>>Live from Miami, Florida. It's the cube covering IBM's data and AI forum brought to you by IBM. >>Welcome everybody to the port of Miami. My name is Dave Vellante and you're watching the cube, the leader in live tech coverage. We go out to the events, we extract the signal from the noise and we're here at the IBM data and AI form. The hashtag is data AI forum. This is IBM's. It's formerly known as the, uh, IBM analytics university. It's a combination of learning peer network and really the focus is on AI and data. And there are about 1700 people here up from, Oh, about half of that last year, uh, when it was the IBM, uh, analytics university, about 600 customers, a few hundred partners. There's press here, there's, there's analysts, and of course the cube is covering this event. We'll be here for one day, 128 hands-on sessions or ER or sessions, 35 hands on labs. As I say, a lot of learning, a lot of technical discussions, a lot of best practices. >>What's happening here. For decades, our industry has marched to the cadence of Moore's law. The idea that you could double the processor performance every 18 months, doubling the number of transistors, you know, within, uh, the footprint that's no longer what's driving innovation in the it and technology industry today. It's a combination of data with machine intelligence applied to that data and cloud. So data we've been collecting data, we've always talked about all this data that we've collected and over the past 10 years with the advent of lower costs, warehousing technologies in file stores like Hadoop, um, with activity going on at the edge with new databases and lower cost data stores that can handle unstructured data as well as structured data. We've amassed this huge amount of, of data that's growing at a, at a nonlinear rate. It's, you know, this, the curve is steepening is exponential. >>So there's all this data and then applying machine intelligence or artificial intelligence with machine learning to that data is the sort of blending of a new cocktail. And then the third piece of that third leg of that stool is the cloud. Why is the cloud important? Well, it's important for several reasons. One is that's where a lot of the data lives too. It's where agility lives. So cloud, cloud, native of dev ops, and being able to spin up infrastructure as code really started in the cloud and it's sort of seeping to to on prem, slowly and hybrid and multi-cloud, ACC architectures. But cloud gives you not only that data access, not only the agility, but also scale, global scale. So you can test things out very cheaply. You can experiment very cheaply with cloud and data and AI. And then once your POC is set and you know it's going to give you business value and the business outcomes you want, you can then scale it globally. >>And that's really what what cloud brings. So this forum here today where the big keynotes, uh, Rob Thomas kicked it off. He uh, uh, actually take that back. A gentleman named Ray Zahab, he's an adventure and ultra marathon or kicked it off. This Jude one time ran 4,500 miles in 111 days with two ultra marathon or colleagues. Um, they had no days off. They traveled through six countries, they traversed Africa, the continent, and he took two showers in a 111 days. And his whole mission is really talking about the power of human beings, uh, and, and the will of humans to really rise above any challenge would with no limits. So that was the sort of theme that, that was set for. This, the, the tone that was set for this conference that Rob Thomas came in and invoked the metaphor of superheroes and superpowers of course, AI and data being two of those three superpowers that I talked about in addition to cloud. >>So Rob talked about, uh, eliminating the good to find the great, he talked about some of the experiences with Disney's ward. Uh, ward Kimball and Stanley, uh, ward Kimball went to, uh, uh, Walt Disney with this amazing animation. And Walter said, I love it. It was so funny. It was so beautiful, was so amazing. Your work 283 days on this. I'm cutting it out. So Rob talked about cutting out the good to find, uh, the great, um, also talking about AI is penetrated only about four to 10% within organizations. Why is that? Why is it so low? He said there are three things that are blockers. They're there. One is data and he specifically is referring to data quality. The second is trust and the third is skillsets. So he then talked about, you know, of course dovetailed a bunch of IBM products and capabilities, uh, into, you know, those, those blockers, those challenges. >>He talked about two in particular, IBM cloud pack for data, which is this way to sort of virtualize data across different clouds and on prem and hybrid and and basically being able to pull different data stores in, virtualize it, combine join data and be able to act on it and apply a machine learning and AI to it. And then auto AI a way to basically machine intelligence for artificial intelligence. In other words, AI for AI. What's an example? How do I choose the right algorithm and that's the best fit for the use case that I'm using. Let machines do that. They've got experience and they can have models that are trained to actually get the best fit. So we talked about that, talked about a customer, a panel, a Miami Dade County, a Wunderman Thompson, and the standard bank of South Africa. These are incumbents that are using a machine intelligence and AI to actually try to super supercharge their business. We heard a use case with the Royal bank of Scotland, uh, basically applying AI and driving their net promoter score. So we'll talk some more about that. Um, and we're going to be here all day today, uh, interviewing executives, uh, from, uh, from IBM, talking about, you know, what customers are doing with a, uh, getting the feedback from the analysts. So this is what we do. Keep it right there, buddy. We're in Miami all day long. This is Dave Olanta. You're watching the cube. We'll be right back right after this short break..

>>we're back. >>This is Dave Volante. I'm with Wiki bond dot Oregon. This is Silicon angle's the cube where we extract the signal from the noise. We go into the events, we're bringing you the best guests that we can find. And we're here at the AWS summit. Amazon is taking the cloud world by storm. He was on, invented the cloud in 2006. They've popularized it very popular of course with developers. Everybody knows that story. Uh, Amazon appealing to the web startups, but what's most impressive is the degree to which Amazon is beginning to enter the enterprise markets. I'm here with my cohost Jeff Frick and Jeff, we heard Andy Jassy this morning just laying out the sort of marketing messaging and progress and strategies of AWS. One of the things that was most impressive was the pace at which they put forth innovations. We talked about that earlier, but also the pace at which they proactively reduce prices. Uh, that's different than what you'd see in the normal sort of enterprise space. Talk about that a little bit. >>Yeah. Again, I think it really speaks to their strategy to lock up the customer. It's really a lifetime value of the customer and making sure that they don't have a really an opportunity or a reason to go anywhere else. So as we discussed a little bit earlier, they leverage, you know, kind of the pure hardware economics of, of decreasing a computing power, decreasing storage, decreasing bandwidth, but then they also get all the benefits of scale. And I think what's in one of the interesting things that Andy talked about and kind of his six key messages was that it's actually cheaper to rent from them because of the scale than it is to buy yourself. And I know that's a pretty common knock between kind of a build or buy, um, kind of process you go through and usually you would think renting at some scale becomes less economical than if you just did it yourself. But because their scale is so massive because of the flexibility that you can bring, uh, computing resources to bear based on what you're trying to accomplish really kind of breaks down the, uh, the old age old thought that, you know, at scale we need to do it ourselves. >>Well, and that's the premise. Um, I think, and, uh, let's Brits break down a little bit about that, that analysis and, and Andy's keynote. So he put forth some data from IDC which showed that, uh, the Amazon cloud is cheaper than the, uh, a, a so-called private cloud or an in house on premise installation. You know, I certainly, there's, it's, it's a, it's an, it's depends, right? It really depends on the workload. That's somewhat of an apples to orange is going on here and the types of workloads that are going down in the AWS cloud, granted he's right and that they're running Oracle, they're running SAP, but the real mission critical workloads, what he calls mission critical aren't the same as what, you know, Citi would call mission critical. Right? So to replicate that level of mission criticality, uh, would probably almost most certainly be more expensive rental versus owning the real Achilles heel of, of, of any cloud, not just Amazon. >>Cloud really is getting data out. Um, moving data, right? Amazon's going to charge you not to get data in. They're gonna charge you to store it there to exercise, you know, compute. Uh, and then, but they're also gonna charge it if you wanted to take it out. That's expensive. The bandwidth costs and the extrication costs are expensive. Uh, the other issue with cloud again is data movement. It takes a long time to move a terabyte, let alone multiple terabytes. So those are sort of the two sort of Achilles heels of, of cloud. But that's not specific to Amazon's cloud. That's any cloud. Yeah. So we've got a great lineup today. Um, let's see. We've got Ariel Kelman coming on, uh, and I believe he's in the house. So we're going to take a quick break. Quick break. Right now we right back with Ariel Kelman, who's the head of marketing at AWS. Keep right there. This is the cube right back. >>we lift out all the programs out there and identified a gap in tech news coverage. Those shows are just the tip of the iceberg and we're here for the deep dive, the market beg for our program to fill that void. We're not just touting off headlines. We also want to analyze the big picture and ask the questions that no one else is asking. We work with analysts who know the industry from the inside out. So what do you think was the source of this missing? So you mentioned briefly there are, that's the case then why does the world need another song? We're creating a fundamental change in news coverage, laying the foundation and setting the standard, and this is just the beginning. We looked on all the programs out there and identified a gap in tech news coverage. There are plenty of tech shows that provide new gadgets and talk about the latest in gaming, but those shows aren't just the tip of the iceberg. And we're here for the deep dive. >>Okay, >>Dave Olanta. I'm with Wiki bond.org and this is Silicon angle's the cube where we extract signal from the noise. We bring you the best guest that we can find. We go into events like ESPN goes into sporting events, we go into tech events, we find the tech athletes and bring to you their knowledge and share with you our community. We're here at Moscone in San Francisco at the AWS summit. We're here with Arielle Kellman who's the head of worldwide marketing for AWS. Arielle, welcome to the cube. Thanks for having me, Dave. Yeah, our pleasure. I really appreciate you guys having us here. Great venue. Uh, let's see. What's the numbers? It looks like you know, many, many thousands, well over 5,000 people here by four or 5,000 people here. We're doing a about a dozen of these around the world, one to 4,000 people to help educate our customers about all the new things we're doing, all the new partners that are available to help them thrive in the AWS cloud. >>It's mind boggling the amount of stuff that you guys are doing. We just heard NG Jesse's keynote, for those of you who saw Andy's keynote at reinvent, a lot of similar themes with some, some new stuff in there, but one of the most impressive, he said, he said, other than security, one of the things that we're most proud of is the pace at which we introduce new services. And he talked about this fly wheel effect. Can you talk about that a little bit? Sure. Well, there's kind of two different things going on. The pace of innovation is we're really trying to be nimble and customer centric and ultimately we're trying to give our customers a complete set of services to run virtually any workload in the cloud. So you see us expanding a broader would additional services. And then as we get feedback we add more and more features. >>Yeah. So we're obviously seeing a big enterprise push. Uh, Andy was, was very, I thought, politically correct. He said, look, there's one model which is to keep charging people as much as you possibly can. And then there's our model, which is we proactively cut prices and we passed that on to customers. Um, and, and he also stressed that that's not something that's not a gimmick. It's not a sort of a onetime thing. Can you talk about that in terms of your philosophy and your DNA? It's just our philosophy. It's actually a lot less dramatic than is often portrayed in the press. Just the way we look at things as we're constantly trying to drive efficiencies out of our operations. And as we lower our cost structure, we have a choice. We can either pocket those savings as extra margin or we can pass those savings along to our customers in the form of lower prices. >>And we feel that the ladder is the approach that customers like and we want to make our customers happy. So this event, uh, we were talking off camera, you said you've been doing these now for about two years. You do re-invent once a year. That's your big conference out in Vegas and it's a very, very large event, very well attended. And you do these regionally and in and around the world, right. Talk about that a little bit. We do about a dozen of these a year. Um, we did, uh, New York a couple of weeks ago, London, Australia and Sydney. I'm going to go to India and Tokyo, really about a dozen cities in the world and it's a little tactic. I'm not going to beat all of them, but you know, the focus is to really, uh, deliver educational content. Uh, we'll do about maybe 12 to 16 technical breakout sessions all for free, uh, for, for customers and people who want to learn about AWS for the first time. >>And the, and the audience here is largely practitioners and partners, right? Can it talk about the makeup a little bit? Sure. It's a pretty diverse set of people. Um, we have a technical executives like CEOs and architects and we have lots of developers and then lots of people from our, our partner ecosystem of integrators wanting to, um, you know, brush up on the latest technologies and skills and a lot of people who just want to learn about the cloud and learn about AWS. I think there are a lot of misconceptions about AWS and I'd like to just tackle some of those with you if I may. So let me just sort of, let's list them off and you can respond. Yeah, we'll let our audience to sort of decide. So the first is that AWS has only tested dev workloads. Can you talk about that a little bit? >>Sure. Um, well test and dev local workloads are very popular. We saw, we covered that in the keynote. Um, and it's often a place where it organizations will start out with AWS, but it is by no means the most popular or most dominant workload. We have a lot of people migrating, uh, enterprise apps to the cloud. Um, if you look at, uh, in New York, uh, in our summit we talked about Bristol Myers Squibb, uh, running all of their, um, clinical trial simulations and reducing the amount of time it takes to run a simulation by 98%. Uh, if people are running Oracle, SharePoint, SAP, pretty much any workload in the cloud. And then another popular use is building brand new applications, uh, for the cloud. You can miss, some people call them cloud native applications. A good example is the Washington post who built an app called the social reader that delivers their content to Facebook and now as more people viewing their content, their than with their print magazines and they just couldn't have done that, uh, on premises. >>So, uh, the other one I want to talk about, we're going to do some serious double clicking on security so we don't have to go crazy on it, but, but there's a sort of common perception that the cloud is not secure. What do you guys say about that? Yeah, so, um, really our number one priority is security. You're looking at a security, operational performance, uh, and then our pace of innovation. But with security, um, what we want to do is to give enterprises everything they need to understand how our security works and to evaluate it and how it meets with their requirements for their projects. So it really all starts with our, our physical security, um, our network security, the access of our people. They're all the similar types of technologies that our customers are familiar with. And then they also tend to look at all the certifications and accreditations, SAS 70 type two SOC one SIS trust. >>I ATAR for our government customers. And then I think it was something a lot of people don't understand is how much work we've put into the security features. It's not just is the cloud secure, but can I interact and integrate, uh, your security functionality with all of my existing systems so we can integrate with people's identity and access systems. You could have a private dedicated connection from your enterprise to AWS with direct connect to, I really encourage anyone who has interest in digging into our security features to go to the security center and our website. It's got tons of information. So I'm putting on the spot. Um, what percent of data centers in the world have security that are, that is as good or better than AWS. It'd be an interesting thing for us to do a survey on. But if you think about security at the infrastructure layer down is what we take care of. >>Now when you build your application, you can build a secure app or non-secure app. So the customer has some responsibility there. But in terms of that cloud infrastructure, um, for a vast majority of our customers, they're getting a pretty substantial upgrade in their security. And here's something to think about is that, um, we run a multitenant service, so we have lots and lots of customers sharing that infrastructure and we get feedback from some of the most security conscious companies in the world and government agencies. So when our customers are giving us a enhancement request, and let's say it is, uh, an oil company like shell or financial services company like NASDAQ, and we implement that improvement because there's always new requirements. We implement that all of our hundreds of thousands of customers get those improvements. So it's very hard for a lot of companies to match that internally, to stay up to speed with all the latest, um, requirements that people need. >>Yeah. Okay. So, uh, and you touched on this as well as the compliance piece of it, but when you think of things like, like HIPAA compliance for example, I think a lot of people don't realize that you guys are a lead in that regard. Can you talk about that a little bit more? Yeah. So, uh, we have a lot of customers running HIPAA compliant, uh, workloads. Um, there's, there's one company or the, the Schumacher group, which does emergency room staffing out of Lafayette, Louisiana. And we, companies like that are going through the process. They have to follow their internal compliance guidelines for implementing a HIPAA compliant plan app. It's actually, it's more about how you implement and manage the application than the infrastructure, which is part of it. But we, we satisfy that for our customers. Let's talk a little bit about SLA. That didn't come up at least today in Andy's keynote, but it didn't reinvent and he made a statement at reinvent. >>He said, we've never lost a piece of business because of SLS. And that caught my attention and I said, okay, interesting. Um, talk about, uh, the criticisms of the SLA. So a lot of people say, wow, SLA, not just of Amazon's cloud, but any public cloud. I mean, SLA is a really a, in essence, a, an indication of the risk that you're able to take and willing to take. What are your customers tell you about SLS? The first thing is we don't hear a lot of questions about SLS from our customers. Some customers, it's very important that we have SLA is for most of our services, but what they're usually judging us on is the operational track record that we provide and doing testing and seeing how we operate and how we perform. Uh, and, uh, we had an analyst from IDC recently do a survey of a bunch of our customers and they found that on average the average app that runs on AWS had 80% less downtime than similar apps that are running on premises. >>So we have a lot of anecdotal evidence to suggest that our customers are seeing a reliability improvement by migrating their apps to AWS. You're saying don't judge us on the paper, judge us on our actual activities in production and in the field. Typically what most of our customers are asking for is they want to dig into the actual operational features and, and a track record. Now the other thing I want to address is the so called, you know, uh, uh, exit tax, right? It's no charge to get my data in there. I keep my data in there. You, you, you charged me for storing it for exercise and compute activity, but it's expensive to get it out. Um, how do you address that criticism? Well, our pricing is different for every service and we really model it around our customers to both really to really satisfy a broad set of use cases. >>So one example I think you may be talking about is I would Amazon glacier archive service, which is one penny per gigabyte per month. And for an archive service, we figured that most people want to keep their data in there for a long period of time so that we want to make it as cheap as possible for people to put it in. And if you actually needed to pull it out, the reason is because you may have had some disaster or you accidentally deleted something and that you are going to be, uh, you're going to be retrieving data on a far less frequent basis. So on an overall basis for most customers it makes sense that we could have done is made the retrieval costs lower and then made the storage costs higher. But the feedback we got from customers is, you know, archiving a majority of customers may never even retrieve that data at all. >>So it ended up being cheaper for a vast majority of our customers. I mean that's the point of glacier. If you put it there, you kind of hope you never have to go back and get it. Um, the other thing I wanted to ask you about is some of the innovations that we've seen lately in the industry, like a red shift, right? The data warehouse, you mentioned glacier. It was interesting. Andy said that glacier is the fastest growing service in terms of customers. Red shift was the fastest growing service, I guess overall at NAWS. So Redshift is an interesting move for you guys. Uh, that whole big data and analytics space. What if you could talk about that a little bit? If you talk to it, executives in the enterprise and even startups now, they have to analyze lots of data. Building a big data warehouse is, is one of the best examples of how much the pain of hardware and software infrastructure gets in the way of people. >>And there's also a gatekeeping aspect to it. If you're working in a big company and you want to run, you have a question and a hypothesis, you want to run queries against terabytes and petabytes of data, you pretty often have to go and ask for permission. Can I borrow some time from the data warehouse? No, no, no, no. You're not as important. Well, what are customers going to go, Hey, I'm going to go load the data, load a petabyte of data, run a bunch of analysis, and shut it down and only pay for a few hours. So it's not just about making a cheaper, it's about making use of technology possible where it was just not possible in feasible and cost prohibited before. Yeah, so that's an important point. I mean, it's not, it's not just about sort of moving workloads to the cloud, you know, the old saying a my mess for less. >>It's about enabling new business processes and new procedures and deeper business integration. Um, can you talk about that a little bit more? Add a little color to that notion of adding value beyond just moving workloads out of, you know, on premise into the cloud to cut costs, cut op ex, but enabling new business capabilities. When you remove the infrastructure burden between your ideas and what you want to do, you enable new things to be possible. I think innovation is a big aspect of this where if you think about if you reduce the cost of failure for technology projects so much that approaches zero, you change the whole risk taking culture in a company and more people can try out new ideas and companies can Greenlight more ideas because if they fail it doesn't cost you that much. You haven't built up all this infrastructure. So if you have more ideas that are, that are cultivated, you end up with more innovation. >>Whereas before people are too afraid to try new things. So I'm a reader of of Jeffrey's a annual letters. I mean I think they're great. They're Warren buffet like in that regard. One of the exact emphasizes, you know this year was the customer focus. You guys are a customer focused organization, not a competitive focused organization. And again, you got to recognize that both models can work, right? Can you talk about that a little bit? Just the church of the culture. Yeah, I mean when, you know, starts out with how we build our products. Anyone who has a new idea for a product, first thing they got to do is write the press release. So what our customers are going to see is it valuable to them. And then we get come get products out quickly and then we iterate with customers. We don't spend five years building the first version of something. >>We get it out quickly. Uh, sort of the, the, the lean startup, if you heard of the minimum viable product approach, get it out there and get feedback from customers. Uh, and iterate. We don't spend a lot of time looking at what our competitors are doing cause they're not the ones that pay our bill. They're not the ones that can hire and fire us. It's the customers. So I'm you've seen this thing come, you know, quite a ways. I mean, you were at Salesforce, right? Um, which I guess started at all in 99. You could sell that, look at that as the modern cloud sort of movement was, wasn't called cloud. And then you guys in 2006 actually announced what we now know is, you know, the cloud, where are we in terms of, you know, the cloud, you know, what ending is it? To use the sports analogy, I don't know what ending is it, but you know, it's an amazing time where there's such a massive amount of momentum of adoption of the cloud from every type of company, every type of government agency. >>But yet still, when you look at the percentage of it spend or you go talk to a large company and you say, even with all these projects, what percentage of your total projects, there's still tremendous growth ahead of us. Yeah. So, um, there's always that conversation about the pie charts. 70% of our, our effort is spent on keeping the lights on. 30% is spent on, on innovation. And I don't know where that number came from but, but I think generally anecdotally it feels about right. Um, talk about that shift. Yeah. Well I mean your customer base, you talk to any CIO, they don't like the idea of having 80% of their staff and budget being focused on keeping the lights on and the infrastructure would they like to do is to really shift the mix of what people are working on within their organization. It's not about getting rid of it, it's about giving it tools so that every ounce of effort they're doing is geared towards delivering things to the business. >>And that, that, that's what gets CIO is excited about the cloud is really shifting that and having a majority of their people building and iterating with their end users and with their customers. So we talked about the competition a little bit. I want to ask you a question in general, general terms, you guys have laid out sort of the playbook and there's a lot more coming. We know that, uh, but you know this industry quite well. You know, it's very competitive. People S people see what leaders are doing and they all sort of go after it. Why do you feel confident that AWS will be able to maintain its lead and Kennedy even extend its lead in why? Well, there's a couple things that we sort of suggest for customers to look at. I think first of all is the track record and experience of when you're looking at a cloud provider, have they been in this business for a long time? >>Do they have a services mentality where they've had customers trust them for their, for applications that really they trust their business on? Um, and then I think secondly, is there a commitment to innovation? Is there a pace of new features and new technologies as requirements change? And I think the other, the other piece that our customers really give us a lot of feedback on is that they can count on us Lauren prices, they can count on a real partnership as we get better at this and we're always learning as we get better and we reduce our cost structure, they're going to get to benefit and lower their costs as well. So I think those are kind of big things. The other thing is, is the customer ecosystem I think is a big part of it where, um, you know, this is technology. Uh, people need advice, they need, uh, best practices. >>They often need help. And I'm in a kind of analogy I make is if I have a problem with my phone, with my iPhone, I can probably close my eyes and throw it, I'm going to hit someone who also has an iPhone. I can ask them for help. Well, if you're a startup in San Francisco or London or if you're an enterprise in New York or Sydney, odds are that your colleagues, if they're doing cloud, they're doing it with AWS and you have a lot of people to help you out. A lot of people to share best practices with. And that's a subtle but important point is as, as industry participants begin to aggregate within your cloud, there's a data angle there, right? Because there's data that potentially those organizations could share if they so choose to a, that is a, that is a value. And as you say, the best practice sharing as well. >>I have two last questions for you. Sure. First is, is what gets you excited in this whole field? I think it's like seeing what customers are doing. I mean, that's the cool thing about, uh, offering cloud infrastructure is that anything is possible. Like we met Ryan, uh, who spoke from atomic fiction. These guys are the world's first digital effects agency that's 100% in the cloud. And to see that they made a movie and all the effects like the Robertson mech, his flight film without owning a single server, um, it's just, it's amazing. And to see what these guys can do, how happy they are to have a group of 30, 40 artists that, um, can say yes when the director says I want it to do differently. I want to add, go from 150 to 300 shots and to see how happy and excited they are. >>I mean that, that's what motivates me. Yeah. Okay. And then my last question, Ariel, is, um, you know, what keeps you up at night? What worries you? Well, I think, you know, the most important thing that we can't forget is to really keep our fingers on the pulse of the customers and what they want, and also helping them to figure out what they want next. Because if we don't keep moving, then we're not going to keep pace with what the customers want to use the cloud for. All right, Ariel Kelman thanks very much. Congratulations on the Mason's progress and we'll be watching and, and really appreciate, again, you having us here. Appreciate your time coming on. Good luck with the rest of the tour. I hope you don't have to do every city. It sounds like you don't, but, uh, but if it sounds like you've enjoyed them, so, uh, congratulations again. Great. All right. This is Dave Milan to keep it right there. This is the cube. We'll be back with our next guest right after this word.