>>from around the globe. It's the Cube presenting Cuban cloud brought to you by silicon angle, everybody to Cuban cloud. My name is Dave Volonte, and I'll be here throughout the day with my co host, John Ferrier, who was quarantined in an undisclosed location in California. He's all good. Don't worry. Just precautionary. John, how are you doing? >>Hey, great to see you. John. Quarantine. My youngest daughter had covitz, so contact tracing. I was negative in quarantine at a friend's location. All good. >>Well, we wish you the best. Yeah, well, right. I mean, you know what's it like, John? I mean, you're away from your family. Your basically shut in, right? I mean, you go out for a walk, but you're really not in any contact with anybody. >>Correct? Yeah. I mean, basically just isolation, Um, pretty much what everyone's been kind of living on, kind of suffering through, but hopefully the vaccines are being distributed. You know, one of the things we talked about it reinvent the Amazon's cloud conference. Was the vaccine on, but just the whole workflow around that it's gonna get better. It's kind of really sucky. Here in the California area, they haven't done a good job, a lot of criticism around, how that's rolling out. And, you know, Amazon is now offering to help now that there's a new regime in the U. S. Government S o. You know, something to talk about, But certainly this has been a terrible time for Cove it and everyone in the deaths involved. But it's it's essentially pulled back the covers, if you will, on technology and you're seeing everything. Society. In fact, um, well, that's big tech MIT disinformation campaigns. All these vulnerabilities and cyber, um, accelerated digital transformation. We'll talk about a lot today, but yeah, it's totally changed the world. And I think we're in a new generation. I think this is a real inflection point, Dave. You know, modern society and the geo political impact of this is significant. You know, one of the benefits of being quarantined you'd be hanging out on these clubhouse APS, uh, late at night, listening to experts talk about what's going on, and it's interesting what's happening with with things like water and, you know, the island of Taiwan and China and U. S. Sovereignty, data, sovereignty, misinformation. So much going on to talk about. And, uh, meanwhile, companies like Mark injuries in BC firm starting a media company. What's going on? Hell freezing over. So >>we're gonna be talking about a lot of that stuff today. I mean, Cuba on cloud. It's our very first virtual editorial event we're trying to do is bring together our community. It's a it's an open forum and we're we're running the day on our 3 65 software platform. So we got a great lineup. We got CEO Seo's data Practitioners. We got a hard core technologies coming in, cloud experts, investors. We got some analysts coming in and we're creating this day long Siri's. And we've got a number of sessions that we've developed and we're gonna unpack. The future of Cloud computing in the coming decade is, John said, we're gonna talk about some of the public policy new administration. What does that mean for tech and for big tech in General? John, what can you add to that? >>Well, I think one of the things that we talked about Cove in this personal impact to me but other people as well. One of the things that people are craving right now is information factual information, truth texture that we call it. But hear this event for us, Davis, our first inaugural editorial event. Robbo, Kristen, Nicole, the entire Cube team Silicon angle, really trying to put together Morva cadence we're gonna doom or of these events where we can put out feature the best people in our community that have great fresh voices. You know, we do interview the big names Andy Jassy, Michael Dell, the billionaires with people making things happen. But it's often the people under there that are the rial newsmakers amid savory, for instance, that Google one of the most impressive technical people, he's gotta talk. He's gonna present democratization of software development in many Mawr riel people making things happen. And I think there's a communal element. We're going to do more of these. Obviously, we have, uh, no events to go to with the Cube. So we have the cube virtual software that we have been building and over years and now perfecting and we're gonna introduce that we're gonna put it to work, their dog footing it. We're gonna put that software toe work. We're gonna do a lot mawr virtual events like this Cuban cloud Cuban startup Cuban raising money. Cuban healthcare, Cuban venture capital. Always think we could do anything. Question is, what's the right story? What's the most important stories? Who's telling it and increase the aperture of the lens of the industry that we have and and expose that and fastest possible. That's what this software, you'll see more of it. So it's super exciting. We're gonna add new features like pulling people up on stage, Um, kind of bring on the clubhouse vibe and more of a community interaction with people to meet each other, and we'll roll those out. But the goal here is to just showcase it's cloud story in a way from people that are living it and providing value. So enjoy the day is gonna be chock full of presentations. We're gonna have moderated chat in these sessions, so it's an all day event so people can come in, drop out, and also that's everything's on demand immediately after the time slot. But you >>want to >>participate, come into the time slot into the cube room or breakout session. Whatever you wanna call it, it's a cube room, and the people in there chatting and having a watch party. So >>when you're in that home page when you're watching, there's a hero video there. Beneath that, there's a calendar, and you'll see that red line is that red horizontal line of vertical line is rather, it's a linear clock that will show you where we are in the day. If you click on any one of those sessions that will take you into the chat, we'll take you through those in a moment and share with you some of the guests that we have upcoming and and take you through the day what I wanted to do. John is trying to set the stage for the conversations that folks are gonna here today. And to do that, I wanna ask the guys to bring up a graphic. And I want to talk to you, John, about the progression of cloud over time and maybe go back to the beginning and review the evolution of cloud and then really talk a little bit about where we think it Z headed. So, guys, if you bring up that graphic when a W S announced s three, it was March of 2000 and six. And as you recall, John you know, nobody really. In the vendor and user community. They didn't really pay too much attention to that. And then later that year, in August, it announced E C two people really started. They started to think about a new model of computing, but they were largely, you know, chicken tires. And it was kind of bleeding edge developers that really leaned in. Um what? What were you thinking at the time? When when you saw, uh, s three e c to this retail company coming into the tech world? >>I mean, I thought it was totally crap. I'm like, this is terrible. But then at that time, I was thinking working on I was in between kind of start ups and I didn't have a lot of seed funding. And then I realized the C two was freaking awesome. But I'm like, Holy shit, this is really great because I don't need to pay a lot of cash, the Provisional Data center, or get a server. Or, you know, at that time, state of the art startup move was to buy a super micro box or some sort of power server. Um, it was well past the whole proprietary thing. But you have to assemble probably anyone with 5 to 8 grand box and go in, and we'll put a couple ghetto rack, which is basically, uh, you know, you put it into some coasting location. It's like with everybody else in the tech ghetto of hosting, still paying monthly fees and then maintaining it and provisioning that's just to get started. And then Amazon was just really easy. And then from there you just It was just awesome. I just knew Amazon would be great. They had a lot of things that they had to fix. You know, custom domains and user interface Council got better and better, but it was awesome. >>Well, what we really saw the cloud take hold from my perspective anyway, was the financial crisis in, you know, 709 It put cloud on the radar of a number of CFOs and, of course, shadow I T departments. They wanted to get stuff done and and take I t in in in, ah, pecs, bite sized chunks. So it really was. There's cloud awakening and we came out of that financial crisis, and this we're now in this 10 year plus boom um, you know, notwithstanding obviously the economic crisis with cove it. But much of it was powered by the cloud in the decade. I would say it was really about I t transformation. And it kind of ironic, if you will, because the pandemic it hits at the beginning of this decade, >>and it >>creates this mandate to go digital. So you've you've said a lot. John has pulled forward. It's accelerated this industry transformation. Everybody talks about that, but and we've highlighted it here in this graphic. It probably would have taken several more years to mature. But overnight you had this forced march to digital. And if you weren't a digital business, you were kind of out of business. And and so it's sort of here to stay. How do you see >>You >>know what this evolution and what we can expect in the coming decades? E think it's safe to say the last 10 years defined by you know, I t transformation. That's not gonna be the same in the coming years. How do you see it? >>It's interesting. I think the big tech companies are on, but I think this past election, the United States shows um, the power that technology has. And if you look at some of the main trends in the enterprise specifically around what clouds accelerating, I call the second wave of innovations coming where, um, it's different. It's not what people expect. Its edge edge computing, for instance, has talked about a lot. But industrial i o t. Is really where we've had a lot of problems lately in terms of hacks and malware and just just overall vulnerabilities, whether it's supply chain vulnerabilities, toe actual disinformation, you know, you know, vulnerabilities inside these networks s I think this network effects, it's gonna be a huge thing. I think the impact that tech will have on society and global society geopolitical things gonna be also another one. Um, I think the modern application development of how applications were written with data, you know, we always been saying this day from the beginning of the Cube data is his integral part of the development process. And I think more than ever, when you think about cloud and edge and this distributed computing paradigm, that cloud is now going next level with is the software and how it's written will be different. You gotta handle things like, where's the compute component? Is it gonna be at the edge with all the server chips, innovations that Amazon apple intel of doing, you're gonna have compute right at the edge, industrial and kind of human edge. How does that work? What's Leighton see to that? It's it really is an edge game. So to me, software has to be written holistically in a system's impact on the way. Now that's not necessarily nude in the computer science and in the tech field, it's just gonna be deployed differently. So that's a complete rewrite, in my opinion of the software applications. Which is why you're seeing Amazon Google VM Ware really pushing Cooper Netease and these service messes in the micro Services because super critical of this technology become smarter, automated, autonomous. And that's completely different paradigm in the old full stack developer, you know, kind of model. You know, the full stack developer, his ancient. There's no such thing as a full stack developer anymore, in my opinion, because it's a half a stack because the cloud takes up the other half. But no one wants to be called the half stack developer because it doesn't sound as good as Full Stack, but really Cloud has eliminated the technology complexity of what a full stack developer used to dio. Now you can manage it and do things with it, so you know, there's some work to done, but the heavy lifting but taking care of it's the top of the stack that I think is gonna be a really critical component. >>Yeah, and that that sort of automation and machine intelligence layer is really at the top of the stack. This this thing becomes ubiquitous, and we now start to build businesses and new processes on top of it. I wanna I wanna take a look at the Big Three and guys, Can we bring up the other The next graphic, which is an estimate of what the revenue looks like for the for the Big three. And John, this is I asked and past spend for the Big Three Cloud players. And it's It's an estimate that we're gonna update after earning seasons, and I wanna point a couple things out here. First is if you look at the combined revenue production of the Big Three last year, it's almost 80 billion in infrastructure spend. I mean, think about that. That Z was that incremental spend? No. It really has caused a lot of consolidation in the on Prem data center business for guys like Dell. And, you know, um, see, now, part of the LHP split up IBM Oracle. I mean, it's etcetera. They've all felt this sea change, and they had to respond to it. I think the second thing is you can see on this data. Um, it's true that azure and G C P they seem to be growing faster than a W s. We don't know the exact numbers >>because >>A W S is the only company that really provides a clean view of i s and pass. Whereas Microsoft and Google, they kind of hide the ball in their numbers. I mean, I don't blame them because they're behind, but they do leave breadcrumbs and clues about growth rates and so forth. And so we have other means of estimating, but it's it's undeniable that azure is catching up. I mean, it's still quite distance the third thing, and before I want to get your input here, John is this is nuanced. But despite the fact that Azure and Google the growing faster than a W s. You can see those growth rates. A W s I'll call this out is the only company by our estimates that grew its business sequentially last quarter. Now, in and of itself, that's not significant. But what is significant is because AWS is so large there $45 billion last year, even if the slower growth rates it's able to grow mawr and absolute terms than its competitors, who are basically flat to down sequentially by our estimates. Eso So that's something that I think is important to point out. Everybody focuses on the growth rates, but it's you gotta look at also the absolute dollars and, well, nonetheless, Microsoft in particular, they're they're closing the gap steadily, and and we should talk more about the competitive dynamics. But I'd love to get your take on on all this, John. >>Well, I mean, the clouds are gonna win right now. Big time with the one the political climate is gonna be favoring Big check. But more importantly, with just talking about covert impact and celebrating the digital transformation is gonna create a massive rising tide. It's already happening. It's happening it's happening. And again, this shift in programming, uh, models are gonna really kinda accelerating, create new great growth. So there's no doubt in my mind of all three you're gonna win big, uh, in the future, they're just different, You know, the way they're going to market position themselves, they have to be. Google has to be a little bit different than Amazon because they're smaller and they also have different capabilities, then trying to catch up. So if you're Google or Microsoft, you have to have a competitive strategy to decide. How do I wanna ride the tide If you will put the rising tide? Well, if I'm Amazon, I mean, if I'm Microsoft and Google, I'm not going to try to go frontal and try to copy Amazon because Amazon is just pounding lead of features and scale and they're different. They were, I would say, take advantage of the first mover of pure public cloud. They really awesome. It passed and I, as they've integrated in Gardner, now reports and integrated I as and passed components. So Gardner finally got their act together and said, Hey, this is really one thing. SAS is completely different animal now Microsoft Super Smart because they I think they played the right card. They have a huge installed base converted to keep office 3 65 and move sequel server and all their core jewels into the cloud as fast as possible, clarified while filling in the gaps on the product side to be cloud. So you know, as you're doing trends job, they're just it's just pedal as fast as you can. But Microsoft is really in. The strategy is just go faster trying. Keep pedaling fast, get the features, feature velocity and try to make it high quality. Google is a little bit different. They have a little power base in terms of their network of strong, and they have a lot of other big data capabilities, so they have to use those to their advantage. So there is. There is there is competitive strategy game application happening with these companies. It's not like apples, the apples, In my opinion, it never has been, and I think that's funny that people talk about it that way. >>Well, you're bringing up some great points. I want guys bring up the next graphic because a lot of things that John just said are really relevant here. And what we're showing is that's a survey. Data from E. T. R R Data partners, like 1400 plus CEOs and I T buyers and on the vertical axis is this thing called Net score, which is a measure of spending momentum. And the horizontal axis is is what's called market share. It's a measure of the pervasiveness or, you know, number of mentions in the data set. There's a couple of key points I wanna I wanna pick up on relative to what John just said. So you see A W S and Microsoft? They stand alone. I mean, they're the hyper scale er's. They're far ahead of the pack and frankly, they have fall down, toe, lose their lead. They spend a lot on Capex. They got the flywheel effects going. They got both spending velocity and large market shares, and so, but they're taking a different approach. John, you're right there living off of their SAS, the state, their software state, Andi, they're they're building that in to their cloud. So they got their sort of a captive base of Microsoft customers. So they've got that advantage. They also as we'll hear from from Microsoft today. They they're building mawr abstraction layers. Andy Jassy has said We don't wanna be in that abstraction layer business. We wanna have access to those, you know, fine grain primitives and eso at an AP level. So so we can move fast with the market. But but But so those air sort of different philosophies, John? >>Yeah. I mean, you know, people who know me know that I love Amazon. I think their product is superior at many levels on in its way that that has advantages again. They have a great sass and ecosystem. They don't really have their own SAS play, although they're trying to add some stuff on. I've been kind of critical of Microsoft in the past, but one thing I'm not critical of Microsoft, and people can get this wrong in the marketplace. Actually, in the journalism world and also in just some other analysts, Microsoft has always had large scale eso to say that Microsoft never had scale on that Amazon owned the monopoly on our franchise on scales wrong. Microsoft had scale from day one. Their business was always large scale global. They've always had infrastructure with MSN and their search and the distributive how they distribute browsers and multiple countries. Remember they had the lock on the operating system and the browser for until the government stepped in in 1997. And since 1997 Microsoft never ever not invested in infrastructure and scale. So that whole premise that they don't compete well there is wrong. And I think that chart demonstrates that there, in there in the hyper scale leadership category, hands down the question that I have. Is that there not as good and making that scale integrate in because they have that legacy cards. This is the classic innovator's dilemma. Clay Christensen, right? So I think they're doing a good job. I think their strategy sound. They're moving as fast as they can. But then you know they're not gonna come out and say We don't have the best cloud. Um, that's not a marketing strategy. Have to kind of hide in this and get better and then double down on where they're winning, which is. Clients are converting from their legacy at the speed of Microsoft, and they have a huge client base, So that's why they're stopping so high That's why they're so good. >>Well, I'm gonna I'm gonna give you a little preview. I talked to gear up your f Who's gonna come on today and you'll see I I asked him because the criticism of Microsoft is they're, you know, they're just good enough. And so I asked him, Are you better than good enough? You know, those are fighting words if you're inside of Microsoft, but so you'll you'll have to wait to see his answer. Now, if you guys, if you could bring that that graphic back up I wanted to get into the hybrid zone. You know where the field is. Always got >>some questions coming in on chat, Dave. So we'll get to those >>great Awesome. So just just real quick Here you see this hybrid zone, this the field is bunched up, and the other companies who have a large on Prem presence and have been forced to initiate some kind of coherent cloud strategy included. There is Michael Michael, multi Cloud, and Google's there, too, because they're far behind and they got to take a different approach than a W s. But as you can see, so there's some real progress here. VM ware cloud on AWS stands out, as does red hat open shift. You got VM Ware Cloud, which is a VCF Cloud Foundation, even Dell's cloud. And you'd expect HP with Green Lake to be picking up momentum in the future quarters. And you've got IBM and Oracle, which there you go with the innovator's dilemma. But there, at least in the cloud game, and we can talk about that. But so, John, you know, to your point, you've gotta have different strategies. You're you're not going to take out the big too. So you gotta play, connect your print your on Prem to your cloud, your hybrid multi cloud and try to create new opportunities and new value there. >>Yeah, I mean, I think we'll get to the question, but just that point. I think this Zeri Chen's come on the Cube many times. We're trying to get him to come on lunch today with Features startup, but he's always said on the Q B is a V C at Greylock great firm. Jerry's Cloud genius. He's been there, but he made a point many, many years ago. It's not a winner. Take all the winner. Take most, and the Big Three maybe put four or five in there. We'll take most of the markets here. But I think one of the things that people are missing and aren't talking about Dave is that there's going to be a second tier cloud, large scale model. I don't want to say tear to cloud. It's coming to sound like a sub sub cloud, but a new category of cloud on cloud, right? So meaning if you get a snowflake, did I think this is a tale? Sign to what's coming. VM Ware Cloud is a native has had huge success, mainly because Amazon is essentially enabling them to be successful. So I think is going to be a wave of a more of a channel model of indirect cloud build out where companies like the Cube, potentially for media or others, will build clouds on top of the cloud. So if Google, Microsoft and Amazon, whoever is the first one to really enable that okay, we'll do extremely well because that means you can compete with their scale and create differentiation on top. So what snowflake did is all on Amazon now. They kind of should go to azure because it's, you know, politically correct that have multiple clouds and distribution and business model shifts. But to get that kind of performance they just wrote on Amazon. So there's nothing wrong with that. Because you're getting paid is variable. It's cap ex op X nice categorization. So I think that's the way that we're watching. I think it's super valuable, I think will create some surprises in terms of who might come out of the woodwork on be a leader in a category. Well, >>your timing is perfect, John and we do have some questions in the chat. But before we get to that, I want to bring in Sargi Joe Hall, who's a contributor to to our community. Sargi. Can you hear us? All right, so we got, uh, while >>bringing in Sarpy. Let's go down from the questions. So the first question, Um, we'll still we'll get the student second. The first question. But Ronald ask, Can a vendor in 2021 exist without a hybrid cloud story? Well, story and capabilities. Yes, they could live with. They have to have a story. >>Well, And if they don't own a public cloud? No. No, they absolutely cannot. Uh hey, Sergey. How you doing, man? Good to see you. So, folks, let me let me bring in Sergeant Kohala. He's a He's a cloud architect. He's a practitioner, He's worked in as a technologist. And there's a frequent guest on on the Cube. Good to see you, my friend. Thanks for taking the time with us. >>And good to see you guys to >>us. So we were kind of riffing on the competitive landscape we got. We got so much to talk about this, like, it's a number of questions coming in. Um, but Sargi we wanna talk about you know, what's happening here in Cloud Land? Let's get right into it. I mean, what do you guys see? I mean, we got yesterday. New regime, new inaug inauguration. Do you do you expect public policy? You'll start with you Sargi to have What kind of effect do you think public policy will have on, you know, cloud generally specifically, the big tech companies, the tech lash. Is it gonna be more of the same? Or do you see a big difference coming? >>I think that there will be some changing narrative. I believe on that. is mainly, um, from the regulators side. A lot has happened in one month, right? So people, I think are losing faith in high tech in a certain way. I mean, it doesn't, uh, e think it matters with camp. You belong to left or right kind of thing. Right? But parlor getting booted out from Italy s. I think that was huge. Um, like, how do you know that if a cloud provider will not boot you out? Um, like, what is that line where you draw the line? What are the rules? I think that discussion has to take place. Another thing which has happened in the last 23 months is is the solar winds hack, right? So not us not sort acknowledging that I was Russia and then wish you watching it now, new administration might have a different sort of Boston on that. I think that's huge. I think public public private partnership in security arena will emerge this year. We have to address that. Yeah, I think it's not changing. Uh, >>economics economy >>will change gradually. You know, we're coming out off pandemic. The money is still cheap on debt will not be cheap. for long. I think m and a activity really will pick up. So those are my sort of high level, Uh, >>thank you. I wanna come back to them. And because there's a question that chat about him in a But, John, how do you see it? Do you think Amazon and Google on a slippery slope booting parlor off? I mean, how do they adjudicate between? Well, what's happening in parlor? Uh, anything could happen on clubhouse. Who knows? I mean, can you use a I to find that stuff? >>Well, that's I mean, the Amazons, right? Hiding right there bunkered in right now from that bad, bad situation. Because again, like people we said Amazon, these all three cloud players win in the current environment. Okay, Who wins with the U. S. With the way we are China, Russia, cloud players. Okay, let's face it, that's the reality. So if I wanted to reset the world stage, you know what better way than the, you know, change over the United States economy, put people out of work, make people scared, and then reset the entire global landscape and control all with cash? That's, you know, conspiracy theory. >>So you see the riches, you see the riches, get the rich, get richer. >>Yeah, well, that's well, that's that. That's kind of what's happening, right? So if you start getting into this idea that you can't actually have an app on site because the reason now I'm not gonna I don't know the particular parlor, but apparently there was a reason. But this is dangerous, right? So what? What that's gonna do is and whether it's right or wrong or not, whether political opinion is it means that they were essentially taken offline by people that weren't voted for that. Weren't that when people didn't vote for So that's not a democracy, right? So that's that's a different kind of regime. What it's also going to do is you also have this groundswell of decentralized thinking, right. So you have a whole wave of crypto and decentralized, um, cyber punks out there who want to decentralize it. So all of this stuff in January has created a huge counterculture, and I had predicted this so many times in the Cube. David counterculture is coming and and you already have this kind of counterculture between centralized and decentralized thinking and so I think the Amazon's move is dangerous at a fundamental level. Because if you can't get it, if you can't get buy domain names and you're completely blackballed by by organized players, that's a Mafia, in my opinion. So, uh, and that and it's also fuels the decentralized move because people say, Hey, if that could be done to them, it could be done to me. Just the fact that it could be done will promote a swing in the other direction. I >>mean, independent of of, you know, again, somebody said your political views. I mean Parlor would say, Hey, we're trying to clean this stuff up now. Maybe they didn't do it fast enough, but you think about how new parlor is. You think about the early days of Twitter and Facebook, so they were sort of at a disadvantage. Trying to >>have it was it was partly was what it was. It was a right wing stand up job of standing up something quick. Their security was terrible. If you look at me and Cory Quinn on be great to have him, and he did a great analysis on this, because if you look the lawsuit was just terrible. Security was just a half, asshole. >>Well, and the experience was horrible. I mean, it's not It was not a great app, but But, like you said, it was a quick stew. Hand up, you know, for an agenda. But nonetheless, you know, to start, get to your point earlier. It's like, you know, Are they gonna, you know, shut me down? If I say something that's, you know, out of line, or how do I control that? >>Yeah, I remember, like, 2019, we involved closing sort of remarks. I was there. I was saying that these companies are gonna be too big to fail. And also, they're too big for other nations to do business with. In a way, I think MNCs are running the show worldwide. They're running the government's. They are way. Have seen the proof of that in us this year. Late last year and this year, um, Twitter last night blocked Chinese Ambassador E in us. Um, from there, you know, platform last night and I was like, What? What's going on? So, like, we used to we used to say, like the Chinese company, tech companies are in bed with the Chinese government. Right. Remember that? And now and now, Actually, I think Chinese people can say the same thing about us companies. Uh, it's not a good thing. >>Well, let's >>get some question. >>Let's get some questions from the chat. Yeah. Thank you. One is on M and a subject you mentioned them in a Who do you see is possible emanate targets. I mean, I could throw a couple out there. Um, you know, some of the cdn players, maybe aka my You know, I like I like Hashi Corp. I think they're doing some really interesting things. What do you see? >>Nothing. Hashi Corp. And anybody who's doing things in the periphery is a candidate for many by the big guys, you know, by the hyper scholars and number two tier two or five hyper scholars. Right. Uh, that's why sales forces of the world and stuff like that. Um, some some companies, which I thought there will be a target, Sort of. I mean, they target they're getting too big, because off their evaluations, I think how she Corpuz one, um, >>and >>their bunch in the networking space. Uh, well, Tara, if I say the right that was acquired by at five this week, this week or last week, Actually, last week for $500 million. Um, I know they're founder. So, like I found that, Yeah, there's a lot going on on the on the network side on the anything to do with data. Uh, that those air too hard areas in the cloud arena >>data, data protection, John, any any anything you could adhere. >>And I think I mean, I think ej ej is gonna be where the gaps are. And I think m and a activity is gonna be where again, the bigger too big to fail would agree with you on that one. But we're gonna look at white Spaces and say a white space for Amazon is like a monster space for a start up. Right? So you're gonna have these huge white spaces opportunities, and I think it's gonna be an M and a opportunity big time start ups to get bought in. Given the speed on, I think you're gonna see it around databases and around some of these new service meshes and micro services. I mean, >>they there's a There's a question here, somebody's that dons asking why is Google who has the most pervasive tech infrastructure on the planet. Not at the same level of other to hyper scale is I'll give you my two cents is because it took him a long time to get their heads out of their ads. I wrote a piece of around that a while ago on they just they figured out how to learn the enterprise. I mean, John, you've made this point a number of times, but they just and I got a late start. >>Yeah, they're adding a lot of people. If you look at their who their hiring on the Google Cloud, they're adding a lot of enterprise chops in there. They realized this years ago, and we've talked to many of the top leaders, although Curry and hasn't yet sit down with us. Um, don't know what he's hiding or waiting for, but they're clearly not geared up to chicken Pete. You can see it with some some of the things that they're doing, but I mean competed the level of Amazon, but they have strength and they're playing their strength, but they definitely recognize that they didn't have the enterprise motions and people in the DNA and that David takes time people in the enterprise. It's not for the faint of heart. It's unique details that are different. You can't just, you know, swing the Google playbook and saying We're gonna home The enterprises are text grade. They knew that years ago. So I think you're going to see a good year for Google. I think you'll see a lot of change. Um, they got great people in there. On the product marketing side is Dev Solution Architects, and then the SRE model that they have perfected has been strong. And I think security is an area that they could really had a lot of value it. So, um always been a big fan of their huge network and all the intelligence they have that they could bring to bear on security. >>Yeah, I think Google's problem main problem that to actually there many, but one is that they don't They don't have the boots on the ground as compared to um, Microsoft, especially an Amazon actually had a similar problem, but they had a wide breath off their product portfolio. I always talk about feature proximity in cloud context, like if you're doing one thing. You wanna do another thing? And how do you go get that feature? Do you go to another cloud writer or it's right there where you are. So I think Amazon has the feature proximity and they also have, uh, aske Compared to Google, there's skills gravity. Larger people are trained on AWS. I think Google is trying there. So second problem Google is having is that that they're they're more focused on, I believe, um, on the data science part on their sort of skipping the cool components sort of off the cloud, if you will. The where the workloads needs, you know, basic stuff, right? That's like your compute storage and network. And that has to be well, talk through e think e think they will do good. >>Well, so later today, Paul Dillon sits down with Mids Avery of Google used to be in Oracle. He's with Google now, and he's gonna push him on on the numbers. You know, you're a distant third. Does that matter? And of course, you know, you're just a preview of it's gonna say, Well, no, we don't really pay attention to that stuff. But, John, you said something earlier that. I think Jerry Chen made this comment that, you know, Is it a winner? Take all? No, but it's a winner. Take a lot. You know the number two is going to get a big chunk of the pie. It appears that the markets big enough for three. But do you? Does Google have to really dramatically close the gap on be a much, much closer, you know, to the to the leaders in orderto to compete in this race? Or can they just kind of continue to bump along, siphon off the ad revenue? Put it out there? I mean, I >>definitely can compete. I think that's like Google's in it. Then it they're not. They're not caving, right? >>So But But I wrote I wrote recently that I thought they should even even put mawr oven emphasis on the cloud. I mean, maybe maybe they're already, you know, doubling down triple down. I just I think that is a multi trillion dollar, you know, future for the industry. And, you know, I think Google, believe it or not, could even do more. Now. Maybe there's just so much you could dio. >>There's a lot of challenges with these company, especially Google. They're in Silicon Valley. We have a big Social Justice warrior mentality. Um, there's a big debate going on the in the back channels of the tech scene here, and that is that if you want to be successful in cloud, you have to have a good edge strategy, and that involves surveillance, use of data and pushing the privacy limits. Right? So you know, Google has people within the country that will protest contract because AI is being used for war. Yet we have the most unstable geopolitical seen that I've ever witnessed in my lifetime going on right now. So, um, don't >>you think that's what happened with parlor? I mean, Rob Hope said, Hey, bar is pretty high to kick somebody off your platform. The parlor went over the line, but I would also think that a lot of the employees, whether it's Google AWS as well, said, Hey, why are we supporting you know this and so to your point about social justice, I mean, that's not something. That >>parlor was not just social justice. They were trying to throw the government. That's Rob e. I think they were in there to get selfies and being protesters. But apparently there was evidence from what I heard in some of these clubhouse, uh, private chats. Waas. There was overwhelming evidence on parlor. >>Yeah, but my point is that the employee backlash was also a factor. That's that's all I'm saying. >>Well, we have Google is your Google and you have employees to say we will boycott and walk out if you bid on that jet I contract for instance, right, But Microsoft one from maybe >>so. I mean, that's well, >>I think I think Tom Poole's making a really good point here, which is a Google is an alternative. Thio aws. The last Google cloud next that we were asked at they had is all virtual issue. But I saw a lot of I T practitioners in the audience looking around for an alternative to a W s just seeing, though, we could talk about Mano Cloud or Multi Cloud, and Andy Jassy has his his narrative around, and he's true when somebody goes multiple clouds, they put you know most of their eggs in one basket. Nonetheless, I think you know, Google's got a lot of people interested in, particularly in the analytic side, um, in in an alternative, hedging their bets eso and particularly use cases, so they should be able to do so. I guess my the bottom line here is the markets big enough to have Really? You don't have to be the Jack Welch. I gotta be number one and number two in the market. Is that the conclusion here? >>I think so. But the data gravity and the skills gravity are playing against them. Another problem, which I didn't want a couple of earlier was Google Eyes is that they have to boot out AWS wherever they go. Right? That is a huge challenge. Um, most off the most off the Fortune 2000 companies are already using AWS in one way or another. Right? So they are the multi cloud kind of player. Another one, you know, and just pure purely somebody going 200% Google Cloud. Uh, those cases are kind of pure, if you will. >>I think it's gonna be absolutely multi cloud. I think it's gonna be a time where you looked at the marketplace and you're gonna think in terms of disaster recovery, model of cloud or just fault tolerant capabilities or, you know, look at the parlor, the next parlor. Or what if Amazon wakes up one day and said, Hey, I don't like the cubes commentary on their virtual events, so shut them down. We should have a fail over to Google Cloud should Microsoft and Option. And one of people in Microsoft ecosystem wants to buy services from us. We have toe kind of co locate there. So these are all open questions that are gonna be the that will become certain pretty quickly, which is, you know, can a company diversify their computing An i t. In a way that works. And I think the momentum around Cooper Netease you're seeing as a great connective tissue between, you know, having applications work between clouds. Right? Well, directionally correct, in my opinion, because if I'm a company, why wouldn't I wanna have choice? So >>let's talk about this. The data is mixed on that. I'll share some data, meaty our data with you. About half the companies will say Yeah, we're spreading the wealth around to multiple clouds. Okay, That's one thing will come back to that. About the other half were saying, Yeah, we're predominantly mono cloud we didn't have. The resource is. But what I think going forward is that that what multi cloud really becomes. And I think John, you mentioned Snowflake before. I think that's an indicator of what what true multi cloud is going to look like. And what Snowflake is doing is they're building abstraction, layer across clouds. Ed Walsh would say, I'm standing on the shoulders of Giants, so they're basically following points of presence around the globe and building their own cloud. They call it a data cloud with a global mesh. We'll hear more about that later today, but you sign on to that cloud. So they're saying, Hey, we're gonna build value because so many of Amazon's not gonna build that abstraction layer across multi clouds, at least not in the near term. So that's a really opportunity for >>people. I mean, I don't want to sound like I'm dating myself, but you know the date ourselves, David. I remember back in the eighties, when you had open systems movement, right? The part of the whole Revolution OS I open systems interconnect model. At that time, the networking stacks for S N A. For IBM, decadent for deck we all know that was a proprietary stack and then incomes TCP I p Now os I never really happened on all seven layers, but the bottom layers standardized. Okay, that was huge. So I think if you look at a W s or some of the comments in the chat AWS is could be the s n a. Depends how you're looking at it, right? And you could say they're open. But in a way, they want more Amazon. So Amazon's not out there saying we love multi cloud. Why would they promote multi cloud? They are a one of the clouds they want. >>That's interesting, John. And then subject is a cloud architect. I mean, it's it is not trivial to make You're a data cloud. If you're snowflake, work on AWS work on Google. Work on Azure. Be seamless. I mean, certainly the marketing says that, but technically, that's not trivial. You know, there are latent see issues. Uh, you know, So that's gonna take a while to develop. What? Do your thoughts there? >>I think that multi cloud for for same workload and multi cloud for different workloads are two different things. Like we usually put multiple er in one bucket, right? So I think you're right. If you're trying to do multi cloud for the same workload, that's it. That's Ah, complex, uh, problem to solve architecturally, right. You have to have a common ap ice and common, you know, control playing, if you will. And we don't have that yet, and then we will not have that for a for at least one other couple of years. So, uh, if you if you want to do that, then you have to go to the lower, lowest common denominator in technical sort of stock, if you will. And then you're not leveraging the best of the breed technology off their from different vendors, right? I believe that's a hard problem to solve. And in another thing, is that that that I always say this? I'm always on the death side, you know, developer side, I think, uh, two deaths. Public cloud is a proxy for innovative culture. Right. So there's a catch phrase I have come up with today during shower eso. I think that is true. And then people who are companies who use the best of the breed technologies, they can attract the these developers and developers are the Mazen's off This digital sort of empires, amazingly, is happening there. Right there they are the Mazen's right. They head on the bricks. I think if you don't appeal to developers, if you don't but extensive for, like, force behind educating the market, you can't you can't >>put off. It's the same game Stepping story was seeing some check comments. Uh, guard. She's, uh, linked in friend of mine. She said, Microsoft, If you go back and look at the Microsoft early days to the developer Point they were, they made their phones with developers. They were a software company s Oh, hey, >>forget developers, developers, developers. >>You were if you were in the developer ecosystem, you were treated his gold. You were part of the family. If you were outside that world, you were competitors, and that was ruthless times back then. But they again they had. That was where it was today. Look at where the software defined businesses and starve it, saying it's all about being developer lead in this new way to program, right? So the cloud next Gen Cloud is going to look a lot like next Gen Developer and all the different tools and techniques they're gonna change. So I think, yes, this kind of developer ecosystem will be harnessed, and that's the power source. It's just gonna look different. So, >>Justin, Justin in the chat has a comment. I just want to answer the question about elastic thoughts on elastic. Um, I tell you, elastic has momentum uh, doing doing very well in the market place. Thea Elk Stack is a great alternative that people are looking thio relative to Splunk. Who people complain about the pricing. Of course it's plunks got the easy button, but it is getting increasingly expensive. The problem with elk stack is you know, it's open source. It gets complicated. You got a shard, the databases you gotta manage. It s Oh, that's what Ed Walsh's company chaos searches is all about. But elastic has some riel mo mentum in the marketplace right now. >>Yeah, you know, other things that coming on the chat understands what I was saying about the open systems is kubernetes. I always felt was that is a bad metaphor. But they're with me. That was the TCP I peep In this modern era, C t c p I p created that that the disruptor to the S N A s and the network protocols that were proprietary. So what KUBERNETES is doing is creating a connective tissue between clouds and letting the open source community fill in the gaps in the middle, where kind of way kind of probably a bad analogy. But that's where the disruption is. And if you look at what's happened since Kubernetes was put out there, what it's become kind of de facto and standard in the sense that everyone's rallying around it. Same exact thing happened with TCP was people were trashing it. It is terrible, you know it's not. Of course they were trashed because it was open. So I find that to be very interesting. >>Yeah, that's a good >>analogy. E. Thinks the R C a cable. I used the R C. A cable analogy like the VCRs. When they started, they, every VC had had their own cable, and they will work on Lee with that sort of plan of TV and the R C. A cable came and then now you can put any TV with any VCR, and the VCR industry took off. There's so many examples out there around, uh, standards And how standards can, you know, flair that fire, if you will, on dio for an industry to go sort of wild. And another trend guys I'm seeing is that from the consumer side. And let's talk a little bit on the consuming side. Um, is that the The difference wouldn't be to B and B to C is blood blurred because even the physical products are connected to the end user Like my door lock, the August door lock I didn't just put got get the door lock and forget about that. Like I I value the expedience it gives me or problems that gives me on daily basis. So I'm close to that vendor, right? So So the middle men, uh, middle people are getting removed from from the producer off the technology or the product to the consumer. Even even the sort of big grocery players they have their APs now, uh, how do you buy stuff and how it's delivered and all that stuff that experience matters in that context, I think, um, having, uh, to be able to sell to thes enterprises from the Cloud writer Breuder's. They have to have these case studies or all these sample sort off reference architectures and stuff like that. I think whoever has that mawr pushed that way, they are doing better like that. Amazon is Amazon. Because of that reason, I think they have lot off sort off use cases about on top of them. And they themselves do retail like crazy. Right? So and other things at all s. So I think that's a big trend. >>Great. Great points are being one of things. There's a question in there about from, uh, Yaden. Who says, uh, I like the developer Lead cloud movement, But what is the criticality of the executive audience when educating the marketplace? Um, this comes up a lot in some of my conversations around automation. So automation has been a big wave to automate this automate everything. And then everything is a service has become kind of kind of the the executive suite. Kind of like conversation we need to make everything is a service in our business. You seeing people move to that cloud model. Okay, so the executives think everything is a services business strategy, which it is on some level, but then, when they say Take that hill, do it. Developers. It's not that easy. And this is where a lot of our cube conversations over the past few months have been, especially during the cova with cute virtual. This has come up a lot, Dave this idea, and start being around. It's easy to say everything is a service but will implement it. It's really hard, and I think that's where the developer lead Connection is where the executive have to understand that in order to just say it and do it are two different things. That digital transformation. That's a big part of it. So I think that you're gonna see a lot of education this year around what it means to actually do that and how to implement it. >>I'd like to comment on the as a service and subject. Get your take on it. I mean, I think you're seeing, for instance, with HP Green Lake, Dell's come out with Apex. You know IBM as its utility model. These companies were basically taking a page out of what I what I would call a flawed SAS model. If you look at the SAS players, whether it's salesforce or workday, service now s a P oracle. These models are They're really They're not cloud pricing models. They're they're basically you got to commit to a term one year, two year, three year. We'll give you a discount if you commit to the longer term. But you're locked in on you. You probably pay upfront. Or maybe you pay quarterly. That's not a cloud pricing model. And that's why I mean, they're flawed. You're seeing companies like Data Dog, for example. Snowflake is another one, and they're beginning to price on a consumption basis. And that is, I think, one of the big changes that we're going to see this decade is that true cloud? You know, pay by the drink pricing model and to your point, john toe, actually implement. That is, you're gonna need a whole new layer across your company on it is quite complicated it not even to mention how you compensate salespeople, etcetera. The a p. I s of your product. I mean, it is that, but that is a big sea change that I see coming. Subject your >>thoughts. Yeah, I think like you couldn't see it. And like some things for this big tech exacts are hidden in the plain >>sight, right? >>They don't see it. They they have blind spots, like Look at that. Look at Amazon. They went from Melissa and 200 millisecond building on several s, Right, Right. And then here you are, like you're saying, pay us for the whole year. If you don't use the cloud, you lose it or will pay by month. Poor user and all that stuff like that that those a role models, I think these players will be forced to use that term pricing like poor minute or for a second, poor user. That way, I think the Salesforce moral is hybrid. They're struggling in a way. I think they're trying to bring the platform by doing, you know, acquisition after acquisition to be a platform for other people to build on top off. But they're having a little trouble there because because off there, such pricing and little closeness, if you will. And, uh, again, I'm coming, going, going back to developers like, if you are not appealing to developers who are writing the latest and greatest code and it is open enough, by the way open and open source are two different things that we all know that. So if your platform is not open enough, you will have you know, some problems in closing the deals. >>E. I want to just bring up a question on chat around from Justin didn't fitness. Who says can you touch on the vertical clouds? Has your offering this and great question Great CP announcing Retail cloud inventions IBM Athena Okay, I'm a huge on this point because I think this I'm not saying this for years. Cloud computing is about horizontal scalability and vertical specialization, and that's absolutely clear, and you see all the clouds doing it. The vertical rollouts is where the high fidelity data is, and with machine learning and AI efforts coming out, that's accelerated benefits. There you have tow, have the vertical focus. I think it's super smart that clouds will have some sort of vertical engine, if you will in the clouds and build on top of a control playing. Whether that's data or whatever, this is clearly the winning formula. If you look at all the successful kind of ai implementations, the ones that have access to the most data will get the most value. So, um if you're gonna have a data driven cloud you have tow, have this vertical feeling, Um, in terms of verticals, the data on DSO I think that's super important again, just generally is a strategy. I think Google doing a retail about a super smart because their whole pitches were not Amazon on. Some people say we're not Google, depending on where you look at. So every of these big players, they have dominance in the areas, and that's scarce. Companies and some companies will never go to Amazon for that reason. Or some people never go to Google for other reasons. I know people who are in the ad tech. This is a black and we're not. We're not going to Google. So again, it is what it is. But this idea of vertical specialization relevant in super >>forts, I want to bring to point out to sessions that are going on today on great points. I'm glad you asked that question. One is Alan. As he kicks off at 1 p.m. Eastern time in the transformation track, he's gonna talk a lot about the coming power of ecosystems and and we've talked about this a lot. That that that to compete with Amazon, Google Azure, you've gotta have some kind of specialization and vertical specialization is a good one. But of course, you see in the big Big three also get into that. But so he's talking at one o'clock and then it at 3 36 PM You know this times are strange, but e can explain that later Hillary Hunter is talking about she's the CTO IBM I B M's ah Financial Cloud, which is another really good example of specifying vertical requirements and serving. You know, an audience subject. I think you have some thoughts on this. >>Actually, I lost my thought. E >>think the other piece of that is data. I mean, to the extent that you could build an ecosystem coming back to Alan Nancy's premise around data that >>billions of dollars in >>their day there's billions of dollars and that's the title of the session. But we did the trillion dollar baby post with Jazzy and said Cloud is gonna be a trillion dollars right? >>And and the point of Alan Answer session is he's thinking from an individual firm. Forget the millions that you're gonna save shifting to the cloud on cost. There's billions in ecosystems and operating models. That's >>absolutely the business value. Now going back to my half stack full stack developer, is the business value. I've been talking about this on the clubhouses a lot this past month is for the entrepreneurs out there the the activity in the business value. That's the new the new intellectual property is the business logic, right? So if you could see innovations in how work streams and workflow is gonna be a configured differently, you have now large scale cloud specialization with data, you can move quickly and take territory. That's much different scenario than a decade ago, >>at the point I was trying to make earlier was which I know I remember, is that that having the horizontal sort of features is very important, as compared to having vertical focus. You know, you're you're more healthcare focused like you. You have that sort of needs, if you will, and you and our auto or financials and stuff like that. What Google is trying to do, I think that's it. That's a good thing. Do cook up the reference architectures, but it's a bad thing in a way that you drive drive away some developers who are most of the developers at 80 plus percent, developers are horizontal like you. Look at the look into the psyche of a developer like you move from company to company. And only few developers will say I will stay only in health care, right? So I will only stay in order or something of that, right? So they you have to have these horizontal capabilities which can be applied anywhere on then. On top >>of that, I think that's true. Sorry, but I'll take a little bit different. Take on that. I would say yes, that's true. But remember, remember the old school application developer Someone was just called in Application developer. All they did was develop applications, right? They pick the framework, they did it right? So I think we're going to see more of that is just now mawr of Under the Covers developers. You've got mawr suffer defined networking and software, defined storage servers and cloud kubernetes. And it's kind of like under the hood. But you got your, you know, classic application developer. I think you're gonna see him. A lot of that come back in a way that's like I don't care about anything else. And that's the promise of cloud infrastructure is code. So I think this both. >>Hey, I worked. >>I worked at people solved and and I still today I say into into this context, I say E r P s are the ultimate low code. No code sort of thing is right. And what the problem is, they couldn't evolve. They couldn't make it. Lightweight, right? Eso um I used to write applications with drag and drop, you know, stuff. Right? But But I was miserable as a developer. I didn't Didn't want to be in the applications division off PeopleSoft. I wanted to be on the tools division. There were two divisions in most of these big companies ASAP. Oracle. Uh, like companies that divisions right? One is the cooking up the tools. One is cooking up the applications. The basketball was always gonna go to the tooling. Hey, >>guys, I'm sorry. We're almost out of time. I always wanted to t some of the sections of the day. First of all, we got Holder Mueller coming on at lunch for a power half hour. Um, you'll you'll notice when you go back to the home page. You'll notice that calendar, that linear clock that we talked about that start times are kind of weird like, for instance, an appendix coming on at 1 24. And that's because these air prerecorded assets and rather than having a bunch of dead air, we're just streaming one to the other. So so she's gonna talk about people, process and technology. We got Kathy Southwick, whose uh, Silicon Valley CEO Dan Sheehan was the CEO of Dunkin Brands and and he was actually the c 00 So it's C A CEO connecting the dots to the business. Daniel Dienes is the CEO of you I path. He's coming on a 2:47 p.m. East Coast time one of the hottest companies, probably the fastest growing software company in history. We got a guy from Bain coming on Dave Humphrey, who invested $750 million in Nutanix. He'll explain why and then, ironically, Dheeraj Pandey stew, Minuteman. Our friend interviewed him. That's 3 35. 1 of the sessions are most excited about today is John McD agony at 403 p. M. East Coast time, she's gonna talk about how to fix broken data architectures, really forward thinking stuff. And then that's the So that's the transformation track on the future of cloud track. We start off with the Big Three Milan Thompson Bukovec. At one oclock, she runs a W s storage business. Then I mentioned gig therapy wrath at 1. 30. He runs Azure is analytics. Business is awesome. Paul Dillon then talks about, um, IDs Avery at 1 59. And then our friends to, um, talks about interview Simon Crosby. I think I think that's it. I think we're going on to our next session. All right, so keep it right there. Thanks for watching the Cuban cloud. Uh huh.

>>from the Cube Studios in Palo Alto in Boston, connecting with thought leaders around the globe. These are cloud native insights. Hi, I'm stew Minimum and the host of Cloud Native Insights. And the threat that we've been pulling on with Cloud Native is that we needed to be able to take advantage of the innovation and agility that cloud in the ecosystem around it can bring, not just the location. It's It's not just the journey, but how do I take advantage of something today and keep being able to move for Happy to welcome back to the program one of our regulars and someone that I've had lots of discussion about? Cloud Cloud. Native Serverless So Cory Quinn, the Keith Cloud economists at the Duck Bill Group. Corey, always good to see you. Thanks for joining us. >>It is great to see me. And I always love having the opportunity to share my terrible opinions with people who then find themselves tarred by the mere association. And there's certainly no exception to use, too. Thanks for having me back. Although I question your judgment. >>Yeah, you know, what was that? Pandora's box. I open when I was like Hey, Corey, let's try you on video so much. And if people go out, they can look at your feet and you've spent lots of money on equipment. You have a nice looking set up. I guess you missed that one window of opportunity to get your hair cut in San Francisco during the pandemic. But be doesn't may Corey, why don't you give our audience just the update You went from a solo or mentor of the cloud? First you have a partner and a few other people, and you're now you've got economists. >>Yes, it comes down to separating out. What I'm doing with my nonsense from other people's other people's careers might very well be impacted by it considered tweet of mine. When you start having other clouds, economists and realize, okay, this is no longer just me we're talking about here. It forces a few changes. I was told one day that I would not be the chief economist. I smile drug put on a backlog item to order a new business cards because it's not like we're going to a lot of events these days, and from my perspective, things continue mostly a base. The back. To pretend people now means that there's things that my company does that I'm no longer directly involved with, which is a relief, that absolutely, ever. But it's been an interesting right. It's always strange. Is the number one thing that people who start businesses say is that if they knew what they were getting into, they'd never do it again. I'm starting to understand that. >>Yeah, well, Corey, as I mentioned you, and I have had lots of discussions about Cloud about multi Cloud server. Listen, like when you wrote an article talking about multi cloud is a worse practice. One of the things underneath is when I'm using cloud. I should really be able to leverage that cloud. One of the concerns that when you and I did a cube con and cloud native con is does multi cloud become a least common denominator? And a comment that I heard you say was if I'm just using cloud and the very basic services of it, you know, why don't I go to an AWS or an azure which have hundreds of services? Maybe I could just find something that is, you know, less expensive because I'm basically thinking of it as my server somewhere else. Which, of course, cloud is much more than so you do with a lot of very large companies that help them with their bills. What difference there differentiates the companies that get advantage from the cloud versus those that just kind of fit in another location, >>largely the stories that they tell themselves internally and how they wind up adapting to cloud. If the reason I got into my whole feel about why multi cloud is a worst practice is that of you best practices a sensible defaults, I view multi cloud as a ridiculous default. Sure, there are cases where it's important, and so I don't say I'm not suggesting for a second that those people who are deciding to go down that are necessarily making wrong decisions. But when you're building something from scratch with this idea toward taking a single workload and deploying it anywhere in almost every case, it's the wrong decision. Yes, there are going to be some workloads that are better suited. Other places. If we're talking about SAS, including that in the giant wrapper of cloud definition in terms of what was then, sure you would be nuts to wind of running on AWS and then decide you're also going to go with codecommit instead of git Hub. That's not something sensible people to use get up or got sick. But when I am suggesting, is that the idea of building absolutely every piece of infrastructure in a way that avoids any of the differentiated offerings that your primary cloud provider uses is just generally not a great occasionally you need to. But that's not the common case, and people are believing that it is >>well, and I'd like to dig a little deeper. Some of those differentiated services out there there are concerned, but some that said, You know, I think back to the past model. I want to build something. I can have it live ever anywhere. But those differentiated services are something that I should be able to get value out of it. So do you have any examples, or are there certain services that you have his favorites that you've seen customers use? And they say, Wow, it's it's something that is effective. It's something that is affordable, and I can get great value out of this because I didn't have to build it. And all of these hyper scaler have lots of engineers built, building lots of cool things. And I want to take advantage of that innovation. >>Sure, that's most of them. If we're being perfectly honest, there are remarkably few services that have no valid use cases for no customer anywhere. A lot of these solve an awful lot of pain that customers have. Dynamodb is a good example of this Is that one a lot of folks can relate to. It's super fast, charges you for what you use, and that is generally yet or a provision Great. But you don't have to worry about instances. You have to worry about scaling up or scaling down in the traditional sense. And that's great. The problem is, is great. How do I migrate off of this on to something else? Well, that's a good question. And if that is something that you need to at least have a theoretical exodus for, maybe Dynamo DV is the wrong service for you to pick your data store personally. If I have to build for a migration in mind on no sequel basis, I'll pick mongo DB every time, not because it's any easier to move it, but because it's so good at losing data, that'll have remarkably little bit left. Migrate. >>Yeah, Corey, of course. One of the things that you help customers with quite a bit is on the financial side of it. And one of the challenges if I moved from my environment and I move to the public cloud, is how do I take advantage not only of the capability to the cloud but the finances of the cloud. I've talked to many customers that when you modernize your pull things apart, maybe you start leveraging serverless capabilities. And if I tune things properly, I can have a much more affordable solution versus that. I just took my stuff and just shoved it all in the cloud kind of a traditional lift and shift. I might not have good economics. When I get to the cloud. What do you see along those lines? >>I'd say you're absolutely right with that assessment. If you are looking at hitting break even on your cloud migration in anything less than five years, it's probably wrong. The reason to go to Cloud is not to save money. There are edge cases where it makes sense, Sure, but by and large you're going to wind up spending longer in the in between state that you would believe eventually you're going to give up and call it hybrid game over. And at some point, if you stall long enough, you'll find that the cloud talent starts reaching out of your company. At which point that Okay, great. Now we're stuck in this scenario because no one wants to come in and finish the job is harder than we thought we landed. But it becomes this story of not being able to forecast what the economics are going to look like in advanced, largely because people don't understand where their workloads start and stop what the failure modes look like and how that's going to manifest itself in a cloud provider environment. That's why lift and shift is popular. People hate, lift and ship. It's a terrible direction to go in. Yeah, so are all the directions you can go in as far as migrating, short of burning it to the ground for insurance money and starting over, you've gotta have a way to get from where you are, where you're going. Otherwise, migration to be super simple. People with five weeks of experience and a certification consult that problem. It's but how do you take what's existing migrated end without causing massive outages or cost of fronts? It's harder than it looks. >>Well, okay, I remember Corey a few years ago when I talk to customers that were using AWS. Ah, common complaint was we had to dedicate an engineer just to look at the finances of what's happening. One of the early episodes I did of Cloud Native Insights talked to a company that was embracing this term called Been Ops. We have the finance team and the engineering team, not just looking back at the last quarter, but planning understanding what the engineering impacts were going forward so that the developers, while they don't need tohave all the spreadsheets and everything else, they understand what they architect and what the impact will be on the finance side. What are you hearing from your customers out there? What guidance do you give from an organizational standpoint as to how they make sure that their bill doesn't get ridiculous? >>Well, the term fin ops is a bit of a red herring in there because people immediately equate it back to cloud ability before their app. Geo acquisitions where the fin ops foundation vendors are not allowed to join except us, and it became effectively a marketing exercise that was incredibly poorly executed in sort of poisoned the well. Now the finance foundations been handed off to the Cloud Native Beauty Foundation slash Lennox Foundation. Maybe that's going to be rehabilitated, but we'll have to find out. One argument I made for a while was that developers do not need to know what the economic model in the cloud is going to be. As a general rule, I would stand by that. Now someone at your company needs to be able to have those conversations of understanding the ins and outs of various costs models. At some point you hit a point of complexity we're bringing in. Experts solve specific problems because it makes sense. But every developer you have does not need to sit with 3 to 5 days course understanding the economics of the cloud. Most of what they need to know if it's on a business card, it's on an index card or something small that is carplay and consult business and other index ramos. But the point is, is great. Big things cost more than small things. You're not charged for what you use your charger for. What you forget to turn off and being able to predict your usage model in advance is important and save money. Data transfers Weird. There are a bunch of edge cases, little slice it and ribbons, but inbound data transfer is generally free. Outbound, generally Austin arm and a leg and architect accordingly. But by and large for most development product teams, it's built something and see if it works first. We can always come back later and optimize costs as you wind up maturing the product offering. >>Yeah, Cory, it's some of those sharp edges I've love learning about in your newsletter or some of your online activities there, such as you talked about those egress fees. I know you've got a nice diagram that helps explain if you do this, it costs a lot of money. If you do this, it's gonna cost you. It cost you a lot less money. Um, you know, even something like serverless is something that in general looks like. It should be relatively expensive, but if you do something wrong, it could all of a sudden cost you a lot of money. You feel that companies are having a better understanding so that they don't just one month say, Oh my God, the CFO called us up because it was a big mistake or, you know, where are we along that maturation of cloud being a little bit more predictable? >>Unfortunately, no. Where near I'd like us to be it. The story that I think gets missed is that when you're month over, month span is 20% higher. Finance has a bunch of questions, but if they were somehow 20% lower, they have those same questions. They're trying to build out predictive models that align. They're not saying you're spending too much money, although by the time the issues of the game, yeah, it's instead help us understand and predict what's happening now. Server less is a great story around that, because you can tie charges back to individual transactions and that's great. Except find me a company that's doing that where the resulting bill isn't hilariously inconsequential. A cloud guru Before they bought Lennox, I can't get on stage and talk about this. It serverless kind of every year, but how? They're spending $600 a month in Lambda, and they have now well, over 100 employees. Yeah, no one cares about that money. You can trace the flow of capital all you want, but it grounds up to No one cares at some point that changes. But there's usually going to be far bigger fish to front with their case, I would imagine, given, you know, stream video, they're probably gonna have some data transfer questions that come into play long before we talk about their compute. >>Yeah, um, what else? Cory, when you look at the innovation in the cloud, are there things that common patterns that you see that customers are missing? Some of the opportunities there? How does the customers that you talk to, you know, other than reading your newsletter, talking Teoh their systems integrator or partner? How are they doing it? Keeping up with just the massive amount of change that happens out >>there. Get customers. AWS employees follow the newsletter specifically to figure out what's going on. We've long since passed a Rubicon where I can talk incredibly convincingly about services that don't really exist. And Amazon employees won't call me out on the joke that I've worked in there because what the world could ever say that and then single. It's well beyond any one person's ability to keep it all in their head. So what? We're increasingly seeing even one provider, let alone the rest. Their events are outpacing them and no one is keeping up. And now there's the persistent, never growing worry that there's something that just came out that could absolutely change your business for the better. And you'll never know about it because you're too busy trying to keep up with all the other number. Every release the cloud provider does is important to someone but none of its important everyone. >>Yeah, Corey, that's such a good point. When you've been using tools where you understand a certain way of doing things, how do you know that there's not a much better way of doing it? So, yeah, I guess the question is, you know, there's so much out there. How do people make sure that they're not getting left behind or, you know, keep their their their understanding of what might be able to be used >>the right answer. There, frankly, is to pick a direction and go in it. You can wind up in analysis paralysis issues very easily. And if you talk about what you've done on the Internet, the number one responsible to get immediately is someone suggesting an alternate approach you could have taken on day one. There is no one path forward for any six, and you can second guess yourself that the problem is that you have to pick a direction and go in it. Make sure it makes sense. Make sure the lines talk to people who know what's going on in the space and validate it out. But you're going to come up with a plan right head in that direction, I assure you, you are probably not the only person doing it unless you're using. Route 53 is a database. >>You know, it's an interesting thing. Corey used to be said that the best time to start a project was a year ago. But you can't turn back time, so you should start it now. I've been saying for the last few years the best time to start something would be a year from now, so you can take advantage of the latest things, but you can't wait a year, so you need to start now. So how how do you make sure you maintain flexibility but can keep moving projects moving forward? E think you touched on that with some of the analysis paralysis, Anything else as to just how do you make sure you're actually making the right bets and not going down? Some, you know, odd tangent that ends up being a debt. >>In my experience, the biggest problem people have with getting there is that they don't stop first to figure out alright a year from now. If this project has succeeded or failed, how will we know they wind up building these things and keeping them in place forever, despite the fact that cost more money to run than they bring in? In many cases, it's figure out what success looks like. Figure out what failure looks like. And if it isn't working, cut it. Otherwise, you're gonna wind up, went into this thing that you've got to support in perpetuity. One example of that one extreme is AWS. They famously never turn anything off. Google on the other spectrum turns things off as a core competence. Most folks wind up somewhere in the middle, but understand that right now between what? The day I start building this today and the time that this one's of working down the road. Well, great. There's a lot that needs to happen to make sure this is a viable business, and none of that is going to come down to, you know, build it on top of kubernetes. It's going to come down. Is its solving a problem for your customers? Are people they're people in to pay for the enhancement. Anytime you say yes to that project, you're saying no to a bunch of others. Opportunity Cost is a huge thing. >>Yeah, so it's such an important point, Cory. It's so fundamental when you look at what what cloud should enable is, I should be able to try more things. I should be able to fail fast on, and I shouldn't have to think about, you know, some cost nearly as much as I would in the past. We want to give you the final word as you look out in the cloud. Any you know, practices, guidelines, you can give practitioners out there as to make sure that they are taking advantage of the innovation that's available out there on being able to move their company just a little bit faster. >>Sure, by and large, for the practitioners out there, if you're rolling something out that you do not understand, that's usually a red flag. That's been my problem, to be blunt with kubernetes or an awful lot of the use cases that people effectively shove it into. What are you doing? What if the business problem you're trying to solve and you understand all of its different ways that it can fail in the ways that will help you succeed? In many cases, it is stupendous overkill for the scale of problem most people are throwing. It is not a multi cloud answer. It is not the way that everyone is going to be doing it or they'll make fun of you under resume. Remember, you just assume your own ego. In this sense, you need to deliver an outcome. You don't need to improve your own resume at the expense of your employer's business. One would hope, >>Well, Cory, always a pleasure catching up with you. Thanks so much for joining me on the cloud. Native insights. Thank you. Alright. Be sure to check out silicon angle dot com if you click on the cloud. There's a whole second for cloud Native insights on your host to minimum. And I look forward to hearing more from you and your cloud Native insights Yeah, yeah, yeah, yeah, yeah.

>>from the Cube Studios in Palo Alto and Boston connecting with thought leaders all around the world. >>This is a cube conversation. I'm stew Minuteman, and this is the Cube's virtual coverage of AWS Summit online. Happy to welcome back to the program to help give us some insight into what's happening. Aws last week. And today, that is Cory Quinn is the cloud economist at the Duck Bill Group. Cory, I know it's >>thank you. Always a >>pleasure to see you >>now it is always a pleasure to see me. Thank you for once again exhibiting remarkably poor judgment and inviting me back onto your program. >>Yeah, you know, Korea, you've been on the program a few times now, including in some of the AWS goes Ah, 18 San Francisco AWS, New York City. You know, reinvent we see you. But this is the first time we've had you on online. So give us a little bit about you know what? That impact of the global pandemic has been meaning to you and more importantly, what you've been seeing from our dear friends at AWS. >>Sure, the fact that not traveling anymore and spending almost all of my time at home means that I'm a lot closer to the edge when it comes to the content I put out because I no longer have to worry about someone punching me in the face. But other than that, from a business perspective, things tend to be continuing on much as they have before with four different customer concerns. The more interesting question from my side has been what is the effect this is having on people Because we're working from home remotely? It's not really a fair test of how well you can do remote. I've been doing it like this for years, and there's a There's a sense of existential dread that's hanging over people's at more so than usual, more so than right before the AWS re invent. You know, when you're wondering if you're about to have your entire business put out of business by an AWS. Now, it's just that sort of dread that never goes away because they won't deliver the keynote If you'll pardon me if using a metal >>Yeah, it's been really interesting to watch, you know, for you, of course. I mean, Amazon is, you know, a big player in the industry before this Amazon one that gets talked about a lot in the news. You know Amazon overall, You know, when this first pitch they announced they were hiring 1000 then they went through that faster than anyone could believe. You know, you think about having to hire a driver remotely. You know, my joke was you know, Alexa the screen. Everybody and I are everyone. But then they hired another 75,000. And it's not just the warehouse and the whole food people, because I've seen a number of people that I know getting hired by AWS do. So you know, you talk. It's all about the people that you know, the number one in the endemic people. How's Amazon doing? What feedback are you getting for? How they're doing? >>Well, I don't have too many internal sources that confirm or deny things of strategic import because it turns out that I'm generally not for those things. Who knew something I'm picking up on across the industry has been that if you're building a hyper scale cloud provider, you're not looking to next border. The investments you make today are going to be realized 3 to 5 years No one is currently predicting a dramatic economic impact community felt for a decade, based on the current question. So, yeah, AWS is still investing in people, which is always going to be the limiting constraint there still launching regions we have to launch within a month, and we're still seeing a definite acceleration of anything of the pace of innovation as a W was like. Now my perspective, that's both reassuring that some things never change. And, of course, the usual level of depression where oh, good, there's still more services to learn what they do. Learn how the names work, find ways to poke holes in their various presentational aspects. And, of course, try and keep the content relatively fresh. There's only so many times you could make the same joke for people. >>Yeah, absolutely. And of course, you bring up a really good point. You know, Amazon that they have a long strategic plan there. If they're building new data centers, they're building the power in perfect for these things. It's not something that they're going to change on a dime. They plan these things out far in advance, and AWS does, of course, have a global scope. Um, you know, I really, you know, wonder. You know, from an operational standpoint, are there any pressures on them? You wrote an article you know, relatively recently talking about one of the other public cloud providers that is by our customers. And we even have performance issues. AWS seems to be running through this dealing with acid. You know, I've had phone systems that have problems. You know, everybody as when they're working from home engine internally. Even if you've got a gig bandwidth When the fire neighborhood has Children on, you know, the classrooms online for video. There's pressures there. So you know where your teams from what I've seen, you know, AWS operationally is running well and, you know, keeping things all up and running Is am I missing anything? >>No. I mean the database is fond of saying there's no compression algorithm for experience, as I'm fond of saying, that's why they charge per gigabyte. But what that means is that they've gone through a lot of these growing pains and largest instructional stories in 2010 to 2012 EBS outages, causing a cascading failures as everyone saturates links as they roll from region to region or availability zone availability zone. They understand what those workloads look like and what those years are, and they've put in credible amount of engineering into solving these problems. I think that anyone who looks at this and doesn't see this happening is unfortunate place because we don't have to its approach utility level of reliability. You don't wonder every time you turn the faucet on whether water is going to, and we're now at a point of seeing that with AWS Resource. Now they're still going to be recurring issues. And there have been basically since this thing watched a particular instance. Size and family in a particular availability zone of a particular region may be constrained for a period of weeks, and that is something that we've seen across the board. But that has less to do with the fact that they didn't see this stuff coming in that appropriately and more to do with the fact that there's a lot of different options and customer demand is never going to be an exact thing we are seeing some customers dramatically turn off city and others sporadically scrapping capacity up. It comes down to what is the nature of this endemic on >>there. Yeah, well, this absolutely does. But you know, some of those promises of the cloud test I should be able to spin things down some things I should be able to turn off. And if I have to know shut down by business, I should be able to do that. Um, I'm curious what you've heard on changing demand out there. Worry. Um, you know, on the one hand, you know customers there re buying, they're getting reserved. They're making for that. They can, you know, optimize every dollar. But when something like this comes up and they need a major change, you know, are they stuck with a lot of capacity that they didn't necessarily want? >>Sometimes it comes down to a lot of interesting variables For me, the more interesting expression of this is when companies see demand falling off a cliff. As users, we're no longer using what their what they built out. But their infrastructure spend doesn't change. That tells me that it's not a particularly elastic infrastructure. And in fact, when people are building the elasticity into their applications, they always interpret that is scaling up rather than scaling down because the failure mode of not scaling up fast enough is you're dropping customer requests on the floor. The failure mode of not scaling down fast enough just means you're spending money. So when you see user demand for environment cut by 80% but the infrastructure cost remains constant or the infrastructure usage defending. That's a more interesting problem. And you're not gonna have a lot of success asking any cloud provider for adjustment when? Well, okay, you're suddenly not seeing the demand, but you're still remains the same. What is this based upon? You need to actually demonstrate a shortfall. First of wow, you know, we normally spend a $1,000,000 a month. Well, now we're spending 200 grand a month. Yeah, about that. And once you could do that, there are paths forward. I have not yet heard stories about, frankly, any of the big Three cloud providers, absolutely hanging customers out to dry in the cloud I have heard whispers about, for example, with G suite, where they're not willing to. And this this feels like a very dark way to go. But I'm going for it. Where will we just laid off 1/3 of our staff and we get a break on the annual licensing for those seats on G suite. And the answer is no. That feels like it stings and is more than a little capricious. >>Yeah, No, absolutely. You know, one of the things that the underbelly of fast is, you know? Oh, it should be elastic like cloud. But often times you're locked one or your contract, and if all of a sudden you find yourself with that meeting half the demand and you call them up, you know, Are they going to give you that break? So you know, Price and Corey, you know better >>than most. So all right, let me spoil it for you. Every provider is going to give you a break on this because this is a temporary aberration. As far as the way the world works, we're not going to start seeing Global 10 X every year, I hope. And when this crisis passes, people are going to remember how their vendors treated. And if it's well, we held your feet to the fire and made you live up to that contract that sticks with me, and it doesn't take too many stories like that, or people pulling lawsuits out of Acer to demonstrate that a company beat the crap out of them to say, Huh? Maybe that's not where I want to thank my sizeable cloud. Invest. >>Yeah. So, Corey, how about you know, there are there certain areas where I heard, you know, certain that maybe were slow rolling cloud and all of a sudden realize that when they're working from home, they plug and adjust their servers that are saying, Oh, jeez, maybe I need to hop on this. Then there's other services. You think VPN usage must be through the roof workspaces. So when first announced, you know, many years ago was a bit of a slow roll had been a growth ah, area for Amazon for the last couple of years. Are you hearing anything specific to new services or increase growth in certain services like I'm in? >>There are two patterns we're seeing. Of all. One is the traditional company you just described, where they build out a VPN that assumes some people will occasionally be working from home at a 5% rate versus the entire workforce 40 hours a week that that model that model is training every. Whereas if you go back the last 10 years or so and look at a bunch of small businesses that have started up or startups that have launched where everything they're using is a SAS service or a cloud service, then there is no VPN. I don't have a VPN. For example, the fact that I have a wireless network here in my house and I'm at dislocation. There's this I p address isn't white listed anywhere. The only benefit that this network has over others is that there's a printer plugged in here, and that's it. The identity model of Ioffe indicate to these services by the credentials of a user name and password by enchanting something, and they send an email that I click the link that that winds up handling the Asian night and there is no bottleneck in the same direction. I feel like this is going to be the death now for a lot of VM centric for tonight. >>Alright, Corey, want one of the other things about aws is they don't stop. And what I mean is, you know, you talked about them always being online. But you know every week there's a new announcement. It keeps feeding your newsletter, feeding your feet. You know everything going on there. How is number one? You know the announcement? Brains from AWS going and anything specific. You know, John Furrier was, you know, interest in, you know, Amazon Apolo, something that was released relatively recently. >>The problem with a lot of these new services that get released relatively recently is that it requires time to vet out how it works, how it doesn't work, how it should have wound up being implemented to solve your particular use case or, in my case, how they could have named it better. But you're not able to come up with those things off the top of your head the first time you see it because it's irresponsible at scale to deploy anything in production. You don't understand. It's failure cases right now, with everyone scrambling, most companies are not making significant investments in new capabilities. They are desperately trying to get their workforces online and stay afloat and adjust very rapidly changing. And oh, they built a new data store or something of that. Nature is not going to be this sort of thing that gets people super excited in most shops, that time will change. But I do feel a bit of it right now for a lot of these product teams who've been working away on these things for months or years. And now suddenly they're releasing something into a time when people don't I care about it enough to invest the effort that, yeah, you bring up a really good >>point. Corey, you know, there's certain things. If I was working on a project that was going to help me be more agile and be more flexible, I needed that yesterday. But I still need that today. Um, some other projects, you know, might take years to roll out a eyes. Technology that has been growing bring over the last couple of years were I O T solutions are a little bit more nascent. So is what you're thinking. It's a little bit more Stick to your knitting and the solutions and the products that you're leveraging today. And some of the, you know, more visionary and futuristic ones might be a little bit of a pause button for the next couple months. >>Exactly if you're looking at exploring something that isn't going to pay dividends for 18 months. Right now, the biggest question everyone has is what is the long term repercussion of this going to be? What is the year? What we're gonna look like in three years? Because that's where a lot of these planning horizons are stretching to. And the answer is, Look, when I wind up doing a pre recorded video or podcast where I talk about this stuff and it's not going to release for four days, I'm worried about saying something that was going to be eclipsed by the new site. I worry on my podcast reporting, for example, that I'm going to wind up saying something about that dynamic, and by the time it airs in two months, it's Oh, look at this guy. He's talking about the pandemic. He doesn't even mention the meteor, and that's the place right now where people are operating from, it becomes much more challenging to be able to adequately and intelligently address the long term. When you don't know what it's going to look like, >>Yeah, absolutely. For our viewers, when you hear my segment on Cory's ask and you wonder why we could talk about that it's because we missed that one week window that we're in right now When we're talking about murder Hornet, Not when we recorded it. Not when we released the really good point court. You know, Corey, you know, data is one of the most important things. You've done a lot about data portability, you know, all the costs involved. Cloud Amazon's trying to help people, you know, with, you know, bringing data together. You know, I said in one of the interviews with Andy Jassy a couple years ago, while customers were really the flywheel for AWS for a number of years, I think it is data that is that next flywheel. So I'm curious your thoughts as our, you know, enterprises think about their data, and AWS is role >>there incorrectly. If you want me to be blunt, there's an awful lot of movement, especially as we look at AI and machine learning to gather all of the data. I've been on cost optimization projects where Wow, that's an awful lot of data sitting there. And that s three bucket. Do you need it all? And I'm assured that yes, all of the sales transaction logs from 2012 are absolutely going to be a treasure trove of data just as soon as they figure out what to do with it, and they're spending our piles of money on >>it. But >>it's worse than that because it's not just that you have this data that's costing you money. That's almost a by product. There's risk to an awful lot of forms of data with regulation that continues to expand. Data can become a toxic asset in many respects. But there's this belief of never throw anything away that's not really ideal. Part of the value of a same data management strategy is making sure that you can remove all of the stuff that you don't absolutely need right now, with AI and ML being where they are, there's this movement or keep everything because we don't know what that's going to be useful for. Down the road, it's a double edged sword, and enterprises are at this point not looking at this through a lens of this thing could hurt me so much as they are. This thing could possibly benefit that the business in the future. >>Alright, so Cory, I I've really noticed over the last few months you've spent a bit more. I'm talking publicly about some of the other clouds that aren't AWS, though. You know what we are covering? AWS Summit online. Give us what you're hearing from Microsoft, Google and others. You know any strategies that Aaron you any you know, customer movement? That is worth >>sure. I think that we're seeing customers move in the way that they've always been moving. People made a bit of a kerfuffle about a block post I put out with the extremely Clickbait idle of Zoom chose Oracle Cloud over AWS. Maybe you should, too, and there were a few. There are few conclusions people drew understandably from that particular headline, which was, for example, the idea that AWS have lost a workload that was being moved from AWS to Oracle. Not true. It was net new. They do already has existing relationships with both Azure and AWS by their own admission. But the argument what what I took that particular change to be in my case was an illustration of something that's been bugging me for a while. If you look at AWS data transfer pricing publicly posted stop, which again, no one of this scale is going to pay. It is over 10 times more expensive than Oracle. Wow. And what that tells me is that I'm now sitting here in a position where I can make you made a good faith recommendation to choose Oracle's for cost reasons, which sounds nuts. But that's the world in which we live. It's a storytelling problem, far more than it is a technical shortcoming. But that was interpreted to mean that Oracle's on the rise. AWS is in decline. Zoom is a very strong AWS customer and has made public commitments. They will remain so right now. This is what we're seeing across the board. You see Zoom doing super well. They're not building out a whole lot of net new, either. What they're doing is building is just it's desperately trying to stay up under brushing unprecedented demand. That's where the value is coming from right now, clouds elasticity and they're not doing. You know, we're going to go ahead and figure out if we can build a new continuous deploy process or something that it makes on call a little bit less brutal. That's not what anyone's focusing on it here. Wow, this boat is sinking. If we don't stay up, grab a bucket, start bailing. And that is what they're doing. The fact that they're working with every cloud provider, it shouldn't come as a surprise. >>Yeah, well, it's interesting. I'm thinking about Zoom, and one of the things that I've been watching them for the last couple of everybody has is, you know, the daily updates that are happening Related security. Um, you know, I think back, you know, 67 years ago, Amazon had This is our security model. We're not changing it for anyone now. You know Amazon as a much more flexible and nuanced. So there are >>still in violent principles that Amazon will not and cannot shift. So, to be clear, they have different ways of interfacing with security in different ways of handling data classification. But there are rules that you knew are not changing. It's not well surprised. Now, suddenly, every Amazonian who works there can look through your private data that none of that is >>happening. I >>just want to very clear on >>that. Yeah, No, you're absolutely right. It's more security, you know, getting more engine even than ever. And it was already coming into 2020 before everything changed. What was one of the hot topic? Great. You know, I'm curious. You know, we're looking at a virtual event for AWS. Have you been to some of these? You know, you're getting burnt out from all of the online content. I'm sure everybody's getting tired of you. So are you getting tired of everyone else? >>I don't accept that anyone ever get tired of me. I'm a treasure and of the light. But as far as online events go, I think that people are getting an awful lot profoundly wrong about that. For example, I think that people focus on, well, I need to get the best video and the best microphone, and that's the thing that people are going to focus on, rather than maybe I should come up with something that someone wants to listen. People are also assuming that the same type of delivery and content works super well in a stage for 45 minutes is not going to work when people can tab over to something else and stop paying attention. You've got to be more dynamic. You've got to be able to grab people's, and I think that people are missing the forest for the trees. Here, you're just trying to convert existing format into something that will work online in the immediate short term. Everyone is super sympathetic. It's not going to last. People are going to get very tired of the same tired formatting ropes, and there's only so much content people are going to consume. You've got to stand out and you've got to make it compelling and interesting. I've been spending a lot of time trying to find ways to make that >>work. Yeah, I had a great conversation with John Troyer, he said. You know, we can learn something about what? Some of the late those Ah, you know, I think there's a new opportunity for you to say There's a house band, you know. You have a small child at home, divert Amerine there's your house band. You know you can have a lot of fun with >>Oh, absolutely, especially during a tantrum that's going to go super. Well, I'm just gonna watch one of her meltdowns about some various innocuous topic, and then I'm going to wind up having toddler meltdown the Amazon s three remix, and I'm sure we could wind up tying it back to something that is hilarious in the world of cloud. But I'm trying to pull off a little bit longer before I start actively exploiting her for Internet points. I mean, I'm going to absolutely do it. I just wanted to get a little color. >>All right. Well, Corey, want to give you the final word on AWS? The online events happening, you know, give our audience that what they should be looking at when it comes to their AWS estate, >>cool as usual attention to what's coming out. It's always been to have a low level awareness of what's coming out on stage. I don't feel you need to jump in and adopt any of it immediately. Focus on the things that matter to your business. Just because something new and shiny has announced on stage does not need a fit for you doesn't mean it's not, but remain critical. I tend not to be one of the early adopters in production, things that have a potential to wind up housing challenges, and I'm not saying, Oh, stay on the exact old stuff from 2010 and nothing newer, but there is a bit of a happy medium. Don't think that just because they released something that a you need to try it or B, it's even for, you know, AWS service is for everyone but every AWS services for someone. >>Alright, Well, Cory Quinn, always a pleasure to catch up with you. Thanks so much for joining with you joining us. >>Thank you. It was over the suffering. The slings and arrows Appreciate >>it. All right. Thank you for watching everyone. Lots of coverage of the cube at the AWS Summit online. Check out the cube dot net for all the offering. And thank you for what? >>Yeah, yeah, yeah.

>>from the Cube Studios in Palo Alto and Boston connecting with thought leaders all around the world. >>This is a cube conversation >>live on. Welcome to the Special Cube Virtual coverage of AWS Summit Online. This is an event of virtual event by AWS. We're covering with the Virtual Cube his Amazon, so it would have no >>looking started. We started. Thank you. Right >>everyone, welcome to this Special Cube. Virtual coverage of the AWS Summit Virtual Online This is an event that Amazon normally has in person in San Francisco, but now it's virtual around the world. Seoul, Korea, in Tokyo, all over the world, in Asia Pacific and in North America, I'm John Furrier Dave Jones Stew Minimum. Let's do We're kicking off aws Virtual with the Cube Virtual. I'm in Palo Alto with the quarantine crew. You're in Massachusetts in Boston when the quarantine crew there still great to have you on to talk about AWS Virtual summit. >>Yeah, John, it's it's great to see you. Ah, it's been ah, you know, interesting times doing all these remote interviews A Z Many of us say I don't blame hotels, but I do miss the communities I do miss the hallway conversation. But great to see you, John. Love the Midnight Madness shirt. We >>want to thank Amazon for stepping up with some sponsorship for allow us to do the Virtual Cube alongside their virtual event because now it's a global community. It's all virtual. There are no boundaries. The Cube has no boundaries to We've got a great program. We have Cory Quinn coming up. Expect to hear from him last week in AWS is known for is a rising star in the community. Certainly Cube guest and also guest host and analyst for the Cube. We spent to hear all the latest from his big zoom post controversy to really what's going on in AWS around what services are hot. I know you're going to a great interview with him, but that's not what Amazon we're seeing a ton of activity, obviously, most recently last week was the jet, I think, which was an agency protest kind of confidential. Microsoft blew that up big time with a post by their worldwide comes person. Frank Shaw countered by Drew Heard Who's the coms globally for end of us and so a war of words is ensuing. This is again pointing to the cloud Native War that's going on with a jet I conference gets Jedi contract a $10 billion which is awards to Microsoft. This shows that the heat is on to do. This is a absolute bloodbath between AWS and Microsoft. We're seeing it play out now virtually with Amazon ai Large scale cloud. This is huge. This is this is another level. A def con one. Basically your thoughts. >>Yeah, John, you know, you've covered this really well and really impressing plot number one you talk about You know, this requirement When AWS launched the govcloud had the CIA as a client early on many years ago. It was the green light for many companies to go from. Wait. Is the club secure enough? Do well, good enough for the federal government in the US It's probably good enough for the enterprise. When Microsoft one jet I they didn't have all the certifications to meet what was in the contract? They had a ticking clock. Make sure that they could meet those security engagements. Aziz. Well, as you know what, one of the pieces the esports that move was working, made a partnership announced with Azure. We know the federal government uses Oracle quite a bit, though they can now run that in azure and not have the penalties from Oracle. So you know that many have said, you know Hey, AWS, why don't you kind of let that one go? You got federal business, but those ripple effect we understand from one contract kind of move things around. >>Well, my take on this is just the tip of the teapot. Either Microsoft's got something that we don't know where they're running scared. My predictions do is that the clock is gonna take out D o. D. Is going award the contract again to Microsoft because I don't think the d. O. D. Wants to change basically on the data that I'm getting from my reporting. And then, ultimately Amazon will keep this going in court because Microsoft has been deficient on winning the deal. That is by the judge and in government contracts. As you know, when you're deficient, you're ineligible. So, essentially on the tech specs, Microsoft failed to meet the criteria the contract and they're deficient. They still can't host top secret content even if they wanted to. This is going to be a game changer when if this comes out to be true, it will be a huge tech scandal. If it's true, then am I gonna have egg on their face? OK, so we passed. This speaks to the large scale problems that are having with Cove it. You're seeing Amazon. They're all working at home, but they still got to run the servers. They >>can do >>it. They got cloud native. You've got Dev ops. But for their customers to be people who are trying to do hybrid. What >>are you >>hearing in terms of the kinds of situations that people are doing? Are they still going to work with maths on our There's still data centers that need to be managed. What >>are >>you hearing in the tech world's do around Covad 19. And as the cloud becomes more apparent, it's obvious that if you're not cloud native, you're going to be on the wrong side of history. Here is pretty obvious. >>Yeah, well, absolutely. John. There there is a bit of a Elwyn behind cloud. Everything from you mentioned work from home. Everybody needs to be on their VPN. They need to access their service access their services where they are. If you've got a global workforce, if you thought that your infrastructure was going to be able to handle that, you might not be in for a WS is meeting that need. There's been some of the cloud providers that have had performance issues have had to prioritize which customers can get access to things AWS standing strong. They're meeting their customers and their answering the call of cloud. You know, we know that AWS puts a huge investment into their environment. If you compare an availability zone from AWS, you know, it is very, very sturdy. It's not just, you know, a you know, a small cluster on. And they say, Hey, we can run all over the place, you know, to be specific It's, you know, John Azure has been having some of those performance issues and has been from concerns. Corey actually wrote a really good article talking about that. It actually put a bad you on public cloud in general. But we know not all public cloud with the same, though, you know, Google has been doing quite well, you know. Managing the demand spike, though, has AWS. Microsoft has needed to respond a little bit. >>It's just mentioned Microsoft's outages. Microsoft actually got caught on eight K filing, which you just have to be going through, and they noticed that they said they had all this up. Time for the cloud. Turns out it wasn't the cloud. It was the teams product. They had to actually put a strike a line through it legally. So a lot of people getting called out, it doesn't matter. It's a crisis. I think that's not gonna be a core issue is gonna be what technology has been needed the most. And I got to ask you still, when was the last time you and I talked about virtual desktops? Because, hey, if you're working at home and you're not at your desk, you need might need some stuff on your desk. This >>is a real issue. >>I mean, it's a >>kind >>of a corner case in tech, but virtual desktops. If >>you're not >>at the office, you need to have that at home. This is a huge issue. It's been a surge >>in demand. Yeah, there were jokes in the community that you know, finally, it's the year of VD I, but desktop as a service. John is an area that took a little while to get going. You know, Dave Volante and I were just having about this. You and Dave interviewed me when Amazon released workspaces, and it was like, Ah, you know, Citrix is doing so well and VD I, you know, isn't the hotness anymore, But that's not service as grown. If you talk about desktop as a service compared to V i p. I is still, you know, a bit of a heavy lift. Even if you've got, you know, hyper converged infrastructure. Roll this out. It's a couple of months to put these whole solutions together. Now, if you have some of that in perspective, can you scale it and you build them up much faster? Yes, you can. But if you're starting to enable your workforce a little bit faster, desktop as a service is going to be faster. AWS has a strong solution with work base. Is it really is that enablement? And it's also putting pressure on the SAS providers. One. They need scale and do they need to be responsive that some of their customers need to scale up really fast and some of them dial things down. Always worry about some of these on track that the SAS providers, but you in. So you know, customers need to make sure they're being loud and clear with their providers. If you need help. If you need to adjust something, you know, push back on them because they should be responsive because we know that there is a broad impact on this. But it will not be a permanent impact, though you know, these are the times that companies need to work closely with customers because otherwise you will. You will either make a customer for life, or you will have somebody that will not be saying about you for a long >>while. Still, let's just quickly run through some of the highlights so far on the virtual conference virtual event. Aussie Amazon Pre announced last month the Windows Migration Service, which has been a big part of their business. They've been doing it for 11 years, so we're gonna have an interview with an AWS person to talk about that also app Flows announced as well as part of the virtual kind of private, you know, private checks. So you're seeing that right here. Large scale data lakes breaking down those silos, moving data from the cloud from the console into the top. Applicants like Salesforce is a big one. That was kind of pre announced. The big story here is the Kendra availability and the augmented AI availability. Among other things, this is the big story. This kind of shows the Amazon track record they pre announced at reinvent, trying to run as fast as they can to get it shipping the focus of AI. The focus of large scale capacity, whether it's building on top of GC, too. Server list. Lambda ai. All this is kind of coming together data, high capacity, operational throughput and added value. That seems to be the highlights. Your reaction? >>Yeah, John, You know, at flow is an interesting one. We were just talking about asp providers. An area that we've been spending a lot of time talking with. The system is you know, my data is all over the place, you know? Yes, there's my data centers public, but there's all of these past provides. So, you know, if I have data in service now, I have it in workday. I have a sales force you know, how do I have connectors there? How do I You're that How do I protect that, though? Amazon, you know, working with a broad ecosystem and helping to pull that together. Eyes definitely an interesting one. What? Kendra definitely been some good buzz in the ecosystem for a while. They're You know, the question is on natural language processing and a I, you know, where are the customers with these deployments? Because some of them, if they're a little bit more long term, Egypt might be the kind of projects that get put on pause rather than the ones that are critical for me to run the business today. >>And I just did a podcast with the VM ware ecosystem last week talking about which projects will be funded. Which ones won't. It brings up this new virtual work environment where, you know, some people are going to get paid and some people aren't. If you're not core to the enterprise, you're probably not going to get paid. If you're not getting a phone call to come into work, you're probably gonna get fired. So there will be project that will be cut and projects that will be funded certainly virtual events, which I want to talk to you about in a minute to applications that are driving revenue and or engagement around the new workforce. So the virtualization of business is happening now. We joke because we know server virtualization actually enabled the cloud. Right? So I think there's going to be a huge Cambrian explosion of applications. So I want to get your thoughts. The folks you've been talking to the past few months, what are you hearing in terms of those kinds of projects that people will be leaning into and funding versus ones they might put on hold? Have you heard anything? >>Yeah. Well, you know, John, it's interesting when you go back at its core, what is AWS and they want to enable built. So, you know, the last couple of years we've been talking about all of the new applications that will get built. That's not getting put on hold, Jones. You know it. What? I do not just to run the business but grow the business. I need the We'll have applications at the core of what we do. Data and applications, Really. Or what? Driving companies today. So that piece is so critically important and therefore AWS is a very strategic partner there. >>I'm saying the same things Do I think the common trend that I would just add to that would be I'm seeing companies looking at the covert crisis is the opportunity and frankly in some cases, an excuse to lay people off, and that's kind of you're seeing some of that. But the >>end of >>the day that people are resetting, reinventing and then putting new growth strategies together that still doesn't change business still needs to get done. So great point. It's to virtual events were here with the AWS summit. Normally run the show floor. The Cube. We're here with the Virtual Cube doing our virtual thing. It's been interesting to a lot of our events have converted to virtual. Some have been canceled, but most of them have been been running on the virtual. We've been plugged in, but the cube is evolving, and I want to get your thoughts on how you see the Cube evolving. I've been getting a lot of questions that came again on the VM Ware community podcast. How is the Cube morphed and I know that we've been working hard with a lot of our customers. How have we evolved? Because we're >>in the >>middle of this digital way, this virtualization away. The Cube is in there. We've been successful. That's been different use cases. Some have been embedded into the software. Amazon's got their own run a show. But events are more than just running the show content. >>Yeah, more John, >>more community behind us to your thoughts and how well Cube has evolved. And what are you seeing? >>I'm glad, John. You just mentioned community. So you know, you and I have talked many times on air that, you know, the Cube is much network in the community as it is a media company. So, you know, first of all, it's been so heartening over the last couple of months that we've been putting out. We're still getting some great feedback from the community. One of things I personally miss is, you know, when we step off the stage and you walk the hallway and you bump into people that know when they ask your questions were you know, they share some of the things that they're going through. That data that we always look for is something we still need. So I'm making sure that reach out to friends, you know, diving back into the social channels to make sure that we understand the pulse of what's going on. But you know, John, you know, our community has always been online, though a big piece of the Cube is relatively unchanged. Other than we're doing all the interviews, we have to deal with everyone's home systems in home network. Every once in a while you hear a dog barking in the background or, you know, a child running, but it actually humanized. So there's that opportunity or the communities to rally together. Some of my favorite interviews have been, you know, the open source communities that are gathering together toe work on common issues, a lot of them specifically for the global endemic, you know, And so there are some really good stories out there. I worry when you talk about companies that are think, Hey, this There have been so many job losses in this pandemic that it just is heartbreak. So, you know, we've loved when the tech community is helping to spur new opportunities, great new industries. I had a great interview that I did with our friends from a cloud guru, and they've seen about a 20 to 30% increase on people taking the online training. And one of the main things that they're taking training on is the one on one courses on AWS on Google and on Azure, as well as an interesting point. John, they said, Multi cloud is something that come up. So you know, 2020 we've been wondering. Is aws going to admit that multi cloud is a thing, or are they going to stick with their hybrid message and, you know, as their partners not talk about? It's >>been interesting on the virtual queue because we and Amazon's been a visionary and this leading Q B virtual with them. It's become a connective tissues to between the community. And if you think about how much money the companies they're saving by not running the physical events and with the layoffs, as you mentioned, I think that could be an opportunity for the Cube to be that connective tissue to bring people together. I think that's the mission that we hope will unfold, but ultimately, digital investments will probably go up from this. I'm seeing a lot of great conversion around. Okay, So the content, What does it mean to me? Is that my friend group are my friends involved? How do I learn? How do I discover? How do I connect? And I think the interesting thing about the Cube is we've seen that up front. And I think there's a positive sign of heads do around virtualization of the media and the community. And I think it's going to be economic opportunity. And I hope that we could help people find either jobs or ways to re engage and reconnect. So again, reinvents coming. You got VM World. All >>these big shows do They dropped so much cash. Can you answer? They >>put all that cash with the community. I think that's a viable scenario. >>Yeah. No, Absolutely. John. There there is, you know, big money and events, you know? Yes, there are less cost. They're also, you know, almost none of them are charging for people to attend, and very few of them are urging the bunker. So, you know, big shift in and how we have to look at these. It needs to be a real focus on content. I mean from our standpoint, John, from day one. We've been doing this a decade now. In the early days when it was a wing and a prayer on the technology, it was always about the content. And the best people help extract that signal from the noise. So, you know, some things have changed the mission overall days. >>And you know what? Amazon is being humble. They're saying we're figuring it out. Of course, we're psyched that we're there with the Virtual Cube students do. Thanks for spending the time kicking off this virtual coverage wrap up. Not >>as good as face to face. >>Love to be there on site. But I think it's easy to get guests used to in the virtual world. But we're gonna go to a hybrid as soon as it comes back to normal. Sounds like clouds to public hybrid virtual. There it is too. Thanks so much. Okay, that's the cube coverage for AWS Summit. Virtual online. That's the Cube virtual coverage. I'm sure. First Amendment, Thanks for watching. Stay tuned for the next segment. Yeah, >>yeah, yeah, yeah

>>from the Silicon Angle Media office in Boston, Massachusetts. It's the Cube now here's your host, Dave Vellante. >>Hello, everyone. And welcome to this breaking analysis. We're here to assess the VM Ware v Sphere seven announcement, which is the general availability of so called Project Pacific. VM Ware has called this the biggest change to V sphere in the last 10 years. Now Project Specific Pacific supports kubernetes and natively in VM Ware environments. Why is this important? This is critical for multi and hybrid cloud because Kubernetes and its surrounding orchestration enable application portability and management. Yeah, as we've been reporting, VM Ware is one of the big players eyeing multi cloud, along with a crowded field of aspirants that include IBM with Red hat, Microsoft, Cisco, Google and a host of specialists in the ecosystem. Like how she and rancher as well play. Some players have focused in their respective stack swim lanes like security and data protection, storage, networking, etcetera. And with me to dig into this announcement is stew. Minutemen's Do is a senior analyst at Wiki Bond and co host of The Cube is too good to see you and let's get into it great to talk about this state. Okay, so the Sphere seven, what is being announced? And why is it relevant? >>Yes. So, David, as you said in the open, this is the general availability of what they talked about at VM World 2019 as Project Pacific. So it really is integrating kubernetes into V sphere. The VM ware, of course, will position this is that they're now enabling, you know, the 90% of the data centers around the world that have VM ware. Hey, your kubernetes enabled. Congratulations. You're cloud native. Everything like that. Only being a little facetious here. But this is very important. How do we get from where we were to live in this more cloud? Native environments. So containers in general and kubernetes specifically are being a first class citizen. There's a lot of work, Dave, and my understanding this has been going on for a number of years. You know, it's not like they just started working at this six months ago. A overhaul to how this works. Because it's not just we're going to stick a couple of containers on top of, you know, the guest operating system in the virtual machine. But there is a supervisor cluster for kubernetes at the hyper visor level. And there's a lot of, you know, in the weeds things that we're all trying to understand and figure out because you've got you know, we've got a hyper visor and you've got VM. And now you've got the containers and kubernetes on. Some of them are living in my data center. Some VM ware, of course, lives on multiple clouds like the VM ware on AWS. Solutions of this will go there on and, you know, how do I manage that? How does this impact my operations? You know, how did this change my application portfolio? Because, you know, the early value proposition for VM Ware always was. Hey, you're gonna put VM ware on there. You don't need to touch your applications. Everything runs like it did before you were running windows APS on a physical server. You move into virtual. It's all great. There's a lot of nuance and complexity. So when VM Ware says this is the biggest change in a decade probably is, I think back to you know, I remember when the fx 2.0, rolled out in V motion really changed the landscape. That was big V balls. Move to really ah storage. To really understand that architecture and really fix storage was was a huge undertaking that took many years. This this definitely stacks up with some of those previous changes to really change the way that we think about VM Ware. I think the advertising you have even seen from being where some places is don't think of them as VM ware their cloud where our container ware with like because vm zehr still there. But VM Ware is much more than VMS today, >>so this feels like it's bm were trying to maintain its relevance in a cloud native world and really solidify its because, let's face it, VM Ware is a platform that Pat Gelsinger's has ride. The Waves tried many times in many angles to try to ride the cloud wave, and it's finally settled on the partnerships with AWS specifically. But others on DSO really Is this their attempt to become cloud native, not get left behind and be cloud naive? His many say >>Yeah, great question, David. Absolutely. There's the question as to you know what's happening with my applications, you know lots of customers. They say, Well, I'm just going to satisfy the environments. Watched the huge growth of companies like service now workday. Those applications, well, customers don't even know what they live on. Do they live on virtualization? Environment is a containers I don't need to worry about because SAS takes care of that. If I'm building modern applications, well, I'm probably not starting with VMS. Containers are the way that most people are doing that. Or they might even be going serverless now if we take these environments. So how does VM ware make sure that they have the broadest application support? Kubernetes really won the container orchestration wars on. And this is a way that VM ware now can enable customers to move down that path to modernize their environments on. And what they wanna have is really some consistency between what's happening in the cloud and happening in the environments that they control >>themselves. Vm ware saying that containers in our first class citizen within v sphere what does that mean? Why is that important? First of all, are they really And what does that mean? And why is that important? >>Yes. So, Dave, my understanding is, you know, absolutely. It's their, You know, the nuances that you will put there is. You know, we're not just running bare metal servers with Lennox and running containers on top of it. It is. You're still sitting on top of the hyper visors. One of the things I'm trying to understand when you dig down is you know what? The device driver level VM ware always looked a little bit like Linux. But the people that use it and operate it, they're not letting people Dave, these, you know, the OS. The number one os that always ran on VM ware was Windows and the traditional applications that ran there. So when we talk about containers and we're enabling that in a kubernetes environment, there are some questions about how do we make sure that my applications get certified? Dave, you got a lot of history knowing things like s ap and Oracle. I need to make sure that we've tested everything in this works. This is not what we were running traditionally in VM ware and VM ware. Just thanks. Hey, v Sphere seven, turn the crank. Everything certified Well, I would tell customers make sure you understand that your application has been tested, that your Eyes V has certified this environment because this is definitely, as VM Ware says, a huge architectural change. So therefore, there's some ripple effects to make sure that what I'm doing in this environment stays fully supported. Of course, I'm sure VM Ware is working with their huge ecosystem to make sure that all the pieces or environment you mentioned things like data protection. We absolutely know that VM Ware is making sure the day one the data protection plugs in and supported in these environments when you're using the kind of kubernetes persona or containers solutions in V sphere. >>Well, this brings me to my next question. I mean, we were talking to Bernard Golden the other day and he was saying, You know, Kubernetes is necessary for multi cloud, but it's insufficient. And so this seems to me to be a first step and, as I say, VM ware maintaining and growing its relevance. But there's gonna be a roadmap here that goes beyond just containers and portability. There's other management factors you mentioned security of enabling the ecosystem to plug in. So maybe talk about that a little bit in terms of what's necessary to really build this out over the next >>decade. And actually, it's a great point. So, first of all, you know, V. Sphere, of course, is the core of VM Ware's business. But there's only a piece of the overall portfolio said this lives in. I believe they would consider this part of what they call their Tansu family. Tando is their cloud native overarching piece of it, and one of the updates is their product hands admission control. Which of the existing product really came out of the Hep D Oh acquisition is how we can really manage any kubernetes anywhere, and this is pure software. Dave. I'm sure you saw the most recent earnings announcement from VM Ware, and you know what's going sass. What's going subscription? VM Ware is trying to build out some of their software portfolio that that isn't kind of the more traditional shrink wrap software, so Tan Xue can manage any kubernetes environment. So, of course, day one Hey, obviously or seven, it's a kubernetes distribution. Absolutely. It's going to manage this environment and but also if I've got Cooper days from azure kubernetes from Amazon communities from other environment. Tanja can manage across all of those environments. So when when you're what VM Ware has always done. If you think back in the early days of virtualization, I had a lot of different servers. How do I manage across those environments? Well, VM ware was a layer that lived across them. VM Ware is trying to do the same thing in the cloud. Talk about multi cloud. And how do I manage that? How do we get value across them? Well, there's certain pieces that you know VM Ware is looking to enable with their management software to go across them. But there are a lot of other companies, you know, Amazon Google actually not Amazon yet for multi cloud. But Microsoft and Google absolutely spent a lot of time talking about that in the last year. A swell as you mentioned. Companies like Rancher and Hashi Corp absolutely play across What Lots of these multi cloud. Well, >>let's talk about the competition. Who do you see is the number one competitors >>Well, so the number one competitor absolutely has to be red hat, Dave. So you know, when I've been in the kubernetes ecosystem for a number of years for many years. When I talk to practitioners, the number one, you know what kubernetes you're using? Well, the answer for many years was, Well, I'm grabbing it, you know, the open source and I'm building my own stack. And the reason customers did that was because there wasn't necessarily maturity, and this was kind of leading edge, bleeding edge customers in this space. The number two besides build my own was Red Hat was because I'm a red hat customer, a lot of Lennox tooling the way of building things the way my application developers do. Things fit in that environment. And therefore, that's why Red Hat has over 2000 open shift customers leading distribution for Kubernetes. And you know, this seems purely directly targeted at that market. That red hat did you know it was a big reason why IBM spent $34 billion on the Red Hat acquisition is to go after this multi cloud opportunity. So you know, absolutely this shot across the bow because Red Hat is a partner of VM Ware's, but absolutely is also a competitive >>Well, Maritz told me years ago that's true. We're with everybody and you could see that playing out. What if you look at what VM Ware could do and some of their options if they gave it away, that would really be a shot across the bow at open shift, wouldn't it? >>Yeah, absolutely, Dave, because kubernetes is not free if you're enabling kubernetes on my Google environment, I, you know, just within the last week's awesome things that were like, Okay, wait. If you're testing an environment, yes, it is free. But, you know, started talking about the hourly charges for the management layer of kubernetes. So you know kubernetes again. A color friend, Cory Quinn. Communities absolutely is not free, and he will give you an earful and his thoughts on it s o in Amazon or Google. And absolutely, Dave, it's an important revenue stream for red hat. So if I'm vm ware and you know, maybe for some period of time, you make it a line item, it's part of my l. A. You know, a good thing for customers to look out for is when you're renegotiating your l a toe, understand? If you're going to use this, what is the impact? Because absolutely, you know, from a financial standpoint, you know, Pat Gelsinger on the VM Ware team has been doing a lot of acquisitions. Many of those Dave have been targeted at this space. You know, not to step Geo, but a bit NAMI. And even the pivotal acquisition all fit in this environment. So they've spent billions of dollars. It shouldn't be a net zero revenue to the top line of what VM Ware is doing in the space. >>So that would be an issue from Wall Street's perspective. But at the same time, it's again, they're playing the long game here. Do we have any pricing data at this point? >>So I still have not gotten clear data as to how they're doing pricing now. >>Okay, Um, and others that are in there and in the mix. We talked about Red Hat. Certainly Microsoft is in there with Arc. I've mentioned many times Cisco coming at this from a networking perspective. But who else do you see and then Antos with Google? >>Yeah. And you know, Dave, all the companies we're talking about here, you know, Pat Gelsinger has had to leverage his intel experience to how to balance that line between a partner with everybody but slowly competing against everybody. So, you know, we've spent many hours talking about the VM Ware Amazon relationship. Amazon does not admit the multi cloud a solution yet and does not have a management tool for supporting all of the kubernetes environment. But absolutely Microsoft and Google do. Cisco has strong partnerships with all the cloud environment and is doing that hybrid solution and Dave Justice nothingto expand on a little bit there. If you talk about V sphere, you say, Okay, Visa or seven trolling out Well, how long will it take most of the customer base to roll to this environment? There will be some that absolutely want to take advantage of kubernetes and will go there. But we know that is typically a multi year process to get most of the install base over onto this. And if you extend that out to where VM Ware is putting their solution into cloud environments, there's that tension between, you know, Is there a match actually, between what I have in my data center and what is in the managed environment managed by VM Ware and Amazon, or manage for to support some of the other cloud environment. So the positioning always is that you're going to do VM Ware everywhere, and therefore it's going to be consistent everywhere. Well, the devil's in the details because I have control on what's in my data center, and I might have a little bit less control to some of those managed services that I'm consuming. So absolutely something to keep a close eye on. And not just for VM, where everybody is having these concerns. Even if you talk about the native kubernetes distributions, most of the kubernetes services from the cloud providers are not, you know, immediately on the latest revision of kubernetes, >>right, So Okay, well, let's let's talk about that. Remember when open Stack first came out? It was a Hail Mary against Amazon. Yeah, well, the new Hail Mary and looks like it has more teeth is kubernetes right, because it allows portability and and and of course, you know Amazon doesn't publicly say this, but it's not. That's not good for Amazon. If you're reporting things, applications, moving things around, moving them out of the Amazon cloud, and that makes it easier. Of course, Amazon does support kubernetes right, But you've got >>alternatives. So, David, it's fascinating. So I've talked to many practitioners that have deployed kubernetes and one of the top reasons that they say that why they're using Kubernetes is so they have options with the cloud. When you also ask them what cloud they're running, they're running Amazon. Did they have planned to move off of it? Well, probably not. I had a great customer that I didn't interview with that one of the Cube con shows, and they actually started out with Azure just because it was a little further head with kubernetes and then for the services they wanted. They ended up moving to AWS and Dave. It's not a click a button and you move from one kubernetes to another. You need toe match up and say, Okay, here's the five or six services I'm using. What are the equivalent? What changes do I need to make? Multi cloud is not simple. Today, I mentioned Hashi Corp is one of those companies that help people across these environments. If you have haji solution and you're managing across multiple clouds, you look in the code and you understand that there's a lot of difference between those different clouds, and they simplify that. But don't eliminate it. Just it is not. There is not a way today. This is not a utility when you talk about the public cloud. So you know Kubernetes absolutely is existentially a little bit of a threat to Amazon but Amazon still going strong in that space. And you know that the majority of customers that have deployed kubernetes in the public cloud are doing it on Amazon just because of their position in the marketplace and what they're. >>So let's double click on that. So Jassy, an exclusive interview with John Furrier before last year's re invent, said, Look, we understand there's a lot of reasons why people might choose multiple clouds, you know, go through them in a developer preference. And I think I think, you know, people want o optionality and reduce lock in potentially. But I've always said, by the way, just as an aside, that that the risk of lock in it is far down on the list relative to business value, people will choose business value over over, you know, no lock in every time. About 15% of the customers you might not agree. Nonetheless, Jassy claimed that typically when you get into a multiple cloud environment, he didn't use the term multi cloud that it's it's not a 50 50. It's a premier primary cloud supplier. So might be 70 30 or 80 20 or even 90 10. But it's really that kind of, you know, imbalance. First of all, do you see that? And then what does that mean for how they approach of this space? Multi cloud and in particular. >>So I'm sorry. You're asking how Amazon should approach the space. And you've said that I don't think they'll >>eventually enter this market place. >>Yeah, you know, absolutely, Dave. You know, first of all, in general, yes, I do agree. It is not. There are certain financial companies that, you know, have always chosen two of everything. Because for regulation and you know certain we need to protect ourselves. We're gonna have to suppliers. We're going to keep them as even as possible. But that is a corner case. Most customers I have a primary cloud. That's what I'm doing. That what I t tries to get everybody on and you need to have Is there a reason why you want to use a secondary or tertiary cloud because there's a service that they need. Of course, Google. You often run it. It's like, Oh, well, there's certain data services that they're doing well And, of course, the business productivity solutions that Microsoft's doing where the relationship with Oracle that are driving people towards Microsoft. But just as we saw Amazon soften on their hybrid solutions, we spent a lot of time at re invent talking about all the various hybrid solutions. Um, since their customers are going to have multiple clouds on and even you take most of their customers that have M and a involved you buy another company, they might be using another cloud. As Microsoft's position in the marketplace has grown, you would expect that Amazon would have not just migration services but management services to match what customers need, especially in this kubernetes environment, seems that it seems a natural fit for them. It's possible they might just leverage, you know, partnerships with red hat VM ware, you know, in some of the other players for the time being. But if the market gets big enough and customers are asking for it, that's usually when Amazon response >>So let's let's wrap with what this means to the customer. And I've said that last decade really multi cloud was a symptom of multi vendor and not so much of the strategy that's changing. You know, clearly, jokes CIOs are being called in to clean up the crime scene on do you know, put in edicts corporate edicts around security and governance and compliance and so forth. So it started to become a complicated situation for a lot of companies. We've said that multi cloud is gonna it's gonna be they're going. People are going to put the right war load and the right cloud, etcetera, and this advantages to certain clouds. But what should customers be thinking specifically as it relates to v. Sphere seven? >>Yes. So, Dave, the biggest thing I would say that people need to look at it is that understanding in your organization that that boundary and line between infrastructure and application people have often looked at you looked at the ascendancy of VM Ware, Andi V. M's and then what's happening with cloud and containers. And we think of it from an infrastructure standpoint that I'm just changing the underlying pieces. This is where it lives and where I put things. But the really important thing is it's about my data and my applications, Dave. So if I'm moving an application to a new environment, how do I take advantage of it? You know, we don't just move it to a new environment and run it the same way we were doing it. I need to take advantage of those new environments. Kubernetes is involved in infrastructure, but the real piece is how I have my application, my developers, my app. Dev's working on this environment and therefore it might be that if VM Ware's the right environment, I'm doing a lot of it that the development team says, Hey, I need you to give me a pool and provisioned this for me and I can have my sandbox where I can move really fast. But VM Ware helped initially customers when they went from physical to virtual, move faster. From an infrastructure standpoint, what it needs to do to really enable this environment is help me move faster on the application side. And that's a big gap from VM. Ware's history is where the pivotal people and hefty O people and bit NAMI and all the new people are helping along to help that whole cloud native team. But that is a big shift from customers. So for this to be successful, it's not just, oh, the virtualization admin. He upgraded to the new thing. He made some changes and said, Okay, hey, I can give you a kubernetes cluster when you need it. It's really understanding what's going to happen on the application side in a lot of that is going to be very similar to what you're doing in cloud environments. And I think this is Dave often where your customers, they say, Oh, well, I did that cloud and it was too expensive and it was too hard, and I repatriated. Everything else is, well, you probably didn't plan properly and you didn't understand what you're getting yourself into. And you jumped into the deep end of the pool and oh, wait, I forgot how to learn how to swim. So you know, that is where we are. You know, Dave, you know the technology parts. Always the easiest piece. It's getting all of the organizational and political things sorted out. And you know the developer we know how important that is, we're seeing. It's great to see VM Ware pushing faster in this environment. Kudos to them for how fast they moved. Project Pacific to G. A. That is really impressive to see and can't wait to hear the customers roll out because if this is successful, we should be hearing great transformation stories from customers as to how this is enabling their business, enabling them to move faster on. You know, that has been what, one of the favorite stories that I've been telling with customers on the Cube last couple of years. >>The vast majority of VM Ware's business, of course, is on print, and essentially they're doing here is enabling developers in their customer base and the half a 1,000,000 customers to really develop in a cloud native manner. The question is, you know, from a ah, from a cultural standpoint, is that actually gonna happen? Or the developers gonna reject the organ and say, No, I want to develop in AWS or Microsoft in the cloud. I think VM Ware would say, We're trying to embrace no matter where they want to develop, but they're still going to be. That's interesting organizational tension or developer attention in terms of what their primary choices is. They're not. >>Yeah, Dave, Absolutely. We've been saying for years. That cloud is not a location. It is an operating model. So this is helping to enable that operating model more in the data center. There's still questions and concerns, of course around, you know, consumption on demand versus you know, whether whether you've bought the entire thing as more and more services become available in the public cloud, are those actually enabled to be able to be used, you know, in my data center hosted environment. So you know, this story is not completed, but we're definitely ready. I believe we're saying it's the multi clouds Chapter three of what? We've been watching >>you and you're seeing a major tam expansion yet again from VM Ware that started with the NSX. And then, of course, went in tow networking and storage. And now they've got a cloud security division. We're talking about the the cloud native capabilities here and and on and on, it goes to thanks for helping us break this VC seven announcement down and good job fixed. All right. And thank you for watching everybody. This is Dave Volante for stew Minimum. We'll see you next time on the Cube. >>Yeah,

>> live from New York. It's the Q covering AWS Global Summit 2019 brought to you by Amazon Web service, is >> welcome back here to New York City. You're watching the Cube, the worldwide leader in Enterprise Tech cover jumps to minimum. My co host for today is Cory Quinn and happy to welcome to the program. A first time guest on the program, says Heart O. B. Who is a senior leader of global business development with Healthcare Life. Scientists know this group and AWS thanks so much for joining us. All right, so you know, we love digging into some of the verticals here in New York City. Of course, it's been a lot of time on the financial service is peas we actually had, Ah, another one of our teams out of the eight of us. Imagine show going on yesterday in Seattle with a lot of the education pieces. So healthcare, life sciences in genomics, little bit of tech involved in those groups, a lot of change going on in that world. So give us a thumbnail if you would as toe what what's happening in your >> world so well just from a scope one of you Health care includes life set paid on provider Life sciences is far more by attacking its most medical device and then genomics and what we're seeing in those spaces. Let's start with health care. It's such a broad thing, will just sort of back to back and forth in health care itself. What we're sort of seeing their customs ask us to focus on and to help them do falls into three categories. First, is a lot of customers ask us to help them personalized the consumer health journey. You and I, all of us, are so accustomed to that frictionless experiences we have elsewhere and in health care. There's a lot more friction. And so we're getting a lot of enquiries and request for us to help them transform that experience. Make it frictionless. So an example That would be if you're familiar with Doc. Doc started here in New York. Actually, when you want a book, an appointment, Doc, Doc, you can normally, if you go online, I have to put information for insurance. You type it all. Then it's full of friction. Have to put all the fields in. They use one of our A I service's image recognition, and you simply hold up your card to the camera and it able to pull your in transporation, determine eligibility and look the right appointment for you. So that's an example of removing friction for the consumer of the health consume over the patient as they're trying to go to that health care and excessive category one frictionless experiences using AWS to support it with a i service is category, too. We're getting a lot of interest for us to help health systems predict patient health events. So anything of value base care the way you actually are able to change the cost. Quality Curve is predicting events, not just dealing with math and so using a i Am L service is on top of data to predict and forecast events is a big part of one example would be with sooner where they moved, they're healthy and 10 platform, which is a launch to a patient record platform onto AWS. About 223,000,000 individuals that are on that platform Men we did a study with him where way consume about 210,000 individual patient data and created a machine learning model this is published where you can predict congestive heart failure 15 months in advance of it actually occurring. So when you look at that, that prediction are forecasting that sort of one of the powers of this princess. What category number two is predicting health events, and then the last one I'd be remiss in leaving out is that you probably have heard a lot of discussion on physician and a clinician. Burnout to the frustrations of the nurses or doctors and Muslims have the heart of that is not having the right information the right time to take care of the right patient. Data liquidity and in Trop ability is a huge challenge, and a lot of our customers are asking us to help solve those problems with them. You know it hims. This year we announced, together with change Healthcare Change Healthcare said they want to provide free and troubling to the country on AWS, with the platform supporting that. So those are sort of three categories. Personalize the consumer health journey. Predicting patient health events and promoting intra ability is sort of the signals that we're seeing in areas that were actively supporting our customers and sort of elevating the human condition. >> It's very easy to look at the regulation around things like health care and say, Oh, that gets in the way and its onerous and we're not gonna deal with it or it should be faster. I don't think anyone actively wants that. We like the fact that our hospitals were safe, that health care is regulated and in some of the ways that it is at least. But I saw an artifact of that means that more than many other areas of what AWS does is your subject to regulatory speed of Sloane. A speed of feature announcement, as opposed to being able to do it as fast technology allows relatively easy example of this was a few years back. In order to run, get eight of us to sign a B A. For hip, a certification, you have to run dedicated tendency instances and will not changed about a year and 1/2 2 years ago or even longer. Depending it's it all starts to run together after a time, but once people learn something, they don't tend to go back and validate whether it's still true. How do you just find that communicating to your customers about things that were not possible yesterday now are, >> yeah, when you look at hip eligibility. So as you know, a devious is about over 100 him eligible service's, which means that these are so this is that so compliance that you start their compliance, Remember, is an outcome, not a future. So compliance is a combination of people process platform, and we bring the platform that's hip eligible, and our customers bring the people in process, if you will, to use that platform, which then becomes complying with regulatory requirements. And so you're absolutely right. There's a diffusion of sort of understanding of eligibility, a platform, and then they worked with customers have to do in order as a shared responsibility to do it. That diffusion is sometimes slower. In fact, there's sometimes misinformation. So we always see it work with our customers and that shared, responsive model so that they can meet their requirements as they come to the cloud. And we can bring platforms that are eligible for hip. They can actually carry out the work clothes they need to. So it's it's that money, you know, the way I think of it is. This when you think of compliance, is that if if I were to build for you a deadbolt for your door and I can tell you that this complies boasted of things, but you put the key under the mat way might not be complying with security and regular requirements for our house. So it's a share responsible. I'll make the platform be eligible and compliant, and so that collective does daytime and dusting. People are saying that there is a flat from this eligible, and then they have to also, in their response to work to the people in process potion to make the totality of it comply with the requirements for regulatory for healthcare regulatory requirements. >> Some of the interesting conversations I've had in the last few years in health care in the industry is collaborations that are going on, you know, how do we share data while still maintaining all of the regulations that are involved? Where does that leave us get involved? There >> should. That's a fact. There is a data sharing part of that did a liquidity story that we talked about earlier in terms of instability. I'll give an example of where AWS actually actively working in that space. You may be familiar with a service we launched last November at Reinvent called Amazon Campion Medical and Campion Medical. What it does is it looks at a medical note and can extract key information. So if you think back to in high school, when you used to read a book in highlighting yellow key concepts that you wanted to remember for an exam Amazon Carmen Medical Same thing exactly, can lift key elements and goes from a text blob, too discrete data that has relationship ontology and that allows data sharing where you where you need to. But then there's one of the piece, so that's when you're allowed to disclose there's one of me. Sometimes you and I want to work on something, but we want to actually read act the patient information that allows data sharing as well. So Amazon coming medical also allows you to read, act. Think of when a new challenge shows that federally protected doctor that's blacked out Amazon com for American also remove patient identifying information. So if you and I want to collaborate on research project, you have a set of data that you wanna anonima de identify. I have data information of I D identified. To put it together, I can use Amazon com Medical Read Act All the patient information Make it d identified. You can do the same. And now we can combine the three of us that information to build models, to look a research and to do data sharing. So whether you have full authority to to share patient information and use the ontological portion of it, or whether you want to do the identifying matter, Amazon competent medical helps you do that. >> What's impressive and incredible is that whether we like it or not, there's something a little special about health care where I can decide I'm not going to be on the Internet. Social media things all stop tweeting. Most people would thank me for that, or I can opt out of ride sharing and only take taxis, for example. But we're all sooner or later going to be customers of the health care industry, and as a result, this is some of that effects, all of us, whether we want to acknowledge that or not. I mean, where some of us are still young enough to believe that we have this immortality streak going on. So far, so good. But it becomes clear that this is the sort of thing where the ultimate customer is all of us. As you take a look at that, does that inform how AWS is approaching this entire sector? >> Absolutely. In fact, I'd like to think that a W brought a physician toe lead sector because they understood that in addition to our customer obsession that we see through the customer to the individual and that we want to elevate the human condition we wanted obsess over our customers success so that we can affect positive action on the lives of individuals everywhere. To me, that is a turn. The reason I joined it of U. S s. So that's it. Certainly practice of healthcare Life's I said on genomic Seti ws has been around for about six years. A doubIe s double that. And so actually it's a mature practice and our understanding of our customers definitely includes that core flame that it's about people and each of us come with a special story. In fact, you know the people that work in the U. S. Healthcare life, science team people that have been to the bedside there, people that have been adventure that I worked in the farm industry, healthcare, population, health. They all are there because of that thing you just said. Certainly I'm there because that on the entire practice of self life sciences is keenly aware of looking through the customers to the >> individual pieces. All right, how much? You know, mix, you know, definitely an area where compute storage are critically important than we've seen. Dramatic change. You know, in the last 5 to 10 years, anything specific you could share on that >> Genomics genomex is an area where you need incredible computer storage on. In our case, for example, alumina, which is one of our customers, runs about 85% of all gene sequencing on the planet is in aws customer stores. All that data on AWS. So when you look at genomex, real power of genomics is the fact that enables precision diagnostics. And so when you look at one of our customers, Grail Grail, that uses genomic fragments in the blood that may be coming from cancer and actually sequences that fragment and then on AWS will use the power of the computer to do machine learning on that Gino Mexicans from to determine if you might have one of those 1 10 to 12 cancers that they're currently screening for. And so when you talk to a position health, it really can't be done without position diagnostics, which depends on genomex, which really is an example of that. It runs on AWS because we bring compute and storage essentially infinite power. To do that you want, For example, you know the first whole genome sequence took 14 years. And how many billions of dollars Children's Hospital Philadelphia now does 1000 whole genome sequences in two hours and 20 minutes on AWS, they spike up 20,000 see few cores, do that desi and then moved back down. Genomics. The field that literally can't be. My humble opinion can't be done outside the cloud. It just the mechanics of needed. The storage and compute power is one that is born in the cloud on AWS has those examples that I shared with you. >> It's absolutely fantastic and emerging space, and it's it's interesting to watch that despite the fact there is a regulatory burden that everything was gonna dispute that and the gravity of what it does. I'm not left with sense that feature enhancement and development and velocity of releases is slower somehow in health care than it is across the entire rest of the stack. Is that an accurate assessment, or is there a bit of a drag effect on that? >> Do you mean in the health care customers are on AWS speaking >> on AWS aside, citizen customers are going to be customers. Love them. We >> do aws. You know, we obviously innovation is a rowdy and we release gosh everything. About 2011 we released 80 front service than features and jumped 1015 where it was like 702 jumped 2018. Where was 1957 features? That's like a 25 fold. Our pace of innovation is not going to slow down. It's going to continue. It's in our blood in our d. N. A. We in fact, hire people that are just not satisfied. The status quo on want to innovate and change things. Just, you know, innovation is the beginning of the end of the story, so, no, I don't have to spend any slowdown. In fact, when you add machine learning models on machine learning service that we're putting in? I only see it. An even faster hockey stick of the service is that we're gonna bring out. And I want you to come to reinvent where we're going to announce the mall and you you will be there and see that. All >> right, well, on that note thank you so much for giving us the update on healthcare Life Sciences in genomics. Absolutely. Want to see the continued growth and innovation in that? >> My pleasure. Thank you for having a show. All >> right. For Cory, Queen of Stupid Men. The Cube's coverage never stops either. We, of course, will be at eight of us reinvent this fall as well as many other shows. So, as always, thanks for watching the cue.

>> live from New York. It's the Q covering AWS Global Summit 2019 brought to you by Amazon Web service is >> Welcome back to New York City. This is a W s summit and I'm stew Minutemen. My co host is Corey Quinn. We've talked to Amazon executives. We've talked to some customers. We've also talked to some of the partners and part of the partner ecosystem is course these startups aws very robust ecosystem that they've been building out. And one of the pieces were real excited to dig into in the surveillance space habit of revering program for first time. Ken Robinson, the CEO and founder of Goto Software who is the maker of cloud pegboard, take so much for joining us >> having to be here so exciting. >> Alright, So, Cloud pegboard, you had us hooked when we talked about you know, serverless you know, the the information overload that we all feel in the United with world. Cory's got a full time job helping with that and other things related to it s oh, bring us a little bit about, you know, pegboard in your background. >> Yeah, I want to help you out. So my background is I ran a major cloud transformation to Amazon. My past job, which I left in January and really solve problems, information overload, was slowing people down, people making sub optimal choices. They're spending a lot of time trying to keep up. Sometimes we have to be fact because they didn't have the right information the right time. And I realized we need to solve this. And it wasn't just in our organization. Every Amazon practitioner across the planet really needs help to keep up. When I talked with people, these conferences, it that's like the main comment, like, I can't consume it >> all. How you keep up can it is staggering. Actually, I stopped asking about two years ago how you keep up because I talked to some amazingly smart, well connected people and they're like, No, no, it's impossible. But I want you to comment on something I used to be. When you talking about, I need to start this. I should have started a year ago, but I didn't, so I should start now and now it feels like, Well, if I could, I actually should wait a couple of months or six months or even a year but I absolutely get started. So I guess I might as well start now because things change at such a pace. I mean, that that, you know. Oh, wait. If I could just wait a little bit longer Gonna be Maurin better and cheaper and faster s O. You know what you're taking kind of pace of change in the industry. >> Well, you know, one thing is, I think you just have to keep agile and buy into the fact you're going to have to throw away things like don't get so buried filled with what you can do today as best you can. But be ready to re factor and get rid of it. >> Oh! Oh, my God. I had the i t organization and the whole our quarters. Everything in i t is additive. Nothing ever dies. But I do agree with you. We have been for more than a decade. You know why our analyst team and talking, You have to get rid of stuff that needs to be able to do that. You know, sunk costs is something you're familiar with. Economics is you know, I need to understand that that even have been doing it for a while. We need to be able to cut that. But way have these attachments to the things we've been doing and how we've been doing it. No change isn't necessarily easy, >> right? Well, there's a reason some of the attacks is because there's a lot of investment to build up in the first place. And when you put so much sweat into it, then I don't want to undo it. When it gets easier to build, it's easier to throw away. So I was just giving this talk earlier and saying I religiously stick with infrastructure is code because if you do that, it's just so easy to make incremental changes. And again, Serverless makes everything so much easier if we don't get married to something. If it's changing like one window function, yeah, it's just kind of a bench of a big deal. So if you invest a little bit lessons easier by making use of special, the high level managed service is then it's easier to the pivot from one thing to another. One needs to. >> Yeah, something I found is I play with this stuff myself in a very similar space, with less comprehensiveness and far more sarcasm, I suspect than your service does, is that when you're building everything out of composited Lambda Functions tied together in a micro service's style. Re factoring one of those micro service is usually doesn't take more than a day or two as opposed to, Oh, just rebuild the entire monolith from scratch, which it feels like everyone tries to do. At some point, it almost enforces good behavior. It makes it easier to evolve as I've been your experience it differently. >> Absolutely. So this two things it helps. It's easy to re factor and throw things out because it's small and it's again, you're not married to it as much, but also easy to incrementally add on. So I have this whole tier of these micro service. Is that a captain? All this data that we're pulling in from multiple sources, whether it's Amazon's Web site or terror, for more get up any source I confined that has data that I want to organize help with my users. So we get Henry finding new data sources, leaks new data sources, essentially a new lambda function. It's independent, and if I change it, we actually had one recently I found a better data source. I just threw up the old one and plugged in the new one. And it really was less than a day to write the new function and a brilliant into production. So, yeah, >> can you know, one of the answers I've had for a long time is you know, I need to rely on, you know, my consultants and my suppliers because, you know, you don't even understand some of these architectural things that are going on. And things are changing so fast. So you know, how much can software solve this for us? And you know that the tools itself, I have to imagine there's still a lot of people involved. >> Yeah. There's always gonna be a lot of people involved. And there is no free lunch that, you know, every architect or developer of the Amazon. You still need to get yourself trained, get the certifications, read the white papers, keep up to date with all the changes. And we really do is we're running inside again. That's my past. Life is an enterprise. You really want to build internal excellence. Certainly we can use outside help when you need it. Augmentation. and blasts my people everywhere. But you definitely wanna have some internal expertise. And people are committed to growing and continuing going to New York summit, going to reinvent talking to people and always constantly learning It's going to take human effort to help, uh, filter down and find out. Where is the trend that I really need to start thinking about? Hopefully people. It is a tool helps people be much more efficient and focus in much easier. But nothing will replace engineers, which is a good thing, >> right? And for those who are outside of the, I guess very small fraternity we have apparently built. Now there are two of us who track this stuff for a living. It's it is far more complex than most people would accept. Why don't you just sign up for the R. S s feed? Well, for starters, there's over a dozen official aws R s s feed, and they're not all inclusive. You have to look at poor request getting merchant there a p I updates. You see it in cloud formation and terra form from time to time. And I am certainly not comprehensive. In fact, when I built my newsletter. Originally my thought was that someone was gonna point out something like Cloud Backboard and say, Well, idiot, use this instead. And then I shut it down and admit defeat, and that was the plan. Instead, a bunch of people signed up, and now I want people to read it for the joke's not because it's the only half sensible way to figure out what happened last week. No, I'm a huge fan of the problem you're solving in the way you've got about doing it. That said, when we talk about service architectures, you mentioned spinning up Lambda functions and tying it back into other things. But as they mention Nicky, no today server. This goes beyond just functions as a service. There's a lot more to it than that. What else is your architecture >> includes everything. Serverless exclusively. So >> So they're poking on. So you're collecting every service thing they offer and then some just a get style points there, regardless. >> Well, so you know, one of the half several strategic principles and one of them is to rely solely on serve Ellis because I just can't afford a small start up to be building out Mon function requirements that are building the business. So S O. S to be hosting dynamodb cloudfront ap Gateway. Then we use will all these features Not only do I use all serverless, but we're also using for disaster recovery designed so that we're using some additional features within these, so it's easier fail over. So cloudfront, for example, has Arjun fail over a relatively new feature and it's really amazing, right? I can go to my S three and I have the benefits of estimates service hosting. But now, in a failure cloudfront relative my alternate region continue our operating same thing with dynamodb using global table replication only >> and continuous backup, which they released. I'm not kidding. Three days after I really needed it. It's that seems like that's always the case where they have these features and they come in right after you need to read if you build a crappy version of it and it's one of those. But I love about things at a relatively small scale like this is the economics are ridiculous. It's well, watch out for continuous backups that could be expensive, and I wound up checking it, and it wound up being something like two cents a month. Yeah, I work real hard to bring enough in to cover the back up. Yeah, I >> had someone come up to me after one of the talks and asking like he's not in Amazon. He's thinking the moving there. It's like how much you I have something a little bit similar to what you're doing, and how much will it cost? How much like Budget and I say, To be honest, I've got some credits, Levin warning, but I can't spend them. I can't. I want to accelerate by spending money. I can't do it, especially with dynamodb. Used to be that you would provisions something, a lot of eye ops and that would rack up really fast. Now I'm using the on demand, and it's just not costing anything. So that's what again. This Burn was talking about not paying for idle time, >> and some of the monitoring tools in the surveillance space air still approaching it from an economic first perspective, which for anything that isn't already scaled out, is ludicrous. It has, like warnings, going arrows going up or down on my spend on my land is every month, and it's 22 cents. It's I appreciate where you're going with this, but maybe that's not the driving concern right now. So I >> had a funny experience where I turned on Macy so we could get some good inspection on the anomaly buckets. And on the first of the month, I got a notice saying, Hey, you exceeded the free tier. I was in a bit of a panic has been more than once. I'm sad to say that I've let things run longer than they should and paid the price, and I owe something has run amok. Well, it turns out, just because of the metadata scans, it does kind of use a lot of access is. But then still was under a buck for the whole month by the time outs and done because I came in to begin the month with a bunch of scanning. Yeah, it's just a big fan of service. I did this thing. >> Yeah, I was just Kennedy. Speaking of survival is an Amazon event Bridge was announced this morning. Really building that event ecosystem around Lambda. Curious what impact that will have on you will cloud pegboard be able to go outside of AWS to kind of understand some of these sacks applications. >> I have to learn more about it. I was not in on a preview or anything, so I don't know exactly get. But But yes, we will rip apart meeting with other providers anywhere. There's an information source that can help developers hone in better and kind of get everything in the right place at the right time on. So, yes, things like that will help, especially if it can work through. I don't want to be opening up sqs cues way worried about the I am the cross account. That could be complicated, so I'll be interested to learn. And I don't know yet if that will help in those sorts of integrations, especially on the office. Can't authentication and authorization aspects of it? >> Yeah, there's a lot of promise in the idea of being able to give the minimum viable, required a p. I call for something third party. It seems like there they'll integrate into something like that. Well, here's how I am works and then we have to worry about access controls and oh yeah, there's no direct i p address the white list. And on and on and on. It's challenging to forcibly upgrade third parties. Unless you're effectively a giant, world spanning company, you can demand that they do it. So this it really feels like we're meeting third parties in some ways where they are. >> Yeah, I think so. And I think this is looking forward to them because I want to both consume maybe eyes. But also all my data is available via AP I So today it's a bit of a traditional. No, he and rest would have been the face, but if I could export that in other ways, that would be very interesting as well. >> I think it's too easy to get stuck in the economic story of times. I know it's weird is a cloud economist to be saying that, But when it comes to server list, the value is less about cost control, and saving money on it is you don't have to worry about entire subsets of problems capacity planning your effectively when it comes to things like Lambda Dynamodb and the rest. The constraint on scaling is going to be your budget. I promise. No matter who these budgets are, go for me. This is what they run amazon dot com on. I don't think I'm gonna do more business than that. Unless I really miss configure something. Challenge accepted. >> Yeah. Yeah. So I totally agree that scaling is the value, but it's also this more right. The scaling is absolutely one. And then, in addition to fragility, because survivalist means service. But now the term is getting confused, right? It means so many things. So I was saving serverless managed service is to help Seo. I'm talking about more than compute, but it also means is I'm getting a very high level function. So I'm getting so for David, we're using Comprehend. That's an awful lot of stuff going on under there that I don't have to worry about. I mean, I literally have an intern in a couple of days, completed a task to do some entity extraction of such a Amazon service stains out of unstructured data. She was able to do it. She just finished a freshman year, right? I was able to do this with minimal training because it's survivalist shouldn't worry about scalability. What she needed to know is that oh, I can use this function. I could read maybe I documentation, and I could just use it for me. Another big function behind step, but also no maintenance low, maybe a more accurate term. But essentially, it's no maintenance, especially for a small start up. I used to have businesses way back when pre Internet I ran an aviation weather service in my life was the bane of my existence because it had to be. At 24 7 I had satellite dishes that would get snowed on. I was an idiot. Did this in New England. They have to shovel him off at four in the morning. I don't like waking up in the middle of the night to serve my computers. They should serve me. And in the service of the fact that there's no maintenance stuff, just runs. You think about the times. How many times have you had a serve in the past when you just thought you should reboot it every week? Because maybe >> because tradition, >> tradition and maybe there's a leak somewhere, Melinda function reboots. Every invocation. It just never happens that I have run out of resource is something that I'm just a love affair. >> All right, so So Ken. It's obvious how you feel about server list, but as a start up, just give us a final thoughts on what it's like to be a startup that is on with and, you know, using AWS. >> Well, for me, it's fantastic. It allows me to focus on the problem, to solve immediately and by using high in the stack like you're saying surveillance capabilities. I'm not worried about the infrastructure. I read a little bit of confirmation. I deploy it, and I'm always working on business logic and functionality, and I'm not worrying about well, its scale. Do I have to maintain it, I think, really focus on the problems to solve, and that's where they've been very helpful to make. So now we have something where I can scale. I'm hoping I'm not there yet, but every Amazon practitioner should want to use cloud pegboard. I think it helps with a general problem, so I need to be able to scale to millions. Firstly, I don't know what the doctor is going to be, but I have confidence because I'm using all these service capabilities. S3 will do it. Amazon Gateway in Lambda will do it, so I don't worry about it. So for a start up, to not have to worry about that is it's really pretty powerful. >> And by the time you wind up in a cost prohibitive situation, we're okay. Running some baseline level load that something that isn't server Lis begins to make significant economic sense. At that point, your traffic volumes definitional hier so high that by that point there's a team of people who will be able to focus on that. You don't need to bring those people into get off the ground in >> the same way, right? It's that fast start, and we gotta learn. There's so much to learn here with any start up. But you know, in mind as well to really get some of the user experience, get the feedback. It's We have a lot of good ideas, and I think what we have now is helpful. I have a long term road map with a lot of great ideas, but it's gonna take a lot of user feedback to say, Is this working and the service lets you tried things quickly. I could get in front of people, get that learning cycle going and iterated fast as possible. So that will be really important. All right, >> Ken Robbins really help you appreciate you educating our audience. Climb aboard. Wish you best of luck with >> it. I appreciate being here. >> All right. For Cory Quinn. I'm still minimum, and we'll be back with more coverage here from eight of US Summit in New York City. Thanks. Always for watching the cue.

>> live from New York. It's the Q covering AWS Global Summit 2019 brought to you by Amazon Web service is >> Welcome back. I'm stupid like co host Cory Quinn. And we're here at the end of a summit in New York City, where I'm really happy to welcome to the program first time guests, but somebody that has a nap, it's on my phone. So, Andy thing, who's the CEO of Door Dash, gave a great presentation this morning. Thanks so much for joining us. >> Absolutely happy to be here, guys. >> All right, so, you know, before we dig into the kind of your Amazon stack, bring us back. You talked about 2013. You know, your mission of the company will help empower local businesses. I think most people know, you know, door dash delivery from my local businesses. Whether that is a small place or, you know, chipotle o r like there. And I love little anecdote that you said the founders actually did the first few 100 deliveries, but it gives a little bit of the breath of the scope of the business now. >> Absolutely. I mean, when we started in 2013 you know, we started out of Ah dorm on Stanford campus and, like you said, we're doing the first couple 100 deliveries ourselves. But, you know, fast forwarding to today you were obviously at a much, much different level of scale. And I think one thing that I mentioned about it, Mikey No, a cz just We've been trying to keep up pays and more than doubling as a business every year. And it's a really fascinating industry that were in in the on demand delivery space in particular, I mean, Dara, the CEO of uber himself, said in May, which is a month and 1/2 ago. He said that you know, the food delivery industry may become bigger than a ride hailing industry someday. >> So just just one quick question on kind of food delivery. Because when I think back when I was in college, I worked at a food truck. It was really well known on campus, and there are people that 20 years later they're like stew. I remember you serving me these sandwiches, and I loved it in the community and we gather and we talk today on campus. Nobody goes to that place anymore, you know, maybe I know my delivery person more than I know the person that's making it. So I'm just curious about the relationship between local businesses and the people. How that dynamic changing the gig? Economy? I mean, yeah, you guys were right in the thick of it. No, it's a >> great question. I think. You know, for merchants, a lot of the things that we talk to them about it is you're actually getting access to customers who wouldn't even walk by your store in the first place. And I think that's something that they find to be very captivating. And it shows in the store sales data when they start partnering with the door dash. But we've also tried to building our products to really get customers to interact with the physical neighborhoods. Aaron the most concrete example of that as we launch a product called In Store in Star Pickup Chronic, where you can order online, skip the line and pick up the order yourself in the store, and I think a way we can build the AB experience around that, you know, you're gonna actually start building kind of a geospatial. Browse experience for customers with the door dash app, which means that they can get a little bit more familiarity with what's around them, as opposed to just kind of looking at it on their phones themselves. All right, >> so the logistics of this, you know, are not trivial. You talked about 325% order growth. You know, your database is billions of rose. You know, just the massive scale massive transaction. Therefore, you know, as a you know, your nap on. You know the scale you're at technology is pretty critical to your environment. So burgers inside that a little? >> Yeah. I mean, we're fortunate enough, and you and I are talking before the show. I mean, we're kind of born on the cloud way started off, actually on Roku. Uh, back in 2013 we adopted eight of us back in 2015. And there's just so many different service is that Amazon Web services has been able to provide us and they've added more overtime. I think the one that I talked about, uh was one that actually came out only in early 2018 which is the Aurora Post product. Um, we've been able to sail our databases scale up our analytics infrastructure. We've also used AWS for things like, you know, really time data streaming. They have the cloudwatch product where it gives us a lot of insight into the kind of our servers are behaving. And so the eight of us ecosystem in of itself is kind of evolving, and we feel like we've grown with them and they're growing with us. So it's been a great synergy over the past couple of years >> as you take a look at where you started and where you've wound up. Can you use that to extrapolate a little bit further? As far as what shortcomings you seeing today? That, ideally, would be better met by a cloud provider or at this point is it's such a simpatico relationship is you just alluded to where you just see effectively your continued to grow in the same simple directions just out of, I guess, happenstance. Yeah, it is a >> good question. I think there are some shortcomings. For example, eight of us just recently launched and chaos, which is their in house coffin solution. We're looking for something that's kind of a lot more vetted, right? So we're considering Do we adopt eight of us version or do we try to do it in house, or do we go with 1/3 party vendor? That's >> confidence. Hard to say no to these days. >> Yeah, exactly. And I think, you know, we want to make sure that we are building our infrastructure in a way that way, feel confident in can scale. I mean, with Aurora Post Chris, it's done wonders for us, but we've also kind of been the Pi. One of the pioneers were eight of us for scaling that product, and I think we got kind of lucky in some ways they're in terms of how it's been ableto pan out. But we want to make sure the stakes are a lot higher for us now. And so you know, when we have issues, millions of people face issues, so we want to make sure that we're being more thoughtful about it. Eight of us certainly has matured a lot over the past couple of years, but we're keeping our options open and we want to do what's best for our customers. Eight of us more often than not has a solution, but sometimes we have the you consider other solutions and consider the back that AWS may or may not. So some of the future problems. >> Oh yeah, it's, I think, that it's easy to overlook. Sometimes with something like a food delivery service. It's easy to make jokes about it about what you're too lazy to cook something. And sure, when I was younger, absolutely then I had a child. And when she wasn't going to sleep when she was a baby, I only had one hand. How do I How do I feed myself? There's an accessibility story. People aren't able to easily leave the house, so it's not just people aren't able to get their wings at the right time. This starts becoming impacting for people. It's an important need. >> Yeah, and I think it's been awesome to see just how quickly it's been adopted. And I think another thing about food delivery that you know people don't necessarily remember about today is it was Premier Li, just the very dense urban area phenomenon, like obviously in Manhattan, where we are today who delivers existed forever. But the suburbs is where the vast, vast majority of the growth of the industry has been and you know It's just awesome to see how this case has flourished with all different kinds of people. >> I have to imagine there's a lot of analytics that are going on for some of these. You said. In the rural areas, the suburban areas you've got, it's not as dense. And how do you make sure you optimize for people that are doing so little? So what are some of the challenges you're facing their in house technology helping? >> Exactly? Yeah. I mean, with our kind of a business, it's really important for us again to the lowest level of detail, right? Just cause we're going through 100 25% year on year in 2019 maybe we're growing faster in certain parts of the United States and growing slower and others, and that's definitely the case. And so, uh, one of the awesome things that we've been able to leverage from our cloud infrastructure is just the ability to support riel, time data access and our business operators across Canada. In the United States, they're constantly trying to figure out how are we performing relative to the market in our particular locality, meaning not just, you know, the state of New York. But Manhattan, in which district in Manhattan. Um, all that matters with a business like ours. Where is this? A hyper local economy? And so I think the real time infrastructure, particularly with things like with Aurora the faster up because we're able to actually get a lot of Reed. It's too these red because because it's not affecting our right volume. So that's been really powerful. And it's allowed our business operators to just really run in Sprint. >> So, Andy, I have to imagine just data is one of the most important things of your business. How do you look at that as an asset is their, You know, new things. That new service is that you could be putting out there both for the merchants as well for the customers. Absolutely. I think one of >> the biggest ones we try to do is you know, we never give merchant direct access to the customer data because we want to protect the customer's information, but we do give them inside. That's how they can increase their sales and target customers. I haven't used them before, So one of the biggest programs we launched over the past few years is what we call Try me free so merchants can actually target customers who've never place an order from their store before and offer them a free delivery for their order from that store. So that's a great way for merchants acquire new customers. And it's simple concept for them to understand. And over time we definitely want to be able to personalize the ability to target the sort of promotions on. So we have a lot of data to do that on. We also have data in terms of what customers like what they don't like in terms of their order behavior in terms of how they're raiding the food, the restaurant. So that kind of dynamic is something that is pretty interesting Data set for us to have. You know, you look at a other local companies out there like Yelp, Google Maps. They don't actually have verified transaction information, whereas we d'oh. So I think it's really powerful. Merchants actually have that make decisions. >> It's a terrific customer experience. It almost seems to some extent to be aligned with the Amazons Professor customer obsession leadership principle to some extent, and the reason I bring that up is you mentioned you started on Hiroko and then in 2015 migrated off to AWS. Was it a difficult decision for you to decide first to eventually go all in on a single provider? And secondly, to pick AWS as that provider It wasn't >> a hard decision for us to go to. Ah, no cloud provider. That was, you know, ready to like showtime. It's a hero is more of a student project kind of scale at that time. I don't know what they're doing today. Um, but I think a doubt us at the time was still very, very dominant and that we're considering Azure and G C P. I think was kind of becoming a thing back then made of us. It was always the most mature, and they've done a great job of keeping their lead in this space. Uh, Google, an azure have cropped up. Obviously, Oracle clouds coming up Thio and were considered I mean, we consider the capabilities of something like Google Cloud their machine. Learning soft service is a really powerful. They actually have really sophisticated, probably more so than a W s kubernetes service is actually more sophisticated. I guess it's built in house at Google. That makes sense. But, you know, we've considered landscape out there, but AWS has served a lot of our knees up to this point. Um, and I think it's gonna be a very dynamic industry with the cloud space. And there's so much at stake for all these different companies. It's fascinating to just be a part of it and kind of leverage. It >> s o nd I'm guessing, you know, when you look at some of your peers out there and you know, when a company files in s one and every goes, Oh, my God, Look at their cloud, Bill. You know, how do you look at that balance? You send your keynote this morning. You know, you like less than a handful of engineers working on the data infrastructure. So you know that line Item of cloud you know, I'm guessing is nontrivial from your standpoint. So how do you look at that? Internally is how do you make sure you keep control and keep flexibility and your options Yet focus on your core business and you know not, you know, that the infrastructure piece >> of it that was such a great question, because it's something that way we think about that trade off a lot. Obviously. In the early days, what really mattered ultimately is Do we have product market bid? Do we have? Do we have something that people will care about? Right. So optimizing around costs obviously was not prudent earlier on. Now we're in a such a large scale, and obviously the bills very big, uh, that, you know, optimizing the cost is very real thing, um, and part of what keeps, you know, satisfied with staying on one provider is kind of a piece of set up. And what you already have figured there? Um and we don optimization is over the years wear folks on financing now who basically looking at Hey, where are areas were being extremely inefficient. Where are areas that we could do? Bookspan, this is not just on AWS with is on all our vendors. Obviously eight of us is one of our biggest. I'm not the biggest line item there. Um, and we just kind of take it from there, and there's always trade offs you have to make. But I know there's companies out there that are trying to sell the value proposition of being ableto optimize your cloud span, and that is definitely something that there's a lot of. I'm sure there's a lot of places to cut costs in that we don't know about. And so, yeah, I think that's something that way we're being mindful of. >> Yeah, it's a challenge to you See across the board is that there's a lot of things you can do programmatically with a blind assessment of the bill. But without business inside, it becomes increasingly challenging. And you spoke to it yourself. Where you're not going to succeed or fail is a business because the bill winds up getting too high. Unless you're doing something egregious, it's a question of growth. It's about ramping, and you're not gonna be able to cost optimize your way to your next milestone unless something is very strange with your business. So focusing on it in due course is almost always the right answer. >> Yeah, I mean, when I think about increasing revenue or deep recent costs nine times out of 10 we're trying to provide more value, right, so increasing revenues, usually they go to option for us, but they're sometimes where it's obvious. Hey, there's a low hanging fruit and cutting costs, and if it's relatively straightforward to do, then let's do it. I think with all the cloud infrastructure that we've been able to build on top of, we've been able to focus a lot of our energy and efforts on innovating, building new things, cementing our industry position. And, yeah, I think it's been awesome. On top >> of what? Want to give you the final word? Any addressing insights in your business? You know, it's like I like food and I like eating out and, you know, it feels like, you know, we've kind of flatten the world in lot is like, You know, I think it was like, uh, like, 556 years ago. The first time I went white and I got addressed to Pok. Everybody in California knows, okay, but I live on the East Coast now. I've got, like, three places within half an hour of me that I could get it. So you know those kind of things. What insight to you seeing you know what's changing in the marketplace? What? What's exciting you these >> days? Yeah, I mean, for us, we've definitely seen phenomenon where different food trans kind of percolate across different areas. I'm going to start in one region and then spread out across the entire United States or even Canada. I would say I don't way try to have as much emergence election on a platform. It's possible so that no matter what the new hot hottest trend is that more likely than not, we're gonna have what you want on the platform. And I think what's really exciting to us over the next couple years is you know, last year we actually started way started satisfying grocery delivery. So, uh, in fact, we power a lot of grocery deliveries for Walmart today, which is exciting, and a lot of other grocers lined up as well. We're gonna see how far we can take our logistics capabilities from that standpoint, But really, we want to want to have as many options as possible for our customers. >> Anything. Thanks so much for joining us. Congressional Congratulations on the progress with your death for Cory Quinn. I'm stupid and we'll be back here with more coverage from eight of US summit in New York City. 2019. Thanks is always watching. Cute

>> live from New York. It's the Q covering AWS Global Summit 2019. Brought to you by Amazon Web service is >> Hi and welcome to New York City, The Big Apple. I'm stupid and my co host for today is Cory Quinn, and this is eight of us. Summit New York City. It is one of the regional events that they have, but these regional events are actually tend to be bigger and more exciting than >> many companies. You know, big events not say that companies don't do good shows, but if you look, we've got 11,500 people in attendance over 120 seconds over 125. Sponsoring partners here in the ecosystem just had Werner Vogels up on stage. A number of the customers such a fin ra and Gordon, who we will have on the program on good energy, a local show it is free to attend Cory. Before >> we get into the technology, though, there's a little bit of a protest going on. Here is actually the second Amazon show in a row that this was was that Amazon re Mars, where a protester talking about I believe it was >> something around about chickens in Whole Foods. Basically, she got really close to the richest man in the world. But the protest here, it's outside, it's going and it's about ice and border control was actually a very well organized protest. Security had to take many of them out for the first least half hour of the of the keynote. Warner stopped a few times and said, Look, I'll be happy to talk to you after, >> but please let me finish. I thought he handled it, respectively. But what? What was your take? >> Very much so. And it's, I think it's an issue with There aren't too many people you'd want associate with on the other side of it, Kids in Cages is not something anyone sensible wants to endorse. The challenge that I continually have, I think, is that it's easy to have these conversations. Now is not the time. Okay, great. Typically, it's difficult to get big companies to say, and now is the time for us to address this and anything outside of very carefully worded statements. So I empathize. I really do. I mean, as a speaker myself, it's terrifying to me the idea that I could go up and have to have that level of conversation and a suddenly interrupted by people yelling at me. It's gotta be nerve wracking. Speaking to 10,000 people on its own is not easy, and having to carry that forward with something that effectively comes down to a morality question is it's gotta be tough. I have sympathy for people going through this on work on Amazon, and it's I don't know that there's a great answer right now. >> So, Cory, I know you know You are not >> deep in the government space, but you were at the public sector show there and there's always this discussion as you know Well, you're supplying the technology. While Amazon might not be providing, you know, bummers and, you know, guns. They are providing the technology underneath. Facial recognition causes a lot of concern, you know, rightfully so that make sure we understand this thing. Security products in the light. So, you know, when you have the Department of Defense and Border Control as your clients, they do open themselves up for some criticism, >> right? At some point, you have to wonder who you do business with versus who don't do business with and the historical approach. Well, as long as there are sanctions or laws preventing us from doing business with someone, we'll be open to all comers. I some level I find that incredibly compelling. In practice, the world is messy. If things were that black and white, we wouldn't have these social media content, moderation issues. It would be a very different story with a very different narrative. >> Yeah, definitely. Amazon as a whole has a platform, and they have relationships. You know, Jeff Bezos has met with, you know, the highest levels of power in this country. They've got Jay Carney. The foot was part of the Obama administration helping with policy. So absolutely with great to see Amazon, you know, take a strong statement and you know, for good is something that we're hugely a part of and therefore way want to see all the suppliers you know, having a dialogue and helping to move this >> for you. And I think the lesson that we take from it, too, is that there are multiple ways to agitate for change and protest. One is to disrupt the keynote, and I understand that it gets attention and it's valuable. But you could do that, or you can have a seat at the table and start lobbying for change, either internally or with stakeholders. But you need to it. There's a bunch of different paths to get there, and I think that I don't blame anyone who's protesting today, and I don't blame anyone who chose not to. >> All right, So let's let's let's talk now about some of the content. So, Cory lutely, you know that there there's in the Amazon ecosystem. Every day we wake up and there were multiple new announcements. A matter of fact. We're always saying, Oh my gosh, how do I keep up with all of the things happening there? Well, one of the ways we keep up with it is reading last week in a VWs, which is your newsletter. I'll do the shameless plug, you know, for much. Appreciate your telling my story, Cory, But Amazon Cloudwatch Container Insight, Amazon event bridge. You know, new developer kids fluent bid, you know, talking about the momentum of the company security databases on you know, the general adoption overall, you know, quick take for me as I love to hear you know, Werner up there talking about applications. It's not purely Oh, everything's going to live in the cloud and it'll be sun shines in unicorns and rainbows. But we understand that there's challenges here, your data and how we manage that requires, you know, >> a broad ecosystem that was the event bridge is something I would >> definitely want a drilling on because from a serverless environment, not just one thing, it's lots of different things. And how do we play between all of them? But since you do sort through and sift through all of these announcements, give us a date. It was there anything new here? Did you already know all of this because it's in your R S s feed Newsletters are you know what did grab you? >> Surprisingly, it turns out, in the weeks with you have, obviously reinvent is just a firehose torrent that no human being can wind up consuming. And you see a few releases in Santa Clara and a few in New York. But I thought I knew most of things that were coming out, and I did. I missed one that I just noticed. About two minutes we went on the air called cloudwatch anomaly detection the idea is that it uses machine learning. So someone check that off the business card of the bingo card. And at that point, you take all the cloudwatch logs and start running machine learning and look for anomalies discrepancies. In the rest it uses machine learning. But rather than go figure out what it's for, it's applied to a very specific problem and those of the A. I am l products. I like the best where it's we're solving a problem with your data for you. But riding guard rails as opposed to step one, hire $2,000,000 worth of data. Scientists Step two. We're still working on that. >> All right, so court cloudwatch actually e saw the event bridge that I mentioned, which is that event ecosystem around Lambda uh, Deepak, who we're going to have on the program that said that it was the learnings from cloudwatch that helped them to build. This may be for audience. Just give us cloudwatch. There's a lot of different products under that. Give us what you hear from your customers. You know where cloudwatch fits and, you >> know, let's start at the beginning For those who are fortune enough never to have used it. Cloudwatch is AWS is internal monitoring solution. It gathers metrics, it gathers logs, it presents them in different ways. And it has interesting bill impacts as a cloud economist. I see it an awful lot where every time you the monitoring company, walk around the Expo hall, you'll trip over 40 of those. They're all gathering their data on the infrastructure from Bob Watch and interpreting that. Now you're paying for the monitoring company and you're paying for the FBI charges against it. And I was sort of frozen in amber, more or less for a good five years or so. I wrote a bit of a hit piece late last year and had some fascinating conversations afterwards, and it hasn't aged well, they're really coming to the fore with a lot of enhancements that are valuable on it. The problem is, there's a tremendous amount of data. How do you get a signal from it? How do you look at actionable things? If you're running 10,000 instances, you're not looking at individual metrics for individualism. You care about aggregates, but you also care about observe ability. You care about drilling down into things Bernard talked about X rays distributed tracing framework today, and I think we're rapidly seeing across the board that it all ties back to events. Watch events is what's driving a lot of things like >> Event Bridge >> and the idea of an event centric architecture is really what we're trying to see Software's evolving into. >> Yeah, it's one of those things, you know, when you >> talk, you know that server list term out, their events are at the center of them. And how do I get some standardization across the industry? There's some open source groups that are trying to insert themselves and give some flexibility here. You know, when I want understand from Vin, Fridge says, Okay, it's Lambda and their ecosystem. But is this going to be a lame the only ecosystem or, well, this lay the ground work so that, yes, there are other clouds out there. You know what azure has other environment? Will this eventually be able to extend beyond this, or is this a Amazon proprietary system? Do you have any insight there? >> It's a great question. I would argue that I guess one of the taking a step back for a second. It would have to be almost irrelevant in some cases. When you start looking at server this lock in, it's not the fact that who there's this magic system only in one provider that will take my crappy code and run it for me. It's tied into the entire event ecosystem. It's tied into a bunch of primitives that do not translate very well. Now, inherently by looking What event bridge is in the fact that anyone who wants to be integrated into their applications, you absolutely could wind up with a deep native integration coming from another large, hyper scale pop provider? The only question is, will >> you great, great point. I know when I've talked to some of the surveillance ecosystem, it's that skills on understanding, you know, each environment because today, doing A W S versus doing azure, there's still a lot of difference, is there? Sure I could learn >> it, But yeah, and one of the things that I think is fascinating to is we've seen a couple attempts of this before from other start ups that are doing very similar things in open stores or trying to do something themselves. But one of the things that change this tremendously here is that this is a double us doing, that it doesn't matter what they do, what ridiculous name they give it when they want something. World generally tends to sit up and notice, just by sheer virtue of its scale and the fact that it's already built out. And you don't have to build the infrastructure yourself to run these things. If anything has a chance to start driving a cohesive standard around this, it's something coming from someone like Amazon. >> Yeah, absolutely. All right, Cory, you know, database is always a hot topic. Latest stat from Werner is, I believe it was 150,000 databases migrated. You called and >> said, Hey, why's amazon dot com on there? Jeff Faris like, Well, they have a choice. And of course, Amazon would point out they were using >> a traditional database for a long time and now have >> completely unplug the last in a >> long time. But they finally got off of a database that was produced by a law firm, and I understand the reasons behind that. But I was talking with people afterwards. Amazon does have a choice. Do they use, and if AWS wants to win them over to use their service is they have to sell them just like any other customer. And that's why it's on that slide as a customer. Now, if you're not in the ecosystem like some of us are, it looks a little disjointed of weight. C successfully sold yourself and put yourself on the slide. Well, okay, >> yes, it was actually so so the biggest thing I learned at the Amazon remarks show when >> you talk about all the fulfillment centers in the robotics and machine, learning almost everything underneath there it's got eight of us. Service is underneath it, So absolutely, it is one company. But yes, Amazon is the biggest customer of AWS. But that doesn't mean that there isn't somewhere, you know. You know, I still haven't gotten the word if they're absolutely 100% on that WS because we expect that there's some 400 sitting in the back ground running >> one of those financial service things. Maybe they finally micro did that one >> that's rather building in AWS 400. >> All right, Cory, what else you know either from the key note or from your general observations about Amazon that you want to share? >> I want to say that it's very clear that Amazon is getting an awful lot of practice at putting these events on and just tracking it here. Two year, Not just the venue. Logistics, which Okay, great. Get a bunch of people in a conference room, have a conversation. Do Aquino throw him out the end. But the way they're pacing the chinos, the way they're doing narratives, the customer stories that are getting up on stage are a lot less challenging. But then they were in years past. Where people get on stage, they seem more comfortable. It's very clear that a number of Amazon exacts not just here but another. Summits have been paying serious attention to how to speak publicly to 10,000 people once it's its own unique skill. >> Yeah, and you gotta like that, You know that. You know, the two first customers that they put on which will have on financial service is, of course, a big presence here in New York City. Gord Ash has their headquarters, you know, just a few blocks uptown from good, deep stories. Isn't you know, there there's that mixed that they did a good job. I thought of kind of cloud 10 >> one because still many customers are very early on that journey. We're not all cloud native, you know, run by the developers and everything there. But, you know, good looks of technology and the new pieces for those people that have been in a while, but still, you know, welcoming and embracing for how to get started >> and the stories we're moving up the stack to. It's not. >> We had a bunch of the >> EMS, and we put them in a different place. Okay, which is great news. Everyone starts there. But now the stories are moving into running serious regulated workloads with higher level of service is And that's great, because it's also not the far extreme Twitter for pets. We built this toy project last week when someone else fell through. And now we have to give this talk. It's very clearly something large enterprises. >> Yeah. So, Corey, last thing I want to ask you is you remember in the early days, you know, that public cloud? Oh, it was It was cheap and easy to use today. They have 200 instance types up there. You know, What does that mean for customers? You know you are a cloud economist. So need your official opinion diagnosis. >> I think it reduces the question, too, before you buy a bunch of reserve businesses. Are you on the right instance? Types. And the answer is almost certainly not just based on statistics alone. So now it's a constant state of indecision. It's rooted in an epic game of battleship between two Amazon S. V. V S. And I really hope one of the winds already so we can stop getting additional instance dives every couple of months. But so far no luck. >> So in your your your perfect world, you know what the announcement reinvented, fixes the problem. >> That's a really good question. I think that fundamentally, I don't I don't And I don't think I have any customers who care what type of incidents they're running on. They want certain resource levels. They want certain performance characteristics. But whatever you call that does not matter to them and having to commit to, though what you picked for 1 to 3 years, that's a problem. You don't have to. You can go on demand, but you're leaving 30% of the day. >> Yeah, and I love that point is actually taken notes fin rot. I want to talk to them because they say they've been three major re architectures in four years. So therefore, how did they make sure that they get the latest price performance but still get, you know, good, good economics on the outdated >> regulatory authority? I just assume they get there with audit threats when it comes time >> for renegotiating. >> All right. You're Cory Quinn. I am stupid. I mean, we have a full day here of water wall coverage from eight of US. Summit, New York City. Thank you so much for watching.

>> live from New York. It's the Q covering AWS Global Summit 2019 brought to you by Amazon Web service, is >> Welcome back. Rush hours started a little bit early here in New York City, with over 10,000 people in attendance for any of US Summit in New York City. I'm stupid, and my co host for today is Corey Quinn. Having a welcome to the program to first time guests from our host Amazon Web service is to my right. Here is Deepak Singh, who is the director of Compute Service's. To his right is Aaron Cow, Who's the senior manager product marketing Gentlemen, thanks so much for joining us. Thank >> you for having us >> for having us, all right, so we know that every day we wake up and there's new announcements coming from Amazon, and the only way most of us keep up with it is trying to re Cory's newsletter here. But in your group and computer, we know there's a lot going on and quite a few announcements. So, Aaron, what do you kick us off with? Some of the hard news that went >> through this morning? Yeah, we just launched Amazon event. Bridgette's Ah, serverless event boss that allows youto connect your applications with data from sources like sass applications. A devious resource is in your own applications. >> All right, So Deepak would look to dig into that a little bit. I like you said, you that Amazon. You learned a lot from cloudwatch in building this tool. Everybody looking at kind of lambda and the service faces, Like Okay, how all these pieces together is that all? Amazon service is all the time. And, of course, Amazon has a huge ecosystem. But help help us understand a layer down. You know how this works. >> Yeah. So, you know, a dress service send events watchman consumer event from one of the best ways to do it is through Lando. Lando. One of London's biggest trends is the number off integration we have with events both taking in events and triggering event. But to your point there already events inside database system. I think one of the things as a service owner, that really excites me about event. How now? Customers of access, not just two ventricles inside eight of us were awesome apartments extended so that the application you can build will be really exciting. >> Quite a few other announcements maybe August or someone CK >> is another announcement where it's open. Source. Software development framework allows you to model your applications using programming language like typescript Job a python and got that. You know the whole thing with building in the cloud. It's slightly different. You usedto take your coat. Put it on a servant. Run it. Now people are building things a little more distributed. Using a lot of different resource is for their applications, so it's getting provisioning. Your infrastructure is a little bit harder, right? Either Have to do a lot of things manually. Are maybe you're writing. A lot of scripts are using a domain specific language, But with CD Kay, you're now able to use the programming languages that you're hurting your applications with two model and provisions your infrastructure. So it's super helpful. Really think it's gonna help developers increase their development velocity? They're able to use things like loops, conditions, object oriented programming. They don't have to do context switching and just a few lines of code. They're able to do a lot more. All right, >> I want I want a playing with it a little bit when it was in review, and one of things that I found that it was extremely helpful was it was a lot easier for me to write something in using CD kay and then see what that rendered down to in terms of cloud formation. And then, oh, I guess that's how I do it in cloud formation, which was great. The counterpoint, though, is it also felt, at times like it was super wordy. So if I read that what it generates compared to what I normally right, which is admittedly awful. But it's all right, we'll start to feel like I'm doing it wrong with that. And then with amplify and with Sam and the rest. There's a lot of higher level abstractions that build cloud formation for you. But then it renders down in a few different key ways under the hood. How much are these products that you're coming out with starting to shape the direction of confirmation itself? Or is that mostly baked and done? >> There's a lot of products that we're building that you know are complimenting information. Information is the template ing modeling language to provisional abusive resource is put on top of that. We have things like Sam, right? That provides a declared of ATM or high level abstracted declared way to build on topical information. You know, we have amplified also use this information to help you build mobile applications in front development and then finally have see decay for general use other things. They're all complimenting and you know are things customers are asking for helping us >> get the ecosystem. Deepak. The container space, of course, has been You know what one of these tidal waves that we've been watching on It's fundamentally changing the way people architect their applications. That huge impact on your product line Give us the update. If you could just start with some of the high level. Remember first when I talk to you. A couple of years ago, the whole kubernetes piece was sorting out. So you know, e c s E. K s usedto have a much longer name that Cory >> Cory. Finally, you fix the compensation problem where someone was getting compensated based upon number of syllables in a service name. So good on you on that one. >> Right on. Uh, you know, acronym, am I? Maybe you can you know, settle once and for all. You know how how we pronounce that >> I'm old school in love with the Army. >> But what what walk us through? Kind of. You know, your container service is, >> I think, the great thing about container, I said, adoption is everywhere on what we find. It brought a VCs the growth of cares where they're running it on to our fargate. Everything is growing like crazy because people find new interesting ways to run applications based on what they know. One what they're comfortable with their customers. Customers like Snap. There's no community well, and they're building on their building a big chunk of their new infrastructure on kneecaps or need to be with, and it basically helped develop a velocity. On the flip side, your customers like Turner Broadcasting that run a lot of their Web service is the comedy central content properties like that on Fargate because they can just stamp them out. They all you know, it's about time. It's a service that you can just keep expanding. So it boils down to one of the key things that you're comfortable with. One of the reasons you fix something if you are running like snap across. You know, in many different looks places you are likely to choose community and standardize on that. So that's the best part for me is people have choices and then the pic based on what they need. At that point in time, it can be two different teams at the same place. Picking a different solution. I will add that one of the areas that we are focused on now is a dub ability and develop experience, though the areas that our customers have been asking for CD Kay played into that record in the demo this morning. And with the probability with container inside on with the fluid that be announced, I think though that area, they do a lot more >> going forward, right? That was one of those cloudwatch container insights. Just explain what that one is >> so historically, when you do cloudwatch look very bm centric, you're looking at CPU memory. You're zooming application. We are instances run for a particular period of time. At the container world you have service is with the underlying tasks. Come and go all you know, a very different rate container inside. It's meant to be a world aware of the fact that you're containerized application that fast service is and part, they're able to get more fine grained metrics on the things that container customers care about. And you're not trying to use the BM centric language to look at the content. That's the biggest reason for doing that. And then on the floor in bedside Boy, our customers want loud rounding to whatever they want to do it on where they understand three or elasticsearch. We do that with data borrows. So we basically wrote a bunch of open source plug in for fluent, but they just end your log where you want them to go. That's kind of maybe a >> Yeah, I view it as more of a log router than I do. Almost anything else? Yeah, a question of where did it come from? Where does it go? How do you do? Keep straight. It's at this point. What is it out? What is it output to these days of their various destination options? Third party vendors cloudwatch history >> to plug in 14315413 because so many people in the center there with three the other one was like Anita. There. Apart from there, you can send it to read, Chef, you can send it todo you can send it to elasticsearch. So based on what however you want and I'll analyze it, you can send it to a custom resource. So you want you're using some third party provider. You can just send your logs over to those. >> Corey, you know, you're dealing with a lot of customers. You know, there's so many, you know, different instance types and some of some of the pieces. You know, what's the feedback you're giving? You know, Amazon these days >> entire depends upon the service teams, and it ranges from This is amazing. Excellent job, too. Okay, it's a good start, and it's always a question, though. It's when you have what 200 service options are darn near. It at this point aren't 70. It's impossible to wind up with something that is evenly consistent, and you have service is that air sub components of other service is built on top. I mean, I think the uh, I guess the feedback I've been giving almost universally across the board is assume that I am about 20% as smart as you right now seem to think I am and then explain it to me, and then I'll probably understand it a lot better. It comes down to service the storytelling more or less of meeting people of various points along their journey, and that I was mentioning in our editorial session just before this segment that that's something that AWS has markedly improved on the last two or three years, where you have customer stories that are rapidly moving up the up the stack as Faras Leverage Service's It's not just we took the EMS, and now we run them somewhere else. Now it's about building of extremely volume intensive applications on top of a whole bunch of managed service is and these air serious cos these air regulators. It's not just Twitter for pets anymore. >> Nothing wrong with that. No, >> So way were discussing like Enron was a great case this morning, and they talked about in the four years that they've been on, they re architected three times, you know, how do you balance all of these new wins is coming out with, you know, how do we make sure that I deploy something today that I've got the flexibility to change. But, you know, I want to be able to lock in my pricing and make it easier. >> Actually, we think about that quite a bit. One of the reasons we met, the way we did something that sits outside a container orchestrator. What? It doesn't lock you into choosing one or the other or even using an architecture. You can start over the monolith, start putting sidecars on it. It's getting with the ability to all your traffic portions of applications. You can start breaking out. You can put them on target. You can put them on PCs. You can put them on it, too. I think that is something we did very consciously because so many of our customers are in that position. And I think more and more are going to go higher up the stock using managed databases. You think lambda. But it's not decision they need to make all up front. They can do it piecemeal, and we see a custom fender. The good example there done that. >> I think one of the >> philosophies of like eight of us is giving customers building blocks the buildings on, so the whole thing is here's a new primitive that you can use. Then you can take it out, replace something with something else, depending on your needs. So we give customers flexibility and choice. >> And part of the problem is that that very much becomes a double edged sword. I mean, most recently you've had effectively declared war on alphabet. I don't mean the large cloud provider that turns things off for a living. I'm talking about the English alphabet where you take a look at all the different ec2 instance types. I think in US East one. Now there's over. What is it? 100 90 different instances you can pick from. It leads to analysis paralysis. Which one do I pick? What's the right answer? What am I committing to? What am I not? And you see that? That's a microcosm. The larger service problem. I want to build a Web app that does a thing. Which service is do I use? You open up the service listing and you just get this sort of sinking sensation. I get that. I can't imagine what someone new to the space is getting to >> you, and this is where things like amplify fargate aws patch. You don't need to select an instance where you just tell us for your requirements are on Batch makes that collection for you the core building. What's important because you can't really figure out what to do. But then you see us too much more about the attack to help people get there. It's an ongoing thing that will keep trying to tackle, but you see a lot more of that. >> It's controversial. One of my favorite things about Lambda, for example, is there's one knob ram, and as you turn that up, other performance characteristics increase and people complain about it. But I love the simplicity because I don't have to sit and think and make all these different decisions. It's one access, >> but if you want more knob, you can you fuck it. So I think that that's the beauty ofit that you do have that choice. >> Yeah, one lines there, and I really liked it. Borders keynote. Is he said way? Really? You know my words, commoditized. I t We all have access to all of the tools now, you know that was you know what big date originally file. It also was used to have to be a nation state 4100 to be able to do some of these things. So, you know, what do you hear from customers? How do they make sure you know, they're staying competitive and ahead on their four in that relationship between the business and I T. What do you hear from your customers these days? >> In terms of that? Well, I think, um, for you know, for customers like I think of Emperor age is a, uh, a pretty good example off that in terms of customers asking us for ability to, you know, integrate their SAS providers and a great a lot of different things and not have thio you No, no, no. >> I have >> to do a lot of undifferentiated heavy lifting and things like that. And customers are increasingly moving towards, like avenger oven architectures. And they asked us, Hey, we really like cloudwatch events and how you do things with a iittie automation and then bringing SAS providers and on way wantto you know, we don't want to build a polling infrastructure and orderto access athe eyes and do all all the heavy lifting. What we did was we built out way took cloudwatch events and added new features for SAS applications and build that into a separate service for people to use. That's like, you know, a lot of the relationships we have our customers listening to what they need and giving them what they want. >> I think that that's a very valuable thing. We used to say, You know, five years ago you would talk about, you know, let's get rid of indifferent, heavy lifting Well, now it's like, No, no, let's enable you know some thing that you would have thought was heavy lifting and we're daunted to be able to do it. But now hopefully it's easier because a lot of this stuff, you know, he said, This is still a little bit daunting, and you know, you've got a lot of ecosystem and service providers, and service is help us. You take care of, you know, because it's the paradox of choice. With all the options that you >> have on. I think that's the beauty of what I'm in a customer that smart. They managed to find interesting ways to keep challenging us and keep us busy. But I also think that really, really many of them the ones who've been able to be successful. I figured out what it needs to be. Take all the tools to give them which other ones where they want to completely hand it over to AWS and give us the responsibility. And then which ones today really feeling, get they care about and the ones who can find their balance of the ones that we see moving faster. I think that's what we're trying to >> write that one thing that does absolutely permeates virtually every service team I've worked with that AWS. I mean, I've had this experience with you where I talk about how my use case isn't a terrific fit for your product, and your response is always well, what is your use case? It's not. Is starting off on the baseline assumption that my use cases ridiculous, which, let's face it, it probably is. But being able to address a customer need to understand that even if it doesn't dictate, road map is incredibly valuable, and I don't find there are too many players in any space, let alone this one that are willing to have the patience to listen to. Frankly, some loud person wearing a suit. >> Way try. I mean, I think you heard me say this so much like a big junk. 85 90% of a road map. Customer request. I would say that even though remember remaining 10% maybe not think that they're directly asked for but think that you observed their running to or that we run into working with, you know, the one of the customers go ahead of the pack. Okay. They have this problem, Baker. How do you generalize that? And we try and understand what it means. One of the reasons to be made the container road map public was This space is moving so quickly. It's almost impossible for us to talk to enough customers to figure that out. So, like, okay, that gives us an avenue for them to come to us and just tell us and get have >> issues. Yeah, s o right. Final question for both of you directions. Looking forward, you know, the road map we love when there is publicly facing material, not under the NBA's that we normally have to be able to hear. So what are you hearing from your customers? What direction are they pulling you towards and that we should expect tow watch aws kind of a cz we head towards reinvent later this year. Yeah, >> like customers are asking us for different things for developer experience, especially event driven architectures. I think there's gonna be a lot of interesting things happening in the land of space and that entire space >> on to add to that. I think your point earlier helping the simplified choices is going to be a big part of it. Meeting them where they are in their ideas with the cooling is a big part of what you'll see us do. So you know, I think you saw examples today. We'll keep building on top of >> All right. Well, send our congratulations to the two pizza teams that worked on all of the projects that were announced today. Look forward to seeing you. You know, down the road in tracking down. Thanks so much. And welcome to be in Cuba one night having us Deepak, you know, from AWS. He's Cory Quinn on student back with lots more coverage from 80 West Summit here in New York City. Thanks for watching

>> live from New York. It's the Q covering AWS Global Summit 2019. Brought to you by Amazon Web service is >> Hi and welcome to New York City, The Big Apple. I'm stupid and my co host for today is Cory Quinn, and this is eight of us. Summit New York City. It is one of the regional events that they have, but these regional events are actually tend to be bigger and more exciting than many companies. You know, big events not, you know, say that companies don't do good shows, but if you look, we've got 11,500 people in attendance over 120 seconds over 125. Sponsoring partners here in the ecosystem just had Werner Vogels up on stage. A number of the customers such a fin ra and Gordon, who we will have on the program on good energy, a local show it is free to attend Cory. Before we get into the technology, though, there's a little bit of a protest going on. Here is actually the second Amazon show in a row. That this was was an Amazon re Mars, where a protester talking about I believe it was something around about chickens in Whole Foods. Basically, she got really close to the richest man in the world. But the protest here, it's outside, it's going and it's about ice and border control was actually a very well organized protest. Security had to take many of them out for the first least half hour of the of the keynote. Warner stopped a few times and said, Look, I'll be happy to talk to you after, but please let me finish. I thought he handled it, respectively. But what was your take? >> Very much so. And it's, I think it's an issue with There aren't too many people you'd want to associate with. On the other side of it, kids in Cages is not something anyone sensible wants to endorse. The challenge that I continually have, I think, is that it's easy to have these conversations. Now is not the time. Okay, great. Typically, it's difficult to get big companies to say, and now is the time for us to address this in anything outside of very carefully worded statements. So I empathize. I really do. I mean, as a speaker myself, it's terrifying to me the idea that I could >> go up and >> have to have that level of conversation and a suddenly interrupted by people yelling at me. It's gotta be nerve wracking. Speaking to 10,000 people on its own is not easy, and having to carry that forward with something that effectively comes down to a morality question is it's gotta be tough. I have sympathy for people going through this on work on Amazon, and it's I don't know that there's a great answer right now. >> So, Cory, I know you know You are not deep in the government space, but you were at the public sector show there and there's always this discussion as you know Well, you're supplying the technology. While Amazon might not be providing, you know, bummers and, you know, guns. They are providing the technology underneath. Facial recognition causes a lot of concern. You rightfully so that make sure we understand this thing security products and the like. So you know, when you have the Department of Defense and Border Control as your clients, they do open themselves up >> for some criticism, right? At some point you have to wonder who you do business with versus who don't do business with and the historical approach. Well, as long as there are sanctions or laws preventing us from doing business with someone, we'll be open to all comers. I some level I find that incredibly compelling. In practice, the world is messy. If things were that black and white, he wouldn't have the social media content, moderation issues. It would be a very different story with a very different narrative. >> Yeah, definitely. Amazon as a whole has a platform, and they have relationships. You know, Jeff Bezos has met with, you know, the highest levels of power in this country. They've got a carny. The foot was part of the Obama administration helping with policy. So absolutely with great to see Amazon, you know, take a strong puff statement and you know, for good is something that we're hugely a part of and therefore way want to see all the suppliers you know, having a dialogue and helping to move this >> for you. I think the lesson that we take from it, too, is that there are multiple ways to agitate for change and protest. One is to disrupt the keynote, and I understand that it gets attention and it's valuable But you could do that, or you can have a seat at the table and start lobbying for change, either internally or with stakeholders. But you need to it. There's a bunch of different paths to get there, and I think that I don't blame anyone who's protesting today, and I don't blame anyone who chose not to. >> All right, So let's let's let's talk now about some of the content. So Cory lutely, you know, there there's in the Amazon ecosystem. Every day we wake up and there were multiple new announcements. A matter of fact. We're always saying, Oh my gosh, how do I keep up with all of the things happening there? Well, one of the ways we keep up with it is reading last week in a VWs, which is your newsletter. I'll do the shameless plug, you know, for a much appreciated by telling my story. Cory. But Amazon Cloudwatch Container Insight, Amazon Event Bridge. You know, new developer kids fluent bit, you know, talking about the momentum of the company security databases on you know, the general adoption overall, you know, quick take for me as I love to hear you know, Werner up there talking about applications. It's not purely Oh, everything's going to live in the cloud and it'll be sun shines and unicorns and rainbows. But we understand that there's challenges here, your data and how we manage that requires, you know, a broad ecosystem that was the event bridge is something I would definitely want drilling on because from a serverless environment, not just one thing, it's lots of different things. And how do we play between all of them? But since you do sort through and sift through all of these announcements, give us a date. It was there anything new here? Did you already know all of this because it's in your R S s feed newsletters? What did grab you? >> Surprisingly, it turns out, in the weeks with you have, obviously reinvent is just a firehose torrent that no human being can wind up consuming. And you see a few releases in Santa Clara and a few in New York. But I thought I knew most of things that were coming out, and I did. I missed one that I just noticed. About two minutes we went on the air called cloudwatch anomaly detection. The idea is that it uses machine learning. So someone check that off the business card of the bingo card. And at that point, you take all the cloudwatch logs and start running machine learning and look for anomalies discrepancies. In the rest it uses machine learning. But rather than go figure out what it's for, it's applied to a very specific problem and those of the A. I am l products. I like the best where it's we're solving a problem with your data for you. But riding guard rails as opposed to step one, hire $2,000,000 worth of data. Scientists Step two. We're still working on that. >> All right, so court cloudwatch Actually, you saw the event bridge that I mentioned, which is that event ecosystem around Lambda uh, Deepak, who we're going to have on the program that said that it was the learnings from cloudwatch that helped them to build. This may be for audience. Just give us cloudwatch. There's a lot of different products under that. Give us what you hear from your customers. You know, we're cloudwatch fits and, you >> know, let's start at the beginning for those who are fortune enough never to have used it. Cloudwatch is AWS is internal monitoring solution. It gathers metrics. It gathers logs, it presents them in different ways. And it has interesting bill impacts as a cloud economist. I see it an awful lot where every time you, the monitoring company, walk around the Expo Hall, you'll trip over 40 of those. They're all gathering their data on the infrastructure from Bob Watch and interpreting that. Now you're paying for the monitoring company and you're paying for the FBI charges against it. And it was sort of frozen in amber, more or less for a good five years or so. I wrote a bit of a hit piece late last year and had some fascinating conversations afterwards, and it hasn't aged well, they're really coming to the floor with a lot of enhancements that are valuable on it. The problem is, there's a tremendous amount of data. How do you get signal from it? How do you look at actionable things? If you're running 10,000 instances, you're not looking at individual metrics or individualist. You care about aggregates, but you also care about observe ability. You care about drilling down into things. Burner talked about X Rays distributed tracing framework today, and I think we're rapidly seeing across the board that it all ties back to events. Cloudwatch events is what's driving a lot of things like Event Bridge and the idea of a defense centric architecture is really what we're trying to see Software's evolving into. >> Yeah, it's one of those things, you know, when you talk, you know that server lis term out, their events are at the center of them. And how do I get some standardization across the industry? There's open source groups that are trying to insert themselves and give some flexibility here. You know, when I want understand from Ben, Fridge says, Okay, it's Lambda and their ecosystem. But is this going to be a lame the only ecosystem? Or will this lay the ground work so that, yes, there are other clouds out there? You know what azure has other environment? Will this eventually be able to extend beyond this for? Is this a Amazon proprietary system? You have any insight there? >> It's a great question. I would argue that I guess one of the taking a step back for a second. It would have to be almost irrelevant In some cases when you start looking at server this lock in, it's not the fact that who there's this magic system only in one provider that will take my crappy code and run it for me. It's tied into the entire event ecosystem. It's tied into a bunch of primitives that do not translate very well. Now, inherently by looking. What event bridge is in the fact that anyone who wants to be integrated into their applications, you absolutely could wind up with a deep native integration coming from another large, hyper scale pop provider? The only question is, will >> you great, great point. I know when I've talked to some of the server lis ecosystem. It's that skills on understanding, you know, each environment because today, doing A W S versus doing azure, there's still a lot of differences there. Sure, I could learn it, but >> yeah, and one of the things that I think is fascinating to is we've seen a couple attempts of this before from other start ups that are doing very similar things in open stores or trying to do something themselves. But one of the things that change this tremendously here is it this is AWS doing that? It doesn't matter what they do, what ridiculous name they give it when they want something. World generally tends to sit up and notice, just by sheer virtue of its scale and the fact that it's already built out. And you don't have to build the infrastructure, help to run these things. If anything has a chance to start driving a cohesive standard around this, it's something coming from someone like Amazon. >> Yeah, absolutely. All right, Cory, you know, database is always a hot topic. Latest stat from Warner is I believe it was 150,000 databases migrated. You know, you called and said, Hey, why is amazon dot com on there? Jeff Faris like, Well, they have a choice. And of course, Amazon would point out they were using a traditional database for a long time and now have completely unplug the last in a >> long time. But they finally got off of a database that was produced by a law firm, and I understand the reasons behind that. But I was talking with people afterwards. Amazon does have a choice. Do they use, And if AWS wants to win them over to use their service is they have to sell them just like any other customer. And that's why it's on that slide as a customer. Now, if you're not in the ecosystem like some of us are, it looks a little disjointed of weight. So successfully sold yourself and put yourself on the slide. Okay, >> Yes, it was actually. So so. The biggest thing I learned at the Amazon remarks show when you talk about all the fulfillment centers in the robotics in machine, learning almost everything underneath there it's got eight of us. Service is underneath it. So absolutely, it is one company. But yes, Amazon is the biggest customer of AWS. But that doesn't mean that there isn't somewhere, you know. You know, I still haven't gotten the word if they're absolutely 100% on that, because we expect that there's some 400 sitting in the back ground running one of those financial service things. Maybe they finally micro did that one >> that's building in AWS 400. >> All right, Cory, what else you know either from the key note or from your general observations about Amazon that you want to share, >> I I want to say that it's very clear that Amazon is getting an awful lot of practice at putting these events on and just tracking a year to year, not just the venue. Logistics, which, Okay, great. Get a bunch of people in a conference room, have a conversation. Do Aquino throw him out the end. But the way they're pacing the Gino's, the way they're doing narratives. The customer stories that are getting up on stage are a lot less challenging. But then they were in years past. Where people get on stage, they seem more comfortable. It's very clear that a number of Amazon exacts not just here but another. Summits have been paying serious attention to how to speak publicly to 10,000 people at once. It's its own unique skill. >> Yeah, and you gotta like that, You know that. You know, the two first customers that they put on which will have on financial service is, of course, a big presence here in New York City. Gord Ash has their headquarters, you know, just a few blocks uptown from good, deep stories. Isn't you know, there there's that mixed that they did a good job. I thought of kind of cloud 101 because still many customers are very early on that journey. We're not all cloud native, you know, run by the developers and everything there. But, you know, good looks of technology and the new pieces for those people that have been in a while, But still, you know, welcoming and embracing offer how to get started >> and the stories we're moving up the stack to. It's not >> We had a bunch of B. >> M s and we put them in a different place. >> Hey, >> which is great news. Everyone starts there. But now the stories are moving into running serious regulated workloads with higher level of service is And that's great because it's also not the far extreme Twitter for pets. We built this toy project last week when someone else fell through. And now we have to give this talk. It's very clearly something large enterprises. >> Yeah. So, Corey, last thing I want to ask you is you remember in the early days, you know that public cloud? Oh, it was It was cheap and easy to use today. They have 200 instance types up there, you know? What does that mean for customers. You know you are a cloud economist. So need your official opinion diagnosis. >> I think it reduces the question, too, before you buy a bunch of reserve businesses. Are you on the right instance? Types. And the answer is almost certainly not just based on statistics alone. So now it's a state of indecision. It's rooted in an epic game of battleship between two Amazon s VVS, and I really hope one of the winds already so we can stop getting additional instance dives every couple of months. But so far no luck. >> So in your your your perfect world, you know what the announcement reinvented, fixes the problem. >> That's a really good question. I think that fundamentally, I don't I don't And I don't think I have any customers who care what type of incidents they're running on. They want certain resource levels. They want certain performance characteristics. But whatever you call that does not matter to them and having to commit to, though what you picked for 1 to 3 years, that's a problem. You don't have to. You can go on demand, but you're leaving 30% of the day. >> Yeah, and I love that point is actually taken. Notes fin rot. I want to talk to them because they say they've done three major re architectures in four years. So therefore, how did they make sure that they get the latest price performance but still get you no good? Good economics on the outdated >> regulatory authority? I just assume they get there with audit threats when it comes time for >> renegotiating. All right. You're Cory Quinn. I am stupid. I mean, we have a full day here of world Wall coverage from eight of US. Summit, New York City. Thank you so much for watching.

>> from the Silicon Angle Media Office in Boston, Massachusetts. It's the cue. Now, here's your host. Day Volonte. >> Hi, >> everybody. Welcome to this cute conversation. I'm Dave Volonte and Stew Minuteman is here with me. We're gonna break down a w s kind of give you Ah, midyear What's happened so far this year with all the events that we've been covering and what to look forward to? Uh, the N Y C Summit is coming up stew. It's been a big year. Obviously. What we came off a re invent. Amazon's got $30,000,000,000 run rate business growing at 40 plus percent per year. That means they're putting 9,000,000,000 of incremental revenue every year into the cloud business. The marketplace, That growth that's roughly as large is tthe e entire Microsoft cloud business, which is astounding >> day that that that's that's the point Amazon definitely has been making for a couple of years. And you're absolutely right. Microsoft is definitely growing at a faster pace than Amazon, and they're running about 75 87 but off a much smaller number. So the incremental add that Amazon has been throwing off the last couple years. Every year they're adding more than an azure every year. So absolutely Amazon, you know, is the lead horse out there. And while you know, the horses on the track behind them are trying fast to catch up Amazon. If you talk about Infrastructures service, AWS is still the lead. >> Well, the big question is. Will that attenuate? And we were at Remember the Nutanix inaugural Nutanix Stop next? Do you rush Pandey, who's very smart guy, somebody we respect a lot. One of the fundamental assumptions they were making is eventually the law of large numbers will catch up to them and know it very well May. But it hasn't yet. I asked John Lovelock, can a company the size of Amazon $30,000,000,000 company grow it for 42% a year? Is that sustainable? And he said, Absolutely. There's nothing to stop them now. Who knows who has the crystal ball? What are your thoughts? >> Yeah, So, Dave, what we saw is Amazon's not sitting still. You know, they always like to say it's always Day one, and if you look at where they're going, the products that they keep throwing off the innovation that they keep moving on and the flywheel that they've had first of customer acquisition with all of the innovations that they're putting out there and the flight well. But I've been talking about the last couple of years the label of data, which is something we want to be a little concerned about. How much data Amazon actually does have both Amazon AWS and Amazon, with all those intelligent devices that are in your homes and connecting everything together. Some people are a little concerned about that. The government's a little bit concerned about that, but absolutely Amazon is going everywhere. We've seen Amazon going into sub segments of the market, going into verticals and going just really broad, really deep. So absolutely I don't see anything slowing a bit on down. It is a company that continues to impress one of >> the challenges. I think those do that that Amazon does have, and this came out of the reinforced >> conference a couple weeks ago in Boston, which was, Ah, conference for security practitioners, a lot of si SOS chief information security officers. The number one challenge that came out of that when you talk to practitioners was their ability to keep up with the innovations that Amazon is putting forth. So, you know, I wonder if we're gonna talk to some commercial customers. You'll see them down the summit probe to see if, in fact, that's part of their challenge. Just the pace at which Amazon brings out new features. But we've done Gosh, we've covered eight events or will have covered eight events this year. Eight productions. It started in the U. K. Where we covered a public sector health care. And then we did the AWS summit London really all about both public sector in the UK as well as the summit in the UK Innovations in the UK around cloud, etcetera, cloud adoption. 12,000 people at the AWS London summit. Now you covered re Mars, which was not the Cube wasn't there, but you were there. What was that show? >> Yes. So, first of all, it's an Amazon >> show, not a native US show, but absolutely showed underneath where eight of us fits into the fulfillment centers of Amazon. And it was about re Marceau Mars A play of course on space. But it was a machine learning automation, robotics in space. So you had the cool blue origin stuff that actually brought in. Robert Downey Jr talked about how he's going to save the planet with, you know, robotics and intelligence out there to help clean up pollution in the globe on and the like. But it was a phenomenal show, but what I said is actually going to show a little bit underneath the covers of Amazon similar what we've seen from eight of us at the reinvent shows over the years. Because, you know, we all know how many boxes air coming to our, you know, our place of home every day and how fast that's going. And so this is what's happening underneath the robotics and machine learning a lot of those Air AWS Service's that are powering that. So it was a fascinating show, Dave and absolutely showed other relationship between Amazon, the parent company. Eight of us, all those cloud service is that helped feed the bigger business. >> Now, June, the Cube covered the D. C. Public sector summit. This is Teresa Carlson's gig. She's the host. Actually, Andy Jassy was there this time. He wasn't there last year when you and I recovering it. And of course, that's all about bringing cloud to public sector, not just federal but all public sector. It includes AH, non profit and education, which talk about in a minute. The big story. There is a jet. I we're talking about tens of billions of dollars going to ah, contract. Oracle, of course, is fighting it. It's going into the courts. I guess they've been a number of reviews or could won't give up its oracle. Amazon clearly is the front runner. Last I read, it was down to AWS and Microsoft, with AWS being the lead contender there. We'll see what happens. I think the decision is coming down this month, July 2019. But it's really again about bringing cloud innovations to public sector. Public sector tends to take things a little bit later than the commercial like. For instance, last year they announced the the VM wear on AWS was available, so you'll see those kinds of things come maybe a year later. But its again. Another big show there 12. 13,000 people there at the D. C Convention center. >> Yeah, Davey, when you talked about the critique of what's happening in Amazon as Amazon goes deeper into all of these verticals How do they help get that information to the user in a way that they need to run their businesses? So my co host for New York City's Cory Quinn was listen to his podcast this morning and he said, That's where Amazon's got dozens of blog's. They've got so many announcements, they haven't done a really good job, something we've seen many companies do. How do I get to you know that business roll and put it in, you know, verbal that they understand, as opposed to just >> Hey, we had 1000 new features >> come out this year and they're awesome. Then you should use everything s o. You know, that's something that, you know the industry as a whole needs to do better at an Amazon. Just in the nature of how fast they're moving is something that they should be able to do a better job. >> And Jennifer is also gonna be in New York City. And one of things he was stressing at reinforce was the marketplace. We had Dave McCann on the just rocketing. I think it was 100,000 census of security subscriptions. I think it was 1,000,000 subscriptions in total so just an amazing ah momentum in the marketplace. But reinforce was all about security. Deep dives on security, chief information, security officers. What came out of that show the big takeaway was was head of AWS is, uh, security. The chief information security officer, Schmidt said. This narrative in the industry that the sky is falling doesn't do anybody any good. Um, it's not productive. We should be more positive. The state of the cloud union is good, like the president of states is State of the Union is strong. Um, having said that, Amazon talks about the shared security model. The practitioners that we talked to said, Yeah, shared model Amazon's going to secure the the infrastructure of the storage, the compute of the database. We are responsible for our end, and it really is on us to make sure that we are secure. So again, back to that point about the pace of innovation that Amazon is putting forth is a challenge for people. AWS imagine is also going down. I think this week what's that you're >> so it's in Seattle and it's you mentioned the public Sector one in D. C, which is government agencies, nonprofits and education. So imagine is a subset of that. My understanding is the education, a nonprofit piece of that from when you and I were in D. C. Last year for the Public sector summit. It's It is impressive how deep Amazon is going into these spaces, the affinity they have. And really, you know how happy the customers are to be able to move fast. So, you know, when you think about nonprofits and think about education, innovation is not the first thing that usually comes to mind because budgets are tight and I don't have enough people. And usually you've got, you know, whatever's left over. But imagine is them. How do we move these forward? How do we You know, we know we need to help transform education. It's so important to train the next generation. So, you know, imagine there are some great stories that come out of that. Jeffrey loves getting those stories, helping us tell those stories through the Cube platform. And so it's the second year we're doing >> Yes, it would be covering that. And then, of course, reinvent will have two sets again that reinvent this year. The Super >> Bowl of our industry, >> right? Sure. Um, something's going on. So unfortunate incidents in Southern California. Big earthquakes, actually. Multiple earthquakes, Right? You had the physical earthquake, and then you had CO I, leonard going to the Clippers. But so I'm interested in sort of poking at this notion of ground stations. So at reinvent last year, Amazon announced on his own ground station, which essentially was ground station is a service. So if I understand it, one of the challenges okay, You launched the satellites, but you still need a ground station to collect the data and then uploaded and analyze it. That's what AWS is is partnering to put in infrastructure that allows you to essentially rent ground station infrastructure. So, you know, they worry about building it in securing it yourself. Because you think about it. It's got to be a secure location. You gotta have fencing. You got a physical security. You got to get the data in. You gotta upload it to the toe. Where we gonna upload it? So Amazon is basically building this service out, saying Don't worry about the ground station piece. Rent that from us, you know, swipe your credit card. Your ground station as a service, and then we'll ingest that data uploaded to the cloud and then apply all of the tooling that we have to allow you to analyze that data. So if you think about the earthquake of devastation, if you don't have a ground station there, you can, in theory, go to AWS and actually spin up a ground station in jest. You know, on the ground, you know, the ground truth as we like to sometimes talk about and actually get satellite imaging and telemetry in that region, you know, this comes into play things like forest fires and all kinds of of natural disaster. >> Dave, even at the remarks show, I attended a session where one of the Amazon partners was talking about not only just getting the satellite data down, but Justus. They have the snowball edge today, which is, you know, for you know, I ot or some remote sites, but some of these satellites are gonna have the compute and storage at in satellite themselves. So if you think about I'm gonna have these geosynchronous satellites. I'm gonna have all this connectivity. And if I could get a gigabit of Ethernet, you know, traffic going to the satellites and I could do the processing at the edge, which is now up in space. I can process that. And you know, that edge that we talked about get to hold another dimension, you know, off off the terra firma to be able to do those kind of analysis. As you said, earthquakes, you know, all the all the climate discussion that's going on, we should be able to have tap into even more. Resource is, and we'll have to rename Cloud if it even goes beyond the Earth. >> And then, um, outpost is the other story that we've been tracking, attracting a lot of stories, but but outpost is starting to ship in beta form. We've seen instances of >> so, so seeing >> it. We just did a little quick right up. >> I mean, Dave, you know, just a ripple went through the >> industry when they showed Hey, here's Iraq and what they're like. This is the exact same rack that we have in the Amazon data centers and why it's a little surprising because we're allowed to see inside the Amazon Data Center. So it's like, Okay, this is what they're computed awaited to 24 in tracking, supposed to a 19 in track. But that line between the public cloud and my on premises environment absolutely is blurring. So everybody wants to see where Amazon's going. They have the big partnership with VM, where Veum, where is already shipping the solution? That is the same software for that Veum wear on AWS in my data center. So, you know, I can have you know, the Dell hardware with the Veum where code or I can have the Amazon hardware with the VM where code coming later this year without post. So that line between public in private is absolutely blurring. And where to my applications live, You know that that future of how fast is eight of us continue to grow? Absolutely. There are applications and data and things that will stay in my own data center and under my control. But that line is definitely blurring. And there's gonna be some re architectures. It's definitely still gonna take a couple of years to sort some of these things out. But we're at some of those inflection points where we'll see some of >> us. So I wrote a post its upon wicked bond kind of analyzing that video, and there's some interesting things that are unique. There's certainly a lot of goodness in there. Not some of the things they talk about are completely unique. Thio, aws. But things like Nitro and their special virtual ization engine and their special chip on Do you want to get a look at that? You take a look at that video and thence to New York City Summit this week. Um, we mentioned some of the innovations that we've seen up to date this year. A lot of talk I'm sure about the marketplace. >> Yeah, I'm wondering if there'll be any ripples, Dave, because the 1/2 of a chick you, too, was supposed to be in New York City. And now it's not, doesn't mean they don't have a strong presence in New York City like London and believe it's somewhere around 12 to 15,000 people. When I went to New York City two years ago was quite impressive. It is a free show, which means if your customer you get in for free. If you're a partner, of course, you're still paying for everything that goes there. But the regional summits are quite impressive and a great way to get in touch with Amazon and all that they're doing. If you don't want to go to the Super Bowl itself, which is, you know, 50,000 plus now in Las Vegas towards the end of the year. >> Yeah, these air, like many reinvents and they're actually quite good. A lot of a lot of practitioner focused on you're gonna you're gonna see that New York City >> did what I always love about every Amazon show I go to. There are customers that are interested learning new things. How can you do better with what I'm doing? But also, how can I change what I'm doing? How can I move forward? So even if it's not adopting the latest and greatest from AWS, the entire ecosystem is going there to meet with those customers and talk about digital transformation? Modern workforce? All of these hot trends definitely play out. Ground zero is the AWS. >> Yeah, and this is by design. As I said before, the pace of innovation is a challenge for people. It's an adoption blocker and so Amazon wants to educate and share the knowledge so that they can get more adoption. OK, stew. Thanks very much. Good luck. This week. Check out silicon angle dot com For all the news, the cube dot net is where the videos will live and watch. Do on John Ferrier and Corey Quinn. Live and check out the cuban dot com for all the research. Thanks for watching Everybody Day, Volonte and Stupid Event. We'll see you next time.

>> Announcer: From Boston, Massachusetts it's The Cube. Covering AWS re:Inforce 2019. Brought to you by Amazon Web Services and it's ecosystem partners. >> Hey, welcome back everyone. This is The Cube's live coverage of AWS re:Inforce in Boston, Massachusetts. I'm John Furrier with Dave Vallante. This is re:Inforce. This is the inaugural conference for AWS on the security and Cloud security market. A new category being formed from an events standpoint around Cloud security. Our next guest is Cube alumni guest analyst Corey Quinn, and Cloud Economist with the Duckbill Group. Good to see you again. Great to have you on. Love to have you come back, because you're out in the hallways. You're out getting all the data and bringing it back and reporting. But this event, unlike the other ones, you had great commentary and analysis on. You were mentioned onstage during the Keynote from Stephen Smith. Congratulations. >> Thank you. I'm still not quite sure who is getting fired over that one, but somehow it happened, and I didn't know it was coming. It was incredibly flattering to have that happen, but it was first "Huh, awesome, he knows who I am." Followed quickly by "Oh dear, he knows who I am." And it, at this point, I'm not quite sure what to make of that. We'll see. >> It's good news, it's good business. All press is good press as they say, but let's get down to it. Obviously, it's a security conference. This is the inaugural event. We always love to go to inaugural events because, in case there's no second event, we were there - >> Corey: Oh yes >> for one event. So, that's always the case. >> Corey: Been there since the beginning is often great bragging rights. And if there isn't a second one, well, you don't need to bring it up ever again. So, they've already announced there's another one coming to Houston next year. So that'll be entertaining. >> So a lot of people were saying to us re:Inforce security event, some skepticism, some bullish on the sector. obviously, Cloud is hot. But the commentary was, oh, no one's really going to be there. It's going to be more of an educational event. So, yeah, it's more of an educational event for sure. That they're talking about stuff that they can't have time to do and reinvent. But there's a lot of investment going on there. There are players here from the companies. McAfee, you name the big name companies here, they're sending real people. A lot of biz dev folks trying to understand how to build up the sector. A lot of technical technologists here, as well. Digging in to some of the deep conversations. Do you agree? What's your thoughts of the event? >> I'm surprised, I was expecting this to be a whole bunch of people trying to sell things to other people, who were trying to sell them things in return, and it's not. There are, there are people who are using the Cloud for interesting things walking around. And that's fantastic. One thing that's always struck me as being sort of strange, and why I guess I feel sort of spiritually aligned here if nothing else. Is cost and security are always going to be trailing functions. No company is excited to invest in those things, until immediately after they really should have been investing in those things and weren't. So with time to market, velocity are always going to be something much valuable and important to any company strategically. But, we're seeing people start to get ahead of the curve in some ways. And that's, it's refreshing and frankly surprising. >> What is the top story in your mind? Top three stories coming out of re:Inforce. From industry standpoint, or from a product standpoint, that you think need to be told or amplified, or not being told, be told? >> Well there's been the stuff that we've seen on the stage and that's terrific. And, I think that you've probably rehashed those a fair bit with other guests. For me, what I'm seeing, the story that resonates as I walk around the Expo Hall here. Is we're seeing a bunch of companies that have deep roots in data centered environments. And now they're trying to come up with stories that resonate with Cloud. And if they don't, this is a transformational moment. They're going to effectively, likely find themselves in decline. But, they're not differentiating themselves from one another particularly well. There are a few very key things that we're seeing people operate within. Such as, with the new port mirroring stuff coming out of NVPC Traffics. You're right. You have a bunch of companies that are able to consume those, or flow logs. If you want to go back in time a little bit, and spit out analysis on this. But you're not seeing a lot of differentiation around this. Or, Hey we'll take all your security events and spit out the useful things. Okay, that is valuable, and you need to be able to do that. How many vendors do you need in one company doing the exact same thing? >> You know, we had a lot of sites CSO's on here and practitioners. And one of the comments on that point is Yeah, he's like, "Look I don't need more alerts." "I need things fixed." "Don't just tell me what's going on, fix it." So the automation story is also a pretty big one. The VCP traffic mirror, I think, is going to be just great for analytics. Great for just for getting that data out. But what does it actually impact In the automation piece? And the, okay there's an alert. Pay attention to it or ignore it. Or fix it. Seems to be kind of the next level conversation. Your thoughts around that piece. >> I think that as we take a look at the space and we see companies continuing to look at things like auto remediation. Automation's terrific, until the first time it does something you didn't want it to do and takes something down. At which point no one trusts it ever again. And that becomes something hard to tend to. I also think we're starting to see a bit of a new chapter as alliance with this from AWS and it's relationship with partners. I mean historically you would look at re:Invent, and you're sitting in the Expo Hall and watching the keynote. And it feels like it's AWS Red Wedding. Where, you're trying to see who's about to get killed by a feature that just comes out. And now were seeing that they've largely left aspects of the security space alone. They've had VPC flow logs for a long time, but sorting through those yourself was always like straining raw sewage with your teeth. You had to find a partner solution or build something yourself out of open source tooling from spit and duct tape. There's never been a great tool there. And it almost feels like they're leaving that area, for example, alone. And leaving that as an area rife for partners. Now how do you partner with something like AWS? That's a hard question to answer. >> So one of the other things we've heard from practitioners is they don't want incrementalism. They're kind of sick of that. They want step functions, that do as John said, remediate. >> Corey: Yeah. So, like you say, you called it the Red Wedding at the main stage. What does a partner have to do to stay viable in this ecosystem? >> Historically, the answer to that has always been to continue innovating ahead of the bow wave of AWS's own innovation. The problem is you see that slide that they put on in every event, that everyone who doesn't work at AWS sees. That shows the geometric increase in number of feature and service releases. And we all feel this sinking sensation of not even the partner side. But, they're releasing so much that I know some of that is going to fix things for my company, but I'll never hear it. Because it's drowned in the sheer volume of what they're releasing. AWS is rapidly increasing their pace of innovation to the point where companies that are not able to at least match that are going to be in for a bad time. As they find themselves outpaced by the vendor they're partnering with. >> And you heard Liberty Mutual say their number one challenge was actually the pace of Cloud. Being able to absorb all these new features >> Yes. >> And so, you mentioned the partner ecosystem. I mean, so it's not just the partners. It's the customers as well. That bow is coming faster than they can move. >> Absolutely. I can sit here now and talk very convincingly about services that don't exist. And not get called out on them by an AWS employee who happens to be sitting here. Because no one person can have all of this in their head anymore. It's outpaced most people's ability to wrap their heads around that and contextualize it. So people specialize, people focus. And, I think, to some extent that might be an aspect of why we're seeing re:Inforce as its own conference. >> So we talked a lot of CSO's this trip. >> Yeah. >> John: A lot of one on ones. We had some interviews. Some private meetings. I'm going to read you a list of key areas that they brought up as concern. I want to get you're reaction to. >> Sure. >> You pick the ones out you think are very relevant. >> Sure. >> Speedily, very fast. Vendor lock in. Spend. >> Not concerned. Yep. Security Native. >> Yeah. >> Service provider supplier relationship. Metrics, cloud securities, different integration, identity, automation, work force talent, coding security, and the human equation. There were all kind of key areas that seemed to glob and be categorically formed. Your thoughts to those. Which ones do you think jump out as criticalities on the market? >> Sure. I think right now people talking about lock in are basically wasting their time and spinning their wheels. If you, for example, you go with two cloud providers because you don't want to be locked into one. Well now there's a rife partner ecosystem. Because translating things like IAM into another provider's environment is completely foreign. You have to build an entire new security model on top of things in order to do that effectively. That's great. In security we're seeing less of an aversion to lock in than we are in other aspects of the business. And I think that is probably the right answer. Again, I'm not partisan in this battle. If someone wants to go with a different Cloud provider than AWS, great! Awesome! Make them pick the one that makes sense for your business. I don't think that it necessarily matters. But pick one. And go all in on that. >> Well this came up to in a couple of ways. One was, the general consensus was, who doesn't like multi Cloud? If you can seamlessly move stuff between Clouds. Without having to do the modification on all this code that has to be developed. >> Who wouldn't love that? But the reality is, doesn't exist. >> Corey : Well. To your point, this came up again, is that workplace, workforce talent is on CSO said "I'm with AWS." "I have a little bit of Google. I could probably go Azure." "Maybe I bought a company with dealing some stuff over there." "But for the most part all of my talent is peaked on AWS." "Why would I want to have three separate security teams peaking on different things? When I want everyone on our stack." They're building their own stacks. Then outsourcing or using suppliers where it supports it. >> Sure. >> But the focus of building their own stacks. Their own security. Coding up was critical. And having a split competency on code bases just to make it multi, was a non starter. >> And I think multi Cloud has been a symptom. I mean, it's more than a strategy. I think it's in a large part a somewhat desperate attempt by a number of vendors who don't have their own Cloud. To say Hey, you need to have a multi Cloud strategy. But, multi Cloud has been really an outcome of multiple projects. As you say, MNA. Horses for courses. Lines of business. So my question is, I think you just answered it. Multi Cloud is more complex, less secure, and probably more costly. But is it a viable strategy for things other than lock in? >> To a point. There are stories about durability. There's business reasons. If you have a customer who does not want their data living one one particular Cloud provider. Those are strategic reasons to get away from it. And to be clear, I would love the exact same thing that you just mentioned. Where I could take what I've built and run that seamlessly on other providers. But I don't just want that to be a pile of VM's and maybe some disc. I want those to be the higher level services that take care of massive amounts of my business for me. And I want to flow those seamlessly between providers. And there's just no story around that for anything reasonable or modern. >> And history would say there won't really ever be. Without some kind of open source movement to - >> Oh yes. A more honest reading of some of the other cloud providers that are talking about multi cloud extensively translates that through a slight filter. To, we believe you should look into Multi Cloud. Because if you're going all in on a single provider there is no way in the world it's going to be us. And that's sort of a challenge. If you take a look at a number of companies out here. If someone goes all in on one provider they will not have much, if anything, to sell them of differentiated value. And that becomes the larger fixture challenge for an awful lot of companies. And I empathize with that, I really do. >> Amazon started to do a lot of channel development. Obviously their emphasis on helping people make some cash. Obviously their vendors are, ecosystems a fray. Always a fray. So sheer responsibility at one level is, well we only have one security model. We do stuff and you do stuff. So obviously it's inherently shared. So I think that's really not a surprise for me. The issue is how to get successful monetization in the ecosystem. Clearly defining lines of, rules of engagement, around where the white spaces are. And where the differentiation can occur. Your thoughts on how that plays out. >> Yeah. And that's a great question. Because I don't think you're ever going to get someone from Amazon sitting in a room. And saying Okay, if you build a tool that does this, we're never, ever, ever going to build a thing that does that. They just launched a service at re:Invent that talks to satellites in orbit. If they're going to build that, I don't, there's nothing that I will say they're never going to get involved with. Their product strategy, from the outside, feels like it's a post it note that says Yes on it. And how do you wind up successfully building and scaling a business around that? I don't have a clue. >> Eddie Jafse's on the record here in The Cube and privately with me on my reporting. Saying never say never. >> Never say never. >> We'll never say never. So that is actually an explicit >> Take him at his word on that one. >> Right. And I'm an independent consultant. Where my first language is sarcasm. So, I basically make fun of AWS in the newsletter and podcast. And that seems to go reasonably well. But, I'm never going to say that they're not going to move into self deprecation as a business model. Look at some of their service names. They're clearly starting to make inroads in that space. So, I have to keep innovating ahead of that bow wave. And for now, okay. I can't fathom trying to build a business model with a 300 person company and being able to continue to innovate at that pace. And avoid the rapid shifts as AWS explores on new offers. >> And I what I like about why, well, we were always kind of goofing on AWS. But we're fanboys as well, as you know. But what I love about AWS is that they give the opportunity for their partners. They give them plenty of head's up. It's pretty much the rules of engagement is never say never. But if they're not differentiating, that's their job. >> Corey: Yeah. >> Their job is to be better. Now one thing Amazon does say is Hey we might have a competing service, but we're always going to favor the customer. So, the partner. If a customer wants an Amazon Cloud trail. They want Cloud trail for a great example. There's been requests for that. So why wouldn't they do it? But they also recognize it's bus - people in the ecosystem that do similar things. >> Corey: Yeah. >> And they are not going to actively try to put them out of business, per se. >> Oh yeah! One company that's done fantastically well partnering with everyone is PagerDuty. And even if AWS were to announce a service that wakes you up in the middle of the night when something breaks. It's great. Awesome. How about you update your status page in a timely fashion first? Then talk about me depending on the infrastructure that you run to tell me when the infrastructure that you run is now degraded? The idea of being able to take some function like that and outsource worked well enough for them to go public. >> So where are the safe points in the ecosystem? So obviously a partner that has a strong on-prem presence that Amazon wants to get access to. >> That's a short term, or maybe even a mid term strategy. Okay. Professional services. If you're Accenture, and Ernie Young, and Deloitte, PWC, you're probably okay. Because that's not a business that Amazon really wants to be in. Now they might want to, they might want to automate as much to that as possible. But the world's going to do that anyway. But, what's your take where it's safe? >> I would also add cost optimization to that. Not from a basis of technical capability. And I think that their current tooling is disappointing. I'd argue that cost explorer and the rest of their billing situation is the asterisk next to customer obsession if we're being perfectly honest. But there's always going to be some value in an external party coming in from that space. And what form that takes is going to change. But, it is not very defensible internally to say our Cloud spend is optimized, because the vendor we're writing those large checks to tells us it is. There's always going to be a need for some third-party validation. And whether that can come through software? >> How big is that business? >> It's a great question. Right now, we're seeing that people are spending over 30 billion dollars a year on AWS and climbing. One thing we can say with a certainty in almost every case is that people's Cloud bills are not getting smaller month over month. >> Yep. >> So, it's a growing market. It's one that people feel incredibly acutely. And when you get a few drinks into people and they start complaining about various aspects of Cloud, one of the first most common points that comes up is the bill. Not that it's too high, but that it is inscrutable. >> And so, just to do a back of napkin tam, how much optimization potential is there? Is it a ten percent factor? More? >> It depends on the level of effort you're willing to invest. I mean, there's a story for almost environments where you can save 70% on your Cloud bill. All you have to do is spend 18 months of rewriting everything to use serverless primitives. Six of those months you'll be hard down across the board. And then, wait where did everyone go? Because no one's going to do that. >> Dave: You might be out of business. So it's always a question of effort spent doing optimization, versus improving features, speeding time to market and delivering something that will generate for more revenue. The theoretical upside of cost optimization is 100% of your Cloud bill. Launching the right service or product can bring in multiples of that in revenue. >> I think my theory on differentiation, Dave, is that I think Amazon is basically saying in so many words, not directly. But it's my interpretation. Hold on to the rocket ship of AWS as long as you can. And if you can get stable, hold on. If you fall off that's just your fault, right? So, what that means is, to me, move up the stack. So Amazon is clearly going to continue to grow and create scale. So the benefits to the companies create a value proposition that can extract rents out of the marketplace from value that they create on the Amazon growth. Which means, they got to lock step with Amazon on growth. And cost leap, pivot up to where there's space. And Amazon is just a steam roller that will come in. The rocket ship that's going so fast. Whatever metaphor. And so people who just say We made a deal with Amazon, we're in. And then kind of sit idle. Will probably end up getting spun off. I mean, cause it's like they fall off and Amazon will be like All right so we did that. You differentiate enough, you didn't innovate enough. But, they're going to give everyone the opportunity to take a place with the growth. So the strategy, management wise, is just constantly push the envelope. >> So that's implicit in the Amazon posture. What's explicit in Amazon's posture is build applications on our platform. And you should be okay. You know? For a while. >> Yeah. And again, I think that a lot of engineers get stuck in a trap of building something and spending all their time making their code quality as best as possible. But, that's not going to lead to a business outcome one way or another. We see stories of companies hitting success with a tire fire of an infrastructure all the time. Twitter used to display massive downtime until they were large enough to justify the time and expense of a massive rewrite. And now Twitter is effectively up all the time. Whether that's good or not is a separate argument. But, they're there. So there's always going to be time to fix things. >> Well the Twitter example is a great example. Because they built it on rails. >> Yes. >> And they put it on Amazon Cloud. It was just kind of a hack, and then all of the sudden Boom, people loved it. And then, that's to me, the benefit of Cloud. One you get the scape velocity, the investment to start Twitter was fairly low, given what the success was. And then they had to rewrite, because the scale was bursting up. That's called prototyping. >> Oh yeah. >> That's what enterprises have to do. This is the theme of, agile. Get started as a theme, just dig in. Do a hack up font. But don't get confuse that with scale. That's where the rubber meets the road. >> Right and the, Oh Cloud isn't for us because we're an exception case. There are very few companies for whom that statement is true in the modern era. And, do an honest analysis first, before deciding we're going to build our own data centers because we can do it for cheaper. If you're Dropbox, putting storage in, great. Otherwise you're going to end up in this story where Oh, well, we have 20 instances now, so we can do this cheaper in Iraq somewhere. I will bet you a house you're wrong. But okay. >> Yeah. People are telling me that. Okay final question for you. As you've wandered around and been in the sessions, been in the analyst thing. What are some slice of life commentary stories you've bumped into that you found either funny, clever, insulting, or humorous? What's out on the floor? What are some of the conversations? >> One of the best ones was a company I'm not going to name, but the story they told was fantastic. They have, they're primarily on Azure. But they also have a strong secondary presence with AWS, and that's fascinating to me. How does that work internally? It turns out their cloud of choice is Azure. And they have to mandate that with guardrails in place. Because if you give developers a choice they will all go and build on AWS instead. Which is fascinating. And there are business reasons behind why they're doing what they're doing. But that story was just very humorous. I can't confirm or deny whether it was true or not. Because it was someone with way too much to drink telling an awesome story. But the idea of having to forcibly drag your developers away from a thing in a favor of another thing? >> That's like being at a bad party. It's like Oh, the better party is over there. All my friends are over there. >> But they have a commitment to Microsoft software estate. So, that's likely why they're. >> They just deal with Microsoft. >> And I'm not saying this is necessarily the wrong approach. I just find it funny. >> Might be the right business decision, but when you ask the developers, we see that all the time, John. >> All the time. I mean I had a developer one time come to me and start, he like "Look, we thought it would be great to build on Azure. We were actually being paid. They were writing checks to incent us. And I had a revolt. Engineers were revolting. Because the reverse proxies as there was cobbled together services. And they weren't clean native services and primitives. So the engineers were revolting. So they, we had to turn down the cash from Microsoft and go back to Amazon." >> Azure is much better now, but they have to outrun that legacy shadow of at first, it wasn't great. And people try something once, "That was terrible!" Well would you like to try it again now? "Why would I do that? It was terrible!" And it takes time to overcome that knee-jerk reaction. >> Well, but to your point about the business decision. It might make business sense to do that with Microsoft. It's maybe a little bit more predictable than Amazon is as a partner. >> Oh the way to optimize your bill on another Cloud provider that isn't AWS these days is to call up your account rep and yell at them. They're willing to buy business in most cases. That's not specific to any one provider. That's most of them. It's challenging to optimize free, so we don't see the same level of expensive bill problems in most companies there as well. >> Well the good news is on Microsoft, and I was a really big critic of Azure going back a few years ago. Is that they absolutely have changed their philosophy going back, I'd say two, three years ago. In the past two years, particular 24 months, they really have been cranking. They've been pedaling as fast as they can. They're serious. There's commitment from the top. And then they tell us, so there's no doubt. They're doing it also with the Kubernetes. What they're seeing, as they're doing is phenomenal. So... >> Great developer jobs at Microsoft. >> They're in for the long game. They're not going to be a fad. No doubt about it. >> No. And we're not going to see for example the Verizon public Cloud the HP public Cloud. Both of which were turned off. The ones that we're seeing today are largely going to be to stay of the big three. Big four if we include Alibaba. And it's, I'm not worried about the long term viability of any of them. It's just finding their niche, finding their market. >> Yeah, finding their lanes. Cory. Great to have you on. Good to hear some of those stories. Thanks for the commentary. >> Thank you. >> As always great guest analyst Cube alumni, friend, analyst, Cory Quinn here in the Cube. Bringing all the top action from AWS re:Inforce. Their first inaugural security conference around Cloud security. And Cube's initiation of security coverage continues, after this break. (upbeat electronic music)

>> live from Washington D. C. It's the Cube covering aws public sector summit DC brought to you by Amazon Web services. >> Welcome back, everyone to the cubes Live >> coverage of a ws public sector summit here in Washington D. C. I'm your >> host Rebecca Night, along with my co host, John >> Furrier. We're here with Cory Quinn, Cloud Economist The Duck Billed group and a cube host at large. Welcome. Welcome to our show. A medium >> at best, most days. But we'll see what happens when ever expanding. Someday I'll be a 10 x engineer, but not today. >> Right? Right. Exactly. >> Next host. Exactly. >> There we go, >> Cloud. Stand up on the side. We need to mention that >> Yes, generally more cloud improv. But no one believes that. It's off the cuff. So we smile, we nod, we roll with Tio. Yeah, no one wants to hear me sing in any form. >> I promise. Strapping So, Cory, you have been here. You are on the ground having great conversations with people here. 18,000 people at this summit Give us give our viewers a low down on the vibe. The energy What? What do you hear? Very different >> feeling in the commercial summits you're seeing. People are focusing on different parts of the story, and one thing I find amusing is talking to people who work in the public sector. Show up in their first response is, Oh, I'm so behind and then you go to the commercial summit. You talk to people who are doing bleeding edge things, and their response is, Oh, I'm so behind and everyone thinks that they're falling behind the curve and I'm >> not sure how >> much of that is a part of people just watching a technology. Events outpace them versus the ever increasing feature velocity. If they show on slide year over year over year, consistent growth and people feel like they're being left in the dust, it's it's overwhelming. It's drinking from a fire hose. And I don't think that that gets any easier when you're talking to someone in public sector where things generally move in longer planning cycles because they definitional have to, and I'd argue should, >> but you should help them, make them feel better and say, Don't worry. The private sector feels the same way. Not just everyone >> has these problems. That's that's the poor little challenge of this is everyone believes that if you go to the one magic company, their environment is going to be wonderful. They're adopting everything. It doesn't exist. I've gone into all of the typical tech companies you would expect and talk to people. And everyone wants you for three or four drinks into them, gets very honest and starts crying. What would its higher fire their own environment is? It says a lot of conference. We're going around. Here's how we built this amazing thing as a proof of concept is what the part they don't say or for this one small, constrained application. People are trying to solve business problems, not build perfect architecture. And that's okay. >> Yeah, process. They're not. They're not businesses, their agencies. As you said, they're like, slow as molasses when it comes to moving speed. And you could even see Andy Jazzy during his fireside Shep. He's already studying, laying the groundwork. Well, >> once you're in the >> cloud, here's how you know the adoption level so you can see that it's land not landing expand like the enterprise, which is still slow. It's land, get the adoption and then expand, So the public sector clearly has a lot of red tape. I mean, no doubt about it. >> That means anyone who'd argue that point >> chairman's like 1985. It's like, you know, hot tub time machine, you know, nightmare. But Andy Jazz, he also says on differently to heavy lifting is what they want to automate away. That's the dream. That's the That's the goal. Absolute. It's hard. This is the real challenge. Is getting the public sector adopted getting the adoption, your thoughts when what you're hearing people are they jumping in? They put a toe in the water, kicking the tires. As Andy said, >> all of the above and more. I think it's a very broad spectrum and they mentioned there. I think they were 28,000 or 12,000 non profit organizations that they wind up working with as customers and they all tend to have different velocities across the board as they go down that path. I think that the idea that there's one speed or you can even draw a quick to line summary of all the public sector is a bit of a Basile explanation. I see customers are sometimes constrained by planning cycles. There's always the policies and political aspects of things where if you wind up trying to speed things up, you're talking to some people who will not have a job. If you remove the undifferentiated heavy lifting because that's been their entire career, we're going to help you cut waste out of your budget. Well, that's a hard sell to someone who is incentivized based upon the size of the budget that they control it. You wind up with misaligned incentives, and it's a strange environment. But the same thing that I'm seeing across the corporate space is also happening in public sector. We're seeing people who are relatively concerned about where they're going to hire people from what those people look like, how they're going to transform their own organizations. Digital transformations, attired term. >> And it's like you have rosy colored glasses on too much. You're gonna miss the big picture. You gotta have a little bit of skepticism. I think to me governments always had that problem where I'm just gonna give up. I'm telling different. I can't get the outcome I want, because why even try? Right? I think now, with cloud what I hear Jazzy and Amazon saying is. Hey, at least you get some clear visibility on the first position of value, so there's some hope there, right? So I think that's why I'm seeing this adoption focus, because it's like they're getting the customers. For instance, like I'm a university. I could be a professor, but my credit card down my university customer, I got a couple instances of PC to so ding and another one to the 28,000 >> exactly number of customers is always a strange >> skeptical there. But now, for the first time, you, Khun got should go to a team saying, Hey, you know all that B s about not get the job done, you can get it with clouds. So it's gettable. Now it's attainable. It's not just aspirations. >> Movers really will make the difference. In the end, with the university customer's question, the people who were in that swing >> the tide can that be a generational shift, a deb ops mindset in government? That's a big question. >> Well, they have some advantages. For example, we took a look at all the Gulf cloud announcements and the keynote yesterday, and that must have been a super easy keynote to put together because they're just using the traditional Kino slides and reinvent 2014 because it takes time to get things certified as they moved through the entire pipeline process. And there's nothing inherently wrong with that. But the services that are going into come cloud or things that are tried and tested in a lot of other environments. There's an entire community out there. There's an established body of knowledge. So a lot of the path that government is walking down has already been from a technical perspective paid for them. >> I want to riff on an idea on to make a proposal with you here in real time. You're I think what we should do is make a proposal to the U. S. Government that we basically take equity in the agencies and then take them public. >> That's not a bad idea, absolutely not about commercialized. >> The entities create a stock option program, Cory, because listen, if I'm if I'm a talent, why would I gotta work for an agency when I could make three times Mohr get public and be rich, and that's the problem with talent. You walk around the expo for here. The booths are much smaller, and I didn't understand that at first, and then it clicked for me. If you want to sell services to government, you don't buy a bigger booth. You buy a Congress person and it turns out those air less expensive. That's how acquisitions tend to work in this space. So folks walking around or not, generally going to be the customers that buy things. People walking around in many cases are the talent and looking for more talent. And it does become extremely compelling to have those people leave public sector and go into private sector. In some cases where we'll pay you three times more and added bonus most days, this is America. After all, no one's shooting at you, so that does your >> cloud. Economists were kind of joking about your title, but if you think about it, there are economics involved. It's lower cost, faster, time to value. But what we're getting at is an incentive system. So you think fiscal monetary policy of incentives. So you know, Rebecca, this this This is the challenge that the policy guys gotta figure because the mechanisms to get stuff done is by the politicians or do this or do that. We're getting at something, really, to the heart of human beings, that mission of the mission of the agency or objective they're doing for the labor of love or money? Yes, Reed, why not create an incentive system that compensate? >> You think That's incentive system for taxpayers, though, too, in the sense of >> if I can see the trillions of dollars on the >> budget, a lot of what >> governments do shouldn't necessarily be for sale. I think the idea of citizen versus customer tends to be a very wide divergence, and I generally pushback on issues to attempt, I guess, convinced those into the same thing. It's you wind up with a very striated, almost an aristocracy Socratic society. >> I don't think that tends >> to lead anywhere. Good way. Everyone is getting political today for some reason. >> Well, I >> mean fireside chat to digital >> transformations. People process technology. You can superimpose that onto any environment where those public policy or whatever or national governments, the people, his issues there, processes, issues, technologies is each of one of them have their own challenge. Your thoughts on public sectors challenges opportunities. Four people process technology. >> You have to be mission driven for starters in order to get the people involved. As far as the processes go, there are inherently going to be limitations sometimes and easily observable in the form of different regulatory regimes that apply to these different workloads. And when we talk about the technology well, we're already seeing that that is becoming less of a gap over time. What used to be that o on ly we can secure a data center well enough from a physical security standpoint, there's a quote from the CIA that said on its worst day that cloud was cloud. Security was better than any on premises environment that they could build. And there's something to be said for that. Their economies of scale of like by >> the tech gaps going away. Almost zero yes. So if that OK, text, good check training fault of the people side. Absolute awareness competency processes a red tape automation opportunity. That could be. >> But this is also not to assume that the commercial world has unlock either. Where does the next generation come from? You talk to most senior cloud folks these days and most of us tend to have come up from working help desks being grumpy, you nexus in men's or you nexus movement because it's not like there's a second kind of those and we go up through a certain progression. Well, those jobs aren't there anymore. They've been automated away. The road that we walked is largely closed. Where does the next generation come from? I don't have a great answer. >> Talent question is a huge one. This is going to be the difference. Rebecca. We were riffing on this on our opening. >> It's the only one. >> Your thoughts. I mean, were you even hearing all this stuff and you've been researching this? What? Your thoughts. >> I think that we need to think more. I think tech companies need to think more broadly about where they're going to get this next generation of people, and they don't need to necessarily be people who have studied CS in school. Although, of course we need those people too. >> But the people with the bright, the creative, the expansive world views who are thinking about these problems and can learn >> the tech, I mean the tough guy, you know why >> block change you into a nice CEO and everyone gets >> rich, but I think when Jessie was saying today during his fireside, in the sense of we need to make sure that we're building tools, that >> you don't need to be a machine learning expert to deploy, you know we need to make simpler, more intuitive tools, and then that's really important here. >> Amazon does well in that environment about incentives. >> I think that >> one thing that the public sector offers that you don't often see in the venture start of world or corporate America or corporate anywhere, for that matter, is the ability to move beyond next quarter, planning the ability to look at long term projects like What >> does >> it take to wind up causing significant change across the world? Where is it take to build international space Station? You're not gonna be able to ship those things 180 days, no matter how efficiently you build things. And I think that the incentives and as you build them, have to start aligning with that. Otherwise you wind up with government trying to compete on compensation with the private sector. I don't think that works. I think you may have an opportunity to structure alignments around sentence in a very different life. >> It's an open item on the compensation. Until they agree, we'll watch. It was ideas. We'll see what tracks. But to me, in my opinion, what I think's gonna be killer for game game one here. This of this revolution is the people that come out of the woodwork because cloud attracts attract smart people and smart people are leaning into the government with cloud. It was the other way around before the cloud people, I don't want to get involved in government, and that was a big ding on government attracting qualified people. So I think Cloud is going to attract some smart people that want to help for the purpose and mission of whatever the outcome of that political or agency or government initiative with a cyber security there. People will care about this stuff who want the social equity not so much, >> Yeah, I think that's >> going to be a wild card. I think we're going to see like a new might in migration of talented people coming into quote assist government. That's a work for government to figure out how to be better at whatever the competition is and that is going to be I think the first lever of you start to see new names emerge. This person who just changed the organization over here become a hero Dev Ops mindset being applied to new environments. >> And we've seen that to some extent with the U. S. Digital service with 18 half where you have industry leaders from the commercial side moving into public sector and working in government for a time and then matriculating back into the public sector and the private sector, I think that there winds up being a lot of opportunity for more programs like that of scaling this stuff out >> and career change and career passer tissue. And there is this more fluid iti. As you're saying, >> I think that money isn't everything. You know. There's a lot of research that shows up to a certain threshold of income. You >> don't get that much happier. I don't know if Jeff >> basis is that much happier than us. I mean, >> we live in a little more bank and say, you know, >> you see the other side of it, too, is you build all these things together where you have okay. What? >> What is it >> that moves people? What do they care about. It's not just money, and I think that the old styled the old are very strict hierarchy within organizations where things are decided by tenure. Service is a bit of a problem if you have someone who works for. The EPA has been doing a deep dive cloud work for 10 years. There's nothing specific to the EPA about what that person has mastered. They shouldn't be able to laterally transition into the FDA, for example, >> Jackson Fireside Chat, Those interesting point about the fire phone that they talked about. And this is the transfer ability of skill sets and you getting at the thing that I will notice is that with Cloud attracts this interdisciplinary skill sets so you don't have to be just a coder. You khun, note how code works and be an architect, or you could be a change agent some somewhere else in an organization. So that's >> going to >> be interesting. That's not necessarily what how governments have always been siloed right? So can can these silos can these old ways of doing things. This is the question. This is why it's fun to cover this market. >> We're already >> seeing that in the public sector were being able to write code is rapidly transitioning into a very being very similar to I can speak French. Great. That's not a career in and of itself. That's a skill sad that unlocks of different right. A different career paths forward, but it doesn't wind up saving anything. It doesn't want a preserving its own modern aristocracy path forward or >> use the building an example. I don't have to learn how to pour concrete organ, right? The blueprints. Yes. So as we start getting into these systems conversations, you're going to start to see these different skill sets involved. Huge opportunity. If >> you're in >> school today and you're studying computer science, great learned something else, too, because the intersection between that and other spaces are where the knish opportunities are. That's the skill set of the future. That's where you're going to start seeing opportunities. Do not just succeed personally, but start to change the world. >> But Cory Great. Thanks for coming on and make an appearance and sharing what you found on the hallways. Good to see you. Coop con in Europe. Thanks for holding down the fort there. >> Of course I appreciate it. It was an absolute Bonner. >> Excellent. Great. Well, thank you so much. Thank >> you. I'm Rebecca Knight for John Furrier. Stay tuned. You are watching the Cube.

>> live from Washington, D. C. It's the Cube covering a ws public sector summit by Amazon Web services. >> Welcome back, everyone. You are watching the Cuban. We're kicking off our day two of our live coverage a ws public sector summit here in our nation's capital. I'm Rebecca Knight co hosting with John Fer Yer John. It's great to be here. 18,000 people having important conversations around around governments and cloud computing. Let's extract the signal from the noise. Let's do with the Cube. Does best, >> Yeah, I mean, this is to me a really exciting event because it's got the confluence of what we love tech and cloud computing and all the awesomeness of that and that enables. But even in Washington, D. C. With the backdrop against tech clash on this, you know, narrative run tech for illah tech for bad, bad check whatever you want to call it. Anti trust is a lot of narratives around that there's a huge story around check for good. So I think there's an interesting balance there around the conversations, but this is world of heavy hitters are this week You've got senior people at the government level here, you have senior tech people hear all kind of meddling and trying to figure out howto let the tail winds of cloud computing Dr Change within government against this backdrop of tech for ill as Jay Carney, whose the global marketing policy guy for Amazon on reports to Jeff Bezos, former Obama press secretary. He's super savvy on policy, super savvy on tech. But this is a really big point in time where the future's gonna be determined by some key people and some key decisions around the role of technology for society, for the citizens, United States, for nation states as people start to figure out the role of data and all the impact of this so super exciting at that level, but also dangerous and people are telling a little bit. But I also want to run hard. That's pretty much the big story. >> So let's let's let's get into this tech backlash because you're absolutely right. Through the public, sentiment about technology and the tech behemoths has really soured. The regulators are sharpening their blades and really paying much more attention, uh, particularly because so many people say, Hey, wait a minute, why? How does Google and Facebook know all this stuff about me, but what do you think? What are we hearing on the ground in terms of where regulation is going? Before, before the cameras were rolling, you were talking about this idea of regulators working closely with the innovators, observing but not meddling. I mean, do you think that that's that's That's these dollars underwears We're going in? >> Well, not really. I think that that's where people wanted to go in. I think right now the the surprise attack of tech taking over, if you will in the minds of people and or without Israel or not, it's happened, right? So I was talking yesterday around how the Internet, when Bill Clinton was president, really grew a little bit slower than the pace of this today. But they did a good job of managing that they had private sectors take over the domain name system. We saw that grow that created in the open Web and the Web was open. Today it's different. It's faster in terms of technology innovation, and it's not as open. You have Facebook, LinkedIn and these companies that have silos of data, and they're not sharing it with cyber security General Keith Alexander, former head of the NSA and the first commander of cyber command in the U. S. The United States under Obama. He pointed out that visibility into the cyber attacks aren't there because there's no sharing of data. We heard about open data and knishes from a think tank. The role of data and information is going to be a critical conversation, and I don't think the government officials are smart enough and educated enough yet to understand that So regulatory groups want to regulate they don't know how to. They're reaching out the Amazons, Google's and the Facebook to try to figure out what's going on. And then from there they might get a path. But they're still in the early stages. Amazon feels like they're not harming anyone there. Lower prices, fast delivery, more options. They're creating an enablement environment for tons of startups, so they feel like they're not harming anyone. You're the antitrust, but if they're going to being monopolizing the market place, that's another issue. But I still think Amazon still an enabling mode, and I think you know, they're just running so hard. It's going so fast, I think there's gonna be a big challenge. And if industry doesn't step up and partner with government, it's going to be a real mess. And I think it's just moving too fast. It's very complicated. Digital is nuanced. Now. You get the role of data all this place into into into effect there. >> Well, you're absolutely right that it's going fast. Teresa Carlson on the other day talking about eight of US growth, UH, 41% year over year and she said, Cloud is the new normal. The cloud cloud is here more and more governments on state and local, really recognizing and obviously international countries to recognize that this, this is they're adopting these cloud first approach is, >> yeah, I mean, I think the first approach is validated 100%. There's no debate. I think it's not an ah ha moment. Cloud Israel. Amazon has absolutely proven since the CIA deal in 2013 that this is a viable strategy for government to get to value fast, and that is the whole speed of cloud game. It's all about time to value with agility. Eccentric center. We've been talking about that with Dev Ops for a long, long time. The real thing that I think's happening that's going on. That's kind of, you know, to read the tea leaves and we'll hear from Corey Quinn. Our host at large will go on later. This is a new generation of talent coming on board and this new generation. It feels like a counterculture mindset. These are Dev ops, mindset, people not necessarily Dev ops like in the Cloud Computing Way. They're younger, they're thinking differently, and they think like Amazon not because they love Amazon, because that's their nature. Their got their getting content in a digital way, their digital natives. They're born into that kind of cultural mindset. Of what is all this nonsense red tape? What's the bottlenecked in solving these problems? There's really not a good answer anymore, because with cloud computing and machine learning an A I, you can solve things faster. So if you expose the data, smart people go well. That's a problem that could be song. Let's solve it. So I think there's going to be a resurgence is going to be a renaissance of of younger people, kind of in a counter culture way that's going to move fast and an impact society and I think it's gonna happen pretty quickly over the next 10 years. >> Well, that's one of the things that's so inspiring about being at a conference like this one a ws public sector summit, Because we are hearing getting back to what you just said. We're solving problems and these air problems about not just selling more widgets. This's actually about saving lives, helping people, delivery of healthcare, finding Mr Missing Persons and POWs who are missing in action. >> I mean, the problems could be solved with technology now for goodwill, I think will outweigh the technology for Ayla's Jay Carney calls it. So right now, unfortunately, was talking about Facebook and all this nonsense that happened with the elections. I think that's pretty visible. That's painful for people to kind of deal with. But in the reality that never should have happened, I think you're going to see a resurgence of people that's going to solve problems. And if you look at the software developer persona over the past 10 to 15 years, it went from hire. Some developers build a product ship it market. It makes some money to developers being the frontlines. Power players in software companies there on the front lines. They're making changes. They're moving fast, creating value. I see that kind of paradigm hitting normal people where they can impact change like a developer would foran application in society. I think you're gonna have younger people solving all kinds of crisis around. Whether it's open opioid crisis, healthcare, these problems will be solved. I think cloud computing with a I and machine learning and the role of data will be a big catalyst. >> But money, the money, the money is the thing we're going to have Cory Quinn on later talking about this this talent gap because there are people who are, As you said, they're young people who are motivated to solve these problems, and they want to work for mission driving institutions. What better mission, then helping the United States government >> just heard in the hallway? This has been the I've heard this multiple times here. This show I just heard someone saying Yeah, but that person's great. I can't keep them. What's happening is with the talent is the people that they need for cloud computing. Khun, get a job that pays three times Mohr orm or at the private sector. So, you know, Governor doesn't have stock options, >> right? All right, all right. If >> you're, ah, machine learning, >> people call girls in the lounge. >> Eso all kinds of different diners. But I think this mission driven culture of working for society for good might be that currency. That will be the equivalent stock option that I think is something that we were watching. Not haven't seen anything yet, But maybe that will happen. >> Paid in good feelings way. We've got a lot of great guests. Wave already teed up. We've got your E. Quinn. Bill Britain from Cal Poly to talk more about ground station. We have alien Gemma Smith of YSL Itics, uh, and Jameel Jaffer. >> Think ground station. But the biggest surprise for me and the show so far has been ground station that that product has got so much traction. That's ridiculous. I thought it would be kind of cool. Spacey. I like it, but it's turning into a critical need for a I ot I mean, I was just talking with you. Came on about the airplane having WiFi on the plane. We all like Wow, we expected now, but you go back years ago is like, Oh, my God. I got WiFi on the plane. That's a ground station, like dynamic people going. Oh, my God. I can provision satellite and get data back, all for io ti anywhere in the world. So that is pretty killer. >> Excellently. I'm looking forward to digging in with you with many guests today. >> Good. >> I'm Rebecca Knight. For John. For your stay tuned, you are watching the Cube.