>>from >>around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. >>Welcome back to the cubes. Virtual coverage of a dips reinvent 2020. I'm John for your host of the Cube great segment here with Presidio. Two great guests Chris Keg, Nazi senior vice president, general manager of the Cloud and Managed Services Group of Presidio, and Sam Fattah Gado, VP of Cloud Solutions Group with Presidio both been here in the Cube talking with us many times before. Great to have you guys on. Thanks for coming on Chris and Sam. >>Great. Thank you, John. Thanks for having us. >>We've had many great cloud conversations with your company and engineers. Architects going back, I think 2016 2017, really as cloud hit, that inflection point. Certainly, scaling Public Cloud and on premise is cloud operations. Certainly that has happened as continue to accelerate. Chris, I would like you to explain your relationship with AWS and you're focused at this. Reinvent what's going on with Presidio? What's new in your world? What's changed for you and the customers, >>right? So thank you, John. So Presidio's focus really is, um you know, around developing the right strategies, helping companies realize the full potential of the AWS cloud. Think of it as ah vory strategic approach that aligns technology with business outcomes really on a global scale. Um, this past year, um, if I look back a year ago, it reinvent when Presidio was there. Um, code a global was also there, which was an acquisition that we did. And we closed out, uh, in August and Sam Farr Gado was the CEO of Code Global. So what's really changed for us is taking our legacy business around infrastructure around security around Matic services on bond, combining that with really combining that with what Coda had around the professional services side of cloud engagement and really building out a company that I believe can deliver a very unique offering to clients because we can cover the full spectrum. So for us Ah, lots happened in a year since we were at reinvent attend day. It's really about, you know, business and technical leaders that we have that are really dedicated thio, you know, focusing on customers, their client experience, and really delivering the best business outcome that weekend >>you know, one of the things that we chat in the past, you just mentioned manage services. This is a huge deal because one of the trends that we've been reporting on here in the Cube and on Silicon angle is, you know, a lot of the transformational goals or accelerated Cove it. We see that projects that are doubling down are mostly cloud related, large scale automation, machine learning. But from an executive standpoint, the mandate is everything is a service. So there's a big executive push. See XO, CSOs, whatever for everything as a service. And when you put that out there and put that ball in play, so to speak, it's not easy, right? So when you go when you say hey, make everything is a service, it's not trivial, and then you get okay, How does that work? That's where the hard part happens. I want to get your take on that. Is that something that you're seeing with your customers? They put that ball in play, let's get the manage services and then you got to put it together. Not that easy. What's your take on that? >>I think you know when you think about clients today and what CEOs are looking for, it's really it is a pay by the drink or a consumption based model, right? But at the end of the day, they don't they want to manage their business. They don't want a Mac manage huge I t groups on DSO software developers within within their own business. They wanna pass that responsibility onto experts like Presidio. So I think it za fact. What's what's simple for them? How does how do they move kind of accountability and how did they get to their business outcomes without owning? And I t business within their existing business? So those are some of the changes that we've certainly seen from a mindset perspective, but but we're fully prepared. Thio offer that city >>that's great for your business is certainly a tail when Sam, I want to get to you. Because when you get to that conversation, okay, put his a service a lot in their unpack. I mean, depending on who you're talking to, you know, certainly accelerating it with Presidio. I see that you're now part of Presidio. Take us through what's going on in your world because when you get to the customer. You gotta work backwards from what they're trying to dio not trying to retrofit of technology into their environment. You've got to kind of work with what they got. But actually get them to the cloud. Can you share what you're doing with customers? >>Yeah. Thanks, John. I appreciate that. And one thing I want to say about joining Presidio is that, uh, you know, we, uh, had worked together for a couple of years and really found that we had a great cultural fit and that we had the same goal. And that's to become a W s number one partner globally, providing these kinds of mission critical solutions for clients. We've been told often times that we are Amazonian in terms of our customer obsession are bias for action. And what you just said there is helping them get the benefits of cloud quickly, no matter where they're coming from. Because, you know, they wanna have the availability security scalability, But they also have to integrate in with their existing systems. So what we're finding with clients is they want to transform the way they do business. They want to transform their industry oftentimes, and that's what they're looking for, you know, when they partner with us and they look for leveraging the AWS platform. >>So let me ask you a question then, because certainly we've seen I've interviewed a ton of Amazon customers and executives, and it's some >>of the >>things that's going on with Cove. It has just been amazing what they've enabled people to move so fast and put riel game changing impact, whether it's societal impact or some other transformative thing. And if you look at Amazon traditionally they started as a transactional thing. You get some easy to you by by the drink. Everything's going on. But every reinvent is more announcement. Andy Jassy said one hour keynote turns into a two hour keynote three, our keynote. And now you're looking at more transform inal transformational solutions. You still got some transactions in there. But when you gotta put the holistic, cohesive plan together, that has to be transformative. How do you guys talk to customers when you say it's not just transactional? Transformative? >>Yeah, well, we look, you know, we're doing it, you know, internally ourselves as well. You know, with Presidio now we've gone from transactions. Transactions are important but we really want to transform the way our customers are able to do business. And with co vid, it's been even more important to be ableto get things done without having to be physically present in one location. And so whether it's telehealth or remote learning, remote sales activities making sure that systems are integrated with commerce engines are again are very secure. The cloud and A W S is really bringing a big difference to the marketplace, and we're very immersed in that we have clients. Uh, I'll give you an example. Wheel pros. One of the leading tire after market tire and wheel manufacturers and designers we've talked with with their CEO, Randy White. He said. What we're doing with Presidio and on AWS platform is building the wheel. Pros of the future. What does that look like? He says he wants his systems to be just like his products for his customers. They've got to be high performing. They gotta be high quality, and they've got to deliver a great customer experience. Uh, well, you know, we want to be able to leverage a lot of the services that AWS has to be able to deliver those kinds of things quickly and with high quality. So it's really exciting to be able to see the impact we're having wheel pros, business and other clients like that. >>So when you talk about your solution to take him in to explain what you guys offer a client because you have a Presidio cloud solution, you get a lot of services can just take a minute to explain what people are buying and what they're getting from Presidio. Because, um, that sounds like a great customer success story. What are they? >>What >>are they getting? >>Okay, so what? They're getting really again following kind of the Amazonian way, working backwards, right? So let's start with an idea. Let's let's let's look at something we really want to do that's going to change dramatically. Change and improve the way they delight their customers. So start with that idea. Will help them design it. Welcome. Build it. Welcome. Deploy it. We could help support it. Fully managed service support eso from from the idea through to production and then ongoing support enhancements. They can count on Presidio to deliver all of those capabilities on Dakota Couldn't do all of that on our own. We were really grated application development, data and analytics. Uh, dev Ops and Automation. But with Presidio, we bring everything to the table Onda geun fully supported. Help them from, you know, even managing. You know, they're they're resell, being able to manage the environment, making sure that they're getting the most value out of these critical investments. >>Chris, I want to get your thoughts on this. Um, Sam mentioned you wanna be the number one solution provider for on AWS? Um, great mission, by the way, I wanna unpack that now. Last year, I reported at reinvent one of the feedback items was Amazon's gonna think more about solutions. Certainly Microsoft does that. We've seen that, um, Amazon doesn't really flout a plant. Those solutions very much. I mean, even though they have them there there you guys are a nice fit there. So if you're gonna be the number one solution provider, what do you guys need to do to do that? What a customers expect from you guys? Can you take a minute? Explain your plan? >>Sure. Yeah, absolutely, John. So I think you know, when you think about clients that air transforming their business right. They need to be competitive in their own market. So when they think about business outcomes in what Presidio does, we look at it in really a full life bull approach. If you think about the applications that Sam spoke about creating things that Air Cloud native, perhaps it's a mobile ordering app that's going to make them more competitive, especially in this covert environment. Um, think about their their just their normal consumption of services on the AWS platform. How do we optimize it for them? How do we ensure that they have the right services in a very agile, secure environment? So managing and owning it the full life cycle is really kind of what we deliver from a solution set. But every client is a little bit different, depending on really what their their needs are and what what their business outcomes are. So we can take it everywhere, anywhere from, uh, full development toe Full deployment Onda managing it in a very secure way, um, to adding in their consumption side of it, adding in their licensing component where perhaps they're buying under marketplace or a or a c p p o offering. So what's really unique about Presidio is that we offer that full solution to clients from end to end, and we can manage the entire process, deliver performance, cost savings and very predictable models >>from I love the, you know, a big fan of the entire and people who watch the Cubano. All I do is talk about and to end is really a critical way to look at things holistically if you're looking at something cohesive as a solution with transactional transformative capabilities. But I want to get your thoughts on some of the market demand challenges. And if you guys could react to it, um, Sam and Chris, there's two spectrums we're seeing with this pandemic clients, customers who were, like, have a tailwind. Oh, my God. This is accelerating my value proposition. I need more help. I gotta get to the cloud I gotta transformed quickly. And then the other end of the spectrum is the worst screwed. So we're gonna reset and retool while we're kind of in this bunker down mode and they want to come out of the pandemic with a growth plan. So kind of to spectrums, right? Did you guys see that as well what's the range of psychology or buyer behavior for your customers? Because there seems to be like the airline. They're not really getting a lot of business, but they're redoing their systems. They're being classified. Or, you know, this is an app for zoom or school educational. It's needed. It's in more demand. So you kind of everything in between those Do you guys see that? And if so, or if not >>way, certainly see a component with our client base around saving costs, right? What are they going to do in this environment? Toe save costs. But at the same time, we are seeing a lot of creativity around. What does their future model look like? And how did and what do they need to build? And that's what they're spending money on. Eso. We've seen it across kind of all verticals within the business, but certainly it it's a it's a dual approach. I think customers that go about doing that properly really prepare themselves for when we all do come out of this. That the business was will be set to capitalize on the change in market. That's what I've seen. I'm sure Sam has some additional comments >>Your thoughts? >>Yeah, absolutely. I would say necessity is the mother of invention. Invention. Right. So you know, we're seeing customers that we're thinking about cloud or, you know, considering maybe a new application cloud native application. But, you know, maybe you felt like they had time to do it where, you know, with covert ITT's bold are gonna be the ones that survive and thrive on DSO. Just like we saw when people came out of the 2000 and eight financial crisis. Those that invested in their systems, invested in their people, people skills is another big area right way at Presidio have I think we're upto like 600 AWS certifications across the board from sales through all different technologies. Because, you know, we wanna retain our people. We want to help them develop their skills and make sure that we're bringing the best talent to our clients. Eso yet z you know, it's a it's a difficult time, but it's a time for opportunity. >>Necessity could be business opportunity to capture opportunity, recognition, capture or survival. I mean, it is the mother of invention, you know it is it is a forcing function, guys. Thanks for the >>one of our clients. If I if I could, just mentioned Dunkin Brands, you know, they they couldn't have traffic in their stores. So, you know, mobile ordering became even more important. Um, you know, driving with Dr Drive up pick up and we helped them move from a multi tenant SAS application that was, you know, wasn't performing wasn't a reliable enough to an AWS Cloud native application, and they tripled the traffic while also improving performance and reliability. That's the kind of power that you can have with AWS and Presidio. >>That's a great eggs. And that's a great example looking relate to that. First of all, Dunkin Donuts makes great coffee and from the East Coast originally. So I love Dunkin Donuts. DND um, but great, great brand that mobile app. Good call, because people want to get in the curbside pickup or delivered. I mean, this is the new the new normal guys. Thanks so much for the insight. Final word. If you both can weigh in, um, share with the audience. The focus for this reinvent if you could share the Presidio message for reinvent virtual 2020. What do you think, >>Sam Why don't you go first? >>Well, from my perspective, it's all about, you know, taking it to another level. That's what we feel like we're doing was part of the video now again becoming the number one AWS partner. But it's also helping customers take their most important applications, uh, to the cloud so that they can improve the way they deliver for their customers. That's really what it's all about for me. >>Yeah, I would. I would have to concur with Sam. I mean, you know, our goal. Really like Sam said a few times to be be the number one aws partner. But with that comes, you know, a huge undertaking in a huge responsibility for us, you know, with our teams and and with our customers. At the end of the day, we want all of our clients to think of us first. Um, you know, when we're delivering these solutions and how impactful Presidio has been to their business for their growth onder for their future success. So for us, the customer obsession side of it all is really we want to continue that, and that's what we're gonna get out of this conference is how do we continue that? >>Well, congratulations. Like Chris and Sam. Thanks for coming on. I always say I enjoyed my conversations with your team. Uh, they get the technical chops, um, and having a service offering that accelerates mawr cloud goodness for customers on my, um, Amazon's got a great ecosystem clouds growing like crazy. So congratulations. Thank you. >>Thank you. Thank >>you. >>Thanks for coming on the Cuban John for your watching the Cube coverage of aws reinvent 2020. It's virtual this year. We're not impersonal, but the cube virtualization It's hit the market. More cube interviews remotely. And I'm John for Thanks for watching.

>> Narrator: From Miami Beach, Florida, it's theCUBE, covering Acronis Global Cyber Summit 2019. Brought to you by Acronis. >> Okay, welcome back everyone. It's theCUBE's two day coverage of Acronis' Global Cyber Summit 2019, here in Miami Beach, at the Fontainebleau Hotel. I'm John Furrier, host of theCUBE. We're with Katya Fisher, Partner Chief and Chief Privacy Officer at Greenspoon Marder. Legal advice is right here on theCUBE, ask her anything. We're going to do a session here. Thanks for coming on, appreciate it. >> Thank you very much, I'm going to have to do the little disclaimer that all lawyers do, which is, nothing here is to be construed as advice. It's just opinions and information only. >> I didn't mean to set you up like that. All kidding aside, you closed for the panel here for Acronis' conference. Obviously, cyber protection's their gig. Data protection, cyber protection. Makes sense, I think that category is evolving from a niche, typical enterprise niche, to a much more holistic view as data becomes you know, critical in the security piece of it. What was on the, what were you guys talking about in the panel? >> Well, so, the first issue that you have to understand is that cyber protection is something that has now become critical for pretty much every individual on the planet, as well as governments. So something that we talked about on the panel today was how governments are actually dealing with incoming cyber threats. Because now, they have to take a look at it from the perspective of, first of all, how they themselves are going to become technologically savvy enough to protect themselves, and to protect their data, but also, in terms of regulation and how to protect citizens. So, that was what the panel discussion was about today. >> On the regulatory front, we've been covering on SiliconANGLE, our journalism site, the innovation balance, is regulatory action helpful or hurtful to innovation? Where is the balance? What is the education needed? What's your thoughts on this, where are we? I mean early stages, where's the progress? What needs to get done? What's your view on the current situation? >> So, I'm an attorney, so my views are perhaps a bit more conservative than some of the technologists you might speak with and some of my clients as well. I think that regulation is, as a general matter, it can be a good thing. And it can be quite necessary. The issues that we see right now, with regard to regulation, I think one of the hottest issues today is with respect to data laws and data privacy laws. And that's obviously something that I think everyone is familiar with. I mean take a look at, in the United States alone. We've seen the city of Baltimore dealing with breaches. We've seen other parts of the government, from the Federal level all the way down to municipalities, dealing with breaches in cyber attacks. We've seen data breaches from banks, Capital One, right? I believe Dunkin' Donuts suffered a breach. Equifax, and then at the same time we've also seen individuals up in arms over companies like 23andMe and Facebook, and how data is used and processed. So data seems to be a very very hot button issue today across the board. So something that we're really thinking about now is, first of all, with respect to the regulatory climate, how to deal with it, not only in the United States, but on a global level, because, when we talk about technology and the internet right, we're in an era of globalization. We're in an era where a lot of these things go across boarders and therefore we have to be mindful of the regulatory regimes in other places. So, I'll give you an example. You might be familiar with the GDPR. So the GDPR is in the European Union. It's been in effect now for the last year and a half, but it affects all my U.S. clients. We still have to take a look at the GDPR because at the end of the day my clients, my firm, might be dealing with foreign companies, foreign individuals, companies that have some sort of nexus in the European Union, et cetera. So because of that, even though the GDPR is a set of regulations specific to the European Union, it becomes extremely important in the context of the United States and globally. At the same time, the GDPR has certain issues that then end up conflicting often times with some of the regulations that we have here in the United States. So, for example, the right to be forgotten is perhaps the most famous clause or part of the GDPR and the right to be forgotten is this concept in the GDPR that an individual can have information erased about him or her in order to protect his or her privacy. The problem is that from a technical's perspective, first of all, it's an issue because it becomes very very difficult to figure out where data is stored, if you're using third-party processors, et cetera. But from a regulatory perspective, the conflict comes in when you take a look at certain U.S. laws. So take a look for example at banking regulations in the United States. Banks have to hold some types of data for seven years and other types of data they can never delete. Right? Lawyers. I am licensed by the New York State Bar Association. Lawyers have their own rules and regulations with regard to how they store data and how they store information. HIPAA, medical records. So, you see these conflicts and there are ways to deal with them appropriately, but it becomes some food for thought. >> So it's complicated. >> It's really complicated >> There's a lot of conflicts. >> Yeah. >> First of all, I talked to a storage guy. He's like data? I don't even know which drive that's on. Storage is not elevated up to the level of state-of-the-art, from a tracking standpoint. So, it's just on the business logic is complicated. I can't imagine that. So, I guess my question to you is that, are you finding that the jurisdictional issue, is it the biggest problem, in terms of crossport and the business side or is the technical underpinnings, that with GDPR's the problem or both? What's your-- >> I mean it's both, right? They're a lot of issues. You're right, it's very complicated. I mean, in the United States we don't have some sort of overarching federal law. There's no cyber protection law in the United States. There's no overarching data protection law. So, even in the U.S. alone, because of federalism, we have HIPAA and we have COPPA which protects children and we have other types of acts, but then we also have state regulations. So, in California you have the California Privacy Act. In New York you have certain regulations with regard to cyber security and you have to deal with this patchwork. So, that becomes something that adds a new layer of complexity and a new layer of issues, as we take a look, even within the U.S. alone, as to how to deal with all of this. And then we start looking at the GDPR and all of this. From a technical perspective. I'm not a technologist, but. >> Katya, let me ask you a question on the (mumbles) and business front. (mumbles) I think one of the things. I'm saying it might or may not be an issue, but I want to get your legal weigh-in on this. >> Katya: Sure. >> It used to be when you started a company, you go to Delaware, very friendly, domicile in Delaware, do some formation there, whether you're a C corp or whatever, that's where we tend to go, raise some money, get some preferred stock, you're in business. >> Is there a shift in where companies with domicile, their entity, or restructure their companies around this complexity? Because, there's two schools of thought. This brute force act, everything coming at you, or you restructure your corporate formation to handle some of the nuances, whether it's I have a Cayman or a Bermuda... whatever's going on in the regulatory regime, whether it's innovative or not. Are people thinking like that? Or, what's your take on it? What's some of the data you're seeing from the field around, restructuring around the problem? >> So, with respect to restructuring, specifically around data laws and data protection laws, I'm not seeing too much of that, simple because of the fact that regulations like the GDPR are just so all-encompassing. With respect to companies setting up in Delaware as opposed to other jurisdictions, those are usually based on two issues, right, two core ones, if I can condense it. One has to do with the court system and how favorable a court system is to the corporation, and the second is taxes. So, a lot of times when you see companies that are doing all of this restructuring, where they're setting up in offshore zones, or et cetera, it's usually because of some sort of a tax benefit. It might be because of the fact that, I don't know, for example, intellectual property. If you have a company that's been licensing IP to the United States, there's a 30% withholding tax when royalties are paid back overseas. So a lot of times when you're looking at an international structuring, you're trying to figure out a jurisdiction that might have a tax treaty with the United States, that will create some sort of an opportunity to get rid of that 30% withholding. So, that's where things usually come into play with regard to taxes and IP. I haven't seen yet, on the side of looking for courts that are more favorable to companies, with respect to data privacy and data protection. I just haven't seen that happen yet because I think that it's too soon. >> How do companies defend themselves against claims that come out of these new relations? I mean GDPR, I've called it the shitstorm when it came out. I never was a big fan of it. It just didn't. I mean, I get the concept, but I kind of understood the technical issues, but let's just say that you're a small growing business and you don't have the army of lawyers or if someone makes a claim on you, I have to defend it. How are companies defending themselves? Do they just shut down? Do they hire you guys? I mean, obviously lawyers need to be involved. But, at some point there's a line of where having a U.S. company and someone consumes my media in Germany and it says, hey I'm a German citizen. You American company, delete my records. How does that work? Do I have to be responsible for that? I mean, what's? >> So, it's really case-by-case basis. First of all, obviously, with regard to what I was talking about earlier, with respect to the fact that there are certain regulations in the U.S. that conflict with GDPR and the right to be forgotten. If you can actually assert a defense and sort of a good reason for why you have to maintain that information, that's step one. Step two is, if it's some complaint that you received, is to delete the person's information. There's an easier way to do it. >> Yeah, just do what they want. >> Just comply with what they want. If somebody wants to be off of a mailing list, take them off the mailing list. The third is, putting in best practices. So, I'm sure a lot of things that people see online, it's always great to go ahead and obtain legal counsel, even if you're consulting with a lawyer just for an hour or two, just to really understand your particular situation. But, take a look at privacy policies online. Take a look at the fact that cookies now have a pop-up whenever you go to a website. I'm sure you've noticed this, right? >> John: Yeah. So, there are little things like this. Think about the fact that there are, what is known as clickwrap agreements. So, usually you have to consent. You have to check a box or uncheck a box with respect to reading privacy policies, being approved for having your email address and contact information somewhere. So, use some common sense. >> So, basically don't ignore the prompt. >> Don't ignore the problem. >> Don't ignore it. Don't stick your head in the sand. It'll bite you. >> Correct. And the thing is, to be honest, for most people, for most small companies, it's not that difficult to comply. When we start talking about mid-size and large businesses, the next level, the next step, obviously beyond hiring attorneys and the like, is try to comply with standards and certifications. For example, there's what is known as ISO standards. Your company can go through the ISO 27001 certification process. I think it costs around approximately $20,000. But, it's an opportunity to go ahead, go through that process, understand how compliant you are, and because you have the certification, you're then able to go to your customers and say, hey, we've been through this, we're certified. >> Yeah. Well, I want to get, Katya, your thoughts, as we wrap up on this segment, around Crypto and Blockchain. Obviously, we're bullish on Blockchain. We think this is a supply chain. (mumbles) Blockchain can be a good force, although some think there's some work needs to be done on the whole energy side of it, which is, we would agree. But, still. I'm not going to make that be a wet blanket of excitement. But cryptocurrency has been fraudulent. It's been. The SCC's been cracking down in the U.S., in the news. Lieber's falling apart, although, I called that separately, but, (laughing) it had nothing to do with that Lieber. It was more of Facebook, but. Telegram. We were talking about that, others. People are getting handcuffed on this stuff. They're really kind of clamping down. But, overseas in Asia, it's still an unregulated, seems to be (mumbles) kind of market. Your advice to clients was to shy away, be careful? >> My advice to clients is as follows. First of all, Blockchain and cryptocurrency are not the same thing. Right? Cryptocurrency is a use case coming out of Blockchain technology. I think that in the United States, the best way to think about it is to understand that the term cryptocurrency, from a regulatory perspective, is actually a misnomer. It's not a currency. It's property. Right? It's an asset. It's digital assets. So, if you think about it the same way that we think of shares in a company, it's actually much easier to become compliant, because, then you can understand that it's going to be subject to U.S. securities laws, just like other securities. It's going to be taxed, just like securities are taxed, which means that it's going to be subject to long and short-term capitol gain, and it's also going to be subject to the other regulatory restrictions that are adherent to securities, both on the federal and state level. >> It's interesting that you mentioned security. The word security. If you look back at the ICO craze, internet coin offerings, crypto offerings, whatever you call it, The people who got whacked the most were the ones that went out as a utility tokens. Not to get nerdy on this, but utility and security are two types of tokens. The ones that went out and raised money as the utility token had no product, raised money using the utility that doesn't exist. That's essentially a security. And, so, no wonder why they're getting slapped. >> They're securities. Look, Bitcoin, different story, because Bitcoin is the closest to being I guess, what we could consider to be truly decentralized, right? And the regulatory climate around Bitcoin is a little bit different from what I'm talking about, with respects to securities laws. Although, from a tax perspective, it's the same. It's taxed as property. It's not taxed the way that foreign currency is taxed. But ultimately, yeah. You had a lot of cowboys who went out, and made a lot of money, and were just breaking the law, and now everyone is shocked when they see what's going on with this cease-and-desist order from the SCC against Telegram, and these other issues. But, none of it is particularly surprising because at the end of the day we have regulations in place, we have a regulatory regime, and most people just chose to ignore it. >> It's interesting how fast the SCC modernized their thinking around this. They really. From a speed standpoint, all government agencies tend to be glacier speed kind of movement. They were pretty fast. I mean, they kind of huddled on this for a couple months and came out with direction. They've been proactive. I got to say. I was usually skeptical of most government organization. I don't think they well inform. In this case, I think the SCC did a good job. >> So, I think that the issue is as follows. You know, Crypto is a very very very small portion of what the SCC deals with, so, they actually paid an inordinate amount of attention to this, and, I think that they did it for a couple of reasons. One is because, you asked me in the beginning of this interview about regulations versus innovation. And, I don't think anyone wants to stifle innovation in America. It's a very interesting technology. It's very interesting ideas, right? No one wants that to go away and no one wants people to stop experimenting and stop dreaming bigger. At the same time, the other issue that we've seen now, especially, not only with the SCC, but with the IRS now getting involved, is the fact that even though this is something very very small, they are very concerned about where the technology could go in the future. The IRS is extremely concerned about erosion of the tax space. So, because of that, it makes a lot of sense for them to pay attention to this very very early on, nip this in the bud, and help guide it back into the right direction. >> I think that's a good balance. Great point. Innovation doesn't want to be stifled at all, absolutely. What's new and exciting for you? Share some personal or business updates in your world. What's going on? What's getting you excited these days, in the field? >> What's getting me excited these days? Well, I have to tell you that one thing that actually has gotten me excited these days is the fact that the Blockchain and cryptocurrency industries have grown up, substantially. And, now we're able to take a look at those industries in tandem with the tech industry at large, because they seem to sort of be going off in a different direction, and now we're taking a look at it, and now you can really see sort of where the areas that things are going to get exciting. I look at my clients and I see the things that they're doing and I'm always excited for them, and I'm always interested to see what new things that they'll innovate, because, again, I'm not a technologist. So, for me, that's a lot of fun. And, in addition to that, I think that other areas are extremely exciting as well. I'm a big fan of Acronis. I'm a big fan of cyber protection issues, data protection, data regulation. I think something that's really interesting in the world of data regulation, that actually has come out of the Blockchain community, in a way, is the notion of data as a personal right, as personal property. So, one of the big things is the idea that now that we've seen these massive data breaches with Facebook and 23andME, and the way that big government, big companies, are using individuals' datas, the idea that if data were to be personal property, it would be used very very differently. And technologists who are using Blockchain technology say that Blockchain technology might actually be able to make that happen. Because if you could have a decentralized Facebook, let's say, people could own their own data and then use that data as they want to and be compensated for it. So, that's really interesting, right-- Yeah, but, if you're just going to use the product, they might as well own their data, right? >> Katya: Exactly. >> Katya, thanks for coming on theCUBE. Thanks for the insight. Great, compelling narrative. Thanks for sharing. >> Sure, thank you very much. >> Appreciate it. I'm John Furrier here on theCUBE, Miami Beach, at the Fontainebleau hotel for Acronis' Global Cyber Summit 2019. We'll be back with more coverage after this short break.

>> Live, from Washington, D.C., it's theCUBE, covering AWS Public Sector Summit 2018, brought to you by Amazon Web Services and it's ecosystem partners. >> Welcome back to the District, everybody. This is theCUBE, the leader in live tech coverage. My name is Dave Vellante, and I'm here with my cohost, Stu Miniman. Day two of the AWS Public Sector Summit. We saw Teresa Carlson yesterday, a lot of keynotes, we saw the CIA. Todd Osbourne is here, he's the Vice President of Alliances of New Relic, a company that's been smokin' hot, six billion dollar market cap, and really is takin' the world by storm. He's joined by Scott Drossos, who's the president of Infiniti, who is a public sector consultancy. Gentleman, welcome to theCUBE, good to see you. >> Thanks, good to be here. >> Thank you. >> So Todd, you heard me, I mean really, everybody's talkin' about New Relic, stocks been smoking, I read an article recently, "it's got to cool off, it's too hot." So why so hot, what's goin' on, why the appeal of New Relic? >> Well as our CEO Lew Cirne has been on a couple of times talking to you about, every business is becoming a software business in the public sector, which we're here representing at the Amazon public sector event. It's the same thing with agencies and all the digital experiences that are happening across all the government and whether it's education, higher ed, healthcare, any of the DOD or other agencies, there's always some sort of digital experience that folks are having with the citizens that all the agencies and organizations are tryin' to support, and New Relic's right there, right there at the forefront of every one of those digital experiences. Everyone's running software that's modern software, or shifting to that with modern software running microservices, running containers, shifting to the cloud, and anyone deploying that type of software needs to have New Relic as part of their engagement to monitor what's happening at the citizen or the customer level, what's going on in the back end, on through the infrastructure. And New Relic, whether it's a large enterprise that we're out there, like Dunkin' Donuts or Dominos, monitoring their applications and their eCommerce sites, or it's an agency in the public sector space, you got to have New Relic as part of those engagements. >> So Scott, when AWS services first came out, 2006 timeframe, we looked at it, we said okay, this is the future, but as much as it potentially simplifies lives, it brings a lot of new complexities. So you know, Stu and I used to talk about, look, the AWS is awesome, we're big fans, but the ecosystem has to grow. Consultancies have to come out of the woodworks, and help customers really, adopt. So that's really exactly what's happened. I presume that's how Infiniti got started, maybe you could tell us a little bit about the company, and what your value is. >> Sure, thanks Dave, so Infiniti is a 15 year old company. We're originally founded in public sector IT consulting, and we realized several years ago that the world was changing and that we needed to make the shift from IT consulting to cloud services. And so we dove in headfirst with AWS, and we really tried to move to the top of the curve very quickly, and so we were a little bit ahead of our market in public sector, being a public sector focused organization, but we felt it was important to get ahead of the market because now the market really is smokin' hot. But we thought it was important that if we're going to move into the cloud, we wanted to move to the top of the curve, and deal with things like DevOps, migrations, even machine learning, predictive analytics, so we kind of pride ourselves on having some of the largest public sector contracts in the US, even though we're, right now, predominantly California based, California focused. >> And what's your head count? >> We're about a hundred people. >> I mean this is the thing, we're seeing this trend toward a lot of, you know, smaller specialists, are really doing super. Why is that, or how are you able to differentiate from these big global SIs that have tens of thousands, hundreds of thousands of employees, vertical expertise, why are you guys winning? >> Well, first of all, I think we're able to be nimble and shift our focus pretty quickly to serve our market, to serve our customers, I think more successfully. But one of the thing's that's changed when the cloud arrived, is the cloud really let smaller organizations like us, act like big organizations, so we didn't need to go deploy millions of dollars of capital to go set up a massive data center, we can build an environment on the fly, as you know, in the cloud, and we can have access to world-class platform tools like New Relic, and we can help a customer, a large customer, perform just as well as if we were a large multi-billion dollar services organization. >> Todd, one of the interesting things to talk to customers about is their journey, and where are they, and the cloud migration and how do they do this, reinvent? A year ago or two I heard there were like seven or nine ARS to get there, anything from the full refactoring and building cool new stuff with server lists and things like that, to just the re-platforming. Lift and shift, is that a good thing, isn't that? Walk us through how New Relic with Infiniti, how are you involved in some of those migrations? There's no typical customer, but give us some examples. >> Yeah absolutely, so Infiniti, just like many of the integrators that we work with are all delivering services generally in a couple different areas. One is typically a cloud adoption, or cloud migration practice. So working with Amazon, how do we get more and more of customer's workloads shifted to the cloud? Usually those projects are also going on with something in the refactoring world or application space. Usually they're also developing or shifting to some sort of DevOps practice, and that's also part of our sweet spot, what's happening in the application there, whether it's on the cloud yet or not, we're going to provide that visibility to that. And then the third piece is, there's usually something else happening with that, as I was mentioning before, the customer experience or the citizen experience, so what's the browser impact, what's the user experience on that, what's the, if it's on a mobile app, what's the user experience on there? So while Infiniti's delivering all those services for the clients, New Relic's part of all those services, so our whole model that we're tryin' to do with all of our partners is embed ourselves into all of those services, such that we can help Infiniti be more successful, deliver those projects on time, and really resolve any issues that may come up during those migration issues. >> Scott, I'd love to hear especially, I know I hear DevOps talked about a lot in New Relic's customers, is it pervasive around the agencies that you work with and please do add some color there too. >> So in the public sector, it's a range of readiness, but we're seeing a real wave building, we believe. We worked with New Relic on a very large DevOps, SysOps, very complex cloud services engagement, largest higher education cloud services engagement in the US, and in that case, just like Todd was referencing, when we implemented the migration of the legacy platform to the cloud, first of all we had to do, make choices around refactory, host, rearchitect and so forth, but then when we're managing that environment, and there's millions of users hitting that environment, we need to be able to make sure that we can monitor the application to make sure the application's performing well, and if there's an issue, we want to see the line of code that's causing the problem as quickly as possible so we can keep the environment up all the time. Even though public sector may not be driven by the same financials as say, commercial, they still expect to be up all the time. They still want to take advantage of the benefits of the cloud and so New Relic allows us to do that, but then, as we're looking at the users interface with the application environment, New Relic's browser and mobile, they let us monitor how that experience is going, and we can proactively get at the performance issues there that the application may not tell us, if there's an issue there. And then, we can do things like test middleware with synthetics and make sure that the whole environment's working, and then obviously on the infrastructure side, it lets us make sure that we're optimizing the environment for our clients. One of the cool thing is, when you in the past, you'd set up an EC2 instance, you may not see that you don't need as much CPU as you're using, and so you can size that appropriately, and allow your environment to still run at a high performance, 100% up time, but give them the cost efficiencies at the same time. So we use New Relic across board to help support the entire environment. >> I wonder if we could talk about the marketplace a little bit, generally and then specifically, the public sector? So Scott, I presume you're obviously public sector focused, but are you exclusive to AWS, no, you probably do some other stuff, is that right, is that fair? >> Well we are both AWS and Azure Gold, in terms of partner, but we do more of our work in AWS for sure. >> Okay, so we'll come back to that. And New Relic, of course you're a software company, so you want everybody to love your software, so if there's a cloud that a customer wants to use, you want your software to be on that cloud, fair enough? >> Sure, and also on PRIM, I mean a lot of our... >> On PRIM too. >> A lot of our applications we monitor are still on PRIM, and there's a tremendous amount of value there regardless of... >> I would just add, Infiniti is a trusted advisor, we like to see ourselves as a trusted advisor, so we do feel like we have to be multi-cloud and have an objective perspective. >> And New Relic is presumably the same way, I mean let the customers decide, so, and it's a hybrid world, folks, despite what Amazon wants, it's a hybrid world, and they even recognize that. My question is, there's a lot of discussion in the industry about Amazon as an infrastructure service provider and their lead or relative lead on the competition. It's our sense that there's still a lead there, what's your sense? >> Well AWS is still the leading cloud services provider in the marketplace. They lead in innovation, they lead in disruption, they lead in market share, they lead in so many metrics, and because they have that lead, and that's where we started, we've benefited from that, and we've invested heavily, and in the same way, we see New Relic, when we made a choice around who we were going to pick as a platform to support our customers, we wanted something that was cloud-born, didn't come out of on-premise and get sort of bootstrapped into the cloud, and we wanted something that was a complete platform. So New Relic was really a clear choice for us. It was not a, we looked at the entire market when we made that choice. >> So the narrative in the market used to be, oh, security in the cloud, now we hear the CIA say hey, security on the worst day in Amazon's cloud is way better than I ever saw with client server. It was a pretty powerful statement, so let's assume security, people are relatively comfortable with security these days, even though I'm sure there's still some issues with regard to corporate edicts, and flexibility, and audits, let's put that aside. SLAs is another big one. People often criticize the public cloud SLAs, and cost, oh it's so expensive, I can do it cheaper on PRIM. Are those myths, are those realities, is it a it depends? What's your sense? >> I mean they're all, they're all factors that all of our customers are looking into. I would say what we're hearing a lot about right now, is how do we help provide more visibility to everything that's happening, so if you've got a developer now that has the ability to write code, put it on any cloud they want, spin up containers, spin down containers, go try out server-less base of architectures, they've got a lot of flexibility to do what they want. Government agencies, as well as customers, one of the things they're looking for is what's actually happening? Who's doing what? The governance piece is a big piece and I think New Relic plays right into that in terms of helping control all that. One of the things that we're, is one of our sweet spots, is as you move to DevOps and a truly microservices architecture, one of the whole values of that is speed, keeping up with how fast the whole market is moving, and customers and agencies, what they want out of that, is to deploy applications where they're releasing multiple times a day. You have to have visibility into everything you're doing across the stack to be successful in that, and that's really New Relic's sweet spot in terms of doing that. So providing that visibility, instrumenting the applications in the infrastructure before, and then helping provide visibility to things like governance, things that other, not necessarily our sweet spot, but other companies in the industry are doing things throughout the DevOps life cycle in the governance realm, things like that. So we're part of that ecosystem that's helping Amazon and the other cloud providers be very successful, helping customers and agencies be very successful deploying modern applications. >> It's all about that visibility. >> Scott, one of the things, when we look at any rollout of new technology or migration, once it's up and running, then what, so wondering how your firm's involved in, you know, is there re-training, is there things go on, once this is in place, now what? >> Well Infiniti, what we found in public sector is that everybody wants to take advantage of the cost efficiencies and the benefits, and most public sector isn't going to reduce cost, they're just going to want to re-use cost more wisely. So some of the confusion around cost savings is that they're getting way more for their dollar in the future state, and the choices you have to make around how fast you want to get to the cloud, and what you want to get out of the cloud when you're there, those all effect the equation in terms of what you're actually outcomes are immediately and in the long term. So we often see that in public sector, some of the legacy applications, they may not naturally or easily move all at once, and so you have to make a choice, are you going to do some refactory and architecting before you get it there, are you going to get in the cloud now, and then do it afterwards. Either way, there's benefits, but you have to make choices about what, how you want to approach it. >> Yeah, when you talk about, after I've rolled this in, I've heard from some customers, they're like, after I've gotten a cloud, I love it, but I had to dedicate an engineer for financial architecting because there's all of these things we need to do. Are we still in that state? And once again, do you help with some of the training as to, okay, or is it plugging them into the Amazon ecosystem and how do they get certified and ready to use all of this. >> So Infiniti works with clients differently, we work with some in a more episodic, lighter capacity, and we work with some in a wholistic capacity where we are that engine for them, where we provide them the complete cloud services team to do everything from migrations, architecture, DevOps, SysOps, SecOps, machine learning and all the way through. And so when we're providing those services, we're doing those kind of things, we're making sure that the next improvement is worked into the architecture. Last year, the customer I was referencing earlier, we did just under a hundred releases, so that's a hundred releases that we're using the New Relic platform and our architectural solution, our solution architects, rather, to make sure that it's faultless, that the process is efficient, it's effective, it's secure, and that we're driving efficiencies wherever possible. So it really depends on what the customer wants. If the customer wants to hone the environment, they may have to go a little slower to account for their learning, their learning curve, and we'll help them, if that's what they want, but if they want to go faster, and they want to take advantage of our expertise, we make that available, and we're happy to do that. >> We had the former CTO of the NSA on yesterday, who now works for Accenture, and we were asking about sort of, federal versus commercial, are we sort of still taking, learning lessons from commercial and bringing it to federal, or is it because federal has so much interesting technology around analytics, does it go the other way, and he said, "it's funny, when you're on the inside, you think all the innovation is goin' on outside, now that I'm on the outside I say wow, there's a lot of interesting stuff going on in federal." We heard Teresa yesterday talk about Aurora, she talked about the VM wear partnership, so things that were announced a while ago and actually being adopted in commercial coming in to federal. So how does it work? Is it more of a two-way than it used to be 20 years ago and I wonder if you could comment? >> Yeah, from Infiniti's perspective, absolutely. We work with clients to understand the problems and where they want to get to, and then we innovate with them. You're pretty dependent on the subject matter expertise of the organization. I think our customers like that, they like that they're part of the solution, but then they need the expertise that we bring to create the next generation solution. We just created something in the higher ed space called, a college called Architecture Builder, and it was after teaming with a specific college, and working in that space for a long time, but we wanted to create a way for colleges to rapidly implement a complete architecture integrated with all the different things, including New Relic, quickly and successfully, and that was done in partnership with them, so we did the work, but we couldn't have done it without them. >> Todd, New Relic obviously, you're a believer, you drink the Koolaid every day. Why New Relic relative to the competition? How do you guys differentiate? Pitch me. >> So it's really all about being successful in that modern software space, again, as I've mentioned, and so New Relic is the only SAS only platform, so we're not going to put anything on PRIM. We've got ourselves one of the biggest and best DevOps team that develops our software, we roll code everyday, and our customers get the benefit of us being a pure SAS platform. Part of that is scalability. What we can do at scale is unbelievable. There was a customer that was just talked about on the news today that I can't mention, but they just went from basically zero to $100 million on an application just in the past 90 days. It's one of our customers and we've scaled, we have no problem scaling with customers that are doing things like that, and again, the full platform value that we have now, looking at everything from the front end on the browser and mobile applications, through the application, which is core to us, it's where we provide that code-level visibility, the ability to trace across all the different microservices that are happening, connected back to that infrastructure. That full platform now provides such tremendous value up and down the stack, but not only to the technology leaders but also to those folks that are business leaders, chief marketing officers, heads of practices at the consultants we work with, all these folks are all getting value out of New Relic. >> What would that customer who should not be named say about the value contribution of New Relic to that scale? >> The value's unbelievable. That's a commercial customer, but their business is taking off like so many of our customer's businesses are at an unbelievable scale. They can't be hamstrung by having to do a server upgrade, or having to go back, working with a release of code from a couple weeks ago, they have to be as fast as possible 'cause their business is moving so fast, their agencies are moving so fast, they need a provider that's going to provide that visibility to that at the speed with which they're moving. >> Awesome so, you got one more? >> No, we've got to run. >> Yeah, we've got to go. So this is the last question, so impressions of AWS Public Sector Summit? I presume you guys, like we did, had to register yesterday. There were some logistic issues, but other than that, maybe you could give us your last word on the summit? >> Well Infiniti is very committed to public sector, so we really enjoy coming to the Public Sector Summit. It's great to connect with our partners, like New Relic and others, and it's great to see the latest innovations coming out from AWS. >> Yeah and I've been to, I don't know, 10 or so summits around the world so far this year. It is unbelievable the excitement and the amount of people that are now excited about what's happening in the clouded option world, and Amazon's piece in that, and what's happening here in D.C. this week is no exception. >> I would second that. It's been a while since I've been at summits. Stu, you go all the time, and they are just exploding and growing, and this is one of the best that's out there. So thanks guys, for comin' on theCUBE, we really appreciate it. >> Thanks very much. >> Thank you for the opportunity. >> You're welcome. Alright, keep it right there everybody, Stu and I will be back with our next guest after this short break. John Furrier's here, you're watchin' theCUBE live, from AWS Public Sector Summit. We'll be right back. (upbeat music)

(upbeat instrumental music) >> Narrator: Live from Las Vegas, it's the Cube. Covering AWS re:Invent 2017, presented by AWS, Intel, and our ecosystem of partners. >> Hey, welcome back everyone. This is the Cube, live here in Las Vegas for AWS re:Invent 2017. I'm John Furrier, the cohost of the cube. My cohost, Keith Townsend, here for our fifth year in a row, covering the thunderous growth of Amazon Web Services as they continue to not only nail the developers and the start ups, but continue to win the enterprise. Our next guest, Lew Cirne, who's the founder and CEO of publicly held New Relic, a very successful startup, one of the most admired places to work in the Bay area, and in tech. Lew, great to have you on the Cube, welcome. >> Hi. >> John: Hi, first time. >> I know, so great to be here. I can't believe it's the firs time. I've been such a fan for a long time. >> Now you're an alumni, the benefits. >> Here I am. >> All the benefits of being an alumni, all those season tickets to all of our games. I gotta, I want to just share something with the audience out there. You're the only public CEO that I know that's been on the Cube that writes software, has a GitHub account, and manages a publicly held company. So that's a unique thing and I want to just say it's awesome. >> It's a full plate, that's for sure, but I'm the luckiest guy in the world because I've always loved building software since my first computer I got in the Christmas of 82, what's that, 35 years ago now, and, and so, what an exciting time to be someone who's passionate about software and technology. Look what's going on in the cloud, and so I've been fortunate enough to start this company that's participating in this revolution in technology, so it's great. >> You guys are always in the cutting edge. I noticed, you guys get your hands dirty, you get in there, you're coding away, but you guys are very successful in a very important area right now, which is instrumentation of data. >> Lew: Absolutely. >> In applications, so I really want to get your, kind of your thoughts on the landscape. We were talking about on our intro analysis, that we're seeing a renaissance in software development, where with open source growing exponentially, a new software methodology's coming out, where there's just so much going on. Multiple databases within one app, IOT, so a new kind of thinking is evolving. What's your take on that? >> Well I think it's really important to understand why all of this is happening. So why are there 40,000 people here in Las Vegas for re:Invent? Why are people consuming the cloud at just a dizzying pace? It's not just for the sake of cloud computing, it's because there's this business imperative to compete on software, so if you look at where software was 15, 20 years ago, software was a tool to reduce costs and automate things in the back end. Now your software's your business. If you are a large global bank, your app has more to do with your customers' experience and satisfaction than the branch because nobody walks through a branch anymore, so now the best software developing bank is going to be the winner, so if you think about that's what's going on and that's why they're adopting new technologies to move faster, so where do we fit in? If you're going to compete on your software, and by competing you have to build the best stuff, the fastest as possible, so you have to get to market quickly, and that means you've got to change a lot. Anytime you're changing something rapidly, that introduces risk. New Relic de-risks all of that rapid movement by instrumentation, by measuring everything in the software. Those measurements help you move faster with confidence. >> And also I would say that you, not only does that create risks, but new software creates risks, so I'm doing server-less, I want to try the new service because it could A, add value, AKA Lamda or whatever, so a new, maybe time out is needed, so all kinds of new things or elements are going on inside the software stacks. >> Yes, and more complex than ever before, right, so you introduce things like Lambda server-less function computing, call it what you will, and you integrate it with, you know, microservice architecture, and so instead of one monolith, you might have hundreds, or even some of our customers have thousands of independent services, all supposed to be working in flawless concert in order to deliver a great customer experience. How on earth do you make sense of whether that's all working? Well it involves collecting an enormous amount of data about everything that's going on in real time, and then applying intelligence to that data using what we call at New Relic applied intelligence to tell our customers in real time, here's what's working well, and more importantly, here's what's going to be a problem if you don't take immediate action. And that's, you know, that's a hard problem to solve. We think we're the best at doing it. >> And that's critical too, because like you said, if it crashes, or there's some sort of breach hold that comes out there, all the stuff is at risk. >> And like, customers have just incredibly high expectations that only get higher and higher every day. Like, you know, one of our customers is Domino's and it's an amazing thing where you pre-order your pizza and you can see, second by second, how your order is doing, right? They put your pizza in the oven, then they took the pizza out of the oven, and I see that in phone, and that gives, that's that feedback that's valuable to me, right? So long as it's working, right? >> John: I'm hungry now. >> So we, we've ravished this word digital transformation all the time. >> Oh yeah, it's a little overused, but. >> It is a little overused. But melding that physical world with cold. I love it that you're a developer. First off, what's your favorite language? >> Oh geez, it really depends on the project. I'm really getting into, I love React right now on the front end. I'll still do Java when it needs some heavy lifting, Ruby for rapid prototyping. It really depends on the task at hand. >> So the value of reducing friction from a developer seeing a problem, needing to solve that problem, and getting the resources needed to solve a problem, AWS does a wonderful job of saying, you know what, developer, give me your credit card, we'll give you all the tools you need. Where is the first stumbling block because this is new capability, net new over the past few years? Where's the first set of stumbling blocks when developers reduce friction, get to that first level contact with the branch manager of the pizza store, where does it fall apart and New Relic comes in to help? >> Look, how many times have you ever had a developer or a tech or someone that works on my machine, right? >> Exactly, worked on my laptop. I don't know why it didn't deploy well in production, it worked perfectly fine on my laptop. >> I really, I started thinking about and solving this problem 20 years ago now. The notion of less instrument Java code because I was frustrated with the stuff that worked on my laptop. I couldn't understand why it didn't work when a customer used it, and everything prior to the customer using the software is nothing but sunk cost. There is no value in the software you're building until it runs in production. How well it runs in production is what determines the fate of the application. And that's where New Relic comes in, is we feel like alright, let me take you back to the ancient days of like turn of the century, 2000, nothing went to production without QA. Now nothing goes to production without instrumentation. >> Yeah, but now Agile's there, so the old days was a crab. You built a software product, but you didn't know if it was going to work until it went into production with QA. Now you're shipping stuff fast, so it's still. You've got that dev off mindset, but it's in QA. >> One of our customers, Airbnb, deploys more than a thousand times a day. And this is not a small, low load site. I mean like every deploy has to work, otherwise millions of people are impacted and it's the whole business, and it's a big business, so you're talking about a pace of innovation and change that cannot be managed with a traditional QA cycle. I've, of course testing's important, but instrumentation's more important than that. >> Lew, I want to ask you an important question because I asked Andy Jassie this last Monday when I had a one on one with him. A lot of people that are entering ecosystem for Amazon is new, that are new, or considerably, Amazon's the big, they're fearful, it's always going to be that way. He highlighted your company, New Relic, and said they're an amazing part, they do extremely well, even though they introduced Cloud Watch, which because some customers just wanted it, they have monitoring, but you guys are so much better. I said that, but if he implied it, obviously you're doing well. So the successful participation of the ecosystem is there. You can be successful in the Amazon ecosystem. >> Absolutely, it's a great partnership. >> So what's this formula for a new entry coming in or someone who's here that needs to find some white space? How do you read the tea leaves to know where not to play and where to play? >> You know, it just comes down to the fundamental good thought process you use when you're thinking about approaching your customer too. Don't think about what's in it for me, the Amazon partner. What's in it for Amazon? How do you make them more successful? And so when I imagine myself as Andy, who is like, what an incredible job he's done, but what Andy, what's top mind of Andy is how do I get more customers consuming more of Amazon faster, right? All of Amazon, all of Amazon's web services, and so we solve a problem for Andy and his team. We help our customers consume Amazon faster because we give them the confidence to consume more and move faster, and there's data to prove it. When Amazon asks their customers that aren't yet New Relic customers how much they're consuming and how fast, they get a slower rate of adoption than they do for the cohort that uses New Relic, and so it's in our mutual interest to go to market together because we help them consume more, and so I. >> John: Build a good product. >> Build a good product. >> John: Customer value. >> Think about how you help your partner be successful. Talk in that language, don't talk in language. >> Alright, so personal question. So you and I, pretend we're sitting here, having a beer, you're playing the guitar. >> A little light. >> I'm singing some tunes and Keith's our friend. He says I'm in trouble, I'm a CIO. I've got a transformation project. I don't know what to do. Which cloud do I use? How do I become data driven? Guys, help me out. Lew, what do you say? >> I say first of all, you have an instrumentation strategy. Everything, if you're a CIO in a large organization, you don't have one, two, three, or four projects. You have dozens, if not hundreds, sometimes thousands of applications and services that are all running, and you've got, I haven't met a CIO that doesn't say they've got too many monitoring tools. So you need an instrumentation strategy. Nothing should run in production without instrumentation. That's not just the service light stuff that runs on EC2, it's also every click that runs. You know, when Dunkin Donuts, which has been a longtime customer of ours, and they run in the Amazon Cloud, you know when you pre-order that doughnut, we track the tap, how long it takes from the phone all the way through the cloud services, all that's fully instrumented, so if you're a CIO, you say I can't be tactical with instrumentation. If I'm going to move fast and compete at my software, nothing should run in production without education. >> John: That's native. >> That's right. >> Foundational. >> Foundational. It's a core requirement to run in production if you're going to move at any level of speed, so establish that strategy, and then we think, we offer the best instrumentation, certainly the best value, the most ubiquitous, the easiest to use, the most comprehensive, and then we make the most sense of it, but you could pick another, you know you could pick another strategy. Some people do the heavy lifting of manually instrumenting all their code. We just don't think that's a good use of your developer time, so we automatically do that for you, but have a strategy and then execute to it. >> Awesome. Lew, congratulations on a blowout quarter. I won't even get you to comment on it, just say that you guys had a great quarter, stocks at an all time high, all because you guys are doing a great product. Congratulations and great to have you on the Cube. >> We're delighted to be here. I've honestly, I've been a longtime fan. It means a lot that you could have me on, and we really enjoy partnering with Amazon, and what a great show. >> Yeah, super successful ecosystem partner, one of the best, New Relic, based out of San Francisco, here with the founder and CEO, also musician, writes code, gets down and dirty, runs a publicly held company. He's Superman. Lew, thanks for coming on the Cube. More live data and action here on the Cube after this short break, stay with us. (upbeat instrumental music)

>> Announcer: Please welcome Vice President of Worldwide Marketing, Amazon Web Services, Ariel Kelman. (applause) (techno music) >> Good afternoon, everyone. Thank you for coming. I hope you guys are having a great day here. It is my pleasure to introduce to come up on stage here, the CEO of Amazon Web Services, Andy Jassy. (applause) (techno music) >> Okay. Let's get started. I have a bunch of questions here for you, Andy. >> Just like one of our meetings, Ariel. >> Just like one of our meetings. So, I thought I'd start with a little bit of a state of the state on AWS. Can you give us your quick take? >> Yeah, well, first of all, thank you, everyone, for being here. We really appreciate it. We know how busy you guys are. So, hope you're having a good day. You know, the business is growing really quickly. In the last financials, we released, in Q four of '16, AWS is a 14 billion dollar revenue run rate business, growing 47% year over year. We have millions of active customers, and we consider an active customer as a non-Amazon entity that's used the platform in the last 30 days. And it's really a very broad, diverse customer set, in every imaginable size of customer and every imaginable vertical business segment. And I won't repeat all the customers that I know Werner went through earlier in the keynote, but here are just some of the more recent ones that you've seen, you know NELL is moving their their digital and their connected devices, meters, real estate to AWS. McDonalds is re-inventing their digital platform on top of AWS. FINRA is moving all in to AWS, yeah. You see at Reinvent, Workday announced AWS was its preferred cloud provider, and to start building on top of AWS further. Today, in press releases, you saw both Dunkin Donuts and Here, the geo-spatial map company announced they'd chosen AWS as their provider. You know and then I think if you look at our business, we have a really large non-US or global customer base and business that continues to expand very dramatically. And we're also aggressively increasing the number of geographic regions in which we have infrastructure. So last year in 2016, on top of the broad footprint we had, we added Korea, India, and Canada, and the UK. We've announced that we have regions coming, another one in China, in Ningxia, as well as in France, as well as in Sweden. So we're not close to being done expanding geographically. And then of course, we continue to iterate and innovate really quickly on behalf of all of you, of our customers. I mean, just last year alone, we launched what we considered over 1,000 significant services and features. So on average, our customers wake up every day and have three new capabilities they can choose to use or not use, but at their disposal. You've seen it already this year, if you look at Chime, which is our new unified communication service. It makes meetings much easier to conduct, be productive with. You saw Connect, which is our new global call center routing service. If you look even today, you look at Redshift Spectrum, which makes it easy to query all your data, not just locally on disk in your data warehouse but across all of S3, or DAX, which puts a cash in front of DynamoDB, we use the same interface, or all the new features in our machine learning services. We're not close to being done delivering and iterating on your behalf. And I think if you look at that collection of things, it's part of why, as Gartner looks out at the infrastructure space, they estimate the AWS is several times the size business of the next 14 providers combined. It's a pretty significant market segment leadership position. >> You talked a lot about adopts in there, a lot of customers moving to AWS, migrating large numbers of workloads, some going all in on AWS. And with that as kind of backdrop, do you still see a role for hybrid as being something that's important for customers? >> Yeah, it's funny. The quick answer is yes. I think the, you know, if you think about a few years ago, a lot of the rage was this debate about private cloud versus what people call public cloud. And we don't really see that debate very often anymore. I think relatively few companies have had success with private clouds, and most are pretty substantially moving in the direction of building on top of clouds like AWS. But, while you increasingly see more and more companies every month announcing that they're going all in to the cloud, we will see most enterprises operate in some form of hybrid mode for the next number of years. And I think in the early days of AWS and the cloud, I think people got confused about this, where they thought that they had to make this binary decision to either be all in on the public cloud and AWS or not at all. And of course that's not the case. It's not a binary decision. And what we know many of our enterprise customers want is they want to be able to run the data centers that they're not ready to retire yet as seamlessly as they can alongside of AWS. And it's why we've built a lot of the capabilities we've built the last several years. These are things like PPC, which is our virtual private cloud, which allows you to cordon off a portion of our network, deploy resources into it and connect to it through VPN or Direct Connect, which is a private connection between your data centers and our regions or our storage gateway, which is a virtual storage appliance, or Identity Federation, or a whole bunch of capabilities like that. But what we've seen, even though the vast majority of the big hybrid implementations today are built on top of AWS, as more and more of the mainstream enterprises are now at the point where they're really building substantial cloud adoption plans, they've come back to us and they've said, well, you know, actually you guys have made us make kind of a binary decision. And that's because the vast majority of the world is virtualized on top of VMWare. And because VMWare and AWS, prior to a few months ago, had really done nothing to try and make it easy to use the VMWare tools that people have been using for many years seamlessly with AWS, customers were having to make a binary choice. Either they stick with the VMWare tools they've used for a while but have a really tough time integrating with AWS, or they move to AWS and they have to leave behind the VMWare tools they've been using. And it really was the impetus for VMWare and AWS to have a number of deep conversations about it, which led to the announcement we made late last fall of VMWare and AWS, which is going to allow customers who have been using the VMWare tools to manage their infrastructure for a long time to seamlessly be able to run those on top of AWS. And they get to do so as they move workloads back and forth and they evolve their hybrid implementation without having to buy any new hardware, which is a big deal for companies. Very few companies are looking to find ways to buy more hardware these days. And customers have been very excited about this prospect. We've announced that it's going to be ready in the middle of this year. You see companies like Amadeus and Merck and Western Digital and the state of Louisiana, a number of others, we've a very large, private beta and preview happening right now. And people are pretty excited about that prospect. So we will allow customers to run in the mode that they want to run, and I think you'll see a huge transition over the next five to 10 years. >> So in addition to hybrid, another question we get a lot from enterprises around the concept of lock-in and how they should think about their relationship with the vendor and how they should think about whether to spread the workloads across multiple infrastructure providers. How do you think about that? >> Well, it's a question we get a lot. And Oracle has sure made people care about that issue. You know, I think people are very sensitive about being locked in, given the experience that they've had over the last 10 to 15 years. And I think the reality is when you look at the cloud, it really is nothing like being locked into something like Oracle. The APIs look pretty similar between the various providers. We build an open standard, it's like Linux and MySQL and Postgres. All the migration tools that we build allow you to migrate in or out of AWS. It's up to customers based on how they want to run their workload. So it is much easier to move away from something like the cloud than it is from some of the old software services that has created some of this phobia. But I think when you look at most CIOs, enterprise CIOs particularly, as they think about moving to the cloud, many of them started off thinking that they, you know, very well might split their workloads across multiple cloud providers. And I think when push comes to shove, very few decide to do so. Most predominately pick an infrastructure provider to run their workloads. And the reason that they don't split it across, you know, pretty evenly across clouds is a few reasons. Number one, if you do so, you have to standardize in the lowest common denominator. And these platforms are in radically different stages at this point. And if you look at something like AWS, it has a lot more functionality than anybody else by a large margin. And we're also iterating more quickly than you'll find from the other providers. And most folks don't want to tie the hands of their developers behind their backs in the name of having the ability of splitting it across multiple clouds, cause they actually are, in most of their spaces, competitive, and they have a lot of ideas that they want to actually build and invent on behalf of their customers. So, you know, they don't want to actually limit their functionality. It turns out the second reason is that they don't want to force their development teams to have to learn multiple platforms. And most development teams, if any of you have managed multiple stacks across different technologies, and many of us have had that experience, it's a pain in the butt. And trying to make a shift from what you've been doing for the last 30 years on premises to the cloud is hard enough. But then forcing teams to have to get good at running across two or three platforms is something most teams don't relish, and it's wasteful of people's time, it's wasteful of natural resources. That's the second thing. And then the third reason is that you effectively diminish your buying power because all of these cloud providers have volume discounts, and then you're splitting what you buy across multiple providers, which gives you a lower amount you buy from everybody at a worse price. So when most CIOs and enterprises look at this carefully, they don't actually end up splitting it relatively evenly. They predominately pick a cloud provider. Some will just pick one. Others will pick one and then do a little bit with a second, just so they know they can run with a second provider, in case that relationship with the one they choose to predominately run with goes sideways in some fashion. But when you really look at it, CIOs are not making that decision to split it up relatively evenly because it makes their development teams much less capable and much less agile. >> Okay, let's shift gears a little bit, talk about a subject that's on the minds of not just enterprises but startups and government organizations and pretty much every organization we talk to. And that's AI and machine learning. Reinvent, we introduced our Amazon AI services and just this morning Werner announced the general availability of Amazon Lex. So where are we overall on machine learning? >> Well it's a hugely exciting opportunity for customers, and I think, we believe it's exciting for us as well. And it's still in the relatively early stages, if you look at how people are using it, but it's something that we passionately believe is going to make a huge difference in the world and a huge difference with customers, and that we're investing a pretty gigantic amount of resource and capability for our customers. And I think the way that we think about, at a high level, the machine learning and deep learning spaces are, you know, there's kind of three macro layers of the stack. I think at that bottom layer, it's generally for the expert machine learning practitioners, of which there are relatively few in the world. It's a scarce resource relative to what I think will be the case in five, 10 years from now. And these are folks who are comfortable working with deep learning engines, know how to build models, know how to tune those models, know how to do inference, know how to get that data from the models into production apps. And for that group of people, if you look at the vast majority of machine learning and deep learning that's being done in the cloud today, it's being done on top of AWS, are P2 instances, which are optimized for deep learning and our deep learning AMIs, that package, effectively the deep learning engines and libraries inside those AMIs. And you see companies like Netflix, Nvidia, and Pinterest and Stanford and a whole bunch of others that are doing significant amounts of machine learning on top of those optimized instances for machine learning and the deep learning AMIs. And I think that you can expect, over time, that we'll continue to build additional capabilities and tools for those expert practitioners. I think we will support and do support every single one of the deep learning engines on top of AWS, and we have a significant amount of those workloads with all those engines running on top of AWS today. We also are making, I would say, a disproportionate investment of our own resources and the MXNet community just because if you look at running deep learning models once you get beyond a few GPUs, it's pretty difficult to have those scale as you get into the hundreds of GPUs. And most of the deep learning engines don't scale very well horizontally. And so what we've found through a lot of extensive testing, cause remember, Amazon has thousands of deep learning experts inside the company that have built very sophisticated deep learning capabilities, like the ones you see in Alexa, we have found that MXNet scales the best and almost linearly, as we continue to add nodes, as we continue to horizontally scale. So we have a lot of investment at that bottom layer of the stack. Now, if you think about most companies with developers, it's still largely inaccessible to them to do the type of machine learning and deep learning that they'd really like to do. And that's because the tools, I think, are still too primitive. And there's a number of services out there, we built one ourselves in Amazon Machine Learning that we have a lot of customers use, and yet I would argue that all of those services, including our own, are still more difficult than they should be for everyday developers to be able to build machine learning and access machine learning and deep learning. And if you look at the history of what AWS has done, in every part of our business, and a lot of what's driven us, is trying to democratize technologies that were really only available and accessible before to a select, small number of companies. And so we're doing a lot of work at what I would call that middle layer of the stack to get rid of a lot of the muck associated with having to do, you know, building the models, tuning the models, doing the inference, figuring how to get the data into production apps, a lot of those capabilities at that middle layer that we think are really essential to allow deep learning and machine learning to reach its full potential. And then at the top layer of the stack, we think of those as solutions. And those are things like, pass me an image and I'll tell you what that image is, or show me this face, does it match faces in this group of faces, or pass me a string of text and I'll give you an mpg file, or give me some words and what your intent is and then I'll be able to return answers that allow people to build conversational apps like the Lex technology. And we have a whole bunch of other services coming in that area, atop of Lex and Polly and Recognition, and you can imagine some of those that we've had to use in Amazon over the years that we'll continue to make available for you, our customers. So very significant level of investment at all three layers of that stack. We think it's relatively early days in the space but have a lot of passion and excitement for that. >> Okay, now for ML and AI, we're seeing customers wanting to load in tons of data, both to train the models and to actually process data once they've built their models. And then outside of ML and AI, we're seeing just as much demand to move in data for analytics and traditional workloads. So as people are looking to move more and more data to the cloud, how are we thinking about making it easier to get data in? >> It's a great question. And I think it's actually an often overlooked question because a lot of what gets attention with customers is all the really interesting services that allow you to do everything from compute and storage and database and messaging and analytics and machine learning and AI. But at the end of the day, if you have a significant amount of data already somewhere else, you have to get it into the cloud to be able to take advantage of all these capabilities that you don't have on premises. And so we have spent a disproportionate amount of focus over the last few years trying to build capabilities for our customers to make this easier. And we have a set of capabilities that really is not close to matched anywhere else, in part because we have so many customers who are asking for help in this area that it's, you know, that's really what drives what we build. So of course, you could use the good old-fashioned wire to send data over the internet. Increasingly, we find customers that are trying to move large amounts of data into S3, is using our S3 transfer acceleration service, which basically uses our points of presence, or POPs, all over the world to expedite delivery into S3. You know, a few years ago, we were talking to a number of companies that were looking to make big shifts to the cloud, and they said, well, I need to move lots of data that just isn't viable for me to move it over the wire, given the connection we can assign to it. It's why we built Snowball. And so we launched Snowball a couple years ago, which is really, it's a 50 terabyte appliance that is encrypted, the data's encrypted three different ways, and you ingest the data from your data center into Snowball, it has a Kindle connected to it, it allows you to, you know, that makes sure that you send it to the right place, and you can also track the progress of your high-speed ingestion into our data centers. And when we first launched Snowball, we launched it at Reinvent a couple years ago, I could not believe that we were going to order as many Snowballs to start with as the team wanted to order. And in fact, I reproached the team and I said, this is way too much, why don't we first see if people actually use any of these Snowballs. And so the team thankfully didn't listen very carefully to that, and they really only pared back a little bit. And then it turned out that we, almost from the get-go, had ordered 10X too few. And so this has been something that people have used in a very broad, pervasive way all over the world. And last year, at the beginning of the year, as we were asking people what else they would like us to build in Snowball, customers told us a few things that were pretty interesting to us. First, one that wasn't that surprising was they said, well, it would be great if they were bigger, you know, if instead of 50 terabytes it was more data I could store on each device. Then they said, you know, one of the problems is when I load the data onto a Snowball and send it to you, I have to still keep my local copy on premises until it's ingested, cause I can't risk losing that data. So they said it would be great if you could find a way to provide clustering, so that I don't have to keep that copy on premises. That was pretty interesting. And then they said, you know, there's some of that data that I'd actually like to be loading synchronously to S3, and then, or some things back from S3 to that data that I may want to compare against. That was interesting, having that endpoint. And then they said, well, we'd really love it if there was some compute on those Snowballs so I can do analytics on some relatively short-term signals that I want to take action on right away. Those were really the pieces of feedback that informed Snowball Edge, which is the next version of Snowball that we launched, announced at Reinvent this past November. So it has, it's a hundred-terabyte appliance, still the same level of encryption, and it has clustering so that you don't have to keep that copy of the data local. It allows you to have an endpoint to S3 to synchronously load data back and forth, and then it has a compute inside of it. And so it allows customers to use these on premises. I'll give you a good example. GE is using these for their wind turbines. And they collect all kinds of data from those turbines, but there's certain short-term signals they want to do analytics on in as close to real time as they can, and take action on those. And so they use that compute to do the analytics and then when they fill up that Snowball Edge, they detach it and send it back to AWS to do broad-scale analytics in the cloud and then just start using an additional Snowball Edge to capture that short-term data and be able to do those analytics. So Snowball Edge is, you know, we just launched it a couple months ago, again, amazed at the type of response, how many customers are starting to deploy those all over the place. I think if you have exabytes of data that you need to move, it's not so easy. An exabyte of data, if you wanted to move from on premises to AWS, would require 10,000 Snowball Edges. Those customers don't want to really manage a fleet of 10,000 Snowball Edges if they don't have to. And so, we tried to figure out how to solve that problem, and it's why we launched Snowmobile back at Reinvent in November, which effectively, it's a hundred-petabyte container on a 45-foot trailer that we will take a truck and bring out to your facility. It comes with its own power and its own network fiber that we plug in to your data center. And if you want to move an exabyte of data over a 10 gigabit per second connection, it would take you 26 years. But using 10 Snowmobiles, it would take you six months. So really different level of scale. And you'd be surprised how many companies have exabytes of data at this point that they want to move to the cloud to get all those analytics and machine learning capabilities running on top of them. Then for streaming data, as we have more and more companies that are doing real-time analytics of streaming data, we have Kinesis, where we built something called the Kinesis Firehose that makes it really simple to stream all your real-time data. We have a storage gateway for companies that want to keep certain data hot, locally, and then asynchronously be loading the rest of their data to AWS to be able to use in different formats, should they need it as backup or should they choose to make a transition. So it's a very broad set of storage capabilities. And then of course, if you've moved a lot of data into the cloud or into anything, you realize that one of the hardest parts that people often leave to the end is ETL. And so we have announced an ETL service called Glue, which we announced at Reinvent, which is going to make it much easier to move your data, be able to find your data and map your data to different locations and do ETL, which of course is hugely important as you're moving large amounts. >> So we've talked a lot about moving things to the cloud, moving applications, moving data. But let's shift gears a little bit and talk about something not on the cloud, connected devices. >> Yeah. >> Where do they fit in and how do you think about edge? >> Well, you know, I've been working on AWS since the start of AWS, and we've been in the market for a little over 11 years at this point. And we have encountered, as I'm sure all of you have, many buzzwords. And of all the buzzwords that everybody has talked about, I think I can make a pretty strong argument that the one that has delivered fastest on its promise has been IOT and connected devices. Just amazing to me how much is happening at the edge today and how fast that's changing with device manufacturers. And I think that if you look out 10 years from now, when you talk about hybrid, I think most companies, majority on premise piece of hybrid will not be servers, it will be connected devices. There are going to be billions of devices all over the place, in your home, in your office, in factories, in oil fields, in agricultural fields, on ships, in cars, in planes, everywhere. You're going to have these assets that sit at the edge that companies are going to want to be able to collect data on, do analytics on, and then take action. And if you think about it, most of these devices, by their very nature, have relatively little CPU and have relatively little disk, which makes the cloud disproportionately important for them to supplement them. It's why you see most of the big, successful IOT applications today are using AWS to supplement them. Illumina has hooked up their genome sequencing to AWS to do analytics, or you can look at Major League Baseball Statcast is an IOT application built on top of AWS, or John Deer has over 200,000 telematically enabled tractors that are collecting real-time planting conditions and information that they're doing analytics on and sending it back to farmers so they can figure out where and how to optimally plant. Tata Motors manages their truck fleet this way. Phillips has their smart lighting project. I mean, there're innumerable amounts of these IOT applications built on top of AWS where the cloud is supplementing the device's capability. But when you think about these becoming more mission-critical applications for companies, there are going to be certain functions and certain conditions by which they're not going to want to connect back to the cloud. They're not going to want to take the time for that round trip. They're not going to have connectivity in some cases to be able to make a round trip to the cloud. And what they really want is customers really want the same capabilities they have on AWS, with AWS IOT, but on the devices themselves. And if you've ever tried to develop on these embedded devices, it's not for mere mortals. It's pretty delicate and it's pretty scary and there's a lot of archaic protocols associated with it, pretty tough to do it all and to do it without taking down your application. And so what we did was we built something called Greengrass, and we announced it at Reinvent. And Greengrass is really like a software module that you can effectively have inside your device. And it allows developers to write lambda functions, it's got lambda inside of it, and it allows customers to write lambda functions, some of which they want to run in the cloud, some of which they want to run on the device itself through Greengrass. So they have a common programming model to build those functions, to take the signals they see and take the actions they want to take against that, which is really going to help, I think, across all these IOT devices to be able to be much more flexible and allow the devices and the analytics and the actions you take to be much smarter, more intelligent. It's also why we built Snowball Edge. Snowball Edge, if you think about it, is really a purpose-built Greengrass device. We have Greengrass, it's inside of the Snowball Edge, and you know, the GE wind turbine example is a good example of that. And so it's to us, I think it's the future of what the on-premises piece of hybrid's going to be. I think there're going to be billions of devices all over the place and people are going to want to interact with them with a common programming model like they use in AWS and the cloud, and we're continuing to invest very significantly to make that easier and easier for companies. >> We've talked about several feature directions. We talked about AI, machine learning, the edge. What are some of the other areas of investment that this group should care about? >> Well there's a lot. (laughs) That's not a suit question, Ariel. But there's a lot. I think, I'll name a few. I think first of all, as I alluded to earlier, we are not close to being done expanding geographically. I think virtually every tier-one country will have an AWS region over time. I think many of the emerging countries will as well. I think the database space is an area that is radically changing. It's happening at a faster pace than I think people sometimes realize. And I think it's good news for all of you. I think the database space over the last few decades has been a lonely place for customers. I think that they have felt particularly locked into companies that are expensive and proprietary and have high degrees of lock-in and aren't so customer-friendly. And I think customers are sick of it. And we have a relational database service that we launched many years ago and has many flavors that you can run. You can run MySQL, you can run Postgres, you can run MariaDB, you can run SQLServer, you can run Oracle. And what a lot of our customers kept saying to us was, could you please figure out a way to have a database capability that has the performance characteristics of the commercial-grade databases but the customer-friendly and pricing model of the more open engines like the MySQL and Postgres and MariaDB. What you do on your own, we do a lot of it at Amazon, but it's hard, I mean, it takes a lot of work and a lot of tuning. And our customers really wanted us to solve that problem for them. And it's why we spent several years building Aurora, which is our own database engine that we built, but that's fully compatible with MySQL and with Postgres. It's at least as fault tolerant and durable and performant as the commercial-grade databases, but it's a tenth of the cost of those. And it's also nice because if it turns out that you use Aurora and you decide for whatever reason you don't want to use Aurora anymore, because it's fully compatible with MySQL and Postgres, you just dump it to the community versions of those, and off you are. So there's really hardly any transition there. So that is the fastest-growing service in the history of AWS. I'm amazed at how quickly it's grown. I think you may have heard earlier, we've had 23,000 database migrations just in the last year or so. There's a lot of pent-up demand to have database freedom. And we're here to help you have it. You know, I think on the analytic side, it's just never been easier and less expensive to collect, store, analyze, and share data than it is today. Part of that has to do with the economics of the cloud. But a lot of it has to do with the really broad analytics capability that we provide you. And it's a much broader capability than you'll find elsewhere. And you know, you can manage Hadoop and Spark and Presto and Hive and Pig and Yarn on top of AWS, or we have a managed elastic search service, and you know, of course we have a very high scale, very high performing data warehouse in Redshift, that just got even more performant with Spectrum, which now can query across all of your S3 data, and of course you have Athena, where you can query S3 directly. We have a service that allows you to do real-time analytics of streaming data in Kinesis. We have a business intelligence service in QuickSight. We have a number of machine learning capabilities I talked about earlier. It's a very broad array. And what we find is that it's a new day in analytics for companies. A lot of the data that companies felt like they had to throw away before, either because it was too expensive to hold or they didn't really have the tools accessible to them to get the learning from that data, it's a totally different day today. And so we have a pretty big investment in that space, I mentioned Glue earlier to do ETL on all that data. We have a lot more coming in that space. I think compute, super interesting, you know, I think you will find, I think we will find that companies will use full instances for many, many years and we have, you know, more than double the number of instances than you'll find elsewhere in every imaginable shape and size. But I would also say that the trend we see is that more and more companies are using smaller units of compute, and it's why you see containers becoming so popular. We have a really big business in ECS. And we will continue to build out the capability there. We have companies really running virtually every type of container and orchestration and management service on top of AWS at this point. And then of course, a couple years ago, we pioneered the event-driven serverless capability in compute that we call Lambda, which I'm just again, blown away by how many customers are using that for everything, in every way. So I think the basic unit of compute is continuing to get smaller. I think that's really good for customers. I think the ability to be serverless is a very exciting proposition that we're continuing to to fulfill that vision that we laid out a couple years ago. And then, probably, the last thing I'd point out right now is, I think it's really interesting to see how the basic procurement of software is changing. In significant part driven by what we've been doing with our Marketplace. If you think about it, in the old world, if you were a company that was buying software, you'd have to go find bunch of the companies that you should consider, you'd have to have a lot of conversations, you'd have to talk to a lot of salespeople. Those companies, by the way, have to have a big sales team, an expensive marketing budget to go find those companies and then go sell those companies and then both companies engage in this long tap-dance around doing an agreement and the legal terms and the legal teams and it's just, the process is very arduous. Then after you buy it, you have to figure out how you're going to actually package it, how you're deploy to infrastructure and get it done, and it's just, I think in general, both consumers of software and sellers of software really don't like the process that's existed over the last few decades. And then you look at AWS Marketplace, and we have 35 hundred product listings in there from 12 hundred technology providers. If you look at the number of hours, that software that's been running EC2 just in the last month alone, it's several hundred million hours, EC2 hours, of that software being run on top of our Marketplace. And it's just completely changing how software is bought and procured. I think that if you talk to a lot of the big sellers of software, like Splunk or Trend Micro, there's a whole number of them, they'll tell you it totally changes their ability to be able to sell. You know, one of the things that really helped AWS in the early days and still continues to help us, is that we have a self-service model where we don't actually have to have a lot of people talk to every customer to get started. I think if you're a seller of software, that's very appealing, to allow people to find your software and be able to buy it. And if you're a consumer, to be able to buy it quickly, again, without the hassle of all those conversations and the overhead associated with that, very appealing. And I think it's why the marketplace has just exploded and taken off like it has. It's also really good, by the way, for systems integrators, who are often packaging things on top of that software to their clients. This makes it much easier to build kind of smaller catalogs of software products for their customers. I think when you layer on top of that the capabilities that we've announced to make it easier for SASS providers to meter and to do billing and to do identity is just, it's a very different world. And so I think that also is very exciting, both for companies and customers as well as software providers. >> We certainly touched on a lot here. And we have a lot going on, and you know, while we have customers asking us a lot about how they can use all these new services and new features, we also tend to get a lot of questions from customers on how we innovate so quickly, and they can think about applying some of those lessons learned to their own businesses. >> So you're asking how we're able to innovate quickly? >> Mmm hmm. >> I think there's a few things that have helped us, and it's different for every company. But some of these might be helpful. I'll point to a few. I think the first thing is, I think we disproportionately index on hiring builders. And we think of builders as people who are inventors, people who look at different customer experiences really critically, are honest about what's flawed about them, and then seek to reinvent them. And then people who understand that launch is the starting line and not the finish line. There's very little that any of us ever built that's a home run right out of the gate. And so most things that succeed take a lot of listening to customers and a lot of experimentation and a lot of iterating before you get to an equation that really works. So the first thing is who we hire. I think the second thing is how we organize. And we have, at Amazon, long tried to organize into as small and separable and autonomous teams as we can, that have all the resources in those teams to own their own destiny. And so for instance, the technologists and the product managers are part of the same team. And a lot of that is because we don't want the finger pointing that goes back and forth between the teams, and if they're on the same team, they focus all their energy on owning it together and understanding what customers need from them, spending a disproportionate amount of time with customers, and then they get to own their own roadmaps. One of the reasons we don't publish a 12 to 18 month roadmap is we want those teams to have the freedom, in talking to customers and listening to what you tell us matters, to re-prioritize if there are certain things that we assumed mattered more than it turns out it does. So, you know I think that the way that we organize is the second piece. I think a third piece is all of our teams get to use the same AWS building blocks that all of you get to use, which allow you to move much more quickly. And I think one of the least told stories about Amazon over the last five years, in part because people have gotten interested in AWS, is people have missed how fast our consumer business at Amazon has iterated. Look at the amount of invention in Amazon's consumer business. And they'll tell you that a big piece of that is their ability to use the AWS building blocks like they do. I think a fourth thing is many big companies, as they get larger, what starts to happen is what people call the institutional no, which is that leaders walk into meetings on new ideas looking to find ways to say no, and not because they're ill intended but just because they get more conservative or they have a lot on their plate or things are really managed very centrally, so it's hard to imagine adding more to what you're already doing. At Amazon, it's really the opposite, and in part because of the way we're organized in such a decoupled, decentralized fashion, and in part because it's just part of our DNA. When the leaders walk into a meeting, they are looking for ways to say yes. And we don't say yes to everything, we have a lot of proposals. But we say yes to a lot more than I think virtually any other company on the planet. And when we're having conversations with builders who are proposing new ideas, we're in a mode where we're trying to problem-solve with them to get to yes, which I think is really different. And then I think the last thing is that we have mechanisms inside the company that allow us to make fast decisions. And if you want a little bit more detail, you should read our founder and CEO Jeff Bezos's shareholder letter, which just was released. He talks about the fast decision-making that happens inside the company. It's really true. We make fast decisions and we're willing to fail. And you know, we sometimes talk about how we're working on several of our next biggest failures, and we hope that most of the things we're doing aren't going to fail, but we know, if you're going to push the envelope and if you're going to experiment at the rate that we're trying to experiment, to find more pillars that allow us to do more for customers and allow us to be more relevant, you are going to fail sometimes. And you have to accept that, and you have to have a way of evaluating people that recognizes the inputs, meaning the things that they actually delivered as opposed to the outputs, cause on new ventures, you don't know what the outputs are going to be, you don't know consumers or customers are going to respond to the new thing you're trying to build. So you have to be able to reward employees on the inputs, you have to have a way for them to continue to progress and grow in their career even if they work on something didn't work. And you have to have a way of thinking about, when things don't work, how do I take the technology that I built as part of that, that really actually does work, but I didn't get it right in the form factor, and use it for other things. And I think that when you think about a culture like Amazon, that disproportionately hires builders, organizes into these separable, autonomous teams, and allows them to use building blocks to move fast, and has a leadership team that's looking to say yes to ideas and is willing to fail, you end up finding not only do you do more inventing but you get the people at every level of the organization spending their free cycles thinking about new ideas because it actually pays to think of new ideas cause you get a shot to try it. And so that has really helped us and I think most of our customers who have made significant shifts to AWS and the cloud would argue that that's one of the big transformational things they've seen in their companies as well. >> Okay. I want to go a little bit deeper on the subject of culture. What are some of the things that are most unique about the AWS culture that companies should know about when they're looking to partner with us? >> Well, I think if you're making a decision on a predominant infrastructure provider, it's really important that you decide that the culture of the company you're going to partner with is a fit for yours. And you know, it's a super important decision that you don't want to have to redo multiple times cause it's wasted effort. And I think that, look, I've been at Amazon for almost 20 years at this point, so I have obviously drank the Kool Aid. But there are a few things that I think are truly unique about Amazon's culture. I'll talk about three of them. The first is I think that we are unusually customer-oriented. And I think a lot of companies talk about being customer-oriented, but few actually are. I think most of the big technology companies truthfully are competitor-focused. They kind of look at what competitors are doing and then they try to one-up one another. You have one or two of them that I would say are product-focused, where they say, hey, it's great, you Mr. and Mrs. Customer have ideas on a product, but leave that to the experts, and you know, you'll like the products we're going to build. And those strategies can be good ones and successful ones, they're just not ours. We are driven by what customers tell us matters to them. We don't build technology for technology's sake, we don't become, you know, smitten by any one technology. We're trying to solve real problems for our customers. 90% of what we build is driven by what you tell us matters. And the other 10% is listening to you, and even if you can't articulate exactly what you want, trying to read between the lines and invent on your behalf. So that's the first thing. Second thing is that we are pioneers. We really like to invent, as I was talking about earlier. And I think most big technology companies at this point have either lost their will or their DNA to invent. Most of them acquire it or fast follow. And again, that can be a successful strategy. It's just not ours. I think in this day and age, where we're going through as big a shift as we are in the cloud, which is the biggest technology shift in our lifetime, as dynamic as it is, being able to partner with a company that has the most functionality, it's iterating the fastest, has the most customers, has the largest ecosystem of partners, has SIs and ISPs, that has had a vision for how all these pieces fit together from the start, instead of trying to patch them together in a following act, you have a big advantage. I think that the third thing is that we're unusually long-term oriented. And I think that you won't ever see us show up at your door the last day of a quarter, the last day of a year, trying to harass you into doing some kind of deal with us, not to be heard from again for a couple years when we either audit you or try to re-up you for a deal. That's just not the way that we will ever operate. We are trying to build a business, a set of relationships, that will outlast all of us here. And I think something that always ties it together well is this trusted advisor capability that we have inside our support function, which is, you know, we look at dozens of programmatic ways that our customers are using the platform and reach out to you if you're doing something we think's suboptimal. And one of the things we do is if you're not fully utilizing resources, or hardly, or not using them at all, we'll reach out and say, hey, you should stop paying for this. And over the last couple of years, we've sent out a couple million of these notifications that have led to actual annualized savings for customers of 350 million dollars. So I ask you, how many of your technology partners reach out to you and say stop spending money with us? To the tune of 350 million dollars lost revenue per year. Not too many. And I think when we first started doing it, people though it was gimmicky, but if you understand what I just talked about with regard to our culture, it makes perfect sense. We don't want to make money from customers unless you're getting value. We want to reinvent an experience that we think has been broken for the prior few decades. And then we're trying to build a relationship with you that outlasts all of us, and we think the best way to do that is to provide value and do right by customers over a long period of time. >> Okay, keeping going on the culture subject, what about some of the quirky things about Amazon's culture that people might find interesting or useful? >> Well there are a lot of quirky parts to our culture. And I think any, you know lots of companies who have strong culture will argue they have quirky pieces but I think there's a few I might point to. You know, I think the first would be the first several years I was with the company, I guess the first six years or so I was at the company, like most companies, all the information that was presented was via PowerPoint. And we would find that it was a very inefficient way to consume information. You know, you were often shaded by the charisma of the presenter, sometimes you would overweight what the presenters said based on whether they were a good presenter. And vice versa. You would very rarely have a deep conversation, cause you have no room on PowerPoint slides to have any depth. You would interrupt the presenter constantly with questions that they hadn't really thought through cause they didn't think they were going to have to present that level of depth. You constantly have the, you know, you'd ask the question, oh, I'm going to get to that in five slides, you want to do that now or you want to do that in five slides, you know, it was just maddening. And we would often find that most of the meetings required multiple meetings. And so we made a decision as a company to effectively ban PowerPoints as a communication vehicle inside the company. Really the only time I do PowerPoints is at Reinvent. And maybe that shows. And what we found is that it's a much more substantive and effective and time-efficient way to have conversations because there is no way to fake depth in a six-page narrative. So what we went to from PowerPoint was six-page narrative. You can write, have as much as you want in the appendix, but you have to assume nobody will read the appendices. Everything you have to communicate has to be done in six pages. You can't fake depth in a six-page narrative. And so what we do is we all get to the room, we spend 20 minutes or so reading the document so it's fresh in everybody's head. And then where we start the conversation is a radically different spot than when you're hearing a presentation one kind of shallow slide at a time. We all start the conversation with a fair bit of depth on the topic, and we can really hone in on the three or four issues that typically matter in each of these conversations. So we get to the heart of the matter and we can have one meeting on the topic instead of three or four. So that has been really, I mean it's unusual and it takes some time getting used to but it is a much more effective way to pay attention to the detail and have a substantive conversation. You know, I think a second thing, if you look at our working backwards process, we don't write a lot of code for any of our services until we write and refine and decide we have crisp press release and frequently asked question, or FAQ, for that product. And in the press release, what we're trying to do is make sure that we're building a product that has benefits that will really matter. How many times have we all gotten to the end of products and by the time we get there, we kind of think about what we're launching and think, this is not that interesting. Like, people are not going to find this that compelling. And it's because you just haven't thought through and argued and debated and made sure that you drew the line in the right spot on a set of benefits that will really matter to customers. So that's why we use the press release. The FAQ is to really have the arguments up front about how you're building the product. So what technology are you using? What's the architecture? What's the customer experience? What's the UI look like? What's the pricing dimensions? Are you going to charge for it or not? All of those decisions, what are people going to be most excited about, what are people going to be most disappointed by. All those conversations, if you have them up front, even if it takes you a few times to go through it, you can just let the teams build, and you don't have to check in with them except on the dates. And so we find that if we take the time up front we not only get the products right more often but the teams also deliver much more quickly and with much less churn. And then the third thing I'd say that's kind of quirky is it is an unusually truth-seeking culture at Amazon. I think we have a leadership principle that we say have backbone, disagree, and commit. And what it means is that we really expect people to speak up if they believe that we're headed down a path that's wrong for customers, no matter who is advancing it, what level in the company, everybody is empowered and expected to speak up. And then once we have the debate, then we all have to pull the same way, even if it's a different way than you were advocating. And I think, you always hear the old adage of where, two people look at a ceiling and one person says it's 14 feet and the other person says, it's 10 feet, and they say, okay let's compromise, it's 12 feet. And of course, it's not 12 feet, there is an answer. And not all things that we all consider has that black and white answer, but most things have an answer that really is more right if you actually assess it and debate it. And so we have an environment that really empowers people to challenge one another and I think it's part of why we end up getting to better answers, cause we have that level of openness and rigor. >> Okay, well Andy, we have time for one more question. >> Okay. >> So other than some of the things you've talked about, like customer focus, innovation, and long-term orientation, what is the single most important lesson that you've learned that is really relevant to this audience and this time we're living in? >> There's a lot. But I'll pick one. I would say I'll tell a short story that I think captures it. In the early days at Amazon, our sole business was what we called an owned inventory retail business, which meant we bought the inventory from distributors or publishers or manufacturers, stored it in our own fulfillment centers and shipped it to customers. And around the year 1999 or 2000, this third party seller model started becoming very popular. You know, these were companies like Half.com and eBay and folks like that. And we had a really animated debate inside the company about whether we should allow third party sellers to sell on the Amazon site. And the concerns internally were, first of all, we just had this fundamental belief that other sellers weren't going to care as much about the customer experience as we did cause it was such a central part of everything we did DNA-wise. And then also we had this entire business and all this machinery that was built around owned inventory business, with all these relationships with publishers and distributors and manufacturers, who we didn't think would necessarily like third party sellers selling right alongside us having bought their products. And so we really debated this, and we ultimately decided that we were going to allow third party sellers to sell in our marketplace. And we made that decision in part because it was better for customers, it allowed them to have lower prices, so more price variety and better selection. But also in significant part because we realized you can't fight gravity. If something is going to happen, whether you want it to happen or not, it is going to happen. And you are much better off cannibalizing yourself or being ahead of whatever direction the world is headed than you are at howling at the wind or wishing it away or trying to put up blockers and find a way to delay moving to the model that is really most successful and has the most amount of benefits for the customers in question. And that turned out to be a really important lesson for Amazon as a company and for me, personally, as well. You know, in the early days of doing Marketplace, we had all kinds of folks, even after we made the decision, that despite the have backbone, disagree and commit weren't really sure that they believed that it was going to be a successful decision. And it took several months, but thankfully we really were vigilant about it, and today in roughly half of the units we sell in our retail business are third party seller units. Been really good for our customers. And really good for our business as well. And I think the same thing is really applicable to the space we're talking about today, to the cloud, as you think about this gigantic shift that's going on right now, moving to the cloud, which is, you know, I think in the early days of the cloud, the first, I'll call it six, seven, eight years, I think collectively we consumed so much energy with all these arguments about are people going to move to the cloud, what are they going to move to the cloud, will they move mission-critical applications to the cloud, will the enterprise adopt it, will public sector adopt it, what about private cloud, you know, we just consumed a huge amount of energy and it was, you can see both in the results in what's happening in businesses like ours, it was a form of fighting gravity. And today we don't really have if conversations anymore with our customers. They're all when and how and what order conversations. And I would say that this going to be a much better world for all of us, because we will be able to build in a much more cost effective fashion, we will be able to build much more quickly, we'll be able to take our scarce resource of engineers and not spend their resource on the undifferentiated heavy lifting of infrastructure and instead on what truly differentiates your business. And you'll have a global presence, so that you have lower latency and a better end user customer experience being deployed with your applications and infrastructure all over the world. And you'll be able to meet the data sovereignty requirements of various locales. So I think it's a great world that we're entering right now, I think we're at a time where there's a lot less confusion about where the world is headed, and I think it's an unprecedented opportunity for you to reinvent your businesses, reinvent your applications, and build capabilities for your customers and for your business that weren't easily possible before. And I hope you take advantage of it, and we'll be right here every step of the way to help you. Thank you very much. I appreciate it. (applause) >> Thank you, Andy. And thank you, everyone. I appreciate your time today. >> Thank you. (applause) (upbeat music)