(lively music) >> Good afternoon and welcome back to beautiful Las Vegas, Nevada, where we're here live from the show floor, all four days of AWS re:Invent. I'm Savannah Peterson, joined with my co-host Dave Vellante. Dave, how you doing? >> Good. Beautiful and chilly Las Vegas. Can't wait to get back to New England where it's warm. >> Balmy, New England this time of year in December. Wow, Dave, that's a bold statement. I am super excited about the conversation that we're going to be having next. And, you know, I'm not even going to tee it up. I just want to bring Dilip on. Dilip, thank you so much for being here. How you doing? >> Savannah, Dave, thank you so much. >> Hey, Dilip. >> Excited to be here. >> It's joy to have you. So, you have been working at Amazon for about 20 years. >> Almost. Almost. >> Yes. >> Feels like 20, 19 1/2. >> Which is very exciting. You've had a lot of roles. I'm going to touch on some of them, but you just came over to AWS from the physical retail side. Talk to me about that. >> Yup, so I've been to Amazon for 19 1/2 years. Done pricing, supply chain. I was Jeff Bezos technical advisor for a couple years. >> Casual name drop. >> Casual name drop. >> Savannah: But a couple people here for that name before. >> Humble brag, hashtag. And then I, for the last several years, I was leading our physical retail initiatives. We just walk out Amazon One, bringing convenience to physical spaces. And then in August, with like as those things were getting a lot of traction and we were selling to third parties, we felt that it would be better suited in AWS. And, but along with that, there was also another trend that's been brewing, which is, you know, companies have loved building on AWS. They love the infrastructure services, but increasingly, they're also asking us to build applications that are higher up in the stack. Solving key, turnkey business problems. Just walk out Amazon One or examples of that, Amazon Connect. We just recently announced supply chain, so now there's a bevy interesting services all coming together, higher up in the stack for customers. So it's an exciting time. >> It was interesting that you're able to, you know, transfer from that retail. I mean, normally, in historically, if you're within an industry, retail, manufacturing, automotive whatever. You were kind as locked in a little bit. >> Dilip: Siloed a little bit. Yeah, yeah, yeah. >> Because they had their own, your own value chain. And I guess, data has changed that maybe, that you can traverse now. >> Yeah, if you think about the things that we did, even when we were in retail, the tenants was less about the industries and more about how can we bring convenience to physical spaces? The fact that you don't like to wait in line is no more like likely, you know, five years from now than it is today. So, it's a very durable tenant, but it's equally applicable whether you're in a grocery store, a convenience store, a stadium, an airport. So it actually transcends any, and like supply chain, think of supply chain. Supply chain isn't, you know, targeted to any one particular industry. It has broad applicability. So these things are very, you know, horizontally applicable. >> Anything that makes my life easier, I'm down. >> Savannah: We're all here for the easy button. We've been talking about it a bit this week. I'm in. And the retail store, I mean, I'm in San Francisco. I've had the experience of going through. Very interesting and seamless journey, honestly. It's very exciting. So tell us a little bit more about the applications group at AWS. >> Yup. So as I said, you know, we are, the applications group is a combination of several services. You know, we have communication developer services, which is the ability to add simple email service or video and embed video, voice chat using a chime SDK. In a higher up in the stack, we are taking care of things that IT administrators have to deal with where you can provision an entire desktop with the workspaces or provide a femoral access to it. And then as you go up even higher up in the stack, you have productivity applications like AWS Wicker, which we just did GA, you know, last week in AWS Clean Rooms which we announced as a service in preview. And then you have, you know, Connect, which is our cloud contact center, AWS supply chain. Just walk out Amazon One, it just feels like we're getting started. >> Just a couple things going on. >> So, clean rooms. Part of the governance play, part of data sharing. Can you explain, you know, we were talking offline, but I remember back in the disk drive days. We were in a clean room, they'd show you the clean room, you couldn't go near it unless you had a hazmat suit on. So now you're applying that to data. Explain that concept. >> Yeah, so the companies across, you know, financial services or healthcare, advertising, they all want to be able to combine and pull together data`sets with their partners in order to get these collaborative insights. The problem is either the data's fragmented, it's siloed or you have, you know, data governance issues that's preventing them from sharing. And the key requirement is that they want to be able to share this data without exposing any of the underlying data. Clean rooms are always emerged as a solution to that, but the problem with that is that they're hard to maintain. They're expensive. You have to write complex privacy queries. And if you make a mistake, you risk exposing the same data that you've been, you know, studiously trying to protect. >> Trying to protect. >> You know, take advertising as an industry, as an example. You know, advertisers care about, is my ad effective? But it turns out that if you're an advertiser and let's say you're a Nike or some other advertiser and your pop, you know, you place an ad on the website. Well, you want to stop showing the ad to people who have already purchased the product. However, people who purchased the product,- >> Savannah: It happens all the time. >> that purchasing data is not accessible to them easily. But if you could combine those insights, you know, the publishers benefit, advertisers benefits. So AWS Clean Rooms is that service that allows you very easily to be able to collaborate with a group of folks and then be able to gain these collaborative insights. >> And the consumers benefit. I mean, how many times you bought, you search it. >> It happens all the time. >> They know. And like, I just bought that guys, you know? >> Yeah, no, exactly. >> Four weeks. >> And I'm like, you don't need to serve me that, you know? And we understand the marketing backend. And it's just a waste of money and energy and resources. I mean, we're talking about sustainability as well. I don't think supply chain has ever had a hotter moment than it's had the last two and a half years. Tell me more about the announcement. >> Yup, so super excited about this. As you know, as you said, supply chains have always been very critical and very core for companies. The pandemic exacerbated it. So, ours way of sort of thinking about supply chains is to say that, you know, companies have taken, over the years many, like dozens, like millions and millions of dollars of investment in building their own supply chains. But the problem with supply chains is that the reason that they're not as functional as they could be is because of the lack of visibility. Because they're strung together very many disparate systems, that lack of visibility affects agility. And so, our approach in it was to say that, well, if we could have folks use their existing supply chain what can we do to improve the investment on the ROI of what they're getting? By creating a layer on top of it, that provides them that insights, connects all of these disparate data and then provides them insights to say, well, you know, here's where you overstock, here's where you under stock. You know, this is the, you know, the carbon emission impact of being able to transfer something. So like rather without requiring people to re-platform, what's the way that we can add value in it? And then also build upon Amazon's, you know, years of supply chain experience, to be able to build these predictive analytics for customers. >> So, that's a good, I like that you started with the why. >> Yes. >> Right now, what is it? It's an abstraction layer and then you're connecting into different data points. >> Yes, that's correct. >> Injecting ML. >> Feel like you can pick in, like if you think about supply chain, you can have warehouse management systems, order management systems. It could be in disparate things. We use ML to be able to bring all of this disparate data in and create our unified data lake. Once you have that unified data lake, you can then run an insights layer on top of it to be able to say, so that as the data changes, supply chain is not a static thing. Data's constantly changing. As the data's changing, the data lake now reflects the most up-to-date information. You can have alerts and insights set up on it to say that, what are the kinds of things that you're interested in? And then more importantly, supply chain and agility is about communication. In order to be able to make certain things happen, you need to be able to communicate, you need to make sure that everyone's on the same page. And we allow for a lot of the communication and collaboration tools to be built within this platform so that you're not necessarily leaving to go and toggle from one place to the other to solve your problems. >> And in the pie chart of how people spend their time, they're spending a lot less time communicating and being proactive. >> That's correct. >> And getting ahead of the curve. They're spending more time trying to figure out actually what's going on. >> Yes. >> And that's the problem that you're going to solve. >> Well, and it ensures that the customer at the other end of that supply chain experience is going to have their expectations managed in terms of when their good might get there or whatever's going to happen. >> Exactly. >> I feel like that expectation management has been such a big part of it. Okay, I just have to ask because I'm very curious. What was it like advising Jeff? >> Quite possibly the best job that I've ever had. You know, he's a fascinating individual. >> Did he pay you to say that? >> Nope. But I would've, like, I would've done it for like, it's remarkable seeing how he thinks and his approach to problem solving. It is, you know, you could be really tactical and go very deep. You could be extremely strategic. And to be able to sort of move effortlessly between those two is a unique skill. I learned a lot. >> Yeah, absolutely. So what made you want to evolve your career at Amazon after that? 'Cause I see on your LinkedIn, you say, it was the best job you ever had. With curiosity? >> Yeah, so one of the things, so the role is designed for you to be able to transition to something new. >> Savannah: Oh, cool. >> So after I finished that role, we were just getting into our foray with physical stores. And the idea between physical stores is that, you and I as consumers, we all have a lot of choices for physical stores. You know, there's a lot of options, there's a lot of formats. And so the last thing we wanted to do is come up with another me too offering. So, our approach was that what can we do to improve convenience in physical stores? That's what resulted in just walk out to Amazon Go. That's what resulted in Amazon One, which is another in a fast, convenient, contactless way to pay using the power of your palm. And now, what started in Amazon retail is now expanded to several third parties in, you know, stadiums, convention centers, airports. >> Airport, I just had, was in the Houston airport and got to do a humanless checkout. >> Dilip: Exactly. >> And actually in Honolulu a couple weeks ago as well too. Yeah, so we're going to see more and more of this. >> Yes. >> So what Amazon, I think has over a million employees. A lot of those are warehouse employees. But what advice would you give to somebody who's somewhere inside of Amazon, maybe they're on AWS, maybe they're Amazon. What advice would you give somebody inside that's maybe, you know, hey, I've been at this job for five, six years, three, four years, whatever it is. I want to do something else. And there's so much opportunity inside Amazon, right? What would you advise them? >> My single advice, which is actually transferable and I use it for myself is choose something that makes you a little uncomfortable. >> Dave: Get out of your comfort zone. >> It's like, you got to do that. It's like, it's not the easiest thing to hear, but it's also the most satisfying. Because almost every single time that I've done it for myself, it's resulted in like, you don't really know what the answer is. You don't really know exactly where you're going to end up, but the process and the journey through it, if you experience a little bit of discomfort constantly, it makes you non complacent. It makes you sort of not take the job, sort of in a stride. You have to be on it to do it. So that's the advice that I would give anyone. >> Yeah, that's good. So something that's maybe adjacent and maybe not completely foreign to you, but also something that, you know, you got to go dig a little bit and learn. >> You're planning a career change over here, Dave? >> No, I know a lot of people in Amazon are like, hey, I'm trying to figure out what I want to do next. I mean, I love it here. I live by the LPS, you know, but, and there's so much to choose from. >> It is, you know, when I joined in 2003, there were so many things that we were sort of doing today. None of those existed. It's a fascinating company. And the evolution, you could be in 20 different places and the breadth of the kinds of things that, you know, the Amazon experience provides is timeless. It's fascinating. >> And, you know, you look at a company like Amazon, and, you know, it's so amazing. You look at this ecosystem. I've been around- >> Even a show floor. >> I've been around a lot of time. And the show floor says it all. But I've seen a lot of, you know, waves. And each subsequent wave, you know, we always talk about how many companies were in the Fortune 1000 and aren't anymore. And, but the leaders, you know, survive and they thrive. And I think it's fascinating to try to better understand the culture that enables that. You know, you look at a company like Microsoft that was irrelevant and then came back. You know, even IBM was on death store for a while and they come back and so they. And so, but Amazon just feels, you know, at the moment you feel like, "Oh wow, nothing can stop this machine." 'Cause everybody's trying to disrupt Amazon and then, you know, only the paranoid survive, all that stuff. But it's not like, past is not prologue, all right? So that's why I asked these questions. And you just said that a lot of the services today that although the ideas didn't even exist, I mean, walkout. I mean, that's just amazing. >> I think one of the things that Amazon does really well culturally is that they create the single threaded leadership. They give people focus. If you have to get something done, you have to give people focus. You can't distract them with like seven different things and then say that, oh, by the way, your eighth job is to innovate. It just doesn't work that way. It's like it's hard. Like it can be- >> And where were the energy come from that? >> Exactly. And so giving people that single threaded focus is super important. >> Frank Slootman, the CEO of Snowflake, has a great quote. He wrote on his book. He said, "If you got 14 priorities, you got none." And he asks,- >> Well said. >> he challenges people. If you had to give up everything and do only one thing for the next 365 days, what would that be? It's a really hard question to answer. >> I feel like as we're around New Year's resolution times. I mean when we thinking about that, maybe we can all share our one thing. So, Dilip, you've been with the the applications team for five months. What's coming up next? >> Well, as I said, you know, it feels like it's still day one for applications. If you think about the things, the news that we introduced and the several services that we introduced, it has applicability across a variety of horizontal industries. But then we're also feeling that there's considerable vertical applications that can be built for specific things. Like, it could be in advertising, it could be in financial services, it could be in manufacturing. The opportunities are endless. I think the notion of people wanting applications higher up in the stack and a little more turnkey solutions is also, it's not new for us, but it's also new and creative too. You know, AWS has traditionally been doing. >> So again, this relates to what we were sort of talking about before. And maybe, this came from Jazzy or maybe it came from Bezos. But you hear a lot, it's okay to be misunderstood or if we were misunderstood for a long time. So when people hear up the stack, they think, when you think about apps, you know, in the last 10 years it was taking on-prem and bringing it into the cloud. Okay, you saw that with CREM, email, CRM, service management, you know, data warehouses, et cetera. Amazon is thinking about this in a different way. It's like you're looking at the world saying, okay, how can we improve whatever? Workflows, people's lives, doing something that's not been done before? And that seems to be the kind of applications that you guys are thinking about building. >> Yeah. >> And that's unique. It's not just, okay, we're going to take something on-prem put it in the cloud. Been there, done that. That S-curve is sort of flattening now. But there's a new S-curve which is completely new workflows and innovations and processes that we really haven't thought about yet. Or you're thinking about, I presume. >> Yeah. Having said that, I'd also like to sort of remind folks that when you consider the, you know, the entire spend, the portion of workloads that are running in the cloud is a teeny tiny fraction. It's like less than 5%, like 4% or something like that. So it's a very, there's still plenty of things that can sort of move to the cloud. But you're right that there is another trend of where in the stack and the types of applications that you can provide as well. >> Yeah, new innovation that haven't well thought of yet. >> So, Dilip, we have a new tradition here on theCUBE at re:Invent. Where we're looking for your 30 minute Instagram reel, your hot take, biggest key theme, either for you, your team, or just general vibe from the show. >> General vibe from the show. Well, 19 1/2 years at Amazon, this is actually my first re:Invent, believe it or not. This is my, as a AWS employee now, as re:Invent with like launching services. So that's the first. I've been to re:Invent before, but as an attendee rather than as a person who's, you know, a contributing number of the workforce. >> Working actually? >> If you will. >> Actually doing your job. >> And so I'm just amazed at the energy and the breadth. And the, you know, from the partners to the customers to the diversity of people who are coming here from everywhere. I had meetings from people in New Zealand. Like, you know, the UK, like customers are coming at us from like very many different places. And it's fascinating for me to see. It's new for me as well given, you know, some of my past experience. But this is a, it's been a blast. >> People are pumped. >> People are pumped. >> They can't believe the booth traffic. Not only that quality. >> Right. All of our guests have talked about that. >> Like, yeah, you know, we're going to throw half of these leads away, but they're saying no, I'm having like really substantive conversations with business people. This is, I think, my 10th re:Invent. And the first one was mostly developers. And I'm like, what are you talking about? And, you know, so. Now it's a lot more business people, a lot of developers too. >> Yeah. >> It's just. >> The community really makes it. Dilip, thank you so much for joining us today on theCube. >> Thank you for having me. >> You're fantastic. I could ask you a million questions. Be sure and tell Jeff that we said hi. >> Will do. >> Savannah: Next time you guys are hanging out. And thank all of you. >> You want to go into space? >> Yeah. Yes, yes, absolutely. I'm perhaps the most space obsessed on the show. And with that, we will continue our out of this world coverage shortly from fabulous Las Vegas where we are at AWS re:Invent. It is day four with Dave Vellante. I'm Savannah Peterson and you're watching theCUBE, the leader in high tech coverage. (lively music)

(upbeat music) >> Good morning and welcome back to fabulous Las Vegas, Nevada. We're here at AWS re:Invent with wall-to-wall coverage all day long on theCUBE. My name is Savannah Peterson and I am joined this morning by the beautiful Lisa Martin. Lisa, good morning. >> Good morning. Good. >> How you feeling day three? >> Day three is we are going to be shot out of a cannon today. The amount of content coming at you from theCUBE today- >> Get ready, you all. >> Us two gals, is a lot. We're going to have some great conversations. >> And we're starting with a really great one with a Cube Alumni to the max. You've been on the show multiple times. >> John: Yeah. >> Very excited to welcome John, the CMO of Couchbase. Welcome. How you doing this morning? >> Thanks. I'm doing great. Great to be here with you. >> How do you feel about the show so far? What's your pulse? >> The show has been great. I say the energy is great. The traffic at our booth, the conversations that we're having, both with prospective customers and even just partners, right? They're all here. The ecosystem is here >> And everyone's finally back in person and it feels so good. >> John: It does. >> So, we're going to dig in a little bit but just in case the audience isn't familiar, tell us about Couchbase. >> Sure. Couchbase is a publicly traded database company. We have a cloud database platform called Capella which is hosted on AWS and GCP. It is used for building mission-critical applications. So, we have great customers, we're building apps that really matter and are using to drive their business. So, we're very excited about that. 30% of the Fortune 100 are Couchbase customers. >> Nice. Talk a little bit about the AWS relationship. >> Mm-hm. Yeah, so we have a great AWS relationship. In fact, yesterday we announced a deepening of that relationship, a strategic collaboration agreement. We're very excited. It's a multi-year agreement. It's focused on go-to market, from a sales and marketing standpoint. We're going to target, you know, various verticals and, you know, really generate joint business between the two of us. So, it's a deepening of a already strong relationship and we're really excited about that. >> Savannah: Yeah. Go ahead. >> What are some of the industry verticals that you're going to be tackling together? >> Well, gaming for one, right? Manufacturing, the workloads that Couchbase is good for are these mission-critical workloads are ones that are really suited for us to be used with AWS. So, we've done some work with them already in those areas and I'm sure we'll be digging in even deeper. >> That's exciting. Speaking of digging in deeper, tell us a little bit more about Capella. >> Capella. It's a cloud databases services I mentioned. We launched it last October and we are super excited by the uptake, the interest that we're seeing. We have a free 30 day trial, so, you know, people can come and try it and get their hands dirty just getting experience with the product and then, you know, become a customer after that. And we're seeing very strong interest from our existing customer base as well. So, we're really excited about how things are going. >> Talk about Capella and the latest release and how it's really enabling Couchbase to invest deeper into the developer experience. >> Yeah, so, at the end of October, we announced a revamp of our user interface, our user experience for Capella really focused on developers. And what we've done is make it so that it's familiar to developers, right? It's a GitHub-like experience. So, developer comes in, they're very familiar, of course, with GitHub, they are familiar with how the Couchbase Capella interface will work. And so that's something that, you know, we've really invested, in fact, we've invested in developers quite a bit. We announced a Couchbase community hub and a Couchbase ambassadors program, both focused on developers and getting out there and building our community. >> A community is a big topic that we've been talking about at all the conferences this year. We're all back in person, in community. How often are you communicating with your community to get feedback on what that experience should be like? >> Yeah, I mean, we actually have a Discord server, so we're in constant communication. (Savannah laughing) >> Savannah: Yes. (John laughing) 24/7. (laughing) >> Basically, you know, we have staff who's dedicated to making sure that the users on there are getting their answers and giving us feedback on the experience. The ambassadors are somebody who have a really strong relationship, who get early insight and give us feedback before we even release a product. So, it gives us a chance to really test-drive it with core developers and get the insight we need before we get it in the market. >> Yeah. It matters so much. You can build it, but they won't come if it's not fantastic. >> John: Exactly. >> Lisa: Right. >> Let's shift a little bit and talk about customers. How, and price, how do you guys compare? >> Customers and? >> And price, your price performance? >> Price, oh. So, customers, we also announced this week a joint customer Arthrex with AWS. Arthrex is a orthopedics medical devices company and they use our Edge capabilities along with running Couchbase on AWS. So, you think of the kinds of surgeries that orthopedic surgeons do, it's scopes and they are often inside. So, what it does is it collects the data, the video data and all of that on a medical devices and then brings it back to a centralized app for the doctors to use sort of in post when they're actually doing further medical recommendations. >> Savannah: It's so cool. >> So, it's cool, the thing about it is it can work whether it's online or offline, it's one of the reasons that Arthrex selected us because the fact that it can, you know, often sometimes there's not connectivity in the operating room, I'd say deep inside of a hospital. So, these devices work regardless and then when they get connectivity, it sinks back to that centralized service. So, it's one of the main reasons that they selected us. >> That's outstanding. You know, one of the things that John Furrier, you know, John, well, you guys go way back. >> John: Way back. >> He had a sit down with Adam Selensky, oh, about 10 days or so ago. He gets an exclusive with the CEO of AWS every pre re:Invent. And one of the things that Adam said is that the role or the title, data analyst, is going to go away, in that every role will have responsibilities of analyzing data. And I always think of that in terms of operations, marketing, finance, sales, but you just brought up physicians as data analysts in their jobs, right? Probably not, we're thinking about it in that way. >> Yeah. >> But it's so interesting how data is really being democratized. >> John: Yeah. >> And how Couchbase is an enabler of that in an operating room. >> John: Yeah, yeah, yeah. >> That's amazing. >> It's a great story. There's many others and I think, you know, we have embedded operational analytics in Couchbase Capella, and, you know, in our offerings in general. So, what that does is allows us to do real-time, highly personalized applications based on that analytics that are coming in real-time from the data from the applications. And so that's something that's actually driving a highly interactive user experience, one that's very personalized and customized. And that's one of the things that our customers really like about what we do. >> It's fascinating. I never thought about it from a medical device perspective. >> Lisa: No, no. >> John: No. >> My gosh is if doctors don't have enough cognitive burden load. >> John: I know. >> You know, right? Like, they don't need to be a data analyst. I would much rather they were just good at the surgery part. That's a piece of the puzzle I need them to do. Yeah, for sure. That's a fascinating customer example. Can you share any other joint AWS examples with us? >> Joint AW- I mean, there's many in the gaming area where, because Couchbase is memory-first architecture, we deliver very, very interactive user experiences and we're used a lot for session management, user ID management in the gaming space, specifically with AWS. It's an area we've done some joint work already and had a lot of success, you know, with small and large gaming companies. >> Yeah. It looks like you also, according to my notes here, we've got things in travel and hospitality as well. >> Yes. Also Carnival Cruises is a great example. We enable their on-ship, on-board experience, highly customized, everybody wears a device called a medallion, and as they move around the ship, it knows where they are and it's able to provide customized services. You walk up to a bar, you have your favorite drink, it can be hit the bar when you land there. >> I'll take that. >> How about that? (laugh) >> That's outstanding. >> Isn't that great? >> Can we carry that onto the AWS show floor? >> Exactly. >> Or Starbucks order? >> Yeah, yeah. Yes, please. Yes, please. Well, another thing that's so interesting these days, is that every company has to be a data company. Say they have to be a software company. They have to be a data company. You just gave some great examples. Hospitality, gaming, healthcare, where that data democratization has to happen. >> John: Yeah. >> Businesses has to transform. But one of the things that Adam also told John is that CIOs, CEOs are coming to him not wanting to talk about technology but about transformation. >> Yeah. >> Huge topic. >> And that's a journey where every customer is at different levels. >> Yeah. >> How is Couchbase helping businesses transform and where are your customer conversations these days? >> Yeah, yeah, yeah. So, I mean, the transformation of the business is a major topic of conversation. So, we completely agree with that. How Couchbase helps is, you know, in our database, one of the things we have is the SQL engine. And so as people are looking to move and modernize their infrastructure, if they're moving off of, or from like a technology that's principally based on SQL but doesn't give all the flexibility of a JSON database or document database like we do, we actually enable them to get more easily onto our platform so that they can start that transformation. And then it's a, you know, it's a journey of how they want to transform their business and it's really focused on how do they better serve their customers and clients, whether it's internal or external? >> It really matters. I mean, and that ease of use as well as the transformation journey. It takes a long time for people to adapt. So, every piece of that puzzle, every Lego being quicker or easier, more intuitive, like you said, with the user experience, we can tell you're very thoughtful. How does this improve the total cost of ownership for your customers? >> That's one of the things that we announced along with that developer changes, was a new storage engine underneath Couchbase Capella. And it's 10 X more dense storage. And what that means is fewer servers. So, fewer servers is a much better cost of ownership story. That plus just the performance of the platform itself, we find, you know, against competition, we can do things on say six nodes that take 18 nodes for others. >> Lisa: Oh wow. >> And we have a great consolidation story as well because we have, it's a multi-modal database, meaning that it has SQL engine, document database, full tech search, eventing and analytics, all these pieces on one common data layer. So, you can actually consolidate off of other technologies onto one, onto Couchbase, and that actually saves you money. So, that's a great story for us. >> There's got to be a sustainability element to that as well? >> Yeah, I mean it's, obviously, if you're using less, using fewer servers, there's a kind of power consumption aspect of it as well. Absolutely. >> Are you finding that a lot of customers and companies we talk to these days have in their RFPs, they must only work with vendors who have an actual ESG program? Are you finding more customers coming to you saying, how can you help us dial down our carbon emissions? >> John: Yeah. >> Savannah: Great question. >> We've got a sustainability program that we've got to meet, we've got commitments to our customers. >> John: Yeah. >> Is that something that's really now kind of a hard and fast requirement? >> We're hearing it, we're definitely hearing it. I wouldn't say it's, you know, massively pervasive but I would say it's a growing component of, as you said, RFPs. And it's something that we feel like we have a great story for. And so, you know, it's something that helps when we get into those conversations, we can clearly articulate how we can provide that value and how we meet some of those needs that they have. >> Yeah, that's awesome. So, we have a bit of a challenge, new to the show at re:Invent. >> John: Mm-hm. >> Where we are prompting you to give us your 30 second Instagram Reel sizzle highlight. Don't worry, I'm not actually timing you, but your thought leadership hot-take on the most important theme or takeaway from this year's show. >> From the conference here. I would say that, and I think this was talked about a little bit by AWS as well, but the convergence of analytics and operational data, you know, through the applications is one that we're certainly seeing as well. It's the reason we have analytics in our database. But as I walk around and look at it, I see that very much as a common theme as well, in terms of what other vendors are saying and just the conversations we're having. So for me, that's one of the things I think would be a takeaway from this show. >> Yeah. Embedded analytics, real-time, everybody wants to know what's going on, in context. >> Yeah. That's right. >> Right now, not last week, not what we're processing from last month. >> Exactly. >> I mean, right? (cross-talking) >> So, I can react and take advantage or take an action if I have to. >> Exactly. And then deliver that personalized experience that we all expect these days. >> Oh, yes. >> I'll take that medallion- >> It's about the medallion. I was like, okay. >> You up with that, John? >> We'll get right on it. >> Lisa: All right. (laughs) >> About this. So, what's next for Couchbase? >> John: Well- >> I know you got the partnership, you've got all this exciting momentum. >> So, we're excited heading into next year. We're going to continue to innovate on Capella, right? Continue to deliver more value, lean into our developer community that we have. We're investing heavily, not just from a product standpoint but from a company standpoint in terms of, you know, our community meetups and some of those things. We have a big community-focused event coming up in March called Connect, Couchbase Connect. So, that's something that we'll, you know, continue to drive. That'll be a major theme for us next year. Cloud and developers and, you know, continuing to enable that ecosystem. >> Lisa: Excellent. >> I just had a Microsoft moment where I saw you saying, "Cloud developers," on stage. (Lisa and Savannah laughing) >> I'm not going Steve Ballmer on you. (all laughing) >> Pardon. I was trying to get someone to sing yesterday. I was hoping you were my Ballmer dance. Oh, man. Well, this has been a really great way to start the day. John, thank you so much for being on the show with us, seriously. And it's great that you keep coming back. I'm glad we haven't scared you off. (John laughing) >> Never. >> Savannah: We will have you anytime. >> Thank you. >> And thank you all for tuning in for yet another fantastic day of all day live coverage here from AWS re:Invent. We are in Sin City, having a fabulous time with Lisa Martin. I'm Savannah Peterson. This is theCUBE and we are the leader in high-tech technology coverage. (upbeat music) (upbeat music fades)

(upbeat music) (logo shimmers) >> Good afternoon everyone, and welcome back to AWS re Invent 2022. We are live here from the show floor in Las Vegas, Nevada, we're theCUBE, my name is Savannah Peterson, joined by John Furrier, John, are you excited for the next segment? >> I love the innovation story, this next segment's going to be really interesting, an example of ecosystem innovation in action, it'll be great. >> Yeah, our next guests are actually award-winning, I am very excited about that, please welcome Alan and Becky from IBM. Thank you both so much for being here, how's the show going for ya? Becky you got a, just a platinum smile, I'm going to go to you first, how's the show so far? >> No, it's going great. There's lots of buzz, lots of excitement this year, of course, three times the number of people, but it's fantastic. >> Three times the number of people- >> (indistinct) for last year. >> That is so exciting, so what is that... Do you know what the total is then? >> I think it's over 55,000. >> Ooh, loving that. >> John: A lot. >> It's a lot, you can tell by the hallways- >> Becky: It's a lot. >> John: It's crowded, right. >> Yeah, you can tell by just the energy and the, honestly the heat in here right now is pretty good. Alan, how are you feeling on the show floor this year? >> Awesome, awesome, we're meeting a lot of partners, talking to a lot of clients. We're really kind of showing them what the new IBM, AWS relationship is all about, so, beautiful time to be here. >> Well Alan, why don't you tell us what that partnership is about, to start us off? >> Sure, sure. So the partnership started with the relationship in our consulting services, and Becky's going to talk more about that, right? And it grew, this year it grew into the IBM software realm where we signed an agreement with AWS around May timeframe this year. >> I love it, so, like you said, you're just getting started- >> Just getting started. >> This is the beginning of something magic. >> We're just scratching the surface with this right? >> Savannah: Yeah. >> But it represents a huge move for IBM to meet our clients where they are, right? Meet 'em where they are with IBM technology, enterprise technology they're used to, but with the look and feel and usage model that they're used to with AWS. >> Absolutely and so to build on that, you know, we're really excited to be an AWS Premier Consulting Partner. We've had this relationship for a little over five years with AWS, I'd say it's really gone up a notch over the last year or two as we've been working more and more closely, doubling down on our investments, doubling down on our certifications, we've got over 15,000 people certified now, almost 16,000 actually- >> Savannah: Wow. >> 14 competencies, 16 service deliveries and counting. We cover a mass of information and services from Data Analytics, IoT, AI, all the way to Modernization, SAP, Security Services, right. So it's pretty comprehensive relationship, but in addition to the fantastic clients that we both share, we're doing some really great things around joint industry solutions, which I'll talk about in a few minutes and some of those are being launched at the conference this year, so that's even better. But the most exciting thing to me right now is that we just found out that we won the Global Innovator Partner of the Year award, and a LATAM Partner of the Year award. >> Savannah: Wow. >> John: That's (indistinct) >> So, super excited for IBM Consulting to win this, we're honored and it's just a great, exciting part to the conference. >> The news coming out of this event, we know tomorrow's going to be the big keynote for the new Head of the ecosystem, Ruba. We're hearing that it's going to be all about the ecosystem, enabling value creation, enabling new kinds of solutions. We heard from the CEO of AWS, this nextGen environment's upon us, it's very solution-oriented- >> Becky: Absolutely. >> A lot of technology, it's not an either or, it's an and equation, this is a huge new shift, I won't say shift, a continuation for AWS, and you guys, we've been covering, so you got the and situation going on... Innovation solutions and innovation technology and customers can choose, build a foundation or have it out of the box. What's your reaction to that? Do you think it's going to go well for AWS and IBM? >> I think it fits well into our partnership, right? The the thing you mentioned that I gravitate to the most is the customer gets to choose and the thing that's been most amazing about the partnership, both of these companies are maniacally focused on the customer, right? And so we've seen that come about as we work on ways the customer to access our technology, consume the technology, right? We've sold software on-prem to customers before, right, now we're going to be selling SaaS on AWS because we had customers that were on AWS, we're making it so that they can more easily purchase it by being in the marketplace, making it so they can draw down their committed spin with AWS, their customers like that a lot- [John] Yeah. >> Right. We've even gone further to enable our distributor network and our resellers, 'cause a lot of our customers have those relationships, so they can buy through them. And recently we've enabled the customer to leverage their EDP, their committed spend with AWS against IBM's ELA and structure, right, so you kind of get a double commit value from a customer point of view, so the amazing part is just been all about the customers. >> Well, that's interesting, you got the technology relationship with AWS, you mentioned how they're engaging with the software consumption in marketplace, licensed deals, there's all kinds of new business model innovations on top of the consumption and building. Then you got the consulting piece, which is again, a big part of, Adam calls it "Business transformation," which is the result of digital transformation. So digital transformation is the process, the outcome is the business transformation, that's kind of where it all kind of connects. Becky, what's your thoughts on the Amazon consulting relationships? Obviously the awards are great but- >> They are, no- >> What's the next step? Where does it go from here? >> I think the best way for me to describe it is to give you some rapid flyer client examples, you know, real customer stories and I think that's where it really, rubber meets the road, right? So one of the most recent examples are IBM CEO Arvind Krishna, in his three key results actually mentioned one of our big clients with AWS which is the Department of Veterans Affairs in the US and is an AI solution that's helped automate claims processing. So the veterans are trying to get their benefits, they submit the claims, snail mail, phone calls, you know, some in person, some over email- >> Savannah: Oh, it gives me all the feels hearing you talk about this- >> It's a process that used to take 25 to 30 days depending on the complexity of the claims, we've gotten it down with AWS down to within 24 hours we can get the veterans what they need really quickly so, I mean, that's just huge. And it's an exciting story that includes data analytics, AI and automation, so that's just one example. You know, we've got examples around SAP where we've developed a next generation SAP for HANA Platform for Phillips Carbon Black hosted on AWS, right? For them, it created an integrated, scalable, digital business, that cut out a hundred percent the capital cost from on-prem solutions. We've got security solutions around architectures for telecommunications advisors and of course we have lots of examples of migration and modernization and moving workloads using Red Hat to do that. So there's a lot of great client examples, so to me, this is the heart of what we do, like you said, both companies are really focused on clients, Amazon's customer-obsessed, and doing what we can for our clients together is where we get the impact. >> Yeah, that's one of the things that, it sounds kind of cliche, "Oh we're going to work backwards from the customer," I know Amazon says that, they do, you guys are also very customer-focused but the customers are changing. So I'd love to get your reaction because we're now in that cloud 2.0, I call that 2.0 or you got the Amazon Classic, my word, and then Next Gen Cloud coming, the customers are different, they're transforming because IT's not a department anymore, it's in the DevOps pipeline. The developers are driving a lot of IT but security and on DataOps, it's the structural change happening at the customer, how do you guys see that at IBM? I know we cover a lot of Red Hat and Arvind talks to us all the time, meeting the customer where they are, where are they? Where are the customers? Can you share your perspective on where they are? >> It's an astute observation, right, the customer is changing. We have both of those sets of customers, right, we still have the traditional customer, our relationship with Central IT, right, and driving governance and all of those things. But the folks that are innovating many times they're in the line of business, they're discovering solutions, they're building new things. And so we need our offerings to be available to them. We need them to understand how to use them and be convenient for these guys and take them through that process. So that change in the customer is one that we are embracing by making our offerings easy to consume, easy to use, and easy to build into solutions and then easy to parlay into what central IT needs to do for governance, compliance, and these types of things, it's becoming our new bread and butter. >> And what's really cool is- >> Is that easy button- >> We've been talking about- >> It's the easy button. >> The easy button a lot on the show this week and if you just, you just described it it's exactly what people want, go on Becky. >> Sorry about that, I was going to say, the cool part is that we're co-creating these things with our clients. So we're using things like the Amazon Working Backward that you just mentioned.` We're using the IBM garage methodology to get innovative to do design working, design thinking workshops, and think about where is that end user?, Where is that stakeholder? Where are they, they thinking, feeling, doing, saying how do we make the easier? How do we get the easy button for them so that they can have the right solutions for their businesses. We work mostly with lines of business in my part of the organization, and they're hungry for that. >> You know, we had a quote on theCUBE yesterday, Savannah remember one of our guests said, you know, back in the, you know, 1990s or two 2000s, if you had four production apps, it was considered complex >> Savannah: Yeah. >> You know, now you got hundreds of workloads, thousands of workloads, so, you know, this end-to-end vision that we heard that's playing out is getting more complex, but the easy button is where these abstraction layers and technology could come in. So it's getting more complex because there's more stuff but it's getting easier because- >> Savannah: What is the magnitude? >> You can make it easier. This is a dynamic, share your thoughts on that. >> It's getting more complex because our clients need to move faster, right, they need to be more agile, right, so not only are there thousands of applications there are hundreds of thousands microservices that are composing those applications. So they need capabilities that help them not just build but govern that structure and put the right compliance over that structure. So this relationship- >> Savannah: Lines of governance, yeah- >> This relationship we built with AWS is in our key areas, it's a strategic move, not a small thing for us, it covers things like automation and integration where you need to build that way. It covers things like data and AI where you need to do the analytics, even things like sustainability where we're totally aligned with what AWS is talking about and trying to do, right, so it's really a good match made there. >> John: It really sounds awesome. >> Yeah, it's clear. I want to dig in a little bit, I love the term, and I saw it in my, it stuck out to me in the notes right away, getting ready for you all, "maniacal", maniacal about the customer, maniacal about the community, I think that's really clear when we're talking about 24 days to 24 hours, like the veteran example that you gave right there, which I genuinely felt in my heart. These are the types of collaborations that really impact people's lives, tell me about some of the other trends or maybe a couple other examples you might have because I think sometimes when our head's in the clouds, we talk a lot about the tech and the functionality, we forget it's touching every single person walking around us, probably in a different way right now than we may even be aware- >> I think one of the things that's been, and our clients have been asking us for, is to help coming into this new era, right, so we've come out of a pandemic where a lot of them had to do some really, really basic quick decisions. Okay, "Contact Center, everyone work from home now." Okay, how do we do that? Okay, so we cobbled something together, now we're back, so what do we do? How do we create digital transformation around that so that we are going forward in a really positive way that works for our clients or for our contact center reps who are maybe used to working from home now versus what our clients need, the response times they need, and AWS has all the technology that we're working with like Amazon Connect to be able to pull those things together with some of our software like Watson Assistant. So those types of solutions are coming together out of that need and now we're moving into the trend where economy's getting tougher, right? More cost cutting potentially is coming, right, better efficiencies, how do we leverage our solutions and help our clients and customers do that? So I think that's what the customer obsession's about, is making sure we really understand where their pain points are, and not just solve them but maybe get rid of 'em. >> John: Yeah, great one. >> Yeah. And not developing in a silo, I mean, it's a classic subway problem, you got to be communicating with your community if you want to continue to serve them. And IBM's been serving their community for a very long time, which is super impressive, do you think they're ready for the challenge? >> Let's do it. >> So we have a new thing on theCUBE. >> Becky: Oh boy. >> We didn't warn you about this, but here we go. Although you told, Alan, you've mentioned you're feeling very cool with the microphone on, so I feel like, I'm going to put you in the hot seat first on this one. Not that I don't think Becky's going to smash it, but I feel like you're channeling the power of the microphone. New challenges, treat it like a 32nd Instagram reel-style story, a hot take, your thought leadership, money clip, you know, this is your moment. What is the biggest takeaway, most important thing happening at the show this year? >> Most important thing happening at the show? Well, I'm glad you mentioned it that way, because earlier you said we may have to sing (presenters and guests all laughing) >> So this is much better than- >> That's actually part of the close. >> John: Hey, hey. >> Don't worry, don't worry, I haven't forgotten that, it's your Instagram reel, go. (Savannah laughs) >> Original audio happening here on theCUBE, courtesy of Alan and IBM, I am so here for it. >> So what my takeaway and what I would like for the audience to take away, out of this conversation especially, but even broadly, the IBM AWS relationship is really like a landmark type of relationship, right? It's one of the biggest that we've established on both sides, right- >> Savannah: It seems huge, okay you are too monolith in the world of companies, like, yeah- >> Becky: Totally. >> It's huge. And it represents a strategic change on both sides, right? With that customer- >> Savannah: Fundamentally- >> In the middle right? >> Savannah: Yeah. >> So we're seeing things like, you know, AWS is working with us to make sure we're building products the way that a AWS client likes to consume them, right, so that we have the right integration, so they get that right look and feel, but they still get the enterprise level capabilities they're used to from IBM, right? So the big takeaway I like for people to take, is this is a new IBM, it's a new AWS and IBM relationship, and so expect more of that goodness, more of those new things coming out of it. [John] Excellent, wow. >> That was great, well done, you nailed it. and you're going to finish with some acapella, right? (Alan laughs) >> You got a pitch pipe ready? (everyone laughs) >> All right Becky, what about you? Give us your hot take. >> Well, so for me, the biggest takeaway is just the way this relationship has grown so much, so, like you said, it's the new IBM it's the new AWS, we were here last year, we had some good things, this year we're back at the show with joint solutions, have been jointly funded and co-created by AWS and IBM. This is huge, this is a really big opportunity and a really big deal that these two companies have come together, identified joint customer needs and we're going after 'em together and we're putting 'em in the booth. >> Savannah: So cool. And there's things like smart edge for welding solutions that are out there. >> Savannah: Yes. >> You know, I talked about, and it's, you know you wouldn't think, "Okay, well what's that?" There's a lot to that, a lot of saving when you look at how you do welding and if you apply things like visual AI and auditory AI to make sure a weld is good. I mean, I think these are, these things are cool, I geek out on these things- >> John: Every vertical. >> I'm geeking out with you right now, just geeking- >> Yeah, yeah, yeah, so- >> Every vertical is infected. >> They are and it's so impactful to have AWS just in lockstep with us, doing these solutions, it's so different from, you know, you kind of create something that you think your customers like and then you put it out there. >> Yeah, versus this moment. >> Yeah, they're better together. >> It's strategic partnership- >> It's truly a strategic partnership. and we're really bringing that this year to reinvent and so I'm super excited about that. >> Congratulations. >> Wow, well, congratulations again on your awards, on your new partnership, I can't wait to hear, I mean, we're seven months in, eight months in to this this SaaS side of the partnership, can't wait to see what we're going to be talking about next year when we have you back on theCUBE. >> I know. >> and maybe again in between now and then. Alan, Becky, thank you both so much for being here, this was truly a joy and I'm sure you gave folks a taste of the new IBM, practicing what you preach. >> John: Great momentum. >> And I'm just, I'm so impressed with the two companies collaborating, for those of us OGs in tech, the big companies never collaborated before- >> Yeah. >> John: Yeah. Joint, co-created solutions. >> And you have friction between products and everything else. I mean's it's really, co-collaboration is, it's a big theme for us at all the shows we've been doing this year but it's just nice to see it in practice too, it's an entirely different thing, so well done. >> Well it's what gets me out of the bed in the morning. >> All right, congratulations. >> Very clearly, your energy is contagious and I love it and yeah, this has been great. Thank all of you at home or at work or on the International Space Station or wherever you might be tuning in from today for joining us, here in Las Vegas at AWS re Invent where we are live from the show floor, wall-to-wall coverage for three days with John Furrier. My name is Savannah Peterson, we're theCUBE, the source for high tech coverage. (cheerful upbeat music)

(bright music) >> Hello, everyone. Welcome back to live coverage day two or day one, day two for theCUBE, day one for the event. I'm John Furrier, host of theCUBE. It's the keynote analysis segment. Adam just finished coming off stage. I'm here with Dave Vellante and Zeus Kerravala, with principal analyst at ZK Research, Zeus, it's great to see you. Dave. Guys, the analysis is clear. AWS is going NextGen. You guys had a multi-day analyst sessions in on the pre-briefs. We heard the keynote, it's out there. Adam's getting his sea legs, so to speak, a lot of metaphors around ocean. >> Yeah. >> Space. He's got these thematic exploration as he chunked his keynote out into sections. Zeus, a lot of networking in there in terms of some of the price performance, specialized instances around compute, this end-to-end data services. Dave, you were all over this data aspect going into the keynote and obviously, we had visibility into this business transformation theme. What's your analysis? Zeus, we'll start with you. What's your take on what Amazon web service is doing this year and the keynote? What's your analysis? >> Well, I think, there was a few key themes here. The first one is I do think we're seeing better integration across the AWS portfolio. Historically, AWS makes a lot of stuff and it's not always been easy to use say, Aurora and Redshift together, although most customers buy them together. So, they announce the integration of that. It's a lot tighter now. It's almost like it could be one product, but I know they like to keep the product development separately. Also, I think, we're seeing a real legitimization of AWS in a bunch of areas where people said it wasn't possible before. Last year, Nasdaq said they're running in the cloud. The Options Exchange today announced that they're going to be moving to the cloud. Contact centers running the cloud for a lot of real time voice. And so, things that we looked at before and said those will never move to the cloud have now moved to the cloud. And I think, my third takeaway is just AWS is changing and they're now getting into areas to allow customers to do things they couldn't do before. So, if you look at what they're doing in the area of AI, a lot of their AI and ML services before were prediction. And I'm not saying you need an AI, ML to do prediction, was certainly a lot more accurate, but now they're getting into generative data. So, being able to create data where data didn't exist before and that's a whole new use case for 'em. So, AWS, I think, is actually for all the might and power they've had, it's actually stepping up and becoming a much different company now. >> Yeah, I had wrote that post. I had a one-on-one day, got used of the transcript with Adam Selipsky. He went down that route of hey, we going to change NextGen. Oh, that's my word. AWS Classic my word. The AWS Classic, the old school cloud, which a bunch of Lego blocks, and you got this new NextGen cloud with the ecosystems emerging. So, clearly, it's Amazon shifting. >> Yeah. >> But Dave, your breaking analysis teed out the keynote. You went into the whole cost recovery. We heard Adam talk about macro at the beginning of his keynote. He talked about economic impact, sustainability, big macro issues. >> Yeah. >> And then, he went into data and spent most of the time on the keynote on data. Tools, integration, governance, insights. You're all over that. You had that, almost your breaking analysis almost matched the keynote, >> Yeah. >> thematically, macro, cost savings right-sizing with the cloud. And last night, I was talking to some of the marketplace people, we think that the marketplace might be the center where people start managing their cost better. This could have an impact on the ecosystem if they're not in in the marketplace. So, again, so much is going on. >> What's your analogy? >> Yeah, there's so much to unpack, a couple things. One is we get so much insight from theCUBE community plus your sit down 101 with Adam Selipsky allowed us to gather some nuggets, and really, I think, predict pretty accurately. But the number one question I get, if I could hit the escape key a bit, is what's going to be different in the Adam Selipsky era that was different from the Jassy era. Jassy was all about the primitives. The best cloud. And Selipsky's got to double down on that. So, he's got to keep that going. Plus, he's got to do that end-to-end integration and he's got to do the deeper business integration, up the stack, if you will. And so, when you're thinking about the keynote and the spirit of keynote analysis, we definitely heard, hey, more primitives, more database features, more Graviton, the network stuff, the HPC, Graviton for HPC. So, okay, check on that. We heard some better end-to-end integration between the elimination of ETL between Aurora and Redshift. Zeus and I were sitting next to each other. Okay, it's about time. >> Yeah. >> Okay, finally we got that. So, that's good. Check. And then, they called it this thing, the Amazon data zones, which was basically extending Redshift data sharing within your organization. So, you can now do that. Now, I don't know if it works across regions. >> Well, they mentioned APIs and they have the data zone. >> Yep. And so, I don't know if it works across regions, but the interesting thing there is he specifically mentioned integration with Snowflake and Tableau. And so, that gets me to your point, at the end of the day, in order for Amazon, and this is why they win, to succeed, they've got to have this ecosystem really cranking. And that's something that is just the secret sauce of the business model. >> Yeah. And it's their integration into that ecosystem. I think, it's an interesting trend that I've seen for customers where everybody wanted best of breed, everybody wanted disaggregated, and their customers are having trouble now putting those building blocks together. And then, nobody created more building blocks than AWS. And so, I think, under Adam, what we're seeing is much more concerted effort to make it easier for customers to consume those building blocks in an easy way. And the AWS execs >> Yeah. >> I talked to yesterday all committed to that. It's easy, easy, easy. And I think that's why. (Dave laughing) Yeah, there's no question they've had a lead in cloud for a long time. But if they're going to keep that, that needs to be upfront. >> Well, you're close to this, how easy is it? >> Yeah. >> But we're going to have Adrian Cockcroft (Dave laughing) on at the end of the day today, go into one analysis. Now, that- >> Well, less difficult. >> How's that? (indistinct) (group laughing) >> There you go. >> Adrian retired from Amazon. He's a CUBE analyst retiree, but he had a good point. You can buy the bag of Lego blocks if you want primitives >> Yeah. >> or you can buy the toy that's glued together. And it works, but it breaks. And you can't really manage it, and you buy a new one. So, his metaphor was, okay, if the primitives allow you to construct a durable solutions, a lot harder relative to rolling your own, not like that, but also the simplest out-of-the box capability is what people want. They want solutions. We call Adam the solutions CEO. So, I think, you're going to start to see this purpose built specialized services allow the ecosystem to build those toys, so that the customers can have an out-of-the box experience while having the option for the AWS Classic, which is if you want durability, you want to tune it, you want to manage it, that's the way to go for the hardcore. Now, can be foundational, but I just see the solutions things being very much like an out-of-the-box. Okay, throw away, >> Yeah. >> buy a new toy. >> More and more, I'm saying less customers want to be that hardcore assembler of building blocks. And obviously, the really big companies do, but that line is moving >> Yeah. >> and more companies, I think, just want to run their business and they want those prebuilt solutions. >> We had to cut out of the keynote early. But I didn't hear a lot about... The example that they often use is Amazon Connect, the call center solution. >> Yeah. >> I didn't hear a lot to that in the keynote. Maybe it's happening right now, but look, at the end of the day, suites always win. The best of breed does well, (John laughing) takes off, generate a couple billion, Snowflake will grow, they'll get to 10 billion. But you look at Oracle, suites work. (laughs) >> Yeah. >> What I found interesting about the keynote is that he had this thematic exploration themes. First one was space that was like connect the dot, the nebula, different (mumbles) lens, >> Ocean. >> ask the right questions. (Dave laughing) >> Ocean was security which bears more, >> Yeah. >> a lot more needed to manage that oxygen going deep. Are you snorkeling? Are you scuba diving? Barely interesting amount of work. >> In Antarctica. >> Antarctica was the performance around how you handle tough conditions and you've got to get that performance. >> Dave: We're laughing, but it was good. >> But the day, the Ocean Day- >> Those are very poetic. >> I tweeted you, Dave, (Dave laughing) because I sit on theCUBE in 2011. I hate hail. (Dave laughing) It's the worst term ever. It's the day the ocean's more dynamic. It's a lot more flowing. Maybe 10 years too soon, Dave. But he announces the ocean theme and then says we have a Security Lake. So, like lake, ocean, little fun on words- >> I actually think the Security Lake is pretty meaningful, because we were listening to talk, coming over here talking about it, where I think, if you look at a lot of the existing solutions, security solutions there, I describe 'em as a collection of data ponds that you can view through one map, but they're not really connected. And the amount of data that AWS holds now, arguably more than any other company, if they're not going to provide the Security Lake, who is? >> Well, but staying >> Yeah. >> on security for a second. To me, the big difference between Azure and Amazon is the ecosystem. So, CrowdStrike, Okta, Zscaler, name it, CyberArk, Rapid7, they're all part of this ecosystem. Whereas Microsoft competes with all of those guys. >> Yes. Yeah. >> So it's a lot more white space than the Amazon ecosystem. >> Well, I want to get you guys to take on, so in your reaction, because I think, my vision of what what's happening here is that I think that whole data portion's going to be data as code. And I think, the ecosystem harvests the data play. If you look at AWS' key announcements here, Security Lake, price performance, they're going to optimize for those kinds of services. Look at security, okay, Security Lake, GuardDuty, EKS, that's a Docker. Docker has security problems. They're going inside the container and looking at threat detection inside containers with Kubernetes as the runtime. That's a little nuance point, but that's pretty significant, Dave. And they're now getting into, we're talking in the weeds on the security piece, adding that to their large scale security footprint. Security is going to be one of those things where if you're not on the inside of their security play, you're probably going to be on the outside. And of course, the price performance is going to be the killer. The networking piece surprise me. Their continuing to innovate on the network. What does that mean for Cisco? So many questions. >> We had Ajay Patel on yesterday for VMware. He's an awesome middleware guy. And I was asking about serverless and architectures. And he said, "Look, basically, serverless' great for stateless, but if you want to run state, you got to have control over the run time." But the point he made was that people used to think of running containers with straight VMs versus Fargate or Knative, if you choose, or serverless. They used to think of those as different architectures. And his point was they're all coming together. And it's now you're architecting and calling, which service you need. And that's how people are thinking about future architectures, which I think, makes a lot of sense. >> If you are running managed Kubernetes, which everyone's doing, 'cause no one's really building it in-house themselves. >> No. >> They're running it as managed service, skills gaps and a variety of other reasons. This EKS protection is very interesting. They're managing inside and outside the container, which means that gives 'em visibility on both sides, under the hood and inside the application layer. So, very nuanced point, Zeus. What's your reaction to this? And obviously, the networking piece, I'd love to get your thought. >> Well, security, obviously, it's becoming a... It's less about signatures and more of an analytics. And so, things happen inside the container and outside the container. And so, their ability to look on both sides of that allows you to happen threats in time, but then also predict threats that could happen when you spin the container up. And the difficulty with the containers is they are ephemeral. It's not like a VM where it's a persistent workload that you can do analysis on. You need to know what's going on with the container almost before it spins up. >> Yeah. >> And that's a much different task. So, I do think the amount of work they're doing with the containers gives them that entry into that and I think, it's a good offering for them. On the network side, they provide a lot of basic connectivity. I do think there's a role still for the Ciscos and the Aristas and companies like that to provide a layer of enhanced network services that connects multicloud. 'Cause AWS is never going to do that. But they've certainly, they're as legitimate network vendor as there is today. >> We had NetApp on yesterday. They were talking about latency in their- >> I'll tell you this, the analyst session, Steven Armstrong said, "You are going to hear us talk about multicloud." Yes. We're not going to necessarily lead with it. >> Without a mention. >> Yeah. >> But you said it before, never say never with Amazon. >> Yeah. >> We talk about supercloud and you're like, Dave, ultimately, the cloud guys are going to get into supercloud. They have to. >> Look, they will do multicloud. I predict that they will do multicloud. I'll tell you why. Just like in networking- >> Well, customers are asking for it. >> Well, one, they have the, not by design, but by defaulter and multiple clouds are in their environment. They got to deal with that. I think, the supercloud and sky cloud visions, there will be common services. Remember networking back in the old days when Cisco broke in as a startup. There was no real shortest path, first thinking. Policy came in after you connected all the routers together. So, right now, it's going to be best of breed, low latency, high performance. But I think, there's going to be a need in the future saying, hey, I want to run my compute on the slower lower cost compute. They already got segmentation by their announcements today. So, I think, you're going to see policy-based AI coming in where developers can look at common services across clouds and saying, I want to lock in an SLA on latency and compute services. It won't be super fast compared to say, on AWS, with the next Graviton 10 or whatever comes out. >> Yeah. >> So, I think, you're going to start to see that come in. >> Actually, I'm glad you brought Graviton up too, because the work they're doing in Silicon, actually I think, is... 'Cause I think, the one thing AWS now understands is some things are best optimized in Silicon, some at software layers, some in cloud. And they're doing work on all those layers. And Graviton to me is- >> John: Is a home run. >> Yeah. >> Well- >> Dave, they've got more instances, it's going to be... They already have Gravitons that's slower than the other versions. So, what they going to do, sunset them? >> They don't deprecate anything ever. So, (John laughing) Amazon paid $350 million. People believe that it's a number for Annapurna, which is like one of the best acquisitions in history. (group laughing) And it's given them, it's put them on an arm curve for Silicon that is blowing away Intel. Intel's finally going to get Sapphire Rapids out in January. Meanwhile, Amazon just keeps spinning out new Gravitons and Trainiums. >> Yeah. >> And so, they are on a price performance curve. And like you say, no developer ever wants to run on slower hardware, ever. >> Today, if there's a common need for multicloud, they might say, hey, I got the trade off latency and performance on common services if that's what gets me there. >> Sure. >> If there's maybe a business case to do that. >> Well, that's what they're- >> Which by the way, I want to.... Selipsky had strong quote I thought was, "If you're looking to tighten your belt, the cloud is the place >> Yeah. >> to do it." I thought >> I tweeted that. >> that was very strong. >> Yeah. >> Yeah. >> And I think, he's right. And then, the other point I want to make on that is, I think, I don't have any data on this, but I believe believe just based on some of the discussions I've had that most of Amazon's revenue is on demand. Paid by the drink. Those on demand customers are at risk, 'cause they can go somewhere else. So, they're trying to get you into optimized pricing, whether it's reserved instances or one year or three-year subscriptions. And so, they're working really hard at doing that. >> My prediction on that is that's a great point you brought up. My prediction is that the cost belt tightening is going to come in the marketplace, is going to be a major factor as companies want to get their belts tighten. How they going to do that, Dave? They're going to go in the marketplace saying, hey, I already overpaid a three-year commitment. Can I get some cohesively in there? Can I get some of this or that and the other thing? >> Yep. >> You're going to start to see the vendors and the ecosystem. If they're not in the marketplace, that's where I think, the customers will go. There are other choices to either cut their supplier base or renegotiate. I think, it's going to happen in the marketplace. Let's watch. I think, we're going to watch that grow. >> I actually think the optimization services that AWS has to help customers lower spend is a secret sauce for them that they... Customers tell me all the time, AWS comes in, they'll bring their costs down and they wind up spending more with them. >> Dave: Yeah. >> And the other cloud providers don't do that. And that has been almost a silver bullet for them to get customers to stay with them. >> Okay. And this is always the way. You drop the price of storage, you drop the price of memory, you drop the price of compute, people buy more. And in the question, long term is okay. And does AWS get commoditized? Is that where they're going? Or do they continue to thrive up the stack? John, you're always asking people about the bumper sticker. >> Hold on. (John drowns out Dave) Before we get the bumper sticker, I want to get into what we missed, what they missed on the keynote. >> Yeah, there are some blind spots. >> I think- >> That's good call. >> Let's go around the horn and think what did they miss? I'll start, I think, they missed the developer productivity angle. Supply chain software was not talked about at all. We see that at all the other conferences. I thought that could have been weaved in. >> Dave: You mean security in the supply chain? >> Just overall developer productivity has been one of the most constant themes I've seen at events. Who are building the apps? Who are the builders? What are they actually doing? Maybe Werner will bring that up on his last day, but I didn't hear Adam talk about it all, developer productivity. What's your take in this? >> Yeah, I think, on the security side, they announced security data lake. I think, the other cloud providers do a better job of providing insights on how they do security. With AWS, it's almost a black hole. And I know there's a careful line they walk between what they do, what their partners do. But I do think they could be a little clearer on how they operate, much like Azure and GCP. They announce a lot of stuff on how their operations works and things like that. >> I think, platform across cloud is definitely a blind spot for these guys. >> Yeah. >> I think, look at- >> But none of the cloud providers have embraced that, right? >> It's true. >> Yeah. >> Maybe Google a little bit >> Yeah. >> and Microsoft a little bit. Certainly, AWS hasn't at this point in time, but I think, they perceive the likes of Mongo and Snowflake and Databricks, and others as ISVs and they're not. They're platform players that are building across clouds. They're leveraging, they're building superclouds. So, I think that's an opportunity for the ecosystem. And very curious to see how Amazon plays there down the stream. So, John, what do you think is the bumper sticker? We're only in day one and a half here. What do you think so far the bumper sticker is for re:Invent 2022? >> Well, to me, the day one is about infrastructure performance with the whole what's in the data center? What's at the chip level? Today was about data, specialized services, and security. I think that was the key theme here. And then, that's going to sequence into how they're going to reorganize their ecosystem. They have a new leader, Ruba Borno, who's going to be leading the charge. They've integrated all their bespoke fragmented partner network pieces into one leadership. That's going to be really important to hear that. And then, finally, Werner for developers and event-based services, micro services. What that world's going on, because that's where the developers are. And ultimately, they build the app. So, you got infrastructure, data, specialized services, and security. Machine learning with Swami is going to be huge. And again, how do developers code it all up is going to be key. And is it the bag of Legos or the glued toy? (Dave chuckles) So, what do you want? Out-of-the-box or you want to build your own? >> And that's the bottom line is connecting those dots. All they got to be is good enough. I think, Zeus, to your point, >> Yep. >> if they're just good enough, less complicated, the will keep people on the base. >> Yeah. I think, the bumper stickers, the more you buy, the more you're saving. (John laughing) Because from an operational perspective, they are trying to bring down the complexity level. And with their optimization services and the way their credit model works, I do think they're trending down that path. >> And my bumper sticker's ecosystem, ecosystem, ecosystem. This company has 100,000 partners and that is a business model secret weapon. >> All right, there it is. The keynote announced. More analysis coming up. We're going to have the leader of (indistinct) coming up next, here on to break down their perspective, you got theCUBE's analyst perspective here. Thanks for watching. Day two, more live coverage for the next two more days, so stay with us. I'm John Furrier with Dave Vellante and Zeus Kerravala here on theCUBE. Be right back. (bright music)

>>Hey everyone. Welcome back to Las Vegas. The cube is live at the Venetian Expo Center for AWS Reinvent 2022. There are thousands and thousands and thousands of people here joining myself, Lisa Martin at Dave Valante. David, it's great to see the energy of day one alone. People are back, they're ready to be back. They're ready to hear from AWS and what it's gonna announce to. >>Yeah, all through the pandemic. Of course, we've talked about digital transformation, but the conversation is evolving beyond that to business transformation now, deeper integration of the cloud to really transform fundamental business operations and And that's a new era. >>It is a new era. It's exciting. We've got a couple of guests that we're gonna unpack that with. Anan. Beji joins us, the President Digital Business Services at HCL Tech and Prar, SVP and Global head of AWS business unit. Also from HCL Tech. Guys, welcome. Thank >>You. Thank you, >>Thank you. >>Let's talk about some of the latest trends anon. We'll start with you. What are some of the latest trends in digitalization, especially as it relates to cloud adoption? What are you hearing out in the marketplace? >>Yeah, I think you said it right. The post pandemic, every industry, every enterprise and every industry realize that for resilience, for their ability to change and adapt change and their ability to increase, you know, velocity of change so that they can move fast and keep up the expectations of their consumers, their partners, their employees, they need to have composability at the core and resilience at the core. And so, digital transformation became all about the ability to change, an ability to pivot faster. Now, it's easier said than done, right? Larger enterprises, especially as you move into complex regulated industries, you know, oil and gas, manufacturing, life sciences, healthcare, utilities, these are industries that are not easy to change. They're not adaptable to change, and yet they had to really become more adaptable. And they saw cloud as an enabler to, to all of that, right? So they started looking at every area of their business, business processes that make up their value chains and really look at how can they increase the adaptability and the ability to change these value chains so that they can engage with their customers better, their partners, better their employees better, and also build some of the composability. >>And what might mean that is that just kind of like Lego blocks, they don't have to make changes that are sweeping and big that are difficult to make, but make them in parts so that they can make them again and again. So velocity of change becomes important. Clouds become an enabler to all of this. And so if I look at the last four years, every industry, whether regulated or not b2c, B2B to C, B2B is adopting cloud for digital acceleration. >>I'm curious to what you're seeing on the front lines, given the macro headwinds. You mentioned business resilience and during the pandemic, it was a lot of CIOs told us, wow, we were, we were kind of focused on disaster recovery, but our business wasn't resilient. We were really optimizing for efficiency. And then they started to okay, build in that business resilience. But now you got the economic headwinds. Yes. People are tapping their brakes a little bit. There's some uncertainty, a longer sales cycle, even the cloud's not immune. Yeah. Even though it's still growing at 30% plus per year. What are you guys seeing in the field with the AWS partnership? How are customers, you know, dealing with some of those more strategic transformation projects? Yeah, >>Yeah. So you know, first off, one thing that's changed and is different is every industry realizes that there is no choice. They don't have a choice to not be resilient. They don't have a choice to not be adaptable. The pandemic has taught them that the markets and the macros are increasingly changing supply chains. It's changing customer behavior for their own industries. It's changing their pricing and their cost models. And for all of that, they need to continue on their digital journeys. Now, what's different though is they wanna prioritize. They wanna prioritize and do more with less. They want to adapt faster, but also make sure that they don't, they don't just try to do everything together. And so there's a lot of focus on what do we prioritize? How do we leverage cloud to move faster, you know, and cheaper in terms of our change. >>And also to decide where do we consume and where do we compose? We'll talk a little bit more about that. There are certain things that you don't want to invent yourself. You can consume from cloud providers, whether it's business features, whether it is cloud capabilities. And so it's, there is a shift from adopting cloud just for cost takeout and just for resilience, but also for composability, which means let's consume what I can consume from the cloud and really build those features faster. So squeeze the go to market time, squeeze the time to market and squeeze the price to market, right? So that's the >>Change and really driving those business outcomes. As we talked about Absolut ard, talk to us about how hcl tech and AWS are working together. How are you enabling customers to achieve what an was talking about? >>Oh, absolutely. I mean, our partnership has started almost 10 years back, but over the last one year, we have created what we call as AWS dedicated business unit to look at end to end stock from an AWS perspective. So what we see in the market as a explained is more drive from clients for optimization, driving, app modernization, driving consolidation, looking at the cost, sustainability angles, looking at the IOT angle, manufacturing platforms, the industry adoption. All this is actually igniting the way the industry would look at AWS and as well as the partnership. So from an HCL tech and AWS partnership, we're actually accelerating most of these conversations by building bespoke accelerated industry solutions. So what I mean is, for example, there is an issue with a manufacturing plant and take Covid situation, people can't get into a a manufacturing plant. So how can AWS help put it in the cloud, accelerate those conversations. So we are building those industry specific solutions so that it can be everybody from a manufacturing sector can adopt and actually go to market. As well as you can access all this applications once it is in the cloud from anywhere, any device with a scalable options. That's where our partnership is actually igniting lot of cloud conversations and playing conversations in the market. So we see a lot of traction there. Lisa, on >>That, incredibly important during the last couple of years alone. >>Absolutely. I mean, last couple of years have been groundbreaking, right? Especially with the covid, for example, Amazon Connect, we use, we used Amazon Connect to roll out, you know, call center at the cloud, right? So you don't have to walk into an office, for example. People are working in the banking sector, especially in the trading platform. They were, they were not able to get there. So, but they need to make calls. How do you do the customer service? So Amazon Connect came right at the junction, so call center in the cloud and you can access, dial the number so the customer don't feel the pain of, you know, somebody not answering. It's accessible. That's where the partnership or the HCL tech partnership and AWS comes into play because we bring the scale, the skill set capability with the services of, you know, aws, Amazon, and that forms a concrete story for the client, right? That's one such example. And you know, many such examples are in the market that we are accelerating in the, in the discussions. >>And connect is a good example. Lisa, we were talking earlier about Amazon doubling down on the primitives, but also moving up up market as well, up chain up the value chain. And it needs partners like HCL to be able to go into various industries and apply that effectively. Absolutely. And that's where business transformation comes >>In. Absolutely. Absolutely. I think some of the aspects that we are looking at is, you know, while we do most of this cloud transformation initiatives from an tech perspective, what we are doing is we are encompassing them into a story, which we call it as cloud smart, right? So we are calling it as cloud smart, which is a go-to market offering from Atcl Tech, where the client doesn't have to look at each of these services from various vendors. So it's a one stop shop, right? From strategy consulting, look, implementation, underpinned by app modernization, consolidation, and the operational. So we do that as end to end service with our offerings, which is why helping us actually accelerate conversations on the crowd. What happen is the clients are also building these capabilities more and more often. You see a lot of new services are being added to aws, so not many clients are aware of it. So it is the responsibility of system integrator like us to make them aware and bring it into a shape where the client can consume in a low cost option, in an optimized way. That's where I think it's, it's, it's working out very well for us. With the partnership of, so >>You curate those services that you know will fit the customer's business. You, you know, the ingredients that you could put together, the, the dinner. >>Absolutely. You're preparing a dish, right? So you're preparing a dish, you know where the ingredients are. So the ingredients are supplied by aws. So you need to prepare a pasta dish, right? So you, you how spicy you want to make it howland, you want to make it, you know what source you want to use. How do you bring all those elements together? That's what, you know, tech has been focusing on. >>And you use the word curation, right? Curation is really industry process down, depending on your industry, every industry, every enterprise, there are things that are differentiating them. There's a business processes that differentiate you and there are business processes that don't necessarily differentiate you but are core to you. For example, if you're a retailer, you know, you're retailing, you're merchandising, how you price your products, how you market your products, your supply chains, those differentiate you. How you run your general ledger, your accounting, your payables. HR is core to your business but doesn't differentiate you. And the choices you make in the cloud for each of these areas are different. What differentiates you? You compose what doesn't differentiate you consume because you don't want to try and compose what >>Telco Exactly. Oh my gosh. >>Our biggest examples are in Telco, right? Right. Their omnichannel marketing, you know, how they connect with their consumers, how they do their billing systems, how they do their pricing systems. Those are their differentiations and things that don't they want to consume. And that's where cloud adoption needs to come with really a curation framework. We call it the Phoenix framework, which defines what differentiates you versus not. And based on that, what are the architectural choices you make at the applications layer, the integration layer, the data layer, and the infrastructure layer all from aws and how do you make those choices? >>Talk about a customer example anon that really articulates that value. >>Yeah, I'll give you an example that sort of, everybody can relate to a very large tools company that manufactures tools that we all use at home for, you know, remodeling our houses, building stuff, building furniture. Their business post pandemic dramatically shifted in every way possible. Nobody was going anymore to Home Depot and Lowe's to buy their tools, their online business surge by 200%. Their supply chains were changing because their manufacturers originally were in China and Malaysia. They were shifting a lot of that base to Taiwan and Germany and Latin America. Their pricing model was changing. Their last mile deliveries were changing cuz they were not used to delivering you and me last mile deliveries. So every aspect of their business was changing. They hadn't thought of their business in the same way, but guess what? That business was growing, but the needs were changing and they needed to rethink every value chain in their business. >>And so they had to adopt cloud. They leverage AWS at their core to rethink every part of their business. Rebuilding their supply chain applications, modernizing their warehouse management systems, modernizing their pricing systems, modernizing their sales and marketing platforms, every aspect you can think of and all of that within 24 months. Cuz otherwise they would lose market share, you know, in any given market. And all of this, while they were, you know, delivering their day to day business, they were manufacturing the goods and they were shipping products. So that was quite a lot to achieve in 24 months. And that's not just one example is across industries, examples like that that we have. That's >>One of the best business transformation examples I think I've heard. >>Absolutely. Absolutely. And so cloud does need to start with a business transformation objective. And that's what's happening to the cloud. It's changing away from an infrastructure consolidation discussion to business task. >>Because I know you guys have a theater session tomorrow on, on continuous modern, it was experiencing cloud transformation and continuous modernization. That's the theme. Pre-cloud. It was just a, you'd, you'd live, you'd rip and replace your infrastructure and it was a big application portfolio assessment and rationalization. It was just, it just became this years long, you know, like an SAP installation. Yes. How has cloud changed that and what's, tell us more about that session and that continuous modernization. Yeah, >>So, so we are doing a John session with a client on how HCL Tech helped the client in terms of transforming the landscape and adopting cloud much faster, you know, into the ecosystem. So what we are currently doing is, so it's a continuous process. So when we talk about cloud adoption transformation, it doesn't stop there. So it, it needs to keep evolving. So what we came up with a framework for the all such clients who are on the cloud transformation part need to look at which we call it a smart waste cloud, cloud smart. Where once it is in the clouds, smart waste to cloud for cloud and in the cloud. So what happens is, when it is to cloud, what do you do? What are the accelerators? What are the frameworks? Smart waste for clouds? How do you look at the governance of it? >>Okay? Consolidation activities of it, once it is in the cloud, how do we optimize, what do you look at? Security aspects, et cetera. So the client doesn't have to go to multiple ecosystem partners to look at it. So he is looking at one such service provider who can actually encompass and give all this onto the plate in a much more granular fashion with accelerated approach. So we build accelerated solutions frameworks, which helps the client to actually pick and choose in a much lower cost, I think. And it has to be a continuous modernization for the client. So why we are calling it as a continuous modernization is we are also also creating what we call cloud foundries and factories. What happens is the client can look at not only in a transformation journey, but also futuristic when there are new services are adapted, how this transformation and factories helping them in a lower cost option and driving that a acceleration story. So we are addressing it in multiple ways. One on the transformation front, one on the TCO front, one on the AX accelerated front, one on the operational front. So all this combined into one single framework, which is what is a continuous modernization of clouded option from xgl tech. >>When you apply this framework with customers, how do you deal with technical debt? Can you avoid technical debt? Can you hide technical debt? Or is it like debt and taxes? We're always gonna have technical debt because Amazon, you know, they'll talk about, they don't ever deprecate anything. Yeah. You know, are they gonna, are we gonna see Amazon take on tech? How do you avoid that? Or at least shield the customer for that technical debt. >>So every cio, right? Key ambitions are digital cloud, TCO optimization, sustainability. So we have a framework for that. So every CIO will look at, okay, I wanna spend, but I want to be optimized. My TCO should not go up. So that's where a system integrator like us comes. We have AOP story where, which does the complete financial analysis of your cloud adoption as to what estate and what technical client already has. How can we optimize that and how can we, how can we overlay on top of that our own services to make it much more optimized solution for the client? And there are several frameworks that we have defined for the CIO organizations where the CIO can actually look at some of these elements and adopt it internally within the system. You wanna pick it from there? >>Yeah, I think, I think it's, it's, it's a great question. First of all, there's a generational shift in the last three years where nobody's doing lift and shift of traditional applications or traditional data systems to the cloud. As you said, nobody's taking their technical debt to the cloud anymore. >>Business value's not there. >>There's no business value, right? The value is really being cloud native, which means you want to continuously modernize your value chains, which means your applications, your integration, your data to leverage the cloud and continuously modernize. Now you will still make priority decisions, right? Things that really differentiate you. You will modernize them through composition things that don't, you'll rather consume them, but in both factors, you're modernizing, I use the word surround and drown enterprises are surrounding their traditional, you know, environments and drowning them over a period of time. So over the next five years, you'll see more and more irrelevant legacy because the relevance is being built in the cloud, cloud for the future. That's the way I see it. >>Speaking of, take us out here, speaking of business value and on, we're almost outta time here. If there's a billboard on 1 0 1 in Palo Alto regarding HCL tech, what's the value prop? What does it say? >>It's a simple billboard. We say we are super charging our customers, our partners, our employees. We are super charging progress. And we believe that the strength that we bring from learnings of over 200,000 professionals that work at hcl working with over half of, you know, 500 of the, the largest Fortune thousands in the world is, is really bringing those learnings that we continuously look at every day that we live with, every day across all kind of regulations, all kind of industries, in adopting new technologies, in modernizing their business strategies and achieving their business transformation goals with the velocity they want. That's kind of the supercharging progress mantra, >>Super charging progress. Love it. Guys, thank you so much for joining. David, me on the program talking about, thank you for having a conversation. Our pleasure. What's going on with HCL Tech, aws, the value that you're delivering for customers. Thank you so much for your time. Thank >>You. Thank you. Thanks. Have a great time. >>Take care for our guests. I'm Lisa Martin, he's Dave Valante. You're watching The Cube, the leader in live enterprise and emerging tech coverage.

(upbeat music) >> Hello everyone, welcome to this CUBE Showcase, accelerating business transformation with VMware Cloud on AWS. It's a solution innovation conversation with two great guests, Fred Wurden, VP of Commercial Services at AWS and Narayan Bharadwaj, who's the VP and General Manager of Cloud Solutions at VMware. Gentlemen, thanks for joining me on the showcase. >> Great to be here. >> Great. Thanks for having us on. It's a great topic. >> We've been covering this VMware cloud on AWS since the launch going back and it's been amazing to watch the evolution from people saying, Oh, it's the worst thing I've ever seen. What's this mean? And the press were not really on board with the vision, but as it played out as you guys had announced together, it did work out great for VMware. It did work out great for AWS and it continues two years later and I want to just get an update from you guys on where you guys see this has been going. I'll see multiple years. Where is the evolution of the solution as we are right now coming off VMware explorer just recently and going in to re:Invent, which is only a couple weeks away Feels like tomorrow. But as we prepare, a lot going on. Where are we with the evolution of the solution? >> I mean, first thing I want to say is October 2016 was a seminal moment in the history of IT. When Pat Gelsinger and Andy Jassy came together to announce this. And I think John, you were there at the time I was there. It was a great, great moment. We launched the solution in 2017 year after that at VMworld, back when we called it VMworld. I think we have gone from strength to strength. One of the things that has really mattered to us is we've learned from AWS also in the processes, this notion of working backwards. So we really, really focused on customer feedback as we built a service offering now five years old. Pretty remarkable journey. In the first years we tried to get across all the regions, that was a big focus because there was so much demand for it. In the second year, we started going really on enterprise great features. We invented this pretty awesome feature called Stretched Clusters, where you could stretch a vSphere cluster using vSAN and NSX-T across to AZs in the same region. Pretty phenomenal four nines of availability that applications started to get with that particular feature. And we kept moving forward, all kinds of integration with AWS Direct Connect, Transit Gateways with our own advanced networking capabilities. Along the way, Disaster Recovery, we punched out two new services just focused on that. And then more recently we launched our Outposts partnership. We were up on stage at re:Invent, again, with Pat and Andy announcing AWS Outposts and the VMware flavor of that, VMware Cloud and AWS Outposts. I think it's been significant growth in our federal sector as well with our federal and high certification more recently. So all in all, we are super excited. We're five years old. The customer momentum is really, really strong and we are scaling the service massively across all geos and industries. >> That's great, great update. And I think one of the things that you mentioned was how the advantages you guys got from that relationship. And this has been the theme for AWS, man, since I can remember from day one, Fred. You guys do the heavy lifting as you always say for the customers. Here, VMware comes on board. Takes advantage of the AWS and just doesn't miss a beat. Continues to move their workloads that everyone's using, vSphere, and these are big workloads on AWS. What's the AWS perspective on this? How do you see it? >> Yeah, it's pretty fascinating to watch how fast customers can actually transform and move when you take the skill set that they're familiar with and the advanced capabilities that they've been using on-prem and then overlay it on top of the AWS infrastructure that's evolving quickly and building out new hardware and new instances we'll talk about. But that combined experience between both of us on a jointly engineered solution to bring the best security and the best features that really matter for those workloads drive a lot of efficiency and speed for the customers. So it's been well received and the partnership is stronger than ever from an engineering standpoint, from a business standpoint. And obviously it's been very interesting to look at just how we stay day one in terms of looking at new features and work and responding to what customers want. So pretty excited about just seeing the transformation and the speed that which customers can move to while at VMC. >> That's a great value proposition. We've been talking about that in context to anyone building on top of the cloud. They can have their own supercloud, as we call it, if you take advantage of all the CapEx and investment Amazon's made and AWS has made and continues to make in performance IaaS and PaaS, all great stuff. I have to ask you guys both as you guys see this going to the next level, what are some of the differentiations you see around the service compared to other options in the market? What makes it different? What's the combination? You mentioned jointly engineered. What are some of the key differentiators of the service compared to others? >> Yeah. I think one of the key things Fred talked about is this jointly engineered notion. Right from day one we were the early adopters of the AWS Nitro platform. The reinvention of EC2 back five years ago. And so we have been having a very, very strong engineering partnership at that level. I think from a VMware customer standpoint, you get the full software-defined data center, compute storage networking on EC2, bare metal across all regions. You can scale that elastically up and down. It's pretty phenomenal just having that consistency globally on AWS EC2 global regions. Now the other thing that's a real differentiator for us, what customers tell us about is this whole notion of a managed service. And this was somewhat new to VMware. But we took away the pain of this undifferentiated heavy lifting where customers had to provision rack stack hardware, configure the software on top, and then upgrade the software and the security patches on top. So we took away all of that pain as customers transitioned to VMware cloud in AWS. In fact, my favorite story from last year when we were all going through the Log4j debacle. Industry was just going through that. Favorite proof point from customers was before they could even race this issue to us, we sent them a notification saying, we already patched all of your systems, no action from you. The customers were super thrilled. I mean, these are large banks. Many other customers around the world were super thrilled they had to take no action, but a pretty incredible industry challenge that we were all facing. >> Narayan, that's a great point. The whole managed service piece brings up the security. You kind of teasing at it, but there's always vulnerabilities that emerge when you are doing complex logic. And as you grow your solutions, there's more bits. Fred, we were commenting before we came on camera more bits than ever before and at the physics layer too, as well as the software. So you never know when there's going to be a zero-day vulnerability out there. It happens. We saw one with Fortinet this week. This came out of the woodwork. But moving fast on those patches, it's huge. This brings up the whole support angle. I wanted to ask you about how you guys are doing that as well, because to me, we see the value when we talk to customers on theCUBE about this. It was a real easy understanding of what the cloud means to them with VMware now with the AWS. But the question that comes up that we want to get more clarity on is how do you guys handle support together? >> Well, what's interesting about this is that it's done mutually. We have dedicated support teams on both sides that work together pretty seamlessly to make sure that whether there's a issue at any layer, including all the way up into the app layer, as you think about some of the other workloads like SAP, we'll go end-to-end and make sure that we support the customer regardless of where the particular issue might be for them. And on top of that, we look at where we're improving reliability in as a first order of principle between both companies. So from availability and reliability standpoint, it's top of mind and no matter where the particular item might land, we're going to go help the customer resolve that. It works really well. >> On the VMware side, what's been the feedback there? What are some of the updates? >> Yeah, I think, look, I mean, VMware owns and operates the service, but we work phenomenal backend relationship with AWS. Customers call VMware for the service or any issues. And then we have a awesome relationship with AWS on the backend for support issues or any hardware issues. The key management that we jointly do. All of the hard problems that customers don't have to worry about. I think on the front end, we also have a really good group of solution architects across the companies that help to really explain the solution, do complex things like cloud migration, which is much, much easier with the VMware Cloud in AWS. We're presenting that easy button to the public cloud in many ways. And so we have a whole technical audience across the two companies that are working with customers every single day. >> You had mentioned, I've got list here of some of the innovations. You mentioned the stretch clustering, getting the geos working, advanced network, Disaster Recovery, FedRAMP, public sector certifications, Outposts. All good, you guys are checking the boxes every year. You got a good accomplishments list there on the VMware AWS side here in this relationship. The question that I'm interested in is what's next? What recent innovations are you doing? Are you making investments in? What's on the list this year? What items will be next year? How do you see the new things, the list of accomplishments? People want to know what's next. They don't want to see stagnant growth here. They want to see more action as cloud continues to scale and modern applications cloud native. You're seeing more and more containers, more and more CI/CD pipelining with modern apps, put more pressure on the system. What's new? What's the new innovations? >> Absolutely. And I think as a five year old service offering, innovation is top of mind for us every single day. So just to call out a few recent innovations that we announced in San Francisco at VMware Explore. First of all, our new platform i4i.metal. It's isolate based. It's pretty awesome. It's the latest and greatest, all the speeds and feeds that we would expect from VMware and AWS at this point in our relationship. We announced two different storage options. This notion of working from customer feedback, allowing customers even more price reductions, really take off that storage and park it externally and separate that from compute. So two different storage offerings there. One is with AWS FSx with NetApp ONTAP, which brings in our NetApp partnership as well into the equation and really get that NetApp based really excited about this offering as well. And the second storage offering called VMware Cloud Flex Storage. VMware's own managed storage offering. Beyond that, we have done a lot of other innovations as well. I really wanted to talk about VMware Cloud Flex Compute where previously customers could only scale by hosts and a host is 36 to 48 cores, give or take. But with VMware Cloud Flex Compute, we are now allowing this notion of a resource defined compute model where customers can just get exactly the vCPU memory and storage that maps to the applications, however small they might be. So this notion of granularity is really a big innovation that we are launching in the market this year. And then last but not least, top of ransomware. Of course it's a hot topic in the industry. We are seeing many, many customers ask for this. We are happy to announce a new ransomware recovery with our VMware Cloud DR solution. A lot of innovation there and the way we are able to do machine learning and make sure the workloads that are covered from snapshots and backups are actually safe to use. So there's a lot of differentiation on that front as well. A lot of networking innovations with Project Northstar. Our ability to have layer four through layer seven, new SaaS services in that area as well. Keep in mind that the service already supports managed Kubernetes for containers. It's built in to the same clusters that have virtual machines. And so this notion of a single service with a great TCO for VMs and containers is sort at the heart of our (faintly speaking). >> The networking side certainly is a hot area to keep innovating on. Every year it's the same, same conversation, get better faster, networking more options there. The Flex Compute is interesting. If you don't mind me getting a quick clarification, could you explain the resource-defined versus hardware-defined? Because this is what we had saw at Explore coming out, that notion of resource-defined versus hardware-defined. What does that mean? >> Yeah, I mean I think we have been super successful in this hardware-defined notion. We we're scaling by the hardware unit that we present as software-defined data centers. And so that's been super successful. But customers wanted more, especially customers in different parts of the world wanted to start even smaller and grow even more incrementally. Lower the cost even more. And so this is the part where resource-defined starts to be very, very interesting as a way to think about, here's my bag of resources exactly based on what the customers request before fiber machines, five containers. It's size exactly for that. And then as utilization grows, we elastically behind the scenes, we're able to grow it through policies. So that's a whole different dimension. That's a whole different service offering that adds value and customers are comfortable. They can go from one to the other. They can go back to that host based model if they so choose to. And there's a jump off point across these two different economic models. >> It's cloud flexibility right there. I like the name. Fred, let's get into some of the examples of customers, if you don't mind, let's get into some of the, we have some time. I want to unpack a little bit of what's going on with the customer deployments. One of the things we've heard again on theCUBE is from customers is they like the clarity of the relationship, they love the cloud positioning of it. And then what happens is they lift and shift the workloads and it's like feels great. It's just like we're running VMware on AWS and then they start consuming higher level services. That adoption next level happens and because it's in the cloud. So can you guys take us through some recent examples of customer wins or deployments where they're using VMware cloud on AWS on getting started and then how do they progress once they're there? How does it evolve? Can you just walk us through a couple use cases? >> Sure. Well, there's a couple. One, it's pretty interesting that like you said, as there's more and more bits, you need better and better hardware and networking. And we're super excited about the i4 and the capabilities there in terms of doubling and or tripling what we're doing around lower variability on latency and just improving all the speeds. But what customers are doing with it, like the college in New Jersey, they're accelerating their deployment on onboarding over like 7,400 students over a six to eight month period. And they've really realized a ton of savings. But what's interesting is where and how they can actually grow onto additional native services too. So connectivity to any other services is available as they start to move and migrate into this. The options there obviously are tied to all the innovation that we have across any services, whether it's containerized and with what they're doing with Tanzu or with any other container and or services within AWS. So there's some pretty interesting scenarios where that data and or the processing, which is moved quickly with full compliance, whether it's in like healthcare or regulatory business is allowed to then consume and use things, for example, with Textract or any other really cool service that has monthly and quarterly innovations. So there's things that you just could not do before that are coming out and saving customers money and building innovative applications on top of their current app base in a rapid fashion. So pretty excited about it. There's a lot of examples. I think I probably don't have time to go into too many here. But that's actually the best part is listening to customers and seeing how many net new services and new applications are they actually building on top of this platform. >> Narayan, what's your perspective from the VMware side? 'Cause you guys have now a lot of headroom to offer customers with Amazon's higher level services and or whatever's homegrown where it's being rolled out 'cause you now have a lot of hybrid too. So what's your take on what's happening in with customers? >> I mean, it's been phenomenal. The customer adoption of this and banks and many other highly sensitive verticals are running production-grade applications, tier one applications on the service over the last five years. And so I have a couple of really good examples. S&P Global is one of my favorite examples. Large bank, they merge with IHS Markit, big conglomeration now. Both customers were using VMware Cloud and AWS in different ways. And with the use case, one of their use cases was how do I just respond to these global opportunities without having to invest in physical data centers? And then how do I migrate and consolidate all my data centers across the global, which there were many. And so one specific example for this company was how they migrated 1000 workloads to VMware Cloud and AWS in just six weeks. Pretty phenomenal if you think about everything that goes into a cloud migration process, people process technology. And the beauty of the technology going from VMware point A to VMware point B. The lowest cost, lowest risk approach to adopting VMware Cloud and AWS. So that's one of my favorite examples. There are many other examples across other verticals that we continue to see. The good thing is we are seeing rapid expansion across the globe, but constantly entering new markets with a limited number of regions and progressing our roadmap. >> It's great to see. I mean, the data center migrations go from months, many, many months to weeks. It's interesting to see some of those success stories. Congratulations. >> One of the other interesting fascinating benefits is the sustainability improvement in terms of being green. So the efficiency gains that we have both in current generation and new generation processors and everything that we're doing to make sure that when a customer can be elastic, they're also saving power, which is really critical in a lot of regions worldwide at this point in time. They're seeing those benefits. If you're running really inefficiently in your own data center, that is not a great use of power. So the actual calculators and the benefits to these workloads are pretty phenomenal just in being more green, which I like. We just all need to do our part there and this is a big part of it here. >> It's a huge point about the sustainability. Fred, I'm glad you called that out. The other one I would say is supply chain issue is another one. You see that constraints. I can't buy hardware. And the third one is really obvious, but no one really talks about it. It's security. I mean, I remember interviewing Steven Schmidt with that AWS and many years ago, this is like 2013 and at that time people were saying, the cloud's not secure. And he's like, listen, it's more secure in the cloud on-premise. And if you look at the security breaches, it's all about the on-premise data center vulnerabilities, not so much hardware. So there's a lot, the stay current on the isolation there is hard. So I think the security and supply chain, Fred, is another one. Do you agree? >> I absolutely agree. It's hard to manage supply chain nowadays. We put a lot of effort into that and I think we have a great ability to forecast and make sure that we can lean in and have the resources that are available and run them more efficiently. And then like you said on the security point, security is job one. It is the only P1. And if you think of how we build our infrastructure from Nitro all the way up and how we respond and work with our partners and our customers, there's nothing more important. >> And Narayan, your point earlier about the managed service patching and being on top of things is really going to get better. All right, final question. I really want to thank you for your time on this showcase. It's really been a great conversation. Fred, you had made a comment earlier. I want to end with a curve ball and put you eyes on the spot. We're talking about a new modern shift. We're seeing another inflection point. We've been documenting it. It's almost like cloud hitting another inflection point with application and open source growth significantly at the app layer. Continue to put a lot of pressure and innovation in the infrastructure side. So the question is for you guys each to answer is, what's the same and what's different in today's market? So it's like we want more of the same here, but also things have changed radically and better here. What's changed for the better and what's still the same thing hanging around that people are focused on? Can you share your perspective? >> I'll tackle it. Businesses are complex and they're often unique, that's the same. What's changed is how fast you can innovate. The ability to combine managed services and new innovative services and build new applications is so much faster today. Leveraging world class hardware that you don't have to worry about, that's elastic. You could not do that even five, 10 years ago to the degree you can today, especially with innovation. So innovation is accelerating at a rate that most people can't even comprehend and understand the set of services that are available to them. It's really fascinating to see what a one pizza team of engineers can go actually develop in a week. It is phenomenal. So super excited about this space and it's only going to continue to accelerate that. That's my take, Narayan. >> You got a lot of platform to compete on. With Amazon, you got a lot to build on. Narayan, your side. What's your answer to that question? >> I think we are seeing a lot of innovation with new applications that customers are constantly (faintly speaking). I think what we see is this whole notion of how do you go from desktop to production to the secure supply chain and how can we truly build on the agility that developers desire and build all the security and the pipelines to energize that production quickly and efficiently. I think we are seeing, we are at the very start of that sort of journey. Of course, we have invested in Kubernetes, the means to an end, but we're so much more beyond that's happening in industry and I think we're at the very, very beginning of this transformations, enterprise transformation that many of our customers are going through and we are inherently part of it. >> Well, gentlemen, I really appreciate that we're seeing the same thing. It's more the same here on solving these complexities with distractions, whether it's higher level services with large scale infrastructure. At your fingertips, infrastructure as code, infrastructure to be provisioned, serverless, all the good stuff happen and Fred with AWS on your side. And we're seeing customers resonate with this idea of being an operator again, being a cloud operator and developer. So the developer ops is kind of, DevOps is changing too. So all for the better. Thank you for spending the time and we're seeing again that traction with the VMware customer base and AWS getting along great together. So thanks for sharing your perspectives. >> We appreciate it. Thank you so much. >> Thank you John. >> This is theCUBE and AWS VMware showcase accelerating business transformation, VMware Cloud on AWS. Jointly engineered solution bringing innovation to the VMware customer base, going to the cloud and beyond. I'm John Furrier, your host. Thanks for watching. (gentle music)

>>Hey guys and girls, welcome back to Motor City, Lisa Martin here with John Furrier on the Cube's third day of coverage of Coon Cloud Native Con North America. John, we've had some great conversations over the last two and a half days. We've been talking about identity and security management as a critical need for enterprises within the cloud native space. We're gonna have another quick conversation >>On that. Yeah, we got a great segment coming up from someone who's been in the industry, a long time expert, running a great company. Now it's gonna be one of those pieces that fits into what we call super cloud. Others are calling cloud operating system. Some are calling just Cloud 2.0, 3.0. But there's definitely a major trend happening around how cloud is going Next generation. We've been covering it. So this segment should be >>Great. Let's unpack those trends. One of our alumni is back with us, O Rika Zi, co-founder and CEO of Aerio. Omri. Great to have you back on the >>Cube. Thank you. Great to be here. >>So identity move to the cloud, Access authorization did not talk to us about why you found it assertive, what you guys are doing and how you're flipping that script. >>Yeah, so back 15 years ago, I helped start Azure at Microsoft. You know, one of the first few folks that you know, really focused on enterprise services within the Azure family. And at the time I was working for the guy who ran all of Windows server and you know, active directory. He called it the linchpin workload for the Windows Server franchise, like big words. But what he meant was we had 95% market share and all of these new SAS applications like ServiceNow and you know, Workday and salesforce.com, they had to invent login and they had to invent access control. And so we were like, well, we're gonna lose it unless we figure out how to replace active directory. And that's how Azure Active Directory was born. And the first thing that we had to do as an industry was fix identity, right? Yeah. So, you know, we worked on things like oof Two and Open, Id Connect and SAML and Jot as an industry and now 15 years later, no one has to go build login if you don't want to, right? You have companies like Odd Zero and Okta and one login Ping ID that solve that problem solve single sign-on, on the web. But access Control hasn't really moved forward at all in the last 15 years. And so my co-founder and I who were both involved in the early beginnings of Azure Active directory, wanted to go back to that problem. And that problem is even bigger than identity and it's far from >>Solved. Yeah, this is huge. I think, you know, self-service has been a developer thing that's, everyone knows developer productivity, we've all experienced click sign in with your LinkedIn or Twitter or Google or Apple handle. So that's single sign on check. Now the security conversation kicks in. If you look at with this no perimeter and cloud, now you've got multi-cloud or super cloud on the horizon. You've got all kinds of opportunities to innovate on the security paradigm. I think this is kind of where I'm hearing the most conversation around access control as well as operationally eliminating a lot of potential problems. So there's one clean up the siloed or fragmented access and two streamlined for security. What's your reaction to that? Do you agree? And if not, where, where am I missing that? >>Yeah, absolutely. If you look at the life of an IT pro, you know, back in the two thousands they had, you know, l d or active directory, they add in one place to configure groups and they'd map users to groups. And groups typically corresponded to roles and business applications. And it was clunky, but life was pretty simple. And now they live in dozens or hundreds of different admin consoles. So misconfigurations are rampant and over provisioning is a real problem. If you look at zero trust and the principle of lease privilege, you know, all these applications have these course grained permissions. And so when you have a breach, and it's not a matter of if, it's a matter of when you wanna limit the blast radius of you know what happened, and you can't do that unless you have fine grained access control. So all those, you know, all those reasons together are forcing us as an industry to come to terms with the fact that we really need to revisit access control and bring it to the age of cloud. >>You guys recently, just this week I saw the blog on Topaz. Congratulations. Thank you. Talk to us about what that is and some of the gaps that's gonna help sarto to fill for what's out there in the marketplace. >>Yeah, so right now there really isn't a way to go build fine grains policy based real time access control based on open source, right? We have the open policy agent, which is a great decision engine, but really optimized for infrastructure scenarios like Kubernetes admission control. And then on the other hand, you have this new, you know, generation of access control ideas. This model called relationship based access control that was popularized by Google Zanzibar system. So Zanzibar is how they do access control for Google Docs and Google Drive. If you've ever kind of looked at a Google Doc and you know you're a viewer or an owner or a commenter, Zanzibar is the system behind it. And so what we've done is we've married these two things together. We have a policy based system, OPPA based system, and at the same time we've brought together a directory, an embedded directory in Topaz that allows you to answer questions like, does this user have this permission on this object? And bringing it all together, making it open sources a real game changer from our perspective, real >>Game changer. That's good to hear. What are some of the key use cases that it's gonna help your customers address? >>So a lot of our customers really like the idea of policy based access management, but they don't know how to bring data to that decision engine. And so we basically have a, you know, a, a very opinionated way of how to model that data. So you import data out of your identity providers. So you connect us to Okta or oze or Azure, Azure Active directory. And so now you have the user data, you can define groups and then you can define, you know, your object hierarchy, your domain model. So let's say you have an applicant tracking system, you have nouns like job, you know, know job descriptions or candidates. And so you wanna model these things and you want to be able to say who has access to, you know, the candidates for this job, for example. Those are the kinds of rules that people can express really easily in Topaz and in assertive. >>What are some of the challenges that are happening right now that dissolve? What, what are you looking at to solve? Is it complexity, sprawl, logic problems? What's the main problem set you guys >>See? Yeah, so as organizations grow and they have more and more microservices, each one of these microservices does authorization differently. And so it's impossible to reason about the full surface area of, you know, permissions in your application. And more and more of these organizations are saying, You know what, we need a standard layer for this. So it's not just Google with Zanzibar, it's Intuit with Oddy, it's Carta with their own oddy system, it's Netflix, you know, it's Airbnb with heed. All of them are now talking about how they solve access control extracted into its own service to basically manage complexity and regain agility. The other thing is all about, you know, time to market and, and tco. >>So, so how do you work with those services? Do you replace them, you unify them? What is the approach that you're taking? >>So basically these organizations are saying, you know what? We want one access control service. We want all of our microservices to call that thing instead of having to roll out our own. And so we, you know, give you the guts for that service, right? Topaz is basically the way that you're gonna go implement an access control service without having to go build it the same way that you know, large companies like Airbnb or Google or, or a car to >>Have. What's the competition look like for you guys? I'm not really seeing a lot of competition out there. Are there competitors? Are there different approaches? What makes you different? >>Yeah, so I would say that, you know, the biggest competitor is roll your own. So a lot of these companies that find us, they say, We're sick and tired of investing 2, 3, 4 engineers, five engineers on this thing. You know, it's the gift that keeps on giving. We have to maintain this thing and so we can, we can use your solution at a fraction of the cost a, a fifth, a 10th of what it would cost us to maintain it locally. There are others like Sty for example, you know, they are in the space, but more in on the infrastructure side. So they solve the problem of Kubernetes submission control or things like that. So >>Rolling your own, there's a couple problems there. One is do they get all the corner cases who built a they still, it's a company. Exactly. It's heavy lifting, it's undifferentiated, you just gotta check the box. So probably will be not optimized. >>That's right. As Bezo says, only focus on the things that make your beer taste better. And access control is one of those things. It's part of your security, you know, posture, it's a critical thing to get right, but you know, I wanna work on access control, said no developer ever, right? So it's kind of like this boring, you know, like back office thing that you need to do. And so we give you the mechanisms to be able to build it securely and robustly. >>Do you have a, a customer story example that is one of your go-tos that really highlights how you're improving developer productivity? >>Yeah, so we have a couple of them actually. So there's the largest third party B2B marketplace in the us. Free retail. Instead of building their own, they actually brought in aer. And what they wanted to do with AER was be the authorization layer for both their externally facing applications as well as their internal apps. So basically every one of their applications now hooks up to AER to do authorization. They define users and groups and roles and permissions in one place and then every application can actually plug into that instead of having to roll out their own. >>I'd like to switch gears if you don't mind. I get first of all, great update on the company and progress. I'd like to get your thoughts on the cloud computing market. Obviously you were your legendary position, Azure, I mean look at the, look at the progress over the past few years. Just been spectacular from Microsoft and you set the table there. Amazon web service is still, you know, thundering away even though earnings came out, the market's kind of soft still. You know, you see the cloud hyperscalers just continuing to differentiate from software to chips. Yep. Across the board. So the hyperscalers kicking ass taking names, doing great Microsoft right up there. What's the future? Cuz you now have the conversation where, okay, we're calling it super cloud, somebody calling multi-cloud, somebody calling it distributed computing, whatever you wanna call it. The old is now new again, it just looks different as cloud becomes now the next computer industry, >>You got an operating system, you got applications, you got hardware, I mean it's all kind of playing out just on a massive global scale, but you got regions, you got all kinds of connected systems edge. What's your vision on how this plays out? Because things are starting to fall into place. Web assembly to me just points to, you know, app servers are coming back, middleware, Kubernetes containers, VMs are gonna still be there. So you got the progression. What's your, what's your take on this? How would you share, share your thoughts to a friend or the industry, the audience? So what's going on? What's, what's happening right now? What's, what's going on? >>Yeah, it's funny because you know, I remember doing this quite a few years ago with you probably in, you know, 2015 and we were talking about, back then we called it hybrid cloud, right? And it was a vision, but it is actually what's going on. It just took longer for it to get here, right? So back then, you know, the big debate was public cloud or private cloud and you know, back when we were, you know, talking about these ideas, you know, we said, well you know, some applications will always stay on-prem and some applications will move to the cloud. I was just talking to a big bank and they basically said, look, our stated objective now is to move everything we can to the public cloud and we still have a large private cloud investment that will never go away. And so now we have essentially this big operating system that can, you know, abstract all of this stuff. So we have developer platforms that can, you know, sit on top of all these different pieces of infrastructure and you know, kind of based on policy decide where these applications are gonna be scheduled. So, you know, the >>Operating schedule shows like an operating system function. >>Exactly. I mean like we now, we used to have schedulers for one CPU or you know, one box, then we had schedulers for, you know, kind of like a whole cluster and now we have schedulers across the world. >>Yeah. My final question before we kind of get run outta time is what's your thoughts on web assembly? Cuz that's getting a lot of hype here again to kind of look at this next evolution again that's lighter weight kind of feels like an app server kind of direction. What's your, what's your, it's hyped up now, what's your take on that? >>Yeah, it's interesting. I mean back, you know, what's, what's old is new again, right? So, you know, I remember back in the late nineties we got really excited about, you know, JVMs and you know, this notion of right once run anywhere and yeah, you know, I would say that web assembly provides a pretty exciting, you know, window into that where you can take the, you know, sandboxing technology from the JavaScript world, from the browser essentially. And you can, you know, compile an application down to web assembly and have it real, really truly portable. So, you know, we see for example, policies in our world, you know, with opa, one of the hottest things is to take these policies and can compile them to web assemblies so you can actually execute them at the edge, you know, wherever it is that you have a web assembly runtime. >>And so, you know, I was just talking to Scott over at Docker and you know, they're excited about kind of bringing Docker packaging, OCI packaging to web assemblies. So we're gonna see a convergence of all these technologies right now. They're kind of each, each of our, each of them are in a silo, but you know, like we'll see a lot of the patterns, like for example, OCI is gonna become the packaging format for web assemblies as it is becoming the packaging format for policies. So we did the same thing. We basically said, you know what, we want these policies to be packaged as OCI assembly so that you can sign them with cosign and bring the entire ecosystem of tools to bear on OCI packages. So convergence is I think what >>We're, and love, I love your attitude too because it's the open source community and the developers who are actually voting on the quote defacto standard. Yes. You know, if it doesn't work, right, know people know about it. Exactly. It's actually a great new production system. >>So great momentum going on to the press released earlier this week, clearly filling the gaps there that, that you and your, your co-founder saw a long time ago. What's next for the assertive business? Are you hiring? What's going on there? >>Yeah, we are really excited about launching commercially at the end of this year. So one of the things that we were, we wanted to do that we had a promise around and we delivered on our promise was open sourcing our edge authorizer. That was a huge thing for us. And we've now completed, you know, pretty much all the big pieces for AER and now it's time to commercially launch launch. We already have customers in production, you know, design partners, and you know, next year is gonna be the year to really drive commercialization. >>All right. We will be watching this space ery. Thank you so much for joining John and me on the keep. Great to have you back on the program. >>Thank you so much. It was a pleasure. >>Our pleasure as well For our guest and John Furrier, I'm Lisa Martin, you're watching The Cube Live. Michelle floor of Con Cloud Native Con 22. This is day three of our coverage. We will be back with more coverage after a short break. See that.

(upbeat music) >> We're back at AWS re:Invent 2021. It's the biggest hybrid event of the year. One of the few physical events and we're psyched to be here. My name is Dave Vellante, and I'm really pleased to bring back the host emeritus, Stu Miniman, somebody I worked with side-by-side, Stu, for 10 years in a setting much like this, many like this. So, good to have you back. >> Dave, it's great to be here with theCUBE team, family here and re:Invent, Dave. I mean, this show, I remember back, Dave, going to you after the first re:Invent we talked, we were like, "We got to be there." Dave, remember the first year we came, the second year of re:Invent, this is the 10th year now, little card tables, gaming companies, all this stuff. You had Jerry Chen on yesterday and Jerry was comparing like, this is going to be like the next Microsoft. And we bet heavy on this ecosystem. And yeah, we all think this cloud thing, it might be real. 20,000 people here, it's not the 50 or 75,000 that we had in like 2018, 2019, but this ecosystem, what's happening in the cloud, multiple versions of hybrid going on with the event and the services, but yeah, phenomenal stuff. And yeah, it's so nice to see people. >> That's for sure. It's something that we've talked about a lot over the years is, and you remember the early days of re:Invent and to this day, just very a strong developer affinity that AWS has done a tremendous job of building that up and it's their raison d'etre, it's how they approach the market. But now you've been at Red Hat for a bit, obviously as well, developer affinity, what have you learned? Specifically as it relates to the cloud, Kubernetes, hottest thing going, you don't want to do an OpenShift commercial, but it's there, you're in the middle of that mix. What have you learned generally? >> Well, Dave, to the comment that you made about developers here, it's developers and the enterprise. We used to have a joke and say, enterprise developer is an oxymoron, but that line between developers doing stuff, early as a cloud, it was stealth computing. It's they're often doing this stuff and central IT is not managing it. So how do the pieces come together? How do apps and infrastructure, how do those pieces come together? And it's something that Red Hat has been doing a long time. Think about the Linux developer. They might've not have been the app developers, the people building Linux and everything, but they had a decent close tie to it. I'm on the OpenShift team. What we do is cloud, Dave, and we've got a partnership here with Amazon. We GAed our native cloud service earlier this year. Andy Jassy helped name it. It is the beautifully named Red Hat OpenShift Service on AWS or ROSA. But we've done OpenShift on AWS for more than five years, basically since we were doing Kubernetes, it's been here because of course customers doing cloud, where are they? A lot of them are here in Amazon. So I've been loving talking to a lot of customers, understanding how enterprise adoption is increasing, how we can enable developers and help them move faster. And yeah, I mean the quick plug on OpenShift is our service. We've got an SRE team that is going to manage all of that. A friend of the program, Corey Quinn, says, "Hey, an SRE team like that, because you don't want to manage as an enterprise." You don't want to manage Kubernetes. Yeah, you need to understand some of the pieces, but what is important to your business is the applications, your data and all those things and managing the undifferentiated heavy lifting. That's one of the reasons you went to the cloud. So therefore changing your model as to how you consume services in the cloud. And what are we seeing with Amazon, Dave? They're trying to build more solutions, simplify deployments, and offer more solutions including with their ecosystem. >> So I want to ask you. You said enterprise developer is kind of an oxymoron, and I remember, years ago I used to hang around with a lot of heads of application development and insurance companies and financial services, pharmaceutical, and they didn't wear hoodies, but they didn't wear suits either. And then when I talked to guys like Jeff Clark, for instance. He talks about we're building an abstraction layer across clouds, blah, blah, blah, which by the way, I think it is the right strategy. I'm like, "Okay, I'll drink some of that Kool-Aid." And then when I come here, we talked to Adam Selipsky. John flew out and I was on the chime. He goes, "Yeah, that's not hybrid. No, this is nothing like, it's not AWS, AWS is cloud." So, square that circle for me, 'cause you're in both worlds and certainly your strategy is to connect those words. Is that cloud? >> Yeah, right. I mean, Dave, we spent years talking about like is private cloud really a cloud? And when we started coming to the show, there is only one cloud. It is the public cloud and Amazon is the paragon of, I don't know what it was. >> Dave: Fake clouds, cloud washing. >> So today, Amazon's putting lots of things into your data center and extending the cloud out to that environment. >> So that's cloud. >> That's cloud. >> What do we call that cloud? What about the reverse? >> What's happening at the edge is that cloud is that extension of what we said from Amazon. If you look at not only Outpost, but Wavelengths and Local Zones and everything else like that. >> Let's say, yes, that's cloud. The APIs, primitives, check. >> Dave, I've always thought cloud is an operating model, not a location. And the hybrid definition is not the old, I did an ebook on this, Dave earlier this year. It's not the decade old NIS definition of an application that spans because I don't get up in the morning as an enterprise and say, "Oh, let me look at the table of how much Google is charging me or Microsoft or Amazon," or wake up one morning and move from one cloud to the other. Portability, follow the sun type stuff, does it ever happen? Yes, but it is rare thing. Applications oftentimes get pulled apart. So we've seen if you talk about AI, training the cloud, then transact and do things at the edge. If I'm in an autonomous vehicle or in a geosynchronous satellite, I can't be going back to the cloud to process stuff. So I get what I need and I process there. The same thing hybrid, oftentimes I will do my transactional activity in the public cloud because I've got unlimited compute capability, but I might have my repository of data for many different reasons, governance or security, all these things in my own data center. So parts of an application might live there, but I don't just span to go between the public cloud in my data center or the edge, it's specific architectural decisions as to how we do this. And by the way the developer, they don't want to have to think about location. I mean, my background, servers, storage, virtualization, all that stuff, that was very much an infrastructure up look of things. Developers want to worry about their code and make sure that it works in production. >> Okay, let me test that. If it's in the AWS cloud and I think it's true for the other hyperscale clouds too, they don't have to think about location, but they still have to think about location on-prem, don't they? >> Well, Dave, even in a public cloud, you do need to worry about sometimes it's like, "Okay, do I split it between availability zones? How do I build that? How do I do that?" So there are things that we build on top of it. So we've seen Amazon. >> I think that's fair, data sovereignty, you have to think about okay. >> Absolutely, a lot of those things. >> Okay, but the experience in Germany is going to be the same as it is in DC, is it not? >> More or less? There are some differences we'll see off and Amazon will roll things out over time and what's available, you've got cloud. >> For sure, though that's definitely true. That's a maturity thing, right? You've talked a bit, but ultimately they all sort of catch up. I guess my question would be is the delta between, let's say, Fed adoption and East Coast, is that delta narrower, significantly narrow than what you might see on-prem? >> The services are the same, sometimes for financial or political things, there might be some slight differences, but yes, the cloud experience should be the same everywhere from Amazon. >> Is it from a standpoint of hybrid, on-prem to cloud, across cloud? >> Many of the things when they go outside of the Amazon data centers are limited or a little bit different or you might have latency considerations that you have to consider. >> Now it's a tug of war. >> So it's not totally seamless because, David Foyer would tell us there, "You're not going to fight physics." There are certain things that we need to have and we've changed the way we architect things because it's no longer the bottleneck of the local scuzzy connection that you have there, it is now (indistinct). >> But the point I'm making is that gets into a tug of war of "Our way is better than your way." And the answer is depends in terms of your workload and the use case. >> You've looked at some of these new databases that span globes and do things of the like. >> Another question, I don't know if you saw the Goldman Sachs deal this morning, Goldman Sachs is basically turning its business into a SaaS and pointing it to their hedge funds and allowing people to access their data, their tools, their software that they built for their own purposes. And now they're outselling it. Similar to what NASDAQ has done. I can't imagine doing that without containers. >> Yeah, so interesting point, I think. At least six years ago now, Amazon launched serverless and serverless was going to take over the world. I dug into the space for a couple of years. And you had the serverless with camp and you had the container camp. Last year at re:Invent, I really felt a shift from Amazon's positioning that many of the abstraction layers and the tools that help you support those environments will now span between Lambda and containers. The container world has been adding serverless functionality. So Amazon does Fargate. The open-source community uses something called Knative, and just breaking this week. Knative was a project that Google started and it looks like that is going to move over to the CNCF. So be part of the whole Kubernetes ecosystem and everything like that. Oracle, VMware, IBM, Red Hat, all heavily involved in Knative, and we're all excited to see that go into the CNCF. So the reason I say that, I've seen from Amazon, I actually, John and I, when we interviewed Andy Jassy back in 2017, I asked him a follow-up question because he said if he was to build AWS in 2017, "I would start with everything underneath it serverless." I would wonder if following up with Adam or Andy today, I'd said, "Would it be all serverless or would containers be a piece of it?" Because sometimes underneath it doesn't matter or sometimes it can be containers and serverless. It's a single unit in Amazon and when they position things, it's now that spectrum of unit, everything from the serverless through the containers, through... James Hamilton wrote a blog post today about running Xen-on-Nitro and they have a migration service for a mainframe. So what do we know? That one of the only things about IT is almost nothing ever goes away. I mean, it sounded like Amazon declared coming soon the end of life of mainframe. My friends over at IBM might not be quite ready to call that era over but we shall see. All these things take time. Everything in IT is additive. I'm happy to see. It is very much usually an end world when I look at the container and Kubernetes space. That is something that you can have a broad spectrum of applications. So some of my more monolithic applications can move over, my cool new data, AI things, I can build on it, microservices in between. And so, it's a broad platform that spans the cloud, the edge, the data center. So that cloud operating model is easier to have consistency all the places that I go. >> Mainframe is in the cloud. Well, we'll see. Big banks by the next site unseen. So I think Amazon will be able to eat away at the edges of that, but I don't think there's going to be a major migration. They claim it. Their big thing is that you can't get COBOL programmers. So I'm like, "Yeah, call DXC, you'll get plenty." Let's talk about something more interesting. (Stu laughs softly) So the last 10 years was a lot of, a lot about IT transformation and there was a lot more room to grow there. I mean, the four big hyperscalers are going to do 120 billion this year. They're growing at 35%. Maybe it's not a trillion, but there's a $500 billion market that they're going after, maybe more. It looks like there's a real move. You saw that with NASDAQ, the Goldman deal, to really drive into business, deeper business integration in addition to IT transformation. So how do you see the next decade of cloud? What should we be watching? >> So, one of the interesting trends, I mean, Dave, for years we covered big data and big data felt very horizontal in it's approach thing. Hadoop take over the world. When I look at AI solutions, when I look at the edge computing technologies that happen, they're very vertically driven. So, our early customers in edge adoption tend to be like telco with the 5G rollout manufacturing in some of their environments. AI, every single industry has a whole set of use cases that they're using that go very deep. So I think cloud computing goes from, we talked about infrastructure as a service to it needs to be more, it is solution, some of these pieces go together. When Adam got up on stage and talked about how many instance types they have on Amazon, Dave, it's got to be 2X or 4X more different instant types than if I went to go to HPE or Dell and buy a physical server for my environment. So we need to have areas and guidance and blueprints and heck, use some of that ML and AI to help drive people to the right solutions because we definitely have the paradox of choice today. So I think you will find some gravity moving towards some of these environments. Gravatar has been really interesting to watch. Obviously that Annapurna acquisition should be down as one of the biggest ones in the cloud era. >> No lack of optionality to your point. So I guess to the point of deeper business integration, that's the big question, will Amazon provide more solution abstractions? They certainly do with Connect. We didn't hear a ton of that this show. >> Interestingly. (Dave speaking indistinctly) So the article that you and John Furrier wrote after meeting with Adam, the thing that caught my eye is discussion of community and ecosystems. And one of the things coming after, some, big communities out there like, you and I lived through the VMware ecosystem in that very tight community. There are forming little areas of community here in this group, but it's not a single cloud community. There are those focus areas that they have. And I do love to see, I mean, obviously working for Red Hat, talking about the ecosystem support. I was very happy to hear Adam mention Red Hat in the keynote as one of the key hybrid partners there. So, for Amazon to get from the 60 million, the 60 billion to the trillion dollar mark down the road, it's going to take a village and we're happy to be a part of it. >> Hey, great to have you back, enjoy the rest of the show. This is, let's see, day three, we're wrapping up. We're here again tomorrow so check it out. Special thanks to obviously AWS is our anchor sponsor and of course, AMD for sponsoring the editorial segments of our event. You're watching theCUBE, the leader in tech coverage. See you tomorrow. (bright upbeat music)

>>Okay. We're here at the cube covering Couchbase connect online 2021 modernized. Now this is Dave Vellante and I'm here with Couchbase CEO, Matt Kane. We just saw them at your keynote, blending out the journey to the modern enterprise. Thanks for taking some time with us. >>Hey, thanks, Dave. Great to see you again. Hope everything's well with you. >>Good. Thank you. You know, hanging in there. So look, the big themes from my standpoint, where it's not just about what I call paving the cow path. What I mean by that is just moving old to new, you know, that's good. And it's gonna allow you to simplify and be more agile. But the point I take away is you should also build a new capabilities, maybe share some of your thoughts and add some color, please, to those takeaways. >>I think that's a great takeaway, Dave. And when we think about this, we step back and we put ourselves in the shoes of our customers and whether it's retail customers or next generation financial services or healthcare providers, or what have you each and every one of our customers around the world are thinking about how to create better experiences for their customers. And Dave, we go through this every day, whether it's on our personal lives or in our professional lives, we expect our technology to help us and create better, highly interactive, personalized experiences via the applications that we leverage throughout the day. And you and I have probably access tens if not, hundreds of applications up to this point, uh, today. And we'll, we'll do that as we continue to go forward. And so if you think about, well, what are the challenges of these enterprises to create those experiences? >>Well, at the end of the day, they're writing applications and those applications need to draw upon massive amounts of data and to provide the experiences that we're talking about today. It's not just structured information, but it's unstructured information. And how do I put that together in a seamless way that I create real-time runtime experiences? Well, at the end of the day software, um, developers can, can write code to do anything, but on the critical path of all that is a database. And if you don't have a database that can serve these applications, you're dead in the water. And so as the enterprise thinks about building applications, they're constantly thinking about new capabilities. How can I provide a recommendation engine for Dave, or how can I ensure that the promotion fits the needs of him and his family when he's booking a particular trip, but at the same time, there's legacy applications that have been built and optimized for many, many years, that that are storing critical information and algorithms that need to be combined with those new capabilities to create the experience of people are after. >>And so when you really look at it from a database perspective, you have to modernize your application stack, but you also have to combine that with new capabilities. Now that's easier said than done. The challenge is to do at a database layer are fundamentally sophisticated and some of the most advanced computer science challenges that exist in all of technology. And that is what Couchbase is about. We have carefully architected a platform that bridges some of the best of relational technology with that of modern, no SQL technology in a single integrated platform that services not only enterprise architects, but application developers to provide the very experiences that you and I have come to expect, and that we're going to expect to increase as, as we go forward. So you're absolutely right. It is about putting those two things together. So is that, >>Is that w what you just described is that what you mean by multimodal two-part question? And then the second part is, are you seeing any industry patterns where that appears to be more relevant? >>So when we, when we talk about multimodal, Dave, we're very specific in, in what that means, and, and that's essentially taking a platform approach to data management. So how do we ensure that we have multiple ways to manage data inside of our platform? Couchbase is a key value cache or a document data store. We support, uh, acid transactions, and we've also added operational analytics. And so if you think about all of those modalities, a lot of application teams would think, well, do I need disparate solutions, uh, you know, to, to solve those problems. We think it's of fundamental importance as the modern database for enterprise applications, that we put that together in a single platform, because that's how applications want to be, uh, developed on top of that. We layer on additional services that developers can take advantage of to right, you know, these really rich, personalized, uh, applications. >>And so, as we think about our path forward and some of the market dynamics, we see one of the dynamics that we think is going to play out over the next few years is enterprises. Can't continue to proliferate point solutions for all these disparate problems that they solve. They need to bet on strategic solutions that are going to be platforms to support many of these needs as these go, as they go forward, particularly as they think about long-term total cost of ownership. And when we think about the modalities we're supporting and the enterprise applications we support, we want to ensure that we are a tool that can be leveraged for the right use cases, and then make sure that we have the connection points to other solutions that were not built and optimize for, to have a complete solution for our enterprise customers. So multi-modal layer consolidation platform approach. We think this is going to be absolutely critical as we get into the next chapters of the database transition. >>Great. Thank you for that. So you just described, you know, your UVP to me anyway, your unique value proposition. And I wonder if you could, in thinking about the market big waves that are occurring now, the hybrid work, digitization, the reliance on cloud and cloud migration, how does your unique value prop tie in if you will vector in to those trends that we also often talk about? >>Yeah. Great question, Dave. I appreciate you raising that. So what, what I was articulating, um, were some really important attributes of what may Couchbase Couchbase that were multimodal. We take a platform approach under the hood. Dave, we take great pride in the architectural approach that we have, um, up to this point in building that platform, uh, we're an in-memory shared nothing scale out cloud native architecture that has been designed for today and the future scale and performance. We've architected our platform to run anywhere. So enterprises enjoy the benefits of running in all major public clouds. They can run in private data centers and they can run all the way out to the edge in a single integrated platform with continuity between any point of that network. Topology, if I'm an active, active, active, fail over active, active, passive, any one of those configurations, that is the dependency of distributed applications. >>And we as users want the application to be up and running with the appropriate amount of data wherever. And whenever we are Couchbase has been built for the highest scale and performance to run in that distributed environment. With those modalities that I talked about now to increase, uh, our relevance in the enterprise. There are two personas that we think about a lot. One of them are the architects who are responsible for ensuring that things run in public clouds, that they scale and perform that they meet the SLS of the businesses they serve. But critically important. As you know, Dave is the role of application developers. They got to write killer apps. And so if you think about the needs of enterprise architects, scale performance, reliability, GDPR, CCPA security, those are really, really important. Developers are focused on flexibility, ease of use agility also really, really important, putting those together in an integrated platform. That's what makes Couchbase Couchbase. And there is no other vendor that can bring those capabilities tied to the themes of data, explosion, everything happening at the edge, a single platform that can leverage structured and unstructured information. When we talk about being ready for this moment and why we're so excited about our future and why you're hearing customers say the amazing things they are at our show, it's because of that unique architecture and, and the fact that Couchbase is truly differentiated as a modern database for enterprise applications for the future. >>You know, sometimes those things are counter poised, right? The architectural Providence, and the need for developer agility. That is a nontrivial challenge. Um, in, in one the computer science challenge that obviously you're focused on your big news here, uh, at the show is Couchbase Capella, Capella, by the way, as the brightest star in the constellation, or I go for those of you space nuts. Well, what are the critical aspects of Capella related to Couchbase's cloud strategy? And what does this announcement mean for your customers, Matt? Yeah, >>We couldn't be more excited about a Capella and I'd like to take a moment to congratulate the teams that have been working so hard at Couchbase to, to get to this moment. Um, also want to thank our customers for all the input, uh, that, that we take very seriously. And in thinking through our innovation, um, is we think about all the things we've talked about up to this point. Those are fundamentally important. And we think about the capability of a database that enterprises need. What we also spend a lot of time thinking about is how do customers consume all of that capability, right? And, and enterprises want freedom of choice on how they consume deploy, run, and manage their database for a lot of our customers, they're very happy leveraging our platform and managing that. And they're very diverse, very customized, specific environments, but there are a lot of customers that want us to take over the management and the operation of the database. >>They want the fastest path to D developer, agility and productivity, uh, and they want the best TCO relative to other databases of service offerings. And that is exactly what we have provided with Couchbase Capella. So customers can now come to us, they're up and running with the best database in the industry. Self-serve easy to use up and going, you know, the, the, the most simple experience and the fastest path to value, but that TCO point is fundamentally important. And what's interesting the way we've architected this, the more you scale with Couchbase Capella, the better the TCO gets. And I think that demonstrates our focus on enterprise, the mission critical nature of, of the applications that we support. Um, but you know, we're, we're really excited about Capella. We think it's going to be a great experience for our existing customers, our new customers, um, along with the announcement of the product today, you've heard some things about some of the packaging and ways in which developers can try out the solution in a really unique and cool way. We're providing other great experiences for developers on technical integrations and ideas from other customers on how to take advantage of the Couchbase platform. So we're thinking pretty holistically about consumption, uh, experience. Uh, and again, the fact that it's built on a kind of the foundation of, of Couchbase server seven oh, and, and our, our core platform with all the advantages that that brings with it. Uh, we're, we're pretty excited about the, uh, the announcement and all that that has for, for the company in front of us. So let's on >>For a minute and I want to double click on the, how you see the uniqueness of Capella. So when I think about Couchbase's heritage, the idea of next-generation not, not only SQL database, the acid properties that you talked about, the scale and the performance required for mission critical workloads and your focus on sequel fluency, these tenants of differentiated Couchbase, is it sort of the same kind of approach for Capella and what specifically differentiates Capella in your mind from the spate of other database databases, a service offerings that are out there in the marketplace? >>Well, look at it. When, when enterprises are thinking about applications, particularly the applications that they're running their business on, I like to say the good enough is not a viable strategy for the database. And what that means is you've got to have high performance, you've got to have scale, you've got to have, you know, distributed, uh, attributes. We believe fundamentally that you need to go cloud to edge. Um, that's going to be paramount and we're going to continue to innovate on our core database. So to take all of that power and then put it in a consumption model, as easy as Capella, I mean, Dave, we now have people being able to get up and running in a matter of minutes and, and they're writing applications, uh, on Capella leveraging the full power and breadth of all the capabilities, uh, in, in Couchbase. And going back to something that we talked about earlier dynamics in, in the industry will enterprise is really need to think about total cost of ownership. >>So how am I innovating and solving some of my most fundamental application challenges, but mindful of, you know, the cost and the return of that over time for us to come out with the highest performing database at the lowest TCO for those applications. I mean that that's pretty radical innovation and, and pretty true differentiation that our enterprise and other customer segments are really looking forward to. And then you layer in the fact that we're doing all of this in the de facto language that everybody in the world, the database speaks, which is cul you know, we like to say, it's easy SQL you get up and running, you're going, we speak your dialect. And we give you all of the benefits of this modern platform that are gonna make your job easier. Uh, you know, I think there's a reason why it's the brightest star in, uh, in, in the hemisphere. >>You know, it's funny, you, you, you, you used to talk about your, your S your SQL prowess. And, and that was that, that was the epiphany to me in the early days of big data. It was like the killer app for big data was SQL. And that changed. Everybody's thinking, let's talk about what's next for Couchbase you're a public company now, what are your priorities? How are you spending your time met? >>Well, look, Dave, we're, we're, uh, we're, we're gonna main remain maniacally focused on ensuring that we continue to innovate and solve the biggest problems, the biggest database challenges for enterprise customers. Um, we believe deeply in architecting differentiation that can be sustained over time. Uh, we've done that up to this point and we're going to remain steadfast in that mission. Uh, at the same time, we are entirely focused on satisfying our customers and, uh, demonstrating that we're a business partner, not just, just a vendor. So, you know, building partnerships, making sure we have the appropriate technical integration, supporting customers on their digital transformation strategies, continuing to invest in those capabilities to support customer journeys and make sure they're successful through that through their transformation. I mean, we're investing across all aspects of the business, across all aspects of the world. Uh, we're going to continue to be extremely proud of not just what we do, but how we do it. >>We are a values based organization. We have an incredible world-class team that we continue to grow on on a daily basis. And I'm going to make sure that we're spending time on each one of those and those things are in harmony. So we can continue to build a very vibrant, uh, company that's going to be around for a long, long time and continue to do great things for our customers. When we think about next generation technology, we are in the early innings of what we believe to be truly a generational market transition and the demands of applications and all things digital and combining, you know, technology that goes truly out to the edge and redefining what the edge is even, uh, and, and really thinking through how a platform needs to go, where the data resides to provide people, the experience and machines, the experiences that they need, uh, to, uh, complete their mission of digital transformation. Uh, there's some really mind-bending stuff that we're thinking through as we get, as we get way out there. Uh, but we're gonna continue to do it through the lens of solving big customer problems, making sure they're successful and then continuing to innovate as we go forward. >>Well, we're really excited to follow you guys report on this. And the database is no longer just kind of a bespoke bucket. It's a fundamental component of, of a digital fabric that's growing and becoming ubiquitous as part of a new data era. So we want to thank everybody for watching this keynote summary with Matt Kane, CEO of Couchbase Matt. We wish you all the best in the years ahead, and we look forward to seeing you in person, hopefully in the near future. >>Thanks a lot. See you soon, Dave. Appreciate >>It. All right. Thank you for watching our coverage at Couchbase connect 2021 modernized. Now keep it right there for more coverage that educates and inspires. You're watching the cube.

>>Welcome back to the cubes coverage of Couchbase connect online, where the theme of the event is, or is modernized now. Yes, let's talk about that. And with me is Ravi, who's the senior vice president of engineering and the CTO at Couchbase Ravi. Welcome. Great to see you. >>Thank you so much. I'm so glad to be here with you. >>I asked you what the new requirements are around modern applications. I've seen some, you know, some of your comments, you gotta be flexible, distributed, multimodal, mobile edge. It, that those are all the very cool sort of buzz words, smart applications. What does that all mean? And how do you put that into a product and make it real? >>Yeah, I think what has basically happened is that, uh, so far, uh, it's been a transition of sorts. And now we are come to a point where, uh, the tipping point and the tipping point has been, uh, uh, more because of COVID and there COVID has pushed us to a world where we are living, uh, in a sort of, uh, occasionally connected manner where our digital, uh, interactions, precede our physical interactions in one sense. So it's a world where we do a lot more stuff that's less than, uh, in a digital manner, as opposed to sort of making a more specific human contact that has really been the, uh, sort of accelerant to this modernized. Now, as a team in this process, what has happened is that so far all the databases and all the data infrastructure that we have built historically, are all very centralized. >>They're all sitting behind. Uh, they used to be in mainframes from where they came to like your own data centers, where we used to run hundreds of servers to where they're going now, which is the computing marvelous change to consumption-based computing, which is all cloud oriented now. And so, uh, but they are all centralized still. Uh, but where our engagement happens with the data is, uh, at the edge, uh, at your point of convenience at your point of consumption, not where the data is actually sitting. So this has led to, uh, you know, all those buzzwords, as you said, which is like, oh, well we need a distributed data infrastructure, where is the edge? Uh, but it just basically comes down to the fact that the data needs to be where you are engaging with it. And that means if you are doing it on your mobile phone, or if you are sitting, uh, doing something in your body or traveling, or whether you are in a subway, whether you're in a plane or a ship, wherever the data needs to come to you, uh, and be available as opposed to every time you going to the data, which is centrally sitting in some place. >>And that is the fundamental shift in terms of how the modern architecture needs to think, uh, when they, when it comes to digital transformation and, uh, transitioning their old applications to, uh, the, the modern infrastructure, because that's, what's going to define your customer experiences and your personalized experiences. Uh, otherwise people are basically waiting for that circle of death that we all know, uh, and blaming the networks and other pieces. The problem is actually, the data is not where you are engaging with. It has got to be fetched, you know, seven seas away. Um, and that is the problem that we are basically solving in this modern modernization of that data, data infrastructure. >>I love this conversation and I love the fact that there's a technical person that can kind of educate us on, on this, because date data by its very nature is distributed. It's always been distributed, but w w but distributed database has always been incredibly challenging, whether it was a global SIS Plex or an eventual consistency of getting recovery for a distributed architecture has been extremely difficult. You know, I hate that this is a terrible term, lots of ways to skin a cat, but, but you've been the visionary behind this notion of optionality, how to solve technical problems in different ways. So how do you solve that, that problem of, of, of, uh, of, uh, of a super rock solid database that can handle, you know, distributed data? Yes. >>So there are two issues that you're a little too over there with Forrest is the optionality piece of it, which is that same data that you have that requires different types of processing on it. It's almost like fractional distillation. It is, uh, like your crude flowing through the system. You start all over from petrol and you can end up with Vaseline and rayon on the other end, but the raw material, that's our data in one sense. So far, we never treated the data that way. That's part of the problem. It has always been very purpose built and cast first problem. And so you just basically have to recast it every time we want to look at the data. The first thing that we have done is make data that fluid. So when you're actually, uh, when you have the data, you can first look at it to perform. >>Let's say a simple operation that we call as a key value store operation. Given my ID, give him a password kind of scenarios, which is like, you know, there are customers of ours who have billions of user IDs in their management. So things get slower. How do you make it fast and easily available? Log-in should not take more than five minutes. Again, this is a, there's a class of problem that we solve that same data. Now, eventually, without you ever having to, uh, sort of do a casting it to a different database, you can now do a solid, uh, acquire. These are classic sequel queries, which is our next magic. We are a no SQL database, but we have a full functional sequel. The sequel has been the language that has talked to data for 40 odd years successfully. Every other database has come and try to implement their own QL query language, but they've all failed only sequel as which stood the test of time of 40 odd years. >>Why? Because there's a solid mathematics behind it. It's called a relational calculus. And what that helps you is, is, uh, basically, uh, look at the data and any common tutorial, uh, any, uh, any which way you look at the data. All it will come, uh, the data in a format that you can consume. That's the guarantee sort of gives you in one sense. And because of that, you can now do some really complex in the database signs, what we call us, predicate logic on top of that. And that gives you the ability to do the classic relational type queries, select star from where Canada stuff, because it's at an English level, it becomes easy to, so the same data, you didn't have to go move it to another database, do your, uh, sort of transformation of the data and all this stuff. Same day that you do this. >>Now, that's where the optionality comes in. Now you can do another piece of logic on top of this, which we call search. This is built on this concept of inverted index and TF IDF, the classic Google in a very simple terms, but Google tokenized search, you can do that in the same data without you ever having to move the data to a different format. And then on top of it, they can do what is known as a eventing or your own custom logic, which we all which we do on a, on programming language called Java script. And finally analytics and analytics is the ability to query the operational data in a different way. I'll talk budding. What was my sales of this widget year over year on December 1st week, that's a very complex question to ask, and it takes a lot of different types of processing. >>So these are different types of that's optionality with different types of processing on the same data without you having to go to five different systems without you having to recast the data in five different ways and find different application logic. So you put them in one place. Now is your second question. Now this has got to be distributed and made available in multiple cloud in your data center, all the way to the edge, which is the operational side of the, uh, the database management system. And that's where the distributed, uh, platform that we have built enables us to get it to where you need the data to be, you know, in a classic way, we call it CDN in the data as in like content delivery networks. So far do static, uh, uh, sort of moving of static content to the edges. Now we can actually dynamically move the data. Now imagine the richness of applications you can develop. >>The first part of the, the answer to my question, are you saying you could do this without skiing with a no schema on, right? And then you can apply those techniques. >>Uh, fantastic question. Yes. That's the brilliance of this database is that so far classically databases have always demanded that you first define a schema before you can write a single byte of data. Couchbase is one of the rare databases. I, for one don't know any other one, but there could be, let's give the benefit of doubt. It's a database which writes data first and then late binds to schema as we call it. It's a schema on read things. So because there is no schema, it is just a on document that is sitting inside. And Jason is the lingua franca of the web, as you very well know by now. So it just Jason that we manage, you can do key lookups of the Jason. You can do full credit capability, like a classic relational database. We even have cost-based optimizers and the other sophisticated pieces of technology behind it. >>You can do searching on it, using the, um, the full textual analysis pipeline. You can do ad hoc wedding on the analytic side, and you can write your own custom logic on it using our eventing capabilities. So that's, that's what it allows because we keep the data in the native form of Jason. It's not a data structure or a data schema imposed by a database. It is how the data is produced. And on top of it, we bring different types of logic, five different types of it's like the philosophy is bringing logic to data as opposed to moving data to logic. This is what we have been doing, uh, in the last 40 years because we developed various, uh, database systems and data processing systems of various points. In time in our history, we had key value stores. We had relational systems, we had search systems, we had analytical systems. >>We had queuing systems, all the systems, if you want to use any one of them, our answer has always been, just move the data to that system. Versus we are saying that do not move the data as we get bigger and bigger and data just moving this data is going to be a humongous problem. If you're going to be moving petabytes of data for this is not one to fly instead, bring the logic to the data. So you can now apply different types of logic to the data. I think that's what, in one sense, the optionality piece of this, >>As you know, there's plenty of schema-less data stores. They're just, they're called data swamps. I mean, that's what they, that's what they became, right? I mean, so this is some, some interesting magic that you're applying here. >>Yes. I mean, the one problem with the data swamps as you call them is that that was a little too open-ended because the data format itself could change. And then you do your, then everything became like a game data casting because it required you to have it in seven schema in one sense at the end of the day, for certain types of processing. So in that where a lot of gaps it's probably flooded, but it not really, uh, how do you say, um, keep to the promise that it actually meant to be? So that's why it was a swamp I need, because it was fundamentally not managing the data. The data was sitting in some file system, and then you are doing something, this is a classic database where the data is managed and you create indexes to manage it, and you create different types of indexes to manage it. You distribute the index, you distribute the data you have, um, like we were discussing, you have acid semantics on top of, and when you, when you put all these things together, uh, it's, it's, it's a tough proposition, but they have solved some really tough problems, which are good computer science stuff, computer science problems that we have to solve to bring this, to bring this, to bear, to bring this to the market. >>So you predicted the trend around multimodal and converged, uh, databases. Um, you kind of led Couchbase through that. I want to, I always ask this question because it's clearly a trend in the industry and it, it definitely makes sense from a simplification standpoint. And, and, and so that I don't have to keep switching databases or the flip side of that though, Ravi. And I wonder if you could give me your opinion on this is kind of the right tool for the right job. So I often say isn't that the Swiss army knife approach, we have a little teeny scissors and a knife. That's not that sharp. How do you respond to that? Uh, >>A great one. Um, my answer is always, I use another analogy to tackle that, but is that, have you ever accused a smartphone of being a Swiss army knife? No. No. Nobody does that because it's actually 40 functions in one is what a smartphone becomes. You never call your iPhone or your Android phone, a Swiss army knife, because here's the reason is that you can use that same device in the full capacity. That's what optionality is. It's not, I'm not, it's not like your good old one where there's a keyboard hiding half the screen, and you can do everything only through the keyboard without touching and stuff like that. That's not the whole devices available to you to do one type of processing when you want it. When you're done with that, it can do another completely different types of processing. Like as in a moment, it could be a Tom, Tom telling you all the directions, the next one, it's your PDA. >>Third one, it's a fantastic phone. Uh, four, it's a beautiful camera, which can do your f-stop management and give you a nice SLR quality picture. Right? So next moment is a video camera. People are shooting movies with this thing in Hollywood, these days for God's sake. So it gives you the full power of what you want to do when you want it. And now, if you just taught that iPhone is a great device or any smartphone is a great device, because you can do five things in one or 50 things in one, and at a certain level, they missed the point because what that device really enabled is not just these five things in one place. It becomes easy to consume and easy to operate. It actually started the app is the economy. That's the brilliance of bringing so many things in one place, because in the morning, you know, I get the alert saying that today you got to leave home at eight 15 for your nine o'clock meeting. >>And the next day it might actually say 8 45 is good enough because it knows where the phone is sitting. The geo position of it. It knows from my calendar where the meeting is actually happening. It can do a traffic calculation because it's got my map and all of the routes. And then it's gone there's notification system, which eventually pops up on my phone to say, Hey, you got to leave at this time. Now five different systems have to come together and they can because the data is in one place without that, you couldn't even do this simple function, uh, in a, in a sort of predictable manner in a, in a, in a manner that's useful to you. So I believe a database which gives you this optionality of doing multiple data processing on the same set of data allows you will allow you to build a class of products, which you are so far been able to struggling to build, because half the time you're running sideline to sideline, just, you know, um, integrating data from one system to the other. >>So I love the analogy with the smartphone. I w I want to, I want to continue it and double click on it. So I use this camera. I used to, you know, my kid had a game. I would bring the, the, the big camera, the 35 millimeter. So I don't use that anymore no way, but my wife does, she still uses the DSLR. So is, is there a similar analogy here? That those, and by the way, the camera, the camera shop in my town went out of business, you know? And so, so, but, but is there, is that a fair, where, in other words, those specialized databases, they say there still is a place for them, but they're getting >>Absolutely, absolutely great analogy and a great extension to the question. That's, that's the contrarian side of it in one sense is that, Hey, if everything can just be done in one, do you have a need for the other things? I mean, you gave a camera example where it is sort of, it's a, it's a slippery slope. Let me give you another one, which is actually less straight to the point better. I've been just because my, I, I listened to half of the music on the iPhone. Doesn't stop me from having my full digital receiver. And, you know, my Harman Kardon speakers at home because they haven't, they produce a kind of sounded immersive experience. This teeny little speaker has never in its lifetime intended to produce, right? It's the convenience. Yes. It's the convenience of convergence that I can put my earphones on and listen to all the great music. >>Yes, it's 90% there or 80% there. It depends on your audio file mess of your, uh, I mean, you don't experience the super specialized ones do not go away. You know, there are, there are places where, uh, the specialized use cases will demand a separate system to exist, but even there that has got to be very closed. Um, how do you say close, binding or late binding? I should be able to stream that song from my phone to that receiver so I can get it from those speakers. You can say that, oh, there's a digital divide between these two things done, and I can only play CDs on that one. That's not how it's going to work going forward. It's going to be, this is the connected world, right? As in, if I'm listening to the song in my car and then step off the car and walk into my living room, that's same songs should continue and play in my living room speakers. Then it's a world because it knows my preference and what I'm doing that all happened only because of this data flowing between all these systems. >>I love, I love that example too. When I was a kid, we used to go to Twitter, et cetera. And we'd to play around with, we take off the big four foot speakers. Those stores are out of business too. Absolutely. Um, now we just plug into Sonos. So that is the debate between relational and non-relational databases over Ravi. >>I believe so. Uh, because I think, uh, what had happened was the relational systems. Uh, I've been where the norm, they rule the roost, if you will, for the last 40 odd years, and then gain this no sequel movement, which was almost as though a rebellion from the relational world, we all inhibited, uh, uh, because we, it was very restrictive. It, it had the schema definition and the schema evolution as we call it, all those things, they were like, they required a committee, they required your DBA and your data architect. And you have to call them just to add one column and stuff like that. And the world had moved on. This was the world of blogs and tweets and, uh, you know, um, mashups and, um, uh, uh, a different generation of digital behavior, digital, native people now, um, who are operating in these and the, the applications, the, the consumer facing applications. >>We are living in this world. And yet the enterprise ones were still living in the, um, in the other, the other side of the divide. So all came this solution to say that we don't need SQL. Actually, the problem was never sequel. No sequel was, you know, best approximation, good marketing name, but from a technologist perspective, the problem was never the query language, no SQL was not the problem, the schema limitations, and the inability for these, the system to scale, the relational systems were built like, uh, airplanes, which is that if, uh, San Francisco Boston, there is a flight route, it's so popular that if you want to add 50 more seats to it, the only way you can do that is to go back to Boeing and ask them to get you a set in from 7 3 7 2 7 7 7, or whatever it is. And they'll stick you with a billion dollar bill on the alarm to somehow pay that by, you know, either flying more people or raising the rates or whatever you have to do. >>These are called vertically scaling systems. So relational systems are vertically scaling. They are expensive. Versus what we have done in this modern world, uh, is make the system how it is only scaling, which is more like the same thing. If it's a train that is going from San Francisco to Boston, you need 50 more people be my guests. I'll add one more coach to it, one more car to it. And the better part of the way we have done this year is that, and we have super specialized on that. This route actually requires three, three dining cars and only 10 sort of sleeper cars or whatever. Then just pick those and attach the next route. You can choose to have ID only one dining car. That's good enough. So the way you scale the plane is also can be customized based on the route along the route, more, more dining capabilities, shorter route, not an abandoned capability. >>You can attach the kind of coaches we call this multi-dimensional scaling. Not only do we scale horizontally, we can scale to different types of workloads by adding different types of coaches to it quite. So that's the beauty of this architecture. Now, why is that important? Is that where we land eventually is the ability to do operational and analytical in the same place. This is another thing which doesn't happen in the past, because you would say that I cannot run this analytical Barre because then my operational workload will suffer. Then my friend, then we'll slow down millions of customers that impacted that problem. We will solve the same data in which you can do analytical buddy, an operational query because they're separated by these cars, right? As in like we, we fence the, the, the resources, so that one doesn't impede the other. So you can, at the same time, have a microsecond 10 million ops per second, happening of a key value or equity. >>And then yet you can run this analytical body, which will take a couple of minutes to run one, not impeding the other. So that's in one sense, sort of the, part of the, um, uh, problems that we have solved here is that relational versus, uh, uh, the no SQL portion of it. These are the kinds of problems we have to solve. We solve those. And then we yet put back the same quality language on top. Y it's like Tesla in one sense, right underneath the surface is where all the stuff that had to be changed had to change, which is like the gasoline, uh, the internal combustion engine, uh, I think gas, uh, you says, these are the issues we really wanted to solve. Um, so solve that, change the engine out, you don't need to change the steering wheel or the gas pedal or the, you know, the battle shifters or whatever else you need, or that are for your shifters. >>Those need to remain in the same place. Otherwise people won't buy it. Otherwise it does not even look like a car to people. So, uh, even when you feed people the most advanced technology, it's got to be accessible to them in the manner that people can consume. Only in software, we forget this first design principle, and we go and say that, well, I got a car here, you got the blue harder to go fast and lean back for, for it to, you know, uh, to apply a break that's, that's how we seem to define, uh, design software. Instead, we should be designing them in a manner that it is easiest for our audience, which is developers to consume. And they've been using SQL for 40 years or 30 years. And so we give them the steering wheel on the, uh, and the gas bottle and the, um, and the gear shifter is by putting cul back on underneath the surface, we have completely solved, uh, the relational, uh, uh, limitations of schema, as well as scalability. >>So in, in, in that way, and by bringing back the classic acid capabilities, which is what relational systems, uh, we accounted on and being able to do that with the sequel programming language, we call it like multi-state SQL transaction. So to say, which is what a classic way all the enterprise software was built by putting that back. Now, I can say that that debate between relational and non-relational is over because this has truly extended the database to solve the problems that the relational systems had to grow up the salt in the modern times, but rather than get, um, sort of pedantic about whether it's, we have no SQL or sequel or new sequel, or, uh, you know, any of that sort of, uh, jargon, oriented debate, uh, this, these are the debates of computer science that they are actually, uh, and they were the solve and they have solved them with, uh, the latest release of $7, which we released a few months ago. >>Right, right. Last July, Ravi, we got to leave it there. I, I love the examples and the analogies. I can't wait to be face to face with you. I want to hang with you at the cocktail party because I've learned so much and really appreciate your time. Thanks for coming to the cube. >>Fantastic. Thanks for the time. And the Aboriginal Dan was, I mean, very insightful questions really appreciate it. Thank you. >>Okay. This is Dave Volante. We're covering Couchbase connect online, keep it right there for more great content on the cube.

>>from around the globe. It's the Cube presenting enterprise. Digital resilience on hybrid and multi cloud Brought to You by Iota Ho. Hello, everyone, and welcome to our continuing Siri's covering data automation brought to you by Io Tahoe. Today we're gonna look at how to ensure enterprise resilience for hybrid and multi cloud. Let's welcome in age. Eva Hora, who is the CEO of Iota A J. Always good to see you again. Thanks for coming on. >>Great to be back. David Pleasure. >>And he's joined by Fozzy Coons, who is a global principal architect for financial services. The vertical of financial services. That red hat. He's got deep experiences in that sector. Welcome, Fozzie. Good to see you. >>Thank you very much. Happy to be here. >>Fancy. Let's start with you. Look, there are a lot of views on cloud and what it is. I wonder if you could explain to us how you think about what is a hybrid cloud and and how it works. >>Sure, yes. So the hybrid cloud is a 90 architecture that incorporates some degree off workload, possibility, orchestration and management across multiple clouds. Those clouds could be private cloud or public cloud or even your own data centers. And how does it all work? It's all about secure interconnectivity and on demand. Allocation of resources across clouds and separate clouds can become hydrate when they're similarly >>interconnected. And >>it is that interconnectivity that allows the workloads workers to be moved and how management can be unified in off the street. You can work and how well you have. These interconnections has a direct impact on how well your hybrid cloud will work. >>Okay, so we'll fancy staying with you for a minute. So in the early days of Cloud that turned private Cloud was thrown a lot around a lot, but often just meant virtualization of an on PREM system and a network connection to the public cloud. Let's bring it forward. What, in your view, does a modern hybrid cloud architecture look like? >>Sure. So for modern public clouds, we see that, um, teams organizations need to focus on the portability off applications across clouds. That's very important, right? And when organizations build applications, they need to build and deploy these applications as small collections off independently, loosely coupled services, and then have those things run on the same operating system which means, in other words, running it on Lenox everywhere and building cloud native applications and being able to manage and orchestrate thes applications with platforms like KUBERNETES or read it open shit, for example. >>Okay, so that Z, that's definitely different from building a monolithic application that's fossilized and and doesn't move. So what are the challenges for customers, you know, to get to that modern cloud? Aziz, you've just described it. Is it skill sets? Is that the ability to leverage things like containers? What's your view there? >>So, I mean, from what we've seen around around the industry, especially around financial services, where I spent most of my time, we see that the first thing that we see is management right now because you have all these clouds and all these applications, you have a massive array off connections off interconnections. You also have massive array off integrations, possibility and resource allocations as well, and then orchestrating all those different moving pieces. Things like storage networks and things like those are really difficult to manage, right? That's one. What s O Management is the first challenge. The second one is workload, placement, placement. Where do you place this? How do you place this cloud? Native applications. Do you or do you keep on site on Prem? And what do you put in the cloud? That is the the the other challenge. The major one. The third one is security. Security now becomes the key challenge and concern for most customers. And we could talk about how hundreds? Yeah, >>we're definitely gonna dig into that. Let's bring a J into the conversation. A J. You know, you and I have talked about this in the past. One of the big problems that virtually every companies face is data fragmentation. Um, talk a little bit about how I owe Tahoe unifies data across both traditional systems legacy systems. And it connects to these modern I t environments. >>Yeah, sure, Dave. I mean, fancy just nailed it. There used to be about data of the volume of data on the different types of data. But as applications become or connected and interconnected at the location of that data really matters how we serve that data up to those those app. So working with red hat in our partnership with Red Hat being able Thio, inject our data Discovery machine learning into these multiple different locations. Would it be in AWS on IBM Cloud or A D. C p R. On Prem being able thio Automate that discovery? I'm pulling that. That single view of where is all my data then allows the CEO to manage cast that can do things like one. I keep the data where it is on premise or in my Oracle Cloud or in my IBM cloud on Connect. The application that needs to feed off that data on the way in which you do that is machine learning. That learns over time is it recognizes different types of data, applies policies to declassify that data. Andi and brings it all together with automation. >>Right? And that's one of the big themes and we've talked about this on earlier episodes. Is really simplification really abstracting a lot of that heavy lifting away so we can focus on things A. J A. Z. You just mentioned e nifaz e. One of the big challenges that, of course, we all talk about his governance across thes disparity data sets. I'm curious as your thoughts. How does Red Hat really think about helping customers adhere to corporate edicts and compliance regulations, which, of course, are are particularly acute within financial services. >>Oh, yeah, Yes. So for banks and the payment providers, like you've just mentioned their insurers and many other financial services firms, Um, you know, they have to adhere Thio standards such as a PC. I. D. S s in Europe. You've got the G g d p g d p r, which requires strange and tracking, reporting documentation. And you know, for them to to remain in compliance and the way we recommend our customers to address these challenges is by having an automation strategy. Right. And that type of strategy can help you to improve the security on compliance off the organization and reduce the risk after the business. Right. And we help organizations build security and compliance from the start without consulting services residencies. We also offer courses that help customers to understand how to address some of these challenges. And that's also we help organizations build security into their applications without open sources. Mueller, where, um, middle offerings and even using a platform like open shift because it allows you to run legacy applications and also continue rights applications in a unified platform right And also that provides you with, you know, with the automation and the truly that you need to continuously monitor, manage and automate the systems for security and compliance >>purposes. Hey, >>Jay, anything. Any color you could add to this conversation? >>Yeah, I'm pleased. Badly brought up Open shift. I mean, we're using open shift to be able. Thio, take that security application of controls to to the data level. It's all about context. So, understanding what data is there being able to assess it to say who should have access to it. Which application permission should be applied to it. Um, that za great combination of Red Hat tonight. Tahoe. >>But what about multi Cloud? Doesn't that complicate the situation even even further? Maybe you could talk about some of the best practices to apply automation across not only hybrid cloud, but multi >>cloud a swell. Yeah, sure. >>Yeah. So the right automation solution, you know, can be the difference between, you know, cultivating an automated enterprise or automation caress. And some of the recommendations we give our clients is to look for an automation platform that can offer the first thing is complete support. So that means have an automation solution that provides that provides, um, you know, promotes I t availability and reliability with your platform so that you can provide, you know, enterprise great support, including security and testing, integration and clear roadmaps. The second thing is vendor interoperability interoperability in that you are going to be integrating multiple clouds. So you're going to need a solution that can connect to multiple clouds. Simples lee, right? And with that comes the challenge off maintain ability. So you you you're going to need to look into a automation Ah, solution that that is easy to learn or has an easy learning curve. And then the fourth idea that we tell our customers is scalability in the in the hybrid cloud space scale is >>is >>a big, big deal here, and you need a to deploy an automation solution that can span across the whole enterprise in a constituent, consistent manner, right? And then also, that allows you finally to, uh, integrate the multiple data centers that you have, >>So A J I mean, this is a complicated situation, for if a customer has toe, make sure things work on AWS or azure or Google. Uh, they're gonna spend all their time doing that, huh? What can you add really? To simplify that that multi cloud and hybrid cloud equation? >>Yeah. I could give a few customer examples here Warming a manufacturer that we've worked with to drive that simplification Onda riel bonuses for them is has been a reduction cost. We worked with them late last year to bring the cost bend down by $10 million in 2021 so they could hit that reduced budget. Andre, What we brought to that was the ability thio deploy using open shift templates into their different environments. Where there is on premise on bond or in as you mentioned, a W s. They had G cps well, for their marketing team on a cross, those different platforms being out Thio use a template, use pre built scripts to get up and running in catalog and discover that data within minutes. It takes away the legacy of having teams of people having Thio to jump on workshop cause and I know we're all on a lot of teens. The zoom cause, um, in these current times, they just sent me is in in of hours in the day Thio manually perform all of this. So yeah, working with red hat applying machine learning into those templates those little recipes that we can put that automation toe work, regardless of which location the data is in allows us thio pull that unified view together. Right? >>Thank you, Fozzie. I wanna come back to you. So the early days of cloud, you're in the big apple, you know, financial services. Really well. Cloud was like an evil word within financial services, and obviously that's changed. It's evolved. We talked about the pandemic, has even accelerated that, Um And when you really, you know, dug into it when you talk to customers about their experiences with security in the cloud it was it was not that it wasn't good. It was great, whatever. But it was different. And there's always this issue of skill, lack of skills and multiple tools suck up teams, they're really overburdened. But in the cloud requires new thinking. You've got the shared responsibility model you've got obviously have specific corporate requirements and compliance. So this is even more complicated when you introduce multiple clouds. So what are the differences that you can share from your experience is running on a sort of either on Prem or on a mono cloud, um, or, you know, and versus across clouds. What? What? What do you suggest there? >>Yeah, you know, because of these complexities that you have explained here, Miss Configurations and the inadequate change control the top security threats. So human error is what we want to avoid because is, you know, as your clouds grow with complexity and you put humans in the mix, then the rate off eras is going to increase, and that is going to exposure to security threat. So this is where automation comes in because automation will streamline and increase the consistency off your infrastructure management. Also application development and even security operations to improve in your protection, compliance and change control. So you want to consistently configure resources according to a pre approved um, you know, pre approved policies and you want to proactively maintain a to them in a repeatable fashion over the whole life cycle. And then you also want to rapid the identified system that require patches and and reconfiguration and automate that process off patching and reconfiguring so that you don't have humans doing this type of thing, right? And you want to be able to easily apply patches and change assistant settings. According Thio, Pre defined, based on like explained before, you know, with the pre approved policies and also you want is off auditing and troubleshooting, right? And from a rate of perspective, we provide tools that enable you to do this. We have, for example, a tool called danceable that enables you to automate data center operations and security and also deployment of applications and also obvious shit yourself, you know, automates most of these things and obstruct the human beings from putting their fingers on, causing, uh, potentially introducing errors right now in looking into the new world off multiple clouds and so forth. The difference is that we're seeing here between running a single cloud or on prem is three main areas which is control security and compliance. Right control here it means if your on premise or you have one cloud, um, you know, in most cases you have control over your data and your applications, especially if you're on Prem. However, if you're in the public cloud, there is a difference there. The ownership, it is still yours. But your resources are running on somebody else's or the public clouds. You know, e w s and so forth infrastructure. So people that are going to do this need to really especially banks and governments need to be aware off the regulatory constraints off running, uh, those applications in the public cloud. And we also help customers regionalize some of these choices and also on security. You will see that if you're running on premises or in a single cloud, you have more control, especially if you're on Prem. You can control this sensitive information that you have, however, in the cloud. That's a different situation, especially from personal information of employees and things like that. You need to be really careful off that. And also again, we help you rationalize some of those choices. And then the last one is compliant. Aziz. Well, you see that if you're running on Prem or a single cloud, um, regulations come into play again, right? And if you're running a problem, you have control over that. You can document everything you have access to everything that you need. But if you're gonna go to the public cloud again, you need to think about that. We have automation, and we have standards that can help you, uh, you know, address some of these challenges for security and compliance. >>So that's really strong insights, Potsie. I mean, first of all, answerable has a lot of market momentum. Red hats in a really good job with that acquisition, your point about repeatability is critical because you can't scale otherwise. And then that idea you're you're putting forth about control, security compliance It's so true is I called it the shared responsibility model. And there was a lot of misunderstanding in the early days of cloud. I mean, yeah, maybe a W s is gonna physically secure the, you know, s three, but in the bucket. But we saw so many Miss configurations early on. And so it's key to have partners that really understand this stuff and can share the experiences of other clients. So this all sounds great. A j. You're sharp, you know, financial background. What about the economics? >>You >>know, our survey data shows that security it's at the top of the spending priority list, but budgets are stretched thin. E especially when you think about the work from home pivot and and all the areas that they had toe the holes that they had to fill their, whether it was laptops, you know, new security models, etcetera. So how do organizations pay for this? What's the business case look like in terms of maybe reducing infrastructure costs so I could, you know, pay it forward or there's a There's a risk reduction angle. What can you share >>their? Yeah. I mean, the perspective I'd like to give here is, um, not being multi cloud is multi copies of an application or data. When I think about 20 years, a lot of the work in financial services I was looking at with managing copies of data that we're feeding different pipelines, different applications. Now what we're saying I talk a lot of the work that we're doing is reducing the number of copies of that data so that if I've got a product lifecycle management set of data, if I'm a manufacturer, I'm just gonna keep that in one location. But across my different clouds, I'm gonna have best of breed applications developed in house third parties in collaboration with my supply chain connecting securely to that. That single version of the truth. What I'm not going to do is to copy that data. So ah, lot of what we're seeing now is that interconnectivity using applications built on kubernetes. Um, that decoupled from the data source that allows us to reduce those copies of data within that you're gaining from the security capability and resilience because you're not leaving yourself open to those multiple copies of data on with that. Couldn't come. Cost, cost of storage on duh cost of compute. So what we're seeing is using multi cloud to leverage the best of what each cloud platform has to offer That goes all the way to Snowflake and Hiroko on Cloud manage databases, too. >>Well, and the people cost to a swell when you think about yes, the copy creep. But then you know when something goes wrong, a human has to come in and figured out um, you brought up snowflake, get this vision of the data cloud, which is, you know, data data. I think this we're gonna be rethinking a j, uh, data architectures in the coming decade where data stays where it belongs. It's distributed, and you're providing access. Like you said, you're separating the data from the applications applications as we talked about with Fozzie. Much more portable. So it Z really the last 10 years will be different than the next 10 years. A. >>J Definitely. I think the people cast election is used. Gone are the days where you needed thio have a dozen people governing managing black policies to data. Ah, lot of that repetitive work. Those tests can be in power automated. We've seen examples in insurance were reduced teams of 15 people working in the the back office China apply security controls compliance down to just a couple of people who are looking at the exceptions that don't fit. And that's really important because maybe two years ago the emphasis was on regulatory compliance of data with policies such as GDP are in CCP a last year, very much the economic effect of reduce headcounts on on enterprises of running lean looking to reduce that cost. This year, we can see that already some of the more proactive cos they're looking at initiatives such as net zero emissions how they use data toe under understand how cape how they can become more have a better social impact. Um, and using data to drive that, and that's across all of their operations and supply chain. So those regulatory compliance issues that may have been external we see similar patterns emerging for internal initiatives that benefiting the environment, social impact and and, of course, course, >>great perspectives. Yeah, Jeff Hammer, Bucker once famously said, The best minds of my generation are trying to get people to click on ads and a J. Those examples that you just gave of, you know, social good and moving. Uh, things forward are really critical. And I think that's where Data is gonna have the biggest societal impact. Okay, guys, great conversation. Thanks so much for coming on the program. Really appreciate your time. Keep it right there from, or insight and conversation around, creating a resilient digital business model. You're watching the >>Cube digital resilience, automated compliance, privacy and security for your multi cloud. Congratulations. You're on the journey. You have successfully transformed your organization by moving to a cloud based platform to ensure business continuity in these challenging times. But as you scale your digital activities, there is an inevitable influx of users that outpaces traditional methods of cybersecurity, exposing your data toe underlying threats on making your company susceptible toe ever greater risk to become digitally resilient. Have you applied controls your data continuously throughout the data Lifecycle? What are you doing to keep your customer on supply data private and secure? I owe Tahoe's automated, sensitive data. Discovery is pre programmed with over 300 existing policies that meet government mandated risk and compliance standards. Thes automate the process of applying policies and controls to your data. Our algorithm driven recommendation engine alerts you to risk exposure at the data level and suggests the appropriate next steps to remain compliant on ensure sensitive data is secure. Unsure about where your organization stands In terms of digital resilience, Sign up for a minimal cost commitment. Free data Health check. Let us run our sensitive data discovery on key unmapped data silos and sources to give you a clear understanding of what's in your environment. Book time within Iot. Tahoe Engineer Now >>Okay, let's now get into the next segment where we'll explore data automation. But from the angle of digital resilience within and as a service consumption model, we're now joined by Yusuf Khan, who heads data services for Iot, Tahoe and Shirish County up in. Who's the vice president and head of U. S. Sales at happiest Minds? Gents, welcome to the program. Great to have you in the Cube. >>Thank you, David. >>Trust you guys talk about happiest minds. This notion of born digital, foreign agile. I like that. But talk about your mission at the company. >>Sure. >>A former in 2011 Happiest Mind is a born digital born a child company. The reason is that we are focused on customers. Our customer centric approach on delivering digitals and seamless solutions have helped us be in the race. Along with the Tier one providers, Our mission, happiest people, happiest customers is focused to enable customer happiness through people happiness. We have Bean ranked among the top 25 i t services company in the great places to work serving hour glass to ratings off 41 against the rating off. Five is among the job in the Indian nineties services company that >>shows the >>mission on the culture. What we have built on the values right sharing, mindful, integrity, learning and social on social responsibilities are the core values off our company on. That's where the entire culture of the company has been built. >>That's great. That sounds like a happy place to be. Now you said you had up data services for Iot Tahoe. We've talked in the past. Of course you're out of London. What >>do you what? Your >>day to day focus with customers and partners. What you focused >>on? Well, David, my team work daily with customers and partners to help them better understand their data, improve their data quality, their data governance on help them make that data more accessible in a self service kind of way. To the stakeholders within those businesses on dis is all a key part of digital resilience that will will come on to talk about but later. You're >>right, e mean, that self service theme is something that we're gonna we're gonna really accelerate this decade, Yussef and so. But I wonder before we get into that, maybe you could talk about the nature of the partnership with happiest minds, you know? Why do you guys choose toe work closely together? >>Very good question. Um, we see Hyo Tahoe on happiest minds as a great mutual fit. A Suresh has said, uh, happiest minds are very agile organization um, I think that's one of the key things that attracts their customers on Io. Tahoe is all about automation. Uh, we're using machine learning algorithms to make data discovery data cataloging, understanding, data done. See, uh, much easier on. We're enabling customers and partners to do it much more quickly. So when you combine our emphasis on automation with the emphasis on agility that happiest minds have that that's a really nice combination work works very well together, very powerful. I think the other things that a key are both businesses, a serious have said, are really innovative digital native type type companies. Um, very focused on newer technologies, the cloud etcetera on. Then finally, I think they're both Challenger brands on happiest minds have a really positive, fresh ethical approach to people and customers that really resonates with us at Ideo Tahoe to >>great thank you for that. So Russia, let's get into the whole notion of digital resilience. I wanna I wanna sort of set it up with what I see, and maybe you can comment be prior to the pandemic. A lot of customers that kind of equated disaster recovery with their business continuance or business resilient strategy, and that's changed almost overnight. How have you seen your clients respond to that? What? I sometimes called the forced march to become a digital business. And maybe you could talk about some of the challenges that they faced along the way. >>Absolutely. So, uh, especially during this pandemic, times when you say Dave, customers have been having tough times managing their business. So happiest minds. Being a digital Brazilian company, we were able to react much faster in the industry, apart from the other services company. So one of the key things is the organisation's trying to adopt onto the digital technologies. Right there has bean lot off data which has been to manage by these customers on There have been lot off threats and risk, which has been to manage by the CEO Seo's so happiest minds digital resilient technology, right where we bring in the data. Complaints as a service were ableto manage the resilience much ahead off other competitors in the market. We were ableto bring in our business continuity processes from day one, where we were ableto deliver our services without any interruption to the services. What we were delivered to our customers So that is where the digital resilience with business community process enabled was very helpful for us. Toe enable our customers continue their business without any interruptions during pandemics. >>So I mean, some of the challenges that customers tell me they obviously they had to figure out how to get laptops to remote workers and that that whole remote work from home pivot figure out how to secure the end points. And, you know, those were kind of looking back there kind of table stakes, But it sounds like you've got a digital business. Means a data business putting data at the core, I like to say, but so I wonder if you could talk a little bit more about maybe the philosophy you have toward digital resilience in the specific approach you take with clients? >>Absolutely. They seen any organization data becomes. The key on that, for the first step is to identify the critical data. Right. So we this is a six step process. What we following happiest minds. First of all, we take stock off the current state, though the customers think that they have a clear visibility off their data. How are we do more often assessment from an external point off view on see how critical their data is, then we help the customers to strategies that right. The most important thing is to identify the most important critical herself. Data being the most critical assert for any organization. Identification off the data's key for the customers. Then we help in building a viable operating model to ensure these identified critical assets are secure on monitor dearly so that they are consumed well as well as protected from external threats. Then, as 1/4 step, we try to bring in awareness, toe the people we train them >>at >>all levels in the organization. That is a P for people to understand the importance off the digital ourselves and then as 1/5 step, we work as a back up plan in terms of bringing in a very comprehensive and a holistic testing approach on people process as well as in technology. We'll see how the organization can withstand during a crisis time, and finally we do a continuous governance off this data, which is a key right. It is not just a one step process. We set up the environment, we do the initial analysis and set up the strategy on continuously govern this data to ensure that they are not only know managed will secure as well as they also have to meet the compliance requirements off the organization's right. That is where we help organizations toe secure on Meet the regulations off the organizations. As for the privacy laws, so this is a constant process. It's not on one time effort. We do a constant process because every organization goes towards their digital journey on. They have to face all these as part off the evolving environment on digital journey. And that's where they should be kept ready in terms off. No recovering, rebounding on moving forward if things goes wrong. >>So let's stick on that for a minute, and then I wanna bring yourself into the conversation. So you mentioned compliance and governance when when your digital business, you're, as you say, you're a data business, so that brings up issues. Data sovereignty. Uh, there's governance, this compliance. There's things like right to be forgotten. There's data privacy, so many things. These were often kind of afterthoughts for businesses that bolted on, if you will. I know a lot of executives are very much concerned that these air built in on, and it's not a one shot deal. So do you have solutions around compliance and governance? Can you deliver that as a service? Maybe you could talk about some of the specifics there, >>so some of way have offered multiple services. Tow our customers on digital against. On one of the key service is the data complaints. As a service here we help organizations toe map the key data against the data compliance requirements. Some of the features includes in terms off the continuous discovery off data right, because organizations keep adding on data when they move more digital on helping the helping and understanding the actual data in terms off the residents of data, it could be a heterogeneous data soldiers. It could be on data basis, or it could be even on the data legs. Or it could be a no even on compromise all the cloud environment. So identifying the data across the various no heterogeneous environment is very key. Feature off our solution. Once we identify classify this sensitive data, the data privacy regulations on the traveling laws have to be map based on the business rules So we define those rules on help map those data so that organizations know how critical their digital assets are. Then we work on a continuous marching off data for anomalies because that's one of the key teachers off the solution, which needs to be implemented on the day to day operational basis. So we're helping monitoring those anomalies off data for data quality management on an ongoing basis. On finally, we also bringing the automated data governance where we can manage the sensory data policies on their later relationships in terms off mapping on manage their business roots on we drive reputations toe Also suggest appropriate actions to the customers. Take on those specific data sets. >>Great. Thank you, Yousef. Thanks for being patient. I want to bring in Iota ho thio discussion and understand where your customers and happiest minds can leverage your data automation capability that you and I have talked about in the past. I'm gonna be great if you had an example is well, but maybe you could pick it up from there, >>John. I mean, at a high level, assertions are clearly articulated. Really? Um, Hyoty, who delivers business agility. So that's by, um accelerating the time to operationalize data, automating, putting in place controls and actually putting helping put in place digital resilience. I mean way if we step back a little bit in time, um, traditional resilience in relation to data often met manually, making multiple copies of the same data. So you have a d b A. They would copy the data to various different places, and then business users would access it in those functional style owes. And of course, what happened was you ended up with lots of different copies off the same data around the enterprise. Very inefficient. ONDA course ultimately, uh, increases your risk profile. Your risk of a data breach. Um, it's very hard to know where everything is. And I realized that expression. They used David the idea of the forced march to digital. So with enterprises that are going on this forced march, what they're finding is they don't have a single version of the truth, and almost nobody has an accurate view of where their critical data is. Then you have containers bond with containers that enables a big leap forward so you could break applications down into micro services. Updates are available via a p I s on. So you don't have the same need thio to build and to manage multiple copies of the data. So you have an opportunity to just have a single version of the truth. Then your challenge is, how do you deal with these large legacy data states that the service has been referring Thio, where you you have toe consolidate and that's really where I attack comes in. Um, we massively accelerate that process of putting in a single version of the truth into place. So by automatically discovering the data, discovering what's dubica? What's redundant? Uh, that means you can consolidate it down to a single trusted version much more quickly. We've seen many customers have tried to do this manually, and it's literally taken years using manual methods to cover even a small percentage of their I T estates. With our tire, you could do it really very quickly on you can have tangible results within weeks and months on Ben, you can apply controls to the data based on context. So who's the user? What's the content? What's the use case? Things like data quality validations or access permissions on. Then, once you've done there. Your applications and your enterprise are much more secure, much more resilient. As a result, you've got to do these things whilst retaining agility, though. So coming full circle. This is where the partnership with happiest minds really comes in as well. You've got to be agile. You've gotta have controls. Um, on you've got a drug toward the business outcomes. Uh, and it's doing those three things together that really deliver for the customer. >>Thank you. Use f. I mean you and I. In previous episodes, we've looked in detail at the business case. You were just talking about the manual labor involved. We know that you can't scale, but also there's that compression of time. Thio get to the next step in terms of ultimately getting to the outcome. And we talked to a number of customers in the Cube, and the conclusion is, it's really consistent that if you could accelerate the time to value, that's the key driver reducing complexity, automating and getting to insights faster. That's where you see telephone numbers in terms of business impact. So my question is, where should customers start? I mean, how can they take advantage of some of these opportunities that we've discussed today. >>Well, we've tried to make that easy for customers. So with our Tahoe and happiest minds, you can very quickly do what we call a data health check. Um, this is a is a 2 to 3 week process, uh, to really quickly start to understand on deliver value from your data. Um, so, iota, who deploys into the customer environment? Data doesn't go anywhere. Um, we would look at a few data sources on a sample of data. Onda. We can very rapidly demonstrate how they discovery those catalog e on understanding Jupiter data and redundant data can be done. Um, using machine learning, um, on how those problems can be solved. Um, And so what we tend to find is that we can very quickly, as I say in the matter of a few weeks, show a customer how they could get toe, um, or Brazilian outcome on then how they can scale that up, take it into production on, then really understand their data state? Better on build. Um, Brasiliense into the enterprise. >>Excellent. There you have it. We'll leave it right there. Guys, great conversation. Thanks so much for coming on the program. Best of luck to you and the partnership Be well, >>Thank you, David Suresh. Thank you. Thank >>you for watching everybody, This is Dave Volonte for the Cuban are ongoing Siris on data automation without >>Tahoe, digital resilience, automated compliance, privacy and security for your multi cloud. Congratulations. You're on the journey. You have successfully transformed your organization by moving to a cloud based platform to ensure business continuity in these challenging times. But as you scale your digital activities, there is an inevitable influx of users that outpaces traditional methods of cybersecurity, exposing your data toe underlying threats on making your company susceptible toe ever greater risk to become digitally resilient. Have you applied controls your data continuously throughout the data lifecycle? What are you doing to keep your customer on supply data private and secure? I owe Tahoe's automated sensitive data. Discovery is pre programmed with over 300 existing policies that meet government mandated risk and compliance standards. Thes automate the process of applying policies and controls to your data. Our algorithm driven recommendation engine alerts you to risk exposure at the data level and suggests the appropriate next steps to remain compliant on ensure sensitive data is secure. Unsure about where your organization stands in terms of digital resilience. Sign up for our minimal cost commitment. Free data health check. Let us run our sensitive data discovery on key unmapped data silos and sources to give you a clear understanding of what's in your environment. Book time within Iot. Tahoe Engineer. Now. >>Okay, now we're >>gonna go into the demo. We want to get a better understanding of how you can leverage open shift. And I owe Tahoe to facilitate faster application deployment. Let me pass the mic to Sabetta. Take it away. >>Uh, thanks, Dave. Happy to be here again, Guys, uh, they've mentioned names to be the Davis. I'm the enterprise account executive here. Toyota ho eso Today we just wanted to give you guys a general overview of how we're using open shift. Yeah. Hey, I'm Noah Iota host data operations engineer, working with open ship. And I've been learning the Internets of open shift for, like, the past few months, and I'm here to share. What a plan. Okay, so So before we begin, I'm sure everybody wants to know. Noel, what are the benefits of using open shift. Well, there's five that I can think of a faster time, the operation simplicity, automation control and digital resilience. Okay, so that that's really interesting, because there's an exact same benefits that we had a Tahoe delivered to our customers. But let's start with faster time the operation by running iota. Who on open shift? Is it faster than, let's say, using kubernetes and other platforms >>are >>objective iota. Who is to be accessible across multiple cloud platforms, right? And so by hosting our application and containers were able to achieve this. So to answer your question, it's faster to create and use your application images using container tools like kubernetes with open shift as compared to, like kubernetes with docker cry over container D. Okay, so we got a bit technical there. Can you explain that in a bit more detail? Yeah, there's a bit of vocabulary involved, uh, so basically, containers are used in developing things like databases, Web servers or applications such as I have top. What's great about containers is that they split the workload so developers can select the libraries without breaking anything. And since Hammond's can update the host without interrupting the programmers. Uh, now, open shift works hand in hand with kubernetes to provide a way to build those containers for applications. Okay, got It s basically containers make life easier for developers and system happens. How does open shift differ from other platforms? Well, this kind of leads into the second benefit I want to talk about, which is simplicity. Basically, there's a lot of steps involved with when using kubernetes with docker. But open shift simplifies this with their source to image process that takes the source code and turns it into a container image. But that's not all. Open shift has a lot of automation and features that simplify working with containers, an important one being its Web console. Here. I've set up a light version of open ship called Code Ready Containers, and I was able to set up her application right from the Web console. And I was able to set up this entire thing in Windows, Mac and Lennox. So its environment agnostic in that sense. Okay, so I think I've seen the top left that this is a developers view. What would a systems admin view look like? It's a good question. So here's the administrator view and this kind of ties into the benefit of control. Um, this view gives insights into each one of the applications and containers that are running, and you could make changes without affecting deployment. Andi can also, within this view, set up each layer of security, and there's multiple that you can prop up. But I haven't fully messed around with it because with my luck, I'd probably locked myself out. So that seems pretty secure. Is there a single point security such as you use a log in? Or are there multiple layers of security? Yeah, there are multiple layers of security. There's your user login security groups and general role based access controls. Um, but there's also a ton of layers of security surrounding like the containers themselves. But for the sake of time, I won't get too far into it. Okay, eso you mentioned simplicity In time. The operation is being two of the benefits. You also briefly mention automation. And as you know, automation is the backbone of our platform here, Toyota Ho. So that's certainly grabbed my attention. Can you go a bit more in depth in terms of automation? Open shift provides extensive automation that speeds up that time the operation. Right. So the latest versions of open should come with a built in cryo container engine, which basically means that you get to skip that container engine insulation step and you don't have to, like, log into each individual container host and configure networking, configure registry servers, storage, etcetera. So I'd say, uh, it automates the more boring kind of tedious process is Okay, so I see the iota ho template there. What does it allow me to do? Um, in terms of automation in application development. So we've created an open shift template which contains our application. This allows developers thio instantly, like set up our product within that template. So, Noah Last question. Speaking of vocabulary, you mentioned earlier digital resilience of the term we're hearing, especially in the banking and finance world. Um, it seems from what you described, industries like banking and finance would be more resilient using open shift, Correct. Yeah, In terms of digital resilience, open shift will give you better control over the consumption of resource is each container is using. In addition, the benefit of containers is that, like I mentioned earlier since Hammond's can troubleshoot servers about bringing down the application and if the application does go down is easy to bring it back up using templates and, like the other automation features that open ship provides. Okay, so thanks so much. Know us? So any final thoughts you want to share? Yeah. I just want to give a quick recap with, like, the five benefits that you gained by using open shift. Uh, the five are timeto operation automation, control, security and simplicity. You could deploy applications faster. You could simplify the workload you could automate. A lot of the otherwise tedious processes can maintain full control over your workflow. And you could assert digital resilience within your environment. Guys, >>Thanks for that. Appreciate the demo. Um, I wonder you guys have been talking about the combination of a Iot Tahoe and red hat. Can you tie that in subito Digital resilience >>Specifically? Yeah, sure, Dave eso when we speak to the benefits of security controls in terms of digital resilience at Io Tahoe, we automated detection and apply controls at the data level, so this would provide for more enhanced security. >>Okay, But so if you were trying to do all these things manually. I mean, what what does that do? How much time can I compress? What's the time to value? >>So with our latest versions, Biota we're taking advantage of faster deployment time associated with container ization and kubernetes. So this kind of speeds up the time it takes for customers. Start using our software as they be ableto quickly spin up io towel on their own on premise environment are otherwise in their own cloud environment, like including aws. Assure or call GP on IBM Cloud a quick start templates allow flexibility deploy into multi cloud environments all just using, like, a few clicks. Okay, so so now just quickly add So what we've done iota, Who here is We've really moved our customers away from the whole idea of needing a team of engineers to apply controls to data as compared to other manually driven work flows. Eso with templates, automation, previous policies and data controls. One person can be fully operational within a few hours and achieve results straight out of the box on any cloud. >>Yeah, we've been talking about this theme of abstracting the complexity. That's really what we're seeing is a major trend in in this coming decade. Okay, great. Thanks, Sabina. Noah, How could people get more information or if they have any follow up questions? Where should they go? >>Yeah, sure. They've. I mean, if you guys are interested in learning more, you know, reach out to us at info at iata ho dot com to speak with one of our sales engineers. I mean, we love to hear from you, so book a meeting as soon as you can. All >>right. Thanks, guys. Keep it right there from or cube content with.

>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. Welcome back to the Cubes Live coverage of AWS reinvent 2020. It's virtual this year. We're not in person because of the pandemic. We're doing the remote Cube Cube Virtual were the Cube virtual. I'm your host, John for here with Andy Jassy, the CEO of Amazon Web services, in for his annual at the end of the show comes on the Cube. This year, it's virtual Andy. Good to see you remotely in Seattle or in Palo Alto. Uh, Dave couldn't make it in a personal conflict, but he says, Hello, great to see you. >>Great to see you as well, John. It's an annual tradition. On the last day of reinvent. I wish we were doing it in person, but I'm glad at least were able to do it. Virtually >>the good news is, I know you could arrested last night normally at reinvent you just like we're all both losing our voice at the end of the show. At least me more than you, your and we're just at the end of like okay, Relief. It happens here. It's different. It's been three weeks has been virtual. Um, you guys had a unique format this year went much better than I expected. It would go on because I was pretty skeptical about these long, um, multiple days or weeks events. You guys did a good job of timing it out and creating these activations and with key news, starting with your keynote on December 1st. Now, at the end of the three weeks, um, tell me, are you surprised by the results? Can you give us, Ah, a feeling for how you think everything went? What's what's your take So far as we close out reinvented >>Well, I think it's going really well. I mean, we always gnome or a Z get past, reinvent and you start, you know, collecting all the feedback. But we've been watching all the metrics and you know, there's trade offs. Of course, now I think all of us giving our druthers would be together in Las Vegas, and I think it's hard to replace that feeling of being with people and the excitement of learning about things together and and making decisions together after you see different sessions that you're gonna make big changes in your company and for your customer experience. And yeah, and there's a community peace. And there's, you know, this from being there. There's a concert. The answer. I think people like being with one another. But, you know, I think this was the best that any of us could imagine doing doing a virtual event. And we had to really reinvent, reinvent and all the pieces to it. And now I think that some of the positive trade offs are they. You get a lot mawr engagement than you would normally get in person So normally. Last year, with about 65,000 people in Las Vegas this year, we had 530,000 people registered to reinvent and over 300,000 participate in some fashion. All the sessions had a lot more people who are participating just because you remove the constraints of of travel in costs, and so there are trade offs. I think we prefer being together, but I think it's been a really good community event, um, in learning event for for our customers, and we've been really pleased with it so >>far. No doubt I would totally agree with you. I think a lot of people like, Hey, I love to walk the floor and discover Harry and Sarah Davis moments of finding an exhibit her and the exhibit hall or or attending a session or going to a party, bumping into friends and seeing making new friends. But I think one of the things I want to get your reaction to it. So I think this is comes up. And, you know, we've been doing a lot of Q virtual for the past year, and and everyone pretty much agrees that when we go back, it's gonna be a hybrid world in the sense of events as well as cloud. You know that. But you know, I think one of the things that I noticed this year with reinvent is it almost was a democratization of reinvent. So you really had to reinvent the format. You had 300,000 plus people attend 500 pending email addresses, but now you've got a different kind of beehive community. So you're a bar raiser thinker. It's with the culture of Amazon. So I gotta ask you do the economics does this new kind of extra epiphany impact you and how you raise the bar to keep the best of the face to face when it comes back. And then if you keep the virtual any thoughts on how to leverage this and kind of get more open, it was free. You guys made it free this year and people did show up. >>Yeah, it's a really good question, and it's probably a question will be better equipped to answer in a month or two after we kind of debrief we always do after reading that we spend. Actually, I really enjoy the meeting because the team, the Collective A. W s team, works so hard in this event. There's so many months across everything. All the product teams, um, you know, all the marketing folks, all the event folks, and I think they do a terrific job with it. And we we do about 2.5 3 hour debrief on everything we did, things that we thought was really well the things that we thought we could do better and all the feedback we get from our community and so I wouldn't be surprised if we didn't find things from what we tried this year that we incorporate into what we do when we're back to being a person again. You know, of course, none of us really know when we'll be back in person again. Re event happens to fall on the time of the year, which is early December. And so you with with a lot of people seemingly able to get vaccinated, probably by you know, they'd spring early summer. You could kind of imagine that we might be able to reinvent in person next year. We'll have to see e think we all hope we will. But I'm sure there are a number of pieces that we will take from this and incorporate into what we do in person. And you know, then it's just a matter of how far you go. >>Fingers crossed and you know it's a hybrid world for the Cube two and reinvent and clouds. Let's get into the announcement. I want to get your your take as you look back now. I mean, how many announcements is you guys have me and a lot of announcements this year. Which ones did you like? Which one did you think were jumping off the page, which ones resonated the most or had impact. Can you share kind of just some stats on e mean how many announcements launches you did this >>year? But we had about 100 50 different new services and features that we announced over the last three weeks and reinvent And there, you know the question you're asking. I could easily spend another three hours like my Kino. You know, answering you all the ones that I like thought were important. You know, I think that, you know, some of the ones I think that really stood out for people. I think first on the compute side, I just think the, um the excitement around what we're doing with chips, um, is very clear. I think what we've done with gravitas to our generalized compute to give people 40% better price performance and they could find in the latest generation X 86 processors is just It's a huge deal. If you could save 40% price performance on computer, you get a lot more done for less on. Then you know some of the chip work we're doing in machine learning with inferential on the inference chips that we built And then what? We announced the trainee, um, on the machine learning training ship. People are very excited about the chip announcements. I think also, people on the container side is people are moving to smaller and smaller units of compute. I think people were very taken with the notion of E. K s and D. C s anywhere so they can run whatever container orchestration framework they're running in A. W s also on premises. To make it easier, Thio manage their deployments and containers. I think data stores was another space where I think people realize how much more data they're dealing with today. And we gave a couple statistics and the keynote that I think are kind of astonishing that, you know, every every hour today, people are creating mawr content that there was in an entire year, 20 years ago or the people expect more data to be created. The next three years in the prior 30 years combined these air astonishing numbers and it requires a brand new reinvention of data stores. And so I think people are very excited about Block Express, which is the first sand in the cloud and there really excited about Aurora in general, but then Aurora surveillance V two that allow you to scale up to hundreds of thousands of transactions per second and saved about 90% of supervision or people very excited about that. I think machine learning. You know, uh, Sage Maker has just been a game changer and the ease with which everyday developers and data scientists can build, train, tune into play machine learning models. And so we just keep knocking out things that are hard for people. Last year we launched the first i D for Machine Learning, the stage maker studio. This year, if you look at things that we announced, like Data Wrangler, which changes you know the process of Data Prep, which is one of the most time consuming pieces in machine learning or our feature store or the first see, I see deeper machine learning with pipelines or clarify, which allow you to have explain ability in your models. Those are big deals to people who are trying to build machine learning models, and you know that I'd say probably the last thing that we hear over and over again is really just the excitement around Connect, which is our call center service, which is just growing unbelievably fast and just, you know, the the fact that it's so easy to get started and so easy to scale so much more cost effective with, you know, built from the ground up on the cloud and with machine learning and ai embedded. And then adding some of the capabilities to give agents the right information, the right time about customers and products and real time capabilities for supervisors. Throw when calls were kind of going off the rails and to be ableto thio, stop the the contact before it becomes something, it hurts. The brand is there. Those are all big deals that people have been excited about. >>I think the connecting as I want to just jump on that for a second because I think when we first met many, many years ago, star eighth reinvent. You know the trends are always the same. You guys do a great job. Slew of announcements. You keep raising the bar. But one of the things that you mentioned to me when we talked about the origination of a W S was you were doing some stuff for Amazon proper, and you had a, you know, bootstrap team and you're solving your own problems, getting some scar tissue, the affiliate thing, all these examples. The trend is you guys tend to do stuff for yourself and then re factor it into potentially opportunities for your customers. And you're working backwards. All that good stuff. We'll get into that next section. But this year, more than ever, I think with the pandemic connect, you got chime, you got workspaces. This acceleration of you guys being pretty nimble on exposing these services. I mean, connect was a call center. It's an internal thing that you guys had been using. You re factored that for customer consumption. You see that kind of china? But you're not competing with Zoom. You're offering a service toe bundle in. Is this mawr relevant? Now, as you guys get bigger with more of these services because you're still big now you're still serving yourself. What? That seems to be a big trend now, coming out of the pandemic. Can you comment on um, >>yeah, It's a good question, John. And you know we do. We do a bunch of both. Frankly, you know, there there's some services where our customers. We're trying to solve certain problems and they tell us about those problems and then we build new services for him. So you know a good example that was red shift, which is our data warehouse and service, you know, two or three very large customers of ours. When we went to spend time with them and asked them what we could do to help them further, they just said, I wish I had a data warehousing service for the cloud that was built in the AWS style way. Um and they were really fed up with what they were using. Same thing was true with relation databases where people were just fed up with the old guard commercial, great commercial, great databases of Oracle and Sequel Server. And they hated the pricing and the proprietary nature of them and the punitive licensing. And they they wanted to move to these open engines like my sequel and post dress. But to get the same performance is the commercial great databases hard? So we solve that problem with them. With Aurora, which is our fastest growing service in our history, continues to be so there's sometimes when customers articulate a need, and we don't have a service that we've been running internally. But we way listen, and we have a very strong and innovative group of builders here where we build it for customers. And then there are other cases where customers say and connect with a great example of this. Connect with an example where some of our customers like into it. And Capital One said, You know, we need something for our contact center and customer service, and people weren't very happy with what they were using in that space. And they said, You, you've had to build something just to manage your retail business last 15, 20 years Can't you find a way to generalize that expose it? And when you have enough customers tell you that there's something that they want to use that you have experienced building. You start to think about it, and it's never a simple. It's just taking that technology and exposing it because it's often built, um, internally and you do a number of things to optimize it internally. But we have a way of building services and Amazon, where we do this working backwards process that you're referring to, where We build everything with the press release and frequently asked questions document, and we imagine that we're building it to be externalized even if it's an internal feature. But our feature for our retail business, it's only gonna be used as part of some other service that you never imagine Externalizing to third party developers. We always try and build it that way, and we always try to have well documented, hardened AP eyes so that other teams can use it without having to coordinate with those teams. And so it makes it easier for us to think about Externalizing it because we're a good part of the way there and we connect we. That's what we did way generalized it way built it from the ground up on top of the cloud. And then we embedded a bunch of AI and it so that people could do a number of things that would have taken him, you know, months to do with big development teams that they could really point, click and do so. We really try to do both. >>I think that's a great example of some of the scale benefits is worth calling out because that was a consistent theme this past year, The people we've reported on interviewed that Connect really was a lifeline for many during the pandemic and way >>have 5000 different customers who started using connect during the pandemic alone. Where they, you know, overnight they had to basically deal with having a a call center remotely. And so they picked up connect and they spun up call center remotely, and they didn't really quickly. And you know, it's that along with workspaces, which are virtual desktops in the cloud and things like Chime and some of our partners, Exume have really been lifelines for people. Thio have business continuity during a tandem. >>I think there's gonna be a whole set of new services that are gonna emerge You talked about in your keynote. We talked about it prior to the event where you know, if this pandemic hit with that five years ago, when there wasn't the advancements in, say, videoconferencing, it'd be a whole different world. And I think the whole world can see on full display that having integrated video communications and other cool things is gonna have a productivity benefit. And that's kind >>of could you imagine what the world would have been like the last nine months and we didn't have competent videoconferencing. I mean, just think about how different it would have been. And I think that all of these all of these capabilities today are kind of the occult 1.5 capabilities where, by the way, thank God for them. We've we've all been able to be productive because of them. But there's so early stage, they're all going to get evolved. I'm so significantly, I mean, even just today, you know, I was spending some time with with our team thinking about when we start to come back to the office and bigger numbers. And we do meetings with our remote partners, how we think about where the center of gravity should be and who should be on video conferencing and whether they should be allowed to kind of video conference in conference rooms, which are really hard to see them. We're only on their laptops, which are easier and what technology doesn't mean that you want in the conference rooms on both sides of the table, and how do you actually have it so that people who are remote could see which side of the table. I mean, all this stuff is yet to be invented. It will be very primitive for the next couple few years, even just interrupting one another in video conferencing people. When you do it, the sound counsel cancels each other out. So people don't really cut each other off and rip on one another. Same way, like all that, all that technology is going to get involved over time. It's a tremendous >>I could just see people fighting for the mute button. You know, that's power on these meetings. You know, Chuck on our team. All kidding aside, he was excited. We talked about Enron Kelly on your team, who runs product marketing on for your app side as well as computer networking storage. We're gonna do a green room app for the Q because you know, we're doing so many remote videos. We just did 112 here for reinvent one of things that people like is this idea of kind of being ready and kind of prepped. So again, this is a use case. We never would have thought off if there wasn't a pandemic. So and I think these are the kinds of innovation, thinking that seems small but works well when you start thinking about how easy it could be to say to integrate a chime through this sdk So this is the kind of things, that kind thing. So so with that, I want to get into your leadership principles because, you know, if you're a startup or a big company trying to reinvent, you're looking at the eight leadership principles you laid out, which were, um don't be afraid to reinvent. Acknowledge you can't fight gravity. Talent is hungry to reinvent solving real customer problems. Speed don't complex. If I use the platform with the broader set of tools, which is more a plug for you guys on cloud pull everything together with top down goals. Okay, great. How >>do you >>take those leadership principles and apply them broadly to companies and start ups? Because I think start ups in the garage are also gonna be there going. I'm going to jump on this wave. I'm inspired by the sea change. I'm gonna build something new or an enterprise. I'm gonna I'm gonna innovate. How do you How do you see these eight principles translating? >>Well, I think they're applicable to every company of every size and every industry and organization. Frankly, also, public sector organizations. I think in many ways startups have an advantage. And, you know, these were really keys to how to build a reinvention culture. And startups have an advantage because just by their very nature, they are inventive. You know, you can't you can't start a company that's a direct copy of somebody else that is an inventive where you have no chance. So startups already have, you know, a group of people that feel insurgent, and they wanted their passionate about certain customer experience. They want to invent it, and they know that they they only have so much time. Thio build something before money runs out and you know they have a number of those built in advantages. But I think larger companies are often where you see struggles and building a reinvention and invention culture and I've probably had in the last three weeks is part of reinvent probably about 40 different customer meetings with, you know, probably 75 different companies were accomplished in those or so and and I think that I met with a lot of leaders of companies where I think these reinvention principles really resonated, and I think they're they're battling with them and, you know, I think that it starts with the leaders if you, you know, when you have big companies that have been doing things a certain way for a long period of time, there's a fair bit of inertia that sets in and a lot of times not ill intended. It's just a big group of people in the middle who've been doing things a certain way for a long time and aren't that keen to change sometimes because it means ripping up something that they that they built and they remember how hard they worked on it. And sometimes it's because they don't know what it means for themselves. And you know, it takes the leadership team deciding that we are going to change. And usually that means they have to be able to have access to what's really happening in their business, what's really happening in their products in the market. But what customers really think of it and what they need to change and then having the courage and the energy, frankly, to pick the company up and push him to change because you're gonna have to fight a lot of inertia. So it always starts with the leaders. And in addition to having access that truth and deciding to make the change, you've gotta also set aggressive top down goal. The force of the organization moved faster than otherwise would and that also, sometimes leaders decide they're gonna want to change and they say they're going to change and they don't really set the goal. And they were kind of lessons and kind of doesn't listen. You know, we have a term the principal we have inside Amazon when we talk about the difference between good intentions and mechanisms and good intentions is saying we need to change and we need to invent, reinvent who we are and everyone has the right intentions. But nothing happens. Ah, mechanism, as opposed to good intention, is saying like Capital One did. We're going to reinvent our consumer digital banking platform in the next 18 months, and we're gonna meet every couple of weeks to see where we are into problem solved, like that's a mechanism. It's much harder to escape getting that done. Then somebody just saying we're going to reinvent, not checking on it, you know? And so, you know, I think that starts with the leaders. And then I think that you gotta have the right talent. You gotta have people who are excited about inventing, as opposed to really, Justin, what they built over a number of years, and yet at the same time, you're gonna make sure you don't hire people who were just building things that they're interested in. They went where they think the tech is cool as opposed to what customers want. And then I think you've got to Really You gotta build speed into your culture. And I think in some ways this is the very biggest challenge for a lot of enterprises. And I just I speak to so many leaders who kind of resigned themselves to moving slowly because they say you don't understand my like, companies big and the culture just move slow with regulator. There are a lot of reasons people will give you on why they have to move slow. But, you know, moving with speed is a choice. It's not something that your preordained with or not it is absolutely a leadership choice. And it can't happen overnight. You can't flip a switch and make it happen, but you can build a bunch of things into your culture first, starting with people. Understand that you are gonna move fast and then building an opportunity for people. Experiment quickly and reward people who experiment and to figure out the difference between one way doors and two way doors and things that are too way doors, letting people move quick and try things. You have to build that muscle or when it really comes, time to reinvent you won't have. >>That's a great point in the muscle on that's that's critical. You know, one of things I want to bring up. You brought on your keynote and you talk to me privately about it is you gave attribute in a way to Clay Christensen, who you called out on your keynote. Who was a professor at Harvard. Um, and he was you impressed by him and and you quoted him and he was He was your professor there, Um, your competitive person and you know, companies have strategy departments, and competitive strategy is not necessarily departments of mindset, and you were kind of brought this out in a zone undertone in your talk, we're saying you've got to be competitive in the sense of you got to survive and you've got to thrive. And you're kind of talking about rebuilding and building and, you know, Clay Christians. Innovative dilemma. Famous book is a mother, mother teachings around metrics and strategy and prescriptions. If he were alive today and he was with us, what would he be talking about? Because, you know, you have kind of stuck in the middle. Strategy was not Clay Christensen thing, but, you know, companies have to decide who they are. Their first principles face the truth. Some of the things you mentioned, what would we be talking with him about if we were talking about the innovator's dilemma with respect to, say, cloud and and some of the key decisions that have to be made right now? >>Well, then, Clay Christensen on it. Sounds like you read some of these books on. Guy had the fortunate, um, you know, being able to sit in classes that he taught. And also I got a chance. Thio, meet with him a couple of times after I graduated. Um, school, you know, kind of as more of a professional sorts. You can call me that. And, uh, he he was so thoughtful. He wasn't just thoughtful about innovation. He was thoughtful about how to get product market fit. And he was thoughtful about what your priorities in life were and how to build families. And, I mean, he really was one of the most thoughtful, innovative, um, you know, forward thinking, uh, strategist, I had the opportunity Thio encounter and that I've read, and so I'm very appreciative of having the opportunity Thio learn from him. And a lot of I mean, I think that he would probably be continuing to talk about a lot of the principles which I happen to think are evergreen that he he taught and there's it relates to the cloud. I think that one of the things that quite talked all the time about in all kinds of industries is that disruption always happens at the low end. It always happens with products that seem like they're not sophisticated enough. Don't do enough. And people always pooh pooh them because they say they won't do these things. And we learned this. I mean, I watched in the beginning of it of us. When we lost just three, we had so many people try and compare it Thio things like e m. C. And of course, it was very different than EMC. Um, but it was much simpler, but And it and it did a certain set of activities incredibly well at 1 1/100 of the price that's disrupted, you know, like 1 1/100 of the price. You find that builders, um, find a lot of utility for products like that. And so, you know, I think that it always starts with simple needs and products that aren't fully developed. That overtime continue to move their way up. Thio addressing Maura, Maura the market. And that's what we did with is what we've done with all our services. That's three and easy to and party ass and roar and things like that. And I think that there are lots of lessons is still apply. I think if you look at, um, containers and how that's changing what compute looks like, I think if you look at event driven, serverless compute in Lambda. Lambda is a great example of of really ah, derivative plays teaching, which is we knew when we were building Lambda that as people became excited about that programming model it would cannibalize easy to in our core compute service. And there are a lot of companies that won't do that. And for us we were trying to build a business that outlasts all of us. And that's you know, it's successful over a long period of time, and the the best way I know to do that is to listen to what customers We're trying to solve an event on their behalf, even if it means in the short term you may cannibalize yourself. And so that's what we always think about is, you know, wherever we see an opportunity to provide a better customer experience, even if it means in the short term, make cannibalism revenue leg lambda with complete with easy to our over our surveillance with provisions or are we're going to do it because we're gonna take the long view, and we believe that we serve customers well over a long period of time. We have a chance to do >>that. It's a cannibalize yourself and have someone else do it to you, right? That's that's the philosophy. Alright, fine. I know you've got tight for time. We got a you got a hard stop, But let's talk about the vaccine because you know, you brought up in the keynote carrier was a featured thing. And look at the news headlines. Now you got the shots being administered. You're starting to see, um, hashtag going around. I got my shot. So, you know, there's a There's a really Momenta. Mit's an uplifting vibe here. Amazon's involved in this and you talked about it. Can you share the innovation? There can just give us an update and what's come out of that and this supply chain factor. The cold chain. You guys were pretty instrumental in that share your your thoughts. >>We've been really excited and privileged partner with companies who are really trying to change what's possible for all of us. And I think you know it started with some of the companies producing vaccines. If you look at what we do with Moderna, where they built their digital manufacturing sweet on top of us in supply chain, where they used us for computing, storage and data warehousing and machine learning, and and on top of AWS they built, they're Cove in 19 vaccine candidate in 42 days when it normally takes 20 months. I mean, that is a total game changer. It's a game changer for all of us and getting the vaccine faster. But also, you just think about what that means for healthcare moving forward, it zits very exciting. And, yeah, I love what carriers doing. Kariya is building this product on top of AWS called links, which is giving them end and visibility over the transportation and in temperature of of the culture and everything they're delivering. And so it, uh, it changes what happens not only for food, ways and spoilage, but if you think about how much of the vaccine they're gonna actually transport to people and where several these vaccines need the right temperature control, it's it's a big deal. And what you know, I think there are a great example to what carrier is where. You know, if you think about the theme of this ring and then I talked about in my keynote, if you want to survive as an organization over a long period of time, you're gonna have to reinvent yourself. You're gonna have to probably do it. Multiple times over and the key to reinventing his first building, the right reinvention culture. And we talk about some of those principles earlier, but you also have to be aware of the technology that's available that allows you to do that. If you look at Carrier, they have built a very, very strong reinvention culture. And then, if you look at how they're leveraging, compute and storage and I o. T at the edge and machine learning, they know what's available, and they're using that technology to reinvent what's what's possible, and we're gonna all benefit because of >>it. All right. Well, Andy, you guys were reinventing the virtual space. Three weeks, it went off. Well, congratulations. Great to go along for the ride with the cube virtual. And again. Thank you for, um, keeping the show alive over there. Reinvent. Um, thanks for your team to for including the Cube. We really appreciate the Cube virtual being involved. Thank you. >>It's my pleasure. And thanks for having me, John and, uh, look forward to seeing you soon. >>All right? Take care. Have a hockey game in real life. When? When we get back, Andy Jesse, the CEO of a W s here to really wrap up. Reinvent here for Cuba, Virtual as well as the show. Today is the last day of the program. It will be online for the rest of the year and then into next month there's another wave coming, of course. Check out all the coverage. Come, come back, It's It's It's online. It's all free Cube Cube stuff is there on the Cube Channel. Silicon angle dot com For all the top stories, cube dot net tons of content on Twitter. Hashtag reinvent. You'll see all the commentary. Thanks for watching the Cube Virtual. I'm John Feehery.

>> Announcer: From around the globe, it's theCUBE. With digital coverage of AWS reInvent Executive Summit 2020, sponsored by Accenture and AWS. >> Hello and welcome back to theCUBE's coverage of AWS reInvent 2020. This is special programming for the Accenture Executive Summit where all the thought leaders are going to extract the signal from those share with you their perspective of this year's reInvent conference as it respects the customers' digital transformation. Brian Bohan is the director and head of Accenture, AWS Business Group at Amazon web services. Brian, great to see you. And Chris Wegmann is the Accenture Amazon Business Group technology lead at Accenture. Guys this is about technology vision this conversation. Chris, I want to start with you because you're Andy Jackson's keynote. You heard about the strategy of digital transformation, how you got to lean into it. You got to have the guts to go for it and you got to decompose. He went everywhere.(chuckles) So what did you hear? What was striking about the keynote? Because he covered a lot of topics. >> Yeah. It was epic as always from Andy. Lot of topics, a lot to cover in the three hours. There was a couple of things that stood out for me. First of all, hybrid. The concept, the new concept of hybrid and how Andy talked about it, bringing the compute and the power to all parts of an enterprise, whether it be at the edge or are in the big public cloud, whether it be in an Outpost or wherever it'd be, right with containerization now. Being able to do Amazon containerization in my data center and that's awesome. I think that's going to make a big difference. All that being underneath the Amazon console and billing and things like that, which is great. I'll also say the chips, right? I know computer is always something that we always kind of take for granted but I think again, this year, Amazon and Andy really focused on what they're doing with the chips and compute and the compute is still at the heart of everything in cloud. And that continued advancement is making an impact and will make and continue to make a big impact. >> Yeah, I would agree. I think one of the things that really... I mean the container thing was I think really kind of a nuance point. When you've got Deepak Singh on the opening day with Andy Jassy and he runs a container group over there. When we need a small little team, he's on the front stage. That really is the key to the hybrid. I think this showcases this new layer. We're taking advantage of the Graviton2 chips, which I thought was huge. Brian, this is really a key part of the platform change, not change, but the continuation of AWS. Higher level servers, >> Yep. building blocks that provide more capabilities, heavy lifting as they say but the new services that are coming on top really speaks to hybrid and speaks to the edge. >> It does. Yeah. I think like Andy talks about and we talked about we really want to provide choice to our customers, first and foremost. And you can see that in the array of services we have, we can see it in the the hybrid options that Chris talked about. Being able to run your containers through ECS or EKS anywhere. It just get to the customers choice. And one of the things that I'm excited about as you talk about going up the stack and on the edge are things, most certainly Outpost, right? So now Outpost was launched last year but then with the new form factors and then you look at services like Panorama, right? Being able to take computer vision and embed machine learning and computer vision, and do that as a managed capability at the edge for customers. And so we see this across a number of industries. And so what we're really thinking about is customers no longer have to make trade-offs and have to think about those choices, that they can really deploy natively in the cloud and then they can take those capabilities, train those models, and then deploy them where they need to whether that's on premises or at the edge, whether it be in a factory or retail environment. I think we're really well positioned when hopefully next year we start seeing the travel industry rebound and the need more than ever really to kind of rethink about how we kind of monitor and make those environments safe. Having this kind of capability at the edge is really going to help our customers as we come out of this year and hopefully rebound next year. >> Chris, I want to go back to you for a second. It's hard to pick your favorite innovation from the keynote because, Brian, just reminded me of some things I forgot happened. It was like a buffet of innovation. Some keynotes have one or two, there was like 20. You got the industrial piece that was huge. Computer vision, machine learning, that's just a game changer. The connect thing came out of nowhere in my opinion. I mean, it's a call center technology so it's boring as hell, what are you going to do with that?(Brian and Chris chuckle) It turns out it's a game changer. It's not about the calls but the contact and that's distant intermediating in the stack as well. So again, a feature that looks old is actually new and relevant. What was your favorite innovation announcement? >> It's hard to say. I will say my personal favorite was the Mac OS. I think that is a phenomenal just addition, right? And the fact that AWS has worked with Apple to integrate the Nitro chip into the iMac and offer that out. A lot of people are doing development for IOS and that stuff and that's just been a huge benefit for the development teams. But I will say, I'll come back to Connect. You mentioned it but you're right. It's a boring area but it's an area that we've seen huge success with since Connect was launched and the additional features that Amazon continues to bring, obviously with the pandemic and now that customer engagement through the phone, through omni-channel has just been critical for companies, right? And to be able to have those agents at home, working from home versus being in the office, it was a huge advantage for several customers that are using Connect. We did some great stuff with some different customers but the continue technology like you said, the call translation and during a call to be able to pop up those keywords and have a supervisor listen is awesome. And some of that was already being done but we are stitching multiple services together. Now that's right out of the box. And that Google's location is only going to make that go faster and make us to be able to innovate faster for that piece of the business. >> It's interesting not to get all nerdy and business school like but you've got systems of records, systems of engagement. If you look at the call center and the Connect thing, what got my attention was not only the model of disintermediating that part of the engagement in the stack but what actually cloud does to something that's a feature or something that could be an element like say call center, the old days of calling the 800 number and getting some support. You got infra chip, you have machine learning, you actually have stuff in the in the stack that actually makes that different now. The thing that impressed me was Andy was saying, you could have machine learning detect pauses, voice inflections. So now you have technology making that more relevant and better and different. So a lot going on. This is just one example of many things that are happening from a disruption innovation standpoint. What do you guys think about that? Am I getting it right? Can you share other examples? >> I think you are right and I think what's implied there and what you're saying and even in the other Mac OS example is the ability... We're talking about features, right? Which by themselves you're saying, Oh, wow! What's so unique about that? But because it's on AWS and now because whether you're a developer working with Mac iOS and you have access to the 175 plus services that you can then weave into your new application. Talk about the Connect scenario. Now we're embedding that kind of inference and machine learning to do what you say, but then your data Lake is also most likely running in AWS, right? And then the other channels whether they be mobile channels or web channels or in-store physical channels, that data can be captured and that same machine learning could be applied there to get that full picture across the spectrum, right? So that's the power of bringing you together on AWS, the access to all those different capabilities and services and then also where the data is and pulling all that together for that end to end view. >> Can you guys give some examples of work you've done together? I know there's stuff we've reported on, in the last session we talked about some of the connect stuff but that kind of encapsulates where this is all going with respect to the tech. >> Yeah. I think one of them, it was called out on Doug's Partner Summit is a SAP Data Lake Accelerator, right? Almost every enterprise has SAP, right? And getting data out of SAP has always been a challenge, right? Whether it be through data warehouses and AWS, or sorry, SAP BW. What we've focused on is getting that data when you have SAP on AWS, getting that data into the Data Lake, right? Getting it into a model that you can pull the value out and the customers can pull the value out, use those AI models. So that's one thing we worked on in the last 12 months. Super excited about seeing great success with customers. A lot of customers had ideas. They want to do this, they had different models. What we've done is made it very simplified. Framework which allows customers to do it very quickly, get the data out there and start getting value out of it and iterating on that data. We saw customers are spending way too much time trying to stitch it all together and trying to get it to work technically. And we've now cut all of that out and they can immediately start getting down to the data and taking advantage of those different services that are out there by AWS. >> Brian, you want to weigh in as things you see as relevant builds that you guys done together that kind of tease out the future and connect the dots to what's coming? >> I'm going to use a customer example. We worked with, it just came out, with Unilever around their blue air, connected, smart air purifier. And what I think is interesting about that, I think it touches on some of the themes we're talking about as well as some of the themes we talked about in the last session, which is we started that program before the pandemic, but Unilever recognized that they needed to differentiate their product in the marketplace, move to more of a services oriented business which we're seeing as a trend. We enabled this capability. So now it's a smart air purifier that can be remote managed. And now when the pandemic hit, they are in a really good position, obviously, with a very relevant product and capability to be used. And so, that data then as we were talking about is going to reside on the cloud. And so the learning that can now happen about usage and about filter changes, et cetera can find its way back into future iterations of that picked out that product. And I think that's keeping with what Chris is talking about where we might be systems of record like in SAP, how do we bring those in and then start learning from that data so that we can get better on our future iterations? >> Hey, Chris, on the last segment we did on the business mission session, Andy Tay from your team talked about partnerships within a century and working with other folks. I want to take that now on the technical side because one of the things that we heard from Doug's keynote and during the partner day was integrations and data were two big themes. When you're in the cloud technically, the integrations are different. You're going to get unique things in the public cloud that you're just not going to get on-premise access to other cloud native technologies and companies. How do you see the partnering of Accenture with people within your ecosystem and how the data and the integration play together? What's your vision? >> Yeah. I think there's two parts of it. One there's from a commercial standpoint, right? Some marketplace, you heard Dave talk about that in the partner summit, right? That marketplace is now bringing together this ecosystem in a very easy way to consume by the customers and by the users and bringing multiple partners together. And we're working with our ecosystem to put more products out in the marketplace that are integrated together already. I think one from a technical perspective though. If you look at Salesforce, I talked a little earlier about Connect. Another good example technically underneath the covers, how we've integrated Connect and Salesforce, some of it being pre-built by AWS and Salesforce, other things that we've added on top of it, I think are good examples. And I think as these ecosystems these ISVs put their products out there and start exposing more and more APIs on the Amazon platform may opening it up, having those pre-built network connections there between the different VPCs of the different areas within within a customer's network and having them all opened up and connected and having all that networking done underneath the covers. It's one thing to call the APIs, it's one thing to have access to those and that's not a big focus of a lot of ISVs and customers who build those APIs and expose them but having that network infrastructure underneath and being able to stay within the cloud, within AWS to make those connections that pass that data. We always talk about scale, right? It's one thing if I just need to pass like a simple user ID back and forth, right? That's fine. We're not talking massive data sets, whether it be seismic data or whatever it be, passing those large data sets between customers across the Amazon network is going to open up the world. >> Yeah, I see huge possibilities there and love to keep on this story. I think it's going to be important and something to keep track of. I'm sure you guys will be on top of it. One of the things I want to dig into with you guys now is Andy had kind of this philosophical thing in his keynote talk about societal change and how tough the pandemic is. Everything's on full display and this kind of brings out kind of like where we are and the truth. If you look at the truth it's a virtual event. I mean, it's a website and you got some sessions out there, we're doing remote best we can and you've got software and you've got technology and the other concept of a mechanism, it's software, it does something It does a purpose. Accenture, you guys have a concept called Living Systems where growth strategy powered by technology. How do you take the concept of a living organism or a system and replace the mechanism staleness of computing and software? And this is kind of interesting because we're on the cusp of a major inflection point post COVID. I get the digital transformation being slow. That's yes, that's happening. There's other things going on in society. What do you guys think about this Living Systems concept? Yeah. I'll start. I think the living system concept, it started out very much thinking about how do you rapidly change your system, right? And because of cloud, because of DevOps, because of all these software technologies and processes that we've created, that's where it started making it much easier, make it a much faster being able to change rapidly. But you're right. I think if you now bring in more technologies, the AI technology, self-healing technologies. Again, you heard Andy in his keynote talk about the systems and services they're building to detect problems and resolve those problems, right? Obviously automation is a big part of that. Living Systems, being able to bring that all together and to be able to react in real time to either when a customer asks, either through the AI models that have been generated and turning those AI models around much faster and being able to get all the information that came in the last 20 minutes, right? Society is moving fast and changing fast and even in one part of the world, if something in 10 minutes can change. And being able to have systems to react to that, learn from that and be able to pass that on to the next country especially in this world of COVID and things changing very quickly and diagnosis and medical response all that so quickly to be able to react to that and have systems pass that information, learn from that information is going to be critical. >> That's awesome. Brian, one of the things that comes up every year is, oh, the cloud's scalable. This year I think we've talked on theCUBE before, years ago certainly with the Accenture and Amazon. I think it was like three or four years ago. Yeah. The clouds horizontally scalable but vertically specialized at the application layer. But if you look at the Data Lake stuff that you guys have been doing where you have machine learning, the data is horizontally scalable and then you got the specialization in the app changes the whole vertical thing. You don't need to have a whole vertical solution or do you? So, how has this year's cloud news impacted vertical industries? Because it used to be, oh, oil and gas, financial services. They've got a team for that. We got a stack for that. Not anymore. Is it going away? What's changing? >> Well. It's a really good question. I think what we're seeing, and I was just on a call this morning talking about banking and capital markets and I do think the challenges are still pretty sector specific. But what we do see is the kind of commonality when we start looking at the, and we talked about this, the industry solutions that we're building as a partnership, most of them follow the pattern of ingesting data, analyzing that data and then being able to provide insights and then actions, right? So if you think about creating that kind of common chassis of that in just the Data Lake and then the machine learning, and you talk about the nuances around SageMaker and being able to manage these models, what changes then really are the very specific industries' algorithms that you're writing, right, within that framework. And so, we're doing a lot and Connect is a good example of this too, where you look at it and yeah, customer service is a horizontal capability that we're building out, but then when you stamp it into insurance or retail banking, or utilities, there are nuances then that we then extend and build so that we meet the unique needs of those industries and that's usually around those models. >> Yeah. I think this year was the first reInvent that I saw real products coming out that actually solved that problem. I mean, it was there last year SageMaker was kind of moving up the stack, but now you have apps embedding machine learning directly in and users don't even know it's in there. I mean, cause this is kind of where it's going, right? I mean-- >> You saw that was in announcements, right? How many announcements where machine learning is just embedded in? I mean, CodeGuru, DevOps Guru, the Panorama we talked about, it's just there. >> Yeah. I mean having that knowledge about the linguistics and the metadata, knowing the business logic, those are important specific use cases for the vertical and you can get to it faster. Chris, how is this changing on the tech side, your perspective? >> Yeah. I keep coming back to AWS and cloud makes it easier, right? All this stuff can be done and some of it has been done, but what Amazon continues to do is make it easier to consume by the developer, by the customer and to actually embed it into applications much easier than it would be if I had to go set up the stack and build it all on them and embed it, right? So it's shortcoming that process and again, as these products continue to mature, right, and some of this stuff is embedded, it makes that process so much faster. It reduces the amount of work required by the developers the engineers to get there. So, I'm expecting you're going to see more of this, right. I think you're going to see more and more of these multi connected services by AWS, that has a lot of the AI ML pre-configured Data Lakes, all that kind of stuff embedded in those services. So you don't have to do it yourself and continue to go up the stack. And we always talk about Amazon's built for builders, right? But, builders have been super specialized and are becoming, as engineers were being asked to be bigger and bigger and to be be able to do more stuff and I think these kind of integrated services are going to help us do that >> And certainly needed more now when you have hybrid edge that they're going to be operating with microservices on a cloud model and with all those advantages that are going to come around the corner for being in the cloud. I mean, I think there's going to be a whole clarity around benefits in the cloud with all these capabilities and benefits. Cloud Guru I think it's my favorite this year because it just points to why that could happen. I mean that happens because of the cloud data.(laughs) If you're on-premise, you may not have a little Cloud Guru. you are going to get more data but they're all different. Edge certainly will come in too. Your vision on the edge, Chris, how you see that evolving for customers because that could be complex, new stuff. How is it going to get easier? >> Yeah. It's super complex now, right? I mean, you got to design for all the different edge 5G protocols are out there and solutions, right? Amazon's simplifying that. Again, I come back to simplification, right? I can build an app that works on any 5G network that's been integrated with AWS, right. I don't have to set up all the different layers to get back to my cloud or back to my my bigger data set. And that's kind of choking. I don't even know where to call the cloud anymore. I got big cloud which is a central and I go down then you've got a cloud at the edge. Right? So what do I call that? >> Brian: It's just really computing.(laughing) Exactly. So, again, I think is this next generation of technology with the edge comes right and we put more and more data at the edge. We're asking for more and more compute at the edge, right? Whether it be industrial or for personal use or consumer use, that processing is going to get more and more intense to be able to maintain under a single console, under a single platform and be able to move the code that I developed across that entire platform, whether I have to go all the way down to the very edge at the 5G level, right, or all the way back into the bigger cloud and how that processing in there, being able to do that seamlessly is going to allow the speed of development that's needed. >> Wow. You guys done a great job and no better time to be a techie or interested in technology or computer science or social science for that matter. This is a really perfect store. A lot of problems to solve, a lot of change happening, positive change opportunities, a lot of great stuff. Final question guys. Five years working together now on this partnership with AWS and Accenture. Congratulations, you guys are in pole position for the next wave coming. What's exciting you guys? Chris, what's on your mind? Brian, what's getting you guys pumped up? >> Well, again, I come back to Andy mentioned it in his keynote, right? We're seeing customers move now, right. Five years ago we knew customers were going to do this. We built a partnership to enable these enterprise customers to make that journey, right? But now, even more we're seeing them move at such great speed, right? Which is super excites me, right? Because I can see... Being in this for a long time now, I can see the value on the other end. We've been wanting to push our customers as fast as they can through the journey and now they're moving. Now they're getting the religion, they're getting there. They see they need to do it to change your business so that's what excites me. It just the excites me, it's just the speed at which we're going to to see the movement. >> Yeah. >> Yeah. I'd agree with that. I mean, I just think getting customers to the cloud is super important work and we're obviously doing that and helping accelerate that. It's what we've been talking about when we're there all the possibilities that become available, right? Through the common data capabilities, the access to the 175 somewhat AWS services. I also think and this is kind of permeated through this week at Re:invent is the opportunity, especially in those industries that do have an industrial aspect, a manufacturing aspect, or a really strong physical aspect of bringing together IT and operational technology and the business with all these capabilities and I think edge and pushing machine learning down to the edge and analytics at the edge is really going to help us do that. And so I'm super excited by all that possibility because I feel like we're just scratching the surface there. >> It's a great time to be building out. and this is the time for reconstruction, reinvention. Big theme, so many storylines in the keynote and the events . It's going to keep us busy here at SiliconANGLE on theCUBE for the next year. Gentlemen, thank you for coming on. I really appreciate it. Thanks. >> Thank you. All right. Great conversation. We're getting technical. We're going to go another 30 minutes A lot to talk about. A lot of storylines here at AWS Re:Invent 2020 at the Accenture Executive Summit. I'm John Furrier. Thanks for watching. (upbeat music)

>>From around the globe. It's the cube with digital coverage of AWS reinvent 2020 sponsored by Intel and AWS. >>Welcome back to the cubes live coverage of AWS reinvent 2020 I'm Lisa Martin and I have with me a cube alumni back, please. Welcome Scott Mullins, the worldwide financial services business development leader at AWS. Scott. Welcome back. Great to have you joining us, >>Lisa. It's great to be back on the cube and to be visiting with you today from virtual re-invent 2020. >>Yes. Reinventing reinvent. The last show that I got to host in-person for the cube was reinvent last year. And here we have this three week virtual event that started last week. So lots more even going on. I think I even saw a hundred thousand or so registered, so massive event, lots of news. So walk us through some of the highlights that have been announced at reinvent this year and some of the things that you're seeing the most interest from customers in. >>Well, I think one of the big highlights is 500,000 registrants that are reinvented 50,000 attendees last year to reinvent or 50,000 or so to 500,000 re registered for the event. So that's, that's, that's worth talking about in its own. Right. But I think, you know, one of the things, and you mentioned this, you know, more re-invent three weeks, uh, this year, as opposed to the four days that we normally spend in Las Vegas together, physically, when you do, when you do it digitally, you have the ability to actually include more things and more leaders talking about things. And so when we think about the announcements that are having impacts, uh, with financial services customers specifically I'd point to a couple of things and, you know, they're obviously gonna mention Andy's keynote, but there's going to be some things that you might go wait a minute. >>I didn't even see that announcement. Uh, and then maybe I could point you and the viewers to some other, other, um, keynotes or some other sessions that were announced. So obviously I think, uh, first and foremost in Andy's keynote, uh, hybrid, uh, was something that was a very, uh, big focus for him and I for a very long time, we've had the messaging of the right tool for the right job when it comes to any of your services. I think you could alter that today to say it's the right tool for the right job at the right time and in the right place. That makes sense for you and especially for financial institutions. Um, you could look at the announcements around containers, the announcements around Amazon EKS, distro, Amazon EKS, anywhere, and then also Amazon ECS anywhere, which allows our customers to actually, uh, put AWS container technology anywhere they would like to put it. >>You could look also at the additions of the one you and two you form factors to outposts. So no longer do you have to do the, the, the large for you, uh, foreign factor for outposts, smaller outposts for smaller spaces, uh, that particular will play well in the financial service industry. You may not have necessarily as much room for a full cabinet. You could also look from the hybrid perspective in the announcement we made, um, around red hat OpenShift on AWS, all of are giving customers the ability to choose how they actually want to deploy, um, and pursue a hybrid. I'd also point to some announcements we made around management and governance in the financial services, industry governance, uh, is a very important topic. Uh, we announced the management and government lens for the AWS well architected, um, uh, program, uh, that is focused on breath practices for evolving governance for the cloud. >>It has recommended combination of AWS services integrations with our partner network and vetted reference architectures and guidance for addressing regulatory obligations as well. I'd also point to some things we made around audits. I was specifically in Steve Smith's, um, session today, he talked about AWS audit manager. That's a new tool for continually assessing areas and environments for controls or risk compliance. That includes prebuilt compliance frameworks for things like PCI DSS and GDPR, uh, two things that are very important in the financial services industry and last, but certainly not least I'd point to the announcement around the AWS audit Academy. This is training for auditors to actually be able to audit clouds from an agnostic perspective. Any cloud, not specifically AWS that's tree, uh, digital training to do that. And then also an instructor led course specifically on how to audit AWS. So some very key announcements, both from the standpoint of services, uh, as well as additional layers of helping customers in the financial services industry in regulated industries actually use our services. >>So typical, re-invent typical in a lot of news, a lot of announcements, the 500,000 Mark in terms of registering. I hadn't heard that. That's amazing. Let's talk that this has been an Andy. Jassy had an exclusive with John furrier just a couple of weeks ago before. I think it was last week, actually. And we've been talking about this acceleration of digital business transformation because of COVID we've been talking about it, the entire pandemic on the virtual cube, talking about how companies it's really about right now, surviving and thriving to be able to go forward and companies that haven't accelerated are probably in some trouble. Talk to me about how AWS has been working with your financial services customers to help them pivot and move to the cloud faster, really to not just help them survive now, but thrive in the long-term. >>Yeah. Immediately when COVID hit and it hit at different times in different, in different parts of the world. Immediately when COVID hit, we saw the conversation that we were having turning from, Hey, what's my digital strategy to immediately, what are my digital capabilities? And what that really means is what do I have the ability to do tomorrow? Because tomorrow is going to really matter. I don't have necessarily the time to plan for the next several quarters or the next several years, what can I do tomorrow to, um, really, uh, support my, my own workforce and support my own customers and the obligations I have as a financial institution. The first thing we saw people do was to try and make sure that those who financial services work can work. You can look at the adoption of Amazon workspaces, as well as our, uh, Amazon connect, uh, call centers as a service. >>As two examples there at the RBL bank in India was able to move to Amazon workspaces in just 10 days to enable its teams to actually work remotely from home. When they couldn't come into the office, you can look at Barclays. Barclays is actually a presenter at re-invent this year. They'll have a session on how they use Amazon connect, which again is our call center as a service offering to enable 25,000 contacts and our agents to work from home when they can no longer work out of the, out of their traditional contact center. The second thing we saw a financial institutions joining was making sure that customer engagements could still be meaningful when digital was the only option, um, specifically here in the U S you could look at the work that each of us did with FinTech companies like biz two X or fins Zack, or BlueVine Stripe and cabbage in support of the care act in the U S you might remember that the cares act, um, hasn't provisions for funding for small businesses. >>This small business administration had a program called the paycheck protection program, and those organizations were active in providing funding, uh, to small businesses. Uh, through that program. I'll give you an example of cabbage cabbage had previously not been an SBA lender, um, but they were able to, in two weeks build a fully automated system for small businesses to access PPP funding using Amazon text track, to extract information from documentation that those folks submitted to get alone. That reduced approval times from multiple days to about a median of four hours to actually get approval, to get funding through the PPP program. And then just four months cabbage became the second largest PPP lender. They lent over $7 billion in funding, which was twice the amount of funding that they went last year in 2019 loans. So we were happy to support organizations like cabbage and those other FinTech companies, as they help small businesses in the U S get access to funding, uh, during this critical time. >>And as we know, as you said, critical time, but really life or death for a lot of businesses. And as we continue to go through these ways, but it's interesting that you talked about that the speed of facilitation that during such unprecedented times, AWS and this massive machine was able to continue moving at full speed ahead and helping those customers to pivot. You talked about the cloud connect. I had a conversation with a guest on the queue last week about that. And, and I now think about if I have to call in a contact center and that person might be from home. So, you know, we're fortunate that the cloud computing technology and people like you and AWS, or are able to power that because it's, it's literally essential, which is probably one of the words of the year, but being able to keep the machinery going and innovate at the same time has been, make or break for a lot of businesses. >>Absolutely. And you, you look at, you know, kind of one of the last year is that I'll point to is, um, financial institutions. Uh, anti-virus, we're were very much focused on making sure that that cannot fail, that they scaled. And so you can look at the work we did with, uh, with the, with FINRA FINRA is the primary capital markets regulator here in the U S and on a daily basis frame or processes about 400 billion market events on every night to do surveillance on our markets, that when COVID hit, we had unprecedented volume and volatility in the market. And FINRA was, was, um, looking at processing, uh, anywhere from two to three times, their normal daily market volumes that's anywhere from 800 billion market events to 1.2 trillion a night. And if you look at how they were able to scale, they're actually able to scale up compute resources in AWS. We're on a nightly basis. They're able to automatically turn on and off up to a hundred thousand compute nodes in a single day. That automatic ability to scale is, is the power you're talking about. Being able to actually turn things up when you needed it and turn things down when you, when you don't need it based on the volumes. >>Well, and that's going to be something key going forward. As we know that there will be one thing I think that I always say we can count on right now is uncertainty and continued uncertainty, but we've also seen I'm calling them COVID catalysts. You know, the, what you talked about with cabbage, for example, and how that business pivoted quickly, because of the power of cloud computing and emerging technologies, what are some of the things that you think as we go into 2021 in the financial services arena, what are some of the big tech trends that you think were maybe born during COVID that are going to be critical going forward? >>Well, you know, you, you, you had Melanie Frank from capital one on cube a couple of days ago, and she was talking about, you know, their shift to cloud and what that's really enabled, and it, and she kind of sums it up nicely. She says, look, we want to give our customers experience that are real time, and that are intelligent. And you just can't do that with legacy technology. That's sitting in, you know, kind of a legacy data center. And so I think that's going to be kind of the, the, the all encompassing statement for what's happening in the financial services industry. As I mentioned, you know, organizations overnight said, okay, wait a minute, let's take that strategy. And then let's put it aside. Let's talk about capabilities. What can we do? And I think, you know, necessity is the mother of invention. Um, and when you're faced with limitations and challenges, like we all have been faced with around the world and not just in the financial services industry, it, it breeds, um, invention and the, and the desire and the need to actually meet those challenges head on, in very engineered of ways. >>And I think you're going to see more invention and specifically more invention from the established players in the financial services industry. Cloud use is not just experimental on the edges anymore. You're going to see more organizations coming out of COVID. Um, having had those experiences where they actually stood up a context center and scaled it. And, and just a matter of a few days to, to thousands of agents, you're going to find, um, organizations saying, wait a minute, we, we can do remote work. We could, we have access to things like Amazon workspaces. So I think you're, you're gonna, you're going to see that, uh, be a, be a trend. I think you're also gonna see, um, w what Lori beer said in the keynote with Andy, you know, she, she made a very, very astute statement, and I don't know if people caught it, cause it's kind of neat in the middle of her conversation. >>She said, look, we're trying to infuse analytics into everything that we do at JP Morgan. I think you're going to see more and more financial institutions looking to do that, to actually leverage the power of analytics, to power everything we do as a financial institution. So I think those, those are a couple of things that you're going to see. Um, and then, you know, looking, uh, you know, kind of around the corner, I think you're going to continue to see more re-invention within the industry. And what I mean by that is you've seen many financial institutions over the last week, uh, with, uh, re-invent making announcements, you saw bank and we towel saying, Hey, look, we are completely transforming ourselves with AWS. Uh, just a few weeks before we even saw standard charter, the same thing HSBC said, the same thing, global payments earlier in the year said the same thing. And you're going to see more and more organizations coming out and talking about these strategic decisions to reinvent everything that they do to make the financial systems of the world work. And so we're really pleased to be partnering with those organizations to make those transformations possible. We're seeing a lot of invention within the industry, and we're very pleased to be a part of the reinvention of the financial systems around the world. >>It's interesting to hear that you, you see, even the JP Morgan, some of those legacy, big houses are going to be really pivoting. They have to, to be competitive and to be able to utilize analytics, to deliver those real-time services. Because as we all know, as consumers, our patients is wearing thin these days, but I agree with you. I think there's a lot of opportunity there that innovation is exciting and there will have to be reinvention of entire industries, but I think there's a lot of silver linings there. Scott. I wish we had more time, cause I know we could keep talking, but thank you for sharing your insights on this reinvented reinvent this year. >>I appreciate it. Thank you, Lisa. It's always a pleasure to be on the cube. >>Chris Scott Mullins, I'm Lisa Martin. You're watching the cubes coverage of AWS reinvent 2020.

>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel and AWS. Yeah, welcome to the Cubes Live coverage of AWS reinvent 2020. I'm Lisa Martin and I have a Cube alumni joining me Next. Aaron Kelly, the GM of product marketing at AWS Aaron. Welcome back to the program. >>Thanks, Lisa. It's great to be here. >>Likewise, even though we don't get to all be crammed into Las Vegas together, uh, excited to talk to you about Amazon Connect, talk to our audience about what that is. And then let's talk about it in terms of how it's been a big facilitator during this interesting year, that is 2020. >>Great, yes, for sure. So Amazon Connect is a cloud contact center where we're really looking to really reinvent how contact centers work by bringing it into the cloud. It's an Omni Channel, easy to use contact center that allows customers to spin up contact centers in minutes instead of months. Its very scalable so can scale to 10 tens of thousands of agents. But it also scaled down when you when it's not in use and because it's got a pay as you go business model. You only pay when you're engaging with collars or customers. You're not paying for high upfront per agent fees every month. So it's really been a great service during this pandemic, as there's been a lot of unpredictable spikes in demand, uh, that customers have had to deal with across many sectors, >>and we've been talking for months now about the acceleration that Corbett has delivered with respect to digital transformation. And, of course, as patients has been wearing fin globally. I think with everybody when we're calling a contact center, we want a resolution quickly. And of course, as we all know is we all in any industry are working from home. So are they. So I can imagine during this time that being able to have a cloud contact center has been transformative, I guess, to help some businesses keep the lights on. But now to really be successful moving forward, knowing that they can operate and scale up or down as things change. >>Yeah, that's exactly right. And so one of the key benefits of connect his ability to very quickly on board and get started, you know, we have some very interesting and examples like Morrisons, which is a retailer in the UK They wanted to create a new service as you highlighted, which was a door, you know, doorstep delivery service. And so they needed to spin up a quick new contact center in order to handle those orders. They were able to do it and move all their agents remotely in about a day and be able to immediately start to take those orders, which is really powerful, you know. Another interesting example is the Rhode Island Department of Labor and Training. Which part of their responsibility is to deliver unemployment benefits for their citizens? Obviously a huge surge of demand there they were able to build an entirely new context center in about nine days to support their citizens. They went from a knave ridge of about 74 call volume sort of capacity per minute to 1000 call on capacity per minute. And in the first day of standing up this new context center, they were able to serve 75,000 Rhode Island citizens with their unemployment benefits. So really ah, great example of having that cloud scalability that ability to bring agents remotely and then helping citizens in need during a very, very difficult time, >>right? So a lot of uses private sector, public sector. What are some of the new capabilities of Amazon connected? You're announcing at reinvent. >>Yeah, So we announced five big capabilities this during reinvent yesterday that really spanned the entire experience, and our goal is to make it better for agents so they're more efficient. That actually helps customers reduce their costs but also create a better collar experience so that C sat could go up in the collars, can get what they need quickly and then move on. And so the first capability is Amazon Connect Voice I D, which makes it easier to validate that the person calling is who in fact, they say they are so in this case, Lee. So let's say you're calling in. You can opt in tow, have a voice print made of you. The next time you call in, we're able to use machine learning to match that voiceprint to know. Yes, it is Lisa. I don't need to ask Lisa questions about her mother's maiden name and Social Security number. We can validate you quickly as an agent I'm confident it's you. So I'm less concerned about things like fraud, and we can move on. That's the first great new feature. The second is Amazon Connect customer profiles. So now, once you join the call rather than me is an agent having to click around a different systems and find out your order history, etcetera. I could get that all surface to me directly. So I have that context. I can create a more personalized experience and move faster through the call. The third one is called Wisdom. It's Amazon Connect wisdom, which now based on either what you're asking me or a search that I might make, I could get answers to your questions. Push to me using machine learning. So if you may be asking about a refund policy or the next time a new product may launch, I may not know rather than clicking around and sort of finding that in the different systems is pushed right to me. Um, now the Fourth Feet feature is really time capability of contact lens for Amazon connect, and what this does is while you were having our conversation, it measures the sentiment based on what you're saying or any keywords. So let's say you called it and said, I want a refund or I want to cancel That keyword will trigger a new alert to my supervisor who can see that this call may be going in the wrong direction. Let me go help Aaron with Lisa. Maybe there's a special offer I can provide or extra assistance so I can help turn that call around and create a great customer experience, which right now it feels like it's not going in that direction. And then the last one is, um, Amazon Connect tasks where about half of an agents time is spent on task other than the call follow up items. So you're looking for a refund or you want me Thio to ship you a new version of the product or something? Well, today I might write that on a sticky note or send myself a reminder and email. It's not very tracked very well. With Amazon Connect task, I can create that task for me as a supervisor. I could then X signed those tax and I can make sure that the follow up items air prioritized. And then when I look at my work. You is an agent. I can see both calls, my chats and my task, which allows me to be more efficient. That allows me to follow up faster with you. My customer, Andi. Overall, it's gonna help lower the cost and efficiency of the Contact Center. So we're really excited about all five of these features and how they improve the entire life cycle of a customer contact. >>And that could be table stakes for any business in terms of customer satisfaction. You talked about that, but I always say, You know, customer satisfaction is inextricably linked to employee satisfaction. They need. The agents need to be empowered with that information and really time, but also to be able to look at. I want them to know why I'm calling. They should already know what I have. We have that growing expectation right as a consumer. So the agent experience the customer experience. You've also really streamline. And I could just see this being something that is like I said, kind of table stakes for an organization to reduce churn, to be able to service more customers in a shorter amount of time and also employee satisfaction, right, >>right that's that. That's exactly right. Trader Grills, which is one of our, you know, beta customers using some of these capabilities. You know, they're saying 25% faster, handle times so shorter calls and a 10% increase in customer satisfaction because now it's personalized. When you call in, I know what grill you purchased. And so I have a sense based on the grill, you purchase just what your question might be or what you know, what special offers I might have available to me and that's all pushed to me is an agent, So I feel more empowered. I could give you better service. You have, you know, greater loyalty towards my brand, which is a win for everyone, >>absolutely that empowerment of the agent, that personalization for the customer. I think again we have that growing demanded expectation that you should know why I'm calling, and you should be able to solve my problem. If you can't, I'm gonna turn and find somebody else who can do that. That's a huge risk that businesses face. Let's talk about some of the trends that you're seeing that this has been a very interesting year to say the least, what are some of the trends in the context center space that you guys were seeing that you're working Thio to help facilitate? >>Yeah, absolutely. So I think one of the biggest trends that we're seeing is this move towards remote work. So as you can imagine, with the pandemic almost immediately, most customers needed to quickly move their agents to remote work scenario. And this is where Amazon Connect was a great benefit. For as I mentioned before, we saw about 5000 new contact centers created in March in April. Um, Atiya, very beginning of the pandemic. So that was a very, uh, that's a very big trend we're seeing. And now what we're seeing is customers were saying, Hey, when I have something like Amazon Connect that's in the cloud, it scales up. It provides me a great experience. I just need really a headset in a Internet connection from my agents. I'm not dealing with VPNs and, ah, lot of the complexity that comes with trying to move on on premises system remote. We're seeing a huge, you know, search of adoption and usage around that the ability to very quickly create a new context center around specific scenarios are use cases has been really, really powerful. So, uh, those are the big trends moving to remote remote work and a trend towards, um, spinning of new context that is quickly and then spending them back down as that demand moves or or those those those situations move >>right. And as we're all experiencing, the one thing that is a given during this time is the uncertainty that remains Skilling up. Skilling down volume changes. But looking as if a lot of what's currently going on from home is going to stay for a while longer, I actually not think about it. I'm calling into whether it's, you know, cable service or whatnot. I think What about agent is actually on their couch at home like I am working? And so I think it's being able to facilitate that because is transformative, and I think I think I'll step out on limbs side, you know, very potentially impact the winners and the losers of tomorrow, making sure that the consumer experience is tailored. It's personalized to your point and that the agents are empowered in real time to facilitate a seamless and fast resolution of whatever the issue is. >>Well, and I think you hit on it earlier as well. Agents wanna be helpful. They wanna solve a customer problem. They wanna have that information at their fingertips. They wanna be on power to take action. Because at the end of their day, they want to feel like they helped people, right? And so being able to give them that information safe from wisdom or being able to see your entire customer profile, Right? Right. When you come on board or know that you are Lisa, um, and have the confidence that I'm talking to Lisa, I'm not. This is not some sort of, you know, fishing, exercise, exercise. These are all really important scenarios and features that empower the agent, lowers cost significantly for the customer and creates a much better customer experience for you. The collar? >>Absolutely. And we all know how important that is these days to get some sort of satisfying experience. Last question. Erin, talk to us about, you know, as we all look forward, Thio 2021. For many reasons. What can we expect with Amazon? Connect? >>Well, we're going to continue to listen to our customers and hear their feedback and what they need, which what we certainly anticipate is continued focus on that agent efficiency, giving agents mawr of the information they need to be successful and answer customers questions quickly, continuing to invest in machine learning as a way of doing that. So using ML to identify that you are who you say you are, finding that right information. Getting data that I can use is an agent Thio. Handle those tasks and then automate the things that you know I really shouldn't have to take steps is a human to go do so if we need to send you a follow up email when when your product ships or when your refund is issued. Let me just put that in the system once and have it happened when it executes. So that level of automation continuing to bring machine learning in to make the agent experience better and more efficient, which ultimate leads to lower costs and better see set. These are all the investments. You'll see a sui continue for it next year. >>Excellent stuff, Erin, thank you so much for joining me on the program today, ensuring what's next and the potential the impact that Amazon connect is making. >>Thanks, Lisa. It's great to be here >>for Aaron Kelly. I'm Lisa Martin. You're watching the cubes. Live coverage of AWS reinvent 2020.

>>the >>globe. It's the Cube with digital coverage of AWS >>reinvent 2020 >>sponsored by Intel, AWS and our community partners. Everyone welcome back to the cubes. Virtual coverage of AWS reinvent 2020 Virtual I'm John for your host. Got a great segment here with two analyst day Volonte and Zia's Carvell who's head principles of zk research dot com. Guys. Great to see you A W s Kino. Thanks for >>coming on. Let's be back in the cube. >>Welcome back. Great to see you guys. Wanna get your thoughts? Um, it's mainly you because we talked with the enterprise a lot. You are leading analyst. You cover a broad range from networking all the way up to the C suite for enterprise buyers and and technology trends. Um, Andy Jassy laid down, in my opinion, what was directionally his next 20 mile stare. The next conquest for Amazon. And that is global. I t spend they locked in the infrastructures of service pass kicking ass. There. Check check. Hello, Enterprise. Different ballgame. What's your thoughts? >>Yeah, they have so much in different areas, obviously. You know, they have dominated cloud instances right there. Mawr compute storage memory. You know insists that anybody but you can see him, um, spreading their wings now, right? I think one of the more interesting announcements was actually what they're doing with Amazon connect. That's their contact center platform. And this is something that I think, Even last year, a lot of people weren't really even sure if they'd be in a long primary in the pocket. People about this market, they were asking, If you really think Amazon's in this, there's something they're experimenting. But we're here to stay. And I think one of the interesting things that they bring to market is, you know, almost unprecedented scale with their cloud platform as well as all the machine learning algorithms. And I think if if you believe that machine learning artificial intelligence is changing, I t. Forever and that's everything from the infrastructure to the network through the applications, then they have an inherent advantage because they have all those machine learning albums built into this stuff that they dio and so they can constantly look at these different markets and disruptive, disruptive, disrupt and take more and more sharing that and that's what they've done. E think that's you know, the context and announcements were great example that they're not doing the telephony things, and, you know, they're kind of bare table stakes. They do that pretty well, but they've just unloaded a whole bunch of ai based features that >>Dave, what's your take on this context center? Because it's not just call centers. I mean, there was a whole industry around call center, unified communications. That whole world. This is about the contact. It's about the person. This is not just a nuanced thing like telephony or, you know, PBX is in the old days. Remember those days? Things is not about the call. It's about the contact. This is what Jazzy saying. >>I think that way had Diana or on early. And I said, I like the fact that their AWS specifically is going after these solutions because several years ago it was just sort of. Here's a bunch of tools. Go figure it out. I think the contact center is I mean, everybody can relate Thio the pains of going through getting rerouted, having to restate all your credentials, not knowing who you are. And so between machine learning, Alexa, Natural language processing, better work flows. I mean there's this huge opportunity toe reinvent the whole call center contact center. So, uh, yeah, I think you called it John. It's a no brainer for a W s toe Really disrupt that >>business. Well, it also puts him in a position. You know, news is breaking on the day of and yet his keynote here at reinvent that, uh, you got Salesforce spying slack for 27 close toe, $28 billion. That's a 55% premium over when they announced it. And that's like a 30 x or 50 x on on revenue. Massive number to confess the message board software. I mean, so So. So. If Amazon can come in and get the context center model, which is not just voice, it's chat, it's machine learning. It's bots. And the innovation to create a step function kind of brings it back into the that integration of user network compute. You know, I just think that it feels very edgy in the sense of edge computing, because if I'm a person, I'm mobile. If I'm a person at work or at home, so there's a whole redefinition Zs, what's your take on this edge? Play from Amazon in context toe the enterprise software landscape. That seems to be, you know, focus on buying companies like Salesforce. >>Well, I think edges really the next big foray for computing. If one of the things and you ask we talked about this, you know, was that the compute, the unit of Compute, has gotten smaller and smaller, Right? We went from data centers to servers to virtual machines, the virtual machines and clouds. Now we're talking about containers and containers on edges, and this requires, um if you if you believe in the world of distributed computing where we're gonna have mawr containers running in MAWR, places on MAWR edges, right. The value proposition where companies is now they can move their data closer to the customer. They could move data closer to the user. And so, if I'm a retailer and I'm trying to understand what a customer is doing, I could do that in store. If I'm Tesla and I'm trying to understand what the drivers doing, I could do that in car, right? If I'm a cellular provider, I could do it by cellular edge. So the edge, I think, is where a lot of the innovation is going to be at Amazon has the luxury of this massive global network. You know, they just announced the number another a number of other local nodes, including Boston and a few other places. So they've got the footprint in place. And this this is what makes Amazon's are difficult to compete with, right? They built this massive network and this all these, no doubt for their e commerce business. And now they're leveraging that deliver I t services. You can't just go build this from the ground up the variety, right? You have to be able to monetize it another way. And they've been doing that with the commerce for a long time. And so it makes them. It makes it very, very difficult for them to capture Google could with Daniel forget about the item. Oh, yeah, so good. Microsoft. Possibly. But they I think that the more distributed compute becomes the more favors Amazon, >>I would add to that if I could, John, I mean, look good. Look at the prevailing way in which many of the infrastructure the old guard is Andy. Jesse calls them. Companies have pursued the edge they've essentially taking, taking x 86 boxes and, you know, maybe made him rugged and throwing them over the fence to the edge. And that really is not gonna play the edges. Now there's not one edge. I mean, there's a very highly specific use cases and factories and windmills. And maybe maybe it's small retail organizations, and whatever it is that those are gonna be really unique situations. And I think the idea of putting a programmable infrastructure at the edge is gonna win. I also think that the edge architecture is gonna be different. It's going to require much more efficient processing to do a I Influencing a lot of the data is gonna be, uh, stay at the edge. A lot of it's not gonna be persisted. Some of it's gonna come back to the cloud. But I think most of it is actually gonna gonna either not be persisted or stay at the edge and be affected in real time. When you think of autonomous vehicles so totally different programming model, >>well, I think that's the point of what I was saying earlier Zeus was talking about Is that it's It's the edges is just different. I mean, you got purpose built stuff. I mean, they were talking by the way they have snowball. So they have, ah, hard edge device. And they got out outpost now in multiple flavors and sizes. But they also were talking about computer vision and machine learning. We're going together for that. The panoramic appliance. I think it was where there's all these different cases to your point, Dave, where it's just different. At the edge, you have the zones for five G. I mean, if you go to a five g tower, that's essentially an edge. Just there's equipment up to this. Radios is transceivers and other back haul equipment. So when you look at the totality of what it is, the diversity, I think that's why this whole idea of Lambda and Containers is interesting. Toe Zia's. When you were saying about the compute sizes being small, because if you could put compute at the edge on small pieces to match the form factor that becomes interesting. I think that's what this Lambda container announcement I found interesting because I see that playing directly into that your reaction to >>that. It actually, um, makes it. If not done correctly, it could make I t much more complex because, um, containers air interesting because they're not like virtual machines. First live in perpetuity. Containers you They're very ephemeral, right? You spin them up to 30 seconds, you spin them up for a couple of minutes that you deprecate them. So at any given point in time, you could have thousands of containers, a handful of containers, millions of containers, Right? But it necessitates a common management. Uh huh. Underlay that could be used to visualize where these containers are, what's running on them. And that's what AWS provides. You know, all the stuff they're doing Lambda and Eks and things like that that lends itself to that. So a customer can then go and almost create a container architecture that spans all their cloud's edges, even on Prem. Now, uh, when Amazon has but still be able to manage it and simplify it, I think somebody's trying to do it themselves. They're gonna find that the complexity almost becomes untenable. Unless you have a Nike organization the size of Amazon companies don't. So we're >>gonna here, we're gonna hear from Deepak singing in a few sessions. He did the eks anywhere. That's essentially kubernetes service on the data center. But look at what they did with eks anywhere and then CCS, which has a common control plane to your point, that's compelling. And so, you know, if you're a developer or you're an enterprise, you might not have If you want to go with this. I t world. We talked about earlier zeros before you came on on our last segment. Most I t is not that built out in terms of capabilities. So learning new stuff is hard, so operating Amazon might be foreign to most I t shops. This is a challenge. Did you agree with that? Or or how do you see that? >>Um, well, a lot of Amazon used, obviously just the interviews and numbers of fucked that right. Um, but I think the concept of in a world where you have that common operating layer that spans it's no longer geographically limited to a data center or to a server. You know, it's it's now distributed across your entire multi cloud or distributed cloud environment. And so one of the important things right people remember is the world is becoming more dynamic and or distributed, and your I t strategy has to follow that. If you're doing things that are counted that you're not only standing still, you're actually going backwards. And so what Amazon is doing is they're allowing companies to be is dynamic distributors. They need to be to be able to maintain that that common operating layer that actually makes it management, because without it, you just you wind up in a situation. Like I said, that's incredible. A lot of people facing that today. And that's why that's why there's this big divergence, right? This five native cos they're going fast and legacy companies that can. >>Guys, I want to spend the next 10 minutes we have getting into more of the business side from this keynote because because I know your research on digital transmission first. I know you know the networking side up and down the stack and all that good stuff, but you've been doing a lot of research around the digital transformation with the cloud. Dave, you just put out a great great breaking and else think your 55th, um, episode on digital transformation with the cloud. It's very clear that Jackie is basically preaching, saying, Hey, Clay Christensen is former professor who passed away. He brought up this whole innovator's dilemma kind of theme and saying, Hey, if you don't get the reality that you're in, you better wake up and smell the coffee. It's a wake up call. That's what he's basically saying That's my take away. This is really this business management lesson. Leadership thinking is super important, and I know we've We've talked about people process, technology. Uh, let's Covad eyes this real quick. Bottom line. What is the playbook? Do you agree with jazz? His point of view here? Um, he's pretty being hardcore. He's like, literally saying adapter die in his own way. What, you guys thoughts on this? This is a true forcing function. This cove, In reality, >>I mean I mean, if you talk about the business transformation, digital transformation, business transformation, you know, what does that mean? I, like, said earlier that the last 10 years about I t transformation, I think the next 10 is gonna be about business transformation, organizational industry transformation, and I think what that means is the entire operational stack is gonna get digitized. So your sales you're marketing your your customer support your logistics. You know you're gonna have one interface to the customer as opposed toe, you know, fragmented stovepipe siloed. You know, data sets all over the place, and that is a major change. And I think that's ultimately what a W. S is trying to affect with its model and has obviously big challenges in doing so. But But that, to me, is what digital transformation is ultimately all about. And I think you're going to see it unfold very rapidly over the next several >>years. What's your reaction? What's your view on on the on Jackie? >>And he talked about his eight steps toe reinvention. Um and e think what digital transformation to me is the willingness to re invent disruptive own business even in the face that it might look horrible for your business, right? But understanding he is there something that I think is true. And a lot of, um, business leaders don't fully by this that if something is good for your customer, they're going to do it, and you can either make it happen, or you gonna watch it happen and then have the market taken away from me because there's a lot of cases you look at how slow you know, A lot of the banks, you know, operated until you know, the a lot of these, uh, cloud native, uh, money exchange systems came around the cape. Alan Ben more and things like that, right? Even retailers Amazon completely disrupted that model. You could say that Amazon killed, you know, Toys R us, but 20 rescue Toys R Us E. And I think there's got to be this hard willingness to look at your business model and be willing to disrupt yourself. And what Kobe did, John, I think, is a taught us a lesson that you have to be prepared for anything because nobody saw this coming. And sure you can. And a lot of companies thrived out of this, and a lot of one's gone away, but that the ability to be agile has never been more important. But you're only is Angela's. Ike lets you be, and that's what that's what. The W. Is going to sell us the ability to do anything you want with your business. But the staff, you have to have the business because they're willing to do that. >>You know, that's a great point. That's so smart. It's crime that's worth calling out. And we were talking before we came on live about our business with the Cube. There's no virtual, there's no floor anymore. So we had to go virtual if we weren't in the cloud. If we weren't doing R and D and tinkering with some software and having our studio, we'd be out of business. Dave. Everyone knows it. Now Get the Cube virtual. We have some software were position, and this kind of speaks directly to what Andy Jassy said. He said. Quote. If you're not in the process of figuring out as a company, how you're going to reinvent your customer experience in your product and reinvent who you are, you are starting to unwind. You may not realize it, but you are. What he's saying is you better wake up and smell the coffee and I want to get your guys reacted. You, particularly you around your experience and research. I've noticed that some customers that had cloud going on did well with co vid and said ones that didn't are still struggling not to catch up. So you're kind of intense. You got some companies that were that were on the wave, Maybe kind of figuring it out, that we're in good position and some that were flat footed and are desperate. Um, seems to be a trend. Do you agree with that? And what's your view on this idea of being ready? What does that even mean to be? Have readiness or >>take, you don't get the data points that Andy threw up there, right? That 50% of the companies that were the global fortune $500.2000 or are no longer here, Right? That Zatz Pretty shocking statistic. And that does come, uh, you know, from the willingness to disrupt your business. And if you got you're right. The companies that had a good, solid class raging in place, we're able to adapt their business very quickly. You could you look at retailers. Some had a very strong online presence. They had online customer service set up those companies didn't find other ones, were really forced to try and figure out how to let people in the store had a mimic. You know, the in store experience, you know, through from, uh, you know, support interface or whatever. Those are the ones that really struggling. So you're right. I think companies that were on the offensive plug to Dover companies that were fully in the cloud really accelerated their business and ones that didn't buy into it. I think they're struggling to survive in a lot of They're gone. >>Yeah, and all that. John, When Jesus was talking about his view of digital transformation, I was just writing down some of the examples to your point. The folks that were sort of had were cloud ready, covert ready, if you will. And those that weren't But think about think about automobiles. You know, there's testily even a manufacturer of automobiles or they software company. Personal health has completely changed over the last nine months with remote. You know, uh, telehealth automated manufacturing. You think about digital cash, e commerce and retail is completely, you know, accelerated. Obviously toe online. Think about kids in college and kids in high school and remote learning farming. You know, we've done a great job in terms of mono crops and actually creating a lot of food. But now I think the next 10 years is gonna be how do we get more nutritious food to people and so virtually every industry is ripe for disruption, and the cloud is the underpinning of that disruption. >>Alright, guys, got a few more minutes left. I want to get your thoughts quickly on the keynote. What it means for the customers that we're watching again. This is not a sales and marketing conference as they talk about. But if you're sitting in the audience, you guys, we're watching and we're virtual um Did it hit home with you? If you're a customer, what did he what? Give us Give the grades. Where do you Where do you hit a home run? Where he missed. Did he leave anything out? What's your take Zia's? We'll start with you. >>Um, I thought it was actually really good Keynote. I thought you did a good job of making the case for AWS. They talked about the open. They have more instances than anybody. So you could do almost any kind of compute in their cloud. I think one of the important lessons variety to is the importance. You can't just do everything. The software right? Hardware Still important silicon still important that, and to meet the needs of very special he needs from things like machine learning and AI. Amazon's actually spending their own silicon very much like Athens doing with their computers. And so if you are going to be a customer service focused company, you need to think of the I T. Stack and everything from the silicon, the hardware through the software, and build that integrated experience to Amazon's giving a tools to do that Now E. Do I would like to see Amazon be a little more, um, a supposed the cloud competitive friendly. The one thing I hear from customers all the time is they love the Amazon tools. They love the optimization capabilities, but you know, if they are adopting some kind of multi cloud strategy, the Amazon tools don't work in Azure and the capital don't work in Amazon. The same with Google, and it would be well within the best interests of those three companies. They find a way to get together and allow their common framework to work across clouds. Amazon's already got a lead that they could do that, and I don't think it's gonna be, but that that is something I think that's still missing from this world is they make it very difficult for customers to move the multi cloud. >>Well, some would say some people are saying, saying that the number one in the cloud I mean, got cloud wars Bob Evans over there saying Microsoft is dominating number one position over everybody else, multiple quarters in a row Now he's looking at revenue and granted. You got a lot of propping up there you got. You know, Windows server and sequel. You got a bunch of professional services, But clearly the I as in past side of the market, Microsoft is, like, way behind um So, yeah, they've got the numbers little legacy in their Microsoft should, and they got a little base. If I'm Amazon, I'm not. I'm worried about Microsoft more than anybody. I think you know, I looking at the Civil War between the Seattle forces. I mean, this is really Microsoft's gotta greatest all base, and they could flip that license deals and >>the cloud is good enough. I mean, it's myself doing very, very well with its classic Microsoft. You know >>they your point. Microsoft is the king of good enough, right? They put out features. They market heavily to the I t pro on. They put out licensing packages, so you're almost foolish to not at least fry their products. And then they do roll it out. So it's good enough and then you live with it for a while. But ultimately, whenever people use Microsoft, they do have an alternative under in there for a very special case. But e don't wanna >>the king of good enough. That's a great line. I love that. I'm gonna use that. But this Babel fish thing for Aurora that is a huge dagger. Potentially, it's an escape valve for customers. They wanna leave Microsoft. But clearly, if Microsoft you're gonna get penalized by running your license on Amazon. >>If our CEO our i t c t, I'd say, Okay, I definitely want to do business with with Amazon. That's what I heard today from Jassy, and I would want to hedge my bets either with Microsoft, especially if I'm a Microsoft shop or with Google's from analytics heavy unquestionably. I'd want to hedge my bets and have some kind of 70 30 80 20 mix. >>Look, if you're Andy Jassy and he's told me my interview, do it directly. I asked this question. He was very forthright. He doesn't hide from the fact that, uh, customers have multiple clouds, but they have a primary and secondary, but they're not gonna have, like, five or six major clouds. Yeah, it's hard to get these teams trained at to begin with. So there's a hedge. There's a supplier leverage. I get that. He's totally gets that. But if you're Amazon, you're gonna have your annual conference. You really don't wanna be in the business of talking about the other guys cloud, you say hybrid, right? It's on my show. You know, like you're competing. This is there's definitely competition between Microsoft and A W s. So you gotta respect that. But yeah, of course. There's multiple clouds called hybrid eks everywhere. Uh, container service. I mean, >>especially global, right? Different cloud providers of different strengths in different regions. You know, Microsoft, very strong in the Gulf. AWS isn't you know. So if you're a global company, um, you know, then you almost by default, have to go multi cloud multiple cloud vendors because of geographic differences. Obviously, China, with its own set of cloud providers. So, you know, smaller midsize businesses could get away with one, but As soon as you become global, you have to use more. >>Well, I'm a big fan of distributed computing. I loved the large scale concept of distribute computing. You got regions. Now you've got local zones. You got I O t edge. You got cloud going on Prem Edge. It's really an edge game at this point. Greater now distributed hyper Put hyper next to anything hyper cloud on your sounds better Piper >>Cube. And the opportunities the cloud providers and Amazon, you know, certainly is leading. This is the ability to take this complex, hyper distributed world and use their management tools toe create a normalized operating simplify What would be an overly complex world about it? >>Okay, we got a break. Just quick plug. There's a big salesforce event coming up on December 10th. Check it out on the Amazon site that that plug in you watching the cube stay tuned for more coverage after this break