>> live from London, England. It's the queue covering a ws summat. London twenty nineteen Brought to you by Amazon Web services. >> Thiss really is huge, >> isn't it? David >> London is my co star today on the Cube. We're going to be extracting the signal from the noise and there is a lot of noise. Just trying to register. Here was an event in itself, and one guy in the queue with me earlier said, You know, this is like an army of young technologist backing one particular platform, and we've had the main keynote speeches already in the conference hall. There are breakout sessions going on as well as we speak. And in those keynote speeches, it really wants the focus again on Hey I and machine learning and a huge array of services that eight of us now provide. Because, of course, every tech company, every company is a tech company these days. Where do you work in transportation or defense or retail? Let's talk >> about Dave a little bit about a ws and the exponential growth that it's seen over the past two years because it just keeps on getting bigger and you could see testament really out there just so many people here. >> You know, Susannah, when a WS announced its first service in two thousand six, very quietly announced E C, too, which is a computer service. Nobody really paid much attention. But a devious has permanently changed the landscape of the of the technology business. And we're here in London twelve thousand people at a one day summit. I mean, that's his large as many or or larger than most U. S based three day conferences. >> And there are many thousands more watching the life streaming as well, >> right? And when you talk to the people here, they're a division. First of them has builders, and it was interesting to hear some of the key knows this morning talking about some of the innovations that occurred in the UK he obviously UK, very prideful country. The first lights in electric lights work the Savoy Theatre, the Colossus, you know, Code breaker and many, many others. Home computing originated in the UK It so a diverse are connecting that invention and that what they call reinvention. Eight of us talks about his differentiation. The number of regions that it has around the world believe they said twenty one regions, sixty for availability zones, which are little, many regions inside of the regions. In case there's a problem, you can fail over fourteen database services. You know what's happening is all the traditional tea, which is eighty percent of the market place, trying to sort of hang on to their legacy install basis. So they're trying to substantially mimic eight of us. The problem is, eight of us moves faster, has more services, and it's just growing at such a phenomenal rate. >> And it's really kind of bottom up. A CZ. Well, it's so got that head start. So it's learning from its current customers and those it's had in the past, really to find out what new services they want that has his wealth of data ofthe gods to build on it, doesn't it? So every it seems every month it's it's another step ahead. >> Well, the data is critical. Amazon. Is it a dogfight? I always say, for your data with Google and Microsoft and Oracle, they all want your data. Why? Because data is the most valuable resource today, right? People talk about data is the new oil. We think data is more valuable than oil. You could put oil in your car. You can put in your house, but you can't put it in. Both data is reusable in a way that we've never seen a natural resource before. So it's extremely powerful applying machine intelligence to data. So Amazon knows if it can get your data into the cloud and do so cost effectively and deliver services that make you happy and delight you that they have a perpetual business model that's really unbeatable. The company now is at a thirty billion dollars run rate, growing at a constant currency rate of forty two percent per year. No people will say, Well, well, Microsoft is going faster. Microsoft is growing at seventy two percent here, but it's a much, much smaller base we're talking about single digit, a few billion versus thirty billion. So Amazon each year is growing at a nine to ten billion dollars incremental rate. Even more importantly, the operating income is phenomenal. I mean, a WS is only twelve percent of Amazon's revenue, but it accounts for fifty percent of its operating income. Hey, Ws is operating income is is in the high twenties, twenty eight twenty nine percent higher than Cisco, higher than AMC when it when he had seen was a public company. And those air very profitable companies the only companies that are more profitable on a percentage basis that that Amazon a pure place, software companies like an oracle. So Amazon, who's an infrastructure company, is as profitable almost as a software company. It's astounding, >> really interesting to see some of the partners that were invited on. It's about the keynote speeches. For example, Saint spreads so real traditional retailer at a prompter state that they'd be in the business for one hundred fifty years and some would say in many ways a competitive toe. Amazon at marketplace because they sell a vast array of goods and services to the customers. But they talked about how they're using around eighty eight WS services. It's always like a kind of a pic, a mix sweet shop. Or, as you would say, a candy store isn't and I think that's that's some of the benefits that some customers view for A W. S. Some would say, actually, I would prefer all of my product be in one place or the car that access and services in one place. And so is this pick a mix idea that I think really is taking off, isn't it? >> I'm glad you brought up the state's very example because, essentially, in a way, they are in adjacent competitors Teo, eight, of us. And yet they've chosen to put their data. And there's in leverage Amazon services. It's like Netflix. Everybody uses Netflix as the example. I mean, they compete vigorously with with Amazon Prime Video, and yet they choose to run in the age of U. S code. Now this is one of the areas where you heard at the Google Cloud next show a lot of talk about retail companies, you know, considering using Google, because, of course, they're concerned about Amazon eating their lunch. And so it's a hard decision for retail companies to make. Sainsbury obviously has said OK, we can compete. We have a unique advantage with Amazon retail, you know, but it's something worth watching for sure, because, you know, Walmart obviously doesn't wantto run in the eight of us Cloud because it's it's fearful. Ah, at the same time, Amazon would tell you, Auntie Jessie offenses look. There's a brick wall between eight of us and the retail side. We don't share data, so it's just a matter of that. Trade off is the risk of running in a ws er and potentially running at a competitors sight worth the extra value that you get out of the services. And that's what the market has to decide, >> yet certainly does interesting as well. We had the Department of Justice on the UK Department of Justice because they're has beans real concerned about security, about putting all your eggs in one basket effectively put a your data into a club no operated by you. And it does, though seem is, though little by little, some of those security fears are being laid up. Play >> well, there was this. The seminal moment in a WS. His history was in two thousand thirteen, when it won the CIA CIA contract who was more security conscious than the CIA. And they beat Big Blue IBM for that contract way back in two thousand thirteen, and the analysis that came out of that because IBM contested that contract. What came out of that was information that suggested that eight of us said the far superior solution forced IBM to go spend two billion dollars on a company called Software to actually get into the public Cloud does. It couldn't really compete with its own sets of services, and since that, Amazon has only accelerated its lead. IBM, of course, has a public cloud, and it's competitive in its own right. But the point is that the CIA determined that security the cloud was better than it could do on Prem. Now you're seeing the big battle for the Jet I contract Joint Enterprise Defensive Initiative. It's the biggest story in DC Amazon is the front runner. It's down the Amazon and Microsoft. Not surprisingly, Oracle has contested that because the government uses these sources from multiple suppliers and there's contesting it, saying, Hey, that's not fair to use one cloud. When a vendor contests Abid, a lot of information comes out. The General Accountability Office and the D. O. D determined that a single cloud was more secure, more reliable, more cost effective and less complex to run. So this is big debate around multi cloud versus single cloud. And again, Amazon continues to lead in the marketplace and in many many instances, is winning >> on DH. There were a few comments made in certainly one of the key notes today, trying to kind of blow the competition out of the water again knows whether a few specific references, in fact, to Oracle and Microsoft >> were right. And so they called the database freedom they had hashtag database freedom again. As they say, Microsoft, IBM, Oracle, Amazon, they're in a fight for your data. That's why Oracle has launched fourteen database services. Now it's not trivial. So Sainsbury and the Ministry of Justice both talked about moving Oracle databases into the eight of us Cloud. It's not trivial. It's much easier for data warehouse and stateless applications for online transaction processing. Things like banking much, much more difficult to migrate into the clouds. So it's interesting. Sainsbury talked about racquets stands for a really application close. There's a very high end, complicated Oracle database that they migrated to Aurora. The Ministry of Justice talked about moving Oracle in tow. RGS, this is a battle I tweeted today earlier, Susana, you pick up the Wall Street Journal is a quarter page ad on the front page. Cut your Amazon bill in half now, of course, what? Oracle doesn't tell you is that they date to X the price when you're running on or on Amazon versus Oracle. So they're playing pricing games. Having said that organism very good database, the best database in the industry, the most reliable. So for mission critical applications, Oracle continues to be the leader. However, Oracle, strong arms people, they'LL, they'LL raise prices, they'LL get you in a headlock and do audits. And that's what Amazon was referring today about Microsoft and Oracle will do out. It's so they position. They tried a D position Oracle as an evil company. The Oracle, of course, so way add value. We have the best database, and they're trying to add value for the customers. Build their own cloud. So it's quite a battle that's going on, and you see the instance. Creation of that battle manifest itself in the general contract. >> Absolutely interesting is well, what we heard from really both states bruise on the Ministry of Justice, really talking about the end users and how they're so different. So for public sector organizations, this isn't about making more money making profit. It's about the experience for the user. But in fact, that came up from Sainsbury's as well, making sure that the right products are with the right part of the store. And that's how a I could help them do that and efficient, usable data they currently have. >> I think every enterprise really wants to have a consumer app like experience, and very few do. I mean, we all know used these enterprise APS from large, you know, brands, and they're often times not that great. So what, you're seeing a closing of the Gap? People see what's happening with Facebook and Instagram and Whatsapp and so forth and say we should be able to have apse that run that simply and so you're seeing that gap clothes. I don't see how you could do that without some kind of public cloud infrastructure because of the massive scale that's required. It's so companies like Saintsbury are moving in that direction. Mobile has been critical for the last decade, and so that's what the consumer wants. That's what the cloud can provide. >> Is that what every consumer wants? Because increasingly, we're hearing a lot more concerned about privacy, that people not wanting to give all of her data across to private companies and do you think this could be dist sticking point ready going forward and could actually hold back the growth all they ws and its competitors >> a great point because you have a problem. Wonder problems. You have this app creep. I can tell you have dozens and dozens and dozens of app on my phone. I don't know if I trust them with the data. So having said that, one way to simplify that is to eliminate the need to do heavy lifting and patching of your infrastructure. Let us take care of that and build value up the stack by focusing re shifting your resource is on on value added services. Could it be a problem? I think no question. When Snowden came out in the U. S. People in Europe for sure. As you know, we're concerned about putting their data in the cloud that seems to have attenuated. I don't hear much about that anymore, you know. But if the NSA can come in and demand access to my data, well, that could be problematic. That's why I ws is putting so much or one reason why they're putting so much emphasis on setting up regions. It not just eight of us, Amazon and Google and Microsoft as well for many reasons. Privacy. GPR compliance on of course, Leighton. See the laws of physics? >> Absolutely. Okay, Dave Melody, thank you very much for being with me here at the age of us. That summit here >> in London at the XL Center there is still so much going on here. Lots of breakout sessions, many more kind of individual keynotes taking place with the various different subsections. Although the A W s business and also its partners. So we will be keeping across all of those on the Cube. Thanks for watching.