>>Bach from Las Vegas. It's the cube covering AWS executive summit brought to you by extension. >>Welcome back and good morning. Welcome to the cubes live coverage of the Accenture executive summit here at AWS reinvent. I'm your host, Rebecca Knight. We are joined by pre-saved Sanker and he is the senior managing director global lead intelligent cloud infrastructure. Welcome back on the queue. Thanks so much for coming on. And Larry soccer, global managing director infrastructure services domains and strategy. Thank you so much. So we're talking today about hybrid cloud, the best of both worlds. As we say on the cube. It's a multicloud world. But I want to start with you Prisaad. What is driving clients to move to the cloud? What are you hearing from CEOs? What keeps them up at night? >>So I think, you know, you've got to a point with our clients where they're really trying to get the power of the cloud to the enterprises. So there are multiple things that they're trying to do. First, they're trying to really get the innovation that cloud provides in driving their digital transformation. The second is taking advantage of the cost savings that cloud can provide. So there are multiple aspects of how they use cloud. The first would be using SAS type applications. So for example it is faults.com or Workday and things like that. The second is using the power of providers like AWS really to drive what they can do from cloud native perspective in building new applications. And the third is just taking existing applications that aren't legacy and either re hosting them or refactoring them as an adjusting them to some extent and then hosting them on again, clouds like AWS. So that is a multiyear journey that all our clients are on. And you know, as Accenture we're helping them identify what needs to go first, what needs to go next and help them in that journey. >>And what is, what is the compelling force? Is it that they want to save cut costs? Is it that they want to be more innovative and they view this innovation in the cloud as the key to it? >>It's a combination of both. It's innovation is absolutely number one. Secondly, it is speed to market. The ability to get your product out there very quickly is second and the third is at the end of the day, you know data centers are going to go away and we're going to all recite in the cloud in some form or fashion, whether it's public or private. And which is why this whole topic of hybrid and multi-cloud is becoming so important today. >>So Larry, why hybrid cloud though? Why? Why can't we just go all in on private and public? Sorry. >>Interesting. I mean the, the real driver and Prisaad touched on it there. The real driver to get to, to AWS and to, to the hyperscalers really is around the innovation cycles. You know the passes, the services that they can do and that drives innovation. The speed to, to get there as important, it gives you a way of quickly scaling, which you know, if I really want to build out an application fast, a great way to get there and is obviously the consumption economics. How do I shift from cap ex topics? So that's driving the cloud native that push into, into the wallet of public. At the same time, our clients do have a number of requirements that really make them look and rethink and figure out how to evolve their data centers first. The first ones were regulatory, so you think about when you were the pharmaceutical GXP compliance, HIPAA in the healthcare side of things, you know, GDPR, so I've got companies that regulate that regulatory. >>What was perceived as a barrier, particularly in some of the more difficult regulatory environment and while the public providers are really evolving and starting to get better regulatory posture is at the same time a lot of our clients were making investment and decide, Hey, how do I really build my private cloud? I'm another big driver that people continue to look at private clouds, whether they're in their data centers or increasingly moving Nikolas is to scale up architectures like high terabyte HANA. If I want a 64 terabyte HANA deployment, while while the AWS footprints get bigger and bigger, sometimes just performance and tuning for those high scale an environment is a big deal. Article article racks, a great example where it's not only do you have something in a highly tuned environment but be given, given some of the licensing arbitrage stuff, it makes it extremely difficult. >>And in a big part of it is data gravity. If I've got these big data sets, if you think about fraud analysis in Hadoop clusters for credit card processing, where I've got high terabyte HANA database, I've got 20 or 30 applications that need to access that data. I can't really put it over a wide area network due to latency. And you know, the cost of moving data around. So what you ultimately end up with is applications clustered around lakes, big pockets of data. And I think that's where we're ending up. And that will be across a hybrid architecture. So that's, we call it, you know, as you look at balancing your apps and your data across public private solutions. That's why we view hybrid as the way that most of our clients are going, given the scale and the amount of applications and data they have. So that's what we refer to as the best of both worlds for hybrid. >>So I saw you nodding a lot. Allow what he was saying for sod. How do you, I mean, as you said, it's a balancing act in terms of how you set your strategy. How do you recommend companies go about thinking in terms of how they allocate their, their cloud? >>Yeah, so I think, you know, we have particular really, really take an application centric approach. Um, you know, I'll go back a couple of years, uh, when our clients were really looking to, uh, really use the public cloud and then they've signed up with one or more public cloud providers and then they, you know, move some applications and then some of them have actually taken a step back. In fact, there's a very global investment bank that I've been working with, um, who, who are taking that approach initially. And now what they've done in working with us is taking a very application centric approach. So we studied their entire suite of applications, understand from a regulatory perspective, from a compliance perspective, from a perspective of security. And this is a global bank. So there are different rules in Europe versus the United States. And so on. So based upon all that we come up with an approach on ward should reside in a private cloud as opposed to orchard resided in a public cloud. >>And you know, obviously there are multiple providers that are reasons to go with more than one cloud from a public perspective, et cetera. So we advise them on that. And then once we're able to do that, then we chart the journey on, you know, what application gets moved and when, and certain applications are very important to them from a performance perspective and they need to scale up and so on. So in those cases, you know, we treat them differently in certain other application cases, you know, we moved them onto a pass and in some other cases, you know, we just move these application into new what's available from a SAS perspective. So really it's a very much an application centric approach on where the workloads, >>is it a living and breathing thing. I mean, we talk about cloud being this journey. It's not a destination. Does this change over time? I mean, it absolutely does. I mean, it's constantly evolving. You know? Did you date or patterns are coming out there? And it was interesting like if you have, a couple of years ago, all we talked about was the app. How are you going to modernize this six or seminars when you get re-imagined in there. But all of a sudden a lot of the conversation shifting, shifting to my data strategy, where did this data reside? Particularly as the data sets get larger and that's moving from what was very centralized in the public data centers into much more distributed architecture. So we see it evolving very quickly. And even with a single application, a great example with a global hotel, they had a reservation system that was strategic application running on an old IBM mainframe. >>They were finding it was just taking too long to get innovative and agile to really support the new mobile applications, their web channels. So they looked at the, Hey, if I were just re-imagine, rewrite this, you know, go put it up in Amazon hot, how long would it take? How much would it cost? They found it was even going to be two or three years and they didn't have the luxury to wait, so they basically wrap that application with API APIs. They expose it with microservices and then developed a cloud native front end with the database cache new technologies that they can now drop every three or four days. They can now get a new mobile application, so you've got agile delivery, they've still got the legacy stuff there. The data's still there now. Now when you go against their web and mobile application, you, you're actually browsing against that new cloud native, you know the database cache. >>When you look at rates and rooms, et cetera, it's only when you transact and reserve the room that it goes back to the main frame. So you agile delivery, they get a lot of the benefits there and then they can offload a lot of the processing on the mainframe. It's only read all the reads up front now and slowly deprecate that over time. Now they, they're now that very interesting hybrid deployment architectures. They, they have a container approach. This database caches, they have two clusters. Those containers running on private cloud, on VMware, and then one running in AWS so they're now can optimize across the public and or hybrid footprint. You know how they do this over the time they then look to evolve that application and started an introduce serverless. So starting to take advantage of Lambda. So there even within a single application you can see it's constantly evolving. They starting in an advantage of the next evolution. So the next one to move beyond containers into more serverless. >>So I mean you both have just given me terrific examples. Your years in financial services, years as a, as a hotel chain. How do you develop best practices? I mean when you're working with clients or really is it case by case? I mean you talked about the decisions and the allocation of cloud. Of course there are regulatory constraints for each company, but are there industry wide best practices? Absolutely. Absolutely. >>I do want to hear, sure. So I'll start with financial services as an example. So if you take the world of banking or insurance, there's obviously, you know, regulatory requirements, compliance requirements that they have to look at. And also if you look at, for example, in banking, a lot of it is very mainframe based. You know, they have very old core banking systems, which is not possible to really move all of that onto public cloud necessarily. And maybe the business case isn't even there. So we have to take a digital decoupling type of approach and figure out, you know, how do we take some of the best bits and then put that on public cloud while still keeping some of the major amount of data is still on the legacy side. So I think it's really an industry specific approach, which on top of which you have to layer on what the local requirements are. >>Yeah, absolutely. I mean, so I spent a lot of work with the life sciences department ceuticals and GXP compliance rules the day there. So how did they start to, they started off, you know, how do we get to private clouds that look and feel a lot like public and then start to move and test the test the waters as they start to migrate into the AWS as a little world. So it is very regular industry specific. So we've, we basically developed a library of this is how you know, this is how you solve for banking, you know, the retail bank on a mainframe, how do I do similar pattern to that hotel front ends. Reinsurance is actually very similar to a lot of, lot of the logic on mainframe. It doesn't make sense to rewrite. There's not enough value in that if I can wrap it in microservices and move out. So that clouds, I mean their roadmaps, obviously every given the scale and complexity of our clients, everyone's going to be slightly different. But they're patterns that are very industry specific. And it gets getting even more interesting as we start to get in, move into IOT and edge. Because when you get into like the, the connected oil and gas or connected mine, all of a sudden it becomes extremely verticalized in industry and industry. >>So the hybrid Creek solves a lot of problems, but I imagine it also creates some other challenges too. What are the challenges and how do you counteract them? Do you want to start Larry? >>Yeah, sure. I mean it's not just hybrid. I think it's, we have much more complex architectures. So with all the power of digital decoupling, you know, creating microservices architectures, being able to pick best of breed services as everything becomes much more dynamic and ephemeral. So we moving for a world where a server in a virtual machine would be up for like 12 months or 15 months to containers that have lifespans of minutes or hours or even seconds now managed in a much more dynamic way with Kubernetes. So that that hotel was 15,000 containers managed by Kubernetes optimized over that environment and even more with serverless. So you've got a very complex environment to manage. And I think as our clients start to really evolve that the application portfolios, you know, SAS cloud, native wrapping legacy, the ability to then seamlessly manage across that environment and optimize and, and even the optimization in the old days we used to optimize around one or two dimensions was a cost or performance and SLA is now we've got to simultaneously take this very complex environment and optimize across performance, service levels, security, compliance and cost. >>So it's not just about cost optimization and they offset each other. If I'm optimizing for performance and service levels, my cost probably goes up. So it becomes a very complex problem. So spend a lot of time looking first. First starting with the operating model, you'd got to operate differently. How do you really get dev sec ops involved so that operations and security baked in, right? When you do the analysis so you're not building something that can't be secure operated and then really transforming the people, right? I mean the one of the hardest thing and place where our clients struggle the most is how do they upskill their organization, change the culture, the behavior. Because great example is we look at how we operate cloud and infrastructure. We want to turn all operators from eyes on glass looking at consoles into developers who are writing the next analytic algorithms to figure out predictive operation, to doing the automation script, to take, to remove mistakes, streamline drive agility, and reduce costs. And ultimately to tune the AI engines that are going to need it to do that. Complex optimization across very, very, very complex architectures. >>So you're talking about the people and the change management. I want to ask about innovation within Accenture and AWS. We heard Andy Jassy this morning in his fireside chat talk about how the company is now obviously a ginormous company, but how it really still has this startup mentality and how and how and what he does to ensure that innovation is still a priority, a relentless focus on the customer, de-centralized nature of the organization. Really focusing on what you're good at, knowing what's in your wheelhouse, how do you think about innovation and hadn't then how do you help clients make sure that they are bringing people along and as you said, give, giving them the sort of developer mindset. Do you want to, >>yeah, so that's absolutely important for us, innovation is very much part of our culture. When I look at my own group, which is intelligent cloud and infrastructure, what we do is we have 30,000 people who are working everyday at our clients and in many ways they understand the client's landscape even better than anybody else because they're working there every day. So some of the things that we do with our clients, our innovation forums where our people bring forward ideas to suggest to clients. So this is something that we do on a regular basis, take it to our clients, CEOs, and invariably several of these ideas actually get put into their whole plan for the following year. So we go innovate with our clients. We've created several digital studios and liquid studios in multiple locations. We've got several of them across the globe. So we bring our clients in for design thinking workshops, suggest ideas and you know, and await with them on things that we can take forward. >>Yeah, and just just to further that, I mean we've always driven it an innovation agenda. We always try and figure out what's next, where do we invest? What's the next bet? I mean, even going back to our cloud first days, I mean we've always been pushing the envelope. I think what Prisaad hit on is a really a step change for us in how we engage. I think in the past we'd come in as the consultants present, et cetera. And I think our clients are bright people. So actually engaging with them and more design thinking. I, we acquired a bunch of digital studios, Fjord and stuff, and I think they've infused this culture of coasts, co-sourcing, collaboration, and creating together. And the dynamic just changes and it's fantastic when the client then is in the room. They own it with you, they close, co-creating. And I think we've been spending a lot of time on how do we transform how we interact and engage with our clients in a much more collaborative way. And it's really changed the changes your relationship with them >>and the technology enables that to Larry and Priscilla, thank you so much for coming on the cube. A really great conversation. Thank you, Rebecca. I'm Rebecca night's stay tuned for more of the cubes live coverage of the Accenture executive summit. Coming up in just a little bit.