(upbeat electronic music) >> Hello everyone, welcome to this CUBE conversation here from the studios in the CUBE in Palo Alto, California. I'm John Furrier, your host. We're featuring a startup, Astronomer. Astronomer.io is the URL, check it out. And we're going to have a great conversation around one of the most important topics hitting the industry, and that is the future of machine learning and AI, and the data that powers it underneath it. There's a lot of things that need to get done, and we're excited to have some of the co-founders of Astronomer here. Viraj Parekh, who is co-founder of Astronomer, and Paola Peraza Calderon, another co-founder, both with Astronomer. Thanks for coming on. First of all, how many co-founders do you guys have? >> You know, I think the answer's around six or seven. I forget the exact, but there's really been a lot of people around the table who've worked very hard to get this company to the point that it's at. We have long ways to go, right? But there's been a lot of people involved that have been absolutely necessary for the path we've been on so far. >> Thanks for that, Viraj, appreciate that. The first question I want to get out on the table, and then we'll get into some of the details, is take a minute to explain what you guys are doing. How did you guys get here? Obviously, multiple co-founders, sounds like a great project. The timing couldn't have been better. ChatGPT has essentially done so much public relations for the AI industry to kind of highlight this shift that's happening. It's real, we've been chronicalizing, take a minute to explain what you guys do. >> Yeah, sure, we can get started. So, yeah, when Viraj and I joined Astronomer in 2017, we really wanted to build a business around data, and we were using an open source project called Apache Airflow that we were just using sort of as customers ourselves. And over time, we realized that there was actually a market for companies who use Apache Airflow, which is a data pipeline management tool, which we'll get into, and that running Airflow is actually quite challenging, and that there's a big opportunity for us to create a set of commercial products and an opportunity to grow that open source community and actually build a company around that. So the crux of what we do is help companies run data pipelines with Apache Airflow. And certainly we've grown in our ambitions beyond that, but that's sort of the crux of what we do for folks. >> You know, data orchestration, data management has always been a big item in the old classic data infrastructure. But with AI, you're seeing a lot more emphasis on scale, tuning, training. Data orchestration is the center of the value proposition, when you're looking at coordinating resources, it's one of the most important things. Can you guys explain what data orchestration entails? What does it mean? Take us through the definition of what data orchestration entails. >> Yeah, for sure. I can take this one, and Viraj, feel free to jump in. So if you google data orchestration, here's what you're going to get. You're going to get something that says, "Data orchestration is the automated process" "for organizing silo data from numerous" "data storage points, standardizing it," "and making it accessible and prepared for data analysis." And you say, "Okay, but what does that actually mean," right, and so let's give sort of an an example. So let's say you're a business and you have sort of the following basic asks of your data team, right? Okay, give me a dashboard in Sigma, for example, for the number of customers or monthly active users, and then make sure that that gets updated on an hourly basis. And then number two, a consistent list of active customers that I have in HubSpot so that I can send them a monthly product newsletter, right? Two very basic asks for all sorts of companies and organizations. And when that data team, which has data engineers, data scientists, ML engineers, data analysts get that request, they're looking at an ecosystem of data sources that can help them get there, right? And that includes application databases, for example, that actually have in product user behavior and third party APIs from tools that the company uses that also has different attributes and qualities of those customers or users. And that data team needs to use tools like Fivetran to ingest data, a data warehouse, like Snowflake or Databricks to actually store that data and do analysis on top of it, a tool like DBT to do transformations and make sure that data is standardized in the way that it needs to be, a tool like Hightouch for reverse ETL. I mean, we could go on and on. There's so many partners of ours in this industry that are doing really, really exciting and critical things for those data movements. And the whole point here is that data teams have this plethora of tooling that they use to both ingest the right data and come up with the right interfaces to transform and interact with that data. And data orchestration, in our view, is really the heartbeat of all of those processes, right? And tangibly the unit of data orchestration is a data pipeline, a set of tasks or jobs that each do something with data over time and eventually run that on a schedule to make sure that those things are happening continuously as time moves on and the company advances. And so, for us, we're building a business around Apache Airflow, which is a workflow management tool that allows you to author, run, and monitor data pipelines. And so when we talk about data orchestration, we talk about sort of two things. One is that crux of data pipelines that, like I said, connect that large ecosystem of data tooling in your company. But number two, it's not just that data pipeline that needs to run every day, right? And Viraj will probably touch on this as we talk more about Astronomer and our value prop on top of Airflow. But then it's all the things that you need to actually run data and production and make sure that it's trustworthy, right? So it's actually not just that you're running things on a schedule, but it's also things like CICD tooling, secure secrets management, user permissions, monitoring, data lineage, documentation, things that enable other personas in your data team to actually use those tools. So long-winded way of saying that it's the heartbeat, we think, of of the data ecosystem, and certainly goes beyond scheduling, but again, data pipelines are really at the center of it. >> One of the things that jumped out, Viraj, if you can get into this, I'd like to hear more about how you guys look at all those little tools that are out. You mentioned a variety of things. You look at the data infrastructure, it's not just one stack. You've got an analytic stack, you've got a realtime stack, you've got a data lake stack, you got an AI stack potentially. I mean you have these stacks now emerging in the data world that are fundamental, that were once served by either a full package, old school software, and then a bunch of point solution. You mentioned Fivetran there, I would say in the analytics stack. Then you got S3, they're on the data lake stack. So all these things are kind of munged together. >> Yeah. >> How do you guys fit into that world? You make it easier, or like, what's the deal? >> Great question, right? And you know, I think that one of the biggest things we've found in working with customers over the last however many years is that if a data team is using a bunch of tools to get what they need done, and the number of tools they're using is growing exponentially and they're kind of roping things together here and there, that's actually a sign of a productive team, not a bad thing, right? It's because that team is moving fast. They have needs that are very specific to them, and they're trying to make something that's exactly tailored to their business. So a lot of times what we find is that customers have some sort of base layer, right? That's kind of like, it might be they're running most of the things in AWS, right? And then on top of that, they'll be using some of the things AWS offers, things like SageMaker, Redshift, whatever, but they also might need things that their cloud can't provide. Something like Fivetran, or Hightouch, those are other tools. And where data orchestration really shines, and something that we've had the pleasure of helping our customers build, is how do you take all those requirements, all those different tools and whip them together into something that fulfills a business need? So that somebody can read a dashboard and trust the number that it says, or somebody can make sure that the right emails go out to their customers. And Airflow serves as this amazing kind of glue between that data stack, right? It's to make it so that for any use case, be it ELT pipelines, or machine learning, or whatever, you need different things to do them, and Airflow helps tie them together in a way that's really specific for a individual business' needs. >> Take a step back and share the journey of what you guys went through as a company startup. So you mentioned Apache, open source. I was just having an interview with a VC, we were talking about foundational models. You got a lot of proprietary and open source development going on. It's almost the iPhone/Android moment in this whole generative space and foundational side. This is kind of important, the open source piece of it. Can you share how you guys started? And I can imagine your customers probably have their hair on fire and are probably building stuff on their own. Are you guys helping them? Take us through, 'cause you guys are on the front end of a big, big wave, and that is to make sense of the chaos, rain it in. Take us through your journey and why this is important. >> Yeah, Paola, I can take a crack at this, then I'll kind of hand it over to you to fill in whatever I miss in details. But you know, like Paola is saying, the heart of our company is open source, because we started using Airflow as an end user and started to say like, "Hey wait a second," "more and more people need this." Airflow, for background, started at Airbnb, and they were actually using that as a foundation for their whole data stack. Kind of how they made it so that they could give you recommendations, and predictions, and all of the processes that needed orchestrated. Airbnb created Airflow, gave it away to the public, and then fast forward a couple years and we're building a company around it, and we're really excited about that. >> That's a beautiful thing. That's exactly why open source is so great. >> Yeah, yeah. And for us, it's really been about watching the community and our customers take these problems, find a solution to those problems, standardize those solutions, and then building on top of that, right? So we're reaching to a point where a lot of our earlier customers who started to just using Airflow to get the base of their BI stack down and their reporting in their ELP infrastructure, they've solved that problem and now they're moving on to things like doing machine learning with their data, because now that they've built that foundation, all the connective tissue for their data arriving on time and being orchestrated correctly is happening, they can build a layer on top of that. And it's just been really, really exciting kind of watching what customers do once they're empowered to pick all the tools that they need, tie them together in the way they need to, and really deliver real value to their business. >> Can you share some of the use cases of these customers? Because I think that's where you're starting to see the innovation. What are some of the companies that you're working with, what are they doing? >> Viraj, I'll let you take that one too. (group laughs) >> So you know, a lot of it is... It goes across the gamut, right? Because it doesn't matter what you are, what you're doing with data, it needs to be orchestrated. So there's a lot of customers using us for their ETL and ELT reporting, right? Just getting data from other disparate sources into one place and then building on top of that. Be it building dashboards, answering questions for the business, building other data products and so on and so forth. From there, these use cases evolve a lot. You do see folks doing things like fraud detection, because Airflow's orchestrating how transactions go, transactions get analyzed. They do things like analyzing marketing spend to see where your highest ROI is. And then you kind of can't not talk about all of the machine learning that goes on, right? Where customers are taking data about their own customers, kind of analyze and aggregating that at scale, and trying to automate decision making processes. So it goes from your most basic, what we call data plumbing, right? Just to make sure data's moving as needed, all the ways to your more exciting expansive use cases around automated decision making and machine learning. >> And I'd say, I mean, I'd say that's one of the things that I think gets me most excited about our future, is how critical Airflow is to all of those processes, and I think when you know a tool is valuable is when something goes wrong and one of those critical processes doesn't work. And we know that our system is so mission critical to answering basic questions about your business and the growth of your company for so many organizations that we work with. So it's, I think, one of the things that gets Viraj and I and the rest of our company up every single morning is knowing how important the work that we do for all of those use cases across industries, across company sizes, and it's really quite energizing. >> It was such a big focus this year at AWS re:Invent, the role of data. And I think one of the things that's exciting about the open AI and all the movement towards large language models is that you can integrate data into these models from outside. So you're starting to see the integration easier to deal with. Still a lot of plumbing issues. So a lot of things happening. So I have to ask you guys, what is the state of the data orchestration area? Is it ready for disruption? Has it already been disrupted? Would you categorize it as a new first inning kind of opportunity, or what's the state of the data orchestration area right now? Both technically and from a business model standpoint. How would you guys describe that state of the market? >> Yeah, I mean, I think in a lot of ways, in some ways I think we're category creating. Schedulers have been around for a long time. I released a data presentation sort of on the evolution of going from something like Kron, which I think was built in like the 1970s out of Carnegie Mellon. And that's a long time ago, that's 50 years ago. So sort of like the basic need to schedule and do something with your data on a schedule is not a new concept. But to our point earlier, I think everything that you need around your ecosystem, first of all, the number of data tools and developer tooling that has come out industry has 5X'd over the last 10 years. And so obviously as that ecosystem grows, and grows, and grows, and grows, the need for orchestration only increases. And I think, as Astronomer, I think we... And we work with so many different types of companies, companies that have been around for 50 years, and companies that got started not even 12 months ago. And so I think for us it's trying to, in a ways, category create and adjust sort of what we sell and the value that we can provide for companies all across that journey. There are folks who are just getting started with orchestration, and then there's folks who have such advanced use case, 'cause they're hitting sort of a ceiling and only want to go up from there. And so I think we, as a company, care about both ends of that spectrum, and certainly want to build and continue building products for companies of all sorts, regardless of where they are on the maturity curve of data orchestration. >> That's a really good point, Paola. And I think the other thing to really take into account is it's the companies themselves, but also individuals who have to do their jobs. If you rewind the clock like 5 or 10 years ago, data engineers would be the ones responsible for orchestrating data through their org. But when we look at our customers today, it's not just data engineers anymore. There's data analysts who sit a lot closer to the business, and the data scientists who want to automate things around their models. So this idea that orchestration is this new category is right on the money. And what we're finding is the need for it is spreading to all parts of the data team, naturally where Airflow's emerged as an open source standard and we're hoping to take things to the next level. >> That's awesome. We've been up saying that the data market's kind of like the SRE with servers, right? You're going to need one person to deal with a lot of data, and that's data engineering, and then you're got to have the practitioners, the democratization. Clearly that's coming in what you're seeing. So I have to ask, how do you guys fit in from a value proposition standpoint? What's the pitch that you have to customers, or is it more inbound coming into you guys? Are you guys doing a lot of outreach, customer engagements? I'm sure they're getting a lot of great requirements from customers. What's the current value proposition? How do you guys engage? >> Yeah, I mean, there's so many... Sorry, Viraj, you can jump in. So there's so many companies using Airflow, right? So the baseline is that the open source project that is Airflow that came out of Airbnb, over five years ago at this point, has grown exponentially in users and continues to grow. And so the folks that we sell to primarily are folks who are already committed to using Apache Airflow, need data orchestration in their organization, and just want to do it better, want to do it more efficiently, want to do it without managing that infrastructure. And so our baseline proposition is for those organizations. Now to Viraj's point, obviously I think our ambitions go beyond that, both in terms of the personas that we addressed and going beyond that data engineer, but really it's to start at the baseline, as we continue to grow our our company, it's really making sure that we're adding value to folks using Airflow and help them do so in a better way, in a larger way, in a more efficient way, and that's really the crux of who we sell to. And so to answer your question on, we get a lot of inbound because they're... >> You have a built in audience. (laughs) >> The world that use it. Those are the folks who we talk to and come to our website and chat with us and get value from our content. I mean, the power of the opensource community is really just so, so big, and I think that's also one of the things that makes this job fun. >> And you guys are in a great position. Viraj, you can comment a little, get your reaction. There's been a big successful business model to starting a company around these big projects for a lot of reasons. One is open source is continuing to be great, but there's also supply chain challenges in there. There's also we want to continue more innovation and more code and keeping it free and and flowing. And then there's the commercialization of productizing it, operationalizing it. This is a huge new dynamic, I mean, in the past 5 or so years, 10 years, it's been happening all on CNCF from other areas like Apache, Linux Foundation, they're all implementing this. This is a huge opportunity for entrepreneurs to do this. >> Yeah, yeah. Open source is always going to be core to what we do, because we wouldn't exist without the open source community around us. They are huge in numbers. Oftentimes they're nameless people who are working on making something better in a way that everybody benefits from it. But open source is really hard, especially if you're a company whose core competency is running a business, right? Maybe you're running an e-commerce business, or maybe you're running, I don't know, some sort of like, any sort of business, especially if you're a company running a business, you don't really want to spend your time figuring out how to run open source software. You just want to use it, you want to use the best of it, you want to use the community around it, you want to be able to google something and get answers for it, you want the benefits of open source. You don't have the time or the resources to invest in becoming an expert in open source, right? And I think that dynamic is really what's given companies like us an ability to kind of form businesses around that in the sense that we'll make it so people get the best of both worlds. You'll get this vast open ecosystem that you can build on top of, that you can benefit from, that you can learn from. But you won't have to spend your time doing undifferentiated heavy lifting. You can do things that are just specific to your business. >> It's always been great to see that business model evolve. We used a debate 10 years ago, can there be another Red Hat? And we said, not really the same, but there'll be a lot of little ones that'll grow up to be big soon. Great stuff. Final question, can you guys share the history of the company? The milestones of Astromer's journey in data orchestration? >> Yeah, we could. So yeah, I mean, I think, so Viraj and I have obviously been at Astronomer along with our other founding team and leadership folks for over five years now. And it's been such an incredible journey of learning, of hiring really amazing people, solving, again, mission critical problems for so many types of organizations. We've had some funding that has allowed us to invest in the team that we have and in the software that we have, and that's been really phenomenal. And so that investment, I think, keeps us confident, even despite these sort of macroeconomic conditions that we're finding ourselves in. And so honestly, the milestones for us are focusing on our product, focusing on our customers over the next year, focusing on that market for us that we know can get valuable out of what we do, and making developers' lives better, and growing the open source community and making sure that everything that we're doing makes it easier for folks to get started, to contribute to the project and to feel a part of the community that we're cultivating here. >> You guys raised a little bit of money. How much have you guys raised? >> Don't know what the total is, but it's in the ballpark over $200 million. It feels good to... >> A little bit of capital. Got a little bit of cap to work with there. Great success. I know as a Series C Financing, you guys have been down. So you're up and running, what's next? What are you guys looking to do? What's the big horizon look like for you from a vision standpoint, more hiring, more product, what is some of the key things you're looking at doing? >> Yeah, it's really a little of all of the above, right? Kind of one of the best and worst things about working at earlier stage startups is there's always so much to do and you often have to just kind of figure out a way to get everything done. But really investing our product over the next, at least over the course of our company lifetime. And there's a lot of ways we want to make it more accessible to users, easier to get started with, easier to use, kind of on all areas there. And really, we really want to do more for the community, right, like I was saying, we wouldn't be anything without the large open source community around us. And we want to figure out ways to give back more in more creative ways, in more code driven ways, in more kind of events and everything else that we can keep those folks galvanized and just keep them happy using Airflow. >> Paola, any final words as we close out? >> No, I mean, I'm super excited. I think we'll keep growing the team this year. We've got a couple of offices in the the US, which we're excited about, and a fully global team that will only continue to grow. So Viraj and I are both here in New York, and we're excited to be engaging with our coworkers in person finally, after years of not doing so. We've got a bustling office in San Francisco as well. So growing those teams and continuing to hire all over the world, and really focusing on our product and the open source community is where our heads are at this year. So, excited. >> Congratulations. 200 million in funding, plus. Good runway, put that money in the bank, squirrel it away. It's a good time to kind of get some good interest on it, but still grow. Congratulations on all the work you guys do. We appreciate you and the open source community does, and good luck with the venture, continue to be successful, and we'll see you at the Startup Showcase. >> Thank you. >> Yeah, thanks so much, John. Appreciate it. >> Okay, that's the CUBE Conversation featuring astronomer.io, that's the website. Astronomer is doing well. Multiple rounds of funding, over 200 million in funding. Open source continues to lead the way in innovation. Great business model, good solution for the next gen cloud scale data operations, data stacks that are emerging. I'm John Furrier, your host, thanks for watching. (soft upbeat music)

>> From theCUBE Studios in Palo Alto in Boston, bringing you data-driven insights from theCUBE and ETR. This is Breaking Analysis with Dave Vellante. >> OpenAI The company, and ChatGPT have taken the world by storm. Microsoft reportedly is investing an additional 10 billion dollars into the company. But in our view, while the hype around ChatGPT is justified, we don't believe OpenAI will lock up the market with its first mover advantage. Rather, we believe that success in this market will be directly proportional to the quality and quantity of data that a technology company has at its disposal, and the compute power that it could deploy to run its system. Hello and welcome to this week's Wikibon CUBE insights, powered by ETR. In this Breaking Analysis, we unpack the excitement around ChatGPT, and debate the premise that the company's early entry into the space may not confer winner take all advantage to OpenAI. And to do so, we welcome CUBE collaborator, alum, Sarbjeet Johal, (chuckles) and John Furrier, co-host of the Cube. Great to see you Sarbjeet, John. Really appreciate you guys coming to the program. >> Great to be on. >> Okay, so what is ChatGPT? Well, actually we asked ChatGPT, what is ChatGPT? So here's what it said. ChatGPT is a state-of-the-art language model developed by OpenAI that can generate human-like text. It could be fine tuned for a variety of language tasks, such as conversation, summarization, and language translation. So I asked it, give it to me in 50 words or less. How did it do? Anything to add? >> Yeah, think it did good. It's large language model, like previous models, but it started applying the transformers sort of mechanism to focus on what prompt you have given it to itself. And then also the what answer it gave you in the first, sort of, one sentence or two sentences, and then introspect on itself, like what I have already said to you. And so just work on that. So it it's self sort of focus if you will. It does, the transformers help the large language models to do that. >> So to your point, it's a large language model, and GPT stands for generative pre-trained transformer. >> And if you put the definition back up there again, if you put it back up on the screen, let's see it back up. Okay, it actually missed the large, word large. So one of the problems with ChatGPT, it's not always accurate. It's actually a large language model, and it says state of the art language model. And if you look at Google, Google has dominated AI for many times and they're well known as being the best at this. And apparently Google has their own large language model, LLM, in play and have been holding it back to release because of backlash on the accuracy. Like just in that example you showed is a great point. They got almost right, but they missed the key word. >> You know what's funny about that John, is I had previously asked it in my prompt to give me it in less than a hundred words, and it was too long, I said I was too long for Breaking Analysis, and there it went into the fact that it's a large language model. So it largely, it gave me a really different answer the, for both times. So, but it's still pretty amazing for those of you who haven't played with it yet. And one of the best examples that I saw was Ben Charrington from This Week In ML AI podcast. And I stumbled on this thanks to Brian Gracely, who was listening to one of his Cloudcasts. Basically what Ben did is he took, he prompted ChatGPT to interview ChatGPT, and he simply gave the system the prompts, and then he ran the questions and answers into this avatar builder and sped it up 2X so it didn't sound like a machine. And voila, it was amazing. So John is ChatGPT going to take over as a cube host? >> Well, I was thinking, we get the questions in advance sometimes from PR people. We should actually just plug it in ChatGPT, add it to our notes, and saying, "Is this good enough for you? Let's ask the real question." So I think, you know, I think there's a lot of heavy lifting that gets done. I think the ChatGPT is a phenomenal revolution. I think it highlights the use case. Like that example we showed earlier. It gets most of it right. So it's directionally correct and it feels like it's an answer, but it's not a hundred percent accurate. And I think that's where people are seeing value in it. Writing marketing, copy, brainstorming, guest list, gift list for somebody. Write me some lyrics to a song. Give me a thesis about healthcare policy in the United States. It'll do a bang up job, and then you got to go in and you can massage it. So we're going to do three quarters of the work. That's why plagiarism and schools are kind of freaking out. And that's why Microsoft put 10 billion in, because why wouldn't this be a feature of Word, or the OS to help it do stuff on behalf of the user. So linguistically it's a beautiful thing. You can input a string and get a good answer. It's not a search result. >> And we're going to get your take on on Microsoft and, but it kind of levels the playing- but ChatGPT writes better than I do, Sarbjeet, and I know you have some good examples too. You mentioned the Reed Hastings example. >> Yeah, I was listening to Reed Hastings fireside chat with ChatGPT, and the answers were coming as sort of voice, in the voice format. And it was amazing what, he was having very sort of philosophy kind of talk with the ChatGPT, the longer sentences, like he was going on, like, just like we are talking, he was talking for like almost two minutes and then ChatGPT was answering. It was not one sentence question, and then a lot of answers from ChatGPT and yeah, you're right. I, this is our ability. I've been thinking deep about this since yesterday, we talked about, like, we want to do this segment. The data is fed into the data model. It can be the current data as well, but I think that, like, models like ChatGPT, other companies will have those too. They can, they're democratizing the intelligence, but they're not creating intelligence yet, definitely yet I can say that. They will give you all the finite answers. Like, okay, how do you do this for loop in Java, versus, you know, C sharp, and as a programmer you can do that, in, but they can't tell you that, how to write a new algorithm or write a new search algorithm for you. They cannot create a secretive code for you to- >> Not yet. >> Have competitive advantage. >> Not yet, not yet. >> but you- >> Can Google do that today? >> No one really can. The reasoning side of the data is, we talked about at our Supercloud event, with Zhamak Dehghani who's was CEO of, now of Nextdata. This next wave of data intelligence is going to come from entrepreneurs that are probably cross discipline, computer science and some other discipline. But they're going to be new things, for example, data, metadata, and data. It's hard to do reasoning like a human being, so that needs more data to train itself. So I think the first gen of this training module for the large language model they have is a corpus of text. Lot of that's why blog posts are, but the facts are wrong and sometimes out of context, because that contextual reasoning takes time, it takes intelligence. So machines need to become intelligent, and so therefore they need to be trained. So you're going to start to see, I think, a lot of acceleration on training the data sets. And again, it's only as good as the data you can get. And again, proprietary data sets will be a huge winner. Anyone who's got a large corpus of content, proprietary content like theCUBE or SiliconANGLE as a publisher will benefit from this. Large FinTech companies, anyone with large proprietary data will probably be a big winner on this generative AI wave, because it just, it will eat that up, and turn that back into something better. So I think there's going to be a lot of interesting things to look at here. And certainly productivity's going to be off the charts for vanilla and the internet is going to get swarmed with vanilla content. So if you're in the content business, and you're an original content producer of any kind, you're going to be not vanilla, so you're going to be better. So I think there's so much at play Dave (indistinct). >> I think the playing field has been risen, so we- >> Risen and leveled? >> Yeah, and leveled to certain extent. So it's now like that few people as consumers, as consumers of AI, we will have a advantage and others cannot have that advantage. So it will be democratized. That's, I'm sure about that. But if you take the example of calculator, when the calculator came in, and a lot of people are, "Oh, people can't do math anymore because calculator is there." right? So it's a similar sort of moment, just like a calculator for the next level. But, again- >> I see it more like open source, Sarbjeet, because like if you think about what ChatGPT's doing, you do a query and it comes from somewhere the value of a post from ChatGPT is just a reuse of AI. The original content accent will be come from a human. So if I lay out a paragraph from ChatGPT, did some heavy lifting on some facts, I check the facts, save me about maybe- >> Yeah, it's productive. >> An hour writing, and then I write a killer two, three sentences of, like, sharp original thinking or critical analysis. I then took that body of work, open source content, and then laid something on top of it. >> And Sarbjeet's example is a good one, because like if the calculator kids don't do math as well anymore, the slide rule, remember we had slide rules as kids, remember we first started using Waze, you know, we were this minority and you had an advantage over other drivers. Now Waze is like, you know, social traffic, you know, navigation, everybody had, you know- >> All the back roads are crowded. >> They're car crowded. (group laughs) Exactly. All right, let's, let's move on. What about this notion that futurist Ray Amara put forth and really Amara's Law that we're showing here, it's, the law is we, you know, "We tend to overestimate the effect of technology in the short run and underestimate it in the long run." Is that the case, do you think, with ChatGPT? What do you think Sarbjeet? >> I think that's true actually. There's a lot of, >> We don't debate this. >> There's a lot of awe, like when people see the results from ChatGPT, they say what, what the heck? Like, it can do this? But then if you use it more and more and more, and I ask the set of similar question, not the same question, and it gives you like same answer. It's like reading from the same bucket of text in, the interior read (indistinct) where the ChatGPT, you will see that in some couple of segments. It's very, it sounds so boring that the ChatGPT is coming out the same two sentences every time. So it is kind of good, but it's not as good as people think it is right now. But we will have, go through this, you know, hype sort of cycle and get realistic with it. And then in the long term, I think it's a great thing in the short term, it's not something which will (indistinct) >> What's your counter point? You're saying it's not. >> I, no I think the question was, it's hyped up in the short term and not it's underestimated long term. That's what I think what he said, quote. >> Yes, yeah. That's what he said. >> Okay, I think that's wrong with this, because this is a unique, ChatGPT is a unique kind of impact and it's very generational. People have been comparing it, I have been comparing to the internet, like the web, web browser Mosaic and Netscape, right, Navigator. I mean, I clearly still remember the days seeing Navigator for the first time, wow. And there weren't not many sites you could go to, everyone typed in, you know, cars.com, you know. >> That (indistinct) wasn't that overestimated, the overhyped at the beginning and underestimated. >> No, it was, it was underestimated long run, people thought. >> But that Amara's law. >> That's what is. >> No, they said overestimated? >> Overestimated near term underestimated- overhyped near term, underestimated long term. I got, right I mean? >> Well, I, yeah okay, so I would then agree, okay then- >> We were off the charts about the internet in the early days, and it actually exceeded our expectations. >> Well there were people who were, like, poo-pooing it early on. So when the browser came out, people were like, "Oh, the web's a toy for kids." I mean, in 1995 the web was a joke, right? So '96, you had online populations growing, so you had structural changes going on around the browser, internet population. And then that replaced other things, direct mail, other business activities that were once analog then went to the web, kind of read only as you, as we always talk about. So I think that's a moment where the hype long term, the smart money, and the smart industry experts all get the long term. And in this case, there's more poo-pooing in the short term. "Ah, it's not a big deal, it's just AI." I've heard many people poo-pooing ChatGPT, and a lot of smart people saying, "No this is next gen, this is different and it's only going to get better." So I think people are estimating a big long game on this one. >> So you're saying it's bifurcated. There's those who say- >> Yes. >> Okay, all right, let's get to the heart of the premise, and possibly the debate for today's episode. Will OpenAI's early entry into the market confer sustainable competitive advantage for the company. And if you look at the history of tech, the technology industry, it's kind of littered with first mover failures. Altair, IBM, Tandy, Commodore, they and Apple even, they were really early in the PC game. They took a backseat to Dell who came in the scene years later with a better business model. Netscape, you were just talking about, was all the rage in Silicon Valley, with the first browser, drove up all the housing prices out here. AltaVista was the first search engine to really, you know, index full text. >> Owned by Dell, I mean DEC. >> Owned by Digital. >> Yeah, Digital Equipment >> Compaq bought it. And of course as an aside, Digital, they wanted to showcase their hardware, right? Their super computer stuff. And then so Friendster and MySpace, they came before Facebook. The iPhone certainly wasn't the first mobile device. So lots of failed examples, but there are some recent successes like AWS and cloud. >> You could say smartphone. So I mean. >> Well I know, and you can, we can parse this so we'll debate it. Now Twitter, you could argue, had first mover advantage. You kind of gave me that one John. Bitcoin and crypto clearly had first mover advantage, and sustaining that. Guys, will OpenAI make it to the list on the right with ChatGPT, what do you think? >> I think categorically as a company, it probably won't, but as a category, I think what they're doing will, so OpenAI as a company, they get funding, there's power dynamics involved. Microsoft put a billion dollars in early on, then they just pony it up. Now they're reporting 10 billion more. So, like, if the browsers, Microsoft had competitive advantage over Netscape, and used monopoly power, and convicted by the Department of Justice for killing Netscape with their monopoly, Netscape should have had won that battle, but Microsoft killed it. In this case, Microsoft's not killing it, they're buying into it. So I think the embrace extend Microsoft power here makes OpenAI vulnerable for that one vendor solution. So the AI as a company might not make the list, but the category of what this is, large language model AI, is probably will be on the right hand side. >> Okay, we're going to come back to the government intervention and maybe do some comparisons, but what are your thoughts on this premise here? That, it will basically set- put forth the premise that it, that ChatGPT, its early entry into the market will not confer competitive advantage to >> For OpenAI. >> To Open- Yeah, do you agree with that? >> I agree with that actually. It, because Google has been at it, and they have been holding back, as John said because of the scrutiny from the Fed, right, so- >> And privacy too. >> And the privacy and the accuracy as well. But I think Sam Altman and the company on those guys, right? They have put this in a hasty way out there, you know, because it makes mistakes, and there are a lot of questions around the, sort of, where the content is coming from. You saw that as your example, it just stole the content, and without your permission, you know? >> Yeah. So as quick this aside- >> And it codes on people's behalf and the, those codes are wrong. So there's a lot of, sort of, false information it's putting out there. So it's a very vulnerable thing to do what Sam Altman- >> So even though it'll get better, others will compete. >> So look, just side note, a term which Reid Hoffman used a little bit. Like he said, it's experimental launch, like, you know, it's- >> It's pretty damn good. >> It is clever because according to Sam- >> It's more than clever. It's good. >> It's awesome, if you haven't used it. I mean you write- you read what it writes and you go, "This thing writes so well, it writes so much better than you." >> The human emotion drives that too. I think that's a big thing. But- >> I Want to add one more- >> Make your last point. >> Last one. Okay. So, but he's still holding back. He's conducting quite a few interviews. If you want to get the gist of it, there's an interview with StrictlyVC interview from yesterday with Sam Altman. Listen to that one it's an eye opening what they want- where they want to take it. But my last one I want to make it on this point is that Satya Nadella yesterday did an interview with Wall Street Journal. I think he was doing- >> You were not impressed. >> I was not impressed because he was pushing it too much. So Sam Altman's holding back so there's less backlash. >> Got 10 billion reasons to push. >> I think he's almost- >> Microsoft just laid off 10000 people. Hey ChatGPT, find me a job. You know like. (group laughs) >> He's overselling it to an extent that I think it will backfire on Microsoft. And he's over promising a lot of stuff right now, I think. I don't know why he's very jittery about all these things. And he did the same thing during Ignite as well. So he said, "Oh, this AI will write code for you and this and that." Like you called him out- >> The hyperbole- >> During your- >> from Satya Nadella, he's got a lot of hyperbole. (group talks over each other) >> All right, Let's, go ahead. >> Well, can I weigh in on the whole- >> Yeah, sure. >> Microsoft thing on whether OpenAI, here's the take on this. I think it's more like the browser moment to me, because I could relate to that experience with ChatG, personally, emotionally, when I saw that, and I remember vividly- >> You mean that aha moment (indistinct). >> Like this is obviously the future. Anything else in the old world is dead, website's going to be everywhere. It was just instant dot connection for me. And a lot of other smart people who saw this. Lot of people by the way, didn't see it. Someone said the web's a toy. At the company I was worked for at the time, Hewlett Packard, they like, they could have been in, they had invented HTML, and so like all this stuff was, like, they just passed, the web was just being passed over. But at that time, the browser got better, more websites came on board. So the structural advantage there was online web usage was growing, online user population. So that was growing exponentially with the rise of the Netscape browser. So OpenAI could stay on the right side of your list as durable, if they leverage the category that they're creating, can get the scale. And if they can get the scale, just like Twitter, that failed so many times that they still hung around. So it was a product that was always successful, right? So I mean, it should have- >> You're right, it was terrible, we kept coming back. >> The fail whale, but it still grew. So OpenAI has that moment. They could do it if Microsoft doesn't meddle too much with too much power as a vendor. They could be the Netscape Navigator, without the anti-competitive behavior of somebody else. So to me, they have the pole position. So they have an opportunity. So if not, if they don't execute, then there's opportunity. There's not a lot of barriers to entry, vis-a-vis say the CapEx of say a cloud company like AWS. You can't replicate that, Many have tried, but I think you can replicate OpenAI. >> And we're going to talk about that. Okay, so real quick, I want to bring in some ETR data. This isn't an ETR heavy segment, only because this so new, you know, they haven't coverage yet, but they do cover AI. So basically what we're seeing here is a slide on the vertical axis's net score, which is a measure of spending momentum, and in the horizontal axis's is presence in the dataset. Think of it as, like, market presence. And in the insert right there, you can see how the dots are plotted, the two columns. And so, but the key point here that we want to make, there's a bunch of companies on the left, is he like, you know, DataRobot and C3 AI and some others, but the big whales, Google, AWS, Microsoft, are really dominant in this market. So that's really the key takeaway that, can we- >> I notice IBM is way low. >> Yeah, IBM's low, and actually bring that back up and you, but then you see Oracle who actually is injecting. So I guess that's the other point is, you're not necessarily going to go buy AI, and you know, build your own AI, you're going to, it's going to be there and, it, Salesforce is going to embed it into its platform, the SaaS companies, and you're going to purchase AI. You're not necessarily going to build it. But some companies obviously are. >> I mean to quote IBM's general manager Rob Thomas, "You can't have AI with IA." information architecture and David Flynn- >> You can't Have AI without IA >> without, you can't have AI without IA. You can't have, if you have an Information Architecture, you then can power AI. Yesterday David Flynn, with Hammersmith, was on our Supercloud. He was pointing out that the relationship of storage, where you store things, also impacts the data and stressablity, and Zhamak from Nextdata, she was pointing out that same thing. So the data problem factors into all this too, Dave. >> So you got the big cloud and internet giants, they're all poised to go after this opportunity. Microsoft is investing up to 10 billion. Google's code red, which was, you know, the headline in the New York Times. Of course Apple is there and several alternatives in the market today. Guys like Chinchilla, Bloom, and there's a company Jasper and several others, and then Lena Khan looms large and the government's around the world, EU, US, China, all taking notice before the market really is coalesced around a single player. You know, John, you mentioned Netscape, they kind of really, the US government was way late to that game. It was kind of game over. And Netscape, I remember Barksdale was like, "Eh, we're going to be selling software in the enterprise anyway." and then, pshew, the company just dissipated. So, but it looks like the US government, especially with Lena Khan, they're changing the definition of antitrust and what the cause is to go after people, and they're really much more aggressive. It's only what, two years ago that (indistinct). >> Yeah, the problem I have with the federal oversight is this, they're always like late to the game, and they're slow to catch up. So in other words, they're working on stuff that should have been solved a year and a half, two years ago around some of the social networks hiding behind some of the rules around open web back in the days, and I think- >> But they're like 15 years late to that. >> Yeah, and now they got this new thing on top of it. So like, I just worry about them getting their fingers. >> But there's only two years, you know, OpenAI. >> No, but the thing (indistinct). >> No, they're still fighting other battles. But the problem with government is that they're going to label Big Tech as like a evil thing like Pharma, it's like smoke- >> You know Lena Khan wants to kill Big Tech, there's no question. >> So I think Big Tech is getting a very seriously bad rap. And I think anything that the government does that shades darkness on tech, is politically motivated in most cases. You can almost look at everything, and my 80 20 rule is in play here. 80% of the government activity around tech is bullshit, it's politically motivated, and the 20% is probably relevant, but off the mark and not organized. >> Well market forces have always been the determining factor of success. The governments, you know, have been pretty much failed. I mean you look at IBM's antitrust, that, what did that do? The market ultimately beat them. You look at Microsoft back in the day, right? Windows 95 was peaking, the government came in. But you know, like you said, they missed the web, right, and >> so they were hanging on- >> There's nobody in government >> to Windows. >> that actually knows- >> And so, you, I think you're right. It's market forces that are going to determine this. But Sarbjeet, what do you make of Microsoft's big bet here, you weren't impressed with with Nadella. How do you think, where are they going to apply it? Is this going to be a Hail Mary for Bing, or is it going to be applied elsewhere? What do you think. >> They are saying that they will, sort of, weave this into their products, office products, productivity and also to write code as well, developer productivity as well. That's a big play for them. But coming back to your antitrust sort of comments, right? I believe the, your comment was like, oh, fed was late 10 years or 15 years earlier, but now they're two years. But things are moving very fast now as compared to they used to move. >> So two years is like 10 Years. >> Yeah, two years is like 10 years. Just want to make that point. (Dave laughs) This thing is going like wildfire. Any new tech which comes in that I think they're going against distribution channels. Lina Khan has commented time and again that the marketplace model is that she wants to have some grip on. Cloud marketplaces are a kind of monopolistic kind of way. >> I don't, I don't see this, I don't see a Chat AI. >> You told me it's not Bing, you had an interesting comment. >> No, no. First of all, this is great from Microsoft. If you're Microsoft- >> Why? >> Because Microsoft doesn't have the AI chops that Google has, right? Google is got so much core competency on how they run their search, how they run their backends, their cloud, even though they don't get a lot of cloud market share in the enterprise, they got a kick ass cloud cause they needed one. >> Totally. >> They've invented SRE. I mean Google's development and engineering chops are off the scales, right? Amazon's got some good chops, but Google's got like 10 times more chops than AWS in my opinion. Cloud's a whole different story. Microsoft gets AI, they get a playbook, they get a product they can render into, the not only Bing, productivity software, helping people write papers, PowerPoint, also don't forget the cloud AI can super help. We had this conversation on our Supercloud event, where AI's going to do a lot of the heavy lifting around understanding observability and managing service meshes, to managing microservices, to turning on and off applications, and or maybe writing code in real time. So there's a plethora of use cases for Microsoft to deploy this. combined with their R and D budgets, they can then turbocharge more research, build on it. So I think this gives them a car in the game, Google may have pole position with AI, but this puts Microsoft right in the game, and they already have a lot of stuff going on. But this just, I mean everything gets lifted up. Security, cloud, productivity suite, everything. >> What's under the hood at Google, and why aren't they talking about it? I mean they got to be freaked out about this. No? Or do they have kind of a magic bullet? >> I think they have the, they have the chops definitely. Magic bullet, I don't know where they are, as compared to the ChatGPT 3 or 4 models. Like they, but if you look at the online sort of activity and the videos put out there from Google folks, Google technology folks, that's account you should look at if you are looking there, they have put all these distinctions what ChatGPT 3 has used, they have been talking about for a while as well. So it's not like it's a secret thing that you cannot replicate. As you said earlier, like in the beginning of this segment, that anybody who has more data and the capacity to process that data, which Google has both, I think they will win this. >> Obviously living in Palo Alto where the Google founders are, and Google's headquarters next town over we have- >> We're so close to them. We have inside information on some of the thinking and that hasn't been reported by any outlet yet. And that is, is that, from what I'm hearing from my sources, is Google has it, they don't want to release it for many reasons. One is it might screw up their search monopoly, one, two, they're worried about the accuracy, 'cause Google will get sued. 'Cause a lot of people are jamming on this ChatGPT as, "Oh it does everything for me." when it's clearly not a hundred percent accurate all the time. >> So Lina Kahn is looming, and so Google's like be careful. >> Yeah so Google's just like, this is the third, could be a third rail. >> But the first thing you said is a concern. >> Well no. >> The disruptive (indistinct) >> What they will do is do a Waymo kind of thing, where they spin out a separate company. >> They're doing that. >> The discussions happening, they're going to spin out the separate company and put it over there, and saying, "This is AI, got search over there, don't touch that search, 'cause that's where all the revenue is." (chuckles) >> So, okay, so that's how they deal with the Clay Christensen dilemma. What's the business model here? I mean it's not advertising, right? Is it to charge you for a query? What, how do you make money at this? >> It's a good question, I mean my thinking is, first of all, it's cool to type stuff in and see a paper get written, or write a blog post, or gimme a marketing slogan for this or that or write some code. I think the API side of the business will be critical. And I think Howie Xu, I know you're going to reference some of his comments yesterday on Supercloud, I think this brings a whole 'nother user interface into technology consumption. I think the business model, not yet clear, but it will probably be some sort of either API and developer environment or just a straight up free consumer product, with some sort of freemium backend thing for business. >> And he was saying too, it's natural language is the way in which you're going to interact with these systems. >> I think it's APIs, it's APIs, APIs, APIs, because these people who are cooking up these models, and it takes a lot of compute power to train these and to, for inference as well. Somebody did the analysis on the how many cents a Google search costs to Google, and how many cents the ChatGPT query costs. It's, you know, 100x or something on that. You can take a look at that. >> A 100x on which side? >> You're saying two orders of magnitude more expensive for ChatGPT >> Much more, yeah. >> Than for Google. >> It's very expensive. >> So Google's got the data, they got the infrastructure and they got, you're saying they got the cost (indistinct) >> No actually it's a simple query as well, but they are trying to put together the answers, and they're going through a lot more data versus index data already, you know. >> Let me clarify, you're saying that Google's version of ChatGPT is more efficient? >> No, I'm, I'm saying Google search results. >> Ah, search results. >> What are used to today, but cheaper. >> But that, does that, is that going to confer advantage to Google's large language (indistinct)? >> It will, because there were deep science (indistinct). >> Google, I don't think Google search is doing a large language model on their search, it's keyword search. You know, what's the weather in Santa Cruz? Or how, what's the weather going to be? Or you know, how do I find this? Now they have done a smart job of doing some things with those queries, auto complete, re direct navigation. But it's, it's not entity. It's not like, "Hey, what's Dave Vellante thinking this week in Breaking Analysis?" ChatGPT might get that, because it'll get your Breaking Analysis, it'll synthesize it. There'll be some, maybe some clips. It'll be like, you know, I mean. >> Well I got to tell you, I asked ChatGPT to, like, I said, I'm going to enter a transcript of a discussion I had with Nir Zuk, the CTO of Palo Alto Networks, And I want you to write a 750 word blog. I never input the transcript. It wrote a 750 word blog. It attributed quotes to him, and it just pulled a bunch of stuff that, and said, okay, here it is. It talked about Supercloud, it defined Supercloud. >> It's made, it makes you- >> Wow, But it was a big lie. It was fraudulent, but still, blew me away. >> Again, vanilla content and non accurate content. So we are going to see a surge of misinformation on steroids, but I call it the vanilla content. Wow, that's just so boring, (indistinct). >> There's so many dangers. >> Make your point, cause we got to, almost out of time. >> Okay, so the consumption, like how do you consume this thing. As humans, we are consuming it and we are, like, getting a nicely, like, surprisingly shocked, you know, wow, that's cool. It's going to increase productivity and all that stuff, right? And on the danger side as well, the bad actors can take hold of it and create fake content and we have the fake sort of intelligence, if you go out there. So that's one thing. The second thing is, we are as humans are consuming this as language. Like we read that, we listen to it, whatever format we consume that is, but the ultimate usage of that will be when the machines can take that output from likes of ChatGPT, and do actions based on that. The robots can work, the robot can paint your house, we were talking about, right? Right now we can't do that. >> Data apps. >> So the data has to be ingested by the machines. It has to be digestible by the machines. And the machines cannot digest unorganized data right now, we will get better on the ingestion side as well. So we are getting better. >> Data, reasoning, insights, and action. >> I like that mall, paint my house. >> So, okay- >> By the way, that means drones that'll come in. Spray painting your house. >> Hey, it wasn't too long ago that robots couldn't climb stairs, as I like to point out. Okay, and of course it's no surprise the venture capitalists are lining up to eat at the trough, as I'd like to say. Let's hear, you'd referenced this earlier, John, let's hear what AI expert Howie Xu said at the Supercloud event, about what it takes to clone ChatGPT. Please, play the clip. >> So one of the VCs actually asked me the other day, right? "Hey, how much money do I need to spend, invest to get a, you know, another shot to the openAI sort of the level." You know, I did a (indistinct) >> Line up. >> A hundred million dollar is the order of magnitude that I came up with, right? You know, not a billion, not 10 million, right? So a hundred- >> Guys a hundred million dollars, that's an astoundingly low figure. What do you make of it? >> I was in an interview with, I was interviewing, I think he said hundred million or so, but in the hundreds of millions, not a billion right? >> You were trying to get him up, you were like "Hundreds of millions." >> Well I think, I- >> He's like, eh, not 10, not a billion. >> Well first of all, Howie Xu's an expert machine learning. He's at Zscaler, he's a machine learning AI guy. But he comes from VMware, he's got his technology pedigrees really off the chart. Great friend of theCUBE and kind of like a CUBE analyst for us. And he's smart. He's right. I think the barriers to entry from a dollar standpoint are lower than say the CapEx required to compete with AWS. Clearly, the CapEx spending to build all the tech for the run a cloud. >> And you don't need a huge sales force. >> And in some case apps too, it's the same thing. But I think it's not that hard. >> But am I right about that? You don't need a huge sales force either. It's, what, you know >> If the product's good, it will sell, this is a new era. The better mouse trap will win. This is the new economics in software, right? So- >> Because you look at the amount of money Lacework, and Snyk, Snowflake, Databrooks. Look at the amount of money they've raised. I mean it's like a billion dollars before they get to IPO or more. 'Cause they need promotion, they need go to market. You don't need (indistinct) >> OpenAI's been working on this for multiple five years plus it's, hasn't, wasn't born yesterday. Took a lot of years to get going. And Sam is depositioning all the success, because he's trying to manage expectations, To your point Sarbjeet, earlier. It's like, yeah, he's trying to "Whoa, whoa, settle down everybody, (Dave laughs) it's not that great." because he doesn't want to fall into that, you know, hero and then get taken down, so. >> It may take a 100 million or 150 or 200 million to train the model. But to, for the inference to, yeah to for the inference machine, It will take a lot more, I believe. >> Give it, so imagine, >> Because- >> Go ahead, sorry. >> Go ahead. But because it consumes a lot more compute cycles and it's certain level of storage and everything, right, which they already have. So I think to compute is different. To frame the model is a different cost. But to run the business is different, because I think 100 million can go into just fighting the Fed. >> Well there's a flywheel too. >> Oh that's (indistinct) >> (indistinct) >> We are running the business, right? >> It's an interesting number, but it's also kind of, like, context to it. So here, a hundred million spend it, you get there, but you got to factor in the fact that the ways companies win these days is critical mass scale, hitting a flywheel. If they can keep that flywheel of the value that they got going on and get better, you can almost imagine a marketplace where, hey, we have proprietary data, we're SiliconANGLE in theCUBE. We have proprietary content, CUBE videos, transcripts. Well wouldn't it be great if someone in a marketplace could sell a module for us, right? We buy that, Amazon's thing and things like that. So if they can get a marketplace going where you can apply to data sets that may be proprietary, you can start to see this become bigger. And so I think the key barriers to entry is going to be success. I'll give you an example, Reddit. Reddit is successful and it's hard to copy, not because of the software. >> They built the moat. >> Because you can, buy Reddit open source software and try To compete. >> They built the moat with their community. >> Their community, their scale, their user expectation. Twitter, we referenced earlier, that thing should have gone under the first two years, but there was such a great emotional product. People would tolerate the fail whale. And then, you know, well that was a whole 'nother thing. >> Then a plane landed in (John laughs) the Hudson and it was over. >> I think verticals, a lot of verticals will build applications using these models like for lawyers, for doctors, for scientists, for content creators, for- >> So you'll have many hundreds of millions of dollars investments that are going to be seeping out. If, all right, we got to wrap, if you had to put odds on it that that OpenAI is going to be the leader, maybe not a winner take all leader, but like you look at like Amazon and cloud, they're not winner take all, these aren't necessarily winner take all markets. It's not necessarily a zero sum game, but let's call it winner take most. What odds would you give that open AI 10 years from now will be in that position. >> If I'm 0 to 10 kind of thing? >> Yeah, it's like horse race, 3 to 1, 2 to 1, even money, 10 to 1, 50 to 1. >> Maybe 2 to 1, >> 2 to 1, that's pretty low odds. That's basically saying they're the favorite, they're the front runner. Would you agree with that? >> I'd say 4 to 1. >> Yeah, I was going to say I'm like a 5 to 1, 7 to 1 type of person, 'cause I'm a skeptic with, you know, there's so much competition, but- >> I think they're definitely the leader. I mean you got to say, I mean. >> Oh there's no question. There's no question about it. >> The question is can they execute? >> They're not Friendster, is what you're saying. >> They're not Friendster and they're more like Twitter and Reddit where they have momentum. If they can execute on the product side, and if they don't stumble on that, they will continue to have the lead. >> If they say stay neutral, as Sam is, has been saying, that, hey, Microsoft is one of our partners, if you look at their company model, how they have structured the company, then they're going to pay back to the investors, like Microsoft is the biggest one, up to certain, like by certain number of years, they're going to pay back from all the money they make, and after that, they're going to give the money back to the public, to the, I don't know who they give it to, like non-profit or something. (indistinct) >> Okay, the odds are dropping. (group talks over each other) That's a good point though >> Actually they might have done that to fend off the criticism of this. But it's really interesting to see the model they have adopted. >> The wildcard in all this, My last word on this is that, if there's a developer shift in how developers and data can come together again, we have conferences around the future of data, Supercloud and meshs versus, you know, how the data world, coding with data, how that evolves will also dictate, 'cause a wild card could be a shift in the landscape around how developers are using either machine learning or AI like techniques to code into their apps, so. >> That's fantastic insight. I can't thank you enough for your time, on the heels of Supercloud 2, really appreciate it. All right, thanks to John and Sarbjeet for the outstanding conversation today. Special thanks to the Palo Alto studio team. My goodness, Anderson, this great backdrop. You guys got it all out here, I'm jealous. And Noah, really appreciate it, Chuck, Andrew Frick and Cameron, Andrew Frick switching, Cameron on the video lake, great job. And Alex Myerson, he's on production, manages the podcast for us, Ken Schiffman as well. Kristen Martin and Cheryl Knight help get the word out on social media and our newsletters. Rob Hof is our editor-in-chief over at SiliconANGLE, does some great editing, thanks to all. Remember, all these episodes are available as podcasts. All you got to do is search Breaking Analysis podcast, wherever you listen. Publish each week on wikibon.com and siliconangle.com. Want to get in touch, email me directly, david.vellante@siliconangle.com or DM me at dvellante, or comment on our LinkedIn post. And by all means, check out etr.ai. They got really great survey data in the enterprise tech business. This is Dave Vellante for theCUBE Insights powered by ETR. Thanks for watching, We'll see you next time on Breaking Analysis. (electronic music)

>>Hi everyone. Welcome to the Cube special presentation here in Palo Alto, California. I'm John Foer, host of the Cube. We've got two great guests, one for calling in from Germany, our videoing in from Germany, one from Maryland. We've got VMware and aws. This is the customer successes with VMware cloud on AWS showcase, accelerating business transformation here in the showcase with Samir Candu Worldwide. VMware strategic alliance solution, architect leader with AWS Samir. Great to have you and Daniel Re Myer, principal architect global AWS synergy at VMware. Guys, you guys are, are working together. You're the key players in the re relationship as it rolls out and continues to grow. So welcome to the cube. >>Thank you. Greatly appreciate it. >>Great to have you guys both on, As you know, we've been covering this since 2016 when Pat Geling, then CEO and then then CEO AWS at Andy Chasy did this. It kind of got people by surprise, but it really kind of cleaned out the positioning in the enterprise for the success. OFM workloads in the cloud. VMware's had great success with it since, and you guys have the great partnerships. So this has been like a really strategic, successful partnership. Where are we right now? You know, years later we got this whole inflection point coming. You're starting to see, you know, this idea of higher level services, more performance are coming in at the infrastructure side. More automation, more serverless, I mean, and a, I mean it's just getting better and better every year in the cloud. Kinda a whole nother level. Where are we, Samir? Let's start with you on, on the relationship. >>Yeah, totally. So I mean, there's several things to keep in mind, right? So in 2016, right, that's when the partnership between AWS and VMware was announced, and then less than a year later, that's when we officially launched VMware cloud on aws. Years later, we've been driving innovation, working with our customers, jointly engineering this between AWS and VMware day in, day out. As far as advancing VMware cloud on aws. You know, even if you look at the innovation that takes place with a solution, things have modernized, things have changed, there's been advancements, you know, whether it's security focus, whether it's platform focus, whether it's networking focus, there's been modifications along the way, even storage, right? More recently, one of the things to keep in mind is we're looking to deliver value to our customers together. These are our joint customers. So there's hundreds of VMware and AWS engineers working together on this solution. >>And then factor in even our sales teams, right? We have VMware and AWS sales teams interacting with each other on a constant daily basis. We're working together with our customers at the end of the day too. Then we're looking to even offer and develop jointly engineered solutions specific to VMware cloud on aws, and even with VMware's, other platforms as well. Then the other thing comes down to is where we have dedicated teams around this at both AWS and VMware. So even from solutions architects, even to our sales specialists, even to our account teams, even to specific engineering teams within the organizations, they all come together to drive this innovation forward with VMware cloud on AWS and the jointly engineered solution partnership as well. And then I think one of the key things to keep in mind comes down to we have nearly 600 channel partners that have achieved VMware cloud on AWS service competency. So think about it from the standpoint there's 300 certified or validated technology solutions, they're now available to our customers. So that's even innovation right off the top as well. >>Great stuff. Daniel, I wanna get to you in a second. Upon this principal architect position you have in your title, you're the global a synergy person. Synergy means bringing things together, making it work. Take us through the architecture, because we heard a lot of folks at VMware explore this year, formerly world, talking about how the, the workloads on it has been completely transforming into cloud and hybrid, right? This is where the action is. Where are you? Is your customers taking advantage of that new shift? You got AI ops, you got it. Ops changing a lot, you got a lot more automation edges right around the corner. This is like a complete transformation from where we were just five years ago. What's your thoughts on the >>Relationship? So at at, at first, I would like to emphasize that our collaboration is not just that we have dedicated teams to help our customers get the most and the best benefits out of VMware cloud on aws. We are also enabling US mutually. So AWS learns from us about the VMware technology, where VMware people learn about the AWS technology. We are also enabling our channel partners and we are working together on customer projects. So we have regular assembled globally and also virtually on Slack and the usual suspect tools working together and listening to customers, that's, that's very important. Asking our customers where are their needs? And we are driving the solution into the direction that our customers get the, the best benefits out of VMware cloud on aws. And over the time we, we really have involved the solution. As Samia mentioned, we just added additional storage solutions to VMware cloud on aws. We now have three different instance types that cover a broad range of, of workload. So for example, we just added the I four I host, which is ideally for workloads that require a lot of CPU power, such as you mentioned it, AI workloads. >>Yeah. So I wanna guess just specifically on the customer journey and their transformation. You know, we've been reporting on Silicon angle in the queue in the past couple weeks in a big way that the OPS teams are now the new devs, right? I mean that sounds OP a little bit weird, but operation IT operations is now part of the, a lot more data ops, security writing code composing, you know, with open source, a lot of great things are changing. Can you share specifically what customers are looking for when you say, as you guys come in and assess their needs, what are they doing? What are some of the things that they're doing with VMware on AWS specifically that's a little bit different? Can you share some of and highlights there? >>That, that's a great point because originally VMware and AWS came from very different directions when it comes to speaking people at customers. So for example, aws very developer focused, whereas VMware has a very great footprint in the IT ops area. And usually these are very different, very different teams, groups, different cultures, but it's, it's getting together. However, we always try to address the customers, right? There are customers that want to build up a new application from the scratch and build resiliency, availability, recoverability, scalability into the application. But there are still a lot of customers that say, well we don't have all of the skills to redevelop everything to refactor an application to make it highly available. So we want to have all of that as a service, recoverability as a service, scalability as a service. We want to have this from the infrastructure. That was one of the unique selling points for VMware on premise and now we are bringing this into the cloud. >>Samir, talk about your perspective. I wanna get your thoughts, and not to take a tangent, but we had covered the AWS remar of, actually it was Amazon res machine learning automation, robotics and space. It was really kinda the confluence of industrial IOT software physical. And so when you look at like the IT operations piece becoming more software, you're seeing things about automation, but the skill gap is huge. So you're seeing low code, no code automation, you know, Hey Alexa, deploy a Kubernetes cluster. Yeah, I mean, I mean that's coming, right? So we're seeing this kind of operating automation meets higher level services meets workloads. Can you unpack that and share your opinion on, on what you see there from an Amazon perspective and how it relates to this? >>Yeah, totally. Right. And you know, look at it from the point of view where we said this is a jointly engineered solution, but it's not migrating to one option or the other option, right? It's more or less together. So even with VMware cloud on aws, yes it is utilizing AWS infrastructure, but your environment is connected to that AWS VPC in your AWS account. So if you wanna leverage any of the native AWS services, so any of the 200 plus AWS services, you have that option to do so. So that's gonna give you that power to do certain things, such as, for example, like how you mentioned with iot, even with utilizing Alexa or if there's any other service that you wanna utilize, that's the joining point between both of the offerings. Right off the top though, with digital transformation, right? You, you have to think about where it's not just about the technology, right? There's also where you want to drive growth in the underlying technology. Even in your business leaders are looking to reinvent their business. They're looking to take different steps as far as pursuing a new strategy. Maybe it's a process, maybe it's with the people, the culture, like how you said before, where people are coming in from a different background, right? They may not be used to the cloud, they may not be used to AWS services, but now you have that capability to mesh them together. Okay. Then also, Oh, >>Go ahead, finish >>Your thought. No, no, I was gonna say, what it also comes down to is you need to think about the operating model too, where it is a shift, right? Especially for that VS four admin that's used to their on-premises at environment. Now with VMware cloud on aws, you have that ability to leverage a cloud, but the investment that you made and certain things as far as automation, even with monitoring, even with logging, yeah. You still have that methodology where you can utilize that in VMware cloud on AWS two. >>Danielle, I wanna get your thoughts on this because at at explore and, and, and after the event, now as we prep for Cuban and reinvent coming up the big AWS show, I had a couple conversations with a lot of the VMware customers and operators and it's like hundreds of thousands of, of, of, of users and millions of people talking about and and peaked on VM we're interested in v VMware. The common thread was one's one, one person said, I'm trying to figure out where I'm gonna put my career in the next 10 to 15 years. And they've been very comfortable with VMware in the past, very loyal, and they're kind of talking about, I'm gonna be the next cloud, but there's no like role yet architects, is it Solution architect sre. So you're starting to see the psychology of the operators who now are gonna try to make these career decisions, like how, what am I gonna work on? And it's, and that was kind of fuzzy, but I wanna get your thoughts. How would you talk to that persona about the future of VMware on, say, cloud for instance? What should they be thinking about? What's the opportunity and what's gonna happen? >>So digital transformation definitely is a huge change for many organizations and leaders are perfectly aware of what that means. And that also means in, in to to some extent, concerns with your existing employees. Concerns about do I have to relearn everything? Do I have to acquire new skills? And, and trainings is everything worthless I learned over the last 15 years of my career? And the, the answer is to make digital transformation a success. We need not just to talk about technology, but also about process people and culture. And this is where VMware really can help because if you are applying VMware cloud on a, on AWS to your infrastructure, to your existing on-premise infrastructure, you do not need to change many things. You can use the same tools and skills, you can manage your virtual machines as you did in your on-premise environment. You can use the same managing and monitoring tools. If you have written, and many customers did this, if you have developed hundreds of, of scripts that automate tasks and if you know how to troubleshoot things, then you can use all of that in VMware cloud on aws. And that gives not just leaders, but but also the architects at customers, the operators at customers, the confidence in, in such a complex project, >>The consistency, very key point, gives them the confidence to go and, and then now that once they're confident they can start committing themselves to new things. Samir, you're reacting to this because you know, on your side you've got higher level services, you got more performance at the hardware level. I mean, lot improvement. So, okay, nothing's changed. I can still run my job now I got goodness on the other side. What's the upside? What's in it for the, for the, for the customer there? >>Yeah, so I think what it comes down to is they've already been so used to or entrenched with that VMware admin mentality, right? But now extending that to the cloud, that's where now you have that bridge between VMware cloud on AWS to bridge that VMware knowledge with that AWS knowledge. So I will look at it from the point of view where now one has that capability and that ability to just learn about the cloud, but if they're comfortable with certain aspects, no one's saying you have to change anything. You can still leverage that, right? But now if you wanna utilize any other AWS service in conjunction with that VM that resides maybe on premises or even in VMware cloud on aws, you have that option to do so. So think about it where you have that ability to be someone who's curious and wants to learn. And then if you wanna expand on the skills, you certainly have that capability to do so. >>Great stuff. I love, love that. Now that we're peeking behind the curtain here, I'd love to have you guys explain, cuz people wanna know what's goes on in behind the scenes. How does innovation get happen? How does it happen with the relationship? Can you take us through a day in the life of kind of what goes on to make innovation happen with the joint partnership? You guys just have a zoom meeting, Do you guys fly out, you write go do you ship thing? I mean I'm making it up, but you get the idea, what's the, what's, how does it work? What's going on behind the scenes? >>So we hope to get more frequently together in person, but of course we had some difficulties over the last two to three years. So we are very used to zoom conferences and and Slack meetings. You always have to have the time difference in mind if we are working globally together. But what we try, for example, we have reg regular assembled now also in person geo based. So for emia, for the Americas, for aj. And we are bringing up interesting customer situations, architectural bits and pieces together. We are discussing it always to share and to contribute to our community. >>What's interesting, you know, as, as events are coming back to here, before you get, you weigh in, I'll comment, as the cube's been going back out to events, we are hearing comments like what, what pandemic we were more productive in the pandemic. I mean, developers know how to work remotely and they've been on all the tools there, but then they get in person, they're happy to see people, but there's no one's, no one's really missed the beat. I mean it seems to be very productive, you know, workflow, not a lot of disruption. More if anything, productivity gains. >>Agreed, right? I think one of the key things to keep in mind is, you know, even if you look at AWS's and even Amazon's leadership principles, right? Customer obsession, that's key. VMware is carrying that forward as well. Where we are working with our customers, like how Daniel said met earlier, right? We might have meetings at different time zones, maybe it's in person, maybe it's virtual, but together we're working to listen to our customers. You know, we're taking and capturing that feedback to drive innovation and VMware cloud on AWS as well. But one of the key things to keep in mind is yes, there have been, there has been the pandemic, we might have been disconnected to a certain extent, but together through technology we've been able to still communicate work with our customers. Even with VMware in between, with AWS and whatnot. We had that flexibility to innovate and continue that innovation. So even if you look at it from the point of view, right? VMware cloud on AWS outposts, that was something that customers have been asking for. We've been been able to leverage the feedback and then continue to drive innovation even around VMware cloud on AWS outposts. So even with the on premises environment, if you're looking to handle maybe data sovereignty or compliance needs, maybe you have low latency requirements, that's where certain advancements come into play, right? So the key thing is always to maintain that communication track. >>And our last segment we did here on the, on this showcase, we listed the accomplishments and they were pretty significant. I mean go, you got the global rollouts of the relationship. It's just really been interesting and, and people can reference that. We won't get into it here, but I will ask you guys to comment on, as you guys continue to evolve the relationship, what's in it for the customer? What can they expect next? Cuz again, I think right now we're in at a, an inflection point more than ever. What can people expect from the relationship and what's coming up with reinvent? Can you share a little bit of kind of what's coming down the pike? >>So one of the most important things we have announced this year, and we will continue to evolve into that direction, is independent scale of storage. That absolutely was one of the most important items customer asked us for over the last years. Whenever, whenever you are requiring additional storage to host your virtual machines, you usually in VMware cloud on aws, you have to add additional notes. Now we have three different note types with different ratios of compute, storage and memory. But if you only require additional storage, you always have to get also additional compute and memory and you have to pay. And now with two solutions which offer choice for the customers, like FS six one, NetApp onap, and VMware cloud Flex Storage, you now have two cost effective opportunities to add storage to your virtual machines. And that offers opportunities for other instance types maybe that don't have local storage. We are also very, very keen looking forward to announcements, exciting announcements at the upcoming events. >>Samir, what's your, what's your reaction take on the, on what's coming down on your side? >>Yeah, I think one of the key things to keep in mind is, you know, we're looking to help our customers be agile and even scale with their needs, right? So with VMware cloud on aws, that's one of the key things that comes to mind, right? There are gonna be announcements, innovations and whatnot with outcoming events. But together we're able to leverage that to advance VMware cloud on AWS to Daniel's point storage, for example, even with host offerings. And then even with decoupling storage from compute and memory, right now you have the flexibility where you can do all of that. So to look at it from the standpoint where now with 21 regions where we have VMware cloud on AWS available as well, where customers can utilize that as needed when needed, right? So it comes down to, you know, transformation will be there. Yes, there's gonna be maybe where workloads have to be adapted where they're utilizing certain AWS services, but you have that flexibility and option to do so. And I think with the continuing events that's gonna give us the options to even advance our own services together. >>Well you guys are in the middle of it, you're in the trenches, you're making things happen, you've got a team of people working together. My final question is really more of a kind of a current situation, kind of future evolutionary thing that you haven't seen this before. I wanna get both of your reaction to it. And we've been bringing this up in, in the open conversations on the cube is in the old days it was going back this generation, you had ecosystems, you had VMware had an ecosystem they did best, had an ecosystem. You know, we have a product, you have a product, biz dev deals happen, people sign relationships and they do business together and they, they sell to each other's products or do some stuff. Now it's more about architecture cuz we're now in a distributed large scale environment where the role of ecosystems are intertwining. >>And this, you guys are in the middle of two big ecosystems. You mentioned channel partners, you both have a lot of partners on both sides. They come together. So you have this now almost a three dimensional or multidimensional ecosystem, you know, interplay. What's your thoughts on this? And, and, and because it's about the architecture, integration is a value, not so much. Innovation is only, you gotta do innovation, but when you do innovation, you gotta integrate it, you gotta connect it. So what is, how do you guys see this as a, as an architectural thing, start to see more technical business deals? >>So we are, we are removing dependencies from individual ecosystems and from individual vendors. So a customer no longer has to decide for one vendor and then it is a very expensive and high effort project to move away from that vendor, which ties customers even, even closer to specific vendors. We are removing these obstacles. So with VMware cloud on aws moving to the cloud, firstly it's, it's not a dead end. If you decide at one point in time because of latency requirements or maybe it's some compliance requirements, you need to move back into on-premise. You can do this if you decide you want to stay with some of your services on premise and just run a couple of dedicated services in the cloud, you can do this and you can mana manage it through a single pane of glass. That's quite important. So cloud is no longer a dead and it's no longer a binary decision, whether it's on premise or the cloud. It it is the cloud. And the second thing is you can choose the best of both works, right? If you are migrating virtual machines that have been running in your on-premise environment to VMware cloud on aws, by the way, in a very, very fast cost effective and safe way, then you can enrich later on enrich these virtual machines with services that are offered by aws. More than 200 different services ranging from object based storage, load balancing and so on. So it's an endless, endless possibility. >>We, we call that super cloud in, in a, in a way that we be generically defining it where everyone's innovating, but yet there's some common services. But the differentiation comes from innovation where the lock in is the value, not some spec, right? Samir, this is gonna where cloud is right now, you guys are, are not commodity. Amazon's completely differentiating, but there's some commodity things. Having got storage, you got compute, but then you got now advances in all areas. But partners innovate with you on their terms. Absolutely. And everybody wins. >>Yeah. And a hundred percent agree with you. I think one of the key things, you know, as Daniel mentioned before, is where it it, it's a cross education where there might be someone who's more proficient on the cloud side with aws, maybe more proficient with the viewers technology, but then for partners, right? They bridge that gap as well where they come in and they might have a specific niche or expertise where their background, where they can help our customers go through that transformation. So then that comes down to, hey, maybe I don't know how to connect to the cloud. Maybe I don't know what the networking constructs are. Maybe I can leverage that partner. That's one aspect to go about it. Now maybe you migrated that workload to VMware cloud on aws. Maybe you wanna leverage any of the native AWS services or even just off the top 200 plus AWS services, right? But it comes down to that skill, right? So again, solutions architecture at the back of, back of the day, end of the day, what it comes down to is being able to utilize the best of both worlds. That's what we're giving our customers at the end of the >>Day. I mean, I just think it's, it's a, it's a refactoring and innovation opportunity at all levels. I think now more than ever, you can take advantage of each other's ecosystems and partners and technologies and change how things get done with keeping the consistency. I mean, Daniel, you nailed that, right? I mean, you don't have to do anything. You still run the fear, the way you working on it and now do new things. This is kind of a cultural shift. >>Yeah, absolutely. And if, if you look, not every, not every customer, not every organization has the resources to refactor and re-platform everything. And we gave, we give them a very simple and easy way to move workloads to the cloud. Simply run them and at the same time they can free up resources to develop new innovations and, and grow their business. >>Awesome. Samir, thank you for coming on. Danielle, thank you for coming to Germany, Octoberfest, I know it's evening over there, your weekend's here. And thank you for spending the time. Samir final give you the final word, AWS reinvents coming up. Preparing. We're gonna have an exclusive with Adam, but Fry, we do a curtain raise, a dual preview. What's coming down on your side with the relationship and what can we expect to hear about what you got going on at reinvent this year? The big show? >>Yeah, so I think, you know, Daniel hit upon some of the key points, but what I will say is we do have, for example, specific sessions, both that VMware's driving and then also that AWS is driving. We do have even where we have what I call a chalk talks. So I would say, and then even with workshops, right? So even with the customers, the attendees who are there, whatnot, if they're looking for to sit and listen to a session, yes that's there. But if they wanna be hands on, that is also there too. So personally for me as an IT background, you know, been in CIS admin world and whatnot, being hands on, that's one of the key things that I personally am looking forward. But I think that's one of the key ways just to learn and get familiar with the technology. Yeah, >>Reinvents an amazing show for the in person. You guys nail it every year. We'll have three sets this year at the cube. It's becoming popular. We more and more content. You guys got live streams going on, a lot of content, a lot of media, so thanks, thanks for sharing that. Samir Daniel, thank you for coming on on this part of the showcase episode of really the customer successes with VMware Cloud Ons, really accelerating business transformation withs and VMware. I'm John Fur with the cube, thanks for watching. Hello everyone. Welcome to this cube showcase, accelerating business transformation with VMware cloud on it's a solution innovation conversation with two great guests, Fred and VP of commercial services at aws and NA Ryan Bard, who's the VP and general manager of cloud solutions at VMware. Gentlemen, thanks for joining me on this showcase. >>Great to be here. >>Hey, thanks for having us on. It's a great topic. You know, we, we've been covering this VMware cloud on abus since, since the launch going back and it's been amazing to watch the evolution from people saying, Oh, it's the worst thing I've ever seen. It's what's this mean? And depress work were, we're kind of not really on board with kind of the vision, but as it played out as you guys had announced together, it did work out great for VMware. It did work out great for a D and it continues two years later and I want just get an update from you guys on where you guys see this has been going. I'll see multiple years. Where is the evolution of the solution as we are right now coming off VMware explorer just recently and going in to reinvent, which is only a couple weeks away, feels like tomorrow. But you know, as we prepare a lot going on, where are we with the evolution of the solution? >>I mean, first thing I wanna say is, you know, PBO 2016 was a someon moment and the history of it, right? When Pat Gelsinger and Andy Jessey came together to announce this and I think John, you were there at the time I was there, it was a great, great moment. We launched the solution in 2017, the year after that at VM Word back when we called it Word, I think we have gone from strength to strength. One of the things that has really mattered to us is we have learned froms also in the processes, this notion of working backwards. So we really, really focused on customer feedback as we build a service offering now five years old, pretty remarkable journey. You know, in the first years we tried to get across all the regions, you know, that was a big focus because there was so much demand for it. >>In the second year we started going really on enterprise grade features. We invented this pretty awesome feature called Stretch clusters, where you could stretch a vSphere cluster using VSA and NSX across two AZs in the same region. Pretty phenomenal four nine s availability that applications start started to get with that particular feature. And we kept moving forward all kinds of integration with AWS direct connect transit gateways with our own advanced networking capabilities. You know, along the way, disaster recovery, we punched out two, two new services just focused on that. And then more recently we launched our outposts partnership. We were up on stage at Reinvent, again with Pat Andy announcing AWS outposts and the VMware flavor of that VMware cloud and AWS outposts. I think it's been significant growth in our federal sector as well with our federal and high certification more recently. So all in all, we are super excited. We're five years old. The customer momentum is really, really strong and we are scaling the service massively across all geos and industries. >>That's great, great update. And I think one of the things that you mentioned was how the advantages you guys got from that relationship. And, and this has kind of been the theme for AWS since I can remember from day one. Fred, you guys do the heavy lifting as as, as you always say for the customers here, VMware comes on board, takes advantage of the AWS and kind of just doesn't miss a beat, continues to move their workloads that everyone's using, you know, vSphere and these are, these are big workloads on aws. What's the AWS perspective on this? How do you see it? >>Yeah, it's pretty fascinating to watch how fast customers can actually transform and move when you take the, the skill set that they're familiar with and the advanced capabilities that they've been using on Preem and then overlay it on top of the AWS infrastructure that's, that's evolving quickly and, and building out new hardware and new instances we'll talk about. But that combined experience between both of us on a jointly engineered solution to bring the best security and the best features that really matter for those workloads drive a lot of efficiency and speed for the, for the customer. So it's been well received and the partnership is stronger than ever from an engineering standpoint, from a business standpoint. And obviously it's been very interesting to look at just how we stay day one in terms of looking at new features and work and, and responding to what customers want. So pretty, pretty excited about just seeing the transformation and the speed that which customers can move to bmc. Yeah, >>That's what great value publish. We've been talking about that in context too. Anyone building on top of the cloud, they can have their own supercloud as we call it. If you take advantage of all the CapEx and and investment Amazon's made and AWS has made and, and and continues to make in performance IAS and pass all great stuff. I have to ask you guys both as you guys see this going to the next level, what are some of the differentiations you see around the service compared to other options on the market? What makes it different? What's the combination? You mentioned jointly engineered, what are some of the key differentiators of the service compared to others? >>Yeah, I think one of the key things Fred talked about is this jointly engineered notion right from day one. We were the earlier doctors of AWS Nitro platform, right? The reinvention of E two back five years ago. And so we have been, you know, having a very, very strong engineering partnership at that level. I think from a VMware customer standpoint, you get the full software defined data center or compute storage networking on EC two, bare metal across all regions. You can scale that elastically up and down. It's pretty phenomenal just having that consistency globally, right on aws EC two global regions. Now the other thing that's a real differentiator for us that customers tell us about is this whole notion of a managed service, right? And this was somewhat new to VMware, but we took away the pain of this undifferentiated heavy lifting where customers had to provision rack, stack hardware, configure the software on top, and then upgrade the software and the security batches on top. >>So we took, took away all of that pain as customers transitioned to VMware cloud and aws. In fact, my favorite story from last year when we were all going through the lock for j debacle industry was just going through that, right? Favorite proof point from customers was before they put even race this issue to us, we sent them a notification saying we already patched all of your systems, no action from you. The customers were super thrilled. I mean these are large banks, many other customers around the world, super thrilled they had to take no action, but a pretty incredible industry challenge that we were all facing. >>Nora, that's a great, so that's a great point. You know, the whole managed service piece brings up the security, you kind of teasing at it, but you know, there's always vulnerabilities that emerge when you are doing complex logic. And as you grow your solutions, there's more bits. You know, Fred, we were commenting before we came on camera, there's more bits than ever before and, and at at the physics layer too, as well as the software. So you never know when there's gonna be a zero day vulnerability out there. Just, it happens. We saw one with fornet this week, this came outta the woodwork. But moving fast on those patches, it's huge. This brings up the whole support angle. I wanted to ask you about how you guys are doing that as well, because to me we see the value when we, when we talk to customers on the cube about this, you know, it was a real, real easy understanding of how, what the cloud means to them with VMware now with the aws. But the question that comes up that we wanna get more clarity on is how do you guys handle support together? >>Well, what's interesting about this is that it's, it's done mutually. We have dedicated support teams on both sides that work together pretty seamlessly to make sure that whether there's a issue at any layer, including all the way up into the app layer, as you think about some of the other workloads like sap, we'll go end to end and make sure that we support the customer regardless of where the particular issue might be for them. And on top of that, we look at where, where we're improving reliability in, in as a first order of, of principle between both companies. So from an availability and reliability standpoint, it's, it's top of mind and no matter where the particular item might land, we're gonna go help the customer resolve. That works really well >>On the VMware side. What's been the feedback there? What's the, what are some of the updates? >>Yeah, I think, look, I mean, VMware owns and operates the service, but we have a phenomenal backend relationship with aws. Customers call VMware for the service for any issues and, and then we have a awesome relationship with AWS on the backend for support issues or any hardware issues. The BASKE management that we jointly do, right? All of the hard problems that customers don't have to worry about. I think on the front end, we also have a really good group of solution architects across the companies that help to really explain the solution. Do complex things like cloud migration, which is much, much easier with VMware cloud aws, you know, we are presenting that easy button to the public cloud in many ways. And so we have a whole technical audience across the two companies that are working with customers every single day. >>You know, you had mentioned, I've got a list here, some of the innovations the, you mentioned the stretch clustering, you know, getting the GOs working, Advanced network, disaster recovery, you know, fed, Fed ramp, public sector certifications, outposts, all good. You guys are checking the boxes every year. You got a good, good accomplishments list there on the VMware AWS side here in this relationship. The question that I'm interested in is what's next? What recent innovations are you doing? Are you making investments in what's on the lists this year? What items will be next year? How do you see the, the new things, the list of accomplishments, people wanna know what's next. They don't wanna see stagnant growth here, they wanna see more action, you know, as as cloud kind of continues to scale and modern applications cloud native, you're seeing more and more containers, more and more, you know, more CF C I C D pipe pipelining with with modern apps, put more pressure on the system. What's new, what's the new innovations? >>Absolutely. And I think as a five yearold service offering innovation is top of mind for us every single day. So just to call out a few recent innovations that we announced in San Francisco at VMware Explorer. First of all, our new platform i four I dot metal, it's isolate based, it's pretty awesome. It's the latest and greatest, all the speeds and feeds that we would expect from VMware and aws. At this point in our relationship. We announced two different storage options. This notion of working from customer feedback, allowing customers even more price reductions, really take off that storage and park it externally, right? And you know, separate that from compute. So two different storage offerings there. One is with AWS Fsx, with NetApp on tap, which brings in our NetApp partnership as well into the equation and really get that NetApp based, really excited about this offering as well. >>And the second storage offering for VMware cloud Flex Storage, VMware's own managed storage offering. Beyond that, we have done a lot of other innovations as well. I really wanted to talk about VMware cloud Flex Compute, where previously customers could only scale by hosts and a host is 36 to 48 cores, give or take. But with VMware cloud Flex Compute, we are now allowing this notion of a resource defined compute model where customers can just get exactly the V C P memory and storage that maps to the applications, however small they might be. So this notion of granularity is really a big innovation that that we are launching in the market this year. And then last but not least, talk about ransomware. Of course it's a hot topic in industry. We are seeing many, many customers ask for this. We are happy to announce a new ransomware recovery with our VMware cloud DR solution. >>A lot of innovation there and the way we are able to do machine learning and make sure the workloads that are covered from snapshots and backups are actually safe to use. So there's a lot of differentiation on that front as well. A lot of networking innovations with Project Knot star for ability to have layer flow through layer seven, you know, new SaaS services in that area as well. Keep in mind that the service already supports managed Kubernetes for containers. It's built in to the same clusters that have virtual machines. And so this notion of a single service with a great TCO for VMs and containers and sort of at the heart of our office, >>The networking side certainly is a hot area to keep innovating on. Every year it's the same, same conversation, get better, faster networking, more, more options there. The flex computes. Interesting. If you don't mind me getting a quick clarification, could you explain the Drew screen resource defined versus hardware defined? Because this is kind of what we had saw at Explore coming out, that notion of resource defined versus hardware defined. What's the, what does that mean? >>Yeah, I mean I think we have been super successful in this hardware defined notion. We we're scaling by the hardware unit that we present as software defined data centers, right? And so that's been super successful. But we, you know, customers wanted more, especially customers in different parts of the world wanted to start even smaller and grow even more incrementally, right? Lower their costs even more. And so this is the part where resource defined starts to be very, very interesting as a way to think about, you know, here's my bag of resources exactly based on what the customers request for fiber machines, five containers, its size exactly for that. And then as utilization grows, we elastically behind the scenes, we're able to grow it through policies. So that's a whole different dimension. It's a whole different service offering that adds value and customers are comfortable. They can go from one to the other, they can go back to that post based model if they so choose to. And there's a jump off point across these two different economic models. >>It's kind of cloud of flexibility right there. I like the name Fred. Let's get into some of the examples of customers, if you don't mind. Let's get into some of the ex, we have some time. I wanna unpack a little bit of what's going on with the customer deployments. One of the things we've heard again on the cube is from customers is they like the clarity of the relationship, they love the cloud positioning of it. And then what happens is they lift and shift the workloads and it's like, feels great. It's just like we're running VMware on AWS and then they would start consuming higher level services, kind of that adoption next level happens and because it it's in the cloud, so, So can you guys take us through some recent examples of customer wins or deployments where they're using VMware cloud on AWS on getting started, and then how do they progress once they're there? How does it evolve? Can you just walk us through a couple of use cases? >>Sure. There's a, well there's a couple. One, it's pretty interesting that, you know, like you said, as there's more and more bits you need better and better hardware and networking. And we're super excited about the I four and the capabilities there in terms of doubling and or tripling what we're doing around a lower variability on latency and just improving all the speeds. But what customers are doing with it, like the college in New Jersey, they're accelerating their deployment on a, on onboarding over like 7,400 students over a six to eight month period. And they've really realized a ton of savings. But what's interesting is where and how they can actually grow onto additional native services too. So connectivity to any other services is available as they start to move and migrate into this. The, the options there obviously are tied to all the innovation that we have across any services, whether it's containerized and with what they're doing with Tanu or with any other container and or services within aws. >>So there's, there's some pretty interesting scenarios where that data and or the processing, which is moved quickly with full compliance, whether it's in like healthcare or regulatory business is, is allowed to then consume and use things, for example, with tech extract or any other really cool service that has, you know, monthly and quarterly innovations. So there's things that you just can't, could not do before that are coming out and saving customers money and building innovative applications on top of their, their current app base in, in a rapid fashion. So pretty excited about it. There's a lot of examples. I think I probably don't have time to go into too, too many here. Yeah. But that's actually the best part is listening to customers and seeing how many net new services and new applications are they actually building on top of this platform. >>Nora, what's your perspective from the VMware sy? So, you know, you guys have now a lot of headroom to offer customers with Amazon's, you know, higher level services and or whatever's homegrown where's being rolled out? Cuz you now have a lot of hybrid too, so, so what's your, what's your take on what, what's happening in with customers? >>I mean, it's been phenomenal, the, the customer adoption of this and you know, banks and many other highly sensitive verticals are running production grade applications, tier one applications on the service over the last five years. And so, you know, I have a couple of really good examples. S and p Global is one of my favorite examples. Large bank, they merge with IHS market, big sort of conglomeration. Now both customers were using VMware cloud and AWS in different ways. And with the, with the use case, one of their use cases was how do I just respond to these global opportunities without having to invest in physical data centers? And then how do I migrate and consolidate all my data centers across the global, which there were many. And so one specific example for this company was how they migrated thousand 1000 workloads to VMware cloud AWS in just six weeks. Pretty phenomenal. If you think about everything that goes into a cloud migration process, people process technology and the beauty of the technology going from VMware point A to VMware point B, the the lowest cost, lowest risk approach to adopting VMware, VMware cloud, and aws. So that's, you know, one of my favorite examples. There are many other examples across other verticals that we continue to see. The good thing is we are seeing rapid expansion across the globe that constantly entering new markets with the limited number of regions and progressing our roadmap there. >>Yeah, it's great to see, I mean the data center migrations go from months, many, many months to weeks. It's interesting to see some of those success stories. So congratulations. One >>Of other, one of the other interesting fascinating benefits is the sustainability improvement in terms of being green. So the efficiency gains that we have both in current generation and new generation processors and everything that we're doing to make sure that when a customer can be elastic, they're also saving power, which is really critical in a lot of regions worldwide at this point in time. They're, they're seeing those benefits. If you're running really inefficiently in your own data center, that is just a, not a great use of power. So the actual calculators and the benefits to these workloads is, are pretty phenomenal just in being more green, which I like. We just all need to do our part there. And, and this is a big part of it here. >>It's a huge, it's a huge point about the sustainability. Fred, I'm glad you called that out. The other one I would say is supply chain issues. Another one you see that constrains, I can't buy hardware. And the third one is really obvious, but no one really talks about it. It's security, right? I mean, I remember interviewing Stephen Schmidt with that AWS and many years ago, this is like 2013, and you know, at that time people were saying the cloud's not secure. And he's like, listen, it's more secure in the cloud on premise. And if you look at the security breaches, it's all about the on-premise data center vulnerabilities, not so much hardware. So there's a lot you gotta to stay current on, on the isolation there is is hard. So I think, I think the security and supply chain, Fred is, is another one. Do you agree? >>I I absolutely agree. It's, it's hard to manage supply chain nowadays. We put a lot of effort into that and I think we have a great ability to forecast and make sure that we can lean in and, and have the resources that are available and run them, run them more efficiently. Yeah, and then like you said on the security point, security is job one. It is, it is the only P one. And if you think of how we build our infrastructure from Nitro all the way up and how we respond and work with our partners and our customers, there's nothing more important. >>And naron your point earlier about the managed service patching and being on top of things, it's really gonna get better. All right, final question. I really wanna thank you for your time on this showcase. It's really been a great conversation. Fred, you had made a comment earlier. I wanna kind of end with kind of a curve ball and put you eyes on the spot. We're talking about a modern, a new modern shift. It's another, we're seeing another inflection point, we've been documenting it, it's almost like cloud hitting another inflection point with application and open source growth significantly at the app layer. Continue to put a lot of pressure and, and innovation in the infrastructure side. So the question is for you guys each to answer is what's the same and what's different in today's market? So it's kind of like we want more of the same here, but also things have changed radically and better here. What are the, what's, what's changed for the better and where, what's still the same kind of thing hanging around that people are focused on? Can you share your perspective? >>I'll, I'll, I'll, I'll tackle it. You know, businesses are complex and they're often unique that that's the same. What's changed is how fast you can innovate. The ability to combine manage services and new innovative services and build new applications is so much faster today. Leveraging world class hardware that you don't have to worry about that's elastic. You, you could not do that even five, 10 years ago to the degree you can today, especially with innovation. So innovation is accelerating at a, at a rate that most people can't even comprehend and understand the, the set of services that are available to them. It's really fascinating to see what a one pizza team of of engineers can go actually develop in a week. It is phenomenal. So super excited about this space and it's only gonna continue to accelerate that. That's my take. All right. >>You got a lot of platform to compete on with, got a lot to build on then you're Ryan, your side, What's your, what's your answer to that question? >>I think we are seeing a lot of innovation with new applications that customers are constant. I think what we see is this whole notion of how do you go from desktop to production to the secure supply chain and how can we truly, you know, build on the agility that developers desire and build all the security and the pipelines to energize that motor production quickly and efficiently. I think we, we are seeing, you know, we are at the very start of that sort of of journey. Of course we have invested in Kubernetes the means to an end, but there's so much more beyond that's happening in industry. And I think we're at the very, very beginning of this transformations, enterprise transformation that many of our customers are going through and we are inherently part of it. >>Yeah. Well gentlemen, I really appreciate that we're seeing the same thing. It's more the same here on, you know, solving these complexities with distractions. Whether it's, you know, higher level services with large scale infrastructure at, at your fingertips. Infrastructures, code, infrastructure to be provisioned, serverless, all the good stuff happen in Fred with AWS on your side. And we're seeing customers resonate with this idea of being an operator, again, being a cloud operator and developer. So the developer ops is kind of, DevOps is kind of changing too. So all for the better. Thank you for spending the time and we're seeing again, that traction with the VMware customer base and of us getting, getting along great together. So thanks for sharing your perspectives, >>I appreciate it. Thank you so >>Much. Okay, thank you John. Okay, this is the Cube and AWS VMware showcase, accelerating business transformation. VMware cloud on aws, jointly engineered solution, bringing innovation to the VMware customer base, going to the cloud and beyond. I'm John Fur, your host. Thanks for watching. Hello everyone. Welcome to the special cube presentation of accelerating business transformation on vmc on aws. I'm John Furrier, host of the Cube. We have dawan director of global sales and go to market for VMware cloud on adb. This is a great showcase and should be a lot of fun. Ashish, thanks for coming on. >>Hi John. Thank you so much. >>So VMware cloud on AWS has been well documented as this big success for VMware and aws. As customers move their workloads into the cloud, IT operations of VMware customers has signaling a lot of change. This is changing the landscape globally is on cloud migration and beyond. What's your take on this? Can you open this up with the most important story around VMC on aws? >>Yes, John. The most important thing for our customers today is the how they can safely and swiftly move their ID infrastructure and applications through cloud. Now, VMware cloud AWS is a service that allows all vSphere based workloads to move to cloud safely, swiftly and reliably. Banks can move their core, core banking platforms, insurance companies move their core insurance platforms, telcos move their goss, bss, PLA platforms, government organizations are moving their citizen engagement platforms using VMC on aws because this is one platform that allows you to move it, move their VMware based platforms very fast. Migrations can happen in a matter of days instead of months. Extremely securely. It's a VMware manage service. It's very secure and highly reliably. It gets the, the reliability of the underlyings infrastructure along with it. So win-win from our customers perspective. >>You know, we reported on this big news in 2016 with Andy Chas, the, and Pat Geling at the time, a lot of people said it was a bad deal. It turned out to be a great deal because not only could VMware customers actually have a cloud migrate to the cloud, do it safely, which was their number one concern. They didn't want to have disruption to their operations, but also position themselves for what's beyond just shifting to the cloud. So I have to ask you, since you got the finger on the pulse here, what are we seeing in the market when it comes to migrating and modern modernizing in the cloud? Because that's the next step. They go to the cloud, you guys have done that, doing it, then they go, I gotta modernize, which means kind of upgrading or refactoring. What's your take on that? >>Yeah, absolutely. Look, the first step is to help our customers assess their infrastructure and licensing and entire ID operations. Once we've done the assessment, we then create their migration plans. A lot of our customers are at that inflection point. They're, they're looking at their real estate, ex data center, real estate. They're looking at their contracts with colocation vendors. They really want to exit their data centers, right? And VMware cloud and AWS is a perfect solution for customers who wanna exit their data centers, migrate these applications onto the AWS platform using VMC on aws, get rid of additional real estate overheads, power overheads, be socially and environmentally conscious by doing that as well, right? So that's the migration story, but to your point, it doesn't end there, right? Modernization is a critical aspect of the entire customer journey as as well customers, once they've migrated their ID applications and infrastructure on cloud get access to all the modernization services that AWS has. They can correct easily to our data lake services, to our AIML services, to custom databases, right? They can decide which applications they want to keep and which applications they want to refactor. They want to take decisions on containerization, make decisions on service computing once they've come to the cloud. But the most important thing is to take that first step. You know, exit data centers, come to AWS using vmc or aws, and then a whole host of modernization options available to them. >>Yeah, I gotta say, we had this right on this, on this story, because you just pointed out a big thing, which was first order of business is to make sure to leverage the on-prem investments that those customers made and then migrate to the cloud where they can maintain their applications, their data, their infrastructure operations that they're used to, and then be in position to start getting modern. So I have to ask you, how are you guys specifically, or how is VMware cloud on s addressing these needs of the customers? Because what happens next is something that needs to happen faster. And sometimes the skills might not be there because if they're running old school, IT ops now they gotta come in and jump in. They're gonna use a data cloud, they're gonna want to use all kinds of machine learning, and there's a lot of great goodness going on above the stack there. So as you move with the higher level services, you know, it's a no brainer, obviously, but they're not, it's not yesterday's higher level services in the cloud. So how are, how is this being addressed? >>Absolutely. I think you hit up on a very important point, and that is skills, right? When our customers are operating, some of the most critical applications I just mentioned, core banking, core insurance, et cetera, they're most of the core applications that our customers have across industries, like even, even large scale ERP systems, they're actually sitting on VMware's vSphere platform right now. When the customer wants to migrate these to cloud, one of the key bottlenecks they face is skill sets. They have the trained manpower for these core applications, but for these high level services, they may not, right? So the first order of business is to help them ease this migration pain as much as possible by not wanting them to, to upscale immediately. And we VMware cloud and AWS exactly does that. I mean, you don't have to do anything. You don't have to create new skill set for doing this, right? Their existing skill sets suffice, but at the same time, it gives them that, that leeway to build that skills roadmap for their team. DNS is invested in that, right? Yes. We want to help them build those skills in the high level services, be it aml, be it, be it i t be it data lake and analytics. We want to invest in them, and we help our customers through that. So that ultimately the ultimate goal of making them drop data is, is, is a front and center. >>I wanna get into some of the use cases and success stories, but I want to just reiterate, hit back your point on the skill thing. Because if you look at what you guys have done at aws, you've essentially, and Andy Chassey used to talk about this all the time when I would interview him, and now last year Adam was saying the same thing. You guys do all the heavy lifting, but if you're a VMware customer user or operator, you are used to things. You don't have to be relearn to be a cloud architect. Now you're already in the game. So this is like almost like a instant path to cloud skills for the VMware. There's hundreds of thousands of, of VMware architects and operators that now instantly become cloud architects, literally overnight. Can you respond to that? Do you agree with that? And then give an example. >>Yes, absolutely. You know, if you have skills on the VMware platform, you know, know, migrating to AWS using via by cloud and AWS is absolutely possible. You don't have to really change the skills. The operations are exactly the same. The management systems are exactly the same. So you don't really have to change anything but the advantages that you get access to all the other AWS services. So you are instantly able to integrate with other AWS services and you become a cloud architect immediately, right? You are able to solve some of the critical problems that your underlying IT infrastructure has immediately using this. And I think that's a great value proposition for our customers to use this service. >>And just one more point, I want just get into something that's really kind of inside baseball or nuanced VMC or VMware cloud on AWS means something. Could you take a minute to explain what on AWS means? Just because you're like hosting and using Amazon as a, as a work workload? Being on AWS means something specific in your world, being VMC on AWS mean? >>Yes. This is a great question, by the way, You know, on AWS means that, you know, VMware's vse platform is, is a, is an iconic enterprise virtualization software, you know, a disproportionately high market share across industries. So when we wanted to create a cloud product along with them, obviously our aim was for them, for the, for this platform to have the goodness of the AWS underlying infrastructure, right? And, and therefore, when we created this VMware cloud solution, it it literally use the AWS platform under the eighth, right? And that's why it's called a VMs VMware cloud on AWS using, using the, the, the wide portfolio of our regions across the world and the strength of the underlying infrastructure, the reliability and, and, and sustainability that it offers. And therefore this product is called VMC on aws. >>It's a distinction I think is worth noting, and it does reflect engineering and some levels of integration that go well beyond just having a SaaS app and, and basically platform as a service or past services. So I just wanna make sure that now super cloud, we'll talk about that a little bit in another interview, but I gotta get one more question in before we get into the use cases and customer success stories is in, in most of the VM world, VMware world, in that IT world, it used to, when you heard migration, people would go, Oh my God, that's gonna take months. And when I hear about moving stuff around and doing cloud native, the first reaction people might have is complexity. So two questions for you before we move on to the next talk. Track complexity. How are you addressing the complexity issue and how long these migrations take? Is it easy? Is it it hard? I mean, you know, the knee jerk reaction is month, You're very used to that. If they're dealing with Oracle or other old school vendors, like, they're, like the old guard would be like, takes a year to move stuff around. So can you comment on complexity and speed? >>Yeah. So the first, first thing is complexity. And you know, what makes what makes anything complex is if you're, if you're required to acquire new skill sets or you've gotta, if you're required to manage something differently, and as far as VMware cloud and AWS on both these aspects, you don't have to do anything, right? You don't have to acquire new skill sets. Your existing idea operation skill sets on, on VMware's platforms are absolutely fine and you don't have to manage it any differently like, than what you're managing your, your ID infrastructure today. So in both these aspects, it's exactly the same and therefore it is absolutely not complex as far as, as far as, as far as we cloud and AWS is concerned. And the other thing is speed. This is where the huge differentiation is. You have seen that, you know, large banks and large telcos have now moved their workloads, you know, literally in days instead of months. >>Because because of VMware cloud and aws, a lot of time customers come to us with specific deadlines because they want to exit their data centers on a particular date. And what happens, VMware cloud and AWS is called upon to do that migration, right? So speed is absolutely critical. The reason is also exactly the same because you are using the exactly the same platform, the same management systems, people are available to you, you're able to migrate quickly, right? I would just reference recently we got an award from President Zelensky of Ukraine for, you know, migrating their entire ID digital infrastructure and, and that that happened because they were using VMware cloud database and happened very swiftly. >>That's been a great example. I mean, that's one political, but the economic advantage of getting outta the data center could be national security. You mentioned Ukraine, I mean Oscar see bombing and death over there. So clearly that's a critical crown jewel for their running their operations, which is, you know, you know, world mission critical. So great stuff. I love the speed thing. I think that's a huge one. Let's get into some of the use cases. One of them is, the first one I wanted to talk about was we just hit on data, data center migration. It could be financial reasons on a downturn or our, or market growth. People can make money by shifting to the cloud, either saving money or making money. You win on both sides. It's a, it's a, it's almost a recession proof, if you will. Cloud is so use case for number one data center migration. Take us through what that looks like. Give an example of a success. Take us through a day, day in the life of a data center migration in, in a couple minutes. >>Yeah. You know, I can give you an example of a, of a, of a large bank who decided to migrate, you know, their, all their data centers outside their existing infrastructure. And they had, they had a set timeline, right? They had a set timeline to migrate the, the, they were coming up on a renewal and they wanted to make sure that this set timeline is met. We did a, a complete assessment of their infrastructure. We did a complete assessment of their IT applications, more than 80% of their IT applications, underlying v vSphere platform. And we, we thought that the right solution for them in the timeline that they wanted, right, is VMware cloud ands. And obviously it was a large bank, it wanted to do it safely and securely. It wanted to have it completely managed, and therefore VMware cloud and aws, you know, ticked all the boxes as far as that is concerned. >>I'll be happy to report that the large bank has moved to most of their applications on AWS exiting three of their data centers, and they'll be exiting 12 more very soon. So that's a great example of, of, of the large bank exiting data centers. There's another Corolla to that. Not only did they manage to manage to exit their data centers and of course use and be more agile, but they also met their sustainability goals. Their board of directors had given them goals to be carbon neutral by 2025. They found out that 35% of all their carbon foot footprint was in their data centers. And if they moved their, their ID infrastructure to cloud, they would severely reduce the, the carbon footprint, which is 35% down to 17 to 18%. Right? And that meant their, their, their, their sustainability targets and their commitment to the go to being carbon neutral as well. >>And that they, and they shift that to you guys. Would you guys take that burden? A heavy lifting there and you guys have a sustainability story, which is a whole nother showcase in and of itself. We >>Can Exactly. And, and cause of the scale of our, of our operations, we are able to, we are able to work on that really well as >>Well. All right. So love the data migration. I think that's got real proof points. You got, I can save money, I can, I can then move and position my applications into the cloud for that reason and other reasons as a lot of other reasons to do that. But now it gets into what you mentioned earlier was, okay, data migration, clearly a use case and you laid out some successes. I'm sure there's a zillion others. But then the next step comes, now you got cloud architects becoming minted every, and you got managed services and higher level services. What happens next? Can you give us an example of the use case of the modernization around the NextGen workloads, NextGen applications? We're starting to see, you know, things like data clouds, not data warehouses. We're not gonna data clouds, it's gonna be all kinds of clouds. These NextGen apps are pure digital transformation in action. Take us through a use case of how you guys make that happen with a success story. >>Yes, absolutely. And this is, this is an amazing success story and the customer here is s and p global ratings. As you know, s and p global ratings is, is the world leader as far as global ratings, global credit ratings is concerned. And for them, you know, the last couple of years have been tough as far as hardware procurement is concerned, right? The pandemic has really upended the, the supply chain. And it was taking a lot of time to procure hardware, you know, configure it in time, make sure that that's reliable and then, you know, distribute it in the wide variety of, of, of offices and locations that they have. And they came to us. We, we did, again, a, a, a alar, a fairly large comprehensive assessment of their ID infrastructure and their licensing contracts. And we also found out that VMware cloud and AWS is the right solution for them. >>So we worked there, migrated all their applications, and as soon as we migrated all their applications, they got, they got access to, you know, our high level services be our analytics services, our machine learning services, our, our, our, our artificial intelligence services that have been critical for them, for their growth. And, and that really is helping them, you know, get towards their next level of modern applications. Right Now, obviously going forward, they will have, they will have the choice to, you know, really think about which applications they want to, you know, refactor or which applications they want to go ahead with. That is really a choice in front of them. And, but you know, the, we VMware cloud and AWS really gave them the opportunity to first migrate and then, you know, move towards modernization with speed. >>You know, the speed of a startup is always the kind of the Silicon Valley story where you're, you know, people can make massive changes in 18 months, whether that's a pivot or a new product. You see that in startup world. Now, in the enterprise, you can see the same thing. I noticed behind you on your whiteboard, you got a slogan that says, are you thinking big? I know Amazon likes to think big, but also you work back from the customers and, and I think this modern application thing's a big deal because I think the mindset has always been constrained because back before they moved to the cloud, most IT, and, and, and on-premise data center shops, it's slow. You gotta get the hardware, you gotta configure it, you gotta, you gotta stand it up, make sure all the software is validated on it, and loading a database and loading oss, I mean, mean, yeah, it got easier and with scripting and whatnot, but when you move to the cloud, you have more scale, which means more speed, which means it opens up their capability to think differently and build product. What are you seeing there? Can you share your opinion on that epiphany of, wow, things are going fast, I got more time to actually think about maybe doing a cloud native app or transforming this or that. What's your, what's your reaction to that? Can you share your opinion? >>Well, ultimately we, we want our customers to utilize, you know, most of our modern services, you know, applications should be microservices based. When desired, they should use serverless applic. So list technology, they should not have monolithic, you know, relational database contracts. They should use custom databases, they should use containers when needed, right? So ultimately, we want our customers to use these modern technologies to make sure that their IT infrastructure, their licensing, their, their entire IT spend is completely native to cloud technologies. They work with the speed of a startup, but it's important for them to, to, to get to the first step, right? So that's why we create this journey for our customers, where you help them migrate, give them time to build the skills, they'll help them mo modernize, take our partners along with their, along with us to, to make sure that they can address the need for our customers. That's, that's what our customers need today, and that's what we are working backwards from. >>Yeah, and I think that opens up some big ideas. I'll just say that the, you know, we're joking, I was joking the other night with someone here in, in Palo Alto around serverless, and I said, you know, soon you're gonna hear words like architectural list. And that's a criticism on one hand, but you might say, Hey, you know, if you don't really need an architecture, you know, storage lists, I mean, at the end of the day, infrastructure is code means developers can do all the it in the coding cycles and then make the operations cloud based. And I think this is kind of where I see the dots connecting. Final thought here, take us through what you're thinking around how this new world is evolving. I mean, architecturals kind of a joke, but the point is, you know, you have to some sort of architecture, but you don't have to overthink it. >>Totally. No, that's a great thought, by the way. I know it's a joke, but it's a great thought because at the end of the day, you know, what do the customers really want? They want outcomes, right? Why did service technology come? It was because there was an outcome that they needed. They didn't want to get stuck with, you know, the, the, the real estate of, of a, of a server. They wanted to use compute when they needed to, right? Similarly, what you're talking about is, you know, outcome based, you know, desire of our customers and, and, and that's exactly where the word is going to, Right? Cloud really enforces that, right? We are actually, you know, working backwards from a customer's outcome and using, using our area the breadth and depth of our services to, to deliver those outcomes, right? And, and most of our services are in that path, right? When we use VMware cloud and aws, the outcome is a, to migrate then to modernize, but doesn't stop there, use our native services, you know, get the business outcomes using this. So I think that's, that's exactly what we are going through >>Actually, should actually, you're the director of global sales and go to market for VMware cloud on Aus. I wanna thank you for coming on, but I'll give you the final minute. Give a plug, explain what is the VMware cloud on Aus, Why is it great? Why should people engage with you and, and the team, and what ultimately is this path look like for them going forward? >>Yeah. At the end of the day, we want our customers to have the best paths to the cloud, right? The, the best path to the cloud is making sure that they migrate safely, reliably, and securely as well as with speed, right? And then, you know, use that cloud platform to, to utilize AWS's native services to make sure that they modernize their IT infrastructure and applications, right? We want, ultimately that our customers, customers, customer get the best out of, you know, utilizing the, that whole application experience is enhanced tremendously by using our services. And I think that's, that's exactly what we are working towards VMware cloud AWS is, is helping our customers in that journey towards migrating, modernizing, whether they wanna exit a data center or whether they wanna modernize their applications. It's a essential first step that we wanna help our customers with >>One director of global sales and go to market with VMware cloud on neighbors. He's with aws sharing his thoughts on accelerating business transformation on aws. This is a showcase. We're talking about the future path. We're talking about use cases with success stories from customers as she's thank you for spending time today on this showcase. >>Thank you, John. I appreciate it. >>Okay. This is the cube, special coverage, special presentation of the AWS Showcase. I'm John Furrier, thanks for watching.

>>Welcome back everyone, to the special presentation of Cloud Native at scale, the Cube and Platform nine special presentation going in and digging into the next generation super cloud infrastructure as code and the future of application development. We're here with Bickley, who's the chief architect and co-founder of Platform nine Pick. Great to see you Cube alumni. We, we met at an OpenStack event in about eight years ago, or later, earlier when OpenStack was going. Great to see you and great to see congratulations on the success of Platform nine. Thank >>You very much. >>Yeah. You guys have been at this for a while and this is really the, the, the year we're seeing the, the crossover of Kubernetes because of what happens with containers. Everyone now has realized, and you've seen what Docker's doing with the new docker, the open source Docker now just a success Exactly. Of containerization. Right? And now the Kubernetes layer that we've been working on for years is coming, Bearing fruit. This is huge. >>Exactly, Yes. >>And so as infrastructure, as code comes in, we talked to Bacar, talking about Super Cloud. I met her about, you know, the new Arlon, our, our lawn you guys just launched, the infrastructure's code is going to another level, and then it's always been DevOps infrastructure is code. That's been the ethos that's been like from day one, developers just code. Then you saw the rise of serverless and you see now multi-cloud or on the horizon. Connect the dots for us. What is the state of infrastructures code today? >>So I think, I think I'm, I'm glad you mentioned it. Everybody or most people know about infrastructures code, but with Kubernetes, I think that project has evolved at the concept even further. And these dates, it's infrastructure is configuration, right? So, which is an evolution of infrastructure as code. So instead of telling the system, here's how I want my infrastructure by telling it, you know, do step A, B, C, and D. Instead, with Kubernetes, you can describe your desired state declaratively using things called manifest resources. And then the system kind of magically figures it out and tries to converge the state towards the one that you specify. So I think it's, it's a even better version of infrastructures code. Yeah, >>Yeah. And, and that really means it's developer just accessing resources. Okay. That declare, Okay, give me some compute, stand me up some, turn the lights on, turn 'em off, turn 'em on. That's kind of where we see this going. And I like the configuration piece. Some people say composability, I mean now with open source, so popular, you don't have to have to write a lot of code, this code being developed. And so it's into integrations, configuration. These are areas that we're starting to see computer science principles around automation, machine learning, assisting open source. Cuz you've got a lot of code that's right in hearing software, supply chain issues. So infrastructure as code has to factor in these new, new dynamics. Can you share your opinion on these new dynamics of, as open source grows, the glue layers, the configurations, the integration, what are the core issues? >>I think one of the major core issues is with all that power comes complexity, right? So, you know, despite its expressive power systems like Kubernetes and declarative APIs let you express a lot of complicated and complex stacks, right? But you're dealing with hundreds if not thousands of these yamo files or resources. And so I think, you know, the emergence of systems and layers to help you manage that complexity is becoming a key challenge and opportunity in, in this space. That's, >>I wrote a LinkedIn post today, it was comments about, you know, hey, enterprise is the new breed, the trend of SaaS companies moving our consumer comp consumer-like thinking into the enterprise has been happening for a long time, but now more than ever, you're seeing it the old way used to be solve complexity with more complexity and then lock the customer in. Now with open source, it's speed, simplification and integration, right? These are the new dynamic power dynamics for developers. Yeah. So as companies are starting to now deploy and look at Kubernetes, what are the things that need to be in place? Because you have some, I won't say technical debt, but maybe some shortcuts, some scripts here that make it look like infrastructure is code. People have done some things to simulate or or make infrastructure as code happen. Yes. But to do it at scale Yes. Is harder. What's your take on this? What's your >>View? It's hard because there's a per proliferation of methods, tools, technologies. So for example, today it's very common for DevOps and platform engineering tools, I mean, sorry, teams to have to deploy a large number of Kubernetes clusters, but then apply the applications and configurations on top of those clusters. And they're using a wide range of tools to do this, right? For example, maybe Ansible or Terraform or bash scripts to bring up the infrastructure and then the clusters. And then they may use a different set of tools such as Argo CD or other tools to apply configurations and applications on top of the clusters. So you have this sprawl of tools. You, you also have this sprawl of configurations and files because the more objects you're dealing with, the more resources you have to manage. And there's a risk of drift that people call that where, you know, you think you have things under control, but some people from various teams will make changes here and there and then before the end of the day systems break and you have no idea of tracking them. So I think there's real need to kind of unify, simplify, and try to solve these problems using a smaller, more unified set of tools and methodologies. And that's something that we tried to do with this new project. Arlon. >>Yeah. So, so we're gonna get into our line in a second. I wanna get into the why Arlon. You guys announced that at our GoCon, which was put on here in Silicon Valley at the, at the community invite in two where they had their own little day over there at their headquarters. But before we get there, vascar, your CEO came on and he talked about Super Cloud at our in AAL event. What's your definition of super cloud? If you had to kind of explain that to someone at a cocktail party or someone in the industry technical, how would you look at the super cloud trend that's emerging? It's become a thing. What's your, what would be your contribution to that definition or the narrative? >>Well, it's, it's, it's funny because I've actually heard of the term for the first time today, speaking to you earlier today. But I think based on what you said, I I already get kind of some of the, the gist and the, the main concepts. It seems like super cloud, the way I interpret that is, you know, clouds and infrastructure, programmable infrastructure, all of those things are becoming commodity in a way. And everyone's got their own flavor, but there's a real opportunity for people to solve real business problems by perhaps trying to abstract away, you know, all of those various implementations and then building better abstractions that are perhaps business or application specific to help companies and businesses solve real business problems. >>Yeah, I remember that's a great, great definition. I remember, not to date myself, but back in the old days, you know, IBM had a proprietary network operating system, so of deck for the mini computer vendors, deck net and SNA respectively. But T C P I P came out of the osi, the open systems interconnect and remember, ethernet beat token ring out. So not to get all nerdy for all the young kids out there, look, just look up token ring, you'll see, you've probably never heard of it. It's IBM's, you know, connection to the internet at the, the layer too is Amazon, the ethernet, right? So if T C P I P could be the Kubernetes and the container abstraction that made the industry completely change at that point in history. So at every major inflection point where there's been serious industry change and wealth creation and business value, there's been an abstraction Yes. Somewhere. Yes. What's your reaction to that? >>I think this is, I think a saying that's been heard many times in this industry and, and I forgot who originated it, but I think the saying goes like, there's no problem that can't be solved with another layer of indirection, right? And we've seen this over and over and over again where Amazon and its peers have inserted this layer that has simplified, you know, computing and, and infrastructure management. And I believe this trend is going to continue, right? The next set of problems are going to be solved with these insertions of additional abstraction layers. I think that that's really a, yeah, it's gonna continue. >>It's interesting. I just, when I wrote another post today on LinkedIn called the Silicon Wars AMD stock is down arm has been on a rise. We've remember pointing for many years now, that arm's gonna be hugely, it has become true. If you look at the success of the infrastructure as a serviced layer across the clouds, Azure, aws, Amazon's clearly way ahead of everybody. The stuff that they're doing with the silicon and the physics and the, the atoms, the pro, you know, this is where the innovation, they're going so deep and so strong at ISAs, the more that they get that gets come on, they have more performance. So if you're an app developer, wouldn't you want the best performance and you'd want to have the best abstraction layer that gives you the most ability to do infrastructures, code or infrastructure for configuration, for provisioning, for managing services. And you're seeing that today with service MeSHs, a lot of action going on in the service mesh area in in this community of, of co con, which we will be covering. So that brings up the whole what's next? You guys just announced Arlon at ar GoCon, which came out of Intuit. We've had Mariana Tessel at our super cloud event. She's the cto, you know, they're all in the cloud. So they contributed that project. Where did Arlon come from? What was the origination? What's the purpose? Why arlon, why this announcement? Yeah, >>So the, the inception of the project, this was the result of us realizing that problem that we spoke about earlier, which is complexity, right? With all of this, these clouds, these infrastructure, all the variations around and, you know, compute storage networks and the proliferation of tools we talked about the Ansibles and Terraforms and Kubernetes itself, you can think of that as another tool, right? We saw a need to solve that complexity problem, and especially for people and users who use Kubernetes at scale. So when you have, you know, hundreds of clusters, thousands of applications, thousands of users spread out over many, many locations, there, there needs to be a system that helps simplify that management, right? So that means fewer tools, more expressive ways of describing the state that you want and more consistency. And, and that's why, you know, we built our lawn and we built it recognizing that many of these problems or sub problems have already been solved. So Arlon doesn't try to reinvent the wheel, it instead rests on the shoulders of several giants, right? So for example, Kubernetes is one building block, GI ops, and Argo CD is another one, which provides a very structured way of applying configuration. And then we have projects like cluster API and cross plane, which provide APIs for describing infrastructure. So arlon takes all of those building blocks and builds a thin layer, which gives users a very expressive way of defining configuration and desired state. So that's, that's kind of the inception of, >>And what's the benefit of that? What does that give the, what does that give the developer, the user, in this case, >>The developers, the, the platform engineer, team members, the DevOps engineers, they get a a ways to provision not just infrastructure and clusters, but also applications and configurations. They get a way, a system for provisioning, configuring, deploying, and doing life cycle management in a, in a much simpler way. Okay. Especially as I said, if you're dealing with a large number of applications. >>So it's like an operating fabric, if you will. Yes. For them. Okay, so let's get into what that means for up above and below the, the, this abstraction or thin layer below as the infrastructure. We talked a lot about what's going on below that. Yeah. Above our workloads. At the end of the day, you, I talk to CXOs and IT folks that, that are now DevOps engineers. They care about the workloads and they want the infrastructure's code to work. They wanna spend their time getting in the weeds, figuring out what happened when someone made a push that that happened or something happened to need observability and they need to, to know that it's working. That's right. And here's my workloads running effectively. So how do you guys look at the workload side of it? Cuz now you have multiple workloads on these fabric, right? >>So workloads, so Kubernetes has defined kind of a standard way to describe workloads and you can, you know, tell Kubernetes, I wanna run this container this particular way, or you can use other projects that are in the Kubernetes cloud native ecosystem, like K native, where you can express your application in more at a higher level, right? But what's also happening is in addition to the workloads, DevOps and platform engineering teams, they need to very often deploy the applications with the clusters themselves. Clusters are becoming this commodity. It's, it's becoming this host for the application and it kind of comes bundled with it. In many cases it is like an appliance, right? So DevOps teams have to provision clusters at a really incredible rate and they need to tear them down. Clusters are becoming more, >>It's coming like an EC two instance, spin up a cluster. We very, people used words like that. >>That's right. And before arlon you kind of had to do all of that using a different set of tools as, as I explained. So with Arlon you can kind of express everything together. You can say I want a cluster with a health monitoring stack and a logging stack and this ingress controller and I want these applications and these security policies. You can describe all of that using something we call a profile. And then you can stamp out your app, your applications and your clusters and manage them in a very, >>So essentially standard like creates a mechanism. Exactly. Standardized, declarative kind of configurations. And it's like a playbook, deploy it. Now what there between say a script like I'm, I have scripts, I can just automate scripts >>Or yes, this is where that declarative API and infrastructures configuration comes in, right? Because scripts, yes you can automate scripts, but the order in which they run matters, right? They can break, things can break in the middle and, and sometimes you need to debug them. Whereas the declarative way is much more expressive and powerful. You just tell the system what you want and then the system kind of figures it out. And there are these things got controllers which will in the background reconcile all the state to converge towards your desire. It's a much more powerful, expressive and reliable way of getting things done. >>So infrastructure has configuration is built kind of on it's super set of infrastructures code because it's >>An evolution. >>You need edge re's code, but then you can configure the code by just saying do it. You basically declaring it's saying Go, go do that. That's right. Okay, so, alright, so cloud native at scale, take me through your vision of what that means. Someone says, Hey, what does cloud native at scale mean? What's success look like? How does it roll out in the future as you, not future next couple years. I mean people are now starting to figure out, okay, it's not as easy as it sounds. Kubernetes has value. We're gonna hear this year coan a lot of this. What does cloud native at scale mean? >>Yeah, there are different interpretations, but if you ask me, when people think of scale, they think of a large number of deployments, right? Geographies, many, you know, supporting thousands or tens or millions of, of users there, there's that aspect to scale. There's also an equally important a aspect of scale, which is also something that we try to address with Arran. And that is just complexity for the people operating this or configuring this, right? So in order to describe that desired state, and in order to perform things like maybe upgrades or updates on a very large scale, you want the humans behind that to be able to express and direct the system to do that in, in relatively simple terms, right? And so we want the tools and the abstractions and the mechanisms available to the user to be as powerful but as simple as possible. So there's, I think there's gonna be a number and there have been a number of CNCF and cloud native projects that are trying to attack that complexity problem as well. And Arlon kind of falls in in that >>Category. Okay, so I'll put you on the spot. Rogue got Coan coming up and obviously this'll be shipping this segment series out before. What do you expect to see at this year? What's the big story this year? What's the, what's the most important thing happening? Is it in the open source community and also within a lot of the, the people jogging for leadership. I know there's a lot of projects and still there's some white space in the overall systems map about the different areas get run time, there's ability in all these different areas. What's the, where's the action? Where, where's the smoke? Where's the fire? Where's the piece? Where's the tension? >>Yeah, so I think one thing that has been happening over the past couple of cub cons and I expect to continue and, and that is the, the word on the street is Kubernetes is getting boring, right? Which is good, right? >>Boring means simple. >>Well, >>Well maybe, >>Yeah, >>Invisible, >>No drama, right? So, so the, the rate of change of the Kubernetes features and, and all that has slowed, but in, in a, in a positive way. But there's still a general sentiment and feeling that there's just too much stuff. If you look at a stack necessary for hosting applications based on Kubernetes, there are just still too many moving parts, too many components, right? Too much complexity. I go, I keep going back to the complexity problem. So I expect Cube Con and all the vendors and the players and the startups and the people there to continue to focus on that complexity problem and introduce further simplifications to, to the stack. >>Yeah. Vic, you've had an storied career, VMware over decades with them, obviously in 12 years with 14 years or something like that. Big number co-founder here at Platform now you's been around for a while at this game. We, man, we talked about OpenStack, that project you, we interviewed at one of their events. So OpenStack was the beginning of that, this new revolution. I remember the early days it was, it wasn't supposed to be an alternative to Amazon, but it was a way to do more cloud cloud native. I think we had a cloud a Rod team at that time. We would joke we, you know, about, about the dream. It's happening now, now at Platform nine. You guys have been doing this for a while. What's the, what are you most excited about as the chief architect? What did you guys double down on? What did you guys pivot from or two, did you do any pivots? Did you extend out certain areas? Cuz you guys are in a good position right now, a lot of DNA in Cloud native. What are you most excited about and what does Platform Nine bring to the table for customers and for people in the industry watching this? >>Yeah, so I think our mission really hasn't changed over the years, right? It's been always about taking complex open source software because open source software, it's powerful. It solves new problems, you know, every year and you have new things coming out all the time, right? Open Stack was an example where the Kubernetes took the world by storm. But there's always that complexity of, you know, just configuring it, deploying it, running it, operating it. And our mission has always been that we will take all that complexity and just make it, you know, easy for users to consume regardless of the technology, right? So the successor to Kubernetes, you know, I don't have a crystal ball, but you know, you have some indications that people are coming up of new and simpler ways of running applications. There are many projects around there who knows what's coming next year or the year after that. But platform will, a, platform nine will be there and we will, you know, take the innovations from the, the, the community. We will contribute our own innovations and make all of those things very consumable to customers. >>Simpler, faster, cheaper. Exactly. Always a good business model technically to make that happen. Yes. Yeah. I think the, the reigning in the chaos is key, you know, Now we have now visibility into the scale. Final question before we depart Yeah. On this segment, what is at scale, how many clusters do you see that would be a, a watermark for an at scale conversation around an enterprise? Is it workloads we're looking at or, or clusters? How would you Yeah, I would you describe that when people try to squint through and evaluate what's a scale, what's the at scale kind of threshold? >>Yeah. And, and the number of clusters doesn't tell the whole story because clusters can be small in terms of the number of nodes or they can be large. But roughly speaking when we say, you know, large scale cluster deployments, we're talking about maybe hundreds, two thousands. Yeah. >>And final final question, what's the role of the hyperscalers? You got AWS continuing to do well, but they got their core ias, they got a PAs, they're not too too much putting a SaaS out there. They have some SaaS apps, but mostly it's the ecosystem. They have marketplaces doing, doing over $2 billion billions of transactions a year. And, and it's just like, just sitting there. It hasn't really, they're now innovating on it, but that's gonna change ecosystems. What's the role the cloud play in the cloud Native at scale? >>The the hyper square? >>Yeah. Yeah. Abras, Azure, Google, >>You mean from a business perspective, they're, they have their own interests that, you know, that they're, they will keep catering to, They, they will continue to find ways to lock their users into their ecosystem of services and, and APIs. So I don't think that's gonna change, right? They're just gonna keep Well, >>They got great I performance, I mean from a, from a hardware standpoint, yes. That's gonna be key, right? >>Yes. I think the, the move from X 86 being the dominant way and platform to run workloads is changing, right? That, that, that, that, and I think the, the hyperscalers really want to be in the game in terms of, you know, the, the new risk and arm ecosystems and the >>Platforms. Yeah. Not joking aside, Paul Morritz, when he was the CEO of VMware, when he took over once said, I remember our first year doing the cube. Oh, the cloud is one big distributed computer. It's, it's hardware and you got software and you got middleware. And he kinda over, well he kind of tongue in cheek, but really you're talking about large compute and sets of services that is essentially a distributed computer. Yes, >>Exactly. >>It's, we're back in the same game. Thank you for coming on the segment. Appreciate your time. This is cloud native at scale special presentation with Platform nine. Really unpacking super cloud Arlon open source and how to run large scale applications on the cloud, Cloud native develop for developers. And John Feer with the cube. Thanks for Washington. We'll stay tuned for another great segment coming right up.

>>Everyone, welcome to the cube here in Palo Alto, California for a special presentation on Cloud native at scale, enabling super cloud modern applications with Platform nine. I'm John Furry, your host of The Cube. We've got a great lineup of three interviews we're streaming today. Mattor Makki, who's the co-founder and VP of Product of Platform nine. She's gonna go into detail around Arlon, the open source products, and also the value of what this means for infrastructure as code and for cloud native at scale. Bickley the chief architect of Platform nine Cube alumni. Going back to the OpenStack days. He's gonna go into why Arlon, why this infrastructure as code implication, what it means for customers and the implications in the open source community and where that value is. Really great wide ranging conversation there. And of course, Vascar, Gort, the CEO of Platform nine, is gonna talk with me about his views on Super Cloud and why Platform nine has a scalable solutions to bring cloud native at scale. So enjoy the program, see you soon. Hello and welcome to the cube here in Palo Alto, California for a special program on cloud native at scale, enabling next generation cloud or super cloud for modern application cloud native developers. I'm John Forry, host of the Cube. Pleasure to have here me Makowski, co-founder and VP of product at Platform nine. Thanks for coming in today for this Cloudnative at scale conversation. >>Thank you for having >>Me. So Cloudnative at scale, something that we're talking about because we're seeing the, the next level of mainstream success of containers Kubernetes and cloud native develop, basically DevOps in the C I C D pipeline. It's changing the landscape of infrastructure as code, it's accelerating the value proposition and the super cloud as we call it, has been getting a lot of traction because this next generation cloud is looking a lot different, but kind of the same as the first generation. What's your view on Super cloud as it fits to cloud native as scales up? >>Yeah, you know, I think what's interesting, and I think the reason why Super Cloud is a really good and a really fit term for this, and I think, I know my CEO was chatting with you as well, and he was mentioning this as well, but I think there needs to be a different term than just multi-cloud or cloud. And the reason is because as cloud native and cloud deployments have scaled, I think we've reached a point now where instead of having the traditional data center style model, where you have a few large distributors of infrastructure and workload at a few locations, I think the model is kind of flipped around, right? Where you have a large number of micro sites. These micro sites could be your public cloud deployment, your private on-prem infrastructure deployments, or it could be your edge environment, right? And every single enterprise, every single industry is moving in that direction. And so you gotta rougher that with a terminology that, that, that indicates the scale and complexity of it. And so I think super cloud is a, is an appropriate term for >>That. So you brought a couple things I want to dig into. You mentioned Edge Notes. We're seeing not only edge nodes being the next kind of area of innovation, mainly because it's just popping up everywhere. And that's just the beginning. Wouldn't even know what's around the corner. You got buildings, you got iot, o ot, and it kind of coming together, but you also got this idea of regions, global infrastructures, big part of it. I just saw some news around cloud flare shutting down a site here, there's policies being made at scale. These new challenges there. Can you share because you can have edge. So hybrid cloud is a winning formula. Everybody knows that it's a steady state. Yeah. But across multiple clouds brings in this new un engineered area, yet it hasn't been done yet. Spanning clouds. People say they're doing it, but you start to see the toe in the water, it's happening, it's gonna happen. It's only gonna get accelerated with the edge and beyond globally. So I have to ask you, what is the technical challenges in doing this? Because it's something business consequences as well, but there are technical challenge. Can you share your view on what the technical challenges are for the super cloud across multiple edges and >>Regions? Yeah, absolutely. So I think, you know, in in the context of this, the, this, this term of super cloud, I think it's sometimes easier to visualize things in terms of two access, right? I think on one end you can think of the scale in terms of just pure number of nodes that you have, deploy number of clusters in the Kubernetes space. And then on the other access you would have your distribution factor, right? Which is, do you have these tens of thousands of nodes in one site or do you have them distributed across tens of thousands of sites with one node at each site? Right? And if you have just one flavor of this, there is enough complexity, but potentially manageable. But when you are expanding on both these access, you really get to a point where that skill really needs some well thought out, well-structured solutions to address it, right? A combination of homegrown tooling along with your, you know, favorite distribution of Kubernetes is not a strategy that can help you in this environment. It may help you when you have one of this or when you, when you scale, is not at the level. >>Can you scope the complexity? Because I mean, I hear a lot of moving parts going on there, the technology's also getting better. We we're seeing cloud native become successful. There's a lot to configure, there's a lot to install. Can you scope the scale of the problem? Because we're talking about at scale Yep. Challenges here. >>Yeah, absolutely. And I think, you know, I I like to call it, you know, the, the, the problem that the scale creates, you know, there's various problems, but I think one, one problem, one way to think about it is, is, you know, it works on my cluster problem, right? So, you know, I come from engineering background and there's a, you know, there's a famous saying between engineers and QA and the support folks, right? Which is, it works on my laptop, which is I tested this change, everything was fantastic, it worked flawlessly on my machine, on production, It's not working. The exact same problem now happens and these distributed environments, but at massive scale, right? Which is that, you know, developers test their applications, et cetera within the sanctity of their sandbox environments. But once you expose that change in the wild world of your production deployment, right? >>And the production deployment could be going at the radio cell tower at the edge location where a cluster is running there, or it could be sending, you know, these applications and having them run at my customer's site where they might not have configured that cluster exactly the same way as I configured it, or they configured the cluster, right? But maybe they didn't deploy the security policies or they didn't deploy the other infrastructure plugins that my app relies on all of these various factors at their own layer of complexity. And there really isn't a simple way to solve that today. And that is just, you know, one example of an issue that happens. I think another, you know, whole new ball game of issues come in the context of security, right? Because when you are deploying applications at scale in a distributed manner, you gotta make sure someone's job is on the line to ensure that the right security policies are enforced regardless of that scale factor. So I think that's another example of problems that occur. >>Okay. So I have to ask about scale because there are a lot of multiple steps involved when you see the success cloud native, you know, you see some, you know, some experimentation. They set up a cluster, say it's containers and Kubernetes, and then you say, Okay, we got this, we can configure it. And then they do it again and again, they call it day two. Some people call it day one, day two operation, whatever you call it. Once you get past the first initial thing, then you gotta scale it. Then you're seeing security breaches, you're seeing configuration errors. This seems to be where the hotpot is. And when companies transition from, I got this to, Oh no, it's harder than I thought at scale. Can you share your reaction to that and how you see this playing out? >>Yeah, so, you know, I think it's interesting. There's multiple problems that occur when, you know, the, the two factors of scale is we talked about start expanding. I think one of them is what I like to call the, you know, it, it works fine on my cluster problem, which is back in, when I was a developer, we used to call this, it works on my laptop problem, which is, you know, you have your perfectly written code that is operating just fine on your machine, your sandbox environment. But the moment it runs production, it comes back with p zeros and POS from support teams, et cetera. And those issues can be really difficult to try us, right? And so in the Kubernetes environment, this problem kind of multi folds, it goes, you know, escalates to a higher degree because yeah, you have your sandbox developer environments, they have their clusters and things work perfectly fine in those clusters because these clusters are typically handcrafted or a combination of some scripting and handcrafting. >>And so as you give that change to then run at your production edge location, like say you radio sell tower site, or you hand it over to a customer to run it on their cluster, they might not have not have configured that cluster exactly how you did it, or they might not have configured some of the infrastructure plugins. And so the things don't work. And when things don't work, triaging them becomes like ishly hard, right? It's just one of the examples of the problem. Another whole bucket of issues is security, which is, is you have these distributed clusters at scale, you gotta ensure someone's job is on the line to make sure that these security policies are configured properly. >>So this is a huge problem. I love that comment. That's not not happening on my system. It's the classic, you know, debugging mentality. Yeah. But at scale it's hard to do that with error prone. I can see that being a problem. And you guys have a solution you're launching, Can you share what our lawn is, this new product, What is it all about? Talk about this new introduction. >>Yeah, absolutely. I'm very, very excited. You know, it's one of the projects that we've been working on for some time now because we are very passionate about this problem and just solving problems at scale in on-prem or at in the cloud or at edge environments. And what arwan is, it's an open source project and it is a tool, it's a Kubernetes native tool for complete end to end management of not just your clusters, but your clusters. All of the infrastructure that goes within and along the sites of those clusters, security policies, your middleware plugins, and finally your applications. So what alarm lets you do in a nutshell is in a declarative way, it lets you handle the configuration and management of all of these components in at scale. >>So what's the elevator pitch simply put for what this solves in, in terms of the chaos you guys are reigning in. What's the, what's the bumper sticker? Yeah, >>What would it do? There's a perfect analogy that I love to reference in this context, which is think of your assembly line, you know, in a traditional, let's say, you know, an auto manufacturing factory or et cetera, and the level of efficiency at scale that that assembly line brings, right online. And if you look at the logo we've designed, it's this funny little robot. And it's because when we think of online, we, we think of these enterprise large scale environments, you know, sprawling at scale creating chaos because there isn't necessarily a well thought through, well structured solution that's similar to an assembly line, which is taking each components, you know, addressing them, manufacturing, processing them in a standardized way, then handing to the next stage. But again, it gets, you know, processed in a standardized way. And that's what Arlon really does. That's like the I pitch. If you have problems of scale of managing your infrastructure, you know, that is distributed. Arlon brings the assembly line level of efficiency and consistency >>For those. So keeping it smooth, the assembly on things are flowing. C C I CD pipelining. Exactly. So that's what you're trying to simplify that ops piece for the developer. I mean, it's not really ops, it's their ops, it's coding. >>Yeah. Not just developer, the ops, the operations folks as well, right? Because developers, you know, there is, the developers are responsible for one picture of that layer, which is my apps, and then maybe that middleware of application that they interface with, but then they hand it over to someone else who's then responsible to ensure that these apps are secure properly, that they are logging, logs are being collected properly, monitoring and observability integrated. And so it solves problems for both those >>Teams. Yeah. It's DevOps. So the DevOps is the cloud native developer. The OP teams have to kind of set policies. Is that where the declarative piece comes in? Is that why that's important? >>Absolutely. Yeah. And, and, and, and you know, Kubernetes really in introduced or elevated this declarative management, right? Because, you know, c communities clusters are Yeah. Or your, yeah, you know, specifications of components that go in Kubernetes are defined in a declarative way. And Kubernetes always keeps that state consistent with your defined state. But when you go outside of that world of a single cluster, and when you actually talk about defining the clusters or defining everything that's around it, there really isn't a solution that does that today. And so online addresses that problem at the heart of it, and it does that using existing open source well known solutions. >>Ed, do I wanna get into the benefits? What's in it for me as the customer developer? But I want to finish this out real quick and get your thoughts. You mentioned open source. Why open source? What's the, what's the current state of the product? You run the product group over at platform nine, is it open source? And you guys have a product that's commercial? Can you explain the open source dynamic? And first of all, why open source? Yeah. And what is the consumption? I mean, open source is great, People want open source, they can download it, look up the code, but maybe wanna buy the commercial. So I'm assuming you have that thought through, can you share open source and commercial relationship? >>Yeah, I think, you know, starting with why open source? I think it's, you know, we as a company, we have, you know, one of the things that's absolutely critical to us is that we take mainstream open source technologies components and then we, you know, make them available to our customers at scale through either a SaaS model on from model, right? But, so as we are a company or startup or a company that benefits, you know, in a massive way by this open source economy, it's only right, I think in my mind that we do our part of the duty, right? And contribute back to the community that feeds us. And so, you know, we have always held that strongly as one of our principles. And we have, you know, created and built independent products starting all the way with fi, which was a serverless product, you know, that we had built to various other, you know, examples that I can give. But that's one of the main reasons why opensource and also opensource because we want the community to really firsthand engage with us on this problem, which is very difficult to achieve if your product is behind a wall, you know, behind, behind a block box. >>Well, and that's, that's what the developers want too. I mean, what we're seeing in reporting with Super Cloud is the new model of consumption is I wanna look at the code and see what's in there. That's right. And then also, if I want to use it, I, I'll do it. Great. That's open source, that's the value. But then at the end of the day, if I wanna move fast, that's when people buy in. So it's a new kind of freemium, I guess, business model. I guess that's the way that, Well, but that's, that's the benefit. Open source. This is why standards and open source is growing so fast. You have that confluence of, you know, a way for helpers to try before they buy, but also actually kind of date the application, if you will. We, you know, Adrian Karo uses the dating me metaphor, you know, Hey, you know, I wanna check it out first before I get married. Right? And that's what open source, So this is the new, this is how people are selling. This is not just open source, this is how companies are selling. >>Absolutely. Yeah. Yeah. You know, I think, and you know, two things. I think one is just, you know, this, this, this cloud native space is so vast that if you, if you're building a close flow solution, sometimes there's also a risk that it may not apply to every single enterprises use cases. And so having it open source gives them an opportunity to extend it, expand it, to make it proper to their use case if they choose to do so, right? But at the same time, what's also critical to us is we are able to provide a supported version of it with an SLA that we, you know, that's backed by us, a SAS hosted version of it as well, for those customers who choose to go that route, you know, once they have used the open source version and loved it and want to take it at scale and in production and need, need, need a partner to collaborate with, who can, you know, support them for that production >>Environment. I have to ask you now, let's get into what's in it for the customer. I'm a customer, why should I be enthused about Arlo? What's in it for me? You know? Cause if I'm not enthused about it, I'm not gonna be confident and it's gonna be hard for me to get behind this. Can you share your enthusiastic view of, you know, why I should be enthused about Arlo customer? >>Yeah, absolutely. And so, and there's multiple, you know, enterprises that we talk to, many of them, you know, our customers, where this is a very kind of typical story that you hear, which is we have, you know, a Kubernetes distribution. It could be on premise, it could be public clouds, native es, and then we have our C I CD pipelines that are automating the deployment of applications, et cetera. And then there's this gray zone. And the gray zone is well before you can you, your CS CD pipelines can deploy the apps. Somebody needs to do all of their groundwork of, you know, defining those clusters and yeah. You know, properly configuring them. And as these things, these things start by being done hand grown. And then as the, as you scale, what typically enterprises would do today is they will have their home homegrown DIY solutions for this. >>I mean, the number of folks that I talk to that have built Terra from automation, and then, you know, some of those key developers leave. So it's a typical open source or typical, you know, DIY challenge. And the reason that they're writing it themselves is not because they want to. I mean, of course technology is always interesting to everybody, but it's because they can't find a solution that's out there that perfectly fits the problem. And so that's that pitch. I think Spico would be delighted. The folks that we've talked, you know, spoken with, have been absolutely excited and have, you know, shared that this is a major challenge we have today because we have, you know, few hundreds of clusters on s Amazon and we wanna scale them to few thousands, but we don't think we are ready to do that. And this will give us >>Stability. Yeah, I think people are scared, not sc I won't say scare, that's a bad word. Maybe I should say that they feel nervous because, you know, at scale small mistakes can become large mistakes. This is something that is concerning to enterprises. And, and I think this is gonna come up at co con this year where enterprises are gonna say, Okay, I need to see SLAs. I wanna see track record, I wanna see other companies that have used it. Yeah. How would you answer that question to, or, or challenge, you know, Hey, I love this, but is there any guarantees? Is there any, what's the SLAs? I'm an enterprise, I got tight, you know, I love the open source trying to free fast and loose, but I need hardened code. >>Yeah, absolutely. So, so two parts to that, right? One is Arlan leverages existing open source components, products that are extremely popular. Two specifically. One is Lon uses Argo cd, which is probably one of the highest rated and used CD open source tools that's out there, right? It's created by folks that are as part of Intuit team now, you know, really brilliant team. And it's used at scale across enterprises. That's one. Second is arlon also makes use of cluster api capi, which is a ES sub-component, right? For lifecycle management of clusters. So there is enough of, you know, community users, et cetera, around these two products, right? Or, or, or open source projects that will find Arlan to be right up in their alley because they're already comfortable, familiar with algo cd. Now Arlan just extends the scope of what Algo CD can do. And so that's one. And then the second part is going back to a point of the comfort. And that's where, you know, Platform nine has a role to play, which is when you are ready to deploy Alon at scale, because you've been, you know, playing with it in your DEF test environments, you're happy with what you get with it, then Platform nine will stand behind it and provide that sla. >>And what's been the reaction from customers you've talked to Platform nine customers with, with, that are familiar with, with Argo and then Arlo? What's been some of the feedback? >>Yeah, I, I, I think the feedback's been fantastic. I mean, I can give you examples of customers where, you know, initially, you know, when you are, when you're telling them about your entire portfolio of solutions, it might not strike a card right away. But then we start talking about Arlan and, and we talk about the fact that it uses Argo CD and they start opening up, they say, We have standardized on Argo and we have built these components, homegrown, we would be very interested. Can we co-develop? Does it support these use cases? So we've had that kind of validation. We've had validation all the way at the beginning of our line before we even wrote a single line of code saying this is something we plan on doing. And the customer said, If you had it today, I would've purchased it. So it's been really great validation. >>All right. So next question is, what is the solution to the customer? If I asked you, Look it, I have, I'm so busy, my team's overworked. I got a skills gap. I don't need another project that's, I'm so tied up right now and I'm just chasing my tail. How does Platform nine help me? >>Yeah, absolutely. So I think, you know, one of the core tenets of Platform nine has always been that we try to bring that public cloud like simplicity by hosting, you know, this in a lot of such similar tools in a SaaS hosted manner for our customers, right? So our goal behind doing that is taking away or trying to take away all of that complexity from customer's hands and offloading it to our hands, right? And giving them that full white glove treatment as we call it. And so from a customer's perspective, one, something like arlon will integrate with what they have so they don't have to rip and replace anything. In fact, it will, even in the next versions, it may even discover your clusters that you have today and, you know, give you an inventory and that, >>So customers have clusters that are growing, that's a sign correct call you guys. >>Absolutely. Either they're, they have massive large clusters, right? That they wanna split into smaller clusters, but they're not comfortable doing that today, or they've done that already on say, public cloud or otherwise. And now they have management challenges. So >>Especially operationalizing the clusters, whether they want to kind of reset everything and remove things around and reconfigure Yeah. And or scale out. >>That's right. Exactly. >>And you provide that layer of policy. >>Absolutely. >>Yes. That's the key value >>Here. That's right. >>So policy based configuration for cluster scale up >>Profile and policy based declarative configuration and life cycle management for clusters. >>If I asked you how this enables Super club, what would you say to that? >>I think this is one of the key ingredients to super cloud, right? If you think about a super cloud environment, there's at least few key ingredients that that come to my mind that are really critical. Like they are, you know, life saving ingredients at that scale. One is having a really good strategy for managing that scale, you know, in a, going back to assembly line in a very consistent, predictable way so that our lot solves then you, you need to compliment that with the right kind of observability and monitoring tools at scale, right? Because ultimately issues are gonna happen and you're gonna have to figure out, you know, how to solve them fast. And alon by the way, also helps in that direction, but you also need observability tools. And then especially if you're running it on the public cloud, you need some cost management tools. In my mind, these three things are like the most necessary ingredients to make Super Cloud successful. And, you know, alarm flows >>In one. Okay, so now the next level is, Okay, that makes sense. There's under the covers kind of speak under the hood. Yeah. How does that impact the app developers and the cloud native modern application workflows? Because the impact to me, seems the apps are gonna be impacted. Are they gonna be faster, stronger? I mean, what's the impact if you do all those things, as you mentioned, what's the impact of the apps? >>Yeah, the impact is that your apps are more likely to operate in production the way you expect them to, because the right checks and balances have gone through, and any discrepancies have been identified prior to those apps, prior to your customer running into them, right? Because developers run into this challenge to their, where there's a split responsibility, right? I'm responsible for my code, I'm responsible for some of these other plugins, but I don't own the stack end to end. I have to rely on my ops counterpart to do their part, right? And so this really gives them, you know, the right tooling for >>That. So this is actually a great kind of relevant point, you know, as cloud becomes more scalable, you're starting to see this fragmentation gone of the days of the full stack developer to the more specialized role. But this is a key point, and I have to ask you because if this Arlo solution takes place, as you say, and the apps are gonna be stupid, there's designed to do, the question is, what did, does the current pain look like of the apps breaking? What does the signals to the customer Yeah. That they should be calling you guys up into implementing Arlo, Argo, and, and, and on all the other goodness to automate, What are some of the signals? Is it downtime? Is it, is it failed apps, Is it latency? What are some of the things that Yeah, absolutely would be in indications of things are effed up a little bit. >>Yeah. More frequent down times, down times that are, that take longer to triage. And so you are, you know, the, you know, your mean times on resolution, et cetera, are escalating or growing larger, right? Like we have environments of customers where they, they have a number of folks on in the field that have to take these apps and run them at customer sites. And that's one of our partners. And they're extremely interested in this because the, the rate of failures they're encountering for this, you know, the field when they're running these apps on site, because the field is automating their clusters that are running on sites using their own script. So these are the kinds of challenges, and those are the pain points, which is, you know, if you're looking to reduce your, your meantime to resolution, if you're looking to reduce the number of failures that occur on your production site, that's one. And second, if you are looking to manage these at scale environments with a relatively small, focused, nimble ops team, which has an immediate impact on your, So those are, those are the >>Signals. This is the cloud native at scale situation, the innovation going on. Final thought is your reaction to the idea that if the world goes digital, which it is, and the confluence of physical and digital coming together, and cloud continues to do its thing, the company becomes the application, not where it used to be supporting the business, you know, the back office and the IIA terminals and some PCs and handhelds. Now if technology's running, the business is the business. Yeah. The company's the application. Yeah. So it can't be down. So there's a lot of pressure on, on CSOs and CIOs now and see, and boards is saying, how is technology driving the top line revenue? That's the number one conversation. Yeah. Do you see that same thing? >>Yeah. It's interesting. I think there's multiple pressures at the CXO CIO level, right? One is that there needs to be that visibility and clarity and guarantee almost that, you know, that the, the technology that's, you know, that's gonna drive your top line is gonna drive that in a consistent, reliable, predictable manner. And then second, there is the constant pressure to do that while always lowering your costs of doing it, right? Especially when you're talking about, let's say retailers or those kinds of large scale vendors, they many times make money by lowering the amount that they spend on, you know, providing those goods to their end customers. So I think those, both those factors kind of come into play and the solution to all of them is usually in a very structured strategy around automation. >>Final question. What does cloudnative at scale look like to you? If all the things happen the way we want 'em to happen, The magic wand, the magic dust, what does it look like? >>What that looks like to me is a CIO sipping at his desk on coffee production is running absolutely smooth. And his, he's running that at a nimble, nimble team size of at the most, a handful of folks that are just looking after things with things. So just >>Taking care of, and the CIO doesn't exist. There's no CSO there at the beach. >>Yeah. >>Thank you for coming on, sharing the cloud native at scale here on the cube. Thank you for your time. >>Fantastic. Thanks for having >>Me. Okay. I'm John Fur here for special program presentation, special programming cloud native at scale, enabling super cloud modern applications with Platform nine. Thanks for watching. Welcome back everyone to the special presentation of cloud native at scale, the cube and platform nine special presentation going in and digging into the next generation super cloud infrastructure as code and the future of application development. We're here at Bickley, who's the chief architect and co-founder of Platform nine b. Great to see you Cube alumni. We, we met at an OpenStack event in about eight years ago, or well later, earlier when opens Stack was going. Great to see you and great to see congratulations on the success of platform nine. >>Thank you very much. >>Yeah. You guys have been at this for a while and this is really the, the, the year we're seeing the, the crossover of Kubernetes because of what happens with containers. Everyone now was realized, and you've seen what Docker's doing with the new docker, the open source Docker now just a success Exactly. Of containerization, right? And now the Kubernetes layer that we've been working on for years is coming, bearing fruit. This is huge. >>Exactly. Yes. >>And so as infrastructure's code comes in, we talked to Bacar talking about Super Cloud, I met her about, you know, the new Arlon, our R lawn you guys just launched, the infrastructure's code is going to another level. And then it's always been DevOps infrastructure is code. That's been the ethos that's been like from day one, developers just code. Then you saw the rise of serverless and you see now multi-cloud or on the horizon, connect the dots for us. What is the state of infrastructures code today? >>So I think, I think I'm, I'm glad you mentioned it, everybody or most people know about infrastructures code. But with Kubernetes, I think that project has evolved at the concept even further. And these dates, it's infrastructure as configuration, right? So, which is an evolution of infrastructure as code. So instead of telling the system, here's how I want my infrastructure by telling it, you know, do step A, B, C, and D instead with Kubernetes, you can describe your desired state declaratively using things called manifest resources. And then the system kind of magically figures it out and tries to converge the state towards the one that you specify. So I think it's, it's a even better version of infrastructures code. >>Yeah, yeah. And, and that really means it's developer just accessing resources. Okay. Not declaring, Okay, give me some compute, stand me up some, turn the lights on, turn 'em off, turn 'em on. That's kind of where we see this going. And I like the configuration piece. Some people say composability, I mean now with open source, so popular, you don't have to have to write a lot of code. It's code being developed. And so it's into integration, it's configuration. These are areas that we're starting to see computer science principles around automation, machine learning, assisting open source. Cuz you got a lot of code that's right in hearing software, supply chain issues. So infrastructure as code has to factor in these new, new dynamics. Can you share your opinion on these new dynamics of, as open source grows, the glue layers, the configurations, the integration, what are the core issues? >>I think one of the major core issues is with all that power comes complexity, right? So, you know, despite its expressive power systems like Kubernetes and declarative APIs let you express a lot of complicated and complex stacks, right? But you're dealing with hundreds if not thousands of these yamo files or resources. And so I think, you know, the emergence of systems and layers to help you manage that complexity is becoming a key challenge and opportunity in, in this space that, >>That's, I wrote a LinkedIn post today was comments about, you know, hey, enterprise is the new breed, the trend of SaaS companies moving our consumer comp consumer-like thinking into the enterprise has been happening for a long time, but now more than ever, you're seeing it the old way used to be solve complexity with more complexity and then lock the customer in. Now with open source, it's speed, simplification and integration, right? These are the new dynamic power dynamics for developers. Yeah. So as companies are starting to now deploy and look at Kubernetes, what are the things that need to be in place? Because you have some, I won't say technical debt, but maybe some shortcuts, some scripts here that make it look like infrastructure is code. People have done some things to simulate or or make infrastructure as code happen. Yes. But to do it at scale Yes. Is harder. What's your take on this? What's your >>View? It's hard because there's a per proliferation of methods, tools, technologies. So for example, today it's very common for DevOps and platform engineering tools, I mean, sorry, teams to have to deploy a large number of Kubernetes clusters, but then apply the applications and configurations on top of those clusters. And they're using a wide range of tools to do this, right? For example, maybe Ansible or Terraform or bash scripts to bring up the infrastructure and then the clusters. And then they may use a different set of tools such as Argo CD or other tools to apply configurations and applications on top of the clusters. So you have this sprawl of tools. You, you also have this sprawl of configurations and files because the more objects you're dealing with, the more resources you have to manage. And there's a risk of drift that people call that where, you know, you think you have things under control, but some people from various teams will make changes here and there and then before the end of the day systems break and you have no idea of tracking them. So I think there's real need to kind of unify, simplify, and try to solve these problems using a smaller, more unified set of tools and methodologies. And that's something that we try to do with this new project. Arlon. >>Yeah. So, so we're gonna get into Arlan in a second. I wanna get into the why Arlon. You guys announced that at our GoCon, which was put on here in Silicon Valley at the, at the by intu. They had their own little day over there at their headquarters. But before we get there, Vascar, your CEO came on and he talked about Super Cloud at our inaugural event. What's your definition of super cloud? If you had to kind of explain that to someone at a cocktail party or someone in the industry technical, how would you look at the super cloud trend that's emerging? It's become a thing. What's your, what would be your contribution to that definition or the narrative? >>Well, it's, it's, it's funny because I've actually heard of the term for the first time today, speaking to you earlier today. But I think based on what you said, I I already get kind of some of the, the gist and the, the main concepts. It seems like super cloud, the way I interpret that is, you know, clouds and infrastructure, programmable infrastructure, all of those things are becoming commodity in a way. And everyone's got their own flavor, but there's a real opportunity for people to solve real business problems by perhaps trying to abstract away, you know, all of those various implementations and then building better abstractions that are perhaps business or application specific to help companies and businesses solve real business problems. >>Yeah, I remember that's a great, great definition. I remember, not to date myself, but back in the old days, you know, IBM had a proprietary network operating system, so to deck for the mini computer vendors, deck net and SNA respectively. But T C P I P came out of the osi, the open systems interconnect and remember, ethernet beat token ring out. So not to get all nerdy for all the young kids out there, look, just look up token ring, you'll see, you've probably never heard of it. It's IBM's, you know, connection for the internet at the, the layer too is Amazon, the ethernet, right? So if T C P I P could be the Kubernetes and the container abstraction that made the industry completely change at that point in history. So at every major inflection point where there's been serious industry change and wealth creation and business value, there's been an abstraction Yes. Somewhere. Yes. What's your reaction to that? >>I think this is, I think a saying that's been heard many times in this industry and, and I forgot who originated it, but I think the saying goes like, there's no problem that can't be solved with another layer of indirection, right? And we've seen this over and over and over again where Amazon and its peers have inserted this layer that has simplified, you know, computing and, and infrastructure management. And I believe this trend is going to continue, right? The next set of problems are going to be solved with these insertions of additional abstraction layers. I think that that's really a, yeah, it's gonna continue. >>It's interesting. I just really wrote another post today on LinkedIn called the Silicon Wars AMD Stock is down arm has been on rise, we've remember pointing for many years now, that arm's gonna be hugely, it has become true. If you look at the success of the infrastructure as a service layer across the clouds, Azure, aws, Amazon's clearly way ahead of everybody. The stuff that they're doing with the silicon and the physics and the, the atoms, the pro, you know, this is where the innovation, they're going so deep and so strong at ISAs, the more that they get that gets come on, they have more performance. So if you're an app developer, wouldn't you want the best performance and you'd wanna have the best abstraction layer that gives you the most ability to do infrastructures, code or infrastructure for configuration, for provisioning, for managing services. And you're seeing that today with service MeSHs, a lot of action going on in the service mesh area in, in this community of co con, which will be a covering. So that brings up the whole what's next? You guys just announced our lawn at ar GoCon, which came out of Intuit. We've had Maria Teel at our super cloud event, She's a cto, you know, they're all in the cloud. So they contributed that project. Where did Arlon come from? What was the origination? What's the purpose? Why our lawn, why this announcement? Yeah, >>So the, the inception of the project, this was the result of us realizing that problem that we spoke about earlier, which is complexity, right? With all of this, these clouds, these infrastructure, all the variations around and you know, compute storage networks and the proliferation of tools we talked about the Ansibles and Terraforms and Kubernetes itself, you can think of that as another tool, right? We saw a need to solve that complexity problem, and especially for people and users who use Kubernetes at scale. So when you have, you know, hundreds of clusters, thousands of applications, thousands of users spread out over many, many locations, there, there needs to be a system that helps simplify that management, right? So that means fewer tools, more expressive ways of describing the state that you want and more consistency. And, and that's why, you know, we built AR lawn and we built it recognizing that many of these problems or sub problems have already been solved. So Arlon doesn't try to reinvent the wheel, it instead rests on the shoulders of several giants, right? So for example, Kubernetes is one building block, GI ops, and Argo CD is another one, which provides a very structured way of applying configuration. And then we have projects like cluster API and cross plane, which provide APIs for describing infrastructure. So arlon takes all of those building blocks and builds a thin layer, which gives users a very expressive way of defining configuration and desired state. So that's, that's kind of the inception of, And >>What's the benefit of that? What does that give the, what does that give the developer, the user, in this case, >>The developers, the, the platform engineer, team members, the DevOps engineers, they get a a ways to provision not just infrastructure and clusters, but also applications and configurations. They get a way, a system for provisioning, configuring, deploying, and doing life cycle management in a, in a much simpler way. Okay. Especially as I said, if you're dealing with a large number of applications. >>So it's like an operating fabric, if you will. Yes. For them. Okay, so let's get into what that means for up above and below the, the, this abstraction or thin layer below the infrastructure. We talked a lot about what's going on below that. Yeah. Above our workloads at the end of the day, and I talk to CXOs and IT folks that, that are now DevOps engineers. They care about the workloads and they want the infrastructure's code to work. They wanna spend their time getting in the weeds, figuring out what happened when someone made a push that that happened or something happened. They need observability and they need to, to know that it's working. That's right. And here's my workloads running effectively. So how do you guys look at the workload side of it? Cuz now you have multiple workloads on these fabric, right? >>So workloads, so Kubernetes has defined kind of a standard way to describe workloads and you can, you know, tell Kubernetes, I want to run this container this particular way, or you can use other projects that are in the Kubernetes cloud native ecosystem, like K native, where you can express your application in more at a higher level, right? But what's also happening is in addition to the workloads, DevOps and platform engineering teams, they need to very often deploy the applications with the clusters themselves. Clusters are becoming this commodity. It's, it's becoming this host for the application and it kind of comes bundled with it. In many cases it is like an appliance, right? So DevOps teams have to provision clusters at a really incredible rate and they need to tear them down. Clusters are becoming more, >>It's coming like an EC two instance, spin up a cluster. We've heard people used words like that. That's >>Right. And before arlon you kind of had to do all of that using a different set of tools as, as I explained. So with AR loan you can kind of express everything together. You can say I want a cluster with a health monitoring stack and a logging stack and this ingress controller and I want these applications and these security policies. You can describe all of that using something we call the profile. And then you can stamp out your app, your applications and your clusters and manage them in a very, So >>It's essentially standard, like creates a mechanism. Exactly. Standardized, declarative kind of configurations. And it's like a playbook, just deploy it. Now what there is between say a script like I'm, I have scripts, I can just automate scripts >>Or yes, this is where that declarative API and infrastructure as configuration comes in, right? Because scripts, yes you can automate scripts, but the order in which they run matters, right? They can break, things can break in the middle and, and sometimes you need to debug them. Whereas the declarative way is much more expressive and powerful. You just tell the system what you want and then the system kind of figures it out. And there are these things are controllers which will in the background reconcile all the state to converge towards your desire. It's a much more powerful, expressive and reliable way of getting things done. >>So infrastructure as configuration is built kind of on, it's a super set of infrastructures code because it's >>An evolution. >>You need edge's code, but then you can configure the code by just saying do it. You basically declaring saying Go, go do that. That's right. Okay, so, alright, so cloud native at scale, take me through your vision of what that means. Someone says, Hey, what does cloud native at scale mean? What's success look like? How does it roll out in the future as you, not future next couple years. I mean people are now starting to figure out, okay, it's not as easy as it sounds. Kubernetes has value. We're gonna hear this year at CubeCon a lot of this, what does cloud native at scale >>Mean? Yeah, there are different interpretations, but if you ask me, when people think of scale, they think of a large number of deployments, right? Geographies, many, you know, supporting thousands or tens or millions of, of users there, there's that aspect to scale. There's also an equally important a aspect of scale, which is also something that we try to address with Arran. And that is just complexity for the people operating this or configuring this, right? So in order to describe that desired state, and in order to perform things like maybe upgrades or updates on a very large scale, you want the humans behind that to be able to express and direct the system to do that in, in relatively simple terms, right? And so we want the tools and the abstractions and the mechanisms available to the user to be as powerful but as simple as possible. So there's, I think there's gonna be a number and there have been a number of CNCF and cloud native projects that are trying to attack that complexity problem as well. And Arlon kind of falls in in that >>Category. Okay, so I'll put you on the spot rogue, that CubeCon coming up and now this'll be shipping this segment series out before. What do you expect to see at this year? It's the big story this year. What's the, what's the most important thing happening? Is it in the open source community and also within a lot of the, the people jockeying for leadership. I know there's a lot of projects and still there's some white space in the overall systems map about the different areas get run time and there's ability in all these different areas. What's the, where's the action? Where, where's the smoke? Where's the fire? Where's the piece? Where's the tension? >>Yeah, so I think one thing that has been happening over the past couple of coupon and I expect to continue and, and that is the, the word on the street is Kubernetes is getting boring, right? Which is good, right? >>Boring means simple. >>Well, well >>Maybe, >>Yeah, >>Invisible, >>No drama, right? So, so the, the rate of change of the Kubernetes features and, and all that has slowed but in, in a, in a positive way. But there's still a general sentiment and feeling that there's just too much stuff. If you look at a stack necessary for hosting applications based on Kubernetes, there are just still too many moving parts, too many components, right? Too much complexity. I go, I keep going back to the complexity problem. So I expect Cube Con and all the vendors and the players and the startups and the people there to continue to focus on that complexity problem and introduce further simplifications to, to the stack. >>Yeah. Vic, you've had an storied career VMware over decades with them within 12 years with 14 years or something like that. Big number co-founder here a platform. I you's been around for a while at this game, man. We talked about OpenStack, that project we interviewed at one of their events. So OpenStack was the beginning of that, this new revolution. I remember the early days it was, it wasn't supposed to be an alternative to Amazon, but it was a way to do more cloud cloud native. I think we had a Cloud Aati team at that time. We would joke we, you know, about, about the dream. It's happening now, now at Platform nine. You guys have been doing this for a while. What's the, what are you most excited about as the chief architect? What did you guys double down on? What did you guys pivot from or two, did you do any pivots? Did you extend out certain areas? Cuz you guys are in a good position right now, a lot of DNA in Cloud native. What are you most excited about and what does Platform Nine bring to the table for customers and for people in the industry watching this? >>Yeah, so I think our mission really hasn't changed over the years, right? It's been always about taking complex open source software because open source software, it's powerful. It solves new problems, you know, every year and you have new things coming out all the time, right? Opens Stack was an example and then Kubernetes took the world by storm. But there's always that complexity of, you know, just configuring it, deploying it, running it, operating it. And our mission has always been that we will take all that complexity and just make it, you know, easy for users to consume regardless of the technology, right? So the successor to Kubernetes, you know, I don't have a crystal ball, but you know, you have some indications that people are coming up of new and simpler ways of running applications. There are many projects around there who knows what's coming next year or the year after that. But platform will a, platform nine will be there and we will, you know, take the innovations from the the community. We will contribute our own innovations and make all of those things very consumable to customers. >>Simpler, faster, cheaper. Exactly. Always a good business model technically to make that happen. Yes. Yeah, I think the, the reigning in the chaos is key, you know, Now we have now visibility into the scale. Final question before we depart this segment. What is at scale, how many clusters do you see that would be a watermark for an at scale conversation around an enterprise? Is it workloads we're looking at or, or clusters? How would you, Yeah, how would you describe that? When people try to squint through and evaluate what's a scale, what's the at scale kind of threshold? >>Yeah. And, and the number of clusters doesn't tell the whole story because clusters can be small in terms of the number of nodes or they can be large. But roughly speaking when we say, you know, large scale cluster deployments, we're talking about maybe hundreds, two thousands. >>Yeah. And final final question, what's the role of the hyperscalers? You got AWS continuing to do well, but they got their core ias, they got a PAs, they're not too too much putting a SaaS out there. They have some SaaS apps, but mostly it's the ecosystem. They have marketplaces doing, doing over $2 billion billions of transactions a year and, and it's just like, just sitting there. It hasn't really, they're now innovating on it, but that's gonna change ecosystems. What's the role the cloud play in the cloud need of its scale? >>The, the hyper squares? >>Yeah, yeah. A's Azure Google, >>You mean from a business perspective, they're, they have their own interests that, you know, that they're, they will keep catering to, they, they will continue to find ways to lock their users into their ecosystem of services and, and APIs. So I don't think that's gonna change, right? They're just gonna keep well, >>They got great performance. I mean, from a, from a hardware standpoint, yes. That's gonna be key, >>Right? Yes. I think the, the move from X 86 being the dominant way and platform to run workloads is changing, right? That, that, that, that, and I think the, the hyper skaters really want to be in the game in terms of, you know, the, the new risk and arm ecosystems, the platforms. >>Yeah. Not joking aside, Paul Morritz, when he was the CEO of VMware, when he took over once said, I remember our first year doing the cube. Oh the cloud is one big distributed computer. It's, it's hardware and you got software and you got middleware and he kinda over, well he's kind of tongue in cheek, but really you're talking about large compute and sets of services that is essentially a distributed computer. Yes, >>Exactly. >>It's, we're back in the same game. Thank you for coming on the segment. Appreciate your time. This is cloud native at scale special presentation with Platform nine. Really unpacking super cloud Arlon open source and how to run large scale applications on the cloud, cloud native develop for developers. And John Furrier with the cube. Thanks for Washington. We'll stay tuned for another great segment coming right up. Hey, welcome back everyone to Super Cloud 22. I'm John Fur, host of the Cuba here all day talking about the future of cloud. Where's it all going? Making it super multi-cloud is around the corner and public cloud is winning. Got the private cloud on premise and Edge. Got a great guest here, Vascar Gorde, CEO of Platform nine, just on the panel on Kubernetes. An enabler blocker. Welcome back. Great to have you on. >>Good to see you >>Again. So Kubernetes is a blocker enabler by, with a question mark I put on on there. Panel was really to discuss the role of Kubernetes. Now great conversation operations is impacted. What's just thing about what you guys are doing at Platform nine? Is your role there as CEO and the company's position, kind of like the world spun into the direction of Platform nine while you're at the helm, right? >>Absolutely. In fact, things are moving very well and since they came to us, it was an insight to call ourselves the platform company eight years ago, right? So absolutely whether you are doing it in public clouds or private clouds, you know, the application world is moving very fast in trying to become digital and cloud native. There are many options for you to run the infrastructure. The biggest blocking factor now is having a unified platform. And that's what where we come into >>Patrick, we were talking before we came on stage here about your background and we were kind of talking about the glory days in 2000, 2001 when the first ASPs application service providers came out. Kind of a SaaS vibe, but that was kind of all kind of cloud-like >>It wasn't, >>And web services started then too. So you saw that whole growth. Now, fast forward 20 years later, 22 years later, where we are now, when you look back then to here and all the different cycles, >>In fact, you know, as we were talking offline, I was in one of those ASPs in the year 2000 where it was a novel concept of saying we are providing a software and a capability as a service, right? You sign up and start using it. I think a lot has changed since then. The tooling, the tools, the technology has really skyrocketed. The app development environment has really taken off exceptionally well. There are many, many choices of infrastructure now, right? So I think things are in a way the same but also extremely different. But more importantly now for any company, regardless of size, to be a digital native, to become a digital company is extremely mission critical. It's no longer a nice to have everybody's in the journey somewhere. >>Everyone is going digital transformation here. Even on a so-called downturn recession that's upcoming inflations sea year. It's interesting. This is the first downturn, the history of the world where the hyperscale clouds have been pumping on all cylinders as an economic input. And if you look at the tech trends, GDPs down, but not tech. Nope. Cause pandemic showed everyone digital transformation is here and more spend and more growth is coming even in, in tech. So this is a unique factor which proves that that digital transformation's happening and company, every company will need a super cloud. >>Everyone, every company, regardless of size, regardless of location, has to become modernize their infrastructure. And modernizing infrastructure is not just some, you know, new servers and new application tools. It's your approach, how you're serving your customers, how you're bringing agility in your organization. I think that is becoming a necessity for every enterprise to survive. >>I wanna get your thoughts on Super Cloud because one of the things Dave Alon and I want to do with Super Cloud and calling it that was we, I, I personally, and I know Dave as well, he can, I'll speak from, he can speak for himself. We didn't like multi-cloud. I mean not because Amazon said don't call things multi-cloud, it just didn't feel right. I mean everyone has multiple clouds by default. If you're running productivity software, you have Azure and Office 365. But it wasn't truly distributed. It wasn't truly decentralized, it wasn't truly cloud enabled. It didn't, it felt like they're not ready for a market yet. Yet public clouds booming on premise. Private cloud and Edge is much more on, you know, more, More dynamic, more unreal. >>Yeah. I think the reason why we think Super cloud is a better term than multi-cloud. Multi-cloud are more than one cloud, but they're disconnected. Okay, you have a productivity cloud, you have a Salesforce cloud, you may have, everyone has an internal cloud, right? So, but they're not connected. So you can say, okay, it's more than one cloud. So it's, you know, multi-cloud. But super cloud is where you are actually trying to look at this holistically. Whether it is on-prem, whether it is public, whether it's at the edge, it's a store at the branch. You are looking at this as one unit. And that's where we see the term super cloud is more applicable because what are the qualities that you require if you're in a super cloud, right? You need choice of infrastructure, you need, but at the same time you need a single pan or a single platform for you to build your innovations on, regardless of which cloud you're doing it on, right? So I think Super Cloud is actually a more tightly integrated orchestrated management philosophy we think. >>So let's get into some of the super cloud type trends that we've been reporting on. Again, the purpose of this event is as a pilot to get the conversations flowing with, with the influencers like yourselves who are running companies and building products and the builders, Amazon and Azure are doing extremely well. Google's coming up in third Cloudworks in public cloud. We see the use cases on premises use cases. Kubernetes has been an interesting phenomenon because it's become from the developer side a little bit, but a lot of ops people love Kubernetes. It's really more of an ops thing. You mentioned OpenStack earlier. Kubernetes kind of came out of that open stack. We need an orchestration. And then containers had a good shot with, with Docker. They re pivoted the company. Now they're all in an open source. So you got containers booming and Kubernetes as a new layer there. >>What's, >>What's the take on that? What does that really mean? Is that a new defacto enabler? It >>Is here. It's for here for sure. Every enterprise somewhere in the journey is going on. And you know, most companies are, 70 plus percent of them have 1, 2, 3 container based, Kubernetes based applications now being rolled out. So it's very much here. It is in production at scale by many customers. And it, the beauty of it is yes, open source, but the biggest gating factor is the skill set. And that's where we have a phenomenal engineering team, right? So it's, it's one thing to buy a tool and >>Just be clear, you're a managed service for Kubernetes. >>We provide, provide a software platform for cloud acceleration as a service and it can run anywhere. It can run in public private. We have customers who do it in truly multi-cloud environments. It runs on the edge, it runs at this in stores about thousands of stores in a retailer. So we provide that and also for specific segments where data sovereignty and data residency are key regulatory reasons. We also un on-prem as an air gap version. Can >>You give an example on how you guys are deploying your platform to enable a super cloud experience for your customer? Right. >>So I'll give you two different examples. One is a very large networking company, public networking company. They have hundreds of products, hundreds of r and d teams that are building different, different products. And if you look at few years back, each one was doing it on a different platforms, but they really needed to bring the agility. And they worked with us now over three years where we are their build test dev pro platform where all their products are built on, right? And it has dramatically increased their agility to release new products. Number two, it actually is a light out operation. In fact, the customer says like, like the Maytag service person, cuz we provide it as a service and it barely takes one or two people to maintain it for them. >>So it's kinda like an SRE vibe. One person managing a >>Large 4,000 engineers building infrastructure >>On their tools, >>Whatever they want on their tools. They're using whatever app development tools they use, but they use our platform. What >>Benefits are they seeing? Are they seeing speed? >>Speed, definitely. Okay. Definitely they're speeding. Speed uniformity because now they're building able to build, so their customers who are using product A and product B are seeing a similar set of tools that are being used. >>So a big problem that's coming outta this super cloud event that we're, we're seeing and we heard it all here, ops and security teams. Cause they're kind of part of one thing, but option security specifically need to catch up speed wise. Are you delivering that value to ops and security? Right? >>So we, we work with ops and security teams and infrastructure teams and we layer on top of that. We have like a platform team. If you think about it, depending on where you have data centers, where you have infrastructure, you have multiple teams, okay, but you need a unified platform. Who's your buyer? Our buyer is usually, you know, the product divisions of companies that are looking at or the CTO would be a buyer for us functionally cio definitely. So it it's, it's somewhere in the DevOps to infrastructure. But the ideal one we are beginning to see now many large corporations are really looking at it as a platform and saying we have a platform group on which any app can be developed and it is run on any infrastructure. So the platform engineering teams. So >>You working two sides to that coin. You've got the dev side and then >>And then infrastructure >>Side. >>Okay. Another customer that I give an example, which I would say is kind of the edge of the store. So they have thousands of stores. Retail, retail, you know food retailer, right? They have thousands of stores that are on the globe, 50,000, 60,000. And they really want to enhance the customer experience that happens when you either order the product or go into the store and pick up your product or buy or browse or sit there. They have applications that were written in the nineties and then they have very modern AIML applications today. They want something that will not have to send an IT person to install a rack in the store or they can't move everything to the cloud because the store operations has to be local. The menu changes based on it's classic edge. It's classic edge, yeah. Right? They can't send it people to go install rack access servers then they can't sell software people to go install the software and any change you wanna put through that, you know, truck roll. So they've been working with us where all they do is they ship, depending on the size of the store, one or two or three little servers with instructions that >>You, you say little servers like how big one like a box, like a small little box, >>Right? And all the person in the store has to do like what you and I do at home and we get a, you know, a router is connect the power, connect the internet and turn the switch on. And from there we pick it up. >>Yep. >>We provide the operating system, everything and then the applications are put on it. And so that dramatically brings the velocity for them. They manage thousands of >>Them. True plug and play >>Two, plug and play thousands of stores. They manage it centrally. We do it for them, right? So, so that's another example where on the edge then we have some customers who have both a large private presence and one of the public clouds. Okay. But they want to have the same platform layer of orchestration and management that they can use regardless of the locations. >>So you guys got some success. Congratulations. Got some traction there. It's awesome. The question I want to ask you is that's come up is what is truly cloud native? Cuz there's lift and shift of the cloud >>That's not cloud native. >>Then there's cloud native. Cloud native seems to be the driver for the super cloud. How do you talk to customers? How do you explain when someone says what's cloud native, what isn't cloud native? >>Right. Look, I think first of all, the best place to look at what is the definition and what are the attributes and characteristics of what is truly a cloud native, is CNC foundation. And I think it's very well documented, very well. >>Tucan, of course Detroit's >>Coming so, so it's already there, right? So we follow that very closely, right? I think just lifting and shifting your 20 year old application onto a data center somewhere is not cloud native. Okay? You can't put to cloud, not you have to rewrite and redevelop your application in business logic using modern tools. Hopefully more open source and, and I think that's what Cloudnative is and we are seeing a lot of our customers in that journey. Now everybody wants to be cloudnative, but it's not that easy, okay? Because it's, I think it's first of all, skill set is very important. Uniformity of tools that there's so many tools there. Thousands and thousands of tools you could spend your time figuring out which tool to use. Okay? So I think the complexity is there, but the business benefits of agility and uniformity and customer experience are truly being done. >>And I'll give you an example, I don't know how clear native they are, right? And they're not a customer of ours, but you order pizzas, you do, right? If you just watch the pizza industry, how dominoes actually increase their share and mind share and wallet share was not because they were making better pizzas or not, I don't know anything about that, but the whole experience of how you order, how you watch what's happening, how it's delivered. There were a pioneer in it. To me, those are the kinds of customer experiences that cloud native can provide. >>Being agility and having that flow to the application changes what the expectations >>Are >>For the customer. Customer, >>The customer's expectations change, right? Once you get used to a better customer experience, you learn. >>That's to wrap it up. I wanna just get your perspective again. One of the benefits of chatting with you here and having you part of the Super Cloud 22 is you've seen many cycles, you have a lot of insights. I want to ask you, given your career where you've been and what you've done and now let's CEO platform nine, how would you compare what's happening now with other inflection points in the industry? And you've been, again, you've been an entrepreneur, you sold your company to Oracle, you've been seeing the big companies, you've seen the different waves. What's going on right now put into context this moment in time around Super Cloud. >>Sure. I think as you said, a lot of battles. CARSs being been in an asb, being in a real time software company, being in large enterprise software houses and a transformation. I've been on the app side, I did the infrastructure right and then tried to build our own platforms. I've gone through all of this myself with lot of lessons learned in there. I think this is an event which is happening now for companies to go through to become cloud native and digitalize. If I were to look back and look at some parallels of the tsunami that's going on is a couple of paddles come to me. One is, think of it, which was forced to honors like y2k. Everybody around the world had to have a plan, a strategy, and an execution for y2k. I would say the next big thing was e-commerce. I think e-commerce has been pervasive right across all industries. >>And disruptive. >>And disruptive, extremely disruptive. If you did not adapt and adapt and accelerate your e-commerce initiative, you were, it was an existence question. Yeah. I think we are at that pivotal moment now in companies trying to become digital and cloudnative. You know, that is what I see >>Happening there. I think that that e-commerce is interesting and I think just to riff with you on that is that it's disrupting and refactoring the business models. I think that is something that's coming out of this is that it's not just completely changing the gain, it's just changing how you operate, >>How you think and how you operate. See, if you think about the early days of e-commerce, just putting up a shopping cart that made you an e-commerce or e retailer or an e e e customer, right? Or so. I think it's the same thing now is I think this is a fundamental shift on how you're thinking about your business. How are you gonna operate? How are you gonna service your customers? I think it requires that just lift and shift is not gonna work. >>Nascar, thank you for coming on, spending the time to come in and share with our community and being part of Super Cloud 22. We really appreciate, we're gonna keep this open. We're gonna keep this conversation going even after the event, to open up and look at the structural changes happening now and continue to look at it in the open in the community. And we're gonna keep this going for, for a long, long time as we get answers to the problems that customers are looking for with cloud cloud computing. I'm Sean Fur with Super Cloud 22 in the Cube. Thanks for watching. >>Thank you. Thank you. >>Hello and welcome back. This is the end of our program, our special presentation with Platform nine on cloud native at scale, enabling the super cloud. We're continuing the theme here. You heard the interviews Super Cloud and its challenges, new opportunities around solutions around like Platform nine and others with Arlon. This is really about the edge situations on the internet and managing the edge multiple regions, avoiding vendor lock in. This is what this new super cloud is all about. The business consequences we heard and and the wide ranging conversations around what it means for open source and the complexity problem all being solved. I hope you enjoyed this program. There's a lot of moving pieces and things to configure with cloud native install, all making it easier for you here with Super Cloud and of course Platform nine contributing to that. Thank you for watching.

>>Welcome back everyone, to the special presentation of Cloud Native at scale, the Cube and Platform nine special presentation going in and digging into the next generation super cloud infrastructure as code and the future of application development. We're here with Bickley, who's the chief architect and co-founder of Platform nine Pick. Great to see you Cube alumni. We, we met at an OpenStack event in about eight years ago, or well later, earlier when OpenStack was going. Great to see you and great to see congratulations on the success of Platform nine. Thank >>You very much. >>Yeah. You guys have been at this for a while and this is really the, the, the year we're seeing the, the crossover of Kubernetes because of what happens with containers. Everyone now has realized, and you've seen what Docker's doing with the new docker, the open source, Docker now just the success of containerization, right? And now the Kubernetes layer that we've been working on for years is coming, Bearing fruit. This is huge. >>Exactly. Yes. >>And so as infrastructures code comes in, we talked to Basco talking about Super Cloud. I met her about, you know, the new Arlon, our R lawn, and you guys just launched the infrastructures code is going to another level, and then it's always been DevOps infrastructures code. That's been the ethos that's been like from day one, developers just code. Then you saw the rise of serverless and you see now multi-cloud or on the horizon. Connect the dots for us. What is the state of infrastructures code today? >>So I think, I think I'm, I'm glad you mentioned it. Everybody or most people know about infrastructures code, but with Kubernetes, I think that project has evolved at the concept even further. And these dates, it's infrastructure is configuration, right? So, which is an evolution of infrastructure as code. So instead of telling the system, here's how I want my infrastructure by telling it, you know, do step A, B, C, and D. Instead, with Kubernetes you can describe your desired state declaratively using things called manifest resources. And then the system kind of magically figures it out and tries to converge the state towards the one that you specified. So I think it's, it's a even better version of infrastructures code. Yeah, >>Yeah. And that really means it developer just accessing resources. Okay, not clearing, Okay, give me some compute. Stand me up some, Turn the lights on, turn 'em off, turn 'em on. That's kind of where we see this going. And I like the configuration piece. Some people say composability, I mean, now with open source, so popular, you don't have to have to write a lot of code, this code being developed. And so it's integration, it's configuration. These are areas that we're starting to see computer science principles around automation, machine learning, assisting open source. Cuz you've got a lot of code that's right in hearing software, supply chain issues. So infrastructure as code has to factor in these, these new dynamics. Can you share your opinion on these new dynamics of, as open source grows, the glue layers, the configurations, the integration, what are the core issues? >>I think one of the major core issues is with all that power comes complexity, right? So, you know, despite its expressive power systems like Kubernetes and declarative APIs let you express a lot of complicated and complex stacks, right? But you're dealing with hundreds if not thousands of these yamo files or resources. And so I think, you know, the emergence of systems and layers to help you manage that complexity is becoming a key challenge and opportunity in, in this space. The that's, >>I wrote a LinkedIn post today was comments about, you know, hey, enterprise is a new breed. The trend of SaaS companies moving our consumer comp consumer-like thinking into the enterprise has been happening for a long time, but now more than ever, you're seeing it the old way used to be solve complexity with more complexity and then lock the customer in. Now with open source, it's speed, simplification and integration, right? These are the new dynamic power dynamics for developers. Yeah. So as companies are starting to now deploy and look at Kubernetes, what are the things that need to be in place? Because you have some, I won't say technical debt, but maybe some shortcuts, some scripts here that make it look like infrastructure is code. People have done some things to simulate or or make infrastructure as code happen. Yes. But to do it at scale Yes. Is harder. What's your take on this? What's your view? >>It's hard because there's a per proliferation of methods, tools, technologies. So for example, today it's very common for DevOps and platform engineering tools, I mean, sorry, teams to have to deploy a large number of Kubernetes clusters, but then apply the applications and configurations on top of those clusters. And they're using a wide range of tools to do this, right? For example, maybe Ansible or Terraform or bash scripts to bring up the infrastructure and then the clusters. And then they may use a different set of tools such as Argo CD or other tools to apply configurations and applications on top of the clusters. So you have this sprawl of tools. You, you also have this sprawl of configurations and files because the more objects you're dealing with, the more resources you have to manage. And there's a risk of drift that people call that where, you know, you think you have things under control, but some people from various teams will make changes here and there and then before the end of the day systems break and you have no idea of tracking them. So I think there's real need to kind of unify, simplify, and try to solve these problems using a smaller, more unified set of tools and methodologies. And that's something that we try to do with this new project. Arlon. >>Yeah. So, so we're gonna get into Arlan in a second. I wanna get into the why Arlon. You guys announced that at our GoCon, which was put on here in Silicon Valley at the computer by, in two, where they had their own little day over there at their headquarters. But before we get there, Bacar, your CEO came on and he talked about Super Cloud at our in aural event. What's your definition of super cloud? If you had to kind of explain that to someone at a cocktail party or someone in the industry technical, how would you look at the super cloud trend that's emerging? It's become a thing. What's your, what would be your contribution to that definition or the narrative? >>Well, it's, it's, it's funny because I've actually heard of the term for the first time today, speaking to you earlier today. But I think based on what you said, I I already get kind of some of the, the gist and the, the main concepts. It seems like super cloud, the way I interpret that is, you know, clouds and infrastructure, programmable infrastructure, all of those things are becoming commodity in a way. And everyone's got their own flavor, but there's a real opportunity for people to solve real business problems by perhaps trying to abstract away, you know, all of those various implementations and then building better abstractions that are perhaps business or application specific to help companies and businesses solve real business problems. >>Yeah, I remember that's a great, great definition. I remember, not to date myself, but back in the old days, you know, IBM had a proprietary network operating system. So the deck for the mini computer vendors, deck net and SNA respectively. But T C P I P came out of the osi, the open systems interconnect and remember, ethernet beat token ring out. So not to get all nerdy for all the young kids out there, look, just look up token ring, you'll see, you've probably never heard of it. It's IBM's, you know, connection for the internet at the, the layer two is Amazon, the ethernet, right? So if T C P I P could be the Kubernetes and the container abstraction that made the industry completely change at that point in history. So at every major inflection point where there's been serious industry change and wealth creation and business value, there's been an abstraction Yes. Somewhere. Yes. What's your reaction to that? >>I think this is, I think a saying that's been heard many times in this industry and, and I forgot who originated it, but I think the saying goes like, there's no problem that can't be solved with another layer of indirection, right? And we've seen this over and over and over again where Amazon and its peers have inserted this layer that has simplified, you know, computing and, and infrastructure management. And I believe this trend is going to continue, right? The next set of problems are going to be solved with these insertions of additional abstraction layers. I think that that's really a, yeah, >>It's >>Gonna >>Continue. It's interesting. I just, when I wrote another post today on LinkedIn called the Silicon Wars AMD stock is down arm has been on a rise. We've remember pointing for many years now, that arm's gonna be hugely, it has become true. If you look at the success of the infrastructure as a service layer across the clouds, Azure, aws, Amazon's clearly way ahead of everybody. The stuff that they're doing with the silicon and the physics and the, the atoms, the pro, you know, this is where the innovation, they're going so deep and so strong at ISAs, the more that they get that gets come on, they have more performance. So if you're an app developer, wouldn't you want the best performance and you'd wanna have the best abstraction layer that gives you the most ability to do infrastructures, code or infrastructure for configuration, for provisioning, for managing services. And you're seeing that today with service MeSHs, a lot of action going on in the service mesh area in in this community of, of co con, which will be a covering. So that brings up the whole what's next? You guys just announced our lawn at ar GoCon, which came out of Intuit. We've had Mariana Tessel at our super cloud event. She's the cto, you know, they're all in the cloud. So they contributed that project. Where did Arlon come from? What was the origination? What's the purpose? Why our lawn, why this announcement? >>Yeah, so the, the inception of the project, this was the result of us realizing that problem that we spoke about earlier, which is complexity, right? With all of this, these clouds, these infrastructure, all the variations around and, you know, compute storage networks and the proliferation of tools we talked about the Ansibles and Terraforms and Kubernetes itself, you can think of that as another tool, right? We saw a need to solve that complexity problem, and especially for people and users who use Kubernetes at scale. So when you have, you know, hundreds of clusters, thousands of applications, thousands of users spread out over many, many locations, there, there needs to be a system that helps simplify that management, right? So that means fewer tools, more expressive ways of describing the state that you want and more consistency. And, and that's why, you know, we built Arlan and we built it recognizing that many of these problems or sub problems have already been solved. So Arlon doesn't try to reinvent the wheel, it instead rests on the shoulders of several giants, right? So for example, Kubernetes is one building block, GI ops, and Argo CD is another one, which provides a very structured way of applying configuration. And then we have projects like cluster API and cross plane, which provide APIs for describing infrastructure. So arlon takes all of those building blocks and builds a thin layer, which gives users a very expressive way of defining configuration and desired state. So that's, that's kind of the inception of, >>And what's the benefit of that? What does that give the, what does that give the developer, the user, in this case, >>The developers, the, the platform engineer, team members, the DevOps engineers, they get a a ways to provision not just infrastructure and clusters, but also applications and configurations. They get a way, a system for provisioning, configuring, deploying, and doing life cycle management in a, in a much simpler way. Okay. Especially as I said, if you're dealing with a large number of applications. >>So it's like an operating fabric, if you will. Yes. For them. Okay, So let's get into what that means for up above and below the, the, this abstraction or thin layer below as the infrastructure. We talked a lot about what's going on below that. Yeah. Above our workloads. At the end of the day, you know, I talk to CXOs and IT folks that, that are now DevOps engineers. They care about the workloads and they want the infrastructure's code to work. They wanna spend their time getting in the weeds, figuring out what happened when someone made a push that that happened or something happened. They need observability and they need to, to know that it's working. That's right. And here's my workloads running effectively. So how do you guys look at the workload side of it? Cuz now you have multiple workloads on these fabric, right? >>So workloads, so Kubernetes has defined kind of a standard way to describe workloads. And you can, you know, tell Kubernetes, I want to run this container this particular way, or you can use other projects that are in the Kubernetes cloud native ecosystem, like K native, where you can express your application in more at a higher level, right? But what's also happening is in addition to the workloads, DevOps and platform engineering teams, they need to very often deploy the applications with the clusters themselves. Clusters are becoming this commodity. It's, it's becoming this host for the application and it kind of comes bundled with it. In many cases, it's like an appliance, right? So DevOps teams have to provision clusters at a really incredible rate and they need to tear them down. Clusters are becoming more, >>It's coming like an EC two instance, spin up a cluster. We've heard people used words like that. That's >>Right. And before arlon, you kind of had to do all of that using a different set of tools as, as I explained. So with Arlon you can kind of express everything together. You can say, I want a cluster with a health monitoring stack and a logging stack and this ingress controller and I want these applications and these security policies. You can describe all of that using something we call a profile. And then you can stamp out your app, your applications, and your clusters and manage them in a very, So >>It's essentially standard, like creates a mechanism. Exactly. Standardized, declarative kind of configurations. And it's like a playbook, deploy it. Now what's there is between say a script like I have scripts, I can just automate scripts >>Or yes, this is where that declarative API and infrastructures configuration comes in, right? Because scripts, yes, you can automate scripts, but the order in which they run matters, right? They can break, things can break in the middle and, and sometimes you need to debug them. Whereas the declarative way is much more expressive and powerful. You just tell the system what you want and then the system kind of figures it out. And there are these things about controllers, which will in the background reconcile all the state to converge towards your desire. It's a much more powerful, expressive and reliable way of getting things done. >>So infrastructure has configuration is built kind of on its super set of infrastructures code because it's an evolution. You need edge retro's code, but then you can configure the code by just saying do it. You basically declaring it saying Go, go do that. That's right. Okay, So, all right, so Cloudnative at scale, take me through your vision of what that means. Someone says, Hey, what does cloudnative at scale mean? What's success look like? How does it roll out in the future as you, not future next couple years? I mean, people are now starting to figure out, okay, it's not as easy as it sounds. Kubernetes has value. We're gonna hear this year at co con a lot of this, what does cloud native at scale >>Mean? Yeah, there are different interpretations, but if you ask me, when people think of scale, they think of a large number of deployments, right? Geographies, many, you know, supporting thousands or tens or millions of, of users. There, there's that aspect to scale. There's also an equally important a aspect of scale, which is also something that we, we try to address with Arlan. And that is just complexity for the people operating this or configuring this, right? So in order to describe that desired state, and in order to perform things like maybe upgrades or updates on a very large scale, you want the humans behind that to be able to express and direct the system to do that in, in relatively simple terms, right? And so we want the tools and the abstractions and the mechanisms available to the user to be as powerful but as simple as possible. So there's, I think there's gonna be a number and there have been a number of CNCF and cloud native projects that are trying to attack that complexity problem as well. And Arlon kind of falls in in that >>Category. Okay, So I'll put you on the spot road that Coan coming up, and obviously this will be shipping this segment series out before. What do you expect to see at Coan this year? What's the big story this year? What's the, what's the most important thing happening? Is it in the open source community and also within a lot of the, the people jocking for leadership. I know there's a lot of projects and still there's some white space in the overall systems map about the different areas get run time and there's their ability in all these different areas. What's the, where's the action? Where, where's the smoke? Where's the fire? Where's the piece? Where's the tension? >>Yeah, so I think one thing that has been happening over the past couple of cub cons and I expect to continue, and, and that is the, the word on the street is Kubernetes is getting boring, right? Which is good, right? >>Boring means simple. >>Well, well >>Maybe, >>Yeah, >>Invisible, >>No drama, right? So, so the, the rate of change of the Kubernetes features and, and all that has slowed, but in, in a, in a positive way. But there's still a general sentiment and feeling that there's just too much stuff. If you look at a stack necessary for hosting applications based on Kubernetes, there're just still too many moving parts, too many components, right? Too much complexity. I go, I keep going back to the complexity problem. So I expect Cube Con and all the vendors and the players and the startups and the people there to continue to focus on that complexity problem and introduce further simplifications to, to the stack. Yeah. >>B, you've had a storied career VMware over decades with them, obviously with 12 years, with 14 years or something like that. Big number. Co-founder here, a platform. Now you guys been around for a while at this game. We, man, we talked about OpenStack, that project you, we interviewed at one of their events. So OpenStack was the beginning of that, this new revolution. And I remember the early days it was, it wasn't supposed to be an alternative to Amazon, but it was a way to do more cloud cloud native. I think we had a cloud a Rod team at that time. We to joke we, you know, about, about the dream. It's happening now, now at Platform nine. You guys have been doing this for a while. What's the, what are you most excited about as the chief architect? What did you guys double down on? What did you guys pivot from or two, did you do any pivots? Did you extend out certain areas? Cuz you guys are in a good position right now, a lot of DNA in Cloud native. What are you most excited about and what does Platform nine bring to the table for customers and for people in the industry watching this? >>Yeah, so I think our mission really hasn't changed over the years, right? It's been always about taking complex open source software because open source software, it's powerful. It solves new problems, you know, every year and you have new things coming out all the time, right? OpenStack was an example where the Kubernetes took the world by storm. But there's always that complexity of, you know, just configuring it, deploying it, running it, operating it. And our mission has always been that we will take all that complexity and just make it, you know, easy for users to consume regardless of the technology, right? So the successor to Kubernetes, you know, I don't have a crystal ball, but you know, you have some indications that people are coming up of new and simpler ways of running applications. There are many projects around there who knows what's coming next year or the year after that. But platform will a, platform nine will be there and we will, you know, take the innovations from the, the, the community. We will contribute our own innovations and make all of those things very consumable to customers. >>Simpler, faster, cheaper. Exactly. Always a good business model technically to make that happen. Yeah, I think the reigning in the chaos is key, you know, Now we have now visibility into the scale. Final question before we depart this segment. What is at scale, how many clusters do you see that would be a, a watermark for an at scale conversation around an enterprise? Is it workloads we're looking at or, or clusters? How would you Yeah, how would you describe that? When people try to squint through and evaluate what's a scale, what's the at scale kind of threshold? >>Yeah. And, and the number of clusters doesn't tell the whole story because clusters can be small in terms of the number of nodes or they can be large. But roughly speaking when we say, you know, large scale cluster deployments, we're talking about maybe hundreds, two thousands. >>Yeah. And final final question, what's the role of the hyperscalers? You got AWS continuing to do well, but they got their core ias, they got a PAs, they're not too too much putting a SaaS out there. They have some SaaS apps, but mostly it's the ecosystem. They have marketplaces doing over $2 billion tran billions of transactions a year and, and it's just like, just sitting there. It hasn't really, they're now innovating on it, but that's gonna change ecosystems. What's the role the cloud play in the cloud need of its scale? >>The, the hyperscalers? >>Yeah. A's Azure, Google >>You mean from a business perspective, technical, they're, they have their own interests that, you know, that they're, they will keep catering to, they, they will continue to find ways to lock their users into their ecosystem of services and, and APIs. So I don't think that's gonna change, right? They're just gonna keep >>Well, they got great I performance, I mean from a, from a hardware standpoint, yes. That's gonna be key, right? >>Yes. I think the, the move from X 86 being the dominant way and platform to run workloads is changing, right? That, that, that, that, and I think the, the hyperscalers really want to be in the game in terms of, you know, the, the new risk and arm ecosystems and, and platforms. >>Yeah. Not joking aside, Paul Morritz, when he was the CEO of VMware, when he took over once said, and I remember our first year doing the cube, Oh, the cloud is one big distributed computer. It's, it's hardware and you got software and you got middleware and he kind of over, well he's kind of tongue in cheek, but really you're talking about large compute and sets of services that is essentially a distributed computer. >>Yes, >>Exactly. It's, we're back in the same game. Vic, thank you for coming on the segment. Appreciate your time. This is cloud native at scale special presentation with Platform nine. Really unpacking super Cloud Arlon open source and how to run large scale applications on the cloud. Cloud Native Phil for developers and John Furrier with the cube. Thanks for Washington. We'll stay tuned for another great segment coming right up.

>>Hello, welcome to the Cube here in Palo Alto, California for a special presentation on Cloud native at scale, enabling super cloud modern applications with Platform nine. I'm John Furr, your host of The Cube. We had a great lineup of three interviews we're streaming today. Meor Ma Makowski, who's the co-founder and VP of Product of Platform nine. She's gonna go into detail around Arlon, the open source products, and also the value of what this means for infrastructure as code and for cloud native at scale. Bickley the chief architect of Platform nine Cube alumni. Going back to the OpenStack days. He's gonna go into why Arlon, why this infrastructure as code implication, what it means for customers and the implications in the open source community and where that value is. Really great wide ranging conversation there. And of course, Vascar, Gort, the CEO of Platform nine, is gonna talk with me about his views on Super Cloud and why Platform nine has a scalable solutions to bring cloudnative at scale. So enjoy the program. See you soon. Hello everyone. Welcome to the cube here in Palo Alto, California for special program on cloud native at scale, enabling next generation cloud or super cloud for modern application cloud native developers. I'm John Furry, host of the Cube. A pleasure to have here, me Makoski, co-founder and VP of product at Platform nine. Thanks for coming in today for this Cloudnative at scale conversation. Thank >>You for having me. >>So Cloudnative at scale, something that we're talking about because we're seeing the, the next level of mainstream success of containers Kubernetes and cloud native develop, basically DevOps in the C I C D pipeline. It's changing the landscape of infrastructure as code, it's accelerating the value proposition and the super cloud as we call it, has been getting a lot of traction because this next generation cloud is looking a lot different, but kind of the same as the first generation. What's your view on super cloud as it fits to cloud native as scales up? >>Yeah, you know, I think what's interesting, and I think the reason why Super Cloud is a really good, in a really fit term for this, and I think, I know my CEO was chatting with you as well, and he was mentioning this as well, but I think there needs to be a different term than just multi-cloud or cloud. And the reason is because as cloud native and cloud deployments have scaled, I think we've reached a point now where instead of having the traditional data center style model where you have a few large distributions of infrastructure and workload at a few locations, I think the model is kind of flipped around, right? Where you have a large number of microsites, these microsites could be your public cloud deployment, your private on-prem infrastructure deployments, or it could be your edge environment, right? And every single enterprise, every single industry is moving in that direction. And so you gotta rougher that with a terminology that, that, that indicates the scale and complexity of it. And so I think supercloud is a, is an appropriate term for that. >>So you brought a couple of things I want to dig into. You mentioned edge nodes. We're seeing not only edge nodes being the next kind of area of innovation, mainly because it's just popping up everywhere. And that's just the beginning. Wouldn't even know what's around the corner. You got buildings, you got iot, ot, and IT kind of coming together, but you also got this idea of regions, global infras infrastructures, big part of it. I just saw some news around CloudFlare shutting down a site here. There's policies being made at scale, These new challenges there. Can you share because you can have edge. So hybrid cloud is a winning formula. Everybody knows that it's a steady state. Yeah. But across multiple clouds brings in this new un engineered area, yet it hasn't been done yet. Spanning clouds. People say they're doing it, but you start to see the toe in the water, it's happening, it's gonna happen. It's only gonna get accelerated with the edge and beyond globally. So I have to ask you, what is the technical challenges in doing this? Because there's something business consequences as well, but there are technical challenges. Can you share your view on what the technical challenges are for the super cloud or across multiple edges and regions? >>Yeah, absolutely. So I think, you know, in in the context of this, the, this, this term of super cloud, I think it's sometimes easier to visualize things in terms of two access, right? I think on one end you can think of the scale in terms of just pure number of nodes that you have deploy a number of clusters in the Kubernetes space. And then on the other axis you would have your distribution factor, right? Which is, do you have these tens of thousands of nodes in one site or do you have them distributed across tens of thousands of sites with one node at each site? Right? And if you have just one flavor of this, there is enough complexity, but potentially manageable. But when you are expanding on both these access, you really get to a point where that scale really needs some well thought out, well structured solutions to address it, right? A combination of homegrown tooling along with your, you know, favorite distribution of Kubernetes is not a strategy that can help you in this environment. It may help you when you have one of this or when you, when you scale, is not at the level. >>Can you scope the complexity? Because I mean, I hear a lot of moving parts going on there, the technology's also getting better. We we're seeing cloud native become successful. There's a lot to configure, there's a lot to install. Can you scope the scale of the problem? Because we're talking about at scale Yep. Challenges here. Yeah, >>Absolutely. And I think, you know, I I like to call it, you know, the, the, the problem that the scale creates, you know, there's various problems, but I think one, one problem, one way to think about it is, is, you know, it works on my cluster problem, right? So I, you know, I come from engineering background and there's a, you know, there's a famous saying between engineers and QA and the support folks, right? Which is, it works on my laptop, which is I tested this chain, everything was fantastic, it worked flawlessly on my machine, on production, It's not working. The exact same problem now happens and these distributed environments, but at massive scale, right? Which is that, you know, developers test their applications, et cetera within the sanctity of their sandbox environments. But once you expose that change in the wild world of your production deployment, right? >>And the production deployment could be going at the radio cell tower at the edge location where a cluster is running there, or it could be sending, you know, these applications and having them run at my customer site where they might not have configured that cluster exactly the same way as I configured it, or they configured the cluster, right? But maybe they didn't deploy the security policies, or they didn't deploy the other infrastructure plugins that my app relies on. All of these various factors are their own layer of complexity. And there really isn't a simple way to solve that today. And that is just, you know, one example of an issue that happens. I think another, you know, whole new ball game of issues come in the context of security, right? Because when you are deploying applications at scale in a distributed manner, you gotta make sure someone's job is on the line to ensure that the right security policies are enforced regardless of that scale factor. So I think that's another example of problems that occur. >>Okay. So I have to ask about scale, because there are a lot of multiple steps involved when you see the success of cloud native. You know, you see some, you know, some experimentation. They set up a cluster, say it's containers and Kubernetes, and then you say, Okay, we got this, we can figure it. And then they do it again and again, they call it day two. Some people call it day one, day two operation, whatever you call it. Once you get past the first initial thing, then you gotta scale it. Then you're seeing security breaches, you're seeing configuration errors. This seems to be where the hotspot is in when companies transition from, I got this to, Oh no, it's harder than I thought at scale. Can you share your reaction to that and how you see this playing out? >>Yeah, so, you know, I think it's interesting. There's multiple problems that occur when, you know, the two factors of scale, as we talked about, start expanding. I think one of them is what I like to call the, you know, it, it works fine on my cluster problem, which is back in, when I was a developer, we used to call this, it works on my laptop problem, which is, you know, you have your perfectly written code that is operating just fine on your machine, your sandbox environment. But the moment it runs production, it comes back with p zeros and pos from support teams, et cetera. And those issues can be really difficult to triage us, right? And so in the Kubernetes environment, this problem kind of multi folds, it goes, you know, escalates to a higher degree because you have your sandbox developer environments, they have their clusters and things work perfectly fine in those clusters because these clusters are typically handcrafted or a combination of some scripting and handcrafting. >>And so as you give that change to then run at your production edge location, like say your radio cell tower site, or you hand it over to a customer to run it on their cluster, they might not have not have configured that cluster exactly how you did, or they might not have configured some of the infrastructure plugins. And so the things don't work. And when things don't work, triaging them becomes nightmarishly hard, right? It's just one of the examples of the problem, another whole bucket of issues is security, which is, is you have these distributed clusters at scale, you gotta ensure someone's job is on the line to make sure that these security policies are configured properly. >>So this is a huge problem. I love that comment. That's not not happening on my system. It's the classic, you know, debugging mentality. Yeah. But at scale it's hard to do that with error prone. I can see that being a problem. And you guys have a solution you're launching. Can you share what Arlon is this new product? What is it all about? Talk about this new introduction. >>Yeah, absolutely. Very, very excited. You know, it's one of the projects that we've been working on for some time now because we are very passionate about this problem and just solving problems at scale in on-prem or at in the cloud or at edge environments. And what arlon is, it's an open source project, and it is a tool, it's a Kubernetes native tool for complete end to end management of not just your clusters, but your clusters. All of the infrastructure that goes within and along the site of those clusters, security policies, your middleware, plug-ins, and finally your applications. So what our LA you do in a nutshell is in a declarative way, it lets you handle the configuration and management of all of these components in at scale. >>So what's the elevator pitch simply put for what dissolves in, in terms of the chaos you guys are reigning in, what's the, what's the bumper sticker? Yeah, what >>Would it do? There's a perfect analogy that I love to reference in this context, which is think of your assembly line, you know, in a traditional, let's say, you know, an auto manufacturing factory or et cetera, and the level of efficiency at scale that that assembly line brings, right? Our line, and if you look at the logo we've designed, it's this funny little robot. And it's because when we think of online, we think of these enterprise large scale environments, you know, sprawling at scale, creating chaos because there isn't necessarily a well thought through, well structured solution that's similar to an assembly line, which is taking each component, you know, addressing them, manufacturing, processing them in a standardized way, then handing to the next stage. But again, it gets, you know, processed in a standardized way. And that's what arlon really does. That's like the deliver pitch. If you have problems of scale of managing your infrastructure, you know, that is distributed. Arlon brings the assembly line level of efficiency and consistency for >>Those. So keeping it smooth, the assembly on things are flowing. See c i CD pipe pipelining. Exactly. So that's what you're trying to simplify that ops piece for the developer. I mean, it's not really ops, it's their ops, it's coding. >>Yeah. Not just developer, the ops, the operations folks as well, right? Because developers, you know, there is, developers are responsible for one picture of that layer, which is my apps, and then maybe that middleware of applications that they interface with, but then they hand it over to someone else who's then responsible to ensure that these apps are secure properly, that they are logging, logs are being collected properly, monitoring and observability integrated. And so it solves problems for both >>Those teams. Yeah. It's DevOps. So the DevOps is the cloud needed developer's. That's right. The option teams have to kind of set policies. Is that where the declarative piece comes in? Is that why that's important? >>Absolutely. Yeah. And, and, and, and you know, ES really in introduced or elevated this declarative management, right? Because, you know, s clusters are Yeah. Or your, yeah, you know, specifications of components that go in Kubernetes are defined a declarative way, and Kubernetes always keeps that state consistent with your defined state. But when you go outside of that world of a single cluster, and when you actually talk about defining the clusters or defining everything that's around it, there really isn't a solution that does that today. And so Arlon addresses that problem at the heart of it, and it does that using existing open source well known solutions. >>And do I want to get into the benefits? What's in it for me as the customer developer? But I want to finish this out real quick and get your thoughts. You mentioned open source. Why open source? What's the, what's the current state of the product? You run the product group over at Platform nine, is it open source? And you guys have a product that's commercial? Can you explain the open source dynamic? And first of all, why open source? Yeah. And what is the consumption? I mean, open source is great, People want open source, they can download it, look up the code, but maybe wanna buy the commercial. So I'm assuming you have that thought through, can you share open source and commercial relationship? >>Yeah, I think, you know, starting with why open source? I think it's, you know, we as a company, we have, you know, one of the things that's absolutely critical to us is that we take mainstream open source technologies components and then we, you know, make them available to our customers at scale through either a SaaS model or on-prem model, right? But, so as we are a company or startup or a company that benefits, you know, in a massive way by this open source economy, it's only right, I think in my mind that we do our part of the duty, right? And contribute back to the community that feeds us. And so, you know, we have always held that strongly as one of our principles. And we have, you know, created and built independent products starting all the way with fision, which was a serverless product, you know, that we had built to various other, you know, examples that I can give. But that's one of the main reasons why opensource and also open source, because we want the community to really firsthand engage with us on this problem, which is very difficult to achieve if your product is behind a wall, you know, behind, behind a block box. >>Well, and that's, that's what the developers want too. And what we're seeing in reporting with Super Cloud is the new model of consumption is I wanna look at the code and see what's in there. That's right. And then also, if I want to use it, I'll do it. Great. That's open source, that's the value. But then at the end of the day, if I wanna move fast, that's when people buy in. So it's a new kind of freemium, I guess, business model. I guess that's the way that long. But that's, that's the benefit. Open source. This is why standards and open source is growing so fast. You have that confluence of, you know, a way for developers to try before they buy, but also actually kind of date the application, if you will. We, you know, Adrian Karo uses the dating met metaphor, you know, Hey, you know, I wanna check it out first before I get married. Right? And that's what open source, So this is the new, this is how people are selling. This is not just open source, this is how companies are selling. >>Absolutely. Yeah. Yeah. You know, I think, and you know, two things. I think one is just, you know, this, this, this cloud native space is so vast that if you, if you're building a close flow solution, sometimes there's also a risk that it may not apply to every single enterprises use cases. And so having it open source gives them an opportunity to extend it, expand it, to make it proper to their use case if they choose to do so, right? But at the same time, what's also critical to us is we are able to provide a supported version of it with an SLA that we, you know, that's backed by us, a SAS hosted version of it as well, for those customers who choose to go that route, you know, once they have used the open source version and loved it and want to take it at scale and in production and need, need, need a partner to collaborate with, who can, you know, support them for that production >>Environment. I have to ask you now, let's get into what's in it for the customer. I'm a customer. Yep. Why should I be enthused about Arla? What's in it for me? You know? Cause if I'm not enthused about it, I'm not gonna be confident and it's gonna be hard for me to get behind this. Can you share your enthusiastic view of, you know, why I should be enthused about Arlo? I'm a >>Customer. Yeah, absolutely. And so, and there's multiple, you know, enterprises that we talk to, many of them, you know, our customers, where this is a very kind of typical story that you hear, which is we have, you know, a Kubernetes distribution. It could be on premise, it could be public clouds, native Kubernetes, and then we have our C I C D pipelines that are automating the deployment of applications, et cetera. And then there's this gray zone. And the gray zone is well before you can you, your CS c D pipelines can deploy the apps. Somebody needs to do all of that groundwork of, you know, defining those clusters and yeah. You know, properly configuring them. And as these things, these things start by being done hand grown. And then as the, as you scale, what typically enterprises would do today is they will have their home homegrown DIY solutions for this. >>I mean, the number of folks that I talk to that have built Terra from automation, and then, you know, some of those key developers leave. So it's a typical open source or typical, you know, DIY challenge. And the reason that they're writing it themselves is not because they want to. I mean, of course technology is always interesting to everybody, but it's because they can't find a solution that's out there that perfectly fits the problem. And so that's that pitch. I think Ops FICO would be delighted. The folks that we've talk, you know, spoken with, have been absolutely excited and have, you know, shared that this is a major challenge we have today because we have, you know, few hundreds of clusters on ecos Amazon, and we wanna scale them to few thousands, but we don't think we are ready to do that. And this will give us the >>Ability to, Yeah, I think people are scared. Not sc I won't say scare, that's a bad word. Maybe I should say that they feel nervous because, you know, at scale small mistakes can become large mistakes. This is something that is concerning to enterprises. And, and I think this is gonna come up at co con this year where enterprises are gonna say, Okay, I need to see SLAs. I wanna see track record, I wanna see other companies that have used it. Yeah. How would you answer that question to, or, or challenge, you know, Hey, I love this, but is there any guarantees? Is there any, what's the SLAs? I'm an enterprise, I got tight, you know, I love the open source trying to free fast and loose, but I need hardened code. >>Yeah, absolutely. So, so two parts to that, right? One is Arlan leverages existing open source components, products that are extremely popular. Two specifically. One is Arlan uses Argo cd, which is probably one of the highest and used CD open source tools that's out there. Right's created by folks that are as part of into team now, you know, really brilliant team. And it's used at scale across enterprises. That's one. Second is Alon also makes use of Cluster api cappi, which is a Kubernetes sub-component, right? For lifecycle management of clusters. So there is enough of, you know, community users, et cetera, around these two products, right? Or, or, or open source projects that will find Arlan to be right up in their alley because they're already comfortable, familiar with Argo cd. Now Arlan just extends the scope of what City can do. And so that's one. And then the second part is going back to a point of the comfort. And that's where, you know, platform line has a role to play, which is when you are ready to deploy online at scale, because you've been, you know, playing with it in your DEF test environments, you're happy with what you get with it, then Platform nine will stand behind it and provide that >>Sla. And what's been the reaction from customers you've talked to Platform nine customers with, with that are familiar with, with Argo and then rlo? What's been some of the feedback? >>Yeah, I, I think the feedback's been fantastic. I mean, I can give you examples of customers where, you know, initially, you know, when you are, when you're telling them about your entire portfolio of solutions, it might not strike a card right away. But then we start talking about Arlan and, and we talk about the fact that it uses Argo adn, they start opening up, they say, We have standardized on Argo and we have built these components, homegrown, we would be very interested. Can we co-develop? Does it support these use cases? So we've had that kind of validation. We've had validation all the way at the beginning of our land before we even wrote a single line of code saying this is something we plan on doing. And the customer said, If you had it today, I would've purchased it. So it's been really great validation. >>All right. So next question is, what is the solution to the customer? If I asked you, Look it, I have, I'm so busy, my team's overworked. I got a skills gap. I don't need another project that's, I'm so tied up right now and I'm just chasing my tail. How does Platform nine help me? >>Yeah, absolutely. So I think, you know, one of the core tenets of Platform nine has always been been that we try to bring that public cloud like simplicity by hosting, you know, this in a lot of such similar tools in a SaaS hosted manner for our customers, right? So our goal behind doing that is taking away or trying to take away all of that complexity from customers' hands and offloading it to our hands, right? And giving them that full white glove treatment, as we call it. And so from a customer's perspective, one, something like arlon will integrate with what they have so they don't have to rip and replace anything. In fact, it will, even in the next versions, it may even discover your clusters that you have today and you know, give you an inventory. And that will, >>So if customers have clusters that are growing, that's a sign correct call you guys. >>Absolutely. Either they're, they have massive large clusters, right? That they wanna split into smaller clusters, but they're not comfortable doing that today, or they've done that already on say, public cloud or otherwise. And now they have management challenges. So >>Especially operationalizing the clusters, whether they want to kind of reset everything and remove things around and reconfigure Yep. And or scale out. >>That's right. Exactly. And >>You provide that layer of policy. >>Absolutely. >>Yes. That's the key value here. >>That's right. >>So policy based configuration for cluster scale up, >>Well profile and policy based declarative configuration and lifecycle management for clusters. >>If I asked you how this enables supercloud, what would you say to that? >>I think this is one of the key ingredients to super cloud, right? If you think about a super cloud environment, there's at least few key ingredients that that come to my mind that are really critical. Like they are, you know, life saving ingredients at that scale. One is having a really good strategy for managing that scale, you know, in a, going back to assembly line in a very consistent, predictable way so that our lot solves then you, you need to compliment that with the right kind of observability and monitoring tools at scale, right? Because ultimately issues are gonna happen and you're gonna have to figure out, you know, how to solve them fast. And arlon by the way, also helps in that direction, but you also need observability tools. And then especially if you're running it on the public cloud, you need some cost management tools. In my mind, these three things are like the most necessary ingredients to make Super Cloud successful. And you know, our alarm fills in >>One. Okay. So now the next level is, Okay, that makes sense. Is under the covers kind of speak under the hood. Yeah. How does that impact the app developers and the cloud native modern application workflows? Because the impact to me, seems the apps are gonna be impacted. Are they gonna be faster, stronger? I mean, what's the impact if you do all those things, as you mentioned, what's the impact of the apps? >>Yeah, the impact is that your apps are more likely to operate in production the way you expect them to, because the right checks and balances have gone through, and any discrepancies have been identified prior to those apps, prior to your customer running into them, right? Because developers run into this challenge to their, where there's a split responsibility, right? I'm responsible for my code, I'm responsible for some of these other plugins, but I don't own the stack end to end. I have to rely on my ops counterpart to do their part, right? And so this really gives them, you know, the right tooling for that. >>So this is actually a great kind of relevant point, you know, as cloud becomes more scalable, you're starting to see this fragmentation gone of the days of the full stack developer to the more specialized role. But this is a key point, and I have to ask you because if this RLO solution takes place, as you say, and the apps are gonna be stupid, they're designed to do, the question is, what did does the current pain look like of the apps breaking? What does the signals to the customer Yeah. That they should be calling you guys up into implementing Arlo, Argo and, and all the other goodness to automate? What are some of the signals? Is it downtime? Is it, is it failed apps, Is it latency? What are some of the things that Yeah, absolutely would be indications of things are effed up a little bit. Yeah. >>More frequent down times, down times that are, that take longer to triage. And so you are, you know, the, you know, your mean times on resolution, et cetera, are escalating or growing larger, right? Like we have environments of customers where they're, they have a number of folks on in the field that have to take these apps and run them at customer sites. And that's one of our partners. And they're extremely interested in this because they're the, the rate of failures they're encountering for this, you know, the field when they're running these apps on site, because the field is automating their clusters that are running on sites using their own script. So these are the kinds of challenges, and those are the pain points, which is, you know, if you're looking to reduce your meantime to resolution, if you're looking to reduce the number of failures that occur on your production site, that's one. And second, if you are looking to manage these at scale environments with a relatively small, focused, nimble ops team, which has an immediate impact on your budget. So those are, those are the signals. >>This is the cloud native at scale situation, the innovation going on. Final thought is your reaction to the idea that if the world goes digital, which it is, and the confluence of physical and digital coming together, and cloud continues to do its thing, the company becomes the application, not where it used to be supporting the business, you know, the back office and the maybe terminals and some PCs and handhelds. Now if technology's running, the business is the business. Yeah. Company's the application. Yeah. So it can't be down. So there's a lot of pressure on, on CSOs and CIOs now and boards is saying, How is technology driving the top line revenue? That's the number one conversation. Yep. Do you see that same thing? >>Yeah. It's interesting. I think there's multiple pressures at the CXO CIO level, right? One is that there needs to be that visibility and clarity and guarantee almost that, you know, that the, the technology that's, you know, that's gonna drive your top line is gonna drive that in a consistent, reliable, predictable manner. And then second, there is the constant pressure to do that while always lowering your costs of doing it, right? Especially when you're talking about, let's say retailers or those kinds of large scale vendors, they many times make money by lowering the amount that they spend on, you know, providing those goods to their end customers. So I think those, both those factors kind of come into play and the solution to all of them is usually in a very structured strategy around automation. >>Final question. What does cloudnative at scale look like to you? If all the things happen the way we want 'em to happen, The magic wand, the magic dust, what does it look like? >>What that looks like to me is a CIO sipping at his desk on coffee production is running absolutely smooth. And his, he's running that at a nimble, nimble team size of at the most, a handful of folks that are just looking after things, but things are >>Just taking care of the CIO doesn't exist. There's no ciso, they're at the beach. >>Yep. >>Thank you for coming on, sharing the cloud native at scale here on the cube. Thank you for your time. >>Fantastic. Thanks for >>Having me. Okay. I'm John Fur here for special program presentation, special programming cloud native at scale, enabling super cloud modern applications with Platform nine. Thanks for watching. Welcome back everyone to the special presentation of cloud native at scale, the cube and platform nine special presentation going in and digging into the next generation super cloud infrastructure as code and the future of application development. We're here with Bickley, who's the chief architect and co-founder of Platform nine Pick. Great to see you Cube alumni. We, we met at an OpenStack event in about eight years ago, or later, earlier when OpenStack was going. Great to see you and great to see congratulations on the success of platform nine. >>Thank you very much. >>Yeah. You guys have been at this for a while and this is really the, the, the year we're seeing the, the crossover of Kubernetes because of what happens with containers. Everyone now has realized, and you've seen what Docker's doing with the new docker, the open source Docker now just the success Exactly. Of containerization, right? And now the Kubernetes layer that we've been working on for years is coming, bearing fruit. This is huge. >>Exactly. Yes. >>And so as infrastructures code comes in, we talked to Bacar talking about Super Cloud, I met her about, you know, the new Arlon, our, our lawn, and you guys just launched the infrastructures code is going to another level, and then it's always been DevOps infrastructures code. That's been the ethos that's been like from day one, developers just code. Then you saw the rise of serverless and you see now multi-cloud or on the horizon, connect the dots for us. What is the state of infrastructure as code today? >>So I think, I think I'm, I'm glad you mentioned it, everybody or most people know about infrastructures code. But with Kubernetes, I think that project has evolved at the concept even further. And these dates, it's infrastructure is configuration, right? So, which is an evolution of infrastructure as code. So instead of telling the system, here's how I want my infrastructure by telling it, you know, do step A, B, C, and D instead with Kubernetes, you can describe your desired state declaratively using things called manifest resources. And then the system kind of magically figures it out and tries to converge the state towards the one that you specified. So I think it's, it's a even better version of infrastructures code. >>Yeah. And that really means it's developer just accessing resources. Okay. That declare, Okay, give me some compute, stand me up some, turn the lights on, turn 'em off, turn 'em on. That's kind of where we see this going. And I like the configuration piece. Some people say composability, I mean now with open source so popular, you don't have to have to write a lot of code, this code being developed. And so it's into integration, it's configuration. These are areas that we're starting to see computer science principles around automation, machine learning, assisting open source. Cuz you got a lot of code that's right in hearing software, supply chain issues. So infrastructure as code has to factor in these new dynamics. Can you share your opinion on these new dynamics of, as open source grows, the glue layers, the configurations, the integration, what are the core issues? >>I think one of the major core issues is with all that power comes complexity, right? So, you know, despite its expressive power systems like Kubernetes and declarative APIs let you express a lot of complicated and complex stacks, right? But you're dealing with hundreds if not thousands of these yamo files or resources. And so I think, you know, the emergence of systems and layers to help you manage that complexity is becoming a key challenge and opportunity in, in this space. >>That's, I wrote a LinkedIn post today was comments about, you know, hey, enterprise is a new breed. The trend of SaaS companies moving our consumer comp consumer-like thinking into the enterprise has been happening for a long time, but now more than ever, you're seeing it the old way used to be solve complexity with more complexity and then lock the customer in. Now with open source, it's speed, simplification and integration, right? These are the new dynamic power dynamics for developers. Yeah. So as companies are starting to now deploy and look at Kubernetes, what are the things that need to be in place? Because you have some, I won't say technical debt, but maybe some shortcuts, some scripts here that make it look like infrastructure is code. People have done some things to simulate or or make infrastructure as code happen. Yes. But to do it at scale Yes. Is harder. What's your take on this? What's your view? >>It's hard because there's a per proliferation of methods, tools, technologies. So for example, today it's very common for DevOps and platform engineering tools, I mean, sorry, teams to have to deploy a large number of Kubernetes clusters, but then apply the applications and configurations on top of those clusters. And they're using a wide range of tools to do this, right? For example, maybe Ansible or Terraform or bash scripts to bring up the infrastructure and then the clusters. And then they may use a different set of tools such as Argo CD or other tools to apply configurations and applications on top of the clusters. So you have this sprawl of tools. You, you also have this sprawl of configurations and files because the more objects you're dealing with, the more resources you have to manage. And there's a risk of drift that people call that where, you know, you think you have things under control, but some people from various teams will make changes here and there and then before the end of the day systems break and you have no idea of tracking them. So I think there's real need to kind of unify, simplify, and try to solve these problems using a smaller, more unified set of tools and methodologies. And that's something that we try to do with this new project. Arlon. >>Yeah. So, so we're gonna get into Arlan in a second. I wanna get into the why Arlon. You guys announced that at AR GoCon, which was put on here in Silicon Valley at the, at the community meeting by in two, they had their own little day over there at their headquarters. But before we get there, vascar, your CEO came on and he talked about Super Cloud at our in AAL event. What's your definition of super cloud? If you had to kind of explain that to someone at a cocktail party or someone in the industry technical, how would you look at the super cloud trend that's emerging? It's become a thing. What's your, what would be your contribution to that definition or the narrative? >>Well, it's, it's, it's funny because I've actually heard of the term for the first time today, speaking to you earlier today. But I think based on what you said, I I already get kind of some of the, the gist and the, the main concepts. It seems like super cloud, the way I interpret that is, you know, clouds and infrastructure, programmable infrastructure, all of those things are becoming commodity in a way. And everyone's got their own flavor, but there's a real opportunity for people to solve real business problems by perhaps trying to abstract away, you know, all of those various implementations and then building better abstractions that are perhaps business or applications specific to help companies and businesses solve real business problems. >>Yeah, I remember that's a great, great definition. I remember, not to date myself, but back in the old days, you know, IBM had a proprietary network operating system, so of deck for the mini computer vendors, deck net and SNA respectively. But T C P I P came out of the osi, the open systems interconnect and remember, ethernet beat token ring out. So not to get all nerdy for all the young kids out there, look, just look up token ring, you'll see, you've probably never heard of it. It's IBM's, you know, connection for the internet at the, the layer two is Amazon, the ethernet, right? So if T C P I P could be the Kubernetes and the container abstraction that made the industry completely change at that point in history. So at every major inflection point where there's been serious industry change and wealth creation and business value, there's been an abstraction Yes. Somewhere. Yes. What's your reaction to that? >>I think this is, I think a saying that's been heard many times in this industry and, and I forgot who originated it, but I think that the saying goes like, there's no problem that can't be solved with another layer of indirection, right? And we've seen this over and over and over again where Amazon and its peers have inserted this layer that has simplified, you know, computing and, and infrastructure management. And I believe this trend is going to continue, right? The next set of problems are going to be solved with these insertions of additional abstraction layers. I think that that's really a, yeah, it's gonna >>Continue. It's interesting. I just, when I wrote another post today on LinkedIn called the Silicon Wars AMD stock is down arm has been on a rise. We remember pointing for many years now that arm's gonna be hugely, it has become true. If you look at the success of the infrastructure as a service layer across the clouds, Azure, aws, Amazon's clearly way ahead of everybody. The stuff that they're doing with the silicon and the physics and the, the atoms, the pro, you know, this is where the innovation, they're going so deep and so strong at ISAs, the more that they get that gets come on, they have more performance. So if you're an app developer, wouldn't you want the best performance and you'd wanna have the best abstraction layer that gives you the most ability to do infrastructures, code or infrastructure for configuration, for provisioning, for managing services. And you're seeing that today with service MeSHs, a lot of action going on in the service mesh area in in this community of, of co con, which will be a covering. So that brings up the whole what's next? You guys just announced our lawn at Argo Con, which came out of Intuit. We've had Mariana Tessel at our super cloud event. She's the cto, you know, they're all in the cloud. So they contributed that project. Where did Arlon come from? What was the origination? What's the purpose? Why our lawn, why this announcement? >>Yeah, so the, the inception of the project, this was the result of us realizing that problem that we spoke about earlier, which is complexity, right? With all of this, these clouds, these infrastructure, all the variations around and, you know, compute storage networks and the proliferation of tools we talked about the Ansibles and Terraforms and Kubernetes itself. You can, you can think of that as another tool, right? We saw a need to solve that complexity problem, and especially for people and users who use Kubernetes at scale. So when you have, you know, hundreds of clusters, thousands of applications, thousands of users spread out over many, many locations, there, there needs to be a system that helps simplify that management, right? So that means fewer tools, more expressive ways of describing the state that you want and more consistency. And, and that's why, you know, we built our lawn and we built it recognizing that many of these problems or sub problems have already been solved. So Arlon doesn't try to reinvent the wheel, it instead rests on the shoulders of several giants, right? So for example, Kubernetes is one building block, GI ops, and Argo CD is another one, which provides a very structured way of applying configuration. And then we have projects like cluster API and cross plane, which provide APIs for describing infrastructure. So arlon takes all of those building blocks and builds a thin layer, which gives users a very expressive way of defining configuration and desired state. So that's, that's kind of the inception of, And >>What's the benefit of that? What does that give the, what does that give the developer, the user, in this case, >>The developers, the, the platform engineer, team members, the DevOps engineers, they get a a ways to provision not just infrastructure and clusters, but also applications and configurations. They get a way, a system for provisioning, configuring, deploying, and doing life cycle management in a, in a much simpler way. Okay. Especially as I said, if you're dealing with a large number of applications. >>So it's like an operating fabric, if you will. Yes. For them. Okay, so let's get into what that means for up above and below the the, this abstraction or thin layer below as the infrastructure. We talked a lot about what's going on below that. Yeah. Above our workloads. At the end of the day, you know, I talk to CXOs and IT folks that are now DevOps engineers. They care about the workloads and they want the infrastructures code to work. They wanna spend their time getting in the weeds, figuring out what happened when someone made a push that that happened or something happened. They need observability and they need to, to know that it's working. That's right. And is my workloads running effectively? So how do you guys look at the workload side of it? Cuz now you have multiple workloads on these fabric, >>Right? So workloads, so Kubernetes has defined kind of a standard way to describe workloads and you can, you know, tell Kubernetes, I want to run this container this particular way, or you can use other projects that are in the Kubernetes cloud native ecosystem like K native, where you can express your application in more at a higher level, right? But what's also happening is in addition to the workloads, DevOps and platform engineering teams, they need to very often deploy the applications with the clusters themselves. Clusters are becoming this commodity. It's, it's becoming this host for the application and it kind of comes bundled with it. In many cases it is like an appliance, right? So DevOps teams have to provision clusters at a really incredible rate and they need to tear them down. Clusters are becoming more, >>It's kinda like an EC two instance, spin up a cluster. We very, people used words like that. That's >>Right. And before arlon you kind of had to do all of that using a different set of tools as, as I explained. So with Armon you can kind of express everything together. You can say I want a cluster with a health monitoring stack and a logging stack and this ingress controller and I want these applications and these security policies. You can describe all of that using something we call a profile. And then you can stamp out your app, your applications and your clusters and manage them in a very, so >>Essentially standard creates a mechanism. Exactly. Standardized, declarative kind of configurations. And it's like a playbook. You deploy it. Now what's there is between say a script like I'm, I have scripts, I could just automate scripts >>Or yes, this is where that declarative API and infrastructures configuration comes in, right? Because scripts, yes you can automate scripts, but the order in which they run matters, right? They can break, things can break in the middle and, and sometimes you need to debug them. Whereas the declarative way is much more expressive and powerful. You just tell the system what you want and then the system kind of figures it out. And there are these things about controllers which will in the background reconcile all the state to converge towards your desire. It's a much more powerful, expressive and reliable way of getting things done. >>So infrastructure has configuration is built kind of on, it's as super set of infrastructures code because it's >>An evolution. >>You need edge's code, but then you can configure the code by just saying do it. You basically declaring and saying Go, go do that. That's right. Okay, so, alright, so cloud native at scale, take me through your vision of what that means. Someone says, Hey, what does cloud native at scale mean? What's success look like? How does it roll out in the future as you, not future next couple years? I mean people are now starting to figure out, okay, it's not as easy as it sounds. Could be nice, it has value. We're gonna hear this year coan a lot of this. What does cloud native at scale >>Mean? Yeah, there are different interpretations, but if you ask me, when people think of scale, they think of a large number of deployments, right? Geographies, many, you know, supporting thousands or tens or millions of, of users there, there's that aspect to scale. There's also an equally important a aspect of scale, which is also something that we try to address with Arran. And that is just complexity for the people operating this or configuring this, right? So in order to describe that desired state and in order to perform things like maybe upgrades or updates on a very large scale, you want the humans behind that to be able to express and direct the system to do that in, in relatively simple terms, right? And so we want the tools and the abstractions and the mechanisms available to the user to be as powerful but as simple as possible. So there's, I think there's gonna be a number and there have been a number of CNCF and cloud native projects that are trying to attack that complexity problem as well. And Arlon kind of falls in in that >>Category. Okay, so I'll put you on the spot road that CubeCon coming up and obviously this will be shipping this segment series out before. What do you expect to see at Coan this year? What's the big story this year? What's the, what's the most important thing happening? Is it in the open source community and also within a lot of the, the people jogging for leadership. I know there's a lot of projects and still there's some white space in the overall systems map about the different areas get run time and there's ability in all these different areas. What's the, where's the action? Where, where's the smoke? Where's the fire? Where's the piece? Where's the tension? >>Yeah, so I think one thing that has been happening over the past couple of cons and I expect to continue and, and that is the, the word on the street is Kubernetes is getting boring, right? Which is good, right? >>Boring means simple. >>Well, well >>Maybe, >>Yeah, >>Invisible, >>No drama, right? So, so the, the rate of change of the Kubernetes features and, and all that has slowed but in, in a, in a positive way. But there's still a general sentiment and feeling that there's just too much stuff. If you look at a stack necessary for hosting applications based on Kubernetes, there are just still too many moving parts, too many components, right? Too much complexity. I go, I keep going back to the complexity problem. So I expect Cube Con and all the vendors and the players and the startups and the people there to continue to focus on that complexity problem and introduce further simplifications to, to the stack. >>Yeah. Vic, you've had an storied career, VMware over decades with them obviously in 12 years with 14 years or something like that. Big number co-founder here at Platform. Now you guys have been around for a while at this game. We, man, we talked about OpenStack, that project you, we interviewed at one of their events. So OpenStack was the beginning of that, this new revolution. And I remember the early days it was, it wasn't supposed to be an alternative to Amazon, but it was a way to do more cloud cloud native. I think we had a cloud ERO team at that time. We would to joke we, you know, about, about the dream. It's happening now, now at Platform nine. You guys have been doing this for a while. What's the, what are you most excited about as the chief architect? What did you guys double down on? What did you guys tr pivot from or two, did you do any pivots? Did you extend out certain areas? Cuz you guys are in a good position right now, a lot of DNA in Cloud native. What are you most excited about and what does Platform nine bring to the table for customers and for people in the industry watching this? >>Yeah, so I think our mission really hasn't changed over the years, right? It's been always about taking complex open source software because open source software, it's powerful. It solves new problems, you know, every year and you have new things coming out all the time, right? OpenStack was an example when the Kubernetes took the world by storm. But there's always that complexity of, you know, just configuring it, deploying it, running it, operating it. And our mission has always been that we will take all that complexity and just make it, you know, easy for users to consume regardless of the technology, right? So the successor to Kubernetes, you know, I don't have a crystal ball, but you know, you have some indications that people are coming up of new and simpler ways of running applications. There are many projects around there who knows what's coming next year or the year after that. But platform will a, platform nine will be there and we will, you know, take the innovations from the the community. We will contribute our own innovations and make all of those things very consumable to customers. >>Simpler, faster, cheaper. Exactly. Always a good business model technically to make that happen. Yes. Yeah, I think the, the reigning in the chaos is key, you know, Now we have now visibility into the scale. Final question before we depart this segment. What is at scale, how many clusters do you see that would be a watermark for an at scale conversation around an enterprise? Is it workloads we're looking at or, or clusters? How would you, Yeah, how would you describe that? When people try to squint through and evaluate what's a scale, what's the at scale kind of threshold? >>Yeah. And, and the number of clusters doesn't tell the whole story because clusters can be small in terms of the number of nodes or they can be large. But roughly speaking when we say, you know, large scale cluster deployments, we're talking about maybe hundreds, two thousands. >>Yeah. And final final question, what's the role of the hyperscalers? You got AWS continuing to do well, but they got their core ias, they got a PAs, they're not too too much putting a SaaS out there. They have some SaaS apps, but mostly it's the ecosystem. They have marketplaces doing over $2 billion billions of transactions a year and, and it's just like, just sitting there. It hasn't really, they're now innovating on it, but that's gonna change ecosystems. What's the role the cloud play in the cloud native of its scale? >>The, the hyperscalers, >>Yeahs Azure, Google. >>You mean from a business perspective? Yeah, they're, they have their own interests that, you know, that they're, they will keep catering to, they, they will continue to find ways to lock their users into their ecosystem of services and, and APIs. So I don't think that's gonna change, right? They're just gonna keep, >>Well they got great I performance, I mean from a, from a hardware standpoint, yes, that's gonna be key, right? >>Yes. I think the, the move from X 86 being the dominant way and platform to run workloads is changing, right? That, that, that, that, and I think the, the hyperscalers really want to be in the game in terms of, you know, the the new risk and arm ecosystems and the platforms. >>Yeah, not joking aside, Paul Morritz, when he was the CEO of VMware, when he took over once said, I remember our first year doing the cube. Oh the cloud is one big distributed computer, it's, it's hardware and he got software and you got middleware and he kind over, well he's kind of tongue in cheek, but really you're talking about large compute and sets of services that is essentially a distributed computer. >>Yes, >>Exactly. It's, we're back on the same game. Vic, thank you for coming on the segment. Appreciate your time. This is cloud native at scale special presentation with Platform nine. Really unpacking super cloud Arlon open source and how to run large scale applications on the cloud Cloud Native Phil for developers and John Furrier with the cube. Thanks for Washington. We'll stay tuned for another great segment coming right up. Hey, welcome back everyone to Super Cloud 22. I'm John Fur, host of the Cuba here all day talking about the future of cloud. Where's it all going? Making it super multi-cloud clouds around the corner and public cloud is winning. Got the private cloud on premise and edge. Got a great guest here, Vascar Gorde, CEO of Platform nine, just on the panel on Kubernetes. An enabler blocker. Welcome back. Great to have you on. >>Good to see you >>Again. So Kubernetes is a blocker enabler by, with a question mark. I put on on that panel was really to discuss the role of Kubernetes. Now great conversation operations is impacted. What's interest thing about what you guys are doing at Platform nine? Is your role there as CEO and the company's position, kind of like the world spun into the direction of Platform nine while you're at the helm? Yeah, right. >>Absolutely. In fact, things are moving very well and since they came to us, it was an insight to call ourselves the platform company eight years ago, right? So absolutely whether you are doing it in public clouds or private clouds, you know, the application world is moving very fast in trying to become digital and cloud native. There are many options for you do on the infrastructure. The biggest blocking factor now is having a unified platform. And that's what we, we come into, >>Patrick, we were talking before we came on stage here about your background and we were gonna talk about the glory days in 2000, 2001, when the first as piece application service providers came out, kind of a SaaS vibe, but that was kind of all kind of cloudlike. >>It wasn't, >>And and web services started then too. So you saw that whole growth. Now, fast forward 20 years later, 22 years later, where we are now, when you look back then to here and all the different cycles, >>I, in fact you, you know, as we were talking offline, I was in one of those ASPs in the year 2000 where it was a novel concept of saying we are providing a software and a capability as a service, right? You sign up and start using it. I think a lot has changed since then. The tooling, the tools, the technology has really skyrocketed. The app development environment has really taken off exceptionally well. There are many, many choices of infrastructure now, right? So I think things are in a way the same but also extremely different. But more importantly now for any company, regardless of size, to be a digital native, to become a digital company is extremely mission critical. It's no longer a nice to have everybody's in the journey somewhere. >>Everyone is going digital transformation here. Even on a so-called downturn recession that's upcoming inflation's here. It's interesting. This is the first downturn in the history of the world where the hyperscale clouds have been pumping on all cylinders as an economic input. And if you look at the tech trends, GDPs down, but not tech. >>Nope. >>Cuz the pandemic showed everyone digital transformation is here and more spend and more growth is coming even in, in tech. So this is a unique factor which proves that that digital transformation's happening and company, every company will need a super cloud. >>Everyone, every company, regardless of size, regardless of location, has to become modernize their infrastructure. And modernizing Infras infrastructure is not just some new servers and new application tools, It's your approach, how you're serving your customers, how you're bringing agility in your organization. I think that is becoming a necessity for every enterprise to survive. >>I wanna get your thoughts on Super Cloud because one of the things Dave Ante and I want to do with Super Cloud and calling it that was we, I, I personally, and I know Dave as well, he can, I'll speak from, he can speak for himself. We didn't like multi-cloud. I mean not because Amazon said don't call things multi-cloud, it just didn't feel right. I mean everyone has multiple clouds by default. If you're running productivity software, you have Azure and Office 365. But it wasn't truly distributed. It wasn't truly decentralized, it wasn't truly cloud enabled. It didn't, it felt like they're not ready for a market yet. Yet public clouds booming on premise. Private cloud and Edge is much more on, you know, more, more dynamic, more real. >>Yeah. I think the reason why we think super cloud is a better term than multi-cloud. Multi-cloud are more than one cloud, but they're disconnected. Okay, you have a productivity cloud, you have a Salesforce cloud, you may have, everyone has an internal cloud, right? So, but they're not connected. So you can say okay, it's more than one cloud. So it's you know, multi-cloud. But super cloud is where you are actually trying to look at this holistically. Whether it is on-prem, whether it is public, whether it's at the edge, it's a store at the branch. You are looking at this as one unit. And that's where we see the term super cloud is more applicable because what are the qualities that you require if you're in a super cloud, right? You need choice of infrastructure, you need, but at the same time you need a single pain, a single platform for you to build your innovations on regardless of which cloud you're doing it on, right? So I think Super Cloud is actually a more tightly integrated orchestrated management philosophy we think. >>So let's get into some of the super cloud type trends that we've been reporting on. Again, the purpose of this event is to, as a pilots, to get the conversations flowing with with the influencers like yourselves who are running companies and building products and the builders, Amazon and Azure are doing extremely well. Google's coming up in third cloudworks in public cloud. We see the use cases on premises use cases. Kubernetes has been an interesting phenomenon because it's become from the developer side a little bit, but a lot of ops people love Kubernetes. It's really more of an ops thing. You mentioned OpenStack earlier. Kubernetes kind of came out of that open stack. We need an orchestration and then containers had a good shot with, with Docker. They re pivoted the company. Now they're all in an open source. So you got containers booming and Kubernetes as a new layer there. What's the, what's the take on that? What does that really mean? Is that a new defacto enabler? It >>Is here. It's for here for sure. Every enterprise somewhere else in the journey is going on. And you know, most companies are, 70 plus percent of them have won two, three container based, Kubernetes based applications now being rolled out. So it's very much here, it is in production at scale by many customers. And the beauty of it is, yes, open source, but the biggest gating factor is the skill set. And that's where we have a phenomenal engineering team, right? So it's, it's one thing to buy a tool >>And just be clear, you're a managed service for Kubernetes. >>We provide, provide a software platform for cloud acceleration as a service and it can run anywhere. It can run in public private. We have customers who do it in truly multi-cloud environments. It runs on the edge, it runs at this in stores are thousands of stores in a retailer. So we provide that and also for specific segments where data sovereignty and data residency are key regulatory reasons. We also un OnPrem as an air gap version. >>Can you give an example on how you guys are deploying your platform to enable a super cloud experience for your >>Customer? Right. So I'll give you two different examples. One is a very large networking company, public networking company. They have, I dunno, hundreds of products, hundreds of r and d teams that are building different, different products. And if you look at few years back, each one was doing it on a different platforms but they really needed to bring the agility and they worked with us now over three years where we are their build test dev pro platform where all their products are built on, right? And it has dramatically increased their agility to release new products. Number two, it actually is a light out operation. In fact the customer says like, like the Maytag service person cuz we provide it as a service and it barely takes one or two people to maintain it for them. >>So it's kinda like an SRE vibe. One person managing a >>Large 4,000 engineers building infrastructure >>On their tools, >>Whatever they want on their tools. They're using whatever app development tools they use, but they use our platform. >>What benefits are they seeing? Are they seeing speed? >>Speed, definitely. Okay. Definitely they're speeding. Speed uniformity because now they're building able to build, so their customers who are using product A and product B are seeing a similar set of tools that are being used. >>So a big problem that's coming outta this super cloud event that we're, we're seeing and we've heard it all here, ops and security teams cuz they're kind of too part of one theme, but ops and security specifically need to catch up speed wise. Are you delivering that value to ops and security? Right. >>So we, we work with ops and security teams and infrastructure teams and we layer on top of that. We have like a platform team. If you think about it, depending on where you have data centers, where you have infrastructure, you have multiple teams, okay, but you need a unified platform. Who's your buyer? Our buyer is usually, you know, the product divisions of companies that are looking at or the CTO would be a buyer for us functionally cio definitely. So it it's, it's somewhere in the DevOps to infrastructure. But the ideal one we are beginning to see now many large corporations are really looking at it as a platform and saying we have a platform group on which any app can be developed and it is run on any infrastructure. So the platform engineering teams, >>You working two sides of that coin. You've got the dev side and then >>And then infrastructure >>Side side, okay. >>Another customer like give you an example, which I would say is kind of the edge of the store. So they have thousands of stores. Retail, retail, you know food retailer, right? They have thousands of stores that are on the globe, 50,000, 60,000. And they really want to enhance the customer experience that happens when you either order the product or go into the store and pick up your product or buy or browse or sit there. They have applications that were written in the nineties and then they have very modern AIML applications today. They want something that will not have to send an IT person to install a rack in the store or they can't move everything to the cloud because the store operations has to be local. The menu changes based on, It's a classic edge. It's classic edge. Yeah. Right. They can't send it people to go install rack access servers then they can't sell software people to go install the software and any change you wanna put through that, you know, truck roll. So they've been working with us where all they do is they ship, depending on the size of the store, one or two or three little servers with instructions that >>You, you say little servers like how big one like a net box box, like a small little >>Box and all the person in the store has to do like what you and I do at home and we get a, you know, a router is connect the power, connect the internet and turn the switch on. And from there we pick it up. >>Yep. >>We provide the operating system, everything and then the applications are put on it. And so that dramatically brings the velocity for them. They manage >>Thousands of them. True plug and play >>Two, plug and play thousands of stores. They manage it centrally. We do it for them, right? So, so that's another example where on the edge then we have some customers who have both a large private presence and one of the public clouds. Okay. But they want to have the same platform layer of orchestration and management that they can use regardless of the location. So >>You guys got some success. Congratulations. Got some traction there. It's awesome. The question I want to ask you is that's come up is what is truly cloud native? Cuz there's lift and shift of the cloud >>That's not cloud native. >>Then there's cloud native. Cloud native seems to be the driver for the super cloud. How do you talk to customers? How do you explain when someone says what's cloud native, what isn't cloud native? >>Right. Look, I think first of all, the best place to look at what is the definition and what are the attributes and characteristics of what is truly a cloud native, is CNC foundation. And I think it's very well documented where you, well >>Con of course Detroit's >>Coming here, so, so it's already there, right? So, so we follow that very closely, right? I think just lifting and shifting your 20 year old application onto a data center somewhere is not cloud native. Okay? You can't put to cloud native, you have to rewrite and redevelop your application and business logic using modern tools. Hopefully more open source and, and I think that's what Cloudnative is and we are seeing a lot of our customers in that journey. Now everybody wants to be cloudnative, but it's not that easy, okay? Because it's, I think it's first of all, skill set is very important. Uniformity of tools that there's so many tools there. Thousands and thousands of tools you could spend your time figuring out which tool to use. Okay? So I think the complexities there, but the business benefits of agility and uniformity and customer experience are truly them. >>And I'll give you an example. I don't know how clear native they are, right? And they're not a customer of ours, but you order pizzas, you do, right? If you just watch the pizza industry, how dominoes actually increase their share and mind share and wallet share was not because they were making better pizzas or not, I don't know anything about that, but the whole experience of how you order, how you watch what's happening, how it's delivered. There were a pioneer in it. To me, those are the kinds of customer experiences that cloud native can provide. >>Being agility and having that flow to the application changes what the expectations of the, for the customer. >>Customer, the customer's expectations change, right? Once you get used to a better customer experience, you learn >>Best car. To wrap it up, I wanna just get your perspective again. One of the benefits of chatting with you here and having you part of the Super Cloud 22 is you've seen many cycles, you have a lot of insights. I want to ask you, given your career where you've been and what you've done and now the CEO platform nine, how would you compare what's happening now with other inflection points in the industry? And you've been, again, you've been an entrepreneur, you sold your company to Oracle, you've been seeing the big companies, you've seen the different waves. What's going on right now put into context this moment in time around Super >>Cloud. Sure. I think as you said, a lot of battles. Cars being been, been in an asp, been in a realtime software company, being in large enterprise software houses and a transformation. I've been on the app side, I did the infrastructure right and then tried to build our own platforms. I've gone through all of this myself with a lot of lessons learned in there. I think this is an event which is happening now for companies to go through to become cloud native and digitalize. If I were to look back and look at some parallels of the tsunami that's going on is a couple of paddles come to me. One is, think of it, which was forced to honors like y2k. Everybody around the world had to have a plan, a strategy, and an execution for y2k. I would say the next big thing was e-commerce. I think e-commerce has been pervasive right across all industries. >>And disruptive. >>And disruptive, extremely disruptive. If you did not adapt and adapt and accelerate your e-commerce initiative, you were, it was an existence question. Yeah. I think we are at that pivotal moment now in companies trying to become digital and cloudnative that know that is what I see >>Happening there. I think that that e-commerce was interesting and I think just to riff with you on that is that it's disrupting and refactoring the business models. I think that is something that's coming out of this is that it's not just completely changing the game, it's just changing how you operate, >>How you think, and how you operate. See, if you think about the early days of eCommerce, just putting up a shopping cart didn't made you an eCommerce or an E retailer or an e e customer, right? Or so. I think it's the same thing now is I think this is a fundamental shift on how you're thinking about your business. How are you gonna operate? How are you gonna service your customers? I think it requires that just lift and shift is not gonna work. >>Mascar, thank you for coming on, spending the time to come in and share with our community and being part of Super Cloud 22. We really appreciate, we're gonna keep this open. We're gonna keep this conversation going even after the event, to open up and look at the structural changes happening now and continue to look at it in the open in the community. And we're gonna keep this going for, for a long, long time as we get answers to the problems that customers are looking for with cloud cloud computing. I'm Sean Feer with Super Cloud 22 in the Cube. Thanks for watching. >>Thank you. Thank you, John. >>Hello. Welcome back. This is the end of our program, our special presentation with Platform nine on cloud native at scale, enabling the super cloud. We're continuing the theme here. You heard the interviews Super Cloud and its challenges, new opportunities around the solutions around like Platform nine and others with Arlon. This is really about the edge situations on the internet and managing the edge multiple regions, avoiding vendor lock in. This is what this new super cloud is all about. The business consequences we heard and and the wide ranging conversations around what it means for open source and the complexity problem all being solved. I hope you enjoyed this program. There's a lot of moving pieces and things to configure with cloud native install, all making it easier for you here with Super Cloud and of course Platform nine contributing to that. Thank you for watching.

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

>>Hello, everyone. Welcome to the cubes presentation of the 80 startup showcase marketing technology, emerging cloud scale customer experiences. This is season two, episode three of the ongoing series covering the exciting startups from the, a AWS ecosystem to talk about all the top trends and also featuring the key customers. I'm your host, John ER, today we're joined by Louis Fernando, Denise vice president of peak pay social and John Kim, the CEO of Sandberg to learn about the future of what's going on in fostering deeper customer relationships. Gentlemen, thanks for joining us in the cube showcase, >>Excited to be here. >>So John talk about Sendbird real quick set the table for us. What you guys do, you got a customer here to highlight some of the key things you're doing with customers, the value proposition what's Sendbird and what's the showcase about, >>Yeah, I'm really excited to be here. Uh, I'm John founder, C of Sandberg. So Sandberg is the worst leading conversations platform for mobile applications. We can power user to user conversations in mobile applications, as well as the brand to user conversations such as marketing sales and support. So, uh, today we power over quarter billion users on a monthly basis. Uh, we have, you know, through over 300 employees across seven different countries around the world, we work with some of the world's leading, uh, uh, customers such as big pay that we are going to showcase today, along with other, uh, wonderful customers like DoorDash, Reddit, <inaudible> sports and so forth. We have collectively raised over 200 million in funding. Um, so that's kind of where we are today. >>Well, it's always great to have, uh, one great success. Uh, good funding, more important is the customers. And I love showcases where the customers do the talking, because that means you've got some success stories. Louise, talk about, um, are you happy customer? What's it like working with Sandberg? Give us the, give us the scoop. >>So sandbar is being a great partner with us. So pick pay is a Brazilian payment app. We're at a FinTech here with more than 30 million active users using everyday pick pay to pay everything. So the, the, the majority of the payments are between peers, between people. So sandbar is, is helping us to improve a lot this journey to make it more pleasant between every everyone who are using big, big. So we are here, let's talk and it's a >>Pleasure. Yeah, it's awesome. Well, I great to have you guys on great, great relationship. And one of the things we've been talking about on the cube, if the folks watching that know our audience, no we've been banging the, the drum hard on this new world and this new patterns of user expectations and building relationships in this new digital world is not about the old way, the old MarTech way. There are new new use cases, new expectations by the consumers, John, that are, that are bringing up new opportunities, but also expectations. It's not about, I mean, I mean, if someone's using discord, for example, cuz they're gamers, they're done discord. If they want to communicate with, with slack, they, I do slack, SMS, kind of old hat. You got WhatsApp, you've got all these now peer to peer organic connections, multiple channels. This is all the new world. What's your vision on this new relationship building digital communication world. >>Yeah. So I, I think you brought a really good point there. One of the most frequently used applications in the world today are messaging applications across any countries, any region, any culture, if you look at the most frequently used and most longest used applications are usually some form of a, a messaging application. Now the end users or the customers in the world are so used to using, uh, uh, such a, you know, frictionless ver very responsive, modern experience on those messaging applications. What we want to help with the business around the world, the 99.9% of the business around the world don't have those really te knowledge or user experience expertise in messaging. So we want to help our businesses, help our customers be able to harness the power of modern messaging capabilities and then be able to embed it in their own business so that they can retain their users on their platform, engage with them in the con context that their, uh, what their business is about so that they can not only, uh, control or provide a better user experience, but also be able to, uh, understand their users better, uh, understand what they're doing on their businesses, be able to own and, uh, control the data in a more secure and safe way. >>So really it's uh, we're like the Robin hood of the world trying to keep superpower yeah. Back to the businesses. >>Yeah. Deal from the rich idea, the messaging scale. Bring that to everybody else. I love that. Uh, and you got kind of this double int Robin hood kind of new for the new generation finance. This is about taking the advantage of scalable platforms, monopolies, right. And giving the entrepreneur an opportunity to have that same capability feature, rich Louise PPE. You guys used Sendbird together. You have to level up, you gotta compete with those big monopolies to pride, scalable conversations. Okay. How did you engage this? What was your success path look? What was it look like? >>Yeah. When we look to this majority, the bigger chat apps that we have nowadays in the market, we are looking to them and then Brazilians are using for their daily course, but Brazilians are paying every day millions and millions of payments. And these chat apps are not, uh, able to, to, to deal with these payments. So what we are doing here is that, uh, providing a solution where every conversation that are going to happen before, during, or after a payment between the, the people, they would, uh, uh, have a nice platform that could afford all, all of their emotions and discussions that they have to do before or after the payment. So we are putting together the chat platform and we with the payment platform. So that's, that's what we are doing now. >>Okay. So just so I get this right. You're using Sandberg essentially integrated your mobile payment experience. Okay. Which is your app you're Sandberg to bring that scalability into the, into the social app application into the app itself. Is that right? >>Yes. Perfect. Integrated with the payment journey. So everybody who is going to pay, they need to find the one, the, the one they want to pay and then they can chat and conclude the payment through the platform. Yeah. I >>Mean, why not have it right there at point of, uh, transaction. Right. Um, why did you, um, decide to, um, to use conversations in your mobile wallet? Just curious. >>So it's important to say that we were born social. We born in 2012. So when our main main product was peer to peer payments, so everybody were sending money to a friend requesting or charging their family. So a service provider. And once we, we started as a social platform in that period. In that moment, we are just focusing in likes comments and like public interactions and the word become more private. And as soon we under understood this situation, we decided to move from a public feed to a private, to a private interaction. So that's, uh, that then the, the conversational space was the solution for that moving from a public interaction to a private interaction. So between the peers, which are involved in the, the transaction. So that's why we are providing the chat solution integrated with payments. >>That's a great call. John, just give some context here, again, for the folks watching this is now expected, this integrated experience. What's your, how would you talk to folks out there? I mean, first of all, I, I, I see it clearly, you've got an app, you gotta have all this integration and you need it scaling to reach features. Talk about your view on that. Is that the, is that what's happening here? What's, what's the real dynamic here. What's the, the big trend. >>Yeah. One thing that's, uh, super interesting about, uh, uh, like messaging experience in general, if you think about any kind of conversations that's happening, uh, digitally between human beings, more and more conversations, just like what Louis mentioned earlier are happening between in a private setting, even on applications, whether it be slack or other forms of communication, uh, more hap uh, more conversations happen through either one-on-one conversations or in a private small group settings. And because people feel more secure, uh, safe to have, uh, more intimate conversations. So even when you're making transactions is more, you know, there's a higher trust and, uh, people tend to engage, uh, far better on platforms through these kind of private conversations. That's where we kind of come in, whether it be, you want to set a one-on-one conversations or with a group conversation. And then ultimately if you want to take it public in a large group setting, you can also support, you know, thousands, if not, you know, hundreds of thousands of people, uh, engaging a public forum as well. So all of those capabilities can be implemented using something Ember, but again, the world is, uh, right now the businesses and how the user are, are interacting with this with each other is all happening through digital conversations. And we're seeing more and more of that happening, uh, throughout the life cycle of our company. >>Yeah, just as a sidebar, I was just talking to a venture in San Francisco the other day, and we're talking about the future of security and SAS and cloud scale. And, you know, the conversation went to more of, is it SAS? Is it platform as a service Louis? I wanna get your thoughts because, you know, you're seeing more and more needs for customization, low code, no code. You're seeing these trends. You gotta built in security. So, you know, the different, the old SAS model was softwares a service, but now that's everything in the cloud is softwares a service. So, but you need to have that platform kind of vibe for scale customization, maybe some developer integration, cuz apps are becoming the, the touchpoint. So can you walk us through what your vision was when you decided to integrate, chat into your app and how did you see that chat, changing the customer experience for payments and across your user journey? Cause, I mean, it's obvious now looking at it, but it might not have been for some. What was your, what was your vision? And when you had to do that, >>When you looked to Brazilian reality, we can see those in, uh, payment apps. All of them are focused on the transactional moment. And as soon as we started to think, how could be, how could our journey be better, more pleased than the others and make people want to be here and to use and to open our app every day is just about making the interaction with the peers easier, even with a merchant or even with my friend. So the main point that our first step was just to connect all, all the users between themselves to payments. The second step we are providing now is using the chat platform, the send bird platform as a platform for peak pay. So we are going to provide more best information. We're going to provide a better customer experience through the support and everything. So, um, this, this, this interaction or this connection, this partnership with Sandberg are going to unlock a new level of service for our users. And at the same time, a much more pleasant or a more pleasant journey for them while they are using the, the app for a, a simple payment, or if they are going to look for a group objective or maybe a crowdfund in the future or a group to decide, or just to pay something. So we are then locking a new level of interaction between the peers between the people and the users that are, that are involved into this, this payment or this simple transaction, we are making it more conversational. >>Yeah. You're making the application more valuable. We're gonna get to that in the next segment about, you know, the future of apps one and done, you see a lot of sports apps, oh, this big tournament, you know, and then you use it and then you never use it again until next year. You know, you have very time specific apps, but now you guys are smart to kind of build this in, but I gotta ask you a question because a lot of developers and companies out there always have this buy versus build decision. Why did you decide to use Sendbird versus building it in house? It's always kind of like the big trade off. >>Yeah. First of all, it will take a long, long time for us to achieve a major platform as Sandberg. And we are not a chat platform. So we are going to use this social interaction to improve the payment platform that we have. So when we look to the market and we found Sandberg, then we thought, okay, this guys, they are a real platform. And through the conversations, we are seeing that they are roadmap working in synergy with our roadmap. And then we can, we could start to deliver value to our, to our users in a fastest way. Could you imagine it spending 2, 3, 4 years to develop something like sand? And even when we achieve this point, probably our solution will be, would be weaker than, than Sandberg. So it was like no brainer to do that. Yeah. Because we want to improve the payment journey, not to do a chat, only a chat platform. So that's why we are working together to prove it's >>Really, you start to see these plugins, these, you know, look at Stripe for payments, for instance, right. And here in the success they've had, you know, people want to plug in for services. So John, I gotta ask you about, um, about the, the complexity that goes into it. The trust required that they have for you, you have to do this heavy lifting, you gotta provide the confidence that your service is gonna have to scale the compliance. Talk about that. What do you guys do under the covers that make this easy again, great business model, heavy lifting done by you. Seamless integration provide that value. That's why business is good, but there's a lot going on share what's happening under the, under the covers. >>Yeah. Um, before going to like the technical, like intricacy of what we do just to provide a little bit of background context on why we even started this business is we, uh, this is my second startup. My first company was a gaming company. We had built like chat three, four times just for our own game. So we were basically, we felt like we were reinventing the wheel. And then we actually went on a buyer's journey when we were building a social application, uh, uh, for, for, uh, uh, building our own community. We tried to actually be a buyer to see if we can actually find a solution. We want to use turns out that there weren't a lot of like sophisticated, you know, top notch, modern, uh, uh, chat experience that we can build using some other third party solutions. So we had to build all of that ourselves, which became the foundation for se today. >>And what we realized is that for most companies like using a building, the most sophisticated chat is probably not going to be their highest priority in case a pick pay will be, you know, financial transactions and all the other business that can be built on and hosted by platform like pick pay. But, you know, building the most topnotch chat experience would be a priority for a company like let's say WhatsApp or, or telegram, but it will probably not be the priority for, you know, major gaming companies, food delivery companies, finance companies, chat is not the highest priority. That's kind of where we come in, cuz chat is the highest priority for us. And we also have a privilege of working with some of the other, uh, world industry, uh, industry leaders. So by, uh, having this collective experience, working with the industry leaders, we get, uh, uh, technological superiority, being able to, uh, scale to, you know, hundreds of millions of users on a monthly basis. Also the security and the compliances by working with some of the largest commercial banks on some of the largest FinTech applications across the globe. So we have, you know, security, compliances, all the industry, best practices that are built in and all the new topnotch user experience that we are, uh, building with other customers can be also be, uh, utilized by a customer like pick pay. So you get this collective almost like evolutionary benefit. Yeah. By, uh, working with a company like us, >>You get a lot of economies of scale. Could you mind just sharing the URL for the company? So folks watching can go get, do a deep dive. Cause I'm you guys got a lot of, lot of, um, certifications under the covers, a lot of things you guys do. So you mind just sharing URL real quick. >>Yeah. So our company, uh, you can find everything about our company on sandberg.com like carrot pigeon. So, uh, you're sending a bird to send a message. So, uh, yeah. send.com >>All so let's get it to the application, cuz this is really interesting cuz Chad is table stakes now, but things are evolving beyond Chad. You gotta integrate that user experience. It's data. Now you gotta have scale. I mean, you know, people who wanna roll their own chat will find out there's a lot of client side and backend scale issues. Right. You can have a tsunami river like on Twitch, you know, you chat. I mean that, could you got client side issues, data scale. <laugh> right. You got backend. Um, Louis, talk about that dynamic because you know, as you start to scale, you want to rely on that. Talk about this dynamic, how apps now are integrating all these new features. So is it, are apps gonna go like more multifunctional? Do you see apps one and done? What's the, how do you guys see this app world playing out and where does, does the Sendbird fit in? And >>Just, just let me know better John, about the performance or about the, just, just let me >>Oh, slow with performance. Uh, performance is huge, right? You gotta have no one wants to have lag on, on chat. >>Okay. So, um, big pay when we look to the payments have millions, thousands of, of, of payments happen happening every second. So what we are doing now is moving all the payments through a conversation. So it always happened inside the conversation. So since from the first moment, um, every second counts to convert this client. And since from the first moment we never saw in, on Sandberg, any issue about that. And even when we have a question or something that we need to improve the team we're working together. So that that's, those are the points that are making us to work together and to make things going pretty fast. When we look to the users who are going to use chat, they are, their intention is three times better than the users who are not using payments through the chat. They are average. Average spent is three times higher too. >>So they, they are making more connections. They are chatting with their friends. They are friends are here. So the network effect is stronger. So if they're going to pay and they need to wait one more second, two seconds to conclude the payment, probably they will not go into choose paying through the, again, they will use only the wallet, only the code, only the Alliance of the user. So that's is so important for us to perform really, really fast. And then this is what we are finding. And this is what is happening with the integration with Sandberg. >>And what's interesting is, is that the by build chat with conversation, we just had a minute ago kind of plays in here. You get the benefits of Sandberg, but now your transactional fidelity is in the chat <laugh> that you don't build that you rely on them on. So again, that's an interesting dynamic. This is the future of apps, John, this is where it matters. The engagement. This is what you talk about is the new, the new digital experience who would've thought that five, 10 years ago. I mean, chat was just like, Hey, what's going around direct message. Now it's integral part of the app. What's your reading. >>Yeah. I mean, we're seeing that across, uh, uh, to Lewis's point, not just transactions, but like marketing messages are now being sent through chat. So the marketing is no longer just about like giving discount calls, but you can actually reengage with the brand. Uh, also support is becoming more real time through chat. So you're actually building a relationship. The support agents have a better context about the previous conversations and the transactions, the sales conversations, even like building, uh, building alerts, notification, all those things are now, uh, happening through conversations. And that's a better way for customers to engage with the brand cuz you actually, you're actually building a better relationship and also, uh, being able to trust the brand more because there is a channel for you to communicate and, and, and be seen and be heard, uh, by the brand. So we do believe that that's the future of the business and how more and more, uh, brands will be building relationships with their customers. >>Yeah. I love, I love your business model. I think it's really critical. And I think that stickiness is a real, uh, call out point there and the brand, the co-branding and the branding capability, but also really quickly in the last minute we have John and Luis, if you don't mind talking about security, I mean, I can't go a day now without getting an SMS scam, uh, text, uh, you seeing it now on WhatsApp. I mean, I don't even use telegram anymore. I mean, come on. So like, like this is now a problem. The old way has been infiltrated with spam and security issues. Security has to be there. The trust and security real quick, John, we'll start with you and we all Louis go, go ahead. >>No, no. Just, just to, to say how important is that we are not only a chatting platform. We are a payment platform, so we have money now, the transaction. So here in Brazil, we have all this safe, the, the, the layers, the security layers that we have in, on our app. And then we have the security layers provided from Sandburg. So, and when we look to the features, Sandberg are providing to us a lot of features that help users to feel safer like per refined profiles, like announcements, where it's a profile from peak pay, where the users can recognize. So this is peak pay talking with me. It's not a user trying to pass, trying to use big Bay's name to talk with me. So these issues is something that we are really, really, we really care about here because we are not only a chat platform. As I said before, we are a payment platform. We are a FinTech, we're at a digital bank. So we need to take care a lot and we don't have any complaint about it because Sandberg understood it. And then they, they, they are providing since the first moment with the perfect solutions and the user interface to make it simpler for the users to recognize that we speak, pay who is chatting with them, not a user with, with bad, bad intentions. >>Great, great insight, Louis. Thanks for sharing that, John really appreciate you guys coming on. Great showcase. Real final word. John will give you the final word folks watching out there. How do they engage with Sendbird? I want to integrate, I want to use your chat service. What do I do? Do I have to connect in as it managed service is the line of code. What do I do to get Sendbird? >>Yeah. So if you're a developer building a mobile application, simply come visit our website, we have a open documentation and SDK you can download and simply plug into your application. You can have a chat experience up and running matter of minutes, if not ours using our UI kit. So we want to make it as easy as possible for all the builders in the world to be able to harness the superpower of digital conversations. >>All right, great. Congratulations, John, on your success and all the growth and Louis, thanks for coming in, sharing the customer perspective and great insight. Thanks for coming on the showcase. Really appreciate it. Thanks for your time. >>Yeah. Thank you for having me. >>Okay. The a of us startup showcase season two, episode three here I'm John for your host. Thanks for watching.

>>The cube presents, Coon and cloud native con Europe, 2022. Brought to you by red hat, the cloud native computing foundation and its ecosystem partners. >>Welcome to Licia Spain and cube con cloud native con 2022 Europe. I'm Keith Townsend, along with Paul Gillon senior editor, enterprise architecture for Silicon angle. We're gonna talk to some amazing folks. Day two coverage of Q con cloud native con Paul. We did the wrap up yesterday. Great. A great back and forth about what en Rico about yesterday's, uh, session. What are you looking for to today? >>I'm looking for, uh, to understand better, uh, how Kubernetes is being put into production, the types of applications that are being built on top of it. Yesterday, we talked a lot about infrastructure today. I think we're gonna talk a little bit more about applications, including with our first guest. >>Yeah, I was speaking our first guest. We have ish Degan CPO chief product officer at Hazelcast Hazelcast has been on the program before, but you, this is your first time in the queue, correct? >>It, it is Keith. Yeah. Well, >>Welcome to been Cuban. So we're talking data, which is always a fascinating topic. Containers are, have been known for not being supportive of stateful applications. At least you shouldn't hold the traditional thought. You shouldn't hold stateful data in containers. Tell me about the relationship between Hazel cast and containers we're at Cuan. >>Yeah, so a little bit about, uh, Hazelcast. We are a real time data platform and, uh, we are not a database, but a data platform because we basically allow, uh, data at rest as well as data in motion. So you can imagine that if you're writing an application, you can basically query and join a data coming in events, as well as data, which might have been persisted. So you can do both stream processing as well as, you know, low latency data access. And, and this platform of course, is supported on all the clouds. And we kind of delegate the orchestration of this kind of scale out system to Kubernetes. Um, and you know, that provides a resiliency and many things which go along with that. >>So you say you don't, you're not a database platform. What are you used for to manage the data? >>So we are, uh, we are memory first. So we are, you know, we started with low latency applications, but then we realized that real time has really become a business term. It's it's more of a business SLA mm-hmm, <affirmative>, it's really the, we see the opportunity, the punctuated change, which is happening in the market today is about real time data access to real time. I mean, there are real time applications. Our customers are building around real time offers, um, realtime thread detection. I mean, just imagine, you know, one of our customers like B and P par bars, they have, they basically originate a loan while the customer is banking. So you are in an ATM machine and you swipe your card and you are asking for, you know, taking 50 euros out. And at that point they can actually originate a custom loan offer based on your existing balance you're existing request and your credit score in that moment. So that's a value moment for them and they actually saw 400% loan origination go up because of that, because nobody's gonna be thinking about a credit, uh, line of credit after they're done banking. So it's in that value moment and we allow basically our data platform allows you to have fast access to data and also process incoming streams. So not before they get stored, but as they're coming in. >>So if I'm a developer and cuon is definitely a conference for developer and I, I come to the booth and I hear <inaudible>, that's the end value. I, I hear what I can do with my application. I guess the question is, how do I get there? I mean, uh, if it's not a database, how do I make a call from a container to, from my microservice to Hazel cath? Like, do I think of this as a, uh, a CNI or, or C CSI? How do I access >>PA care? Yeah. So, so we, uh, you know, we are, our server is actually built in Java. So a lot of the application which get written on top of the data platform are basically accessing through Java APIs. Or as you have a.net shop, you can actually use.net API. So we are basically an API first platform and SQL is basically the polyglot way of accessing data, both streaming data, as well as it store data. So most of the application developers, a lot of it is run done in microservices, and they're doing these fast get inputs for data. So they, they have a key, they want to get to a customer, they give a customer ID. And the beauty is that, um, while they're processing the events, they can actually enrich it because you need contextual information as well. So going back to the ATM example, you know, at that event happened, somebody swiped the card and ask for 50 euros, and now you want more information like credit score information, all that needs to be combined in that, in that value moment. >>So we allow you to do those joins and, you know, the contextual information is very important. So you see a lot of streaming platform out there, which just do streaming, but if you're an application developer, like you asked, you have to basically do call out to a streaming platform to get, um, to do streaming analytics and then do another call to get the context of that. You know, what is the credit score for this customer? But whereas in our case, because the data platform supports both streaming as well as data at rest, you can do that in one call and, you know, you don't want to have the operational complexity to stand out. Two different scale out servers is, is, is, is humongous, right? I mean, you want to build your business application. So, >>So you are querying data streaming data and data rest yes. In the same query >>Yes. In the same query. And we are memory first. So what happens is that we store a lot of the hot data in memory. So we have a scale out Ram based server. So that's where you get the low latency from. In fact, last year we did a benchmark. We were able to process a billion events a second, uh, with 99% of the latency under 30 milliseconds. So that kind of processing and that kind of power is, and, and the most important thing is determinism. I mean, you know, there's a lot of, um, if you look at real time, what real time is, is about this predictable latency at scale, because ultimately your, your adhering to a business SLA is not about milliseconds or microsecond. It's what your business needs. If your business needs that you need to deny or, uh, approve a credit credit card transaction in 50 milliseconds, that's your business SLA, and you need that predictability for every transaction. >>So talk to us about how how's this packaged in consumed. Cause I'm hearing a, a bunch of server Ram I'm hearing numbers that we're trying to adapt away from at this conference. We don't wanna see the onlay. We just want to use it. >>Yeah. So, so we kind of take a bit that, that complexity of managing this scale out, um, uh, uh, cluster, which actually utilizes Rams from each server. And then, you know, if you, you can configure it so that the hard set of data is in Ram, but the data, which is, you know, not so hard can actually go into a tiered storage model. So we are memory first. So, but what you are doing is you're doing simple, it's an API. So you do basically a crud, right? You create records, you read them through SQL. So for you, it's, it's, it's kind of like how you access that database. And we also provide you, you know, real time is also a journey. I mean, a lot of customers, you know, you don't want to rip their existing system and deploy another kind of scale out platform. Right? So we, we see a lot of these use cases where they have a database and we can sit in between the database, a system of record and the application. So we are kind of in between there. So that's, that's the journey you can take to real time. >>How does Kubernetes, uh, containers and Kubernetes change the game for real time analytics? >>Yeah. So, uh, Kubernetes does change it because what's hap first of all, we service most of the operational workloads. So it's, it's more on the, a lot of our customers. We have most, most of the big banks credit card companies in financial services and retail. Those are the two big sectors for us. And first of all, you know, a lot of these operational workloads are moving to the cloud and with move to the cloud, they're actually taking their existing applications and, and moving to, you know, one of the providers and to kind of orchestrate this scale out platform, which does auto scaling, that's where the benefit comes from mm-hmm <affirmative>. And it also gives them the freedom of choice. So, you know, the Kubernetes is, you know, a standard which goes across cloud providers. So that gives them the benefit that they can actually take their application. And if they want, they can actually move it to a different, a different cloud provider because we take away the orchestration complexity, you know, in that abstraction layer. >>So what happens when I need to go really fast? I mean, I, I, I need, uh, I'm looking at bare metal and I'm looking at really scaling a, a, a homogeneous application in a single data center set of data centers. Is there a bare metal play here? >>Yes. There, there, there are some very, very, uh, like if you want microsecond latency, mm-hmm, <affirmative>, um, you know, we have customers who actually store two to four terabytes in Ram and, and they can actually stand up. Um, you know, again, it depends on what kind of deployment you want. You can either scale up or scale out, scaling up is expensive, you know, because those boxes are not cheap, but if you have a requirement like that, where there is sub millisecond or microphone latency requirement, you could actually store the entire data set. I mean, a lot of the operational data sets are under four terabytes. So it's not uncommon that you could actually take the entire operational transactional data set, actually move, move that to a pure Ram. But, uh, I think now we, we also see that these operational workloads are also, there's a need for analytics to be done on top as well. >>I mean, we, going back to the example I gave you, so this, this, uh, customer is not only doing stream crossing, they're also influencing a machine learning algorithm in that same, in the same kind of cycle in the life cycle. So they might have trained a machine learning or algorithm on a data lake somewhere, but once they're ready, they're actually influencing the ML algorithm in our kind of life cycle right there. So, you know, that that really brings analytics and transactions kind of together because after all transactions are where the real, you know, insights are. >>Yeah. I'm, I'm struggling a little bit with this, with these two different use cases where I have transactional basically a transactional database or transactional data platform alongside a analytics platform. Those are two, like they're two different things. I have a, you know, I, I have spinning rust for one, and then I have memory and, and MBME for another. Uh, and that requires tuning requires DBAs. It requires a lot of overhead, there seems to be some type of secret sauce going on here. >>Yeah. Yeah. So, I mean, you know, we, we basically say that if you are, if you have a business case where you want to make a decision, you know, you, the only chance to succeed is where you are not making a decision tomorrow based on today's data. Right? I mean, the only way to act on that data is today. So the act is a keyword here. We actually let you generate a realtime offer. We, we let you do credit card fraud detection. In that moment, the analytics is about knowing less about acting on it. Right? Most of our applications are machine critical. They're acting on real time. I think when you talk about like the data lakes there, there's actually a real time there as well, but it's about knowing, and we believe that the operational side is where, you know, that value moment is there, you know, what good is, is to know about something tomorrow, you know, if something wrong happened, I mean, it, yeah, so there's a latency squeeze there as well, but we are on, on more on the kind of transaction and operational side. >>I gotcha. Yeah. So help me understand, like integrations. A lot of the, the, when I think of transactions, I'm thinking of SAP, Oracle, where the process is done, or some legacy banking or not legacy or new modern banking app, how does the data get from one platform to a, to Hazel cast so I can make those >>Decisions? Yeah. So we have, uh, this, the streaming engine, we have has a whole bunch of connectors to a lot of data sources. So in fact, most of our use cases already have data sources underneath there, their databases there's KA connectors, you know, joining us because if you look at it, events is, are comprised of transactions. So something, a customer did, uh, a credit card swipe, right. And also events events could be machine or IOT. So it's really unique connectivity and data ingestion before you can process that. So we have, uh, a whole suite of connectors to kind of bring data in, in our platform. >>We've been talking a lot, these last couple of days about, uh, about the edge and about moving processing capability closer to the edge. How do you enable that? >>Yeah. So edge is actually very, very relevant because of what's happening is that, um, you know, if you, if you look at like a edge deployment use case, um, you know, we have a use case where data is being pushed from these different edge devices to cloud data warehouse. Right. But just imagine that you want to be filtering data at the, at, at where it is being originated from, and you wanna push only relevant data to, to maybe a central data lake where you might want to do, you know, train your machine learning models. Mm-hmm <affirmative> so that at the edge, we are actually able to process that data. So Hazel cast will allow you to actually write a data pipeline and do stream processing so that you might want to just push, you know, a part or a subset of data, which applies by the rules. Uh, so there's, there's a big, um, uh, I think edge is, you know, there's a lot of data being generated and you don't want like garbage and garbage out there's there's, there is there's filtration done at the edge. So that only the relevant data lands in a data, data lake or something like that. >>Well, Monash, we really appreciate you stopping by realtime data is an exciting area of coverage for the queue overall from Valencia Spain, I'm Keith Townsend, along with Paul Gillon, and you're watching the queue, the leader in high tech coverage.

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

>>Mm. >>Welcome back to the Cube. Special presentation. Simplifying Hybrid Cloud Brought to You by Cisco We're here with Vegas Rattana, who's the director of product management for you? CSS Cisco and James Leach, who was director of business development at Cisco. Gents, welcome back to the Cube. Good to see you again. >>Hey, thanks for having us. >>Okay, Jim, let's start. We know that when it comes to navigating a transition to hybrid cloud, it's a complicated situation for a lot of customers and as organisations that they hit the pavement for their hybrid cloud journeys, one of the most common challenges that they face. What are they telling you? How is Cisco specifically UCS helping them deal with these problems? >>Well, you know, first, I think that's a That's a great question. And, you know, the customer centric view is is the way that we've taken. Um, it's kind of the approach we've taken from Day one, right? So I think that if you look at the challenges that we're solving for their customers are facing, you could break them into just a few kind of broader buckets. The first would definitely be applications, right? That's the That's where the rubber meets your proverbial road. Um, with the customer. And I would say that you know, what we're seeing is the challenges customers are facing within applications come from the way that applications have evolved. So what we're seeing now is more data centric applications. For example, um, those require that we are able to move, um, and process large datasets really in real time. Um, and the other aspect of application, I think, to give our customers kind of some pose some challenges would be around the fact that they're changing so quickly. So the application that exists today or the day that they make a purchase of infrastructure to be able to support that application. That application is most likely changing so much more rapidly than the infrastructure can't keep up with today. So, um, that creates some some challenges around. How do I build the infrastructure? How do I write? Size it without over provisioning, for example. But also there's a need for some flexibility around life cycle and planting those purchase cycles based on the life cycle of the different hardware elements and within the infrastructure, which I think is the second bucket of challenges. We see customers who are being forced to move away from the like a modular or blade approach, which offers a lot of operational and consolidation benefits. And they have to move to something like, um, Iraq server model for some applications because of these needs that these data centric applications have. And that creates a lot of opportunity for silo going. The infrastructure and those silos, in turn, create multiple operating models within the A data centre environment that, you know, again drive a lot of complexity. So that complexity is definitely the the enemy here. Um, and then finally, I think life cycles. We're seeing this democratisation of of processing, if you will, right, so it's no longer just CPU focus. We have GPU. We have F p g A. We have things that are being done in storage and the fabrics that stitch them together that are all changing rapidly and have very different life cycles. So when those life cycles don't align for a lot of our customers, they see a challenge in how they can can manage this these different life cycles and still make a purchase without having to make too big of a compromise in one area or another because of the misalignment of life cycles. So that is a kind of the other bucket. And then finally, I think management is huge, right? So management at its core is really right size for for our customers and give them the most value when it when it meets the mark around scale and scope. Um, back in 2000 and nine, we weren't meeting that mark in the industry and UCS came about and took management outside the chassis, right? We put at the top of the rack, and that works great for the scale and scope we needed at that time. However, as things have changed, we're seeing a very new scale and scope needed, Right? So we're talking about hybrid cloud world that has to manage across data centres across clouds. And, um, you know, having to stitch things together for some of our customers poses a huge challenge. So there are tools for all of those those operational pieces that that touched the application that touched the infrastructure. But they're not the same tool. They tend to be, um, disparate tools that have to be put together. So our customers, you know, don't really enjoy being in the business of building their own tools. So, um, so that creates a huge challenge. And one where I think that they really crave that full hybrid cloud stack that has that application visibility but also can reach down into the infrastructure. >>Right? You know, Jim, I said in my my Open that you guys, Cisco sort of changed the server game with the original UCS. But the X Series is the next generation, the generation of the next decade, which is really important cause you touched on a lot of things. These data intensive workloads, alternative processors to sort of meet those needs. The whole cloud operating model and hybrid cloud has really changed. So how's it going with the X Series? You made a big splash last year. What's the reception been in the field? >>Actually, it's been great. Um, you know, we're finding that customers can absolutely relate to our UCS X series story. Um, I think that the main reason they relate to it as they helped create it, right, it was their feedback and their partnership that they gave us Really, those problem areas, those, uh, those areas that we could solve for the customer that actually add significant value. So, you know, since we brought you see s to market back in 2000 and nine, we had this unique architectural, um uh, paradigm that we created. And I think that created a product which was the fastest in Cisco history. Um, in terms of growth, Um, what we're seeing now is X series is actually on a faster trajectory. So we're seeing a tremendous amount of uptake. We're seeing, uh, both in terms of the number of customers. But also, more importantly, the number of workloads that our customers are using and the types of workloads are growing. Right? So we're growing this modular segment that exists not just, um, you know, bringing customers onto a new product, But we're actually bringing them into the product in the way that we had envisioned, which is one infrastructure that can run any application and do it seamlessly. So we're really excited to be growing this modular segment. Um, I think the other piece, you know that, you know, we judge ourselves is, you know, sort of not just within Cisco, but also within the industry and I think right now is a You know, a great example. Our competitors have taken kind of swings and misses over the past five years at this, um, at a kind of a new next architecture, and we're seeing a tremendous amount of growth even faster than any any of our competitors have seen. When they announced something, um, that was new to this space. So I think that the ground up work that we did is really paying off. Um, and I think that what we're also seeing is it's not really a leapfrog game, Um, as it may have been in the past, Um, X series is out in front today, and we're extending that lead with some of the new features and capabilities we have. So we're delivering on the story that's already been resonating with customers, and we're pretty excited that we're seeing the results as well. So as our competitors hit walls, I think we're you know, we're executing on the plan that we laid out back in June when we launched that series to the world. And, uh, you know, as we as we continue to do that, um, we're seeing, you know, again tremendous uptake from our customers. >>So thank you for that, Jim. So viscous. I was just on Twitter just today, actually talking about the gravitational pull. You've got the public clouds pulling C x o is one way. And you know I'm Prem folks pulling the other way and hybrid cloud So organisations are struggling with a lot of different systems and architectures and and ways to do things. And I said that what they're trying to do is abstract all that complexity away, and they need infrastructure to support that. And I think your stated aim is really to try to help with that with that confusion with the X series. Right? So how so? Can you explain that? >>Sure. And and and that's the right, Uh, the context that you built up right there, Dave, if you walk into Enterprise Data Centre, you see platform of computer systems spread all across because every application has its unique needs. And hence you find Dr Note Driving system memory system, computing system, coordinate system and a variety of farm factors. When you do, you, for you and every one of them typically come with a variety of adapters and cables and so forth Just create silence of resources. Fabric is broad. The actress brought the power and cooling implications the rack, you know, the space challenges and above all, the multiple management plane that they come of it, which makes it very difficult for I t to have one common centre policy and enforce it all across across the firmware and software and so forth and then think about the great challenges of the baroness makes it even more complex as these go through the great references of their own. As a result, we observe quite a few of our customers. Uh, you know, really, uh, seeing Anna slowness in that agility and high burden, uh, in the cost of overall ownership, this is where the X rays powered by inter side. We have one simple goal. We want to make sure our customers get out of that complexities. They become more Asyl and drive lower tco and we are delivering it by doing three things. Three aspects of simplification first simplify their whole infrastructure by enabling them to run their entire workload on single infrastructure and infrastructure, which removes the narrowness of fun factor and infrastructure which reduces direct from footprint that is required infrastructure were power and cooling better served in the Lord. Second, we want to simplify it with by delivering a cloud operating model where they can create the policy ones across compute network stories and deployed all across. And third, we want to take away the pain they have by simplifying the process of upgrade and any platform evolution that they are going to go through the next 23 years. So that's where the focus is on just driving down the simplicity lowering down there. >>That's key. Less friction is is always a good thing now, of course, because we heard from the hyper flex guys earlier, they had news. Not to be outdone, you have hard news as well. What innovations are you announcing around X series today? >>Absolutely. So we are following up on the excited, exciting extras announcement that we made in June last year. Day and we are now introducing three innovation on experience with the bowl of three things First, expand the supported World War and extra days. Second, take the performance to new levels. Third dramatically reduced the complex cities in the data centre by driving down the number of adapters and cables. To that end, three new innovations are coming in. First, we are introducing the support for the GPU note using a cable list and very unique X fabric architecture. This is the most elegant design to add the GPS to the compute note in the model of form factor thereby, our customers can now power in AML workload on any workload that needs many more number of GPS. Second, we are bringing in GPS right onto the computer note and thereby the our customers can now fire up the accelerated video upload, for example, and turf, which is what you know we are extremely proud about, is we are innovating again by introducing the fifth generation of our very popular unified fabric technology with the increased bandwidth that it brings in, coupled with the local drive capacity and density is that we have on the computer note our customers can now fire up the big data workloads the F C I work. Lord, uh, the FDA has worked with all these workloads that have historically not lived in the model of form. Factor can be run over there and benefit from the architectural benefits that we have. Second, with the announcement of fifth generation fabric, we become the only vendor to now finally enable 100 gig and two and single board banned word and the multiple of those that are coming in there. And we are working very closely with our partners to deliver the benefit of these performance through our Cisco validated design to oversee a franchise. And third, the innovations in, uh, in the in the fifth and public again allow our customers to have fewer physical adapters, made the Internet adapter made with our general doctors or maybe the other stories adapters. They reduced it down and coupled with the reduction in the cable so very, very excited about these three big announcements that we're making in this part of the great >>A lot There. You guys have been busy. So thank you for that. Because so, Jim, you talked a little bit about the momentum that you have. Customers are adopting. What problems are they telling you that X series addresses and and how do they align with where where they want to go in the future? >>Um, that's a great question. I think if you go back to um and think about some of the things that we mentioned before. Um, in terms of the problems that we originally set out to solve, we're seeing a lot of traction. So what the cost mentioned, I think, is really important, right? Those pieces that we just announced really enhanced that story and really move again to kind of to the next level of, of taking advantage of some of these problem solving for our customers. You know, if you look, you know, I think the cost mentioned accelerated VD. That's a great example. Um, these are where customers you know, they need to have this dense compute. They need video acceleration, they need type policy management, right. And they need to be able to deploy these, um, these systems anywhere in the world. Well, that's exactly what we're hitting on here with X series right now, we're hitting the mark in every every single way, right? We have the highest compute config density that we can offer across the, you know, the very top end configurations of CPUs. Um, and a lot of room to grow. Um, we have the the premier cloud based management. You know, hybrid cloud suite. Um uh, in the industry. Right. So check there. We have the flexible GPU accelerators that that the cost just talked about that we're announcing both on the system and also adding additional ones to the through the use of the X fabric, which is really, really critical to this launch as well. And, uh, you know, I think finally, the fifth generation of fabric interconnect and virtual interface card, um, and an intelligent fabric module go hand in hand in creating this 100 gig and end bandwidth story that we can move a lot of data again. You know, having all this performance is only as good as what we can get in and out of it, right? So giving customers the ability to manage it anywhere be able to get the bandwidth that they need to be able to get the accelerators that are flexible to that fit exactly their needs. This is huge, right? This solves a lot of the problems we can take off right away with the infrastructure. As I mentioned, X fabric is really critical here because it opens a lot of doors here. We're talking about GPS today, but in the future, there are other elements that we can disaggregate like the GPS that solve these lifecycle mismanagement issues. They solve issues around the form factor limitations. It solves all these issues for like it does for GPU. We can do that with storage or memory in the future, So that's going to be huge, right? This is disaggregate Asian that actually delivers right. It's not just a gimmicky bar trick here that we're doing. This is something that that customers can really get value out of Day one. And then finally, I think the future readiness here. You know, we avoid saying future proof because we're kind of embracing the future here. We know that not only are the GPS going to evolve, the CPUs are going to evolve the drives, the storage modules are going to evolve. All of these things are changing very rapidly. The fabric that stitches them together. It's critical, and we know that we're just on the edge of some of the developments that are coming with C XL with with some of the the PC express changes that are coming in the in the very near future. So we're ready to go X and the X fabric is exactly the vehicle that's going to be able to deliver those technologies to our customers. Our customers are out there saying that you know, they want to buy into something like X Series that has all the operational benefits, but at the same time, they have to have the comfort in knowing that they're protected against being locked out of some technology that's coming in the future. We want our customers to take these disruptive technologies and not be disrupted, but use them to disrupt, um, their competition as well. So, um, you know, we're really excited about the pieces today, and I think it goes a long way towards continuing to tell the customer benefit story that X Series brings And, um, again, stay tuned because it's going to keep getting better as we go. >>A lot of headroom, uh, for scale and the management piece is key. There just have time for one more question because talk to give us some nuggets on the road map. What's next for? For X X series that we can look forward to? >>Absolutely Dave, as as we talked about. And James also hinted this is the future radio architecture, a lot of focus and innovation that we are going through is about enabling our customers to seamlessly and painlessly adopt very disruptive hardware technologies that are coming up no infantry place. And there we are, looking into enabling the customer journey as the transition from PCH in less than 4 to 5 to six without rip and replace as they embraced the Excel without rip and replace as they embrace the newer paradigm of computing through the desegregated memory desegregated P. C, A, r N B and dance drives and so forth. We're also looking forward to extract Brick Next Generation, which will and now that dynamic assignment of GPS anywhere within the chassis and much more. Um, so this this is again all about focusing on the innovation that will make the Enterprise Data Centre operations a lot more simpler and drive down the PCO by keeping them not only covered for today, but also for future. So that's where some of the focus is on there. >>Okay, Thank you guys. We'll leave it there in a moment. I'll have some closing thoughts. >>Mhm

(calm electronic music) >> Hey, welcome back everyone to theCUBE coverage of AWS re:Invent 2021. I'm John Furrier, your host. We're here with two sets with live content, pumping out 120 years over the course of a couple of days, 28 hours of programming from the people making things happen, sharing the news, and the insight. We've got Sandy Carter, worldwide public sector vice president of partners and programs for Amazon web services. Sandy, CUBE alumni, welcome back to theCUBE. Great to see you. >> Great to see you too, John. It's so awesome to be here in person, right? >> The news is coming more and more. We got health care news. We got this news, we got all kinds of certification. We just recently talked on a segment about all the great stuff on certifications, but healthcare is booming, okay? We got talking about delivering the kind of performance that people need in healthcare with data, and you've got delivery, destination is healthcare. Let's talk health care, what's going on? >> Yeah, so we made a couple of really awesome announcements around healthcare today. So if you think about it, one of the big trends in healthcare is digitizing health records, so electronic healthcare records to really help and assist with patient care. So, because that is so big, we launched an initiative for electronic healthcare records, migration assistance. And what that means is that, we have now added technical subject matter experts and industry subject matter experts in the healthcare space who understand EHR, electronic health records, to help us migrate at least 500 ISV applications over to AWS. This is really big news, because so far, most of those applications are running on-premises. So getting them over to the cloud gives them the scalability, gives them the agility, that they need to provide all of us better healthcare. >> Well, one of the big themes is the Epic performance, the database on the cloud. Cloud has given so much agility and has changed the game. I mean, I'm old enough to remember, I mean, we can look back on the shifts in technology. You had that era of healthcare where data and the records were super important. Privacy, lock it down. Don't talk to each other. Are we going to respect the privacy of the individuals? That's all now changed with horizontal scalable data, as Swami pointed out, who's the SVP leader of AI and the data for AWS, whole new paradigm of data architecture. This is disrupting healthcare. >> Yes And you've got the Epic situation. Take us through, why is this important? Why are we talking about Epic? >> Well, so EHR is one of the announcements. And then the second big announcement, is our Epic on AWS announcement. So, you may have covered this back in the August, September timeframe, we announced a new EC2 instance, called the M6I. And Epic, which is one of the leading global healthcare providers in the world, has been migrated to the cloud. And so, they started testing themselves, Epic started testing on the M6I. And so what we saw is a 40% performance improvement. Now that is, that's huge, as well as a 30% reduction in total cost of ownership. So if you're a partner out there, you're going to see, as your application runs on top of Epic, you're going to get that performance gain. And Epic has an amazing ecosystem, John. They have what they call the code travelers. They kind of exist on Epic, cause everybody uses Epic. Those ISBs are now going to get that benefit, and 90% of the current Epic customers. And then, our consulting partners are also going to see the benefit, because of that total cost of ownership reduction of 30%. So imagine you're a consulting partner, you're now going to go into a hospital that's using Epic and tell them that you can reduce their total cost of ownership by 30%. That's amazing! >> Well, first of all, the cost thing is amazing. But also, when you mentioned the instances, what's happening with the graviton and the processors and the performance you're getting in the cloud now, the applications are running faster and lower cost. So, you know, databases, they really want the boast horsepower. So you've got the cloud performance, you've got the lower cost. Why wouldn't anyone want to run it anywhere else? This is what I'm saying on my story I wrote Sunday night. All the modern applications will go to the best performance, even legacy apps. >> That's right, and I think this is so important because you know, you need performance, you need speed. You need to get the rest of this application migrated over. That's why we got the EHR migration initiative. And then if you couple that with our third announcement around authority to operate that now gives you that security and compliance, right? Because if you're a hospital, you can't risk having that patient information exposed. And so we introduced as an authority to operate a program that enables our partners to get HIPAA and high trust authorization faster, cheaper, so that they can move with this new digital trend that's happening all across healthcare. I mean, it is our fastest growing area today, growing at 105%. >> Yeah, it points to examine, it's another one of those areas that is urgent under COVID. It's exploding because of the demand, just on performance. And Swami said it today, also in the keynote, the AI data keynote, governance should be an enabler, not an inhibitor. >> Sandy: That's right. So when you start getting into governance where you can start managing the data in a way that's cool for people to use the data, but protect the privacy, you then can have the modern apps. >> And if I could just add on one thing there, today we talked about, you know, when you go on your digital transformation journey, it requires digital security, especially in healthcare. And so as you have those requirements, you have to be able to, not just get stuff to the cloud, it's got to be secure. And that's why HIPAA and high trust exist today. >> And these fine grain controls now available are amazing. So again, I love the way you guys are going in this direction with AWS. I got to say every year, it's like, wow, again. But I want to get back to this ISV angle because I think this is super important. Again, I teased this out on my post Sunday night, when I, after my sit down with Adam Selipski was that, if I'm a software vendor, an ISV, an independent software vendor, or a software owner, I want my app to run faster, period, okay? I want my app to make money, which means valued by customers. I don't want my app to be slower and not be seen in front of my customers. So again, ISV is now an opportunity, Epic is a shining example of that, where now as an ISV, I can innovate and not have to do the heavy lifting. This is a huge point. Can you just share some color on this, because this is like, I think kind of the elephant in the room. The ISVs are going to go where the action is. >> That's right, and you know, the Epic ecosystem is such a force. Epic being a global healthcare leader, getting that performance level, all of those codes, they call them code travelers, that exist around Epic. All of those applications can now take advantage of that performance improvement, which for me is a game changer because all that data, I mean, I know that, you know, I was just in an emergency room with my daughter. She had a trouble, we thought she broke her elbow. And, you know, we were sitting there waiting as the person's entering and waiting and entering and waiting. So that performance really makes a difference, right? In your customer satisfaction, in your patient care, all the things that really matter, the business outcome areas, not just the technology side. It's a game changer for healthcare. >> It's the delivery of one, your health, your life. And two, hassle time, avoiding the steps, waiting in the wrong room, going here, waiting for this, getting a test you don't need. >> Sandy: That's right. >> It's a hassle for the customer, but also puts pressure on the supply chain, the operational bandwidth, and with telemedicine around the corner, you know, everything is happening with telemedicine. Why I might not need to go to the hospital if I don't have to, so again, another big wave coming is telemedicine. >> Yeah, that's right, and in fact, we launched that healthcare startup accelerator, where we invited healthcare companies from around the world to come in and get extra support as a brand new partner, as a next gen partner, and that was actually one of the top areas of focus. About 40% of the companies came in around telemedicine. And one of the really interesting partners that came in through that accelerator was a partner named Get lab. They do, you know, surgeon training, which is quite fascinating, and they were doing that and Time named them one of the top, most innovative companies of the year in 2021. And they accredited a lot of their success to the healthcare accelerator that we just launched as well. >> So much action going on. I got to get your thoughts on just in general healthcare, do you find the vibe to be more from the doctors and the service providers? Because they're the ones on the front lines. They're in the foxhole, so to speak. It always seems to me that they always wish things went faster, similar to government workers, right? It's like, I wish there wasn't red tape. I wish it was easier. Why aren't we doing this? That seems to have been like, the culture. And now it's shifting back to, all right, now we're having fun. We're delivering care. We're riding the right wave. >> I agree, you know, these business outcomes make a huge difference, I think. And I think that that transformation that you're talking about, is occurring much faster than anybody anticipated. I predict in 2022, you're going to see this increased focus, not just on telemedicine, patient care overall. Like how do you combine the two together? How are you able to move quicker to provide more diagnostics? So for example, one of our partners, GE Healthcare, was using AI and ML with one of our partner programs and was able to automate the radiology workflow. I mean, just think about radiology, reading X-rays, how fast that can be with AI and ML. It increased the diagnostic accuracy by 30%. I think you're going to see lots more use of technology to speed up diagnosis, to increase that customer, patient care. I think that's really going to be the trend in 2022. And it's great for all of us. >> And computer vision, by the way, with explainable AI, can come in, talk about analyzing x-rays and or film, more and more tech coming in and machine learning is driving a lot of it. >> I completely agree. Machine learning, I would say machine learning and analytics, you know? Now that we've got the data and you know, the data, IDC says that data coming in from IOT sensors increased by four x since COVID, so imagine, you know, there are now robots working in the hospital, gathering your readings of your, you know, how strong you breathe, your temperature, all your vital signs are now coming in from IOT sensors. So you're just seeing this explosion of data and healthcare, which only makes diagnosis and hopefully cures, new vaccines, more possible because now you've got more data to work with, right? That data accuracy is going up. Data sources are going up. It's just a really powerful combination. >> Yeah, healthcare is great. Sandy, it's been an amazing run on the healthcare side. It's continuing to change, in a good way, how care is managed and delivered and dispensed and cost savings. I do want to ask you if you could point out to the audience, just from within the partner base, what's the big trend there? Because obviously they're all engaged, seeing all kinds of new things. Where's the innovation vibe? What are some, what's the pattern in the partners, more software development, more cloud, more AI? What's the, what would you, how would you rank the activities of innovation? >> Yeah, I would say there are five prime drivers today on the technology side, you know. First and foremost right now is IOT, believe it or not. And IOT, because it's driving so much data and you have to have data for the second big trend, which is artificial intelligence and machine learning. So that data is essential for feeding all the modeling that's going on. We're also seeing the edge come to pass really fast, right? A lot of work on outpost. In fact, at the conference, we announced that we just opened an outpost innovation center with WWT and Intel MDC. We already have an innovation center for outpost in Seattle. So we opened one in DC for our partner community as well. So we're seeing a lot of focus on that edge. Containers, as we talked about earlier, 60% of customers want containers. So our partners to be, need to be all over it. And then another huge trend in public sector is blockchain. So if you think about, you know, Panama, El Salvador, Ukraine, they're all moving to Bitcoin. And I just went over to the Wynn hotel cause we're here in Vegas, did you see how many vendors are taking Bitcoin out? It's amazing! And so all of that is built on blockchain. So we also introduced a set of workshops and POCs with our partners around blockchain because we see it happening in states, in countries, and then the countries drive everything else to have to use or leverage that chain for Bitcoin. >> Great trends, the tailwind, the wave is here. It's a big wave, healthcare, public sector, a lot of change. Sandy Carter. Thank you for the great commentary. Great insight, great to see you. Thanks for coming back on theCUBE. >> Nice to see you too, yep. >> It's theCUBE coverage. I'm John Furrier, your host of theCUBE. We got two sets wall-to-wall coverage, here in person, live event, as well as hybrid, we have the software as well. You're watching theCUBE, the leader in global tech coverage. I'm John Furrier, thanks for watching. (calming electronic music)

>>Yeah. Hey, everyone, Welcome to the cubes. Continuous coverage of AWS Re invent 2021. I'm Lisa Martin with John Furrier were running one of the industry's largest and most important hybrid tech events with AWS and massive ecosystem of partners. Right now there are two live cube sets to remote sets over 100 guests on the programme and we're pleased to welcome back one of our alum I to talk about the next generation and cloud innovation. Georgia Lisa is joins John to me, the director of product management for EC two edge at A. W S George. Welcome to the programme. >>Glad to be here in person. Thanks Great to be here in person. Awesome to be here in person. Finally, >>one of the things that is very clear is the US flywheel of innovation and there was no slowdown with what's happened in the last 22 months. Amazing announcements, new leadership. We talked a little bit about five g yesterday, but let's talk more about that. Everyone is excited about five g consumers businesses. What's going on? >>So, yeah, I wanted to talk to you today about the new service that we launched called AWS Private. Five g. Essentially, it's a service that allows any AWS customer to build their own private five g network and what we try to do with the services make it that simple and cost effective for anyone without any telco experience or expertise, really, to build their own private five g network. So you just have to go to your AWS console. Um, describe the parameters for network simple stuff like, Where do you want it to be located? The throughput, the number of devices and AWS will build a plan for your network and seep you everything that you need. Just plug it together. Uh, turn it on and the network automatically configures itself. All you got to do is popular sim cards that we send you into your mobile devices and you have a private five g network working in your your premise is >>one of the things that we know and love about AWS is its customer obsession. It's focused on the customer's that whole flywheel of all the innovation that comes out as Adam was saying yesterday to the customers, we deliver this, but but you wanted more. We said we deliver this, but you wanted more. Talk to me a little bit about some of the customer catalysts for private five G. >>Actually, one of the good examples is where we are right now. More and more AWS customers need to connect an increased number of devices, and these devices become more data hungry. You know they need to push data around. They also become more and more wireless, right? Uh, so when you are trying to connect devices in the manufacturing floor, bit sensors, you know, connect the tracks, forklifts or in a convention centre. You look at how many devices there are around us. When you're trying to connect these devices with a wired network, you quickly run into physical problems like it's. It's hard to lay cable anywhere, and customers try to use for many of these use cases. But as a number of devices grows into the thousands and you know you need to put more and more data around, you quickly reach the limitations of what the WiFi technology and also WiFi is not really great at covering really open, large space. So that's where these customers, you know, think of college campuses, convention centres, manufacturing floors, all of these customers. Really? What they need to be able to do is to level the power of the mobile networks. However, doing that by yourself is pretty hard. So that's what we aim to to enable here we are waiting to enable these customers to build very easily and cost effectively their own. Uh, >>Okay, George. So I have to ask. I'm truly curious. I love this announcement. Um, because it brings together kind of the edge story. But also, I'm a band with love. I love more broad. Give me more broadband. Faster, cheaper and more broadband. How does it work? So take me through the use case of what do I need to deploy? Do I need to have a back haul connection? What does that look like? Is there a certain band with requirements? How big is the footprint? What's the radius? Just walk me through. How do I roll this out? >>Yeah, sure. Some of that stuff actually depends on your requirements, right. How How big? How much of a space do you want to cover? Basically, what we see, if you were in preview right now, so we're sipping you. The simplest configuration, which is basically these things called small cells there, you know, radio units and antennas. And all you have to do is connect them to your local. The network has Internet access. These things connect and automatically had, you know, connect home to the cloud and basically integrate and build up your whole network. All all you need is that Internet connection, and I don't know what to do. Now, how big is the network? You can You can make it pretty big. You can cover hundreds of thousands of square feet with with cellular networks with mobile networks. Um, you know, the bigger you they especially want to cover the more of these radio units. We're gonna stop you, uh, >>classic wireless radios. >>Yes. You >>light up the area with five g connected to the network. That's your choke point. The big of the pipe >>took the bigger pipe. That toxic. I mean, well, there, there's two. There's two things to consider here. There is local connectivity. So devices talking to each other, and there was connectivity back to somewhere else, like the Internet or the cloud. There are use cases, for example. Let's say data video feeds that you want to push up to do some inference in the cloud. In these use cases, you're basically pushing all of the data up. There is no left. There's no East West connectivity locally, and that's where our simplest configuration works best. There are other, uh, use cases where there is a lot of connectivity and devices talk to each other locally, like in this place, for example, right in this. In these cases, we can sip you that second configuration where we actually see Pew, a managed hardware WS managed hardware on premises, and that runs the smart of the network and allows all of your data traffic to remain local. That's >>wavelength Outpost, or both. >>A different configuration of A. W s private five G. It's a managed service. We take. We take care of it. You basically it's very It has a pricing model, which is very customer friendly because you like multi W services. You can start with no upfront fees. You can scale and pay as you scale because >>it's designed to deploy easily. >>Yep, deploys the >>footprint. Just I'm just curious if the poll is it like, it's like an antenna. Is it like so and >>yeah, well, the antenna is, you know, the small cell. They call them small cells in, you know, in in cellular land there, this big. And you can you can hide this. There is actually a demo in the Venetian of the private service. So you can you can actually see it in action, but yeah, that thing can cover 10,000 square feet, just one of them. So you can >>go out and put a five g network downtown and be like the king. >>You could Yes. You could have your own private network. You can monetise that next >>on the Q. >>Great stuff. >>So in terms of industries adopting this, you gave us some examples. Obviously. Convention centres, campuses, universities. I'm just curious, given the amount of acceleration that we've seen in every industry the last 22 months where organisations must become digital. They depend on that for their livelihood. And we saw this all these pivots, right? 22 months ago. How do we survive this? How do we thrive? Are consumers now are whether it's an injury or consumer or enterprise. Have this expectation that we're gonna be able to communicate no matter where we are 24 by seven. Whether it's health care, financial services. I'm just curious if you're seeing any industries in particular that you think are really prime for this private five >>G. Yeah. So manufacturing is a is a really great example because you have to cover large spaces. You have thousands of devices, sensors, etcetera and using other solutions like WiFi does not provide you the depth of capabilities like, for example, you know, advanced security capabilities or even capabilities to prioritise traffic from some devices over others, which is what a five G network can do for you. But also, you know, it involves large spaces both indoors and outdoors. We, you know, actually, Amazon is a really great example of you know of using this. We're working with Amazon fulfilment centres. These are the warehouses that fulfil your orders when you order online. Um, and they are a mix of indoor space and outer space, and you can think of, you know, I don't know if you've seen pictures or videos. There's robots running around their sensors everywhere. There is packing lines, etcetera, all of these things in order to operate performantly, but also securely and safely for the people that are around. You need to be well connected at a very high reliability rate. Right? So, uh, Amazon for two networks is actually using private A W s private five G to connect all of these devices. The really key thing here is you don't have to go drop 1000 of these access points we're talking about you. Can you can. You can probably cover your space with 5 10 of these. So your operational expenses, your maintenance goes down and there is less interruption of your normal operations like you can't. You don't have to stop your manufacturing line for someone to come in and fix your WiFi access. >>It's great for campuses like college campuses, college >>campuses, a great one. We you know, we've worked with college campuses, including the CME University in the past two, you know, with some of our partners to, uh, to to deploy. So >>that's how close you have these distribution, gas systems, distribution, whatever they call it accelerate whatever amplifies into get extra coverage, this seems to be a good fit. Um, for that how you mentioned in the preview? How do people get involved? Is there like a criteria. How was it going to >>be available to get priority? Don't get you >>tell them ready to jump in. Take us through the programme. What's the plants? >>So currently we're you know, we're in that preview mode. So we're keeping you this small configuration, the simpler configuration. You can sign up on the AWS website and you know, we, as we scale our operations are supply chain. Because this involves also, you know, hardware, etcetera. We're gonna go to general availability g A over the next few months and we have both configurations open. So I I encourage everyone who is interested go to the W s website and sign up. We're asking to get that in customers' hands because we're getting overwhelmingly positive feedback on what we built. >>This is transformative. I mean, clearly what you're talking about here is going to transform industry and help organisations transform themselves and outpaced the competitors that are in the rear view mirror Aren't going to be able to take advantage of this were on the show floor. We've got lots of people here. Where can people actually go and see this preview tested up? >>There is an actual demo in the Venetian. I can't remember. Sorry, I can't remember the room. I think it's on the Yes, actually, it's on the floor on the third floor where the meeting rooms are on outside 35 or one. If anyone wants to go, we're >>going to start buying lunch time. >>Yes. Yeah, you can see it in action. And, you know, you could You could see a future where everything, You know, you look around. There's thousands of devices here. You could power all of these devices with a single cell and, you know, really scaled throughput >>in the five G. Just curious, um on the range is better than wifi >>ranges. Better outdoors, >>obviously, or factories. What's the throughput on the >>depending on the spectrum that you choose? And that's actually a really good save way. The device, the service that we built, its spectrum agnostic so it can be used on right now. We're using it on what we call C BRS spectrum, which is the free for all you can. You know, you can you can use it yourself. But also, customers can bring their own spectrum. And we're working with a batch of, uh, CSP operators to build advanced bundles where you can work this on licence spectrum. So if you're going up the spectrum in what they called millimetre wave >>spectrum owner to bring your own licence, >>you could So telco right? You could be a telco, bring your, you know, and work with us as a partner or some actually, actually, manufacturing customers have purchased rights to small spectrum bands so they can use those in combination with this service to deploy. So to your original question, as you're going back up the spectrum, you can drive more and more throughput. You it's not. It's not unheard of to drive one gig. You know what's so >>The low hanging fruit is the the use cases that have critical need for edge connectivity manufacturing? Um, certainly the retail or whatever that they help do the deployment >>we can. We can. We can see this being applicable because because you can start super small. You can see this being applicable even to branch offices, right? Like, uh, let's say I was talking to a customer yesterday. They were thinking or have all these branch offices. I don't even I don't even want to have I thought either he just wants something that's very quickly and easily. You know, I can manage centrally and it just connects. >>Can I should have fixed wireless shot to the wavelength order to have back all with wire >>too. Oh, they actually we are planning to. You know, I talked about where the smarts of the network live in the they can live in a region, they can live in the locals, and they can live in a wave election. So we're combining more and more of these products as well. And it's computing, obviously, is a is an obvious thing that, you know, we should be working on >>incredible work, George, that you and the team have done transforming industries. And I don't know if a feeling there might be a cube to Is it? Would it be too dot >>Oh, John, >>he's ready. Big George, Thank you so much for joining joining me today. It's great >>to be here. Thanks for having that >>for John Ferrier. I'm Lisa Martin. You're watching the Cube, the global leader in live coverage. Mhm