>> Announcer: From theCUBE studios in Palo Alto in Boston, bringing you data-driven insights from theCUBE and ETR. This is "Breaking Analysis" with Dave Vellante. >> The rapid pace of cloud adoption has changed the way organizations approach cybersecurity. Specifically, the cloud is increasingly becoming the first line of cyber defense. As such, along with communicating to the board and creating a security aware culture, the chief information security officer must ensure that the shared responsibility model is being applied properly. Meanwhile, the DevSecOps team has emerged as the critical link between strategy and execution, while audit becomes the free safety, if you will, in the equation, i.e., the last line of defense. Hello, and welcome to this week's, we keep on CUBE Insights, powered by ETR. In this "Breaking Analysis", we'll share the latest data on hyperscale, IaaS, and PaaS market performance, along with some fresh ETR survey data. And we'll share some highlights and the puts and takes from the recent AWS re:Inforce event in Boston. But first, the macro. It's earning season, and that's what many people want to talk about, including us. As we reported last week, the macro spending picture is very mixed and weird. Think back to a week ago when SNAP reported. A player like SNAP misses and the Nasdaq drops 300 points. Meanwhile, Intel, the great semiconductor hope for America misses by a mile, cuts its revenue outlook by 15% for the year, and the Nasdaq was up nearly 250 points just ahead of the close, go figure. Earnings reports from Meta, Google, Microsoft, ServiceNow, and some others underscored cautious outlooks, especially those exposed to the advertising revenue sector. But at the same time, Apple, Microsoft, and Google, were, let's say less bad than expected. And that brought a sigh of relief. And then there's Amazon, which beat on revenue, it beat on cloud revenue, and it gave positive guidance. The Nasdaq has seen this month best month since the isolation economy, which "Breaking Analysis" contributor, Chip Symington, attributes to what he calls an oversold rally. But there are many unknowns that remain. How bad will inflation be? Will the fed really stop tightening after September? The Senate just approved a big spending bill along with corporate tax hikes, which generally don't favor the economy. And on Monday, August 1st, the market will likely realize that we are in the summer quarter, and there's some work to be done. Which is why it's not surprising that investors sold the Nasdaq at the close today on Friday. Are people ready to call the bottom? Hmm, some maybe, but there's still lots of uncertainty. However, the cloud continues its march, despite some very slight deceleration in growth rates from the two leaders. Here's an update of our big four IaaS quarterly revenue data. The big four hyperscalers will account for $165 billion in revenue this year, slightly lower than what we had last quarter. We expect AWS to surpass 83 billion this year in revenue. Azure will be more than 2/3rds the size of AWS, a milestone from Microsoft. Both AWS and Azure came in slightly below our expectations, but still very solid growth at 33% and 46% respectively. GCP, Google Cloud Platform is the big concern. By our estimates GCP's growth rate decelerated from 47% in Q1, and was 38% this past quarter. The company is struggling to keep up with the two giants. Remember, both GCP and Azure, they play a shell game and hide the ball on their IaaS numbers, so we have to use a survey data and other means of estimating. But this is how we see the market shaping up in 2022. Now, before we leave the overall cloud discussion, here's some ETR data that shows the net score or spending momentum granularity for each of the hyperscalers. These bars show the breakdown for each company, with net score on the right and in parenthesis, net score from last quarter. lime green is new adoptions, forest green is spending up 6% or more, the gray is flat, pink is spending at 6% down or worse, and the bright red is replacement or churn. Subtract the reds from the greens and you get net score. One note is this is for each company's overall portfolio. So it's not just cloud. So it's a bit of a mixed bag, but there are a couple points worth noting. First, anything above 40% or 40, here as shown in the chart, is considered elevated. AWS, as you can see, is well above that 40% mark, as is Microsoft. And if you isolate Microsoft's Azure, only Azure, it jumps above AWS's momentum. Google is just barely hanging on to that 40 line, and Alibaba is well below, with both Google and Alibaba showing much higher replacements, that bright red. But here's the key point. AWS and Azure have virtually no churn, no replacements in that bright red. And all four companies are experiencing single-digit numbers in terms of decreased spending within customer accounts. People may be moving some workloads back on-prem selectively, but repatriation is definitely not a trend to bet the house on, in our view. Okay, let's get to the main subject of this "Breaking Analysis". TheCube was at AWS re:Inforce in Boston this week, and we have some observations to share. First, we had keynotes from Steven Schmidt who used to be the chief information security officer at Amazon on Web Services, now he's the CSO, the chief security officer of Amazon. Overall, he dropped the I in his title. CJ Moses is the CISO for AWS. Kurt Kufeld of AWS also spoke, as did Lena Smart, who's the MongoDB CISO, and she keynoted and also came on theCUBE. We'll go back to her in a moment. The key point Schmidt made, one of them anyway, was that Amazon sees more data points in a day than most organizations see in a lifetime. Actually, it adds up to quadrillions over a fairly short period of time, I think, it was within a month. That's quadrillion, it's 15 zeros, by the way. Now, there was drill down focus on data protection and privacy, governance, risk, and compliance, GRC, identity, big, big topic, both within AWS and the ecosystem, network security, and threat detection. Those are the five really highlighted areas. Re:Inforce is really about bringing a lot of best practice guidance to security practitioners, like how to get the most out of AWS tooling. Schmidt had a very strong statement saying, he said, "I can assure you with a 100% certainty that single controls and binary states will absolutely positively fail." Hence, the importance of course, of layered security. We heard a little bit of chat about getting ready for the future and skating to the security puck where quantum computing threatens to hack all of the existing cryptographic algorithms, and how AWS is trying to get in front of all that, and a new set of algorithms came out, AWS is testing. And, you know, we'll talk about that maybe in the future, but that's a ways off. And by its prominent presence, the ecosystem was there enforced, to talk about their role and filling the gaps and picking up where AWS leaves off. We heard a little bit about ransomware defense, but surprisingly, at least in the keynotes, no discussion about air gaps, which we've talked about in previous "Breaking Analysis", is a key factor. We heard a lot about services to help with threat detection and container security and DevOps, et cetera, but there really wasn't a lot of specific talk about how AWS is simplifying the life of the CISO. Now, maybe it's inherently assumed as AWS did a good job stressing that security is job number one, very credible and believable in that front. But you have to wonder if the world is getting simpler or more complex with cloud. And, you know, you might say, "Well, Dave, come on, of course it's better with cloud." But look, attacks are up, the threat surface is expanding, and new exfiltration records are being set every day. I think the hard truth is, the cloud is driving businesses forward and accelerating digital, and those businesses are now exposed more than ever. And that's why security has become such an important topic to boards and throughout the entire organization. Now, the other epiphany that we had at re:Inforce is that there are new layers and a new trust framework emerging in cyber. Roles are shifting, and as a direct result of the cloud, things are changing within organizations. And this first hit me in a conversation with long-time cyber practitioner and Wikibon colleague from our early Wikibon days, and friend, Mike Versace. And I spent two days testing the premise that Michael and I talked about. And here's an attempt to put that conversation into a graphic. The cloud is now the first line of defense. AWS specifically, but hyperscalers generally provide the services, the talent, the best practices, and automation tools to secure infrastructure and their physical data centers. And they're really good at it. The security inside of hyperscaler clouds is best of breed, it's world class. And that first line of defense does take some of the responsibility off of CISOs, but they have to understand and apply the shared responsibility model, where the cloud provider leaves it to the customer, of course, to make sure that the infrastructure they're deploying is properly configured. So in addition to creating a cyber aware culture and communicating up to the board, the CISO has to ensure compliance with and adherence to the model. That includes attracting and retaining the talent necessary to succeed. Now, on the subject of building a security culture, listen to this clip on one of the techniques that Lena Smart, remember, she's the CISO of MongoDB, one of the techniques she uses to foster awareness and build security cultures in her organization. Play the clip >> Having the Security Champion program, so that's just, it's like one of my babies. That and helping underrepresented groups in MongoDB kind of get on in the tech world are both really important to me. And so the Security Champion program is purely purely voluntary. We have over 100 members. And these are people, there's no bar to join, you don't have to be technical. If you're an executive assistant who wants to learn more about security, like my assistant does, you're more than welcome. Up to, we actually, people grade themselves when they join us. We give them a little tick box, like five is, I walk on security water, one is I can spell security, but I'd like to learn more. Mixing those groups together has been game-changing for us. >> Now, the next layer is really where it gets interesting. DevSecOps, you know, we hear about it all the time, shifting left. It implies designing security into the code at the dev level. Shift left and shield right is the kind of buzz phrase. But it's getting more and more complicated. So there are layers within the development cycle, i.e., securing the container. So the app code can't be threatened by backdoors or weaknesses in the containers. Then, securing the runtime to make sure the code is maintained and compliant. Then, the DevOps platform so that change management doesn't create gaps and exposures, and screw things up. And this is just for the application security side of the equation. What about the network and implementing zero trust principles, and securing endpoints, and machine to machine, and human to app communication? So there's a lot of burden being placed on the DevOps team, and they have to partner with the SecOps team to succeed. Those guys are not security experts. And finally, there's audit, which is the last line of defense or what I called at the open, the free safety, for you football fans. They have to do more than just tick the box for the board. That doesn't cut it anymore. They really have to know their stuff and make sure that what they sign off on is real. And then you throw ESG into the mix is becoming more important, making sure the supply chain is green and also secure. So you can see, while much of this stuff has been around for a long, long time, the cloud is accelerating innovation in the pace of delivery. And so much is changing as a result. Now, next, I want to share a graphic that we shared last week, but a little different twist. It's an XY graphic with net score or spending velocity in the vertical axis and overlap or presence in the dataset on the horizontal. With that magic 40% red line as shown. Okay, I won't dig into the data and draw conclusions 'cause we did that last week, but two points I want to make. First, look at Microsoft in the upper-right hand corner. They are big in security and they're attracting a lot of dollars in the space. We've reported on this for a while. They're a five-star security company. And every time, from a spending standpoint in ETR data, that little methodology we use, every time I've run this chart, I've wondered, where the heck is AWS? Why aren't they showing up there? If security is so important to AWS, which it is, and its customers, why aren't they spending money with Amazon on security? And I asked this very question to Merrit Baer, who resides in the office of the CISO at AWS. Listen to her answer. >> It doesn't mean don't spend on security. There is a lot of goodness that we have to offer in ESS, external security services. But I think one of the unique parts of AWS is that we don't believe that security is something you should buy, it's something that you get from us. It's something that we do for you a lot of the time. I mean, this is the definition of the shared responsibility model, right? >> Now, maybe that's good messaging to the market. Merritt, you know, didn't say it outright, but essentially, Microsoft they charge for security. At AWS, it comes with the package. But it does answer my question. And, of course, the fact is that AWS can subsidize all this with egress charges. Now, on the flip side of that, (chuckles) you got Microsoft, you know, they're both, they're competing now. We can take CrowdStrike for instance. Microsoft and CrowdStrike, they compete with each other head to head. So it's an interesting dynamic within the ecosystem. Okay, but I want to turn to a powerful example of how AWS designs in security. And that is the idea of confidential computing. Of course, AWS is not the only one, but we're coming off of re:Inforce, and I really want to dig into something that David Floyer and I have talked about in previous episodes. And we had an opportunity to sit down with Arvind Raghu and J.D. Bean, two security experts from AWS, to talk about this subject. And let's share what we learned and why we think it matters. First, what is confidential computing? That's what this slide is designed to convey. To AWS, they would describe it this way. It's the use of special hardware and the associated firmware that protects customer code and data from any unauthorized access while the data is in use, i.e., while it's being processed. That's oftentimes a security gap. And there are two dimensions here. One is protecting the data and the code from operators on the cloud provider, i.e, in this case, AWS, and protecting the data and code from the customers themselves. In other words, from admin level users are possible malicious actors on the customer side where the code and data is being processed. And there are three capabilities that enable this. First, the AWS Nitro System, which is the foundation for virtualization. The second is Nitro Enclaves, which isolate environments, and then third, the Nitro Trusted Platform Module, TPM, which enables cryptographic assurances of the integrity of the Nitro instances. Now, we've talked about Nitro in the past, and we think it's a revolutionary innovation, so let's dig into that a bit. This is an AWS slide that was shared about how they protect and isolate data and code. On the left-hand side is a classical view of a virtualized architecture. You have a single host or a single server, and those white boxes represent processes on the main board, X86, or could be Intel, or AMD, or alternative architectures. And you have the hypervisor at the bottom which translates instructions to the CPU, allowing direct execution from a virtual machine into the CPU. But notice, you also have blocks for networking, and storage, and security. And the hypervisor emulates or translates IOS between the physical resources and the virtual machines. And it creates some overhead. Now, companies like VMware have done a great job, and others, of stripping out some of that overhead, but there's still an overhead there. That's why people still like to run on bare metal. Now, and while it's not shown in the graphic, there's an operating system in there somewhere, which is privileged, so it's got access to these resources, and it provides the services to the VMs. Now, on the right-hand side, you have the Nitro system. And you can see immediately the differences between the left and right, because the networking, the storage, and the security, the management, et cetera, they've been separated from the hypervisor and that main board, which has the Intel, AMD, throw in Graviton and Trainium, you know, whatever XPUs are in use in the cloud. And you can see that orange Nitro hypervisor. That is a purpose-built lightweight component for this system. And all the other functions are separated in isolated domains. So very strong isolation between the cloud software and the physical hardware running workloads, i.e., those white boxes on the main board. Now, this will run at practically bare metal speeds, and there are other benefits as well. One of the biggest is security. As we've previously reported, this came out of AWS's acquisition of Annapurna Labs, which we've estimated was picked up for a measly $350 million, which is a drop in the bucket for AWS to get such a strategic asset. And there are three enablers on this side. One is the Nitro cards, which are accelerators to offload that wasted work that's done in traditional architectures by typically the X86. We've estimated 25% to 30% of core capacity and cycles is wasted on those offloads. The second is the Nitro security chip, which is embedded and extends the root of trust to the main board hardware. And finally, the Nitro hypervisor, which allocates memory and CPU resources. So the Nitro cards communicate directly with the VMs without the hypervisors getting in the way, and they're not in the path. And all that data is encrypted while it's in motion, and of course, encryption at rest has been around for a while. We asked AWS, is this an, we presumed it was an Arm-based architecture. We wanted to confirm that. Or is it some other type of maybe hybrid using X86 and Arm? They told us the following, and quote, "The SoC, system on chips, for these hardware components are purpose-built and custom designed in-house by Amazon and Annapurna Labs. The same group responsible for other silicon innovations such as Graviton, Inferentia, Trainium, and AQUA. Now, the Nitro cards are Arm-based and do not use any X86 or X86/64 bit CPUs. Okay, so it confirms what we thought. So you may say, "Why should we even care about all this technical mumbo jumbo, Dave?" Well, a year ago, David Floyer and I published this piece explaining why Nitro and Graviton are secret weapons of Amazon that have been a decade in the making, and why everybody needs some type of Nitro to compete in the future. This is enabled, this Nitro innovations and the custom silicon enabled by the Annapurna acquisition. And AWS has the volume economics to make custom silicon. Not everybody can do it. And it's leveraging the Arm ecosystem, the standard software, and the fabrication volume, the manufacturing volume to revolutionize enterprise computing. Nitro, with the alternative processor, architectures like Graviton and others, enables AWS to be on a performance, cost, and power consumption curve that blows away anything we've ever seen from Intel. And Intel's disastrous earnings results that we saw this past week are a symptom of this mega trend that we've been talking about for years. In the same way that Intel and X86 destroyed the market for RISC chips, thanks to PC volumes, Arm is blowing away X86 with volume economics that cannot be matched by Intel. Thanks to, of course, to mobile and edge. Our prediction is that these innovations and the Arm ecosystem are migrating and will migrate further into enterprise computing, which is Intel's stronghold. Now, that stronghold is getting eaten away by the likes of AMD, Nvidia, and of course, Arm in the form of Graviton and other Arm-based alternatives. Apple, Tesla, Amazon, Google, Microsoft, Alibaba, and others are all designing custom silicon, and doing so much faster than Intel can go from design to tape out, roughly cutting that time in half. And the premise of this piece is that every company needs a Nitro to enable alternatives to the X86 in order to support emergent workloads that are data rich and AI-based, and to compete from an economic standpoint. So while at re:Inforce, we heard that the impetus for Nitro was security. Of course, the Arm ecosystem, and its ascendancy has enabled, in our view, AWS to create a platform that will set the enterprise computing market this decade and beyond. Okay, that's it for today. Thanks to Alex Morrison, who is on production. And he does the podcast. And Ken Schiffman, our newest member of our Boston Studio team is also on production. Kristen Martin and Cheryl Knight help spread the word on social media and in the community. And Rob Hof is our editor in chief over at SiliconANGLE. He does some great, great work for us. Remember, all these episodes are available as podcast. Wherever you listen, just search "Breaking Analysis" podcast. I publish each week on wikibon.com and siliconangle.com. Or you can email me directly at David.Vellante@siliconangle.com or DM me @dvellante, comment on my LinkedIn post. And please do check out etr.ai for the best survey data in the enterprise tech business. This is Dave Vellante for theCUBE Insights, powered by ETR. Thanks for watching. Be well, and we'll see you next time on "Breaking Analysis." (upbeat theme music)

>> From theCUBE Studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is a CUBE Conversation. (smooth music) >> Hi, I'm Stu Miniman, and welcome to this special exclusive presentation from theCUBE. We're digging into Pensando and their Future Proof Your Enterprise event. To help kick things off, welcoming in a friend of the program, Scott Raynovich. He is the principal analyst at Futuriom coming to us from Montana. I believe first time we've had a guest on the program in the state of Montana, so Scott, thanks so much for joining us. >> Thanks, Stu, happy to be here. >> All right, so we're going to dig a lot into Pensando. They've got their announcement with Hewlett Packard Enterprise. Might help if we give a little bit of background, and definitely I want Scott and I to talk a little bit about where things are in the industry, especially what's happening in networking, and how some of the startups are helping to impact what's happening on the market. So for those that aren't familiar with Pensando, if you followed networking I'm sure you are familiar with the team that started them, so they are known, for those of us that watch the industry, as MPLS, which are four people, not to be confused with the protocol MPLS, but they had very successfully done multiple spin-ins for Cisco, Andiamo, Nuova and Insieme, which created Fibre Channel switches, the Cisco UCS, and the ACI product line, so multiple generations to the Nexus, and Pensando is their company. They talk about Future Proof Your Enterprise is the proof point that they have today talking about the new edge. John Chambers, the former CEO of Cisco, is the chairman of Pensando. Hewlett Packard Enterprise is not only an investor, but also a customer in OEM piece of this solution, and so very interesting piece, and Scott, I want to pull you into the discussion. The waves of technology, I think, the last 10, 15 years in networking, a lot it has been can Cisco be disrupted? So software-defined networking was let's get away from hardware and drive towards more software. Lots of things happening. So I'd love your commentary. Just some of the macro trends you're seeing, Cisco's position in the marketplace, how the startups are impacting them. >> Sure, Stu. I think it's very exciting times right now in networking, because we're just at the point where we kind of have this long battle of software-defined networking, like you said, really pushed by the startups, and there's been a lot of skepticism along the way, but you're starting to see some success, and the way I describe it is we're really on the third generation of software-defined networking. You have the first generation, which was really one company, Nicira, which VMware bought and turned into their successful NSX product, which is a virtualized networking solution, if you will, and then you had another round of startups, people like Big Switch and Cumulus Networks, all of which were acquired in the last year. Big Switch went to Arista, and Cumulus just got purchased by... Who were they purchased by, Stu? >> Purchased by Nvidia, who interestingly enough, they just picked up Mellanox, so watching Nvidia build out their stack. >> Sorry, I was having a senior moment. It happens to us analysts. (chuckling) But yeah, so Nvidia's kind of rolling up these data center and networking plays, which is interesting because Nvidia is not a traditional networking hardware vendor. It's a chip company. So what you're seeing is kind of this vision of what they call in the industry disaggregation. Having the different components sold separately, and then of course Cisco announced the plan to roll out their own chip, and so that disaggregated from the network as well. When Cisco did that, they acknowledged that this is successful, basically. They acknowledged that disaggregation is happening. It was originally driven by the large public cloud providers like Microsoft Azure and Amazon, which started the whole disaggregation trend by acquiring different components and then melding it all together with software. So it's definitely the future, and so there's a lot of startups in this area to watch. I'm watching many of them. They include ArcOS, which is a exciting new routing vendor. DriveNets, which is another virtualized routing vendor. This company Alkira, which is going to do routing fully in the cloud, multi-cloud networking. Aviatrix, which is doing multi-cloud networking. All these are basically software companies. They're not pitching hardware as part of their value add, or their integrated package, if you will. So it's a different business model, and it's going to be super interesting to watch, because I think the third generation is the one that's really going to break this all apart. >> Yeah, you brought up a lot of really interesting points there, Scott. That disaggregation, and some of the changing landscape. Of course that more than $1 billion acquisition of Nicira by VMware caused a lot of tension between VMware and Cisco. Interesting. I think back when to Cisco created the UCS platform it created a ripple effect in the networking world also. HP was a huge partner of Cisco's before UCS launched, and not long after UCS launched HP stopped selling Cisco gear. They got heavier into the networking component, and then here many years later we see who does the MPLS team partner with when they're no longer part of Cisco, and Chambers is no longer the CEO? Well, it's HPE front and center there. You're going to see John Chambers at HPE Discover, so it was a long relationship and change. And from the chip companies, Intel, of course, has built a sizeable networking business. We talked a bit about Mellanox and the acquisitions they've done. One you didn't mention but caused a huge impact in the industry, and something that Pensando's responding to is Amazon, but Annapurna Labs, and Annapurna Labs, a small Israeli company, and really driving a lot of the innovation when it comes to compute and networking at Amazon. The Graviton, Compute, and Nitro is what powers their Outposts solutions, so if you look at Amazon, they buy lots of pieces. It's that mixture of hardware and software. In early days people thought that they just bought kind of off-the-shelf white boxes and did it cheap, but really we see Amazon really hyper optimizes what they're doing. So Scott, let's talk a little bit about Pensando if we can. Amazon with the Nitro solutions built to Outposts, which is their hybrid solution, so the same stack that they put in Amazon they can now put in customers' data center. What Pensando's positioning is well, other cloud providers and enterprise, rather than having to buy something from Amazon, we're going to enable that. So what do you think about what you've seen and heard from Pensando, and what's that need in the market for these type of solutions? >> Yes, okay. So I'm glad you brought up Outposts, because I should've mentioned this next trend. We have, if you will, the disaggregated open software-based networking which is going on. It started in the public cloud, but then you have another trend taking hold, which is the so-called edge of the network, which is going to be driven by the emergence of 5G, and the technology called CBRS, and different wireless technologies that are emerging at the so-called edge of the network, and the purpose of the edge, remember, is to get closer to the customer, get larger bandwidth, and compute, and storage closer to the customer, and there's a lot of people excited about this, including the public cloud providers, Amazon's building out their Outposts, Microsoft has an Edge stack, the Azure Edge Stack that they've built. They've acquired a couple companies for $1 billion. They acquired Metaswitch, they acquired Affirmed Networks, and so all these public cloud providers are pushing their cloud out to the edge with this infrastructure, a combination of software and hardware, and that's the opportunity that Pensando is going after with this Outposts theme, and it's very interesting, Stu, because the coopetition is very tenuous. A lot of players are trying to occupy this edge. If you think about what Amazon did with public cloud, they sucked up all of this IT compute power and services applications, and everything moved from these enterprise private clouds to the public cloud, and Amazon's market cap exploded, right, because they were basically sucking up all the money for IT spending. So now if this moves to the edge, we have this arms race of people that want to be on the edge. The way to visualize it is a mini cloud. Whether this mini cloud is at the edge of Costco, so that when Stu's shopping at Costco there's AI that follows you in the store, knows everything you're going to do, and predicts you're going to buy this cereal and "We're going to give you a deal today. "Here's a coupon." This kind of big brother-ish AI tracking thing, which is happening whether you like it or not. Or autonomous vehicles that need to connect to the edge, and have self-driving, and have very low latency services very close to them, whether that's on the edge of the highway or wherever you're going in the car. You might not have time to go back to the public cloud to get the data, so it's about pushing these compute and data services closer to the customers at the edge, and having very low latency, and having lots of resources there, compute, storage, and networking. And that's the opportunity that Pensando's going after, and of course HPE is going after that, too, and HPE, as we know, is competing with its other big mega competitors, primarily Dell, the Dell/VMware combo, and the Cisco... The Cisco machine. At the same time, the service providers are interested as well. By the way, they have infrastructure. They have central offices all over the world, so they are thinking that can be an edge. Then you have the data center people, the Equinixes of the world, who also own real estate and data centers that are closer to the customers in the metro areas, so you really have this very interesting dynamic of all these big players going after this opportunity, putting in money, resources, and trying to acquire the right technology. Pensando is right in the middle of this. They're going after this opportunity using the P4 networking language, and a specialized ASIC, and a NIC that they think is going to accelerate processing and networking of the edge. >> Yeah, you've laid out a lot of really good pieces there, Scott. As you said, the first incarnation of this, it's a NIC, and boy, I think back to years ago. It's like, well, we tried to make the NIC really simple, or do we build intelligence in it? How much? The hardware versus software discussion. What I found interesting is if you look at this team, they were really good, they made a chip. It's a switch, it's an ASIC, it became compute, and if you look at the technology available now, they're building a lot of your networking just in a really small form factor. You talked about P4. It's highly programmable, so the theme of Future Proof Your Enterprise. With anything you say, "Ah, what is it?" It's a piece of hardware. Well, it's highly programmable, so today they position it for security, telemetry, observability, but if there's other services that I need to get to edge, so you laid out really well a couple of those edge use cases and if something comes up and I need that in the future, well, just like we've been talking about for years with software-defined networking, and network function virtualization, I don't want a dedicated appliance. It's going to be in software, and a form factor like Pensando does, I can put that in lots of places. They're positioning they have a cloud business, which they sell direct, and expect to have a couple of the cloud providers using this solution here in 2020, and then the enterprise business, and obviously a huge opportunity with HPE's position in the marketplace to take that to a broad customer base. So interesting opportunity, so many different pieces. Flexibility of software, as you relayed, Scott. It's a complicated coopetition out there, so I guess what would you want to see from the market, and what is success from Pensando and HPE, if they make this generally available this month, it's available on ProLiant, it's available on GreenLake. What would you want to be hearing from customers or from the market for you to say further down the road that this has been highly successful? >> Well, I want to see that it works, and I want to see that people are buying it. So it's not that complicated. I mean I'm being a little superficial there. It's hard sometimes to look in these technologies. They're very sophisticated, and sometimes it comes down to whether they perform, they deliver on the expectation, but I think there are also questions about the edge, the pace of investment. We're obviously in a recession, and we're in a very strange environment with the pandemic, which has accelerated spending in some areas, but also throttled back spending in other areas, and 5G is one of the areas that it appears to have been throttled back a little bit, this big explosion of technology at the edge. Nobody's quite sure how it's going to play out, when it's going to play out. Also who's going to buy this stuff? Personally, I think it's going to be big enterprises. It's going to start with the big box retailers, the Walmarts, the Costcos of the world. By the way, Walmart's in a big competition with Amazon, and I think one of the news items you've seen in the pandemic is all these online digital ecommerce sales have skyrocketed, obviously, because people are staying at home more. They need that intelligence at the edge. They need that infrastructure. And one of the things that I've heard is the thing that's held it back so far is the price. They don't know how much it's going to cost. We actually ran a survey recently targeting enterprises buying 5G, and that was one of the number one concerns. How much does this infrastructure cost? So I don't actually know how much Pensando costs, but they're going to have to deliver the right ROI. If it's a very expensive proprietary NIC, who pays for that, and does it deliver the ROI that they need? So we're going to have to see that in the marketplace, and by the way, Cisco's going to have the same challenge, and Dell's going to have the same challenge. They're all racing to supply this edge stack, if you will, packaged with hardware, but it's going to come down to how is it priced, what's the ROI, and are these customers going to justify the investment is the trick. >> Absolutely, Scott. Really good points there, too. Of course the HPE announcement, big move for Pensando. Doesn't mean that they can't work with the other server vendors. They absolutely are talking to all of them, and we will see if there are alternatives to Pensando that come up, or if they end up singing with them. All right, so what we have here is I've actually got quite a few interviews with the Pensando team, starting with I talked about MPLS. We have Prem, Jane, and Sony Giandoni, who are the P and the S in MPLS as part of it. Both co-founders, Prem is the CEO. We have Silvano Guy who, anybody that followed this group, you know writes the book on it. If you watched all the way this far and want to learn even more about it, I actually have a few copies of Silvano's book, so if you reach out to me, easiest way is on Twitter. Just hit me up at @Stu. I've got a few copies of the book about Pensando, which you can go through all those details about how it works, the programmability, what changes and everything like that. We've also, of course, got Hewlett Packard Enterprise, and while we don't have any customers for this segment, Scott mentioned many of the retail ones. Goldman Sachs is kind of the marquee early customer, so did talk with them. I have Randy Pond, who's the CFO, talking about they've actually seen an increase beyond what they expected at this point of being out of stealth, only a little over six months, even more, which is important considering that it's tough times for many startups coming out in the middle of a pandemic. So watch those interviews. Please hit us up with any other questions. Scott Raynovich, thank you so much for joining us to help talk about the industry, and this Pensando partnership extending with HPE. >> Thanks, Stu. Always a pleasure to join theCUBE team. >> All right, check out thecube.net for all the upcoming, as well as if you just search "Pensando" on there, you can see everything we had on there. I'm Stu Miniman, and thank you for watching theCUBE. 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>>from the Cube Studios in Palo Alto and Boston connecting with thought leaders all around the world. This is a cube conversation. Hi, I'm stupid, man. And welcome to a cube conversation. I'm coming to you from our Boston area studio, and we're gonna be talking about the networking giant. So, uh, joining me is the first time on the program some of the members been on and the cover launch of Pensando so vivid Jane, his CTO and co founder of Pensando Bipin thanks so much for joining us. >>Thank you. It was very nice talking to you. >>All right, so in a big theme we've been talking about for a number of years now is multi cloud. And, you know, I go back and think about you know, that the concept of cloud and even, you know, I've been around long enough You think about the and one of the challenges you look at is well, security is always a challenge. The other things network bandwidth is not infinite. The speed of light has not been solved, though you know, help us understand is you know the first I guess give our audience a little bit of your background. As I said, anybody in the networking world knows less team, though. Tell us, you know, have you been on the journey with them for all of that? Or And you know what brought you and Sandy? >>Yes. Yes. Um, I mean, I've been in the journey with the team since 2000 and six, so it's pretty long, I would say 14 years now, and it's been tremendous. Um uh, at heart, I'm an engineer who takes, you know, Brian brilliant things and taking upon challenges. And I've got multiple startups before this been in a new era, The more startups before that. And of course, you know, they were not experience more independent startups. And, you know, all through the course, I have gained appreciation for, like, you know, starting all the way from silicon to build a distributed systems and a u io all the way up to the fully consumable, you know, system. So I I totally understand the the angle I need to look at this time in a holistic manner. Having contributed to Cisco, UCS of and Nexus products on. Before joining pensando, I was, um I was contributing with my own open source container networking project, which is quite exciting to see How do you evangelize, You know, my own my own core, and that was fun. And that's where I come from, But, uh, but I I'm I'm a software engineer. To start off it started contributing to a six, then started going into the application world with containers trying to pull a container networking with, Ah, we did a server product with Cisco UCS and on and pretty much all over the stack with respect, participation. So that's my background. Um, but it's being exciting to consider what's next for me. And I was largely trying to see >>so, so definitive, actually, if I If I could jump in there, right, you know, I think back the UCS it was, You know, some of those ways I gather virtualization had been around for quite a number of years at that point. But, you know, how do you optimize it you're in. How do you transform infrastructure toe live for those environments, though? You know, UCS, You know, remember, people get back saying, you know, Cisco getting into services like Well, they are. They are because they're changing that compute model really caught that. You know, Cisco led that way. If the urge instructor, so many things you talked about that we'll get to later in the interview open for station. When I look out today, you know infrastructure's paint a lot and cloud obviously, is a huge impact, but also the application. So help us understand kind of the the waves that were writing together And, you know, what was it that you know in Santo decided to build in order to meet what you know, the customers of a require >>Um So I think, you know, going back to the UCS common that you had We started off thinking, for example, what are what were the challenges with respect is scaling out the deployment of servers and we quickly realized that manageability is number one challenge on. And of course, you know when we speak about manageability, it comes down to the underpinnings of what you're building. Are you Are you able to see the entire infrastructure together, or are you still seeing those big pieces? And that's when I think UCS was born to say that Look, we need to bring everything together that could be consumed in a holistic manner. And for that you have to have all those components there are There are somewhat independent to be consumed as a unified thing. And which is why I think it was a unified computing system. UCS. Um and then I think, you know, and Sanders a journey that takes it to probably not just that concept, but in general, the the challenges and the disruptions that we're seeing to the next level. So, I mean, just to summarize, I would say we started off looking at all the disruptions that are happening in the industry. And there are many of those I'm happy to talk about, which means we looked at, uh and then we looked at What are the consumption models that people are largely, you know, finding it very appealing these days because the days in which you're going to write a spirit to do something is still pretty old you want to be able to consume and most this after consumable way, How can we build, you know, how can you build systems that are programmable in the field? Those kind of things? The consumption model reliability software is the friendly factor there, and highly appealing to you guys and all their last one. You know, at least we also we also wanted to be really heard in the game, competitiveness wise. So those were like the the overarching set of things there that we started to think about, like, what descriptions are we going to solve, um, and how the consumption model needs to be for or ah, for the future of infrastructure. And how can we get that key, which is which is far ahead and better than anything that exists out there? So that's where we started to look at. Let's bring something which is bigger B sphere and and something. Even if we have the possibility of feeling it. Let's go ahead and they're doing their anything. >>Yeah, and absolutely. There's been so much discussion over the last decade or so about about software's eating the world and what's going on there yet you know, your your team mates. It's a lot of times it's been the chip set. There have been some huge ripples in the industry, you know, major acquisitions by some of the big, disruptive companies out there. Apple made a silicon acquisition, you know, everybody paid and that will have. You can't talk about disruption today without talking about Amazon. And, of course, when Amazon bought Annapurna Labs, you know, those of us looking at the Enterprise and the clouds base was like, Keep an eye on this. And absolutely, it's been something over the last year or so now, where we've seen Amazon roll things out and, of course, a critical component of what Amazon's doing from outposts. So with that as the stage there, you talked about wanting to be interesting leading, you know Amazon, you know, is really sick, and it's setting the bar that everyone is measured against. And when I look at the solution pensando, the kind of best comparable analogy that we've seen is, you know, look at what Nitro chip can do. This is an alternative for all of the other 1000 for customers that might not want to get them from Amazon. Is that a fair comparison? And how would you line up what founder is doing compared to what Amazon has done there? >>Um, so you know, what you've seen in the Amazon announcement really is possible. Amazon is a great benchmark to beat eso No make mistakes. We are very happy to say that, you know, we are We are doing by comfortably so But then, you know, Amazon is more than more than just the just the chips that are that they are building. I mean, what you consume is what they're building and underneath the engines are really part up by by the nicety off all these things that they're very, um, having said that, you know, And Sandra was consisting off both the you know, it's recognized us as a team which has been in traditionally building chips. But yet I think you know, the the Iot or the the previous venture from Mpls Team was somewhat of an eye opening as to how bringing things together is much more value in op, ex and and simplifying things is a huge, huge value compared to just putting performance and those things. So why this is important? That is another aspect which is important in trying to simplify things and make it consumable like software. And Sandra itself has probably, you know, I would say, Ah, good chunk, like about 60% of people in software team and not the, you know, basic harbor t This is not to say that, you know, we, you know, we are under emphasizing one versus the other. Software is a bigger beast when you start trying to build all those programs on a programmable and doing that here and start to roll out those applications on. So that's why I think the emphasis on software is there. Having said that, you know, it's the software that runs the data path pipeline. There's also a layer of software that we're building that can help manage all you know, all the product in a more cohesive manner and unified. >>Okay, that's Ah, thank you for laying that out. You mentioned you've got some background and open for definitely an area where, for a number of years, you know, Amazon has not exactly, uh, open source. Not exactly been a strength for AWS. They have put a lot of effort. They've done some president IRS over the last couple of years. >>And >>how do you see open source fitting into the space? What is I kind of the philosophy of pensando when it comes to open source. And where do you see it playing in the You know, this network piece of the multi cloud. >>Yeah, no, I think it's It's ah, it's a squared, relevant in a way that you know of the cloud native movement on how applications with very Onda normalization of AP eyes across multiple clouds. Israel, We are all seeing the benefits offered. And I think that that trend will continue and which is all driven through open source Ah, you know, community that exist in, you know, in the heart of the word. So personally for me, I think I learned a whole lot of things in the open source community. You know, the importance off evangelizing whatever you're working on, the reason to have convinced other people about contributing into what you're working on on. Frankly, I also learned how difficult it is to make revenues in an open source based part of that strategy. So I think you know that those were the things that I got away from it when I was doing my own open source project of container networking. Um, but at the same time, pensando, uh, you know, we have to make sure that we are 100% aligned with anything that's happening in open source. Never replicated, Um, anything that might be that might be happening in open source instead tried to make people use those things in the best possible way and in the most efficient way and the easiest possible way to use those. So our strategy largely is that, you know, embrace open source which exists are there from an infrastructure point of view, we are collaborating and communicating with less of the users are Hello. I think we're going to standardize most of things we're looking in before community. So our stands largely is that, you know, if we are building a programmable platform than the community is what is gonna driver and we are very much working towards a step by step, of course, trying to get through, you know, a stable state where we could we could not just empower people who are who are taking up the open source efforts which are going on. But at the same time, we can also contribute our program are programs into the open source community and defining the right abstractions into into the community. Um, because we came out of stealth pretty recently, you'll start seeing that and helping those activity as Well, >>excellent. Well, you know the launch of Pensando you had a phenomenal lineup. Not only you know, John Chambers obviously has the relationship with your theme, but you know, oh, am partners of Hewlett Packard, Enterprise and IBM, as well as the Marquis of Goldman Sachs. Things look a little bit different in the first half of 2020 and then they didn't end of 29 teams. So, you know, curious, You know that the global pandemic, the rippling financial implications, you know, what does that mean? The pensando. How has that impacted conversations that you're having with your >>Well, one thing I know at a broader level, let me cover, um, where things are heading. And in that sense, you know, I see that network and the infrastructure in general cloud infrastructure networking it's going to become. And we have realized it's this during during during recent early 20 twenties that that is going to be very important to have the have a new underpinning infrastructure that is not just working efficiently, securely, but is, you know, highly cost effective and very high performance, you know, ranging from people who are trying to connect from home to people who are trying to use videoconferencing and people who are going to be more and more use cloud based services even to order simple of the data being, you know, going to source for so network will become essential, you know, essential element for four things as we go forward. And we do see that being embraced by our customers and and things where we were trying to communicate that, you know, look, you will need performance and cost benefits are becoming more and more real Now. It's like, oh, things that we were having things in the pipeline for us. We need to work on that now. And the reason is because the things that we anticipated the demand increase, which is gonna happen over the fear of years, is happening literally in a few months. And so that is what we see. We are definitely, you know, very well poised to take advantage of their of their demand for sure. But also the fact that you know it needs to be done super efficiently. And so I think we are. You know, we are right. Well, I would say, you know, situated to be able to take advantage of start. >>Yeah, absolutely. You know, one thing you can't control as a company is you know what the global situation is when you come out of stealth and, you know, move through some of those early phases, you know, you've been part of You said a number of startups you've been part of been in give us a little bit of the inside baseball of, you know, being part of Rondo. You know, any stories on a little some of the ups and downs on the multi year journey to get where you are today? >>Definitely. I think. You know, um, minutes aren't good. They are largely an execution play. Relatively independent startup is is going to be about you know, how we cracked the overall market market fit and, ah, on execution, Of course, on deal with maybe in a competition in a different way, of course, like maybe big companies are our great partners. At the same time, you have to navigate that. So the overall the overall landscape in Spain and forces forces not is it's quite different. We can be much more border than we are independent company In trying to disrupt almost anything because we don't have any point of view to define per se. We do exactly, You know, what could be the most disruptive way, too, to potentially benefit the users on day? That's a big, you know, big change. I would say, um, we are being but paranoid as well at the same time, impractical to look at. You know how how we could navigate this situation in a very practical may. And the journey off, often independent startup is, you know, personally, for me, this is this is my fourth in different and start and best off. Off off, all independent. Once, I would stay largely because the kind of tradition that we're getting being an independent company is so huge. I'm just concerned about those things. But what We're really trying to trying to ensure that, you know, we can't get our stuff, but I want you and we started. >>Excellent. Guess what? One of the other things about being a startup is You know what you know adjustments You need to make along the way. So I'm curious. As you know, you've gone to some of your early customers. Any feedback or adjustments in some of the use cases or, you know, things that you've learned along the way that you can share. >>Um, fundamentally, at a base level, we haven't shifted from what we started off. We look at disruptions on on how consumption models are going to be changing, how speeds and feeds are gonna become important because, you know, because most law is going to be almost operating, how we how we deliver things into and containers are going to be a primary, you know, vehicle to deliver and build applications. So we recognize those disruptions, and we haven't changed, But normally from those disruptions that we wanted people after her. Uh, but at the same time, I think, you know, as we went and socialize our ideas and on architecture and designs with customers, we realized that that they are giving us lots more feedback on work all we could do and ah, and starting to become like we could take on different segments of market and not just one. So why stick ourselves to the data center power? Why not work on something on edge, blur wine or wine are real solutions for five G where latency and and performance is super crucial. Why don't take up on, you know, branch that use cases. So there are many things that are opening up. Um, and largely the you know, the shift. Or I would say the the inclination of what we should change versus not is happening with respect to where our customers are driving us. And and it is very important to make sure that you know the users of our lives Articulating all of the shift happens as opposed to, uh, you know, as opposed to anything else. We listen to them like super, super carefully, uh, and at the same time trying to make sure that we not only meet their means for you there their demands. So, um, definitely, you know, from the from the overall landscape of things, we are starting to get a lot more than what we are capture, which is good news For the same time, we're trying to also, uh, take on one part. I'm you know, >>all right, Vivienne, I can't let you off the hook as the cto without talking a little bit about that. You know, I think earlier in my career there was the old discussion and said you know, we should have started it, you know, a year or two ago. But, you know, we didn't. So we should start it today with changing pace of technology. You know, I've always said, you know, if I could I'd rather wait a year because I could take the next generation. I can take advantage of all these other things, but I can't wait, because then I'd never ship any things that I need to start now, Give us a little bit, you know, Look out in the future. How is your architecture designed to be able to take advantage of all the wonders coming with five G and everything there, Um, and anything that we should be looking at, You know, through the next kind of 12 18 months on the roadmap that you could share >>your Ah, yes. So, um, I would first of all say that we didn't build a part of, actually, what we build was a platform on which we can build multiple products. And we started we started off going there because we thought that, you know, the the platform that we're building is capable of capable of doing a lot more things than than one use case that we start off with. And so, to that point, I would say that yes. I mean, he started focusing on one product initially on the possibilities off. Trying to take it to multiple segments is is normally very much there. But we are already, you know, having those conversations to see what is the core set of use cases that we could we could get into for different segments. Besides the data center, you know, public Private Data center, you're looking at edge. We're looking by the looking at, Yeah, you mentioned this is as well as the, you know, storage and conversion infrastructure. So I would say that the food of all those things that we're starting to engage is going to start showing up in next 18 months. I could actually I think we are very well boys to take advantage of what we have. The hardware that we're shipping is going to be 100% compatible with four programs, but I don't those. So that is that is lot more possibilities are interesting. More use cases as people. The software's architecture that we have built is very extensible as well. Eh so we believe that. You know, uh, we believe that we can normally satisfy those use cases, but we're starting to you get into those things now, which will start to show up in and actually useful products of unusable for us with customer testimonials and then maybe 12 to 18 months from now. All >>right, well, thank you so much. It's great to catch up with. You really appreciate you coming on. >>Thank you to Because they're talking to you. And, you know, I appreciate your time. >>All right, I'm stew minimum. And be sure to check out the cube dot net for all the coverage. Go see the launch that we did. So in the second half of 2019. Thank you for watching you. Yeah, Yeah, yeah, yeah.

>> Live from Las Vegas, it's theCUBE! Covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel, and their ecosystem partners. >> Hey, welcome back everyone! It's theCUBE's live coverage, day two, of three days of wall-to-wall coverage. Keynotes, amazing announcements, great vibe here. Again, 52,000 people here at Amazon re:Invent, I'm John Furrier, my co-host Dave Vellante, we're here again, 6th year, just an amazing amount of content, two sets Eron Kelly is the General Manager of the Enterprise Services Marketing Basically part of marketing for Lilac Groups a lot of the areas. Great to have you on theCUBE. Thanks for spending the time! >> It's great to be here John and Dave, I really appreciate it. >> Alright so, how hard is your job? (all men laugh) I mean we were just doing an analysis of Andy's keynote and there's so much to talk about you have so many things under your purview. You have a broad portfolio of Amazon services It's really crazy good for you guys, the business is going great, highly profitable How do you do it all? How do keep track of it? What's your favorite child? Tell us >> It's a great point, there's so much going on and the speed and the pace of innovation but it's exactly what builders are looking for, right? They want to be able to come to AWS and not have to compromise. Because they want to see every tool that they need for every job And so for me I have a pretty broad portfolio I've really been excited this week about a lot of our compute announcements, right? So our announcements around our new instance family with A1 based on some custom silicon AWS Graviton processor Really excited about that Bringing the Arm community to the Cloud for the first time, we're jazzed about that one. >> And that motivation there is lowering costs for Arm-based apps, right? >> It's really two-fold, right? It's bringing the Arm community to the cloud It's the first time we've got an Arm processor in a large Cloud provider, so giving them that scale-up, elasticity, pay-for-what-you-use kind of model but then the second thing is lowering costs for customers for scale-out workloads so things like web tiers containerized microservices and you know in the general purpose area customers, we think they can save up to 45% which is meaningful, so we're really excited about that. That's been a really neat announcement a neat project we've been working on for a while. I would also say in the area of Compute We've added 100GB networking to a couple of our Instance types. C5n based on Intel processors and that's really been the workhorse in the HPC community and now with 100 GB of networking we're going to be able to do even more processing, more power, more advanced scenarios there And it's kind of an interesting dialogue, right? The more data you have, the more compute you need and it creates this virtuous cycle and one of the gaps was networking, so bringing 100GB It really allows those Intel chips to run >> Well, Big Data guys are going to eat that up to, I would think I mean, the links between Big Data and HPC become clearer >> Exactly right. >> Talk about the latency thing Andy talked to me last Monday about this I had a long conversation with him about it Latency matters, you guys listen to customers. Networking, you mentioned a key part of the flywheel Compute storage networking obviously morphing with the Cloud while you guys are optimizing and raising the bar. How are you guys handling the latency question? Because this comes up a lot You got the On-premises piece now you guys are doing things in the Cloud How do you market that service? How do you handle the latency? Talk about the role of latency in the portfolio. >> There's a couple things in there The first one, what I would highlight is Latency within an HPC environment or a machine learning environment and so that's where again this 100GB networking has been really powerful. We've also announced a new networking feature or protocol, Elastic Fabric Adapter which actually allows you to go even faster now in some networking scenarios, which is particularly interesting, again, in HPC So we've really worked hard in reducing the latency throughout the data centers for these higher end compute scenarios. >> Well, you have the custom silicon I wanted to just take you through this because EC2 has always been great, but setting up an Instance could take 10 seconds. Lambda now you can do it in hundreds of milliseconds. By having the custom silicon, How does that impact the network stack? Because I would imagine that the performance gains on having kind of a custom silicon around EC2 and the Compute, would be a gamechanger for running things under the covers, for instance, like a Vmware or managing security boundaries issues, what's the... >> So we made these investments a few years ago with the Nitro system, Where we took a look at the current Instance environment and said hey if we can offload some of that computer networking to a purpose-built chips on those cards we can actually free up more capacity for those processors to run faster and give you more value basically for each Instance type. So that was part of the beginning of Annapurna Labs and the Nitro system was offloading this networking into those custom built chips. That's the start and then what we've done is the Nitro system has allowed us to innovate much faster So we've added three times more Instances this year than last year because we're building on the Nitro system Graviton processor is just one more example We've added new processors from AMD And of course we've continued to advance with our Intel chip set as well. >> Talk about, I just want to just change gears for a bit Because you're in product marketing Executive General Manager Andy talks about the new way the culture at Amazon Old guard, new guard... Traditional product marketing, you can take a product you can bring it to market, waterfall it out at the beach and then you do all the activities How do you raise the bar in your job where you got to go out and take not just products, this is services now so you have a series of, a lot of services How does that change how you do product marketing? And how's that different from people who might not know how you guys operate? Talk a little about the culture of product marketing at Amazon. >> Sure, yeah. So I would say first and foremost it's all about education, right? So we really want to make sure that whenever where there's a new service that comes out we're super clear on what does it do what is the benefit and how can customers take advantage of it. And we're trying to position it in a way We like to say internally, sort of a non-technical CIO can understand So whenever you look at a new service You look at our detail pages. We put a tremendous amount of rigor and clarity We make it very simple, make the value pop clear I think the second thing we're starting to do and we're seeing it reflected in our products as well Is how can we tell more aggregated stories? So today during the Keynote, You saw Andy talk about abstractions, right? And one of the first ones he mentioned was Control Tower, which is one of my products So I got a little passionate around it. But what's interesting about that is that customers are coming to us and saying OK, I love the AWS, I love all these tools I love the granularity of managing things at a certain level and setting policies at a certain level But you guys have thousands, millions of customers running AWS, what's the right way to set up my environment? Can you give me a blueprint to do it? To set it up and run it in a very secure and compliant way. So Control Tower is a great example of a both a service that helps you do that as well as a marketing message that says Hey, let's look at this now in totality Let's you set up these environments faster based on best practices and now you can control in a much easier way. >> So you're basically trying to simplify the message so it's not speeds and feeds >> Well, what I would say is we want to simplify the message so that everyone can understand but we don't want to lose track of those builders those tinkerers that get in there, they want the speeds and feeds, they want the nobs and part of their differentiation as a developer is understanding all the details So we want to have both. >> It's also trying to help people figure out what to use where. As your portfolio grows and grows and grows the complexity becomes amazing for some people And Tailgate helped me figure out mapping to my workload, what to use where what's the best cost solution sometimes it's hard to figure that stuff out, isn't it? >> Yeah, well, it's again, it's this balance between We want to be able to provide the right tool for the right job I think Andy had a nice analogy today in the Keynote Where he talked about building fixing a house with just a hammer, right? And instead you're going to want to have that right tool for that right job And so part of our job in Product Marketing is making it very clear When do I use this particular Instance type versus this versus this? What are the trade-offs? And that's a key part of our job. >> And that resonates with people because there's a lot of redundancy in tools, too in the marketplace, people, a lot of them have the same tool the same hammer and you guys have a variety of services. So the question I got to ask you though As you look at the services and Amazon's role here at the event How would you summarize what's going on here? Because there's so much, Andy had a slide up there that said "Signal from the noise" and that's our phrase Extracting the signal from the noise which is kind of fun, but you have so much signal this noise and there's too much signal how would you encapsulate, for someone watching, what is happening this year? Where is Amazon for customers? What's the positioning? How should they think about, you mention builders? How would you summarize what the action is going on here? >> Right, so I would talk about it like this First and foremost, I would say we're adding more capability and building the broadest and deepest platform so that builders can always, they never have to compromise they always can find the right tool they need for the right job. So first and foremost, that speed of innovation that pace of innovation is continued and if there was one message that people should take away is Wow! They are still innovating like crazy they have an amazing amount of technology and so I don't have to compromise when it comes to datalinks. So that's kind of the first main message. Then I think the second thing I would say which kind of follows on that is OK but we also recognize that we've got a lot of services and now we need to start to build some services that bring these together and again Control Tower is a great example of that Lake Foundation is a great example of that for datalinks. And so that's sort of the second thing we are starting to create services that are abstraction layers that bring together a lot of the details to solve very specific problems. The third thrust that I would highlight is just the amazing focus around machine learning and AI and just how that has been such a key investment area for us and such a key ask for our customers and our mission there is to just democratize it. We want every builder to able to bring machine learning and add it to their solutions. And the number of services you saw announced today in the keynote as well as some earlier this week and last week just shows that our commitment and focus on that >> And extending EC2 to support some of that stuff >> Exactly right >> And the training and the like >> I'm a Star Trek fan so I always go to Scotty Scotty, more power! You guys are bringing more power to the table with each Compute and these abstractions. I want to get your thoughts on something that I talked with Andy about in depth last week before the show, and we were riffing on this notion of a new kind of Developer emerging and he talked about in the keynote, a new persona of developer, A new kind of developer is emerging. And he also kind of talked about net new workloads I wrote about it in my stories on SiliconANGLE in the forums about it, which is this all this goodness going on at the abstraction layer with a lot of horsepower enabling things that were hard to do. AI's a great example AI's been around since I was in college in the 80's and 90's and now it's rose up with power What are some of those persona developers look like? How do you look at that net new workloads? What's your reaction to that? Because this seems to be a big trend that's not your old school developer banging out code now there's OpenSource communities, we got that but in the working day and life of companies people are building apps. What's this new persona developer look like? >> Well, there's different personalities, right? There's the core tinkerer like you talked about there's now the data scientist that's coming in and taking advantage of these machine learning tools. You have kind of a cloud administrator that's kind of trying to look across everything and they want to build as well, right? They don't just want to sit there and manage the dashboards, they want to build as well and so we're seeing that in some of those personas. of course, app developers is another big part of it. >> Now you could talk to Firecracker too, right? >> We could talk a little bit, yeah >> So I met with Adrian yesterday and of course people used to poke at Amazon a lot hey, what about Open-source, you guys giving back to Open-source? And so Firecracker explain that and sort of what you guys are doing there and specifically in Open-source? >> So that's a great example of where we had some technology, and what Firecracker is it's a container for microservices that can run in a non-virtualized environment and we've used it as the underpinning for Lambda and Fargate And we looked at it and we said you know what? We want more people to be able to take advantage of this because it's about saving money it's about improving security. And so we decided to open-source it. And so that was one of our announcements on Monday was open-sourcing Firecracker and making it available to the community and so we're really excited about it. >> One of the things I want to ask you as we wrap up here, first of all great job on all the work you've done at Amazon impressive to see the level of services >> Thank you! That you guys are announcing and it's become a competitive advantage and you've got a great trajectory a lot of learnings and as Andy says there's time compression for experience and time which is good for a competitive strategy but as you look forward to 2019 What's your plan? What are your goals? How are you going to raise the bar? The term you guys use a lot. What's your goals? What are you trying to accomplish? >> You know the number one thing that we spend our time on is listening to customers and saying what's next? What do you need next, right? 90% of our innovation comes from customer input and so now we got a new wave of services we're introducing we're going to spend time with customers they're going to give us feedback we're going to make those services better and then we're going to find new places where they want us to go so next year is going to be just as exciting as this year and next year when I see you guys here we're going to be talking about a whole new wave of things coming out, it's been fun. >> You're certainly running hard and the other thing I've noticed in learning how Amazon works and getting deeper under the covers there you got a growing field, great professional services and a sales force that is not trying to grab the wallet from the customer you guys have a long game perspective >> That's right >> Carla, had a great conversation with her about this you have to service that How are you going to enable these guys You mentioned education earlier this is a big part of your plan, right? The integration with the field how does that work? You going to provide the messaging all the tools...how..cuz that's grow you've got to service that What's your perspective on the field >> Oh for sure, you're highlighting my Q1 goals right now It's really important to dial up that connection because as we get more and more services our field sellers, what's great about our field teams is that they're so aligned to customer needs So they don't carry specific quotas on individual products and things like that they're really focused on hey, what do ya need? And how can use the full portfolio to help you out? And so part of our challenge as a product marketer is not only educating customers on our products but educating the field on our products and which ones are most viable for which scenario and so that's a big part of our focus as well within the product marketing function is hey how do we really nail these scenarios very crisp, very compelling both for the customer and field seller to say ooh I saw that pattern in a customer! Let me go bring this technology forward and talk to them about it, so really excited about next year and you hit on something else that I think is really important which is this long term view, is our sales teams have always taken a long term view with customers they're not sitting there at the end of the Quarter trying to, you know, close the deal it's all about that long term view And it's allowed us to make some of these investments we've had, we've made >> You guys also use your own technology too I noticed a lot of the different groups You've got all the goodness of Cloud. You got to use some of that tech You've probably got some machine learning waiting around the AI bots and all kinds of cool tools you're integrating in dog-fooding or what do they call it? >> I mean, the reason why we're able to add so many services every year is that we build on our own platform, right? So you can have a very small team we talk about the two pizza team A very small team is able to build these services because they use AWS and in its entirety. And so it's very very exciting as these things get connected Like last week we talked about a predictive auto-scaling, so one of the features Auto-scaling's been a pretty popular feature over the years where people can scale up and scale down a large fleet of EC2 Instances but now we've added machine learning to that where it will now predict when the scaling should happen. So it allows you to scale up your EC2 Instances ahead of time based on historical patterns. So there's ML coming into everything we do. >> And server-less is booming too you know, that's going to be a big part of your focus by the way, you mention the Fleets I love this, we haven't talked about it much on theCUBE, but this notion of fleets is pretty powerful Having just a bunch of fleets of servers ready to go >> Ready to go and being able to manage across the different pricing models is also very, very powerful. I want to really ramp up very very quickly take advantage of those spot instances in those moments with really big cost savings as well as ramp back down >> Hey, keep adding functionality keep removing all the barriers lowering the price, making it high performance and I love that business model a lot of companies don't have that so Congratulations! >> You know, we just always want to add more we want to give customers more tools so they can have the right tool for the right job we want to give them the most powerful platform so they can do the highest end things as well as give them scenarios where hey, it's a little bit lower cost and it's for smaller workloads we don't want to overpay and be over-provisioned that's a key part of our strategy. >> I want it all and I want it now >> That's right! >> Well, you did a good job on the messaging Andy wants to mention builders and right tool for the job I think there's a drinking game going on on that he mentioned multiple times Congratulations Eron Kelly, Thank you! >> Thanks John and Dave, Really appreciate your time on theCUBE. >> General Manager Amazon Product Marketing here inside theCUBE, breaking down what's going on, what's his goals how Amazon keeps up with the pace Good insight I'm John Furrier, Dave Vellante Stay with us for more coverage after this short break. 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