(soft electronic music) >> Welcome to this session of the Amazon EC2 15th Birthday Event. I'm your host, Lisa Martin. I'm joined by Joshua Burgin, General Manager of AWS Outposts at AWS. Joshua, welcome back to the program. Thank you, it's great to be here again. >> So 15th birthday, a tremendous amount has gone on in the last 15 years, but I want to understand what brought you to AWS? What excited you about cloud and EC2, in particular? >> Yeah, I mean, that's a, it's a great question and it's kind of a fun story. I actually worked at Amazon back in the 90s for three years as a software engineer when I don't think anybody you asked back then would have said that cloud was in our future. And so I'd kind of obviously kept in touch with people over the years and I was working at a customer who, interestingly enough, had moved off of AWS thinking that they could build a better cloud. And then of course, over the years, found out that it's actually quite difficult and was in process of moving back to AWS. And so I reconnected with some of the senior leaders who I was still friendly with and they said, you know, come back in, the water's fine, there's still a lot of opportunity. And it's, it's really been true, right? There's been just a tremendous amount of growth in the last seven years that I've been back and obviously, over the last 15 years for EC2, in general. >> Well, this 15th birthday not only marks a big milestone for AWS, but also for the cloud computing world that it serves globally. Talk to me a little bit about the impact over the last seven years you've been there and 15 years of EC2's life. >> Well, I mean, we've really been transforming every industry that you could possibly imagine as everyone's had to develop a plan to move to the cloud to take advantage of the opportunities for innovation, for cost efficiency, for developer efficiency, for operational improvements. And so EC2 was one of the foundational services inside of AWS and, you know, a lot of things are built on top of it, and so it's been really great to work with all of these different customers in financial services, in Telco, in gaming, you know, healthcare, you name it, all around the world. >> So 15 years ago, EC2 obviously started quite small. Can you talk to us about some of the early trends that are emerging from the hybrid space? >> Yeah, I mean, we're fond of saying here that it's still day one and that's very true for the outposts and the hybrid business, in general, at AWS. The early trends, if I had to kind of bundle them together, would be that first of all, people are operating in more places than they ever thought they would have to. These are big customers, manufacturing, Telco, healthcare, public sector customers, people in gaming, they serve customers around the world. That's a trend that's kind of, irregardless of industry, that's what we're seeing. And so of course, having an outpost available everywhere, we're up to 60 countries now, having local zones in many countries which we hope is our longterm plan, having wavelength zones with lots of partners, you know, that's why we're doing those things 'cause customers are telling us that we need to operate everywhere. It's actually the reason we went from one availability zone or excuse me, three availability zones in one region 15 years ago, to 25 regions in 80 availability zones. And of course, hybrid is building on top of that. The other thing we're seeing, you know, real specifically for hybrid is low latency, local data processing, and data residency. Across every industry, those are the needs that are driving people to adopt hybrid technology and they're the ones pushing us forward here, at AWS to innovate on their behalf. >> Talk to me about some of the innovation in the last few years alone, that customers are helping drive where those regulations are becoming more and more critical. We're seeing more importance on security and ensuring that customer data is secure, protected, but also accessible. >> Yeah, absolutely, I mean, we're fond of saying at AWS that security is job zero. You know, we take it incredibly seriously, even though, of course, it's a shared responsibility model where we secure the underlying infrastructure and then provide tooling and services on top of that for customers to create the level of security that's appropriate for their application. Obviously, a government workload or a banking workload is different than a mobile game, even of course as customer data needs to be secured in all situations. So with outposts and with local zones, what we're giving people the ability to do is ensure that their compute and their storage are in whatever country or municipality or city or state that they need them to be. So you could take something as diverse as a bank or a healthcare company where they might need to have that compute and storage literally in a specific facility because of regulations, or in a specific state, you know, that's kind of happening around the world. You also see something you might not have thought about, but customer is in the iGaming space, so that's mobile betting. Tipico and FanDuel are a couple of early examples of those for outposts where as it becomes legal, at least in more states in the United States and more places in Europe, the regulations are requiring that the cloud computing, if they want to use it, is placed in a specific place. So the only way you can do that is either, of course, if we had a region everywhere, which we don't, or if you have something like outposts, otherwise you'd be forced to revert to like a bare metal solution and kind of take on all that heavy burden yourself. Your developers would be less efficient because they'd be using AWS in one place and bare metal kind of hardware somewhere else. So, you know, it's still really early, but I've been pleased to kind of see that kind of adoption across those diverse industries. >> It is really early, as you said. The philosophy at Amazon AWS is it's day one. Give me some feedback from customers now where, you know, we, we see a lot of different reports that suggest where businesses are, enterprises are in terms of cloud adoption. What are some of the things that you're seeing where you really think hybrid is going to be an absolute game changer? >> Yeah, I mean, one example that comes to mind is Telco which is one of the biggest industries with the smallest amount of cloud adoption to date. And so I think a lot of that was driven by specific requirements in that industry that required on-prem components for that ultra low latency. You can imagine they needed the compute and the storage to be at the cell site or distributed around the United States or other countries. And so that's where you have examples now with Dish Networks where we just announced a strategic partnership with them. They're going to be using this combination of the new small form factor outposts that we're releasing later this year. They're about the size of a pizza box or a couple of pizza boxes. They're also going to be using our network of local zones that we're building out, 15 of them across the United States, and they'll be using our regions for workloads that are, of course, less latency sensitive, and that can kind of be run centrally. So it's really kind of one of the best examples I can think of where people that were held back by the technology, by the offerings are now enabled to move really quickly. And so I think you're going to see a lot in that space and other industries where before they had to kind of not move to the cloud because a portion of their workload needed to remain on-prem, and now we're delivering a continuum of offerings, including, you know, to the very smallest locations. >> Let's look forward into the next decade. As barriers to adoption are being removed daily, you mentioned Dish Network. I saw that they're going to build their 5G, their core 5G network on AWS. That's huge, that's a big signal for the telecommunications industry. But what are some of the things that you think we're going to be able to open this book and there will maybe a crystal ball in the next decade can expect. >> Yeah, I mean, if I had a crystal ball, my roadmap would be perfect. >> Wouldn't it? >> It would be, it would be great. So if anybody's offering one of those I'm, I'm taking. But what I think you'll see is that, that the day one metaphor is going to continue. As big as AWS has become, and I think we're really proud of the accomplishments and innovation we've delivered for customers over the last 15 years, as I mentioned, we started with one instance type and one region, and now we have over 400 instance types in EC2. That's a lot of choice for people and that's just EC2, right? We have another 185 or 200 services these days, I can barely keep up with them which is exciting in its own right. And so the reason is that we're doing all that innovation is that customers are telling us what they want and a lot of that is, although they're driven to move to the cloud and they really want to move there quickly, somewhere between 75 and 90% of technology spending is still in the traditional hardware-software space. So again, I'd like you to think about that. 15 years in, you know, at the run rate that we're at, and obviously with other people in this space, there's still so much more to go that has already moved to the cloud. So I think you'll see more new instance types, more locations, more form factors, you know, from Outpost and us using Outpost to deliver infrastructure like local zones and wavelength which are built on top of Outposts, and so we don't force people to pick and choose between moving to the cloud and running the kinds of workloads they're already running. We want to be driven by the customer not force them into a narrow way of working that we think is best. That's probably the hallmark of AWS is giving people the choice. They can use EC2 and manage their own databases, they can use RDS or one of our, you know, 14 purpose-built databases, depending on what their application needs. And that's true across the board. Storage, compute, machine learning, container services, hybrid offerings, of course, which I manage for the AWS business, we're going to continue to do that. So the choice is going to proliferate, the performance is going to continue to improve, we're going to continue to bring down pricing and increase price for performance, and we're going to hopefully make things easier and more cost-effective for people, whether that's for their developers or their finance people, so that they can innovate on behalf of their customers versus handling all that undifferentiated muck and heavy lifting of managing the infrastructure themselves. >> That customer centricity has always been key to AWS. Just some of what you said, I think we can expect to see a ton more from AWS, announcements, customer-driven choices for customers. Joshua, thank you for joining me today. Happy 15th birthday to Amazon EC2. >> Thank you so much for having me. It's great to be here. >> For Joshua Burgin, I'm Lisa Martin. You're watching theCUBE. (soft electronic music)

(upbeat rhythmic music) >> Everyone, I'm John Furrier with theCUBE here at Palo Alto on a remote interview for a special video interview. The EC2 15th birthday party celebration event. Raj Pai, who's the Vice President of EC2 Product Management AWS is here with me. Congratulations on Amazon Web Services, EC2 with the compute. What a journey. 15 years old. Soon we got the keys to the car at a couple more years. So Raj, great to see you. You guys have been doing great work. Congratulations. >> Thank you. It's great being here. It's super exciting for me too. I can't believe it's 15 years and you know that big, we're still at the very beginning as you know, that we often say. >> The building blocks that have been there from the beginning really set the table, and it's just been fun to watch the innovation on behalf of customers that you guys have done at AWS and more, and for entrepreneurs and for developers, it just continues to be great and the edge is right on the corner. Wavelength, all the great stuff. But let's talk about the specific topic here that I really want to drill into is that as you look at the 15th year and birthday for EC2, okay? You're looking at the future as well. You're looking at the past, present and future. And one of the things that's most compelling about recent re-invent was the Graviton performance numbers are amazing. You guys have been building custom silicon for a while. You also worked with Intel and AMD. What is it about? What's the huge investment for you guys? Where do you started to see some returns? Are you seeing returns? And then why did AWS decide to build its own processors? >> Yeah, now, that's a really good question. And I mean, like with everything else we do in AWS, it's all about innovating on behalf of our customers. And one of the things our customers are telling us, that they continue to tell us is they want to see better performance at lower prices. And we've been able to deliver that with our hardware partners for the last 15 years. But as we've understood the workloads that run on EC2 and AWS, we saw an opportunity. Like, what if we were going to go and design our own processor that was really optimized for the sort of workload that customers run on the Cloud? And make design decisions when designing the CPU and the system and the chip around the CPU that does things like bring a lot more core local cache and speed up the parts of the operations that really benefit real-world workload. So, this isn't about benchmarks. It's about how do real world workloads perform and how do we build systems that optimize that performance? And with Graviton, we were able to hit the nail on the head. We were also very pleasantly surprised when we got our first chips off the line. And we're seeing that a customer, like about 40% performance improvement at significantly lower cost. And that's super exciting. And that's one of the reasons we're getting so much interest from our customers. >> I got to say as a geek and a tech nerd, I love the silicon development. And there's benefits there, also the performance is there. The thing that also is pretty obvious that's happening is and the world seeing it is the shift towards ARM-based computing. What kinds of customers and use cases are you seeing adopt to Graviton? And what kind of workloads were they running on? What are the things that surprise you guys, that didn't surprise me. Did you guys always talk about the upcheck and how everyone's leveraging it? What are some of the examples? Take us through some of the customers, use cases, workloads. What's surprising you and what's going on with Graviton? >> Yes, so I think that the biggest surprise for us is how broadly applicable it's been. So one of the things we did, we launched with reinvent is like we have different form factors of compute. We have memory-optimized instances that are good for databases and in memory caches. We have compute optimized for HPC and workloads that really take advantage of the performance of the chip and then we have general purpose workloads. And we we introduced Graviton variants of all those instance families And we're actually seeing the same sort of performance benefits across workload. So, and it's one of the reasons why companies like Metrol, and Snap and SmugMug, they move one workload over, they see the performance benefit and before you know it, they're starting to move workloads and mass over across kind of that spectrum. So, I think that's one of the biggest surprises is that Graviton seems to do well across a wide range and we're going to keep on introducing it more and more of instance families, because we've seen this uptick well. >> You're seeing a lot of people move to the Graviton. You mentioned a few of those early adopters who were pushing the envelope, and they're always kind of trotted out there as examples at reinvent, which is always fun to see what they're working on next. And now is that people see the Graviton2 instances, okay, the architecture's different, higher performance. How much effort do our customers typically need to move to Graviton2 instances? And what are some of the benefits they're seeing on performance and price performance? Can you talk about that transition? Because that's natural evolution for them. >> Yeah. It's actually a lot less than they originally think. So, some of the hardest effort is just getting them over the line to try it. So, one of the things that we tell our customers who are considering Graviton is it just takes one or two developers take one workload and go off for a couple of weeks and just try reporting it to Graviton. And more often than not, they come back to us in four or five days. They're like, it works. And we just had to do some testing and verification, but we were able to afford it because, you know, the operating system support was there, the ISP support was there and the tools that they use, and they're using most cases, modern programming languages like Python or Go or Java or PhD where, you know, interpret the language and it just run. And so there's very little lift in comparison to what people think it's going to be. And that's one of the reasons that, you know, one of the big announcements we made in the last few weeks is what we're calling the Graviton challenge, right? So it's a set of blueprints for customers to essentially have best practices on how to in four days take, you know, a piece of code and piece of that workload and execute it and run it and migrate it to the Graviton. And we're seeing a lot of interest in that as people in the community realize how easy that actually is. >> What are some of the cool price performance things that are emerging? Obviously it makes sense if you don't really need it, don't pay for it, but you have that option. A lot of people are going there. Is there a wave you see coming that Graviton2 is going to be really set up for that you kind of see some early signals coming in, Raj? Because, I can see the 64 bit. I can see where Graviton fits today. Obviously, performance is key. Is it certain things that are emerging? What's the main problems that it solves? >> Well, I think anything that's a multi-threaded architecture is going to do really well in Graviton because of the, we have really densely packed 64 course. And so you're going to see things like microservices and containers and workloads that are more, that are able to take advantage of that parallel execution do really, really well. And so, we say 40% performance improvement, but like, when our customers have gone and tried this, they've seen upwards of 50% depending on the workload. So yeah, it's going to be more your multi-threaded application. There's some applications that may not be a fit, like it can give a legacy, you know, for example, like, there's some software that hasn't yet been moved over and we're going to continue to invest super heavily in our whole ecosystem of hardware, for the longterm. So I think that because there's a great option and we just encourage them to try it. And then they'll learn from their experience what works and what doesn't. >> Wow. 15th birthday. Still growing up and it's starting to get more mature. You're the VP of Product Management. You have the keys to the kingdom. So, you have wide-ranging responsibilities. Share with us if you can. I know that you really can't say much, but try to give a little bit of teaser. You got Wavelength. I can see the dots connecting at the edge. You got Outposts, so we see all that emerging. I can almost imagine that this is going to get stronger. What should people think about? Where's the headroom for EC2 with Graviton and Graviton2? >> Yeah, I know. I think like, a new architect (mumbles) yourself. But like, our goal is to have AWS kind of everywhere our customers are. And that means the full power of AWS. So, I think you're going to see more and more of us having EC2 in compute capacity, wherever customers need it. That could be in an Outpost. That could be on their 5G network. That could be in a city right next to them, right? And you're going to see us continue to offer the variety, the selection of instances and platforms in all those locations as well. So, I think the key for us is to be ubiquitous and have compute power everywhere our customers need it, in the form factors they need it. >> That's awesome. Congratulations. I love the power. You can't go wrong with sending computers where the data is, where the customers are. AWS, Amazon Web Services. Building their own custom silicon with Graviton2 processors. This is EC2 continuing to grow up. Raj Pai, Vice President of EC2 Product Management. Thank you for coming on and sharing the update and congratulations on the 15th birthday to EC2. >> Yeah, thanks for having me. It's been great. Have a great Friday. >> All right. Great. I'm Jeffrey with theCUBE. You're watching theCUBE coverage of EC2's 15th birthday event. Thanks for watching. (soft rhythmic music)