through that. Is there channel conflict? Is there or an audio lift? >>Well, I I'd add what Joel just talked about with, with, you know, what the solution, the value of the solution our entire offering is available on AWS marketplace. So it's not a subset, the entire data bricks offering and >>The flagship, all the, the top, >>Everything, the flagship, the complete offering. So it's not, it's not segmented. It's not a sub segment. It's it's, you know, you can use all of our different offerings. Now when it comes to seller compensation, we, we, we view this two, two different ways, right? One is that AWS is also incented, right? Versus selling a native service to recommend data bricks for the right situation. Same thing with data bricks. Our Salesforce wants to do the right thing for the customer. If the customer wants to use marketplace as their procurement vehicle. And that really helps customers because if you get data bricks and five other ISVs together, and let's say each ISV is spending, you're spending a million dollars, you have $5 million of spend, you put that spend through the flywheel with AWS marketplace. And then you can use that in your negotiations with AWS to get better pricing overall. So that's how we, >>We do it. So customers are driving. This sounds like, correct. For sure. So they're looking at this as saying, Hey, I'm gonna just get purchasing power with all my relationships because it's a solution architectural market, right? >>Yeah. It makes sense. Because if most customers will have a primary and secondary cloud provider, if they can consolidate, you know, multiple ISV spend through that same primary provider, you get pricing >>Power, okay, Jill, we're gonna date ourselves. At least I will. So back in the old days, it used to be, do a Barney deal with someone, Hey, let's go to market together. You gotta get paper, you do a biz dev deal. And then you gotta say, okay, now let's coordinate our sales teams, a lot of moving parts. So what you're getting at here is that the alternative for data bricks or any company is to go find those partners and do deals versus now Amazon is the center point for the customer so that you can still do those joint deals. But this seems to be flipping the script a little bit. >>Well, it is, but we still have VAs and consulting partners that are doing implementation work very valuable work advisory work that can actually work with marketplace through the C PPO offering. So the marketplace allows multiple ways to procure your >>Solution. So it doesn't change your business structure. It just makes it more efficient. That's >>Correct. >>That's a great way to say it. Yeah, >>That's great. So that's so that's it. So that's just makes it more efficient. So you guys are actually incented to point customers to the marketplace. >>Yes, >>Absolutely. Economically. Yeah. >>E economically it's the right thing to do for the customer. It's the right thing to do for our relationship with Amazon, especially when it comes back to co-selling right? Because Amazon now is leaning in with ISVs and making recommendations for, you know, an ISV solution and our teams are working backwards from those use cases, you know, to collaborate, land them. >>Yeah. I want, I wanna get that out there. Go ahead, Joel. >>So one of the other things I might add to that too, you know, and why this is advantageous for, for companies like data bricks to, to work through the marketplace, is it makes it so much easier for customers to deploy a solution. It's, it's very, literally one click through the marketplace to get data bricks stood up inside of your environment. And so if you're looking at how do I help customers most rapidly adopt these solutions in the AWS cloud, the marketplace is a fantastic accelerator to that. You >>Know, it's interesting. I wanna bring this up and get your reaction to it because to me, I think this is the future of procurement. So from a procurement standpoint, I mean, again, dating myself EDI back in the old days, you know, all that craziness. Now this is all the, all the internet, basically through the console, I get the infrastructure side, you know, spin up and provision. Some servers, all been good. You guys have played well there in the marketplace. But now as we get into more of what I call the business apps, and they brought this up on stage little nuance, most enterprises aren't yet there of integrating tech on the business apps, into the stack. This is where I think you guys are a use case of success where you guys have been successful with data integration. It's an integrator's dilemma, not an innovator's dilemma. So like, I want to integrate, so now I have integration points with data bricks, but I want to put an app in there. I want to provision an application, but it has to be built. It's not, you don't buy it. You build, you gotta build stuff. And this is the nuance. What's your reaction to that? Am I getting this right? Or, or am I off because no, one's gonna be buying software. Like they used to, they buy software to integrate it. >>Yeah, >>No, I, cause everything's integrated. >>I think AWS has done a great job at creating a partner ecosystem, right. To give customers the right tools for the right jobs. And those might be with third parties, data bricks is doing the same thing with our partner connect program. Right. We've got customer, customer partners like five tra and D V T that, you know, augment and enhance our platform. And so you, you're looking at multi ISV architectures and all of that can be procured through the AWS marketplace. >>Yeah. It's almost like, you know, bundling and unbundling. I was talking about this with, with Dave ante about Supercloud, which is why wouldn't a customer want the best solution in their architecture period. And it's class. If someone's got API security or an API gateway. Well, you know, I don't wanna be forced to buy something because it's part of a suite and that's where you see things get suboptimized where someone dominates a category and they have, oh, you gotta buy my version of this. Yeah. >>Joel, Joel. And that's Joel and I were talking, we're actually saying what what's really important about Databricks is that customers control the data. Right? You wanna comment on that? >>Yeah. I was say the, you know what you're pushing on there we think is extraordinarily, you know, the way the market is gonna go is that customers want a lot of control over how they build their data stack. And everyone's unique in what tools are the right ones for them. And so one of the, you know, philosophically I think really strong places, data, bricks, and AWS have lined up is we both take an approach that you should be able to have maximum flexibility on the platform. And as we think about the lake house, one thing we've always been extremely committed to as a company is building the data platform on an open foundation. And we do that primarily through Delta lake and making sure that to Jack's point with data bricks, the data is always in your control. And then it's always stored in a completely open format. And that is one of the things that's allowed data bricks to have the breadth of integrations that it has with all the other data tools out there, because you're not tied into any proprietary format, but instead are able to take advantage of all the innovation that's happening out there in the open source ecosystem. >>When you see other solutions out there that aren't as open as you guys, you guys are very open by the way, we love that too. We think that's a great strategy, but what's the, what am I foreclosing? If I go with something else that's not as open what what's the customer's downside as you think about what's around the corner in the industry. Cuz if you believe it's gonna be open, open source, which I think opens our software is the software industry and integration is a big deal, cuz software's gonna be plentiful. Let's face it. It's a good time to be in software business, but cloud's booming. So what's the downside from your data bricks perspective, you see a buyer clicking on data bricks versus that alternative what's potentially is should they be a nervous about down the road if they go with a more proprietary or locked in approach? Well, >>I think the challenge with proprietary ecosystems is you become beholden to the ability of that provider to both build relationships and convince other vendors that they should invest in that format. But you're also then beholden to the pace at which that provider is able to innovate. And I think we've seen lots of times over history where, you know, a proprietary format may run ahead for a while on a lot of innovation. But as that market control begins to solidify that desire to innovate begins to, to degrade, whereas in the open format. So >>Extract rents versus innovation. Exactly. >>Yeah, exactly. >>But >>I'll say it in the open world, you know, you have to continue to innovate. Yeah. And the open source world is always innovating. If you look at the last 10 to 15 years, I challenge you to find, you know, an example where the innovation in the data and AI world is not coming from open source. And so by investing in open ecosystems, that means you were always going to be at the forefront of what is the >>Latest, you know, again, not to date myself again, but you look back at the eighties and nineties, the protocol stacked for proprietary. Yeah. You know, SNA at IBM deck net was digital, you know, the rest is, and then TCP, I P was part of the open systems, interconnect, revolutionary Oly, a big part of that as well as my school did. And so like, you know, that was, but it didn't standardize the whole stack. It stopped at IP and TCP. Yeah. But that helped interoperate, that created a nice defacto. So this is a big part of this mid game. I call it the chessboard, you know, you got opening game and mid game. Then you got the end game and we're not there. The end game yet cloud the cloud. >>There's, there's always some form of lock in, right. Andy jazzy will, will address it, you know, when making a decision. But if you're gonna make a decision you want to reduce as you don't wanna be limited. Right. So I would advise a customer that there could be limitations with a proprietary architecture. And if you look at what every customer's trying to become right now is an AI driven business. Right? And so it has to do with, can you get that data outta silos? Can you, can you organize it and secure it? And then can you work with data scientists to feed those models? Yeah. In a, in a very consistent manner. And so the tools of tomorrow will to Joel's point will be open and we want interoperability with those >>Tools and, and choice is a matter too. And I would say that, you know, the argument for why I think Amazon is not as locked in as maybe some other clouds is that they have to compete directly too. Redshift competes directly with a lot of other stuff, but they can't play the bundling game because the customers are getting savvy to the fact that if you try to bundle an inferior product with something else, it may not work great at all. And they're gonna be they're onto it. This is >>The Amazon's credit by having these, these solutions that may compete with native services in marketplace, they are providing customers with choice, low >>Price and access to the S and access to the core value. Exactly. Which the >>Hardware, which is their platform. Okay. So I wanna get you guys thought on something else. I, I see emerging, this is again kind of cube rumination moment. So on stage Chris unpacked, a lot of stuff. I mean this marketplace, they're touching a lot of hot buttons here, you know, pricing compensation, workflows services behind the curtain. And one of the things he mentioned was they talk about resellers or channel partners, depending upon what you talk about. We believe Dave and I believe on the cube that the entire indirect sales channel of the industry is gonna be disrupted radically because those players were selling hardware in the old days and software, that game is gonna change. You know, you mentioned you guys have a program, want to get your thoughts on this. We believe that once this gets set up, they can play in this game and bring their services in which means that the old reseller channels are gonna be rewritten. They're gonna be refactored with this new kinds of access. Cuz you've got scale, you've got money and you've got product and you got customers coming into the marketplace. So if you're like a reseller that sold computers to data centers or software, you know, value added reseller or V or business, >>You've gotta evolve. >>You gotta, you gotta be here. Yes. How are you guys working with those partners? Cuz you say you have a part in your marketplace there. How do I make money? If I'm a reseller with data bricks with eight Amazon, take me through that use case. >>Well I'll let Joel comment, but I think it's, it's, it's pretty straightforward, right? Customers need expertise. They need knowhow. When we're seeing customers do mass migrations to the cloud or Hadoop specific migrations or data transformation implementations, they need expertise from consulting and SI partners. If those consulting SI partners happen to resell the solution as well. Well, that's another aspect of their business, but I really think it is the expertise that the partners bring to help customers get outcomes. >>Joel, channel big opportunity for re re Amazon to reimagine this. >>For sure. Yeah. And I think, you know, to your comment about how to resellers take advantage of that, I think what Jack was pushing on is spot on, which is it's becoming more about more and more about the expertise you bring to the table and not just transacting the software, but now actually helping customers make the right choices. And we're seeing, you know, both SI begin to be able to resell solutions and finding a lot of opportunity in that. Yeah. And I think we're seeing traditional resellers begin to move into that SI model as well. And that's gonna be the evolution that >>This gets at the end of the day. It's about services for sure, for sure. You've got a great service. You're gonna have high gross profits. And >>I think that the managed service provider business is alive and well, right? Because there are a number of customers that want that, that type of a service. >>I think that's gonna be a really hot, hot button for you guys. I think being the way you guys are open this channel partner services model coming in to the fold really kind of makes for kind of that super cloudlike experience where you guys now have an ecosystem. And that's my next question. You guys have an ecosystem going on within data bricks for sure. On top of this ecosystem, how does that work? This is kinda like hasn't been written up in business school and case studies yet this is new. What is this? >>I think, you know, what it comes down to is you're seeing ecosystems begin to evolve around the data platforms and that's gonna be one of the big kind of new horizons for us as we think about what drives ecosystems it's going to be around. Well, what is the, what's the data platform that I'm using and then all the tools that have to encircle that to get my business done. And so I think there's, you know, absolutely ecosystems inside of the AWS business on all of AWS's services, across data analytics and AI. And then to your point, you are seeing ecosystems now arise around data bricks in its Lakehouse platform, as well as customers are looking at well, if I'm standing these Lakehouse up and I'm beginning to invest in this, then I need a whole set of tools that help me get that done as well. >>I mean you think about ecosystem theory, we're living a whole nother dream and I'm, and I'm not kidding. It hasn't yet been written up and for business school case studies is that we're now in a whole nother connective tissue ecology thing happening where you have dependencies and value proposition economics connectedness. So you have relationships in these ecosystems. >>And I think one of the great things about relationships with these ecosystems is that there's a high degree of overlap. Yeah. So you're seeing that, you know, the way that the cloud business is evolving, the, the ecosystem partners of data bricks are the same ecosystem partners of AWS. And so as you build these platforms out into the cloud, you're able to really take advantage of best of breed, the broadest set of solutions out there for >>You. Joel, Jack, I love it because you know what it means the best ecosystem will win. If you keep it open. Sure. You can see everything. If you're gonna do it in the dark, you know, you don't know the outcome. I mean, this is really kind we're talking about. >>And John, can I just add that when I was in Amazon, we had a, a theory that there's buyers and builders, right? There's very innovative companies that want to build things themselves. We're seeing now that that builders want to buy a platform. Right? Yeah. And so there's a platform decision being made and that ecosystem gonna evolve around the >>Platform. Yeah. And I totally agree. And, and, and the word innovation get kicks around. That's why, you know, when we had our super cloud panel was called the innovators dilemma with a slash through it called the integrated dilemma, innovation is the digital transformation. So absolutely like that becomes cliche in a way, but it really becomes more of a, are you open? Are you integrating if APIs are the connective tissue, what's automation, what's the service message look like. I mean, a whole nother set of kind of thinking goes on and these new ecosystems and these new products >>And that, and that thinking is, has been born in Delta sharing. Right? So the idea that you can have a multi-cloud implementation of data bricks, and actually share data between those two different clouds, that is the next layer on top of the native cloud >>Solution. Well, data bricks has done a good job of building on top of the goodness of, and the CapEx gift from AWS. But you guys have done a great job taking that building differentiation into the product. You guys have great customer base, great grow ecosystem. And again, I think in a shining example of what every enterprise is going to do, build on top of something operating model, get that operating model, driving revenue. >>Yeah. >>Well we, whether whether you're Goldman Sachs or capital one or XYZ corporation >>S and P global NASDAQ, right. We've got, you know, these, the biggest verticals in the world are solving tough problems with data breaks. I think we'd be remiss cuz if Ali was here, he would really want to thank Amazon for all of the investments across all of the different functions, whether it's the relationship we have with our engineering and service teams. Yeah. Our marketing teams, you know, product development and we're gonna be at reinvent the big presence of reinvent. We're looking forward to seeing you there again. >>Yeah. We'll see you guys there. Yeah. Again, good ecosystem. I love the ecosystem evolutions happening this next gen cloud is here. We're seeing this evolve kind of new economics, new value propositions kind of scaling up, producing more so you guys are doing a great job. Thanks for coming on the Cuban, taking time. Chill. Great to see you at the check. Thanks for having us. Thanks. Going. Okay. Cube coverage here. The world's changing as APN comes to give the marketplace for a new partner organization at Amazon web services, the Cube's got a covered. This should be a very big growing ecosystem as this continues, billions of being sold through the marketplace. Of course the buyers are happy as well. So we've got it all covered. I'm John furry, your host of the cube. Thanks for watching.

>>Okay, welcome back to everyone. Cube's live coverage of VMware Explorer, 2022. I'm John fur, host of the cube. Two sets three days of live coverage. Dave Ante's here. Lisa Martin, Dave Nicholson, all host of the cube 12 interviews today, just we're with Rocklin and rolling, getting down to the end of the show. As we wind down and look back and look at the future. We've got Steven Jones. Here's the general manager of the VMware cloud on AWS. He's with Amazon web service. Steven Jones. Welcome to the cube. >>Thanks John. >>Welcome back cube alumni. I've been on many times going back to 2015. Yeah. >>Pleasure to be here. Great >>To see you again. Thanks for coming on. Obviously 10 years at AWS, what a ride is that's been, come on. That's fantastic. Tell me it's been crazy. >>Wow. Learned a lot of stuff along the way, right? I mean, we, we, we knew that there was a lot of opportunity, right? Customers wanting the agility and flexibility of, of the cloud and, and we, we still think it's early days, right? I mean, you'll hear Andy say that animals say that, but it really is. Right. If you look at even just the amount of spend that's being spent on, on clouds, it's in the billions, right. And the amount of, of spend in it is still in the trillion. So there's, there's a long way to go and customers are pushing us hard. Obviously >>It's been interesting a lot going on with VM. We're obviously around with them, obviously changing the strategy with their, their third generation and their narrative. Obviously the Broadcom thing is going on around them. And 10 years at abs, we've been, we've been, this'll be our ninth year, no 10th year at reinvent coming up for us. So, but it's 10 years of everything at Amazon, 10 years of S three, 10 years of C two. So if you look at the, the marks of time, now, the history books are starting to be written about Amazon web services. You know, it's about 10 years of full throttle cube hyperscaler in action. I mean, I'm talking about real growth, like >>Hardcore, for sure. I'll give you just one anecdote. So when I first joined, I think we had maybe two EC two instances back in the day and the maximum amount of memory you could conversion into one of these machines was I think 128 gig of Ram fast forward to today. You literally can get a machine with 24 terabytes of Ram just in insane amounts. Right? My, my son who's a gamer tells me he's got 16 gig in his, in his PC. You need to, he thinks that's a lot. >>Yeah. >>That's >>Excited about that. That's not even on his graphics card. I mean, he's, I know it's coming next. The GPU, I mean, just all >>The it's like, right? >>I mean, all the hardware innovation that you guys have done, I mean, look at every it's changed. Everyone's changed their strategy to copy AWS nitro, Dave ante. And I talk about this all the time, especially with James Hamilton and the team over there, Peter DeSantos, these guys have, are constantly going at the atoms and innovating at the, at the level. I mean that, that's how hardcore it is over there right now. I mean, and the advances on the Silicon graviton performance wise is crazy. I mean, so what does that enabling? So given that's continuing, you guys are continuing to do great work there on the CapEx side, we think that's enabling another set of new net new applications because we're starting to see new things emerge. We saw snowflake come on, customer of AWS refactor, the data warehouse, they call it a data cloud. You're starting to see Goldman Sachs. You see capital one, you see enterprise customers building on top of AWS and building a cloud business without spending the CapEx >>Is exactly right. And Ziggy mentioned graviton. So graviton is one of our fastest growing compute families now. And you know, you mentioned a couple of ISVs and partners of ours who are leaning in heavily on porting their own software. Every event Adam announced that we're working with SAP to, to help them port their HANA cloud, which is a, a database of service offering HANA flagship to graviton as well. So it's, it's definitely changing. >>And I think, you know, one of the, and we're gonna circle back to VMware is kind of a point to this. This conversation is that, is that if you look at the trends, right, okay. VMware really tried hard to do cloud and they had a good shot at it V cloud air, but it just, they didn't have the momentum that you guys had at AWS. We saw a lot, lot of other stragglers try to do cloud. They fell off the road, OpenStack, HP, and the list goes on and on. I don't wanna get into that, but the point is, as you guys become more powerful and you're open, right? So you have open ecosystem, you have people now coming back, taking advantage and refactoring and picking up where they left off. VMware was the one of the first companies that actually said, you know what pat Gelsinger said? And I was there, let's clear up the positioning. Let's go all in with AWS. That's >>Right >>At that time, 2016. >>Yeah. This was new for us, for >>Sure. And then now that's set the standard. Now everybody else is kind of doing it. Where is the VMware cloud relationship right now? How is that going out? State's worked. >>It's working well very well. It's I mean, we're celebrating, I think we made the announcement what, five years ago at this conference. Yeah. 2016. So, I mean, it's, it's been a tremendous ride. The best part are the customers who were coming and adopting and proving to us that our vision back then was the right vision. And, and, and what's been different. I think about this relationship. And it was new for us was that we, we purposely went after a jointly engineered solution. This wasn't a, we've got a, a customer or a partner that's just going to run and build something on us. This is something where we both bring muscle and we actually build a, a joint offering together. Talk about, about the main difference. >>Yeah. And that, and that's been working, but now here at this show, if you look at, if you squint through the multi-cloud thing, which is like just, I think positioning for, you know, what could happen in, in a post broad Broadcom world, the cloud native has traction they're Tansu where, where customers were leaning in. So their enterprise customer is what I call the classic. It, you know, mainstream enterprise, which you guys have been doing a lot of business with. They're now thinking, okay, I'm gonna go on continu, accelerate on, in the public cloud, but I'm gonna have hybrid on premise as well. You guys have that solution. Now they're gonna need cloud native. And we were speculating that VMware is probably not gonna be able to get 'em all of it. And, and that there's a lot more cloud native options as customers want more cloud native. How do you see that piece on Amazon side? Because there's a lot of benefits between the VMware cloud on AWS and the services that you guys have natively in your cloud. So we see customers really taking advantage of the AWS goodness, as well as expanding the cloud side at VMware cloud on AWS. >>Yeah. There's probably two ways I would look at this. Right? So, so one is the combination of VMware cloud on AWS. And then both native services just generally brings more options to customers. And so typically what we're seeing now is customers are just able to move much faster, especially as it comes to data center, evacuations, migrating all their assets, right? So it used to be that, and still some customers they're like, I I've gotta think through my entire portfolio of applications and decide what to refactor. And the only way I can move it to cloud is to actually refactor it into some net new application, more and more. We're actually seeing customers. They've got their assets. A lot of them are still on premises in a VMware state, right. They can move those super quick and then modernize those. And so I think where you'll see VMware and AWS very aligned is on this, this idea of migrate. Now you need to get the benefits of TCO and, and the agility that comes with being in the cloud and then modernize. We took a step further, which is, and I think VMware would agree here too, but all of the, the myriad of services, I think it's 200 plus now AWS native services are for use right alongside any that a customer wants to run in VMware. And so we have examples of customers that are doing just, >>And that's, that's how you guys see the native and, and VMware cloud integrating in. Yeah, that's, that's important because this, I mean, if I always joke about, you know, we've been here 12 years listening in the hallways and stuff, you know, on the bus to the event last night, walking the parties and whatnot, listening in the streets, there's kind of two conversations that rise right to the top. And I wanna get your reaction to this Steven, because this seems to be representative of this demographic here at VMware conference, there's conversations around ransomware and storage and D dub and recovery. It's all, a lot of those happen. Yeah. Clearly a big crowd here that care about, you know, Veeam and NetApp and storage and like making sure stuff's secure and air gapped. And a lot of that kind of, I call nerdy conversations and then the other one is, okay, I gotta get the cloud story. >>Right. So there's kind of the operational security. And then there's like, okay, what's my path to true cloud. I need to get this moving. I need to have better applications. My company is the application now not it serves some sort of back office function. Yeah. It's like, my company is completely using technology as its business. So the app is the business. So that means everything's technology driven, not departmental siloed. So there's a, that's what I call the true cloud conversation. How do you, how do you see that evolving because VMware customers are now going there. And I won't say, I won't say they're behind, but they're certainly going there faster than ever before. >>I think, I think, I mean, it's an interesting con it's an interesting way to put it and I, I would completely agree. I think it's, it's very clear that I think a lot of customer companies are actually being disrupted. Right. And they have to move fast and reinvent themselves. You said the app is now becoming the company. Right. I mean, if, if you look at where not too many years back, there were, you know, big companies like Netflix that were born in the cloud. Right. Airbnb they're disruptors. >>There's, that's the >>App, right? That's the app. Yeah. So I, I would exactly agree. And, and that's who other companies are competing with. And so they have to move quickly. You talked about some, some technology that allows them to do that, right? So this week we announced the general availability of a NetApp on tap solution. It's been available on AWS for some time as a fully managed FSX storage solution. But now customers can actually leverage it with, with VMC. Now, why is that important? Well, there's tens of thousands of customers running VMware. On-premises still, there's thousands of them that are actually using NetApp filers, right? NetApp, NetApp filers, and the same enterprise features like replication. D do you were talking about and Snapp and clone. Those types of things can be done. Now within the V VMware state on AWS, what's even better is they can actually move faster. So consider replicating all this, you know, petabytes and petabytes of data that are in these S from on-premises into AWS, this, this NetApp service, and then connected connecting that up to the BMC option. So it just allows customers much, much. >>You guys, you guys have always been customer focus. Every time I sat down with the Andy jazzy and then last year with Adam, same thing we worked back from, I know it's kind of a canned answer on some of the questions from media, but, but they do really care. I've had those conversations. You guys do work backwards from the customer, actually have documents called working backwards. But one of the things that I observed, we talked about here yesterday on the cube was the observations of reinvent versus say, VM world. Now explore is VM world's ecosystem was very partner-centric in the sense of the partners needed to rely on VMware. And the customers came here for both more of the partners, not so much VMware in the sense there wasn't as much, many, many announcements can compare that to the past, say eight years of reinvent, where there's so much Amazon action going on the partners, I won't say take as a second, has a backseat to Amazon, but the, the attendees go there generally for what's going on with AWS, because there's always new stuff coming out. >>And it's, it's amazing. But this year it starts to see that there's an overlap or, or change between like the VMware ecosystem. And now Amazon there's, a lot of our interviews are like, they're on both ecosystems. They're at Amazon's show they're here. So you start to see what I call the naturalization of partners. You guys are continuing to grow, and you'll probably still have thousands of announcements at the event this year, as you always do, but the partners are much more part of the AWS equation, not just we're leasing all these new services and, and oh, for sure. Look at us, look at Amazon. We're growing. Cause you guys were building out and look, the growth has been great. But now as you guys get to this next level, the partners are integral to the ecosystem. How do you look at that? How has Amazon thinking about that? I know there's been some, some, a lot of active reorgs around AWS around solving this problem or no solve the problem, addressing the need and this next level of growth. What's your reaction to >>That? Well, I mean, it's, it's a, it's a good point. So I have to be honest with you, John. I, I, I spent eight of my 10 years so far at AWS within the partner organization. So partners are very near and dear to my heart. We've got tens of thousands of partners and you are you're right. You're starting to see some overlap now between the VMware partner ecosystem and what we've built now in AWS and partners are big >>By the way, you sell out every reinvent. So it's, you have a lot of partners. I'm not suggesting that you, that there's no partner network there, but >>Partners are critical. I mean, absolutely naturally we want a relationship with a customer, but in order to scale the way we need to do to meet the, the needs of customers, we need partners. Right. We, we can't, we can't interact with every single customer as much as we would like to. Right. And so partners have long built teams and expertise that, that caters to even niche workloads or opportunity areas. And, and we love partners >>For that. Yeah. I know you guys do. And also we'll point out just to kind of give props to you guys on the partner side, you don't, you keep that top of the stack open on Amazon. You've done some stuff for end to end where customers want all Amazon, but for the most part, you let competition come in, even on, so you guys are definitely partner friendly. I'm just observing more the maturization of partners within the reinvent ecosystem, cuz we're there every year. I mean, it's, I mean, first of all, they're all buzzing. I mean, it's not like there's no action. There's a lot of customers there it's sold out as big numbers, but it just seems that the partners are much more integrated into the value proposition of at a AWS because of the, the rising tide and, and now their enablement, cuz now they're part of the, of the value proposition. Even more than ever before >>They, they really are. And they, and they're building a lot of capabilities and services on us. And so their customers are our customers. And like you say, it's rising tide, right. We, we all do better together. >>Okay. So let's talk about the VMware cloud here. What's the update here in terms of the show, what's your, what's your main focus cuz a lot of people here are doing, doing sessions. What's been some of the con content that you guys are producing here. >>Yeah. So the best part obviously is a always the customer conversations to partner conversations. So a, a lot of, a lot of sessions there, we did keynote yesterday in Ryan and I, where we talked about a number of announcements that are, I think pretty material now to the offering a joint announcement with NetApp yesterday as well around the storage solution I was talking about. And then some, some really good technical deep dives on how the offering works. Customers are still interested in like how, how do I take what I've got on premises and easily move into AWS and technology like HSX H CX solution with VMware makes it really easy without having to re IP applications. I mean, you know, it is super difficult sometimes to, to move an application. If you've got figure out where all the firewall rules are and re iPing those, those things source. But yeah, it's, it's been fantastic. >>A lot of migrations to the cloud too. A lot of cloud action, new cloud action. You guys have probably seen an uptake on services right on the native side. >>Yes. Yes. For sure. So maybe I just outlined some of the, some of the assets we made this week. So absolutely >>Go ahead. >>We, we announced a new instance family as a, a major workhorse underneath the VMware cloud offering called I, I, you mentioned nitro earlier, this is on, based on our latest generation of nitro, which allows us to offer as you know, bare metal instances, which is, which is what VMware actually VMware was our first partnership and customer that I would say actually drove us to really get Nira done and out the door. And we've continued to iterate on that. And so this I four, I instance, it's based on the, the latest Intel isolate processor with more than double the Ram double the compute, a whopping 75 gigabytes per second network. So it's a real powerhouse. The cool thing is that with the, with the NetApp storage solution that we, we discussed, we're now disaggregating the need to provision, compute and storage at the same time. It used to be, if you wanted to add more storage to your VSAN array, that was on a V VMware cloud. Yeah. You'd add another note. You might not need more compute for memory. You'd have to add another note. And so now customers can simply start adding chunks of storage. And so this opens up customers. I had a customer come to me yesterday and said, there's no reason for us not to move. Now. We were waiting for something that like this, that allowed us to move our data heavy workloads yeah. Into VMware cloud. It's >>Like, it's like the, the alignment. You mentioned alignment earlier. You know, I would say that VMware customers are lined up now almost perfectly with the hybrid story that's that's seamless or somewhat seems it's never truly seamless. But if you look at like what Deepak's doing with Kubernetes and open source, you, you guys have that there talking that big here, you got vs a eight vSphere, eight out it's all cloud native. So that's lined up with what you guys are doing on your services and the horsepower. They have their stuff, you have yours that works better together. So it seems like it's more lined up than ever before. What's your take on that? Do you agree? And, and if so, what folks watching here that are VMware customers, what's, what's the motivation now to go faster? >>Look, it is, it is absolutely lined up. We are, as, as I mentioned earlier, we are jointly engineering and developing this thing together. And so that includes not just the nuts and bolts underneath, but kind of the vision of where it's going. And so we're, we're collectively bringing in customer feedback. >>What is that vision real quick? >>So that vision has to actually help an under help meet even the most demanding customer workloads. Okay. So you've got customer workloads that are still locked in on premises. And why is that? Well, it used to be, there was big for data and migration, right? And the speed. And so we continue to iterate this and that again is a joint thing. Instead of say, VMware, just building on AWS, it really is a, a tight partnership. >>Yeah. The lift and shift is a, an easy thing to do. And, and, and by the way, that could be a hassle too. But I hear most people say the reason holding us back on the workloads is it's just a lot of work, a hassle making it easier is what they want. And you guys are doing that. >>We are doing that. Absolutely. And by the way, we've got not just engineering teams, but we've got customer support teams on both sides working together. We also have flexible commercial options, right? If a customer wants to buy from AWS because they've negotiated some kind of deal with us, they can do that. They wanna buy from VMware for a similar reason. They could buy from VMware. So are >>They in the marketplace? >>They are in the market. There, there are some things in the marketplace. So you talked about Tansu, there's a Tansu offering in the marketplace. So yes. Customers can >>Contract. Yeah. Marketplaces. I'm telling you that's very disruptive. I'm Billy bullish on the market AIOS marketplace. I think that's gonna be a transformative way. People have what they procure and fully agree, deploy and how, and channel relationships are gonna shift. I think that's gonna be a disruptive enabler to the partner equation and, and we haven't even seen it yet. We're gonna be up there in September for their inaugural event. I think it's a small group, but we're gonna be documenting that. So even final question for you, what's next for you? What's on the agenda. You got reinvent right around the corner. Your P ones are done. Right? I know. Assuming all that, I turn that general joke. That's an internal Amazon joke. FYI. You've got your plan. What's next for the world. Obviously they're gonna go this, take this, explore global. No matter what happens with Broadcom, this is gonna be a growth wave with hybrid. What's next for you and your team with AWS and VMware's relationship? >>Yeah. So both of us are hyper focused on adding additional options, both from a, an instance compute perspective. You know, VMware announced some, some, some additional offerings that we've got. We've got a fully complete, like, so they're, they announce things like VMware flex compute V VMware flex storage. You mentioned earlier, there was a conversation around ransomware. There's a new ransomware based offering. So we're hyper focused on rounding out, continuing to round out the offering and giving customers even more choice >>Real quick. Jonathan made me think about the ransomware we were at reinforce Steven Schmidtz now the CSO. Now you got a CSO. AJ's the CSO. You got a whole focus, huge emphasis on security right now. I know you always have, but now it's much more public. It's PO more positive, I think, than some of the other events I've been to. It's been more Lum and doom. What's the security tie in here with VMware. Can you share a little bit real quick on the security piece update around this relationship? >>Yeah, you bet. So as you know, security for us is job zero. Like you don't have anything of security. And so what are the things that, that we're excited about specifically with VMware is, is the latest offering that, that we put together and it's called this, this ransomware offering. And it's, it's a little bit different than other ransomware. I mean, a lot of people have ransomware offerings today, just >>Air gap. >>Right, right, right. Exactly. No, that's easy. No, this one is different. So on the back end, so within VMC, there's this, this option where CU we can be to be taking iterative snapshots of a customer environment. Now, if an event were to occur, right. And a customer is like, I have to know if I'm compromised, we can actually spin up super easy. This is cloud. Remember? Yeah. We can spin up a, a copy of this environment, throw a switch, pick a snapshot with NSX. So VMware NSX firewall it off and then use some custom tooling from VMware to actually see if it's been compromised or not. And then iterate through that until you actually know you're clean. And that's different than just tools that do maybe a >>Little bit of scam. We had Tom gills on yesterday and, and one of the things Dave ante had to leave is taking the sun to college is last one in the house and B nester now, but Tom Gill was on. We were talking about how good their security story is ware. And they really weren't showboating it as much as they could have here. I thought they could have done a better job, but this is an example of kind of them really leaning in with you guys. That's the key part of the relationship. >>Yeah, it really is. And I think this is something is materially different than what you can get elsewhere. And it's exciting for, >>Okay. Now the, the real question I want to know is what's your plans for AWS reinvent the blockbuster end of the year, Amazon surf show that gets bigger and bigger. I know it's still hybrid now, but it's looking be hybrid, but people are back in person last year. You guys were the first event really come back and still had massive numbers. AWS summit, New York at 19,000. I heard last week in Chicago, big numbers. So we're expecting reinvent to be pretty large this year. What are you, what are you gonna do there? What's your role there? >>We are expecting, well, I'll be there. I cover multiple businesses. Obviously. We're, we're planning on some additional announcements, obviously in the VMware space as well. And one of the other businesses I run is around SAP. And you should look for some things there as well. Yeah. Really looking forward to reinvent, except for the fact that it's right after Thanksgiving. But I think it >>Always ruins my, I always get an article out. I like, why are you we're having, we're having Thanksgiving dinner. I gotta write this article. It's gotta get Adam, Adam. Leski exclusive. We, every year we do a, a CEO sit down with Andy was the CEO and then now Adam. But yeah, it's a great event to me. I think it sets the tone. And it's gonna be very interesting to see the big clouds are coming to the big cloud. You guys, and you guys are now called hyperscalers. Now, multiple words. It's interesting. You guys are providing the CapEx goodness for everybody else now. And that relationship seems to be the new, the new industry standard of you guys provide the enablement and then everyone you get paid, cuz it's a service. A whole nother level of cloud is emerging in the partner network, GSI other companies. Yeah. >>Yeah. I mean we're really scaling. I mean we continue to iterate and release regions at a fast clip. We just announced support for VMware in Hong Kong. Yeah. So now we're up to 21 regions for this service, >>The sovereign clouds right around the corner. Let's we'll talk about that soon. Steven. Thanks for coming. I know you gotta go. Thank you for your valuable time. Coming in. Put Steven Jones. Who's the general manager of the VMware cloud on AWS business. Four AWS here inside the cube day. Three of cube coverage. I'm John furrier. Thanks for watching. We'll be right back.

>>Okay, welcome back everyone. There's the cubes coverage of VMware Explorer, 22 formerly world. We've been here since 2010 and world 2010 to now it's 2022. And it's VMware Explorer. We're here at the CEO, regular writer. Welcome back to the cube. Great to see you in person. >>Yeah. Great to be here in person, >>Dave and I are, are proud to say that we've been to 12 straight years of covering VMware's annual conference. And thank you. We've seen the change in the growth over time and you know, it's kind of, I won't say pinch me moment, but it's more of a moment of there's the VMware that's grown into the cloud after your famous deal with Andy jazzy in 2016, we've been watching what has been a real sea change and VMware since taking that legacy core business and straightening out the cloud strategy in 2016, and then since then an acceleration of, of cloud native, like direction under your leadership at VMware. Now you're the CEO take us through that because this is where we are right now. We are here at the pinnacle of VMware 2.0 or cloud native VMware, as you point out on your keynote, take us through that history real quick. Cuz I think it's important to know that you've been the architect of a lot of this change and it's it's working. >>Yeah, definitely. We are super excited because like I said, it's working, the history is pretty simple. I mean we tried running our own cloud cloud air. We cloud air didn't work so well. Right. And then at that time, customers really gave us strong feedback that the hybrid they wanted was a Amazon together. Right. And so that's what we went back and did and the andjay announcement, et cetera. And then subsequently as we were continue to build it out, I mean, once that happened, we were able to go work with the Satia and Microsoft and others to get the thing built out all over. Then the next question was okay, Hey, that's great for the workloads that are running on vSphere. What's the story for workloads that are gonna be cloud native and benefit a lot from being cloud native. So that's when we went the Tansu route and the Kubernetes route, we did a couple of acquisitions and then we started that started paying off now with the Tansu portfolio. And last but not the least is once customers have this distributed portfolio now, right. Increasingly everything is becoming multi-cloud. How do you manage and connect and secure. So that's what you start seeing that you saw the management announcement, networking and security and everything else is cooking. And you'll see more stuff there. >>Yeah know, we've been talking about super cloud. It's kinda like a multi-cloud on steroids kind a little bit different pivot of it. And we're seeing some use cases. >>No, no, it's, it's a very great, it's a, it's pretty close to what we talk about. >>Awesome. I mean, and we're seeing this kind of alignment in the industry. It's kind of open, but I have to ask you, when did you, you have the moment where you said multicloud is the game changer moment. When did you have, because you guys had hybrid, which is really early as well. When was the Raghu? When did you have the moment where you said, Hey, multicloud is what's happening. That's we're doubling down on that go. >>I mean, if you think about the evolution of the cloud players, right. Microsoft really started picking up around the 2018 timeframe. I mean, I'm talking about Azure, right? >>In a big way. >>Yeah. In a big way. Right. When that happened and then Google got really serious, it became pretty clear that this was gonna be looking more like the old database market than it looked like a single player cloud market. Right. Equally sticky, but very strong players all with lots of IP creation capability. So that's when we said, okay, from a supplier side, this is gonna become multi. And from a customer side that has always been their desire. Right. Which is, Hey, I don't want to get locked into anybody. I want to do multiple things. And the cloud vendors also started leveraging that OnPrem. Microsoft said, Hey, if you're a windows customer, your licensing is gonna be better off if you go to Azure. Right. Oracle did the same thing. So it just became very clear. >>I am, I have gone make you laugh. I always go back to the software mainframe because I, I think you were here. Right. I mean, you're, you're almost 20 years in. Yeah. And I, the reason I appreciate that is because, well, that's technically very challenging. How do you make virtualization overhead virtually non-existent how do you run any workload? Yeah. How do you recover from, I mean, that's was not trivial. Yeah. Okay. So what's the technical, you know, analog today, the real technical challenge. When you think about cross cloud services. >>Yeah. I mean, I think it's different for each of these layers, right? So as I was alluding to for management, I mean, you can go each one of them by themselves, there is one way of Mo doing multi-cloud, which is multiple clouds. Right. You could say, look, I'm gonna build a great product for AWS. And then I'm gonna build a great product for Azure. I'm gonna build a great product for Google. That's not what aria is. Aria is a true multi-cloud, which means it pulls data in from multiple places. Right? So there are two or three, there are three things that aria has done. That's I think is super interesting. One is they're not trying to take all the data and bring it in. They're trying to federate the data sources. And secondly, they're doing it in real time and they're able to construct this graph of a customer's cloud resources. >>Right. So to keep the graph constructed and pulling data, federating data, I think that's a very interesting concept. The second thing that, like I said is it's a real time because in the cloud, a container might come and go like that. Like that is a second technical challenge. The third it's not as much a technical challenge, but I really like what they have done for the interface they've used GraphQL. Right? So it's not about if you remember in the old world, people talk about single pan or glass, et cetera. No, this is nothing to do with pan or glass. This is a data model. That's a graph and a query language that's suited for that. So you can literally think of whatever you wanna write. You can write and express it in GraphQL and pull all sorts of management applications. You can say, Hey, I can look at cost. I can look at metrics. I can look at whatever it is. It's not five different types of applications. It's one, that's what I think had to do it at scale is the other problem. And, and >>The, the technical enable there is just it's good software. It's a protocol. It's >>No, no, it's, it's, it's it's software. It's a data model. And it's the Federation architecture that they've got, which is open. Right. You can pull in data from Datadog, just as well as from >>Pretty >>Much anything data from VR op we don't care. Right? >>Yeah. Yeah. So rego, I have to ask you, I'm glad you like the Supercloud cuz you know, we, we think multi-cloud still early, but coming fast. I mean, everyone has multiple clouds, but spanning this idea of spanning across has interesting sequences. Do you data, do you do computer both and a lot of good things happening. Kubernetes been containers, all that good stuff. Okay. How do you see the first rev of multi-cloud evolving? Like is it what happens? What's the sequence, what's the order of operations for a client standpoint? Customer standpoint of, of multicloud or Supercloud because we think we're seeing it as a refactoring of something like snowflake, they're a data base, they're a data warehouse on the cloud. They, they say data cloud they'd they like they'll tell us no, you, we're not a data. We're not a data warehouse. We're data cloud. Okay. You're a data warehouse refactored for the CapEx from Amazon and cooler, newer things. Yeah, yeah, yeah. That's a behavior change. Yeah. But it's still a data warehouse. Yeah. How do you see this multi-cloud environment? Refactoring? Is there something that you see that might be different? That's the same if you know what I'm saying? Like what's what, what's the ne the new thing that's happening with multi-cloud, that's different than just saying I'm I'm doing SAS on the cloud. >>Yeah. So I would say, I would point to a, a couple of things that are different. Firstly, my, the answer depends on which category you are in. Like the category that snowflake is in is very different than Kubernetes or >>Something or Mongo DB, right? >>Yeah. Or Mongo DB. So, so it is not appropriate to talk about one multi-cloud approach across data and compute and so, so on and so forth. So I'll talk about the spaces that we play. Right. So step one, for most customers is two application architectures, right? The cloud native architecture and an enterprise native architecture and tying that together either through data or through networks or through et cetera. So that's where most of the customers are. Right. And then I would say step two is to bring these things together in a more, in a closer fashion and that's where we are going. And that is why you saw the cloud universal announcement and that's already, you've seen the Tansu announcement, et cetera. So it's really, the step one was two distinct clouds. That is just two separate islands. >>So the other thing that we did, that's really what my, the other thing that I'd like to get to your reaction on, cause this is great. You're like a masterclass in the cube here. Yeah, totally is. We see customers becoming super clouds because they're getting the benefit of, of VMware, AWS. And so if I'm like a media company or insurance company, if I have scale, if I continue to invest in, in cloud native development, I do all these things. I'm gonna have a da data scale advantage, possibly agile, which means I can build apps and functionality very quick for customers. I might become my own cloud within the vertical. Exactly. And so I could then service other people in the insurance vertical if I'm the insurance company with my technology and create a separate power curve that never existed before. Cause the CapEx is off the table, it's operating expense. Yep. That runs into the income statement. Yep. This is a fundamental business model shift and an advantage of this kind of scenario. >>And that's why I don't think snowflakes, >>What's your reaction to that? Cuz that's something that, that is not really, talk's highly nuanced and situational. But if Goldman Sachs builds the biggest cloud on the planet for financial service for their own benefit, why wouldn't they >>Exactly. >>And they're >>Gonna build it. They sort of hinted at it that when they were up on stage on AWS, right. That is just their first big step. I'm pretty sure over time they would be using other clouds. Think >>They already are on >>Prem. Yeah. On prem. Exactly. They're using VMware technology there. Right? I mean think about it, AWS. I don't know how many billions of dollars they're spending on AWS R and D Microsoft is doing the same thing. Google's doing the same thing we are doing. Not as much as them that you're doing oral chair. Yeah. If you are a CIO, you would be insane not to take advantage of all of this IP that's getting created and say, look, I'm just gonna bet on one. Doesn't make any sense. Right. So that's what you're seeing. And then >>I think >>The really smart companies, like you talked about would say, look, I will do something for my industry that uses these underlying clouds as the substrate, but encapsulates my IP and my operating model that I then offer to other >>Partners. Yeah. And their incentive for differentiation is scale. Yeah. And capability. And that's a super cloud. That's a, or would be say it environment. >>Yeah. But this is why this, >>It seems like the same >>Game, but >>This, I mean, I think it environment is different than >>Well, I mean it advantage to help the business, the old day service, you >>Said snowflake guys out the marketing guys. So you, >>You said snowflake data warehouse. See, I don't think it's in data warehouse. It's not, that's like saying, you >>Know, I, over >>VMware is a virtualization company or service now is a help desk tool. I, this is the change. Yes. That's occurring. Yes. And that you're enabling. So take the Goldman Sachs example. They're gonna run OnPrem. They're gonna use your infrastructure to do selfer. They're gonna build on AWS CapEx. They're gonna go across clouds and they're gonna need some multi-cloud services. And that's your opportunity. >>Exactly. That's that's really, when you, in the keynote, I talked about cloud universal. Right? So think of a future where we can go to a customer and say, Mr. Customer buy thousand scores, a hundred thousand cores, whatever capacity you can use it, any which way you want on any application platform. Right. And it could be OnPrem. It could be in the cloud, in the cloud of their choice in multiple clouds. And this thing can be fungible and they can tie it to the right services. If they like SageMaker they could tie it to Sage or Aurora. They could tie it to Aurora, cetera, et cetera. So I think that's really the foundation that we are setting. Well, I think, I >>Mean, you're building a cloud across clouds. I mean, that's the way I look at it. And, and that's why it's, to me, the, the DPU announcement, the project Monterey coming to fruition is so important. Yeah. Because if you don't have that, if you're not on that new Silicon curve yep. You're gonna be left behind. Oh, >>Absolutely. It allows us to build things that you would not otherwise be able to do, >>Not to pat ourselves on the back Ragu. But we, in what, 2013 day we said, feel >>Free. >>We, we said with Lou Tucker when OpenStack was crashing. Yeah. Yeah. And then Kubernetes was just a paper. We said, this could be the interoperability layer. Yeah. You got it. And you could have inter clouding cuz there was no clouding. I was gonna riff on inter networking. But if you remember inter networking during the OSI model, TCP and IP were hardened after the physical data link layer was taken care of. So that enabled an entire new industry that was open, open interconnect. Right. So we were saying inter clouding. So what you're kind of getting at with cross cloud is you're kind of creating this routing model if you will. Not necessarily routing, but like connection inter clouding, we called it. I think it's kinda a terrible name. >>What you said about Kubernetes is super critical. It is turning out to be the infrastructure API so long. It has been an infrastructure API for a certain cluster. Right. But if you think about what we said about VSE eight with VSE eight Kubernetes becomes the data center API. Now we sort of glossed over the point of the keynote, but you could do operations storage, anything that you can do on vSphere, you can do using a Kubernetes API. Yeah. And of course you can do all the containers in the Kubernetes clusters and et cetera, is what you could always do. Now you could do that on a VMware environment. OnPrem, you could do that on EKS. Now Kubernetes has become the standard programming model for infrastructure across. It >>Was the great equalizer. Yeah. You, we used to say Amazon turned the data center through an API. It turns, turns of like a lot of APIs and a lot of complexity. Right. And Kubernetes changed. >>Well, the role, the role of defacto standards played a lot into the T C P I P revolution before it became a standard standard. What the question Raghu, as you look at, we had submit on earlier, we had tutorial on as well. What's the disruptive enabler from a defacto. What in your mind, what should, because Kubernetes became kind of defacto, even though it was in the CNCF and in an open source open, it wasn't really standard standard. There's no like standards, body, but what de facto thing has to happen in your mind's eye around making inter clouding or connecting clouds in a, in a way that's gonna create extensibility and growth. What do you see as a de facto thing that the industry should rally around? Obviously Kubernetes is one, is there something else that you see that's important for in an open way that the industry can discuss and, and get behind? >>Yeah. I mean, there are things like identity, right? Which are pretty critical. There is connectivity and networking. So these are all things that the industry can rally around. Right. And that goes along with any modern application infrastructure. So I would say those are the building blocks that need to happen on the data side. Of course there are so many choices as well. So >>How about, you know, security? I think about, you know, when after stuck net, the, the whole industry said, Hey, we have to do a better job of collaborating. And then when you said identity, it just sort of struck me. But then a lot of people tried to sort of monetize private reporting and things like that. So you do you see a movement within the technology industry to do a better job of collaborating to, to solve the acute, you know, security problems? >>Yeah. I think the customer pressure and government pressure right. Causes that way. Yeah. Even now, even in our current universe, you see, there is a lot of behind the scenes collaboration amongst the security teams of all of the tech companies that is not widely seen or known. Right. For example, my CISO knows the AWS CSO or the Microsoft CSO and they all talk and they share the right information about vulnerability attacks and so on and so forth. So there's already a certain amount of collaboration that's happening and that'll only increase. Do, >>Do you, you know, I was somewhat surprised. I didn't hear more in your face about security would, is that just because you had such a strong multi-cloud message that you wanted to get, get across, cuz your security story is very strong and deep. When you get into the DPU side of things, the, you know, the separation of resources and the encryption and I'll end to end >>I'm well, we have a phenomenal security story. Yeah. Yeah. Tell security story and yes. I mean I'll need guilty to the fact that in the keynote you have yeah, yeah, sure time. But what we are doing with NSX and you will hear about some NSX projects as you, if you have time to go to some of the, the sessions. Yeah. There's one called project, not star. Another is called project Watchman or watch, I think it's called, we're all dealing with this. That is gonna strengthen the security story even more. Yeah. >>We think security and data is gonna be a big part of it. Right. As CEO, I have to ask you now that you're the CEO, first of all, I'd love to talk about product with you cuz you're yeah. Yeah. We just great conversation. We want to kind of read thet leaves and ask pointed questions cuz we're putting the puzzle together in real time here with the audience. But as CEO, now you have a lot of discussions around the business. You, the Broadcom thing happening, you got the rename here, you got multi-cloud all good stuff happening. Dave and I were chatting before we came on this morning around the marketplace, around financial valuations and EBIDA numbers. When you have so much strategic Goodwill and investment in the oven right now with the, with the investments in cloud native multi-year investments on a trajectory, you got economies of scale there. >>It's just now coming out to be harvest and more behind it. Yeah. As you come into the Broadcom and or the new world wave that's coming, how do you talk about that value? Cuz you can't really put a number on it yet because there's no customers on it. I mean some customers, but you can't probably some for form. It's not like sales numbers. Yeah. Yeah. How do you make the argument to the PE type folks out there? Like EBIDA and then all the strategic value. What's the, what's the conversation like if you can share any, I know it's obviously public company, all the things going down, but like how do you talk about strategic value to numbers folks? >>Yeah. I mean, we are not talking to PE guys at all. Right. I mean the only conversation we have is helping Broadcom with >>Yeah. But, but number people who are looking at the number, EBIDA kind of, >>Yeah. I mean, you'd be surprised if, for, for example, even with Broadcom, they look at the business holistically as what are the prospects of this business becoming a franchise that is durable and could drive a lot of value. Right. So that's how they look at it holistically. It's not a number driven. >>They do. They look at that. >>Yeah. Yeah, absolutely. So I think it's a misperception to say, Hey, it's a numbers driven conversation. It's a business driven conversation where, I mean, and Hawk's been public about it. He says, look, I look at businesses. Can they be leaders in their market? Yeah. Because leaders get, as we all know a disproportionate share of the economic value, is it a durable franchise that's gonna last 10 years or more, right. Obviously with technology changes in between, but 10 years or more >>Or 10, you got your internal, VMware talent customers and >>Partners. Yeah. Significant competitive advantage. So that's, that's really where the conversation starts and the numbers fall out of it. Got it. >>Okay. So I think >>There's a track record too. >>That culture >>That VMware has, you've always had an engineering culture. That's turned, you know, ideas and problems into products that, that have been very successful. >>Well, they had different engineering cultures. They're chips. You guys are software. Right. You guys know >>Software. Yeah. Mean they've been very successful with Broadcom, the standalone networking company since they took it over. Right. I mean, it's, there's a lot of amazing innovation going on there. >>Yeah. Not, not that I'm smiling. I want to kind of poke at this question question. I'll see if I get an answer out of you, when you talk to Hawk tan, does he feel like he bought a lot more than he thought or does he, did he, does he know it's all here? So >>The last two months, I mean, they've been going through a very deliberate process of digging into each business and certainly feels like he got a phenomenal asset base. Yeah. He said that to me even today after the keynote, right. Is the amazing amount of product capability that he's seeing in every one of our businesses. And that's been the constant frame. >>But congratulations on that. >>I've heard, I've heard Hawk talk about the shift to, to Mer merchant Silicon. Yeah. From custom Silicon. But I wanted to ask you when you look at things like AWS nitro yeah. And graviton and train and the advantage that AWS has with custom Silicon, you see Google and Microsoft sort of Alibaba following suit. Would it benefit you to have custom Silicon for, for DPU? I mean, I guess you, you know, to have a tighter integration or do you feel like with the relationships that you have that doesn't buy you anything? >>Yeah. I mean we have pretty strong relationships with in fact fantastic relationships with the Invidia and Intel and AMD >>Benon and AMD now. >>Yeah. Yeah. I mean, we've been working with the Pendo team in their previous incarnations for years. Right, right. When they were at Cisco and then same thing with the, we know the Melanox team as well as the invi original teams and Intel is the collaboration right. From the get go of the company. So we don't feel a need for any of that. We think, I mean, it's clear for those cloud folks, right. They're going towards a vertical integration model and select portions of their stack, like you talked about, but there is always a room for horizontal integration model. Right. And that's what we are a part of. Right. So there'll be a number of DPU pro vendors. There'll be a number of CPU vendors. There'll be a number of other storage, et cetera, et cetera. And we think that is goodness in an alternative model compared to a vertically integr >>And yeah. What this trade offs, right. It's not one or the other, I mean I used to tell, talk to Al Shugar about this all the time. Right. I mean, if vertically integrated, there may be some cost advantages, but then you've got flexibility advantages. If you're using, you know, what the industry is building. Right. And those are the tradeoffs, so yeah. Yeah. >>Greg, what are you excited about right now? You got a lot going on obviously great event. Branding's good. Love the graphics. I was kind of nervous about the name changed. I likem world, but you know, that's, I'm kind of like it >>Doesn't readily roll off your phone. Yeah. >>I know. We, I had everyone miscue this morning already and said VMware Explorer. So >>You pay Laura fine. Yeah. >>Now, I >>Mean a quarter >>Curse jar, whatever I did wrong. I don't believe it. Only small mistake that's because the thing wasn't on. Okay. Anyway, what's on your plate. What's your, what's some of the milestones. Do you share for your employees, your customers and your partners out there that are watching that might wanna know what's next in the whole Broadcom VMware situation. Is there a timeline? Can you talk publicly about what? To what people can expect? >>Yeah, no, we, we talk all the time in the company about that. Right? Because even if there is no news, you need to talk about what is where we are. Right. Because this is such a big transaction and employees need to know where we are at every minute of the day. Right? Yeah. So, so we definitely talk about that. We definitely talk about that with customers too. And where we are is that the, all the processes are on track, right? There is a regulatory track going on. And like I alluded to a few minutes ago, Broadcom is doing what they call the discovery phase of the integration planning, where they learn about the business. And then once that is done, they'll figure out what the operating model is. What Broadcom is said publicly is that the acquisition will close in their fiscal 23, which starts in November of this year, runs through October of next year. >>So >>Anywhere window, okay. As to where it is in that window. >>All right, Raghu, thank you so much for taking valuable time out of your conference time here for the queue. I really appreciate Dave and I both appreciate your friendship. Congratulations on the success as CEO, cuz we've been following your trials and tribulations and endeavors for many years and it's been great to chat with you. >>Yeah. Yeah. It's been great to chat with you, not just today, but yeah. Over a period of time and you guys do great work with this, so >>Yeah. And you guys making, making all the right calls at VMware. All right. More coverage. I'm shot. Dave ante cube coverage day one of three days of world war cup here in Moscone west, the cube coverage of VMware Explorer, 22 be right back.

>>Hello. Welcome back to our super cloud 22 event. I'm John F host the cue with my co-host Dave ante. Extracting the signal from noise. We're proud to have two amazing cube alumnis here. We got Sanja Putin. Who's now the CEO of cohesive the emo Aaron who's the CTO. Co-founder also former CEO Cub alumni. The father of hyper-converged welcome back to the cube I endorsed the >>Cloud. Absolutely. Is the father. Great >>To see you guys. Thank thanks for coming on and perfect timing. The new job taking over that. The helm Mo it at cohesive big news, but part of super cloud, we wanna dig into it. Thanks for coming on. >>Thank you for having >>Us here. So first of all, we'll get into super before we get into the Supercloud. I want to just get the thoughts on the move Sanjay. We've been following your career since 2010. You've been a cube alumni from that point, we followed that your career. Why cohesive? Why now? >>Yeah, John David, thank you first and all for having us here, and it's great to be at your event. You know, when I left VMware last year, I took some time off just really primarily. I hadn't had a sabbatical in probably 18 years. I joined two boards, Phillips and sneak, and then, you know, started just invest and help entrepreneurs. Most of them were, you know, Indian Americans like me who were had great tech, were looking for the kind of go to market connections. And it was just a wonderful year to just de to unwind a bit. And along the, the way came CEO calls. And I'd asked myself, the question is the tech the best in the industry? Could you see value creation that was signi significant and you know, three, four months ago, Mohit and Carl Eschenbach and a few of the board members of cohesive called me and walk me through Mo's decision, which he'll talk about in a second. And we spent the last few months getting to know him, and he's everything you describe. He's not just the father of hyperconverge. And he wrote the Google file system, wicked smart, built a tech platform better than that second time. But we had to really kind of walk through the chemistry between us, which we did in long walks in, in, you know, discrete places so that people wouldn't find us in a Starbucks and start gossiping. So >>Why Sanjay? There you go. >>Actually, I should say it's a combination of two different decisions. The first one was to, for me to take a different role and I run the company as a CEO for, for nine years. And, you know, as a, as a technologist, I always like, you know, going deep into technology at the same time, the CEO duties require a lot of breadth, right? You're talking to customers, you're talking to partners, you're doing so much. And with the way we've been growing the with, you know, we've been fortunate, it was becoming hard to balance both. It's really also not fair to the company. Yeah. So I opted to do the depth job, you know, be the visionary, be the technologist. And that was the first decision to bring a CEO, a great CEO from outside. >>And I saw your video on the site. You said it was your decision. Yes. Go ahead. I have to ask you, cuz this is a real big transition for founders and you know, I have founder artists cuz everyone, you know, calls me that. But being the founder of a company, it's always hard to let go. I mean nine years as CEO, it's not like you had a, you had a great run. So this was it timing for you? Was it, was it a structural shift, like at super cloud, we're talking about a major shift that's happening right now in the industry. Was it a balance issue? Was it more if you wanted to get back in and in the tech >>Look, I, I also wanna answer, you know, why Sanja, but, but I'll address your question first. I always put the company first what's right for the company. Is it for me to start get stuck the co seat and try to juggle this depth and Brad simultaneously. I mean, I can stroke my ego a little bit there, but it's not good for the company. What's best for the company. You know, I'm a technologist. How about I oversee the technology part in partnership with so many great people I have in the company and I bring someone kick ass to be the CEO. And so then that was the second decision. Why Sanja when Sanjay, you know, is a very well known figure. He's managed billions of dollars of business in VMware. You know, been there, done that has, you know, some of the biggest, you know, people in the industry on his speed dial, you know, we were really fortunate to have someone like that, come in and accept the role of the CEO of cohesive. I think we can take the company to new Heights and I'm looking forward to my partnership with, with Sanja on this. >>It it's we, we called it the splash brothers and >>The, >>In the vernacular. It doesn't matter who gets the ball, whether it's step clay, we shoot. And I think if you look at some of the great partnerships, whether it was gates bomber, there, plenty of history of this, where a founder and a someone who was, it has to be complimentary skills. If I was a technologist myself and wanted to code we'd clash. Yeah. But I think this was really a match me in heaven because he, he can, I want him to keep innovating and building the best platform for today in the future. And our customers tell one customer told me, this is the best tech they've seen since VMware, 20 years ago, AWS, 10 years ago. And most recently this was a global 100 big customers. So I feel like this combination, now we have to show that it works. It's, you know, it's been three, four months. My getting to know him, you know, I'm day eight on the job, but I'm loving it. >>Well, it's a sluman model too. It's more modern example. You saw, he did it with Fred Ludy at service now. Yes. And, and of course at, at snowflake, yeah. And his book, you read his book. I dunno if you've read his book, amp it up, but app it up. And he says, I always you'll love this. Give great deference to the founder. Always show great respect. Right. And for good reason. So >>In fact, I mean you could talk to him, you actually met to >>Frank. I actually, you know, a month or so back, I actually had dinner with him in his ranch in Moana. And I posed the question. There was a number of CEOs that went there and I posed him the question. So Frank, you know, many of us, we grow being deaf guys, you know? And eventually when we take on the home of our CEO, we have to do breadth. How do you do it? And he's like, well, let me tell you, I was never a death guy. I'm a breath guy. >>I'm like, >>That's my answer. Yeah. >>So, so I >>Want the short story. So the day I got the job, I, I got a text from Frank and I said, what's your advice the first time CEO, three words, amp it up, >>Amp it up. Right? Yeah. >>And so you're always on brand, man. >>So you're an amazing operator. You've proven that time and time again at SAP, VMware, et cetera, you feel like now you, you, you wanna do both of those skills. You got the board and you got the operations cuz you look, you know, look at sloop when he's got Scarelli wherever he goes, he brings Scarelli with him as sort of the operator. How, how do you, how are you thinking >>About that? I mean it's early days, but yeah. Yeah. Small. I mean I've, you know, when I was, you know, it was 35,000 people at VMware, 80, 90,000 people at SAP, a really good run. The SAP run was 10 to 20 billion innovative products, especially in analytics and VMware six to 12 end user computing cloud. So I learned a lot. I think the company, you know, being about 2000 employees plus not to mayor tomorrow, but over the course next year I can meet everybody. Right? So first off the executive team, 10 of us, we're, we're building more and more cohesiveness if I could use that word between us, which is great, the next, you know, layers of VPs and every manager, I think that's possible. So I I'm a people person and a customer person. So I think when you take that sort of extroverted mindset, we'll bring energy to the workforce to, to retain the best and then recruit the best. >>And you know, even just the week we, we were announced that this announcement happened. Our website traffic went through the roof, the highest it's ever been, lots of resumes coming in. So, and then lots of customer engagement. So I think we'll take this, but I, I feel very good about the possibilities, because see, for me, I didn't wanna walk into the company to a company where the technology risk was high. Okay. I feel like that I can go to bed at night and the technology risk is low. This guy's gonna run a machine at the current and the future. And I'm hearing that from customers. Now, what I gotta do is get the, the amp it up part on the go to market. I know a little thing or too about >>That. You've got that down. I think the partnership is really key here. And again, nine use the CEO and then Sanja points to our super cloud trend that we've been looking at, which is there's another wave happening. There's a structural change in real time happening now, cloud one was done. We saw that transition, AWS cloud native now cloud native with an kind of operating system kind of vibe going on with on-premise hybrid edge. People say multi-cloud, but we're looking at this as an opportunity for companies like cohesive to go to the next level. So I gotta ask you guys, what do you see as structural change right now in the industry? That's disruptive. People are using cloud and scale and data to refactor their business models, change modern cases with cloud native. How are you guys looking at this next structural change that's happening right now? Yeah, >>I'll take that. So, so I'll start by saying that. Number one, data is the new oil and number two data is exploding, right? Every year data just grows like crazy managing data is becoming harder and harder. You mentioned some of those, right? There's so many cloud options available. Cloud one different vendors have different clouds. There is still on-prem there's edge infrastructure. And the number one problem that happens is our data is getting fragmented all over the place and managing so many fragments of data is getting harder and harder even within a cloud or within on-prem or within edge data is fragmented. Right? Number two, I think the hackers out there have realized that, you know, to make money, it's no longer necessary to Rob banks. They can actually see steal the data. So ransomware attacks on the rise it's become a boardroom level discussion. They say there's a ransomware attack happening every 11 seconds or so. Right? So protecting your data has become very important security data. Security has become very important. Compliance is important, right? So people are looking for data management solutions, the next gen data management platform that can really provide all this stuff. And that's what cohesive is about. >>What's the difference between data management and backup. Explain that >>Backup is just an entry point. That's one use case. I wanna draw an analogy. Let's draw an analogy to my former company, Google right? Google started by doing Google search, but is Google really just a search engine. They've built a platform that can do multiple things. You know, they might have started with search, but then they went down to roll out Google maps and Gmail and YouTube and so many other things on that platform. So similarly backups might be just the first use case, but it's really about that platform on which you can do more with the data that's next gen data management. >>But, but you am, I correct. You don't consider yourself a security company. One of your competitors is actually pivoting and in positioning themselves as a security company, I've always felt like data management, backup and recovery data protection is an adjacency to security, but those two worlds are coming together. How do you see >>It? Yeah. The way I see it is that security is part of data management. You start maybe by backing with data, but then you secure it and then you do more with that data. If you're only doing security, then you're just securing the data. You, you gotta do more with the data. So data management is much bigger. So >>It's a security is a subset of data. I mean, there you go. Big TA Sanjay. >>Well, I mean I've, and I, I, I I'd agree. And I actually, we don't get into that debate. You know, I've told the company, listen, we'll figure that out. Cuz who cares about the positioning at the bottom? My email, I say we are data management and data security company. Okay. Now what's the best word that describes three nouns, which I think we're gonna do management security and analytics. Okay. He showed me a beautiful diagram, went to his home in the course of one of these, you know, discrete conversations. And this was, I mean, he's done this before. Many, if you watch on YouTube, he showed me a picture of an ice big iceberg. And he said, listen, you know, if you look at companies like snowflake and data bricks, they're doing the management security and mostly analytics of data. That's the top of the iceberg, the stuff you see. >>But a lot of the stuff that's get backed archive is the bottom of the iceberg that you don't see. And you try to, if you try to ask a question on age data, the it guy will say, get a ticket. I'll come back with three days. I'll UNIV the data rehydrate and then you'll put it into a database. And you can think now imagine that you could do live searches analytics on, on age data that's analytics. So I think the management, the security, the analytics of, you know, if you wanna call it secondary data or backed up data or data, that's not hot and live warm, colder is a huge opportunity. Now, what do you wanna call one phrase that describes all of it. Do you call that superpower management security? Okay, whatever you wanna call it. I view it as saying, listen, let's build a platform. >>Some people call Google, a search company. People, some people call Google and information company and we just have to go and pursue every CIO and every CSO that has a management and a security and do course analytics problem. And that's what we're doing. And when I talk to the, you know, I didn't talk to all the 3000 customers, but the biggest customers and I was doing diligence. They're like this thing has got enormous potential. Okay. And we just have to now go focus, get every fortune 1000 company to pick us because this problem, even the first use case you talk back up is a little bit like, you know, razor blades and soap you've needed. You needed it 30 years ago and you'll need it for 30 years. It's just that the tools that were built in the last generation that were companies formed in 1990s, one of them I worked for years ago are aids are not built for the cloud. So I think this is a tremendous opportunity where many of those, those, those nos management security analytics will become part of what we do. And we'll come up with the right phrase for what the companies and do course >>Sanjay. So ma and Sanja. So given that given that's this Google transition, I like that example search was a data problem. They got sequenced to a broader market opportunity. What super cloud we trying to tease out is what does that change over from a data standpoint, cuz now the operating environments change has become more complex and the enterprises are savvy. Developers are savvy. Now they want, they want SAS solutions. They want freemium and expanding. They're gonna drive the operations agenda with DevOps. So what is the complexity that needs to be abstracted away? How do you see that moment? Because this is what people are talking about. They're saying security's built in, driven by developers. Developers are driving operations behavior. So what is the shift? Where do you guys see this new? Yeah. Expansive for cohesive. How do you fit into super cloud? >>So let me build up from that entry point. Maybe back up to what you're saying is the super cloud, right? Let me draw that journey. So let's say the legacy players are just doing backups. How, how sad is it that you have one silo sitting there just for peace of mind as an insurance policy and you do nothing with the data. If you have to do something with the data, you have to build another silo, you have to build another copy. You have to manage it separately. Right. So clearly that's a little bit brain damaged. Right. So, okay. So now you take a little bit of, you know, newer vendors who may take that backup platform and do a little bit more with that. Maybe they provide security, but your problem still remains. How do you do more with the data? How do you do some analytics? >>Like he's saying, right. How do you test development on that? How do you migrate the data to the cloud? How do you manage it? The data at scale? How do you do you provide a unified experience across, across multiple cloud, which you're calling the super cloud. That's where cohesive goes. So what we do, we provide a platform, right? We have tentacles in on-prem in each of the clouds. And on top of that, it looks like one platform that you manage. We have a single control plane, a UI. If you may, a single pin of glass, if, if you may, that our customers can use to manage all of it. And now it looks, starts looking like one platform. You mentioned Google, do you, when you go to, you know, kind Google search or a URL, do you really care? What happens behind the scenes mean behind the scenes? Google's built a platform that spans the whole world. No, >>But it's interesting. What's behind the scenes. It's a beautiful now. And I would say, listen, one other thing to pull on Dave, on the security part, I saw a lot of vendors this day in this space, white washing a security message on top of backup. Okay. And CSO, see through that, they'll offer warranties and guarantees or whatever, have you of X million dollars with a lot of caveats, which will never paid because it's like escape clause here. We won't pay it. Yeah. And, and what people really want is a scalable solution that works. And you know, we can match every warranty that's easy. And what I heard was this was the most scalable solution at scale. And that's why you have to approach this with a Google type mindset. I love the fact that every time you listen to sun pitch, I would, what, what I like about him, the most common word to use is scale. >>We do things at scale. So I found that him and AUR and some of the early Google people who come into the company had thought about scale. And, and even me it's like day eight. I found even the non-tech pieces of it. The processes that, you know, these guys are built for simple things in some cases were better than some of the things I saw are bigger companies I'd been used to. So we just have to continue, you know, building a scale platform with the enterprise. And then our cloud product is gonna be the simple solution for the masses. And my view of the world is there's 5,000 big companies and 5 million small companies we'll push the 5 million small companies as the cloud. Okay. Amazon's an investor in the company. AWS is a big partner. We'll talk about I'm sure knowing John's interest in that area, but that's a cloud play and that's gonna go to the cloud really fast. You not build you're in the marketplace, you're in the marketplace. I mean, maybe talk about the history of the Amazon relationship investing and all that. >>Yeah, absolutely. So in two years back late 2020, we, you know, in collaboration with AWS who also by the way is an investor now. And in cohesive, we rolled out what we call data management as a service. It's our SaaS service where we run our software in the cloud. And literally all customers have to do is just go there and sign on, right? They don't have to manage any infrastructure and stuff. What's nice is they can then combine that with, you know, software that they might have bought from cohesive. And it still looks like one platform. So what I'm trying to say is that they get a choice of the, of the way they wanna consume our software. They can consume it as a SAS service in the cloud. They can buy our software, manage it themselves, offload it to a partner on premises or what have you. But it still looks like that one platform, what you're calling a Supercloud >>Yeah. And developers are saying, they want the bag of Legos to compose their solutions. That's the Nirvana they want to get there. So that's, it has to look the same. >>Well, what is it? What we're calling a Superlo can we, can we test that for a second? So data management and service could span AWS and on-prem with the identical experience. So I guess I would call that a Supercloud I presume it's not gonna through AWS span multiple clouds, but, but >>Why not? >>Well, well interesting cuz we had this, I mean, so, okay. So we could in the future, it doesn't today. Well, >>David enough kind of pause for a second. Everything that we do there, if we do it will be customer driven. So there might be some customers I'll give you one Walmart that may want to store the data in a non AWS cloud risk cuz they're competitors. Right. So, but the control plane could still be in, in, in the way we built it, but the data might be stored somewhere else. >>What about, what about a on-prem customer? Who says, Hey, I, I like cohesive. I've now got multiple clouds. I want the identical experience across clouds. Yeah. Okay. So, so can you do that today? How do you do that today? Can we talk >>About that? Yeah. So basically think roughly about the split between the data plane and the control plane, the data plane is, you know, our cohesive clusters that could be sitting on premises that could be sitting in multiple data centers or you can run an instance of that cluster in the cloud, whichever cloud you choose. Right. That's what he was referring to as the data plane. So collectively all these clusters from the data plane, right? They stored the data, but it can all be managed using the control plane. So you still get that single image, the single experience across all clouds. And by the way, the, the, the, the cloud vendor does actually benefit because here's a customer. He mentioned a customer that may not wanna go to AWS, but when they get the data plane on a different cloud, whether it's Azure, whether it's the Google cloud, they then get data management services. Maybe they're able to replicate the data over to AWS. So AWS also gains. >>And your deployment model is you instantiate the cohesive stack on each of the regions and clouds, is that correct? And you building essentially, >>It all happens behind the scenes. That's right. You know, just like Google probably has their tentacles all over the world. We will instantiate and then make it all look like one platform. >>I mean, you should really think it's like a human body, right? The control planes, the head. Okay. And that controls everything. The data plane is large because it's a lot of the data, right? It's the rest of the body, that data plane could be wherever you want it to be. Traditionally, the part the old days was tape. Then you got disk. Now you got multiple clouds. So that's the way we think about it. And there on that piece of it will be neutral, right? We should be multi-cloud to the data plane being every single place. Cause it's customer demand. Where do you want your store data? Air gapped. On-prem no problem. We'll work with Dell. Okay. You wanna be in a particular cloud, AWS we'll work then optimized with S3 and glacier. So this is where I think the, the path to a multi-cloud or Supercloud is to be customer driven, but the control plane sits in Amazon. So >>We're blessed to have a number of, you know, technical geniuses in here. So earlier we were speaking to Ben wa deja VI, and what they do is different. They don't instantiate an individual, you know, regions. What they do is of a single global. Is there a, is there an advantage of doing it the way the cohesive does it in terms of simplicity or how do you see that? Is that a future direction for you from a technology standpoint? What are the trade offs there? >>So you want to be where the data is when you said single global, I take it that they run somewhere and the data has to go there. And in this day age, correct >>Said that. He said, you gotta move that in this >>Day and >>Age query that's, you know, across regions, look >>In this day and age with the way the data is growing, the way it is, it's hard to move around the data. It's much easier to move around the competition. And in these instances, what have you, so let the data be where it is and you manage it right there. >>So that's the advantage of instantiating in multiple regions. As you don't have to move the >>Data cost, we have the philosophy we call it. Let's bring the, the computation to the data rather than the data to >>The competition and the same security model, same governance model, same. How do you, how do you federate that? >>So it's all based on policies. You know, this overarching platform controlled by, by the control plane, you just, our customers just put in the policies and then the underlying nuts and bolts just take care >>Of, you know, it's when I first heard and start, I started watching some of his old videos, ACE really like hyperconverged brought to secondary storage. In fact, he said, oh yeah, that's great. You got it. Because I first called this idea, hyperconverged secondary storage, because the idea of him inventing hyperconverge was bringing compute to storage. It had never been done. I mean, you had the kind of big VC stuff, but these guys were the first to bring that hyperconverge at, at Nutanix. So I think this is that same idea of bringing computer storage, but now applied not to the warm data, but to the rest of the data, including a >>Lot of, what about developers? What's, what's your relationship with developers? >>Maybe you talk about the marketplace and everything >>He's yeah. And I'm, I'm curious as to do you have a PAs layer, what we call super PAs layer to create an identical developer experience across your Supercloud. I'm gonna my >>Term. So we want our customers not just to benefit from the software that we write. We also want them to benefit from, you know, software that's written by developers by third party people and so on and so forth. So we also support a marketplace on the platform where you can download apps from third party developers and run them on this platform. There's a, a number of successful apps. There's one, you know, look like I said, our entry point might be backups, but even when backups, we don't do everything. Look, for instance, we don't backup mainframes. There is a, a company we partner with, you know, and their software can run in our marketplace. And it's actually used by many, many of our financial customers. So our customers don't get, just get the benefit of what we build, but they also get the benefit of what third parties build. Another analogy I like to draw. You can tell. And front of analogy is I drew an analogy to hyperscale is like Google. Yeah. The second analogy I like to draw is that to a simple smartphone, right? A smartphone starts off by being a great phone. But beyond that, it's also a GPS player. It's a, it's a, it's a music player. It's a camera, it's a flashlight. And it also has a marketplace from where you can download apps and extend the power of that platform. >>Is that a, can we think of that as a PAs layer or no? Is it really not? You can, okay. You can say, is it purpose built for what you're the problem that you're trying to solve? >>So we, we just built APIs. Yeah. Right. We have an SDK that developers can use. And through those APIs, they get to leverage the underlying services that exist on the platform. And now developers can use that to take advantage of all that stuff. >>And it was, that was a key factor for me too. Cause I, what I, you know, I've studied all the six, seven players that sort of so-called leaders. Nobody had a developer ecosystem, nobody. Right? The old folks were built for the hardware era, but anyones were built for the cloud to it didn't have any partners were building on their platform. So I felt for me listen, and that the example of, you know, model nine rights, the name of the company that does back up. So there's, there's companies that are built on and there's a number of others. So our goal is to have a big tent, David, to everybody in the ecosystem to partner with us, to build on this platform. And, and that may take over time, but that's the way we're build >>It. And you have a metadata layer too, that has the intelligence >>To correct. It's all abstract. That that's right. So it's a combination of data and metadata. We have lots of metadata that keeps track of where the data is. You know, it allows you to index the data you can do quick searches. You can actually, you, we talking about the control plan from that >>Tracing, >>You can inject a search that'll through search throughout your multi-cloud environment, right? The super cloud that you call it. We have all that, all that goodness sounds >>Like a Supercloud John. >>Yeah. I mean, data tracing involved can trace the data lineage. >>You, you can trace the data lineage. So we, you know, provide, you know, compliance and stuff. So you can, >>All right. So my final question to wrap up, we guys, first of all, thanks for coming on. I know you're super busy, San Jose. We, we know what you're gonna do. You're gonna amp it up and, you know, knock all your numbers out. Think you always do. But what I'm interested in, what you're gonna jump into, cuz now you're gonna have the creative license to jump in to the product, the platform there has to be the next level in your mind. Can you share your thoughts on where this goes next? Love the control plane, separate out from the data plane. I think that plays well for super. How >>Much time do you have John? This guy's got, he's got a wealth. Ditis keep >>Going. Mark. Give us the most important thing you're gonna focus on. That kind of brings the super cloud and vision together. >>Yeah. Right away. I'm gonna, perhaps I, I can ion into two things. The first one is I like to call it building the, the machine, the system, right. Just to draw an analogy. Look, I draw an analogy to the us traffic system. People from all walks of life, rich, poor Democrats, Republicans, you know, different states. They all work in the, the traffic system and we drive well, right. It's a system that just works. Whereas in some other countries, you know, the system doesn't work. >>We know, >>We know a few of those. >>It's not about works. It's not about the people. It's the same people who would go from here to those countries and, and not dry. Well, so it's all about the system. So the first thing I, I have my sights on is to really strengthen the system that we have in our research development to make it a machine. I mean, it functions quite well even today, but wanna take it to the next level. Right. So that I wanna get to a point where innovation just happens in the grassroots. And it just, just like >>We automations scale optic brings all, >>Just happens without anyone overseeing it. Anyone there's no single point of bottleneck. I don't have to go take any diving catches or have you, there are people just working, you know, in a decentralized fashion and innovation just happens. Yeah. The second thing I work on of course is, you know, my heart and soul is in, you know, driving the vision, you know, the next level. And that of course is part of it. So those are the two things >>We heard from all day in our super cloud event that there's a need for an, an operating system. Yeah. Whether that's defacto standard or open. Correct. Do you see a consortium around the corner potentially to bring people together so that things could work together? Cuz there really isn't no stand there. Isn't a standards bodies. Now we have great hyperscale growth. We have on-prem we got the super cloud thing happening >>And it's a, it's kind of like what is an operating system? Operating system exposes some APIs that the applications can then use. And if you think about what we've been trying to do with the marketplace, right, we've built a huge platform and that platform is exposed through APIs. That third party developers can use. Right? And even we, when we, you know, built more and more services on top, you know, we rolled our D as we rolled out, backup as a service and a ready for thing security as a service governance, as a service, they're using those APIs. So we are building a distributor, putting systems of sorts. >>Well, congratulations on a great journey. Sanja. Congratulations on taking the hem. Thank you've got ball control. Now you're gonna be calling the ball cohesive as they say, it's, >>It's a team. It's, you know, I think I like that African phrase. If you want to go fast, you go alone. If you wanna go far, you go together. So I've always operated with the best deal. I'm so fortunate. This is to me like a dream come true because I always thought I wanted to work with a technologist that frees me up to do what I like. I mean, I started as an engineer, but that's not what I am today. Right? Yeah. So I do understand the product and this category I think is right for disruption. So I feel excited, you know, it's changing growing. Yeah. No. And it's a, it requires innovation with a cloud scale mindset and you guys have been great friends through the years. >>We'll be, we'll be watching you. >>I think it's not only disruption. It's creation. Yeah. There's a lot of white space that just hasn't been created yet. >>You're gonna have to, and you know, the proof, isn't the pudding. Yeah. You already have five of the biggest 10 financial institutions in the us and our customers. 25% of the fortune 500 users, us two of the biggest five pharmaceutical companies in the world use us. Probably, you know, some of the biggest companies, you know, the cars you have, you know, out there probably are customers. So it's already happening. >>I know you got an IPO filed confidentially. I know you can't talk numbers, but I can tell by your confidence, you're feeling good right now we are >>Feeling >>Good. Yeah. One day, one week, one month at a time. I mean, you just, you know, I like the, you know, Jeff Bezos, Andy jazzy expression, which is, it's always day one, you know, just because you've had success, even, you know, if, if a and when an IPO O makes sense, you just have to stay humble and hungry because you realize, okay, we've had a lot of success in the fortune 1000, but there's a lot of white space that hasn't picked USS yet. So let's go, yeah, there's lots of midmarket account >>Product opportunities are still, >>You know, I just stay humble and hungry and if you've got the team and then, you know, I'm really gonna be working also in the ecosystem. I think there's a lot of very good partners. So lots of ideas brew through >>The head. Okay. Well, thank you so much for coming on our super cloud event and, and, and also doubling up on the news of the new appointment and congratulations on the success guys. Coverage super cloud 22, I'm sure. Dave ante, thanks for watching. Stay tuned for more segments after this break.

>>Good morning from New York city, Lisa Martin and John furrier with the cube. We are at AWS summit NYC. This is a series of summits this year, about 15 summit globally. And we're excited to be here, John, with about 10,000 folks. >>It's crowded. New York is packed big showing here at 80 of us summit. So it's super exciting, >>Super exciting. Just a little bit before the keynote. And we have our first guest, Kevin Farley joins us the director of strategic alliances at Maria DB. Kevin, welcome to >>The program. Thank you very much. Appreciate you guys having us. >>So all of us out from California to NYC. Yeah, lots of eyes. We got keynote with Warner Vogels coming up. We should be some good news, hopefully. Yep. But talk to us about Maria DB Skys cloud native version released a couple years ago. What's going on? >>Yeah, well, it's, you know, Skys SQL for us is really a be on the future. I think when we think about like the company's real mission is it's just creating a database for everyone. It's it's any cloud, any scale, um, any size of performance and really making sure that we're able to deliver on something that really kind of takes advantage of everything we've done in the market to date. If you think about it, there's not very many startups that have a billion downloads and 75% of the fortune 500 already using our service. So what we're really thinking about is how do we bridge that gap? How do we create a natural path for all of these customers? And if you think about not just Maria DB, but anyone else using the sequel query language, all the, my people, what I think most Andy jazzy TK, anyone says, you know, it's about 10% of the market currently is in the clouds. That's 90% of a total addressable market that hasn't done it yet. So creating cloud modernization for us, I think is just a huge opportunity. Do >>You guys have a great history with AWS? I want to just step back, you mentioned some stats on, on success. Can you scope the size and track record of Maria DB for us real quick and set the table? Because I think there's a bigger picture going on that we've been tracking for the past 13 years we address is the role of the database has always been one of those things where they didn't believe a one database fits all things, right. You guys have been part of that track record scope, the size and scale of Maria DB, the usage, the use cases and some of the successes. >>Yeah. I mean, like I said, some of the stats are already threw out there. So, you know, it is pervasive, I think is the best way to put it. I think what you look at what the database market really became is very siloed. Right? I think there was a lot of unique solutions that were built and delivered that had promise, but they also had compromise. And I think once you look at the landscape of a lot of fortune 500 companies, they have probably 10 to 15 different database solutions, right? And they're all doing unique things. They're difficult to manage. They're very costly. So what Marie DB is always kind of focused on is how do we continue to build more and more functionality into the database itself and allow that to be a single source of truth where application developers can seamlessly integrate applications. >>So then the theme of this event in New York city, which is scale dot, dot, dot, anything must align quite well with Maria and your >>Objectives. I mean, honestly, I think when I think of the problems that most database, um, companies, um, face customers, I should say it, it really comes down to performance and scale. Most of them like Maria DB, like you said, they it's like the car, you know, and love you've been driving it for years. You're an expert at it. It works great, but it doesn't have enough range. It doesn't go fast enough. It's hitting walls. That modern data requirements are just breaking. So scale for me is the favorite thing to talk about because what we launched as MariaDB expand, which is a plugable storage engine that is integrated into Skye, and it really gives you dynamic scale. So you can scale in, you can scale out, it's not costly compute to try to get for seasonality. So you can make your black Friday numbers. It's really about the dexterity to be able to come in and out as you need in a share, nothing architecture with full failover sale healing, high availability, married to the cloud for full cloud scale. And that's really the beauty of the AWS partnership. >>Can you elaborate a bit more on the partnership? How long have you guys been partners? Where is it now anything exciting coming out? >>Yeah, it it's, it's actually been a wonderful ride. They've really invested from the very beginning we went for the satisfactory. So they really brought a lot of resources to bear. And I think if you're looking at why it works, um, it's probably two things. I think the number one thing is that we share one of the core tenants and it's customer obsession in a, in a, in an environment where there is co-opetition right. You have to find paths for how do you get the best thing for the customer? And the second is pretty obvious, but if you look at any major cloud, their number one priority is getting large mission critical workloads into their cloud because the revenue is exponential on the backside. So what do we own? Large mission critical workloads. So if you marry that objective with AWS, the partnership is absolutely perfect for driving true revenue, growth scale, and, and revenue across, across both entities in the partner ecosystem. >>So Kevin talk about the, um, the hybrid strategy, cuz you're seeing cloud operations. Yep. Go hybrid. Amazon announced AWS announced outpost like four years ago. Right now edge is super hot. Yeah. So you're seeing like most of the enterprise is saying mm-hmm <affirmative> okay. Love cloud love the cloud database, but I got the on-prem hybrid cloud operations. Right. So it's not just proprietary operations. It's cloud ops. Yeah. How do you guys fit into that? What's the story. >>We, we actually it's. I mean, there's, there's all these new deliverables outposts, you know, come out with a promise. What we have is a reality right now, um, one of the largest, um, networking companies, which I can't mention yet publicly, um, we want a really big sky SQL deal, but what they had manufacturing plants, they needed to have on-prem deployments. So Maria DB naturally syncs with sky SQL. It's the same technology. It works in perfect harmony. So we really already deliver on the promise of hybrid, but of course there's a lot more we can grow in that area. And certainly thinking about app posts and other solutions, um, is definitely on the, the longer term roadmap of what could make sense for in our customer. What, >>What are some of the latest things that, that you guys are doing now that you weren't doing a few years ago that customers should know about the audience should know about? >>I mean, I think the game changer, we're always innovating. I mean, when you're the company that writes the code owns the code, you know, we can do hot fixes, we can do security patches, we can always do the things that give you real time access to what you need. But I think the game changer is what I mentioned a little bit earlier. And I think it's really the, the holy grail of the cloud. It's like, how can we take the, the SQL query language, which is well over 50% of the open source market. Right. And how do we convert that seamlessly into the cloud? How do we help you modernize on that journey? And expand gives you the ability to say, I can be the small, I can be a small startup. I got my C round. I don't wanna manage databases. I can use the exact same service as the largest fortune 100 company that has massive global scale and needs to be able to drive that across globe. Yeah. So I think that's the beauty is that it's really a democratization of the database, >>At least that, you know, we've been covering the big data space for 10 years. Remember all those different conversations had do those days and oh, they have big data and right. But then it's like too hard to set up. Then you had that kind of period where you saw a spark and data lakes emerge. Yeah. Then you, now it almost seems, seems like now more than ever, there's a data revolutions back. Right. It was almost like a lull in the, in, in the, in the market a little bit. Yeah. I'm gonna democratize data science right now. You got data. So now it just seems to be an explosion at that level. What's your analysis on that? Because you you've been in, in, in the weeds and in the, in the, in this market for 10 years. Yeah. And nothing really changed. It's just now it's more ready. Yeah. I think what's your observation. Why >>Is that? I think that's a really good question. And I love it cuz I mean, what the promise of things like could do and net new technologies sort of, it was always out there, but it required this whole net new lift and how do I do it? How do I manage it? How do I optimize it? The beauty of what we can do with Maria DB is that sky SQLs, which you already know and love. Right? And now we can Del you can deliver a data lake on S3, right? You can pull that data. And we also have the ability to do both analytical data and transactional data from the same database. So you can write applications that can pull column, store data up into, um, your application, but you can also have all of your asset transactions, which are absolutely required for all of your mission critical business. So I think that we're seeing more and more adoption. You've seen other companies start to talk about bringing the different elements in, but we're the only ones that really >>Do it and SQL standardizing that front end. Yeah. Even better than ever before. All the stuff under the covers is all being connected. >>That's the awesome part is right. Is you're literally doing what you already know how to do, but you blow it out on the back end, married to the cloud. And that I think is the real revolution of what makes usability real in the data space. And I think that's what was always the problem before >>When you're in partner conversations, you mentioned co-opetition. Yeah. <laugh> so I think when you're in partner conversations and customer conversations, there is a lot of the, the there's a lot of competition out there. Absolutely. Everyone's got their own key messages. What are the key differentiators that you're saying AWS Marie to be together better? And here's why, >>Yeah. I, I think that certainly you, you start with the global footprint of AWS, right? So what we rely on the most is having the ability to truly deal with global customers in availability zones, they're gonna optimize performance from them. But then when we look at what we do that really changes the game, it comes down to scale and performance. We actually just ran, um, a suspense test against cockroach that also does distributed sequel. Absolutely. You know, the results were off the chart. So we went public and said, we have an open challenge. Anyone that wants to try to beat, um, expand and Skye will we'll if you can, we'll put $25,000 towards charity. So we really are putting our money where our mouth is on that challenge. So we believe the performance cuz we've seen it and we know it's real, but then it's really always about data scale. Modern data requirements are breaking the mold of charting. They're breaking the mold of all these bandaids that people have put in these traditional services. And we give them future. We, we feature proof their investments, so they can say, Hey, I can start here. But if I end up being a startup that becomes Airbnb, I'm already built to blow it out on the back end. I can already use what I have. >>Speaking of startups, being the next Airbnb. If you look at behind us here, you can see, this is a really packed event in New York city events are back, but the ecosystem here is even flourishing. So Dave and I and Lisa were observing that we're still kind of in a growth mode, big time. So yeah, there's some market forces headwinds for the big unicorns, overfunded, you know, public companies, maybe the valuations are a little bit off, but there's still a surge of new innovations, new companies coming out of this. Um, and it's all around data and scale. It's all around new names. We've never heard of. Absolutely. What's your take on >>Reaction? Well, actually another awesome segues cuz in addition to the public clouds, I manage the ecosystem. And one of the things that we've really been focused on with Skys SQL is making it accessible API accessible. So if you're a company that has a huge Marine DB footprint change data capture might be the most important thing for you to say, we wanna do this, but we want you to stay in sync with our environments. Um, things like monitoring, things like BI, all of these are ecosystem plays and current partners that we have, um, that we really think about how do you holistically look at not only the database and what it can do, but how does it deliver value to different segments of your customer base or just your employee base that are using that stuff? So I think that's huge for us. >>Well, you know, one of the things that we talk often about is that every company, these days, regardless of industry, has to be a data company. Yep. You've gotta be able to access the data glean insights from an act on it quickly, whether it's manufacturing, retail, healthcare, are there any verticals in where Maria DB really excels? >>Um, so certainly we Excel in areas like financial services is huge DBS bank. Um, in APAC, one of our biggest customers, also one of the largest Oracle migrations, probably the, that we've ever done. A lot of people trying to get off Oracle, we make it seamless to get into Maria DB. Um, you can think about Samsung cloud and another, their entire consumer cloud is built on Maria DB, why it's integrated with expand right seasonality. So there's customers like that that really bring it home for us as far as ServiceNow tech sector. Right? So these are all different ones, but I think we're really strong in those >>Areas. So this brings up a good point. Dave and I a coined a term called super cloud at reinvent and Lisa and Dave were at multiple events we're together at events. And so a lot of people are getting behind this cuz it's multi-cloud sounds like something's broken. Yes. But so we call it super cloud because customers are building on top of ecosystems like Maria DB and others. Yeah. Not just AWS SOS does all the CapEx absolutely provide the value. So now people are having this new super cloud moment. We' saying we can get all the benefits of cloud scale mm-hmm <affirmative> without actually being a cloud. Right. So this is where the next gen layer comes. What's your reaction to, to super cloud. Do you think it's a thing? >>Well, I think it's a thing in the sense, from our perspective as an ISV, we're, we're laser focused on making sure that we support any cloud and we have a truly multicloud cloud platform. But the beauty of that as well is from a single UI, you're able to deploy databases in different clouds underneath that you're not looking at so you can have performance proximity, but you're still driving it through the same Skys UI. So for us it's, it's unequivocally true. Got it. And I think it's only ISVs like Maria DB that can deliver on that value because >>You're enabling, >>We're enabling it. Right. We partner, we build on top of everything. Right. So we can access everything underneath >>And they can then build on top of you. >>Sure, exactly. And that's exactly where it goes. Right? Yeah. So that, I think in that sense, the super cloud is actually already somewhat real. >>It's interesting. You look at the old, it spend, you take a big company. I won't say a name, but a leader in a, a vertical, they have such a big spend. Now they can leverage that spend in with the super cloud model. They then could become a service provider in the vertical. Absolutely capital one S doing it. Yeah. You're seeing, um, Goldman Sachs doing it. They have the power on the spend that they're leveraging in for their business and servicing their vertical and the smaller players. Do you see that trend? >>Well, I think that's the reality is that everyone is getting this place where if you're talking about sort of this broader super concept, you're talking about global scale, right? That's if in order to deliver a backbone that can service that model, you have to have the right data structure and the right database footprint to be able to scale. And I think that's what they all need to be able to do. And that's what we're really well positioned with Skys >>To enable companies, as we talked about a minute ago to truly become data companies. Yeah. And to be competitive and to scale on their own, where are your customer conversations? Are they at the C-suite level? Has that changed in the last couple of years? >>Uh, that's actually a really great way to state that question because I think you would've traditionally probably talked more to, um, the DBAs, right? They're the people that are having headaches. They're having problems. They're, they're trying to solve. We see a lot of developers now tons, right? They're thinking about, I have this, I have this new thing that I need to do to deliver this new application. And here's the requirements and the current model's broken. It doesn't optimize that it's a lot of work and it's hard to manage. So I think that we're in a great position to be able to take that to that next phase and deliver. And then of course, as you get deeper in with AWS, you're talking about, you know, CIO level, CISO level, they're they need to understand how do you fit into our larger paradigm. And many of these guys have, you know, hundreds of million dollar commits with AWS. So they think of their investment in the sense of the cloud stack. And we're part of that cloud stack, just like AWS services. So those conversations continue to happen certainly with our larger customers, cuz it truly is married. >>It is. And they continue to evolve. Kevin, thank you so much >>For joining. You're welcome. Great, >>John and me talking about what's going on with Maria >>D. Thank you, John. Thank you, Lisa. On behalf of Maria B, it was wonderful. Really >>Appreciate it. Fantastic as well for John furrier. I'm Lisa Martin. You're watching the cube live from New York city at AWS summit NYC, John and I we're back with our next guest in a minute.

>>Okay, welcome back everyone. Cube's coverage here. Live on the floor at AWS summit, 2022, an in person event in San Francisco. Of course, AWS summit, 2022 in New York city is coming up this summer. The cube will be there as well. Make sure you check us out then too, but we day two of coverage had a great guest here. I Han VP of developer relations, Mongo DB, formally of AWS. We've been known each other for a long time doing, uh, developer relations at Mongo DB. Welcome to the queue. Good to see >>You. Thank to be here. Thanks for inviting me, John. It's great >>To, so Mongo DB is, um, first of all, stocks' doing really well right now. Businesswise is good, but I still think it's undervalue. A lot of people think is, is a lot more going huge success with Atlas. So congratulations to the team over there. Um, what's the update? What's the relationship withs, you know, guys have been great partners for years. What's the new thing. Yeah. >>So MongoDB Atlas obviously runs on several different major cloud providers, but AWS is the largest partner that we work with in the public cloud. So the majority of our Atlas workloads for our customers are running on the AWS platform. And just earlier this year, we announced a new strategic collaboration agreement with AWS. That's gonna further strengthen and deepen that partnership that we have with them. >>What's the main product value right now on the scale on, on Atlas, what's the drive in the revenue momentum. >>So, I mean, you know, there's a huge trend in the industry towards cloud managed databases, right? You look back 10, 15 years ago when we first met, most customers were only and operating their own data infrastructure, either running it in their own data centers, or maybe if they were really early using the primitives that cloud providers like AWS offered to run their databases in the cloud when Amazon launched RDS back in 2009, I think it was, we started to see this trend towards cloud managed databases. We followed that with our own Atlas offering back in 2016. And as Andy jazzy from AWS would say very often it's offloading that UND differentiated, heavy lifting, allowing developers to focus on building applications. They don't have to win and operate the data infrastructure. We do it for them, and that has proven incredibly popular amongst our customers. You know, Atlas route right now is growing at 50, sorry, 85% car year on year growth. >>You know, um, I've been following MongoDB for a long, long time. I mean, going back to the lamp stack days, you know, and you think about what Mongo has done as a product because of the developer traction, you know, Mongo can't do this, just keeps getting better every year. And, and the, I think the stickiness with developers is a real big part of that. Can you your view there cuz you're in VE relations. I mean, developers all love Mongo. They're teaching in school. People are picking up a side hustles, they're coding on it, using it all everywhere. I mean it's well known. >>There's a few different reasons for that. I think the main one is the, the document orientated model that we use, the document data models that are used by Mongo DB, just a net way for developers to work with data. And then, uh, we've invested in creating 16 first party drivers that allow developers using various different programming languages, whether that's JavaScript or Python or rust to integrate MongoDB, natively and idiomatic with their software. So it's very, very easy for a developer to pick up MongoDB, grab one of these drivers from their package manager of their choice and then build applications that natively manipulate data inside MongoDB, whether that's MongoDB Atlas or our enterprise edition on their own premises. They get a very consistent and very easy to, I easy to use developer experience with our, with our platform. >>Talk about the go to market with AWS. You guys also have a tightly coupled relationships. There's been announcements there recently. Uh, what's changing most right now that people should pay attention to. Well, >>The first thing is there's a huge amount of technical integration between MongoDB and AWS services. And that's the basis for many of our customers choosing to run Mon Mongo DB on AWS. We're active in 23 AWS regions around the world. And there's many other integration points as well, like cryptographic protection of Mongo MongoDB, stored data using Amazon cryptographic services, for example, or building serverless applications with AWS Lambda and MongoDB servers. So there's a ton of technical integration. Yeah, but what we started to work on now is go to market integration with AWS as well. So you can buy Mongo DB Atlas through AWS's marketplace. You can use the payer, you go offering to pay for it with your AWS bill. And then we're collaborating with AWS on migrations and other joint go to market activities as well. That >>Means get incentives, the sales people at AWS. >>Of course our moreover I mean, it's just really easy for customers, really easy for developers to consume. Yeah, they don't need to contract with MongoDB. They can use their existing AWS contracting, their existing discounting relationships and pre purchasing arrangements with AWS to consume Atlas. >>It's the classic meet the customers where they >>Are exactly right. Meet the developer where they are and meet the customers where they are now with this new model as well. >>Yeah. I love marketplace. I think it's been great. You know, even with its kind of catalog and vibe, I think it's gonna get better and better, uh, over there teams doing good work. Um, and it's easy to consume. That's key. >>Yeah. Super easy. Reduce that friction and make it real easy for developers to adopt this. Right. >>Talk about some of the top customers that you guys share with AWS. What are some of the customers you guys have together and what the benefits of the >>Relationship joint references that we talk about? A lot, one of them is Shutterfly. So in the photographic products area, they built a eCommerce offering with MongoDB and AWS. The second is seven 11 with seven 11. We're doing a lot in the mobile space. So edge applications, we've got a feature in MongoDB Atlas that allows you to synchronize data with databases on mobile devices. Those can be phones point of sale devices or handheld devices that might be used in the parcel industry, for example. So seven 11 using us in that way. And then lastly with Pitney Bowes, we've got a big digital transformation project with Pitney Bowes where they've reimagined their, uh, postage and packaging services, delivering those to their customers, using MongoDB as a data store as well. >>I wanna get in some of the trends, you've got a great per you know, you know, Mongo from Amazon side and now you're there. Um, Mongo's, as you pointed out has, has been around for a long time. What are some of the stats? I mean, how many customers, how many countries? Well, it's pretty massive >>Mind. We've got almost quarter of a billion downloads today, 240 million MongoDB downloads since we launched the first product <laugh>, we've got 33,000 active customers that are using MongoDB Atlas today and we're running well over a million free tier clusters on MongoDB Atlas across all of the different providers where we operate the service as well. So these numbers are, you know, mind blowing in terms of scale. Uh, but of course at the core of that is operational excellence. Customers love Mongo DBS because they don't have to operate it themselves. They don't have to deal with fairly conditions. They don't have to deal with scaling. They don't have to deal with deployment. We all, we do all of those things as part of the service offering and customers get an endpoint that they can use with their applications to store and retrieve data reliably. And with consistently high perform, >>You know, it's, you know, in the media, something has to be dead. Someone's the death of the iPhone, the death of this, nothing that really dies. Mongo DB has always been kind of like talked about, well, it doesn't scale on the high end. Of course, Oracle was saying that, I mean, all the, all the big database vendors were kind of throwing darts at, at Mongo, uh, DB, uh, but it kept scaling. Atlas is a whole nother. Could you just unpack that a little bit more? Why is it so important? Because scale is just, I mean, it's, it's horizontal, but it's also performant. >>Exactly. Right. So with, uh, Mongo DB's document access model that I've described already, you break some of the limitations that exist inside traditional relational databases. So, you know, they don't scale well, if you've got high concurrent and see of data access, and they're typically difficult and expensive to scale because you need to share data. Once you grow beyond individual cluster nodes, and you'll know that all relational databases suffer from these same kinds of issues with non relational systems, no SQL systems like MongoDB, you have to think a little bit more about design at the beginning. So designing database to cater for the different access patterns that you have, but in return for that upfront preparation, that design work, you get near limitless, scalability and performance will scale nearly linearly with that scalability as well. So very much more high performance, very much more simplicity for the developer as their database gets larger and their cluster gets larger to support it. >>Yeah. You know, Amazon web service has always had an a and D jazz. We talk to us all the time, every interview I've done with Swami and Matt wood or whoever on the team and executive levels always said the same thing. There's not one database to rule the world, right? Obvious you're talking about Oracle, but even within AWS customers, they're mixing and matching databases based on use cases. So in distributed environment, they're all working together. So, um, you guys fit nicely into that. So how does that, >>I think strategy slightly counterbalances that so, you know, they would say use the specific tool for the specific task that you have in hand. Yeah. What we try to focus on is creating the simple and most effective developer experience that we can, and then supporting different facets to the product in order to allow developers to different use cases. A really good example with something like MongoDB Atlas search. So we integrated Apache Luine into MongoDB Atlas. Customers can very simply apply Apache Luine search indexes to the data that they've got in MongoDB. And then they can interact with that search data using the same drivers as an API. Yeah, yeah. That they use for regular queries. So if you want to run search on your application data, you don't need a separate open search or elastic search cluster, just turn on MongoDB Atlas search and use that, that search facet. So it's interest and we have other capabilities that it's >>Vertically integrating inside within Mongo, >>Correct? Yes. That's better. Yeah. With the guy, all of creating a really simple and effective developer experience, boosting developer productivity and helping developers get more done in less time. >>You mentioned serverless earlier, what's the serverless angle with AWS when Mongo, >>Is there one? Yeah. So we have MongoDB serverless currently in preview, uh, has the same kind of characteristics that you would, or the characteristics that you would expect from a serverless data base. So consumption based model, you provision an endpoint and that will scale elastically in accordance with your usage and you get billed by consumption units so much like the serverless paradigm that we've seen delivered by AWS, the same kind of model for Mongo, DB, Atlas serverless. >>What, what attracted you to Mongo DBS? So you knew them before, or you moved over there. Um, what's going on there? What's the culture like right now? Oh, >>The culture's great. I mean, it's a much smaller company than AWS where I was before, you know, it's a very large organization. And one of the things that I really like about MongoDB is, as I've said earlier, we can serve the different use cases that a developer might have with a single product, with different aspects, to it, different facets to it. Uh, and it's a really great conversation to have with a, with a developer, with a developer customer, to be able to offer one thing that helps them solve five or six different problems that have traditionally been quite hard for them to wrestle with quite difficult for them to, to deal with. And then we've got this focus on developer experience through these driver packages that we have as well. So it's really great to have as a developer relations pro have that kind of tooling in my kit bag that can help developers become more effective. >>Talk about tooling, cuz you know, I always have, uh, kind of moments where I waffle between more. I love platforms, tools are being over overused, too many tools tool with the tool, you know, the expressions, but we're seeing from developers, the ones that don't want to go into the hood, we serverless plays beautifully. Yep. They want tools. They do. And, and the, the new engineering developers that are coming outta college and universities, they love tools. >>Yeah. And we actually have quite a few of those built into Mongo, DB Atlas. So inside Mongo, DB Atlas, we've got things like an index optimizer, which will suggest the best way that you might index your data for better perform months inside MongoDB, running on Atlas, we've got a data Explorer, which is much like another product that we've got called MongoDB compass that allows you to see and manipulate the data that you have stored within your database natively within the Atlas interface. Uh, and then we also have, uh, whole slew of different metrics, monitoring capabilities built into the platform as well. So these are aspects of Atlas that developers can take advantage of. And then over on the client side, visual studio code plugins. Yeah. So you can manipulate and operate with data directly inside visual studio code, which is obviously the most common and popular IDE out there today, as well as integration with things like infrastructure is code tools. So we support cloud formation for provisioning. We have CDK constructs inside. Yeah. The CDK construct library. We also have a lot of customers using Terraform to provision MongoDB across both AWS and other providers. So having that developer tooling of course is super important. Yeah. Aspect of the developer experience, trying to >>Build out deploying observability is a big one. How does that fit in? Cuz you knew need to talk and not only measure everything here, but talk to other systems. >>Yeah. So we recently announced a provider for Prometheus and Grafana. So we can emit metrics into those providers. Obviously CNCF projects, very common and popular inside customers that are running on Kubernetes. We've got a Kubernetes operator for MongoDB Atlas as well. Good. So you can provision MongoDB Atlas from within Kubernetes as well as having our own native metrics directly within Atlas as well. >>Ian you're crushing it. You got all the, the data, the fingertips. Are you gonna be at Cuban this year? Uh, >>I will be, but some of our team members will definitely be there. >>Yeah, we'll be at, uh, EU. The cube will be there. Great. Thanks for coming on. Appreciate the insight final world. I'll give you the last word. Tell the audience what's going on. What's at Mongo DB. What should they pay attention to? If they've used Mongo and are aware of it? What's the update. What's >>The so you should come to MongoDB world actually in New York at the beginning of June, June 7th, the ninth in the Javit center in New York. Gonna have our own show there. And of course we'd love to see you there. >>Okay. Cube comes here day two of eight, us summit, 2020, this Cub I'm John for your host. Stay with us more. Our coverage as day two winds down. Great coverage.

>>Hello, and welcome back to the live cube coverage here in San Francisco, California, the cube live coverage. Two days, day two of a summit 2022, a summit New York city coming up in the summer. We'll be there as well. Events are back. I'm the host, John fur, the cube got great guest here, Johnny Dallas with Ze. Um, here's on the cube. We're gonna talk about his background. Uh, little trivia here. He was the youngest engineer ever worked at Amazon at the age. 17 had to get escorted into reinvent in Vegas cause he was underage <laugh> with security, all good stories. Now the CEO of gonna called Ze know DevOps kind of focus, managed service, a lot of cool stuff, John, welcome to the cube. >>Thanks John. Great. >>So tell a story. You were the youngest engineer at AWS. >>I was, yes. So I used to work at a company called Bebo. I got started very young. I started working when I was about 14, um, kind of as a software engineer. And when I, uh, was about 16, I graduated out of high school early. Um, worked at this company, Bebo running all of the DevOps at that company. Um, I went to reinvent in about 2018 to give a talk about some of the DevOps software I wrote at that company. Um, but you know, as many of those things are probably familiar with reinvent happens in a casino and I was 16, so I was not able to actually go into the casino on my own <laugh> um, so I'd have <inaudible> security as well as C security escort me in to give my talk. >>Did Andy jazzy, was he aware of this? >>Um, you know, that's a great question. I don't know. <laugh> >>I'll ask him great story. So obviously you started a young age. I mean, it's so cool to see you jump right in. I mean, I mean, you never grew up with the old school that I used to grew up in loading package software, loading it onto the server, deploying it, plugging the cables in, I mean you just rocking and rolling with DevOps as you look back now what's the big generational shift because now you got the Z generation coming in, millennials are in the workforce. It's changing. Like no one's putting package software on servers. >>Yeah, no, I mean the tools keep getting better, right? We, we keep creating more abstractions that make it easier and easier. When I, when I started doing DevOps, I could go straight into E two APIs. I had APIs from the get go and you know, my background was, I was a software engineer. I never went through like the CIS admin stack. I, I never had to, like you said, rack servers, myself. I was immediately able to scale to I, I was managing, I think 2,500 concurrent servers across every Ables region through software. It was a fundamental shift. >>Did you know what an SRE was at that time? Uh, you were kind of an SRE on >>Yeah, I was basically our first SRE, um, familiar with the, with the phrasing, but really thought of myself as a software engineer who knows cloud APIs, not a SRE. >>All right. So let's talk about what's what's going on now, as you look at the landscape today, what's the coolest thing that's going on in your mind and cloud? >>Yeah, I think the, I think the coolest thing is, you know, we're seeing the next layer of those abstraction tools exist and that's what we're doing with Ze is we've basically gone and we've, we're building an app platform that deploys onto your cloud. So if you're familiar with something like Carku, um, where you just click a GitHub repo, uh, we actually make it that easy. You click a GI hub repo and it'll deploy on a AWS using Al AWS tools. >>So, right. So this is Z. This is the company. Yes. How old's the company >>About a year and a half old now. >>Right. So explain what it does. >>Yeah. So we make it really easy for any software engineer to deploy on a AWS. Um, that's not SREs. These are the actual application engineers doing the business logic. Mm-hmm <affirmative> they don't really want to think about Yamo. They don't really want to configure everything super deeply. Um, they want to say, run this API on a AWS in the best way possible. We've encoded all the best practices into software and we set it up for you. >>Yeah. So I think the problem you're solving is, is that there's a lot of want to be DevOps engineers. And then they realize, oh shit, I don't wanna do this. Yeah. And the people want to do it. They loved under the hood. Right. People love that infrastructure, but the average developer needs to actually be as agile on scale. So that seems to be the problem you solve. Right? Yeah. >>We, we, we give way more productivity to each individual engineer, you know? >>All right. So let me ask you a question. So let me just say, I'm a developer. Cool. I built this new app. It's a streaming app or whatever. I'm making it up cube here, but let's just say I deploy it. I need your service. But what happens about when my customers say, Hey, what's your SLA? The CDN went down from this it's flaky. Does Amazon have? So how do you handle all that SLA reporting that Amazon provides? Cause they do a good job with sock reports all through the console. But as you start getting into DevOps and sell your app, mm-hmm <affirmative> you have customer issues. You, how do you view that? Yeah, >>Well, I, I think you make a great point of AWS has all this stuff already. AWS has SLAs. AWS has contract. Aw, has a lot of the tools that are expected. Um, so we don't have to reinvent the wheel here. What we do is we help people get to those SLAs more easily. So, Hey, this is a AWS SLA as a default. Um, Hey, we'll configure your services. This is what you can expect here. Um, but we can really leverage AWS reli ability of you don't have to trust us. You have to trust S and trust that the setup is good there. >>Do you handle all the recovery or mitigation between, uh, identification say downtime for instance, oh, the servers not 99% downtime, uh, went down for an hour, say something's going on? And is there a service dashboard? How does it get what's the remedy? Do you have, how does all that work? >>Yeah, so we have some built in remediation. You know, we, we basically say we're gonna do as much as we can to keep your endpoint up 24 7 mm-hmm <affirmative>. If it's something in our control, we'll do it. If it's a disc failure, that's on us. If you push bad code, we won't put out that new version until it's working. Um, so we do a lot to make sure that your endpoint stays up, um, and then alert you if there's a problem that we can't fix. So cool. Hey, S has some downtime, this thing's going on. You need to do this action. Um, we'll let you know. >>All right. So what do you do for fun? >>Yeah, so, uh, for, for fun, um, a lot of side projects. <laugh>, uh, >>What's your side hustle right now. You got going on >>The, uh, it's a lot of schools playing >>With serverless. >>Yeah. Playing with a lot of serverless stuff. Um, I think there's a lot of really cool Lam stuff as well, going on right now. Um, I love tools is, is the truest answer is I love building something that I can give to somebody else. And they're suddenly twice as productive because of it. Um, >>That's a good feeling, isn't it? Oh >>Yeah. There's nothing >>Like that. Tools versus platforms. Mm-hmm, <affirmative>, you know, the expression, too many tools in the tool, she becomes, you know, tools for all. And then ultimately tools become platforms. What's your view on that? Because if a good tool works and starts to get traction, you need to either add more tools or start building a platform platform versus tool. What's your, what's your view on our reaction to that kind of concept debate? >>Yeah, it's a good question. Uh, we we've basically started as like a, a platform. First of we've really focused on these, uh, developers who don't wanna get deep into the DevOps. And so we've done all of the piece of the stacks. We do C I C D management. We do container orchestration, we do monitoring. Um, and now we're, spliting those up into individual tools so they can be used awesome in conjunction more. >>Right. So what are some of the use cases that you see for your service? It's DevOps basically nano service DevOps for people on a DevOps team. Do clients have a DevOps person and then one person, two people what's the requirements to run >>Z? Yeah. So we we've got teams, um, from no DevOps is kind of when they start and then we've had teams grow up to about, uh, five, 10 man DevOps teams. Mm-hmm <affirmative> um, so, you know, as more structured people come in, because we're in your cloud, you're able to go in and configure it on top you're we can't block you. Uh, you wanna use some new AOL service. You're welcome to use that alongside the stack that we deploy for >>You. How many customers do you have now? >>So we've got about 40 companies that are using us for all of their infrastructure, um, kind of across the board, um, as well as >>What's the pricing model. >>Uh, so our pricing model is we, we charge basically similar to an engineer salary. So we charge, uh, a monthly rate. We have plans at 300 bucks a month, a thousand bucks a month, and then enterprise plan for based >>On the requirement scale. Yeah. You know, so back into the people cost, you must offer her discounts, not a fully loaded thing, is it? >>Yeah. There's a discounts kind of at scale, >>Then you pass through the Amazon bill. >>Yeah. So our customers actually pay for the Amazon bill themselves. Oh. So >>They have their own >>Account. There's no margin on top. You're linking your Aless account in, um, it, which is huge because we can, we are now able to help our customers get better deals with Amazon. Um, got it. We're incentivized on their team to drive your cost down. >>And what's your unit main unit of economics software scale. >>Yeah. Um, yeah, so we, we think of things as projects. How many services do you have to deploy as that scales up? Um, awesome. >>All right. You're 20 years old now you not even can't even drink legally. <laugh> what are you gonna do when you're 30? We're gonna be there. >>Well, we're, uh, we're making it better. And >>The better, the old guy on the cube here. >><laugh> I think, uh, I think we're seeing a big shift of, um, you know, we've got these major clouds. AWS is obviously the biggest cloud. Um, and it's constantly coming out with new services. Yeah. But we're starting to see other clouds have built many of the common services. So Kubernetes is a great example. It exists across all the clouds. Um, and we're starting to see new platforms come up on top that allow you to leverage tools from multiple clouds. At the same time. Many of our customers actually have AWS as their primary cloud and they'll have secondary clouds or they'll pull features from other clouds into AWS, um, through our software. I think that I'm very excited by that. And I, uh, expect to be working on that when I'm 30. Awesome. >>Well, you gonna have a good future. I gotta ask you this question cuz uh, you know, I've always, I was a computer science undergraduate in the, in the eighties and um, computer science back then was hardcore, mostly systems OS stuff, uh, database compiler. Um, now there's so much compi, right? So mm-hmm <affirmative> how do you look at the high school college curriculum experience slash folks who are nerding out on computer science? It's not one or two things much. You've got a lot of, a lot of things. I mean, look at Python, data engineering, merging as a huge skill. What's it? What's it like for college kids now and high school kids? What, what do you think they should be doing if you had to give advice to your 16 year old self back a few years ago now in college? Um, I mean Python's not a great language, but it's super effective for coding and the data's really relevant, but it's you got other language opportunities, you got tools to build. So you got a whole culture of young builders out there. What should, what should people gravitate to in your opinion stay away from yeah. Or >>Stay away from that's a good question. I, I think that first of all, you're very right of the, the amount of developers is increasing so quickly. Um, and so we see more specialization. That's why we also see, you know, these SREs that are different than typical application engineering. You get more specialization in job roles. Um, I think if, what I'd say to my 16 year old self is do projects, um, the, I learned most of my, what I've learned just on the job or online trying things, playing with different technologies, actually getting stuff out into the world, um, way more useful than what you'll learn in kind of a college classroom. I think classrooms great to, uh, get a basis, but you need to go out and experiment actually try things. >>You know? I think that's great advice. In fact, I would just say from my experience of doing all the hard stuff and cloud is so great for just saying, okay, I'm done, I'm abandoning the project. Move on. Yeah. Because you know, it's not gonna work in the old days. You have to build this data center. I bought all this certain, you know, people hang on to the old, you know, project and try to force it out there. >>You can launch a project, >>Can see gratification, it ain't working <laugh> or this is shut it down and then move on to something new. >>Yeah, exactly. Instantly you should be able to do that much more quickly. Right. >>So you're saying get those projects and don't be afraid to shut it down. Mm-hmm <affirmative> that? Do you agree with that? >>Yeah. I think it's ex experiment. Um, you're probably not gonna hit it rich on the first one. It's probably not gonna be that idea is DJing me this idea. So don't be afraid to get rid of things and just try over and over again. It's it's number of reps that a win. >>I was commenting online. Elon Musk was gonna buy Twitter, that whole Twitter thing. And, and, and someone said, Hey, you know, what's the, I go look at the product group at Twitter's been so messed up because they actually did get it right on the first time <laugh> and, and became such a great product. They could never change it because people would freak out and the utility of Twitter. I mean, they gotta add some things, the added button and we all know what they need to add, but the product, it was just like this internal dysfunction, the product team, what are we gonna work on? Don't change the product so that you kind of have there's opportunities out there where you might get the lucky strike, right. Outta the gate. Yeah. Right. You don't know, >>It's almost a curse too. It's you're not gonna Twitter. You're not gonna hit a rich second time too. So yeah. >><laugh> Johnny Dallas. Thanks for coming on the cube. Really appreciate it. Give a plug for your company. Um, take a minute to explain what you're working on, what you're looking for. You're hiring funding. Customers. Just give a plug, uh, last minute and have the last word. >>Yeah. So, um, John Dallas from Ze, if you, uh, need any help with your DevOps, if you're a early startup, you don't have DevOps team, um, or you're trying to deploy across clouds, check us out ze.com. Um, we are actively hiring. So if you are a software engineer excited about tools and cloud, or you're interested in helping getting this message out there, hit me up. Um, find a Z. >>Yeah. LinkedIn Twitter handle GitHub handle. >>Yeah. I'm the only Johnny on a LinkedIn and GitHub and underscore Johnny Dallas underscore on Twitter. Right? Um, >>Johnny Dallas, the youngest engineer working at Amazon. Um, now 20 we're on great new project here. The cube builders are all young. They're growing in to the business. They got cloud at their, at their back it's, uh, tailwind. I wish I was 20. Again, this is a cue. I'm John for your host. Thanks for watching. >>Thanks.

More bottoms up and have more technical early adopters. And generally speaking, they're free to use. They're free to try. They're very commonly community source or open source companies where you have a large technical community that's supporting them. So there's a, there's kind of a new normal now I think in great enterprise software and it starts with great technical founders with great products and great bottoms of emotions. And I think there's no better place to, uh, service those people than in the cloud and uh, in, in your community. >>Well, first of all, congratulations, and by the way, you got a great pedigree and great background, super smart, but Myer of your work and your, and, and your founding, but let's face it. Enterprise is hot because digital transformation is all companies there's no, I mean, consumer is enterprise now, everything is what was once a niche. No, I won't say niche category, but you know, not for the faint of heart, you know, investors, >>You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. <laugh> but remember, like right now there's also a tech and VC conference in Miami <laugh> and it's covering cryptocurrencies and FCS and web three. So I think beauty is definitely in the eye of the beholder <laugh> but no, I, I will tell you, >>Ts is one big enterprise, cuz you gotta have imutability you got performance issues. You have, I IOPS issues. >>Well, and, and I think all of us here that are, uh, may maybe students of history and have been involved in open source in the cloud would say that we're, you know, much of what we're doing is, uh, the predecessors of the web web three movement. And many of us I think are contributors to the web three >>Movement. The hype is definitely one web three. Yeah. >>But, >>But you know, >>For sure. Yeah, no, but now you're taking us further east of Miami. So, uh, you know, look, I think, I, I think, um, what is unquestioned with the case now? And maybe it's, it's more obvious the more time you spend in this world is this is the fastest growing part of enterprise software. And if you include cloud infrastructure and cloud infrastructure spend, you know, it is by many measures over, uh, $500 billion in growing, you know, 20 to 30% a year. So it it's a, it's a just incredibly fast, well, >>Let's get, let's get into some of the cultural and the, the shifts that are happening, cuz again, you, you have the luxury of being in enterprise when it was hard, it's getting easier and more cooler. I get it and more relevant <laugh> but there's also the hype of like the web three, for instance, but you know, for, uh, um, um, the CEO snowflake, okay. Has wrote a book and Dave Valenti and I were talking about it and uh, Frank Luman has says, there's no playbooks. We always ask the CEOs, what's your playbook. And he's like, there's no playbook, situational awareness, always Trump's playbooks. So in the enterprise playbook, oh, higher, a direct sales force and SAS kind of crushed that now SAS is being redefined, right. So what is SAS is snowflake assassin or is that a platform? So again, new unit economics are emerging, whole new situation, you got web three. So to me there's a cultural shift, the young entrepreneurs, the, uh, user experience, they look at Facebook and say, ah, you know, they own all my data and you know, we know that that cliche, um, they, you know, the product. So as this next gen, the gen Z and the millennials come in and our customers and the founders, they're looking at things a little bit differently and the tech better. >>Yeah. I mean, I mean, I think we can, we can see a lot of common across all successful startups and the overall adoption of technology. Um, and, and I would tell you, this is all one big giant revolution. I call it the user driven revolution. Right. It's the rise of the user. Yeah. And you might say product like growth is currently the hottest trend in enterprise software. It's actually like growth, right. They're one and the same. So sometimes people think the product, uh, is what is driving growth. >>You just pull the product >>Through. Exactly, exactly. And so that's that I, that I think is really this revolution that you see, and, and it does extend into things like cryptocurrencies and web three and, you know, sort of like the control that is taken back by the user. Um, but you know, many would say that, that the origins of this, but maybe started with open source where users were contributors, you know, contributors were users and looking back decades and seeing how it, how it fast forward to today. I think that's really the trend that we're all writing. It's enabling these end users. And these end users in our world are developers, data engineers, cybersecurity practitioners, right. They're really the, and they're really the, the beneficiaries and the most, you know, kind of valued people in >>This. I wanna come back to the data engineers in a second, but I wanna make a comment and get your reaction to, I have a, I'm a gen Xer technically. So for not a boomer, but I have some boomer friends who are a little bit older than me who have, you know, experienced the sixties. And I have what been saying on the cube for probably about eight years now that we are gonna hit digital hippie revolution, meaning a rebellion against in the sixties was rebellion against the fifties and the man and, you know, summer of love. That was a cultural differentiation from the other one other group, the predecessors. So we're kind of having that digital moment now where it's like, Hey boomers, Hey people, we're not gonna do that anymore. You, we hate how you organize shit. >>Right. But isn't this just technology. I mean, isn't it, isn't it like there used to be the old adage, like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would get fired if you bought IBM. And I mean, it's just like the, the, I think, I think >>During the mainframe days, those renegades were breaking into Stanford, starting the home group. So what I'm trying to get at is that, do you see the young cultural revolution also, culturally, just, this is my identity NFTs to me speak volumes about my, I wanna associate with NFTs, not single sign on. Well, >>Absolutely. And, and I think like, I think you're hitting on something, which is like this convergence of, of, you know, societal it'll trends with technology trends and how that manifests in our world is yes. I think like there is unquestionably almost a religion yeah. Around the way in which a product is built. Right. And we can use open source, one example of that religion. Some people will say, look, I'll just never try a product in the cloud if it's not open source. Yeah. I think cloud, native's another example of that, right? It's either it's, you know, it either is cloud native or it's not. And I think a lot of people will look at a product and say, look, you know, you were not designed in the cloud era. Therefore I just won't try you. And sometimes, um, like it or not, it's a religious decision, right? Yeah. It's so it's something that people just believe to be true almost without, uh, necessarily caring >>About data. Data drives all decision making. Let me ask you this next question. As a VC. Now you look at pitch, well, you've been a VC for many years, but you also have the founder entrepreneurial mindset, but you can get empathize with the founders. You know, hustle is a big part of the, that first founder check, right? You gotta convince someone to part with their ch their money and the first money in which you do a lot of it's about believing in the person. So faking it till you make it is hard. Now you, the data's there, you either have it cloud native, you either have the adaption or traction. So honesty is a big part of that pitch. You can't fake it. >>Oh, AB absolutely. You know, there used to be this concept of like the persona of an entrepreneur. Right. And the persona of the entrepreneur would be, you know, so somebody who was a great salesperson or somebody who tell a great story, and I still think that that's important, right. It still is a human need for people to believe in narratives and stories. Yeah. But having said that you're right. The proof is in the pudding, right. At some point you click download and you try the product and it does what it says it gonna it's gonna do, or it doesn't, or it either stands up to the load test or it doesn't. And so I, I feel like in the new economy that we live in, really, it's a shift from maybe the storytellers and the creators to, to the builders, right. The people that know how to build great product. And in some ways the people that can build great product yeah. Stand out from the crowd. And they're the ones that can build communities around their products. And, you know, in some ways can, um, you know, kind of own more of the narrative of because their product begins exactly >>The volume you back to the user led growth. >>Exactly. And it's the religion of, I just love your product. Right. And I, I, I, um, Doug song is the founder of du security used to say, Hey, like, you know, the, the really like in today's world of like consumption based software, like the user is only gonna give you 90 seconds to figure out whether or not you're a company that's easy to do business with. Right. And so you can say, and do all the things that you want about how easy you are to work with. But if the product isn't easy to install, if it's not easy to try, if it's not, if, if the it's gotta speak to the, >>Speak to the user, but let me ask a question now that for the people watching, who are maybe entrepreneurial entre, preneurs, um, masterclass here in session. So I have to ask you, do you prefer, um, an entrepreneur come in and say, look at John. Here's where I'm at. Okay. First of all, storytelling's fine with you an extrovert or introvert, have your style, sell the story in a way that's authentic, but do you, what do you prefer to say? Here's where I'm at? Look, I have an idea. Here's my traction. I think here's my MVP prototype. I need help. Or do, do you wanna just see more stats? What's the, what's the preferred way that you like to see entrepreneurs come in and engage? >>There's tons of different styles, man. I think the single most important thing that every founder should know is that we, we don't invest in what things are today. We invest in what we think something will become. Right. And I think that's why we all get up in the morning and try to build something different, right? It's that we see the world a different way. We want it to be a different way. And we wanna work every single moment of the day to try to make that vision a reality. So I think the more that you can show people where you want to be the, of more likely somebody is gonna align with your vision and, and wanna invest in you and wanna be along for the ride. So I, I wholeheartedly believe in showing off what you got today, because eventually we all get down to like, where are we and what are we gonna do together? But, um, no, I, you gotta >>Show the >>Path. I think the single most important thing for any founder and VC relationship is that they have the same vision. Uh, if you have the same vision, you can, you can get through bumps in the road, you can get through short term spills. You can all sorts of things in the middle. The journey can happen. Yeah. But it doesn't matter as much if you share the same long term vision, >>Don't flake out and, and be fashionable with the latest trends because it's over before you can get there. >>Exactly. I think many people that, that do what we do for a living, we'll say, you know, ultimately the future is relatively easy to predict, but it's the timing that's impossible to predict. <laugh> so you, you know, you sort of have to balance the, you know, we, we know that the world is going in this way and therefore we're gonna invest a lot of money to try to make this a reality. Uh, but some times it happens in six months. Sometimes it takes six years. Sometimes it takes 16 years. Uh, >>What's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at right now with Bel partners, Tebel dot your site. What's the big wave. What's your big >>Wave. There's three big trends that we invest in. And the they're the only things we do day in, day out one is the explosion and open source software. So I think many people think that all software is unquestionably moving to an open source model in some form or another yeah. Tons of reasons to debate whether or not that is gonna happen, an alwa timeline >>Happening forever. >>But, uh, it is, it is accelerating faster than we've ever seen. So I, I think it's, it's one big, massive wave that we continue to ride. Um, second is the rise of data engineering. Uh, I think data engineering is in and of itself now, a category of software. It's not just that we store data. It's now we move data and we develop applications on data. And, uh, I think data is in and of itself as big of a market as any of the other markets that we invest in. Uh, and finally, it's the gift that keeps on giving. I've spent my entire career in it. We still feel that security is a market that is underinvested. It is, it continues to be the place where people need to continue to invest and spend more money. Yeah. Uh, and those are the three major trends that we run >>And security, you think we all need a dessert do over, right? I mean, do we need you do over in security or is what's the core problem? I, >>I, I keep using this word underinvested because I think it's the right way to think about the problem. I think if you, I think people generally speaking, look at cybersecurity as an add-on. Yeah. But if you think about it, the whole economy is moving online. And so in, in some ways like security is core to protecting the digital economy. And so it's, it shouldn't be an afterthought, right? It should be core to what everyone is doing. And that's why I think relative to the trillions of dollars that are at stake, uh, I believe the market size for cybersecurity is run $150 billion. And it still is a fraction of what we're, >>What we're and national security even boom is booming now. So you get the convergence of national security, geopolitics, internet digital that's >>Right. You mean arguably, right? I mean, arguably again, it's the area of the world that people should be spending more time and more money given what to stake. >>I love your thesis. I gotta, I gotta say, you gotta love your firm. Love. You're doing we're big supporters, your mission. Congratulations on your entrepreneurial venture. And, uh, we'll be, we'll be talking and maybe see a Cuban. Uh, absolutely not. Certainly EU maybe even north Americans in Detroit this year. >>Huge fan of what you guys are doing here. Thank you so much for helping me on the show. >>Guess be VC Johnson here on the cube. Check him out. Founder for founders here on the cube, more coverage from San Francisco, California. After this short break, stay with us. Everyone. Welcome to the cue here. Live in San Francisco. K warn you for AWS summit 2022 we're live we're back with events. Also we're virtual. We got hybrid all kinds of events. This year, of course, summit in New York city is happening this summer. We'll be there with the cube as well. I'm John. Again, John host of the cube. Got a great guest here, Justin Kobe owner, and CEO of innovative solutions. Their booth is right behind us. Justin, welcome to the cube. >>Thank you. Thank you for having me. >>So we're just chatting, uh, uh, off camera about some of the work you're doing. You're the owner of and CEO. Yeah. Of innovative. Yeah. So tell us the story. What do you guys do? What's the elevator pitch. >>Yeah. <laugh> so the elevator pitch is we are, uh, a hundred percent focused on small to mid-size businesses that are moving to the cloud, or have already moved to the cloud and really trying to understand how to best control security, compliance, all the good stuff that comes along with it. Um, exclusively focused on AWS and, um, you know, about 110 people, uh, based in Rochester, New York, that's where our headquarters is, but now we have offices down in Austin, Texas, up in Toronto, uh, Canada, as well as Chicago. Um, and obviously in New York, uh, you know, the business was never like this, uh, five years ago, um, founded in 1989, made the decision in 2018 to pivot and go all in on the cloud. And, uh, I've been a part of the company for about 18 years, bought the company about five years ago. And it's been a great ride. >>It's interesting. The manages services are interesting with cloud cause a lot of the heavy liftings done by a of us. So we had Matt on your team on earlier talking about some of the edge stuff. Yeah. But you guys are a managed cloud service. You got cloud advisory, you know, the classic service that's needed, but the demands coming from cloud migrations and application modernization, but obviously data is a huge part of it. Huge. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on the SMB side for edge. Yeah. For AWS, you got results coming in. Where's the, where's the forcing function. What's the pressure point. What's the demand like? >>Yeah. It's a great question. Every CEO I talk to, that's a small mids to size business. They're all trying to understand how to leverage technology better to help either drive a revenue target for their own business, uh, help with customer service as so much has gone remote now. And we're all having problems or troubles or issues trying to hire talent. And um, you know, tech is really at the, at the forefront and the center of that. So most customers are coming to us and they're of like, listen, we gotta move to the cloud or we move some things to the cloud and we want to do that better. And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. Yeah. And what we try to help as many customers understand as possible is lifting and shifting, moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. And then so, uh, progressively working through a modernization strategy is always the better approach. And so we spend a lot of time with small to mid-size businesses who don't have the technology talent on staff to be able to do >>That. Yeah. And they want to get set up. But the, the dynamic of like latency is huge. We're seeing that edge product is a big part of it. This is not a one-off happening around everywhere. It is not it's manufacturing, it's the physical plant or location >>Literally. >>And so, and you're seeing more IOT devices. What's that like right now from a challenge and problem statement standpoint, are the customers, not staff, is the it staff kind of old school? Is it new skills? What's the core problem. And you guys solve >>In the SMB space. The core issue nine outta 10 times is people get enamored with the latest and greatest. And the reality is not everything that's cloud based. Not all cloud services are the latest and greatest. Some things have been around for quite some time and our hardened solutions. And so, um, what we try to do with, to technology staff that has traditional on-prem, uh, let's just say skill sets and they're trying to move to a cloud-based workload is we try to help those customers through education and through some practical, let's just call it use case. Um, whether that's a proof of concept that we're doing or whether that's, we're gonna migrate a small workload over, we try to give them the confidence to be able to not, not necessarily go it alone, but, but to, to, to have the, uh, the Gusto and to really have the, um, the, the opportunity to, to do that in a wise way. Um, and what I find is that most CEOs that I talk to yeah. Feel like, listen, at the end of the day, I'm gonna be spending money in one place or another, whether that's on primer in the cloud, I just want know that I'm doing that way. That helps me grow as quickly as possible status quo. I think every, every business owner knows that COVID taught us anything that status quo is, uh, is, is no. No. Good. >>How about factoring in the, the agility and speed equation? Does that come up a lot? It >>Does. I think, um, I think there's also this idea that if, uh, if we do a deep dive analysis and we really take a surgical approach to things, um, we're gonna be better off. And the reality is the faster you move with anything cloud based, the better you are. And so there's this assumption that we gotta get it right the first time. Yeah. In the cloud, if you start down your journey in one way and you realize midway that it's not the right, let's just say the right place to go. It's not like buying a piece of iron that you put in the closet and now you own it in the cloud. You can turn those services on and off. It's a, gives you a much higher density for making decisions and failing >>Forward. Well actually shutting down the abandoning, the projects that early, not worrying about it, you got it mean most people don't abandon stuff cuz they're like, oh, I own it. >>Exactly. >>And they get, they get used to it. Like, and then they wait too long. >>That's exactly. >>Yeah. Frog and boiling water, as we used to say, oh, it's a great analogy. So I mean, this, this is a dynamic. That's interesting. I wanna get more thoughts on it because like I'm a, if I'm a CEO of a company, like, okay, I gotta make my number. Yeah. I gotta keep my people motivated. Yeah. And I gotta move faster. So this is where you guys come in. I get the whole thing. And by the way, great service, um, professional services in the cloud right now are so hot because so hot, you can build it and then have option optionality. You got path decisions, you got new services to take advantage of. It's almost too much for customers. It is. I mean, everyone I talked to at reinvent, that's a customer. Well, how many announcements did Andy jazzy announcer Adam? You know, the 5,000 announcement or whatever. They did huge amounts. Right. Keeping track of it all. Oh, is huge. So what's the, what's the, um, the mission of, of your company. How does, how do you talk to that alignment? Yeah. Not just processes. I can get that like values as companies, cuz they're betting on you and your people. >>They are, they are >>Values. >>Our mission is, is very simple. We want to help every small to midsize business leverage the power of the cloud. Here's the reality. We believe wholeheartedly. This is our vision that every company is going to become a technology company. So we go to market with this idea that every customer's trying to leverage the power of the cloud in some way, shape or form, whether they know it or don't know it. And number two, they're gonna become a 10 a company in the process of that because everything is so tech-centric. And so when you talk about speed and agility, when you talk about the, the endless options and the endless permutations of solutions that a customer can buy in the cloud, how are you gonna ask a team of one or two people in your it department to make all those decisions going it alone or trying to learn it as you go, it only gets you so far working with a partner. >>I'll just give you some perspective. We work with about a thousand small to midsize business customers. More than 50% of those customers are on our managed services. Meaning they know that we have their back and we're the safety net. So when a customer is saying, right, I'm gonna spend a couple thousand and dollars a month in the cloud. They know that that bill, isn't gonna jump to $10,000 a month going in alone. Who's there to help protect that. Number two, if you have a security posture and let's just say your high profile and you're gonna potentially be more vulnerable to security attacks. If you have a partner that's offering you some managed services. Now you, again, you've got that backstop and you've got those services and tooling. We, we offer, um, seven different products, uh, that are part of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go out today and go buy a new Relic solution on their own. It, it would cost 'em a four, >>The training alone would be insane. A risk factor. I mean the cost. Yes, absolutely opportunity cost is huge, >>Huge, absolutely enormous training and development. Something. I think that is often, you know, it's often overlooked technologists. Typically they want to get their skills up. They, they love to get the, the stickers and the badges and the pins, um, at innovative in 2018. When, uh, when we, he made the decision to go all in on the club, I said to the organization, you know, we have this idea that we're gonna pivot and be aligned with AWS in such a way that it's gonna really require us all to get certified. My executive assistant at the time looks at me. She said, even me, I said, yeah, even you, why can't you get certified? Yeah. And so we made, uh, a conscious, it wasn't requirement. It still isn't today to make sure everybody in the company has the opportunity to become certified. Even the people that are answering the phones at the front >>Desk and she could be running the Kubernetes clusters. I >>Love it. It's >>Amazing. >>But I'll tell you what, when that customer calls and they have a real Kubernetes issue, she'll be able to assist and get >>The right people with. And that's a cultural factor that you guys have. So, so again, this is back to my whole point out SMBs and businesses in general, small and large it staffs are turning over the gen Z and millennials are in the workforce. They were provisioning top of rack switches. Right. First of all. And so if you're a business, there's also the, I call the buildout, um, uh, return factor, ROI piece. At what point in time as an owner, SMB, do I get to ROI? Yeah. I gotta hire a person to manage it. That person's gonna have five zillion job offers. Yep. Uh, maybe who knows? Right. I got cyber security issues. Where am I gonna find a cyber person? Yeah. A data compliance. I need a data scientist and a compliance person. Right. Maybe one in the same. Right. Good luck. Trying to find a data scientist. Who's also a compliance person. Yep. And the list goes on. I can just continue. Absolutely. I need an SRE to manage the, the, uh, the sock report and we can pen test. Right. >>Right. >>These are, these are >>Like critical issues. >>This is just like, these are the table stakes. >>Yeah. And, and every, every business owner's thinking about this, >>That's, that's what, at least a million in loading, if not three or more Just to get that app going. Yeah. Then it's like, where's the app. Yeah. So there's no cloud migration. There's no modernization on the app side. No. And they remind AI and ML. >>That's right. That's right. So to try to go it alone, to me, it's hard. It it's incredibly difficult. And the other thing is, is there's not a lot of partners, so the partner, >>No one's raising their hand boss. I'll do all that exactly. In the it department. >>Exactly. >>So like, can we just call up, uh, you know, our old vendor that's >>Right. <laugh> right. Our old vendor. I like it, >>But that's so true. I mean, when I think about how, if I was a business owner starting a business today and I had to build my team, um, and the amount of investment that it would take to get those people skilled up and then the risk factor of those people now having the skills and being so much more in demand and being recruited away, that's a real, that's a real issue. And so how you build your culture around that is, is very important. It's something that we talk about every, with every one of our small to mid-size >>Businesses. So just, I want get, I want to get your story as CEO. Okay. Take us through your journey. You said you bought the company and your progression to, to being the owner and CEO of innovative yeah. Award winning guys doing great. Uh, great bet on a good call. Yeah. Things are good. Tell your story. What's your journey? >>It's real simple. I was, uh, I was a sophomore at the Rochester Institute of technology in 2003. And, uh, I knew that I, I was going to school for it and I, I knew I wanted to be in tech. I didn't know what I wanted to do, but I knew I didn't wanna code or configure routers and switches. So I had this great opportunity with the local it company that was doing managed services. We didn't call it at that time innovative solutions to come in and, uh, jump on the phone and dial for dollars. I was gonna cold call and introduced other, uh, small to midsize businesses locally in Rochester, New York go to Western New York, um, who innovative was now. We were 19 people at the time. Yeah. I came in, I did an internship for six months and I loved it. I learned more in those six months than I probably did in my first couple of years at, uh, at RT long story short. >>Um, for about seven years, I worked, uh, to really help develop, uh, sales process and methodology for the business so that we could grow and scale. And we grew to about 30 people. And, um, I went to the owners at the time in 2000 and I was like, Hey, I'm growing the value of this business. And who knows where you guys are gonna be another five years? What do you think about making me an owner? And they were like, listen, you got long ways before you're gonna be an owner. But if you stick it out in your patient, we'll, um, we'll work through a succession plan with you. And I said, okay, there were four other individuals at the time that were gonna also buy the business with me. >>And they were the owners, no outside capital, >>None zero, well, 2014 comes around. And, uh, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons. They all decided that it wasn't for them. One started a family. The other didn't wanna put capital in. Didn't wanna write a check. Um, the other had a real big problem with having to write a check. If we couldn't make payroll, I'm like, well, that's kind of like, if we're own, we're gonna have to like cover that stuff. <laugh> so >>It's called the pucker factor. >>Exactly. So, uh, I sat down with the CEO in early 2015 and, uh, we made the decision that I was gonna buy the three partners out, um, go through an earn out process, uh, coupled with, uh, an interesting financial strategy that wouldn't strap the BI cuz they cared very much. The company still had the opportunity to keep going. So in 2016 I bought the business, um, became the sole owner. And, and at that point we, um, we really focused hard on what do we want this company to be? We had built this company to this point. Yeah. And, uh, and by 2018 we knew that pivoting all going all in on the cloud was important for us. And we haven't looked back. >>And at that time, the proof points were coming clearer and clearer 2012 through 15 was the early adopters, the builders, the startups and early enterprises. Yes. The capital ones of the world. Exactly the, uh, and those kinds of big enterprises. The GA I don't wanna say gamblers, but ones that were very savvy. The innovators, the FinTech folks. Yep. The hardcore glass eating enterprises >>Agreed, agreed to find a small to midsize business to migrate completely to the cloud is as infrastructure was considered, that just didn't happen as often. Um, what we were seeing where the, a lot of our small to midsize business customers, they wanted to leverage cloud based backup, or they wanted to leverage a cloud for disaster recovery because it lent itself. Well, early days, our most common cloud customer though, was the customer that wanted to move messaging and collaboration. The, the Microsoft suite to the cloud. And a lot of 'em dipped their toe in the water. But by 2017 we knew infrastructure was around the corner. Yeah. And so, uh, we only had two customers on AWS at the time. Um, and we, uh, we, we made the decision to go all in >>Justin. Great to have you on the cube. Thank you. Let's wrap up. Uh, tell me the hottest product that you have. Is it migrations? Is the app modernization? Is it data? What's the hot product and then put a plugin for the company. Awesome. >>So, uh, there's no question. Every customer is looking migrate workloads and try to figure out how to modernize for the future. We have very interesting, sophisticated yet elegant funding solutions to help customers with the cash flow, uh, constraints that come along with those migrations. So any SMB that's thinking about migrating into the cloud, they should be talking innovative solutions. We know how to do it in a way that allows those customer is not to be cash strapped and gives them an opportunity to move forward in a controlled, contained way so they can modernize. So >>Like insurance, basically for them not insurance class in the classic sense, but you help them out on the, on the cash exposure. >>Absolutely. We are known for that and we're known for being creative with those customers and being empathetic to where they are in their journey. >>And that's the cloud upside is all about doubling down on the variable win that's right. Seeing the value and ING down on it. Absolutely not praying for it. Yeah. <laugh> all right, Justin. Thanks for coming on. You really appreciate >>It. Thank you very much for having me. >>Okay. This is the cube coverage here live in San Francisco, California for AWS summit, 2022. I'm John for your host. Thanks for watching. We're back with more great coverage for two days after this short break >>Live on the floor in San Francisco for Aus summit. I'm John for host of the cube here for the next two days, getting all the actual back in person we're at AWS reinvent a few months ago. Now we're back events are coming back and we're happy to be here with the cube. Bring all the action. Also virtual. We have a hybrid cube, check out the cube.net, Silicon angle.com for all the coverage. After the event. We've got a great guest ticking off here. Matthew Park, director of solutions, architecture with innovation solutions. The booth is right here. Matthew, welcome to the cube. >>Thank you very much. I'm glad to be here. >>So we're back in person. You're from Tennessee. We were chatting before you came on camera. Um, it's great to be back through events. It's >>Amazing. This is the first, uh, summit I've been to, to in what two, three >>Years. That's awesome. We'll be at the, uh, a AWS summit in New York as well. A lot of developers and the big story this year is as developers look at cloud going distributed computing, you got on premises, you got public cloud, you got the edge. Essentially the cloud operations is running everything devs sec ops, everyone kind of sees that you got containers, you got Benet, he's got cloud native. So the, the game is pretty much laid out. Mm-hmm <affirmative> and the edge is with the actions you guys are number one, premier partner at SMB for edge. >>That's >>Right. Tell us about what you guys doing at innovative and, uh, what you do. >>That's right. Uh, so I'm the director of solutions architecture. Uh, me and my team are responsible for building out the solutions. The at our around, especially the edge public cloud for us edge is anything outside of an AWS availability zone. Uh, we are deploying that in countries that don't have AWS infrastructure in region. They don't have it. Uh, give >>An example, >>Uh, example would be Panama. We have a customer there that, uh, needs to deploy some financial tech data and compute is legally required to be in Panama, but they love AWS and they want to deploy AWS services in region. Uh, so they've taken E EKS anywhere. We've put storage gateway and, uh, snowball, uh, in region inside the country and they're running or FinTech on top of AWS services inside Panama. >>You know, what's interesting, Matthew is that we've been covering Aw since 2013 with the cube about their events. And we watched the progression and jazzy was, uh, was in charge and became the CEO. Now Adam slaps in charge, but the edge has always been that thing they've been trying to avoid. I don't wanna say trying to avoid, of course, Amazon would listens to the customer. They work backwards from the customer. We all know that. Uh, but the real issue was they were they're bread and butters EC two and S three. And then now they got tons of services and the cloud is obviously successful and seeing that, but the edge brings up a whole nother level. >>It does >>Computing. >>It >>Does. That's not centralized in the public cloud now they got regions. So what is the issue with the edge what's driving? The behavior. Outpost came out as a reaction to competitive threats and also customer momentum around OT, uh, operational technologies. And it merging. We see with the data at the edge, you got five GM having. So it's pretty obvious, but there was a slow transition. What was the driver for the edge? What's the driver now for edge action for AWS >>Data in is the driver for the edge. Data has gravity, right? And it's pulling compute back to where the customer's generating that data and that's happening over and over again. You said it best outpost was a reaction to a competitive situation. Whereas today we have over 15 AWS edge services and those are all reactions to things that customers need inside their data centers on location or in the field like with media companies. >>Outpost is interesting. We always use the riff on the cube, uh, cause it's basically Amazon in a box, pushed in the data center, running native, all this stuff, but now cloud native operations are kind of becoming standard. You're starting to see some standard. Deepak syncs group is doing some amazing work with opensource Raul's team on the AI side, obviously, uh, you got SW who's giving the keynote tomorrow. You got the big AI machine learning big part of that edge. Now you can say, okay, outpost, is it relevant today? In other words, did outpost do its job? Cause EKS anywhere seems to be getting a lot of momentum. You see local zones, the regions are kicking ass for Amazon. This edge piece is evolving. What's your take on EKS anywhere versus say outpost? >>Yeah, I think outpost did its job. It made customers that were looking at outpost really consider, do I wanna invest in this hardware? Do I, do I wanna have, um, this outpost in my datas center, do I want to manage this over the long term? A lot of those customers just transitioned to the public cloud. They went into AWS proper. Some of those customers stayed on prem because they did have use cases that were, uh, not a good fit for outpost. They weren't a good fit. Uh, in the customer's mind for the public AWS cloud inside an availability zone now happening is as AWS is pushing these services out and saying, we're gonna meet you where you are with 5g. We're gonna meet you where you are with wavelength. We're gonna meet you where you are with EKS anywhere. Uh, I think it has really reduced the amount of times that we have conversations about outposts and it's really increased. We can deploy fast. We don't have to spin up outpost hardware can go deploy EKS anywhere in your VMware environment. And it's increasing the speed of adoption >>For sure. Right? So you guys are making a lot of good business decisions around managed cloud service. That's right. Innovative. Does that get the cloud advisory, the classic professional services for the specific edge piece and, and doing that outside of the availability zones and regions for AWS, um, customers in these new areas that you're helping out are they want cloud, like they want to have modernization a modern applications. Obviously they got data machine learning and AI, all part of that. What's the main product or, or, or gap that you're filling for AWS, uh, outside of their availability zones or their regions that you guys are delivering. What's the key is that they don't have a footprint. Is it that it's not big enough for them? What's the real gap. What's why, why are you so successful? >>So what customers want when they look towards the cloud is they want to focus on what's making them money as a business. They wanna focus on their applications. They wanna focus on their customers. So they look towards AWS cloud and a AWS. You take the infrastructure, you take, uh, some of the higher layers and we'll focus on our revenue generating business, but there's a gap there between infrastructure and revenue generating business that innovative slides into, uh, we help manage the AWS environment. Uh, we help build out these things in local data centers for 32 plus year old company. We have traditional on-premises people that know about deploying hardware that know about deploying VMware to host EKS anywhere. But we also have most of our company totally focused on the AWS cloud. So we're that gap in helping deploy these AWS services, manage them over the long term. So our customers can go to just primarily and totally focusing on their revenue generating business. So >>Basically you guys are basically building AWS edges, >>Correct? >>For correct companies, correct? Mainly because the, the needs are there, you got data, you got certain products, whether it's, you know, low latency type requirements, right. And then they still work with the regions, right. It's all tied together, right. Is that how it >>Works? Right. And, and our customers, even the ones in the edge, they also want us to build out the AWS environment inside the availability zone, because we're always gonna have a failback scenario. If we're gonna deploy fin in the Caribbean, we're gonna talk about hurricanes. And we're gonna talk about failing back into the AWS availability zones. So innovative is filling that gap across the board, whether it be inside the AWS cloud or on the AWS edge. >>All right. So I gotta ask you on the, since you're at the edge in these areas, I won't say underserved, but developing areas where now have data and you have applications that are tapping into that, that requirement. It makes total sense. We're seeing that across the board. So it's not like it's a, it's an outlier it's actually growing. Yeah. There's also the crypto angle. You got the blockchain. Are you seeing any traction at the edge with blockchain? Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech. And in, in the islands there a lot of, lot of, lot of web three happening. What's your, what your view on the web three world right now, relative >>To we, we have some customers actually deploying crypto, especially, um, especially in the Caribbean. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers that are deploying crypto. A lot of, uh, countries are choosing crypto to underlie parts of their central banks. Yeah. Um, so it's, it's up and coming. Uh, I, I have some, you know, personal views that, that crypto is still searching for a use case. Yeah. And, uh, I think it's searching a lot and, and we're there to help customers search for that use case. Uh, but, but crypto, as a, as a, uh, technology, um, lives really well on the AWS edge. Yeah. Uh, and, and we're having more and more people talk to us about that. Yeah. And ask for assistance in the infrastructure, because they're developing new cryptocurrencies every day. Yeah. It's not like they're deploying Ethereum or anything specific. They're actually developing new currencies and, and putting them out there on >>It's interesting. I mean, first of all, we've been doing crypto for many, many years. We have our own little, um, you know, project going on. But if you look talk to all the crypto people that say, look, we do a smart contract, we use the blockchain. It's kind of over a lot of overhead and it's not really their technical already, but it's a cultural shift, but there's underserved use cases around use of money, but they're all using the blockchain just for like smart contracts, for instance, or certain transactions. And they go to Amazon for the database. Yeah. <laugh> they all don't tell anyone we're using a centralized service. Well, what happened to decentralized? >>Yeah. And that's, and that's the conversation performance issue. Yeah. And, and it's a cost issue. Yeah. And it's a development issue. Um, so I think more and more as, as some of these, uh, currencies maybe come up, some of the smart contracts get into, uh, they find their use cases. I think we'll start talking about how does that really live on, on AWS and, and what does it look like to build decentralized applications, but with AWS hardware and services. >>Right. So take me through, uh, a use case of a customer Matthew around the edge. Okay. So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. I want to modernize my business. And I got my developers that are totally peaked up on cloud, but we've identified that it's just a lot of overhead latency issues. I need to have a local edge and serve my a, I also want all the benefit of the cloud. So I want the modern, and I wanna migrate to the cloud for all those cloud benefits and the goodness of the cloud. What's the answer. >>Yeah. Uh, big thing is, uh, industrial manufacturing, right? That's, that's one of the best use cases, uh, inside industrial manufacturing, we can pull in many of the AWS edge services we can bring in, uh, private 5g, uh, so that all the, uh, equipment that, that manufacturing plant can be hooked up, they don't have to pay huge overheads to deploy 5g it's, uh, better than wifi for the industrial space. Um, when we take computing down to that industrial area, uh, because we wanna do pre-procesing on the data. Yeah. We want to gather some analytics. We deploy that with a regular commercially available hardware running VMware, and we deploy EKS anywhere on that. Inside of that manufacturing plant, we can do pre-procesing on things coming out of the robotics, depending on what we're manufacturing. Right. And then we can take those refined analytics and for very low cost with maybe a little bit longer latency transmit those back, um, to the AWS availability zone, the, the standard >>For data, data lake, or whatever, >>To the data lake. Yeah. Data lake house, whatever it might be. Um, and we can do additional data science on that once it gets to the AWS cloud. Uh, but a lot of that, uh, just in time business decisions, just time manufacturing decisions can all take place on an AWS service or services inside that manufacturing plant. And that's, that's one of the best use cases that we're >>Seeing. And I think, I mean, we've been seeing this on the queue for many, many years, moving data around is very expensive. Yeah. But also compute going to the data that saves that cost yeah. On the data transfer also on the benefits of the latency. So I have to ask you, by the way, that's standard best practice now for the folks watching don't move the data unless you have to. Um, but those new things are developing. So I wanna ask you what new patterns are you seeing emerging once this new architecture's in place? Love that idea, localize everything right at the edge, manufacturing, industrial, whatever, the use case, retail, whatever it is. Right. But now what does that change in the, in the core cloud? There's a, there's a system element here. Yeah. What's the new pattern. There's >>Actually an organizational element as well, because once you have to start making the decision, do I put this compute at the point of use or do I put this compute in the cloud? Uh, now you start thinking about where business decisions should be taking place. Uh, so not only are you changing your architecture, you're actually changing your organization because you're thinking, you're thinking about a dichotomy you didn't have before. Uh, so now you say, okay, this can take place here. Uh, and maybe, maybe this decision can wait. Right. And then how do I visualize that? By >>The way, it could be a bot tube doing the work for management. Yeah. <laugh> exactly. You got observability going, right. But you gotta change the database architecture on the back. So there's new things developing. You've got more benefit. There >>Are, there are, and we have more and more people that, that want to talk less about databases and want to talk about data lakes because of this. They want to talk more about customers are starting to talk about throwing away data. Uh, you know, for the past maybe decade. Yeah. It's been store everything. And one day we will have a data science team that we hire in our organization to do analytics on this decade of data. And well, >>I mean, that's, that's a great point. We don't have time to drill into, maybe we do another session this, but the one pattern we're seeing come of the past year is that throwing away data's bad. Even data lakes that so-called turn into data swamps, actually, it's not the case. You look at data, brick, snowflake, and other successes out there. And even time series data, which may seem irrelevant efforts over actually matters when people start retrain their machine learning algorithms. Yep. So as data becomes co as we call it in our last showcase, we did a whole whole an event on this. The data's good in real time and in the lake. Yeah. Because the iteration of the data feeds the machine learning training. Things are getting better with the old data. So it's not throw away. It's not just business benefits. Yeah. There's all kinds of new scale. There >>Are. And, and we have, uh, many customers that are running petabyte level. Um, they're, they're essentially data factories on, on, on premises, right? They're, they're creating so much data and they're starting to say, okay, we could analyze this, uh, in the cloud, we could transition it. We could move petabytes of data to AWS cloud, or we can run, uh, computational workloads on premises. We can really do some analytics on this data transition, uh, those high level and sort of raw analytics back to AWS run 'em through machine learning. Um, and we don't have to transition 10, 12 petabytes of data into AWS. >>So I gotta end the segment on a, on a, kind of a, um, fun, I was told to ask you about your personal background on premise architect, Aus cloud, and skydiving instructor. How does that all work together? What tell, what does this mean? >>Yeah. Uh, I, >>You jumped out a plane and got a job. You got a customer to jump >>Out kind of. So I was, you jumped out. I was teaching Scott eing, uh, before I, before I started in the cloud space, this was 13, 14 years ago. I was a, I still am a Scott I instructor. Uh, I was teaching Scott eing and I heard out of the corner of my ear, uh, a guy that owned an MSP that was lamenting about, um, you know, storing data and how his customers are working. And he can't find enough people to operate all these workloads. So I walked over and said, Hey, this is, this is what I went to school for. Like, I'd love to, you know, I was living in a tent in the woods, teaching skydiving. I was like, I'd love to not live in a tent in the woods. So, uh, I started in the first day there, we had a, and, uh, EC two had just come out <laugh> um, and, uh, like, >>This is amazing. >>Yeah. And so we had this discussion, we should start moving customers here. And, uh, and that totally revolutionized that business, um, that, that led to, uh, that that guy actually still owns a skydiving airport. But, um, but through all of that, and through being in on premises, migrated me and myself, my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, now let's take what we learned in the cloud and, and apply those lessons and those services to premises. >>So it's such a great story. You know, I was gonna, you know, you know, the, the, the, the whole, you know, growth mindset pack your own parachute, you know, uh, exactly. You know, the cloud in the early days was pretty much will the shoot open. Yeah. It was pretty much, you had to roll your own cloud at that time. And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. >>And so was Kubernetes by the way, 2015 or so when, uh, when that was coming out, it was, I mean, it was, it was still, and I, maybe it does still feel like that to some people, right. Yeah. But, uh, it was, it was the same kind of feeling that we had in the early days of AWS, the same feeling we have when we >>It's much now with you guys, it's more like a tandem jump. Yeah. You know, but, but it's a lot of, lot of this cutting stuff like jumping out of an airplane. Yeah. You guys, the right equipment, you gotta do the right things. Exactly. >>Right. >>Matthew, thanks for coming on the cube. Really appreciate it. Absolutely great conversation. Thanks for having me. Okay. The cubes here, lot in San Francisco for AWS summit, I'm John for your host of the cube. Uh, we'll be at a summit in New York coming up in the summer as well. Look up for that. Look at this calendar for all the cube, actually@thecube.net. We'll right back with our next segment after this break. >>Okay. Welcome back everyone to San Francisco live coverage here, we're at the cube, a summit 2022. We're back in person. I'm John furry host of the cube. We'll be at the, a us summit in New York city this summer, check us out then. But right now, two days in San Francisco getting all coverage, what's going on in the cloud, we got a cube alumni and friend of the cube, my dos car CEO, investor, a Sierra, and also an investor and a bunch of startups, angel investor. Gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see you, Pam. Cool. How are you? Good. >>How are you? >>So congratulations on all your investments. Uh, you've made a lot of great successes, uh, over the past couple years, uh, and your company raising, uh, some good cash as Sarah so give us the update. How much cash have you guys raised? What's the status of the company product what's going on? First >>Of all, thank you for having me. We're back to be business with you never while after. Great to see you. Um, so is a company started around four years back. I invested with a few of the investors and now I'm the CEO there. Um, we have raised close to a hundred million there. Uh, the investors are people like nor west Menlo, true ventures, coast, lo ventures, Ram Shera, and all those people, all known guys that Antibe chime Paul Mayard web. So a whole bunch of operating people and, uh, Silicon valley vs are involved. >>And has it gone? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISR is going after is what I call the applying AI for customer service. It operations, it help desk the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and ServiceNow to take it to the next stage? Well, >>I love having you on the cube, Dave and I, and Dave Valenti as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a, you're like a guest analyst. <laugh>, >>You know, >>You >>Get, the comment is fun to talk to you though. >>You get the commentary, you, your, your finger on the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase it. Isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud out scale. You predicted that we talked about in the cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing Docker just raised a hundred million on our $2 billion valuation back from the dead after they pivoted from an enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control, plane emerging, AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded observability there's 10 million observability companies. Data is the key. This is what's your angle on this. What's your take. Yeah, >>No, look, I think I'll give you the view that I see, right? I, from my side, obviously data is very clear. So the things that room system of record that you and me talked about, the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud native, it'll be called AI. NA NA is a new buzzword and using the AI for customer service, it operations. You talk about observability. I call it AI ops, applying AOPs for good old it operation management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events insurance. So I see a lot of work clicking for AIOps and AI service desk. What needs to be helped desk with ServiceNow BMC <inaudible> you see a new ALA emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflows, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with AI workflows. So you'll see AI going >>Off is RPA a company is AI, is RPA a feature of something bigger? Or can someone have a company on RPA UI S one will be at their event this summer? Um, or is it a product company? I mean, I mean, RPA is almost, should be embedded in everything. >>It's a feature. It is very good point. Very, very good thinking. So one is, it's a category for sure. Like, as we thought, it's a category, it's an area where RPA may change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company also, but that automation should be a, in every area. Yeah. Like we call cloud NA and AI NATO it'll become automation. NA yeah. And that's your thinking. >>It's almost interesting me. I think about the, what you're talking about what's coming to mind is I'm kind having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it was middleware. It sat between two things and then the middle and it was software was action. Now you have all kinds of workflows abstractions everywhere. Right? So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed or they integrated. I mean, these are the challenges. This is crazy. What's the, >>So don't about the databases become all polyglot databases. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area, like, as you were talking about, it should be part of ServiceNow. It should be part of ISRA, like every company, every Salesforce. So that's why you see MuleSoft and Salesforce buying RPA companies. So you'll see all the SaaS companies could cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also will have an automation as a layer <inaudible> inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind us, you got the expo hall. You got, um, we're back to vents, but you got, you know, am Clume Ove, uh, Dynatrace data dog, innovative all the companies out here that we know, we interview them all. They're trying to be suppliers to this growing enterprise market. Right. Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Deibel later today. He's a former NEA guy and we always talk to Jerry, Jen, we know all the, the VCs. What does the startups look like? What does the state of the, in your mind, cause you, I know you invest the entrepreneurial founder situation. Cloud's bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's. Yes. Basically. Data's everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to, uh, two things that I'm seeing out there. Remember leaders, how Amazon created the startups 15 years back, everybody built on Amazon now, Azure and GCP. The next layer would be is people don't just build on Amazon. They're gonna build it on top of snowflake. Companies are snowflake becomes a data platform, right? People will build on snowflake. Right? So I see my old boss flagman try to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer. Right? So I think that's the next level of <inaudible> trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis of a couple months ago called castles in the cloud where your Mo is what you do in the cloud. Not necessarily in, in the, in the IP. Um, Dave LAN and I had last reinvent, coined the term super cloud, right? He's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldman S Sachs is doing. You starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage, and guys, Charles Fitzgerald out there who we like was kind of shitting on us saying, Hey, you guys terrible, they didn't get it. Like, yeah, I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. <laugh> cause he's cool. Um, but snowflake is on Amazon. Now. They say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist. And, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. It >>Is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to build everything on Amazon where possible whatever is, I cannot build. I'll make the pass layer. Remember the middle layer pass will be snowflake so I can build it on snowflake. I can use them for data layer if I really need to size build it on force.com Salesforce. Yeah. Right. So I think that's where you'll see. So >>Basically the, if you're an entrepreneur, the, the north star in terms of the, the outcome is be a super cloud. >>It is, >>That's the application on another big CapEx ride, the CapEx of AWS or cloud, >>And that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. Yeah. >>Yeah. How are, how is Amazon and the clouds dealing with these big whales, the snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think they had Redshift. Amazon has got Redshift. Um, but Snowflake's a big customer in the, they're probably paying AWS, I think big bills too. So >>Joe on very good. Cause it's like how Netflix is and Amazon prime, right. Netflix runs on Amazon, but Amazon has Amazon prime that co-optation will be there. So Amazon will have Redshift, but Amazon is also partnering with, uh, snowflake to have native snowflake data warehouses or data layer. So I think depending on the application use case, you have to use each of the above. I think snowflake is here for a long term. Yeah. Yeah. So if I'm building an application, I want to use snowflake then writing from stats. >>Well, I think that it comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, you know, foreclose, your, you that's right with some sort of internal hack. Uh, but I think, I think the general question that I have is that I, I think it's okay to have a super cloud like that because the rising tide is still happening at some point, when does the rising tide stop and do the people shopping up their knives, it gets more competitive or is it just an infinite growth? So >>I think it's growth. You call it cloud scale, you invented the word cloud scale. So I think look, cloud will continually agree, increase. I think there's as long as there more movement from on, uh, OnPrem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations. It helpless, even the customer service service now and, uh, ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So cloud ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go >>Made. I wanna get your thoughts for the folks watching that are, uh, enterprise buyers are practitioners, not suppliers to the more market, feel free to text me or DMing. The next question's really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products, cuz you know, the big enterprises now and you know, small, medium, large and large enterprise are all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between the startup selling to, or growing startup selling to an enterprise? Um, have you seen changes there? I mean I'm seeing some stuff, but why don't get your thoughts on that? What, >>No, it is. If I growing by or 2007 or eight, when I used to talk to you back then and Amazon started very small, right? We are an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or 1% today. Most companies are already spending 20, 30% with startups. Like if I look at a CIO or line of business, it's gone. Yeah. Can it go more? I think it can in the next four, five years. Yeah. Spending on the startups. >>Yeah. And check out, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want to get your reaction because I reference the URL cause it's like, there's like a bunch of companies we've been promoting because the solutions that startups have actually are new stuff. Yes. It's bending, it's shifting for security or using data differently or um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there. Um, and goes back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona, you mentioned AIOps, we've been seeing AIOps IOPS booming and that's creating a new developer paradigm that's right. Which we call coin data as code data as code is like infrastructure is code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this data engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same thing? Do you agree? Um, do you disagree or can you share >>Yourself a lot of first is I see the AIOP solutions in the future should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone there yet. Like I spend a lot of time with data dog, Cisco app Dyna, right? Dynatrace, all this solution. We will go future towards predict to proactive solution with AOPs. But what you bring up a very good point on the data side. I think like we have a Amazon marketplace and Amazon for startup, there should be data exchange where you want to create for AOPs and AI service desk. Customers are give the data, share the data because we thought the data algorithms are useless. I can them, but I gotta train them, modify them, tweak them, make them >>Better, >>Make them better. Yeah. And I think their whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that area is very important. >>You've always been on, um, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to big data days back in 2009, you know, >>Look at, look how much data Rick has grown. >>It is. They doubled the >>Key cloud air kinda went private. So good stuff, man. What are you working on right now? Give a, give a, um, plug for what you're working on. You'll still investing. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. So right. ISRA is my number one baby right now. So I'm looking at that growing customers and my customers are some of them, you like it's zoom auto desk McAfee, uh, grand to so all the top customers, um, mainly for it help desk customer service. AIOps those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What's what's their need? What category is it? >>I think they look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on predict is one area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value problem. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service. >>Great stuff, man. Great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the cube. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of Aish summit 2022. And we're gonna be at Aus summit in San, uh, in New York in the summer. So look for that on this calendar, of course go to eight of us, startups.com. I mentioned that it's decipher all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break. >>Okay. Welcome back everyone. This the cubes coverage here in San Francisco, California, a Davis summit, 2022, the beginning of the event season, as it comes back, little bit smaller footprint, a lot of hybrid events going on, but this is actually a physical event, a summit in new York's coming in the summer. We'll be there too with the cube on the set. We're getting back in the groove psych to be back. We were at reinvent, uh, as well, and we'll see more and more cube, but you're can see a lot of virtual cube outta hybrid cube. We wanna get all those conversations, try to get more interviews, more flow going. But right now I'm excited to have Corey Quinn here on the back on the cube chief cloud economists with bill group. He's the founder, uh, and chief content person always got great angles, fun comedy, authoritative Corey. Great to see you. Thank >>You. Thanks. Coming on. Sure is a lot of words to describe is shit posting, which is how I describe what I tend to do. Most days, >>Shit posting is an art form now. And if you look at mark, Andrew's been doing a lot of shit posting lately. All a billionaires are shit hosting, but they don't know how to do it. Like they're not >>Doing it right? So there's something opportunity there. It's like here's how to be even more obnoxious and incisive. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, it's like, I get excited with a nonsense I can do with a $20 gift card for an AWS credit compared to, oh well, if I could buy a midsize island, do begin doing this from, oh, then we're having fun. >>This shit posting trend. Interesting. I was watching a thread go on about, saw someone didn't get a job because of their shit posting and the employer didn't get it. And then someone on this side I'll hire the guy cuz I get that's highly intelligent shit posting. So for the audience that doesn't know what shit posting is, what is shit posting? >>It's more or less talking about the world of enter prize technology, which even that sentence is hard to finish without falling asleep and toppling out of my chair in front of everyone on the livestream. But it's doing it in such a way that brings it to life that says the quiet part. A lot of the audience is thinking, but generally doesn't say either because they're polite or not a jackass or more prosaically are worried about getting fired for better or worse. I don't don't have that particular constraint, >>Which is why people love you. So let's talk about what you, what you think is, uh, worthy and not worthy in the industry right now, obviously, uh, coupons coming up in Spain, which they're having a physical event, you see the growth of cloud native Amazon's of all the Adams, especially new CEO. Andy's move on to be the chief of all Amazon. Just so I'm the cover of was it time met magazine? Um, he's under a lot of stress. Amazon's changed. Invoice has changed. What's working. What's not, what's rising, what's falling. What's hot. What's not, >>It's easy to sit here and criticize almost anything. These folks do. They're they're effectively in a fishbowl, but I have trouble imagining the logistics. It takes to wind up handling the catering for a relatively downscale event like this one this year, let alone running a 1.7 million employee company having to balance all the competing challenges and pressures and the rest. I, I just can't fathom what it would be like to look at all of AWS. And it's, it's sprawling immense that dominates our entire industry and say, okay, this is a good start, but I, I wanna focus on something with a broader remit. What is that? How do you even get into that position? And you can't win once you're there. All you can do is hold onto the tiger and hope you don't get mold. >>Well, there's a lot of force for good conversations. Seeing a lot of that going on, Amazon's trying to port eight of us is trying to portray themselves as you know, the Pathfinder, you know, you're the pioneer, um, force for good. And I get that and I think that's a good angle as cloud goes mainstream. There's still the question of, we had a guy on just earlier, who was a skydiving instructor and we were joking about the early days of cloud. Like that was like skydiving, build a parachute open, you know, and now same kind of thing. As you move to edge, things are like reliable in some areas, but still new, new fringe, new areas. That's crazy. Well, >>Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon and his backfill replacement. The AWS CISO is CJ. Moses who as a hobby races, a as a semi-pro race car driver to my understanding, which either, I don't know what direction to take that in either. This is what he does to relax or ultimately, or ultimately it's. Huh? That, that certainly says something about risk assessment. I'm not entirely sure what, but okay. <laugh> either way, sounds like more exciting. Like I better >>Have a replacement ready <laugh> I, in case something goes wrong on the track, highly >>Available >>CSOs. I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, which I was never a fan of until I watched that Netflix series. But when you look at the formula one, it's pretty cool. Cause it's got some tech angles, I get the whole data instrumentation thing, but the most coolest thing about formula one is they have these new rigs out. Yeah. Where you can actually race in east sports with other people in pure simulation of the race car. You gotta get the latest and videographic card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're basically simulating racing. >>Oh, it's great too. And I can see the appeal of these tech companies getting into it because these things are basically rocket shifts. When those cars go, like they're sitting there, we can instrument every last part of what is going on inside that vehicle. And then AWS crops up. And we can bill on every one of those dimensions too. And it's like slow down their hasty pudding one step at a time. But I do see the appeal. >>So I gotta ask you about, uh, what's going on in your world. I know you have a lot of great success. We've been following you in the queue for many, many years. Got a great newsletter, check out Corey Quinn's newsletter, uh, screaming in the cloud program. Uh, you're on the cutting edge and you've got a great balance between really being snarky and, and, and really being delivering content. That's exciting, uh, for people, uh, with a little bit of an edge, um, how's that going? Uh, what's the blowback, any blowback late? Has there been uptick? What was, what are some of the things you're hearing from your audience, more Corey, more Corey. And then of course the, the PR team's calling you >>The weird thing about having an audience beyond a certain size is far and away as a landslide. The most common response I get is silence where it's high. I'm emailing an awful lot of people at last week in AWS every week and okay. They must not have heard me it. That is not actually true. People just generally don't respond to email because who responds to email newsletters. That sounds like something, a lunatic might do same story with response to live streams and podcasts. It's like, I'm gonna call into that am radio show and give them a piece of my mind. People generally don't do >>That. We should do that. Actually. I think you're people would call in, oh, >>I, I think >>I guarantee we had that right now. People would call in and say, Corey, what do you think about X? >>Yeah. It not, everyone understands the full context of what I do. And in fact, increasingly few people do and that's fine. I, I keep forgetting that sometimes people do not see what I'm doing in the same light that I do. And that's fine. Blowback has been largely minimal. Honestly, I am surprised about anything by how little I have gotten over the last five years of doing this, but it would be easier to dismiss me if I weren't generally. Right. When, okay, so you launch this new service and it seems pretty crappy to me cuz when I try and build something, it falls over and begs for help. And people might not like hearing that, but it's what customers are finding too. Yeah. I really am the voice of the >>Customer. You know, I always joke with Dave Alane about how John Fort's always at, uh, um, reinvent getting the interview with jazzy now, Andy we're there, you're there. And so we have these rituals at the events. It's all cool. Um, one of the rituals I like about your, um, your content is you like to get on the naming product names. Um, and, and, and, and, and kind of goof on that. Now why I like is because I used to work at ETT Packard where they used to name things as like engineers, HP 1 0, 0 5, or we can't call, we >>Have a new monitor. How are we gonna name it? Throw the wireless keyboard down the stairs again. And then there you go. Yeah. >>It's and the old joke at HP was if they, if they invented SU sushi, they'd say, yeah, we can't call sushi. It's cold, dead fish. That's what it is. And so the joke was cold. Dead fish is a better name than sushi. So you know is fun. So what's the, what are the, how's the Amazon doing in there? Have they changed their naming, uh, strategy, uh, on some of their, their >>Producting. So they're going in different directions. When they named Amazon Aurora, they decided to explore a new theme of Disney princesses as they go down those paths. And some things are more descriptive. Some people are clearly getting bonused on number of words, they can shove into it. Like the better a service is the longer it's name. Like AWS systems manager, session manager is a great one. I love the service ridiculous name. They have a systems manager, parameter store, which is great. They have secrets manager, which does the same thing. It's two words less, but that one costs money in a way that systems manage your parameter store does not. It's fun. >>What's your, what's your favorite combination of acronyms >>Combination >>Of gots. You got EMR, you got EC two, you got S3 SQS. Well, RedShift's not an acronym you >>Gets is one of my personal favorites because it's either elastic block store or elastic bean stock, depending entirely on the context of the conversation, they >>Shook up bean stock or is that still around? Oh, >>They never turn anything off. They're like the anti Google, Google turns things off while they're still building it. Whereas Amazon is like, well, we built this thing in 2005 and everyone hates it, but while we certainly can't change it, now it has three customers on it. John three <laugh>. Okay. Simple BV still haunts our dreams. >>I, I actually got an email on, I saw one of my, uh, servers, all these C twos were being deprecated and I got an email I'm I couldn't figure out. Why can you just like roll it over? Why, why are you telling me? Just like, give me something else. All right. Okay. So let me talk about, uh, the other things I want to ask you, is that like, okay. So as Amazon better in some areas where do they need more work in your opinion? Because obviously they're all interested in new stuff and they tend to like put it out there for their end to end customers. But then they've got ecosystem partners who actually have the same product. Yes. And, and this has been well documented. So it's, it's not controversial. It's just that Amazon's got a database Snowflake's got out database service. So Redshift, snowflake data breach is out there. So you got this co-op petition. Yes. How's that going? And what do you hearing about the reaction to any of that stuff? >>Depends on who you ask. They love to basically trot out a bunch of their partners who will say nice things about them. And it very much has heirs of, let's be honest, a hostage video, but okay. Cuz these companies do partner with, and they cannot afford to rock the boat too far. I'm not partnered with anyone. I can say what I want. And they're basically restricted to taking away my birthday at worse so I can live with that. >>All right. So I gotta ask about multicloud. Cause obviously the other cloud shows are coming up. Amazon hated that word multicloud. Um, a lot of people though saying, you know, it's not a real good marketing word. Like multicloud sounds like, you know, root canal. Mm-hmm <affirmative> right. So is there a better description for multicloud? >>Multiple single >>Cloudant loves that term. Yeah. >>You know, you're building in multiple single points of failure, do it for the right reasons or don't do it as a default. I believe not doing it is probably the right answer. However, and if I were, if I were Amazon, I wouldn't want to talk about my multi-cloud either as the industry leader, let's talk about other clouds, bad direction to go in from a market cap perspective. It doesn't end well for you, but regardless of what they want to talk about, or don't want to talk about what they say, what they don't say, I tune all of it out. And I look at what customers are doing and multi-cloud exists in a variety of forms. Some brilliant, some brain dead. It depends a lot on, but my general response is when someone gets on stage from a company and tells me to do a thing that directly benefits their company. I am skeptical at best. Yeah. When customers get on stage and say, this is what we're doing because it solves problems. That's when I shut up and listen. >>Yeah, course. Awesome. Corey, I gotta ask you a question cause I know you we've been, you know, fellow journeyman and the, and the cloud journey going to all the events and then the pandemic hit. We now in the third year, who knows what it's gonna gonna end. Certainly events are gonna look different. They're gonna be either changing footprint with the virtual piece, new group formations. Community's gonna emerge. You've got a pretty big community growing and it's growing like crazy. What's the weirdest or coolest thing or just big changes you've seen with the pandemic, uh, from your perspective, cuz you've been in the you're in the middle of the whitewater rafting. You've seen the events you circle offline. You saw the online piece, come in, you're commentating, you're calling balls and strikes in the industry. You got a great team developing over there. Duck build group. What's the big aha moment that you saw with the pandemic. Weird, funny, serious, real in the industry and with customers what's >>Accessibility. Reinvent is a great example. When in the before times it's open to anyone who wants to attend, who can pony up two grand and a week in Las Vegas and get to Las Vegas from wherever they happen to be by moving virtually suddenly it, it embraces the reality that talent is evenly. Distributed. Opportunity is not. And that means that suddenly these things are accessible to a wide swath of audience and potential customer base and the rest that hadn't been invited to the table previously, it's imperative that we not lose that. It's nice to go out and talk to people and have people come up and try and smell my hair from time to time, I smelled delightful. Let me assure you. But it was, but it's also nice to be. >>I have a product for you if you want, you know? Oh, >>Oh excellent. I look forward to it. What is it? Pudding? Why not? <laugh> >>What else have you seen? So when accessibility for talent. Yes. Which by the way is totally home run. What weird things have happened that you've seen? Um, that's >>Uh, it's, it's weird, but it's good that an awful lot of people giving presentation have learned to tighten their message and get to the damn point because most people are not gonna get up from a front row seat in a conference hall, midway through your Aing talk and go somewhere else. But they will change a browser tab and you won't get them back. You've gotta be on point. You've gotta be compelling if it's going to be a virtual discussion. Yeah. >>And you turn off your iMessage too. >>Oh yes. It's always fun in the, in the meetings when you're ho to someone and their colleague is messaging them about, should we tell 'em about this? And I'm sitting there reading it and it's >>This guy is really weird. Like, >>Yes I am and I bring it into the conversation and then everyone's uncomfortable. It goes, wow. Why >>Not? I love when my wife yells at me over I message. When I'm on a business call, like, do you wanna take that about no, I'm good. >>No, no. It's better off. I don't the only entire sure. It's >>Fine. My kids text. Yeah, it's fine. Again, that's another weird thing. And, and then group behavior is weird. Now people are looking at, um, communities differently. Yes. Very much so, because if you're fatigued on content, people are looking for the personal aspect. You're starting to see much more of like yeah. Another virtual event. They gotta get better. One and two who's there. >>Yeah. >>The person >>That's a big part of it too is the human stories are what are being more and more interesting. Don't get up here and tell me about your product and how brilliant you are and how you built it. That's great. If I'm you, or if I wanna work with you or I want to compete with you or I want to put on my engineering hat and build it myself. Cause why would I buy anything? That's more than $8. But instead, tell me about the problem. Tell me about the painful spot that you specialize in. Yeah. Tell me a story there. >>I, I think >>That gets a glimpse in a hook and makes >>More, more, I think you nailed it. Scaling storytelling. Yes. And access to better people because they don't have to be there in person. I just did a thing. I never, we never would've done the queue. We did. Uh, Amazon stepped up in sponsors. Thank you, Amazon for sponsoring international women's day, we did 30 interviews, APAC. We did five regions and I interviewed this, these women in Asia, Pacific eight, PJ, they call for in this world. And they're amazing. I never would've done those interviews cuz I never, would've seen 'em at an event. I never would've been in pan or Singapore, uh, to access them. And now they're in the index, they're in the network. They're collaborating on LinkedIn. So a threads are developing around connections that I've never seen before. Yes. Around the content. >>Absolutely >>Content value plus and >>Effecting. And that is the next big revelation of this industry is going to realize you have different companies. And, and I Amazon's case different service teams all competing with each other, but you have the container group and you have the database group and you have the message cuing group. But customers don't really want to build things from spare parts. They want a solution to a problem. I want to build an app that does Twitter for pets or whatever it is I'm trying to do. I don't wanna basically have to pick and choose and fill my shopping cart with all these different things. I want something that's gonna basically give me what I'm trying to get as close to turnkey as possible. Moving up the stack. That is the future. And just how it gets here is gonna be >>Well we're here at Corey Quinn, the master of the master of content here in the a ecosystem. Of course we we've been following up from the beginning. His great guy, check out his blog, his site, his newsletter screaming podcast. Corey, final question for, uh, what are you here doing? What's on your agenda this week in San Francisco and give a plug for the duck build group. What are you guys doing? I know you're hiring some people what's on the table for the company. What's your focus this week and put a plug in for the group. >>I'm here as a customer and basically getting outta my cage cuz I do live here. It's nice to actually get out and talk to folks who are doing interesting things at the duck bill group. We solved one problem. We fixed the horrifying AWS bill, both from engineering and architecture, advising as well as negotiating AWS contracts because it turns out those things are big and complicated. And of course my side media projects last week in aws.com, we are, it it's more or less a content operation where I in my continual and ongoing love affair with the sound of my own voice. >><laugh> and you're good. It's good content it's on, on point fun, Starky and relevant. So thanks for coming to the cube and sharing with us. Appreciate it. No >>Thank you button. >>You. Okay. This the cube covers here in San Francisco, California, the cube is back going to events. These are the summits, Amazon web services summits. They happen all over the world. We'll be in New York and obviously we're here in San Francisco this week. I'm John fur. Keep, keep it right here. We'll be back with more coverage after this short break. Okay. Welcome back everyone. This's the cubes covers here in San Francisco, California, we're live on the show floor of AWS summit, 2022. I'm John for host of the cube and remember AWS summit in New York city coming up this summer, we'll be there as well. And of course reinvent the end of the year for all the cube coverage on cloud computing and AWS two great guests here from the APN global APN Sege chef Jenko and Jeff Grimes partner lead Jeff and Sege is doing partnerships global APN >>AWS global startup program. Yeah. >>Okay. Say that again. >>AWS. We'll start >>Program. That's the official name. >>I love >>It too long, too long for me. Thanks for coming on. Yeah, >>Of course. >>Appreciate it. Tell us about what's going on with you guys. What's the, how was you guys organized? You guys we're obviously we're in San Francisco bay area, Silicon valley, zillions of startups here, New York. It's got another one we're gonna be at tons of startups. A lot of 'em getting funded, big growth and cloud big growth and data secure hot in all sectors. >>Absolutely. >>So maybe, maybe we could just start with the global startup program. Um, it's essentially a white glove service that we provide to startups that are built on AWS. And the intention there is to help identify use cases that are being built on top of AWS. And for these startups, we want to pro vibe white glove support in co building products together. Right. Um, co-marketing and co-selling essentially, um, you know, the use cases that our customers need solved, um, that either they don't want to build themselves or are perhaps more innovative. Um, so the, a AWS global startup program provides white glove support. Dedicat at headcount for each one of those pillars. Um, and within our program, we've also provided incentives, programs go to market activities like the AWS startup showcase that we've built for these startups. >>Yeah. By the way, AWS startup, AWS startups.com is the URL, check it out. Okay. So partnerships are key. Jeff, what's your role? >>Yeah. So I'm responsible for leading the overall effort for the AWS global startup program. Um, so I've got a team of partner managers that are located throughout the us, uh, managing a few hundred startup ISVs right now. <laugh> >>Yeah, you got a >>Lot. We've got a lot. >>There's a lot. I gotta, I gotta ask a tough question. Okay. I'm I'm a startup founder. I got a team. I just got my series a we're grown. I'm trying to hire people. I'm super busy. What's in it for me. Yeah. What do you guys bring to the table? I love the white glove service, but translate that what's in it for what do I get out of it? What's >>A story. Good question. I focus, I think. Yeah, because we get, we get to see a lot of partners building their businesses on AWS. So, you know, from our perspective, helping these partners focus on what, what do we truly need to build by working backwards from customer feedback, right? How do we effectively go to market? Because we've seen startups do various things, um, through trial and error, um, and also just messaging, right? Because oftentimes partners or rather startups, um, try to boil the ocean with many different use cases. So we really help them, um, sort of laser focus on what are you really good at and how can we bring that to the customer as quickly as possible? >>Yeah. I mean, it's truly about helping that founder accelerate the growth of their company, right. And there's a lot that you can do with AWS, but focus is truly the key word there because they're gonna be able to find their little piece of real estate and absolutely deliver incredible outcomes for our customers. And then they can start their growth curve there. >>What are some of the coolest things you've seen with the APN that you can share publicly? I know you got a lot going on there, a lot of confidentiality. Um, but you know, we're here a lot of great partners on the floor here. I'm glad we're back at events. Uh, a lot of stuff going on digitally with virtual stuff and, and hybrid. What are some of the cool things you guys have seen in the APN that you can point to? >>Yeah, absolutely. I mean, I can point to few, you can take them. So, um, I think what's been fun over the years for me personally, I came from a startup brand sales at an early stage startup and, and I went through the whole thing. So I have a deep appreciation for what these guys are going through. And what's been interesting to see for me is taking some of these early stage guys, watching them progress, go public, get acquired and see that big day mm-hmm <affirmative>, uh, and being able to point to very specific items that we help them to get to that point. Uh, and it's just a really fun journey to watch. >>Yeah. I, and part of the reason why I really, um, love working at the AWS, uh, global startup program is working with passionate founders. Um, I just met with a founder today that it's gonna, he's gonna build a very big business one day, um, and watching them grow through these stages and supporting that growth. Um, I like to think of our program as a catalyst for enterprise is sort of scale. Yeah. Um, and through that we provide visibility, credibility and growth opportunities. >>Yeah. A lot, a lot of partners too. What I found talking to staff founders is when they have that milestone, they work so hard for it. Whether it's a B round C round Republic or get bought. Yeah. Um, then they take a deep breath and they look back at wow, what a journey it's been. So it's kind of emotional for sure. But still it's a grind. Right? You gotta, I mean, when you get funding, it's still day one. You don't stop. It's no celebrate, you got a big round or valuation. You still gotta execute >>And look it's hypercompetitive and it's brutally difficult. And our job is to try to make that a little less difficult and navigate those waters. Right. Where ever everyone's going after similar things. >>Yeah. And I think as a group element too, I observe that startups that I, I meet through the APN has been interesting because they feel part of AWS. Yeah, totally. As a group of community, as a vibe there. Um, I know they're hustling, they're trying to make things happen. But at the same time, Amazon throws a huge halo effect. I mean, that's a huge factor. I mean, you guys are the number one cloud in the business, the growth in every sector is booming. Yeah. And if you're a startup, you don't have that luxury yet. And look at companies like snowflake that built on top of AWS. I mean, people are winning by building on AWS. >>Yeah. And our, our, our program really validates their technology first. So we have, what's all the foundation's technical review that we put all of our startups through before we go to market. So that when enterprise customers are looking at startup technology, they know that it's already been vetted. And, um, to take that a step further and help these partners differentiate, we use programs like the competency programs, the DevOps competencies, the security competency, which continues to help, um, provide sort of a platform for these startups, help them differentiate. And also there's go to market benefits that are associated with that. >>Okay. So let me ask the, the question that's probably on everyone's mind, who's watching, certainly I asked this a lot. There's a lot of companies startups out there who makes the cut, is there a criteria cut? It's not like it's sports team or anything, but like sure. Like there's activate program, which is like, there's hundreds of thousands of startups out there. Not everyone is at the APN. Right? Correct. So ISVs again, that's a whole nother, that's a more mature partner that might have, you know, huge market cap or growth. How, how do you guys focus? How do you guys focus? I mean, you got a good question, you know, thousand flowers blooming all the time. Is there a new way you guys are looking at it? I know there's been some talk about restructure or, or new focus. What's the focus. >>Yeah. It's definitely not an easy task by any means. Um, but you know, I recently took over this role and we're really trying to establish focus areas, right. So obviously a lot of the ISVs that we look after are infrastructure ISVs. That's what we do. Uh, and so we have very specific pods that look after different type of partners. So we've got a security pod, we've got a DevOps pod, we've got core infrastructure, et cetera. And really, we're trying to find these ISVs that can solve, uh, really interesting AWS customer. >>You guys have a deliberate, uh, focus on these pillars. So what infrastructure, >>Security, DevOps, and data and analytics, and then line of business >>Line, business line business, like web >>Marketing, business apps, >>Owner type thing. Exactly. >>Yeah, exactly. >>So solutions there. Yeah. More solutions and the other ones are like hardcore. So infrastructure as well, like storage back up ransomware kind of stuff, or, >>Uh, storage, networking. >>Okay. Yeah. The classic >>Database, et cetera. Right. >>And so there's teams on each pillar. >>Yep. So I think what's, what's fascinating for the startups that we cover is that they've got, they truly have support from a build market sell perspective, right. So you've got someone who's technical to really help them get the technology, figured out someone to help them get the marketing message dialed and spread, and then someone to actually do the co-sell, uh, day to day activities to help them get in front of customers. >>Probably the number one request that we always ask for Amazon is can wish that sock report, oh, download it on the console, which we use all the time. <laugh> exactly. But security's a big deal. I mean, you know, ask the res are evolving, that role of DevOps is taking on dev SecOps. Um, I, I can see a lot of customers having that need for a relationship to move things faster. Do you guys provide like escalation or is that a part of a service or that not part of, uh, uh, >>Yeah, >>So the partner development manager can be an escalation for absolutely. Think of that. 'em as an extension of your business inside of AWS. >>Great. And you guys, how is that partner managers, uh, measure >>On those three pillars? Right. Got it. Are we billing, building valuable use cases? So product development go to market, so go to market activities, think blog, posts, webinars, case studies, so on and so forth. And then co-sell not only are we helping these partners win their current opportunities that they are sourcing, but can we also help them source net new deals? Yeah. Right. That's very, >>I mean, top asked from the partners is get me in front of customers. Right. Um, not an easy task, but that's a huge goal of ours to help them grow their top line. >>Right. Yeah. In fact, we had some interviews here on the cube earlier talking about that dynamic of how enterprise customers are buying. And it's interesting, a lot more POCs. I have one partner here that you guys work with, um, on observability, they got a huge POC with capital one mm-hmm <affirmative> and the enterprises are engaging the star ups and bringing them in. So the combination of open source software enterprises are leaning into that hard and bringing young growing startups in mm-hmm <affirmative>. Yep. So I could see that as a huge service that you guys can bring people in. >>Right. And they're bringing massively differentiated technology to the table. The challenge is they just might not have the brand recognition. The, at the big guys have mm-hmm <affirmative>. And so that's, our job is how do you get that great tech in front of the right situations? >>Okay. So my next question is about the show here, and then we'll talk globally. So here in San Francisco sure. You know, Silicon valley bay area, San Francisco bay area, a lot of startups, a lot of VCs, a lot of action. Mm-hmm <affirmative> so probably a big market for you guys. Yeah. So what's exciting here in SF. And then outside of SF, you guys have a global pro, have you see any trends that are geography based or is it sure areas more mature? There's certain regions that are better. I mean, I just interviewed a company here. That's doing, uh, a AWS edge really well in these cases. It's interesting that these, the partners are filling a lot of holes and gaps in the opportunities with a AWS. So what's exciting here. And then what's the global perspective. >>Yeah, totally. So obviously see a ton of partners from the bay area that we support. Um, but we're seeing a lot of really interesting technology come out of AMEA specifically. Yeah. Uh, and making a lot of noise here in the United States, which is great. Um, and so, you know, we definitely have that global presence and, and starting to see super differentiated technology come out of those regions. >>Yeah. Especially Tel Aviv. Yeah. >>Amy and real quick before you get into surge. It's interesting. The VC market in, in Europe is hot. They've got a lot of unicorns coming in. We've seen a lot of companies coming in. They're kind of rattling their own, you know, cage right now. Hey, look at us. Let's see if they crash, you know, but we don't see that happening. I mean, people have been predicting a crash now in, in the startup ecosystem for least a year. It's not crashing. In fact, funding's up. >>Yeah. The pandemic was hard on a lot of startups for sure. Yeah. Um, but what we've seen is many of these startups, they, as quickly as they can grow, they can also pivot as, as, as well. Um, and so I've actually seen many of our startups grow through the demo because their use cases are helping customers either save money, become more operationally efficient and provide value to leadership teams that need more visibility into their infrastructure during a pandemic. >>It's an interesting point. I talked to Andy jazzy and Adam Celski both say the same thing during the pandemic. Necessity's the mother of all invention. Yep. And startups can move fast. So with that, you guys are there to assist if I'm a startup and I gotta pivot cuz remember iterate and pivot, iterate and pivot. So you get your economics, that's the playbook of the ventures and the models. >>Exactly. How >>Do you guys help me do that? Give me an example of what me through. Pretend me, I'm a start up. Hey, I'm on the cloud. Oh my God. Pandemic. They need video conferencing. Hey cube. Yeah. What do I need? Search? What, what do >>I do? That's a good question. First thing is just listen. Yeah. I think what we have to do is a really good job of listening to the partner. Um, what are their needs? What is their problem statement? Where do they want to go at the end of the day? Um, and oftentimes because we've worked with, so how many successful startups that have come out of our program, we have, um, either through intuition or a playbook determined what is gonna be the best path forward and how do we get these partners to stop focusing on things that will eventually, um, just be a waste of time. Yeah. And, or not provide, or, you know, bring any fruit to the table, which, you know, essentially revenue. >>Well, we love startups here in the cube because one, um, they have good stories, they're oil and cutting edge, always pushing the envelope and they're kind of disrupting someone else. Yeah. And so they, they have an opinion. They don't mind sharing on camera. So love talking to startups. We love working with you guys on our startups. Showcases startups.com. Check out AWS startups.com and she got the showcase. So is, uh, final word. I'll give you guys the last word. What's the bottom line bumper sticker for AP globe. The global APN program summarize the opportunity for startups, what you guys bring to the table and we'll close it out. Totally. We'll start >>With you. Yeah. I think the AWS global startup programs here to help companies truly accelerate their business full stop. Right. And that's what we're here for. Love it. >>It's a good way to, it's a good way to put it. Dato yeah. >>All right. Thanks for coming out. Thanks John. Great to see you love working with you guys. Hey, startups need help. And the growing and huge market opportunities, the shift cloud scale data engineering, security infrastructure, all the markets are exploding in growth because of the digital transformation of realities here, open source and cloud. I'll making it happen here in the cube in San Francisco, California. I'm John furrier, your host. Thanks for >>Watching Cisco, John. >>Hello and welcome back to the Cube's live coverage here in San Francisco, California for AWS summit, 2022. I'm John for host of the cube. Uh, two days of coverage, AWS summit, 2022 in New York city coming up this summer will be there as well. Events are back. The cube is back of course, with the cube virtual cube hybrid, the cube.net. Check it out a lot of content this year more than ever a lot more cloud data cloud native, modern applic is all happening. Got a great guest here. Jeremy Burton, Cub alumni, uh, CEO of observe Inc in the middle of all the cloud scale, big data observability, Jeremy. Great to see you. Thanks. >>Coming on. Always great to come and talk to you on the queue, man. It's been been a few years, so, >>Um, well you, you got your hands. You're in the trenches with great startup, uh, good funding, great board, great people involved in the observability Smith hot area, but also you've been a senior executive president of Dell EMC. Um, 11 years ago you had a vision and you actually had an event called cloud meets big data. Um, yeah. And it's here, you predicted it 11 years ago. Um, look around it's cloud meets big data. >>Yeah. I mean the, the cloud thing I think, you know, was, was probably already a thing, but the big data thing I do claim credit for, for sort of catching that bus early, um, you know, we, we were on the, the, the bus early and, and I think it was only inevitable. Like, you know, if you could bring the economics and the compute of cloud to big data, you, you could find out things you could never possibly imagine. >>So you're close to a lot of companies that we've been covering deeply snowflake, obviously you involved, uh, at the board level, the other found, you know, the people there, uh, cloud, you know, Amazon, you know, what's going on here? Yeah. You're doing a startup as the CEO at the helm, uh, chief of observ, Inc, which is an observability, which is to me in the center of this confluence of data engineering, large scale integrations, um, data as code integrating into applications. I mean, it's a whole nother world developing, like you see with snowflake, it means snowflakes is super cloud as we call it. So a whole nother wave is here. What's your, what's this wave we're on what's how would you describe the wave? >>Well, a couple of things, I mean, people are, I think right in more software than, than ever before are why? Because they've realized that if, if you don't take your business online and offer a service, then you become largely irrelevant. And so you you've got a whole set of new applications. I think, I think more applications now than any point. Um, not, not just ever, but the mid nineties, I always looked at as the golden age of application development. Now, back then people were building for windows. Well, well now they're building for things like AWS is now the platform. Um, so you've got all of that going on. And then at the same time, the, the side effect of these applications is they generate data and lots of data. And the, you know, there's sort of the transactions, you know, what you bought today are something like that. But then there's what we do, which is all the telemetry, all the exhaust fumes. And I think people really are realizing that their differentiation is not so much their application. It's their understanding of the data. Can, can I understand who my best customers are, what I sell today. If people came to my website and didn't buy, then why not? Where did they drop off all of that? They wanna analyze. And, and the answers are all in the data. The question is, can you understand it >>In our last startup showcase, we featured data as code one of the insights that we got out of that, and I wanna get your opinion on our reaction to is, is that data used to be put into a data lake and turns into a data swamp or throw into the data warehouse. And then we'll do some queries, maybe a report once in a while. And so data, once it was done, unless it was real time, even real time was not good anymore after real time. That was the old way. Now you're seeing more and more, uh, effort to say, let's go look at the data, cuz now machine learning is getting better. Not just train once mm-hmm <affirmative> they're iterating. Yeah. This notion of iterating and then pivoting, iterating and pivoting. Yeah, that's a Silicon valley story. That's like how startups work, but now you're seeing data being treated the same way. So now you have another, this data concept that's now yeah. Part of a new way to create more value for the apps. So this whole, this whole new cycle of >>Yeah. >>Data being reused and repurposed and figured out and yeah, >>Yeah. I'm a big fan of, um, years ago. Uh, uh, just an amazing guy, Andy McAfee at the MIT C cell labs I spent time with and he, he had this line, which still sticks to me this day, which is look I'm I'm. He said I'm part of a body, which believes that everything is a matter of data. Like if you have enough data, you can answer any question. And, and this is going back 10 years when he was saying these kind of things and, and certainly, you know, research is on the forefront. But I think, you know, starting to see that mindset of the, the sort of MIT research be mainstream, you know, in enterprises, they they're realizing that. Yeah, it is about the data. You know, if I can better understand my data better than my competitor, then I've got an advantage. And so the question is is, is how, what, what technologies and what skills do I need in my organization to, to allow me to do that. >>So let's talk about observing you the CEO of, okay. Given you've seen the ways before you're in the front lines of observability, which again is in the center of all this action what's going on with the company. Give a quick minute to explain, observe for the folks who don't know what you guys do. What's the company doing? What's the funding status, what's the product status and what's the customer status. Yeah. >>So, um, we realized, you know, a handful of years ago, let's say five years ago that, um, look, the way people are building applications is different. They they're way more functional. They change every day. Uh, but in some respects they're a lot more complicated. They're distributed. They, you know, microservices architectures and when something goes wrong, um, the old way of troubleshooting and solving problems was not gonna fly because you had SA so much change going into production on a daily basis. It was hard to tell like where the problem was. And so we thought, okay, it's about time. Somebody looks at the exhaust fumes from this application and all the telemetry data and helps people troubleshoot and make sense of the problems that they're seeing. So, I mean, that's observability, it's actually a term that goes back to the 1960s. It was a guy called, uh, Rudolph like, like everything in tech, you know, it's, it's a reinvention of something from years gone by. >>Um, there's a guy called, um, Rudy Coleman in 1960s coiner term and, and, and the term was being able to determine the state of a system by looking at its external outputs. And so we've been going on this for, uh, the best part of four years now. Um, it took us three years just to build the product. I think, I think what people don't appreciate these days often is the barrier to entry in a lot of these markets is quite high. You, you need a lot of functionality to have something that's credible with a customer. Um, so yeah, this last year we, we, we did our first year selling, uh, we've got about 40 customers now. Um, we just we've got great investors for the hill ventures. Uh, I mean, Mike SP who was, you know, the, the guy who was the, really, the first guy in it snowflake and the, the initial investor were fortunate enough to, to have Mike and our board. And, um, you know, part of the observed story is closely knit with snowflake all of that time with your data, you know, we, we store in there. >>So I want to get, uh, yeah. Pivot to that. Mike SP snowflake, Jeremy Burton, the cube kind of, kind of same thinking this idea of a super cloud or what snowflake became. Yeah. Snowflake is massively successful on top of AWS. Mm-hmm <affirmative> and now you're seeing startups and companies build on top of snowflake. Yeah. So that's become an entrepreneurial story that we think that to go big in the cloud, you can have a cloud on a cloud, uh, like as Jerry, Jerry Chan and Greylock calls it, castles in the cloud where there are moats in the cloud. So you're close to it. I know you, you're doing some stuff with snowflake. So as a startup, what's your view on building on top of say a snowflake or an AWS, because again, you gotta go where the data is. You need all the data. >>Yeah. So >>What's your take on that? I mean, >>Having enough gray hair now, um, you know, again, in tech, I think if you wanna predict the future, look at the past. And, uh, you know, 20 years ago, 25 years ago, I was at a, a smaller company called Oracle and an Oracle was the database company. And, uh, their, their ambition was to manage all of the world's transactional data. And they built on a platform or a couple of platforms, one, one windows, and the other main one was Solaris. And so at that time, the operating system was the platform. And, and then that was the, you know, ecosystem that you would compete on top of. And then there were companies like SAP that built applications on top of Oracle. So then wind the clock forward 25 years gray hairs. <laugh> the platform, isn't the operating system anymore. The platform is AWS, you know, Google cloud. I gotta probably look around if I say that in. Yeah, >>It's okay. Columbia, but hyperscale. Yeah. CapX built out >>That is the new platform. And then snowflake comes along. Well, their aspiration is to manage all of the, not just human generated data, but machine generated data in the world of cloud. And I think they they've done an amazing job are doing for the, I'd say, say the, the big data world, what Oracle did for the relational data world, you know, way back 25 years ago. And then there are folks like us come along and, and of course my ambition would be, look, if, if we can be as successful as an SAP building on top of snowflake, uh, as, as they were on top of Oracle, then, then we'd probably be quite happy, >>Happy. So you're building on top of snowflake, >>We're building on top of snowflake a hundred percent. And, um, you know, I've had folks say to me, well, aren't you worried about that? Isn't that a risk? It's like, well, that that's a risk. You're >>Still on the board. >>Yeah. I'm still on the board. Yeah. That's a risk I'm prepared to take. I am more on snowing. >>It sounds well, you're in a good spot. Stay on the board, then you'll know what's going on. Okay. No, yeah. Serious one. But the, this is a real dynamic. It is. It's not a one off its >>Well, and I do believe as well that the platform that you see now with AWS, if you look at the revenues of AWS is in order of magnitude, more than Microsoft was 25 years ago with windows mm-hmm <affirmative>. And so I've believe the opportunity for folks like snowflake and, and folks like observe it. It's an order of magnitude more than it was for the Oracle and the SAPs of the old world. >>Yeah. And I think this is really, I think this is something that this next generation of entrepreneurship is the go big scenario is you gotta be on a platform. Yeah. >>It's quite easy >>Or be the platform, but it's hard. There's only like how seats were at that table left >>Well value migrates up over time. So, you know, when the cloud thing got going, there were probably 10, 20, 30, you know, rack space and there's 1,000,001 infrastructure, a service platform as a service. My, my old, uh, um, employee EMC, we had pivotal, you know, pivotal was a platform as a service. Don't hear so much about it these days, but initially there's a lot of players and then it consolidates. And then to, to like extract, uh, a real business, you gotta move up, you gotta add value, you gotta build databases, then you gotta build applications. So >>It's interesting. Moving from the data center of the cloud was a dream for starters within if the provision, the CapEx. Yeah. Now the CapEx is in the cloud. Then you build on, on top of that, you got snowflake. Now you got on top of that. >>The assumption is almost that compute and storage is free. I know it's not quite free. Yeah. It's almost free, but you can, you know, as an application vendor, you think, well, what can I do if I assume compute and storage is free, that's the mindset you've gotta get >>Into. And I think the platform enablement to value. So if I'm an entrepreneur, I'm gonna get a series us multiple of value in what I'm paying. Yeah. Most people don't even blanket their Avis pills unless they're like massively huge. Yeah. Then it's a repatriation question or whatever discount question, but for most startups or any growing company, the Amazon bill should be a small factor. >>Yeah. I mean, a lot of people, um, ask me, uh, like, look you build in on snowflake. Um, you, you know, you, you, you're gonna be, you're gonna be paying their money. How, how, how, how does that work with your business model? If you're paying their money, you know, do, do you have a viable business? And it's like, well, okay. I, we could build a database as well and observe, but then I've got half the development team working on something that will never be as good as snowflake. And so we made the call early on that. No, no, we, we want a eight above the database. Yeah. Right. Snowflake are doing a great job of innovating on the database and, and the same is true of something like Amazon, like, like snowflake could have built their own cloud and their own platform, but they didn't. >>Yeah. And what's interesting is that Dave <inaudible> and I have been pointing this out and he's obviously a more on snowflake. I've been looking at data bricks, um, and the same dynamics happening, the proof is the ecosystem. Yeah. I mean, if you look at Snowflake's ecosystem right now and data bricks it's exploding. Right. I mean, the shows are selling out the floor. Space's book. That's the old days at VMware. Yeah. The old days at AWS. >>Well, and for snowflake and, and any platform from VI, it's a beautiful thing because, you know, we build on snowflake and we pay them money. They don't have to sell to us. Right. And we do a lot of the support. And so the, the economics work out really, really well. If you're a platform provider and you've got a lot of >>Ecosystems. Yeah. And then also you get, you get a, um, a trajectory of, uh, economies of scale with the institutional knowledge of snowflake integrations, right. New product, you're scaling a step function with them. >>Yeah. I mean, we manage 10 petabytes of data right now. Right. When I, when I, when I arrived at EMC in 2010, we had, we had one petabyte customer. And, and so at observe, we've been only selling the product for a year. We have 10 petabytes of data under management. And so been able to rely on a platform that can manage that is inve >>You know, well, Jeremy great conversation. Thanks for sharing your insights on the industry. Uh, we got a couple minutes left, um, put a plug in for observe. What do you guys know? You got some good funding, great partners. I don't know if you can talk about your, your, your POC customers, but you got a lot of high ends folks that are working with you. You getting in traction. >>Yeah. Yeah. Scales >>Around the corner. Sounds like, are you, is that where you are scale? >>We've got a big that that's when coming up in two or three weeks, we've got, we've got new funding, um, which is always great. Um, the product is, uh, really, really close. I think, as a startup, you always strive for market fit, you know, which is at which point can you just start hiring salespeople? And the revenue keeps going. We're getting pretty close to that right now. Um, we've got about 40 SaaS companies that run on the platform. They're almost all AWS Kubernetes, uh, which is our sweet spot to begin with, but we're starting to get some really interesting, um, enterprise type customers. We're, we're, you know, F five networks we're POC in right now with capital one, we got some interest in news around capital one coming up. I, I can't share too much, but it's gonna be exciting. And, and like I said, so hill continue to, to, >>I think capital one's a big snowflake customer as well. Right. >>They were early in one of the things that attracted me to capital one was they were very, very good with snowflake early on. And, and they put snowflake in a position in the bank where they thought that snowflake could be successful. And, and today that, that is one of Snowflake's biggest accounts, >>Capital, one, very innovative cloud, obviously Atos customer, and very innovative, certainly in the CISO and CIO, um, on another point on where you're at. So you're, Prescale meaning you're about to scale, >>Right? >>So you got POCs, what's that trajectory look like? Can you see around the corner? What's, what's going on? What's on, around the corner. That you're, that you're gonna hit this straight and narrow and, and gas it fast. >>Yeah. I mean, the, the, the, the key thing for us is we gotta get the product. Right. Um, the nice thing about having a guy like Mike Pfizer on the board is he doesn't obsess about revenue at this stage. His questions that the board are always about, like is the product, right? Is the product right? Is the product right? Have you got the product right? And cuz we know when the product's right, we can then scale the sales team and, and the revenue will take care of itself. Yeah. So right now all the attention is on the product. Um, the, this year, the exciting thing is we we're, we're adding all the tracing visualizations. So people will be able to the kind of things that by in the day you could do with the new relics and AppDynamics, the last generation of, of APM tools, you're gonna be able to do that within observe. And we've already got the logs and the metrics capability in there. So for us this year is a big one, cuz we sort of complete the trifecta, you know, the, the >>Logs, what's the secret sauce observe. What if you had the, put it into a, a, a sentence what's the secret sauce? >>I, I, I think, you know, an amazing founding engineering team, uh, number one, I mean, at the end of the day, you have to build an amazing product and you have to solve a problem in a different way. And we've got great long term investors and, and the biggest thing our investors give is it actually, it's not just money. It gives us time to get the product, right. Because if we get the product right, then we can get the growth. >>Got it. Final question. While I got you here, you've been on the enterprise business for a long time. What's the buyer landscape out there. You got people doing POCs on capital one scale. So we know that goes on. What's the appetite at the buyer side for startups and what are their requirements that you're seeing? Uh, obviously we're seeing people go in and dip into the startup pool because new ways to refactor their, this restructure. So, so a lot of happening in cloud, what's the criteria. How are enterprises engaging in with startups? >>Yeah. I mean, enterprises, they know they've gotta spend money transforming the business. I mean, this was, I almost feel like my old Dell or EMC self there, but, um, what, what we were saying five years ago is happening. Um, everybody needs to figure out a way to take their business to this digital world. Everybody has to do it. So the nice thing from a startup standpoint is they know at times they need to risk or, or take a bet on new technology in order to, to help them do that. So I think you've got buyers that a have money, uh, B it prepared to take risks and it's, it's a race against time to you'll get their, their offerings in this, a new digital footprint. >>Final, final question. What's the state of AWS. Where do you see them going next? Obviously they're continuing to be successful. How does cloud 3.0, or they always say it's day one, but it's more like day 10, but what's next for Aw. Where do they go from here? Obviously they're doing well. They're getting bigger and bigger. Yeah, >>Better. It's an amazing story. I mean, you know, we're, we're on AWS as well. And so I, I think if they keep nurturing the builders and the ecosystem, then that is their superpower. They, they have an early leads. And if you look at where, you know, maybe the likes of Microsoft lost the plot in the, in the late nineties, it was, they stopped, uh, really caring about developers in the folks who were building on top of their ecosystem. In fact, they started buying up their ecosystem and competing with people in their ecosystem. And I see with AWS, they, they have an amazing headstart and if they did more, you know, if they do more than that, that's, what's gonna keep this juggernaut rolling for many years to come. >>Yeah. They got the Silicon and got the stack. They're developing Jeremy Burton inside the cube, great resource for commentary, but also founding with the CEO of a company called observing in the middle of all the action on the board of snowflake as well. Um, great startup. Thanks for coming on the cube. Always a pleasure. Okay. Live from San Francisco. It's to cube. I'm John for your host. Stay with us more coverage from San Francisco, California after the short break. >>Hello. Welcome back to the cubes coverage here live in San Francisco, California. I'm John furrier, host of the cubes cube coverage of AWS summit 2022 here in San Francisco. We're all the developers are the bay air at Silicon valley. And of course, AWS summit in New York city is coming up in the summer. We'll be there as well. SF and NYC cube coverage. Look for us. Of course, reinforcing Boston and re Mars with the whole robotics, AI. They all coming together. Lots of coverage stay with us today. We've got a great guest from Bel VC. John founding partner, entrepreneurial venture is a venture firm. Your next act, welcome to the cube. Good to see you. >>Good to see you, man. I feel like it's been forever since we've been able to do something in person. Well, >>I'm glad you're here because we run into each other all the time. We've known each other for over decade. Um, >>It's been at least 10 years, >>At least 10 years more. And we don't wanna actually go back as bring back the old school web 1.0 days. But anyway, we're in web three now. So we'll get to that in a second. We, >>We are, it's a little bit of a throwback to the path though, in my opinion, >>It's all the same. It's all distributed computing and software. We ran each other in cube con. You're investing in a lot of tech startup founders. Okay. This next level, next gen entrepreneurs have a new makeup and it's software. It's hardcore tech in some cases, not hardcore tech, but using software to take an old something old and make it better new, faster. So tell us about Bel what's the firm. I know you're the founder, uh, which is cool. What's going on. Explain >>What you, I mean, you remember I'm a recovering entrepreneur, right? So of course I, I, >>No, you're never recovering. You're always entrepreneur >>Always, but we are also always recovering. So I, um, started my first company when I was 24. If you remember, before there was Facebook and friends, there was instant messaging. People were using that product at work every day, they were creating a security vulnerability between their network and the outside world. So I plugged that hole and built an instant messaging firewall. It was my first company. The company was called IM logic and we were required by Symantec. Uh, then spent 12 years investing in the next generation of software companies, uh, early investor in open source companies and cloud companies and spent a really wonderful years, uh, at a firm called NEA. So I, I feel like my whole life I've been either starting enterprise software companies or helping founders start enterprise software companies. And I'll tell you, there's never been a better time than right now to start an enterprise software company. >>So, uh, the passion for starting a new firm was really a recognition that founders today that are starting an enterprise software company, they, they tend to be, as you said, a more technical founder, right? Usually it's a software engineer or a builder mm-hmm <affirmative>, uh, they are building that are serving a slightly different market than what we've traditionally seen in enterprise software. Right? I think traditionally we've seen it buyers or CIOs that have agendas and strategies, which, you know, purchase software that is traditionally bought and sold tops down. But you know, today I think the most successful enterprise software companies are the ones that are built more bottoms up and have more technical early adopters. And generally speaking, they're free to use. They're free to try. They're very commonly community source or open source companies where you have a large technical community that's supporting them. So there's a, there's kind of a new normal now I think in great enterprise software. And it starts with great technical founders with great products and great bottoms of motions. And I think there's no better place to, uh, service those people than in the cloud and uh, in, in your community. >>Well, first of all, congratulations, and by the way, you got a great pedigree and great background. You're super smart admire of your work and your, and, and your founding, but let's face it. Enterprise is hot because digital transformation is, is all companies there's no, I mean, consumer is enterprise now. Everything is what was once a niche, not, I won't say niche category, but you know, not for the faint of heart, you know, investors, >>You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. But remember, like right now, there's also a giant tech in VC conference in Miami <laugh> and it's covering cryptocurrencies and FCS and web three. So I think beauty is definitely in the eye of the beholder <laugh> but no, I, I will tell you, well, >>MFTs is one big enterprise, cuz you gotta have imutability you got performance issues. You have, I IOPS issues. >>Well, and, and I think all of us here that are of may, maybe students of his stream have been involved in open source in the cloud would say that we're, you know, much of what we're doing is, uh, the predecessors of the web web three movement. And many of us I think are contributors to the web three >>Movement. The hype is definitely web >>Three. Yeah. But, >>But you know, >>For sure. Yeah, no, but now you're taking us further east to Miami. So, uh, you know, look, I think, I, I think, um, what is unquestioned with the case and maybe it's, it's more obvious the more time you spend in this world is this is the fastest growing part of enterprise software. And if you include cloud infrastructure and cloud infrastructure spend, you know, it is by many measures over, uh, $500 billion in growing, you know, 20 to 30 a year. So it it's a, it's a just incredibly fast >>Let's getting, let's get into some of the cultural and the, the shifts that are happening, cuz again, you, you have the luxury of being in enterprise when it was hard, it's getting easier and more cooler. I get it and more relevant <laugh> but there's also the hype of like the web three, for instance, but you know, for, uh, um, um, the CEO snowflake, okay. Has wrote a book and Dave Valenti and I were talking about it and uh, Frank Lutman has says, there's no playbooks. We always ask the CEOs, what's your playbook. And he's like, there's no playbook, situational awareness, always Trump's playbooks. So in the enterprise playbook, oh, hire a direct sales force and sass kind of crushed that now SAS is being redefined, right. So what is SAS? Is snowflake a SAS or is that a platform? So again, new unit economics are emerging, whole new situation, you got web three. So to me there's a cultural shift, the young entrepreneurs, the, uh, user experience, they look at Facebook and say, ah, you know, and they own all my data. And you know, we know that that cliche, um, they, you know, the product. So as this next gen, the gen Z and the millennials come in and our customers and the founders, they're looking at things a little bit differently and the tech better. >>Yeah. I mean, I mean, I think we can, we can see a lot of commonalities across all six of startups and the overall adoption of technology. Uh, and, and I would tell you, this is all one big giant revolution. I call it the user driven revolution. Right. It's the rise of the user. Yeah. And you might say product like growth is currently the hottest trend in enterprise software. It's actually user like growth, right. They're one in the same. So sometimes people think the product, uh, is what is driving. >>You just pull the product >>Through. Exactly, exactly. And so that's that I, that I think is really this revolution that you see, and, and it does extend into things like cryptocurrencies and web three and, you know, sort of like the control that is taken back by the user. Um, but you know, many would say that, that the origins of this movement may be started with open source where users were contributors, you know, contributors were users and looking back decades and seeing how it, how it fast forward to today. I think that's really the trend that we're all writing and it's enabling these end users. And these end users in our world are developers, data engineers, cybersecurity practitioners, right. They're really the users. And they're really the, the offic and the most, you know, kind of valued people in >>This. I wanna come back to the data engineers in a second, but I wanna make a comment and get your reaction to, I have a, I'm a gen Xer technically. So for not a boomer, but I have some boomer friends who are a little bit older than me who have, you know, experienced the sixties. And I've, I've been saying on the cube for probably about eight years now that we are gonna hit a digital hippie Revolut, meaning a rebellion against in the sixties was rebellion against the fifties and the man and, you know, summer of love. That was a cultural differentiation from the other one of group, the predecessors. So we're kind of having that digital moment now where it's like, Hey boomers, Hey people, we're not gonna do that anymore. We hate how you organize shit. >>Right. But isn't this just technology. I mean, isn't it, isn't it like there used to be the old adage, like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would get fired if you bought IBM. And I mean, it's just like the, the, I think, I think >>During the mainframe days, those renegades were breaking into Stanford, starting the home brew club. So what I'm trying to get at is that, do you see the young cultural revolution also, culturally, just, this is my identity NFTs to me speak volumes about my, I wanna associate with NFTs, not single sign on like, well, >>Absolutely. And, and I think like, I think you're hitting on something, which is like this convergence of, of, you know, societal trends with technology trends and how that manifests in our world is yes. I think like there is unquestionably almost a religion around the way in which a product is built. Right. And we can use open source. One example of that religion. Some people say, look, I'll just never try a product in the cloud if it's not open source. Yeah. I think cloud, native's another example of that, right? It's either it's, you know, it either is cloud native or it's not. And I think a lot of people will look at a product and say, look, you know, you were not designed in the cloud era. Therefore I just won't try you. And sometimes, um, like it or not, it's a religious decision, right? It's, it's something that people just believe to be true almost without, uh, necessarily. I mean, >>The data drives all decision making. Let me ask you this next question. As a VC. Now you look at pitch, well, you've been a VC for many years, but you also have the founder entrepreneurial mindset, but you can empathize with the founders. You know, hustle is a big part of the, that first founder check, right? You gotta convince someone to part with their ch their money and the first money in which you do a lot of is about believing in the first. So faking it till you make it is hard. Now you, the data's there, you either have it cloud native, you either have the adaption or traction. So honesty is a big part of that pitch. You can't fake it. Oh, >>AB absolutely. You know, there used to be this concept of like the persona of an entrepreneur, right. And the persona of the entrepreneur would be, you know, somebody who was a great salesperson or somebody who tell a great story. And I still think that that's important, right. It still is a human need for people to believe in narratives and stories. Yeah. But having said that you're right. The proof is in the pudding, right. At some point you click download and you try the product and it does what it says it's gonna, it's gonna do, or it doesn't, or it either stands up to the load test or it doesn't. And so I, I feel like in this new economy, that're, we live in really, it's a shift from maybe the storytellers and the creators to, to the builders, right. The people that know how to build great product. And in some ways the people that can build great product yeah. Stand out from the crowd. And they're the ones that can build communities around their products. And, you know, in some ways can, um, you know, kind of own more of the narrative because their product begin for exactly >>The volume you back to the user led growth. >>Exactly. And it's the religion of, I just love your product. Right. And I, I, I, um, Doug song is the founder of du security used to say, Hey, like, you know, the, the really like in today's world of like consumption based software, like the user is only gonna give you 90 seconds to figure out whether or not you're a company that's easy to do business with for right. And so you can say, and do all the things that you want about how easy you are to work with. But if the product isn't easy to install, if it's not easy to try, if it's not, if, if the it's gotta speak to the, >>Exactly. Speak to the user. But let me ask a question now that for the people watching, who are maybe entrepreneurial entre entrepreneurs, um, masterclass here is in session. So I have to ask you, do you prefer, um, an entrepreneur to come in and say, look at John. Here's where I'm at. Okay. First of all, storytelling's fine. Whether you're an extrovert or introvert, have your style, sell the story in a way that's authentic, but do you, what do you prefer to say? Here's where I'm at? Look, I have an idea. Here's my traction. I think here's my MVP prototype. I need help. Or do you wanna just see more stats? What's the, what's the preferred way that you like to see entrepreneurs come in and engage? >>There's tons of different styles, man. I think the single most important thing that every founder should know is that we, we don't invest in what things are today. We invest in what we think will become, right. And I think that's why we all get up in the morning and try to build something different, right? It's that we see the world a different way. We want it to be a different way, and we wanna work every single moment of the day to try to make that vision a reality. So I think the more that you can show people where you want to be, the more likely somebody is gonna to align with your vision and, and want to invest in you and wanna be along for the ride. So I, I wholeheartedly believe in showing off what you got today, because eventually we all get down to like, where are we and what are we gonna do together? But, um, no, I, you gotta show the path. I think the single most important thing for any founder and VC relationship is that they have the same vision. Uh, if you have the same vision, you can, you can get through bumps in the road, you can get through short term spills. You can all sorts of things in the middle of the journey can happen. Yeah. But it doesn't matter as much if you share the same long term vision, >>Don't flake out and, and be fashionable with the, the latest trends because it's over before you even get there. >>Exactly. I think many people that, that do what we do for a living will say, you know, ultimately the future is relatively easy to predict, but it's the timing that's impossible to predict. So you, you know, you sort of have to balance the, you know, we, we know that the world is going this way and therefore we're gonna invest a lot of money to try to make this a reality. Uh, but sometimes it happens ins six months. Sometimes it takes six years. Sometimes it takes 16 years. Uh, >>What's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at right now with Tebel partners, Tebel dot your site. What's the big wave. What's your big >>Wave. There there's three big trends that we invest in. And then the, the only things we do day in day out one is the explosion at open source software. So I think many people think that all software is unquestionably moving to an open source model in some form or another yeah. Tons of reasons to debate whether or not that is gonna happen an alwa timeline happening forever, but it is, it is accelerating faster than we've ever seen. So I, I think it's its one big mass of wave that we continue to ride. Um, second is the rise of data engineering. Uh, I think data engineering is in and of itself now a category of software. It's not just that we store data. It's now we move data and we develop applications on data. And, uh, I think data is in and of itself as big of a market as any of the other markets that we invest in. Uh, and finally it's the gift that keeps on giving. I've spent my entire career in it. We still feel that security is a market that is underinvested. It is, it continues to be the place where people need to continue to invest and spend more money. Yeah. Uh, and those are the three major trends that we run >>And security, you think we all need a do over, right? I mean, do we need a do over in security or is what's the core problem? I, >>I, I keep using this word underinvested because I think it's the right way to think about the problem. I think if you, I think people generally speaking, look at cyber security as an add-on. Yeah. But if you think about it, the whole like economy is moving online. And so in, in some ways like security is core to protecting the digital economy. And so it's, it shouldn't be an afterthought, right? It should be core to what everyone is doing. And that's why I think relative to the trillions of dollars that are at stake, uh, I believe the market size for cybersecurity is around 150 billion and it still is a fraction of what >>We're, what we're and even boom is booming now. So you get the convergence of national security, geopolitics, internet digital >>That's right. You mean arguably, right. Arguably again, it's the area of the world that people should be spending more time and more money given what to stake. >>I love your thesis. I gotta, I gotta say you gotta love your firm. Love who you're doing. We're big supporters of your mission. Congrat is on your entrepreneurial venture. And uh, we'll be, we'll be talking and maybe see a Cuban. Uh, >>Absolutely >>Not. Certainly EU maybe even north America's in Detroit this year. >>Huge fan of what you guys are doing here. Thank you so much for helping me on the show. >>Des bell VC Johnson here on the cube. Check him out. Founder for founders here on the cube, more coverage from San Francisco, California, after the short break, stay with us. Hey everyone. Welcome to the cue here. Live in San Francisco, California for AWS summit, 2022 we're live we're back with events. Also we're virtual. We got hybrid all kinds of events. This year, of course, 80% summit in New York city is happening this summer. We'll be there with the cube as well. I'm John. Again, John host of the cube. Got a great guest here. Justin Colby, owner and CEO of innovative solutions they booth is right behind us. Justin, welcome to the cube. >>Thank you. Thank you for having me. >>So we're just chatting, uh, off camera about some of the work you're doing. You're the owner of and CEO. Yeah. Of innovative. Yeah. So tell us the story. What do you guys do? What's the elevator pitch. Yeah. >><laugh> so the elevator pitch is we are, uh, a hundred percent focused on small to midsize businesses that are moving to the cloud or have already moved to the cloud and really trying to understand how to best control, cost, security, compliance, all the good stuff, uh, that comes along with it. Um, exclusively focused on AWS and, um, you know, about 110 people, uh, based in Rochester, New York, that's where our headquarters is. But now we have offices down in Austin, Texas up in Toronto, uh, Canada, as well as Chicago. Um, and obviously in New York, uh, you know, the, the business was never like this, uh, five years ago, um, founded in 1989, made the decision in 2018 to pivot and go all in on the cloud. And, uh, I've been a part of the company for about 18 years, bought the company about five years ago. And it's been a great ride. >>It's interesting. The manages services are interesting with cloud cause a lot of the heavy liftings done by AWS. So we had Matt on your team on earlier talking about some of the edge stuff. Yeah. But you guys are a managed cloud service. You got cloud advisory, you know, the classic service that's needed, but the demands coming from cloud migrations and application modernization and obviously data is a huge part of it. Huge. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on the SMB side for edge. Yeah. For AWS, you got results coming in. Where's the, where's the forcing function. What's the pressure point. What's the demand like? Yeah. >>It's a great question. Every CEO I talk to, that's a small to mid-size business. I'll try and understand how to leverage technology better to help either drive a revenue target for their own business, uh, help with customer service as so much has gone remote now. And we're all having problems or troubles or issues trying to hire talent. And um, you know, tech is really at the, at the forefront and the center of that. So most customers are coming to us and they're like, listen, we gotta move to the out or we move some things to the cloud and we want to do that better. And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. Yeah. And what we try to help as many customers understand as possible is lifting and shifting, moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. And then, uh, progressively working through a modernization strategy is always the better approach. And so we spend a lot of time with small to midsize businesses who don't have the technology talent on staff to be able to do >>That. Yeah. They want to get set up. But the, the dynamic of like latency is huge. We're seeing that edge product is a big part of it. This is not a one-off happening around everywhere. It is. And it's not, it's manufacturing, it's the physical plant or location >>Literally. >>And so, and you're seeing more IOT devices. What's that like right now from a challenge and problem statement standpoint, are the customers, not staff, is the it staff kind of old school? Is it new skills? What's the core problem you guys solve >>The SMB space. The core issue nine outta 10 times is people get enamored with the latest and greatest. And the reality is not everything that's cloud based. Not all cloud services are the latest and greatest. Some things have been around for quite some time and are hardened solutions. And so, um, what we try to do with technology staff that has additional on-prem, uh, let's just say skill sets and they're trying to move to a cloud-based workload is we try to help those customers through education and through some practical, let's just call it use case. Um, whether that's a proof of concept that we're doing or whether that's, we're gonna migrate a small workload over, we try to give them the confidence to be able to not, not necessarily go it alone, but to, to, to have the, uh, the Gusto and to really have the, um, the, the opportunity to, to do that in a wise way. Um, and what I find is that most CEOs that I talk to, yeah, they're like, listen, the end of the day, I'm gonna be spending money in one place or another, whether that's OnPrem or in the cloud. I just want to know that I'm doing that in a way that helps me grow as quickly as possible status quo. I think every, every business owner knows that COVID taught us anything that status quo is, uh, is, is no. No. Good. >>How about factoring in the, the agility and speed equation? Does that come up a lot? It >>Does. I think, um, I think there's also this idea that if, uh, if we do a deep dive analysis and we really take a surgical approach to things, um, we're gonna be better off. And the reality is the faster you move with anything cloud based, the better you are. And so there's this assumption that we gotta get it right the first time. Yeah. In the cloud, if you start the, on your journey in one way, and you realize midway that it's not the right, let's just say the right place to go. It's not like buying a piece of iron that you put in the closet and now you own it in the cloud. You can turn those services on and off. It's a, gives you a much higher density for making decisions and failing >>Forward. Well actually shutting down the abandoning, the projects that early and not worrying about it, you got it. I mean, most people don't abandon stuff cuz they're like, oh, I own it. >>Exactly. >>And they get, they get used to it. Like, and then they wait too long. >>That's exactly. Yeah. >>Frog and boiling water as we used to say so, oh, it's a great analogy. So I mean this, this is a dynamic that's interesting. I wanna get more thoughts on it because like I'm a, if I'm a CEO of a company, like, okay, I gotta make my number. Yeah. I gotta keep my people motivated. Yeah. And I gotta move faster. So this is where you guys come in. I get the whole thing. And by the way, great service, um, professional services in the cloud right now are so hot because so hot, you can build it and then have option optionality. You got path decisions, you got new services to take advantage of. It's almost too much for customers. It is. I mean, everyone I talk to at reinvent, that's a customer. Well, how many announcements did Andy jazzy announcer Adam, you know, five, a thousand announcement or whatever they did with huge amounts. Right. Keeping track of it all. Oh, is huge. So what's the, what's the, um, the mission of, of your company. How does, how do you talk to that alignment? Yeah. Not just product. I can get that like values as companies, cuz they're betting on you and your people. >>They are, they are >>The values. >>Our mission is, is very simple. We want to help every small to mid-size business, leverage the power of the cloud. Here's the reality. We believe wholeheartedly. This is our vision that every company is going to become a technology company. So we go to market with this idea that every customer's trying to leverage the power of the cloud in some way, shape or form, whether they know it or don't know it. And number two, they're gonna become a tech company in the pro of that because everything is so tech-centric. And so when you talk about speed and agility, when you talk about the, the endless options and the endless permutations of solutions that a customer can buy in the cloud, how are you gonna ask a team of one or two people in your it department to make all those decisions going it alone or trying to learn it as you go, it only gets you so far working with a partner. >>I'll just give you some perspective. We work with about a thousand small to midsize business customers. More than 50% of those customers are on our managed services. Meaning know that we have their back and we're the safety net. So when a customer is saying, all right, I'm gonna spend a couple thousand dollars a month in the cloud. They know that that bill, isn't gonna jump to $10,000 a month going on loan. Who's there to help protect that. Number two, if you have a security posture and let's just say you're high profile and you're gonna potentially be more vulnerable to security attack. If you have a partner that's offering you some managed services. Now you, again, you've got that backstop and you've got those services and tooling. We, we offer, um, seven different products that are part of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go out today and go buy a new Relic solution on their own, it would cost 'em a fortune. If >>It's training alone would be insane. A risk factor not mean the cost. Yes, absolutely. Opportunity cost is huge, >>Huge, absolutely enormous training and development. Something. I think that is often, you know, it's often overlooked technologists. Typically they want to get their skills up. Yeah. They, they love to get the, the stickers and the badges and the pins, um, at innovative in 2018, when, uh, when we made the decision to go all on the club, I said to the organization, you know, we have this idea that we're gonna pivot and be aligned with AWS in such a way that it's gonna really require us all to get certified. My executive assistant at the time looks at me. She said, even me, I said, yeah, even you, why can't you get certified? Yeah. And so we made, uh, a conscious decision. It wasn't requirement isn't today to make sure everybody in the company has the opportunity to become certified. Even the people that are answering the phones at the front desk >>And she could be running the Kubernetes clusters. I >>Love it. It's amazing. So I'll tell you what, when that customer calls and they have a real Kubernetes issue, she'll be able to assist and get the right >>People involved. And that's a cultural factor that you guys have. So, so again, this is back to my whole point about SMBs and BIS is in general, small and large. It staffs are turning over the gen Z and millennials are in the workforce. They were provisioning top of rack switches. Right. First of all. And so if you're a business, there's also the, I call the build out, um, uh, return factor, ROI piece. At what point in time as an owner or SMB, do I get the why? Yeah. I gotta hire a person to manage it. That person's gonna have five zillion job offers. Yep. Uh, maybe who knows? Right. I got cyber security issues. Where am I gonna find a cyber person? Yeah. A data compliance. I need a data scientist and a compliance person. Right. Maybe one in the same. Right. Good luck. Trying to find a data scientist. Who's also a compliance person. Yep. And the list goes on. I can just continue. Absolutely. I need an SRE to manage the, the, uh, the sock report and we can pen test. Right. >>Right. >>These are, these are >>Like critical issues. This >>Is just like, these are the table stakes. >>Yeah. And, and every, every business owner's thinking about this, that's, >>That's what, at least a million in bloating, if not three or more Just to get that going. Yeah. Then it's like, where's the app. Yeah. So there's no cloud migration. There's no modernization on the app side now. Yeah. No. And nevermind AI and ML. That's >>Right. That's right. So to try to go it alone, to me, it's hard. It's incredibly difficult. And the other thing is, is there's not a lot of partners, so the partner, >>No one's raising their hand boss. I'll do all that exactly. In the it department. >>Exactly. >>Like, can we just call up, uh, you know, our old vendor that's >>Right. <laugh> right. Our old vendor. I like >>It, >>But that's so true. I mean, when I think about how, if I were a business owner starting a business today and I had to build my team, um, and the amount of investment that it would take to get those people skilled up and then the risk factor of those people now having the skills and being so much more in demand and being recruited away, that's a real, that's a real issue. And so how you build your culture around that is, is very important. And it's something that we tell, talk about every, with every one of our small to mid-size >>Businesses. So just, I wanna get, I want to get your story as CEO. Okay. Take us through your journey. You said you bought the company and your progression to, to being the owner and CEO of innovative yeah. Award winning guys doing great. Uh, great bet on a good call. Yeah. Things are good. Tell your story. What's your journey? >>It's real simple. I was, uh, I was a sophomore at the Rochester Institute of technology in 2003. And, uh, I knew that I, I was going to school for it and I, I knew I wanted to be in tech. I didn't know what I wanted to do, but I knew I didn't wanna code or configure routers and switches. So I had this great opportunity with the local it company that was doing managed services. We didn't call it at that time innovative solutions to come in and, uh, jump on the phone and dial for dollars. I was gonna cold call and introduce other, uh, small to midsize businesses locally in Rochester, New York go to Western New York, um, who innovative was now. We were 19 people at the time. And I came in, I did an internship for six months and I loved it. I learned more in those six months that I probably did in my first couple of years at, uh, at RT long story short. >>Um, for about seven years, I worked, uh, to really help develop, uh, sales process and methodology for the business so that we could grow and scale. And we grew to about 30 people. And, um, I went to the owners at the time in 2010 and I was like, Hey, on the value of this business and who knows where you guys are gonna be another five years, what do you think about making me an owner? And they were like, listen, you got long ways before you're gonna be an owner, but if you stick it out in your patient, we'll, um, we'll work through a succession plan with you. And I said, okay, there were four other individuals at the time that were gonna also buy into the business with me. >>And they were the owners, no outside capital, none >>Zero, well, 2014 comes around. And, uh, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons, they all decided that it wasn't for them. One started a family. The other didn't wanna put capital in. Didn't wanna write a check. Um, the other had a real big problem with having to write a check. If we couldn't make payroll, I'm like, well, that's kind of like if we're owners, we're gonna have to like cover that stuff. <laugh> so >>It's called the pucker factor. >>Exactly. So, uh, I sat down with the CEO in early 2015, and, uh, we made the decision that I was gonna buy the three partners out, um, go through an early now process, uh, coupled with, uh, an interesting financial strategy that wouldn't strap the business, cuz they cared very much. The company still had the opportunity to keep going. So in 2016 I bought the business, um, became the sole owner. And, and at that point we, um, we really focused hard on what do we want this company to be? We had built this company to this point. Yeah. And, uh, and by 2018 we knew that pivoting going all in on the cloud was important for us and we haven't looked back. >>And at that time the proof points were coming clearer and clearer 2012 through 15 was the early adopters, the builders, the startups and early enterprises. Yes. The capital ones of the world. Exactly. And those kinds of big enterprises, the GA I don't wanna say gamblers, but ones that were very savvy. The innovators, the FinTech folks. Yep. The hardcore glass eating enterprises >>Agreed, agreed to find a small to mid-size business, to migrate completely to the cloud as, as infrastructure was considered. That just didn't happen as often. Um, what we were seeing where a lot of our small to mid-size as customers, they wanted to leverage cloud-based backup or they wanted to leverage a cloud for disaster recovery because it lent itself. Well, early days, our most common cloud customer though, was the customer that wanted to move messaging and collaboration, the Microsoft suite to the cloud. And a lot of 'em dipped their toe in the water. But by 2017 we knew infrastructure was around the corner. Yeah. And so, uh, we only had two customers on AWS at the time. Um, and we, uh, we, we made the decision to go all in >>Justin. Great to have you on the cube. Thank you. Let's wrap up. Uh, tell me the hottest product that you have. Is it migrations? Is it the app modernization? Is it data? What's the hot product and then put a plug in for the company. Awesome. >>So, uh, there's no question. Every customer is looking to migrate workloads and try to figure out how to modernize for the future. We have very interesting, sophisticated yet elegant funding solutions to help customers with the cash flow, uh, constraints that come along with those migrations. So any SMB that's thinking about migrating to the cloud, they should be talking innovative solutions. We know how to do it in a way that allows those customers not to be cash strap and gives them an opportunity to move forward in a controlled, contained way so that they can modernize. >>So like insurance, basically for them not insurance class in the classic sense, but you help them out on the, on the cash exposure. >>Absolutely. We are known for that and we're known for being creative with those customers and being empathetic to where they are in their journey. >>And that's the cloud upside is all about doubling down on the variable wind. That's right. Seeing the value and Ling down on it. Absolutely not praying for it. Yeah. <laugh> all right, Justin. Thanks for coming on. You really appreciate it. >>Thank you very much for having me. >>Okay. This is the cube coverage here live in San Francisco, California for AWS summit, 2022. I'm John for your host. Thanks for watching. We're back with more great coverage for two days after this short break, >>Live on the floor and see San Francisco for a AWS summit. I'm John ferry, host of the cube here for the next two days, getting all the action we're back in person. We're at a AWS reinvent a few months ago. Now we're back. Events are coming back and we're happy to be here with the cube. Bring all the action. Also virtual. We have a hybrid cube. Check out the cube.net, Silicon angle.com for all the coverage. After the event. We've got a great guest ticking off here. Matthew Park, director of solutions, architecture with innovation solutions. The booth is right here. Matthew, welcome to the cube. >>Thank you very much. I'm glad to be >>Here. So we're back in person. You're from Tennessee. We were chatting before you came on camera. Um, it's great to have to be back through events. >>It's amazing. This is the first, uh, summit I've been to and what two, three years. >>It's awesome. We'll be at the UHS summit in New York as well. A lot of developers and a big story this year is as developers look at cloud going distributed computing, you got on premises, you got public cloud, you got the edge. Essentially the cloud operations is running everything dev sec ops, everyone kind of sees that you got containers, you got Kubernetes, you got cloud native. So the game is pretty much laid out mm-hmm <affirmative> and the edge is with the actions you guys are number one, premier partner at SMB for edge. >>That's right. >>Tell us about what you guys doing at innovative and, uh, what you do. >>That's right. Uh, so I'm the director of solutions architecture. Uh, me and my team are responsible for building out the solutions that are around, especially the edge public cloud for us edge is anything outside of an AWS availability zone. Uh, we are deploying that in countries that don't have AWS infrastructure in region. They don't have it. Uh, give an example, uh, example would be Panama. We have a customer there that, uh, needs to deploy some financial tech and compute is legally required to be in Panama, but they love AWS and they want to deploy AWS services in region. Uh, so they've taken E EKS anywhere. We've put storage gateway and, uh, snowball, uh, in region inside the country and they're running their FinTech on top of AWS services inside Panama. >>You know, it's interesting, Matthew is that we've been covering a, since 2013 with the cube about their events. And we watched the progression and jazzy was, uh, was in charge and became the CEO. Now Adam's in charge, but the edge has always been that thing they've been trying to avoid. I don't wanna say trying to avoid, of course, Amazon would listen to the customers. They work backwards from the customer. We all know that. Uh, but the real issue was they were they're bread and butters EC two and S three. And then now they got tons of services and the cloud is obviously successful and seeing that, but the edge brings up a whole nother level. >>It does computing. It >>Does. That's not centralized in the public cloud now they got regions. So what is the issue at the edge what's driving the behavior. Outpost came out as a reaction to competitive threats and also customer momentum around OT, uh, operational technologies. And it merging. We see that the data at the edge, you got 5g having. So it's pretty obvious, but there's a slow transition. What was the driver for the edge? What's the driver now for edge action for AWS >>Data is the driver for the edge. Data has gravity, right? And it's pulling compute back to where the customer's generating that data and that's happening over and over again. You said it best outpost was a reaction to a competitive situation where today we have over 15 AWS edge services and those are all reactions to things that customers need inside their data centers on location or in the field like with media companies. >>Outpost is interesting. We always used to riff on the cube cause it's basically Amazon and a box pushed in the data center, running native, all the stuff, but now cloud native operations are kind of becoming standard. You're starting to see some standard Deepak syncs. Group's doing some amazing work with open source Rauls team on the AI side, obviously, uh, you got SW, he was giving the keynote tomorrow. You got the big AI machine learning big part of that edge. Now you can say, okay, outpost, is it relevant today? In other words, did outpost do its job? Cause EKS anywhere seems to be getting a lot of momentum. You see local zones, the regions are kicking ass for Amazon. This edge piece is evolving. What's your take on EKS anywhere versus say outpost? >>Yeah, I think outpost did its job. It made customers that were looking at outpost really consider, do I wanna invest in this hardware? Do I, do I wanna have, um, this outpost in my data center, do I want to manage this over the long term? A lot of those customers just transitioned to the public cloud. They went into AWS proper. Some of those customers stayed on prem because they did have use cases that were, uh, not a good fit for outposts. They weren't a good fit. Uh, in the customer's mind for the public AWS cloud inside an availability zone. Now what's happening is as AWS is pushing these services out and saying, we're gonna meet you where you are with 5g. We're gonna meet you where you are with wavelength. We're gonna meet you where you are with EKS anywhere. Uh, I think it has really reduced the amount of times that we have conversations about outposts and it's really increased. We can deploy fast. We don't have to spin up outpost hardware. We can go deploy EKS anywhere or in your VMware environment. And it's increasing the speed of adoption >>For sure. Right? So you guys are making a lot of good business decisions around managed cloud service. That's right. Innovative as that you get the cloud advisory, the classic professional services for the specific edge piece and, and doing that outside of the availability zones and regions for AWS, um, customers in, in these new areas that you're helping out are, they want cloud, like they want to have modernization a modern applications. Obviously they got data machine learning and AI, all part of that. What's the main product or, or, or gap that you're filling for AWS, uh, outside of their availability zones or their regions that you guys are delivering. What's the key is it. They don't have a footprint. Is it that it's not big enough for them? What's the real gap. What's why, why are you so successful? >>So what customers want when they look towards the cloud is they want to focus on, what's making them money as a business. They want on their applications. They want to focus on their customers. So they look towards AWS cloud and say, AWS, you take the infrastructure. You take, uh, some of the higher layers and we'll focus on our revenue generating business, but there's a gap there between infrastructure and revenue generating business that innovative slides into, uh, we help manage the AWS environment. Uh, we help build out these things in local data centers for 32 plus year old company. We have traditional on-premises people that know about deploying hardware that know about deploying VMware to host EKS anywhere. But we also have most of our company totally focused on the AWS cloud. So we're filling that gap in helping of these AWS services, manage them over the long term. So our customers can go to just primarily and totally focusing on their revenue generating business. So >>Basically you guys are basically building AWS edges, >>Correct? >>For correct companies, correct? Mainly because the, the needs are there, you got data, you got certain products, whether it's, you know, low latency type requirements, right. And then they still work with the regions, right. It's all tied together, right. Is that how it works? Right. >>And, and our customers, even the ones in the edge, they also want us to build out the AWS environment inside the availability zone, because we're always gonna have a failback scenario. If we're gonna deploy FinTech in the Caribbean, we talk about hurricanes and we're gonna talk about failing back into the AWS availability zones. So innovative is filling that gap across the board, whether it be inside the AWS cloud or on the AWS edge. >>All right. So I gotta ask you on the, since you're at the edge in these areas, I won't say underserved, but developing areas where you now have data and you have applications that are tapping into that, that required. It makes total sense. We're seeing that across the board. So it's not like it's, it's an outlier it's actually growing. Yeah. There's also the crypto angle. You got the blockchain. Are you seeing any traction at the edge with blockchain? Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech. And in, in the islands there a lot of, lot of, lot of web three happening. What's your, what's your view on the web three world right now, relative >>To we, we have some customers actually deploying crypto, especially, um, especially in the Caribbean. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers that are deploying crypto. A lot of, uh, countries are choosing crypto to underlie parts of their central banks. Yeah. Um, so it's, it's up and coming a, uh, I, I have some, you know, personal views that, that crypto is still searching for a use case. Yeah. And, uh, I think it's searching a lot and, and we're there to help customers search for that use case. Uh, but, but crypto, as a, as a, uh, technology, um, lives really well on the AWS edge. Yeah. Uh, and, and we're having more and more people talk to us about that. Yeah. And ask for assistance in the infrastructure, because they're developing new cryptocurrencies every day. Yeah. It's not like they're deploying Ethereum or anything specific. They're actually developing new currencies and, and putting them out there on it's >>Interesting. I mean, first of all, we've been doing crypto for many, many years. We have our own little, um, you know, projects going on. But if you look talk to all the crypto people that say, look, we do a smart concept. We use the blockchain. It's kind of over a lot of overhead and it's not really their technical already, but it's a cultural shift, but there's underserved use cases around use of money, but they're all using the blockchain, just for this like smart contracts for instance, or certain transactions. And they go into Amazon for the database. Yeah. <laugh> they all don't tell anyone we're using a centralized service, but what happened to decentralized. >>Yeah. And that's, and that's the conversation performance issue. Yeah. And, and it's a cost issue. Yeah. And it's a development issue. Um, so I think more and more as, as some of these, uh, currencies maybe come up, some of the smart contracts get into, uh, they find their use cases. I think we'll start talking about how does that really live on, on AWS and, and what does it look like to build decentralized applications, but with AWS hardware and services. >>Right. So take me through, uh, a use case of a customer, um, Matthew around the edge. Okay. So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. I want to modernize my business. And I got my developers that are totally peaked up on cloud. Um, but we've identified that it's just a lot of overhead latency issues. I need to have a local edge and serve my ad. And I also want all the benefit of the cloud. So I want the modernization and I wanna migrate to the cloud for all those cloud benefits and the goodness of the cloud. What's the answer. Yeah. >>Uh, big thing is, uh, industrial manufacturing, right? That's, that's one of the best use cases, uh, inside industrial manufacturing, we can pull in many of the AWS edge services we can bring in, uh, private 5g, uh, so that all the, uh, equipment inside that, that manufacturing plant can be hooked up. They don't have to pay huge overheads to deploy 5g it's, uh, better than wifi for the industrial space. Um, when we take computing down to that industrial area, uh, because we wanna do pre-procesing on the data. Yeah. We want to gather some analytics. We deploy that with, uh, regular commercial available hardware running VMware, and we deploy EKS anywhere on that. Uh, inside of that manufacturing plant, uh, we can do pre-procesing on things coming out of the, uh, the robotics that depending on what we're manufacturing, right. Uh, and then we can take those refined analytics and for very low cost with maybe a little bit longer latency transmit those back, um, to the AWS availability zone, the, the standard for >>Data, data lake, or whatever, to >>The data lake. Yeah. Data lake house, whatever it might be. Um, and we can do additional data science on that once it gets to the AWS cloud. Uh, but a lot of that, uh, just in time business decisions, just in time, manufacturing decisions can all take place on an AWS service or services inside that manufacturing plant. And that's, that's one of the best use cases that we're >>Seeing. And I think, I mean, we've been seeing this on the queue for many, many years, moving data around is very expensive. Yeah. But also compute going to the data that saves that cost yep. On the data transfer also on the benefits of the latency. So I have to ask you, by the way, that's standard best practice now for the folks watching don't move the data, unless you have to, um, those new things are developing. So I wanna ask you what new patterns are you seeing emerging once this new architecture's in place? Love that idea, localize everything right at the edge, manufacturing, industrial, whatever, the use case, retail, whatever it is. Right. But now what does that change in the, in the core cloud? This is a, there's a system element here. Yeah. What's the new pattern. There's >>Actually an organizational element as well, because once you have to start making the decision, do I put this compute at the point of use or do I put this compute in the cloud out? Uh, now you start thinking about where business decisions should be taking place. Uh, so not only are you changing your architecture, you're actually changing your organization because you're thinking, you're thinking about a dichotomy you didn't have before. Uh, so now you say, okay, this can take place here. Uh, and maybe maybe decision can wait. Right? Yeah. Uh, and then how do I visualize that? By >>The way, it could be a bot too, doing the work for management. Yeah. <laugh> exactly. You got observability going, right. But you gotta change the database architecture on the back. So there's new things developing. You've got more benefit. There >>Are, there are. And, and we have more and more people that, that want to talk less about databases and want to talk more about data lakes because of this. They want to talk more about customers are starting to talk about throwing away data, uh, you know, for the past maybe decade. Yeah. It's been store everything. And one day we will have a data science team that we hire in our organization to do analytics on this decade of data. And >>Well, I mean, that's, that's a great point. We don't have time to drill into, maybe we do another session on this, but the one pattern was income of the past year is that throwing away data's bad. Even data lakes that so-called turn into data swamps, actually, it's not the case. You look at data, brick, snowflake, and other successes out there. And even time series data, which may seem irrelevant efforts over actually matters when people start retrain their machine learning algorithms. Yep. So as data becomes code, as we call it our lab showcase, we did a whole, whole, that event on this. The data's good in real time and in the lake. Yeah. Because the iteration of the data feeds the machine learning training. Things are getting better with the old data. So it's not throw away. It's not just business benefits. Yeah. There's all kinds of new scale. There >>Are. And, and we have, uh, many customers that are run petabyte level. Um, they're, they're essentially data factories on, on, uh, on premises, right? They're, they're creating so much data and they're starting to say, okay, we could analyze this, uh, in the cloud, we could transition it. We could move petabytes of data to the AWS cloud, or we can run, uh, computational workloads on premises. We can really do some analytics on this data transition, uh, those high level and sort of raw analytics back to AWS run 'em through machine learning. Um, and we don't have to transition 10, 12 petabytes of data into AWS. >>So I gotta end the segment on a, on a kind of a, um, fun note. I was told to ask you about your personal background on premise architect, a cloud and skydiving instructor. <laugh> how does that all work together? What tell, what does this mean? Yeah. >>Uh, you >>Jumped out a plane and got a job. You, you got a customer to jump out >>Kind of. So I was jump, I was teaching Scott eing, uh, before I, before I started in the cloud space, this was 13, 14 years ago. I was a, I still am a Scott I instructor. Yeah. Uh, I was teaching Scott eing and I heard out of the corner of my ear, uh, a guy that owned an MSP that was lamenting about, um, you know, storing data and, and how his cus customers are working. And he can't find enough people to operate all these workloads. So I walked over and said, Hey, this is, this is what I went to school for. Like, I'd love to, you know, uh, I was living in a tent in the woods teaching scout. I think I was like, I'd love to not live in a tent in the woods. So, uh, uh, I started in the first day there, uh, we had a, a discussion, uh, EC two, just come out <laugh> um, and, uh, like, >>This is amazing. >>Yeah. And so we had this discussion, we should start moving customers here. And, uh, and that totally revolutionized that business, um, that, that led to, uh, that that guy actually still owns a skydiving airport. But, um, but through all of that and through being an on premises migrated me and myself, my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, now let's take what we learned in the cloud and, and apply those lessons and those services to >>It's. So it's such a great story, you know, I was gonna, you know, you know, the, the, the, the whole, you know, growth mindset pack your own parachute, you know, uh, exactly. You know, the cloud in the early day was pretty much will the shoot open. Yeah. It was pretty much, you had to roll your own cloud at that time. And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. >>And so was Kubernetes by the way, 2015 or so when, um, when that was coming out, it was, I mean, it was, it was still, and I, maybe it does still feel like that to some people. Right. But, uh, it was, it was the same kind of feeling that we had in the early days, AWS, the same feeling we have when we >>It's pretty much now with you guys, it's more like a tandem jump. Yeah. You know, but, but it's a lot of, lot of this cutting edge stuff, like jumping out of an airplane. Yeah. You guys, the right equipment, you gotta do the right things. Exactly. >>Right. >>Matthew, thanks for coming on the cube. Really appreciate it. Absolutely great conversation. Thanks for having me. Okay. The cubes here live and San Francisco for summit. I'm John Forry host of the cube. Uh, we'll be at a summit in New York coming up in the summer as well. Look up for that. look@thiscalendarforallthecubeactionatthecube.net. We'll be right back with our next segment after this break. >>Okay. Welcome back everyone to San Francisco live coverage here, we're at the cube a be summit 2022. We're back in person. I'm John fury host to the cube. We'll be at the eight of his summit in New York city. This summer, check us out then. But right now, two days in San Francisco, getting all the coverage what's going on in the cloud, we got a cube alumni and friend of the cube, my dudes, car CEO, investor, a Sierra, and also an investor and a bunch of startups, angel investor. Gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see you, sir. Chris. Cool. How are, are you >>Good? How are you? >>So congratulations on all your investments. Uh, you've made a lot of great successes, uh, over the past couple years, uh, and your company raising, uh, some good cash as Sarah. So give us the update. How much cash have you guys raised? What's the status of the company product what's going on? First >>Of all, thank you for having me back to be business with you. Never great to see you. Um, so is a company started around four years back. I invested with a few of the investors and now I'm the CEO there. Um, we have raised close to a hundred million there. Uh, the investors are people like Norwes Menlo, Tru ventures, coast, lo ventures, Ram Sheam and all those people, all well known guys. The Andy Beckel chime, Paul Mo uh, main web. So a whole bunch of operating people and, uh, Silicon valley VCs are involved >>And has it come? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISR is going after is what I call the applying AI for customer service. It operations, it help desk, uh, the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and ServiceNow to take it to the next stage? >>Well, I love having you on the cube, Dave and I, Dave Valenti as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a GE, you're like a guest analyst. <laugh> >>You know who you >>Get to call this fun to talk. You though, >>You got the commentary, you, your, your finger on the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase it. Isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud scale. You predicted that we talked about on cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing DACA just raised a hundred million on a 2 billion valuation back from the dead after they pivoted from an enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control, plane emerging, AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded, observability there's 10 million observability companies. Data is the key. What's your angle on this? What's your take. Yeah, >>No, look, I think I'll give you the view that I see right from my side. Obviously data is very clear. So the things that remember system of recorded you and me talked about the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud NA it'll be called AI, NA AI native is a new buzzword and using the AI customer service it operations. You talk about observability. I call it, AIOps applying AOPs for good old it operation management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events insurance. So I see a lot of work clicking for AIOps and service desk. What needs to be helped us with ServiceNow BMC G you see a new ELA emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflow, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with a AI workflows. So you'll see AI going >>Off is RPA a company is AI, is RPA a feature of something bigger? Or can someone have a company on RPA UI pass? One will be at their event this summer? Um, is it a product company? I mean, I mean, RPA is almost, should be embedded in everything. It's >>A feature. It is very good point. Very, very good thinking. So one is, it's a category for sure. Like, as we thought, it's a category, it's an area where RPA may change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company, or, but that automation should be embedded in every area. Yeah. Like we call cloud NA and AI NATO it'll become automation. NA yeah. And that's your thinking. >>It's almost interesting me. I think about the, what you're talking about what's coming to mind is I'm kinda having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it. It was middleware. It sat between two things and then the middle, and it was software abstraction. Now you have all, all kinds of workflows, abstractions everywhere. So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed or they integrated. I mean, these are the challenges. This is crazy. What's the, >>So don't about the databases become called poly databases. Yeah. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area like you were talking about. It should be part of service. Now it should be part of ISRA, like every company, every Salesforce. So that's why you see MuleSoft and Salesforce buying RPA companies. So you'll see all the SaaS companies, cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also have an automation as a layer <inaudible> inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind us, you've got the expo hall. We got, um, we're back to vents, but you got, you know, AMD, Clum, Ove, uh, Dynatrace data, dog, innovative, all the companies out here that we know, we interview them all. They're trying to be suppliers to this growing enterprise market. Right. Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Bel later today. He's a former NEA guy and we always talk to Jerry, Jen. We know all the, the VCs. What does the startups look like? What does the state of the, in your mind, cause you, I know you invest the entrepreneurial founder situation, clouds bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's code. Yes. Basically data is everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to, uh, two things that I'm seeing out there. Remember leaders of Amazon created the startups 15 years back. Everybody built on Amazon now, Azure and GCP. The next layer would be is people don't just build on Amazon. They're going to build it on top of snowflake. Companies are snowflake becomes a data platform, right? People will build on snowflake. Right? So I see my old boss flagman try to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer. Right? So I think that's in the of, <inaudible> trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis a couple months ago called castles in the cloud where your moat is, what you do in the cloud. Not necessarily in the, in the IP. Um, Dave LAN and I had last reinvent, coined the term super cloud, right? He's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldman S Sachs is doing. You starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage. And guys like Charles Fitzgeral out there, who we like was kind of shit on us saying, Hey, you guys terrible, they didn't get it. Like, yeah. I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. <laugh> if he's cool. Um, but snowflake is on Amazon. Yes. Now they say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist. And, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. >>It is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to build everything on Amazon where possible whatever is, I cannot build. I'll make the pass layer. Remember the middle layer pass will be snowflake. So can build it on snowflake. I can use them for data layer. If I really need to size, I'll build it on four.com Salesforce. So I think that's where you'll see. So >>Basically if you're an entrepreneur, the north star in terms of the outcome is be a super cloud. >>It is, >>That's the application on another big CapEx ride, the CapEx of AWS or cloud, >>And that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. >>Yeah. Yeah. How are, how is Amazon and the clouds dealing with these big whales? The snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think got Redshift. Amazon has got red, um, but Snowflake's a big customer. They're probably paying AWS think big bills too. >>So John, very good. Cause it's like how Netflix is and Amazon prime, right. Netflix runs on Amazon, but Amazon has Amazon prime that co-option will be there. So Amazon will have Redshift, but Amazon is also partnering with, uh, snowflake to have native snowflake data warehouse as a data layer. So I think depending on the application use case, you have to use each of the above. I think snowflake is here for a long term. Yeah. Yeah. So if I'm building an application, I want to use snowflake then writing from stats. >>Well, I think that comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, You know, foreclose your value that's right. But some sort of internal hack, but I think, I think the general question that I have is that I think it's okay to have a super cloud like that because the rising tide is still happening at some point. When does the rising tide stop >>And >>Do the people shopping up their knives, it gets more competitive or is it just an infinite growth cycle? I >>Think it's growth. You call it cloud scale. You invented the word cloud scale. So I think look, cloud will continually agree, increase. I think there's, as long as there are more movement from on, uh, OnPrem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations. It helpless, even the customer service service now and, uh, ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So cloud ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go made. >>I wanna get your thoughts for the folks watching that are, uh, enterprise buyers or practitioners, not suppliers to the market, feel free to, to XME or DMing. Next question's really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products. Cause you know, the big enterprises now and, you know, small, medium, large, and large enterprise are all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between the startup selling to, or a growing startup selling to an enterprise? Um, have you seen changes there? I mean I'm seeing some stuff, but why don't we get your thoughts on that? What, no, it is. >>If I remember going back to our 2007 or eight, it, when I used to talk to you back then when Amazon started very small, right? We are an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or 1% today. Most companies are already spending 20, 30% with startups. Like if I look at a CIO line business, it's gone. Yeah. Can it go more? I think it can double in the next four, five years. Yeah. Spending on the startups. >>Yeah. And check out, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want to get your reaction because I reference the URL cause it's like, there's like a bunch of companies we've been promoting because the solutions that startups have actually are new stuff. Yes. It's bending, it's shifting left for security or using data differently or um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there, um, and gives back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona, you mentioned AIOps, we've been seeing AIOps IOPS booming and that's creating a new developer paradigm that's right. Which we call coin data as code data as code is like infrastructure as code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this data engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same thing? Do you agree? Um, do you disagree or can you share >>Yourself? No, I have a lot of thoughts that plus I see AIOP solutions in the future should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone there yet. Like I spend a lot of time with data dog, Cisco app Dyna, right? Dynatrace, all this solution will go future towards to proactive solution with AOPs. But what you bring up a very good point on the data side. I think like we have a Amazon marketplace and Amazon for startup, there should be data exchange where you want to create for AOPs and AI service that customers are give the data, share the data because we thought the data algorithms are useless. I can come the best algorithm, but I gotta train them, modify them, tweak them, make them better, make them better. Yeah. And I think their whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that area is very important. >>You've always been on, um, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to our big data days back in 2009, you know, >>Look at, look how much data bricks has grown. >>It is uh, double, the key >>Cloud kinda went private, so good stuff. What are you working on right now? Give a, give a, um, plug for what you're working on. You'll still investing. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. So right. ISRA is my number one baby right now. So I'm looking at that growing customers and my customers are some of them, you like it's zoom auto desk, Mac of fee, uh, grandchildren, all the top customers. Um, mainly for it help desk customer service. AIOps those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What's what's their need? What category is it? >>I think they look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on predict S one area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value problem. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service, >>Great stuff, man. Doing great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the cube. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of 80 summit, 2022. And we're gonna be at 80 summit in San, uh, in New York and the summer. So look for that on this calendar, of course go to eight of us, startups.com. I mentioned that it's a site for all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break. >>Okay. Welcome back everyone. This to cubes coverage here in San Francisco, California, a Davis summit, 2022, the beginning of the event season, as it comes back a little bit smaller footprint, a lot of hybrid events going on, but this is actually a physical event, a summit new York's coming in the summer. We'll be there too with the cube on the set. We're getting back in the groove, psyched to be back. We were at reinvent, uh, as well, and we'll see more and more cube, but you're gonna see a lot of virtual cube, a lot of hybrid cube. We wanna get all those conversations, try to get more interviews, more flow going. But right now I'm excited to have Corey Quinn here on the back on the cube chief cloud economists with duck, bill groove, he founder, uh, and chief content person always got great angles, fun comedy, authoritative Corey. Great to see you. Thank you. >>Thanks. Coming on. Sure is a lot of words to describe as shit posting, which is how I describe what I tend to do. Most days, >>Shit posting is an art form now. And if you look at Mark's been doing a lot of shit posting lately, all a billionaires are shit posting, but they don't know how to do it. Like they're not >>Doing it right. Something opportunity there. It's like, here's how to be even more obnoxious and incisive. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, it's like, I get excited with a nonsense I can do with a $20 gift card for an AWS credit compared to, oh well, if I could buy a mid-size island to begin doing this from, oh, then we're having fun. This >>Shit posting trend. Interesting. I was watching a thread go on about, saw someone didn't get a job because of their shit posting and the employer didn't get it. And then someone on the other side, I'll hire the guy cuz I get that's highly intelligent shit posting. So for the audience that doesn't know what shit posting is, what is shit posting? >>It's more or less talking about the world of enterprise tech, which even that sentence is hard to finish without falling asleep and toppling out of my chair in front of everyone on the livestream. But it's doing it in such a way that brings it to life that says the quiet part. A lot of the audience is thinking, but generally doesn't say either because they're polite or not a jackass or more prosaically are worried about getting fired for better or worse. I don't have that particular constraint, >>Which is why people love you. So let's talk about what you, what you think is, uh, worthy and not worthy in the industry right now, obviously, uh, coupons coming up in Spain, which they're having a physical event, you can see the growth of cloud native Amazons, all, all the Adams let see new CEO, Andy move on to be the chief of all. Amazon just saw him. The cover of was it time magazine. Um, he's under a lot of stress. Amazon's changed. Invoice has changed. What's working. What's not, what's rising, what's falling. What's hot. What's not, >>It's easy to sit here and criticize almost anything these folks do. They they're effectively in a fishbowl, but I have trouble imagining the logistics. It takes to wind up handling the catering for a relatively downscale event like this one this year, let alone running a 1.7 million employee company having to balance all the competing challenges and pressures and the rest. I, I just can't fathom what it would be like to look at all of AWS. It's, it's sprawling, immense that dominates our entire industry and say, okay, this is a good start, but I, I wanna focus on something with a broader remit. What is that? How do you even get into that position? And you can't win once you're there. All you can do is hold onto the tiger and hope you don't get mold. Well, >>There's a lot of force for good conversations, seeing a lot of that going on, Amazon's trying to port and he was trying to portray themselves as you know, the Pathfinder, you know, you're the pioneer, um, force for good. And I get that and I think that's a good angle as cloud goes mainstream. There's still the question of, we had a guy on just earlier, who was a skydiving instructor and we were joking about the early days of cloud. Like that was like skydiving, build a parachute open, you know, and now it same kind of thing. As you move to edge, things are like reliable in some areas, but still new, new fringe, new areas. That's crazy. Well, >>Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon and his backfill replacement. The AWS CISO is CJ. Moses who as a hobby races, a as a semi-pro race car driver to my understanding, which either, I don't know what direction to take that in either. This is what he does to relax or ultimately, or ultimately it's. Huh? That, that certainly says something about risk assessment. I'm not entirely sure what, but okay. Either way, sounds like more exciting >>Replacement ready <laugh> in case something goes wrong. I, the track highly >>Available >>CSOs. I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, which I was never a fan of until I watched that Netflix series. But when you look at the formula one, it's pretty cool. Cause it's got some tech angles, I get the whole data instrumentation thing, but the most coolest thing about formula one is they have these new rigs out. Yeah. Where you can actually race in e-sports with other, in pure simulation of the race car. You gotta get the latest and video graphics card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're basically simulating racing. >>Oh, it's great too. And I can see the appeal of these tech companies getting into it because these things are basically rocket shifts. When those cars go, like they're sitting there, we can instrument every last part of what is going on inside that vehicle. And then AWS crops up. And we can bill on every one of those dimensions too. And it's like slow down their hasty pudding one step at a time. But I do see the appeal. >>So I gotta ask you about, uh, what's going in your world. I know you have a lot of great success. We've been following you in the queue for many, many years. Got a great newsletter. Check out Corey Quinn's newsletter, uh, screaming in the cloud program. Uh, you're on the cutting edge and you've got a great balance between really being snarky and, and, and really being delivering content. That's exciting, uh, for people, uh, with a little bit of an edge, um, how's that going? Uh, what's back any blow back late there been uptick. What was, what are some of the things you're hearing from your audience, more Corey, more Corey. And then of course the, the PR team's calling you >>The weird thing about having an audience beyond a certain size is far and away as a landslide. The most common response I get is silence where it's high. I'm emailing an awful lot of people at last week in AWS every week and okay. They must not have heard me it. That is not actually true. People just generally don't respond to email because who responds to email newsletters. That sounds like something, a lunatic might do same story with response to live streams and podcasts. It's like, I'm gonna call into that am radio show and give them a piece of my mind. People generally don't do that. >>We should do that. Actually. I think sure would call in. Oh, I, >>I think >>Chief, we had that right now. People would call in and say, Corey, what do you think about X? >>Yeah. It not, everyone understands the full context of what I do. And in fact, increasingly few people do and that's fine. I, I keep forgetting that sometimes people do not see what I'm doing in the same light that I do. And that's fine. Blowback has been largely minimal. Honestly, I am surprised anything by how little I have gotten over the last five years of doing this, but it would be easier to dismiss me if I weren't generally. Right. When, okay, so you launch this new service and it seems pretty crappy to me cuz when I try and build something, it falls over and begs for help. And people might not like hearing that, but it's what customers are finding too. Yeah. I really am the voice of the customer. >>You know, I always joke with Dave ante about how John Fort's always at, uh, reinvent getting the interview with jazzy now, Andy we're there, you're there. And so we have these rituals at the events. It's all cool. Um, one of the rituals I like about your, um, your content is you like to get on the naming product names. Um, and, and, and, and, and kind of goof on that. Now why I like is because I used to work at ETT Packard where they used to name things as like engineers, HP 1 0 5, or we can't, >>We have a new monitor. How are we gonna name it? Throw the wireless keyboard down the stairs again. And there you go. Yeah. >>It's and the old joke at HP was if they, if they invented sushi, they'd say, yeah, we can't call sushi. It's cold, dead fish. That's what it is. And so the joke was cold. Dead fish is a better name than sushi. So you know is fun. So what's the, what are the, how's the Amazon doing in there? Have they changed their naming, uh, strategy, uh, on some of their, their >>Producting, they're going in different directions. When they named Amazon Aurora, they decided to explore a new theme of Disney princesses as they go down those paths. And some things are more descriptive. Some people are clearly getting bonused on a number of words. They can shove into it. Like the better a service is the longer it's name. Like AWS systems manager, session manager is a great one. I love the service, ridiculous name. They have systems manager, parameter store, which is great. They have secrets manager, which does the same thing. It's two words less, but that one costs money in a way that systems manage your parameter store does not. It's >>Fun. What's your, what's your favorite combination of acronyms >>Combination of you >>Got Ks. You got EMR, you got EC two. You got S three SQS. Well, Redshift the on an acronym, you >>Gots is one of my personal favorites because it's either elastic block store or elastic bean stock, depending entirely on the context of the conversation. >>They still up bean stalk. Or is that still around? Oh, >>They never turn anything off. They're like the anti Google, Google turns things off while they're still building it. Whereas Amazon is like, wow, we built this thing in 2005 and everyone hates it. But while we certainly can't change it, now it has three customers on it. John three <laugh>. >>Okay. >>Simple BV still haunts our dreams. >>I, I actually got an email. I saw one of my, uh, servers, all these C two S were being deprecated and I got an email I'm like, I couldn't figure out. Why can you just like roll it over? Why, why are you telling me just like, give me something else. Right. Okay. So let me talk about, uh, the other things I want to ask you is that like, okay. So as Amazon gets better in some areas, where do they need more work in your opinion? Because obviously they're all interested in new stuff and they tend to like put it out there for their end to end customers. But then they've got ecosystem partners who actually have the same product. Yes. And, and this has been well documented. So it's, it's not controversial. It's just that Amazon's got a database, Snowflake's got a database service. So Redshift, snowflake database is, so you got this co-op petition. Yes. How's that going? And what are you hearing about the reaction to any of that stuff? >>Depends on who you ask. They love to basically trot out a bunch of their partners who will say nice things about them. And it very much has heirs of, let's be honest, a hostage video, but okay. Cuz these companies do partner with Amazon and they cannot afford to rock the boat too far. I'm not partnered with anyone. I can say what I want and they're basically restricted to taking away my birthday at worse so I can live with that. >>All right. So I gotta ask about multi-cloud cause obviously the other cloud shows are coming up. Amazon hated that word. Multi-cloud um, a lot of people are saying, you know, it's not a real good marketing word, like multi sounds like, you know, root canal. Mm-hmm <affirmative> right. So is there a better description for multi-cloud >>Multiple single points? >>Dave loves that term. Yeah. >>Yeah. You're building in multiple single points of failure. Do it for the right reasons or don't do it as a default. I believe not doing it is probably the right answer. However, and if I were, if I were Amazon, I wouldn't want to talk about multi-cloud either as the industry leader, talk about other clouds, bad direction to go in from a market cap perspective, it doesn't end well for you, but regardless of what they want to talk about, or don't want to talk about what they say, what they don't say, I tune all of it out. And I look at what customers are doing and multi-cloud exists in a variety of forms. Some brilliant, some brain dead. It depends a lot on context. But my general response is when someone gets on stage from a company and tells me to do a thing that directly benefits their company. I am skeptical at best. Yeah. When customers get on stage and say, this is what we're doing, because it solves problems. That's when I shut up and listen. Yeah. >>Cool. Awesome. Corey, I gotta ask you a question, cause I know you, we you've been, you know, fellow journeymen and the, and the cloud journey going to all the events and then the pandemic hit where now in the third year, who knows what it's gonna gonna end. Certainly events are gonna look different. They're gonna be either changing footprint with the virtual piece, new group formations. Community's gonna emerge. You got a pretty big community growing and it's throwing like crazy. What's the weirdest or coolest thing, or just big chain angels. You've seen with the pandemic, uh, from your perspective, cuz you've been in the you're in the middle of the whitewater rafting. You've seen the events you circle offline. You saw the online piece, come in, you're commentating. You're calling balls and strikes in the industry. You got a great team developing over there. Duck bill group. What's the big aha moment that you saw with the pandemic. Weird, fun, serious, real in the industry and with customers what's >>Accessibility. Reinvent is a great example. When in the before times it's open to anyone who wants to attend, who can pony up two grand and a week in Las Vegas and get to Las Vegas from wherever they happen to be by moving virtually suddenly it, it embraces the reality that talent is even distributed. Opportunity is not. And that means that suddenly these things are accessible to a wide swath of audience and potential customer base and the rest that hadn't been invited to the table previously, it's imperative that we not lose that. It's nice to go out and talk to people and have people come up and try and smell my hair from time to time, I smell delightful. Let make assure you, but it was, but it's also nice to be. >>I have a product for you if you want, you know. >>Oh, excellent. I look forward to it. What is it putting? Why not? <laugh> >>What else have you seen? So when accessibility for talent, which by the way is totally home run. What weird things have happened that you've seen? Um, that's >>Uh, it's, it's weird, but it's good that an awful lot of people giving presentations have learned to tighten their message and get to the damn point because most people are not gonna get up from a front row seat in a conference hall, midway through your Aing talk and go somewhere else. But they will change a browser tab and you won't get them back. You've gotta be on point. You've gotta be compelling if it's going to be a virtual discussion. >>Yeah. And also turn off your IMEs too. >>Oh yes. It's always fun in the, in the meetings when you're talking to someone and their co is messaging them about, should we tell 'em about this? And I'm sitting there reading it and it's >>This guy is really weird. Like, >>Yes I am and I bring it into the conversation and then everyone's uncomfortable. It goes, wow. >>Why not? I love when my wife yells at me over I message. When I'm on a business call, like, do you wanna take that about no, I'm good. >>No, no. It's better off. I don't. No, the only encourager it's fine. >>My kids. Excellent. Yeah. That's fun again. That's another weird thing. And, and then group behavior is weird. Now people are looking at, um, communities differently. Yes. Very much so, because if you're fatigued on content, people are looking for the personal aspect. You're starting to see much more of like yeah. Another virtual event. They gotta get better. One and two who's there. >>Yeah. >>The person >>That's a big part of it too is the human stories are what are being more and more interesting. Don't get up here and tell me about your product and how brilliant you are and how you built it. That's great. If I'm you, or if I wanna work with you or I want to compete with you, or I wanna put on my engineering hat and build it myself. Cause why would I buy anything? That's more than $8. But instead, tell me about the problem. Tell me about the painful spot that you specialize in. Tell me a story there. >>I, I >>Think that gets a glimpse in a hook and >>Makes more, more, I think you nailed it. Scaling storytelling. Yes. And access to better people because they don't have to be there in person. I just did it thing. I never, we never would've done the queue. We did. Uh, Amazon stepped up in sponsors. Thank you, Amazon for sponsoring international women's day, we did 30 interviews, APAC. We did five regions and I interviewed this, these women in Asia, Pacific eight, PJ, they called for in this world. And they're amazing. I never would've done those interviews cuz I never, would've seen 'em at an event. I never would've been in Japan or Singapore to access them. And now they're in the index. They're in the network. They're collaborating on LinkedIn. So a threads are developing around connections that I've never seen before. Yes. Around the content, >>Absolutely >>Content value plus >>The networking. And that is the next big revelation of this industry is going to realize you have different companies. And in Amazon's case, different service teams, all, all competing with each other, but you have the container group and you have the database group and you have the message cuing group. But customers don't really want to build things from spare parts. They want a solution to a problem. I want to build an app that does Twitter for pets or whatever it is I'm trying to do. I don't wanna basically have to pick and choose and fill my shopping cart with all these different things. I want something that's gonna give me what I'm trying to get as close to turnkey as possible. Moving up the stack. That is the future. And just how it gets here is gonna be >>Well we're here with Corey Quinn, the master of the master of content here in the a ecosystem. Of course we we've been following up in the beginnings. Great guy. Check out his blog, his site, his newsletter screaming podcast. Cory, final question for you. Uh, what do you hear doing what's on your agenda this week in San Francisco and give a plug for the duck build group. What are you guys doing? I know you're hiring some people what's on the table for the company. What's your focus this week and put a plug in for the group. >>I'm here as a customer and basically getting outta my cage cuz I do live here. It's nice to actually get out and talk to folks who are doing interesting things at the duck build group. We solve one problem. We fixed the horrifying AWS bill, both from engineering and architecture, advising as well as negotiating AWS contracts because it turns out those things are big and complicated. And of course my side media projects last week in aws.com, we are, it it's more or less a content operation where I indulge my continual and ongoing law of affair with the sound of my own voice. >><laugh> and you good. It's good content. It's on, on point fun, Starky and relevant. So thanks for coming to the cube and sharing with us. Appreciate it. No, thank you. Fun. You. Okay. This the cube covers here in San Francisco, California, the cube is back at to events. These are the summits, Amazon web services summits. They happen all over the world. We'll be in New York and obviously we're here in San Francisco this week. I'm John furry. Keep, keep it right here. We'll be back with more coverage after this short break. Okay. Welcome back everyone. This's the cubes covers here in San Francisco, California, we're live on the show floor of AWS summit, 2022. I'm John for host of the cube and remember AWS summit in New York city coming up this summer, we'll be there as well. And of course reinvent the end of the year for all the cube coverage on cloud computing and AWS. The two great guests here from the APN global APN se Jenko and Jeff Grimes partner leader, Jeff and se is doing partnerships global APN >>AWS global startup program. Yeah. >>Okay. Say that again. >>AWS global startup program. >>That's the official name. >>I love >>It too long, too long for me. Thanks for coming on. Yeah, of course. Appreciate it. Tell us about what's going on with you guys. What's the, how was you guys organized? You guys we're obviously were in San Francisco bay area, Silicon valley, zillions of startups here, New York. It's got another one we're gonna be at tons of startups. Lot of 'em getting funded, big growth and cloud big growth and data security, hot and sectors. >>Absolutely. >>So maybe, maybe we could just start with the global startup program. Um, it's essentially a white glove service that we provide to startups that are built on AWS. And the intention there is to help identify use cases that are being built on top of AWS. And for these startups, we want to provide white glove support in co building products together. Right. Um, co-marketing and co-selling essentially, um, you know, the use cases that our customers need solved, um, that either they don't want to build themselves or are perhaps more innovative. Um, so the, a AWS global startup program provides white glove support, dedicated headcount for each one of those pillars. Um, and within our program, we've also provided incentives, programs go to market activities like the AWS startup showcase that we've built for these startups. >>Yeah. By the way, start AWS startups.com is the URL, check it out. Okay. So partnerships are key. Jeff, what's your role? >>Yeah. So I'm responsible for leading the overall F for, for the AWS global startup program. Um, so I've got a team of partner managers that are located throughout the us, uh, managing a few hundred startup ISVs right now. <laugh> >>Yeah, I got >>A lot. We've got a lot. >>There's a lot. I gotta, I gotta ask the tough question. Okay. I'm I'm a startup founder. I got a team. I just got my series a we're grown. I'm trying to hire people. I'm super busy. What's in it for me. Yeah. What do you guys bring to the table? I love the white glove service, but translate that what's in it. What do I get out of it? What's >>A good story. Good question. I focus, I think. Yeah, because we get, we get to see a lot of partners building their businesses on AWS. So, you know, from our perspective, helping these partners focus on what, what do we truly need to build by working backwards from customer feedback, right? How do we effectively go to market? Because we've seen startups do various things, um, through trial and error, um, and also just messaging, right? Because oftentimes partners or rather startups, um, try to boil the ocean with many different use cases. So we really help them, um, sort of laser focus on what are you really good at and how can we bring that to the customer as quickly as possible? >>Yeah. I mean, it's truly about helping that founder accelerate the growth of their company. Yeah. Right. And there's a lot that you can do with AWS, but focus is truly the key word there because they're gonna be able to find their little piece of real estate and absolutely deliver incredible outcomes for our customers. And then they can start their growth curve there. >>What are some of the coolest things you've seen with the APN that you can share publicly? I know you got a lot going on there, a lot of confidentiality. Um, but you know, we're here lot of great partners on the floor here. I'm glad we're back at events. Uh, a lot of stuff going on digitally with virtual stuff and, and hybrid. What are some of the cool things you guys have seen in the APN that you can point to? >>Yeah, absolutely. I mean, I can point to few, you can take them. Sure. So, um, I think what's been fun over the years for me personally, I came from a startup, ran sales at an early stage startup and, and I went through the whole thing. So I have a deep appreciation for what these guys are going through. And what's been interesting to see for me is taking some of these early stage guys, watching them progress, go public, get acquired, and see that big day mm-hmm <affirmative>, uh, and being able to point to very specific items that we help them to get to that point. Uh, and it's just a really fun journey to watch. >>Yeah. I, and part of the reason why I really, um, love working at the AWS, uh, global startup program is working with passionate founders. Um, I just met with a founder today that it's gonna, he's gonna build a very big business one day, um, and watching them grow through these stages and supporting that growth. Um, I like to think of our program as a catalyst for enterprise sort of scale. Yeah. Um, and through that we provide visibility, credibility and growth opportunities. >>Yeah. A lot, a lot of partners too. What I found talking to staff founders is when they have that milestone, they work so hard for it. Whether it's a B round C round Republic or get bought. Yeah. Um, then they take a deep breath and they look back at wow, what a journey it's been. So it's kind of emotional for sure. Yeah. Still it's a grind. Right? You gotta, I mean, when you get funding, it's still day one. You don't stop. It's no celebrate, you got a big round or valuation. You still gotta execute >>And look it's hypercompetitive and it's brutally difficult. And our job is to try to make that a little less difficult and navigate those waters right. Where everyone's going after similar things. >>Yeah. I think as a group element too, I observe that startups that I, I meet through the APN has been interesting because they feel part of AWS. Yeah, totally. As a group of community, as a vibe there. Um, I know they're hustling, they're trying to make things happen. But at the same time, Amazon throws a huge halo effect. I mean, that's a huge factor. I mean, yeah. You guys are the number one cloud in the business, the growth in every sector is booming. Yeah. And if you're a startup, you don't have that luxury yet. And look at companies like snowflake, they're built on top of AWS. Yeah. I mean, people are winning by building on AWS. >>Yeah. And our, our, our program really validates their technology first. So we have, what's called a foundation's technical review that we put all of our startups through before we go to market. So that when enterprise customers are looking at startup technology, they know that it's already been vetted. And, um, to take that a step further and help these partners differentiate, we use programs like the competency programs, the DevOps compet, the, the security competency, which continues to help, um, provide sort of a platform for these startups, help them differentiate. And also there's go to market benefits that are associated with that. >>Okay. So let me ask the, the question that's probably on everyone's mind, who's watching. Certainly I asked this a lot. There's a lot of companies startups out there who makes the, is there a criteria? Oh God, it's not like his sports team or anything, but like sure. Like there's activate program, which is like, there's hundreds of thousands of startups out there. Not everyone is at the APN. Right? Correct. So ISVs again, that's a whole nother, that's a more mature partner that might have, you know, huge market cap or growth. How do you guys focus? How do you guys focus? I mean, you got a good question, you know, a thousand flowers blooming all the time. Is there a new way you guys are looking at it? I know there's been some talk about restructure or, or new focus. What's the focus. >>Yeah. It's definitely not an easy task by any means. Um, but you know, I recently took over this role and we're really trying to establish focus areas, right. So obviously a lot of the fees that we look after our infrastructure ISVs, that's what we do. Uh, and so we have very specific pods that look after different type of partners. So we've got a security pod, we've got a DevOps pod, we've got core infrastructure, et cetera. And really we're trying to find these ISVs that can solve, uh, really interesting AWS customer challenges. >>So you guys have a deliberate, uh, focus on these pillars. So what infrastructure, >>Security, DevOps, and data and analytics, and then line of business >>Line of business line, like web marketing >>Solutions, business apps, >>Business, this owner type thing. Exactly. >>Yeah, exactly. >>So solutions there. Yeah. More solutions and the other ones are like hardcore. So infrastructure as well, like storage, backup, ransomware of stuff, or, >>Uh, storage, networking. >>Okay. Yeah. The classic >>Database, et cetera. Right. >>And so there's teams on each pillar. >>Yep. So I think what's, what's fascinating for the startup that we cover is that they've got, they truly have support from a build market sell perspective. Right. So you've got someone who's technical to really help them get the technology, figured out someone to help them get the marketing message dialed and spread, and then someone to actually do the co-sell, uh, day to day activities to help them get in front of customers. >>Probably the number one request that we always ask for Amazon is can we waste that sock report? Oh, download it, the console, which we use all the time. Exactly. But security's a big deal. I mean, you know, SREs are evolving, that role of DevOps is taking on dev SecOps. Um, I, I could see a lot of customers having that need for a relationship to move things faster. Do you guys provide like escalation or is that a part of a service or not, not part of a, uh, >>Yeah, >>So the partner development manager can be an escalation point. Absolutely. Think of them as an extension of your business inside of AWS. >>Great. And you guys how's that partner managers, uh, measure >>On those three pillars. Right. Got it. Are we billing, building valuable use cases? So product development go to market, so go to market activities, think blog, posts, webinars, case studies, so on and so forth. And then co-sell not only are we helping these partners win their current opportunities that they are sourcing, but can we also help them source net new deals? Yeah. Right. That's >>Very important. I mean, top asked from the partners is get me in front of customers. Right. Um, not an easy task, but that's a huge goal of ours to help them grow their top >>Line. Right. Yeah. In fact, we had some interviews here on the cube earlier talking about that dynamic of how enterprise customers are buying. And it's interesting, a lot more POCs. I have one partner here that you guys work with, um, on observability, they got a huge POC with capital one mm-hmm <affirmative> and the enterprises are engaging the startups and bringing them in. So the combination of open source software enterprises are leaning into that hard and bringing young growing startups in mm-hmm <affirmative>. Yep. So I could see that as a huge service that you guys can bring people in. >>Right. And they're bringing massively differentiated technology to the table. Mm-hmm <affirmative> the challenge is they just might not have the brand recognition that the big guys have. And so that it's our job is how do you get that great tech in front of the right situations? >>Okay. So my next question is about the show here, and then we'll talk globally. So here in San Francisco sure. You know, Silicon valley bay area, San Francisco bay area, a lot of startups, a lot of VCs, a lot of action. Mm-hmm <affirmative> so probably a big market for you guys. Yeah. So what's exciting here in SF and then outside SF, you guys have a global program, you see any trends that are geography based or is it sure areas more mature? There's certain regions that are better. I mean, I just interviewed a company here that's doing, uh, AWS edge really well in these cases. It's interesting that these, the partners are filling a lot of holes and gaps in the opportunities with AWS. So what's exciting here. And then what's the global perspective. >>Yeah, totally. So obviously a ton of partners, I, from the bay area that we support. Um, but we're seeing a lot of really interesting technology coming out of AMEA specifically. Yeah. Uh, and making a lot of noise here in the United States, which is great. Um, and so, you know, we definitely have that global presence and, and starting to see super differentiated technology come out of those regions. >>Yeah. Especially Tel Aviv. Yeah. >>Amy real quick, before you get in the surge. It's interesting. The VC market in, in Europe is hot. Yeah. They've got a lot of unicorns coming in. We've seen a lot of companies coming in. They're kind of rattling their own, you know, cage right now. Hey, look at us. We'll see if they crash, you know, but we don't see that happening. I mean, people have been projecting a crash now in, in the startup ecosystem for at least a year. It's not crashing. In fact, funding's up. >>Yeah. The pandemic was hard on a lot of startups for sure. Yeah. Um, but what we've seen is many of these startups, they, as quickly as they can grow, they can also pivot as, as, as well. Um, and so I've actually seen many of our startups grow through the pandemic because their use cases are helping customers either save money, become more operationally efficient and provide value to leadership teams that need more visibility into their infrastructure during a pandemic. >>It's an interesting point. I talked to Andy jazzy and Adam Leski both say the same thing during the pandemic necessity, the mother of all invention. Yep. And startups can move fast. So with that, you guys are there to assist if I'm a startup and I gotta pivot cuz remember iterate and pivot, iterate and pivot. So you get your economics, that's the playbook of the ventures and the models. >>Exactly. How >>Do you guys help me do that? Give me an example of walk me through, pretend me I'm a startup. Hey, I am on the cloud. Oh my God. Pandemic. They need video conferencing. Hey cube. Yeah. What do I need? Surge? What, what do I do? >>That's a good question. First thing is just listen. Yeah. I think what we have to do is a really good job of listening to the partner. Um, what are their needs? What is their problem statement and where do they want to go at the end of the day? Um, and oftentimes because we've worked with so many successful startups, they have come out of our program. We have, um, either through intuition or a playbook, determined what is gonna be the best path forward and how do we get these partners to stop focusing on things that will eventually, um, just be a waste of time yeah. And, or not provide, or, you know, bring any fruit to the table, which, you know, essentially revenue. >>Well, we love star rights here in the cube because one, um, they have good stories. They're oil and cutting edge, always pushing the envelope and they're kind of disrupting someone else. Yeah. And so they have an opinion. They don't mind sharing on camera. So love talking to startups. We love working with you guys on our startup showcases startups.com. Check out AWS startups.com and you got the showcases, uh, final. We I'll give you guys the last word. What's the bottom line bumper sticker for AP the global APN program. Summarize the opportunity for startups, what you guys bring to the table and we'll close it out. Totally start >>With you. Yeah. I think the AWS global startup program's here to help companies truly accelerate their business full stop. Right. And that's what we're here for. I love it. >>It's a good way to, it's a good way to put it Dito. >>Yeah. All right, sir. Thanks for coming on. Thanks John. Great to see you love working with you guys. Hey, startups need help. And the growing and huge market opportunities, the shift cloud scale data engineering, security infrastructure, all the markets are exploding in growth because of the digital transformation of the realities here. Open source and cloud all making it happen here in the cube in San Francisco, California. I'm John furrier, your host. Thanks for watching >>John. >>Hello and welcome back to the cubes live coverage here in San Francisco, California for AWS summit, 2022. I'm John for host of the cube. Uh, two days of coverage, AWS summit, 2022 in New York city. Coming up this summer, we'll be there as well at events are back. The cube is back of course, with the cube virtual cube hybrid, the cube.net, check it out a lot of content this year, more than ever, a lot more cloud data cloud native, modern applic is all happening. Got a great guest here. Jeremy Burton, Cub alumni, uh, CEO of observe Inc in the middle of all the cloud scale, big data observability Jeremy. Great to see you. Thanks >>Always great to come and talk to you on the queue, man. It's been been a few years, so, >>Um, well you, you got your hands. You're in the trenches with great startup, uh, good funding, great board, great people involved in the observability hot area, but also you've been a senior executive president of Dell, uh, EMC, uh, 11 years ago you had a, a vision and you actually had an event called cloud meets big data. Um, yeah. And it's here. You predicted it 11 years ago. Um, look around it's cloud meets big data. >>Yeah. I mean the, the cloud thing I think, you know, was, was probably already a thing, but the big data thing I do claim credit for, for, for sort of catching that bus out, um, you know, we, we were on the, the, the bus early and, and I think it was only inevitable. Like, you know, if you could bring the economics and the compute of cloud to big data, you, you could find out things you could never possibly imagine. >>So you're close to a lot of companies that we've been covering deeply. Snowflake obviously are involved, uh, the board level, you know, the founders, you know, the people there cloud, you know, Amazon, you know, what's going on here? Yeah. You're doing a startup as the CEO at the helm, uh, chief of observ, Inc, which is an observability, which is to me in the center of this confluence of data engineering, large scale integrations, um, data as code integrating into applic. I mean, it's a whole nother world developing, like you see with snowflake, it means snowflake is super cloud as we call it. So a whole nother wave is here. What's your, what's this wave we're on what's how would you describe the wave? >>Well, a couple of things, I mean, people are, I think riding more software than, than ever fall. Why? Because they've realized that if, if you don't take your business online and offer a service, then you become largely irrelevant. And so you you've got a whole set of new applications. I think, I think more applications now than any point. Um, not, not just ever, but the mid nineties, I always looked at as the golden age of application development. Now back then people were building for windows. Well, well now they're building for things like AWS is now the platform. Um, so you've got all of that going on. And then at the same time, the, the side effect of these applications is they generate data and lots of data and the, you know, the sort of the transactions, you know, what you bought today or something like that. But then there's what we do, which is all the telemetry data, all the exhaust fumes. And I think people really are realizing that their differentiation is not so much their application. It's their understanding of the data. Can, can I understand who my best customers are, what I sell today. If people came to my website and didn't buy, then I not, where did they drop off all of that they wanna analyze. And, and the answers are all in the data. The question is, can you understand it >>In our last startup showcase, we featured data as code. One of the insights that we got out of that I wanna get your opinion on our reaction to is, is that data used to be put into a data lake and turns into a data swamp or throw into the data warehouse. And then we'll do some query, maybe a report once in a while. And so data, once it was done, unless it was real time, even real time was not good anymore after real time. That was the old way. Now you're seeing more and more, uh, effort to say, let's go look at the data cuz now machine learning is getting better. Not just train once mm-hmm <affirmative> they're iterating. Yeah. This notion of iterating and then pivoting, iterating and pivoting. Yeah, that's a Silicon valley story. That's like how startups work, but now you're seeing data being treated the same way. So now you have another, this data concept that's now yeah. Part of a new way to create more value for the apps. So this whole, this whole new cycle of >>Yeah. >>Data being reused and repurposed and figured out and >>Yeah, yeah. I'm a big fan of, um, years ago. Uh, uh, just an amazing guy, Andy McAfee at the MIT C cell labs I spent time with and he, he had this line, which still sticks to me this day, which is look I'm I'm. He said I'm part of a body, which believes that everything is a matter of data. Like if you, of enough data, you can answer any question. And, and this is going back 10 years when he was saying these kind of things and, and certainly, you know, research is on the forefront. But I, I think, you know, starting to see that mindset of the, the sort of MIT research be mainstream, you know, in enterprises, they they're realizing that yeah, it is about the data. You know, if I can better understand my data better than my competitor than I've got an advantage. And so the question is is, is how, what, what technologies and what skills do I need in my organization to, to allow me to do that. So >>Let's talk about observing you the CEO of, okay. Given you've seen the wave before you're in the front lines of observability, which again is in the center of all this action what's going on with the company. Give a quick minute to explain, observe for the folks who don't know what you guys do. What's the company doing? What's the funding status, what's the product status and what's the customer status. Yeah. >>So, um, we realized, you know, a handful of years ago, let's say five years ago that, um, look, the way people are building applications is different. They they're way more functional. They change every day. Uh, but in some respects they're a lot more complicated. They're distributed. They, you know, microservices architectures and when something goes wrong, um, the old way of troubleshooting and solving problems was not gonna fly because you had SA so much change going into production on a daily basis. It was hard to tell like where the problem was. And so we thought, okay, it's about time. Somebody looks at the exhaust fumes from this application and all the telemetry data and helps people troubleshoot and make sense of the problems that they're seeing. So, I mean, that's observability, it's actually a term that goes back to the 1960s. It was a guy called, uh, Rudolph like, like everything in tech, you know, it's, it's a reinvention of, of something from years gone by. >>But, um, there's a guy called, um, Rudy Coleman in 1960s, kinder term. And, and, and the term was been able to determine the state of a system by looking at its external outputs. And so we've been going on this for, uh, the best part of the all years now. Um, it took us three years just to build the product. I think, I think what people don't appreciate these days often is the barrier to entry in a lot of these markets is quite high. You, you need a lot of functionality to have something that's credible with a customer. Um, so yeah, this last year we, we, we did our first year selling, uh, we've got about 40 customers now. <affirmative> um, we just we've got great investors for the hill ventures. Uh, I mean, Mike SP who was, you know, the, the guy who was the, really, the first guy in it snowflake and the, the initial investor were fortunate enough to, to have Mike on our board. And, um, you know, part of the observed story yeah. Is closely knit with snowflake because all of that time data know we, we still are in there. >>So I want to get, uh, >>Yeah. >>Pivot to that. Mike Pfizer, snowflake, Jeremy Burton, the cube kind of, kind of same thinking this idea of a super cloud or what snowflake became snowflake is massively successful on top of AWS. Mm-hmm <affirmative> and now you're seeing startups and companies build on top of snowflake. Yeah. So that's become an entrepreneurial story that we think that to go big in the cloud, you can have a cloud on a cloud, uh, like as Jerry, Jerry Chan and Greylock calls it castles in the cloud where there are moats in the cloud. So you're close to it. I know you're doing some stuff with snowflake. So a startup, what's your view on building on top of say a snowflake or an AWS, because again, you gotta go where the data is. You need all the data. >>Yeah. So >>What's your take on that? >>I mean, having enough gray hair now, um, you know, again, in tech, I think if you wanna predict the future, look at the past. And, uh, you know, to many years ago, 25 years ago, I was at a, a smaller company called Oracle and an Oracle was the database company. And, uh, their, their ambition was to manage all of the world's transactional data. And they built on a platform or a couple of platforms, one, one windows, and the other main one was Solaris. And so at that time, the operator and system was the platform. And, and then that was the, you know, ecosystem that you would compete on top of. And then there were companies like SAP that built applications on top of Oracle. So then wind the clock forward 25 years gray hairs. <laugh> the platform, isn't the operating system anymore. The platform is AWS, you know, Google cloud. I gotta probably look around if I say that in. Yeah. It's >>Okay. But hyperscale, yeah. CapX built out >>That is the new platform. And then snowflake comes along. Well, their aspiration is to manage all of the, not just human generator data, but machine generated data in the world of cloud. And I think they they've done an amazing job doing for the, I'd say, say the, the big data world, what Oracle did for the relational data world, you know, way back 25 years ago. And then there are folks like us come along and, and of course my ambition would be, look, if, if we can be as successful as an SAP building on top of snow snowflake, uh, as, as they were on top of Oracle, then, then we'd probably be quite happy. >>So you're building on top of snowflake. >>We're building on top of snowflake a hundred percent. And, um, you know, I've had folks say to me, well, aren't you worried about that? Isn't that a risk? It's like, well, that that's a risk. You >>Still on the board. >>Yeah. I'm still on the board. Yeah. That that's a risk I'm prepared to take <laugh> I am long on snowflake you, >>Well, you're in a good spot. Stay on the board, then you'll know what's going on. Okay. No know just doing, but the, this is a real dynamic. It is. It's not a one off it's. >>Well, and I do believe as well that the platform that you see now with AWS, if you look at the revenues of AWS is an order of magnitude more than Microsoft was 25 years ago with windows mm-hmm <affirmative>. And so I believe the opportunity for folks like snowflake and folks like observe it's an order of magnitude more than it was for the Oracle and the SAPs of the old >>World. Yeah. And I think this is really, I think this is something that this next generation of entrepreneurship is the go big scenario is you gotta be on a platform. Yeah. >>It's quite >>Easy or be the platform, but it's hard. There's only like how many seats are at that table left. >>Well, value migrates up over time. So, you know, when the cloud thing got going, there were probably 10, 20, 30, you know, Rackspace and there's 1,000,001 infrastructure, a service platform as a service, my, my old, uh, um, employee EMC, we had pivotal, you know, pivotal was a platform as a service. You don't hear so much about it, these, but initially there's a lot of players and then it consolidates. And then to, to like extract, uh, a real business, you gotta move up, you gotta add value, you gotta build databases, then you gotta build applications. So >>It's interesting. Moving from the data center of the cloud was a dream for starters. Cause then if the provision, the CapEx, now the CapEx is in the cloud. Then you build on top of that, you got snowflake you on top of that, the >>Assumption is almost that compute and storage is free. I know it's not quite free. Yeah. It's >>Almost free, >>But, but you can, you know, as an application vendor, you think, well, what can I do if I assume compute and storage is free, that's the mindset you've gotta get into. >>And I think the platform enablement to value. So if I'm an entrepreneur, I'm gonna get a serious, multiple of value in what I'm paying. Yeah. Most people don't even blanket their Avis pills unless they're like massively huge. Yeah. Then it's a repatriation question or whatever discount question, but for most startups or any growing company, the Amazon bill should be a small factor. >>Yeah. I mean, a lot of people, um, ask me like, look, you're building on snowflake. Um, you, you know, you are, you are, you're gonna be, you're gonna be paying their money. How, how, how, how does that work with your business model? If you're paying them money, you know, do, do you have a viable business? And it's like, well, okay. I, we could build a database as well in observe, but then I've got half the development team working on in that will never be as good as snowflake. And so we made the call early on that. No, no, we, we wanna innovate above the database. Yeah. Right. Snowflake are doing a great job of innovating on the database and, and the same is true of something like Amazon, like, like snowflake could have built their own cloud and their own platform, but they didn't. >>Yeah. And what's interesting is that Dave <inaudible> and I have been pointing this out and he's actually more on snowflake. I I've been looking at data bricks, um, and the same dynamics happening, the proof is the ecosystem. Yeah. I mean, if you look at Snowflake's ecosystem right now and data bricks it's exploding. Right. I mean, the shows are selling out the floor. Space's book. That's the old days at VMware. Yeah. The old days at AWS >>One and for snowflake and, and any platform provider, it's a beautiful thing. You know, we build on snowflake and we pay them money. They don't have to sell to us. Right. And we do a lot of the support. And so the, the economics work out really, really well. If you're a platform provider and you've got a lot of ecosystems. >>Yeah. And then also you get, you get a, um, a trajectory of, uh, economies of scale with the institutional knowledge of snowflake integrations, right. New products. You're scaling that function with the, >>Yeah. I mean, we manage 10 petabytes of data right now. Right. When I, when I, when I arrived at EMC in 2010, we had, we had one petabyte customer. And, and so at observe, we've been only selling the product for a year. We have 10 petabytes of data under management. And so been able to rely on a platform that can manage that is invaluable, >>You know, but Jeremy Greek conversation, thanks for sharing your insights on the industry. Uh, we got a couple minutes left. Um, put a plug in for observe. What do you guys, I know you got some good funding, great partners. I don't know if you can talk about your, your, your POC customers, but you got a lot of high ends folks that are working with you. You getting traction. Yeah. >>Yeah. >>Scales around the corner. Sounds like, are you, is that where you are scale? >>Got, we've got a big announcement coming up in two or weeks. We've got, we've got new funding, um, which is always great. Um, the product is, uh, really, really close. I think, as a startup, you always strive for market fit, you know, which is at which point can you just start hiring salespeople? And the revenue keeps going. We're getting pretty close to that right now. Um, we've got about 40 SaaS companies run on the platform. They're almost all AWS Kubernetes, uh, which is our sweet spot to begin with, but we're starting to get some really interesting, um, enterprise type customers. We're, we're, you know, F five networks we're POC in right now with capital one, we got some interest in news around capital one coming up. I, I can't share too much, uh, but it's gonna be exciting. And, and like I saids hill continued to, to, to stick, >>I think capital one's a big snowflake customer as well. Right. They, >>They were early in one of the things that attracted me to capital one was they were very, very good with snowflake early on. And, and they put snowflake in a position in the bank where they thought that snowflake could be successful. Yeah. And, and today that, that is one of Snowflake's biggest accounts. >>So capital one, very innovative cloud, obviously AIOS customer and very innovative, certainly in the CISO and CIO, um, on another point on where you're at. So you're, Prescale meaning you're about to scale, right? So you got POCs, what's that trick GE look like, can you see around the corner? What's, what's going on? What's on, around the corner. That you're, that you're gonna hit the straight and narrow and, and gas it >>Fast. Yeah. I mean, the, the, the, the key thing for us is we gotta get the product. Right. Um, the nice thing about having a guy like Mike Pfizer on the board is he doesn't obsess about revenue at this stage is questions that the board are always about, like, is the product, right? Is the product right? Is the product right? If you got the product right. And cuz we know when the product's right, we can then scale the sales team and, and the revenue will take care of itself. Yeah. So right now all the attention is on the product. Um, the, this year, the exciting thing is we were, we're adding all the tracing visualizations. So people will be able to the kind of things that back in the day you could do with the new lakes and, and AppDynamics, the last generation of, of APM tools, you're gonna be able to do that within observe. And we've already got the logs and the metrics capability in there. So for us, this year's a big one, cuz we sort of complete the trifecta, you know, the, the logs, >>What's the secret sauce observe. What if you had the, put it into a, a sentence what's the secret sauce? I, >>I, I think, you know, an amazing founding engineering team, uh, number one, I mean, at the end of the day, you have to build an amazing product and you have to solve a problem in a different way. And we've got great long term investors. And, and the biggest thing our investors give is actually it's not just money. It gives us time to get the product, right. Because if we get the product right, then we can get the growth. >>Got it. Final question. Why I got you here? You've been on the enterprise business for a long time. What's the buyer landscape out there. You got people doing POCs on capital one scale. So we know that goes on. What's the appetite at the buyer side for startups and what are their requirements that you're seeing? Uh, obviously we're seeing people go in and dip into the startup pool because new ways to refactor their business restructure. So a lot happening in cloud. What's the criteria. How are enterprises engaging in with startups? >>Yeah. I mean, enterprises, they know they've gotta spend money transforming the business. I mean, this was, I almost feel like my old Dell or EMC self there, but, um, what, what we were saying five years ago is happening. Um, everybody needs to figure out out a way to take their, this to this digital world. Everybody has to do it. So the nice thing from a startup standpoint is they know at times they need to risk or, or take a bet on new technology in order to, to help them do that. So I think you've got buyers that a have money, uh, B prepared to take risks and it's, it's a race against time to, you know, get their, their offerings in this. So a new digital footprint, >>Final, final question. What's the state of AWS. Where do you see them going next? Obviously they're continuing to be successful. How does cloud 3.0, or they always say it's day one, but it's more like day 10. Uh, but what's next for Aw. Where do they go from here? Obviously they're doing well. They're getting bigger and bigger. >>Yeah. They're, they're, it's an amazing story. I mean, you know, we we're, we're on AWS as well. And so I, I think if they keep nurturing the builders in the ecosystem, then that is their superpower. They, they have an early leads. And if you look at where, you know, maybe the likes of Microsoft lost the plot in the, in the late it was, they stopped, uh, really caring about developers and the folks who were building on top of their ecosystem. In fact, they started buying up their ecosystem and competing with people in their ecosystem. And I see with AWS, they, they have an amazing head start and if they did more, you know, if they do more than that, that's, what's gonna keep the jut rolling for many years to come. Yeah, >>They got the silicone and they got the staff act, developing Jeremy Burton inside the cube, great resource for commentary, but also founding with the CEO of a company called observing in the middle of all the action on the board of snowflake as well. Um, great start. Thanks for coming on the cube. >>Always a pleasure. >>Okay. Live from San Francisco to cube. I'm John for your host. Stay with us more coverage from San Francisco, California after the short break. >>Hello. Welcome back to the cubes coverage here live in San Francisco, California. I'm John furrier, host of the cubes cube coverage of AWS summit 2022 here in San Francisco. We're all the developers of the bay area at Silicon valley. And of course, AWS summit in New York city is coming up in the summer. We'll be there as well. SF and NYC cube coverage. Look for us. Of course, reinforcing Boston and re Mars with the whole robotics AI thing, all coming together. Lots of coverage stay with us today. We've got a great guest from Deibel VC. John Skoda, founding partner, entrepreneurial venture is a venture firm. Your next act, welcome to the cube. Good to see you. >>Good to see you, Matt. I feel like it's been forever since we've been able to do something in person. Well, >>I'm glad you're here because we run into each other all the time. We've known each other for over a decade. Um, >><affirmative>, it's been at least 10 years now, >>At least 10 years more. And we don't wanna actually go back as frees back, uh, the old school web 1.0 days. But anyway, we're in web three now. So we'll get to that in >>Second. We, we are, it's a little bit of a throwback to the path though, in my opinion, >><laugh>, it's all the same. It's all distributed computing and software. We ran each other in cube con you're investing in a lot of tech startup founders. Okay. This next level, next gen entrepreneurs have a new makeup and it's software. It's hardcore tech in some cases, not hardcore tech, but using software is take old something old and make it better, new, faster. <laugh>. So tell us about Deibel what's the firm. I know you're the founder, uh, which is cool. What's going on. Explain >>What you're doing. I mean, you remember I'm a recovering entrepreneur, right? So of course I, I, I, >>No, you're never recovering. You're always entrepreneur >>Always, but we are also always recovering. So I, um, started my first company when I was 24. If you remember, before there was Facebook and friends, there was instant messaging. People were using that product at work every day, they were creating a security vulnerability between their network and the outside world. So I plugged that hole and built an instant messaging firewall. It was my first company. The company was called, I am logic and we were required by Symantec. Uh, then spent 12 years investing in the next generation of our companies, uh, early investor in open source companies and cloud companies and spent a really wonderful 12 years, uh, at a firm called NEA. So I, I feel like my whole life I've been either starting enterprise software companies or helping founders start enterprise software companies. And I'll tell you, there's never been a better time than right now to start enter price software company. >>So, uh, the passion for starting a new firm was really a recognition that founders today that are starting in an enterprise software company, they, they tend to be, as you said, a more technical founder, right? Usually it's a software engineer or a builder mm-hmm <affirmative>, uh, they are building products that are serving a slightly different market than what we've traditionally seen in enterprise software. Right? I think traditionally we've seen it buyers or CIOs that have agendas and strategies, which, you know, purchased software that has traditionally bought and sold tops down. But, you know, today I think the most successful enterprise software companies are the ones that are built more bottoms up and have more technical early opts. And generally speaking, they're free to use. They're free to try. They're very commonly community source or open source companies where you have a large technical community that's supporting them. So there's a, there's kind of a new normal now I think in great enterprise software. And it starts with great technical founders with great products and great and emotions. And I think there's no better place to, uh, service those people than in the cloud and uh, in, in your community. >>Well, first of all, congratulations, and by the way, you got a great pedigree and great background, super smart admire of your work and your, and, and your founding, but let's face it. Enterprise is hot because digital transformation is all companies. The is no, I mean, consumer is enterprise. Now everything is what was once a niche. No, I won't say niche category, but you know, not for the faint of heart, you know, investors, >>You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. But remember, like right now, there's also a giant tech in VC conference in Miami <laugh> it's covering cryptocurrencies and FCS and web three. So I think beauty is definitely in the eye of the beholder <laugh> but no, I, I will tell you, >>Ts is one big enterprise, cuz you gotta have imutability you got performance issues. You have, I IOPS issues. Well, and, >>And I think all of us here that are, uh, maybe students of history and have been involved in, open in the cloud would say that we're, you know, much of what we're doing is, uh, the predecessors of the web web three movement. And many of us I think are contributors to the web three movement. >>The hype is definitely that three. >>Yeah. But, but >>You know, for >>Sure. Yeah, no, but now you're taking us further east to Miami. So, uh, you know, look, I think, I, I think, um, what is unquestioned with the case now? And maybe it's, it's more obvious the more time you spend in this world is this is the fastest growing part of enterprise software. And if you include cloud infrastructure and cloud infrastructure spend, you know, it is by many men over, uh, 500 billion in growing, you know, 20 to 30% a year. So it it's a, it's a just incredibly fast, >>Let's getting, let's get into some of the cultural and the, the shifts that are happening, cuz again, you, you have the luxury of being in enterprise when it was hard, it's getting easier and more cooler. I get it and more relevant, but it's also the hype of like the web three, for instance. But you know, uh, um, um, the CEO snowflake, okay. Has wrote a book and Dave Valenti and I were talking about it and uh, Frank Luman has says, there's no playbooks. We always ask the CEOs, what's your playbook. And he's like, there's no playbook, situational awareness, always Trump's playbooks. So in the enterprise playbook, oh, higher direct sales force and SAS kind of crushed the, at now SAS is being redefined, right. So what is SAS? Is snowflake a SAS or is that a platform? So again, new unit economics are emerging, whole new situation, you got web three. So to me there's a cultural shift, the young entrepreneurs, the, uh, user experience, they look at Facebook and say, ah, you know, they own all my data. You know, we know that that cliche, um, they, you know, the product. So as this next gen, the gen Z and the millennials come in and our customers and the founders, they're looking at things a little bit differently and the tech better. >>Yeah. I mean, I mean, I think we can, we can see a lot of commonalities across all successful startups and the overall adoption of technology. Uh, and, and I would tell you, this is all one big giant revolution. I call it the user driven revolution. Right. It's the rise of the user. Yeah. And you might say product like growth is currently the hottest trend in enterprise software. It's actually user like growth, right. They're one in the same. So sometimes people think the product, uh, is what is driving. You >>Just pull the >>Product through. Exactly, exactly. And so that's that I, that I think is really this revolution that you see, and, and it does extend into things like cryptocurrencies and web three and, you know, sort of like the control that is taken back by the user. Um, but you know, many would say that, that the origins of this movement maybe started with open source where users were, are contributors, you know, contributors, we're users and looking back decades and seeing how it, how it fast forward to today. I think that's really the trend that we're all writing and it's enabling these end users. And these end users in our world are developers, data engineers, cybersecurity practitioners, right. They're really the users. And they're really the, the beneficiaries and the most, you know, kind of valued people in >>This. I wanna come back to the data engineers in a second, but I wanna make a comment and get your reaction to, I have a, I'm a GenXer technically, so for not a boomer, but I have some boomer friends who are a little bit older than me who have, you know, experienced the sixties. And I've, I've been staying on the cube for probably about eight years now that we are gonna hit a digital hippie revolution, meaning a rebellion against in the sixties was rebellion against the fifties and the man and, you know, summer of love. That was a cultural differentiation from the other one other group, the predecessors. So we're kind of having that digital moment now where it's like, Hey boomers, Hey people, we're not gonna do that anymore. We hate how you organize shit. >>Right. But isn't this just technology. I mean, isn't it, isn't it like there used to be the old adage, like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would get fired if you bought IBM. And I mean, it's just like the, the, I think, I think >>It's the main for days, those renegades were breaking into Stanford, starting the home brew club. So what I'm trying to get at is that, do you see the young cultural revolution also, culturally, just, this is my identity NFTs to me speak volumes about my, I wanna associate with NFTs, not single sign on. Well, >>Absolutely. And, and I think like, I think you're hitting on something, which is like this convergence of, of, you know, societal trends with technology trends and how that manifests in our world is yes. I think like there is unquestionably almost a religion around the way in which a product is built. Right. And we can use open source, one example of that religion. Some people will say, look, I'll just never try a product in the cloud if it's not open source. Yeah. I think cloud, native's another example of that, right? It's either it's, you know, it either is cloud native or it's not. And I think a lot of people will look at a product and say, look, you know, you were not designed in the cloud era. Therefore I just won't try you. And sometimes, um, like it or not, it's a religious decision, right? It's, it's something that people just believe to be true almost without, uh, necessarily. I mean >>The decision making, let me ask you this next question. As a VC. Now you look at pitch, well, you've made a VC for many years, but you also have the founder, uh, entrepreneurial mindset, but you can get empathize with the founders. You know, hustle is a big part of the, that first founder check, right? You gotta convince someone to part with their ch their money and the first money in which you do a lot of is about believing in the person. So fing, so you make, it is hard. Now you, the data's there, you either have it cloud native, you either have the adaption or traction. So honesty is a big part of that pitch. You can't fake it. Oh, >>AB absolutely. You know, there used to be this concept of like the persona of an entrepreneur, right. And the persona of the entrepreneur would be, you know, somebody who was a great salesperson or somebody who tell a great story. You, I still think that that's important, right? It still is a human need for people to believe in narratives and stories. But having said that you're right, the proof is in the pudding, right? At some point you click download and you try the product and it does what it says it it's gonna do, or it doesn't, or it either stands up to the load test or it doesn't. And so I, I feel like in this new economy that we live in, it's a shift from maybe the storytellers and the creators to, to the builders, right. The people that know how to build great product. And in some ways the people that can build great product yeah. Stand out from the crowd. And they're the ones that can build communities around their products. And, you know, in some ways can, um, you know, kind of own more of the narrative because their products exactly >>The volume back to the user led growth. >>Exactly. And it's the religion of, I just love your product. Right. And I, I, I, um, Doug song was the founder of du security used to say, Hey, like, you know, the, the really like in today's world of like consumption based software, the user is only gonna give you 90 seconds to figure out whether or not you're a company that's easy to do business with. Right. And so you can say, and do all the things that you want about how easy you are to work with. But if the product isn't easy to install, if it's not easy to try, if it's not, if, if the, you know, it's gotta speak to >>The, speak to the user, but let me ask a question now that the people watching who are maybe entrepreneurial entrepreneur, um, masterclass here is in session. So I have to ask you, do you prefer, um, an entrepreneur to come in and say, look at John. Here's where I'm at. Okay. First of all, storytelling's fine. Whether you're an extrovert or introvert, have your style, sell the story in a way that's authentic, but do you, what do you prefer to say? Here's where I'm at? Look, I have an idea. Here's my traction. I think here's my MVP prototype. I need help. Or do you wanna just see more stats? What's the, what's the preferred way that you like to see entrepreneurs come in and engage, engage? >>There's tons of different styles, man. I think the single most important thing that every founder should know is that we, we don't invest in what things are today. We invest in what we think something will become. Right. And I think that's why we all get up in the morning and try to build something different, right? It's that we see the world a different way. We want it to be a different way, and we wanna work every single moment of the day to try to make that vision a reality. So I think the more that you can show people where you want to be, the more likely somebody is gonna align with your vision and, and want to invest in you and wanna be along for the ride. So I, I wholeheartedly believe in showing off what you got today, because eventually we all get down to like, where are we and what are we gonna do together? But, um, no, I >>Show >>The path. I think the single most important thing for any founder and VC relationship is that they have the same vision, uh, have the same vision. You can, you can get through bumps in the road, you can get through short term spills. You can all sorts of things in the middle of the journey can happen. Yeah. But it doesn't matter as much if you share the same long term vision, >>Don't flake out and, and be fashionable with the latest trends because it's over before you can get there. >>Exactly. I think many people that, that do what we do for a living will say, you know, ultimately the future is relatively easy to predict, but it's the timing that's impossible to predict. So you, you know, you sort of have to balance the, you know, we, we know that the world is going this way and therefore we're gonna invest a lot of money to try to make this a reality. Uh, but sometimes it happens in six months. Sometimes it takes six years is sometimes like 16 years. >>Uh, what's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at right now with Desel partners, Tebel dot your site. What's the big wave. What's your big >>Wave. There, there's three big trends that we invest in. And they're the, they're the only things we do day in, day out. One is the explosion and open source software. So I think many people think that all software is unquestionably moving to an open source model in some form or another yeah. Tons of reasons to debate whether or not that is gonna happen and on what timeline happening >>Forever. >>But it is, it is accelerating faster than we've ever seen. So I, I think it's, it's one big, massive wave that we continue to ride. Um, second is the rise of data engineering. Uh, I think data engineering is in and of itself now, a category of software. It's not just that we store data. It's now we move data and we develop applications on data. And, uh, I think data is in and of itself as big of a, a market as any of the other markets that we invest in. Uh, and finally, it's the gift that keeps on giving. I've spent my entire career in it. We still feel that security is a market that is under invested. It is, it continues to be the place where people need to continue to invest and spend more money. Yeah. Uh, and those are the three major trends that we run >>And security, you think we all need a dessert do over, right? I mean, do we need a do over in security or is what's the core problem? I, >>I, I keep using this word underinvested because I think it's the right way to think about the problem. I think if you, I think people generally speaking, look at cyber security as an add-on. Yeah. But if you think about it, the whole economy is moving online. And so in, in some ways like security is core to protecting the digital economy. And so it's, it shouldn't be an afterthought, right? It should be core to what everyone is doing. And that's why I think relative to the trillions of dollars that are at stake, uh, I believe the market size for cybersecurity is around 150 billion. And it still is a fraction of what we're, what >>We're and security even boom is booming now. So you get the convergence of national security, geopolitics, internet digital >>That's right. You mean arguably, right? I mean, arguably again, it's the area of the world that people should be spending more time and more money given what to stake. >>I love your thesis. I gotta, I gotta say, you gotta love your firm. Love. You're doing we're big supporters of your mission. Congratulations on your entrepreneurial venture. And, uh, we'll be, we'll be talking and maybe see a Cub gone. Uh, >>Absolutely. >>Certainly EU maybe even north America's in Detroit this year. >>Huge fan of what you guys are doing here. Thank you so much for having me on >>The show. Guess bell VC Johnson here on the cube. Check him out. Founder for founders here on the cube, more coverage from San Francisco, California. After the short break, stay with us. Everyone. Welcome to the queue here. Live in San Francisco, California for AWS summit, 2022 we're live we're back with the events. Also we're virtual. We got hybrid all kinds of events. This year, of course, 80% summit in New York city is happening this summer. We'll be there with the cube as well. I'm John. Again, John host of the cube got a great guest here. Justin Coby owner and CEO of innovative solutions. Their booth is right behind us. Justin, welcome to the cube. >>Thank you. Thank you for having me. >>So we're just chatting, uh, uh, off camera about some of the work you're doing. You're the owner of and CEO. Yeah. Of innovative. Yeah. So tell us a story. What do you guys do? What's the elevator pitch. >>Yeah. <laugh> so the elevator pitch is we are, uh, a hundred percent focused on small to midsize businesses that are moving into the cloud or have already moved to the cloud and really trying to understand how to best control, cost, security, compliance, all the good stuff, uh, that comes along with it. Um, exclusively focused on AWS and, um, you know, about 110 people, uh, based in Rochester, New York, that's where our headquarters is, but now we have offices down in Austin, Texas up in Toronto, uh, key Canada, as well as Chicago. Um, and obviously in New York, uh, you know, the, the business was never like this, uh, five years ago, um, founded in 1989, made the decision in 2018 to pivot and go all in on the cloud. And, uh, I've been a part of the company for about 18 years, bought the company about five years ago and it's been a great ride. It >>It's interesting. The manages services are interesting with cloud cause a lot of the heavy liftings done by AWS. So we had Matt on your team on earlier talking about some of the edge stuff. Yeah. But you guys are a managed cloud service. You got cloud advisory, you know, the classic service that's needed, but the demands coming from cloud migrations and application modernization and obviously data is a huge part of it. Huge. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on the SMB side for edge. Yeah. For AWS, you got results coming in. Where's the, where's the forcing function. What's the pressure point. What's the demand like? >>Yeah. It's a great question. Every CEO I talk to, that's a small to midsize business. They're trying to understand how to leverage technology. It better to help either drive a revenue target for their own business, uh, help with customer service as so much has gone remote now. And we're all having problems or troubles or issues trying to hire talent. And um, you know, tech ISNT really at the, at the forefront and the center of that. So most customers are coming to us and they're like, listen, we gotta move to the cloud or we move some things to cloud and we want to do that better. And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. Yeah. And what we try to help as many customers understand as possible is lifting and shifting, moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. And then, uh, progressively working through a modernization strateg, always the better approach. And so we spend a lot of time with small to midsize businesses who don't have the technology talent on staff to be able to do >>That. Yeah. They want get set up. But then the dynamic of like latency is huge. We're seeing that edge product is a big part of it. This is not a one-off happening around everywhere. It is. And it's not, it's manufacturing, it's the physical plant or location >>Literally. >>And so, and you're seeing more IOT devices. What's that like right now from a challenge and problem statement standpoint, are the customers, not staff, is the it staff kind of old school? Is it new skills? What's the core problem you guys solve >>In the SMB space? The core issue nine outta 10 times is people get enamored with the latest and greatest. And the reality is not everything that's cloud based. Not all cloud services are the latest and greatest. Some things have been around for quite some time and are hardened solutions. And so, um, what we try to do with technology staff that has traditional on-prem, uh, let's just say skill sets and they're trying to move to a cloud-based workload is we try to help those customers through education and through some practical, let's just call it use case. Um, whether that's a proof of concept that we're doing or whether we're gonna migrate a small workload over, we try to give them the confidence to be able to not, not necessarily go it alone, but to, to, to have the, uh, the Gusto and to really have the, um, the, the opportunity to, to do that in a wise way. Um, and what I find is that most CEOs that I talk to, yeah, they're like, listen, the end of the day, I'm gonna be spending money in one place or another, whether that's OnPrem or in the cloud. I just want to know that I'm doing that in a way that helps me grow as quickly as possible status quo. I think every, every business owner knows that COVID taught us anything that status quo is, uh, is, is no. No. >>Good. How about factoring in the, the agility and speed equation? Does that come up a lot? It >>Does. I think, um, I, there's also this idea that if, uh, if we do a deep dive analysis and we really take a surgical approach to things, um, we're gonna be better off. And the reality is the faster you move with anything cloud based, the better you are. And so there's this assumption that we gotta get it right the first time. Yeah. In the cloud, if you start down your journey in one way and you realize midway that it's not the right, let's just say the right place to go. It's not like buying a piece of iron that you put in the closet and now you own it in the cloud. You can turn those services on and off. It's gives you a much higher density for making decisions and failing >>Forward. Well actually shutting down the abandoning the projects that early and not worrying about it, you got it. I mean, most people don't abandon cause like, oh, I own it. >>Exactly. And >>They get, they get used to it. Like, and then they wait too long. >>That's exactly. Yeah. >>Frog and boiling water as we used to say. So, oh, it's a great analogy. So I mean, this is a dynamic that's interesting. I wanna get more thoughts on it because like I'm a, if I'm a CEO of a company, like, okay, I gotta make my number. Yeah. I gotta keep my people motivated. Yeah. And I gotta move faster. So this is where you, I get the whole thing. And by the way, great service, um, professional services in the cloud right now are so hot because so hot, you can build it and then have option optionality. You got path decisions, you got new services to take advantage of. It's almost too much for customers. It is. I mean, everyone I talked to at reinvent, that's a customer. Well, how many announcements did am jazzy announce or Adam, you know, the 5,000 announcement or whatever. They do huge amounts. Right. Keeping track of it all. Oh, is huge. So what's the, what's the, um, the mission of, of your company. How does, how do you talk to that alignment? Yeah. Not just processes. I can get that like values as companies, cuz they're betting on you and your people. >>They are, they are, >>What's the values. >>Our mission is, is very simple. We want to help every small to midsize business leverage the power of the cloud. Here's the reality. We believe wholeheartedly. This is our vision that every company is going to become a technology company. So we go to market with this idea that every customer's trying to leverage the power of the cloud in some way, shape or form, whether they know it or don't know it. And number two, they're gonna become a tech company in the process of that because everything is so tech-centric. And so when you talk about speed and agility, when you talk about the, the endless options and the endless permutations of solutions that a customer can buy in the cloud, how are you gonna ask a team of one or two people in your, or it department to make all those decisions going it alone or trying to learn it as you go, it only gets you so far working with a partner. >>I'll just give you some perspective. We work with about a thousand small to midsize business customers. More than 50% of those customers are on our managed services. Meaning they know that we have their back Andre or the safety net. So when a customer is saying, all right, I'm gonna spend a couple thousand dollars a month in the cloud. They know that that bill, isn't gonna jump to $10,000 a month going in alone. Who's there to help protect that. Number two, if you have a security posture and let's just say you're high profile and you're gonna potentially be more vulnerable to security attack. If you have a partner, that's all offering you some managed services. Now you, again, you've got that backstop and you've got those services and tooling. We, we offer, um, seven different products, uh, that are part of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go out today and go buy a new Relic solution on their own. It, it would cost 'em a fortune. If >>Training alone would be insane, a factor and the cost. Yes, absolutely. Opportunity cost is huge, >>Huge, absolutely enormous training and development. Something. I think that is often, you know, it's often overlooked technologists. Typically they want to get their skills up. Yeah. They, they love to get the, the stickers and the badges and the pins, um, at innovative in 2018, when, uh, when we made the decision to go all in on the club, I said to the organization, you know, we have this idea that we're gonna pivot and be aligned with AWS in such a way that it's gonna really require us all to get certified. My executive assistant at the time looks at me. She said, even me, I said, yeah, even you, why can't you get certified? Yeah. And so we made, uh, a conscious decision. It wasn't requirement and still isn't today to make sure everybody in the company has the opportunity to become certified. Even the people that are answering the phones at the front desk >>And she could be running the Kubernetes clusters. I love it. It's amazing. >>But I'll tell you what, when that customer calls and they have a real Kubernetes issue, she'll be able to assist and get >>The right people involved. And that's a cultural factor that you guys have. So, so again, this is back to my whole point about SMBs and businesses in general, small en large, it staffs are turning over the gen Z and millennials are in the workforce. They were provisioning top of rack switches. Right. First of all. And so if you're a business, there's also the, I call the build out, um, uh, return factor, ROI piece. At what point in time as an owner or SMB, do I get the ROI? Yeah. I gotta hire a person to manage it. That person's gonna have five zillion job offers. Yep. Uh, maybe who knows? Right. I got cybersecurity issues. Where am I gonna find a cyber person? Yeah. A data compliance. I need a data scientist and a compliance person. Right. Maybe one and the same. Right. Good luck. Trying to find a data scientist. Who's also a compliance person. Yep. And the list goes on. I can just continue. Absolutely. I need an SRE to manage the, the, uh, the sock report and we can pen test. Right. >>Right. >>These are, these are >>Critical issues. This >>Is just like, these are the table stakes. >>Yeah. And, and every, every business owner's thinking about. So that's, >>That's what, at least a million in bloating, if not three or more Just to get that going. Yeah. Then it's like, where's the app. Yeah. So there's no cloud migration. There's no modernization on the app side though. Yeah. No. And nevermind AI and ML. That's >>Right. That's right. So to try to go it alone, to me, it's hard. It it's incredibly difficult. And, and the other thing is, is there's not a lot of partners, so the partner, >>No one's raising their hand boss. I'll >>Do all that >>Exactly. In it department. >>Exactly. >>Like, can we just call up, uh, you know, <laugh> our old vendor. That's >>Right. <laugh> right. Our old vendor. I like it, but that's so true. I mean, when I think about how, if I was a business owner, starting a business to today and I had to build my team, um, and the amount of investment that it would take to get those people skilled up and then the risk factor of those people now having the skills and being so much more in demand and being recruited away, that's a real, that's a real issue. And so how you build your culture around that is, is very important. And it's something that we talk about every, with every one of our small to midsize business. >>So just, I want to get, I want to get your story as CEO. Okay. Take us through your journey. You said you bought the company and your progression to, to being the owner and CEO of innovative award winning guys doing great. Uh, great bet on a good call. Yeah. Things are good. Tell your story. What's your journey? >>It's real simple. I was, uh, was a sophomore at the Rochester Institute of technology in 2003. And, uh, I knew that I, I was going to school for it and I, I knew I wanted to be in tech. I didn't know what I wanted to do, but I knew I didn't wanna code or configure routers and switches. So I had this great opportunity with the local it company that was doing managed services. We didn't call it at that time innovative solutions to come in and, uh, jump on the phone and dial for dollars. I was gonna cold call and introduce other, uh, small to midsize businesses locally in Rochester, New York go to Western New York, um, who innovative was now. We were 19 people at the time. And I came in, I did an internship for six months and I loved it. I learned more in those six months that I probably did in my first couple of years at, uh, at R I T long story short. >>Um, for about seven years, I worked, uh, to really help develop, uh, sales process and methodology for the business so that we could grow and scale. And we grew to about 30 people. And, um, I went to the owners at the time in 2010 and I was like, Hey, I'm growing the value of this business. And who knows where you guys are gonna be another five years? What do you think about making me an owner? And they were like, listen, you got long ways before you're gonna be an owner, but if you stick it out in your patient, we'll, um, we'll work through a succession plan with you. And I said, okay, there were four other individuals at the time that we're gonna also buy the business with >>Me. And they were the owners, no outside capital, >>None zero, well, 2014 comes around. And, uh, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons. They all decided that it wasn't for them. One started a family. The other didn't wanna put capital in. Didn't wanna write a check. Um, the other had a real big problem with having to write a check. If we couldn't make payroll, I'm like, well, that's kind of like if we're owners, we're gonna have to like cover that stuff. <laugh> so >>It's called the pucker factor. >>Exactly. So, uh, I sat down with the CEO in early 2015, and, uh, we made the decision that I was gonna buy the three partners out, um, go through an earn out process, uh, coupled with, uh, an interesting financial strategy that wouldn't strap the business, cuz they care very much. The company still had the opportunity to keep going. So in 2016 I bought the business, um, became the sole owner. And, and at that point we, um, we really focused hard on what do we want this company to be? We had built this company to this point. Yeah. And, uh, and by 2018 we knew that pivoting all going all in on the cloud was important for us and we haven't looked back. >>And at that time, the proof points were coming clearer and clearer 2012 through 15 was the early adopters, the builders, the startups and early enterprises. Yes. The capital ones of the world. Exactly the, uh, and those kinds of big enterprises. The game don't, won't say gamblers, but ones that were very savvy. The innovators, the FinTech folks. Yep. The hardcore glass eating enterprises >>Agreed, agreed to find a small to midsize business, to migrate completely to the cloud as, as infrastructure was considered. That just didn't happen as often. Um, what we were seeing were a lot of our small to midsize business customers, they wanted to leverage cloud based backup, or they wanted to leverage a cloud for disaster recovery because it lent itself. Well, early days, our most common cloud customer though, was the customer that wanted to move messaging and collaboration. The, the Microsoft suite to the cloud and a lot of 'em dipped their toe in the water. But by 2017 we knew infrastructure was around the corner. Yeah. And so, uh, we only had two customers on eight at the time. Um, and we, uh, we, we made the decision to go all in >>Justin. Great to have you on the cube. Thank you. Let's wrap up. Uh, tell me the hottest product that you have. Is it migrations? Is the app modernization? Is it data? What's the hot product and then put a plug in for the company. Awesome. >>So, uh, there's no question. Every customer is looking to migrate workloads and try to figure out how to modernize for the future. We have very interesting, sophisticated yet elegant funding solutions to help customers with the cash flow, uh, constraints that come along with those migrations. So any SMB that's thinking about migrating to the cloud, they should be talking innovative solutions. We know how to do it in a way that allows those customers not to be cash strapped and gives them an opportunity to move forward in a controlled, contained way so that they can modernize. >>So like insurance, basically for them not insurance class in the classic sense, but you help them out on the, on the cash exposure. >>Absolutely. We are known for that and we're known for being creative with those customers, empathetic to where they are in their journey. And >>That's the cloud upside is all about doubling down on the variable wind. That's right. Seeing the value and doubling down on it. Absolutely not praying for it. Yeah. <laugh> all right, Justin. Thanks for coming on. You really appreciate it. Thank >>You very much for having >>Me. Okay. This is the cube coverage here live in San Francisco, California for AWS summit, 2022. I'm John for your host. Thanks for watching with back with more great coverage for two days after this short break >>Live on the floor in San Francisco for 80 west summit, I'm John ferry, host of the cube here for the next two days, getting all the action we're back in person. We're at AWS reinvent a few months ago. Now we're back events are coming back and we're happy to be here with the cube, bringing all the action. Also virtual, we have a hybrid cube, check out the cube.net, Silicon angle.com for all the coverage. After the event. We've got a great guest ticketing off here. Matthew Park, director of solutions, architecture with innovation solutions. The booth is right here. Matthew, welcome to the cube. >>Thank you very much. I'm glad >>To be here. So we're back in person. You're from Tennessee. We were chatting before you came on camera. Um, it's great to have to be back through events. >>It's amazing. This is the first, uh, summit I've been to and what two, three years. >>It's awesome. We'll be at the, uh, New York as well. A lot of developers and a big story this year is as developers look at cloud going distributed computing, you got on premises, you got public cloud, you got the edge. Essentially the cloud operations is running everything dev sec ops, everyone kind of sees that you got containers, you got Kubernetes, you got cloud native. So the, the game is pretty much laid out. Mm. And the edge is with the actions you guys are number one, premier partner at SMB for edge. >>That's right. >>Tell us about what you guys doing at innovative and, uh, what you do. >>That's right. Uh, so I'm the director of solutions architecture. Uh, me and my team are responsible for building out the solutions that are around, especially the edge public cloud out for us edge is anything outside of an AWS availability zone. Uh, we are deploying that in countries that don't have AWS infrastructure in region. They don't have it. Uh, give >>An example, >>Uh, example would be Panama. We have a customer there that, uh, needs to deploy some financial tech data and compute is legally required to be in Panama, but they love AWS and they want to deploy AWS services in region. Uh, so they've taken E EKS anywhere. We've put storage gateway and, uh, snowball, uh, in region inside the country and they're running their FinTech on top of AWS services inside Panama. >>You know, what's interesting, Matthew is that we've been covering Aw since 2013 with the cube about their events. And we watched the progression and jazzy was, uh, was in charge and then became the CEO. Now Adam Slosky is in charge, but the edge has always been that thing they've been trying to, I don't wanna say, trying to avoid, of course, Amazon would listen to customers. They work backwards from the customers. We all know that. Uh, but the real issue was they were they're bread and butters EC two and S three. And then now they got tons of services and the cloud is obviously successful and seeing that, but the edge brings up a whole nother level. >>It does >>Computing. It >>Does. >>That's not central lies in the public cloud. Now they got regions. So what is the issue with the edge what's driving? The behavior. Outpost came out as a reaction to competitive threats and also customer momentum around OT, uh, operational technologies. And it merging. We see with the data at the edge, you got five GM having. So it's pretty obvious, but there was a slow transition. What was the driver for the <affirmative> what's the driver now for edge action for AWS >>Data is the driver for the edge. Data has gravity, right? And it's pulling compute back to where the customer's generating that data and that's happening over and over again. You said it best outpost was a reaction to a competitive situation. Whereas today we have over fit 15 AWS edge services, and those are all reactions to things that customers need inside their data centers on location or in the field like with media companies. >>Outpost is interesting. We always used to riff on the cube, uh, cuz it's basically Amazon in a box, pushed in the data center, uh, running native, all the stuff, but now cloud native operations are kind of become standard. You're starting to see some standard Deepak sings group is doing some amazing work with open source Rauls team on the AI side, obviously, uh, you got SW who's giving the keynote tomorrow. You got the big AI machine learning big part of that edge. Now you can say, okay, outpost, is it relevant today? In other words, did outpost do its job? Cause EKS anywhere seems to be getting a lot of momentum. You see low the zones, the regions are kicking ass for Amazon. This edge piece is evolving. What's your take on EKS anywhere versus say outpost? >>Yeah, I think outpost did its job. It made customers that were looking at outpost really consider, do I wanna invest in this hardware? Do I, do I wanna have, um, this outpost in my data center, do I wanna manage this over the long term? A lot of those customers just transitioned to the public cloud. They went into AWS proper. Some of those customers stayed on prem because they did have use cases that were, uh, not a good fit for outpost. They weren't a good fit. Uh, in the customer's mind for the public AWS cloud inside an availability zone. Now what's happening is as AWS is pushing these services out and saying, we're gonna meet you where you are with 5g. We're gonna meet you where you are with wavelength. We're gonna meet you where you are with EKS anywhere. Uh, I think it has really reduced the amount of times that we have conversations about outposts and it's really increased. We can deploy fast. We don't have to spin up outpost hardware. We can go deploy EKS anywhere in your VMware environment and it's increasing the speed of adoption >>For sure. So you guys are making a lot of good business decisions around managed cloud service. Innovative does that. You have the cloud advisory, the classic professional services for the specific edge piece and, and doing that outside of the availability zones and regions for AWS, um, customers in, in these new areas that you're helping out are they want cloud, like they want to have modernization a modern applications. Obviously they got data machine learning and AI, all part of that. What's the main product or, or, or gap that you're filling for AWS, uh, outside of their available ability zones or their regions that you guys are delivering. What's the key is it. They don't have a footprint. Is it that it's not big enough for them? What's the real gap. What's why, why are you so successful? >>So what customers want when they look towards the cloud is they want to focus on, what's making them money as a business. They wanna focus on their applications. They want focus on their customers. So they look towards AWS cloud and say, AWS, you take the infrastructure. You take, uh, some of the higher layers and we'll focus on our revenue generating business, but there's a gap there between infrastructure and revenue generating business that innovative slides into, uh, we help manage the AWS environment. We help build out these things in local data centers for 32 plus year old company, we have traditional on-premises people that know about deploying hardware that know about deploying VMware to host EKS anywhere. But we also have most of our company totally focused on the AWS cloud. So we're filling that gap in helping deploy these AWS services, manage them over the long term. So our customers can go to just primarily and totally focusing on their revenue generating business. >>So basically you guys are basically building AWS edges, >>Correct? >>For correct companies, correct? Mainly because the, the needs are there, you got data, you got certain products, whether it's, you know, low latency type requirements, right. And then they still work with the regions, right. It's all tied together, right. Is that how it works? Right. >>And, and our customers, even the ones in the edge, they also want us to build out the AWS environment inside the availability zone, because we're always gonna have a failback scenario. If we're gonna deploy FinTech in the Caribbean, we're gonna talk about hurricanes and gonna talk about failing back into the AWS availability zones. So innovative is filling that gap across the board, whether it be inside the AWS cloud or on the AWS edge. >>All right. So I gotta ask you on the, since you're at the edge in these areas, I won't say underserved, but developing areas where now have data, you have applications that are tapping into that, that requirement. It makes total sense. We're seeing across the board. So it's not like it's, it's an outlier it's actually growing. Yeah. There's also the crypto angle. You got the blockchain. Are you seeing any traction at the edge with blockchain? Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech in, in the islands. There are a lot of, lot of, lot of web three happening. What's your, what's your view on the web three world right now, relative >>To we, we have some customers actually deploying crypto, especially, um, especially in the Caribbean. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers that are deploying crypto. A lot of, uh, countries are choosing crypto underly parts of their central banks. Yeah. Um, so it's, it's up and coming. Uh, I, I have some, you know, personal views that, that crypto is still searching for a use case. Yeah. And, uh, I think it's searching a lot and, and we're there to help customers search for that use case. Uh, but, but crypto, as a, as a tech technology, um, lives really well on the AWS edge. Yeah. Uh, and, and we're having more and more people talk to us about that. Yeah. And ask for assistance in the infrastructure because they're developing new cryptocurrencies every day. Yeah. It's not like they're deploying Ethereum or anything specific. They're actually developing new currencies and, and putting them out there on it's >>Interesting. And I mean, first of all, we've been doing crypto for many, many years. We have our own little, um, you know, projects going on. But if you look talk to all the crypto people that say, look, we do a smart contract, we use the blockchain. It's kind of over a lot of overhead. It's not really their technical already, but it's a cultural shift, but there's underserved use cases around use of money, but they're all using the blockchain, just for this like smart contracts for instance, or certain transactions. And they go into Amazon for the database. Yeah. <laugh> they all don't tell anyone we're using a centralized service, but what happened to decent centralized. >>Yeah. And that's, and that's the conversation performance. >>Yeah. >>And, and it's a cost issue. Yeah. And it's a development issue. Um, so I think more and more as, as some of these, uh, currencies maybe come up, some of the smart contracts get into, uh, they find their use cases. I think we'll start talking about how does that really live on, on AWS and, and what does it look like to build decentralized applications, but with AWS hardware and services. >>Right. So take me through a, a use case of a customer, um, Matthew around the edge. Okay. So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. I want to modernize my business. And I got my developers that are totally peaked up on cloud. Um, but we've identified that it's just a lot of overhead latency issues. I need to have a local edge and serve my a and I also want all the benefits of the cloud. So I want the modernization and I wanna migrate to the cloud for all those cloud benefits and the good this of the cloud. What's the answer. Yeah. >>Uh, big thing is, uh, industrial manufacturing, right? That's, that's one of the best use cases, uh, inside industrial manufacturing, we can pull in many of the AWS edge services we can bring in, uh, private 5g, uh, so that all the, uh, equipment inside that, that manufacturing plant can be hooked up. They don't have to pay huge overheads to deploy 5g it's, uh, better than wifi for the industrial space. Um, when we take computing down to that industrial area, uh, because we wanna do pre-procesing on the data. Yeah. We want to gather some analytics. We deploy that with, uh, regular commercially available hardware running VMware, and we deploy EKS anywhere on that. Uh, inside of that manufacturing plant, uh, we can do pre-processing on things coming out of the, uh, the robotics that depending on what we're manufacturing, right. Uh, and then we can take the, those refined analytics and for very low cost with maybe a little bit longer latency transmit those back, um, to the AWS availability zone, the, the standard >>For data lake or whatever, >>To the data lake. Yeah. Data Lakehouse, whatever it might be. Um, and we can do additional data science on that once it gets to the AWS cloud. Uh, but I'll lot of that, uh, just in time business decisions, just in time, manufacturing decisions can all take place on an AWS service or services inside that manufacturing plant. And that's, that's one of the best use cases that we're >>Seeing. And I think, I mean, we've been seeing this on the queue for many, many years, moving data around is very expensive. Yeah. But also compute going of the data that saves that cost yep. On the data transfer also on the benefits of the latency. So I have to ask you, by the way, that's standard best practice now for the folks watching don't move the data unless you have to. Um, but those new things are developing. So I wanna ask you, what new patterns are you seeing emerging once this new architecture's in place? Love that idea, localize everything right at the edge, manufacture, industrial, whatever the use case, retail, whatever it is. Right. But now what does that change in the, in the core cloud? There's a, there's a system element here. Yeah. What's the new pattern. There's >>Actually an organizational element as well, because once you have to start making the decision, do I put this compute at the point of use or do I put this compute in the cloud? Uh, now you start thinking about where business decisions should be taking place. Uh, so not only are you changing your architecture, you're actually changing your organization because you're thinking, you're thinking about a dichotomy you didn't have before. Uh, so now you say, okay, this can take place here. Uh, and maybe, maybe this decision can wait. Yeah. Uh, and then how do I visualize that? By >>The way, it could be a bot tube doing the work for management. Yeah. <laugh> exactly. You got observability going, right. But you gotta change the database architecture in the back. So there's new things developing. You've got more benefit. There >>Are, there are. And, and we have more and more people that, that want to talk less about databases and want to talk more about data lakes because of this. They want to talk more about out. Customers are starting to talk about throwing away data, uh, you know, for the past maybe decade. Yeah. It's been store everything. And one day we will have a data science team that we hire in our organization to do analytics on this decade of data. And well, >>I mean, that's, that's a great point. We don't have time to drill into, maybe we do another session on this, but the one pattern we're seeing of the past year is that throwing away data's bad, even data lakes that so-called turn into data swamps, actually, it's not the case. You look at data, brick, snowflake, and other successes out there. And even time series data, which may seem irrelevant efforts over actually matters when people start retraining their machine learning algorithms. Yep. So as data becomes code, as we call it in our last showcase, we did a whole whole event on this. The data's good in real time and in the lake. Yeah. Because the iteration of the data feeds the machine learning training. Things are getting better with the old data. So it's not throw it away. It's not just business better. Yeah. There's all kinds of new scale. >>There are. And, and we have, uh, many customers that are running pay Toby level. Um, they're, they're essentially data factories on, on, uh, on premises, right? They're, they're creating so much data and they're starting to say, okay, we could analyze this, uh, in the cloud, we could transition it. We could move Aytes of data to the AWS cloud, or we can run, uh, computational workloads on premises. We can really do some analytics on this data transition, uh, those high level and sort of raw analytics back to AWS run 'em through machine learning. Um, and we don't have to transition 10, 12 petabytes of data into AWS. >>So I gotta end the segment on a, on a kind of a, um, fun note. I was told to ask you about your personal background, OnPrem architect, Aus cloud, and skydiving instructor. <laugh> how does that all work together? What tell, what does this mean? Yeah. >>Uh, you >>Jumped out a plane and got a job. You got a customer to jump out >>Kind of. So I was, you jumped out. I was teaching having, uh, before I, before I started in the cloud space, this was 13, 14 years ago. I was a, I still am a sky. I instructor, uh, I was teaching skydiving and I heard out of the corner of my ear, uh, a guy that owned an MSP that was lamenting about, um, you know, storing data and, and how his customers are working. And he can't find an enough people to operate all these workloads. So I walked over and said, Hey, this is, this is what I went to school for. Like, I'd love to, you know, uh, I was living in a tent in the woods, teaching skydiving. I was like, I'd love to not live in a tent in the woods. So, uh, uh, I started and the first day there, uh, we had a, a discussion, uh, EC two had just come out <laugh> and, uh, like, >>This is amazing. >>Yeah. And so we had this discussion, we should start moving customers here. And, uh, and that totally revolutionized that business, um, that, that led to, uh, that that guy actually still owns a skydiving airport. But, um, but through all of that, and through being in on premises, migrated me and myself, my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, now let's take what we learned in the cloud and, and apply those lessons and those services tore >>It's. So it's such a great story, you know, was gonna, you know, you know, the whole, you know, growth mindset pack your own parachute, you know, uh, exactly. You know, the cloud in the early days was pretty much will the shoot open. Yeah. It was pretty much, you had to roll your own cloud at that time. And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. >>And so was Kubernetes by the way, 2015 or so when, uh, when that was coming out, it was, I mean, it was, it was still, and maybe it does still feel like that to some people. Right. But, uh, it was, it was the same kind of feeling that we had in the early days of AWS, the same feeling we have when we >>It's now with you guys, it's more like a tandem jump. Yeah. You know, but, but it's a lot of, lot of this cutting edge stuff, like jumping out of an airplane. Yeah. You got the right equipment. You gotta do the right things. Exactly. >>Right. >>Yeah. Thanks for coming. You really appreciate it. Absolutely great conversation. Thanks for having me. Okay. The cubes here live in San Francisco for eight of us summit. I'm John for host of the cube. Uh, we'll be at a summit in New York coming up in the summer as well. Look up for that. Look up this calendar for all the cube, actually@thecube.net. We'll right back with our next segment after this break. >>Okay. Welcome back everyone to San Francisco live coverage here, we're at the cube a be summit 2022. We're back in person. I'm John fury host of the cube. We'll be at the eighties summit in New York city this summer, check us out then. But right now, two days in San Francisco, getting all the coverage what's going on in the cloud, we got a cube alumni and friend of the cube, my dos car CEO, investor, a Sierra, and also an investor in a bunch of startups, angel investor. Gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see you. Cool. How are you? Good. >>How hello you. >>So congratulations on all your investments. Uh, you've made a lot of great successes, uh, over the past couple years, uh, and your company raising, uh, some good cash as Sarah. So give us the update. How much cash have you guys raised? What's the status of the company product what's going on? >>First of all, thank you for having me. We're back to be business with you, never after to see you. Uh, so is a company started around four years back. I invested with a few of the investors and now I'm the CEO there. We have raised close to a hundred million there. The investors are people like Norwes Menlo ventures, coastal ventures, Ram Shera, and all those people, all well known guys. And Beckel chime Paul me Mayard web. So whole bunch of operating people and, uh, Silicon valley VCs are involved >>And has it gone? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISRA is going after is what I call the applying AI for customer service. It operations, it help desk, uh, the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and service now to take you to the next stage? Well, >>I love having you on the cube, Dave and I, Dave LAN as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a, you're like a guest analyst. <laugh> >>You know, who does >>You, >>You >>Get the call fund to talk to you though. You >>Get the commentary, your, your finger in the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase it. Isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud scale. You predicted that we talked about in the cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing Docker just raised a hundred million on a $2 billion valuation back from the dead after they pivoted from enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control plan? Emerging AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded, observability there's 10 billion observability companies. Data is the key. This is what's your end on this. What's your take. >>Yeah, look, I think I'll give you the few that I see right from my side. Obviously data is very clear. So the things that rumor system of recorded you and me talked about the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud native, it'll be called AI. NA AI enable is a new buzzword and using the AI for customer service. It, you talk about observability. I call it, AIOps applying AOPs for good old it operation management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events insurance. So I see a lot of work clicking for AIOps and AI services. What used to be desk with ServiceNow BMC GLA you see a new ALA emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflows, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with AI workflows. So you, you see AI going >>Off is RPA. A company is AI, is RPA a feature of something bigger? Or can someone have a company on RPA UI S one will be at their event this summer? Um, is it a product company? I mean, or I mean, RPA is, should be embedded in everything. It's a >>Feature. It is very good point. Very, very good thinking. So one is, it's a category for sure. Like, as we thought, it's a category, it's an area where RPA may change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company also, but that automation should be embedded in every area. Yeah. Like we call cloud NATO and AI. They it'll become automation data. Yeah. And that's your, thinking's >>Interesting me. I think about the, what you're talking about what's coming to mind is I'm kinda having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it was middleware. It sat between two things and then the middle, and it was software abstraction. Now you have all kinds of workflows, abstractions everywhere. So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed. Are they integrated? I mean, these are the challenges. This is crazy. What's the, >>So remember the databases became called polyglot databases. Yeah. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area like you, you were talking about, it should be part of service. Now it should be part of ISRA. Like every company, every Salesforce. So that's why you see it MuleSoft and sales buying RPA companies. So you'll see all the SaaS companies, cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also have an automation as a layer embedded inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind, as you got the XPO hall got, um, we're back to vis, but you got, you know, AMD, Clum, Dynatrace data, dog, innovative, all the companies out here that we know, we interview them all. They're trying to be suppliers to this growing enterprise market. Right? Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Deibel later. He's a former NEA guy and we always talk to Jerry, Jen, we know all the, the VCs, what does the startups look like? What does the state of the, in your mind, cause you, I know you invest the entrepreneurial founder situation. Cloud's bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's code. Yes. Basically. Data's everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to, uh, two things that I'm seeing out there. Remember leaders of Amazon created the startups 15 years back. Everybody built on Amazon now, Azure and GCP. The next layer would be people don't just build on Amazon. They're going to build it on top of snow. Flake companies are snowflake becomes a data platform, right? People will build on snowflake, right? So I see my old boss playing ment, try to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer, right? So I think that's the next level of companies trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis a couple months ago called castles in the cloud where your moat is, what you do in the cloud. Not necessarily in the, in the IP. Um, Dave LAN and I had last re invent, coined the term super cloud, right? It's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldman S Sachs is doing. You're starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage. And guys like Charles Fitzgeral out there, who we like was kind of hitting on us saying, Hey, you guys terrible, they didn't get him. Like, yeah, I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. <laugh> cause he's cool. Um, but snowflake is on Amazon. Yes. Now they say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist and, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. >>It is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to build everything on Amazon where possible whatever is, I cannot build. I'll make the pass layer room. The middle layer pass will be snowflake. So I cannot build it on snowflake. I can use them for data layer if I really need to size, I'll build it on force.com Salesforce. Yeah. Right. So I think that's where you'll >>See. So basically the, the, if you're an entrepreneur, the, the north star in terms of the, the outcome is be a super cloud. It >>Is, >>That's the application on another big CapEx ride, the CapEx of AWS or cloud, >>And that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. Yeah. >>Yeah. How are, how is Amazon and the clouds dealing with these big whales, the snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think got Redshift. Amazon has got Redshift. Um, but snowflake big customer. The they're probably paying AWS big, >>I >>Think big bills too. >>So John, very good. Cause it's like how Netflix is and Amazon prime, right. Netflix runs on Amazon, but Amazon has Amazon prime that co-option will be there. So Amazon will have Redshift, but Amazon is also partnering with the snowflake to have native snowflake data warehouse as a data layer. So I think depending on the use case you have to use each of the above, I think snowflake is here for a long term. Yeah. Yeah. So if I'm building an application, I want to use snowflake then writing from stats. >>Well, I think that comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, you know, foreclose your value. That's right. With some sort of internal hack, but I've think, I think the general question that I have is that I think it's okay to have a super cloud like that because the rising tide is still happening at some point, when does the rising tide stop and the people shopping up their knives, it gets more competitive or is it just an infinite growth cycle? I >>Think it's growth. You call it closed skill you the word cloud scale. So I think look, cloud will continually agree, increase. I think there's as long as there more movement from on, uh, on-prem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations, it helpless. Even the customer service service. Now the ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So cloud ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go made. >>I wanna get your thoughts for the folks watching that are, uh, enterprise buyers are practitioners, not suppliers to the market. Feel free to text me or DMing. Next question is really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products. Cause you know, the big enterprises now and you know, small, medium, large, and large enterprise, they're all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between the startup selling to, or growing startup selling to an enterprise? Um, have you seen changes there? I mean seeing some stuff, but why don't we get your thoughts on that? What it >>Is you, if I remember going back to our 2007 or eight, when I used to talk to you back then when Amazon started very small, right? We are an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or one person today. Most companies are already spending 20, 30% with startups. Like if I look at a C I will line our business, it's gone. Yeah. Can it go more? I think it can double in the next four, five years. Yeah. Spending on the startups. Yeah. >>And check out, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want to get your reaction because I, I reference the URL causes like there's like a bunch of companies we've been promoting because the solution that startups have actually are new stuff. Yes. It's bending, it's shifting left for security or using data differently or um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there. Um, and goes back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona, you mentioned AIOps, we've been seeing AIOps IOPS booming and that's creating a new developer paradigm that's right. Which we call coin data as code data as code is like infrastructure as code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this data engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same thing? Do you agree? Um, do you disagree or can you share? >>I, a lot of thoughts that Fu I see the AI op solutions in the futures should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone there yet. Like I spend a lot of time with data dog, Cisco app dynamic, right? Dynatrace, all this solution will go future towards predict to pro so solution with AOPs. But what you bring up a very good point on the data side. I think like we have a Amazon marketplace and Amazon for startup, there should be data exchange where you want to create for AOPs and AI service that customers give the data, share the data because we thought the data algorithms are useless. I can give the best algorithm, but I gotta train them, modify them, make them better, make them better. Yeah. And I think their whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that area is very important. >>You've always been on, um, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to big data days back in 2009, you know that >>Look at, look how much data bricks has grown. >>It is doubled. The key cloud >>Air kinda went private, so good stuff. What are you working on right now? Give a, give a, um, plug for what you're working on. You'll still investing. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. So right. ISRA is my number one baby right now. So I'm looking year that growing customers and my customers, or some of them, you like it's zoom auto desk, McAfee, uh, grand <inaudible>. So all the top customers, um, mainly for it help desk customer service. AIOps those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What's what's their need? What category is it? >>I think they look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on, predict ours. One area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value problem. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service, >>Great stuff, man. Doing great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the cube. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of a us summit 2022. And we're gonna be at Aus summit in San, uh, in New York in the summer. So look for that on the calendar, of course, go to a us startups.com. That's a site for all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break. >>Okay. Welcome back everyone. This the cubes coverage here in San Francisco, California, a Davis summit, 2022, the beginning of the event season, as it comes back, little bit smaller footprint, a lot of hybrid events going on, but this is actually a physical event, a summit in new York's coming in the summer. We'll be two with the cube on the set. We're getting back in the Groove's psych to be back. We were at reinvent, uh, as well, and we'll see more and more cube, but you're gonna see a lot of virtual cube outta hybrid cube. We wanna get all those conversations, try to get more interviews, more flow going. But right now I'm excited to have Corey Quinn here on the back on the cube chief cloud economist with duck bill groove, he's the founder, uh, and chief content person always got great angles, fun comedy, authoritative Corey. Great to see you. Thank you. >>Thanks. Coming on. Sure is a lot of words to describe is shit posting, which is how I describe what I tend to do. Most days, >>Shit posting is an art form now. And if you look at mark, Andrew's been doing a lot of shit posting lately. All a billionaires are shit posting, but they don't know how to do it. They're >>Doing it right. There's something opportunity there. It's like, here's how to be even more obnoxious and incisive. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, it's like, I get excited with a nonsense I can do with a $20 gift card for an AWS credit compared to, oh well, if I could buy a mid-size island to begin doing this from, oh, then we're having fun. >>This shit posting trend. Interesting. I was watching a thread go on about, saw someone didn't get a job because of their shit posting and the employer didn't get it. And then someone on this side I'll hire the guy cuz I get that's highly intelligent shit posting. So for the audience that doesn't know what shit posting is, what, what is shitposting >>It's more or less talking about the world of enterprise technology, which even that sentence is hard to finish without falling asleep and toppling out of my chair in front of everyone on the livestream, but it's doing it in such a way that brings it to life that says the quiet part. A lot of the audience is thinking, but generally doesn't say either because they're polite or not a Jack ass or more prosaically are worried about getting fired for better or worse. I don't have that particular constraint, >>Which is why people love you. So let's talk about what you, what you think is, uh, worthy and not worthy in the industry right now, obviously, uh, Cuban coming up in Spain, which they're having a physical event, you see the growth of cloud native Amazon's evolving Atos, especially new CEO. Andy move on to be the chief of all. Amazon just saw him the cover of was it time magazine. Um, he's under a lot of stress. Amazon's changed. Invoice has changed. What's working. What's not, what's rising, what's falling. What's hot. What's not, >>It's easy to sit here and criticize almost anything. These folks do. They're they're effectively in a fishbowl, but I have trouble. Imagine the logistics, it takes to wind up handling the catering for a relatively downscale event like this one this year, let alone running a 1.7 million employee company having to balance all the competing challenges and pressures and the rest. I, I just can't fathom what it would be like to look at all of AWS. And it's, it's sprawling immense, the nominates our entire industry and say, okay, this is a good start, but I, I wanna focus on something with a broader remit. What is that? How do you even get into that position? And you can't win once you're there. All you can do is hold onto the tiger and hope you don't get mold. >>Well, there's a lot of force for good conversations. Seeing a lot of that going on, Amazon's trying to a, is trying to portray themselves, you know, the Pathfinder, you know, you're the pioneer, um, force for good. And I get that and I think that's a good angle as cloud goes mainstream. There's still the question of, we had a guy on just earlier, who was a skydiving instructor and we were joking about the early days of cloud. Like that was like skydiving, build a parachute open, you know, and now it's same kind of thing. As you move to edge, things are like reliable in some areas, but still new, new fringe, new areas. That's crazy. Well, >>Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon and his backfill replacement. The AWS CISO is CJ. Moses who as a hobby races, a as a semi-pro race car, our driver to my understanding, which either, I don't know what direction to take that in either. This is what he does to relax or ultimately, or ultimately it's. Huh? That, that certainly says something about risk assessment. I'm not entirely sure what, but okay. Either way, it sounds like more exciting. Like they >>Better have a replacement ready in case something goes wrong on the track, highly >>Available >>CSOs. I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, which I was never a fan of until I watched that Netflix series. But when you look at the formula one, it's pretty cool. Cause it's got some tech angles, I get the whole data instrumentation thing, but the most coolest thing about formula, the one is they have these new rigs out. Yeah. Where you can actually race in e-sports with other people in pure simulation of the race car. You gotta get the latest and video graphics card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're basically simulating racing. Oh, >>It's great too. And I can see the appeal of these tech companies getting it into it because these things are basically rocket shifts. When those cars go, like they're sitting there, we can instrument every last part of what is going on inside that vehicle. And then AWS crops up. And we can bill on every one of those dimensions too. And it's like slow down their hasty pudding one step at a time. But I do see the appeal. >>So I gotta ask you about, uh, what's going on in your world. I know you have a lot of great SA we've been following you in the queue for many, many years. Got a great newsletter. Check out Corey Quinn's newsletter, uh, screaming in the cloud program. Uh, you're on the cutting edge and you've got a great balance between really being snarky and, and, and really being delivering content. That's exciting, uh, for people, uh, with a little bit of an edge, um, how's that going? Uh, what's the blowback, any blowback late leads there been tick? What was, what are some of the things you're hearing from your audience, more Corey, more Corey. And then of course the, the PR team's calling you >>The weird thing about having an audience beyond a certain size is far and away as a landslide. The most common response I get is silence where it's hi, I'm emailing an awful lot of people at last week in AWS every week and okay. They not have heard me. It. That is not actually true. People just generally don't respond to email because who responds to email newsletters. That sounds like something, a lunatic might do same story with response to live streams and podcasts. It's like, I'm gonna call into that am radio show and give them a piece of my mind. People generally don't do that. >>We should do that. Actually. I think sure would call in. Oh, I, I >>Think >>I guarantee if we had that right now, people would call in and Corey, what do you think about X? >>Yeah. It not, everyone understands the full context of what I do. And in fact, increasingly few people do and that's fine. I, I keep forgetting that sometimes people do not see what I'm doing in the same light that I do. And that's fine. Blowback has been largely minimal. Honestly, I am surprised anything by how little I have gotten over the last five years of doing this, but it would be easier to dismiss me if I weren't generally. Right. When, okay, so you launch this new service and it seems pretty crappy to me cuz when I try and build something, it falls over and begs for help. And people might not like hearing that, but it's what customers are finding too. Yeah. I really am the voice of the customer. >>You know, I always joke with Dave Avante about how John Fort's always at, uh, um, reinvent getting the interview with jazzy now, Andy we're there, you're there. And so we have these rituals at the events. It's all cool. Um, one of the rituals I like about your, um, your content is you like to get on the naming product names. Um, and, and, and, and, and kind of goof on that. Now why I like is because I used to work at ETT Packard where they used to name things as like engineers, HP 1 0, 0 5, or we can't, we >>Have a new monitor. How are we gonna name it? Throw the wireless keyboard down the stairs again. And then there you go. Yeah. >>It's and the old joke at HP was if they, if they invented sushi, they'd say, yeah, we can't call sushi. It's cold, dead fish, but that's what it is. And so the joke was cold. Dead fish is a better name than sushi. So you know is fun. So what's the, what are the, how's the Amazon doing in there? Have they changed their naming, uh, strategy, uh, on some of their, their product >>They're going in different directions. When they named Aurora, they decided to explore a new theme of Disney princesses as they go down those paths. And some things are more descriptive. Some people are clearly getting bonus on number of words, they can shove into it. Like the better a service is the longer it's name. Like AWS systems manager, a session manager is a great one. I love the service ridiculous name. They have a systems manager, parameter store with is great. They have secrets manager, which does the same thing. It's two words less, but that one costs money in a way that systems manage through parameter store does not. It's fun. >>What's your, what's your favorite combination of acronyms >>Combination of you >>Got Ks. You got EMR, you got EC two. You got S three SQS. Well, RedShift's not an acronym. You got >>Gas is one of my personal favorites because it's either elastic block store or elastic bean stock, depending entirely on the context of the conversation, >>They still got bean stock or is that still >>Around? Oh, they never turn anything off. They're like the anti Google, Google turns things off while they're still building it. Whereas Amazon is like, wow, we built this thing in 2005 and everyone hates it. But while we certainly can't change it, now it has three customers on it, John. >>Okay. >>Simple BV still haunts our >>Dreams. I, I actually got an email on, I saw one of my, uh, servers, all these C twos were being deprecated and I got an email I'm like, I couldn't figure out. Why can you just like roll it over? Why, why are you telling me just like, gimme something else. Right. Okay. So let me talk about, uh, the other things I want to ask you is that like, okay, so as Amazon gets better in some areas where do they need more work? And you, your opinion, because obviously they're all interested in new stuff and they tend to like put it out there for their end to end customers. But then they've got ecosystem partners who actually have the same product. Yes. And, and this has been well documented. So it's, it's not controversial. It's just that Amazon's got a database Snowflake's got out database service. So, you know, Redshift, snowflake database is out there. So you've got this optician. Yes. How's that going? And what are you hearing about the reaction to any of that stuff? >>Depends on who you ask. They love to basically trot out a bunch of their partners who will say nice things about them. And it very much has heirs of, let's be honest, a hostage video, but okay. Cuz these companies do partner with Amazon and they cannot afford to rock the boat too far. I'm not partnered with anyone. I can say what I want. And they're basically restricted to taking away my birthday at worse so I can live with that. >>All right. So I gotta ask about multi-cloud cause obviously the other cloud shows are coming up. Amazon hated that word. Multi-cloud um, a lot of people are saying, you know, it's not a real good marketing word. Like multicloud sounds like, you know, root canal. Mm-hmm <affirmative> right. So is there a better description for multicloud? >>Multiple single >>Loves that term. Yeah. >>You're building in multiple single points of failure. Do it for the right reasons or don't do it as a default. I believe not doing it is probably the, the right answer. However, and if I were, if I were Amazon, I wouldn't want to talk about multi-cloud either as the industry leader, let's talk about other clouds, bad direction to go in from a market cap perspective. It doesn't end well for you, but regardless of what they want to talk about, or don't want to talk about what they say, what they don't say, I tune all of it out. And I look at what customers are doing and multi-cloud exists in a variety of some brilliant, some brain dead. It depends a lot on context. But my general response is when someone gets on stage from a company and tells me to do a thing that directly benefits their company. I am skeptical at best. Yeah. When customers get on stage and say, this is what we're doing because it solves problems. That's when I shut up and listen. >>Yeah. Cool. Awesome. Corey, I gotta ask you a question cause I know you we've been, you know, fellow journey mean in the, in the cloud journey, going to all the events and then the pandemic hit where now in the third year, who knows what it's gonna end, certainly events are gonna look different. They're gonna be either changing footprint with the virtual piece, new group formations community's gonna emerge. You've got a pretty big community growing and it's growing like crazy. What's the weirdest or coolest thing, or just big changes you've seen with the pan endemic, uh, from your perspective, cuz you've been in the you're in the middle of the whitewater rafting. You've seen the events you circle offline. You saw the online piece come in, you're commentating, you're calling balls and strikes in the industry. You got a great team developing over there. Duck bill group. What's the big aha moment that you saw with the pandemic. Weird, funny, serious, real in the industry and with customers what's >>Accessibility. Reinvent is a great example. When in the before times it's open to anyone who wants to attend, who >>Can pony. >>Hello and welcome back to the live cube coverage here in San Francisco, California, the cube live coverage. Two days, day two of a summit, 2022 Aish summit, New York city coming up in summer. We'll be there as well. Events are back. I'm the host, John fur, the Cub got great guest here. Johnny Dallas with Ze. Um, here is on the queue. We're gonna talk about his background. Uh, little trivia here. He was the youngest engineer ever worked at Amazon at the age. 17 had to get escorted into reinvent in Vegas cause he was underage <laugh> with security, all good stories. Now the CEO of company called Z know DevOps kind of focus, managed service, a lot of cool stuff, Johnny, welcome to the cube. >>Thanks John. Great. >>So tell a story. You were the youngest engineer at AWS. >>I was, yes. So I used to work at a company called Bebo. I got started very young. I started working when I was about 14, um, kind of as a software engineer. And when I, uh, it was about 16. I graduated out of high school early, um, working at this company Bebo, still running all of the DevOps at that company. Um, I went to reinvent in about 2018 to give a talk about some of the DevOps software I wrote at that company. Um, but you know, as many of those things were probably familiar with reinvent happens in a casino and I was 16. So was not able to actually go into the, a casino on my own. Um, so I'd have <inaudible> security as well as casino security escort me in to give my talk. >>Did Andy jazzy, was he aware of >>This? Um, you know, that's a great question. I don't know. <laugh> >>I'll ask him great story. So obviously you started a young age. I mean, it's so cool to see you jump right in. I mean, I mean you never grew up with the old school that I used to grew up in and loading package software, loading it onto the server, deploying it, plugging the cables in, I mean you just rocking and rolling with DevOps as you look back now what's the big generational shift because now you got the Z generation coming in, millennials on the workforce. It's changing like no one's putting and software on servers. Yeah, >>No. I mean the tools keep getting better, right? We, we keep creating more abstractions that make it easier and easier. When I, when I started doing DevOps, I could go straight into E two APIs. I had APIs from the get go and you know, my background was, I was a software engineer. I never went through like the CIS admin stack. I, I never had to, like you said, rack servers, myself. I was immediately able to scale. I was managing, I think 2,500 concurrent servers across every Ables region through software. It was a fundamental shift. >>Did you know what an SRE was at that time? >>Uh, >>You were kind of an SRE on >>Yeah, I was basically our first SRE, um, was familiar with the, with the phrasing, but really thought of myself as a software engineer who knows cloud APIs, not a SRE. All >>Right. So let's talk about what's what's going on now as you look at the landscape today, what's the coolest thing that's going on in your mind in cloud? >>Yeah, I think the, I think the coolest thing is, you know, we're seeing the next layer of those abstraction tools exist and that's what we're doing with Z is we've basically gone and we've, we're building an app platform that deploys onto your cloud. So if you're familiar with something like Carku, um, where you just click a GitHub repo, uh, we actually make it that easy. You click a GI hub repo and it will deploy on ALS using a AWS tools. So, >>Right. So this is Z. This is the company. Yes. How old's the company about >>A year and a half old now. >>All right. So explain what it does. >>Yeah. So we make it really easy for any software engineer to deploy on a AWS. It's not SREs. These are the actual application engineers doing the business logic. They don't really want to think about Yamo. They don't really want to configure everything super deeply. They want to say, run this API on S in the best way possible. We've encoded all the best practices into software and we set it up for you. Yeah. >>So I think the problem you're solving is that there's a lot of want be DevOps engineers. And then they realize, oh shit, I don't wanna do this. Yeah. And some people want to do it. They loved under the hood. Right. People love to have infrastructure, but the average developer needs to actually be as agile on scale. So that seems to be the problem you solve. Right? >>Yeah. We, we, we give way more productivity to each individual engineer, you know? >>All right. So let me ask you a question. So let me just say, I'm a developer. Cool. I build this new app. It's a streaming app or whatever. I'm making it up cube here, but let's just say I deploy it. I need your service. But what happens about when my customers say, Hey, what's your SLA? The CDN went down from this it's flaky. Does Amazon have, so how do you handle all that SLA reporting that Amazon provides? Cuz they do a good job with sock reports all through the console. But as you start getting into DevOps <affirmative> and sell your app, mm-hmm <affirmative> you have customer issues. How do you, how do you view that? Yeah, >>Well, I, I think you make a great point of AWS has all this stuff already. AWS has SLAs. AWS has contract. Aw has a lot of the tools that are expected. Um, so we don't have to reinvent the wheel here. What we do is we help people get to those SLAs more easily. So Hey, this is AWS SLA as a default. Um, Hey, we'll fix you your services. This is what you can expect here. Um, but we can really leverage S's reliability of you. Don't have to trust us. You have to trust ALS and trust that the setup is good there. >>Do you handle all the recovery or mitigation between, uh, identification say downtime for instance? Oh, the server's not 99% downtime. Uh, went down for an hour, say something's going on? And is there a service dashboard? How does it get what's the remedy? Do you have a, how does all that work? >>Yeah, so we have some built in remediation. You know, we, we basically say we're gonna do as much as we can to keep your endpoint up 24 7 mm-hmm <affirmative>. If it's something in our control, we'll do it. If it's a disc failure, that's on us. If you push bad code, we won't put out that new version until it's working. Um, so we do a lot to make sure that your endpoint stay is up, um, and then alert you if there's a problem that we can't fix. So cool. Hey S has some downtime, this thing's going on. You need to do this action. Um, we'll let you know. >>All right. So what do you do for fun? >>Yeah, so, uh, for, for fun, um, a lot of side projects. <laugh> uh, >>What's your side hustle right now. You got going on >>The, uh, it's >>A lot of tools playing tools, serverless. >>Yeah, painless. A lot of serverless stuff. Um, I think there's a lot of really cool WAM stuff as well. Going on right now. Um, I love tools is, is the truest answer is I love building something that I can give to somebody else. And they're suddenly twice as productive because of it. Um, >>It's a good feeling, isn't it? >>Oh yeah. There's >>Nothing like tools were platforms. Mm-hmm <affirmative>, you know, the expression, too many tools in the tool. She becomes, you know, tools for all. And then ultimately tools become platforms. What's your view on that? Because if a good tool works and starts to get traction, you need to either add more tools or start building a platform platform versus tool. What's your, what's your view on a reaction to that kind of concept debate? >>Yeah, it's a good question. Uh, we we've basically started as like a, a platform. First of we've really focused on these, uh, developers who don't wanna get deep into the DevOps. And so we've done all of the pieces of the stacks. We do C I C D management. Uh, we do container orchestration, we do monitoring. Um, and now we're, spliting those up into individual tools so they can be used. Awesome in conjunction more. >>All right. So what are some of the use cases that you see for your service? It's DevOps basically nano service DevOps. So people who want a DevOps team, do clients have a DevOps person and then one person, two people what's the requirements to run >>Z. Yeah. So we we've got teams, um, from no DevOps is kind of when they start and then we've had teams grow up to about, uh, five, 10 men DevOps teams. Um, so, you know, as is more infrastructure people come in because we're in your cloud, you're able to go in and configure it on top you're we can't block you. Uh, you wanna use some new AWS service. You're welcome to use that alongside the stack that we deploy >>For you. How many customers do you have now? >>So we've got about 40 companies that are using us for all of their infrastructure, um, kind of across the board, um, as well as >>What's the pricing model. >>Uh, so our pricing model is we, we charge basically similar to an engineering salary. So we charge a monthly rate. We have plans at 300 bucks a month, a thousand bucks a month, and then enterprise plan for >>The requirement scale. Yeah. So back into the people cost, you must have her discounts, not a fully loaded thing, is it? >>Yeah, there's a discounts kind of asking >>Then you pass the Amazon bill. >>Yeah. So our customers actually pay for the Amazon bill themselves. So >>Have their own >>Account. There's no margin on top. You're linking your, a analyst account in, um, got it. Which is huge because we can, we are now able to help our customers get better deals with Amazon. Um, got it. We're incentivized on their team to drive your costs down. >>And what's your unit main unit of economics software scale. >>Yeah. Um, yeah, so we, we think of things as projects. How many services do you have to deploy as that scales up? Um, awesome. >>All right. You're 20 years old now you not even can't even drink legally. <laugh> what are you gonna do when you're 30? We're gonna be there. >>Well, we're, uh, we're making it better, better, >>Better the old guy on the queue here. <laugh> >>I think, uh, I think we're seeing a big shift of, um, you know, we've got these major clouds. ALS is obviously the biggest cloud and it's constantly coming out with new services, but we're starting to see other clouds have built many of the common services. So Kubernetes is a great example. It exists across all the clouds and we're starting to see new platforms come up on top that allow you to leverage tools for multiple times. At the same time. Many of our customers actually have AWS as their primary cloud and they'll have secondary clouds or they'll pull features from other clouds into AWS, um, through our software. I think that's, I'm very excited by that. And I, uh, expect to be working on that when I'm 30. <laugh> awesome. >>Well, you gonna have a good future. I gotta ask you this question cuz uh, you know, I always, I was a computer science undergrad in the, in the, and um, computer science back then was hardcore, mostly systems OS stuff, uh, database compiler. Um, now there's so much compi, right? Mm-hmm <affirmative> how do you look at the high school college curriculum experience slash folks who are nerding out on computer science? It's not one or two things. You've got a lot of, lot of things. I mean, look at Python, data engineering and emerging as a huge skill. What's it, what's it like for college kids now and high school kids? What, what do you think they should be doing if you had to give advice to your 16 year old self back a few years ago now in college? Um, I mean Python's not a great language, but it's super effective for coding and the datas were really relevant, but it's, you've got other language opportunities you've got tools to build. So you got a whole culture of young builders out there. What should, what should people gravitate to in your opinion and stay away from or >>Stay away from? That's a good question. I, I think that first of all, you're very right of the, the amount of developers is increasing so quickly. Um, and so we see more specialization. That's why we also see, you know, these SREs that are different than typical application engineering. You know, you get more specialization in job roles. Um, I think if, what I'd say to my 16 year old self is do projects, um, the, I learned most of my, what I've learned just on the job or online trying things, playing with different technologies, actually getting stuff out into the world, um, way more useful than what you'll learn in kind of a college classroom. I think classroom's great to, uh, get a basis, but you need to go out and experiment actually try things. >>You know? I think that's great advice. In fact, I would just say from my experience of doing all the hard stuff and cloud is so great for just saying, okay, I'm done, I'm banning the project. Move on. Yeah. Cause you know, it's not gonna work in the old days. You have to build this data center. I bought all this, you know, people hang on to the old, you know, project and try to force it out there. Now you >>Can launch a project now, >>Instant gratification, it ain't working <laugh> or this is shut it down and then move on to something new. >>Yeah, exactly. Instantly you should be able to do that much more quickly. Right. So >>You're saying get those projects and don't be afraid to shut it down. Mm-hmm <affirmative> that? Do you agree with that? >>Yeah. I think it's ex experiment. Uh, you're probably not gonna hit it rich on the first one. It's probably not gonna be that idea is the genius idea. So don't be afraid to get rid of things and just try over and over again. It's it's number of reps >>That'll win. I was commenting online. Elon Musk was gonna buy Twitter, that whole Twitter thing. And someone said, Hey, you know, what's the, I go look at the product group at Twitter's been so messed up because they actually did get it right on the first time. And we can just a great product. They could never change it because people would freak out and the utility of Twitter. I mean, they gotta add some things, the added button and we all know what they need to add, but the product, it was just like this internal dysfunction, the product team, what are we gonna work on? Don't change the product so that you kind of have there's opportunities out there where you might get the lucky strike right outta the gate. Yeah. Right. You don't know. >>It's almost a curse too. It's you're not gonna hit curse Twitter. You're not gonna hit a rich the second time too. So yeah. >><laugh> Johnny Dallas. Thanks for coming on the cube. Really appreciate it. Give a plug for your company. Um, take a minute to explain what you're working on. What you're look looking for. You hiring funding. Customers. Just give a plug, uh, last minute and kind the last word. >>Yeah. So, um, John Dallas from Ze, if you, uh, need any help with your DevOps, if you're a early startup, you don't have DevOps team, um, or you're trying to deploy across clouds, check us out z.com. Um, we are actively hiring. So if you are a software engineer excited about tools and cloud, or you're interested in helping getting this message out there, hit me up. Um, find us on z.co. >>Yeah. LinkedIn Twitter handle GitHub handle. >>Yeah. I'm the only Johnny on a LinkedIn and GitHub and underscore Johnny Dallas underscore on Twitter. All right. Um, >>Johnny Dallas, the youngest engineer working at Amazon, um, now 20 we're on great new project here in the cube. Builders are all young. They're growing into the business. They got cloud at their, at their back it's tailwind. I wish I was 20. Again, this is a I'm John for your host. Thanks for watching. Thanks. >>Welcome >>Back to the cubes. Live coverage of a AWS summit in San Francisco, California events are back, uh, ADAS summit in New York cities. This summer, the cube will be there as well. Check us out there lot. I'm glad we have events back. It's great to have everyone here. I'm John furry host of the cube. Dr. Matt wood is with me cube alumni now VP of business analytics division of AWS. Matt. Great to see you. Thank >>You, John. Great to be here. >>Appreciate it. I always call you Dr. Matt wood, because Andy jazzy always says Dr. Matt, we >>Would introduce you on the he's the one and only the one and >>Only Dr. Matt wood >>In joke. I love it. >>Andy style. And I think you had walkup music too on, you know, >>Too. Yes. We all have our own personalized walk. >>So talk about your new role. I not new role, but you're running up, um, analytics, business or AWS. What does that consist of right now? >>Sure. So I work, I've got what I consider to be the one of the best jobs in the world. Uh, I get to work with our customers and, uh, the teams at AWS, uh, to build the analytics services that millions of our customers use to, um, uh, slice dice, pivot, uh, better understand their day data, um, look at how they can use that data for, um, reporting, looking backwards and also look at how they can use that data looking forward. So predictive analytics and machine learning. So whether it is, you know, slicing and dicing in the lower level of, uh Hado and the big data engines, or whether you're doing ETR with glue or whether you're visualizing the data in quick side or building models in SageMaker. I got my, uh, fingers in a lot of pies. >>You know, one of the benefits of, uh, having cube coverage with AWS since 2013 is watching the progression. You were on the cube that first year we were at reinvent 2013 and look at how machine learning just exploded onto the scene. You were involved in that from day one is still day one, as you guys say mm-hmm <affirmative>, what's the big thing now. I mean, look at, look at just what happened. Machine learning comes in and then a slew of services come in and got SageMaker became a hot seller, right outta the gate. Mm-hmm <affirmative> the database stuff was kicking butt. So all this is now booming. Mm-hmm <affirmative> that was the real generational changeover for <inaudible> what's the perspective. What's your perspective on, yeah, >>I think how that's evolved. No, I think it's a really good point. I, I totally agree. I think for machine machine learning, um, there was sort of a Renaissance in machine learning and the application of machine learning machine learning as a technology has been around for 50 years, let's say, but, uh, to do machine learning, right? You need like a lot of data, the data needs to be high quality. You need a lot of compute to be able to train those models and you have to be able to evaluate what those mean as you apply them to real world problems. And so the cloud really removed a lot of the constraints. Finally, customers had all of the data that they needed. We gave them services to be able to label that data in a high quality way. There's all the compute. You need to be able to train the models <laugh> and so where you go. >>And so the cloud really enabled this Renaissance with machine learning, and we're seeing honestly, a similar Renaissance with, uh, with data, uh, and analytics. You know, if you look back, you know, five, 10 years, um, analytics was something you did in batch, like your data warehouse ran a analysis to do, uh, reconciliation at the end of the month. And then was it? Yeah. And so that's when you needed it, but today, if your Redshift cluster isn't available, uh, Uber drivers don't turn up door dash deliveries, don't get made. It's analytics is now central to virtually every business and it is central to every virtually every business is digital transformation. Yeah. And be able to take that data from a variety of sources here, or to query it with high performance mm-hmm <affirmative> to be able to actually then start to augment that data with real information, which usually comes from technical experts and domain experts to form, you know, wisdom and information from raw data. That's kind of, uh, what most organizations are trying to do when they kind of go through this analytics journey. It's >>Interesting, you know, Dave LAN and I always talk on the cube, but out, you know, the future and, and you look back, the things we were talking about six years ago are actually happening now. Yeah. And it's not a, a, a, you know, hyped up statement to say digital transformation. It actually's happening now. And there's also times where we bang our fist on the table, say, I really think this is so important. And Dave says, John, you're gonna die on that hill <laugh>. >>And >>So I I'm excited that this year, for the first time I didn't die on that hill. I've been saying data you're right. Data as code is the next infrastructure as code mm-hmm <affirmative>. And Dave's like, what do you mean by that? We're talking about like how data gets and it's happening. So we just had an event on our 80 bus startups.com site mm-hmm <affirmative>, um, a showcase with startups and the theme was data as code and interesting new trends emerging really clearly the role of a data engineer, right? Like an SRE, what an SRE did for cloud. You have a new data engineering role because of the developer on, uh, onboarding is massively increasing exponentially, new developers, data science, scientists are growing mm-hmm <affirmative> and the, but the pipelining and managing and engineering as a system. Yeah. Almost like an operating system >>And as a discipline. >>So what's your reaction to that about this data engineer data as code, because if you have horizontally scalable data, you've gotta be open that's hard. <laugh> mm-hmm <affirmative> and you gotta silo the data that needs to be siloed for compliance and reasons. So that's got a very policy around that. So what's your reaction to data as code and data engineering and >>Phenomenon? Yeah, I think it's, it's a really good point. I think, you know, like with any, with any technology, uh, project inside an organization, you know, success with analytics or machine learning is it's kind of 50% technology and then 50% cultural. And, uh, you have often domain experts. Those are, could be physicians or drug experts, or they could be financial experts or whoever they might be got deep domain expertise. And then you've got technical implementation teams and it's kind of a natural often repulsive force. I don't mean that rudely, but they, they just, they don't talk the same language. And so the more complex the domain and the more complex the technology, the stronger that repulsive force, and it can become very difficult for, um, domain experts to work closely with the technical experts, to be able to actually get business decisions made. And so what data engineering does and data engineering is in some cases team, or it can be a role that you play. >>Uh, it's really allowing those two disciplines to speak the same language it provides. You can think of it as plumbing, but I think of it as like a bridge, it's a bridge between like the technical implementation and the domain experts. And that requires like a very disparate range of skills. You've gotta understand about statistics. You've gotta understand about the implementation. You've gotta understand about the, it, you've gotta understand and understand about the domain. And if you could pull all of that together, that data engineering discipline can be incredibly transformative for an organization, cuz it builds the bridge between those two >>Groups. You know, I was advising some, uh, young computer science students at the sophomore junior level, uh, just a couple weeks ago. And I told 'em, I would ask someone at Amazon, this questions I'll ask you since you're, you've been in the middle of of it for years, they were asking me and I was trying to mentor them on. What, how do you become a data engineer from a practical standpoint, uh, courseware projects to work on how to think, um, not just coding Python cause everyone's coding in Python mm-hmm <affirmative> but what else can they do? So I was trying to help them and I didn't really know the answer myself. I was just trying to like kind of help figure it out with them. So what is the answer in your opinion or the thoughts around advice to young students who want to be data engineers? Cuz data scientists is pretty clear in what that is. Yeah. You use tools, you make visualizations, you manage data, you get answers and insights and apply that to the business. That's an application mm-hmm <affirmative>, that's not the, you know, sta standing up a stack or managing the infrastructure. What, so what does that coding look like? What would your advice be to >>Yeah, I think >>Folks getting into a data engineering role. >>Yeah. I think if you, if you believe this, what I said earlier about like 50% technology, 50% culture, like the, the number one technology to learn as a data engineer is the tools in the cloud, which allow you to aggregate data from virtually any source into something which is incrementally more valuable for the organization. That's really what data engineering is all about. It's about taking from multiple sources. Some people call them silos, but silos indicates that the, the storage is kind of fungible or UND differentiated. That that's really not the case. Success requires you to really purpose built well crafted high performance, low cost engines for all of your data. So understanding those tools and understanding how to use 'em, that's probably the most important technical piece. Um, and yeah, Python and programming and statistics goes along with that, I think. And then the most important cultural part, I think is it's just curiosity. >>Like you want to be able to, as a data engineer, you want to have a natural curiosity that drives you to seek the truth inside an organization, seek the truth of a particular problem and to be able to engage, cuz you're probably, you're gonna have some choice as you go through your career about which domain you end up in, like maybe you're really passionate about healthcare. Maybe you're really just passionate about your transportation or media, whatever it might be. And you can allow that to drive a certain amount of curiosity, but within those roles, like the domains are so broad, you kind of gotta allow your curiosity to develop and lead, to ask the right questions and engage in the right way with your teams. So because you can have all the technical skills in the world, but if you're not able to help the team's truths seek through that curiosity, you simply won't be successful. >>We just had a guest on 20 year old, um, engineer, founder, Johnny Dallas, who was 16 when he worked at Amazon youngest engineer at >>Johnny Dallas is a great name by the that's fantastic. It's his real name? >>It sounds like a football player. Rockstar. I should call Johnny. I have Johnny Johnny cube. Uh it's me. Um, so, but he's young and, and he, he was saying, you know, his advice was just do projects. >>Yeah. That's get hands on. >>Yeah. And I was saying, Hey, I came from the old days though, you get to stand stuff up and you hugged onto the assets. Cause you didn't wanna kill the cause you spent all this money and, and he's like, yeah, with cloud, you can shut it down. If you do a project that's not working and you get bad data, no one's adopting it or you don't want like it anymore. You shut it down. Just something >>Else. Totally >>Instantly abandoned it. Move onto something new. >>Yeah. With progression. Totally. And it, the, the blast radius of, um, decisions is just way reduced, gone. Like we talk a lot about like trying to, you know, in the old world trying to find the resources and get the funding. And it's like, right. I wanna try out this kind of random idea that could be a big deal for the organization. I need 50 million in a new data center. Like you're not gonna get anywhere. You, >>You do a proposal working backwards, document >>Kinds, all that, that sort of stuff got hoops. So, so all of that is gone, but we sometimes forget that a big part of that is just the, the prototyping and the experimentation and the limited blast radius in terms of cost. And honestly, the most important thing is time just being able to jump in there, get fingers on keyboards, just try this stuff out. And that's why at AWS, we have part of the reason we have so many services because we want, when you get into AWS, we want the whole toolbox to be available to every developer. And so, as your ideas developed, you may want to jump from, you know, data that you have, that's already in a database to doing realtime data. Yeah. And then you can just, you have the tools there. And when you want to get into real time data, you don't just have kineses, but you have real time analytics and you can run SQL again, that data is like the, the capabilities and the breadth, like really matter when it comes to prototyping and, and >>That's culture too. That's the culture piece, because what was once a dysfunctional behavior, I'm gonna go off the reservation and try something behind my boss's back or cause now as a side hustle or fun project. Yeah. So for fun, you can just code something. Yeah, >>Totally. I remember my first Haddo project, I found almost literally a decommissioned set of servers in the data center that no one was using. They were super old. They're about to be literally turned off. And I managed to convince the team to leave them on for me for like another month. And I installed her DUP on them and like, got them going. It's like, that just seems crazy to me now that I, I had to go and convince anybody not to turn these service off, but what >>It was like for that, when you came up with elastic map produce, because you said this is too hard, we gotta make it >>Easier. Basically. Yes. <laugh> I was installing Haddo version, you know, beta nor 0.9 or whatever it was. It's like, this is really hard. This is really hard. >>We simpler. All right. Good stuff. I love the, the walk down memory lane and also your advice. Great stuff. I think culture's huge. I think. And that's why I like Adam's keynote to reinvent Adam. Lesky talk about path minds and trail blazers because that's a blast radius impact. Mm-hmm <affirmative> when you can actually have innovation organically just come from anywhere. Yeah, that's totally cool. Totally. Let's get into the products. Serverless has been hot mm-hmm <affirmative> uh, we hear a lot about EKS is hot. Uh, containers are booming. Kubernetes is getting adopted. There's still a lot of work to do there. Lambda cloud native developers are booming, serverless Lambda. How does that impact the analytics piece? Can you share the hot, um, products around how that translates? Sure, absolutely. Yeah, the SageMaker >>Yeah, I think it's a, if you look at kind of the evolution and what customers are asking for, they're not, you know, they don't just want low cost. They don't just want this broad set of services. They don't just want, you know, those services to have deep capabilities. They want those services to have as lower operating cost over time as possible. So we kind of really got it down. We got built a lot of muscle, lot of services about getting up and running and experimenting and prototyping and turning things off and turn turning them on and turning them off. And like, that's all great. But actually the, you really only most projects start something once and then stop something once. And maybe there's an hour in between, or maybe there's a year, but the real expense in terms of time and, and complexity is sometimes in that running cost. Yeah. And so, um, we've heard very loudly and clearly from customers that they want, that, that running cost is just undifferentiated to them and they wanna spend more time on their work and in analytics that is, you know, slicing the data, pivoting the data, combining the data, labeling the data, training their models, uh, you know, running inference against their models, uh, and less time doing the operational pieces. >>So is that why the servers focus is there? >>Yeah, absolutely. It, it dramatically reduces the skill required to run these, uh, workloads of any scale. And it dramatically reduces the UND differentiated, heavy lifting, cuz you get to focus more of the time that you would've spent on the operation on the actual work that you wanna get done. And so if you look at something just like Redshift serverless that we launched a reinvent, you know, there's a kind of a, we have a lot of customers that want to run like a, uh, the cluster and they want to get into the, the weeds where there is benefit. We have a lot of customers that say, you know, I there's no benefit for me though. I just wanna do the analytics. So you run the operational piece, you're the experts we've run. You know, we run 60 million instant startups every single day. Like we do this a lot. Exactly. We understand the operation. I >>Want the answers come on. So >>Just give the answers or just let, give me the notebook or just give the inference prediction. So today for example, we announced, um, you know, serverless inference. So now once you've trained your machine learning model, just, uh, run a few, uh, lines of code or you just click a few buttons and then yeah, you got an inference endpoint that you do not have to manage. And whether you're doing one query against that endpoint, you know, per hour or you're doing, you know, 10 million, but we'll just scale it on the back end. You >>Know, I know we got not a lot of time left, but I want, wanna get your reaction to this. One of the things about the data lakes, not being data swamps has been from what I've been reporting and hearing from customers is that they want to retrain their machine learning algorithm. They want, they need that data. They need the, the, the realtime data and they need the time series data, even though the time has passed, they gotta store in the data lake mm-hmm <affirmative>. So now the data lakes main function is being reusing the data to actually retrain. Yeah, >>That's >>Right. It worked properly. So a lot of, lot of postmortems turn into actually business improvements to make the machine learning smarter, faster. You see that same way. Do you see it the same way? Yeah, >>I think it's, I think it's really interesting. No, I think it's really interesting because you know, we talk it's, it's convenient to kind of think of analytics as a very clear progression from like point a point B, but really it's, you are navigating terrain for which you do not have a map and you need a lot of help to navigate that terrain. Yeah. And so, you know, being, having these services in place, not having to run the operations of those services, being able to have those services be secure and well governed, and we added PII detection today, you know, something you can do automatically, uh, to be able to use their, uh, any unstructured data run queries against that unstructured data. So today we added, you know, um, text extract queries. So you can just say, well, uh, you can scan a badge for example, and say, well, what's the name on this badge? And you don't have to identify where it is. We'll do all of that work for you. So there's a often a, it's more like a branch than it is just a, a normal, uh, a to B path, a linear path. Uh, and that includes loops backwards. And sometimes you gotta get the results and use those to make improvements further upstream. And sometimes you've gotta use those. And when you're downstream, you'll be like, ah, I remember that. And you come back and bring it all together. So awesome. It's um, it's, uh, uh, it's a wonderful >>Work for sure. Dr. Matt wood here in the queue. Got just take the last word and give the update. Why you're here. What's the big news happening that you're announcing here at summit in San Francisco, California, and update on the, the business analytics >>Group? Yeah, I think, you know, one of the, we did a lot of announcements in the keynote, uh, encouraged everyone to take a look at that. Uh, this morning was Swami. Uh, one of the ones I'm most excited about, uh, is the opportunity to be able to take, uh, dashboards, visualizations. We're all used to using these things. We see them in our business intelligence tools, uh, all over the place. However, what we've heard from customers is like, yes, I want those analytics. I want their visualization. I want it to be up to date, but you know, I don't actually want to have to go my tools where I'm actually doing my work to another separate tool to be able to look at that information. And so today we announced, uh, one click public embedding for quick side dashboards. So today you can literally, as easily as embedding a YouTube video, you can take a dashboard that you've built inside, quick site cut and paste the HTML, paste it into your application and that's it. That's all you have to do. It takes seconds and >>It gets updated in real time. >>Updated in real time, it's interactive. You can do everything that you would normally do. You can brand it like this is there's no power by quick site button or anything like that. You can change the colors, make it fit in perfectly with your, with your applications. So that's sitting incredibly powerful way of being able to take a, uh, an analytics capability that today sits inside its own little fiefdom and put it just everywhere. It's, uh, very transformative. >>Awesome. And the, the business is going well. You got the serverless and your tailwind for you there. Good stuff, Dr. Matt with thank you. Coming on the cube >>Anytime. Thank >>You. Okay. This is the cubes cover of eight summit, 2022 in San Francisco, California. I'm John host cube. Stay with us with more coverage of day two after this short break.

>>law from Las Vegas. It's the Q covering a ws re invent 2019 brought to you by Amazon Web service is and in along with its ecosystem partners. >>Hey, welcome back, everyone. That's two cubes. Live coverage of aws Reinvent were day, too in Las Vegas. I'm John for a day Volonte here, extracting the signal from the noise and the big story today is the partner Keynote, Andy Jazzy Yesterday and the new guards versus the old guards. What is the value equation of the modern error? Our next guest, my cowed and president. A slalom build an organically growing company with 8000 employees Highlight in the Kino today. So congratulations for being highlighting the keynote and also for a great company. So thanks for coming on. >>Thank you very much. I'm really glad to be here. >>So talk about the company real quick. Quick highlights about the firm, how big you guys are and your secret of success. >>Sure, so slow. Him has been around for over 15 years now, and we, like you mentioned we've grown 100% organically and our model is very much a locally focused model. So are our consultants live in the city live and work in the cities that they grow up in, and so they know that their customers really well. It's not a traveling model and then slowly build, which is on the president's. Long billed is Islam's answer to building modern software products in modern data products, and we have a dozen build centers around in three different countries that support projects in those local cities. >>So this local models one thing is really clever, and I think it's interesting. It might be an indicator howto organize in this modern cultural error of mission based. Yep, it's not Quick hit traveling. Hey, sell you something. See you later. You only get called up when you only see them when they're selling something. That's kind of the old bottle and sell you something. Here's a bunch of people See you later in the anymore, >>not knowing anymore In the world working today, you have to have proximity to the problem that you're trying to solve, and so we try to get as close as we can to our customers and create long term relationships just like our customers are creating With these new modern technology is a long term relationship. It's transformational relationship. That's how we approach our customers, that we put them first and we try to stay as close as we possibly can. To them. >>You guys have are interesting, interdisciplinary, a portfolio you do product engineering to analytics. You got consulting people based business, which you just pointed out. Andy Jazzy talked about a big theme was, Hey, CIA CEOs get involved. Leadership transformation. Imperative. Basically. Hey, get smarter people. So you don't buy Microsoft. That's my butt butt. I t is changing. Yes, leaderships critical what our customers and years of your customers doing with respect to putting that leadership stake in the ground. How are they driving those big transformation? Not tire kicking. We're talking about full throttle transformations. >>Yeah, I mean, it's it's an interesting time right now for sure. We're in the middle of this technology revolution, which Andy like to say a lot as well that if you're not turning yourself into a modern technology organisation, you are. You're going to you're gonna be not to be around for very long. You have a lot of new start ups that are going to be cloud native. They're gonna be moving very, very quickly. They're taking advantage of of all these modern technologies. So they really must be an imperative for senior leaders in these companies to take on that. That transformation will >>just one more quick point. We have to means that we've been developing in the Cube here. You wanna share them with you and get your reaction. Okay, One is cloud native. If you take the tea at a cloud native, is the cloud naive? The other one is reborn in the cloud. It surprises have to be reborn. Yes, in the clouds. What's your reaction to those two? Thing is, they're not heavy out there. And do you have to be reborn? The cloud? >>I mean, I think the Nativity is getting better. It's We've made a lot of progress over the last 10 years, let's say in a cloud adoption. So it's less than it used to be. But in terms of the cloud reborn, I think it's absolutely something every incumbent needs to be thinking about. So they may have been born a retail organization or an automobile organization, or what? Whatever might be, they now need to view themselves as a technology organization and they may not have grown up cloud native, but they do need to be cloud reborn. So I'm really resonate with that one. >>Like I want to unpack this modern technology organisation little bit. Some people might interpret as, oh, modern, modern I t shop. That's not what you mean. You're talking about a modern organization, which is technology. Technology is the underpinning, so let's talk a little bit more about what that means. And, you know, obviously, data plays a role there. Machine intelligence, but so maybe you could unpack that a little bit and give us some color on what really is a modern organization. And how did they get there? >>It's It is a little bit of a Nissen Miss number to call it a modern technology organisation because technology is really just a tool. It's the organization itself that really needs to become modern. And it's a way of thinking it's a It's a cultural shift in the way that you think that and the way that you do budgeting the way that you think about how do you get new products to market? Everybody needs to be involved in this, and so it becomes very much a team based sport. So you need to remove those silos and transform the entire organization in the way that they address how they work with their customers, our customers and our customers customers. >>So talk a little bit more about the data component of that, because I just I can't envision a modern organization that's not a data driven pick, whatever, but puts data at the core. So how do you help organizations do that? >>Well, that's it. And there's so many applications there either consuming or making data so that there's so much data out there. So how do you find the data that you need? So there's a lot of great tools, especially on AWS, that allow everyone in an organization to become an analyst, if you will, that they can go and find the specific data they need to do their job to make the right decisions. And so really, putting data at the heart of everything you do is super super important today. >>Yes, so now you also your focus is build tools, so maybe you could talk a little bit more about what those are and how you're applying them to help customers. >>That's one of the big announcements we had this morning was A. W S and Salaam have joined together to create launch centers. They're gonna be physical locations that are going to be co populated with slow employees and eight of US employees to give our customers our joint customers this unique experience of having the best of both worlds in one place. We can talk about the transformation of an organization. We can talk about the application of tools to solve technology problems. And we can do it all together in one location with our customers >>who are the stakeholders when you go in and transforming organization. Andy Jassy Johnson said, We gotta start with the CEO. Part of the problem with, you know, just the top down is a lot of times the senior management teams going and the people who are responsible for actually transacting the day to day business is like Well, yeah, I got this other thing going on and you get this Dissidents. Yeah, How do you What? Do you see a successful models to address that? I do think it has to >>start with the CEO. You have to have that that transformational mindset that comes from the very top that then can flow down into the organization. But, like you said, everybody needs to buy into this. We need to transform model or we're not going to be in business. And so see Io is super important to CMO is super important. But then it goes back to what I was talking about. In terms of a team based sport. Everybody needs to be involved. It isn't one person's responsibility is not the c I ose responsibility. It's not the CEO's responsibility everybody needs to be involved in and in this model of transforming into a modern technology organisation >>on analytics, what's the hot product for analytics? What people buy any non >>mean right now Snowflakes a really big one. You know, it's very, very popular. There's a whole bunch of it, really kind of depends on the specific use case that the customer is trying to solve for whether they're trying to extract data from legacy systems and create analytics where they're trying to create M. L A I N M l models really kind of depends. >>Well, you mentioned Snowflake. I mean, the reason I think that's interesting is you know, in the days of John and I started the Cube way did all the dupe circuit and a lot of promises there. I mean, I remember the old data warehouse days. We're gonna transform your business 360. Your business never happened. What happened with do be gentle these data lakes that became data swamps. But now you have all this data in the cloud. You see tools like snowflake like red shift bring in data bricks, other machine learning sagemaker applied on top of that data with a much more simplified way to get insights out of that data's plentiful insights aren't but to your point, your democratizing that data. And there's a whole new set of use cases emerging in the cloud. You see that? And I personally think it's very exciting. And I think it's the next wave. John calls a cloud two point. Oh, that's a big component of it. Your thoughts >>or even 3.0, you know that, right? I mean, it's really because it used to be just visualization was like, that was great when tableau came out. Right now, you apply that along with all of the analytics that you could get underneath it. It really does enable anyone in the organization to use data effectively and have access to it and not have to have to send a request into a central I t organization great and eight e t l and get a report back. It's It's really it's really time, and it's your fingers >>Later on, any jazz he doesn't like. Loud two point. Oh, although we made that term up to goof on Web two point. Oh, but really is about next Gen Cloud like next. Gen stats, if you will. So what I gotta ask you, What do you think the next Gen. Cloud is all about? When someone says, Hey, you know what? I need to get on this. Educate me on next. Gen Cloud. >>Yeah, a lot what we're talking about. So the first Gen. Cloud is let's move applications. Let's get workloads into the cloud. Let's shut down some data centers. Let's do some costs. Take out the next generation of cloud is really about extracting the value of all the promises that are made by the cloud. So how do you turn your organization into something that's really customer focused that can move really, really fast. That has access to data at all times to solve these business problems and create some autonomy within the organization, so that the next version of Cloud to me is about unlocking that value so that you can have a much more customer focused organization, as opposed to just having a cost takeout play with, which is the original version of the club. >>I could ask you the questions. You're on the front lines with customers. The number one question we hear there's two types of custody. Even Andy Jazzy really kind of recognized for the first time in his keynote customers and developers. They want all the low level building blocks now They want some prefab, not his word. My word but customer prefabricated solutions, more consumable Amazon. They might not have the people that could get down in the weeds and provisioned lambda and functions and craziness of all the greatness of God, which is hard if you really gotta get down and dirty. You guys are out there right now. Is there? Ah, trend where you started, Seymour Consumable presentation of product or how you see that evolving? >>I thought >>Andy did a really good job in his keynote finishing around focus on the builders, and that's a big focus. What we have is we named our modern technology or anything slow build, right. But everybody, every company needs to. If they turn themselves into a technology organisation or they have a technology focus, you can create this this version of a technology organization within your own company. You can create your own builders. And so making this technology available to your current staff well and will also allow you to attract the new staff that have some of these modern, um, more of the modern skills. >>Final question I have for you is that one trend we're seeing and we have We're just starting now to report on this. Is that data science with stage make a studio. You start to see s'more uptake with data science, but most customers don't know they needed data science until they have data. So you can just say, Hey, throw some day we did. The site is Well, you gotta have some data first. So getting data full is step one. How do you guys view that? Do you agree with that? You deserve way mechanism to get people with enough data to get started. Say OK for the marketing department now dedicated data scientist. Yeah, I think >>there's so much data. There's a lot of data people don't realize they already have s Oh, there's so much data out there that tends to be a biggest part of the problem is what do I do with all this data? So there's some great tools, you know, that the whole Data lake has opened up access to vast amounts of data that could be on structured That wasn't available before. So I think everybody has the data. They just may not realize they have the data. So with this modern tools, you have >>a late formation. You throw it, we'll make it in a data lake. Start seeing it first, right? No, we don't have a >>higher a whole bunch of data scientists anymore. Like we moved around that as well. You can get a i N m l now out of the box essentially, and use that data to your advantage. >>I think it >>starts with understanding how data affects the monetization of your business. Whether it's cutting costs, driving productivity are actually directly raising revenue, not necessarily selling the data, but how data contributes to that. And then the lining with the line of business to say, Okay, how do I turn this into money? And then there is a skills component. You know, this may not be an army of data scientist, but you mentioned builders before. Not everybody has these builders and their organizations, but I >>think you can. You can attract them and you can create them. And if you create an organization that's attractive to them, it'll be amazing what you can do there. >>Guys like you. Thanks for coming on. And we love to follow up with you and get more your story. Fascinating. Let the people centric. Thanks for coming on. >>I really appreciate it. Thank you very much. >>Very much. Next, Jed Cube. Next. Gen Cloud we're bringing all the data. Will be back with more coverage to reinvent 2019 after this short break

from our studios in the heart of Silicon Valley Palo Alto California this is a cute conversation hey welcome back everybody Jeffrey here with the cube we're in our Palo Alto Studios here today for a cute conversation it's a little bit of a dog days of summer conference seasons a little bit slow so we're excited we can kind of take a step back and we're gonna look back actually in time we're excited to have a very special guest rich Kolbert he is the field CTO at Dell EMC but really what we're talking about today is this data domain is 10-year anniversary of the date domain acquisition so rich first off welcome to the to the cube thanks Jeff excited to be here thanks for the invitation appreciate it I can't believe we're talking before we turned the cameras on that you join in 2006 and yet it's been 10 years I'm like wait 2006 was more than 10 can that be we're just getting old I don't know things are changing too fast no it's like a trip down memory lane and it just seems so long ago and yes in a way it also seems like yesterday I think things have gone so quickly so we're also joined in this segment by our top data analyst also the founder of wiki bond and co-ceo of Silicon angle media and founder of that as well so Dave Villante is joining us all the way from Boston Dave good to see ya hey Jeff hi rich to talk to you guys hey Dave so let's take a quick trip back 10 years ago actually maybe 11 years ago things were starting to heat up there was a lot of different vendors out there a lot of different players and things started to consolidate so I wonder if you can give us a little bit of your perspective what what's going on rich and then we'll get Dave's perspective yeah it was an interesting time right before the data domain acquisition we actually went through some economic times in 2008 and the markets are changing and and and some companies are becoming more successful some companies were struggling through that time customers were also looking for ways to to you know save money and do some interesting things there so it was a mixed feeling set of you know through that times data domain had IPO in 2007 and we were kind of going through this this explosive period of growth but you know across the board we just saw so many things change all at once and we really were surprised I think when initially was NetApp that an that they had intentions to bias and I think that was due to some of the economic factors of play and then of course EMC stepped in and and started a bidding contest with NetApp for for the company right so I Dave wonder if you could share your perspective you're sitting as an analyst you got Jo TG The Godfather of storage back in Boston what were you seeing in terms of the kind of the market dynamics and was it a surprise wouldn't that app decided to make a move well if you know first first of all I had left the storage industry for quite some time and when I started wiki bond we looked at storage and nothing had changed except one thing which was David deduplication that was new until a new tape was finally I always hated the tape the tape was finally being attacked so it was it was amazing time and EMC at the time we had some obviously great management yet Frank Sluman running data domain yo Joe Tucci who always balanced out acquisitions with organic you know in how to R&D and when Tom Georgians and NetApp said they were gonna go by David domain emt's walk right in and said no way so it was somewhat of a defensive move but at the same time when you talk to the M&A guys they said no no it's not just defense we can actually make this a growth play and that's exactly what happened Dayna domain I think at the time rich was probably a couple of hundred million dollar company and then they they popped that at the EMC and scaled that to you know well over a billion dollars and it'll maintain the the franchise and then grew it quite dramatically beyond where all the expectations were for the market the market team at the time was probably around a billion and I think ID seen rich as a over three billion today yeah one of the things that's so don't quote me on all the numbers because I'm not like you know watching the market caps and stocks but I think we'd gotten up to about a 500 million dollar run rate in terms of sales and prior to the crash I think our market cap was actually significantly higher so so our price came down you know which is one of the things I think that attracted NetApp to the game so the interesting dynamic inside the company was that the NetApp offer was was kind of the first one so they were working with the data domain leadership and they were speaking with us EMC was more of a kind of unsolicited offer so there was less communication and I remember there was a morning I was at San Francisco Airport going out to meet a customer and Joe to Chi put out a full-page ad in a local newspaper and we were reading that and that was his way of communicating to the to the people a data domain saying he wants to welcome us into the family it was quite a moment well it sure was and of course you guys were fierce competitors data domain was fierce competitors with with EMC you know fighting for for the install base and then all of a sudden you know the cultures it's somehow work EMC was was very good at acquisitions and he made it work and they not active it was an outside observer but you were there you know Frank Sluman came in did it's kind of running the the data protection organization but a lot has changed since then hasn't it I mean back then you stored you know a little bit of data I think accounting of terabytes today we live in a petabyte scale world I could talk about what's changed well you know the scales and performance certainly has changed I think the data domain platform today is about a thousand times larger than it was when it first came to market and in fact when we were being bid on by NetApp and EMC we had a flagship product is the DD 690 you know behind the scenes we had a system that was coming out that was double that size and EMC nor Netta knew about that so once the deal closed they got to find out that our size had just doubled in our performance and doubled at the same time but you're right you kind of talked about the dynamics inside of EMC EMC had a very large data protection you know division they had avemar networker santaros v TLS they also had an OEM arrangement for a competing product with the data domain platform so it was really like you know I compared to going to Hogwarts right where you have all of these different houses and we came in with with data domain and and I think the thing that really the glue that really helped it come to get was Joe Tucci you know tapping Frank's Luqman on the shoulder as the leader to bring this together and taking what was the borough division and and reforming it as the BRS division and I think we came together very quickly as a team even though people came from all of these different backgrounds you know standing for these different products rich let me follow up on that because there's a lot of M&A activity going on right now and and not very many big M&A deals are ultimately successful it turns out so what you said a little bit about you know Joe and Frank you know coming together but what are some of the other attributes that you would say that made it work it actually did what everybody hopes on an acquisition which is take great technology put it into a big sales machine and watch it grow and grow I think part of it you know quite frankly just comes down to the product and being differentiated because there are a lot of products out there and and if you take a step back they have good things that they're doing but it's very hard to find a product that says hey you're doing something that even if you put the blueprints out there it's very hard for other people to follow in those footsteps and create a similar value proposition and I think I think in this case it was a differentiated product and it had a lot of energy of its own and and I think from an EMC perspective they just stood back and said let's take this momentum and and play it out and see how how far it can take itself unfortunately I think a lot of times they don't do that right a lot of times acquiring companies don't just take this great thing and kind of get out of the way and add the juice where they can but you try to to try to change it so that's a really nice statement on Joe to G and what he was able to accomplish yeah no he was fantastic for us and and his support was tremendous but also his you know delegation and and kind of seeing how this but you know kind of having a vision of how this business unit should be formed right I think what was was very prison and then now you're part of Dell so obviously Michael Dell big personality as well the Dell technology stories he's doing a great job of pulling all these pieces together and you know kind of reinvigorating the brand coming back out of the little little side bar you know make it private for a while and come back so I wonder if you can talk about that integration how's that going as you've gone now a couple of times well I think it's been very exciting for us because the one piece that EMC had always been lacking had been the the compute part of the picture and now we have really the ability to go in and talk about the entire stack with our customers and that's that's a lot more powerful than saying here is an element of it and then if you want to go and add compute to that perhaps you know put in your virtual or physical servers then you're gonna we're going to need to partner with somebody and you know it's it's just a much cleaner story from end to end right right so the big big change obviously that wasn't around ten years ago that is around today is public cloud right huge impact not only directly in in taking workloads to the public cloud but also I think much more importantly changing the way people think about provisioning thinking about the way people think about elastic capacity so as as the market has evolved the rise of AWS and any other public clouds how has that changed what you guys are doing how are you reacting to that house at a new opportunity you know to kind of grow the maturity of the core product yeah well the thing is we have taken a lot of approach you know that's been learning and evolving as well right so so you know developers and applications really figured out AWS and the public cloud early I think data protection has has followed along with a couple years of lag in terms of doing that so you know our perspective is we learned as well right so so 2015 2016 I think there was some resistance and I think ultimately when we started to follow those workloads into the cloud there was a little bit of a lift and shift what we've learned is that the architecture really matters when you get to the cloud so the efficient use of resources the ability to do things in a cloud like way to use for example object storage instead of block storage when when the case presents itself so we took our products and virtualize them and followed them into the cloud but we realized that just taking the on-premise version of the product and putting it in the cloud itself isn't enough right because at the end of the day the customer is paying for all the underlying resources and so if your architecture is an efficient from a cost perspective as well as a performance perspective it's not going to be a viable solution and so 2017-2018 we've really seen a big acceleration in our adoption in the cloud because we have adapted our architecture to be more cloud friendly and more cost-effective for our customers to deploy but it was a learning experience for sure you know and and I think we're continuing to learn and continue to develop in that space and there's a lot of opportunity ahead of us the other big change I think that's come that we see over and over and over is really data as an asset only as an asset but as a huge valuable asset that drives your business drives real lytx but then becomes actually something that drives your company value and I think we see that and the Facebook's of the world and the googles of the world of why they have these crazy high valuations relative to here to their revenue and their profits because they're getting value for the data alright great news for you right it used to be a sample the day of the day was a pain it was expensive to store I didn't want to keep it all now everyone wants all the data they want to analyze it in real time and they want to put it in a place where they can actually put multiple applications across that same data set to do all kinds of new analytics so again super opportunity for you guys people aren't storing any less data no absolutely yeah no the data amount being stored is definitely growing one of the things that we're seeing that that's this kind of pervasive is this idea of of really using the right data the right place the right time so accessibility to whether it is a data Lake or it is your protection copies or you know an instant access of your protection copies there's a lot of different thing customers are doing with data but it's no longer a one-size-fits-all proposition like it was back in the tape automation days where I'm just throwing all of this stuff into a box and and never accessing it again right so the dynamics are changing and continue to evolve I expect that if we have this conversation two or three years down the road we're going to see some amazing things happen in the next couple of years that and some of it we were not predicting now we're gonna find out as customer demand and as innovation guides us along right because then the other big piece is the media right we've talked about tapes and the original data domain was was in response to some issues with tape and we get spinning rust as everybody likes to call it and now of course flash so yeah again see change in terms of capability the cost is coming down it's no longer the super high-end thing just for super high value applications so very transfer transformative opportunity on the on the media side as well on the flashlight as well you hit on a couple of really key things data domain was very successful because it became viable and practical to displace tape automation and nobody was a fan of their tape automation environments and now I think we're gonna see that's that same shift you know spinning disk is right now being relegated to archival and backup purposes but we're gonna hit an inflection point very soon I think we're where every instance of spinning disk probably can be questioned and so we are actually doing the you know kind of getting ahead of that curve and coming out with all flash products as a choice for a customer so we'll still have spinning disk for some backup use cases but we'll also have you know be able to offer customers a choice of the data domain technology on an all flash set of platforms and that will give customers a chance to get out of the yeah that spinning disk business as well right good I wonder if I get what if I get chime in here I you guys were talking about the the technologies and the cloud and the architecture it's interesting it David the main really started out don't hate me for saying this but as a feature product and the key feature was data deduplication data domain had the best you had a lot of guys doing post process you had you know some guys trying to do server-side avemar itself for example but they domain really killed it with regard to data David II do and if this feature product became a platform and had an architecture people became as you know unicorn times 2 plus plus and so I wanted to ask you rich about that architecture and aware it can go you're talking about different media now beyond spinning disk you know it used to be just a kind of a dumb target you've now got integrated appliances you've got software that's integrated there so it's you know you talked about the scale and the capacity where do you see this architecture going I wonder if you could comment on yeah well I think a lot of that belongs in in the realm of the data management software that speaks to it and and by having a distributed ecosystem and having things like you know distributed segment processing so we can take data domains technology and extend it out into those data management activities because a lot of the what's happening in the market is as new workloads are coming into the market they're having their own methods and native tools built-in for data protection and to be able to leverage those and have a highly consolidated affect on the backend is still extremely valuable to our customers and you're right it was a differentiated product from a deduplication standpoint but really the feature was that I can keep my 30 60 or 90 days worth of copies that are separate from my primary copies so I putting them somewhere safe I can even put them under different governance from my primary storage or my primary application owners right and it's practical and feasible and and prior to that the only real way to do that was with tape automation deduplication has become more of a broader word itself and it goes beyond what data domain does so there's deduplication and primary storage but if you look at primary storage deduplication it's good but it's designed to help you reduce the use of primary storage by 2 or 3 times it doesn't touch on the 30 60 90 days of retention that data domain does so there the similar technologies and a common use of the word but but they're two different use cases that the the remains separate I think yeah and you know as a former practitioner the other you are I think a former customer the genius part of the genius of data domain was its ability to just plug in to existing processes yes you didn't have to change things up and so it was an easy in but but it's impressive that you've been able to keep that that architecture going I wanted to ask you about market share you aided them in has always had a sixty plus percent market share I think it's at sixty now but it's it's like the Cisco of purpose-built backhaul appliances you're able to sort of dominate that little segment of the market which keeps getting bigger what but now you've got a lot of new entrants you know on VC money pouring in a lot of noise in the marketplace I feel like you guys maybe a couple years ago took your eye off the wall and now you've got this renewed sense of a vigor you know maybe it was parked partly the acquisition but you know we've talked to Beth Phelan about this a number of times you've really refreshed the portfolio so so wonder if you can talk about that and my question is what gives you confidence that you can continue to maintain your dominance yeah that's a great question and things have really changed I think starting around 2014 we were having some internal conversations about things like simplification the consumerization of IT and and all of those those dollars that you're talking about are really being poured into companies that are trying to take a different approach they're going into the white space that we had kind of left open which was simplicity right if you if you look back 10 or 15 years and you look at the the data management and enterprise backup software space enterprise backup software has been complicated and as you add more use cases it has become even more complicated and the customer base is no longer tolerant of that that's something that that maybe 10 or 15 years ago that was kind of a badge of honor to be working with complex and people just don't have the time for that there's a lot of IT generalists and folks that are out there that don't want to go to training class you know you know five days or ten days out of the year to learn how to use a product so that was a really good thing that we're seeing in the marketplace in terms of making products simpler easier to use and more approachable with things like discoverable functionality we certainly have the you know put a lot of effort into going in that direction because we think that's the right direction but what gives me confidence is the underlying storage value proposition about efficiency and performance and scale is something that we've still think that we have a strong upper hand on and when it comes down to that you know we take cloud as an example our data reduction in the cloud we think allows a much lower cost to serve and you know the customer is going to pay for that cloud storage or that cloud compute regardless of which vendor they're trusting in terms of their their solutions so simple only goes so far we think we can get there with simple but we don't necessarily see our competition having the efficiencies scalability and and so forth that we've already had so that that's good that gives me a lot of confidence so when you talk to customers what's the big problem the big hairy problem that they're trying to solve in your space and how are you guys helping so I one of the two big problems I see is is really a lot of IT teams are confronted with they've got a digital transformation going on they've got a cloud strategy going on an IT isn't necessarily being invited to the table early enough or often enough to go ahead and help with that process so what you have is you a cloud team building applications bringing things online and then the data protection the backups the snapshots whatever they're doing to make sure that that data is safe is is a bit of an afterthought and it you know I think of DevOps and I think about the ops part and I've never really come across an application team that wanted to own the business responsibility for the risk of you know backups recovery replication and all of that and I think IT has a lot of established practices that would be good to inform how those things should be built so the number one thing that I'm talking to with my customers when we're talking about this whole you know tectonic shift and in the way things are being done is that IT and the digital transformation or the cloud team do need to speak early and often and proactively about how they approach data protection because they continue to need to have a strategy that evolves and make sure they keep themselves protected as they start moving these critical workloads into the cloud it's an age-old problem with backup and data protection people think of it as a back as a bolt-on is an afterthought and your point is right on it's got to be a fundamental part of any transformation it's just like security you can't bolt it on earth just doesn't scale yeah and it's very much like you know back in the day when open systems was just coming of age there was a lot of operational discipline that the mainframe teams had and the mid-range teams had but the open systems was the Wild West and eventually open systems learned and and and a lot of that you know was knowledge sharing about best practices and you know Mis became IT now IT is becoming you know DevOps and digital transformation we're seeing a lot of that same dynamic happening again and and you know my main point is just you know start those conversations and if you're on the IT side start those conversations proactively you might not be getting invited to the digital transformation party invite yourself rich has been quite a 10 years and and as I was just watching an Andy Jazzy interview if you think the last 10 years have been crazy you ain't seen nothing yet so you guys are in a great position to stay agile and I'm gonna steal your line that it's no longer an honor to work on complicated systems that's great yeah it's been great being here thanks for having me and looking forward to maybe coming back in ten years and seeing what changed so hopefully we won't wait 10 years so rich thanks for stopping by Dave thanks for checking in from Boston and it's great to see you as well thanks you guys thanks Dave thanks Jeff [Music]

>> live from Washington D. C. It's the Cube covering aws public sector summit DC brought to you by Amazon Web services. >> Welcome back, everyone to the cubes Live >> coverage of a ws public sector summit here in Washington D. C. I'm your >> host Rebecca Night, along with my co host, John >> Furrier. We're here with Cory Quinn, Cloud Economist The Duck Billed group and a cube host at large. Welcome. Welcome to our show. A medium >> at best, most days. But we'll see what happens when ever expanding. Someday I'll be a 10 x engineer, but not today. >> Right? Right. Exactly. >> Next host. Exactly. >> There we go, >> Cloud. Stand up on the side. We need to mention that >> Yes, generally more cloud improv. But no one believes that. It's off the cuff. So we smile, we nod, we roll with Tio. Yeah, no one wants to hear me sing in any form. >> I promise. Strapping So, Cory, you have been here. You are on the ground having great conversations with people here. 18,000 people at this summit Give us give our viewers a low down on the vibe. The energy What? What do you hear? Very different >> feeling in the commercial summits you're seeing. People are focusing on different parts of the story, and one thing I find amusing is talking to people who work in the public sector. Show up in their first response is, Oh, I'm so behind and then you go to the commercial summit. You talk to people who are doing bleeding edge things, and their response is, Oh, I'm so behind and everyone thinks that they're falling behind the curve and I'm >> not sure how >> much of that is a part of people just watching a technology. Events outpace them versus the ever increasing feature velocity. If they show on slide year over year over year, consistent growth and people feel like they're being left in the dust, it's it's overwhelming. It's drinking from a fire hose. And I don't think that that gets any easier when you're talking to someone in public sector where things generally move in longer planning cycles because they definitional have to, and I'd argue should, >> but you should help them, make them feel better and say, Don't worry. The private sector feels the same way. Not just everyone >> has these problems. That's that's the poor little challenge of this is everyone believes that if you go to the one magic company, their environment is going to be wonderful. They're adopting everything. It doesn't exist. I've gone into all of the typical tech companies you would expect and talk to people. And everyone wants you for three or four drinks into them, gets very honest and starts crying. What would its higher fire their own environment is? It says a lot of conference. We're going around. Here's how we built this amazing thing as a proof of concept is what the part they don't say or for this one small, constrained application. People are trying to solve business problems, not build perfect architecture. And that's okay. >> Yeah, process. They're not. They're not businesses, their agencies. As you said, they're like, slow as molasses when it comes to moving speed. And you could even see Andy Jazzy during his fireside Shep. He's already studying, laying the groundwork. Well, >> once you're in the >> cloud, here's how you know the adoption level so you can see that it's land not landing expand like the enterprise, which is still slow. It's land, get the adoption and then expand, So the public sector clearly has a lot of red tape. I mean, no doubt about it. >> That means anyone who'd argue that point >> chairman's like 1985. It's like, you know, hot tub time machine, you know, nightmare. But Andy Jazz, he also says on differently to heavy lifting is what they want to automate away. That's the dream. That's the That's the goal. Absolute. It's hard. This is the real challenge. Is getting the public sector adopted getting the adoption, your thoughts when what you're hearing people are they jumping in? They put a toe in the water, kicking the tires. As Andy said, >> all of the above and more. I think it's a very broad spectrum and they mentioned there. I think they were 28,000 or 12,000 non profit organizations that they wind up working with as customers and they all tend to have different velocities across the board as they go down that path. I think that the idea that there's one speed or you can even draw a quick to line summary of all the public sector is a bit of a Basile explanation. I see customers are sometimes constrained by planning cycles. There's always the policies and political aspects of things where if you wind up trying to speed things up, you're talking to some people who will not have a job. If you remove the undifferentiated heavy lifting because that's been their entire career, we're going to help you cut waste out of your budget. Well, that's a hard sell to someone who is incentivized based upon the size of the budget that they control it. You wind up with misaligned incentives, and it's a strange environment. But the same thing that I'm seeing across the corporate space is also happening in public sector. We're seeing people who are relatively concerned about where they're going to hire people from what those people look like, how they're going to transform their own organizations. Digital transformations, attired term. >> And it's like you have rosy colored glasses on too much. You're gonna miss the big picture. You gotta have a little bit of skepticism. I think to me governments always had that problem where I'm just gonna give up. I'm telling different. I can't get the outcome I want, because why even try? Right? I think now, with cloud what I hear Jazzy and Amazon saying is. Hey, at least you get some clear visibility on the first position of value, so there's some hope there, right? So I think that's why I'm seeing this adoption focus, because it's like they're getting the customers. For instance, like I'm a university. I could be a professor, but my credit card down my university customer, I got a couple instances of PC to so ding and another one to the 28,000 >> exactly number of customers is always a strange >> skeptical there. But now, for the first time, you, Khun got should go to a team saying, Hey, you know all that B s about not get the job done, you can get it with clouds. So it's gettable. Now it's attainable. It's not just aspirations. >> Movers really will make the difference. In the end, with the university customer's question, the people who were in that swing >> the tide can that be a generational shift, a deb ops mindset in government? That's a big question. >> Well, they have some advantages. For example, we took a look at all the Gulf cloud announcements and the keynote yesterday, and that must have been a super easy keynote to put together because they're just using the traditional Kino slides and reinvent 2014 because it takes time to get things certified as they moved through the entire pipeline process. And there's nothing inherently wrong with that. But the services that are going into come cloud or things that are tried and tested in a lot of other environments. There's an entire community out there. There's an established body of knowledge. So a lot of the path that government is walking down has already been from a technical perspective paid for them. >> I want to riff on an idea on to make a proposal with you here in real time. You're I think what we should do is make a proposal to the U. S. Government that we basically take equity in the agencies and then take them public. >> That's not a bad idea, absolutely not about commercialized. >> The entities create a stock option program, Cory, because listen, if I'm if I'm a talent, why would I gotta work for an agency when I could make three times Mohr get public and be rich, and that's the problem with talent. You walk around the expo for here. The booths are much smaller, and I didn't understand that at first, and then it clicked for me. If you want to sell services to government, you don't buy a bigger booth. You buy a Congress person and it turns out those air less expensive. That's how acquisitions tend to work in this space. So folks walking around or not, generally going to be the customers that buy things. People walking around in many cases are the talent and looking for more talent. And it does become extremely compelling to have those people leave public sector and go into private sector. In some cases where we'll pay you three times more and added bonus most days, this is America. After all, no one's shooting at you, so that does your >> cloud. Economists were kind of joking about your title, but if you think about it, there are economics involved. It's lower cost, faster, time to value. But what we're getting at is an incentive system. So you think fiscal monetary policy of incentives. So you know, Rebecca, this this This is the challenge that the policy guys gotta figure because the mechanisms to get stuff done is by the politicians or do this or do that. We're getting at something, really, to the heart of human beings, that mission of the mission of the agency or objective they're doing for the labor of love or money? Yes, Reed, why not create an incentive system that compensate? >> You think That's incentive system for taxpayers, though, too, in the sense of >> if I can see the trillions of dollars on the >> budget, a lot of what >> governments do shouldn't necessarily be for sale. I think the idea of citizen versus customer tends to be a very wide divergence, and I generally pushback on issues to attempt, I guess, convinced those into the same thing. It's you wind up with a very striated, almost an aristocracy Socratic society. >> I don't think that tends >> to lead anywhere. Good way. Everyone is getting political today for some reason. >> Well, I >> mean fireside chat to digital >> transformations. People process technology. You can superimpose that onto any environment where those public policy or whatever or national governments, the people, his issues there, processes, issues, technologies is each of one of them have their own challenge. Your thoughts on public sectors challenges opportunities. Four people process technology. >> You have to be mission driven for starters in order to get the people involved. As far as the processes go, there are inherently going to be limitations sometimes and easily observable in the form of different regulatory regimes that apply to these different workloads. And when we talk about the technology well, we're already seeing that that is becoming less of a gap over time. What used to be that o on ly we can secure a data center well enough from a physical security standpoint, there's a quote from the CIA that said on its worst day that cloud was cloud. Security was better than any on premises environment that they could build. And there's something to be said for that. Their economies of scale of like by >> the tech gaps going away. Almost zero yes. So if that OK, text, good check training fault of the people side. Absolute awareness competency processes a red tape automation opportunity. That could be. >> But this is also not to assume that the commercial world has unlock either. Where does the next generation come from? You talk to most senior cloud folks these days and most of us tend to have come up from working help desks being grumpy, you nexus in men's or you nexus movement because it's not like there's a second kind of those and we go up through a certain progression. Well, those jobs aren't there anymore. They've been automated away. The road that we walked is largely closed. Where does the next generation come from? I don't have a great answer. >> Talent question is a huge one. This is going to be the difference. Rebecca. We were riffing on this on our opening. >> It's the only one. >> Your thoughts. I mean, were you even hearing all this stuff and you've been researching this? What? Your thoughts. >> I think that we need to think more. I think tech companies need to think more broadly about where they're going to get this next generation of people, and they don't need to necessarily be people who have studied CS in school. Although, of course we need those people too. >> But the people with the bright, the creative, the expansive world views who are thinking about these problems and can learn >> the tech, I mean the tough guy, you know why >> block change you into a nice CEO and everyone gets >> rich, but I think when Jessie was saying today during his fireside, in the sense of we need to make sure that we're building tools, that >> you don't need to be a machine learning expert to deploy, you know we need to make simpler, more intuitive tools, and then that's really important here. >> Amazon does well in that environment about incentives. >> I think that >> one thing that the public sector offers that you don't often see in the venture start of world or corporate America or corporate anywhere, for that matter, is the ability to move beyond next quarter, planning the ability to look at long term projects like What >> does >> it take to wind up causing significant change across the world? Where is it take to build international space Station? You're not gonna be able to ship those things 180 days, no matter how efficiently you build things. And I think that the incentives and as you build them, have to start aligning with that. Otherwise you wind up with government trying to compete on compensation with the private sector. I don't think that works. I think you may have an opportunity to structure alignments around sentence in a very different life. >> It's an open item on the compensation. Until they agree, we'll watch. It was ideas. We'll see what tracks. But to me, in my opinion, what I think's gonna be killer for game game one here. This of this revolution is the people that come out of the woodwork because cloud attracts attract smart people and smart people are leaning into the government with cloud. It was the other way around before the cloud people, I don't want to get involved in government, and that was a big ding on government attracting qualified people. So I think Cloud is going to attract some smart people that want to help for the purpose and mission of whatever the outcome of that political or agency or government initiative with a cyber security there. People will care about this stuff who want the social equity not so much, >> Yeah, I think that's >> going to be a wild card. I think we're going to see like a new might in migration of talented people coming into quote assist government. That's a work for government to figure out how to be better at whatever the competition is and that is going to be I think the first lever of you start to see new names emerge. This person who just changed the organization over here become a hero Dev Ops mindset being applied to new environments. >> And we've seen that to some extent with the U. S. Digital service with 18 half where you have industry leaders from the commercial side moving into public sector and working in government for a time and then matriculating back into the public sector and the private sector, I think that there winds up being a lot of opportunity for more programs like that of scaling this stuff out >> and career change and career passer tissue. And there is this more fluid iti. As you're saying, >> I think that money isn't everything. You know. There's a lot of research that shows up to a certain threshold of income. You >> don't get that much happier. I don't know if Jeff >> basis is that much happier than us. I mean, >> we live in a little more bank and say, you know, >> you see the other side of it, too, is you build all these things together where you have okay. What? >> What is it >> that moves people? What do they care about. It's not just money, and I think that the old styled the old are very strict hierarchy within organizations where things are decided by tenure. Service is a bit of a problem if you have someone who works for. The EPA has been doing a deep dive cloud work for 10 years. There's nothing specific to the EPA about what that person has mastered. They shouldn't be able to laterally transition into the FDA, for example, >> Jackson Fireside Chat, Those interesting point about the fire phone that they talked about. And this is the transfer ability of skill sets and you getting at the thing that I will notice is that with Cloud attracts this interdisciplinary skill sets so you don't have to be just a coder. You khun, note how code works and be an architect, or you could be a change agent some somewhere else in an organization. So that's >> going to >> be interesting. That's not necessarily what how governments have always been siloed right? So can can these silos can these old ways of doing things. This is the question. This is why it's fun to cover this market. >> We're already >> seeing that in the public sector were being able to write code is rapidly transitioning into a very being very similar to I can speak French. Great. That's not a career in and of itself. That's a skill sad that unlocks of different right. A different career paths forward, but it doesn't wind up saving anything. It doesn't want a preserving its own modern aristocracy path forward or >> use the building an example. I don't have to learn how to pour concrete organ, right? The blueprints. Yes. So as we start getting into these systems conversations, you're going to start to see these different skill sets involved. Huge opportunity. If >> you're in >> school today and you're studying computer science, great learned something else, too, because the intersection between that and other spaces are where the knish opportunities are. That's the skill set of the future. That's where you're going to start seeing opportunities. Do not just succeed personally, but start to change the world. >> But Cory Great. Thanks for coming on and make an appearance and sharing what you found on the hallways. Good to see you. Coop con in Europe. Thanks for holding down the fort there. >> Of course I appreciate it. It was an absolute Bonner. >> Excellent. Great. Well, thank you so much. Thank >> you. I'm Rebecca Knight for John Furrier. Stay tuned. You are watching the Cube.

>> live from Las Vegas. It's the queue covering del Technologies. World twenty nineteen, brought to you by Del Technologies and its ecosystem partners. >> Okay, welcome back. Everyone's cubes. Live coverage. Day three wrap up of Del Technologies World twenty nineteen Java is Dave a lot. There's too many men on set one. We get set to over there blue set, White said. We got a lot of content. It's been a cube can, in guise of a canon of content firing into the digital sphere. Great gas. We had all the senior executive players Tech athletes. Adele Technology World. Michael Dell, Tom Sweet, Marius Haas, Howard Ally As we've had Pat Kelsey, rco v M were on the key partner in the family. They're of del technology world and we had the clients guys on who do alien where, as well as the laptops and the power machines. Um, we've had the power edge guys on. We talked about Hollywood. It's been a great run, but Dave, it's been ten years Stew. Remember, the first cube event we ever went to was DMC World in Boston. The chowder there he had and that was it wasn't slogan of of the show turning to the private cloud. Yeah, I think that was this Logan cheering to the private cloud that was twenty ten. >> Well, in twenty ten, it was Cloud Cloud Cloud Cloud Cloud twenty nineteen. It's all cloud now. That difference is back then it was like fake cloud and made up cloud and really was no substance to it. We really started to see stew, especially something that we've been talking about for years, which is substantially mimicking the public cloud on Prem. Now I know there are those who would say No, no, no, no, no. And Jessie. Probably in one of those that's not cloud. So there's still that dichotomy is a cloud. >> Well, Dave, if I could jump in on that one of the things that's really interesting is when Veum, where made that partnership with a ws It was the ripple through this ecosystem. Oh, what's that mean for Del you know Veum, wherein Del not working together Well, they set the model and they started rolling out bm where, and they took the learnings that they had. And they're bringing that data center as a service down to the Dell environment. So it's funny I always we always here, you know, eight of us, They're learning from their partners in there listening and everything like that. Well, you know, Dylan Veum where they've been listening, they've been learning to in this, and it brings into a little bit of equilibrium for me, that partnership and right, David, you said, you know that you could be that cloud washing discussion. And today it's, you know, we're talking about stacks that live in eight of us and Google and Microsoft. And now, in, you know, my hosted or service lighter or, you know, my own data center. If that makes sense, >> I mean, if you want to just simplify the high order bit, Dave Cloud. It's simply this Amazon's trying to be enterprised everyone, the enterprise, trying to claw Amazon, right? And so what? The what that basically means is it's all cloud. It's all a distributed computer system. OK, Scott McNealy had it right. The network is the computer. If you look at what's going on here, the traditional enterprise of vendors over decades of business model and technology, you know, had full stack solutions from mainframe many computers to PC the local area networking all cobble together wires it up creates applications, services. All that is completely being decimated by a new way to roll out storage, computing and networking is the same stuff. It's just being configured differently. Throw on massive computer power with Cloud and Moore's Law and Data and A. I U have a changing of the the architecture. But the end of the day the cloud is operating model of distributed computing. If you look at all the theories and pieces of computer science do and networking, all those paradigms are actually playing out in in the clouds. Everything from a IIE. In the eighties and nineties you got distributed networking and computing, but it's all one big computer. And Michael Dell, who was the master of the computer industry building PCs, looks at this. Probably leg. It's one big computer. You got a processor and subsystems. So you know this is what's interesting. Amazon has done that, and if they try to be like the enterprise, like the old way, they could fall into that trap. So if the enterprise stays in the enterprise, they know they're not going out. So I think it's interesting that I see the enterprise trying to like Amazon Amazon trying to get a price. So at the end of the day, whoever could build that system that's scalable the way I think Dell's doing, it's great. I was only scaleable using data for special. So it's a distributed computer. That's all that's going on in the world right now, and it's changing everything. Open source software is there. All that makes it completely different, and it's a huge opportunity. Whoever can crack the code on this, it's in the trillions and trillions of dollars. Total adjustable market >> well, in twenty ten we said that way, noted the gap. There's still a gap between what Amazon could do and what the on Prem guys Khun Dio, we'd argue, is a five years is seven years, maybe ten years, whatever it is. But at the time we said, if you recall, lookit, they got to close the gap. It's got to be good enough for I t to buy into it like we're starting to see that. But my view, it's still not cloud. It doesn't have to scale a cloud, doesn't have the economics cloud. When you peel the onion, it doesn't certainly doesn't have the SAS model and the consumption model of cloud nowhere close yet. Well, and you know, >> here's the drumbeat of innovation that we see from the public cloud. You know where we hit the shot to show this week, the public have allowed providers how many announcements that they probably had. Sure, there was a mega launch of announcements here, but the public lives just that regular cadence of their, you know, Public Cloud. See a CD. We're not quite there yet in this kind of environment, it's still what Amazon would say is. You put this in an environment and it's kind of frozen. Well, it's thought some, and it's now we can get data set. A service consumption model is something we can go. We're shifting in that model. It's easier to update things, but you know, how do I get access to the new features? But we're seeing that blurring of the line. I could start moving services that hybrid nature of the environment. We've talked a few times. We've been digging into that hybrid cloud taxonomy and some of the services to span because it's not public or private. It's now truly that hybrid and multi environment and customers are going to live in. And all of >> the questions Jonah's is good enough to hold serve >> well. I think the reality is is that you go back to twenty ten, the jury in the private cloud and it's enterprises almost ten years to figure out that it's real. And I think in that time frame Amazon is absolutely leveled. Everybody, we call that the tsunami. Microsoft quickly figures out that they got to get Cloud. They come in there, got a fast followers. Second, Google's trying to retool Oracle. I think Mr Bo completely get Ali Baba and IBM in there, so you got the whole cloud game happening. The problem of the enterprises is that there's no growth in terms of old school enterprise other than re consolidate in position for Cloud. My question to you guys is, Is there going to be true? True growth in the classic enterprise business or, well, all this SAS run on clouds. So, yes, if it's multi cloud or even hybrid for the reasons they talk about, that's not a lot of growth compared to what the cloud can offer. So again, I still haven't seen Dave the visibility in my mind that on premises growth is going to be massive compared to cloud. I mean, I think cloud is where Sassen lives. I think that's where the scale lives we have. How much scale can you do with consolidation? We >> are in a prolonged bull market that that started in twenty ten, and it's kind of hunger. In the tenth year of a of a decade of bull market, the enterprise market is cyclical, and it's, you know, at some point you're going to start to see a slowdown cloud. I mean, it's just a tiny little portion of the market is going to continue to gain share cloud can grow in a downturn. The no >> tell Motel pointed out on this, Michael Dell pointed out on the Cubans, as as those lieutenants, the is the consolidation of it is just that is a retooling to be cloud ready operationally. That's where hybrid comes in. So I think that realization has kicked in. But as enterprises aren't like, they're not like Google and Facebook. They're not really that fast, so So they've got to kind of get their act together on premises. That's why I think In the short term, this consolidation and new revitalisation is happening because they're retooling to be cloud ready. That is absolutely happen. But to say that's the massive growth studio >> now looked. It is. Dave pointed out that the way that there is more than the market growth is by gaining market share Share share are areas where Dell and Emcee didn't have large environment. You know, I spent ten years of DMC. I was a networking. I was mostly storage networking, some land connectivity for replication like srd Evan, like today at this show, I talked a lot of the telco people talk to the service of idle talk where the sd whan deny sirrah some of these pieces, they're really starting to do networking. That's the area where that software defined not s the end, but the only in partnership with cos like Big Switch. They're getting into that market, and they have such small market share their that there's huge up uplift to be able to dig into the giant. >> Okay, couple questions. What percent of Dell's ninety one billion today is multi cloud revenue. Great question. Okay, one percent. I mean, very small. Okay. Very small hero. Okay? And is that multi cloud revenue all incremental growth isat going to cannibalize the existing base? These? Well, these are the fundamentals weighs six local market that I'm talking to >> get into this. You led the defense of conversations. We had Tom Speed on the CFO and he nailed us. He said There's multiple levers to shareholder growth. Pay down the debt check. He's got to do that. You love that conversation. Margin expansion. Get the margins up. Use the client business to cover costs. As you said, increased go to market efficiency and leverage. The supply chain that's like their core >> fetrow of cash. And that all >> these. The one thing he said that was mind blowing to me is that no one gets the valuation of how valuable Del Technologies is. They're throwing off close to seven billion dollars in free cash flow free cash flow. Okay, so you can talk margin expansion all you want. That's great, but there got this huge cash flow coming in. You can't go out of business worth winning if you don't run out of cash >> in the market. When the market is good, these guys are it is good a position is anybody, and I would argue better position than anybody. The question on the table that I'm asking is, how long can it last? And if and when the market turns down and markets always cyclical we like again. We're in the tenth year of a bull market. I mean, it's someone >> unprecedented gel can use the war chest of the free cash flow check on these levers that they're talking about here, they're gonna have the leverage to go in during the downturn and then be the cost optimizer for great for customers. So right now, they're gonna be taking their medicine, creating this one common operating environment, which they have an advantage because they have all the puzzle pieces. You A Packer Enterprises doesn't have the gaping holes in the end to end. They can't address us, >> So that is a really good point that you're making now. So then the next question is okay. If and when the downturn turn comes, who's going to take advantage of it, who's going to come out stronger? >> I think Amazon is going to be continued to dominate, and as long as they don't fall into the enterprise trap of trying to be too enterprising, continue to operate their way for enterprises. I think jazz. He's got that covered. I think DEL Technologies is perfectly positioned toe leverage, the cash flow and the thing to do that. I think Cisco's got a great opportunity, and I think that's something that you know. You don't hear a lot of talk about the M where Cisco war happening. But Cisco has a network. They have a developer ecosystem just starting to get revitalized. That's an opportunity. So >> I got thoughts on Cisco, too. But one of things I want to say about Del being able to come out of that stronger. I keep saying I've said this a number of times and asked a lot of questions this week is the PC business is vital for Del. It's almost half the company's revenue. Maybe not quite, but it it's where the company started it. It sucks up a lot of corporate overhead. >> If Hewlett Packard did not spin out HP HP, they would be in the game. I think spinning that out was a huge mistake. I wrote about a publicly took a lot of heat for it, but you know I try to go along with the HPD focus. Del has proven bigger is better. HP has proven that smaller is not as leverage. And if it had the PC that bee have the mojo in gaming had the mojo in the edge, and Dale's got all the leverage to cross pollinate the front end and edge into the back and common cloud operate environment that is going to be an advantage. And that's going to something that will see Well, let me let me >> let me counter what you just said. I agree. You know this this minute. But the autonomy was the big mistake. Once hp autonomy, you know what Meg did was almost a fatal complete. They never should've bought autonomy >> makers. Levi Protector he was. So he was there. >> But she inherited that bag of rocks. And then what you gonna do with it? Okay, so that's why they had to spend out and did create shareholder value. If they had not purchased autonomy, then he would return much better shape, not to split it up. And they would be a much stronger competitor. >> And I share holder Pop. They had a pop on value. People made some cash with long game. I think that >> going toe peon base actually done pretty well for a first year holding a standalone PC company. So, but again, I think Del. With that leverage, assuming pieces, it's going to be really interesting. I don't know much about that market. You were loving that PC conversation, but the whole, you know, the new game or markets and and the new wayto work throwing an edge in there, I don't know is ej PC and edges that >> so the peanut butter. And so the big thing that Michael get the big thing, Michael Dell said on the Cube was We're not a conglomerate were an integrated company. And when you have an integrated company like this, with the tech the tech landscape shifting to their advantage, you have the ability to cross subsidize. So strategy game. Matt Baker was here we'd be talking about OK, I can cross subsidize margin. You've brought it up on the client side. Smaller margins, but it pays a lot of the corporate overhead. Absolutely. Then you got higher margin GMC business was, you know, those margins that's contributing. And so when you have this new configuration. You can cross, subsidize and move and shift, so I think that's a great advantage. I think that's undervalued in the market place. And I think, you know, I think Del stock price is, well, undervalue. Point out the numbers they got VM wear and their question is, What what point is? VM where blink and go All in on del technology stew. Orcas Remember that Gus was gonna partner. You don't think the phone was ringing off the hook in Palo Alto from their parties? What? What's this as your deal? So Vienna. There's gotta be the neutral party. Big problem. The opportunity. >> Well, look, if I'm a traditional historical partner of'Em are, it's not the Azure announcement that has me a little bit concerned because all of them partner with Microsoft to it is how tightly combined. Del and Veum, where are the emcee, always kept them in arms like now they're in the same. It's like Dave. They're blending it. It's like, you know Del, from a market cap standpoint, gets fifty cents on the dollar. VM wears a software company, and they get their multiples. Del is not a software company, but VM where well, people are. Well, if we can win that a little bit, maybe we could get that. >> Marty still Isn't it splendid? No, no, I think the strategy is absolutely right on. You have to go hard with VM wear and use it as a competitive weapon. But, Stuart, your point fifty cents and all, it's actually much worse than that. I mean the numbers. If you take out of'Em, wears the VM wear ownership, you take out the core debt and you look at the market value you're left with, like a billion dollars. Cordell is undervalued. Cordell is worth more than a billion or two billion dollars. Okay, so it's a really cheap way to buy Veum. Where Right that the Tom Sweet nailed this, he said. You know, basically, these company those the streets not used to tech companies having such big debt. But to your point, John, they're throwing off cash. So this company is undervalued, in my view. Now there's some risks associated with that, and that's why the investors of penalizing them for that debt there, penalizing him from Michael's ownership structure. You know, that's what this is, but >> a lack of understanding in my opinion. I think I think you're right. I just think they don't understand. Look at Dale and they think G You don't look a day Ellen Think distributed computing system with software, fill in those gaps and all that extra ten expansion. It's legit. I think they could go after new market opportunities as as a twos to us as the client business. I mean mere trade ins and just that's massive trillions of dollars. It's, I think I think that is huge. But I'm >> a bull. I'm a bull on the value of the company. I know >> guys most important developments. Del technology world. What's the big story that you think is coming out of the show here? >> Well, it's definitely, you know, the VM wear on del I mean, that is the big story, and it's to your point. It's Del basically saying we're going to integrate this. We're going to hard, we're going to go hard and you know Veum wear on Dell is a preferred solution. No doubt that is top for Dell and PacBell Singer said it. Veum wearing eight of us is the first and preferred solution. Those are the two primary vectors. They're going to drive hard and then Oh, yeah, we'Ll listen to customers Whatever else you want Google as you're fine, we're there. But those two vectors, they're going to Dr David >> build on that because we saw the, um we're building out of multi cloud strategy and what we have today is Del is now putting themselves in there as a first class citizen. Before it was like, Oh, we're doing VX rail and Anna sex and, you know, we'LL integrate all these pieces there, but infrastructure, infrastructure, infrastructure now it is. It is multi cloud. We want to see that the big table, >> right, Jeff, Jeff Clarke said, Why are you doing both? Let's just one strategy, one company. It's all one Cash registers that >> saying those heard that before. I think the biggest story to me is something that we've been seeing in the Cuban laud, you know, been Mom. This rant horizontally scaleable operating environment is the land grab and then vertically integrate with data into applications that allow each vertical industry leverage data for the kind of intimate, personalized experiences for user experiences in each industry. With oil and gas public sector, each one has got their own experiences that are unique. Data drives that, but the horizontal and tow an operating model when it's on premises hybrid or multi cloud is a huge land grab. And I think that is a major strategic win for Dell, and I think, as if no one challenges them on this. Dave, if HP doesn't go on, emanate change. If H h p e does not do it em in a complete changeover from strategy and pulling, filling their end to end, I think that going to be really hurting I think there's gonna be a tell sign and we'LL see, See who reacts and challenges Del on this in ten. And I think if they can pull it off without being contested, >> the only thing I would say that the only thing I would say that Jonah's you know, HP, you know very well I mean, they got a lot of loyal customers and is a huge market out there. So it's >> Steve. Look at economic. The economics are shifting in the new world. New use cases, new step function of user experiences. This is this is going to be new user experiences at new economic price points that's a business model. Innovation, loyal customers that's hard to sustain. They'Ll keep some clutching and grabbing, but everyone will move to the better mousetrap in the scenario. So the combination of that stability with software it's just this as a big market. >> So John twenty ten Little Table Back Corner, you know of'em See Dylan Blogger World double set. Beautiful says theatre of present lot of exchange and industry. But the partnership in support of this ecosystem. It's something that helped us along the way. >> You know, when we started doing this, Jeff came on board. The team has been amazing. We have been growing up and getting better every show. Small, incremental improvements here and there has been an amazing production, Amazing team all around us. But the support of the communities do this is has been a co creation project from day one. We love having this conversation's with smart people. Tech athletes make it unique. Make it organic, let the page stuff on on the other literature pieces go well. But here it's about conversations for four and with the community, and I think the community sponsorship has been part of funding mohr of it. You're seeing more cubes soon will be four sets of eight of US four sets of V M World four sets here. Global Partners sets I'm used to What have we missed? >> Yeah, it's phenomenal. You know, we're at a unique time in the industry and honored to be able to help documented with the two of you in the whole team. >> Dave, How it Elias sitting there giving him some kind of a victory lap because we've been doing this for ten years. He's been the one of the co captains of the integration. He says. There's a lot of credit. >> Yeah, Howard has had an amazing career. I I met him like literally decades ago, and he has always taken on the really hard jobs. I mean, that's I think, part of his secret success, because it's like he took on the integration he took on the services business at at AMC U members to when Joe did you say we're a product company? No services company. I was like, Give me services. Take it. >> It's been on the Cube ten years. Dave. He was. He was John away. He was on fire this week. I thought bad. Kelsey was phenomenal. >> Yeah, he's an amazing guest. Tom Tom Suite, You know, very strong moments. >> What's your favorite Cuban? I'LL never forget. Joe Tucci had my little camera out film and Joe Tucci, Anna. One of the sessions is some commentary in the hallway. >> Well, that was twenty ten, one of twenty eleven, I think one of my favorite twenty ten moments I go back to the first time we did. The cue was when you asked Joe Tucci, you know why a storage sexy. Remember that? >> A He never came on >> again. Ah, but that was a mean. If you're right, that was a cube mean all for the next couple of years. Remember, Tom Georges, we have because I'm not touching. That was >> so remember when we were critical of hybrid clouds like twenty, twelve, twenty, thirteen I go, Pat is a hybrid cloud, a halfway house to the final destination of public loud. He goes to a halfway house, three interviews. This was like the whole crowd was like, what just happened? Still favorite moment. >> Oh, gosh is a mean so money here, John. As you said, just such a community, love. You know, the people that we've had on for ten years and then, you know, took us, you know, three or four years to before we had Michael Dell on. Now he's a regular on our program with luminaries we've had on, you know, but yeah, I mean, twenty ten, you know, it's actually my last week working for him. See? So, Dave, thanks for popping me out. It's been a fun ride, and yeah, I mean, it's amazing to be able to talk to this whole community. >> Favorite moment was when we were at eighty bucks our first show. We're like, We still like hell on this. James Hamilton, Andy Jazzy Come on up, Very small show. Now it's a monster, David The Cube has had some good luck. Well, we've been on the right waves, and a lot of a lot of companies have sold their companies. Been part of Q comes when public Unicorns New Channel came on early on. No one understood that company. >> What I'm thrilled about to Jonah's were now a decade, and we're documenting a lot of the big waves. One of one of the most memorable moments for me was when you called me up. That said, Hey, we're doing a dupe world in New York. I got on a plane and went out. I landed in, like, two. Thirty in the morning. You met me. We did to dupe World. Nobody knew what to do was back then it became, like, the hottest thing going. Now nobody talks about her dupe. So we're seeing these waves and the Cube was able to document them. It's really >> a pleasure. The Cube can and we got the Cube studios sooner with cubes Stories with Cube Network too. Cue all the time, guys. Thanks. It's been a pleasure doing business with you here. Del Technologies shot out the letter. Chuck on the team. Sonia. Gabe. Everyone else, Guys. Great job. Excellent set. Good show. Closing down. Del Technologies rose two cubes coverage. Thanks for watching

>> Live from San Francisco. It's the cube covering IBM thing twenty nineteen brought to you by IBM. >> Run. Welcome back to the Cubes live coverage here in San Francisco. Mosconi North while you're here as part of our exclusive covers. The Cube for IBM think twenty nineteen, their annual conference of customers and employees coming together to set the agenda for the next year. For IBM and its ecosystem. I'm John for a student. Um, in day. Volonte and Lisa Martin co hosting all week This week. Four days of wall to wall coverage. Day two of our kind Really Day one of the show Kickoff. We're here ending out that day and just had the CEO's keynote, and we're going to a review and analysis. David's do. We had a lot of interviews. Coming up to this theme is pretty clear. It's a I cloud and everything else going underneath that classic development application. Developers, developers in general, making applications That's classic, but eyes the big story. And, like like Always Cloud and the promise of Where That's Going, which is hybrid and multi cloud Dave, You set on the keynote. Any surprises from Ginny Rometty? >> I wouldn't say there were any surprises. First of all, I like Jenny. I think she she's a great presenter. I'd like to hang out with their like we were kids. That was what I wanted to hang out with us. He's a time person. I think I would feel comfortable talking to, you know, sports or business. She looked good. She had a really nice, sharp white suit on. She's self deprecating. She was drinking Starbucks. You know, they're obviously a client of IBM. I got the best moment was when Jim White hearse came on stage. He said, It's great to be here So he was like, Yeah, given thirty four billion reasons why it's great to be here kind of thing, So that was pretty funny. And she had. She made the comment. We've been dating Red Hat for twenty years before we decided to get married. She was trying to make a case You normally in Jenny's presentation, she she makes a really solid, puts forth the solid premise and then sort of backs it up with her guests. Today, I thought her premise, which was we're entering Chapter two. It's all about scaling and embedding a I everywhere. It's about hybrid. It's about bringing mission critical APS, you know, move those forward. And she had a number of other lessons learned. I thought she laid it out, but I think it sort of missed the back end. I don't think they punctuated the tail end of Jenny's talk. The guests were great and they had guys on from Kaiser Permanente E. T. And they were very solid. Well, think they made the case as strong as the premises that she put forward. And you know, we could talk more about that. >> And Stewart see red hat on stage. We've been commenting. We've been analyzing the acquisition of Red Hat, big number, thirty four billion dollars critical point you guys talk about in your opening on day one, the leverage they need to get out of that. This is the Alamo for them with the cloud. In my opinion, IBM is a lot to bring to the bear in the cloud. They I anywhere telegraphs that they wanna have their stuff with containers and multiple clouds. They want to be positioned as a multi cloud company but still have their cloud, providing the power for the workload. That makes sense, right? Bm. This is their last stand. This is like, you know, the Alamo for them. They They need to make cloud work right now. Watson, move from a product or brand ballistically open step. Is it tied together? Stew your thoughts on open stack and how this fits into their narrative. >> So I think you mean open shift, right, John s o from red hat standpoint. Absolutely what they're doing. They are involved in open stack, but open stack. You got a small, >> but they're one of the few that are sanguine on Open, Zachary read. >> I mean, read had open shift. My bad >> way it absolutely. And it is complicated in the multi cloud world and lots of different pieces. We've had a number of conversations with the IBM people that have worked with side by side, red hat in the open source communities, IBM, no stranger to open source and a CZ we talked about in our open on yesterday. It's the developers is really what where IBM needs to go and where Red Hat has a bevy of them on DH John. What you said about Multi Cloud? Absolutely. It's if IBM thinks that buying Red hat will make them the Goebel Global player in Cloud. I think that's wrong, and I don't think that's what they're doing. When I wrote a block post when it came, and I said, Is this move going to radically change the cloud landscape? No. Can this acquisition radically change IBM and change the trajectory of where they fit into Multi cloud? Absolutely. So there's cultural differences. We had Ah, Stephanie sheriffs on who's a longtime IBM er who now runs the biggest business inside of Red Hat. And she talked about the passion of open source. This is not lip service. I've many friends that have worked for it. Had I've, you know, worked with them, partner with them and cover them for most of those twenty years on DH? Absolutely. You've got over ten thousand people that are passionate involved in communities on DH. When you talk about the developer world, you talk about the cloud native world. This is what you know. Really. Red Hat moment has been waiting. >> It was interesting. John and I would like one if you could comment on this is you hearing IBM? Jenny talked about Chapter two. She took a digital reinvention. Here's yet another company using the reinvent terminology. I think that's what sort of pointed she talked. About forty percent of the world is going to be private. Sixty percent is going to be public Cloud. The sort of that's the first time I've heard those that she said It's flipped if you're ah, regulated industry. But what do your thoughts on people essentially using and Amazons narrative on reinvention? >> Everyone's using Amazons narrative. Here's the bottom line. Amazon is winning impact large margins. I think the numbers airway skewed in the favor of the people trying to catch up. I think that's more of a game. If vacation by the analyst firms, Amazon is absolutely blowing away the competition when it comes to public loud. The only game at the table right now for the Oracle's, IBM, Sze and Microsoft and Google is the slow down the adoption of Amazon. And you see the cloud adoption of Amazon, whether it's in the government sector, which I think is more acute. And Mohr illustrative, the Jet I contract a ten billion dollar contract. That is a quote sole source deal. But it was bid as a multi source deal means anyone could bid on it. Well, guess what? That is a going to be an award and probably to Amazon as the sole winner because IBM doesn't have the certification. Nor does Microsoft notice Oracle. Nobody's got Amazons winning that, and that begs the argument. Can you use one cloud? And the answer is Yes, you can. If the APP worked, Load works best for it, and procurement does not decide output for the cloud. For example, if it's a Jet I contract, it's a military application. So, like a video game, would you want to play a video game and be lagging? Would you want our military to be lagging? Certainly, the D O d. Says no. So one cloud makes sense. If you're running office three sixty five, you want to use azure. So Microsoft has taken that, and their earnings have been phenomenal by specialising around their workloads. That makes sense for Azure, and they're catching up. IBM has an opportunity to do the same for their workload. The business workload. So aye, aye, anywhere is interesting to me. So I think this is a good bet. If they can pull it off, that's the strategy, and the world will go multi cloud, where certain clouds will be sold for the apple sole source for the workloads. That makes sense for those workload. So this is where the market's going, right? So this whole notion of there won't be multi class. It's going to be multi cloud and it's gonna winner, winner take most. And the game right now is to stop ama's. That is clearly the case, and you're seeing it in the bids you see in the customer base. And IBM is catching Oppa's fast as they can. They got the people and the technology. The question is, how much do they catch up and level up? Tamas on? >> Well, stew despite Jenny, you know, invoking the reinvent terminology, they're her. Kino was starkly different than what you would expect from an Amazon Kino. They may. She mentioned a couple of the announcements, Watson anywhere, which, by the way, is about time. It's about time that Watson ran on other people's clouds of it, which should have been a while ago and in hyper protect is the world's most secure cloud. But we don't have any really details on that. And then I'd be in business automation with Watson, and that was really it. I think it was by design not to give a big product pitch, you know, very non Steve jobs. Like very done, Andy Jazzy like which is all product product product. I mean, kind of surprising in a big show with all these customers. You think they'd be pitching, but I think their intent was to really be more content. Orient >> Well, So Dave, you know, goes back at the core. What is IBM's biggest business? IBM biggest businesses. So services. So I've done a number of interviews this week already talking about how IBM is helping with digital transformation, how they're helping people move to more agile and development for environments. You know, the multi cloud world. How do they know IBM has a long history with C. S, P s and M s peace? So they have large constituencies And sure, they have products. You know, great stuff talking about, You know, how do they have the best infrastructure to run your workloads and the strength that they haven't supercomputing in HPC. And how they can leverage that? Because IBM knows a thing or two about scale. But, you know, Dave, one of the questions I have for you is we've seen the big services organizations go through radical downsizing. You know, HP spun off their business. Del got rid of the Perot business. You know, IBM still is, you know, services. At its core, it is IBM built for the multi cloud cloud native. You know, Ai ai world, Or do they still need to go through some massive changes? >> Well, multi Cloud is complicated and complex. IBM does complicated services, you know, deal with complexity, but I still can't help but feel like, >> Well, I well, I thought, wouldn't comment on them. I think the services. If the Manual Services Professional Services dropped down, IBM has a great opportunity to move them to cloud based services, meaning I can write software. And this is where I think they have an advantage. They could really nail the business applications, which will become services, whether its domain expertise in a vertical. And I think this is their cloud opportunity. IBM could capture that they could take entirely new category of applications. Business applications and services, automate them with machine learning, automate them with cloud scale their cloud scale while making them portable on multiple clouds. So the notion of services will be the professional services classic your grandfather's services, too. Cloud based services at scale. >> Yeah, well, I think you're right. Look, that's one. IBM is biggest strengths, and Jenny did that acquisition. By the way. The PwC acquisition is one hundred thousand. People instantly brought IBM into that deep vertical industry expertise, and they're not going to give that up any time soon. And this so many opportunities to code. If I those services or that song you know, through software and make them repeatable services, I mean, they're at as a service. Business is one of the fastest growing parts of IBM, you know, revenue stream. So I don't see that going. Wait. All I do think there was a missed opportunity and maybe they can't talk about it for was some regulatory reason. They're just paranoid. But you had white hearse up on the stage. You just spent thirty four billion dollars. I would have liked to hurt Mohr about the rationale, even though we've heard it before. They did. You know, Jim and Jeannie did a tour there on all the big TV shows You're on Kramer. But I would have liked to heard sort of six months on what that rationale is and how they're going to help transform with this in this new chapter and what that role that red hat was going play, I thought it was a missed opportunity. >> Well, speculate on that. I think of things. Probably. They probably don't have their answer yet. IBM is very good on messaging. You know, they're pretty tight, but I think Arvin Krishna talked to assert this morning. On our first interview. He brought up the container ization and Coburn Eddie's trend. I think that's where red hat fits and melons and give them cloud Native developers in Enterprise Fortune one thousand. They also got the cloud native ecosystem behind that the C in C F etcetera. But Containers does for Legacy Container ization, and Cooper daddies really preserves legacy. It allows developers to essentially keep the old while bringing in the new and managing the life cycle of those applications, not a ribbon replace. This is an opportunity for IBM, and if I think the messaging folks and the product dies or probably figure out okay, how do we take the red hat and open shift and be cloud native and take all the goodness that comes in with cloud Native the new developers, the Devil Infrastructures code, make under the covers infrastructure programmable and is Rob Thomas pointed out, having horizontal data layer that enables new kinds of business services. So to me, container ization, it's kind of nerdy Cooper netease. But this is really a new linchpin to what could be a sea change for IBM in terms of revenue. Keeping the Legacy customs happy because then the pressure to move to Amazon goes away because I can say, Whoa, wait. If the question is, why adopt if customs have an answer for that that gives IBM time, This is what they want otherwise, cloud native worlds could move very, very fast. We've seen the velocity of the momentum, and I think that's a key move. >> I think your point about slowing down the Amazon momentum is a good one, and I want to talk about five things that Ginny said that lessons learned, she said. One. You can approach the world from outside in and focus on customer experience. Or you could do inside out, identify new ways to work and new work flows, you know, kind of driving change. The third lesson learned was You need a business platform fueled by data with invented A I. The fourth is you need an ai ai platform. And in the fifth is Rob Thomas is you can't have a eye without a word that you needed information, architecture, which, by the way, I believe it to be true. So those are business oriented discussions. It's not something that you necessarily here from Amazon there kind of chewy. There's the services component to all that. The big question I have is Well, Watson, be that ai ai platform. >> Yeah, I mean something, You know, I look at is why Doe I choose a platform and a partner. So we understand Amazon, you know, they want to be the leader and everything. They have a lot more services in anyone. But, you know, if I want data services, first cloud that comes to mind to me is Google. You know, Google has a real strength there, You know. Where does IBM have a leadership compared to Google business productivity? IBM has a lot of strength there, but Microsoft also has a place so you know, customers. If they're going to live, Multi cloud, they're going Teo in many ways go backto best of breed on DH. Therefore, where will IBM differentiate themselves from some of those? >> We have visibility down. It's clear now that the industry the fog is lifting, starting to see Cem clear lines of sight and a few major trends. And it's pretty clear on where the industry's going for the next ten years. Application developers at the top of the stack gonna build APS The infrastructures cloud cloud something multi cloud cloud, native infrastructures, code and data. And a I see that Amazon reinvent sage maker. You're seeing all the major innovations happening around APS using data power advice, cloud scale, that's it. Everything else to me is glue or some sort of fabric component. Or a piece of that distributed architecture and its cloud. Aye, aye, and an apple. >> A CZ. Dave is often said, it's the innovation sandwich of today. >> Yeah, well, so I guess the things I want to mention it because of me. There's been some high profile failed failures with Watson, But watching was trying to do some things that were not, you know, voice response to Alexa, you know, solve cancer, you know, world problems and so I think IBM is actually earned the right to be in the discussion, and the Red had acquisition gives IBM instant credibility in this game, especially in this a multi cloud game. >> Well, they got me. They have the right to be the zillions of customers. They have a lot of a lot of business model innovations with that that their customers are innovating on. And if they keep the cloud innovate, they gotta match the specs. Specs of the cloud. They gotta be there with Cloud. If they don't make the cloud work, they're going to be subservient to the other clouds. They have to make it in the top three. This is clear. Hey, I think I think we're working a lot of experience and data. I think Watson kind of finding his home is a brand's natural fit. Got a portfolio of data? I think IBM will do very well in the data front. It's the cloud game that they got a really sure up. They got to make sure that IBM cloud conserved. They're custom, >> but the good news is there is there. In the game we saw HPD tried to get into HPD, tried to get the cloud it failed. Cisco, for a while, was trying to get with Sawyer. AMC make of numerous attempts. VM were made, made numerous attempts. IBM spent two billion dollars in software. They they they've got a cloud. You know, they've transformed what was essentially a bare metal hosting platform, you know, into a cloud. They've jammed all there as a service products in there. They're SAS portfolio. So there, at least in the game and, you know, again, I've said often, I think they're very Oracle like it's not the biggest cloud. It's not going to scale to the Amazon levels, but they've got a cloud, and it's a key part of the strategy. >> Innovation Sandwich applications Cloud What data? In the middle of a I. That's the formula, David said on the Q beer. All right day to coverage for the Cuba. Four days were here in the lobby of Mosconi North, part of the new refurbished Mosconi Center in San Francisco. Howard Street's closed. It feels like Salesforce. Dreamforce event. Big event in San Francisco. I'm John First Amendment Dave along. They were here for four days Day, two of four days of coverage for IBM think back tomorrow. Thanks for watching.