>> From San Francisco, it's theCUBE. Covering, Girls in Tech Catalyst Conference. Brought to you by, Girls in Tech. >> Hey welcome back everybody, Jeff Frick here with theCUBE. We're in downtown San Francisico at the Girls in Tech Catalyst Conference 2018. About 700 people, two day conference, single track, really a lot of stories about people's journey. Senior executive women, how they got to where they were, and advice for kind of younger getting started execs, mid tier execs. Mainly women, a bus load of kids they just brought in, and a couple of men. So, we're excited to have one of them men, he just got off of the stage. It's Charlie Bell, Senior Vice President from AWS. Charlie welcome. >> Thanks for having me here. >> So, you just participated in a really interesting event. You were interviewed by your recently graduated daughter. >> Yes. >> She's entering the tech field. >> Yes. >> So, what did she ask you? It's just interesting to get her perspective. Just graduated from Carnegie Mellon, Nikki said. >> Yeah. >> And is getting ready to start her first job at LinkedIn. What is she thinking now? >> Actually, into it. >> Excuse me, into it. As she's looking forward at the beginning of this journey. >> Yeah, I mean she was asking me the kind of questions that you know that anyone who's getting started, or early in their career might ask. It was questions like, how did you decide when you were going to change jobs. What advice would you give to somebody who wants to be a leader? How do you recognize leaders? It was pretty interesting. Caroline is really smart, curious, very similar probably to most of the kids graduating. And many of the folks early in their career. So, I thought a lot of her questions probably relevant to almost anybody. >> Well, I guess she's already, she going to start her first job in a couple of weeks and she's already asking the leadership questions. >> Yeah, yeah. >> So, clearly you've got to be a proud dad for that. She's ready to start movin' up the line. >> Yeah, yeah. >> And I'm curious was she interested in STEM subjects before college? Or, well she went to Carnegie Mellon so you wouldn't go there if you didn't have an interest. >> Yeah, she no, was always interested in math. So, she studied math, ya know that was her best subject in high school. And she did a few science fair projects. When she went to Carnegie Mellon as a math major. But, she actually has so many, ya know? Much of the subject here is about the crooked path we take. And we've all had those. As she got to college she realized well math actually wasn't the thing she wanted to do. And then she thought well, what I really, really love the statistics part of it. And then she realized well, wait a minute, there's this whole new thing, machine learning, where you can take this knowledge of statistics and apply it to programming and computers, and everything else. She got very excited about it. And I've got to tell ya, there's no happier moment in a parent's life than when your child says their going to study machine learning. You know they will eat the rest of their life. >> That's very true. But, it's also even more important, what I thought you were going to say, is when your child finds something that they're really passionate about. >> Of course. >> Whether it's machine learning or whatever, that's, ya know, I've got three at home myself. So fun, when they find the thing that draws them in. So, I'm curious have you been to any of these events before? >> No, I haven't been to any of these. Actually, Sandy Carter, one of our Vice Presidents suggested a talk here would be interesting. And with Caroline interviewing me it was super interesting. I actually don't get out that much. You haven't talked me ever. But, I'm on the engineering side. I live inside the halls and we build stuff, and don't usually get out to talk to people. >> Yeah, so I'd love to get your impression on the event in general, but also some of the sessions. In terms of what was goin' on this morning. >> Oh I thought it was awesome. Amy's talk, ya know, I resinated with a lot of that. I thought her advice on some of the tips for the folks in the room was spot on. Many of them are, we have this thing at Amazon we call leadership principles. Many of them are just totally aligned with the Amazon leadership principles, the way we think. So, yeah these talks have been both interesting and inspiring. >> Yeah, so much talk about culture and it's funny you talked about the leadership principles and ya know we're a huge Andy Jassy fan. We've had him on a lot. But, I think one of my favorite times is he sat down on a fireside chat. Saw his in San Francisco a couple of years ago and really exposed to the audience some of the philosophies that operate behind Amazon. And how people make decisions and I think you brought it up here that it's okay to change your mind, if you're leader when you get new data. His whole thing about the power point and the six page narrative, and the way you guys execute in clearly such a well oiled machine, in terms of the way especially at AWS, you guys just keep rolling, and rolling, and rolling out new features, features, features. A lot of great lessons I think, in that Amazon culture. But, here all we keep hearing about is culture, culture, culture, culture, culture. So, you livin' it everyday. >> Yeah, well it's a gift that keeps on giving. I mean if the company has a good culture it's how everybody that comes in, how everybody pulls at the same oars, and it's really the fabric of a long term business. Andy said it many times, we all want a business that outlasts us. And the way you create that is through culture. >> Right, right, and just in the manacle focus on customer which I think is such a unique arduous trait, and Amazon trait. And I think that's like my favorite part about the new grocery store in Seattle. The fact that it was optimizing a process that nobody in the grocery store business probably ever really thought about very much. Which is i don't like to stand in line. So, to come at it, really from a customer perspective as apposed to a product perspective or competitive perspective, really I think is a big piece of the engine that just keep AWS just rollin' along. >> Yep, working from the customer backwards, it's the only way to live. >> With the press release before you make a new product, and it just goes on, and on, and on. >> Alright, so Charlie give me the last word before we let you go. What are you workin' on, what's exciting, what ya people will be keepin' an eye out for as you're whisked away in the halls, not coming out? What can we, what are some berries for the balance of 2018? >> Well, we still, as much as we've done so far, we still got a lot coming in machine learning. And across the board, I mean for me the exciting thing at AWS is our customers, we have such a broad set of customers right now with so many different needs. That we hear so many new things and it just inspires us to do brand new businesses and brand new services. So, it's just a lot of areas. Analytics, compute, storage, everything else like, there's a lot comin'. So, reinventing should be every bit as exciting as it was last year. >> Just got to find more space for ya, Vegas got to get a little bit bigger. And we'll be in DC next week for Summit Public Sector with Teresa Carlson and the crew also puts on a great event. >> Oh Teresa's so much fun. >> Alright, well thanks for takin' a few minutes of your day, we really appreciate it. And congrats to your daughter. >> Aw thank you, yes. >> Alright, thanks for watching. I'm Jeff Frick, we're at Girls in Tech Catalyst. Thanks for watching. (upbeat music)

(upbeat intro music) >> Hello everyone. Welcome to theCUBE's coverage of International Women's Day. I'm your host, John Furrier, here in Palo Alto, California. Got a special remote guest coming in. Teresa Carlson, President and Chief Commercial Officer at Flexport, theCUBE alumni, one of the first, let me go back to 2013, Teresa, former AWS. Great to see you. Thanks for coming on. >> Oh my gosh, almost 10 years. That is unbelievable. It's hard to believe so many years of theCUBE. I love it. >> It's been such a great honor to interview you and follow your career. You've had quite the impressive run, executive level woman in tech. You've done such an amazing job, not only in your career, but also helping other women. So I want to give you props to that before we get started. Thank you. >> Thank you, John. I, it's my, it's been my honor and privilege. >> Let's talk about Flexport. Tell us about your new role there and what it's all about. >> Well, I love it. I'm back working with another Amazonian, Dave Clark, who is our CEO of Flexport, and we are about 3,000 people strong globally in over 90 countries. We actually even have, we're represented in over 160 cities and with local governments and places around the world, which I think is super exciting. We have over 100 network partners and growing, and we are about empowering the global supply chain and trade and doing it in a very disruptive way with the use of platform technology that allows our customers to really have visibility and insight to what's going on. And it's a lot of fun. I'm learning new things, but there's a lot of technology in this as well, so I feel right at home. >> You quite have a knack from mastering growth, technology, and building out companies. So congratulations, and scaling them up too with the systems and processes. So I want to get into that. Let's get into your personal background. Then I want to get into the work you've done and are doing for empowering women in tech. What was your journey about, how did it all start? Like, I know you had a, you know, bumped into it, you went Microsoft, AWS. Take us through your career, how you got into tech, how it all happened. >> Well, I do like to give a shout out, John, to my roots and heritage, which was a speech and language pathologist. So I did start out in healthcare right out of, you know, university. I had an undergraduate and a master's degree. And I do tell everyone now, looking back at my career, I think it was super helpful for me because I learned a lot about human communication, and it has done me very well over the years to really try to understand what environments I'm in and what kind of individuals around the world culturally. So I'm really blessed that I had that opportunity to work in healthcare, and by the way, a shout out to all of our healthcare workers that has helped us get through almost three years of COVID and flu and neurovirus and everything else. So started out there and then kind of almost accidentally got into technology. My first small company I worked for was a company called Keyfile Corporation, which did workflow and document management out of Nashua, New Hampshire. And they were a Microsoft goal partner. And that is actually how I got into big tech world. We ran on exchange, for everybody who knows that term exchange, and we were a large small partner, but large in the world of exchange. And those were the days when you would, the late nineties, you would go and be in the same room with Bill Gates and Steve Ballmer. And I really fell in love with Microsoft back then. I thought to myself, wow, if I could work for a big tech company, I got to hear Bill on stage about saving, he would talk about saving the world. And guess what my next step was? I actually got a job at Microsoft, took a pay cut and a job downgrade. I tell this story all the time. Took like three downgrades in my role. I had been a SVP and went to a manager, and it's one of the best moves I ever made. And I shared that because I really didn't know the world of big tech, and I had to start from the ground up and relearn it. I did that, I just really loved that job. I was at Microsoft from 2000 to 2010, where I eventually ran all of the U.S. federal government business, which was a multi-billion dollar business. And then I had the great privilege of meeting an amazing man, Andy Jassy, who I thought was just unbelievable in his insights and knowledge and openness to understanding new markets. And we talked about government and how government needed the same great technology as every startup. And that led to me going to work for Andy in 2010 and starting up our worldwide public sector business. And I pinch myself some days because we went from two people, no offices, to the time I left we had over 10,000 people, billions in revenue, and 172 countries and had done really amazing work. I think changing the way public sector and government globally really thought about their use of technology and Cloud computing in general. And that kind of has been my career. You know, I was there till 2020, 21 and then did a small stint at Splunk, a small stint back at Microsoft doing a couple projects for Microsoft with CEO, Satya Nadella, who is also an another amazing CEO and leader. And then Dave called me, and I'm at Flexport, so I couldn't be more honored, John. I've just had such an amazing career working with amazing individuals. >> Yeah, I got to say the Amazon One well-documented, certainly by theCUBE and our coverage. We watched you rise and scale that thing. And like I said at a time, this will when we look back as a historic run because of the build out. I mean as a zero to massive billions at a historic time where government was transforming, I would say Microsoft had a good run there with Fed, but it was already established stuff. Federal business was like, you know, blocking and tackling. The Amazon was pure build out. So I have to ask you, what was your big learnings? Because one, you're a Seattle big tech company kind of entrepreneurial in the sense of you got, here's some working capital seed finance and go build that thing, and you're in DC and you're a woman. What did you learn? >> I learned that you really have to have a lot of grit. You, my mom and dad, these are kind of more southern roots words, but stick with itness, you know. you can't give up and no's not in your vocabulary. I found no is just another way to get to yes. That you have to figure out what are all the questions people are going to ask you. I learned to be very patient, and I think one of the things John, for us was our secret sauce was we said to ourselves, if we're going to do something super transformative and truly disruptive, like Cloud computing, which the government really had not utilized, we had to be patient. We had to answer all their questions, and we could not judge in any way what they were thinking because if we couldn't answer all those questions and prove out the capabilities of Cloud computing, we were not going to accomplish our goals. And I do give so much credit to all my colleagues there from everybody like Steve Schmidt who was there, who's still there, who's the CISO, and Charlie Bell and Peter DeSantis and the entire team there that just really helped build that business out. Without them, you know, we would've just, it was a team effort. And I think that's the thing I loved about it was it was not just sales, it was product, it was development, it was data center operations, it was legal, finance. Everybody really worked as a team and we were on board that we had to make a lot of changes in the government relations team. We had to go into Capitol Hill. We had to talk to them about the changes that were required and really get them to understand why Cloud computing could be such a transformative game changer for the way government operates globally. >> Well, I think the whole world and the tech world can appreciate your work and thank you later because you broke down those walls asking those questions. So great stuff. Now I got to say, you're in kind of a similar role at Flexport. Again, transformative supply chain, not new. Computing wasn't new when before Cloud came. Supply chain, not a new concept, is undergoing radical change and transformation. Online, software supply chain, hardware supply chain, supply chain in general, shipping. This is a big part of our economy and how life is working. Similar kind of thing going on, build out, growth, scale. >> It is, it's very much like that, John, I would say, it's, it's kind of a, the model with freight forwarding and supply chain is fairly, it's not as, there's a lot of technology utilized in this global supply chain world, but it's not integrated. You don't have a common operating picture of what you're doing in your global supply chain. You don't have easy access to the information and visibility. And that's really, you know, I was at a conference last week in LA, and it was, the themes were so similar about transparency, access to data and information, being able to act quickly, drive change, know what was happening. I was like, wow, this sounds familiar. Data, AI, machine learning, visibility, common operating picture. So it is very much the same kind of themes that you heard even with government. I do believe it's an industry that is going through transformation and Flexport has been a group that's come in and said, look, we have this amazing idea, number one to give access to everyone. We want every small business to every large business to every government around the world to be able to trade their goods, think about supply chain logistics in a very different way with information they need and want at their fingertips. So that's kind of thing one, but to apply that technology in a way that's very usable across all systems from an integration perspective. So it's kind of exciting. I used to tell this story years ago, John, and I don't think Michael Dell would mind that I tell this story. One of our first customers when I was at Keyfile Corporation was we did workflow and document management, and Dell was one of our customers. And I remember going out to visit them, and they had runners and they would run around, you know, they would run around the floor and do their orders, right, to get all those computers out the door. And when I think of global trade, in my mind I still see runners, you know, running around and I think that's moved to a very digital, right, world that all this stuff, you don't need people doing this. You have machines doing this now, and you have access to the information, and you know, we still have issues resulting from COVID where we have either an under-abundance or an over-abundance of our supply chain. We still have clogs in our shipping, in the shipping yards around the world. So we, and the ports, so we need to also, we still have some clearing to do. And that's the reason technology is important and will continue to be very important in this world of global trade. >> Yeah, great, great impact for change. I got to ask you about Flexport's inclusion, diversity, and equity programs. What do you got going on there? That's been a big conversation in the industry around keeping a focus on not making one way more than the other, but clearly every company, if they don't have a strong program, will be at a disadvantage. That's well reported by McKinsey and other top consultants, diverse workforces, inclusive, equitable, all perform better. What's Flexport's strategy and how are you guys supporting that in the workplace? >> Well, let me just start by saying really at the core of who I am, since the day I've started understanding that as an individual and a female leader, that I could have an impact. That the words I used, the actions I took, the information that I pulled together and had knowledge of could be meaningful. And I think each and every one of us is responsible to do what we can to make our workplace and the world a more diverse and inclusive place to live and work. And I've always enjoyed kind of the thought that, that I could help empower women around the world in the tech industry. Now I'm hoping to do my little part, John, in that in the supply chain and global trade business. And I would tell you at Flexport we have some amazing women. I'm so excited to get to know all. I've not been there that long yet, but I'm getting to know we have some, we have a very diverse leadership team between men and women at Dave's level. I have some unbelievable women on my team directly that I'm getting to know more, and I'm so impressed with what they're doing. And this is a very, you know, while this industry is different than the world I live in day to day, it's also has a lot of common themes to it. So, you know, for us, we're trying to approach every day by saying, let's make sure both our interviewing cycles, the jobs we feel, how we recruit people, how we put people out there on the platforms, that we have diversity and inclusion and all of that every day. And I can tell you from the top, from Dave and all of our leaders, we just had an offsite and we had a big conversation about this is something. It's a drum beat that we have to think about and live by every day and really check ourselves on a regular basis. But I do think there's so much more room for women in the world to do great things. And one of the, one of the areas, as you know very well, we lost a lot of women during COVID, who just left the workforce again. So we kind of went back unfortunately. So we have to now move forward and make sure that we are giving women the opportunity to have great jobs, have the flexibility they need as they build a family, and have a workplace environment that is trusted for them to come into every day. >> There's now clear visibility, at least in today's world, not withstanding some of the setbacks from COVID, that a young girl can look out in a company and see a path from entry level to the boardroom. That's a big change. A lot than even going back 10, 15, 20 years ago. What's your advice to the folks out there that are paying it forward? You see a lot of executive leaderships have a seat at the table. The board still underrepresented by most numbers, but at least you have now kind of this solidarity at the top, but a lot of people doing a lot more now than I've seen at the next levels down. So now you have this leveled approach. Is that something that you're seeing more of? And credit compare and contrast that to 20 years ago when you were, you know, rising through the ranks? What's different? >> Well, one of the main things, and I honestly do not think about it too much, but there were really no women. There were none. When I showed up in the meetings, I literally, it was me or not me at the table, but at the seat behind the table. The women just weren't in the room, and there were so many more barriers that we had to push through, and that has changed a lot. I mean globally that has changed a lot in the U.S. You know, if you look at just our U.S. House of Representatives and our U.S. Senate, we now have the increasing number of women. Even at leadership levels, you're seeing that change. You have a lot more women on boards than we ever thought we would ever represent. While we are not there, more female CEOs that I get an opportunity to see and talk to. Women starting companies, they do not see the barriers. And I will share, John, globally in the U.S. one of the things that I still see that we have that many other countries don't have, which I'm very proud of, women in the U.S. have a spirit about them that they just don't see the barriers in the same way. They believe that they can accomplish anything. I have two sons, I don't have daughters. I have nieces, and I'm hoping someday to have granddaughters. But I know that a lot of my friends who have granddaughters today talk about the boldness, the fortitude, that they believe that there's nothing they can't accomplish. And I think that's what what we have to instill in every little girl out there, that they can accomplish anything they want to. The world is theirs, and we need to not just do that in the U.S., but around the world. And it was always the thing that struck me when I did all my travels at AWS and now with Flexport, I'm traveling again quite a bit, is just the differences you see in the cultures around the world. And I remember even in the Middle East, how I started seeing it change. You've heard me talk a lot on this program about the fact in both Saudi and Bahrain, over 60% of the tech workers were females and most of them held the the hardest jobs, the security, the architecture, the engineering. But many of them did not hold leadership roles. And that is what we've got to change too. To your point, the middle, we want it to get bigger, but the top, we need to get bigger. We need to make sure women globally have opportunities to hold the most precious leadership roles and demonstrate their capabilities at the very top. But that's changed. And I would say the biggest difference is when we show up, we're actually evaluated properly for those kind of roles. We have a ways to go. But again, that part is really changing. >> Can you share, Teresa, first of all, that's great work you've done and I wan to give you props of that as well and all the work you do. I know you champion a lot of, you know, causes in in this area. One question that comes up a lot, I would love to get your opinion 'cause I think you can contribute heavily here is mentoring and sponsorship is huge, comes up all the time. What advice would you share to folks out there who were, I won't say apprehensive, but maybe nervous about how to do the networking and sponsorship and mentoring? It's not just mentoring, it's sponsorship too. What's your best practice? What advice would you give for the best way to handle that? >> Well yeah, and for the women out there, I would say on the mentorship side, I still see mentorship. Like, I don't think you can ever stop having mentorship. And I like to look at my mentors in different parts of my life because if you want to be a well-rounded person, you may have parts of your life every day that you think I'm doing a great job here and I definitely would like to do better there. Whether it's your spiritual life, your physical life, your work life, you know, your leisure life. But I mean there's, and there's parts of my leadership world that I still seek advice from as I try to do new things even in this world. And I tried some new things in between roles. I went out and asked the people that I respected the most. So I just would say for sure have different mentorships and don't be afraid to have that diversity. But if you have mentorships, the second important thing is show up with a real agenda and questions. Don't waste people's time. I'm very sensitive today. If you're, if you want a mentor, you show up and you use your time super effectively and be prepared for that. Sponsorship is a very different thing. And I don't believe we actually do that still in companies. We worked, thank goodness for my great HR team. When I was at AWS, we worked on a few sponsorship programs where for diversity in general, where we would nominate individuals in the company that we felt that weren't, that had a lot of opportunity for growth, but they just weren't getting a seat at the table. And we brought 'em to the table. And we actually kind of had a Chatham House rules where when they came into the meetings, they had a sponsor, not a mentor. They had a sponsor that was with them the full 18 months of this program. We would bring 'em into executive meetings. They would read docs, they could ask questions. We wanted them to be able to open up and ask crazy questions without, you know, feeling wow, I just couldn't answer this question in a normal environment or setting. And then we tried to make sure once they got through the program that we found jobs and support and other special projects that they could go do. But they still had that sponsor and that group of individuals that they'd gone through the program with, John, that they could keep going back to. And I remember sitting there and they asked me what I wanted to get out of the program, and I said two things. I want you to leave this program and say to yourself, I would've never had that experience if I hadn't gone through this program. I learned so much in 18 months. It would probably taken me five years to learn. And that it helped them in their career. The second thing I told them is I wanted them to go out and recruit individuals that look like them. I said, we need diversity, and unless you all feel that we are in an inclusive environment sponsoring all types of individuals to be part of this company, we're not going to get the job done. And they said, okay. And you know, but it was really one, it was very much about them. That we took a group of individuals that had high potential and a very diverse with diverse backgrounds, held 'em up, taught 'em things that gave them access. And two, selfishly I said, I want more of you in my business. Please help me. And I think those kind of things are helpful, and you have to be thoughtful about these kind of programs. And to me that's more sponsorship. I still have people reach out to me from years ago, you know, Microsoft saying, you were so good with me, can you give me a reference now? Can you talk to me about what I should be doing? And I try to, I'm not pray 100%, some things pray fall through the cracks, but I always try to make the time to talk to those individuals because for me, I am where I am today because I got some of the best advice from people like Don Byrne and Linda Zecker and Andy Jassy, who were very honest and upfront with me about my career. >> Awesome. Well, you got a passion for empowering women in tech, paying it forward, but you're quite accomplished and that's why we're so glad to have you on the program here. President and Chief Commercial Officer at Flexport. Obviously storied career and your other jobs, specifically Amazon I think, is historic in my mind. This next chapter looks like it's looking good right now. Final question for you, for the few minutes you have left. Tell us what you're up to at Flexport. What's your goals as President, Chief Commercial Officer? What are you trying to accomplish? Share a little bit, what's on your mind with your current job? >> Well, you kind of said it earlier. I think if I look at my own superpowers, I love customers, I love partners. I get my energy, John, from those interactions. So one is to come in and really help us build even a better world class enterprise global sales and marketing team. Really listen to our customers, think about how we interact with them, build the best executive programs we can, think about new ways that we can offer services to them and create new services. One of my favorite things about my career is I think if you're a business leader, it's your job to come back around and tell your product group and your services org what you're hearing from customers. That's how you can be so much more impactful, that you listen, you learn, and you deliver. So that's one big job. The second job for me, which I am so excited about, is that I have an amazing group called flexport.org under me. And flexport.org is doing amazing things around the world to help those in need. We just announced this new funding program for Tech for Refugees, which brings assistance to millions of people in Ukraine, Pakistan, the horn of Africa, and those who are affected by earthquakes. We just took supplies into Turkey and Syria, and Flexport, recently in fact, just did sent three air shipments to Turkey and Syria for these. And I think we did over a hundred trekking shipments to get earthquake relief. And as you can imagine, it was not easy to get into Syria. But you know, we're very active in the Ukraine, and we are, our goal for flexport.org, John, is to continue to work with our commercial customers and team up with them when they're trying to get supplies in to do that in a very cost effective, easy way, as quickly as we can. So that not-for-profit side of me that I'm so, I'm so happy. And you know, Ryan Peterson, who was our founder, this was his brainchild, and he's really taken this to the next level. So I'm honored to be able to pick that up and look for new ways to have impact around the world. And you know, I've always found that I think if you do things right with a company, you can have a beautiful combination of commercial-ity and giving. And I think Flexport does it in such an amazing and unique way. >> Well, the impact that they have with their system and their technology with logistics and shipping and supply chain is a channel for societal change. And I think that's a huge gift that you have that under your purview. So looking forward to finding out more about flexport.org. I can only imagine all the exciting things around sustainability, and we just had Mobile World Congress for Big Cube Broadcast, 5Gs right around the corner. I'm sure that's going to have a huge impact to your business. >> Well, for sure. And just on gas emissions, that's another thing that we are tracking gas, greenhouse gas emissions. And in fact we've already reduced more than 300,000 tons and supported over 600 organizations doing that. So that's a thing we're also trying to make sure that we're being climate aware and ensuring that we are doing the best job we can at that as well. And that was another thing I was honored to be able to do when we were at AWS, is to really cut out greenhouse gas emissions and really go global with our climate initiatives. >> Well Teresa, it's great to have you on. Security, data, 5G, sustainability, business transformation, AI all coming together to change the game. You're in another hot seat, hot roll, big wave. >> Well, John, it's an honor, and just thank you again for doing this and having women on and really representing us in a big way as we celebrate International Women's Day. >> I really appreciate it, it's super important. And these videos have impact, so we're going to do a lot more. And I appreciate your leadership to the industry and thank you so much for taking the time to contribute to our effort. Thank you, Teresa. >> Thank you. Thanks everybody. >> Teresa Carlson, the President and Chief Commercial Officer of Flexport. I'm John Furrier, host of theCUBE. This is International Women's Day broadcast. 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>>Hello, everyone. Welcome to the cubes coverage here. New York city for AWS Amazon web services summit 2022. I'm John furrier, host of the cube with Dave ante. My co-host. We are breaking it down, getting an update on the ecosystem. As the GDP drops, inflations up gas prices up the enterprise continues to grow. We're seeing exceptional growth. We're here on the ground floor. Live at the Summit's packed house, 10,000 people. Eric Bradley's here. Chief STR at ETR, one of the premier enterprise research firms out there, partners with the cube and powers are breaking analysis that Dave does check that out as the hottest podcast in enterprise. Eric. Great to have you on the cube. Thanks for coming on. >>Thank you so much, John. I really appreciate the collaboration always. >>Yeah. Great stuff. Your data's amazing ETR folks watching check out ETR. They have a unique formula, very accurate. We love it. It's been moving the market. Congratulations. Let's talk about the market right now. This market is booming. Enterprise is the hottest thing, consumers kind of in the toilet. Okay. I said that all right, back out devices and, and, and consumer enterprise is still growing. And by the way, this first downturn, the history of the world where hyperscalers are on full pumping on all cylinders, which means they're still powering the revolution. >>Yeah, it's true. The hyperscalers were basically at this two sun system when Microsoft and an AWS first came around and everything was orbiting around it. And we're starting to see that sun cool off a little bit, but we're talking about a gradient here, right? When we say cool off, we're not talking to shutdown, it's still burning hot. That's for sure. And I can get it to some of the macro data in a minute, if that's all right. Or do you want me to go right? No, go go. Right. Yeah. So right now we just closed our most recent survey and that's macro and vendor specific. We had 1200 people talk to us on the macro side. And what we're seeing here is a cool down in spending. We originally had about 8.5% increase in budgets. That's cool down is 6.5 now, but I'll say with the doom and gloom and the headlines that we're seeing every day, 6.5% growth coming off of what we just did the last couple of years is still pretty fantastic as a backdrop. >>Okay. So you, you started to see John mentioned consumer. We saw that in Snowflake's earnings. For example, we, we certainly saw, you know, Walmart, other retailers, the FA Facebooks of the world where consumption was being dialed down, certain snowflake customers. Not necessarily, they didn't have mentioned any customers, but they were able to say, all right, we're gonna dial down, consumption this quarter, hold on until we saw some of that in snowflake results and other results. But at the same time, the rest of the industry is booming. But your data is showing softness within the fortune 500 for AWS, >>Not only AWS, but fortune 500 across the board. Okay. So going back to that larger macro data, the biggest drop in spending that we captured is fortune 500, which is surprising. But at the same time, these companies have a better purview into the economy. In general, they tend to see things further in advance. And we often remember they spend a lot of money, so they don't need to play catch up. They'll easily more easily be able to pump the brakes a little bit in the fortune 500. But to your point, when we get into the AWS data, the fortune 500 decrease seems to be hitting them a little bit more than it is Azure and GCP. I >>Mean, we're still talking about a huge business, right? >>I mean, they're catching up. I mean, Amazon has been transforming from owning the developer cloud startup cloud decade ago to really putting a dent on the enterprise as being number one cloud. And I still contest that they're number one by a long ways, but Azure kicking ass and catching up. Okay. You seeing people move to Azure, you got Charlie bell over there, Sean, by former Amazonians, Theresa Carlson, people are going over there, there there's lift over at Azure. >>There certainly is. >>Is there kinks in the arm or for AWS? There's >>A couple of kinks, but I think your point is really good. We need to take a second there. If you're talking about true pass or infrastructure is a service true cloud compute. I think AWS still is the powerhouse. And a lot of times the, the data gets a little muddied because Azure is really a hosted platform for applications. And you're not really sure where that line is drawn. And I think that's an important caveat to make, but based on the data, yes, we are seeing some kinks in the armor for AWS. Yes. Explain. So right now, a first of all caveat, 40% net score, which is our proprietary spending metric across the board. So we're not like raising any alarms here. It's still strong that said there are declines and there are declines pretty much across the board. The only spot we're not seeing a decline at all is in container, spend everything else is coming down specifically. We're seeing it come down in data analytics, data warehousing, and M I, which is a little bit of a concern because that, that rate of decline is not the same with Azure. >>Okay. So I gotta ask macro, I see the headwinds on the macro side, you pointed that out. Is there any insight into any underlying conditions that might be there on AWS or just a chronic kind of situational thing >>Right now? It seems situational. Other than that correlation between their big fortune 500, you know, audience and that being our biggest decline. The other aspect of the macro survey is we ask people, if you are planning to decline spend, how do you plan on doing it? And the number two answer is taking a look at our cloud spend and auditing it. So they're kind say, all right, you know, for the last 10 years it's been drunken, sail or spend, I >>Was gonna use that same line, you know, >>Cloud spend, just spend and we'll figure it out later, who cares? And then right now it's time to tighten the belts a little bit, >>But this is part of the allure of cloud at some point. Yeah. You, you could say, I'm gonna, I'm gonna dial it down. I'm gonna rein it in. So that's part of the reason why people go to the cloud. I want to, I wanna focus in on the data side of things and specifically the database. Let, just to give some context if, and correct me if I'm, I'm a little off here, but snowflake, which hot company, you know, on the planet, their net score was up around 80% consistently. It it's dropped down the last, you know, quarter, last survey to 60%. Yeah. So still highly, highly elevated, but that's relative to where Amazon is much larger, but you're saying they're coming down to the 40% level. Is that right? >>Yeah, they are. And I remember, you know, when I first started doing this 10 years ago, AWS at a 70%, you know, net score as well. So what's gonna happen over time is those adoptions are gonna get less and you're gonna see more flattening of spend, which ultimately is going to lower the score because we're looking for expansion rates. We wanna see adoption and increase. And when you see flattening a spend, it starts to contract a little bit. And you're right. Snowflake also was in the stratosphere that cooled off a little bit, but still, you know, very strong and AWS is coming down. I think the reason why it's so concerning is because a it's within the fortune 500 and their rate of decline is more than Azure right >>Now. Well, and, and one of the big trends you're seeing in database is this idea of converging function. In other words, bringing transaction and analytics right together at snowflake summit, they added the capability to handle transaction data, Mongo DB, which is largely mostly transactions added the capability in June to bring in analytic data. You see data bricks going from data engineering and data science now getting into snowflake space and analytics. So you're seeing that convergence Oracle is converging with my SQL heat wave and their core databases, couch base couch base is doing the same. Maria do virtually all these database companies are, are converging their platforms with the exception of AWS. AWS is still the right tool for the right job. So they've got Aurora, they've got RDS, they've got, you know, a dynamo DV, they've got red, they've got, you know, going on and on and on. And so the question everybody's asking is will that change? Will they start to sort of cross those swim lanes? We haven't seen it thus far. How is that affecting the data >>Performance? I mean, that's fantastic analysis. I think that's why we're seeing it because you have to be in the AWS ecosystem and they're really not playing nicely with others in the sandbox right now that now I will say, oh, Amazon's not playing nicely. Well, no, no. Simply to your point though, that there, the other ones are actually bringing in others at consolidating other different vendor types. And they're really not. You know, if you're in AWS, you need to stay within AWS. Now I will say their tools are fantastic. So if you do stay within AWS, they have a tool for every job they're advanced. And they're incredible. I think sometimes the complexity of their tools hurts them a little bit. Cause to your point earlier, AWS started as a developer-centric type of cloud. They have moved on to enterprise cloud and it's a little bit more business oriented, but their still roots are still DevOps friendly. And unless you're truly trained, AWS can be a little scary. >>So a common use case is I'm gonna be using Aurora for my transaction system and then I'm gonna ETL it into Redshift. Right. And, and I, now I have two data stores and I have two different sets of APIs and primitives two different teams of skills. And so that is probably causing some friction and complexity in the customer base that again, the question is, will they begin to expand some of those platforms to minimize some of that friction? >>Well, yeah, this is the question I wanted to ask on that point. So I've heard from people inside Amazon don't count out Redshift, we're making, we're catching up. I think that's my word, but they were kind of saying that right. Cuz Redshift is good, good database, but they're adding a lot more. So you got snowflake success. I think it's a little bit of a jealousy factor going on there within Redshift team, but then you got Azure synapse with the Synap product synapse. Yep. And then you got big query from Google big >>Query. Yep. >>What's the differentiation. What are you seeing for the data for the data warehouse or the data clouds that are out there for the customers? What's the data say, say to us? >>Yeah, unfortunately the data's showing that they're dropping a little bit whose day AWS is dropping a little bit now of their data products, Redshift and RDS are still the two highest of them, but they are starting to decline. Now I think one of the great data points that we have, we just closed the survey is we took a comparison of the legacy data. Now please forgive me for the word legacy. We're gonna anger a few people, but we Gotter data Oracle on-prem, we've got IBM. Some of those more legacy data warehouse type of names. When we look at our art survey takers that have them where their spend is going, that spends going to snowflake first, and then it's going to Google and then it's going to Microsoft Azure and, and AWS is actually declining in there. So when you talk about who's taking that legacy market share, it's not AWS right now. >>So legacy goes to legacy. So Microsoft, >>So, so let's work through in a little context because Redshift really was the first to take, you know, take the database to the cloud. And they did that by doing a one time license deal with par XL, which was an on-prem database. And then they re-engineered it, they did a fantastic job, but it was still engineered for on-prem. Then you along comes snowflake a couple years later and true cloud native, same thing with big query. Yep. True cloud native architecture. So they get a lot of props. Now what, what Amazon did, they took a page outta of the snowflake, for example, separating compute from storage. Now of course what's what, what Amazon did is actually not really completely separating like snowflake did they couldn't because of the architecture, they created a tearing system that you could dial down the compute. So little nuances like that. I understand. But at the end of the day, what we're seeing from snowflake is the gathering of an ecosystem in this true data cloud, bringing in different data types, they got to the public markets, data bricks was not able to get to the public markets. Yeah. And think is, is struggling >>And a 25 billion evaluation. >>Right. And so that's, that's gonna be dialed down, struggling somewhat from a go to market standpoint where snowflake has no troubles from a go to market. They are the masters at go to market. And so now they've got momentum. We talked to Frank sluman at the snowflake. He basically said, I'm not taking the foot off the gas, no way. Yeah. We, few of our large, you know, consumer customers dialed things down, but we're going balls to the >>Wall. Well, if you look at their show before you get in the numbers, you look at the two shows. Snowflake had their summit in person in Vegas. Data bricks has had their show in San Francisco. And if you compare the two shows, it's clear, who's winning snowflake is blew away from a, from a market standpoint. And we were at snowflake, but we weren't at data bricks, but there was really nothing online. I heard from sources that it was like less than 3000 people. So >>Snowflake was 1900 people in 2019, nearly 10,000. Yeah. In 2020, >>It's gonna be fun to sort of track that as a, as an odd caveat to say, okay, let's see what that growth is. Because in fairness, data, bricks, you know, a little bit younger, Snowflake's had a couple more years. So I'd be curious to see where they are. Their, their Lakehouse paradigm is interesting. >>Yeah. And I think it's >>And their product first company, yes. Their go to market might be a little bit weak from our analysis, but that, but they'll figure it out. >>CEO's pretty smart. But I think it's worth pointing out. It's like two different philosophies, right? It is. Snowflake is come into our data cloud. That's their proprietary environment. They're the, they think of the iPhone, right? End to end. We, we guarantee it's all gonna work. And we're in control. Snowflake is like, Hey, open source, no, bring in data bricks. I mean data bricks, open source, bring in this tool that too, now you are seeing snowflake capitulate a little bit. They announce, for instance, Apache iceberg support at their, at the snowflake summit. So they're tipping their cap to open source. But at the end of the day, they're gonna market and sell the fact that it's gonna run better in native snowflake. Whereas data bricks, they're coming at it from much more of an open source, a mantra. So that's gonna, you know, we'll see who look at, you had windows and you had apple, >>You got, they both want, you got Cal and you got Stanford. >>They both >>Consider, I don't think it's actually there yet. I, I find the more interesting dynamic right now is between AWS and snowflake. It's really a fun tit for tat, right? I mean, AWS has the S three and then, you know, snowflake comes right on top of it and announces R two, we're gonna do one letter, one number better than you. They just seem to have this really interesting dynamic. And I, and it is SLT and no one's betting against him. I mean, this guy's fantastic. So, and he hasn't used his war chest yet. He's still sitting on all that money that he raised to your point, that data bricks five, their timing just was a little off >>5 billion in >>Capital when Slootman hasn't used that money yet. So what's he gonna do? What can he do when he turns that on? He finds the right. >>They're making some acquisitions. They did the stream lit acquisitions stream. >>Fantastic >>Problem. With data bricks, their valuation is underwater. Yes. So they're recruiting and their MNAs. Yes. In the toilet, they cannot make the moves because they don't have the currency until they refactor the multiple, let the, this market settle. I I'm, I'm really nervous that they have to over factor the >>Valuation. Having said that to your point, Eric, the lake house architecture is definitely gaining traction. When you talk to practitioners, they're all saying, yeah, we're building data lakes, we're building lake houses. You know, it's a much, much smaller market than the enterprise data warehouse. But nonetheless, when you talk to practitioners that are actually doing things like self serve data, they're building data lakes and you know, snow. I mean, data bricks is right there. And as a clear leader in, in ML and AI and they're ahead of snowflake, right. >>And I was gonna say, that's the thing with data bricks. You know, you're getting that analytics at M I built into it. >>You know, what's ironic is I remember talking to Matt Carroll, who's CEO of auDA like four or five years ago. He came into the office in ma bro. And we were in temporary space and we were talking about how there's this new workload emerging, which combines AWS for cloud infrastructure, snowflake for the simple data warehouse and data bricks for the ML AI, and then all now all of a sudden you see data bricks yeah. And snowflake going at it. I think, you know, to your point about the competition between AWS and snowflake, here's what I think, I think the Redshift team is, you know, doesn't like snowflake, right. But I think the EC two team loves it. Loves it. Exactly. So, so I think snowflake is driving a lot of, >>Yeah. To John's point, there is plenty to go around. And I think I saw just the other day, I saw somebody say less than 40% of true global 2000 organizations believe that they're at real time data analytics right now. They're not really there yet. Yeah. Think about how much runway is left and how many tools you need to get to real time streaming use cases. It's complex. It's not easy. >>It's gonna be a product value market to me, snowflake in data bricks. They're not going away. Right. They're winning architectures. Yeah. In the cloud, what data bricks did would spark and took over the Haddo market. Yeah. To your point. Now that big data, market's got two players, in my opinion, snow flicking data, bricks converging. Well, Redshift is sitting there behind the curtain, their wild card. Yeah. They're wild card, Dave. >>Okay. I'm gonna give one more wild card, which is the edge. Sure. Okay. And that's something that when you talk about real time analytics and AI referencing at the edge, there aren't a lot of database companies in a position to do that. You know, Amazon trying to put outposts out there. I think it runs RDS. I don't think it runs any other database. Right. Snowflake really doesn't have a strong edge strategy when I'm talking the far edge, the tiny edge. >>I think, I think that's gonna be HPE or Dell's gonna own the outpost market. >>I think you're right. I'll come back to that. Couch base is an interesting company to watch with Capella Mongo. DB really doesn't have a far edge strategy at this point, but couch base does. And that's one to watch. They're doing some really interesting things there. And I think >>That, but they have to leapfrog bongo in my >>Opinion. Yeah. But there's a new architecture emerging at the edge and it's gonna take a number of years to develop, but it could eventually from an economic standpoint, seep back into the enterprise arm base, low end, take a look at what couch base is >>Doing. They hired an Amazon guard system. They have to leapfrog though. They need to, they can't incrementally who's they who >>Couch >>Base needs to needs to make a big move in >>Leap frog. Well, think they're trying to, that's what Capella is all about was not only, you know, their version of Atlas bringing to the cloud couch base, but it's also stretching it out to the edge and bringing converged database analytics >>Real quick on the numbers. Any data on CloudFlare, >>I was, I've been sitting here trying to get the word CloudFlare out my mouth the whole time you guys were talking, >>Is this another that's innovated in the ecosystem. So >>Platform, it was really simple for them early on, right? They're gonna get that edge network out there and they're gonna steal share from Akamai. Then they started doing exactly what Akamai did. We're gonna start rolling out some security. Their security is fantastic. Maybe some practitioners are saying a little bit too much, cuz they're not focused on one thing or another, but they are doing extremely well. And now they're out there in the cloud as well. You >>Got S3 compare. They got two, they got an S3 competitor. >>Exactly. So when I'm listening to you guys talk about, you know, a, a couch base I'm like, wow, those two would just be an absolute fantastic, you know, combination between the two of them. You mean >>CloudFlare >>Couch base. Yeah. >>I mean you got S3 alternative, right? You got a Mongo alternative basically in my >>Opinion. And you're going and you got the edge and you got the edge >>Network with security security, interesting dynamic. This brings up the super cloud date. I wanna talk about Supercloud because we're seeing a trend on we're reporting this since last year that basically people don't have to spend the CapEx to be cloud scale. And you're seeing Amazon enable that, but snowflake has become a super cloud. They're on AWS. Now they're on Azure. Why not tan expansion expand the market? Why not get that? And then it'll be on Google next, all these marketplaces. So the emergence of this super cloud, and then the ability to make that across a substrate across multiple clouds is a strategy we're seeing. What do you, what do you think? >>Well, honestly, I'm gonna be really Frank here. The, everything I know about the super cloud I know from this guy. So I've been following his lead on this and I'm looking forward to you guys doing that conference and that summit coming up from a data perspective. I think what you're saying is spot on though, cuz those are the areas we're seeing expansion in without a doubt. >>I think, you know, when you talk about things like super cloud and you talk about things like metaverse, there's, there's a, there, there look every 15 or 20 years or so this industry reinvents itself and a new disruption comes out and you've got the internet, you've got the cloud, you've got an AI and VR layer. You've got, you've got machine intelligence. You've got now gaming. There's a new matrix, emerging, super cloud. Metaverse there's something happening out there here. That's not just your, your father's SAS or is or pass. Well, >>No, it's also the spend too. Right? So if I'm a company like say capital one or Goldman Sachs, my it spend has traditionally been massive every year. Yes. It's basically like tons of CapEx comes the cloud. It's an operating expense. Wait a minute, Amazon has all the CapEx. So I'm not gonna dial down my budget. I want a competitive advantage. So next thing they know they have a super cloud by default because they just pivoted their, it spend into new capabilities that they then can sell to the market in FinTech makes total sense. >>Right? They're building out a digital platform >>That would, that was not possible. Pre-cloud >>No, it wasn't cause you weren't gonna go put all that money into CapEx expenditure to build that out. Not knowing whether or not the market was there, but the scalability, the ability to spend, reduce and be flexible with it really changes that paradigm entire. >>So we're looking at this market now thinking about, okay, it might be Greenfield in every vertical. It might have a power law where you have a head of the long tail. That's a player like a capital one, an insurance. It could be Liberty mutual or mass mutual that has so much it and capital that they're now gonna scale it into a super cloud >>And they have data >>And they have the data tools >>And the tools. And they're gonna bring that to their constituents. Yes, yes. And scale it using >>Cloud. So that means they can then service the entire vertical as a service provider. >>And the industry cloud is becoming bigger and bigger and bigger. I mean, that's really a way that people are delivering to market. So >>Remember in the early days of cloud, all the banks thought they could build their own cloud. Yeah. Yep. Well actually it's come full circle. They're like, we can actually build a cloud on top of the cloud. >>Right. And by the way, they can have a private cloud in their super cloud. Exactly. >>And you know, it's interesting cause we're talking about financial services insurance, all the people we know spend money in our macro survey. Do you know the, the sector that's spending the most right now? It's gonna shock you energy utilities. Oh yeah. I was gonna, the energy utilities industry right now is the one spending the most money I saw largely cuz they're playing ketchup. But also because they don't have these type of things for their consumers, they need the consumer app. They need to be able to do that delivery. They need to be able to do metrics. And they're the they're, they're the one spending right >>Now it's an arms race, but the, the vector shifts to value creation. So >>It's it just goes back to your post when it was a 2012, the trillion dollar baby. Yeah. It's a multi-trillion dollar baby that they, >>The world was going my chassis post on Forbes, headline trillion dollar baby 2012. You know, I should add it's happening. That's >>On the end. Yeah, exactly. >>Trillions of babies, Eric. Great to have you on the key. >>Thank you so much guys. >>Great to bring the data. Thanks for sharing. Check out ETR. If you're into the enterprise, want to know what's going on. They have a unique approach, very accurate in their survey data. They got a great market basket of, of, of, of, of data questions and people and community. Check it out. Thanks for coming on and sharing with. >>Thank you guys. Always enjoy. >>We'll be back with more coverage here in the cube in New York city live at summit 22. I'm John fur with Dave ante. We'll be right back.

>> Voiceover: Live from Washington D.C., it's the Cube. Covering AWS Public Sector Summit. (upbeat music) Brought to you by Amazon Web Services. >> Welcome back everyone to the Cube's live coverage of the AWS Public Sector Summit here in wonderful Washington D.C. I'm your host, Rebecca Knight along with my co-host, John Furrier. We are welcoming Dave Levy to the program, he is the Vice President, Federal Government at AWS. Thank you so much for coming on the Cube. >> Yeah, thank you for having me. >> Rebecca: This is your first time, your first rodeo. >> It is my first time. >> Rebecca: Welcome. >> Glad to be here. >> You're now a Cube alumni, welcome to the Cube alumni club. >> Well exactly, right, exactly. So you have been with AWS for about two years now. AWS famously has this day one mentality. I want you to talk a little bit about the culture of the company and how the culture helps create more innovative products and services. >> Yeah, and it is always day one. You hear about that but truly working in my first two years, you really get the experience when you're here everyday, that excitement and that enthusiasm for customers. It's interesting and somebody was asking me the other day, how do you get influence inside of Amazon, how do you get you points across? And in large part because Amazon's not a PowerPoint culture, being charismatic or having some of those traits really doesn't carry the day. What really carries the day inside of Amazon is what customers want and so I can't tell you how many times in the first few years that I've been here that we have been in meetings, going through our customer working backwards process, where somebody has said, wait a minute, we heard customers say we prioritize these four things versus these three things. And that kind of sentiment carries a lot of currency inside of the business for what we prioritize and what's important to us and it's how we innovate on behalf of customers. So that's what happens everyday, it happens day one at AWS and it's been really exciting these first few years. >> That's been a great formula for Amazon. That long game as Bezos always says, Andy always says, customer first, customer-centric thinking. But this working backwards process we've learned, come to learn, it's really critical within Amazon. But also making sure customers have the right journey, right, they get what they need, they get value, lower costs, living with undifferentiated heavy lifting. I feel like I'm messaging for Amazon. (laughing) Got it memorized. I sit down and interview so many people from Amazon, I got the rap down but digital transformation is about the long game 'cause all the shifts that are going on now aren't incremental, small improvements, it's really moving the ball down the field, big time. So you're seeing major shifts within customer bases saying, like the CIA did in 2013, >> Dave: Sure. >> which was initially a hedge against big data, we heard on stage today, turned out to be a critical decision for their innovation, this modernization. Could you share some other customer experiences around this IT modernization trend that's, it's totally real, it's happening right now in D.C. in Public Sector. >> Sure, there are a lot of examples. IT modernization is something that takes on a lot of different forms and a lot of different agencies think about it in different ways but fundamentally, it's about taking the systems that are serving citizens or a war fighter and allowing for an ability and an agility to do things better and faster and cheaper and doing it in a way that continues to innovate. And you see a lot of examples of that. CMS has the 76 million records of Americans on AWS. You see large data sets starting to be hosted on AWS from agencies across the civilian sector. DOD is really starting to lean in on workloads that are traditional things like ERP. >> DOD is more than leaning in, they're really going big. There's a paper that they put out was very comprehensive-- >> Yeah, I think there's a tremendous advantage from this digital transformation and agencies are really just at the beginning of it. They're really beginning to see what flexibility it provides. I think the other thing that it's doing is it's really helping to modernize the workforce. It's allowing the IT workforce to start focusing on things that are really valuable instead of managing hardware or managing IT environment strictly. It's giving the ability to deliver solutions and that's really exciting, that's what modernization is doing. >> One of the things that comes up in the modernization talks, it's not that obvious on the mainstream press, but the whole red tape argument of government process. People process technology, again, we've done these conversations all the time but in each one, the process piece, there's red tape in all of them. People who go slower, the process has red tape in it but this idea of busting through and cutting the red tape. >> Dave: Yeah. >> All these bottlenecks, Teresa calls them blockers. >> Yeah. >> Right. That's her different word. >> Yeah, yeah. >> These are real, now people are identifying that they can be taken away, not just dealing with them. Your thoughts and reaction to that. >> Yeah, well, I agree. There's a lot of opportunity. Digitizing work flows gives you the opportunity to re-examine all of these operational processes which frankly, may have been in place for very sound reasons in the past but when you modernize and you digitize and you do it in a cloud way, you're going to start to see that some of those things and those processes that were in place, really aren't necessary any more. And it allows you to move faster, it gives you more speed and we're seeing that across customers and the US government. We're seeing it really everywhere. >> And one of the things you were saying too about the digitizing the work flow, it's really about ensuring that citizens, civilians or members of the armed forces are interacting with government in a more meaningful way. That is the overarching problem that you're trying to solve here. >> It is and it can be as simple as citizens getting the kind of content that they need from a modern website, accessing it quickly, going to higher level functions around chatbots and things like that. So these modern cloud architectures are allowing agencies to deliver services faster, deliver things to citizens in a way they haven't before. Could be citizens that need assistive technology. It's giving agencies the opportunity to do things around 508 compliance that they haven't done before. So it's really opening up the aperture for a lot of agencies on what they can deliver. >> We've been doing a lot of reporting around Jedi, the DOD, actually been following a lot of the white papers from a cloud perspective. We're not really in the political circle so we don't know sometimes whose toes we're stepping on when we poke round but one thing that's very clear from the agencies that I report, even here in the hallways this week, CIA and other agencies I've talked to, all talk about the modernization in the context of one common theme, data. Data is the critical piece of the equation and it's multifold, this single cloud with the workload objective or multiple clouds in an architecture like the DOD put out. So there's clear visibility on what it looks like architecturally, multicloud, some hybrid, some pure public cloud based on workloads, the right cloud with the right job and people are getting that. But data is evolving, the role of data 'cause you got AI which is fed by machine learning. This really is a game changer. How is that playing out in conversations that you're seeing with customers and talk about that dynamic because if you get it right, good things happen, if you get it wrong, you could be screwed. It's really one of those linchpin, core items, your thoughts. >> Every agency, virtually every agency we talk to, every customer we're talking to is saying that data is the most important thing, their data strategy. Data, you know, we've all heard the sayings, data has gravity, data is the new oil. So there's a lot of ways to characterize it but once you have the opportunity to get your data both unstructured and structured, in a place, in a cloud, in an environment where you can start to do things with it, create data lakes, you can start to apply analytics to it, build machine learning models in AI. Then you're really starting to get into delivering things that you haven't thought about before. And up until then it's been tough because the data, in a lot of our customers, has been spread out. It's been in different data centers, it's been in different environments, sometimes it's under somebody's desk. So this idea of data and data management is really exciting to a lot of our customers. >> Now a lot of people don't understand that there's also down, and this is what we're getting, we're hearing from customers as well is that, they set up the data lakes or whatever they're calling it, data strategy, data lake, whatever, then there's downstream benefits to having that data just materialize and as an anecdote to what is, you look at the Ground Station after we've had a couple great interviews here about Ground Station which I love by the way. I think that's totally the coolest thing because of the, well, the real impact is going to be great back hog, IoT is going to boom, blossom from it but it only happens because you got Amazon scale. So again, data has that similar dynamic where as you start collecting and managing it in a holistic way, new things emerge, new value emerges. >> Yeah, I would say-- >> What are some of those things that you're seeing with your customers there? >> I would say there are real-world challenges that our customers have to deal with with data, right. When you start to have volumes, terabytes, petabytes of data, they've got decisions to make. Do they expand the wall, knock out a wall and expand their data center and buy more appliances which require more heating, more cooling? Maybe they do do that but there's an alternative now. There's a place for that data to go and be safe and secure and they can start doing the things that they want to do with that data. And like you said, downstream effects. There are some things that they can do with that data that they don't even know about today, right, and Ground Station's a good example of that. >> You talk to people in the military, for example, because we just had Keith Alexander, our General, the General was on. They think tactical ads using data, save lives, protect our nation, et cetera but there's also the other benefit of it that has nothing to do with the tactical, it's a business value. The enablement is a huge conversation >> Dave: Sure. >> that you hear in these modernization trends. Not just the benefits tactically, but the enablement setup, talk about that dynamic. >> Well, you think about the data that is collected. You think about the valuable data at the VA and that has potential implications for population health and so this day is just enormously valuable. I think we're at the very beginning of what we can do with some of these things across federal and you look at agencies like Department of Interior and some of the data sets they have are just fascinating. What we can do. We've got millions of visitors to our national parks every day and we don't know what's possible with a lot of those data sets. >> Talk about some of the tools and techniques that are being used to work with that data and talk about AI and machine learning and how they have been a real game changer for some of your federal customers. >> Well, ML and AI is really, we're really at the very beginning of this transformation. I think in the fullness of time, the vast majority of applications are going to be effused with machine learning and artificial intelligence. I think that day is not too far away and they're using tools on our platform like SageMaker to make predictions in this data. And one of the great things about having a platform that has really three, different parts to the stack which are machine learning, that's where you have your frameworks. I say that's where all the really, really smart people live, all the data scientists that we're all so desperate for and then you've got that middle layer which are tools like our SageMaker which everyday developers can use. So if you've got geospatial data and you're trying to determine what's in a given area, everyday developers can use SageMaker to build machine learning models. Those are some of the things they're doing, very exciting. >> Hey, I want to get your thoughts on a comment that Teresa Carlson just made earlier today. I'm not sure she said this on camera or not but it was memorable. She said, "It used to be an aha moment with the cloud "but this year it's not, it's real, people now recognize "that cloud adoption is legit, proof is in the--" >> Rebecca: Cloud is the new normal. >> The proof is in the pudding, it's right there. You can start seeing evidence, all the doubting people out there can now see the evidence and make their own judgment, it's clear. >> Yeah. >> Cloud is of great benefit, creates disruption. As this continues to increase, and it is, numbers are there, see the business performance, what are the challenges and drivers for continued success? >> Yeah. I think the first conversation starter, so Teresa's spot on as she always is. I think the first conversation starter is always cost savings. That was the way everybody thought about the cloud in the beginning and I think there are cost savings that customers are going to realize. But I think the real value, the real reasons why customers do it is, there's an agility that happens when you move to cloud that you don't necessarily have in your other environments, there's the ability to move fast, to spin up a lot of capability in just a few minutes, in just even minutes and change the experience for users, change the experience for citizens. I think the other thing that cloud is delivering is this whole breadth of functionality that we didn't really have before. We talked about machine learning and AI but there are tools around IoT now. There's Greengrass on AWS which is simply AWS IoT inside. And places like John Deere, we have hundred thousands of telematically enabled tractors sending data back to planters. So customers are getting involved because there's this huge breadth of functionality. I think, and so that's exciting, those are the enablers, that's what's driving. I think some of the things that are getting in the way is, we've got a workforce by and large, especially in the federal government, well, this is new and that learning is happening, that enablement is happening about cloud. We're teaching about security in the cloud. It's a shared responsibility model. So it's the new normal, we know what can be done in the cloud but now there are some new paradigms about how to do it and AWS and a lot of our partners are out there talking about how to get that done. >> I want to get a double down on that because one of the things that we're doing a report on, I've been investigating, is kind of a boring topic but it's your world right on which is how Amazon bare-knuckled their way into this market through cost saving which for the federal government, I would say, is a great lead 'cause they care about cost savings. A financial institution in Wall Street might not care about cost savings. They might want arbitrage on the other side but again, government's government. You guys have earned, done the work to get all the certifications. Your team, Teresa's team has done that and now you're at the beginning of the next level. But procurement is really broken, right. I was talking to an official in an interview off the record and he said, I won't say his name till I can say it here, he said, "You know, we're living procurement in the 80s. "We still have a requirement to ship a manual "on a lot of these things." So the antiquated, inadequate procurement process is lagging so much that the technology shifts are happening in a shorter period of time. Amazon which produces thousands of new services every year and reinvents Jace's big slide thousands, next year it'll be probably 5000, who knows but it'll be a big number. That's happening, all this is happening right now, really fast but procurement's lagging behind it, really stunting the innovation equation, >> Dave: Yeah. >> the growth of innovation. Your thoughts on fixing that, how you get around it, all these old tripwire rules. >> Well, first I'll say, procurement reform is something that's on everybody's mind. This is, it's not just a blocker for cloud, it's a blocker for everybody. Technology is far outpacing what our federal government can do. So I don't, there's nobody that I talk to that thinks that we're headed in the right place with procurement reform, even our customers inside of the government. So I think what I'd say is it's really collective approach. It's an industry approach that's going to be taken to change a procurement, to help them adapt to modern laws. Do we need changes in the far perhaps, yes, but I think we need fundamental policy changes, a legislative approach to change procurement for technology. It's only going to move faster, you're right. Indie announced in 2018 I think, nearly 2000 services so you can expect there's going to be more this year. Part of that is understanding new models. Our marketplace, for example, is a way to buy and access software quickly, fast, even by the hour if necessary. That's a total-- >> Rebecca: Like Ground Station >> Yeah. >> in that way, yeah. >> By the minute if necessary. >> Yes, yes, yes. >> So it's a totally new paradigm. As far as how we're approaching now, it takes having good partners. We have good partners that are helping us with respect to contract vehicles. I think we're being transparent around how we bill, how these services translate, what's in the services that they're getting charged and I think agencies are starting to feel more comfortable with that. >> I learned a term from Charlie Bell, Engineer Lead for Amazon, did an interview, a term you guys use internally at Amazon called, dogs not barking. >> Dave: Yes. >> And it means that everyone, the barking dog everyone hears and they go after, they solve that problem. It's what you don't see, the blind spot, aka blind spots. What do you see in federal that's not barking >> Yeah, what are our dogs? >> that you're aware of? What keeps you up at night? >> What are our dogs not barking? >> John: Yeah. >> I would say, it really is our customer workforce. I think our customers really need to get enablement and training and support from us and the partner community on how to make this transition to cloud. It's incumbent upon us and it's incumbent upon the agencies to really deliver it. That does keep me up at night because this is new. This is new for, the ATO process is a little bit different. The accreditation process is different. So there's a lot of new things out there and if there's a dog that's not barking, it's somebody needs help and they're not really letting us-- >> They might not even know they need it. >> They don't know they need help or they're not saying that that they need help and they don't know where to go. >> Right. >> Right. >> They should come to you. >> Well, thanks for coming on. (laughing) >> Dave, thank you so much for coming on the Cube. >> Yeah, thank you, all right. >> Thank you, thank you. >> I'm Rebecca Knight for John Furrier. We will have more from the Cube AWS Public Sector Summit, stay tuned. (upbeat music)

>> Narrator: Live from Las Vegas, it's theCube covering AWS re:Invent 2017 presented by AWS, Intel, and our ecosystem of partners. (upbeat music) >> Okay, welcome back everyone. We're here live in Las Vegas. This is theCube's exclusive coverage of Amazon Web Services re:Invent 2017, our fifth year covering AWS re:Invent. I'm John Furrier the founder of SiliconANGLE Media with my co-host Stu Miniman. I'm so excited 45,000 people and boy, I remember when it was just a small, little, fast-growing company. We're here with Teresa Carlson who's been here with us the whole way. She's a Senior Vice President of Public Sector. Teresa, welcome to theCube, good to see you. >> I'm always glad to be here on theCube. >> So, you've been running public sector, you've been really, I've gotta say, I gave a tweet, not to sound that I'm fawning over you right now, but you've really grown the business in a significant way. As Andy was saying, a meaningful way. Take us through, because it's almost mind-blowing. We have already had a few guests on theCube. I went to your breakfast. You are changing the game, but not without scar tissue. You've done a lot of hard work to get there, so, one, congratulations, but give us a state-of-the-union right now for public sector, because you're winning, you're doing great, but it wasn't easy. >> No, it's not been easy, but it's been a lot of fun. I mean, it's been a lot of fun, in fact, as you said, this is our sixth year of doing re:Invent and yesterday or two days ago, we had a public sector breakfast and it was so full, we got shut down by the fire marshal. So that is when you know you've got customers and partners showing up, because they want to be there. We have grown significantly and that has been through the work of both working with customers and partners on security, compliance, policy, acquisition vehicles, to just make sure that we have the right balance of everything needed to really drive and grow the business in the right way. As I've talked about we didn't leave any stone unturned. We had to really go through all the hard processes to do this right and I think it really has paid off because you never want to take short-cuts. You wanna make sure you're doing the right thing in order for customers to have better technology, for us to help drive good government, good education. >> I gotta say, one of the big trends we're seeing here on siliconANGLE, theCube, and Wikibon is the public-private Partnerships are accelerating. You're seeing public sector help on security to the private sector, private sector helping government move faster and so you're seeing a balance and an equilibrium coming together, but also old guard companies sometimes have a federal division or a separate DNA culture. You guys don't, you have one culture at Amazon, but the striking thing for me, is that you're now enabling companies to get into public sector that couldn't before. So I wanted to ask you specifically, is it like that now, we're you're starting to see new people come in with solutions because you guys have done that heavy lifting where before they'd have to wait in line, get certified, are we seeing new solutions, are you enabling that, is that actually happening? >> It absolutely is happening and we never forget our roots of start-ups here at AWS, because they are really a huge reason why we exist and for public sector, I saw a change in my previous life I never had venture capitalists or private equity firms come and say we want our companies in government. We are creating new education tech companies, which was really not even heard of. >> It's a growth strategy for them. >> It's a huge growth strategy, so venture capitalist and private equity like Andreessen Horowitz, Madrona, C5, Bridgewater, we see tons and they come to us saying, we have this portfolio, can you help us talk to them about how they get into government? As a result of that, we do sales and marketing, we work with them on FedRAMP I-E slash security compliance. We ensure that they understand the elements and components of how they work in government and by the way, government loves that we are bringing in innovative new technologies. We can also do that through the marketplace, the AWS marketplace, which allows them to move faster, be more agile, and start getting that business. >> Teresa, I'm wondering if you could share a little more. You talk about innovation, we've been lovin' for years, I love when I talk about regional governments, education, you get non-profits under your umbrella, where it used to be, I didn't have the budget, I can't move fast. Now, we're seeing some great innovation from the private side as well as well as some of the public-private interactions. >> Definitely, in fact, I was in California about a month ago where we announced an innovation center with California Polytechnic University, CalPoly and the president there, Jeff Armstrong, it is amazing, they literally had been looking at what AWS was doing and they took the pillars that they'd been seeing us talk about for public sector and they created an innovation center to work on these opportunities and challenges and just as in public safety, health, agri, sex trafficking and child exploitation, through seeing what Thorn was doing in the International Center for Missing and Exploited Children. >> How is this leveling the playing field? Because everyone, citizens at least in the United States, I'm sure it's happening in other markets as well, they want the government to move faster. And you guys are like the freight train that's out of control speed-wise, just more and more services. How does the government keep up? Because I would imagine that if I am a government official or I'm the public sector, oh my God, I can't handle Amazon. I can't ride that beast, it's too strong. I mean do they say that, is that the wrong vibe, or are they more hey I want you to do, is it more your flywheel, do they have to get involved? What's the relation, what's the sentiment of the government? >> Well, they wanna move fast. In fact, in the U.S. government, the White House does have an entire initiative now on modernization. You're seeing countries like the U.K government go cloud native. You saw the country of Bahrain which is going all-in in the cloud and they've already established new policies and a cloud-first policy of moving. But I would tell you, if you look at groups like the intelligence community in the U.S. government, we just announced our secret region and that allows them to have top-secret capabilities, secret, unclassified in our GovCloud, so they have capabilities across the entire spectrum of workloads and what they've always said to us and our other customers is can we build cloud tools, can we build a cloud? Yes, but can we innovate at the rate and speed you're innovating? No, because we provide them innovation ahead of their demand. >> Yeah, Teresa, I remember when GovCloud launched and it was, like, wow, this is like AWS isn't just like a monolithic service around the globe and everything. It seems like secret region goes along that line. How does the dynamic between AWS as a whole and what you're doing in your organization, how do you work through that and kinda balance, I want services around the globe, yet meet the needs of your clients. >> On the GovCloud region, that was our first entre into doing something unique for government. That region has grown 185% every year since 2011 and we just announced a second region on the east coast for GovCloud, U.S. GovCloud. The interaction with our services team is amazing. Charlie Bell who runs all of our services, we have a tight relationship, we talk to our government customers in these regions, understand their priorities, then we roll them out and it's really that simple. They get the exact same thing in their classified regions as we give our other customers, it's just their network. >> Well, you got the date set, I'm looking at my picture here I took, June 20th and 21st, save the date, AWS Public Sector Summit, #AWSPSSummit as it's called on Twitter hashtag. Every year, you started out in a little conference room, in a ballroom, bigger hotel, now the convention center. Massive growth. >> And theCube was there this year, which I was happy. >> That makes it legitimate, and theCube's there, we'll be there this year, >> Good, yes. >> But of course, this is the growth. V.C.s, private equity, this is a growth market, this is not a unique, siloed market anymore. You guys have leveled the silos within Amazon, I mean you never had silos, but you are now agile to come to the government. What's next for you? You've done a great job, you're now cruising altitude, what's your growth strategy for Public Sector Summit, how are you going to take it to the next level? >> Well, even though we have grown a lot, thank you to our customers and partners, we really are just scratching the surface. It is day one still for us. Our customers are really just still getting going on a lot of mission critical workloads. They're moving in things they really hadn't thought about. They're starting to do things like higher more developers in government, so they can take advantage of the tools used, a lot you saw yesterday. But additionally, what we're seeing is we are spending a lot of time going into countries around the world, helping countries set a strategy for digital transformation. New jobs growth, new companies, economic development, how do they train and educate for a cloud-based workforce, we call it and that's really fun to go in and tell governments, look you really have to prepare your country for a digital transformation and again if you look at groups like Bahrain, what the U.K have done, they are doing that and they are making a massive transformation around this. >> Final question for you, what are you most proud of looking back since you joined AWS seven years ago. I think it was seven years ago you started? >> Yep, seven years ago this month. >> Congratulations, so what are you most proud of and then two, what do you think about the most as you execute day-to-day in growing the business? >> Well, I would say the fact that I have had an amazing brand to work with out of the gate Amazon was such a great brand, and the fact that, again, based on think big, Andy Jassy's leadership, really he and I having a conversation together saying, we can change the world and make it a better place and you've heard me say a lot in my openings, we have two themes that we talk about in public sector, which is paving the way for disruptive innovation and making the world a better place. And if I look back, it's really the things that we're helping to do this that we are driving new policies, companies are seeing results, agencies, and we are making the world a better place. I would say that's humbling and amazing and we're just getting going. >> As a chief of public sector, you're like, you've seen it grow and you're running it every day and you have a great team, do you ever have a pinch me moment once in a while? Kind of say, wow, what have you done? >> Well, I think the pinch me moments are when I hear the customers and partners tell me how fast they're moving and the results they have. We always have a goal of really working with our mission partners and we've hired now more than 17,000 veterans at Amazon and growing. It's things like that that we can do to really help that transformation and not just talk the talk, but walk the walk as a company. I would say for where we wanna go and what I sort of worry about our growth, I guess I worry and stay up a little late at night to make sure that we keep our hiring bar high, that we really maintain our focus on customer obsession, >> John: Security. >> Security is always on my mind. >> Do you sleep at all it must keep you up late a lot. >> No, I don't really, no. But the last thing I would say is just really thinking through ensuring that we're continually pushing hard, that we have a little bit of sharp elbows, going in we're trying to change policy, we don't give up on the things that really matter for doing this massive transformation, for countries, for state and local agencies, for feds, for educational institutions around cloud transformation. >> I really respect your results and I love your hard-charging style. It's fantastic, your success obviously speaks for itself. We'll see you at the Summit in June. This is theCube, Teresa Carlson The Chief of the Public Sector business, she's the Vice President of Public Sector. I'm John Furrier, Stu Miniman. More live coverage here at AWS re:Invent after this short break. (upbeat music)