(upbeat music) >> Welcome to theCUBE's coverage of VMworld 2021. I'm Lisa Martin. I've got a CUBE alum with me next. Ajay Patel is here, the SVP and GM of Modern Apps and Management at VMware. Ajay, welcome back to the program, it's great to see you. >> Well thank you for having me. It's always great to be here. >> Glad that you're doing well. I want to dig into your role as SVP and GM with Modern Apps and Management. Talk to me about some of the dynamics of your role and then we'll get into the vision and the strategy that VMware has. >> Makes sense. VMware has created a business group called Modern Apps and Management, with the single mission of helping our customers accelerate their digital transformation through software. And we're finding them leveraging both the edge and the multiple clouds they deploy on. So our mission here is helping, them be the cloud diagnostic manager for application development and management through our portfolio of Tazu and VRealize solutions allowing customers to both build and operate applications at speed across these edge data center and cloud deployments And the big thing we hear is all the day two challenges, right of managing costs, risks, security, performance. That's really the essence of what the business group is about. How do we speed idea to production and allow you to operate at scale. >> When we think of speed, we can't help, but think of the acceleration that we've seen in the last 18 months, businesses transforming digitally to first survive the dynamics of the market. But talk to me about how the, the pandemic has influenced catalyzed VMware's vision here. >> You can see in every industry, this need for speed has really accelerated. What used to be weeks and months of planning and execution has materialized into getting something out in production in days. One of great example I can remember is one of my financial services customer that was responsible for getting all the COVID payments out to the small businesses and being able to get that application from idea to production matter of 10 days, it was just truly impressive to see the teams come together, to come up with the idea, put the software together and getting production so that we could start delivering the financial funds the companies needed, to keep them viable. So great social impact and great results in matter of days. >> And again, that acceleration that we've seen there, there's been a lot of silver linings, I think, but I want to get in next to some of the industry trends that are influencing app modernization. What are you seeing in the customer environment? What are some of those key trends that are driving adoption? >> I mean, this move to cloud is here to stay and most of customers have a cloud first strategy, and we rebranded this from VMware the cloud smart strategy, but it's not just about one particular flavor of cloud. We're putting the best workload on the best cloud. But the reality is when I speak to many of the customers is they're way behind on the bar of digital plats. And it's, that's because the simple idea of, you know, lift and shift or completely rewrite. So there's no one fits all and they're struggling with hardware capability, their the development teams, their IT assets, the applications are modernized across these three things. So we see modernization kind of fall in three categories, infrastructure modernization, the practice of development or devops modernization, and the application transform itself. And we are starting to find out that customers are struggling with all three. Well, they want to leverage the best of cloud. They just don't have the skills or the expertise to do that effectively. >> And how does VMware help address that skills gap. >> Yeah, so the way we've looked at it is we put a lot of effort around education. So on the everyone knows containers and Kubernetes is the future. They're looking to build these modern microservices, architectures and applications. A lot of investment in just kind of putting the effort to help customers learn these new tools, techniques, and create best practices. So theCUBE academy and the effort and the investment putting in just enabling the ecosystem now with the skills and capabilities is one big effort that VMware is putting. But more importantly, on the product side, we're delivering solutions that help customers both build design, deliver and operate these applications on Kubernetes across the cloud of choice. I'm most excited about our announcement around this product. We're just launching called Tanzu application platform. It is what we call an application aware platform. It's about making it easy for developers to take the ideas and get into production. It kind of bridging that gap that exists between development and operations. We hear a lot about dev ops, as you know, how do you bring that to life? How do you make that real? That's what Tanzu application platform is about. >> I'm curious of your customer conversations, how they've changed in the last year or so in terms of, app modernization, things like security being board level conversations, are you noticing that that is rising up the chain that app modernization is now a business critical initiative for our businesses? >> So it's what I'm finding is it's the means. It's not that if you think about the board level conversations about digital transformation you know, I'm a financial services company. I need to provide mobile FinTech. I'm competing with this new age application and you're delivering the same service that they offered digitally now, right. Like from a retail bank. I can't go to the store, the retail branch anymore, right. I need to provide the same capability for payments processing all online through my mobile phone. So it's really the digitalization of the traditional processes that we're finding most exciting. In order to do that, we're finding that no applications are in cloud right. They had to take the existing financial applications and put a mobile frontend to it, or put some new business logic or drive some transformation there. So it's really a transformation around existing application to deliver a business outcome. And we're focusing it through our Tanzu lab services, our capabilities of Tanzu application platform, all the way to the operations and management of getting these products in production or these applications in production. So it's the full life cycle from idea to production is what customers are looking for. They're looking to compress the cycle time as you and I spoke about, through this agility they're looking for. >> Right, definitely a compressed cycle time. Talk to me about some of the other announcements that are being made at VMworld with respect to Tanzu and helping customers on the app modernization front, and that aligned to the vision and mission that you talked about. >> Wonderful, I would say they're kind of, I put them in three buckets. One is what are we doing to help developers get access to the new technology. Back to the skills learning part of it, most excited about Tanzu of community edition and Tanzu mission control starter pack. This is really about getting Kubernetes stood up in your favorite deployment of choice and get started building your application very quickly. We're also announcing Tanzu application platform that I spoke about, we're going to beta 2 for that platform, which makes it really easy for developers to get access to Kubernetes capability. It makes development easy. We're also announcing marketplace enhancements, allowing us to take the best of breed IC solutions and making them available to help you build applications faster. So one set of announcements around building applications, delivering value, getting them down to market very quickly. On the management side, we're really excited about the broad portfolio management we've assembled. We're probably in the customer's a way to build a cloud operating model. And in the cloud operating model, it's about how do I do VMs and containers? How do I provide a consistent management control plane so I can deliver applications on the cloud of my choice? How do I provide intrinsic observability, intrinsic security so I can operate at scale. So this combination of development tooling, platform operations, and day two operations, along with enhancements in our cost management solution with CloudHealth or being able to take our universal capabilities for consumption, driving insight and observity that really makes it a powerful story for customers, either on the build or develop or deploy side of the equation. >> You mentioned a couple of things are interesting. Consistency being key from a management perspective, especially given this accelerated time in which we're living, but also you mentioned security. We've seen so much movement on the security front in the last year and a half with the massive rise in ransomware attacks, ransomware now becoming a household word. Talk to me about the security factor and how you're helping customers from a risk mitigation perspective, because now it's not, if we get attacked, it's when. >> And I think it's really starts with, we have this notion of a secure software supply chain. We think of software as a production factory from idea to production. And if you don't start with known good hard attacks to start with, trying to wire in security after attack is just too difficult. So we started with secure content, curated images content catalogs that customers are setting up as best practices. We started with application accelerators. These are best practice that codifies with the right guard rails in place. And then we automate that supply chain so that you have checks in every process, every step of the way, whether it's in the build process and the deploy process or in runtime production. And you had to do this at the application layer because there is no kind of firewall or edge you can protect the application is highly distributed. So things like application security and API security, another area we announced a new offering at VM world around API security, but everything starts with an API endpoint when you have a security. So security is kind of woven in into the design build, deploy and in the runtime operation. And we're kind of wire this in intrinsically to the platform with best of breed security partners now extending in evolving their solution on top of us. >> What's been some of the customer feedback from some of the new technologies that you announced. I'm curious, I imagine knowing how VMware is very customer centric, customers were essential in the development and iteration of the technologies, but just give me some of the idea on customer feedback of this direction that you're going. >> Yeah, there's a great, exciting example where we're working with the army to create a software factory. you would've never imagined right, The US army being a software digital enterprise, we're partnering with what we call the US army futures command in a joint effort to help them build the first ever software development factory where army personnel are actually becoming true cloud native developers, where you're putting the soldiers to do cloud native development, everything in the terms of practice of building software, but also using the Tanzu portfolio in delivering best-in-class capability. This is going to rival some of the top tech companies in Silicon valley. This is a five-year prototype project in which we're picking cohorts of soldiers, making them software developers and helping them build great capability through both combination of classroom based training, but also strong technical foundation and expertise provided by our lab. So this is an example where, you know, the industry is working with the customer to co-innovate, how we build software, but also driving the expertise of these personnel hierarchs. As a soldier, you know, what you need, what if you could start delivering solutions for rest of your members in a productive way. So very exciting, It's an example where we've leapfrogging and delivering the kind of the Silicon valley type innovation to our standard practice. It's traditionally been a procurement driven model. We're trying to speed that and drive it into a more agile delivery factory concept as well. So one of the most exciting projects that I've run into the last six months. >> The army software factory, I love that my dad was an army medic and combat medic in Vietnam. And I'm sure probably wouldn't have been apt to become a software developer. But tell me a little bit about, it's a very cool project and so essential. Talk to me a little bit about the impetus of the army software factory. How did that come about? >> You know, this came back with strong sponsorship from the top. I had an opportunity to be at the opening of the campus in partnership with the local Austin college. And as General Milley and team spoke about it, they just said the next battleground is going to be a digital backup power hub. It's something we're going to have to put our troops in place and have modernized, not just the army, but modernize the way we deliver it through software. It's it speaks so much to the digital transformation we're talking about right. At the very heart of it is about using software to enable whether it's medics, whether it's supplies, either in a real time intelligence on the battlefield to know what's happening. And we're starting to see user technology is going to drive dramatically hopefully the next war, we don't have to fight it more of a defensive mode, but that capability alone is going to be significant. So it's really exciting to see how technology has become pervasive in all aspects, in every format including the US army. And this partnership is a great example of thought leadership from the army command to deliver software as the innovation factory, for the army itself. >> Right, and for the army to rival Silicon valley tech companies, that's pretty impressive. >> Pretty ambitious right. In partnership with one of the local colleges. So that's also starting to show in terms of how to bring new talent out, that shortage of skills we talked about. It's a critical way to kind of invest in the future in our people, right? As we, as we build out this capability. >> That's excellent that investment in the future and helping fill those skills gaps across industries is so needed. Talk to me about some of the things that you're excited about this year's VMworld is again virtual, but what are some of the things that you think are really fantastic for customers and prospects to learn? >> I think as Raghu said, we're in the third act of VM-ware, but more interestingly, but the third act of where the cloud is, the cloud has matured cloud 2.0 was really about shifting and using a public cloud for the IS capabilities. Cloud 3.0 is about to use the cloud of choice for the best application. We are going to increasingly see this distributed nature of application. I asked most customers, where does your application run? It's hard to answer that, right? It's on your mobile device, it's in your storefront, it's in your data center, it's in a particular cloud. And so an application is a collection of services. So what I'm most excited about is all business capables being published as an API, had an opportunity to be part of a company called Sonos and then Apogee. And we talked about API management years ago. I see increasingly this need for being able to expose a business capability as an API, being able to compose these new applications rapidly, being able to secure them, being able to observe what's going on in production and then adjust and automate, you can scale up scale down or deploy the application where it's most needed in minutes. That's a dynamic future that we see, and we're excited that VM was right at the heart of it. Where that in our cloud agnostic software player, that can help you, whether it's your development challenges, your deployment challenges, or your management challenges, in the future of multi-cloud, that's what I'm most excited about, we're set up to help our customers on this cloud journey, regardless of where they're going and what solution they're looking to build. >> Ajay, what are some of the key business outcomes that the cloud is going to deliver across industries as things progress forward? >> I think we're finding the consistent message I hear from our customers is leverage the power of cloud to transform my business. So it's about business outcomes. It's less about technology. It's what outcomes we're driving. Second it's about speed and agility. How do I respond, adjust kind of dynamic contiuness. How do I innovate continuously? How do I adjust to what the business needs? And third thing we're seeing more and more is I need to be able to management costs and I get some predictability and able to optimize how I run my business. what they're finding with the cloud is the costs are running out of control, they need a way, a better way of knowing the value that they're getting and using the best cloud for the right technology. Whether may be a private cloud in some cases, a public cloud or an edge cloud. So they want to able to going to select and move and have that portability. Being able to make those choices optimization is something they're demanding from us. And so we're most excited about this need to have a flexible infrastructure and a cloud agnostic infrastructure that helps them deliver these kinds of business outcomes. >> You mentioned a couple of customer examples and financial services. You mentioned the army software factory. In terms of looking at where we are in 2021. Are there any industries in particular, maybe essential services that you think are really prime targets for the technologies, the new announcements that you're making at VM world. >> You know, what we are trying to see is this is a broad change that's happening. If you're in retail, you know, you're kind of running a hybrid world of digital and physical. So we're seeing this blending of physical and digital reality coming together. You know, FedEx is a great customer of ours and you see them as spoken as example of it, you know, they're continue to both drive operational change in terms of being delivering the packages to you on time at a lower cost, but on the other side, they're also competing with their primary partners and retailers and in some cases, right, from a distribution perspective for Amazon, with Amazon prime. So in every industry, you're starting to see the lines are blurring between traditional partners and competitors. And in doing so, they're looking for a way to innovate, innovate at speed and leverage technology. So I don't think there is a specific industry that's not being disrupted whether it's FinTech, whether it's retail, whether it's transportation logistics, or healthcare telemedicine, right? The way you do pharmaceutical, how you deliver medicine, it's all changing. It's all being driven by data. And so we see a broad application of our technology, but financial services, healthcare, telco, government tend to be a kind of traditional industries that are with us but I think the reaches are pretty broad. >> Yeah, it is all changing. Everything is becoming more and more data-driven and many businesses are becoming data companies or if they're not, they need to otherwise their competition, as you mentioned, is going to be right in the rear view mirror, ready to take their place. But that's something that we see that isn't being talked about. I don't think enough, as some of the great innovations coming as a result of the situation that we're in. We're seeing big transformations in industries where we're all benefiting. I think we need to get that, that word out there a little bit more so we can start showing more of those silver linings. >> Sure. And I think what's happening here is it's about connecting the people to the services at the end of the day, these applications are means for delivering value. And so how do we connect us as consumers or us employees or us as partners to the business to the operator with both digitally and in a physical way. And we bring that in a seamless experience. So we're seeing more and more experience matters, you know, service quality and delivery matter. It's less about the technologies back again to the outcomes. And so very much focused in building that the platform that our customers can use to leverage the best of the cloud, the best of their people, the best of the innovation they have within the organization. >> You're right. It's all about outcomes. Ajay, thank you for joining me today, talking about some of the new things that the mission of your organization, the vision, some of the new products and technologies that are being announced at VM world, we appreciate your time and hopefully next year we'll see you in person. >> Thank you again and look forward to the next VMWorld in person. >> Likewise for Ajay Patel. You're very welcome for Ajay Patel. I'm Lisa Martin, and you're watching theCUBEs coverage of VMWorld of 2021. (soft music)

(upbeat music) >> Okay, welcome back to "theCUBE" stage here in cloud city, TelcoDr, Telco digital revolution. We had a chance to talk to Rob Haberman, CTO of Nokia software. Great interview as part of our hybrid program here, but we're still on the floor onsite. Let's go listen to my great interview with Ron and what he had to say about the power of the cloud. (upbeat digital music) And welcome to "theCUBE's" coverage of Mobile World Congress, 2021. It's an in-person and hybrid event and we're here in Palo Alto through remote interview as part of the hybrid, getting as much content as possible, is a great guest Ron Haberman, who is the CTO of Nokia Cloud Network Services known as CNS. Ron's an expert. He's going to come in and share with us his vision and his commentary on openness in the cloud, Telco cloud, the changes at the Edge, of so much going on, so much innovation that's changing the game, that's going to impact lives and society. Ron, thank you for coming on "theCUBE" for this Mobile World Congress special segment. >> Thank you, glad to be here. >> So the transformation in the cloud is so amazing with 5G. You've got cloud native developers, you've got enterprises changing their architectures, and cloud service probably going to the next level. 5G certainly is a great edge, but the strength of the cloud combined with the new modern applications really is going to be the power. And you start to see people starting to think differently around how developers are building apps and how companies are working together. It's not just one company ruling the world anymore, it's a lot of interoperability, interconnections, a lot of API's openness, kind of sounds like a network. It sounds like a network effect. This is a big deal. What's your take on this whole shift as 5G gets enabling a fast edge and cloud native go hand in hand. What's your take? >> I think 5G and the transformation to cloud native, generically speaking, go very nicely hand in hand. It's important to understand that 5G is not just another G, really because it's more intended for consumption by businesses and not just consumer. And what it means is that it would have a vast impact on how development is done, how the deployment is done and the type of features that would be required from the network. So when we went on our path to start developing for cloud native, primarily, for 5G, it went beyond just being cloud ready. And we started looking at how do we expand the operability with the ecosystems? How do we go into topics such as continuous delivery? How do we create collaboration between CSPs and cloud providers, such as we can provide the advancements. Now, there are quite a few subtopics in the transformation. For example, these might be obvious, but without automation there's really no ability to create a cloud native delivery process. If you're on the cloud, you're creating speed and ability to innovate as well as access, but you also are now required to create a better security system in ways to tie things back together. The multi-vendor environment and the path that it would enable to move to as a service model is again, a topic that can really be established as part of this transition to cloud native and has been greatly in focus for us. And finally there is a bit of a balancing act in some of the use cases in how do we use new technologies such as machine learning, in creating new use cases. For Nokia as a supplier of both the network functions, which are now getting distributed into public cloud in the private cloud, and on the Edges, as well as control systems of different types of OSS, BSS, including charging, enablement, IOP, et cetera, et cetera. It's really about how do we bring these things together in a way that creates use cases that the service providers can position, especially in their now quest to go after B2B, in leveraging their network. >> Yeah, and you guys bring huge strength there on the Nokia side. I want to ask you specifically, as CSPs are collaborating with you guys to leverage that strength of cloud native and open, the question comes up is how fast can they get to a modern, agile, open infrastructure and how fast can they enable value? And that's where this whole interoperability thing, or this interplay between cloud native and innovation hub comes together. Can you take us through how you see that? How cloud service providers are approaching cloud native today? Because that's really kind of where the focus is, how do I get the operating value, with the speed and agility of development, and obviously built in all the security and everything else? That seems to be the disruptor and let's face it, it's been a slow world in the telco place. So cloud has been a speed game with value, but it's an operator game too. What's your thoughts? >> That's right. And look, I'll take you maybe just a little bit into the history of this transition because only just a few years ago, most networks were really build purely with what we're now referring to as SPMS, physical network functions, really a equipment that was installed in a certain pop locations and created the network. We started this transition to virtualization in the world of VMS and then cloud ready and now cloud native. And it's been a few years for these things to come together. And maybe the most important thing that we must get right, is that as we dis-aggregate and in a way it complicates the deployment, if you would, by a few factors, we want to give the tools to indeed go fast, because the name of the game in moving to cloud native is to speed up innovation. So what we've been doing and in collaboration now with Google, is on the one hand, we need to make sure that all of the network functions, the operating models work, into this aggregated cloud. They can go all the way from a private data center through the Edge, into the central data center. Then on the Nokia side, we have to bring the capabilities to tie networks together, be able to migrate workloads between the locations. And maybe most importantly, as we release new versions of our software, as we enable new capabilities, we want to put it in the hands of the service providers and in turn the developers right away. So we need to enable true continuous delivery in the sense that is very familiar in the cloud world, but quite new to telco. So we have- >> You know. All right sorry- >> Go ahead. >> I'm sorry to interrupt, continue. >> Maybe just to give a very practical example of a customer that we share in Europe, Telenet we're starting with an on-premise Anthos based type of deployment, but keeping an eye on moving to the Edge and into the broader cloud, really enabling themselves to be in a multi region and with true Northbound open interfaces for new use cases to be implemented. >> Yeah, Ron, I want to get your thoughts on this. Dave Vellante, my cohost and I we're talking just in an earlier segment around how major inflection points have some characteristics. They all have characters in common. Usually it's proprietary to open shifts happen. And one in point we were looking at was like the nineties, the late eighties, early nineties, when you had proprietary networking protocol stacks, and then OSI stack came out. Obviously we know what happened from there TCP/IP created the best biggest wave of innovation in the computer history we've seen. Similar things happened here. And I won't say proprietary per se, but there were 5G and telcos stuff, that's kind of like operator centric legacy. Are you starting to see this openness come back and I'm not going to say a full stack, but new kinds of disruption and 5G is opening up the door because it's not just consumer technology. A lot of people like the CEO of Intel saying this is a business technology, commercial technology, more than consumer because of the characteristics. And you combine that with cloud native and say openness with scale with cloud services, but you mentioned Google, that's a public cloud. And so public cloud is going to be a disruption, 'cause it brings scale. So it reminds me of this inflection point where you have this new shift and you mentioned networks, these networks are connecting. So you've got a public cloud and Google's known for their networks and their cloud is being highly scalable and secure. But they're not the only network in town. You got a 5G and you got Backhaul, you got all kinds of new heterogeneous environments. What's your comment on that? Because this is what people are talking about. Where's the shift going to go? What wave is this? What's this going to look like? Is this a true disruption or is it more of the same? What's your thoughts? >> I think it's a true disruption. One of the biggest parts of 5G that would enable these new use cases is slicing. Now slicing is a big word describing something that most of us in networks know for quite some time, really the ability to create some kind of a piece of the network that is shared between partners for a particular purpose, with a particular SLA that contains bandwidth and licensing or requirements, locations, et cetera, et cetera. Now the ultimate goal is for an enterprise to be able to interface with the public cloud and with their operator and consume resources completely dynamically. Now, you talked about Google and public cloud. And obviously anybody that used GCP knows that at any point in time, you can go into a region, you can reserve what you need, use what you need, create results, and then either keep it move away, open new locations, et cetera, et cetera. One thing is missing, the connectivity over the mobile air interface to your user. And slicing allows us to combine the power of the true cloud with the ability to dynamically and programmatically, create a slice for a particular purpose. And for us, the ultimate goal is that really networks would become programmable and a developer or their user would be able to interface with the system and literally create network in code. Now there's going to be quite a lot of building blocks required to reach that goal, given that today, most of it is static. But it starts with at least being able to orchestrate resources out of the network, tie them into termination point that by themselves are annex, that are cloud native and potentially even running in the true public cloud and then attach them into a use case. Now you also mentioned openness and Nokia had been on this open path for quite some time in creating choice for our customers, but now with Google coming in with GCP for example, the interface that we create with technology such as Apogee enable openness, not just for our customer being the CSP, but also for the developer to come in from the outside and reside within the ecosystem that they chose and still be able to consume and even create services dynamically. And we enable it with products that interface with that on the other side, which we can get in there. >> Yeah, what's interesting. What you're saying is interesting, I would just call it out because I think it's important. We hear this all the time is that with the Edge and the devices, people are managing an end to end workflow from an application standpoint. But that's very difficult when you don't have networks that are being managed as a heterogeneous environment. So that's a key point you made. So the question I have for you is how can operators best manage this wave? Because this is the holy grail you're talking about here. We're talking about end to end visibility into the workflow as a developer, with the shift left security being built in. No one's debating that, everyone knows that. So as an operator, how do I starting today operate and manage through this? 'Cause I got to operate a large network. It's almost like swapping the engine out at 30,000 feet in the airplane. So how should operators think about taking this step? >> So the first thing to do is to really just accept the fact that there is going to be true legacy... And there are plenty of 3G networks today still operating around the world. There's going to be, to what is now starting to look like semi legacy. So VNX that have only been delivered to networks, maybe in the past couple of years and will carry 4G traffic and will stay in production for quite some time and manage this transition between PMS, VMs, running VNX, VMs running containerized workloads, and true cloud native, which may be bare metal. And as we're working with Google on Anthos, it literally enables this transition by creating a position for us to put the workload in each step of the path, as well as in multiple locations around the network. And what Nokia brings into this equation, it's also a unified view for the operator. So if you're an operator that today runs on VMs on prem, you have some workflows defined and you've been running them in a certain way, we want to keep that view as similar as possible with the tooling that you were enabled to use over the past few years, but create extensions that connects us into the containerized workflow and then a true cloudified workflow out of the same environment. And this is actually in part what we've been collaborating both with some CSPs, as well as with Google on enabling. >> Ron Haberman, CTO, Nokia Cloud Network Services Group, thank you so much for that insight, great commentary. Thank you for sharing your perspective on the future of telco, telco cloud, telco Edge, unifying those networks end to end. Great stuff, thank you for coming on "theCube." >> Thank you. >> Okay, this is Cube's coverage of Mobile World Congress 2021. We're in person and we're virtual, it's a hybrid event. Thanks for watching. >> John clearly the power of the public cloud in that interview. Great job, by the way, >> It was great to get Nokia and to hear the operator impact, and that's awesome. More to come. So back to the studio, Adam and the team back at the studio.

>> From the CUBE studios in Palo Alto in Boston, bringing you data-driven insights from the CUBE in ETR. This is breaking analysis with Dave Vellante. >> Earlier these week, the U S department of justice, along with attorneys general from 11 States filed a long expected antitrust lawsuit, accusing Google of being a monopoly gatekeeper for the internet. The suit draws on section two of the Sherman antitrust act, which makes it illegal to monopolize trade or commerce. Of course, Google is going to fight the lawsuit, but in our view, the company has to make bigger moves to diversify its business and the answer we think lies in the cloud and at the edge. Hello everyone. This is Dave Vellante and welcome to this week's Wiki Bond Cube insights powered by ETR. In this Breaking Analysis, we want to do two things. First we're going to review a little bit of history, according to Dave Vollante of the monopolistic power in the computer industry. And then next, we're going to look into the latest ETR data. And we're going to make the case that Google's response to the DOJ suit should be to double or triple its focus on cloud and edge computing, which we think is a multi-trillion dollar opportunity. So let's start by looking at the history of monopolies in technology. We start with IBM. In 1969 the U S government filed an antitrust lawsuit against Big Blue. At the height of its power. IBM generated about 50% of the revenue and two thirds of the profits for the entire computer industry, think about that. IBM has monopoly on a relative basis, far exceeded that of the virtual Wintel monopoly that defined the 1990s. IBM had 90% of the mainframe market and controlled the protocols to a highly vertically integrated mainframe stack, comprising semiconductors, operating systems, tools, and compatible peripherals like terminal storage and printers. Now the government's lawsuit dragged on for 13 years before it was withdrawn in 1982, IBM at one point had 200 lawyers on the case and it really took a toll on IBM and to placate the government during this time and someone after IBM made concessions such as allowing mainframe plug compatible competitors to access its code, limiting the bundling of application software in fear of more government pressure. Now the biggest mistake IBM made when it came out of antitrust was holding on to its mainframe past. And we saw this in the way it tried to recover from the mistake of handing its monopoly over to Microsoft and Intel. The virtual monopoly. What it did was you may not remember this, but it had OS/2 and Windows and it said to Microsoft, we'll keep OS/2 you take Windows. And the mistake IBM was making with sticking to the PC could be vertically integrated, like the main frame. Now let's fast forward to Microsoft. Microsoft monopoly power was earned in the 1980s and carried into the 1990s. And in 1998 the DOJ filed the lawsuit against Microsoft alleging that the company was illegally thwarting competition, which I argued at the time was the case. Now, ironically, this is the same year that Google was started in a garage. And I'll come back to that in a minute. Now, in the early days of the PC, Microsoft they were not a dominant player in desktop software, you had Lotus 1-2-3, WordPerfect. You had this company called Harvard Presentation Graphics. These were discreet products that competed very effectively in the market. Now in 1987, Microsoft paid $14 million for PowerPoint. And then in 1990 launched Office, which bundled Spreadsheets, Word Processing, and presentations into a single suite. And it was priced far more attractively than the some of the alternative point products. Now in 1995, Microsoft launched Internet Explorer, and began bundling its browser into windows for free. Windows had a 90% market share. Netscape was the browser leader and a high flying tech company at the time. And the company's management who pooed Microsoft bundling of IE saying, they really weren't concerned because they were moving up the stack into business software, now they later changed that position after realizing the damage that Microsoft bundling would do to its business, but it was too late. So in similar moves of ineptness, Lotus refuse to support Windows at its launch. And instead it wrote software to support the (indistinct). A mini computer that you probably have never even heard of. Novell was a leader in networking software at the time. Anyone remember NetWare. So they responded to Microsoft's move to bundle network services into its operating systems by going on a disastrous buying spree they acquired WordPerfect, Quattro Pro, which was a Spreadsheet and a Unix OS to try to compete with Microsoft, but Microsoft turned the volume and kill them. Now the difference between Microsoft and IBM is that Microsoft didn't build PC hardware rather it partnered with Intel to create a virtual monopoly and the similarities between IBM and Microsoft, however, were that it fought the DOJ hard, Okay, of course. But it made similar mistakes to IBM by hugging on to its PC software legacy. Until the company finally pivoted to the cloud under the leadership of Satya Nadella, that brings us to Google. Google has a 90% share of the internet search market. There's that magic number again. Now IBM couldn't argue that consumers weren't hurt by its tactics. Cause they were IBM was gouging mainframe customers because it could on pricing. Microsoft on the other hand could argue that consumers were actually benefiting from lower prices. Google attorneys are doing what often happens in these cases. First they're arguing that the government's case is deeply flawed. Second, they're saying the government's actions will cause higher prices because they'll have to raise prices on mobile software and hardware, Hmm. Sounds like a little bit of a threat. And of course, it's making the case that many of its services are free. Now what's different from Microsoft is Microsoft was bundling IE, that was a product which was largely considered to be crap, when it first came out, it was inferior. But because of the convenience, most users didn't bother switching. Google on the other hand has a far superior search engine and earned its rightful place at the top by having a far better product than Yahoo or Excite or Infoseek or even Alta Vista, they all wanted to build portals versus having a clean user experience with some non-intrusive of ads on the side. Hmm boy, is that part changed, regardless? What's similar in this case with, as in the case with Microsoft is the DOJ is arguing that Google and Apple are teaming up with each other to dominate the market and create a monopoly. Estimates are that Google pays Apple between eight and $11 billion annually to have its search engine embedded like a tick into Safari and Siri. That's about one third of Google's profits go into Apple. And it's obviously worth it because according to the government's lawsuit, Apple originated search accounts for 50% of Google search volume, that's incredible. Now, does the government have a case here? I don't know. I'm not qualified to give a firm opinion on this and I haven't done enough research yet, but I will say this, even in the case of IBM where the DOJ eventually dropped the lawsuit, if the U S government wants to get you, they usually take more than a pound of flesh, but the DOJ did not suggest any remedies. And the Sherman act is open to wide interpretation so we'll see. What I am suggesting is that Google should not hang too tightly on to it's search and advertising past. Yes, Google gives us amazing free services, but it has every incentive to appropriate our data. And there are innovators out there right now, trying to develop answers to that problem, where the use of blockchain and other technologies can give power back to us users. So if I'm arguing that Google shouldn't like the other great tech monopolies, hang its hat too tightly on the past, what should Google do? Well, the answer is obvious, isn't it? It's cloud and edge computing. Now let me first say that Google understandably promotes G Suite quite heavily as part of its cloud computing story, I get that. But it's time to move on and aggressively push into the areas that matters in cloud core infrastructure, database, machine intelligence containers and of course the edge. Not to say that Google isn't doing this, but there are areas of greatest growth potential that they should focus on. And the ETR data shows it. But let me start with one of our favorite graphics, which shows the breakdown of survey respondents used to derive net score. Net score remembers ETR's quarterly measurement of spending velocity. And here we show the breakdown for Google cloud. The lime green is new adoptions. The forest green is the percentage of customers increasing spending more than 5%. The gray is flat and the pinkish is decreased by 6% or more. And the bright red is we're replacing or swapping out the platform. You subtract the reds from the greens and you get a net score at 43%, which is not off the charts, but it's pretty good. And compares quite favorably to most companies, but not so favorite with AWS, which is at 51% and Microsoft which is at 49%, both AWS and Microsoft red scores are in the single digits. Whereas Google's is at 10%, look all three are down since January, thanks to COVID, but AWS and Microsoft are much larger than Google. And we'd like to see stronger across the board scores from Google. But there's good news in the numbers for Google. Take a look at this chart. It's a breakdown of Google's net scores over three survey snapshots. Now we skip January in this view and we do that to provide a year of a year context for October. But look at the all important database category. We've been watching this very closely, particularly with the snowflake momentum because big query generally is considered the other true cloud native database. And we have a lot of respect for what Google is doing in this area. Look at the areas of strength highlighted in the green. You've got machine intelligence where Google is a leader AI you've got containers. Kubernetes was an open source gift to the industry, and linchpin of Google's cloud and multi-cloud strategy. Google cloud is strong overall. We were surprised to see some deceleration in Google cloud functions at 51% net scores to be on honest with you, because if you look at AWS Lambda and Microsoft Azure functions, they're showing net scores in the mid to high 60s. But we're still elevated for Google. Now. I'm not that worried about steep declines, and Apogee and Looker because after an acquisitions things kind of get spread out around the ETR taxonomy so don't be too concerned about that. But as I said earlier, G Suite may just not that compelling relative to the opportunity in other areas. Now I won't show the data, but Google cloud is showing good momentum across almost all interest industries and sectors with the exception of consulting and small business, which is understandable, but notable deceleration in healthcare, which is a bit of a concern. Now I want to share some customer anecdotes about Google. These comments come from an ETR Venn round table. The first comment comes from an architect who says that "it's an advantage that Google is "not entrenched in the enterprise." Hmm. I'm not sure I agree with that, but anyway, I do take stock in what this person is saying about Microsoft trying to lure people away from AWS. And this person is right that Google essentially is exposed its internal cloud to the world and has ways to go, which is why I don't agree with the first statement. I think Google still has to figure out the enterprise. Now the second comment here underscores a point that we made earlier about big query customers really like the out of the box machine learning capabilities, it's quite compelling. Okay. Let's look at some of the data that we shared previously, we'll update this chart once the company's all report earnings, but here's our most recent take on the big three cloud vendors market performance. The key point here is that our data and the ETR data reflects Google's commentary in its earning statements. And the GCP is growing much faster than its overall cloud business, which includes things that are not apples to apples with AWS the same thing is true with Azure. Remember AWS is the only company that provides clear data on its cloud business. Whereas the others will make comments, but not share the data explicitly. So these are estimates based on those comments. And we also use, as I say, the ETR survey data and our own intelligence. Now, as one of the practitioners said, Google has a long ways to go as buddy an eighth of the size of AWS and about a fifth of the size of Azure. And although it's growing faster at this size, we feel that its growth should be even higher, but COVID is clear a factor here so we have to take that into consideration. Now I want to close by coming back to antitrust. Google spends a lot on R&D, these are quick estimates but let me give you some context. Google shells out about $26 billion annually on research and development. That's about 16% of revenue. Apple spends less about 16 billion, which is about 6% of revenue, Amazon 23 billion about 8% of the top line, Microsoft 19 billion or 13% of revenue and Facebook 14 billion or 20% of revenue, wow. So Google for sure spends on innovation. And I'm not even including CapEx in any of these numbers and the hype guys as you know, spend tons on CapEx building data centers. So I'm not saying Google cheaping out, they're not. And I got plenty of cash in there balance sheet. They got to run 120 billion. So I can't criticize they're roughly $9 billion in stock buybacks the way I often point fingers at what I consider IBM's overly wall street friendly use of cash, but I will say this and it was Jeff Hammerbacher, who I spoke with on the Cube in the early part of last decade at a dupe world, who said "the best minds of my generation are spending there time, "trying to figure out how to get people to click on ads." And frankly, that's where much of Google's R&D budget goes. And again, I'm not saying Google doesn't spend on cloud computing. It does, but I'm going to make a prediction. The post cookie apocalypse is coming soon, it may be here. iOS 14 makes you opt in to find out everything about you. This is why it's such a threat to Google. The days when Google was able to be the keeper of all of our data and to house it and to do whatever it likes with that data that ended with GDPR. And that was just the beginning of the end. This decade is going to see massive changes in public policy that will directly affect Google and other consumer facing technology companies. So my premise is that Google needs to step up its game and enterprise cloud and the edge much more than it's doing today. And I like what Thomas Kurian is doing, but Google's undervalued relative to some of the other big tech names. And I think it should tell wall street that our future is in enterprise cloud and edge computing. And we're going to take a hit to our profitability and go big in those areas. And I would suggest a few things, first ramp up R&D spending and acquisitions even more. Go on a mission to create cloud native fabric across all on-prem and the edge multicloud. Yes, I know this is your strategy, but step it up even more forget satisfying investors. You're getting dinged in the market anyway. So now's the time the moon wall street and attack the opportunity unless you don't see it, but it's staring you right in the face. Second, get way more cozy with the enterprise players that are scared to death of the cloud generally. And they're afraid of AWS in particular, spend the cash and go way, way deeper with the big tech players who have built the past IBM, Dell, HPE, Cisco, Oracle, SAP, and all the others. Those companies that have the go to market shops to help you win the day in enterprise cloud. Now, I know you partner with these companies already, but partner deeper identify game-changing innovations that you can co-create with these companies and fund it with your cash hoard. I'm essentially saying, do what you do with Apple. And instead of sucking up all our data and getting us to click on ads, solve really deep problems in the enterprise and the edge. It's all about actually building an on-prem to cloud across cloud, to the edge fabric and really making that a unified experience. And there's a data angle too, which I'll talk about now, the data collection methods that you've used on consumers, it's incredibly powerful if applied responsibly and correctly for IOT and edge computing. And I don't mean to trivialize the complexity at the edge. There really isn't one edge it's Telcos and factories and banks and cars. And I know you're in all these places Google because of Android, but there's a new wave of data coming from machines and cars. And it's going to dwarf people's clicks and believe me, Tesla wants to own its own data and Google needs to put forth a strategy that's a win-win. And so far you haven't done that because your head is an advertising. Get your heads out of your ads and cut partners in on the deal. Next, double down on your open source commitment. Kubernetes showed the power that you have in the industry. Ecosystems are going to be the linchpin of innovation over the next decade and transcend products and platforms use your money, your technology, and your position in the marketplace to create the next generation of technology leveraging the power of the ecosystem. Now I know Google is going to say, we agree, this is exactly what we're doing, but I'm skeptical. Now I think you see either the cloud is a tiny little piece of your business. You have to do with Satya Nadella did and completely pivot to the new opportunity, make cloud and the edge your mission bite the bullet with wall street and go dominate a multi-trillion dollar industry. Okay, well there you have it. Remember, all these episodes are available as podcasts, so please subscribe wherever you listen. I publish weekly on Wikibond.com and Siliconangle.com and I post on LinkedIn each week as well. So please comment or DM me @DVollante, or you can email me @David.Vollante @Siliconangle.com. And don't forget to check out etr.plus that's where all the survey action is. This is Dave Vollante for the Cube Insights powered by ETR. Thanks for watching everybody be well. And we'll see you next. (upbeat instrumental)

(upbeat music) >> Announcer: From around the globe, it's theCUBE covering Google Cloud Next OnAir '20. >> Hi everybody, welcome back. This is Dave Vellante and you're watching theCUBE's continuous coverage of Google Next OnAir, nine weeks of cloud content. There was just a buffet of content. It started out with sort of industry trends, we got into productivity, infrastructure, deep dive in security analytics, database, app modernization, cloud AI and we're wrapping up the nine weeks with Business Application Platform. And with me is Amit Zavery, who's the general manager and vice president of the Business Application Platform at Google cloud. Amit, always a pleasure. Thanks for coming on. >> Definitely, Thanks for having me Dave. You're welcome. So tell me more about this role and kind of your swim lane, if you will. >> Definitely. I think as you can imagine with especially all this digital transformation getting accelerated due to COVID, that's a huge amount of demand and interest from customers to be able to build applications, integrate them and modernize systems and automate all of them very quickly and easily in a cost effective manner. So that has been driving a lot of the thinking at Google for quite a few of years already. But I think that a little more accelerated with some of the work we've been doing previously with our stack around API management, no code app development, automation capabilities in our platform as well and we're bringing a lot of these things together in an offering so that customers can take advantage of a lot of the innovation in this space and improve the digital transformation and innovate quickly as well. So that's what we've done with Business Application Platform. We're providing capabilities for any kind of developers, be it the technical user who has a lot of programming experience as well as the other spectrum, which are the system developers who don't really have any kind of a software engineering background, but want be able to build applications and automate and there're processes very quickly and easily. So we want to provide them all the tooling and capabilities so that they can do that and be more effective than they would otherwise be. >> I want to ask you about digital transformation. I mean, obviously it's a word that's thrown around, a phrase that's thrown around a lot and there's a spectrum of what it means to people. I was talking to somebody the other day, and this obviously will resonate with you, with your background in enterprise apps but they were talking about an ERP system that was put in 15 years ago before Iphone, before cloud and it just says you know those systems are fossilized and the business has changed dramatically but the ERP system hasn't. To them, digital transformation was basically upgrading the system. And so, but obviously to Google and your role, it means something much different, doesn't it? >> I saw a lot more, right? I think no doubt having a digital application. No doubt is important, it's a good starting point. But you said some of the systems are pretty old and they're not connected together between different parts of the business. And this is huge amount of manual processes. and there's a lot of, I would say disparate pieces which never come together if you don't really put a well thought out digital transformation project or intimidation around it. So a lot of times all these businesses, when they're connecting things together, they do need a platform to kind of bring their business processes, their workflows, their applications, and the interaction between different users, be it external and internal into a more automated system. And that's really where digital transformation really shines and improves a lot of the ability for customers to compete as well as meet their customer demands and be more effective than otherwise they would be. >> And cloud is critical there but it's connecting to an ecosystem. So I want to ask you about your strategy of the Business Application Platform. And of course, Google is known for great tech. It's very open, a lot of downstream contributions, you think about Kubernetes and Anthos. So how would you describe your group strategy and how does it dovetail with Google cloud overall? >> Yeah no doubt, I think the cloud is kind of the central team underneath the covers, right? So it does run on a multicloud and hybrid mechanism. So that is available anywhere as well as you have choice of and flexibility of deployment. It's also a platform on top of Anthos so you have the advantage of multicloud as well as support for all the different systems. You might have both on-prem as well as in various other cloud providers as well. And the other things we are doing is we're taking advantage a lot of the AIML capabilities, a lot of our data analytics capabilities and bringing a lot of those underlying technologies and extracting it out to a SaaS based offering on Business Application Platform. So the customer's perspective, they want to build an application, They use, we recently acquired a company called AppSheet at the start of this year. So they can easily now use AppSheet to build those applications without writing a single line of code. And then if you create that application, it provides connectivity to also a lot of other systems out there be it applications like SAP, salesforce.com. But also a lot of legacy systems in house or custom systems you might have built and put connectors to that. And then allows you to now monetize and take systems and provide API so then you can now extend it and bring it out into the partner community, as well as customers to be able to build applications around that as well. So it connects all those things together, takes advantage of the Google cloud and the ecosystem we have built and provides customers and users a much easier way to kind of build and deliver applications and automation on it. >> Okay, so that makes sense in terms of why you acquired, made that acquisition. But I want to talk about no code development. It's something that you've been talking about quite a bit lately. Tell the audience, what is no code development? Why do we need it? >> Yeah, I think if you look at some of these report nowadays, there's a limited amount of capacity and capabilities IT can provide. And for complicated and very large systems, you of course need IT to kind of make your business efficient and implement a lot of the systems together. But there a lot of other applications which departments and line of business users want to use and build and they can't wait around for IT. And there, I think you look at some of the reports from Gartner, for example, they're going to be four times more developers outside IT than they are going to be in IT. And those folks are not going to be software engineers, they're not professional programmers but still they need efficiency and automation and application development tools. This is where no code really brings a lot of value. So tools like AppSheet, which we acquired, as market leading no code development platform makes it very easy for anybody without any experience writing any code and building applications. They can point click and start building an application and be effectively produce something which they can collaborate and use between different users inside the company or outside without spending a lot of money and time to deliver that. And that's why the no-code application platforms are becoming very popular because it does make your business more efficient, makes your business more automated, it's cost effective and it's very productive, right? So that has been the trend now more and more, and we speak a lot of, especially nowadays, if you look at telehealth, you look at say, if you want to do mortgage lending, you want to build an app easily quickly without having to wait around for it. You are interacting with a lot of people through digital mediums now and instead of people using a lot of digital tools. And that's why I think there's no-code a platforms become much more important, powerful and usable in this mechanism as well. >> Okay, I think it's important to point out. We're talking about no-code here, not low-code, no-code, there's a difference. >> There's a big difference. I think the low-code was kind of the interim stage where tools, which are coming out into the market were available to make it a little easier for development but not enough to kind of democratize it for everybody. With no-code, you are now allowing and opening it up to a lot more vaster community of users who can multiple build applications and take advantage of a lot of technology innovation happening in the platform like cloud and other things as well. Media reporting is another good example where you want to be able to build dashboards quickly and easily without again writing codes. So the no-code becomes a lot more important and usable for this kind of needs. >> So I wonder if we could stay on this for a minute. You've used the example of programming a VCR, many of us remember how difficult that was early on and now it's just you talk to it and it works. You used that as an example of what no code is like. Can you explain that a little bit more? >> I think, basically it should be natural, right? I think when we used to program a VCR, you'd read some manuals, you'd read some code, you have to kind of go through the whole process. I don't even know how many of our audience nowadays even know about that or even think about it anymore. makes us all very dated. But it was a very cumbersome process and then you would worry about whether you recorded it or not, and that you got it on the right time and did you get the right show? And then you'd up deleting the wrong things or whatever it may be the case. A Lot of those things are now getting extracted and simpler in terms of the no-code development where if you are looking for a particular application interface, if you're looking to build say a mortgage lending app, a lot of those building blocks are already available to you. You kind of making it specific to your need, but really using a lot of the building blocks and get you the final solution versus learning about wiring, everything yourself with a lot of pieces of code in there, right? So that's becoming a straightforward. We have customers like Solvay, for example, which is a large chemical automation company. And they are being able to build multiple applications with 400 plus users inside the company and deliver a lot more automation inside the organization than they would otherwise be. >> So you kind of touched on this with the different modules and capabilities and functions within an organization. But when I think about that VCR analogy, I mean, it's doing one thing and that's pretty simple. How does that apply? And again, you kind of touched on it, but it seems like IT is much or business is much more complicated but so this actually works? >> Yeah I think it's a works. We provide a lot of our kind of templates and system examples in the no-code tooling, as well as the a lot of complexity, which is built underneath the cover which is completely hidden from the user perspective, right? So when I'm building an application, I'm still getting the power of the cloud, I'm getting the power of our underlying platform, the scalability, reliability, the security, the integration, all that kind of stuff is brought into this tooling without you having to learn any of those things. And that really is where the power comes in and it's flexible enough that you can kind of pretty much do any kind of application deployment. I will not build a full blown eCommerce site with it, but I can do a lot of typical day to day kind of applications like vacation approval or things you might want to do for mortgage lending, understanding a telehealth app for doctors. And so we're seeing a lot of the, we had customers who were doing this for hospital bed tracking during the COVID current crisis going on, right? Where they want to know what kind of PPE is available? How many beds are empty? So tracking that at the hospital level, at the health care departments, all that kind of stuff we're done very quickly and powerfully than they otherwise would have. >> Is there a concern amongst your customers about privacy, governance, compliance, security with all these citizen developers? How do you ensure that those fundamental edicts of the organization are preserved? >> Yeah, I think this is a similar thing than any other system we will make available to our customers in the cloud. We guarantee that all the data is only available to the people who are allowed to based on the privileges and the security profiles and everything else. So there's no really any kind of fear from the system perspective that you will get access to something which you're not allowed to. You do log in, you do have to have an account, you do have to have all the relevant credentials before you get access to it. Same thing with privacy. We make sure that nothing is shared with anybody who's not allowed to. So we apply the same tenant, same kind of rules to any kind of data or information we keep in the cloud for any other application development. All we're doing is abstracting it out and making it easier so that everybody who wants to build things don't have to learn 20 other things to kind of get going. So the ability to do this in faster and quickly is there but all the underlying philosophy and principles still remain intact into our products as well. >> Right, makes sense. You guys obviously you have this API first mentality. I've heard about things like API gateway, Apogee, data capabilities, automating AppSheets. Can you bring us up to date on some of those innovations? >> You will see a lot of updates in this area. So we've been innovating very aggressively. Of course, we have a product called Apogee which is a market leading API management product in the industry today. It does the full life cycle of APIs, including testing, development, publishing, monetization, security, all that kind of stuff for API. And we have thousands of customers using it today. Beyond that, what we've done is we've added a lot of ability from that Stack to kind of expose APIs and consume them through AppSheet. So we have an API data source for AppSheet. So it's easy for you to find APIs and build an app is one. Second, we also released something called API gateway, which is a very high performance, low latency cloud native gateway running on serverless. So a lot of applications are built on serverless platform nowadays. And if you want to now manage that to an API layer, we provide a gateway on top of Google cloud. So anybody can also use it very quickly and easily as well. So that's another area which we added. And the third thing which we are announcing is something called actually AppSheet automation. So as I talked about AppSheet for app development, we're also now adding a lot of workflow and business process automation underneath the covers as part of AppSheet. That's something we're making available to our customers so they can automate a business process and connect things together very quickly but also get the value of the automation in their application as well. So those are new innovations, new releases we're adding to our platform as part of business application offering so that anybody can take advantage of it. >> I mean, I love this trend because to the extent you've been able, I mean, this is the Holy grail. If you can enable business users, they're closer obviously to what's going on, closer to the customer and they can respond much more quickly. Are you seeing, for instance a user builds an app using an AppSheet, are you seeing because of the API richness, are you seeing other innovation around those occurring? Are we at that point yet? Or are they still kind of islands of- >> No, i think The scope of usage is growing very fast, right? We have more than 400,000 users on AppSheet are building applications. Thousands of thousands of applications been built on it, millions of users kind of using it at the end from the logging in and using those applications as well. So I think the innovation is happening very fast, where they're connecting different things, as well as now building an ecosystem, even in Solvay as example, I was giving you. The multiple apps are built by multiple departments, and they're kind of bringing those ecosystem together into a reuse, be able to kind of find new use cases around it, those kinds of things as well. >> Are organization's coming back to say, hey, we love this? But remember when we first started spinning up VMs, it was so easy. Are you seeing organizations say, hey, we need better line of sight on it. It could be in a catalog of what we're doing or marketplace. Are you seeing demand for that? >> Yeah, so we seeing a lot. I think there's a lot of reuse. Like we have partners who also build a build applications and put that into our marketplace as well and then we're also seeing a lot of interest from solution providers who build applications on top of what you might have as modules and deliver to our end customers as well. So now there's a lot of interest in that regards and there's a lot of good examples coming out and we're seeing a lot of ways of bringing some of these things together as well. >> I mean, how does machine intelligence, AI, how does it fit into your whole agenda and strategy? And what does it mean for a customer? >> Yeah, I think as you know, Google has been innovating and has been one of the top AIML vendor out in the marketplace today. And we have definitely taken a lot of advantage of that innovation and experience in that. So for example, when I talked about automation, a lot of the automation in AppSheet is being done using AIML technologies Google has built in terms of predicting the way the customer is going to use the application, how they're going to be able to take a business process and connect them together. A lot of that things have been built using AIML technologies at Google cloud. Beyond that on API management for our operational dashboards and operational monitoring. So make sure that we can give you five nines of availability. We kind of really use lot of AIML technologies to understand anomalies, figure out where the issues might be and predict those things and make sure that we kind of fixing those things in advance before things go down, right? Same thing in security, abuse, usage, make any kind of DDoS kind of things or whatever may be the security issues as well. We use a lot of AIML capabilities to make sure we're monitoring and securing our systems as well. So we're in the middle of everything. >> Right. Has the pandemic, you know, the last 150 days, obviously it's changed things and we've talked about digital transformation being accelerated. How are you thinking about sort of the go forward as a result of the post isolation era? >> Yeah, I think this is probably going to be... I don't think this is good. Once we get out of the COVID situation whenever that happens, some of the way we work and where we operate will definitely change than what it used to be pretty much in a way. So I do expect a lot more of video conferencing, for example I do expect a lot of digitalization. I do expect a lot of automation requirements, everybody trying to be more efficient and sharing things and working remotely. Those kinds of things will continue as a trend. So from our perspective, the work we're doing around API management, around digitalization, around digital transformation, around AppSheet automation, all those things are probably right things for the right kind of future where these technologies and tech offerings we do in Google cloud as well as other things we are doing broadly will make a big difference for everyone. >> Yeah recently, I want to kind of end just to get your industry perspectives. Recently, I wrote a piece that a video just on the enterprise app space, kind of the systems of record. And, you know, these are entrenched companies and even you see some of the new SaaS startups, but they're large companies and done very well. I was trying to sort of noodle on where does the potential of disruption come? Where's the new innovation? And I think some of the things that we're talking about here, this no-code, cloud. I mean, obviously you guys play in the application space but it seems like a part of your strategy is to enable developers to really build new types of applications. And maybe that's where the next wave of disruption comes, perhaps in vertical industries, perhaps with this no code. What are your thoughts on that? >> I know, you're right. I think the productivity in the collaboration space, no doubt is going through a huge transformation and change. I mean, Google being in the forefront of it with G Suite. If you look at some of the numbers and the metrics in terms of video conferencing and this collaboration in general has been going through the roof in terms of usage. AppSheet combination with that, for example, right? So if you're building an application, you're doing video conferencing, I might be able to build a telehealth app very quickly and easily. So that's where the no-code and collaboration, for example and productivity becomes part that story. Similarly, as you said, the industry solutions where you probably heard some of the innovation we're doing in that area by specific industry with business processes. Again, adding an API layer underneath the covers to connect different systems together, and then publishing that to an application through AppSheet becomes, again, a very much a great thought out solution and very easy to kind of provide that to our customers as well. So changes in productivity and collaboration, changes in no code app development, having a platform to connect all these things and make it easy to adopt is really a big part of our story as we move forward. And that's the reason why we're kind of increasing our investment in the Business Application Platform and just kind of pour to a lot of things we're doing. We did an acquisition on Looker, for example, for business intelligence. And that's an important part as part of business application platform, to be able to provide intelligence to what people are doing, what data you have to be able to do self service reporting, and then publish that to on a dashboard as well, which might be created through AppSheet or custom doesn't matter. But we provide you that whole end to end onto it. And then technology like Anthos ties it together to give you multicloud as well as a hybrid kind of delivery mechanism. So you have flexibility of choice how you deliver and run those systems. >> Yeah, I love that Looker example for sure. We're basically seeing the democratization of business apps. Amit, thanks so much for coming back in theCUBE. It's great to see you. Hopefully sometime soon we can see each other face to face. >> Yeah. I look forward to it and thank you again for having me. >> And thank you for watching our continuous coverage on theCUBE with Google's Next OnAir nine weeks of coverage. Keep it right there. Be right back after this short break. (upbeat music)

>> From our studios in the heart of Silicon Valley, Palo Alto, California. This is a CUBE Conversation. >> Hi everyone, welcome to this CUBE Conversation here in Palo Alto, I'm John Furrier. Host of theCUBE here in theCUBE studios. I'm joined with Ronen Schwartz. Senior Vice President and General Manager of Data Integration and Cloud Integration at Informatica, CUBE alumni, been on multiple times, here to do a preview round. Informatica World coming up as well as just catch up. Ronen, great to see you. >> Really happy to see you, you guys have a beautiful place here in Palo Alto. >> I know you live right around the corner so I'm expecting to see you come on multiple times and come in and share your commentary, but I want to get your thoughts, it's been a couple of months since we last chatted, interesting turn of events. If you go back just, you know, September of last year, and then you had Amazon Reinvent. They announced Outpost, multi-cloud starts hitting the scene, first it was hybrid. First it was all public cloud. But now the realization from customers is that this is now a fully blown up cloud world. It's cloud operations, it's just public cloud for unlimited cloud natives activity, on premise for existing workloads, and a complete re-architecture of the enterprise. >> Yes, and I think from Reinvent to Google Next just a week before, I agree with you. It's a world of hybrid and a world of multi-cloud. I think a lot of exciting announcements and a lot of changes, I think from my perspective what I see is that the Informatica customers are truly adopting cloud and hybrid and as data is growing, as data is changing the cloud is the place that they actually address this opportunity in the best way. >> So I know we've talked in the past. Your title is Data Integration, Cloud Integration. Obviously integration is the key point. You're starting to see APIs going to a whole other level, with Google they had acquired Apogee, which is an API marketplace, but with microservices and service meshes and Kubernetes momentum you're starting to see the advent of more programmability. This is a big trend, how is that impacting your world? Because at the end of the day you need the data. >> Yes, it actually means that you can do more things with the data in an easier way and also it means that you can actually share it with more users within the enterprise. I think that especially the whole ability to use containers, and Kubernetes is a great example of how you can do it, it's actually giving you unparalleled scale, as well as simplicity from the obstruction perspective. And it allows more and more developers to build more value from the data that they have. So data is actually in the core. Data is the foundation, and really a lot of this new technology allows you to build up from the data more valuable capabilities. I'm really happy that you're mentioning Apogee because one of the things that Google and Informatica notice together is the need for API to actually leverage data in a better way, and we strike a very strategic partnership that has gone into the market in the last few months allowing every user of Informatica Ipaas to basically publish APIs in a native experience from the Informatica Ipass directly to Apogee and vice versa, everything that you build in Informatica Cloud is basically automatically an API inside Apogee, so users get more value from data faster. >> So can you give an example, 'cause I think this is one of the things we saw at Google as a tell sign or the canary in the cole mine whatever trend parameter is that end to end CICD pipe lining, seamless execution in any environment seems to be the trend. What you're kind of getting at is this kind of cross integration, can you give an example of that Informatica Cloud to Apogee example of benefit to the customer or use case and why that's important. >> Yes, definitely, so if I'm a retailer or a manufacturer, I'm actually looking into automate processes. There is nothing better than deleting the Ipaas from Informatica to actually automate process anything from order to cash or inventory validation or even next best recommendation coming from some AI in the backend. Once you have created this process exposing this process as an API is actually allowing multiple other services. Multiple other capabilities to very easily leverage that, right, so this is basically what we're doing, so what an individual in the retailer is doing is they're actually defining this process of order to cash, and then they're publishing it as an API in one click, at that stage anybody anywhere can very very easily consume that API and basically use this process again and again. >> And that means what? Faster execution of application development? >> It means faster execution of application development. It also means consistency and basically scale so now you don't need to redevelop that. It's available as an API, you can reuse it again and again, so you do it in a consistent way, when you need to update you need to change, you need to modernize this process you modernize it once and use it again and again. >> Sorry to drill down on kind of the unique use case here, but this points to the integration challenges out there and the opportunities. Mentioned Google Next, Google Cloud. You've got a relationship with Amazon. This is part of your strategy for ecosystem. This is critical, integration is becoming Amit Walia was saying that you can compose. Have that foundation for the data and you compose your applications, but if you got to have a lot of composition, you need to have integration points, that's going to be either APIs or some sort of glue layer. This is huge, this is like the entire thesis of cloud architecture. >> Right, and the reality that our customers are facing is basically irrelative from multi-cloud, they will use a best of breed cloud for CRM, a best of breed cloud for ERP as well as a best of breed cloud for their data warehouse, their databases as well as their analytics, AI, et cetera. In that world, the only thing that is kind of common across this cloud is the data. And if you're actually able to allow the data to reside in the best place but you keep the metadata managed centrally by software like the one at Informatica is giving you are getting the best of breed of all of these offerings without actually paying a fine for that. >> So you guys are in a lot of magic quadrants out there in terms of categories of leadership and focus on data from day one. As you talk about your ecosystem, can you explain what that means because you're also an ecosystem partner of cloud players but you also have your own ecosystem. Talk about the ecosystem, how is it laid out? What's the update, what are some of the momentum points, can you share just an overview of how that's all happening? >> Yes, definitely, so when we're looking into our partnership with Microsoft Azure, with AWS, with JCP, we're not talking about just Informatica supporting the technologies that they build, we're talking about Informatica supporting the technologies that they're building as well as their ecosystem of partners. We're talking about an end-to-end solution that supports the entire ecosystem. What that actually translates to is Informatica building services that are giving best of breed experience for users within this cloud environment and really giving you the full power of data management integration, data quality. Master data management, data security. Data catalog across all of this cloud. In a way you're right, we can look at it in the same way as like we have an ecosystem and in that ecosystem we're seeing a lot of strategic partners that are very very large, definitely all of these cloud scales are key partners for us and for our customers, but we're also seeing a huge amount of smaller, innovative vendors that are joining this ecosystem, and Informatica World in May 20th is a great place to come and actually see these vendors. We're actually showing for the first time our AI and cloud ecosystem in one place and these vendors are coming and they're showing how are they leveraging Informatica technology to basically bring new value in AI, in machine learning, in analytics to their customers. If you ask me, like, what is Informatica doing to help them, we're basically making the data available in the best way for their offering, and that kind of allowed them to focus on their innovation rather than how do they work in the different places. >> Rowen, you got ahead of me on the Informatica World question, but you just brought it out, you're doing an innovation. Let's talk about Informatica World. Because again, this data, there's a lot of sessions, so you do the normal thing. We've covered multiple years there. Integration's the key point, what are, why should someone come to Informatica World if they're a customer or a prospect? Now, you mentioned the AI zone. What's the core theme that you're going to be seeing there from your group and from the company? >> Informatica World this year is an amazing place for people to come and see the latest that happens within the cloud and hybrid journey, a great place to actually see next generation analytics and all the innovation there, it is a great place to see customer 360 and master data management and how can that change your organization as well as an amazing place to see data security and data privacy and a lot of other innovations around data. But I would actually say that it's great to see everything that Informatica can share with you. It is a better place to see what our customers and our partners are sharing. And especially from a partnership perspective Informatica World 2019, you're actually going to see leaders from Google, you're going to see leaders from Microsoft, you're going to see leaders from AWS, the people that are leading the best data warehouses in the world the best analytics in the world as well as innovators like DataRobot and Databricks that are changing the world and are actually advancing technology very very fast. >> And the AI zone, there's a cloud and AI zone. I've seen them, I know it's here from the prep. What does that mean, what's someone, AI's going to be hot, I think that's a big theme. Getting clarity around, as Amit kind of shared with us on a previous interview. AI's hot because automation kind of left the blocking and tackling. But the value of creation is going to come from using the data, where's the, and it's not integrated, you can't get the data in. If it's not integrated, you can't leverage machine learning, so having access to data makes machine learning get great. The machine learning gets great, AI is great. So tell us what's going on with it. Give a little sneak preview. >> It's actually amazing what we can do leveraging the iron machine learning today, right? I wake up in the morning and I say Alexa, good morning, and I actually get back what's the weather and what's happening. I'm getting into my car, Google is telling me how fast will I get to the office or the first meeting. I left to come here and I knew exactly what's the best route to take. A lot of that is actually leveraging AI and machine learning, I think it's not a secret that the better your data is the better the machine can learn from the data. And if your data is not good, then learning can actually be really really bad. You know, sometimes I can use, like with my kids. If their learning books are bad, there's no way that they can actually get to the right answer. The same as data, data is so critical. What we're seeing is basically data engineers, data operation becoming a super strategic function to make AI and machine learning even possible. Your ability to collect enough data to make sure that the data is ready and clean for AI and machine learning is critical. And then once the AI and machine learning eventually contributed the automation, the decision making, the recommendation, you have to put it back in to the data pipes so that you are actually able to leverage them to do the right thing. >> You know, you, I think you nailed this one. We've talked about this before but I think more important than ever, data cleansing or data cleaning was always an afterthought in the old data warehouse world where well, we're not getting the answers we wanted so you kind of have to fail to figure out that the data sucks so you had to get the data to be better, now it's much more acute in the sense that people realize that you need quality data so there's now new capabilities to make sure there's a process for doing that on the front end, not on the back end. Talk about that dynamic, because this is something that is critical in the architecture, and how you think about data pipe-lining, data management, the things that you guys do, this is an important trend. Take a minute to explain that. >> Yes, I totally agree with you and I think that the rise of the importance of data quality, and it actually is coming also as part of the pattern of data governance and we want to make sure that the processes exist to make sure that the data that we make available for our AI research, for analytics, for our executives and data workers that this data is really the right data is critical. To actually support that, what we are seeing is people defining data governance process. What are the steps that the data needs to go before it is actually available for the next step? And what is nice today is that this is not people that the data needs to go through. These are processes, automation, that can actually drive data quality, it goes from things that are very very basic. Let's remove duplicate data, but also into the fact that you actually identify anomalies in the data and you ask the right questions so that that data doesn't go in. >> Is this the kind of topics that people will hear at Informatica World? >> Definitely, they will hear about how they can actually help the organization get the data right so that machine learning automation, and hyper growth is actually possible. >> You're excited about this market, aren't you? >> Super excited, I mean I think each and every one of us, we're going to see a lot of innovation coming out and I consider myself lucky that data is actually in the center of all of this innovation and that we're actually able to help the customers and our partners be successful with that. >> Yeah, you and I were talking before you came on camera, I wish I was 23 again right now, this is a great time to be in tech, everything's coming together. You got unlimited compute, machine learning's rocking and rolling, everyone's all kinds of diverse areas to play on, it's kind of intoxicating to be in this environment, isn't it? >> I totally agree, and I will add one additional thing to the reasons, agility. Like the fact that it all is available at your fingertip, and you can actually achieve so much with very little patience is really really amazing. >> This compose ability really as the new developer modernization renaissance. It's happening. >> Yes, yes, and as we usually say it all starts from the data. >> Okay, Ronen Schwartz, we're talking Informatica World but getting an update on what's going on because data integration, cloud integration, this is the number one activity people are spending their time on. You get it right, there's huge benefits. Ronen, thanks for coming in and sharing your insights, appreciate it. >> Hey, my pleasure. >> Okay, this is theCUBE, here for CUBE Conversation here in Palo Alto, California at theCUBE headquarters, I'm John Furrier Thanks for watching. (jazz music)

(upbeat music) >> Narrator: Live, from San Francisco, it's theCUBE. Covering Google Cloud Next '19. Brought to you by Google Cloud and its ecosystem partners. >> Hey, welcome back everyone. Live coverage here with theCUBE in San Francisco, California, Moscone South. I'm John Furrier with Dave Vellante. Here at Google Next 2019 we have here in theCUBE for the first time as a Google employee, Cube alumni, Amit Zavery. Head of platform for Google Cloud. Great to see you. >> No, thanks for having me. It's always a pleasure to see you guys again. >> So you're just now on the job, not even two months. 25 years, 23? >> Amit: Close to 25, yes. >> Three years at Oracle. TK's over here as CEO, part of Google. They got a lot of action going on here. >> Oh definitely, it's very exciting times. I've spent some time kind of learning and hearing about what the vision at Google has been and it's very clear they're here to win it and we have the investment that they're making, the innovation which is going on is very attractive and very exciting, I think. >> Always love our conversations in the past in theCUBE around platform You got a deep technical background. Um you've been in the business. You've seen many waves of innovation up and down the stack. So it's not, I don't think there is a move you haven't seen in the business. But Cloud, there's some new things happening, it's going to, but it's all part of other things, kind of meshing together. Pun intended, service meshes. >> Yeah. >> But as customers move to the cloud from on prem, having cloud, multiple clouds, multiple dimensions of change. >> Yes. What's your take on this because, I think, you have a unique perspective in that 20 something years at Oracle, leader in databases and software? >> Yeah. >> Google's got great leadership in tech. >> Yep. >> But now they're standing up a whole new cloud business, at a whole 'nother level. Your thoughts? >> Yeah, yeah, I think if you look at what's going on and I talk to a lot of customers and developers and IT teams and clearly, I think, they are overwhelmed with different things, you said, going on in this space, so how do you make it simple? How do you make it open? How do you make it hybrid so you have flexibility of choices? It's becoming top of the mind for many of the users nowadays. The lock-in, which many vendors currently provide, becomes very difficult for many of this uh users who kind of keep moving around and meet the business requirements. So I think having a solution and a technology stack, which is really understanding the complexity around that and making it simple enough to adopt, I think is important. >> You know, one of these things, we watch these key notes very carefully. Especially when you have a new CEO, Thomas Kurian. We follow NetApp as well as his twin brother. But his first opening line was a little you know, tip of the cap to Diane Greene, which I thought was very classy. We hear all the other things. Scale, the multi-cloud piece. And then Jennifer Lynn gave a great demo, and she said something in her demo I want to get your reaction to. What are the business benefits of Anthos' negotiating contracts? Meaning choice. >> Yes. So lock-in's shifting. This means lock-in is not your grandfather's lock-in. You know, you worked at Oracle which has an amazing lock-in spec in databases. This is a whole new world, it's capabilities, the new lock-in. Or what is the new, I mean I guess lock-in is a function of-- >> Amit: No I mean, (mumbles) Again, it's not ideas. Lock-in is definitely not the right way of kind of looking at it. The way to kind of really make sure you attract users and attract customers, is to really make a value add capabilities in there. Right and then if the customers really love it they're going to keep on using it. In respective you call it lock-in or provide some propriotariness or not. >> Value. >> Right. Value is complete, exactly. I think it's important to really think about how you build some of the services and technologies which give this value. But also give you the choice of moving if you want to. That I think, if you start from the beginning that there's no choice, then the value doesn't come out, ever. >> John: So value's the new lock-in. >> It has to be, it has to be. >> Alright, talk about apogee. because you're one of the key piece of the platform is apogee. Talk about your focus, you're still learning, getting your feet wet. But again, you've got your running shoes on, you're experienced. What is that platform that you're handling. Give a quick description. >> Apogee, an acquisition, which Google made a few years ago. And I think it's a kind of center spaced offering which allows customers to really do the life cycle and digital transformation of the technology they have in the back end. Right and uh the apogee team has done a great job of keeping, being the market leader and keeping innovating. I think the next phase for us as we look forward is one is to make it very completely integrated and make it very seamless with all the rest of Google properties we have and the assets we have and second thing is to really add other capabilities around it so that customers depending on what they want to do like line of business or IT steams to be able to now unlock a lot of the application data they have and expose it to both the customer, spotners, as well as internal employees in a simple easy manner. So a lot of wantization can happen, monitoring, all these things can be really great for them. >> John: So there's a lot of head room in apogee. >> Very very much yes. >> By technology and business benefit. >> Dave: So head of platform. You know we in the industry we hear platform and we kind of understand what it's all about. People outside the industry maybe, some of an inmorphis concept to them. So my first question though before we get into this, what attracted you to Google? >> No I think that basically if I look at the strength Google brings as a organization, be it in terms of innovation, be it in terms of investment, the infrastructure and the willingness to invest in the long term. I think that is really really attractive. I think for me to kind of have the ability to kind of invest and grow a lot of the footprint we have to offer to a customer and solve the business problems in a little more longer term than short term oriented, I think is very very exciting. >> So let's talk more about platforms. You think of platforms as a set of capabilities steeped in sort of an architectural premise, there's maybe some dog mutt in there that you've got have have these capabilities then ultimately you're going to deliver value and turn into products and customer value. What is platform to you and what's that sort of how should we think about that fly wheel effect? >> Yeah in the way that I look at the platform is basically one is capabilities the customer require, one to build an application, integrate it, and be able to secure it and manage it right? So all the different capabilities you'd acquire instead of having to get piece meal of it and have to tie it all together yourself, you can now do it with a much easier fashion and one that provides you the capability as one integrated capability right? So that's really what I think of the platform. >> So your constituencies are obviously your internal developers, your external developers. Who are you serving with that platform? >> A few audiences. No doubt to others to be able to build an application. But I think the bigger audience if you go beyond that is really, apps IT and a line of business. So to them more and more line of business at doing extension to an application. The doing integration without having the right code. And if you can provide a powerful tool where any person who is not a professional developer can do that kind of tasks and get more power out of the application of the business systems they're running, the value is immense. And that's really I think the audience we need to be able to attract and be able to now cater to so that they have a lot more benefits from using the Google platform. >> Is that part technical capability, part you know, go to market? How do you view that? >> It's definitely a lot of work to be done from the product perspective to make it simple um make it more consumable by apps IT and line of business user where such professional developers but also in terms of how you design it and make it self service and attractive enough for an audience who is not really kind of having to do deal with a lot of this themselves. >> Okay so that's presumably what we should be expecting from you. Maybe talk about your priorities and give us a little you know, how should we be, sort of, judging you down the road, judging you not the right term but what milestones should we be looking for? >> A little too early, I mean this is four weeks at Google but I think uh, the way to look at this is are we basically catering to all the new requirements you see from a lot of the next generation users and I think uh, the ability for us to kind of expand that capability in a platform offering so it's not just catering to one kind of an audience but also new buyers which we seeing as users coming into the platform. So over the next six months or nine months we start seeing some of those things which you do. >> Is this a new role? Was it sort of by committee before or? >> No I think Google has been doing a lot of these things I think when you start to think about a rationalized skew of the areas and how do you keep on expanding. There's a lot of headroom for Google cloud to go and we continue to kind of look at where we need to be and how we can keep on expanding and meet those requirements. >> Amit talk about Thomas Kurian also known as TK onstage. He's been busy, he's going to come on the queue eventually. He's talking to a lot of customers we heard. Hundreds of customers been promoted. You worked in that oracle, what's he like? Share some color commentary on TK, he set the chops obviously in enterprise. What's he like? People, he's new CEO. >> Yeah, yeah I've worked with Thomas for 18 plus years and I think he's probably one of the smartest person I've worked with for sure. But I think it's very strategic vision and clear execution. I think combination is rare for a lot of people. We have a very clear vision but how do you execute and get operationally make those things possible? I think that really what Thomas brings to any any place he gets into. Right so he has a very clear idea where we should be going, he talks to a lot of customers, get you all the input and has a clear plan in terms of how we deli, what we should be doing. And then he gets very involved wit the execution operational work we should be doing right? So that is the unique thing to bring to the table. >> John: He can get down and dirty if you want him to do it. >> Yeah oh very much, yes yes. (laughs) He's fun to work with in that way. >> So I want to ask you a personal question I know we've been following your career, certainly you got a great, great technical background as well. As you look at the cloud, and having all that enterprise experience, you see many ways in innovation, hardware, software, evolution to the cloud. As you look at the modern enterprise, you mentioned IT apps, apps IT, it's a whole new app revolution renaissance happening. You got hybrid and multi cloud. What does it mean to be enterprise ready? If you could take all the learnings in your career, as you look at the new, you know, out in the new pasture, of the next ten years plus, you see changes happening, what's your vision? >> I think that enterprise ready for us, I mean I think that's what we are doing a lot, if you saw today from Thomas' announcements, there's a lot of things we are planning and we have been doing already and we need to do as well. But I think it's understanding the existing landscape of a customer. And enterprise, let's use them on and invest on many customers we've made and systems you can't rip and replace instantly. And to be able to understand how you operate in that kind of constrains as well as context is very important when you build new generational applications. So kind of having the connectivity and the tissue of kind of making it all work together, while you kind of modernize and digitally transform your offering, I think is a critical way of thinking. And I think that's what you'll start seeing a lot more of that from the product planning, product delivery perspective and understanding that yet many customers have to pay before they can move everywhere right? So you saw today with Thomas' announcement about hybrid which allows you to kind of inter operate with existing investments. Multicloud because you might be running into multiple environments. As well as you saw some the things we doing to really make it easy and simple to integrate with the existing portfolio that customers have. >> You know what's interesting is that you know, he also mentioned industries, which you guys at Oracle certainly you know every industry's got unique requirements. What's interesting and kind of validates on a queue we've, Dave and I have talked for years that the clouds horizontally scalable yet with data and AI you can be differentiated in the industry level so you can actually have best of both worlds now. That's what I see kind of coming together at the platform 'cause you have to have a platform that enables. How do you see that? Do you agree with that? Do you see that shaping out? How would you see that ability to take advantage of the horizontal scale, the ability, connective tissue, plus enabling this horizontal specialization for industry solutions? >> Yeah, no I think you saw again some of the announcements around that, with how do you make it not pertinent to a particular end user. Alright each industry has specific data models, specific use cases and you need to be able to provide and cater to that. So you have to have a horizontal platform which can cater to multiple, different things you want to do. But then you'd have to provide the main specific content and that's when you'll start seeing as you think that Oracle does some of the things that other companies do that and we will do some of that stuff as well. >> Well that's interesting point because you're in a point of a horizontal scaling because it creates this, uh, another disruption agenda. Yeah you can disrupts search and productivity software but you can also triverse industries with your partners. We were talking about apogee before with the API economy. You can see Google and its partners getting the healthcare, financial services, autonomist vehicles, I mean virtually every industry because it's data and that to me is the exciting part of platform. >> Oh no doubt. I think Google also brings a lot strength in terms of the modeling and the AI work they've been doing for many years and that can really exhilarate capabilities around these things in a much more easier way than it could be otherwise. >> And you kind of have a clean sheet of paper in the enterprise >> That's right. >> Amit great to see you, I'm glad we can get your first public appearance at Google here in theCUBE. Appreciate the commentary, I want to finally, final question is, personal question. If you were a cloud architect for a large enterprise that had complex to simple work loads and everything in between, what would you be doing in advising and setting up and architecting, what would you, what would you do? >> I think that the best thing to do I think is to identify different categories of applications. I don't think it's one thing fits all right? So define what are the categories of applications you have. Some of them are cloud ready and make sure that you can, status are ready and adoption and moving to more agile delivery model. Second on the application which you might want to now start thinking about rewriting and then having a road map associated with that so you're not trying to go and rip and replace because that has an impact on your business and capabilities right? And then third thing we might want to look at retiring some of the staff and then hey you have to modernize, I mean there's nothing, there's no way out of it. Just like software goes through cycles of innovation and changes every ten years you see a new stack of technologies come out and you have to remain competitive by adopting some of the states. So I think that's kind of in recognizing what you have and how you adopt is probably the number one thing. >> And you'll be probably driving containers throughout >> No doubt, I think the technologies out there now with the containerization, much much simpler to kind of go and run and write one's, run anywhere kind of thing. >> Those scenarios is kind of what the guy from Kohl's was saying today in the key note >> Yeah they're very similar yeah. >> He didn't say this, this one use case of just leave it there which was interesting to me. So, do nothing was not his strategy. It is, it is for some. >> Amit Zavery here on theCUBE. Great, great insight, thanks for sharing. Thanks for taking the time out of your busy schedule. Amit Zavery head of platform at Google Cloud here on theCUBE. I'm John Furrier. See us with more day one coverage. We're here for three days. Live, we'll be right back after this short break. (upbeat music)

>> fly from San Francisco. It's the Cube covering Google Club next nineteen Rock Tio by Google Cloud and its ecosystem Partners. >> Okay, welcome back, everyone. We're here live in San Francisco for cubes coverage of Google next twenty nineteen. I'm suffering my coast, David. Want to many men also doing interviews out, getting, reporting and collecting all the data. And we're gonna bring it back on the Q R. Next to gas mark in l. A. Who's a senior technical account manager? AccuWeather at enough was the director product manager. Google Cloud Platform. Now welcome back to the Cube and >> thank you for >> coming on. Thank you. >> You got a customer. Big customer focus here this year. Step function of just logo's growth. New announcements. Technical. Really good stuff. Yeah. What's going on? Give us the update. AP economies here, full throttle. >> I mean, you know, the great thing is it's a pea eye's on all fronts. So what you saw this morning was about standardizing the AP eyes that cloud infrastructure is based on. You saw, You know, how do we build applications with AP eyes at a finer grained level? Micro services, you know, And we've had a lot of great customer examples of people using, and that's what you know with AC. You weather here talking about how do you use a P ice to service and build business models reached developer ecosystems. So you know. So I look at everything today. It's every aspect of it brings it back home tape. Yas. >> It's just things that's so exciting because we think about the service model of cloud and on premise. And now cloud, it's integration and AP Eyes or Ki ki and all and only getting more functional. Talk about your implementation. Aki weather. What do you guys do with Apogee? Google clouds just chair. What >> would implementation is so accurate? There's been running an AP I service for the past ten years, and we have lots of enterprise clients, but we started to realize we're missing a whole business opportunity. So we partnered with Apogee, and we created a new self survey P developer portal that allows developers to go in there, sign up on their own and get started. And it's been great for us as far as like basically unlocking new revenue opportunities with the FBI's because, as he said, everything is a p i cz. We also say everything is impacted by the weather. So why not have everyone used ac you other empty eyes to fulfill their weather needs? >> It wasn't like early on when you guys were making this call, was it more like experimenting? Did men even have a clue where they're like You's a p I I was gonna start grass Roots >> Way knew right >> away like we were working very heavily with the enterprise clients. But we wanted to really cater to the small business Is the individual developers to weather enthusiasts are students. Even so, we wanted to have this easy interface that instead of talking to a sales rep, you could just go through this portal and sign upon your own. It get started and we knew right away there is money to be left or money to be had money left on the table. So we knew right away with by working with apogee and creating this portal, it would run itself. Everyone uses a P eyes and everyone needs to weather, so to make it easier to find and use >> and what was it like? Now let's see how >> it we've been using it now for about two years, and it's been very successful. We've we've seen great, rather revenue growth. And more importantly, it's worked as a great sales channel for us because now, instead of just going directly to an enterprise agreement and talking about legal terms and contracts, you can go through this incremental steps of signed up on your own. Do a free trial. Then you could buy a package. You can potentially increase your package, and we can then monitor that. Let them do it on their own, and it allows us ability to reach out to them and see could just be a new partner that we want to work with, or is there a greater opportunity there? So it's been great for us as faras elite generator in the sales channel to really more revenue, more opportunities and just more aware these'LL process a whole new business model. It's amore awareness, actually replies. Instead, people were trying to find us. Now it's out there and people see great Now it Khun, use it, Get started >> Admission in the back end. The National Weather Service, obviously the government's putting up balloons taking data and presumably and input to your models. How are they connecting in to the AP eyes? Maybe described that whole process. Yeah. Tilak, You other works >> of multiple weather providers and government agencies from around the world. It's actually one of our strengths because we are a global company, and we have those agreements with all kinds of countries around the world. So we ingest all of that data into our back and database, and then we surface it through our story and users. >> Okay, so they're not directly sort of plugging into that ap economy yet? Not yet. So we have to be right there. Well, I >> mean, for now we have the direct data feeds that were ingesting that data, and we make it available through the AC you other service, and we kind of unjust that data with some of our own. Augur those to kind of create our own AccuWeather forecast to >> That's actually a barrier to entry for you guys. The fact that you've built those pipelines from the back end and then you expose it at the front end and that's your business model. So okay, >> tell about that. We're where it goes from here because this is a great example of how silly the old way papering legal contracts. Now you go. It was supposed to maybe eyes exposing the data. Where does it go from here? Because now you've got, as were close, get more complex. This is part of the whole announcement of the new rebranding. The new capabilities around Antos, which is around Hey, you know, you could move complex work clothes. Certainly the service piece. We saw great news around that because it gets more complex with sap. Ichi, go from here. How did these guys go? The next level. >> So, you know, I think that the interesting thing is you look at some of the themes here that we've talked about. It's been about unlocking innovation. It's about providing ways that developers in a self service way Khun, get at the data. The resource is that they need ask. They need them to build these types of new types of applications and vacuum weather experience and their journey on. That's a great example of it. Look, you know, moving from from a set of enterprise customers that they were serving very well to the fact that really ah, whole ecosystem of applications need act needs access to weather data, and they knew that if they could just unlock that, that would be an incredibly powerful things. So we see a lot of variants of that. And in fact, a lot of what you see it's on announcements this morning with Google Cloud is part of that. You know, Google Cloud is very much about taking these resource is that Google is built that were available to a select few and unlocking those in a self service fashion, but in a standard way that developers anywhere and now with andthe oh, switches hybrid a multi cloud wherever they are being able to unlock those capabilities. So why've you? This is a continuation of a P. I promise. You know, we're very excited about this because what we're seeing is more and more applications that are being built across using AP eyes and more more environments. The great thing for Apogee is that any time people are trying to consume AP eyes in a self service fashion agile way, we're able to add value. >> So Allison Wagner earlier was we asked her about the brand promise, and she said, We want our customers, customers they're not help them innovate all the way down our customers customers level. So I'm thinking about whether whether it gets a bad rap, right? I mean, >> look at it >> for years and we make make jokes about the weather. But the weather has been looked uncannily accurate. These they used to be art. Now it's becoming more silent. So in the spirit of innovation, talk about what's happening just in terms of predicting whether it's, you know, big events, hurricanes, tornadoes and some of the innovation that's occurring on that end. >> Well, I mean, look at from a broader standpoint to weather impacts everything. I mean, as we say, you look at all the different products out there in the marketplace that use whether to enhance that. So there's things you can do for actionable decisions, too. It's not just what is the weather, it is. How can whether impact what I'm doing next, what I'm doing, where I go, what I wear, how I feel even said every day you make a conscious and subconscious decision based on the weather. So when you can put that into products and tools and services that help make those actionable decisions for the users. That makes it a very, very powerful products. That's why a lot of people are always seeking out whether data to use it to enhance their product. >> Give us an example. >> What So a famous story I even told Justin my session earlier. Connected Inhaler Company named co hero they use are FBI's by calling our current conditions every time a user had a respiratory attack over time, it started to build a database as the user is using your inhaler. Then use machine learning to kind of find potential weather triggers and learn pattern recognition to find in the future. Based on our forecast, a p I When white might that user have another attack? So buy this. It's a connected health product that's helping them monitor their own health and keep them safe and keep them prepared as opposed to being reactive. >> The inhaler is instrumented. Yeah, and he stated that the cloud >> and that's just that's just one product. I mean, there's all kinds of things connected, thermostats and connect that >> talks about the creativity of the application developer. I think this highlights to me what Deva is all about and what cloud and FBI's all about because you're exposing your resource products. You don't have to have a deaf guy going. Hey, let's car get the pollen application, Martin. Well, what the hell does that mean? You put the creativity of the in the edge, data gets integrated to the application. This kind of kind of hits on the core cloud value problems, which is let the data drive the value from the APP developer. Without your data, that APP doesn't have the value right. And there's multiple instances of weird what it could mean the most viable in golf Africa and Lightning. Abbott could be whatever. Exactly. So this is kind of the the notion of cloud productivity. >> Well, it's a notion of club activity. It's also this idea of a digital value change. So, you know, Data's products and AP Icer products. And and so now we see the emergence of a P I product managers. You know, you know this idea that we're going to go and build a whole ecosystem of products and applications, that meat, the whole set of customer needs that you might not even initially or ever imagine. I'm sure you folks see all the time new applications, new use cases. The idea is, you know, can I I take this capability or can I take this set of data, package it up us an a p I that any developer can use in anyway that they want to innovate on DH, build new functionality around, and it's a very exciting time in makes developers way more productive than they could have been in >> this talks about the C I C pipeline and and programmable bramble AP eyes. But you said something interesting. I wanna unpack real quick talk about this rise of a pipe product managers because, yes, this is really I think, a statement that not only is the FBI's around for a long time to stay, but this is instrumental value. Yes. What is it? A byproduct. Men and okay, what they do. >> So it's a new concept that has Well, I should say a totally new concept. If you talk to companies that have provided a P eyes, you go back to the the early days of you know, folks like eBay or flicker. All of these idea was that you can completely reinvent your business in the way that you partner with other companies by using AP eyes to tie these businesses together. And what you've now seen has been really, I'd say, over the last five years become a mainstream thing. You've got thousands of people out there and enterprises and Internet companies and all sorts of industries that are a P I product managers who are going in looking at how doe I packet a package up, the capabilities the business processes, the data that my business has built and enable other companies, other developers, to go on, package these and embed them in the products and services that they're building. And, uh, that's the job of a P A. Product measures just like a product manager that you would have for any other product. But what they're thinking about is how do they make their A P? I success >> had to Mark's point there. He saw money being left on the table. Small little tweak now opens up a new product line at an economic model. The constructor that's it's pretty *** good. >> It's shifting to this idea platform business models, and it's a super exciting thing that we're seeing the companies that successfully do it, they see huge growth way. Think that every business is goingto have to transition into this AP I product model eventually. >> Mark, what's the what's the role of the data scientist? Obviously very important in your organization and the relationship between the data scientists and the developers. And it specifically What is Google doing, Tio? Help them coordinate, Collaborate better instead of wrangling data all day. Yeah, I mean, >> so far, a data scientists when we actually have multiple areas. Obviously, we're studying the weather data itself. But then we're studying the use case of data how they're actually ingesting it itself, but incorporating that into our products and services. I mean I mean, that's kind of >> mean date is every where the key is the applications have the data built in. This is to your point about >> unnecessarily incorporating it in, but to collaborate on creating products, right? I mean, you're doing a lot of data science. You got application developers. All right? You're talking about tooling, right? R, are they just sort of separate silos or they >> I mean, we obviously have to have an understanding of what day it is going to be successful. What's gonna be adjusted and the easiest way to adjust it a swell so way obviously are analyzing it from that sense is, >> I say step back for a second. Thiss Google Next mark. What's your impression of the show this year? What's the vibe? What's this day? One storyline in your mind. Yet a session you were in earlier. What's been some of the feedback? What's what's it like >> for me personally? It's that AP eyes, power, everything. So that's obviously what we've been very focused on, and that's what the messaging I've been hearing. But yeah, I mean, divide has been incredible here. Obviously be around so many different great minds and the creativity. It's it's definitely >> talk. What was the session that you did? What was the talk about? Outside? Maybe I was some >> of the feedback. Yeah, I mean, so the session I gave was how wacky weather unlock new business opportunities with the FBI's on way. Got great feedback was a full house, had lots of questions afterwards that followed me out to the hallway. It's was actually running here, being held up, but lots people are interested in learning about this. How can they unlock their own opportunity? How can they take what they have existing on and bring it to a new audience? For >> some of the questions that that was kind of the thematic kind of weaken stack rank, the categorical questions were mean point. The >> biggest thing was like trying to make decisions about how for us, for example, having an enterprise model already transitioning that toe a self serve model that actually worked before we're kind of engaging clients directly. So having something that users could look at and on their own, immediately engage with and connect with and find ways that they can utilize it for their own business models and purposes. >> And you gotta be psychic, FBI as a business model, You got FBI product managers, you got you got the cloud and those spanning now multiple domain spaces on Prem Hybrid Multi. >> Well, that last points are very exciting to us. So, you know, if you look at it, you know, it was about two and a half years ago that apogee became part of Google and G C P got into hybrid of multi cloud with aptitude that we were, you know, the definitive AP I infrastructure for AP eyes. Wherever they live. And what we saw this morning was DCP doubling down in a very big way on hybrid of multi clap. And so this is fantastic four. This message of AP eyes everywhere. Apogee is going to be able Teo sit on top of Antos and really, wherever people are looking at either producing are consuming AP eyes. We'LL be able to sit on top of that and make it a lot easier to do. Capture that data and build new business models. On top of it, >> we'LL make a prediction here in the Cube. That happens. He's going to be the center. The value proposition. As those abs get built, people go to the business model. Connecting them under the covers is going to be a very interesting opportunity with you guys. It's >> a very exciting, very exciting for us to >> get hurt here first in the queue, of course. The cubes looking for product manager a p I to handle our cube database. So if you're interested, we're always looking for a product manager. FBI economies here I'm Jeopardy Volante here The Cube Day one coverage Google Next stay with us for more of this short break

>> Live from San Francisco, it's theCUBE, covering Google Cloud Next 2018, brought to you by Google Cloud and its ecosystem partners. (electronic music) >> Hello, everyone, welcome to theCUBE, here, live in San Francisco at Masconi South. We're here with Google Cloud Next Conference. It's Google Next 2018. It's theCUBE's exclusive three days of wall-to-wall coverage. I'm John Furrier, and I'm joined with my co-host Dave Vallente. Jeff Rick's here, the whole team is here. This is a big break out moment for Google Cloud and we're going to break it down for you. Going to have interviews with Diane Green coming in today, Google Executives, Google's top women in the Cloud, top customers, and top people within the ecosystem. Google Cloud is really going to the next level. This show is really about coming out party for two years of work that Diane Green and her team have been doing, transforming Google from the largest Cloud for their own business, to making Google Cloud consumable and easy to use with the technology for large enterprise customers as well as developers around the world, global platform. Dave, we had the keynote here. I'd say Google we're seeing, introduce their Google Cloud service platform GCP certifying partners, Cisco announced on stage they are re-selling Google Cloud, which takes a big objection off the table around not having a quote, "Enterprise ready sales force". Google is in every large enterprise, Google's Cloud is morphing into a large scale technology driven Cloud. The number one advantage they have is their technology, their OpenSource, and now a partnership with Cisco, and all the machine learning and all the infrastructure that they have are bringing out a new look. This is Google's coming out party. This is really two years of hard work, that Diane Green and the team have accomplished. Working, bringing on new people, bringing on a whole new set of capabilities. Checking the boxes for the table stakes, trying to get it to pull position, for the Cloud game, obviously Amazon is significantly ahead of everybody. Microsoft making great progress, their stock is up. Microsoft, although leveraging their core confidency, the enterprise and the office, and all the existing business that they do. Again a B to B, Google bringing in end-user centric view with all the automation. Big announcements. Google Cloud services platform, Histeo is now shipping in production, doubling down on Kubernetes, this is Google looking at new abstraction layers for developers and businesses. Diane Green, not the most elegant in her keynotes, but really hitting all her marks that she needed to hit. Big customer references, and really showcasing their competitive advantage, what they want to do, the posture of Google Cloud is clear, next is the execution. >> So here at Google Next 25,000 registered people, so big crowd. Diane Green said on stage 3000 engineers here, we want to talk to you. The Cisco announcements, classic case of a company without a Cloud, wanting to partner up with somebody that has a Cloud, Google, and Google, without a big enterprise sales presence. Obviously Cisco brings that. So kind of match made in heaven. Obviously, Cisco's got relationships with other Cloud providers, particularly Microsoft but, to me this makes a lot of sense. It's going GA in August, you also saw underneath that, GKE, Google Kubernetes Engine, now it's on prem, so you're seeing recognition of hybrid. We heard Diane Green talk about two years ago when she started John, she got a lot of heat from the analysts. You're not really an enterprise company, you got a long way to go, it's going to take you a decade. She basically laid down the gun and said, we are there. We'll talk about that. We'll talk about what leadership means. You just made a comment that Amazon is obviously in the lead. What is leadership? How does Google define leadership? Clearly they're leading in aspects of the Cloud. Scale, automation, OpenSource, contributing a lot, it makes me wonder, does this hundred plus billion dollar company with a hundred billion dollars in the bank, do they really care about how much money they make in the enterprise? Or are they trying to sort of change the way in which people do development, do programming, that's maybe a form of leadership that we really haven't often seen in the industry. I mean I go back, I harken back, not that it's an exact comparison, but you think about Xerox park and all the contributions they made to the industry, think about the contributions that Google's making with TensorFlow, with Kubernetes, with Istio, a lot of OpenSource chops giving to the community. And taking their time about monetizing it, not that a couple billion dollars or billion dollars a quarter is not monetization, but compared to 25 billion of Amazon, and what Microsoft's doing it's much smaller market share. >> I mean that's a great point about the monet, all the analysts and all the Wall Street guys are going to go to try to figure out, squint through the numbers try to figure out how you make money on this. We've been talking to a lot of the Google Executives and a lot of the engineers leading up to Google Next, we've had great relationship, some of their inside people. The common theme Dave that I'm hearing is absolutely they're playing the long game, but if Google's smart, they will leverage their retail business, ads and other things, and not focus on the short-term monetization, and that's pretty clear, some of the posture. That they're looking at this as an engineering culture, engineering DNA, OpenSource DNA, and they're about speed. When I press Google people and say, "What is the DNA of Google Cloud?". It all comes back down to the same thing, inclusive, open, speed. They're going to focus on how to make things faster, that has always been the culture at Google, make page loads faster, make things go faster. Amazon has the notion of, ship things as fast as possible at lower prices. Amazon is make stuff go faster and make it easy to use from a consumer standpoint so, easy of use has always been a consumer DNA of Google, and now with Cloud, if they don't focus on the short-term, they continue to march the cadence of open, speed, ease of use, and take that user-centric view, to make things easier that's key. I'm really impressed with the announcement, one little kind of technical kind of nuance is this Istio. Istio is an extension of Kubernetes, and this is where you're starting to see some signals from Google on where they're going to be scanning through with (mumbles). And that is as Kubernetes builds on top of containers, and as Kubernetes starts to be more of an orchestration layer, the services that are deployed in the Cloud are going to have more and more functionality. This is classic moving up the stack. This is an only an opportunity to build abstraction layers, that make things really easy to consume, and make things faster. If they can get that position, that beach head, they will enable developer greatness, and that'll maybe hopefully change the game a little bit, and sling shot them into a position that's different than what Amazon, I mean, what Microsoft's doing. Microsoft's just brute force, throwing everything at Cloud. The numbers look good on paper, but will that truly translate to ease of use, large scale, global deployment, managing data at scale. I mean Google's great some technology, and that is their number one thing that they have a their disposal. >> Well Istio, the classic case of dog fooding, right John? I mean there's Google, using tons and tons of micro services for its own purposes, enter gate, how do we simplify this? How do we automate this? And how do we pay it forward? And that's what they do, that's their culture. This is a company that's, again, talk about leadership, they spent well over $10 billion a year on Capex, you can argue easily they got the biggest Cloud in the world, certainly they got more underwater cable, the biggest network in the world, so these are forms of leadership. Diane Green talked about information technology powering every aspect of the business. I mean we've heard that since Nick Carr said IT doesn't matter, but now it seems like more than ever, it's more important. She also said CIO's realized they're not in the data center business, but yet they only have a small fraction of their workloads in the Cloud. This is why she said Google is seeing, and others I'm sure, seeing such big growth in the Cloud. But then she underscored, but we're modern Cloud. We're not lift and shift Cloud. We're not doing what Oracle's doing and sticking the existing apps in the Cloud. We're doing things differently. You talk about this a lot John, you talked to a couple of really high level women in Google, about the new development model, the new programming model, they're really changing the way in which people think about software development. >> Yeah I mean I think one of the things that's clear is that, the modern era can hear around software development. Software development life cycle, certainly we hear, Agile have been going on for the DevOps movement and that's kind of been out there, but what's changing now is that software engineering, or software development, isn't just computer science. You don't need three computer science degrees to do Cloud and do development. The aperture is widening on what computer science is, that's opening up more women in tech, and as Diane Green pointed out on her keynote, there's a re-engineering of business going on, there's new discoveries happening, and half the population is women, and so women should be part of making the products consumed by women and other people. So there's a huge opportunity to fill the gender diversity gap, but more importantly I think what's interesting about Google Cloud in particular is that they kind of figured out something, and it might have been a pop to their arrogance balloon but it used to be, "Oh, everyone wants to be like Google, 'cause we're so huge and we're great". 'Cause they are. Their technology is phenomenal, you look at what Google's built and Urs has been on stage, they have built probably the best most complex system to power their business, and all of a sudden that's come out from map produced paper, Kubernetes, which they're now doubling down on, Google has done amazing. They're about 10 to 15 years ahead of the market in terms of technology by my estimate. The problem that they've had when they first started doing Cloud was, oh just, you want to be like Google. No people don't want to be like Google, people can't be like Google, what they now understand is that people want what Google has, and that's ease of use, DevOps, fully com instead of libraries, com instead of interfaces, really ease of rolling out at scale applications. That's different. People want the benefits of what Google has for their business, not, they don't want to be like Google. I think that was the, I think that Diane Green two years ago, came in and reset. They've hired great enterprise people, and the question is can they catch up? How fast can they catch up? They're checking the boxes, they're doing the table stakes, and can they harvest the best that they're making? Auto ML is a great example. IT operations is going to be decimated as an industry sector. All the industry analysts and the financial analysts have not yet observed this but, anyone who's in the business of IT operations is going to get decimated. Automation's going to take that away and make it a service, it's going to be a human component, but the value is going to shift up the stack. This is something that we're seeing as to look at value of start ups, IT operations, AI operations, this is a new category of the industry, and Google is betting on that. That to me is a big tell sign. >> And we've been talking about the economics of that for years, but I want to come back to something you said. Google clearly was late to the enterprise party, and I think part of the reason you were touching on this is I think they underestimated the degree to which organizations, enterprise in particular, have all this technical debt built up. You can't just rip out and replace, these companies are making money with their existing Oracle databases, with their existing outdated processes, but they're making money, they're meeting Wall Street expectations, they're making their big bonuses so they can't just stop doing that. It'd be like Google to your point, but Google is playing the long game, they are doing something differently, and they're trying to help people get to this new era of software development, so I think that's a very very important point. >> Melody Meckfessel, one of the VP of Engineering, she is going to announce a survey that she did. It's interesting, they pulled the human aspect of development, and they asked the question, "What do you care about?". And developers care about generally the enterprise and kind of Cloud native developers, really two things. Technical debt, and time to push code. If technical debt accumulates, that's a huge problem, makes them unhappy, makes them kind of, not happy with how things are going, and then also speed. If you're shipping code it takes more than a few minutes to get back the commits that it hit. That's a problem. This is a huge issue. You said technical debt. Enterprise IT has been accumulating decades of technical debt, that's now running the company. So as re-engineering the business theme that Diane Green points out, really is spot on, people are going to stop buying IT and be deploying services more in the future, and using those services to drive business value. This to me is a big shift, this is what's going to hurt in (mumbles) and enterprises that, no one's buying IT. They're building platforms, the product is the platform, and the sense of services will enable applications to sit on top of them. This is an absolute mindset shift, and that impacts every vertical that we cover. You've covered IOT and everything else. The way CIOs think about this is they think about a portfolio, and it's just to simplify it. It's like run the business, grow the business, transform the business. And by far, the biggest investments are in run the business, and they can't stop running the business, they can't stop investing in running that business. What they can do is say, okay we can grow the business with these new projects and these new initiatives, and we can transform the business with new models of software development, as we transform into a digital company as a software company. So that it increasingly going to be pouring investments there, and it's slowly sunset, the run the business apps. It happens over decades. It doesn't happen over night. >> Well that's actually the number one point I think that didn't come out in the keynote but Earl's talked about it, where he said the old model is lift and shift. When we covered at the Linux foundation, and the CNC app, and the other shows that we go to is that what containers and Kubernetes are bringing to the market, the real value of that, is that existing IT CIOs don't have to rip and replace old apps, and that's a lot of pressure, the engineering requirements, there's personnel requirements, there's migration, so with Kubernetes and containers, containers and Kubernetes, you can essentially keep them around for as long as they need to be around. So you can sunset the applications and let the apps take its natural life cycle course, while bringing in new functionality. So if you want to be Cloud native right out of the gate, with Google Cloud, and some of these great services, like AI and machine learning that's going on, you can actually bring it in natively, containerize and with Kubernetes and now Istio, build a set of services to connect existing applications, and not feel the pressure and the heat, the budget for it, the engineer for it, to actually hire against it, to manage the existing life cycle. This is a huge accelerant for Cloud native. The rip and replace doesn't have to happen. You can certainly sunset applications at will, but you need to kill the old, to bring in the new. This is a very very important point. >> Yeah so a couple things that Diane Green hit on that I just want to go quickly through her keynote. She talked about, like you say, a small fraction of workloads are actually in the Cloud, but she asked the question, why Google? She said "Look, we're an enterprise company, but we're a modern enterprise company. We take all the information from that Cloud, we organize it, we allow you to put it back intelligently. We've got a global Cloud and it's unbelievably complex. We've got 20 years of scaling and optimizing, with that elite team. We've the most advanced Cloud in the world". She said, she didn't give the number, but many many football size, football stadium size data centers around the world that are carbon neutral with tons of fiber under the ocean, specialized processors, talked about Spanner, which is this amazing distributed, globally distributed consistent transactional database, big query, and she also talked about a consistency with a common core set of primitives. Now I want to ask her about that, 'cause I think she was taking a shot at Amazon, but I'm not sure, if they have a, to make a similar statement, so we're going to ask her about that when she comes on. She also said, the last thing I'll share with you is, "AI and security are basically hand in hand". She said security is what everybody's worried about, AI is the big opportunity, those are the two areas where Google is putting some of its greatest resources. >> That was my favorite sound bite by the way, she said, "Security's the number one worry, and AI is the number one opportunity". Really kind of points to it. On the primitive things, I don't think that's so much a shot at Amazon, as in it's more of multi Cloud. We've been kind of seeing multi Cloud vapor ware for months, past year, 'cause it kind of is. What we were seeing with Cloud native community and OpenSource is multi Cloud can only happen if you can run the same map across multiple Clouds with common interfaces, and that ultimately is I think what they're trying to solve. My favorite sound bites from her keynote is, she said, quote, "We've got 20 years scaling Google Cloud", it's obviously very large, number one Cloud, if you want to put Clouds in benchmarks and without (mumbles) of the enterprise number one, in terms of tech and scale. But she says, "My main job at Google two years ago was surfacing the great technologies and services, and make it easy to use. We have a technical infrastructure, TI, that has big query, Spanner, and then consistencies across all primitives", and she said on top of the technical infrastructure they got Gmail, Gsuite, maps, et cetera et cetera, powering at large scale, dealing with all the threat intelligence, and a ton of body of technology around II. And then to cap it all off, leader in OpenSource. To me this is where Google's betting big, with security as the number one worry, which is a major check box with AI kind of the catnip for developers. And they got security features. If you compare Amazon to Google Cloud, Amazon wins on sense of services in terms of number of features, but the question is, does Google have the right features? These are the questions we're going to have. And the dig at Amazon was Reed Hastings, Netflix CEO, friend of Diane Green, I've seen them both speak at Stanford, so she bumped into, what she said, "Reed Hastings is a power user of Google Chrome and Gsuite", and kind of said how great it is, but that's not Netflix. Now Netflix is an Amazon customer, so interesting jab there was about Reed Hastings personally but not about Netflix being a customer of Google Cloud. The question is, can Diane Green convince Reed Hastings to move Netflix from Amazon to Google Cloud? That's the question I'm going to ask her. >> The other piece of the keynote that I thought was quite interesting was Urs Holzle, who's the Senior Vice President of Technology Infrastructure who was doing Cloud before anybody talked about Cloud, he said, "Cloud's a fundamental shift in computing. GCP gives you access to unlimited computing on the world's largest network". Talked about Spanner, the globally consistent distributed database, ML APIs for doing speech and natural language recognition. Big query, the big data warehouse, basically a silo buster, but he said what's still missing, is essentially that hybrid (mumbles) all the Cloud's are different. I interpreted that meaning closed. So he said, "Things like setting up a network, provisioning a virtual machine, are all different". And basically to your point John, that stuff is going to get automated away. So Istio, they talked about Apogee, visibility, orchestration, serverless, they talked about GKE on prem, which is Google Kubernetes Engine on prem, and then Cisco came out on stage. The big partnership, the big news from the keynote. >> Lets talk about what we're going to look for this week in Google Cloud, and also within the industry. Dave I'll start. I'm looking for Google's technology architecture map, which I love, I think they've got a great solution, does that translate to the enterprise? In other words, can they take what Google has and make it usable and consumable for enterprises without having the be like Google strategy, use what Google has benefited from, in a way that enterprises can consume. I'm going to look for that, see how the technology can fit in there. And then I think the most important thing that I'm going to swing through all the hype here and the comment and the news and Kool Aid that they're spreading around, is how are they making the ecosystem money? Because if Google Cloud wants to take the long game, they got to secure the beach head of the viable, large scale Cloud which I think they're doing extremely well. Can they translate that into a ecosystem flourishing market? Does that make money for developers? They talk about going into verticals as a core strategy and healthcare being one. Can they go in there, in financial services, manufacturing, transportation, gaming and media, and attract the kind of partners and business customers that allow them to do better business? Does it translate the distribution for developers? Do businesses make more money with Google? That to me is the ultimate tell sign with how Google Cloud translates to the market place. Ecosystem, benchmark, and value to customers in terms of money making, utility of the users, and their customers' customers. >> So two things for me John. One is the same as yours is ecosystem. I learned from the SiliconANGLE editorial team, by the way, go to siliconangle.com, there's some great editorial to drop this week in support of just what's going on in Cloud and Google Next, but I learned from reading that stuff, Google late to the party. Only 13,000 partners. Amazon's got 100,000 Cloud partners. (mumbles) has 70,000 Cloud partners. Where, what's the ecosystem strategy, how are they going to grow? How are they going to help make money? The second thing is, basic question, I want to understand what Google wants in the Cloud. What's their objective? I know Amazon wants to dominate infrastructures of services, and be the leader there. I know that Microsoft wants to take its existing software state, bring it to the Cloud. I'm not really clear on what exactly Google's objectives are. So I want to get clarity on that. >> I think it's going to be developers, and one of the things we're going to dig into as the OpenSource. theCUBE coverage here in San Francisco, live coverage of three days wall-to-wall, (mumbles) Dave Vallante, stay with us. thecube.net is where you can find the live feed if you're watching this on SiliconANGLE or around the web, or with Syndicate. Go to thecube.net to get all the content, and siliconangle.com has a Cloud special this week. The team is putting out a ton of content. Covering the news, critical analysis, and what it means and the impact of Google Cloud into the industry and to their customers. So I'm John Furrier, Dave Vallante, stay with us, live coverage here, be right back. (electronic music)

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