>>Hello, everyone. Welcome to the cubes presentation of the AWS partner showcase. This is season one, episode two. I'm your host, John furry with the cube. I'm joined by two cube alumni as Andy Langston, SVP and GM at Veem and Sabina Joseph, the general manager of technology partners at AWS. We're here talking about speeding the innovation with AWS. Welcome to the show. >>Ready to meet you >>And good to see you, Andy again. >>Great to have you guys back on. I hope you guys are doing well. Great to see both of you Veem. Obviously we've been covering you guys for a long time. You got your VIMANA event coming up in person, which is great. Congrats on the continued success of the company and the product you guys have always been all in on AWS. We've been covering for many, many years. Andy, what's the innovation going on now at Veem? Lots of lots happening, lots going on. What's the new innovation. >>Well, I think, you know, clearly people are in, you know, when we talk to people they're interested in, in ransomware, so ransomware protection, we they're interested in a hybrid cloud hybrid. Um, you know, AWS in particular, we get a lot of interest there. Um, clearly modern data protection, uh, what we're doing in office 365, people are looking at all those things >>And what's the, the platform, uh, approach that you guys have with AWS. You guys have a broad range. It's not just the classic. I call it the green classic solution. That's also a good product. What's some of the new platform advantages you guys got going on with the cloud native with AWS. >>Well, you know, look we are, our strategy is to protect as many AWS services as possible, you know, and, and, you know, from the ECE to EBS, S3, RDS, uh, VMC, and many of the services that they're coming out with. And in many times they come to us and say, Hey, you know, these are important to us. We'd like you to, to support these. So clearly we're, um, we're focused on those, uh, Kubernetes workloads is, is a newer set of workloads on AWS. That we're a very interested, we made an acquisition and have a product called, uh, Kasten that we've been investing in and working with AWS with their, uh, uh, EKS anywhere. So very excited. >>Great. So being on the partnership, you guys, it's growing a lot's going on. Can you tell us more about how Veeam and abs AWS are jointly helping customers? >>Yeah. As, um, as both of, you know, right. Data is exploding. And, uh, that means, you know, we have to keep backing up this data and finding new ways to back up this data because people are stepping away from the traditional backup methods, tape libraries, secondary storage sites and things like that. And they're backing up data into the cloud. And we AWS offers a number of different storage services, data transfer methods and networking solutions, which provide unmatched your ability, reliability, security. And of course, uh, AWS and Veem have been partnering together enough for quite a number of years and the cost effective. And so you mentioned that Veem has on AWS really enables customers to have offsite storage solutions, providing that physical separation between their on premises, primary data, and also utilizing the pay as you go cloud economics. So we have a great collaboration and, you know, beam has a great solution on AWS and they're constantly innovating and providing capabilities for our customers. Just like Andy said, providing as many capabilities for our services to back up, >>Andy, the volume of data I'll say is always the story. Every year, the volume is tsunami of data. It's getting worse it's every day. Um, and as you got more cloud scale, you guys have been doing a lot integration. You guys always have, you have demanding customers, you have a lot of customers actually. So as you leverage Amazon for data protection, the security conversation is front and center these days. Can you give us an update on how you guys are doing, uh, the data protection security in the cloud with AWS? That's, that's, um, that's hot with your customers, >>You know, it's a great, it's a great comment. You know, you've talked about a lot of customers. Veem has over 400,000 customers now it's, it's truly extraordinary when you think about the size and scope and scale. And if you think, uh, my belief is a majority, almost all of them will tear up two and move their data up into the cloud at some point in our, in the next few years. And so we've just, I think we've described the surface and we're moving hack, you know, hundreds of petabytes or more per year up to the cloud at the same time when I make customer executive calls. It's kind of interesting. A lot of times you think they're going to want to talk about backup and disaster recovery. They want to talk about security. And when this first started happening, I thought, Hey, why don't you talk to your security vendor now? >>And what I realized was that data protection is front and center because of the, we just, we just published a study where a number jumped out at me, 71% of the thousands of people that responded said that they had already been a victim of, or had had a ransomware attack. It's a staggering number. And, um, so, you know, when we look at our relationship with Amazon and we look at the integration we've done around what we call cloud during that's moving, are moving data up to object storage. AWS has a capability called immutable data sets. And so that allows you affords you some great protection against ransomware as an example. And that's one of the areas that we're investing in very heavily. And by the way, our mutual customers are backing up and restoring with Veem and we're doing it on AWS and, and, uh, the data volumes are exploding, I think, because of that. Yeah. >>You know, it's interesting. And you made me have a throwback for, you know, 10 years ago, we used to talk about backup and recovery. And you know, the big thing back then was, was the conversation was don't think of backup as a, as a last minute thing, think of it at the front end, it was always kind of an afterthought and a, of the it decision makers. And you mentioned that security comment about call your security vendor. It's almost the scripts has flipped backup and recovery is the security solution. And so it's not, it's not an afterthought. This is 10 years ago. It was the primary message. It's the primary thought. So when you talk about automated tiering, that's kind of a networking thing. It's like, policy-based hearing. I mean, I mean, if you go back 10 years and we're talking, policy-based hearing, you were like, what? So this is a really different dynamic. And I want you guys to comment because this is the, this is the market right now. This is with the flip, the script has flipped. >>Yeah. Sabina. What do you, what, what do you from y'all's perspective kind of in, in your technology, partnerships, storage vendors, Veem security, what, what do you w what do you see? >>Well, I think that there is an interplay here because I think customers are looking at various ways, right? When I look at those five cybersecurity framework, right? First is identifying what you need to protect, protecting it. And then that's a very important step of, out of those five steps is recovery, right? How do you get your business back to normal? But you cannot do that if you are not protecting and backing up your data. And that's where our partnership comes in. Right? So I believe that all of those five stages in the NIST cybersecurity framework kind of go together and be in place nicely into the very critical phase of recovery. Would you agree, Andy? >>I would. You know, and, and I look at, um, you know, when you're doing a recovery and your gut, your secure backups and AWS, it's, it's like your last line of defense, you know, beam and AWS deliver a mutable backups and has three tiers through S3 object lock integration. And I think that's, that's pretty much, you know, even if a ransomware attack is successful, we can, we can ensure that the backup data hadn't been changed and encrypted or deleted. And, uh, that's pretty exciting, you know, for customers and prospects, they're really worried about this. And I think the teamwork and the, the, the partnership between the two companies to build a solution like this is pretty awesome. >>Yeah. Let me, let me just double, double click on that for a second. You mentioned it got a lot of customers. Ransomware does not discriminate with the size of the company. It could be, it could be a hospital school. It could be a big company. Ransomware is bad, and we see that, and it's a great conversation. And how do you take that solution out to the customers? You got hundreds of thousands of customers. So Sabine, I guess the question is, how is this 80 of us in Veem work together? There's this channel first concept you guys are talking about, tell us about how you guys work together, because there's millions of customers who want this, and you guys actually have hundreds of thousands of customers that Veem, how do you get the customers to leverage that, the relationship and what can you bring to them? >>Yeah, I'll give you like four numbers, right? So AWS has millions of customers and we have, um, hundred thousand partners across 150 countries. Now Veem has, as Andy mentioned, right, has over 400,000 customers and 35,000 partners worldwide. So somewhere in these four numbers, we all intersect both of us intersect both on those customers and also on those partners. And one of the initiatives that my team is heavily focused on is triangulating between the partners that Veeam has. We have, and also our technology partnership. And how can we provide value to our customers by bringing together these partners together with AWS Veeam and Veeam is a V it's a hundred percent channel driven business, and they know how to do this. That is why we are heavily partnered with them to see what we can do for our customers through our mutual partner. >>And he wants you to weigh in here, you know, the channel business, it's gotta be easy, it's got to add value. And I got to wrap services around it. That's what partners love. Well, how does this work? How does that work? >>Well, I, I think to extend beyond what, what did take, what Sabina had said is, you know, we have kind of been subsetted. Our partners are the ones that, that do business with AWS and, and which is a exploding number of partners. And so they have a relationship database. We have a relationship at S and we have this solution set that have, are of interest to our customers through these partners. And AWS has customers through these partners. And so a lot of times we'll share, um, information and customers, uh, information on, around, um, how we can kind of go to these customers who are both AWS customers and Veem customers and market, this joint solution protect them from ransomware. >>And how's it been going so far? What's your, what's your assessment? >>It's been fantastic. I think the, I think one of the, the, the real proof points is that we've moved, uh, over a half a petabyte of data, you know, uh, recently up into their cloud. And, uh, you know, that says that people not only are using the solution, but they're, uh, they're actually delivering on it. >>Well, why got you here, Andy, I want to ask you for the, all the people watching the customers, what's the biggest change that's happening in this market right now. Again, I love this shift that we're seeing backup and recovery. Isn't a point solution anymore. It's the solution it's baked in, and everyone's talking about this, it's integrated in, it's not, it's, it's totally front and center. What's the big change that customers should be thinking about now as they move forward. And, uh, obviously ransomware is still front and center. That's not going away anytime soon. What's the big thing to focus on for customers? >>Well, I think, you know, I always say, you know, listen to the customer and focus on what their specific needs are, right? You can assume, obviously in the business war and everybody, everybody has a backup solution. And, uh, so you're not trying to create a market there, but like I said, you know, people are very focused on security. They're focused on cost, they're focus on skillset or lack of skill sets, right? I mean, we have a shortage of skills in the industry. So we try to make our products easy to use. We try to work with our partners, putting AWS to deliver the best solution we can for our customers. And, uh, you know, I think we have the broadest invest, you know, ransomware protection, uh, and recovery in the storage space. And so we're very focused on that, leveraging all of our technologies across the platforms, physical, virtual Kubernetes, uh, type environments. >>And you have this and you get the beam on event coming up and that's going to be good in person. Right. That's a confirmed, >>It's a, it's a, it's a hybrid yet. In-person and virtual. >>Awesome. Great to see you guys in person. So being a, for the folks, watching the Amazon partnerships, as you guys scale up these, these partnerships and take it the next level, what's your, what's your closing comment. Yes. >>Yeah. I also want to say, write something that I should mention, right. We miss also invested in AWS marketplace. So it's not just the direct consulting partners and the partners that I mentioned, the a hundred thousand and 35,000, right. They, customers can also purchase beam on AWS marketplace through consulting partner, private offers. And that's why Viva's embraced many of these aspects to try to help our customers and continue to grow that 400,000 customer base, which is a pretty phenomenal number. >>Yeah. I've always been impressed with beam's customer base and they've got a very loyal base as well. I point that out and give props to the VM team. Andy closing comments for you, the V natives relationship, how would you summarize that? >>I'd say it's fantastic. You know, years ago it started as just a normal technology partnership. You know, now we're an advanced technology partner with storage competency, numerous programs like APN, uh, customer engagement. We're a marketplace seller. And I would say that it's not only that, but, but customers can take advantages of their, um, EDP with AWS to purchase on the marketplace and get credits against that. And our partners can as well. That's a, that's a very important thing because we're seeing more and more interest in that today. Uh, we're a public sector partner with them. We're an ISV accelerate SAS revenue recognition program. We're, we're, uh, I think we're checking a lot of boxes, but really taking advantage of it. The last thing I would say is, uh, I've known Sabina for quite a few years now. And I think it's the people relationships in the two companies that make this work. >>We have a lot of people, a lot smarter than me on the, on the speeds and feeds here. But at the end of the day, um, Sabina has a team of people that work with us on a, on a, almost a daily basis to solve customer problems. Right. We get people calling in all the time. How do I make Veem work on AWS? How do I get AWS solutions to work with theme? And our job is to make it as easy as possible because we both believe, uh, that customers, they say customer first. I always say, customer always are always right, but, but, but, but you know, at the end of the day, that's what makes this >>Yeah. Customer is always right. Customer obsession, working backwards from the customer fucking customer first Sabina. This is really interesting. This is a good point. I just come quick, go back to you real quick. This integration of relationships and also cloud technology integration is a big theme this year, post re-invent. Your thoughts >>Absolutely means, um, uh, to be candid. Uh, one of the goals that me and my team take is how do we bring technology partners together to add more value to our customers in end to end solutions, along with technology partners and consulting partners. So that is a huge focus for us because we need to do that in order to scale, not just for each other, but also for our customers and bring that, bring together meaningful, comprehensive end to end solutions. >>That's awesome. Andy, great to see you. We'll see at Veem on as well, coming up for the Veem show and your conference. You've been conference hybrid conference in person and virtual and digital to be in a great to see you again. Thanks for sharing all the great updates. And this is the season two. It's all about the data and the innovations with AWS. I'm John for your host of the cube season one episode, two of the AWS partner showcase. Thanks for watching.

>>Here you are new. Welcome back to the cubes. Continuing coverage of AWS reinvent 2021 live from Las Vegas. Lisa Martin, with John farrier, John, we have two live sets. There's a dueling set right across from us two remote studios over 100 guests on the cube at AWS reinvent 2021. Been great. We've had great conversations. We're talking about the next generation of cloud innovation and we're pleased to welcome one of our alumni back to the program. Lisa Bernays here, the CEO and co-founder of D L Z P group. Lisa. Welcome. >>Hi, thank you. I appreciate the opportunity to be here with you and John. It's a great opportunity >>And John's lucky he gets to lease us for the price of London. One second. Talk to me about da DLDP. This is a woman and minority owned company. Congratulations. That's awesome. But talk to us about your organization and then we'll kind of dig into your partnership with AWS. >>Sure. So DLC P group, we found it in 2012. Um, and for us, we were at the time we were just looking for a way to offer a value added service to our customers. We wanted to always make sure that we were giving them the best quality, but what I also wanted to do is I wanted to create an environment for my employees, where they felt valued, and we kind of built these core values back then about respect, flat hierarchy, um, team, team learning, mentorship, and we incorporated, so everybody can do this remotely from around the world. So we've always made sure that our employees and customers are getting the best value. >>Well, what kind of customers, what target market, what kind of customers do you guys work with? >>Well, we've actually made sure that we're diverse. We make sure that we have 50% in public sector and 50% in private sector, but it's been very, very interesting journey for us because once we started one sec, like we started with cities and then a number of cities started contacting us to do more business. So it's always been this hurdle to make sure we're diverse enough to make sure we offer the best solutions. >>And you jumped in with AWS back in 2012 when most folks were still to your point. I saw your interview earlier this summer, thinking about Amazon as a bookstore, why a debit? What did you see as the opportunity back in 2012 with them? >>Well, when we first heard about AWS, my first thought is, well, it's amazon.com. What is AWS? And then once we started talking to them, we saw the capabilities and the potential there. We saw what it could do. So we partnered with them to actually have the first working PeopleSoft customer on AWS. So that's a large ERP application and that helped build the foundation to prove what could actually run on the cloud. And since then, we've been able to prove so much more about the technology and what AWS is accomplishing. >>Was it a hard sell back in the day? >>It was a little bit hard, but it was interesting because we were speaking with one of our customers they're on premise and they're like, well, you know, we're going to have to re do a whole data center. We're talking about millions of dollars. We don't really have the budget to redo this. And that's when we're like, well, we have this great partnership with Amazon. We think this would be the perfect opportunity to let you try the cloud and see how successful it was. >>At least I want to point out you got your, one of the Pathfinders that Adams Leschi pointed out because back in 2012, getting PeopleSoft onto the cloud, which is really big effort, but that's what everyone's doing now. I just saw the news here. SAP is running their application on graviton too, right? So you start to see and public sector during the pandemic, we saw a ton of connect. So you were really on this whole ERP. ERP is our big applications. It's not small, but now it's, everyone's kind of going that way. What's the current, uh, you feel how you feel about that one? And what's the current update relative to the kind of projects you got going on? >>Well, we've, we've evolved quite a bit. I mean, PeopleSoft is always going to be in our DNA. A lot of my employees are ex or Oracle employees. They have developed a lot of the foundations for PeopleSoft, but since then, like we've worked with serverless technology when that was released a number of years ago, we, we asked our team, okay, AWS just talked about Lambda, serverless technology, go figure out what is the best solution. We ended up running ours, our website serverless. We were one of the first. And from that, we brought our website costs down from hundreds of dollars to pennies a month. So it's a huge savings. And then we started, um, about two years ago, we spoke with our utility company. Um, there were saying how with machine learning, they were only going to be able to get a 75% accuracy for their wind turbines. And we said, well, let us take a shot at it. We have some great solutions on AWS that we think might work. We were able to redo their algorithm using AWS cloud native tools, open source data to get a 97 to 99% accuracy on a daily basis. And that saves them millions of dollars each day. >>Don's right. And as Adam was saying with some of the folks, customers, he was highlighting on main stage the other day, you are a Pathfinder. How did you get the confidence? Especially as a female minority owned business. I'd love to just get maybe for some of those younger viewers out there. How did you get the confidence to, you know what? I think we can do this. >>I think for me, I, I, I don't like to take no for an answer. There's always a solution. So we're always looking at technology, seeing how we can use it to get a better answer. >>What do you think about reinvent this year? A lot of goodies here every year, there's always new creative juices flowing because it's a learning conference, but it's also feels like a futuristic kind of conference. What's your take this year? >>I don't know if you happen to attend midnight madness when they were talking about robotics and the future with that. I mean, we've been talking about that for a number of years of what could be created with robotics. Like even my son back in middle school was talking about creating a robot Butler. He just, everybody knows what the future is. And it's so great that we finally have the foundation in technology to be able to create these >>Well, if you're someone that doesn't like to say, no, does your son actually have a robot Butler these >>Days? He's still working on it. >>That's a good answer to say, Hey, sorry, your mom's not going to be there to get the robot. The latency thing. This is the robot. First of all, we'd love the robotics, I think is huge. We just had George on who's the fraught PM for ECE to edge and late, the wavelength stuff looks really promising for the robotics stuff. Super exciting. >>Yes. We can't wait to start playing with it more. I mean, it's something that our team has been dabbling. We spent probably about 30% of our time on R and D. So we're looking at the future and what we can invent next because >>You guys can affect such dramatic changes for customers. You talked about that wind turbine customer going from 75% accuracy to 97, 90 8%. Where are your customer conversations? Cause that's, is, are they at the C level with showing organizations that dramatic reduction in costs and workforce productivity increased that they can get? >>We talk with everyone it's it could be the solution architect. It could be an intern. It could, and we're just sharing our ideas with them. And we also talk with the C level. Um, it's just, it's everybody is interested in and they have different, different ideas that they want to share. So with the solution architect, we can share with them the code and how we're going to architect it. While the C level, we just pointed out black and white, this is your cost. Now this is what your cost is going to be. And everybody is happy. They, they jump on board with it. >>Lisa, you mentioned 30% R and D by the way, it's awesome. By the way, that's well above most averages, what are you working on? Because I totally think companies should have a big R and D play around budget, get a sandbox, going get some tinkering. Cause you never know where the real discoveries we had. David Brown who runs NC to nitro, came out of a card on the network. So you'd never know where the next innovation comes from. What's the, what are you guys doing for R and D? What's the fun projects are what endeavors. >>So there's two of them. One is actually a product, which is a little bit out of our comfort zone, but we're, we're, we're looking to develop something that will be able to help, um, NASA. So that's the goal where, you know, we've been working on it since they released their ma their mission to Mars projection. So it's something that we're very passionate about, but then we're also building a software. Uh, we've been working on it for about three years now and we actually have two customers prototyping it. So we're hoping to be able to launch it to the public within the next year. >>You mentioned NASA and I just about jumped out of my chair. That was my first job out of grad school was really the space program. Can you tell us a little bit more about what you're helping them do? I love how forward-thinking that they are, obviously they always have been, but tell me a little bit more about that. >>So I can't share too much because it's one of those things is a common sense thing. Once you think about a little bit more, it's kind of like why didn't anybody never think about this? So we're using new technology and old technology together to combine the solution. >>Ooh, I can't wait to learn more. Talk to us about these. Think big for small business TB SB program at AWS. How long have you guys been a part of that and what is it enabling? What is it going to enable you to do in 2022? So >>The think big for small business program was the brainchild is Sandy Carter. And I am always, always going to be grateful to her. Um, I met with her in 2019. I shared her journey, our journey with her about how we started out being a premier partner and then over time, because there's so many other partners, we were downgraded. And because just because we're a small business, and even if I had every employee, even my admin staff certified, we would never have enough employees to be to the next level, even though we had the customers, the references. So she listened to us and other small businesses and created the program. And it's been a great opportunity for us because we're, we're gaining access to capital, you know, funding for opportunities. We're getting resources for training. So it, for us, it's been a huge advantage. >>It sounds like a part of that AWS flywheel that we always talk about. John Sandy Carter being one of our famous Cuba alumni. She was just on yesterday with you. Okay. >>And there's so many opportunities for all businesses because you can, you can tackle these problems. You don't have to be a large partner. You can have specialty in AI works really well in these specialized environments. And even technically single-threaded multithreaded applications, which is a technical CS term is actually better to have a single threaded. If you have too many cores, it's actually bad technically. So the world's changing like big time on how technology. So I'm a huge fan of the program. And I think like it's just one of those things where people can get it from cloud and be successful. >>Yes. And that's the goal. I mean, there is so much opportunity in the cloud and we bring interns on all the time, just so they can learn. And what, what resonated with me the most was we brought a high school senior in, he goes, I was with you guys for three months. I learned more in three months, I did four years of high school. And he's like, you set me up for the future. >>Oh my gosh. If there's not validation for you doing in that statement alone. My goodness. Well, you know, some of the things that, that are so many exciting announcements that have come out of this reinvent, so great to be back in person one. Um, but also, you know, being able to help AWS customers become data companies. Because as we were been talking about the last couple of days, every company has to be a data company. You gotta figure it out. If you're, if you haven't by now, there's a competitor right back here, who's ready to take your spot. Talk to us about what excites you about enabling companies to become data companies as we head into 2020. >>Well, for us, everybody has so much data nowadays. You know, I mean even think about cell phones, how much data is stored in that. So each device has so much information, but what do you do with it? So it's great because a lot of these companies are trying to figure out what, how can we use this data to prove that improve the experience for our customers? So that's where we've been coming in and showing them, okay, well, you can take that data. You look at Lisa and John cell phone. You see that they, they love to look up where they're going to go on their next vacation. You can start creating algorithms to make sure that they get the best experience one for the next vacation to make sure it's not a won't Rob the bank. >>Awesome. And going on vacation tomorrow. So I'll be, I'll be expecting some help from you on that. It's been great to have you on the program. Yeah. Congratulations on the success, the partnership, and where can folks go if if young or old years are watching and are interested in working with you, it's the website where they, where can they go to learn more >>Information? So they can go to D L Z P group.com >>DLZ P group.com. Awesome. Lisa, thanks so much for coming back on the program. Great >>To see you. Thank you so much. All >>Right. For John furrier, I'm Lisa Martin and you're watching the cube, the global leader in live tech coverage.

>>Hey, welcome back everyone. We're live here in the cube in Las Vegas Raiders reinvent 2021. I'm Jeffrey hosted the key we're in person this year. It's a hybrid event online. Great action. Going on. I'm rolling. Vice-president of ADF analytics. David is great to see you. Thanks for coming on. >>It's great to be here, John. Thanks for having me again. >>Um, so you've got a really awesome job. You've got serverless, you've got analytics. You're in the middle of all the action for AWS. What's the big news. What are you guys announcing? What's going on? >>Yeah, well, it's been an awesome reinvent for us. Uh, we've had a number of several us analytics launches. So red shift, our petabyte scale data warehouse, EMR for open source analytics. Uh, and then we've also had, uh, managed streaming for Kafka go serverless and then on demand for Kinesis. And then a couple of other big ones. We've got RO and cell based security for AWS lake formation. So you can get really fine grain controls over your data lakes and then asset transactions. You can actually have a inserts, updates and deletes on data lakes, which is a big step forward. >>Uh, so Swami on stage and the keynote he's actually finishing up now. But even last night I saw him in the hallway. We were talking about as much as about AI. Of course, he's got the AI title, but AI is the outcome. It's the application of all the data and this and a new architecture. He said on stage just now like, Hey, it's not about the old databases from the nineties, right? There's multiple data stores now available. And there's the unification is the big trend. And he said something interesting. Governance can be an advantage, not an inhibitor. This is kind of this new horizontally scalable, um, kind of idea that enables the vertical specialization around machine learning to be effective. It's not a new architecture, but it's now becoming more popular. People are realizing it. It's sort of share your thoughts on this whole not shift, but the acceleration of horizontally scalable and vertically integrated. Yeah, >>No, I think the way Swami put it is exactly right. What you want is the right tool for the right job. And you want to be able to deliver that to customers. So you're not compromising on performance or functionality of scale, but then you wanted all of these to be interconnected. So they're, well-integrated, you can stay in your favorite interface and take advantage of other technologies. So you can have things like Redshift integrated with Sage makers, you get analytics and machine learning. And then in Swami's absolutely right. Governance is actually an enabler of velocity. Once you've got the right guardrails in place, you can actually set people free because they can innovate. You don't have to be in the way, but you know that your data is protected. It's being used in the way that you expect by the people that you are allowing to use that data. And so it becomes a very powerful way for customers to set data free. And then, because things are elastic and serverless, uh, you can really just match capacity with demand. And so as you see spikes in usage, the system can scale out as those dwindle, they can scale back down, and it just becomes a very efficient way for customers to operate with data at scale >>Every year it reinvented. So it was kind of like a pinch me moment. It's like, well, more that's really good technology. Oh my God, it's getting easier and easier. As the infrastructure as code becomes more programmable, it's becoming easier, more Lambda, more serverless action. Uh, you got new offerings. How are customers benefiting for instance, from the three new offerings that you guys announced here? What specifically is the value proposition that you guys are putting out there? Yeah, so the, >>Um, you know, as we've tried to do with AWS over the years, customers get to focus on the things that really differentiate them and differentiate their businesses. So we take away in Redshift serverless, for example, all of the work that's needed to manage clusters, provision them, scale them, optimize them. Uh, and that's all been automated and made invisible to customers, the customers to think about data, what they want to do with it, what insights they can derive from it. And they know they're getting the most efficient infrastructure possible to make that a reality for them with high performance and low costs. So, uh, better results, more ability to focus on what differentiates their business and lower cost structure over time. >>Yeah. I had the essential guys on it's interesting. They had part of the soul cloud. Continuous is their word for what Adam was saying is clouds everywhere. And they're saying it's faster to match what you want to do with the outcomes, but the capabilities and outcomes kind of merging together where it's easy to say, this is what we want to do. And here's the outcome it supports that's right with that. What are some of the key trends on those outcomes that you see with the data analytics that's most popular right now? And kind of where's that, where's that going? >>Yeah. I mean, I think what we've seen is that data's just becoming more and more critical and top of mind for customers and, uh, you know, the pandemic has also accelerated that we found that customers are really looking to data and analytics and machine learning to find new opportunities. How can they, uh, really expand their business, take advantage of what's happening? And then the other part is how can they find efficiencies? And so, um, really everything that we're trying to do is we're trying to connect it to business outcomes for customers. How can you deepen your relationship with your customers? How can you create new customer experiences and how can you do that more efficiently, uh, with more agility and take advantage of, uh, the ability to be flexible. And you know, what is a very unpredictable world, as we've seen, >>I noticed a lot of purpose-built discussion going on in the keynote with Swami as well. How are you creating this next layer of what I call purpose-built platform like features? I mean, tools are great. You see a lot of tools in the data market tools are tools of your hammer. You want to look for a nail. We see people over by too many tools and you have ultimately a platform, but this seems to be a new trend where there's this connect phenomenon was showing me that you've got these platform capabilities that people can build on top of it, because there's a huge ecosystem of data tools out there that you guys have as partners that want to snap together. So the trend is things are starting to snap together, less primitive, roll your own, which you can do, but there's now more easier ways. Take me through that. Explain that, unpack that that phenomenon role rolling your own firm is, which has been the way now to here. Here's, here's some prefabricated software go. >>Yeah. Um, so it's a great observation and you're absolutely right. I mean, I think there's some customers that want to roll their own and they'll start with instances, they'll install software, they'll write their own code, build their own bespoke systems. And, uh, and we provide what the customers need to do that. But I think increasingly you're starting to see these higher level abstractions that take away all of that detail. And mark has Adam put it and allow customers to compose these. And we think it's important when you do that, uh, to be modular. So customers don't have to have these big bang all or nothing approaches you can pick what's appropriate, uh, but you're never on a dead end. You can always evolve and scale as you need to. And then you want to bring these ideas of unified governance and cohesive interfaces across so that customers find it easy to adopt the next thing. And so you can start off say with batch analytics, you can expand into real time. You can bring in machine learning and predictive capabilities. You can add natural language, and it's a big ecosystem of managed services as well as third parties and partners. >>And what's interesting. I want to get your thoughts while I got you here, because I think this is such an important trend and historic moment in time, Jerry chin, who one of the smartest VCs that we know from Greylock and coin castles in the cloud, which kind of came out of a cube conversation here in the queue years ago, where we saw the movement of that someone's going to build real value on AWS, not just an app. And you see the rise of the snowflakes and Databricks and other companies. And he was pointing out that you can get a very narrow wedge and get a position with these platforms, build on top of them and then build value. And I think that's, uh, the number one question people ask me, it's like, okay, how do I build value on top of these analytic packages? So if I'm a startup or I'm a big company, I also want to leverage these high level abstractions and build on top of it. How do you talk about that? How do you explain that? Because that's what people kind of want to know is like, okay, is it enabling me or do I have to fend for myself later? This is kind of, it comes up a lot. >>That's a great question. And, um, you know, if you saw, uh, Goldman's announcement this week, which is about bringing, building their cloud on top of AWS, it's a great example of using our capabilities in terms of infrastructure and analytics and machine learning to really allow them to take what's value added about Goldman and their position to financial markets, to build something value, add, and create a ton of value for Goldman, uh, by leveraging the things that we offer. And to us, that's an ideal outcome because it's a win-win for us in Goldman, but it's also a win for Goldman and their customers. >>That's what we call the Supercloud that's the opportunity. So is there a lot of Goldmans opportunities out there? Is that just a, these unicorns, are these sites? I mean, how do you, I mean, that's Goldman Sachs, they're huge. Is there, is this open to everybody? >>Absolutely. I mean, that's been one of the, uh, you know, one of the core ideas behind AWS was we wanted to give anybody any developer access to the same technology that the world's largest corporations had. And, uh, that's what you have today. The things that Goldman uses to build that cloud are available to anybody. And you can start for a few pennies scale up, uh, you know, into the petabytes and beyond >>When I was talking to Adams, Lipski when I met with him prior to re-invent, I noticed that he was definitely had an affinity towards the data, obviously he's Amazonia, but he spent time at Tableau. So, so as he's running that company, so you see that kind of mindset of the data advantage. So I have to ask you, because it's something that I've been talking about for a while and I'm waiting for it to emerge, but I'm not sure it's going to happen yet. But what infrastructure is code was for dev ops and then dev sec ops, there's almost like a data ops developing where data as code or programmable data. If I can connect the dots of what Swami's saying, what you're doing is this is like a new horizontal layer of data of freely available data with some government governance built in that's right. So it's, data's being baked into everything. So data is any ingredient, not a query to some database, it's gotta be baked into the apps, that's data as code that's. Right. So it's almost a data DevOps kind of vibe. >>Yeah, no, you're absolutely right. And you know, you've seen it with things like ML ops and so on. It's all the special case of dev ops. But what you're really trying to do is to get programmatic and systematic about how you deal with data. And it's not just data that you have. It's also publicly available data sets and it's customers sharing with each other. So building the ecosystem, our data, and we've got things like our open data program where we've got publicly hosted data sets or things like the AWS data exchange where customers can actually monetize data. So it's not just data as code, but now data as a monetizeable asset. So it's a really exciting time to be in the data business. >>Yeah. And I think it's so many too. So I've got to ask you while I got you here since you're an expert. Um, okay. Here's my problem. I have a lot of data. I'm nervous about it. I want to secure it. So if I try to secure it, I'm not making it available. So I want to feed the machine learning. How do I create an architecture where I can make it freely available, but yet maintain the control and the comfort that this is going to be secure. So what products do I buy? >>Yeah. So, uh, you know, a great place to start at as three. Um, you know, it's one of the best places for data lakes, uh, for all the reasons. That's why we talked about your ability scale costs. You can then use lake formation to really protect and govern that data so you can decide who's allowed to see it and what they're allowed to see, and you don't have to create multiple copies. So you can define that, you know, this group of partners can see a, B and C. This group can see D E and F and the system enforces that. And you have a central point of control where you can monitor what's happening. And if you want to change your mind, you can do that instantly. And all access can be locked down that you've got a variety of encryption capabilities with things like KMS. And so you can really lock down your data, but yet keep it open to the parties that you want and give them specifically the access that you want to give them. And then once you've done that, they're free to use that data, according to the rules that you defined with the analytics tools that we offer to go drive value, create insight, and do something >>That's lake formation. And then you got a Thena querying. Yes, we got all kinds of tooling on top of it. >>It's all right. You can have, uh, Athena query and your data in S3 lake formation, protecting it. And then SageMaker is integrated with Athena. So you can pull that data into SageMaker for machine learning, interrogate that data, using natural language with things like QuickSight Q a like we demoed. So just a ton of power without having to really think too deeply about, uh, developing expert skill sets in this. >>So the next question I want to ask you is because that first part of the great, great, great description, thank you very much. Now, 5g in the edges here, outpost, how was the analytics going on that as edge becomes more pervasive in the architecture? >>Yeah, it's going to be a key part of this ecosystem and it's really a continuum. So, uh, you know, we find customers are collecting data at the edge. They might be making local ML or inference type decisions on edge devices, or, you know, automobiles, for example. Uh, but typically that data with some point will come back into the cloud, into S3 will be used to do heavy duty training, and then those models get pushed back out to the edge. And then some of the things that we've done in Athena, for example, with federated query, as long as you have a network path, and you can understand what the data format or the database is, you can actually run a query on that data. So you can run real-time queries on data, wherever it lives, whether it's on an edge device, on an outpost, in a local zone or in your cloud region and combine all of that together in one place. >>Yeah. And I think having that data copies everywhere is a big thing deal. I've got to ask you now that we're here at reinvent, what's your take we're back in person last year was all virtual. Finally, not 60,000 people, like a couple of years ago, it's still 27,000 people here, all lining up for the sessions, all having a great time. Um, all good. What's the most important story from your, your area that people should pay attention to? What's the headline, what's the top news? What should people pay attention to? >>Yeah, so I think first off it is awesome to be back in person. It's just so fun to see customers and to see, I mean, you, like, we've been meeting here over the years and it's, it's great to so much energy in person. It's been really nice. Uh, you know, I think from an analytics perspective, there's just been a ton of innovation. I think the core idea for us is we want to make it easy for customers to use the right tool for the right job to get insight from all of their data as cost effectively as possible. And I think, uh, you know, I think if customers walk away and think about it as being, it's now easier than ever for me to take advantage of everything that AWS has to offer, uh, to make sense of all the data that I'm generating and use it to drive business value, but I think we'll have done our jobs. Right. >>What's the coolest thing that you're seeing here is that the serverless innovation, is it, um, the new abstraction layer with data high level services in your mind? What's the coolest thing. Got it. >>It's hard to pick the coolest that sticks like kicking the candies. I mean, I think the, uh, you know, the continued innovation in terms of, uh, performance and functionality in each of our services is a big deal. I think serverless is a game changer for customers. Uh, and then I think really the infusion of machine learning throughout all of these systems. So things like Redshift ML, Athena ML, Pixar, Q a just really enabling new experiences for customers, uh, in a way that's easier than it ever has been. And I think that's a, that's a big deal and I'm really excited to see what customers do with it. >>Yeah. And I think the performance thing to me, the coolest thing that I'm seeing is the graviton three and the gravitron progression with the custom stacks with all this ease of use, it's just going to be just a real performance advantage and the costs are getting lowered. So I think the ECE two instances around the compute is phenomenal. No, >>Absolutely. I mean, I think the hardware and Silicon innovation is huge and it's not just performance. It's also the energy efficiency. It's a big deal for the future reality. >>We're at an inflection point where this modern applications are being built. And in my history, I'm old, my birthday is today. I'm in my fifties. So I remember back in the eighties, every major inflection point when there was a shift in how things were developed from mainframe client server, PC inter network, you name it every time the apps change, the app owners, app developers all went to the best platform processing. And so I think, you know, that idea of system software applications being bundled together, um, is a losing formula. I think you got to have that decoupling large-scale was seeing that with cloud. And I think now if I'm an app developer, whether whether I'm in a large ISV in your ecosystem or in the APN partner or a startup, I'm going to go with my software runs the best period and where I can create value. That's right. I get distribution, I create value and it runs fast. I mean, that's, I mean, it's pretty simple. So I think the ecosystem is going to be a big action for the next couple of years. >>Absolutely. Right. And I mean, the ecosystem's huge and I think, um, and we're also grateful to have all these partners here. It's a huge deal for us. And I think it really matters for customers >>What's on your roadmap this year, what you got going on. What can you share a little bit of a trajectory without kind of, uh, breaking the rules of the Amazonian, uh, confidentiality. Um, what's, what's the focus for the year? What do you what's next? >>Well, you know, as you know, we're always talking to customers and, uh, I think we're going to make things better, faster, cheaper, easier to use. And, um, I think you've seen some of the things that we're doing with integration now, you'll see more of that. And, uh, really the goal is how can customers get value as quickly as possible for as low cost as possible? That's how we went to >>Yeah. They're in the longterm. Yeah. We've always say every time we see each other data is at the center of the value proposition. I've been saying that for 10 years now, it's actually the value proposition, powering AI. And you're seeing because of it, the rise of superclouds and then the superclouds are emerging. I think you guys are the under innings of these emerging superclouds. And so it's a huge treading, the Goldman Sachs things of validation. So again, more data, the better, sorry, cool things happening. >>It is just it's everywhere. And the, uh, the diversity of use cases is amazing. I mean, I think from, you know, the Australia swimming team to, uh, to formula one to NASDAQ, it's just incredible to see what our >>Customers do. We see the great route. Good to see you. Thanks for coming on the cube. >>Pleasure to be here as always John. Great to see you. Thank you. Yeah. >>Thanks for, thanks for sharing. All of the data is the key to the success. Data is the value proposition. You've seen the rise of superclouds because of the data advantage. If you can expose it, protect it and govern it, unleashes creativity and opportunities for entrepreneurs and businesses. Of course, you got to have the scale and the price performance. That's what doing this is the cube coverage. You're watching the leader in worldwide tech coverage here in person for any of us reinvent 2021 I'm John ferry. Thanks for watching.

>>Good morning. Welcome to the cubes. Continuous coverage of AWS reinvent 2021. I'm Lisa Martin with Dave Nicholson morning, Dave. Good morning. Here we are two sets, two live sets, two remote sets, a hundred guests on the program this week. This is day, second full day for us. We were here. Exactly. The number of announcements has my head spinning typical for AWS. So many. We won't even recap all the pre, but really from a thematic perspective. One of the things that I think we've both noticed is that the theme here is if you're not a data-driven company, if you don't have a data company at your core, you're going to be left behind. >>Yeah, yeah. That was that. That came through in a Swami's keynote this morning. That was the key setup for the announcements of all of the tools that are being rolled out to be able to achieve those goals. >>And we talked to, you know, we've had a number of AWS folks on the program this week, customers partners, and from another theme is this customer obsession, this customer centricity, really working backwards from the customer first to help them understand how do we, how do we build a data core? How do we build our redefine reinvent, Hubba reinvent our business around a data strategy because there is a competitor in the rear view mirror in every industry waiting to take place. If somebody doesn't have. And they really were very clear with, if you don't, if you're not a data company, now you're going to be left behind. >>Yeah, absolutely. The whole, it, especially the keynote this morning, it felt like a, it felt like they were very, very careful to set up the pins and then knock them all down. Talking about exactly what customers want to do, what customers have said in surveys they need to do. Uh, and then, oh, by the way, we have all of these tools. So exactly what you mentioned, not talking about technology first, but talking about the requirements the customers have, where customers say they want to be, where customers need to be, and then proving out that in fact, AWS has the entire tool kit. Uh, I, I mean it is mind boggling. Uh, I, uh, I wouldn't want to be another cloud this morning, waking up and seeing that it looks like I fell months behind somehow. Why not? While I was sleeping. >>One of the things that you and I were talking about as we walked over here this morning is that it's no wonder AWS. And they say they don't look in their rear view mirror. They don't need to. One of the things the magically that Adam talked about in his keynote yesterday was I kept saying the phrase, but you wanted more, you being, the customer did this, but you wanted more. So we did this, but you wanted more. So we did this, the fact that they start backwards, that customer flywheel. The thing that another theme that got me is all of the innovation that's coming out of AWS that comes from the customers, enables AWS to do so much more enables customers across every industry to do so much more and to competitively differentiate themselves if they truly lean in to the power of AWS and the partnership that can deliver. >>Yeah, no, no completely agree. And you know, from, from sort of an analysis perspective, um, I think it's interesting, uh, part of the theme this morning had to do with artificial intelligence and, um, and I, I just personally like to think of it more as augmented intelligence, uh, cause essentially what they're doing is they're building tools that are powerful, that, uh, that amplify human intelligence, it's not that AI replaces human intelligence, maybe it does for certain things, but machine learning, most of that is really machine training, humans, training the machines. Yeah. We'll get to a point. Yes. There are science experiments where, um, where the computer has learned on its own. Uh, but essentially all of the pieces that Swami was talking about putting together today, sources of data, various databases, everything together that equals an amazing amount of opportunity for human beings moving forward. So this isn't about machine technology, replacing the value of what people do, data scientists. I mean, I'm, I'm, I'm texting my kids data science used to be plastics right during their graduate. Now it's all about data science be a data scientist. Well, >>Another thing from a data perspective is the idea of data democratization. We've talked. We talk about that all the time. It's interesting. We were, I was talking about data mesh yesterday as, as a really facilitator and unlocking technical debt facilitating the democratization. So that because data is so scattered these days, I mean, it's one of the things that we saw when the pandemic stuck was people scattered. We're still scattered data sources are only proliferating data volume is only proliferating. Customers need to be able to harness the value of it in real time. I think another thing we learned in the pandemic is of there is no real-time is no longer a nice to have. It is absolutely essential. We've also seen the acceleration and talked a lot in the last couple of days about the acceleration of cloud adoption. And just thinking about the sheer volume of announcements. The last couple of days that AWS has achieved during a global pandemic is phenomenal. Obviously we saw every business have no choice, but to go digital and those that aren't here anymore, weren't able to do that fast enough. And with the scale at which they need to know, meet customer demand. >>Yeah. When you talk democratization often, it's a question of not only can you do it technically, but what is the cost associated with doing it? So when you lower the barrier to entry and you lower the friction associated with all sorts of transactions, not just financial transactions, but a transaction being teasing important information out of a pile of otherwise meaningless data, when you lower the cost of that, like what AWS is doing with all of these tools. I mean, really that's the, that's the end result of this? Uh, I look at these things through the lens of an economist and uh, and it's about decreasing friction and increasing efficiency. And when you do that, you can't imagine what the effect of that is on the entire world, just by lowering the cost of teasing out important information from otherwise useless data. Yeah. >>And another thing that we talked about the vision of this company, this is a 10th reinvent, 15 years of AWS, but the 10th reinvent and wanted to get your take on the last, you know, the first 15 years we'll say of AWS division, obviously this is the first year with a new head, new CEO, Adam. So Lipski, and, uh, we're, we're used to the, the JASSI era. This is now we're looking at like, what's the next 10 years of cloud innovation gonna look like at AWS? >>Yeah. I get a chill when you ask that question. I like, I was there working with Amazon before there was an AWS. So in the early two thousands, uh, working at a very large data storage company and we're working with then Amazon to help them figure out how they might someday put together something that they could not only use for themselves, but also rent out to others, sort of this novel idea. Um, and so that feels like yesterday to me, um, the idea that AWS was ECE to S3 science experiment, not ready for enterprise. All of that feels like yesterday. Those claims most people at the time realized that they were going to be disruptive. I don't think a lot of people realized how relatively quickly it was going to happen. And I don't think anyone could have predicted that in 2021, they would be as dominant as they are with such a small share of the overall it market. >>So onstage, they'll say five to 15% of it is in the cloud, right? Not five to 15% is in AWS, right. Five to 15% is in the cloud. So you think that AWS is a large organization firing on all cylinders. Now they're just at the beginning of addressing the total addressable market. So I, you know, um, uh, Dave Vellante, uh, had a great article on the subject of the natural inclination for people to worry when certain things get to a certain size. Um, I think that that's going to be a part of the conversation moving forward. Uh, uh, you know, just what does it mean when so much critical infrastructure is being handled by a single entity? Uh, from a user's perspective though, Hey, it's all good. The more they integrate, the more they bring things together, the easier they make my life as an it practitioner. So I, I don't, I have no idea five years from now what we're going to be looking at. >>No, and they, you know, one of the things that, that I think I've done maybe three or four reinvents and the, one of the themes always, or, or really kind of taglines is early innings. We're S we're still early days. You talked about, you know, when the 15% of it spending, being in the cloud, they have their, and they're so massive, but there's so much the Tam is, is enormous, absolutely enormous. And we're seeing, you know, the need for as data volumes, we're only going to continue to proliferate. We have to have the artificial intelligence and the machine learning to help the humans process the data, to be able to unlock all that value. Otherwise organizations, risk being left behind when they simply cannot get value out of the data either at all, or fast enough. >>Well, you know, you know, let me make one prediction actually. Okay. Okay. Um, I think that the definition of cloud, which is different in a lot of people's minds already is increasingly going to be broad broadened out to include what AWS at a certain period of time said, didn't matter. And that was what's going on on premises. It was clear that in the early days, AWS adopted an attitude that their, their stratospheric growth could be maintained on the back of net. New stuff. Only let the stuff on, on premises die. The stickiness associated with that on premises stuff has caused them to change direction over time in a very, very smart way. And so my prediction is that in five years, we might not be using the term cloud at all. We might be back to just calling it all it, because when you think about it, cloud represents this idea that the physical location isn't important, it's all virtualized. >>So if that's the case, why does it matter if it's in a data center that I own, or a colo or data center that AWS owns, it doesn't matter. So when you look at things like snowball and outpost and all of these other things where they're taking essentially AWS, and they're sticking it wherever it needs to be fit for function, you have latency, sovereignty, govern governance issues, fine. We'll run it as a black box in your data center. You don't touch it, you consume it, you interact with it just like it's in an AWS data center. So, so that's my prediction is that it's not that, you know, w we're going to start thinking about this comment that X percentage is in the cloud as being sort of like a, well, what do you even mean by that? That's a good point. Is it in the cloud? If it's in an outpost in my data center, right. Is that included in the 15% or does it not? Is that on-prem or isn't it? I think, I think within five years, we're all going to agree that it just doesn't matter. It's all it. And I think AWS will be still dominating the it space. >>Interesting prediction. I liked that you were bold in that, you know it, but it also shows what you talked about, shows how focused AWS is on the customer, really leaning into everything in the public cloud, you know, no more on-prem years ago. And, and then what, what is outpost announced two years ago? So it's, I think it's been a couple years to, >>Yeah, I confused. I can. I confuse announcements with deployments and things like that, but it's been years it's been years now. And I guarantee you that inside the halls of AWS, there were people who said, no, no, no, we are not going to be involved with boxes being shipped to raise data center floors. But like you said, customer it's about the customer, what the customer needs. And the reason why there is, you know, if the number is 85%, whatever the number is, um, there, there's a reason why that still remains in on premises data centers. And it's not primarily because it, people are stupid slash fearful. There are good reasons for it. You know, it has to do with the ROI of going through modernization and migration. And so what does AWS do? They figure out how to make the math work so that it makes sense for people to do things. >>And we've been talking for the last couple of days with a lot of the really, really important we'll continue to the really, really important service providers that are partners because AWS and the rest of the cloud providers can come up with as much technology as they want to, but they need partners to bridge the divide, right? To tease out the human value, the business value from the technology they provide. So again, opportunity people who look at AWS and say, wow, that's scary. They're so big. No, no, no, no, no. They're creating an ecosystem of opportunity around them. So that's just, >>Yeah, no, their ecosystem is huge. We talked about this cube being sponsored by AMD. What we talked about, the ecosystem of partners at the beginning of the segment, it's, it's, it's massive. We've talked with a lot of different partners, huge partners, smaller partners, overall, at the end of the day, what we see, what they create, all of the technologies that they're creating in response to customer needs. You know, we have to address it there. That the more data we have, the more things grow, the more complex and complexity has to be dealt with. And there's a lot of their ecosystem partners that are really have business models designed around helping customers. What does seamless actually mean? How do you actually become efficient? How do we do this in a frictionless way? Those are all great marketing terms, but they need this ecosystem of partners to help the customers actually make those reality. Right? And otherwise they're just words on a, on a piece of paper >>And it's not easy. Implementation is not easy. Sales is easy, implementation, not easy, right. And, uh, you know, the, the, the risk associated with failure can be very, very high, especially from a financial perspective. You know, the endless project that you're sinking money into that doesn't deliver any ROI just doesn't work. No, you can't, you can't do it. So, yeah, I, I I'm, I'm blown away by just today. Today's keynote going through knocking down those pins one just one after the other. Oh, CQL got it now, you know, for, for, for certain environments where before, yeah. We've got Oracle database support for this function. Now we have SQL also, it's just, you know, it's like this thousand by thousand grid check box, right? Check, check, check, check, check. And I can imagine all of those service providers just salivating, because they're thinking, oh my gosh, practice new practice that we need to spin up to be able to do this. Yep. Which points to a huge challenge. And that is actual practitioners where the rubber meets the road. All of these things require smart people to be able to implement. >>And the good news is a lot of those smart people are on the program this week here, you're going to be able to get, to hear so much more about the innovations that AWS and its ecosystem of partners are doing. We have a LA a full day again today, Dave, and again, tomorrow looking forward to hearing about the conversations that you had, I'm looking forward to interviewing guests and we look forward to having you continue to watch the cube, the global leader in live tech coverage.

(upbeat music) >> Welcome back to AWS storage day. This is the Cubes continuous coverage. My name is Dave Vellante, and we're going to talk about file storage. 80% of the world's data is in unstructured storage. And most of that is in file format. Devs want infrastructure as code. They want to be able to provision and manage storage through an API, and they want that cloud agility. They want to be able to scale up, scale down, pay by the drink. And the big news of storage day was really the partnership, deep partnership between AWS and NetApp. And with me to talk about that as Ed Naim, who's the general manager of Amazon FSX and Anthony Lye, executive vice president and GM of public cloud at NetApp. Two Cube alums. Great to see you guys again. Thanks for coming on. >> Thanks for having us. >> So Ed, let me start with you. You launched FSX 2018 at re-invent. How has it being used today? >> Well, we've talked about MSX on the Cube before Dave, but let me start by recapping that FSX makes it easy to, to launch and run fully managed feature rich high performance file storage in the cloud. And we built MSX from the ground up really to have the reliability, the scalability you were talking about. The simplicity to support, a really wide range of workloads and applications. And with FSX customers choose the file system that powers their file storage with full access to the file systems feature sets, the performance profiles and the data management capabilities. And so since reinvent 2018, when we launched this service, we've offered two file system choices for customers. So the first was a Windows file server, and that's really storage built on top of Windows server designed as a really simple solution for Windows applications that require shared storage. And then Lustre, which is an open source file system that's the world's most popular high-performance file system. And the Amazon FSX model has really resonated strongly with customers for a few reasons. So first, for customers who currently managed network attached storage or NAS on premises, it's such an easy path to move their applications and their application data to the cloud. FSX works and feels like the NAZA appliances that they're used to, but added to all of that are the benefits of a fully managed cloud service. And second, for builders developing modern new apps, it helps them deliver fast, consistent experiences for Windows and Linux in a simple and an agile way. And then third, for research scientists, its storage performance and its capabilities for dealing with data at scale really make it a no-brainer storage solution. And so as a result, the service is being used for a pretty wide spectrum of applications and workloads across industries. So I'll give you a couple of examples. So there's this class of what we call common enterprise IT use cases. So think of things like end user file shares the corporate IT applications, content management systems, highly available database deployments. And then there's a variety of common line of business and vertical workloads that are running on FSX as well. So financial services, there's a lot of modeling and analytics, workloads, life sciences, a lot of genomics analysis, media and entertainment rendering and transcoding and visual effects, automotive. We have a lot of electronic control units, simulations, and object detection, semiconductor, a lot of EDA, electronic design automation. And then oil and gas, seismic data processing, pretty common workload in FSX. And then there's a class of, of really ultra high performance workloads that are running on FSX as well. Think of things like big data analytics. So SAS grid is a, is a common application. A lot of machine learning model training, and then a lot of what people would consider traditional or classic high performance computing or HPC. >> Great. Thank you for that. Just quick follow-up if I may, and I want to bring Anthony into the conversation. So why NetApp? This is not a Barney deal, this was not elbow grease going into a Barney deal. You know, I love you. You love me. We do a press release. But, but why NetApp? Why ONTAP? Why now? (momentary silence) Ed, that was to you. >> Was that a question for Anthony? >> No, for you Ed. And then I want to bring Anthony in. >> Oh, Sure. Sorry. Okay. Sure. Yeah, I mean it, uh, Dave, it really stemmed from both companies realizing a combined offering would be highly valuable to and impactful for customers. In reality, we started collaborating in Amazon and NetApp on the service probably about two years ago. And we really had a joint vision that we wanted to provide AWS customers with the full power of ONTAP. The complete ONTAP with every capability and with ONTAP's full performance, but fully managed an offer as a full-blown AWS native service. So what that would mean is that customers get all of ONTAP's benefits along with the simplicity and the agility, the scalability, the security, and the reliability of an AWS service. >> Great. Thank you. So Anthony, I have watched NetApp reinvent itself started in workstations, saw you go into the enterprise, I saw you lean into virtualization, you told me at least two years, it might've been three years ago, Dave, we are going all in on the cloud. We're going to lead this next, next chapter. And so, I want you to bring in your perspective. You're re-inventing NetApp yet again, you know, what are your thoughts? >> Well, you know, NetApp and AWS have had a very long relationship. I think it probably dates now about nine years. And what we really wanted to do in NetApp was give the most important constituent of all an experience that helped them progress their business. So ONTAP, you know, the industry's leading shared storage platform, we wanted to make sure that in AWS, it was as good as it was on premise. We love the idea of giving customers this wonderful concept of symmetry. You know, ONTAP runs the biggest applications in the largest enterprises on the planet. And we wanted to give not just those customers an opportunity to embrace the Amazon cloud, but we wanted to also extend the capabilities of ONTAP through FSX to a new customer audience. Maybe those smaller companies that didn't really purchase on premise infrastructure, people that were born in the cloud. And of course, this gives us a great opportunity to present a fully managed ONTAP within the FSX platform, to a lot of non NetApp customers, to our competitors customers, Dave, that frankly, haven't done the same as we've done. And I think we are the benefactors of it, and we're in turn passing that innovation, that, that transformation onto the, to the customers and the partners. >> You know, one is the, the key aspect here is that it's a managed service. I don't think that could be, you know, overstated. And the other is that the cloud nativeness of this Anthony, you mentioned here, our marketplace is great, but this is some serious engineering going on here. So Ed maybe, maybe start with the perspective of a managed service. I mean, what does that mean? The whole ball of wax? >> Yeah. I mean, what it means to a customer is they go into the AWS console or they go to the AWS SDK or the, the AWS CLI and they are easily able to provision a resource provision, a file system, and it automatically will get built for them. And if there's nothing that they need to do at that point, they get an endpoint that they have access to the file system from and that's it. We handle patching, we handle all of the provisioning, we handle any hardware replacements that might need to happen along the way. Everything is fully managed. So the customer really can focus not on managing their file system, but on doing all of the other things that they, that they want to do and that they need to do. >> So. So Anthony, in a way you're disrupting yourself, which is kind of what you told me a couple of years ago. You're not afraid to do that because if we don't do it, somebody else is going to do it because you're, you're used to the old days, you're selling a box and you say, we'll see you next time, you know, three or four years. So from, from your customer's standpoint, what's their reaction to this notion of a managed service and what does it mean to NetApp? >> Well, so I think the most important thing it does is it gives them investment protection. The wonderful thing about what we've built with Amazon in the FSX profile is it's a complete ONTAP. And so one ONTAP cluster on premise can immediately see and connect to an ONTAP environment under FSX. We can then establish various different connectivities. We can use snap mirror technologies for disaster recovery. We can use efficient data transfer for things like dev test and backup. Of course, the wonderful thing that we've done, that we've gone beyond, above and beyond, what anybody else has done is we want to make sure that the actual primary application itself, one that was sort of built using NAS built in an on-premise environment an SAP and Oracle, et cetera, as Ed said, that we can move those over and have the confidence to run the application with no changes on an Amazon environment. So, so what we've really done, I think for customers, the NetApp customers, the non NetApp customers, is we've given them an enterprise grade shared storage platform that's as good in an Amazon cloud as it was in an on-premise data center. And that's something that's very unique to us. >> Can we talk a little bit more about those, those use cases? You know, both, both of you. What are you seeing as some of the more interesting ones that you can share? Ed, maybe you can start. >> Yeah, happy to. The customer discussions that we've, we've been in have really highlighted four cases, four use cases the customers are telling us they'll use a service for. So maybe I'll cover two and maybe Anthony can cover the other two. So, the first is application migrations. And customers are increasingly looking to move their applications to AWS. And a lot of those are applications work with file storage today. And so we're talking about applications like SAP. We're talking about relational databases like SQL server and Oracle. We're talking about vertical applications like Epic and the healthcare space. As another example, lots of media entertainment, rendering, and transcoding, and visual effects workload. workflows require Windows, Linux, and Mac iOS access to the same set of data. And what application administrators really want is they want the easy button. They want fully featured file storage that has the same capabilities, the same performance that their applications are used to. Has extremely high availability and durability, and it can easily enable them to meet compliance and security needs with a robust set of data protection and security capabilities. And I'll give you an example, Accenture, for example, has told us that a key obstacle their clients face when migrating to the cloud is potentially re-architecting their applications to adopt new technologies. And they expect that Amazon FSX for NetApp ONTAP will significantly accelerate their customers migrations to the cloud. Then a second one is storage migrations. So storage admins are increasingly looking to extend their on-premise storage to the cloud. And why they want to do that is they want to be more agile and they want to be responsive to growing data sets and growing workload needs. They want to last to capacity. They want the ability to spin up and spin down. They want easy disaster recovery across geographically isolated regions. They want the ability to change performance levels at any time. So all of this goodness that they get from the cloud is what they want. And more and more of them also are looking to make their company's data accessible to cloud services for analytics and processing. So services like ECS and EKS and workspaces and App Stream and VMware cloud and SageMaker and orchestration services like parallel cluster and AWS batch. But at the same time, they want all these cloud benefits, but at the same time, they have established data management workflows, and they build processes and they've built automation, leveraging APIs and capabilities of on-prem NAS appliances. It's really tough for them to just start from scratch with that stuff. So this offering provides them the best of both worlds. They get the benefits of the cloud with the NAS data management capabilities that they're used to. >> Right. >> Ed: So Anthony, maybe, do you want to talk about the other two? >> Well, so, you know, first and foremost, you heard from Ed earlier on the, the, the FSX sort of construct and how successful it's been. And one of the real reasons it's been so successful is, it takes advantage of all of the latest storage technologies, compute technologies, networking technologies. What's great is all of that's hidden from the user. What FSX does is it delivers a service. And what that means for an ONTAP customer is you're going to have ONTAP with an SLA and an SLM. You're going to have hundreds of thousands of IOPS available to you and sub-millisecond latencies. What's also really important is the design for FSX and app ONTAP was really to provide consistency on the NetApp API and to provide full access to ONTAP from the Amazon console, the Amazon SDK, or the Amazon CLI. So in this case, you've got this wonderful benefit of all of the, sort of the 29 years of innovation of NetApp combined with all the innovation AWS, all presented consistently to a customer. What Ed said, which I'm particularly excited about, is customers will see this just as they see any other AWS service. So if they want to use ONTAP in combination with some incremental compute resources, maybe with their own encryption keys, maybe with directory services, they may want to use it with other services like SageMaker. All of those things are immediately exposed to Amazon FSX for the app ONTAP. We do some really intelligent things just in the storage layer. So, for example, we do intelligent tiering. So the customer is constantly getting the, sort of the best TCO. So what that means is we're using Amazon's S3 storage as a tiered service, so that we can back off code data off of the primary file system to give the customer the optimal capacity, the optimal throughput, while maintaining the integrity of the file system. It's the same with backup. It's the same with disaster recovery, whether we're operating in a hybrid AWS cloud, or we're operating in an AWS region or across regions. >> Well, thank you. I think this, this announcement is a big deal for a number of reasons. First of all, it's the largest market. Like you said, you're the gold standard. I'll give you that, Anthony, because you guys earned it. And so it's a large market, but you always had to make previously, you have to make trade-offs. Either I could do file in the cloud, but I didn't get the rich functionality that, you know, NetApp's mature stack brings, or, you know, you could have wrapped your stack in Kubernete's container and thrown it into the cloud and hosted it there. But now that it's a managed service and presumably you're underneath, you're taking advantage. As I say, my inference is there's some serious engineering going on here. You're taking advantage of some of the cloud native capabilities. Yeah, maybe it's the different, you know, ECE two types, but also being able to bring in, we're, we're entering a new data era with machine intelligence and other capabilities that we really didn't have access to last decade. So I want to, I want to close with, you know, give you guys the last word. Maybe each of you could give me your thoughts on how you see this partnership of, for the, in the future. Particularly from a customer standpoint. Ed, maybe you could start. And then Anthony, you can bring us home. >> Yeah, well, Anthony and I and our teams have gotten to know each other really well in, in ideating around what this experience will be and then building the product. And, and we have this, this common vision that it is something that's going to really move the needle for customers. Providing the full ONTAP experience with the power of a, of a native AWS service. So we're really excited. We're, we're in this for the long haul together. We have, we've partnered on everything from engineering, to product management, to support. Like the, the full thing. This is a co-owned effort, a joint effort backed by both companies. And we have, I think a pretty remarkable product on day one, one that I think is going to delight customers. And we have a really rich roadmap that we're going to be building together over, over the years. So I'm excited about getting this in customer's hands. >> Great, thank you. Anthony, bring us home. >> Well, you know, it's one of those sorts of rare chances where you get to do something with Amazon that no one's ever done. You know, we're sort of sitting on the inside, we are a peer of theirs, and we're able to develop at very high speeds in combination with them to release continuously to the customer base. So what you're going to see here is rapid innovation. You're going to see a whole host of new services. Services that NetApp develops, services that Amazon develops. And then the whole ecosystem is going to have access to this, whether they're historically built on the NetApp APIs or increasingly built on the AWS APIs. I think you're going to see orchestrations. I think you're going to see the capabilities expand the overall opportunity for AWS to bring enterprise applications over. For me personally, Dave, you know, I've demonstrated yet again to the NetApp customer base, how much we care about them and their future. Selfishly, you know, I'm looking forward to telling the story to my competitors, customer base, because they haven't done it. So, you know, I think we've been bold. I think we've been committed as you said, three and a half years ago, I promised you that we were going to do everything we possibly could. You know, people always say, you know, what's, what's the real benefit of this. And at the end of the day, customers and partners will be the real winners. This, this innovation, this sort of, as a service I think is going to expand our market, allow our customers to do more with Amazon than they could before. It's one of those rare cases, Dave, where I think one plus one equals about seven, really. >> I love the vision and excited to see the execution Ed and Anthony, thanks so much for coming back in the Cube. Congratulations on getting to this point and good luck. >> Anthony and Ed: Thank you. >> All right. And thank you for watching everybody. This is Dave Vellante for the Cube's continuous coverage of AWS storage day. Keep it right there. (upbeat music)

>> Hi, I'm Natalie Ehrlich and welcome to the AWS startup showcase presented by The Cube. We have an amazing lineup of great guests who will share their insights on the latest innovations and solutions and leveraging cloud scale data in AI, security and life sciences. And now we're joined by the co-founders and co-CEOs of The Cube, Dave Vellante and John Furrier. Thank you gentlemen for joining me. >> Hey Natalie. >> Hey Natalie. >> How are you doing. Hey John. >> Well, I'd love to get your insights here, let's kick it off and what are you looking forward to. >> Dave, I think one of the things that we've been doing on the cube for 11 years is looking at the signal in the marketplace. I wanted to focus on this because AI is cutting across all industries. So we're seeing that with cybersecurity and life sciences, it's the first time we've had a life sciences track in the showcase, which is amazing because it shows that growth of the cloud scale. So I'm super excited by that. And I think that's going to showcase some new business models and of course the keynotes Ali Ghodsi, who's the CEO Data bricks pushing a billion dollars in revenue, clear validation that startups can go from zero to a billion dollars in revenues. So that should be really interesting. And of course the top venture capitalists coming in to talk about what the enterprise dynamics are all about. And what about you, Dave? >> You know, I thought it was an interesting mix and choice of startups. When you think about, you know, AI security and healthcare, and I've been thinking about that. Healthcare is the perfect industry, it is ripe for disruption. If you think about healthcare, you know, we all complain how expensive it is not transparent. There's a lot of discussion about, you know, can everybody have equal access that certainly with COVID the staff is burned out. There's a real divergence and diversity of the quality of healthcare and you know, it all results in patients not being happy, and I mean, if you had to do an NPS score on the patients and healthcare will be pretty low, John, you know. So when I think about, you know, AI and security in the context of healthcare in cloud, I ask questions like when are machines going to be able to better meet or make better diagnoses than doctors? And that's starting. I mean, it's really in assistance putting into play today. But I think when you think about cheaper and more accurate image analysis, when you think about the overall patient experience and trust and personalized medicine, self-service, you know, remote medicine that we've seen during the COVID pandemic, disease tracking, language translation, I mean, there are so many things where the cloud and data, and then it can help. And then at the end of it, it's all about, okay, how do I authenticate? How do I deal with privacy and personal information and tamper resistance? And that's where the security play comes in. So it's a very interesting mix of startups. I think that I'm really looking forward to hearing from... >> You know Natalie one of the things we talked about, some of these companies, Dave, we've talked a lot of these companies and to me the business model innovations that are coming out of two factors, the pandemic is kind of coming to an end so that accelerated and really showed who had the right stuff in my opinion. So you were either on the wrong side or right side of history when it comes to the pandemic and as we look back, as we come out of it with clear growth in certain companies and certain companies that adopted let's say cloud. And the other one is cloud scale. So the focus of these startup showcases is really to focus on how startups can align with the enterprise buyers and create the new kind of refactoring business models to go from, you know, a re-pivot or refactoring to more value. And the other thing that's interesting is that the business model isn't just for the good guys. If you look at say ransomware, for instance, the business model of hackers is gone completely amazing too. They're kicking it but in terms of revenue, they have their own they're well-funded machines on how to extort cash from companies. So there's a lot of security issues around the business model as well. So to me, the business model innovation with cloud-scale tech, with the pandemic forcing function, you've seen a lot of new kinds of decision-making in enterprises. You seeing how enterprise buyers are changing their decision criteria, and frankly their existing suppliers. So if you're an old guard supplier, you're going to be potentially out because if you didn't deliver during the pandemic, this is the issue that everyone's talking about. And it's kind of not publicized in the press very much, but this is actually happening. >> Well thank you both very much for joining me to kick off our AWS startup showcase. Now we're going to go to our very special guest Ali Ghodsi and John Furrier will seat with him for a fireside chat and Dave and I will see you on the other side. >> Okay, Ali great to see you. Thanks for coming on our AWS startup showcase, our second edition, second batch, season two, whatever we want to call it it's our second version of this new series where we feature, you know, the hottest startups coming out of the AWS ecosystem. And you're one of them, I've been there, but you're not a startup anymore, you're here pushing serious success on the revenue side and company. Congratulations and great to see you. >> Likewise. Thank you so much, good to see you again. >> You know I remember the first time we chatted on The Cube, you weren't really doing much software revenue, you were really talking about the new revolution in data. And you were all in on cloud. And I will say that from day one, you were always adamant that it was cloud cloud scale before anyone was really talking about it. And at that time it was on premises with Hadoop and those kinds of things. You saw that early. I remember that conversation, boy, that bet paid out great. So congratulations. >> Thank you so much. >> So I've got to ask you to jump right in. Enterprises are making decisions differently now and you are an example of that company that has gone from literally zero software sales to pushing a billion dollars as it's being reported. Certainly the success of Data bricks has been written about, but what's not written about is the success of how you guys align with the changing criteria for the enterprise customer. Take us through that and these companies here are aligning the same thing and enterprises want to change. They want to be in the right side of history. What's the success formula? >> Yeah. I mean, basically what we always did was look a few years out, the how can we help these enterprises, future proof, what they're trying to achieve, right? They have, you know, 30 years of legacy software and, you know baggage, and they have compliance and regulations, how do we help them move to the future? So we try to identify those kinds of secular trends that we think are going to maybe you see them a little bit right now, cloud was one of them, but it gets more and more and more. So we identified those and there were sort of three or four of those that we kind of latched onto. And then every year the passes, we're a little bit more right. Cause it's a secular trend in the market. And then eventually, it becomes a force that you can't kind of fight anymore. >> Yeah. And I just want to put a plug for your clubhouse talks with Andreessen Horowitz. You're always on clubhouse talking about, you know, I won't say the killer instinct, but being a CEO in a time where there's so much change going on, you're constantly under pressure. It's a lonely job at the top, I know that, but you've made some good calls. What was some of the key moments that you can point to, where you were like, okay, the wave is coming in now, we'd better get on it. What were some of those key decisions? Cause a lot of these startups want to be in your position, and a lot of buyers want to take advantage of the technology that's coming. They got to figure it out. What was some of those key inflection points for you? >> So if you're just listening to what everybody's saying, you're going to miss those trends. So then you're just going with the stream. So, Juan you mentioned that cloud. Cloud was a thing at the time, we thought it's going to be the thing that takes over everything. Today it's actually multi-cloud. So multi-cloud is a thing, it's more and more people are thinking, wow, I'm paying a lot's to the cloud vendors, do I want to buy more from them or do I want to have some optionality? So that's one. Two, open. They're worried about lock-in, you know, lock-in has happened for many, many decades. So they want open architectures, open source, open standards. So that's the second one that we bet on. The third one, which you know, initially wasn't sort of super obvious was AI and machine learning. Now it's super obvious, everybody's talking about it. But when we started, it was kind of called artificial intelligence referred to robotics, and machine learning wasn't a term that people really knew about. Today, it's sort of, everybody's doing machine learning and AI. So betting on those future trends, those secular trends as we call them super critical. >> And one of the things that I want to get your thoughts on is this idea of re-platforming versus refactoring. You see a lot being talked about in some of these, what does that even mean? It's people trying to figure that out. Re-platforming I get the cloud scale. But as you look at the cloud benefits, what do you say to customers out there and enterprises that are trying to use the benefits of the cloud? Say data for instance, in the middle of how could they be thinking about refactoring? And how can they make a better selection on suppliers? I mean, how do you know it used to be RFP, you deliver these speeds and feeds and you get selected. Now I think there's a little bit different science and methodology behind it. What's your thoughts on this refactoring as a buyer? What do I got to do? >> Well, I mean let's start with you said RFP and so on. Times have changed. Back in the day, you had to kind of sign up for something and then much later you're going to get it. So then you have to go through this arduous process. In the cloud, would pay us to go model elasticity and so on. You can kind of try your way to it. You can try before you buy. And you can use more and more. You can gradually, you don't need to go in all in and you know, say we commit to 50,000,000 and six months later to find out that wow, this stuff has got shelf where it doesn't work. So that's one thing that has changed it's beneficial. But the second thing is, don't just mimic what you had on prem in the cloud. So that's what this refactoring is about. If you had, you know, Hadoop data lake, now you're just going to have an S3 data lake. If you had an on-prem data warehouse now you just going to have a cloud data warehouse. You're just repeating what you did on prem in the cloud, architected for the future. And you know, for us, the most important thing that we say is that this lake house paradigm is a cloud native way of organizing your data. That's different from how you would do things on premises. So think through what's the right way of doing it in the cloud. Don't just try to copy paste what you had on premises in the cloud. >> It's interesting one of the things that we're observing and I'd love to get your reaction to this. Dave a lot** and I have been reporting on it is, two personas in the enterprise are changing their organization. One is I call IT ops or there's an SRE role developing. And the data teams are being dismantled and being kind of sprinkled through into other teams is this notion of data, pipelining being part of workflows, not just the department. Are you seeing organizational shifts in how people are organizing their resources, their human resources to take advantage of say that the data problems that are need to being solved with machine learning and whatnot and cloud-scale? >> Yeah, absolutely. So you're right. SRE became a thing, lots of DevOps people. It was because when the cloud vendors launched their infrastructure as a service to stitch all these things together and get it all working you needed a lot of devOps people. But now things are maturing. So, you know, with vendors like Data bricks and other multi-cloud vendors, you can actually get much higher level services where you don't need to necessarily have lots of lots of DevOps people that are themselves trying to stitch together lots of services to make this work. So that's one trend. But secondly, you're seeing more data teams being sort of completely ubiquitous in these organizations. Before it used to be you have one data team and then we'll have data and AI and we'll be done. ' It's a one and done. But that's not how it works. That's not how Google, Facebook, Twitter did it, they had data throughout the organization. Every BU was empowered. It's sales, it's marketing, it's finance, it's engineering. So how do you embed all those data teams and make them actually run fast? And you know, there's this concept of a data mesh which is super important where you can actually decentralize and enable all these teams to focus on their domains and run super fast. And that's really enabled by this Lake house paradigm in the cloud that we're talking about. Where you're open, you're basing it on open standards. You have flexibility in the data types and how they're going to store their data. So you kind of provide a lot of that flexibility, but at the same time, you have sort of centralized governance for it. So absolutely things are changing in the market. >> Well, you're just the professor, the masterclass right here is amazing. Thanks for sharing that insight. You're always got to go out of date and that's why we have you on here. You're amazing, great resource for the community. Ransomware is a huge problem, it's now the government's focus. We're being attacked and we don't know where it's coming from. This business models around cyber that's expanding rapidly. There's real revenue behind it. There's a data problem. It's not just a security problem. So one of the themes in all of these startup showcases is data is ubiquitous in the value propositions. One of them is ransomware. What's your thoughts on ransomware? Is it a data problem? Does cloud help? Some are saying that cloud's got better security with ransomware, then say on premise. What's your vision of how you see this ransomware problem being addressed besides the government taking over? >> Yeah, that's a great question. Let me start by saying, you know, we're a data company, right? And if you say you're a data company, you might as well just said, we're a privacy company, right? It's like some people say, well, what do you think about privacy? Do you guys even do privacy? We're a data company. So yeah, we're a privacy company as well. Like you can't talk about data without talking about privacy. With every customer, with every enterprise. So that's obviously top of mind for us. I do think that in the cloud, security is much better because, you know, vendors like us, we're investing so much resources into security and making sure that we harden the infrastructure and, you know, by actually having all of this infrastructure, we can monitor it, detect if something is, you know, an attack is happening, and we can immediately sort of stop it. So that's different from when it's on prem, you have kind of like the separated duties where the software vendor, which would have been us, doesn't really see what's happening in the data center. So, you know, there's an IT team that didn't develop the software is responsible for the security. So I think things are much better now. I think we're much better set up, but of course, things like cryptocurrencies and so on are making it easier for people to sort of hide. There decentralized networks. So, you know, the attackers are getting more and more sophisticated as well. So that's definitely something that's super important. It's super top of mind. We're all investing heavily into security and privacy because, you know, that's going to be super critical going forward. >> Yeah, we got to move that red line, and figure that out and get more intelligence. Decentralized trends not going away it's going to be more of that, less of the centralized. But centralized does come into play with data. It's a mix, it's not mutually exclusive. And I'll get your thoughts on this. Architectural question with, you know, 5G and the edge coming. Amazon's got that outpost stringent, the wavelength, you're seeing mobile world Congress coming up in this month. The focus on processing data at the edge is a huge issue. And enterprises are now going to be commercial part of that. So architecture decisions are being made in enterprises right now. And this is a big issue. So you mentioned multi-cloud, so tools versus platforms. Now I'm an enterprise buyer and there's no more RFPs. I got all this new choices for startups and growing companies to choose from that are cloud native. I got all kinds of new challenges and opportunities. How do I build my architecture so I don't foreclose a future opportunity. >> Yeah, as I said, look, you're actually right. Cloud is becoming even more and more something that everybody's adopting, but at the same time, there is this thing that the edge is also more and more important. And the connectivity between those two and making sure that you can really do that efficiently. My ask from enterprises, and I think this is top of mind for all the enterprise architects is, choose open because that way you can avoid locking yourself in. So that's one thing that's really, really important. In the past, you know, all these vendors that locked you in, and then you try to move off of them, they were highly innovative back in the day. In the 80's and the 90's, there were the best companies. You gave them all your data and it was fantastic. But then because you were locked in, they didn't need to innovate anymore. And you know, they focused on margins instead. And then over time, the innovation stopped and now you were kind of locked in. So I think openness is really important. I think preserving optionality with multi-cloud because we see the different clouds have different strengths and weaknesses and it changes over time. All right. Early on AWS was the only game that either showed up with much better security, active directory, and so on. Now Google with AI capabilities, which one's going to win, which one's going to be better. Actually, probably all three are going to be around. So having that optionality that you can pick between the three and then artificial intelligence. I think that's going to be the key to the future. You know, you asked about security earlier. That's how people detect zero day attacks, right? You ask about the edge, same thing there, that's where the predictions are going to happen. So make sure that you invest in AI and artificial intelligence very early on because it's not something you can just bolt on later on and have a little data team somewhere that then now you have AI and it's one and done. >> All right. Great insight. I've got to ask you, the folks may or may not know, but you're a professor at Berkeley as well, done a lot of great work. That's where you kind of came out of when Data bricks was formed. And the Berkeley basically was it invented distributed computing back in the 80's. I remember I was breaking in when Unix was proprietary, when software wasn't open you actually had the deal that under the table to get code. Now it's all open. Isn't the internet now with distributed computing and how interconnects are happening. I mean, the internet didn't break during the pandemic, which proves the benefit of the internet. And that's a positive. But as you start seeing edge, it's essentially distributed computing. So I got to ask you from a computer science standpoint. What do you see as the key learnings or connect the dots for how this distributed model will work? I see hybrids clearly, hybrid cloud is clearly the operating model but if you take it to the next level of distributed computing, what are some of the key things that you look for in the next five years as this starts to be completely interoperable, obviously software is going to drive a lot of it. What's your vision on that? >> Yeah, I mean, you know, so Berkeley, you're right for the gigs, you know, there was a now project 20, 30 years ago that basically is how we do things. There was a project on how you search in the very early on with Inktomi that became how Google and everybody else to search today. So workday was super, super early, sometimes way too early. And that was actually the mistake. Was that they were so early that people said that that stuff doesn't work. And then 20 years later you were invented. So I think 2009, Berkeley published just above the clouds saying the cloud is the future. At that time, most industry leaders said, that's just, you know, that doesn't work. Today, recently they published a research paper called, Sky Computing. So sky computing is what you get above the clouds, right? So we have the cloud as the future, the next level after that is the sky. That's one on top of them. That's what multi-cloud is. So that's a lot of the research at Berkeley, you know, into distributed systems labs is about this. And we're excited about that. Then we're one of the sky computing vendors out there. So I think you're going to see much more innovation happening at the sky level than at the compute level where you needed all those DevOps and SRE people to like, you know, build everything manually themselves. I can just see the memes now coming Ali, sky net, star track. You've got space too, by the way, space is another frontier that is seeing a lot of action going on because now the surface area of data with satellites is huge. So again, I know you guys are doing a lot of business with folks in that vertical where you starting to see real time data acquisition coming from these satellites. What's your take on the whole space as the, not the final frontier, but certainly as a new congested and contested space for, for data? >> Well, I mean, as a data vendor, we see a lot of, you know, alternative data sources coming in and people aren't using machine learning< AI to eat out signal out of the, you know, massive amounts of imagery that's coming out of these satellites. So that's actually a pretty common in FinTech, which is a vertical for us. And also sort of in the public sector, lots of, lots of, lots of satellites, imagery data that's coming. And these are massive volumes. I mean, it's like huge data sets and it's a super, super exciting what they can do. Like, you know, extracting signal from the satellite imagery is, and you know, being able to handle that amount of data, it's a challenge for all the companies that we work with. So we're excited about that too. I mean, definitely that's a trend that's going to continue. >> All right. I'm super excited for you. And thanks for coming on The Cube here for our keynote. I got to ask you a final question. As you think about the future, I see your company has achieved great success in a very short time, and again, you guys done the work, I've been following your company as you know. We've been been breaking that Data bricks story for a long time. I've been excited by it, but now what's changed. You got to start thinking about the next 20 miles stair when you look at, you know, the sky computing, you're thinking about these new architectures. As the CEO, your job is to one, not run out of money which you don't have to worry about that anymore, so hiring. And then, you got to figure out that next 20 miles stair as a company. What's that going on in your mind? Take us through your mindset of what's next. And what do you see out in that landscape? >> Yeah, so what I mentioned around Sky company optionality around multi-cloud, you're going to see a lot of capabilities around that. Like how do you get multi-cloud disaster recovery? How do you leverage the best of all the clouds while at the same time not having to just pick one? So there's a lot of innovation there that, you know, we haven't announced yet, but you're going to see a lot of it over the next many years. Things that you can do when you have the optionality across the different parts. And the second thing that's really exciting for us is bringing AI to the masses. Democratizing data and AI. So how can you actually apply machine learning to machine learning? How can you automate machine learning? Today machine learning is still quite complicated and it's pretty advanced. It's not going to be that way 10 years from now. It's going to be very simple. Everybody's going to have it at their fingertips. So how do we apply machine learning to machine learning? It's called auto ML, automatic, you know, machine learning. So that's an area, and that's not something that can be done with, right? But the goal is to eventually be able to automate a way the whole machine learning engineer and the machine learning data scientist altogether. >> You know it's really fun and talking with you is that, you know, for years we've been talking about this inside the ropes, inside the industry, around the future. Now people starting to get some visibility, the pandemics forced that. You seeing the bad projects being exposed. It's like the tide pulled out and you see all the scabs and bad projects that were justified old guard technologies. If you get it right you're on a good wave. And this is clearly what we're seeing. And you guys example of that. So as enterprises realize this, that they're going to have to look double down on the right projects and probably trash the bad projects, new criteria, how should people be thinking about buying? Because again, we talked about the RFP before. I want to kind of circle back because this is something that people are trying to figure out. You seeing, you know, organic, you come in freemium models as cloud scale becomes the advantage in the lock-in frankly seems to be the value proposition. The more value you provide, the more lock-in you get. Which sounds like that's the way it should be versus proprietary, you know, protocols. The protocol is value. How should enterprises organize their teams? Is it end to end workflows? Is it, and how should they evaluate the criteria for these technologies that they want to buy? >> Yeah, that's a great question. So I, you know, it's very simple, try to future proof your decision-making. Make sure that whatever you're doing is not blocking your in. So whatever decision you're making, what if the world changes in five years, make sure that if you making a mistake now, that's not going to bite you in about five years later. So how do you do that? Well, open source is great. If you're leveraging open-source, you can try it out already. You don't even need to talk to any vendor. Your teams can already download it and try it out and get some value out of it. If you're in the cloud, this pay as you go models, you don't have to do a big RFP and commit big. You can try it, pay the vendor, pay as you go, $10, $15. It doesn't need to be a million dollar contract and slowly grow as you're providing value. And then make sure that you're not just locking yourself in to one cloud or, you know, one particular vendor. As much as possible preserve your optionality because then that's not a one-way door. If it turns out later you want to do something else, you can, you know, pick other things as well. You're not locked in. So that's what I would say. Keep that top of mind that you're not locking yourself into a particular decision that you made today, that you might regret in five years. >> I really appreciate you coming on and sharing your with our community and The Cube. And as always great to see you. I really enjoy your clubhouse talks, and I really appreciate how you give back to the community. And I want to thank you for coming on and taking the time with us today. >> Thanks John, always appreciate talking to you. >> Okay Ali Ghodsi, CEO of Data bricks, a success story that proves the validation of cloud scale, open and create value, values the new lock-in. So Natalie, back to you for continuing coverage. >> That was a terrific interview John, but I'd love to get Dave's insights first. What were your takeaways, Dave? >> Well, if we have more time I'll tell you how Data bricks got to where they are today, but I'll say this, the most important thing to me that Allie said was he conveyed a very clear understanding of what data companies are outright and are getting ready. Talked about four things. There's not one data team, there's many data teams. And he talked about data is decentralized, and data has to have context and that context lives in the business. He said, look, think about it. The way that the data companies would get it right, they get data in teams and sales and marketing and finance and engineering. They all have their own data and data teams. And he referred to that as a data mesh. That's a term that is your mock, the Gany coined and the warehouse of the data lake it's merely a node in that global message. It meshes discoverable, he talked about federated governance, and Data bricks, they're breaking the model of shoving everything into a single repository and trying to make that the so-called single version of the truth. Rather what they're doing, which is right on is putting data in the hands of the business owners. And that's how true data companies do. And the last thing you talked about with sky computing, which I loved, it's that future layer, we talked about multi-cloud a lot that abstracts the underlying complexity of the technical details of the cloud and creates additional value on top. I always say that the cloud players like Amazon have given the gift to the world of 100 billion dollars a year they spend in CapEx. Thank you. Now we're going to innovate on top of it. Yeah. And I think the refactoring... >> Hope by John. >> That was great insight and I totally agree. The refactoring piece too was key, he brought that home. But to me, I think Data bricks that Ali shared there and why he's been open and sharing a lot of his insights and the community. But what he's not saying, cause he's humble and polite is they cracked the code on the enterprise, Dave. And to Dave's points exactly reason why they did it, they saw an opportunity to make it easier, at that time had dupe was the rage, and they just made it easier. They was smart, they made good bets, they had a good formula and they cracked the code with the enterprise. They brought it in and they brought value. And see that's the key to the cloud as Dave pointed out. You get replatform with the cloud, then you refactor. And I think he pointed out the multi-cloud and that really kind of teases out the whole future and landscape, which is essentially distributed computing. And I think, you know, companies are starting to figure that out with hybrid and this on premises and now super edge I call it, with 5G coming. So it's just pretty incredible. >> Yeah. Data bricks, IPO is coming and people should know. I mean, what everybody, they created spark as you know John and everybody thought they were going to do is mimic red hat and sell subscriptions and support. They didn't, they developed a managed service and they embedded AI tools to simplify data science. So to your point, enterprises could buy instead of build, we know this. Enterprises will spend money to make things simpler. They don't have the resources, and so this was what they got right was really embedding that, making a building a managed service, not mimicking the kind of the red hat model, but actually creating a new value layer there. And that's big part of their success. >> If I could just add one thing Natalie to that Dave saying is really right on. And as an enterprise buyer, if we go the other side of the equation, it used to be that you had to be a known company, get PR, you fill out RFPs, you had to meet all the speeds. It's like going to the airport and get a swab test, and get a COVID test and all kinds of mechanisms to like block you and filter you. Most of the biggest success stories that have created the most value for enterprises have been the companies that nobody's understood. And Andy Jazz's famous quote of, you know, being misunderstood is actually a good thing. Data bricks was very misunderstood at the beginning and no one kind of knew who they were but they did it right. And so the enterprise buyers out there, don't be afraid to test the startups because you know the next Data bricks is out there. And I think that's where I see the psychology changing from the old IT buyers, Dave. It's like, okay, let's let's test this company. And there's plenty of ways to do that. He illuminated those premium, small pilots, you don't need to go on these big things. So I think that is going to be a shift in how companies going to evaluate startups. >> Yeah. Think about it this way. Why should the large banks and insurance companies and big manufacturers and pharma companies, governments, why should they burn resources managing containers and figuring out data science tools if they can just tap into solutions like Data bricks which is an AI platform in the cloud and let the experts manage all that stuff. Think about how much money in time that saves enterprises. >> Yeah, I mean, we've got 15 companies here we're showcasing this batch and this season if you call it. That episode we are going to call it? They're awesome. Right? And the next 15 will be the same. And these companies could be the next billion dollar revenue generator because the cloud enables that day. I think that's the exciting part. >> Well thank you both so much for these insights. Really appreciate it. AWS startup showcase highlights the innovation that helps startups succeed. And no one knows that better than our very next guest, Jeff Barr. Welcome to the show and I will send this interview now to Dave and John and see you just in the bit. >> Okay, hey Jeff, great to see you. Thanks for coming on again. >> Great to be back. >> So this is a regular community segment with Jeff Barr who's a legend in the industry. Everyone knows your name. Everyone knows that. Congratulations on your recent blog posts we have reading. Tons of news, I want to get your update because 5G has been all over the news, mobile world congress is right around the corner. I know Bill Vass was a keynote out there, virtual keynote. There's a lot of Amazon discussion around the edge with wavelength. Specifically, this is the outpost piece. And I know there is news I want to get to, but the top of mind is there's massive Amazon expansion and the cloud is going to the edge, it's here. What's up with wavelength. Take us through the, I call it the power edge, the super edge. >> Well, I'm really excited about this mostly because it gives a lot more choice and flexibility and options to our customers. This idea that with wavelength we announced quite some time ago, at least quite some time ago if we think in cloud years. We announced that we would be working with 5G providers all over the world to basically put AWS in the telecom providers data centers or telecom centers, so that as their customers build apps, that those apps would take advantage of the low latency, the high bandwidth, the reliability of 5G, be able to get to some compute and storage services that are incredibly close geographically and latency wise to the compute and storage that is just going to give customers this new power and say, well, what are the cool things we can build? >> Do you see any correlation between wavelength and some of the early Amazon services? Because to me, my gut feels like there's so much headroom there. I mean, I was just riffing on the notion of low latency packets. I mean, just think about the applications, gaming and VR, and metaverse kind of cool stuff like that where having the edge be that how much power there. It just feels like a new, it feels like a new AWS. I mean, what's your take? You've seen the evolutions and the growth of a lot of the key services. Like EC2 and SA3. >> So welcome to my life. And so to me, the way I always think about this is it's like when I go to a home improvement store and I wander through the aisles and I often wonder through with no particular thing that I actually need, but I just go there and say, wow, they've got this and they've got this, they've got this other interesting thing. And I just let my creativity run wild. And instead of trying to solve a problem, I'm saying, well, if I had these different parts, well, what could I actually build with them? And I really think that this breadth of different services and locations and options and communication technologies. I suspect a lot of our customers and customers to be and are in this the same mode where they're saying, I've got all this awesomeness at my fingertips, what might I be able to do with it? >> He reminds me when Fry's was around in Palo Alto, that store is no longer here but it used to be back in the day when it was good. It was you go in and just kind of spend hours and then next thing you know, you built a compute. Like what, I didn't come in here, whether it gets some cables. Now I got a motherboard. >> I clearly remember Fry's and before that there was the weird stuff warehouse was another really cool place to hang out if you remember that. >> Yeah I do. >> I wonder if I could jump in and you guys talking about the edge and Jeff I wanted to ask you about something that is, I think people are starting to really understand and appreciate what you did with the entrepreneur acquisition, what you do with nitro and graviton, and really driving costs down, driving performance up. I mean, there's like a compute Renaissance. And I wonder if you could talk about the importance of that at the edge, because it's got to be low power, it has to be low cost. You got to be doing processing at the edge. What's your take on how that's evolving? >> Certainly so you're totally right that we started working with and then ultimately acquired Annapurna labs in Israel a couple of years ago. I've worked directly with those folks and it's really awesome to see what they've been able to do. Just really saying, let's look at all of these different aspects of building the cloud that were once effectively kind of somewhat software intensive and say, where does it make sense to actually design build fabricate, deploy custom Silicon? So from putting up the system to doing all kinds of additional kinds of security checks, to running local IO devices, running the NBME as fast as possible to support the EBS. Each of those things has been a contributing factor to not just the power of the hardware itself, but what I'm seeing and have seen for the last probably two or three years at this point is the pace of innovation on instance types just continues to get faster and faster. And it's not just cranking out new instance types because we can, it's because our awesomely diverse base of customers keeps coming to us and saying, well, we're happy with what we have so far, but here's this really interesting new use case. And we needed a different ratio of memory to CPU, or we need more cores based on the amount of memory, or we needed a lot of IO bandwidth. And having that nitro as the base lets us really, I don't want to say plug and play, cause I haven't actually built this myself, but it seems like they can actually put the different elements together, very very quickly and then come up with new instance types that just our customers say, yeah, that's exactly what I asked for and be able to just do this entire range of from like micro and nano sized all the way up to incredibly large with incredible just to me like, when we talk about terabytes of memory that are just like actually just RAM memory. It's like, that's just an inconceivably large number by the standards of where I started out in my career. So it's all putting this power in customer hands. >> You used the term plug and play, but it does give you that nitro gives you that optionality. And then other thing that to me is really exciting is the way in which ISVs are writing to whatever's underneath. So you're making that, you know, transparent to the users so I can choose as a customer, the best price performance for my workload and that that's just going to grow that ISV portfolio. >> I think it's really important to be accurate and detailed and as thorough as possible as we launch each one of these new instance types with like what kind of processor is in there and what clock speed does it run at? What kind of, you know, how much memory do we have? What are the, just the ins and outs, and is it Intel or arm or AMD based? It's such an interesting to me contrast. I can still remember back in the very very early days of back, you know, going back almost 15 years at this point and effectively everybody said, well, not everybody. A few people looked and said, yeah, we kind of get the value here. Some people said, this just sounds like a bunch of generic hardware, just kind of generic hardware in Iraq. And even back then it was something that we were very careful with to design and optimize for use cases. But this idea that is generic is so, so, so incredibly inaccurate that I think people are now getting this. And it's okay. It's fine too, not just for the cloud, but for very specific kinds of workloads and use cases. >> And you guys have announced obviously the performance improvements on a lamb** does getting faster, you got the per billing, second billings on windows and SQL server on ECE too**. So I mean, obviously everyone kind of gets that, that's been your DNA, keep making it faster, cheaper, better, easier to use. But the other area I want to get your thoughts on because this is also more on the footprint side, is that the regions and local regions. So you've got more region news, take us through the update on the expansion on the footprint of AWS because you know, a startup can come in and these 15 companies that are here, they're global with AWS, right? So this is a major benefit for customers around the world. And you know, Ali from Data bricks mentioned privacy. Everyone's a privacy company now. So the huge issue, take us through the news on the region. >> Sure, so the two most recent regions that we announced are in the UAE and in Israel. And we generally like to pre-announce these anywhere from six months to two years at a time because we do know that the customers want to start making longer term plans to where they can start thinking about where they can do their computing, where they can store their data. I think at this point we now have seven regions under construction. And, again it's all about customer trice. Sometimes it's because they have very specific reasons where for based on local laws, based on national laws, that they must compute and restore within a particular geographic area. Other times I say, well, a lot of our customers are in this part of the world. Why don't we pick a region that is as close to that part of the world as possible. And one really important thing that I always like to remind our customers of in my audience is, anything that you choose to put in a region, stays in that region unless you very explicitly take an action that says I'd like to replicate it somewhere else. So if someone says, I want to store data in the US, or I want to store it in Frankfurt, or I want to store it in Sao Paulo, or I want to store it in Tokyo or Osaka. They get to make that very specific choice. We give them a lot of tools to help copy and replicate and do cross region operations of various sorts. But at the heart, the customer gets to choose those locations. And that in the early days I think there was this weird sense that you would, you'd put things in the cloud that would just mysteriously just kind of propagate all over the world. That's never been true, and we're very very clear on that. And I just always like to reinforce that point. >> That's great stuff, Jeff. Great to have you on again as a regular update here, just for the folks watching and don't know Jeff he'd been blogging and sharing. He'd been the one man media band for Amazon it's early days. Now he's got departments, he's got peoples on doing videos. It's an immediate franchise in and of itself, but without your rough days we wouldn't have gotten all the great news we subscribe to. We watch all the blog posts. It's essentially the flow coming out of AWS which is just a tsunami of a new announcements. Always great to read, must read. Jeff, thanks for coming on, really appreciate it. That's great. >> Thank you John, great to catch up as always. >> Jeff Barr with AWS again, and follow his stuff. He's got a great audience and community. They talk back, they collaborate and they're highly engaged. So check out Jeff's blog and his social presence. All right, Natalie, back to you for more coverage. >> Terrific. Well, did you guys know that Jeff took a three week AWS road trip across 15 cities in America to meet with cloud computing enthusiasts? 5,500 miles he drove, really incredible I didn't realize that. Let's unpack that interview though. What stood out to you John? >> I think Jeff, Barr's an example of what I call direct to audience a business model. He's been doing it from the beginning and I've been following his career. I remember back in the day when Amazon was started, he was always building stuff. He's a builder, he's classic. And he's been there from the beginning. At the beginning he was just the blog and it became a huge audience. It's now morphed into, he was power blogging so hard. He has now support and he still does it now. It's basically the conduit for information coming out of Amazon. I think Jeff has single-handedly made Amazon so successful at the community developer level, and that's the startup action happened and that got them going. And I think he deserves a lot of the success for AWS. >> And Dave, how about you? What is your reaction? >> Well I think you know, and everybody knows about the cloud and back stop X** and agility, and you know, eliminating the undifferentiated, heavy lifting and all that stuff. And one of the things that's often overlooked which is why I'm excited to be part of this program is the innovation. And the innovation comes from startups, and startups start in the cloud. And so I think that that's part of the flywheel effect. You just don't see a lot of startups these days saying, okay, I'm going to do something that's outside of the cloud. There are some, but for the most part, you know, if you saw in software, you're starting in the cloud, it's so capital efficient. I think that's one thing, I've throughout my career. I've been obsessed with every part of the stack from whether it's, you know, close to the business process with the applications. And right now I'm really obsessed with the plumbing, which is why I was excited to talk about, you know, the Annapurna acquisition. Amazon bought and a part of the $350 million, it's reported, you know, maybe a little bit more, but that isn't an amazing acquisition. And the reason why that's so important is because Amazon is continuing to drive costs down, drive performance up. And in my opinion, leaving a lot of the traditional players in their dust, especially when it comes to the power and cooling. You have often overlooked things. And the other piece of the interview was that Amazon is actually getting ISVs to write to these new platforms so that you don't have to worry about there's the software run on this chip or that chip, or x86 or arm or whatever it is. It runs. And so I can choose the best price performance. And that's where people don't, they misunderstand, you always say it John, just said that people are misunderstood. I think they misunderstand, they confused, you know, the price of the cloud with the cost of the cloud. They ignore all the labor costs that are associated with that. And so, you know, there's a lot of discussion now about the cloud tax. I just think the pace is accelerating. The gap is not closing, it's widening. >> If you look at the one question I asked them about wavelength and I had a follow up there when I said, you know, we riff on it and you see, he lit up like he beam was beaming because he said something interesting. It's not that there's a problem to solve at this opportunity. And he conveyed it to like I said, walking through Fry's. But like, you go into a store and he's a builder. So he sees opportunity. And this comes back down to the Martine Casada paradox posts he wrote about do you optimize for CapEx or future revenue? And I think the tell sign is at the wavelength edge piece is going to be so creative and that's going to open up massive opportunities. I think that's the place to watch. That's the place I'm watching. And I think startups going to come out of the woodwork because that's where the action will be. And that's just Amazon at the edge, I mean, that's just cloud at the edge. I think that is going to be very effective. And his that's a little TeleSign, he kind of revealed a little bit there, a lot there with that comment. >> Well that's a to be continued conversation. >> Indeed, I would love to introduce our next guest. We actually have Soma on the line. He's the managing director at Madrona venture group. Thank you Soma very much for coming for our keynote program. >> Thank you Natalie and I'm great to be here and will have the opportunity to spend some time with you all. >> Well, you have a long to nerd history in the enterprise. How would you define the modern enterprise also known as cloud scale? >> Yeah, so I would say I have, first of all, like, you know, we've all heard this now for the last, you know, say 10 years or so. Like, software is eating the world. Okay. Put it another way, we think about like, hey, every enterprise is a software company first and foremost. Okay. And companies that truly internalize that, that truly think about that, and truly act that way are going to start up, continue running well and things that don't internalize that, and don't do that are going to be left behind sooner than later. Right. And the last few years you start off thing and not take it to the next level and talk about like, not every enterprise is not going through a digital transformation. Okay. So when you sort of think about the world from that lens. Okay. Modern enterprise has to think about like, and I am first and foremost, a technology company. I may be in the business of making a car art, you know, manufacturing paper, or like you know, manufacturing some healthcare products or what have you got out there. But technology and software is what is going to give me a unique, differentiated advantage that's going to let me do what I need to do for my customers in the best possible way [Indistinct]. So that sort of level of focus, level of execution, has to be there in a modern enterprise. The other thing is like not every modern enterprise needs to think about regular. I'm competing for talent, not anymore with my peers in my industry. I'm competing for technology talent and software talent with the top five technology companies in the world. Whether it is Amazon or Facebook or Microsoft or Google, or what have you cannot think, right? So you really have to have that mindset, and then everything flows from that. >> So I got to ask you on the enterprise side again, you've seen many ways of innovation. You've got, you know, been in the industry for many, many years. The old way was enterprises want the best proven product and the startups want that lucrative contract. Right? Yeah. And get that beach in. And it used to be, and we addressed this in our earlier keynote with Ali and how it's changing, the buyers are changing because the cloud has enabled this new kind of execution. I call it agile, call it what you want. Developers are driving modern applications, so enterprises are still, there's no, the playbooks evolving. Right? So we see that with the pandemic, people had needs, urgent needs, and they tried new stuff and it worked. The parachute opened as they say. So how do you look at this as you look at stars, you're investing in and you're coaching them. What's the playbook? What's the secret sauce of how to crack the enterprise code today. And if you're an enterprise buyer, what do I need to do? I want to be more agile. Is there a clear path? Is there's a TSA to let stuff go through faster? I mean, what is the modern playbook for buying and being a supplier? >> That's a fantastic question, John, because I think that sort of playbook is changing, even as we speak here currently. A couple of key things to understand first of all is like, you know, decision-making inside an enterprise is getting more and more de-centralized. Particularly decisions around what technology to use and what solutions to use to be able to do what people need to do. That decision making is no longer sort of, you know, all done like the CEO's office or the CTO's office kind of thing. Developers are more and more like you rightly said, like sort of the central of the workflow and the decision making process. So it'll be who both the enterprises, as well as the startups to really understand that. So what does it mean now from a startup perspective, from a startup perspective, it means like, right. In addition to thinking about like hey, not do I go create an enterprise sales post, do I sell to the enterprise like what I might have done in the past? Is that the best way of moving forward, or should I be thinking about a product led growth go to market initiative? You know, build a product that is easy to use, that made self serve really works, you know, get the developers to start using to see the value to fall in love with the product and then you think about like hey, how do I go translate that into a contract with enterprise. Right? And more and more what I call particularly, you know, startups and technology companies that are focused on the developer audience are thinking about like, you know, how do I have a bottom up go to market motion? And sometime I may sort of, you know, overlap that with the top down enterprise sales motion that we know that has been going on for many, many years or decades kind of thing. But really this product led growth bottom up a go to market motion is something that we are seeing on the rise. I would say they're going to have more than half the startup that we come across today, have that in some way shape or form. And so the enterprise also needs to understand this, the CIO or the CTO needs to know that like hey, I'm not decision-making is getting de-centralized. I need to empower my engineers and my engineering managers and my engineering leaders to be able to make the right decision and trust them. I'm going to give them some guard rails so that I don't find myself in a soup, you know, sometime down the road. But once I give them the guard rails, I'm going to enable people to make the decisions. People who are closer to the problem, to make the right decision. >> Well Soma, what are some of the ways that startups can accelerate their enterprise penetration? >> I think that's another good question. First of all, you need to think about like, Hey, what are enterprises wanting to rec? Okay. If you start off take like two steps back and think about what the enterprise is really think about it going. I'm a software company, but I'm really manufacturing paper. What do I do? Right? The core thing that most enterprises care about is like, hey, how do I better engage with my customers? How do I better serve my customers? And how do I do it in the most optimal way? At the end of the day that's what like most enterprises really care about. So startups need to understand, what are the problems that the enterprise is trying to solve? What kind of tools and platform technologies and infrastructure support, and, you know, everything else that they need to be able to do what they need to do and what only they can do in the most optimal way. Right? So to the extent you are providing either a tool or platform or some technology that is going to enable your enterprise to make progress on what they want to do, you're going to get more traction within the enterprise. In other words, stop thinking about technology, and start thinking about the customer problem that they want to solve. And the more you anchor your company, and more you anchor your conversation with the customer around that, the more the enterprise is going to get excited about wanting to work with you. >> So I got to ask you on the enterprise and developer equation because CSOs and CXOs, depending who you talk to have that same answer. Oh yeah. In the 90's and 2000's, we kind of didn't, we throttled down, we were using the legacy developer tools and cloud came and then we had to rebuild and we didn't really know what to do. So you seeing a shift, and this is kind of been going on for at least the past five to eight years, a lot more developers being hired yet. I mean, at FinTech is clearly a vertical, they always had developers and everyone had developers, but there's a fast ramp up of developers now and the role of open source has changed. Just looking at the participation. They're not just consuming open source, open source is part of the business model for mainstream enterprises. How is this, first of all, do you agree? And if so, how has this changed the course of an enterprise human resource selection? How they're organized? What's your vision on that? >> Yeah. So as I mentioned earlier, John, in my mind the first thing is, and this sort of, you know, like you said financial services has always been sort of hiring people [Indistinct]. And this is like five-year old story. So bear with me I'll tell you the firewall story and then come to I was trying to, the cloud CIO or the Goldman Sachs. Okay. And this is five years ago when people were still like, hey, is this cloud thing real and now is cloud going to take over the world? You know, am I really ready to put my data in the cloud? So there are a lot of questions and conversations can affect. The CIO of Goldman Sachs told me two things that I remember to this day. One is, hey, we've got a internal edict. That we made a decision that in the next five years, everything in Goldman Sachs is going to be on the public law. And I literally jumped out of the chair and I said like now are you going to get there? And then he laughed and said like now it really doesn't matter whether we get there or not. We want to set the tone, set the direction for the organization that hey, public cloud is here. Public cloud is there. And we need to like, you know, move as fast as we realistically can and think about all the financial regulations and security and privacy. And all these things that we care about deeply. But given all of that, the world is going towards public load and we better be on the leading edge as opposed to the lagging edge. And the second thing he said, like we're talking about like hey, how are you hiring, you know, engineers at Goldman Sachs Canada? And he said like in hey, I sort of, my team goes out to the top 20 schools in the US. And the people we really compete with are, and he was saying this, Hey, we don't compete with JP Morgan or Morgan Stanley, or pick any of your favorite financial institutions. We really think about like, hey, we want to get the best talent into Goldman Sachs out of these schools. And we really compete head to head with Google. We compete head to head with Microsoft. We compete head to head with Facebook. And we know that the caliber of people that we want to get is no different than what these companies want. If you want to continue being a successful, leading it, you know, financial services player. That sort of tells you what's going on. You also talked a little bit about like hey, open source is here to stay. What does that really mean kind of thing. In my mind like now, you can tell me that I can have from given my pedigree at Microsoft, I can tell you that we were the first embraces of open source in this world. So I'll say that right off the bat. But having said that we did in our turn around and said like, hey, this open source is real, this open source is going to be great. How can we embrace and how can we participate? And you fast forward to today, like in a Microsoft is probably as good as open source as probably any other large company I would say. Right? Including like the work that the company has done in terms of acquiring GitHub and letting it stay true to its original promise of open source and community can I think, right? I think Microsoft has come a long way kind of thing. But the thing that like in all these enterprises need to think about is you want your developers to have access to the latest and greatest tools. To the latest and greatest that the software can provide. And you really don't want your engineers to be reinventing the wheel all the time. So there is something available in the open source world. Go ahead, please set up, think about whether that makes sense for you to use it. And likewise, if you think that is something you can contribute to the open source work, go ahead and do that. So it's really a two way somebody Arctic relationship that enterprises need to have, and they need to enable their developers to want to have that symbiotic relationship. >> Soma, fantastic insights. Thank you so much for joining our keynote program. >> Thank you Natalie and thank you John. It was always fun to chat with you guys. Thank you. >> Thank you. >> John we would love to get your quick insight on that. >> Well I think first of all, he's a prolific investor the great from Madrona venture partners, which is well known in the tech circles. They're in Seattle, which is in the hub of I call cloud city. You've got Amazon and Microsoft there. He'd been at Microsoft and he knows the developer ecosystem. And reason why I like his perspective is that he understands the value of having developers as a core competency in Microsoft. That's their DNA. You look at Microsoft, their number one thing from day one besides software was developers. That was their army, the thousand centurions that one won everything for them. That has shifted. And he brought up open source, and .net and how they've embraced Linux, but something that tele before he became CEO, we interviewed him in the cube at an Xcel partners event at Stanford. He was open before he was CEO. He was talking about opening up. They opened up a lot of their open source infrastructure projects to the open compute foundation early. So they had already had that going and at that price, since that time, the stock price of Microsoft has skyrocketed because as Ali said, open always wins. And I think that is what you see here, and as an investor now he's picking in startups and investing in them. He's got to read the tea leaves. He's got to be in the right side of history. So he brings a great perspective because he sees the old way and he understands the new way. That is the key for success we've seen in the enterprise and with the startups. The people who get the future, and can create the value are going to win. >> Yeah, really excellent point. And just really quickly. What do you think were some of our greatest hits on this hour of programming? >> Well first of all I'm really impressed that Ali took the time to come join us because I know he's super busy. I think they're at a $28 billion valuation now they're pushing a billion dollars in revenue, gap revenue. And again, just a few short years ago, they had zero software revenue. So of these 15 companies we're showcasing today, you know, there's a next Data bricks in there. They're all going to be successful. They already are successful. And they're all on this rocket ship trajectory. Ali is smart, he's also got the advantage of being part of that Berkeley community which they're early on a lot of things now. Being early means you're wrong a lot, but you're also right, and you're right big. So Berkeley and Stanford obviously big areas here in the bay area as research. He is smart, He's got a great team and he's really open. So having him share his best practices, I thought that was a great highlight. Of course, Jeff Barr highlighting some of the insights that he brings and honestly having a perspective of a VC. And we're going to have Peter Wagner from wing VC who's a classic enterprise investors, super smart. So he'll add some insight. Of course, one of the community session, whenever our influencers coming on, it's our beat coming on at the end, as well as Katie Drucker. Another Madrona person is going to talk about growth hacking, growth strategies, but yeah, sights Raleigh coming on. >> Terrific, well thank you so much for those insights and thank you to everyone who is watching the first hour of our live coverage of the AWS startup showcase for myself, Natalie Ehrlich, John, for your and Dave Vellante we want to thank you very much for watching and do stay tuned for more amazing content, as well as a special live segment that John Furrier is going to be hosting. It takes place at 12:30 PM Pacific time, and it's called cracking the code, lessons learned on how enterprise buyers evaluate new startups. Don't go anywhere.

>>From around the globe. It's the cube with digital coverage of Veem on 2020 brought to you by beam. >>Hi buddy. Welcome back to the cubes. Ongoing coverage of Veem on 2020s Veem online 2020 I'm Dave Volante and Rick van overs here as a senior director of product strategy at Veem. Rick, it's always a great pleasure to see you. I wish we could see each other face to face. >>Yeah. You know, it's different this year, but, uh, yeah, it is always great to be on the cube. I think, uh, uh, in 2018 had an eight year gap and it's a N a couple of times we've been back since and yeah, happy to be back on the cube. >>So how's it going with you guys with the online format? I mean, breakouts are big for you cause you're, you're profiling some new products that we're going to get into, how's it all working for you? >>Well, it's been different. It's a good way to explain it in one word different, but the reality is I have a, uh, pardon, the language, a side hustle here, where at Veeam, I've worked with the event team to kind of bring the best content. And for the breakouts, that's an area that I've been working a lot with our speakers and our, some of our partners, external experts, users, and people who have, you know, beaten ransomware and stuff like that. But I've worked really hard to aggregate the content and get the best blend of content. And we kind of have taken an interesting approach where the breakouts are that library of content that we think organizations and the people who attend the event really take away the most. So we've got this full spectrum from R and D deep level stuff to just getting started type of stuff, and really all types of levels in between. And yeah, we want the breakouts to focus on generally available products, right? So I've worked pretty diligently to bring a good spread across the, uh, different products. And then a little secret trick we're doing is that into the summer, we're going to open up new content. So there's this broadcast agenda that we've got publicized, but then beyond that, we're going to sneak in some new content into the summer. >>Well, I'm glad you're thinking that way, because you know, a lot of what a lot of people are doing. There's a church trying to take their physical events and mirror it to the, to the digital or the virtual. And I think so often with physical events, people forget about the afterglow. And so I'm glad you guys are thinking about it upfront. >>Yeah. It has to be a mechanism that we've used it a couple of different ways, one to match how things are going to be released. Right? Cause being, we're always releasing products across the different set. I mean, we have one flagship product, but then the other products have their own cycles. So if something works well for that, we'll put it into the summer library. And then it's also a great opportunity for us to reach deep and get some content from people that we might not have been able to get before. In fact, we had one of our engineers who's based in Australia and great resource, great region, strong market for us, but I can't w if we were to have the in person event, I can't bring somebody from Australia for one session, but this was a great way to bring her expertise to the event without, you know, having the travel burden and different variety of speakers and different varieties of content. So there's ways that we've been able to build on it. But again, the top level word is definitely different, but I feel like it's working for sure. >>So Rick, give us the helicopter view of some of the product areas that we should be really be aware of as it relates to what you guys are doing at Veem on 2020. And then we'll, we'll drill in give us the high level though. >>Yeah. So for people attending the event and online, my advice really is that we're spread across about 75 to 80% of the content is for technical people. 20% of the content in the breakouts is going to be for decision makers or executives, that type. And then within that, the context of the technical content, we want to have probably 10 to 15% being like presenters from our R and D group. So very technical, uh, low level type discussions, highest level architect type stuff, kind of after that generic use cases, a nice and in the middle area, because we have a lot of people that are getting started with our products, like maybe they're new to the office three 65 backup, or they're new to backing up natively in the cloud. We have a lot of contexts around the virtual machine backup and storage integration, all those other great things, but the platform is kind of spread out at Veeam. There's a lot to take in. So the thought is wherever anyone is on their journey with any of the products and not some, that's a hard task to do with a certain number of slots. We want to provide something for everyone at every level. So that's the, that's the helicopter view. >>So let me ask you a couple of follow ups on that. So let's start with office three 65. Now you guys have shared data at this event, uh, talking about that most customers just say, Oh yeah, well, I trust Microsoft to do my backup. Well, of course, as we, well, well know it, backup is one thing, but recovery is everything. And so explain why, uh, what will explain the value that you guys bring? Why can't I just rely on the SAS vendor, uh, to, to do my backup and recovery? >>Well, there's a lot to that question, Dave, the number one thing I'll say is that at Veeam, we have partnerships with Microsoft. You have where HPE, all the household brands of it. And in many of these situations, we've always come into the market with the platform itself, providing a basic backup. I'll give windows, for example, anti backup, right? Yeah. Those, you know, it's there, but there's always a market for more capabilities, more functionality, more portability. So we've taken office three 65 is a different angle for backup. And we lead with the shared responsibility model, Microsoft as well as the other clouds, make it very clear that data classification and that responsibility of data that actually sits 100% with the customer. And so, yes, you can add things to the platform, but if we have organizations where we have things like I need to retain my content forever, or I need a discovery use case. >>And then if you think about broader use cases like one drive for business data, especially with the rapid shift of work from home organizations may not be not so much using the file server, but using things like one drive for business, for file exchanges, right? So having a control plane over that data is, is very important. So we really base it on the shared responsibility and Microsoft is one of our strongest partners. So they are very keen for us to provide solutions that are going to consume and move data around to, to meet customer needs in the cloud and in the SAS environment. For sure. So, you know, it's been a very easy conversation for our customers and it's our fastest growing product as well. So, uh, this, this product is doing great. Uh, I don't have the quarterly numbers, but we just released the mid part of Q4. We just released the newest release, which implemented object storage support. So that's been the big ask for our customers, right? So it's a, it's that product's doing great. >>Yeah. So, you know, that notion of shared responsibility, you hear that a lot in cloud security, you're applying it to cloud data protection, which, you know, security and data protection are now, you know, there's a lot of gray area between them now. Uh, and I think it's, you know, security is a, or data protection is a fundamental part of your security strategy, but that notion of shared responsibility is very important. And one that's oftentimes misunderstood because people hear, Oh, it's in the cloud. Okay. My cloud vendor has got to cover it, but what does, what does that shared responsibility mean? Ultimately, isn't it up to the customer to own the end end result. >>It is. And I look at, especially Microsoft, they classify their software for different ways on prem software, uh, software as a service, the infrastructure as a service. Uh, I forget what the third one is, but they have so many different ways that you can package their software, but in all of them, they put the data classification for the customer and it same for other clouds as well. And when, if I'm an organization today, if I'm running data in a SAS platform, if I am running systems in iOS platforms, in the hyperscale public clouds, that is an opportunity for me to really think about that control plane of the data and the backup and restore responsibility, because it has to be easy to use. It has to be very consumable so that customers can avoid that data loss or be in a situation where the complexity to do a restore is so miserable that they may not even want to go do it. I've actually had conversations with organizations as they come to Veeam. That was their alternative. Oh, it's just too painful to do. Like, why would you even do that? You know, so that, that shared responsibility model across the different data types in the cloud and on-premise well, and SAS models, that's really where we find the conversations go pretty nicely. >>Right. And if it's too complicated, you won't even bother testing it. So I want to ask you something about cloud native. You mentioned cloud native, your cloud native capabilities, um, and I'm, I'm inferring from that, that you basically are not just taking your on prem stack and shoving it into the cloud. You're actually taking advantage of the native cloud services. Can you, can you explain what's going on there and maybe some product specifics? >>Sure. So, you know, Veeam has this reputation of number one, VM backup, you know, here in my office, I have posters from all over the years and somewhere down here is number one, VM backup. And that's where we cut our teeth and got our name out there. But now if you're an Azure, if you're an Amazon, we have cloud native backup products available. In fact, the last time you and I spoke was that an Amazon reinvent where we launched the Amazon product. And then last month we launched the Azure product, which provides cloud native backup for Azure. And so now we have this cloud feature parody and those products are going to move very quickly as well. We've had the software as a service product for office three 65, where we keep adding services. And we saw in the general session, we're going to add protection for a new service in office three 65. >>So we're going to continue to innovate around these different areas. And there's also another cloud that we announced a capability for as well. So, you know, the platform at Veem it's growing, and it's amazing to see this happen cause you know, customers are making cloud investments and there's no cloud for all right. So some organizations like this cloud that cloud are a little bit of these two clouds combined. So we have to really go into the cloud with customer needs in mind because there's no one size fits all approach to the cloud, but their data, everybody knows how important that is. >>So to that end though, each, each cloud is going to have a set of native services and you've got to develop specific to that cloud, right? So that you can have the most, the lowest, highest performance, the most efficient, the lowest cost data protection solution backup and recovery possible is that, I mean, taking advantage of those native cloud services is going to be unique for each cloud, right? Because AWS has cloud and Azure cloud. Those are, those are different, you know, technically underneath, is that, is that right? >>You're absolutely right. And the cost models, they have different behaviors across the clouds. In fact, the breakout that I did here at the event with Melissa Palmer, those who are interested in the economics of the cloud should check that out because the cloud is all about consuming those resources. When I look at backup, I don't want backup to be a cost prohibitive insurance policy. Basically I want backup to be a cost effective yet resilient technology that when we're using the cloud, we can kind of balance all these needs. And one of the ways that beam's done that is we've put in cost estimators, which it's not that big of a like flashy part of the user interface, but it's so powerful to customers. The thought is if I want to consume infrastructure as a service in the cloud, and I want to back up via API calls, snapshots to ECE, two instances only nice and high performance, nice and fast. >>But the cost profile of that if I kept them for a year is completely different than if I used object storage. And what we're doing with the Veeam backup for Azure and Amazon products is we're putting those numbers right there in the wizard. So you could say, Hey, I want to keep two years of data. And I have snapshots and I have object storage, totally different cost profiles. And I'll put those costs testaments in there. And you can make egregious examples where it'll be like 10 and 20 X the price, but it really allows customers to get it fast, to get it cost efficient. And more importantly, at the end of the day, have that protection that they need. And that's, you know, that's something that I've been trying to evangelize at this cost. Estimator is a really big deal. >>Yeah. Provides transparency so that you can let the business, you know, drive sort of what the, what the data protection level is as opposed to sort of either, whether it's a one size fit all or you're under protected or overprotected and spending too much, I asked Anton is going to kind of, how do you prioritize it? Because basically his answer was we look at the economics and then ultimately you're giving tools to allow the customer to decide, >>Yeah, you don't want to have that surprise cloud bill at the end of the month. You don't want to have, um, you know, waste in the cloud and Anton's right. The economics are very important. The modeling process that we use is interesting. I had a chat with one of the product managers who is basically in charge of our cloud economic modeling and to the organizations out there. This is a really practical bit is, think about modeling, think about cloud economics, because here's the very important part. If you've already implemented something it's too late and what I mean by that, the economics, if they're not right when you implement it, so you're not modeling ahead of time. Once you implement, you can monitor it all you want, but you're just going to monitor it off the model. So the thought is, this is all a backwards process. You have to go backwards with the economics, with the modeling, and that will lead you to no surprises down the road. For sure. >>I want to ask you about the COVID impact generally, but specifically as it relates to ransomware, I mean, we've had a lot more inquiries regarding ransomware. There's certainly a lot more talk about it in the press. What have you seen, uh, specifically with respect to ransomware since the pandemic and since the lockdown. >>So that's something that's near and dear to my heart on the technology team here at product strategy, everyone has like a little specialization industry specialization. Ransomware's mine. So good ask. So the one thing that sticks out to me a lot is identifying where ransomware comes in and around. I have one data point that indicated around 58 or so percent of ransomware comes in through remote desktop. And the thought here is if we have shifted to remote access and new working models, what really worries me, Dave is when people hustle, when people hurry and the thought here is you can have it right. Or you can have it right now in mid March, we needed to make a move right now. So I worry about UN UN incomplete security models, right? People hurrying to, um, implement and maybe not taking their security, right. Especially when you think about most ransomware can come in through remote desktop. >>I thought fish attacks were the main attack vector, but I had some data points that told me this. So I have been, and I just completed a great white paper that those watching this can go to dot com and download. But the thought here is I just completed a great white paper on tips to beat ransomware and yes, Veeam has capabilities, but here's the logic. Dave. I like to explain it this way, beating ransomware. And we had a breakout that I recorded here at the event, encourage everyone to watch that I had two users share their story of how they beat ransomware with Veem. Two very different ways too. Any product is, or is not necessarily ransomware resilient. It's like going through an audit. And what I mean by that is people ask me all the time is being compliant to this standard or that standard it's 100% dictated how the product's implemented, how the product's audited, same with ransomware. >>It's 100% dictated on how Veem is implemented. And then what's the nature of the exploit. And so I break it down to three simple things. We have to educate. We have to know what threats are out there. We have to know who is accessing, what data. And then the big part of it is the implementation. How have we implemented Veeam? Are we keeping data in immutable buckets in the cloud? Are we keeping data with an air gap? And then three, the remediation when something does happen, how do we go about solving that problem? I talked to our tech support team who deals with it every day and they have very good insights, very good feedback on this phenomena. And that they've helped me shape some of the recommendations I put in the paper. But, uh, yeah, it's a 30 page paper. I don't know if I can summarize it here. That's a long one for me, but, uh, the threats real, and this is something we'll never be done with. Right. I have, I've done two other papers on it and I'm going to have another one soon after that, but we're building stuff into the product. We're educating the market. And, um, you know, we're winning, we're seeing like I had the two customers, um, beat ransomware, great stories. I think I learned so much hearing from someone who's gone through it and that you can find that in the, in the Vermont broadcast for those attending here. >>Well, you've touched on a couple of having them take advantage of the cloud guys who have these immutable mutable buckets that you can, you can leverage. Um, a lot of people don't even don't even know about that. Um, and then, like you say, create an air gap and presumably there's best practice around how often you write to that bucket and how often you create, you know, that air gap you may be, you may be change up the patterns. I don't know other, other thoughts on that. >>Well, I collectively put, I've created a term and uh, nobody's questioning me on it yet, so that's good, but I'm calling it ultra resilient storage. And what I'm referring to is that immutable backup in the cloud. And if we, it becomes a math calculation, you know, if you have one data point in there, that's good. But if you had a week's worth of data points, that's better. If you had a month's worth of data points, that's even better. But of course those cost profiles are going to change. Same thing with tape tapes, a an air gap, removable media, and I go back and forth on this, but some of the more resilient storage snapshot engines can do ultra resilient techniques as well, such as like, uh, pure storage, safe mode and NetApp snap fall. And then the last thing is actually a Veeam technology. It's been out for three, four years now, insider protection. >>It's a completely out of band copy of backup data that that Veeam cloud connect offers. So my thought here is that these ultra resilient types, those are best defense in these situations. And, you know, it's, it's a, it becomes a calculated risk of how much of it do I want to keep, because I want to have the most restore options available. I want to have no data loss, but I also don't want it old. Right. You know, there's a huge decline in value taking your business back a year ago, because that's the last tape you had, for example, I want today's or yesterday's backup if I'm in that type of situation. So I go through a lot of those points in my paper, but I hope that, um, those out there fighting the war on ransomware have the tools. I know they have the tools to win with them. >>Well, it's like we were talking about before and ransomware is a really good example of the, the blurring lines between security and backup and recovery. Of course. Uh, what role do analytics play in terms of providing transparency and identifying anomalous behavior in the whole ransomware equation? >>Well, the analytics are very important and I have to be really kind of be transparent, you know, VMs, backup company, right? We're not a security tool, but this is it's getting awfully close. And the, I don't want to say the long form historical definition of it. Security was something around this thing called a CIA triad, maintaining confidentiality, integrity, and availability of data. So security tools are really big on the confidentiality and integrity side of it. But on the availability side, that's ravine can come in. So the analytics come in to our play pretty naturally, right? We have, the Veem has had for years now, uh, an alarm that detects abnormal behavior in regards to CPU rights or CPU usage and disk, right IO. Like if there's both of those or abnormally high, that this is what we call possible ransomware activity. Or if we have a incremental backup, that is like 100% change rate, that's a bad sign, right. >>Things like that. And then the other angle is even on PCs desktops like this computer, I'm talking to you now on w we have just simple logic of, once you take a backup eject the drive. So it's offline, right? So analyzing where the threats come from, what kind of behavior they're going to have when we apply it to backup. Veem can have these built in analytic engines that are just transparently there for our customers. There's no deep reeducation necessary to use these, but the thought is we want a very flexible model. That's going to just provide simple ease of use, and then allow that protection with the threatscape to help it help the customers where we can, because no two ransomware threats are the same. That's the other thing. They are so varied in what they do everything from application specific to files. And now there's these new ones that upload data. The ransom is actually a data leak. They're not encrypting the data. They're just the ransom is to take down potentially huge amounts of data leakage, right? So, um, all kinds of threat actors out there for sure. >>You know, it's a last kind of line of questioning here. Rick is, as I've said, a number of times, it's just, it's ironic that we're entering this new decade in this pandemic hits. And everybody talks about the acceleration of certain trends. But if you think about the trends, you know, last decade, it's always performance and costs. We talked a lot about granularity. We talked about, you know, simplicity, you guys expanded your number of use cases. Uh, the, the support, the compatibility matrix, if you will, all those things are sort of things that you've executed on. As you look forward to this coming decade, we talked about cloud. I mean, we were talking about cloud, you know, back in the, in 2008, 2009 time frame, but it was a relatively small portion of the business. Now everybody's talking cloud. So cloud cloud, native DePaul discussion on ransomware and maybe even broader business resiliency, digital transformation, we've been, we've been given lip service in a lot of cases to digital transformation. All of a sudden that's changed. So as you put on, you pull out the telescope and look forward to the trends that are going to drive your thinking in themes, decision making. What do you look toward? >>Well, I think that laser focused on four things, backup solutions for cloud workloads, and there's incredible opportunity there, right? So yes, we have a great Azure story, great Amazon story. And in the keynote, we indicated the next cloud capability, but there's still more, there's more services in the cloud that we need to go after. There's also the sass pocket. We have a great office, three 65 story, but there's other SAS products that we could provide a story for. And then the physical and virtual platforms. I mean, I feel really confident there we've got really good capabilities, but there's always the 1%. And you know, what's in the corner. What's the 1% of the 1%, right? And those are workloads we can continue to go after. But my thought is, as long as we attack those four areas, we're going to be on a good trajectory to deliver on that promise of being that most trusted provider of cloud data management for backup solutions. >>So my thought here is that we're going to just keep adding products. And it's very important to make it sometimes a new product. We don't want to just bolt it on to backup and replication via 11 or be 10 for that, for that matter, because it'll slow it down, right? The cloud native products are going to have to have their own cadence, their own independent, um, development cycles. And they're going to move faster, right? Because they'll need to, so you'll, you'll see us continuing to add new products, new capabilities, and sometimes it'll, it'll intermix, you know, and that's, that's, that's the whole definition of a platform when one product is talking to another, from a management side, a control plane, given customer portability, all that stuff. So we're going to just go after a cloud, virtual, physical SAS, and new products and new capabilities to do it. >>Well, Rick, it's always a pleasure talking to you. Your home studio looks great. You look good. And, but, but nonetheless, hopefully we'll be able to see each other face to face here shortly. Thanks for coming on. >>Thank you, Dave. >>All right. And thank you for watching. Everybody's Dave Vellante and our continuous coverage of the Mon 2020, the online version of right back, right after this short break.

>> live from Boston, Massachusetts. It's the Cube covering A W s reinforce 2019. Brought to you by Amazon Web service is and its ecosystem partners. >> Well, welcome back. Everyone's Cube Live coverage here in Boston, Massachusetts, for AWS. Reinforce Amazon Web sources. First inaugural conference around security. It's not Osama. It's a branded event. Big time ecosystem developing. We have returning here. Cube Alumni Bill Jeff for VP of strategy and the partnerships that Iron Net Cyber Security Company. Welcome back. Thanks. General Keith Alexander, who was on a week and 1/2 ago. And it was public sector summit. Good to see you. Good >> to see you. Thanks for >> having my back, but I want to get into some of the Iran cyber communities. We had General Qi 1000. He was the original commander of the division. So important discussions that have around that. But don't get your take on the event. You guys, you're building a business. The minute cyber involved in public sector. This is commercial private partnership. Public relations coming together. Yeah. Your models are sharing so bringing public and private together important. >> Now that's exactly right. And it's really great to be here with eight of us were really close partner of AWS is we'll work with them our entire back in today. Runs on AWS really need opportunity. Get into the ecosystem, meet some of the folks that are working that we might work with my partner but to deliver a great product, right? And you're seeing a lot of people move to cloud, right? And so you know some of the big announcement that are happening here today. We're willing. We're looking to partner up with eight of us and be a first time provider for some key new Proactiv elves. AWS is launching in their own platform here today. So that's a really neat thing for us to be partnered up with this thing. Awesome organization. I'm doing some of >> the focus areas around reinforcing your party with Amazon shares for specifics. >> Yes. So I don't know whether they announced this capability where they're doing the announcement yesterday or today. So I forget which one so I'll leave that leave that leave that once pursued peace out. But the main thing is, they're announcing couple of new technology plays way our launch party with them on the civility place. So we're gonna be able to do what we were only wanted to do on Prem. We're gonna be able to do in the cloud with AWS in the cloud formation so that we'll deliver the same kind of guy that would deliver on prime customers inside their own cloud environments and their hybrid environment. So it's a it's a it's a sea change for us. The company, a sea change for a is delivering that new capability to their customers and really be able to defend a cloud network the way you would nonpregnant game changer >> described that value, if you would. >> Well, so you know, one of the key things about about a non pregnant where you could do you could look at all the flows coming past you. You look at all the data, look at in real time and develop behavior. Lana looks over. That's what we're doing our own prime customers today in the cloud with his world who looked a lox, right? And now, with the weight of your capability, we're gonna be able to integrate that and do a lot Maur the way we would in a in a in a normal sort of on Prem environment. So you really did love that. Really? Capability of scale >> Wagon is always killed. The predictive analytics, our visibility and what you could do. And too late. Exactly. Right. You guys solve that with this. What are some of the challenges that you see in cloud security that are different than on premise? Because that's the sea, So conversation we've been hearing. Sure, I know on premise. I didn't do it on premises for awhile. What's the difference between the challenge sets, the challenges and the opportunities they provide? >> Well, the opportunities air really neat, right? Because you've got that even they have a shared responsibility model, which is a little different than you officially have it. When it's on Prem, it's all yours essential. You own that responsibility and it is what it is in the cloud. Its share responsible to cloud provider the data holder. Right? But what's really cool about the cloud is you could deliver some really interesting Is that scale you do patch updates simultaneously, all your all your back end all your clients systems, even if depending how your provisioning cloud service is, you could deliver that update in real time. You have to worry about. I got to go to individual systems and update them, and some are updated. Summer passed. Some aren't right. Your servers are packed simultaneously. You take him down, you're bringing back up and they're ready to go, right? That's a really capability that for a sigh. So you're delivering this thing at scale. It's awesome now, So the challenge is right. It's a new environment so that you haven't dealt with before. A lot of times you feel the hybrid environment governed both an on Prem in sanitation and class sensation. Those have to talkto one another, right? And you might think about Well, how do I secure those those connections right now? And I think about spending money over here when I got all seduced to spend up here in the cloud. And that's gonna be a hard thing precisely to figure out, too. And so there are some challenges, but the great thing is, you got a whole ecosystem. Providers were one of them here in the AWS ecosystem. There are a lot here today, and you've got eight of us as a part of self who wants to make sure that they're super secure, but so are yours. Because if you have a problem in their cloud, that's a challenge. Them to market this other people. You talk about >> your story because your way interviews A couple weeks ago, you made a comment. I'm a recovering lawyer, kind of. You know, we all laughed, but you really start out in law, right? >> How did you end up here? Yeah, well, the truth is, I grew up sort of a technology or myself. My first computer is a trash 80 a trs 80 color computer. RadioShack four k of RAM on board, right. We only >> a true TRS 80. Only when I know what you're saying. That >> it was a beautiful system, right? Way stored with sword programs on cassette tapes. Right? And when we operated from four Keita 16 k way were the talk of the Rainbow Computer Club in Santa Monica, California Game changer. It was a game here for 16. Warning in with 60 give onboard. Ram. I mean, this is this is what you gonna do. And so you know, I went from that and I in >> trouble or something, you got to go to law school like you're right >> I mean, you know, look, I mean, you know it. So my dad, that was a chemist, right? So he loved computers, love science. But he also had an unrequited political boners body. He grew up in East Africa, Tanzania. It was always thought that he might be a minister in government. The Socialist came to power. They they had to leave you at the end of the day. And he came to the states and doing chemistry, which is course studies. But he still loved politics. So he raised at NPR. So when I went to college, I studied political science. But I paid my way through college doing computer support, life sciences department at the last moment. And I ran 10 based. He came on climate through ceilings and pulled network cable do punch down blocks, a little bit of fibrous placing. So, you know, I was still a murderer >> writing software in the scythe. >> One major, major air. And that was when when the web first came out and we had links. Don't you remember? That was a text based browser, right? And I remember looking to see him like this is terrible. Who would use http slash I'm going back to go for gophers. Awesome. Well, turns out I was totally wrong about Mosaic and Netscape. After that, it was It was it was all hands on >> deck. You got a great career. Been involved a lot in the confluence of policy politics and tech, which is actually perfect skill set for the challenge we're dealing. So I gotta ask you, what are some of the most important conversations that should be on the table right now? Because there's been a lot of conversations going on around from this technology. I has been around for many decades. This has been a policy problem. It's been a societal problem. But now this really focus on acute focus on a lot of key things. What are some of the most important things that you think should be on the table for techies? For policymakers, for business people, for lawmakers? >> One. I think we've got to figure out how to get really technology knowledge into the hands of policymakers. Right. You see, you watch the Facebook hearings on Capitol Hill. I mean, it was a joke. It was concerning right? I mean, anybody with a technology background to be concerned about what they saw there, and it's not the lawmakers fault. I mean, you know, we've got to empower them with that. And so we got to take technologist, threw it out, how to get them to talk policy and get them up on the hill and in the administration talking to folks, right? And one of the big outcomes, I think, has to come out of that conversation. What do we do about national level cybersecurity, Right, because we assume today that it's the rule. The private sector provides cyber security for their own companies, but in no other circumstance to expect that when it's a nation state attacker, wait. We don't expect Target or Wal Mart or any other company. J. P. Morgan have surface to air missiles on the roofs of their warehouses or their buildings to Vegas Russian bear bombers. Why, that's the job of the government. But when it comes to cyberspace, we expect Private Cummings defending us everything from a script kiddie in his basement to the criminal hacker in Eastern Europe to the nation state, whether Russia, China, Iran or North Korea and these nation states have virtually a limited resource. Your armies did >> sophisticated RND technology, and it's powerful exactly like a nuclear weaponry kind of impact for digital. >> Exactly. And how can we expect prices comes to defend themselves? It's not. It's not a fair fight. And so the government has to have some role. The questions? What role? How did that consist with our values, our principles, right? And how do we ensure that the Internet remains free and open, while still is sure that the president is not is not hampered in doing its job out there. And I love this top way talk about >> a lot, sometimes the future of warfare. Yeah, and that's really what we're talking about. You go back to Stuxnet, which opened Pandora's box 2016 election hack where you had, you know, the Russians trying to control the mean control, the narrative. As you pointed out, that that one video we did control the belief system you control population without firing a shot. 20 twenties gonna be really interesting. And now you see the U. S. Retaliate to Iran in cyberspace, right? Allegedly. And I was saying that we had a conversation with Robert Gates a couple years ago and I asked him. I said, Should we be Maur taking more of an offensive posture? And he said, Well, we have more to lose than the other guys Glasshouse problem? Yeah, What are your thoughts on? >> Look, certainly we rely intimately, inherently on the cyber infrastructure that that sort of is at the core of our economy at the core of the world economy. Increasingly, today, that being said, because it's so important to us all the more reason why we can't let attacks go Unresponded to write. And so if you're being attacked in cyberspace, you have to respond at some level because if you don't, you'll just keep getting punched. It's like the kid on the playground, right? If the bully keeps punching him and nobody does anything, not not the not the school administration, not the kid himself. Well, then the boy's gonna keep doing what he's doing. And so it's not surprising that were being tested by Iran by North Korea, by Russia by China, and they're getting more more aggressive because when we don't punch back, that's gonna happen. Now we don't have to punch back in cyberspace, right? A common sort of fetish about Cyrus is a >> response to the issue is gonna respond to the bully in this case, your eggs. Exactly. Playground Exactly. We'll talk about the Iran. >> So So if I If I if I can't Yeah, the response could be Hey, we could do this. Let them know you could Yes. And it's a your move >> ate well, And this is the key is that it's not just responding, right. So Bob Gates or told you we can't we talk about what we're doing. And even in the latest series of alleged responses to Iran, the reason we keep saying alleged is the U. S has not publicly acknowledged it, but the word has gotten out. Well, of course, it's not a particularly effective deterrence if you do something, but nobody knows you did it right. You gotta let it out that you did it. And frankly, you gotta own it and say, Hey, look, that guy punch me, I punch it back in the teeth. So you better not come after me, right? We don't do that in part because these cables grew up in the intelligence community at N S. A and the like, and we're very sensitive about that But the truth is, you have to know about your highest and capabilities. You could talk about your abilities. You could say, Here are my red lines. If you cross him, I'm gonna punch you back. If you do that, then by the way, you've gotta punch back. They'll let red lines be crossed and then not respond. And then you're gonna talk about some level of capabilities. It can't all be secret. Can't all be classified. Where >> are we in this debate? Me first. Well, you're referring to the Thursday online attack against the intelligence Iranian intelligence community for the tanker and the drone strike that they got together. Drone take down for an arm in our surveillance drones. >> But where are we >> in this debate of having this conversation where the government should protect and serve its people? And that's the role. Because if a army rolled in fiscal army dropped on the shores of Manhattan, I don't think Citibank would be sending their people out the fight. Right? Right. So, like, this is really happening. >> Where are we >> on this? Like, is it just sitting there on the >> table? What's happening? What's amazing about it? Hi. This was getting it going well, that that's a Q. What's been amazing? It's been happening since 2012 2011 right? We know about the Las Vegas Sands attack right by Iran. We know about North Korea's. We know about all these. They're going on here in the United States against private sector companies, not against the government. And there's largely been no response. Now we've seen Congress get more active. Congress just last year passed to pass legislation that gave Cyber command the authority on the president's surgery defenses orders to take action against Russia, Iran, North Korea and China. If certain cyber has happened, that's a good thing, right to give it. I'll be giving the clear authority right, and it appears the president willing to make some steps in that direction, So that's a positive step. Now, on the back end, though, you talk about what we do to harden ourselves, if that's gonna happen, right, and the government isn't ready today to defend the nation, even though the Constitution is about providing for the common defense, and we know that the part of defense for long. For a long time since Secretary Panetta has said that it is our mission to defend the nation, right? But we know they're not fully doing that. How do they empower private sector defense and one of keys That has got to be Look, if you're the intelligence community or the U. S. Government, you're Clinton. Tremendous sense of Dad about what you're seeing in foreign space about what the enemy is doing, what they're preparing for. You have got to share that in real time at machine speed with industry. And if you're not doing that and you're still count on industry to be the first line defense, well, then you're not empowered. That defense. And if you're on a pair of the defense, how do you spend them to defend themselves against the nation? State threats? That's a real cry. So >> much tighter public private relationship. >> Absolutely, absolutely. And it doesn't have to be the government stand in the front lines of the U. S. Internet is, though, is that you could even determine the boundaries of the U. S. Internet. Right? Nobody wants an essay or something out there doing that, but you do want is if you're gonna put the private sector in the in the line of first defense. We gotta empower that defense if you're not doing that than the government isn't doing its job. And so we gonna talk about this for a long time. I worked on that first piece of information sharing legislation with the House chairman, intelligence Chairman Mike Rogers and Dutch Ruppersberger from Maryland, right congressman from both sides of the aisle, working together to get a fresh your decision done that got done in 2015. But that's just a first step. The government's got to be willing to share classified information, scaled speed. We're still not seeing that. Yeah, How >> do people get involved? I mean, like, I'm not a political person. I'm a moderate in the middle. But >> how do I How do people get involved? How does the technology industry not not the >> policy budgets and the top that goes on the top tech companies, how to tech workers or people who love Tad and our patriots and or want freedom get involved? What's the best approach? >> Well, that's a great question. I think part of is learning how to talk policy. How do we get in front policymakers? Right. And we're I run. I run a think tank on the side at the National Institute at George Mason University's Anton Scalia Law School Way have a program funded by the Hewlett Foundation who were bringing in technologists about 25 of them. Actually. Our next our second event. This Siri's is gonna be in Chicago this weekend. We're trained these technologies, these air data scientists, engineers and, like talk Paul's right. These are people who said We want to be involved. We just don't know how to get involved And so we're training him up. That's a small program. There's a great program called Tech Congress, also funded by the U. A. Foundation that places technologists in policy positions in Congress. That's really cool. There's a lot of work going on, but those are small things, right. We need to do this, its scale. And so you know, what I would say is that their technology out there want to get involved, reach out to us, let us know well with our partners to help you get your information and dad about what's going on. Get your voice heard there. A lot of organizations to that wanna get technologies involved. That's another opportunity to get in. Get in the building is a >> story that we want to help tell on be involved in David. I feel passion about this. Is a date a problem? So there's some real tech goodness in there. Absolutely. People like to solve hard problems, right? I mean, we got a couple days of them. You've got a big heart problems. It's also for all the people out there who are Dev Ops Cloud people who like to work on solving heart problems. >> We got a lot >> of them. Let's do it. So what's going on? Iron? Give us the update Could plug for the company. Keith Alexander found a great guy great guests having on the Cube. That would give the quick thanks >> so much. So, you know, way have done two rounds of funding about 110,000,000. All in so excited. We have partners like Kleiner Perkins Forge point C five all supporting us. And now it's all about We just got a new co CEO in Bill Welshman. See Scaler and duo. So he grew Z scaler. $1,000,000,000 valuation he came in to do Oh, you know, they always had a great great exit. Also, we got him. We got Sean Foster in from from From Industry also. So Bill and Sean came together. We're now making this business move more rapidly. We're moving to the mid market. We're moving to a cloud platform or aggressively and so exciting times and iron it. We're coming toe big and small companies near you. We've got the capability. We're bringing advanced, persistent defense to bear on his heart problems that were threat analytics. I collected defence. That's the key to our operation. We're excited >> to doing it. I call N S A is a service, but that's not politically correct. But this is the Cube, so >> Well, look, if you're not, if you want to defensive scale, right, you want to do that. You know, ECE knows how to do that key down here at the forefront of that when he was in >> the government. Well, you guys are certainly on the cutting edge, riding that wave of common societal change technology impact for good, for defence, for just betterment, not make making a quick buck. Well, you know, look, it's a good business model by the way to be in that business. >> I mean, It's on our business cards. And John Xander means it. Our business. I'd say the Michigan T knows that he really means that, right? Rather private sector. We're looking to help companies to do the right thing and protect the nation, right? You know, I protect themselves >> better. Well, our missions to turn the lights on. Get those voices out there. Thanks for coming on. Sharing the lights. Keep covers here. Day one of two days of coverage. Eight of us reinforce here in Boston. Stay with us for more Day one after this short break.