>>long from Las Vegas. It's the Q covering a ws re invent 2019. Brought to you by Amazon Web service is and in along with its ecosystem partners. >>Welcome back to the Cube. Lisa Martin live on the show floor of AWS. A re in that 19 was stupid. And then this is the almost the end of our second day of coverage. And as we were just saying, There's more people in here now than there were probably a couple of hours ago. 65,000 or so folks that AWS is expecting here and I think they're all in the Expo Hall now. Sue and I are pleased to welcome from Amazon business. David Stout, the head of global alliances and partnerships. Stephen, welcome to the Cube. >>Thanks so much for having me excited because this afternoon, >>so everybody on the planet knows amazon dot com. It has transformed our lives. I also think that it's transformed us as consumers and put pressure on any business, be able to deliver to us what we want whenever way wanted >>everybody. This week's getting alerts on their phones of package deliveries. >>Yes, that's why you one of the best parts of your day is when that Amazon package shows up and it's so fast. I always forget what's really order. Hope is for me. But I'd love for you to share with our audience what Amazon businesses. >>So obviously, you just said we all know about Amazon. We'll know about eight of us, right? 65,000 people here this week. Amazon businesses, a group that's been around since 2015 and we're focusing specifically on the needs to procure it needs of business and institutional customers. >>So the big theme that we heard from Andy Jassy was talking about transformation. We can't incrementally change the environment, so tell us a little bit what happens in your space and how that ties in tow, those transformations a couple things. So so one we like. I >>said, we start in 2015 focusing on both private and public sector customers, and what we're really trying to focus on is that experience you talked about For consumers taking that same ease of use and experience to the business world, corporate chairman is really hard and cumbersome. There's a lot of tools that need to be in used, and so we're trying to drive that same ease of use into the corporate and public sector world as well. So one of things that we've done way launched 2015. As I said, way don't share a lot of details. But we did about a year ago announced that we're on about a $10 billion annualized run rate. We're in nine countries around the world so outside the United States were also live in Germany, United Kingdom, France, Italy, Germany, Spain, India, France, Sorry, India, Japan and just announced last month in Canada. So it's, ah, fast growing business and we continue to try to find ways our customers are great to give us feedback on how we can continue to innovate to serve their needs. >>Yeah, you know, it's funny. I have some history, my career, working with procurement organizations, and change is not something I hear from them. When I think of public sector, it's like, Well, it's on the G s, a contract negotiated from the years when you go to companies and you say, Hey, we've got the new product. Oh, well, I got to go through the procurement cycle to get that through these environments. So how do we make sure that companies can take the innovation, you know, be agile and, you know, take advantage of these things now from a human standpoint, yes. So there's >>a couple things. So one this week you're here in a town about digital transformation, right? Something that isn't an event. It's an ongoing evolution, one of things you know, We've been coming to to reinvent for four years now, and what we're seeing and continually saying, is that there's a convergence between the I T strategies and the procurement strategies. A lot of that is happening through technology and enabling a new technology. But it za super interesting observation for us sitting on the sidelines and helping drive some of that innovation for customers. >>The rule of the chief procurement officer has changed a lot in recent years alone. Where this rose. You're saying there's this now convergence with I T. But the CPO has a much bigger opportunity now to become much more of a strategic driver of business, whether it's evaluating supply chain management and looking for ways to streamline operations. Big shift from the financial perspective, Dr Spell some of the things that Amazon business is seeing in your customers and how it is enabling those two sides the I t folks on the procurement folks to come together so that what they're enabling is that digital business transfer. >>Yeah, absolutely so historically procurement teams up CPS and their teams were responsible for very traditional things. Sourcing contract management, risk management, supplier on boarding and off, boarding compliance with you to your point earlier still on regulations and is it on a schedule or not? Those >>are all >>still really important attributes and will continue to be a huge focus areas for those organizations. But I think with the advent of technology, what you're starting to see is a lot more focus on how to use artificial intelligence. How do we use our P? A. How do we use use machine learning to find new opportunities to Dr Efficiencies within those operations? And so I think because of that, what you're starting to see is a lot more harmonization between what see peos are thinking about. The strategy is employing and the c i ose and we're releasing a convergence between those two organizations. Republished. Amazon Business published an article with Procure Con a couple months ago. One of the findings that came out of that study was that there is a convergence happening. Over 55% of the respondents said that their goals are either fully aligned or mostly align with the goals of of the C. I. A. Organization. So we're works pretty excited about that happening. We think that we're gonna be helping customers continue to drive that collaboration and for forward thinking organizations that are trying to drive more technology way believe it's gonna be a requirement in essential. >>That's awesome. It aligns with some of the broader trends we've been seeing in cloud adoption overall, it can't be. I t in the business separately, doing their things. Help us understand how this movement forward translates into innovation for for customers. Yeah, >>so a couple things come to mind, um, eight of us things number things happening here. Eight abyss yesterday, oftentimes is sorry. Oftentimes eight of us is considered as a starter for when you think about digital transformation and cloud transformation. Um, pace of that evolution is amazing, right? Yesterday there were 14 press releases issued on new technologies and capabilities that AWS is delivering directly or through partners and I think those types of things we're helping drive that pace of evolution we talked about earlier. One of the things that I found really interesting is eight of us as a partner network. It's very mature. There's tens of thousands of partners. They launched it in 2013 and it's a huge portion of their business and growth. Amazon business is much younger in our in our maturity on we're just starting to Launch a partner network. One of things were really interested in is how do we work with third party organizations, and my team's responsible for really extending the range and reach of our traditional sales, marketing and service's channels by working with third parties. Those take the forms of primarily software companies. So you see Air P organizations, a procurement platforms and accounting expense management platforms is examples there and in the infrastructure providers that leverage that. So Octa eyes an identity management provider, their sponsor of reinvent this year they're our partner of Amazon business, and we've built a pre configured integration that will allow Octa customers that you're using a single sign of product to access the Amazon business, uh, store easily and within the controls that they've established >>it. Actually, we just had Dave McCann from the eight of us Marketplace on the program earlier, and we've watched the evolution in maturation of marketplace. How does that tie underworld allowing? Really? You know, I I've been going for years. It is close, is what we have to the enterprise app store there. So how does this play into your s? So, you know, I think there's gonna continue to be >>convergence between Amazon business in AWS overtime in the marketplace, we offer kind of a goods marketplace. They offer a software marketplace in a service marketplace. And so I think we're still working on how do we harmonize that experience better. And we've got a lot of work to do there. We have a saying in Amazon that it's always Day one, and that's a great example where we still have a lot of work to do. One >>of the >>things that is another one of our partners, Cooper, which is procure to pay platform and a long time Amazon business partner we've done some pretty creative things to improve the user experience and make it easier for customers is both Cooper and Amazon business and concert Together announced couple months ago. They've built an integration to the eight of US marketplace. And so that's a pretty exciting opportunity where people who are provisioning service is via a theatre. Best marketplace gonna have transaction, flows seamlessly into their, procured up a solution and let you know the user whose provisioning that focus on what they want to do, which is developing new solutions to serve customers. >>Yeah, Cooper is one of our cube clients. I was just covering their event Cooper London just a few weeks ago. One of the things that's interesting about them, and I'd love to get your feedback on the is their community is really massively influential in their technology, and I presume in terms of the partnerships that they forge and as really catalysts for that procurement role being so strategic to the business. Talk to us about some of the customers that you are working with, and there's third party folks as well. How are the influencing the road map of Amazon business? >>Yeah, so our customers are never shy to tell >>us that's a >>pretty right, and that's one of the things that we've been able to grow so quickly, right? So we have. We've segmented our business into four verticals who focus on health care, education, government and then commercial, which is our largest segment. We have custom invites your boards from each one of those segments and those air very intimate working sessions with everyone from micro customers up to Fortune 100 customers that are never shy, as I said to provide feedback on what we need to do better. I was with a client last week who and one of our partners who It was great to hear them say way. They just have been a at a customer advisory board. And we love the fact that those features we suggested to you 12 months ago are now in production. And so it's a huge part of what we do. It's a huge part of what drives our road map. Wey have probably the most sophisticated voice of customer feedback monitoring systems that I've seen, and that includes everything from, you know, our sales professionals talk to customers and log that feedback on future requests to monitoring social feeds to understanding what our customers want. So it's ah, it's a big part of what we do and how we do it. And I think it's one of the things that makes Amazon a really differentiated company business overall. >>All right. So, David, I think most people not only did the no Amazon, but many of them, including disclaimer myself, our Amazon prime customers. You'll have something called Business Prime. Maybe explain a little bit what that is. S >>O. So most of us are prime members as consumers, and there's a number of features to come with that. There's a shipping program, which is where it started, and then we've had a different solutions. Whether it's music or video, there are storage. Amazon business has the same philosophy. And so right now there are. We have a business prime shipping program, which was launched two years ago. We also have a other business prime offerings, including advanced analytics. So within Amazon business, them's on business portal. You can actually look at spend categorization, and we've got some pretty powerful data visualization capabilities, its prime benefit, and we have a pretty extensive road map for other features that are going to continue to come. We have financing vehicles that are tied to it already, and there's there's a lot on the road mouth. >>Well, if you need two more business videos for your business, prime customers, give us a call. We have a large library with Amazon for >>that year for seeing that, you know, >>let's talk about security. It is a fundamental component of any organization because there is so much data and we're only generating more and more and more businesses need to ensure that how they're transacting with any organization and that their data is managed in a secure way. What are some of the fundamental elements of Amazon business that you guys have built into the technology to delay liver that security for your business customers? >>First of all, we're built fully on AWS, as you'd expect, and so there's There's a >>happy about that, by the way. >>So there's there's that's that's just a safety feature that I think it gives most of his comfort. I think back to this kind of notion of convergence of I t and procurement. This is something I find really interesting. And so, um, this prick your con article I mentioned a few minutes ago one of the findings and that was that 70% of organ of respondents said that their security strategy is shared jointly between their i t and the procurement teams. And so obviously security here it reinvent you walked the expo floor. There is an entire row of things that are focused on security and how to continue to drive that within the cloud in an efficient way. This whole concept of I t and procurement coming together share objectives. I think that's a great example where it's already happening, and we continue to expect that it will happen in more detail. >>What are some of the things that surprised you most about the last day and 1/2 with all the announcements that folks understanding more about Amazon business, some of the feedback that you've gotten on the show floor or in customer meetings that the kind of highlight? Yeah, we're doing the right thing. Here >>S o. I think >>for it's always humbling when people don't know about us, right, Asai said. We've built a pretty big business, but it's still really, really early on dso It's to me that's a great opportunity that we can continue to be more to educate customers about the opportunity and how Amazon can help transform their procurement practices. It's still super release, so we're always wanting to hear that feedback. And what else could we d'oh For customers that are aware of us? What's been really also humbling is how much they're finding us to be a bigger and bigger portion of their strategic vision in the future. And so we're really excited about that on both fronts, right? The opportunity to Maur, but also that customers who are adopting us or seeing great opportunities to consolidate their suppliers Dr Greater Efficiencies and, most importantly, provide a better end user experience that they're used to from their home. Purchasing >>of this last question for you Looking at the vertical focus that you guys are taking, you mentioned the verticals, any of them in particular that are really kind of leading the way here. For that I t procurement strategic collaboration. You mentioned healthcare, commercial, anything that you really see as early adopters leading edge. >>So we actually see there's probably some some nuances between each vertical, but we've seen some great adoption across all for those vertical. So we have 55 of the Fortune 100 as customers. We have 80% of the largest educational institutions in the U. S. Is customers. We have a greater than 50% of the largest health systems in the U. S. Is customers already and greater than 40% of the largest municipalities in United States. So so we've seen some really great adoption across all four segments. Again, I think the needs of a small dentist's office are gonna be different than the needs of industrial manufacturing organization. And so we continue to find solution sets with little dress, the needs of each one of those customers. We have strategic teams that are focused specifically on the segments and how to solve them. And as I said before, customers will always tell us what we could do better at >>that. Really, >>What drives our innovation >>and where can folks go? Business owners small enlarged to learn more about Amazon business >>amazon dot com slash business >>Easy, David. Thank you for joining student on a program and sharing with us What Amazon business as we appreciate it. >>Very welcome. Thanks for having me. >>Alright. First the Minutemen. I'm Lisa Martin and you're watching the Cube from Day two of our coverage of aws reinvent 19 from Vegas signing off. Thanks for watching