>> Announcer: Live From Las Vegas, it's theCUBE. Covering AWS re:Invent 2017. Presented by AWS, Intel, and our ecosystem of partners. >> Hey, welcome back to theCUBE. We are live on day three of our continuing coverage AWS re:Invent 2017. We've had an amazing three days, lots of great guests, lots of great conversations. I am Lisa Martin with my co-host Keith Townsend, and we're very excited to be joined by two guests new to theCUBE, please help us welcome Adam Burden, the Senior Managing Director of Advanced Technology and Architecture at Accenture, welcome to theCUBE Adam. >> Thank you so much. >> Lisa: And Sandra Stonham, one of the Managing Directors of Technology and Operations at DBS Bank, welcome-- >> Thank you. >> All the way from Singapore. >> Thank you, yes. >> Great to have you guys here. So we hear great things about there is a remarkable story that DBS has, that started last year when you guys attended the AWS re:Invent 2016. Talk to us about what you discovered last year and how this has facilitated your journey to cloud, your transition. >> So if I may, maybe I'll start just a little bit before that, because actually we had been playing with AWS before that. We actually have a huge transformation, transformation strategy that takes us towards cloud. So we've actually been using AWS for infrastructure as a service just scaling. We were putting our trading system grid on to that, so, that was our initial exposure, and then what happened to AWS last year is that I came to re:Invent and I saw all these rich, rich services that AWS were providing and I thought, we actually can't afford not to be building on this. So, from then, I went back, and with my organization I basically said, look, we need to be building natively on AWS, and so that's what we've been doing. We invited Accenture to come and help us because they actually have more experience of building natively on AWS, taking advantages of those services, and we invited them in, they've been working together with us, and we've got now native AWS applications using serverless. >> So Sandra, talk to a little bit more about that process, because, politically it's tough to move something as very consistent, very stable, as a bank, to digital transformation, and then even select not just a partner to help that transition, but AWS. How was that first set of conversations when you got back from re:Invent 2016, excited about the transformation opportunities, what were some of the internal discussions? >> Well as I said, we actually had a whole technology transformation strategy underway at that point, so we'd actually really looked deeply at ourselves and we looked also at the tech giants that are out there, and we'd created this whole technology transformation strategy that basically meant that we needed to go completely cloud native. Cloud native infrastructure, cloud native applications, complete automation on everything, and a very agile, agile and fast moving business environment as well to work with us. So we actually had that whole strategy in place and that was all underway, and we starting to work with AWS, so this was actually just an extension of that strategy. >> Tell me a little bit about this digital transformation strategy, I'm sure a lot of others would love to learn from what you guys are doing. What were the top three business goals that this transformation strategy needs to drive? >> What we did, actually maybe I'll tell you a bit about it. We call it Gandalf, and the reason we call it Gandalf is we actually took a look at our, all the tech giants, and we said, how can we DBS be standing tall among the tech giants. So the tech giants that we looked at were Google, Amazon, Netflix, Apple, LinkedIn, Facebook. And we said, how can we be the D in Gandalf. That kinda became our sort of code name and our galvanizing strategy. To help people understand what that really meant internally, we actually came up with five key themes, and we put them in a wheel, and we've got kinda five cheeses in the wheel if you like. Three of them are really about the organization and the culture, so one of them is organize for success, one of them is to change from project to platform, one of them is high performing agile team. So those are kinda the three organization and culture focus. Then we have two that are very specific to technology. One of them is design for modern systems, and the second one is automate everything. On each of these five themes we then have a whole load of sub-themes and that give people a little bit more idea of what they can do, and that strategy we've found has been very galvanizing for the whole organization so that everybody in the organization, they know if they are aligning to the strategy because they're doing one or more of these themes or sub-themes. >> So Adam, this is kind of the perfect customer. They already gone through a transformation, you don't have to have the conversation, cloud isn't a technology, it's more of a business process. What was it like engaging DBS for the first time in their transformation? >> Well the good news is, I was actually with Sandra at the re:Invent Conference last year, so I saw some of the light bulbs go on during that process. We engaged with DBS, they've been a client of Accenture for many many years, and we're delighted to have an opportunity obviously to work with them. Going in and having these discussions though, and helping them identify the right workloads to move to serverless technology, is something that we've done a lot for other clients. We move workloads all the time to AWS, and there's lots of different techniques to do that. You can just lift and shift, you can move things into containers and move them, but for the right workloads, you can get truly break through results, benefits and value release, by moving them to serverless. That's what we're able to identify for them and we worked through a process to do exactly that with that experience. It was actually very pleasant because we'd had an opportunity to see that process from the very beginning and I think that the inspiration at the end of that, that we've created about the value that can be generated is going to help to really drive even further adoption of cloud and other serverless technologies at DBS as a result. >> One of the things that I love that you were talking about is the cultural transformation. How long has DBS been in business? >> Sandra: Since the 1960's. >> Quite a long time, so the strategy that you laid out, I love also, not just the cultural transformation, those are hard and so challenging, but also the fact that as a bank, you want to be like one of those big tech leaders, and I think that's gonna be incredibly inspirational for people to hear your story that even in terms of adapting the culture, but even attracting talent that you have such big aspirations. How did you establish the strategy? What were some of the cultural elements that you have successfully changed and how quickly were people able to get on board with this? >> It's a very long journey and there are many different facets to that journey. We have a CEO who's very driven to be digital to the core. He's very visionary and has really sorta set targets for us as an organization. Embracing digital, embedding ourselves in customer journeys, driving for joyful customer journeys, making banking joyful is one of our missions. So he really set some of these strategies even challenging us as well to be a data driven company because we feel that's very much the future. We have a CEO who's really set many of these strategies out there, but even so, to make it happen in the organization is difficult. The agile teams is one aspect, where we've really been looking at what does it mean to be agile and sometimes you can be tech agile but not business agile, and so what does it really mean to be business led agile? So that's a long learning journey we're still on it. But we're getting some successes and so now that helps to start get other people on board. We also look at innovation, so we have an innovation officer and he feels that his job, his job of himself and his team is not to produce product, but to actually change the culture of the organization so that we look like a 22,000 person start up. He tries to, on many many different things, whether he's bringing in speakers, or whether he's out working with us to align to start ups and work with start ups so that we can really get exposure to how start ups work. Many many different aspects of what he does to just encourage innovation among everybody, right from the senior leadership down. So many different aspects of the cultural transformation. Another area is one we're grappling with at the moment, is how we do funding. When we want to move from projects to platforms, how do you take away that big cumbersome way of working where you fund these big initiatives and you have to wait for a long time to get any output and how do you move that more to a sort of iterative evolution of a platform that the business really owns and champions. All of these things, it actually crosses all aspects of the organization and I think you have to do all of them. You have to take every facet and work on it, and move it forward. >> So Adam, large company like DBS comes to you with these big aspirational goals, become a platform, from a technologist perspective, architect, that's exciting to hear. However, baby steps and chunks. >> Right. >> What were some of the first steps that you guys took after identifying opportunity and workload, what was some of the first technologies you engage AWS with? >> Well, Accenture, well first of all, I should probably explain that I'm a customer of DBS as well, they're my bank in Singapore, so I care very deeply about making sure that the work we are doing, even more so than Accenture would normally. (laughing) The things that we do to help a client get started on a journey like this, first of all, helping to identify the applications. A lot of times, one of the very first things that we do is we look at different patterns. Almost like a sewing pattern that you would follow and be able to repeat over and over again, different patterns for how workloads should actually move. We use those as ways that developers can kind of follow a recipe book almost, so that in the future as they're moving new workloads or they're building new services, that they do it in a very similar style and technique. Those initial steps, those processes, kinda set the tone for how the migration process will go, and you can really expand from there. If you try to do too much at once, without really getting a nucleus of it right, you'll have a lot of varying standards and it'll be much harder for you to be able to make the kind of progress that you want. So we typically try to start with a really good marquee, couple of projects, get those going really really well, save those patterns and then expand upon them as more and more workloads actually move. That's one of the key elements of success we find early on. >> Well Adam, as you engage with customers, and you're coming to a show like this, it's great that a customer gets really excited about the business opportunity, but working internal IT for long time, exposing just a little bit of the capability of AWS is both good and bad, because now you've exposed AWS and developers want the whole thing. They'll look at something like Sage, SAS Master I think it is, is the AI solution from yesterday. >> Or Recognition. >> Yeah. >> Yeah, yeah, yeah. >> I want that today. But you have to be able to roll it out in a controlled fashion. How do you guys handle governance once you've embraced a opportunity and the relationship with a company like AWS? >> Well I can speak about, why don't Sandra, why don't you talk about that from DBS's perspective and then I'm gonna give you Accenture's as well. >> So no doubt about it, it's challenging. But governance is changing, regardless of whether you're looking at cloud internally or cloud externally, governance is changing. Now the whole focus is to give developers self-service access to everything they wanted. Everything they want to be able to do, so they can deploy, they can run tests, they can do all of things themselves. So that applies whether you're looking at private cloud or whether you're looking at public cloud. Now obviously in public cloud, all of those controls that you have internally, not only they need to change for the new world, but they also now need to translate, if you like, into public cloud. So things don't just necessarily, you can't just necessarily move them and apply the same things to public cloud as you do to private cloud. You have to go and reinvent them in public cloud. AWS is good in that they give you all the tools to do it, but the tools are not already set up, so you do have to learn about it and you do have to build slowly over time. That's why we started with simple things like infrastructure as a service which we can just scale up and down and now are moving to the more complex which is using the native services, which obviously need more governance around them and contain more data. So it's a learning process, but basically if you've got a great organization internally that really understands what it is you're trying to control, then you need to be able to translate that and see how that applies to AWS. >> One of the things that interests me Adam, is what you talked about with the recipes. Recipes, the consistency, how important was that for DBS Sandra, in terms of, alright they've got some prescriptions here on how we can be successful, talked about governance, the steps to take, so that like Keith was saying, you get exposed to all these things, you gotta kind of control everybody. But talk to us about the recipes and this kinda playbook for success, and what that means to DBS to be able to do things in a streamlined fashion and be successful. >> That was the real reason that we brought Accenture on board is because they've actually looked at applications before, in house applications that we've, that the people have built, and then they've looked at what would that look like if you were to rebuild that from scratch on AWS using native services. So they were able to work with us and work through difficulties with us to actually transpose those applications onto an AWS native format. That was actually very helpful, and that's been our learning. So the team that's been working together with Accenture has now learned, we've taken other applications from there and we're now looking at just starting directly building natively on AWS based on what we've learned. It's very valuable and I would say expedited our journey. >> Excellent. >> So let's talk about some of those newer services. Infrastructure as a Service, we can do what we do in our data center today in AWS much faster, there's instant value there, but as we start to expand out and look at something like serverless, how is DBS and Accenture in general looked at something like serverless and taken advantage of lamda? >> I'll tackle that one first maybe. Serverless technology for Accenture has been something that has really allowed our clients to move from looking at cloud as a data center to looking at cloud as a platform. It's an epiphany actually for many of our customers where they look at, well, absolutely, we can move our workloads into cloud, well maybe we'll get a lower operating cost, maybe we'll get some other benefits of being there, but now I can begin to actually, in serverless and other techniques, I can take advantage of the native services there to actually operate at a far lower cost and enrich it with new capabilities. Think about adding text to speech capabilities from Polly, think about adding image recognition facilities. Think about the other capabilities that you can now have because you're on a cloud platform that you wouldn't have if all you were looking at it was as simply another data center. That is the light bulb that goes on, and why I think serverless from a breakthrough standpoint, about the cost structure, the granularity of how things are metered and actually priced. But then the richness of features that are available, you're inventing your future there. It's available at your fingertips. You do have to control the governance, you do have to make sure that you're, you've got some guardrails around that, but the developers will be incredibly creative with those services and you will have new features that'll delight your business users and your clients much faster than you'd ever been able to in the past. >> I love that, ignite your future. I wish we had more time, because I wanted to ask you both about what you're excited about that was released and Adam got this great grin on his face, but unfortunately we are out of time. We wanna thank you both Adam and Sandra for joining us and sharing what you guys are doing. Sounds like the light bulbs are going off, continuously burning, and we look forward to hearing more of your great successes. >> Great. >> My pleasure. Thank you so much. >> Thank you very much. >> Thank you. >> Thank you. >> And for my co-host Keith Townsend, I'm Lisa Martin, you're watching theCUBE live from AWS re:Invent 2017. Stick around, day three of coverage, we've got more great stories coming back.

>> Narrator: Live from Las Vegas, it's theCUBE. Covering AWS re:Invent 2017 presented by AWS, Intel and our ecosystem of partners. >> Hello and welcome back. Live here is theCUBE's exclusive coverage here in Las Vegas. 45,000 people attending Amazon Web Services' AWS re:Invent 2017. I'm John Furrier with Lisa Martin. Our next guest is Miles Kingston, he is the General Manager of the Smart Home Group at Intel Corporation. Miles, it's great to have you. >> Thank you so much for having me here, I'm really happy to be here. >> Welcome to theCUBE Alumni Club. First time on. All the benefits you get as being an Alumni is to come back again. >> Can't wait, I'll be here next year, for sure. >> Certainly, you are running a new business for Intel, I'd like to get some details on that, because smart homes. We were at the Samsung Developer Conference, we saw smart fridge, smart living room. So we're starting to see this become a reality, for the CES, every 10 years, that's smart living room. So finally, with cloud and all of the computing power, it's arrived or has it? >> I believe we're almost there. I think the technology has finally advanced enough and there is so much data available now that you have this combination of this technology that can analyze all of this data and truly start doing some of the artificial intelligence that will help you make your home smarter. >> And we've certainly seen the growth of Siri with Apple, Alexa for the home with Amazon, just really go crazy. In fact, during the Industry Day, yesterday, you saw the repeat session most attended by developers, was Alexa. So Alexa's got the minds and has captured the imagination of the developers. Where does it go from here and what is the difference between a smart home and a connected home? Can you just take a minute to explain and set the table on that? >> Yeah and I agree, the voice capability in the home, it's absolutely foundational. I think I saw a recent statistic that by 2022, 55% of US households are expected to have a smart speaker type device in their home. So that's a massive percentage. So I think, if you look in the industry, connected home and smart home, they're often use synonymously. We personally look at it as an evolution. And so what I mean by that is, today, we think the home is extremely connected. If I talk about my house, and I'm a total geek about this stuff, I've got 60 devices connected to an access point, I've got another 60 devices connected to an IOT hub. My home does not feel very smart. It's crazy connected, I can turn on lights on and off, sprinklers on and off, it's not yet smart. What we're really focused on at Intel, is accelerating that transition for your home to truly become a smart home and not just a connected home. >> And software is a key part of it, and I've seen developers attack this area very nicely. At the same time, the surface area with these Smart Homes for security issues, hackers. Cause WiFi is, you can run a process on, these are computers. So how does security fit into all of this? >> Yeah, security is huge and so at Intel we're focused on four technology pillars, which we'll get through during this discussion. One of the first ones is connectivity, and we actually have technology that goes into a WiFi access point, the actual silicon. It's optimized for many clients to be in the home, and also, we've partnered with companies, like McAfee, on security software that will sit on top of that. That will actually manage all of the connected devices in your home, as that extra layer of security. So we fundamentally agree that the security is paramount. >> One of the things that I saw on the website that says, Intel is taking a radically different approach based on proactive research into ways to increase smart home adoption. What makes Intel's approach radically different? >> Yeah, so I'm glad that you asked that. We've spent years going into thousands of consumers' homes in North America, Western Europe, China, etc. To truly understand some of the pain points they were experiencing. From that, we basically, gave all this information to our architects and we really synthesized it into what areas we need to advance technology to enable some of these richer use cases. So we're really working on those foundational building blocks and so those four ones I mentioned earlier, connectivity, that one is paramount. You know, if you want to add 35 to 100 devices in your home, you better make sure they're all connected, all the time and that you've got good bandwidth between them. The second technology was voice, and it's not just voice in one place in your home, it's voice throughout your home. You don't want to have to run to the kitchen to turn your bedroom lights on. And then, vision. You know, making sure your home has the ability to see more. It could be cameras, could be motion sensors, it could be vision sensors. And then this last one is this local intelligence. This artificial intelligence. So the unique approach that Intel is taking is across all of our assets. In the data center, in our artificial intelligence organization, in our new technology organization, our IOT organization, in our client computing group. We're taking all of these assets and investing them in those four pillars and kind of really delivering unique solutions, and there's actually a couple of them that have been on display this week so far. >> How about DeepLens? That certainly was an awesome keynote point, and the device that Andy introduced is essentially a wireless device, that is basically that machine learning an AI in it. And that is awesome, because it's also an IOT device, it's got so much versatility to it. What's behind that? Can you give some color to DeepLens? What does it mean for people? >> So, we're really excited about that one. We partnered with Amazon at AWS on that for quite some time. So, just a reminder to everybody, that is the first Deep Learning enabled wireless camera. And what we're helped do in that, is it's got an Intel Atom processor inside that actually runs the vision processing workload. We also contributed a Deep Learning toolkit, kind of a software middleware layer, and we've also got the Intel Compute Library for deep neural networks. So basically, a lot of preconfigured algorithms that developers can use. The bigger thing, though, is when I talked about those four technology pillars; the vision pillar, as well as the artificial intelligence pillar, this is a proof point of exactly that. Running an instance of the AWS service on a local device in the home to do this computer vision. >> When will that device be available? And what's the price point? Can we get our hands on one? And how are people going to be getting this? >> Yeah, so what was announced during the keynote today is that there are actually some Deep Learning workshops today, here at re:Invent where they're actually being given away, and then actually as soon as the announcement was made during the keynote today, they're actually available for pre-order on Amazon.com right now. I'm not actually sure on the shipping date on Amazon, but anybody can go and check. >> Jeff Frick, go get one of those quickly. Order it, put my credit card down. >> Miles: Yes, please do. >> Well, that's super exciting and now, where's the impact in that? Because it seems like it could be a great IOT device. It seems like it would be a fun consumer device. Where do you guys see the use cases for these developing? >> So the reason I'm excited about this one, is I fundamentally believe that vision is going to enable some richer use cases. The only way we're going to get those though, is if you get these brilliant developers getting their hands on the hardware, with someone like Amazon, who's made all of the machine learning, and the cloud and all of the pieces easier. It's now going to make it very easy for thousands, ideally, hundreds of thousands of developers to start working on this, so they can enable these new use cases. >> The pace of innovation that AWS has set, it's palpable here, we hear it, we feel it. This is a relatively new business unit for Intel. You announced this, about a year ago at re:Invent 2016? Are you trying to match the accelerated pace of innovation that AWS has? And what do you see going on in the next 12 months? Where do you think we'll be 12 months from now? >> Yeah, so I think we're definitely trying to be a fantastic technology partner for Amazon. One of the things we have since last re:Invent is we announced we were going to do some reference designs and developer kits to help get Alexa everywhere. So during this trade show, actually, we are holding, I can't remember the exact number, but many workshops, where we are providing the participants with a Speech Enabling Developer toolkit. And basically, what this is, is it's got an Intel platform, with Intel's dual DSP on it, a microarray, and it's paired with Raspberry Pi. So basically, this will allow anybody who already makes a product, it will allow them to easily integrate Alexa into that product with Intel inside. Which is perfect for us. >> So obviously, we're super excited, we love the cloud. I'm kind of a fanboy of the cloud, being a developer in my old days, but the resources that you get out of the cloud are amazing. But now when you start looking at these devices like DeepLens, the possibilities are limitless. So it's really interesting. The question I have for you is, you know, we had Tom Siebel on earlier, pioneer, invented the CRM category. He's now the CEO of C3 IOT, and I asked him, why are you doing a startup, you're a billionaire. You're rich, you don't need to do it. He goes, "I'm a computer guy, I love doing this." He's an entrepreneur at heart. But he said something interesting, he said that the two waves that he surfs, they call him a big time surfer, he's hanging 10 on the waves, is IOT and AI. This is an opportunity for you guys to reimagine the smart home. How important is the IOT trend and the AI trend for really doing it right with smart home, and whatever we're calling it. There's an opportunity there. How are you guys viewing that vision? What progress points have you identified at Intel, to kind of, check? >> Completely agree. For me, AI really is the key turning point here. 'Cause even just talking about connected versus smart, the thing that makes it smart is the ability to learn and think for itself. And the reason we have focused on those technology pillars, is we believe that by adding voice everywhere in the home, and the listening capability, as well as adding the vision capability, you're going to enable all of this rich new data, which you have to have some of these AI tools to make any sense of, and when you get to video, you absolutely have to have some amount of it locally. So, that either for bandwidth reasons, for latency reasons, for privacy reasons, like some of the examples that were given in the keynote today, you just want to keep that stuff locally. >> And having policy and running on it, you know, access points are interesting, it gives you connectivity, but these are computers, so if someone gets malware on the home, they can run a full threaded process on these machines. Sometimes you might not want that. You want to be able to control that. >> Yes, absolutely. We would really believe that the wireless access point in the home is one of the greatest areas where you can add additional security in the home and protect all of the devices. >> So you mentioned, I think 120 different devices in your home that are connected. How far away do you think your home is from being, from going from connected to smart? What's that timeline like? >> You know what I think, honestly, I think a lot of the hardware is already there. And the examples I will give is, and I'm not just saying this because I'm here, but I actually do have 15 Echos in my house because I do want to be able to control all of the infrastructure everywhere in the home. I do believe in the future, those devices will be listening for anomalies, like glass breaking, a dog barking, a baby crying, and I believe the hardware we have today is very capable of doing that. Similarly, I think that a lot of the cameras today are trained to, whenever they see motion, to do certain things and to start recording. I think that use case is going to evolve over time as well, so I truly believe that we are probably two years away from really seeing, with some of the existing infrastructure, truly being able to enable some smarter home use cases. >> The renaissance going on, the creativity is going to be amazing. I'm looking at a tweet that Bert Latimar, from our team made, on our last interview with the Washington County Sheriff, customer of Amazon, pays $6 a month for getting all the mugshots. He goes, "I'm gonna use DeepLens for things like "recognizing scars and tattoos." Because now they have to take pictures when someone comes in as a criminal, but now with DeepLens, they can program it to look for tattoos. >> Yeah, absolutely. And if you see things like the Ring Doorbell today, they have that neighborhood application of it so you can actually share within your local neighborhood if somebody had a package stolen, they can post a picture of that person. And even just security cameras, my house, it feels like Fort Knox sometimes, I've got so many security cameras. It used to be, every time there was a windstorm, I got 25 alerts on my phone, because a branch was blowing. Now I have security cameras that actually can do facial recognition and say, your son is home, your daughter is home, your wife is home. >> So are all the houses going to have a little sign that says,"Protected by Alexa and Intel and DeepLens" >> Don't you dare, exactly. (laughs) >> Lisa: And no sneaking out for the kids. >> Yes, exactly. >> Alright, so real quick to end the segment, quickly summarize and share, what is the Intel relationship with Amazon Web Services? Talk about the partnership. >> It's a great relationship. We've been partnering with Amazon for over a decade, starting with AWS. Over the last couple of years, we've started working closely with them on their first party products. So, many of you have seen the Echo Show and the Echo Look, that has Intel inside. It also has a RealSense Camera in the Look. We've now enabled the Speech Enabling Developer Kit, which is meant to help get Alexa everywhere, running on Intel. We've now done DeepLens, which is a great example of local artificial intelligence. Partnered with all the work we've done with them in the cloud, so it really is, I would say the partnership expands all the way from the very edge device in the home, all the way to the cloud. >> Miles, thanks for coming, Miles Kingston with Intel, General Manager of the Smart Home Group, new business unit at Intel, really reimagining the future for people's lives. I think in this great case where technology can actually help people, rather than making it any more complicated. Which we all know if we have access points and kids gaming, it can be a problem. It's theCUBE, live here in Las Vegas. 45,000 people here at Amazon re:Invent. Five years ago, our first show, only 7,000. Now what amazing growth. Thanks so much for coming out, Lisa Martin and John Furrier here, reporting from theCUBE. More coverage after this short break. (light music)

>> Announcer: Live from Las Vegas, Nevada. It's the CUBE, covering AWS re:Invent 2016. Brought to you by AWS and its ecosystem partners. (light techno music) Now, here's your host. >> And we're back, happy to welcome back to the program, regular guest on our program, David Richards, who is the founder and CEO of WANdisco. David, anything interesting happen since last time, you know, we've talked to you? >> David: Well I kind of got, you guys are a bad omen for me. Kind of left the CUBE in New York, got off a plane, got fired, and then four days later got reinstated. Apart from that, virtually nothing's happened actually. >> Hey, you know it's good coverage in The Financial Times, and then lots of press and everything, so lots more people know about WANdisco now, right? >> David: That's right, and I don't have Tourette's, I promise. (laughs) >> Alright, David, AWS re:Invent, I mean, pretty impressive show, you know we see you in a lot of shows, many of them interesting, lots of smart people but I mean, wow this is pretty impressive. They got up on stage lots of things that I'm sure interest you, give us your take of the show so far. >> It's fascinating, I mean, this sort of must have been, I wasn't there when, you know, Steve Jobs was launching the first Mac and so on, but this kind of feels, more than just a small movement. This is a large shift in enterprise, moving from On-premises to Cloud, I think it's unquestionable that's happening. I mean, I'm sure you've covered it this week on The Cube. I've not seen it, but 32,000 people are here. Virtually every single vendor that you could ever think of is exhibiting in this exhibit hall. You can barely move about the people. Our booth traffic has just been phenomenal this week, and it really feels like this is a seismic shift in the marketplace. I know we've been saying that for a while, but it really does feel that way. >> Why do you think now, is it just, we just got here, and it's the overnight success that's been ten years in the making, or was there an event or something that really, kind of, tipped it over to where we are, because clearly, it's very different than last year. >> It, sort of, Cloud V1, and you guys have been covering this for a long time, was really companies that were born in the Cloud, it was the Airbnbs, it was the Tinders, it was the Facebooks and so on. Those companies were actually made, born in the Cloud. What's now happening, clearly, is enterprise is moving to the Cloud, and Cloud 2.0 really is about a different set of requirements, a different set of customers. There are customers with massive petabyte-scale data sets that they really can't take advantage of, they can't really scale out, it's too complex for them to build many of the applications they need to build, they now have to move to Cloud, and, you know, 32,000 people are not here just for the sake of it, they're here because they have to be here, because they're moving, obviously, to Cloud, and AWS have such a massive lead, I think, in the Cloud at the moment and Enterprise Cloud, and that's probably why so many people are here. >> David, one of the interesting things to look at at this show is, Amazon has some opinions about where data lives, how it moves, where you process it, you know, all of those kind of things. You guys are kind of opinionated on those kind of things too so, you know, give us your view on those kind of, those guys. I mean, I made a comment on Twitter, it was like, "Hey, what do we call a data lake when it's in the Cloud now?" >> Jeff: Well look, that's what happens to Clouds, they-- >> One of the big reveals in Andy Jassy's talk this morning was a truck coming across the front of the stage, and I've had so many emails saying, is this real, is this a joke, are we now really moving data in a semi from On-premises into the Cloud? And, it's kind of interesting, I think it's a little bit of a gimmick to be honest with you, I think Amazon do lots of great things, there were lots of wonderful announcements today, like opening up Alexa and allowing, you know, and some of the things they're doing with serverless computers, just phenomenal, but I think a truck to move data from On-premises to Cloud, kind of feels like we're back in the 1970s to me, whereas I was talking to a, the CIO of an automotive company a couple of weeks ago. They have a problem where, you know, to move data causes an outage in their organization today of about 30 hours. Their data growth is going to be so vast, the velocity is going to be so great in the next 12 months, that if they use the existing technology today, that they have today, would take them in the region of a month to move that data. So, trucks are great for cold, archival data, well they might be great for cold, archival data, I'm sure you could figure out a better way, like the internet to move it, but for our active transactional data, data that changes and moves, that's critical to the organization, you simply can't put it on the back of a truck and basically mail it to Amazon with a Snowball, that really doesn't work, and I think the market really needs to be educated a little bit about what's possible. >> Well, and I don't know that Amazon would necessarily disagree with you. I mean, if you look at the Snowball family, they had the Snowball Edge out there, which was realization, hey I might want compute, and even, we're going to give you that new green grass Lambda, serverless type stuff, so that you can do processing where there's no network, or I can't do anything, but, I guess, we know from a physics standpoint, I understand, you know, the internet is great, but, you know, if I want to move, you know, 100 petabytes or more of data, you know, even if I'm a Telco, that's a ton of data that I need to move. So, tell me where there's this connect. >> So, the way that WANdisco's technology works, is we continually replicate data, so where every other form of data replication is time based, it requires the concept of a clock, like, even Google, who've got Google Spanner, which is kind of active/active replication, but relies on a satellite in the sky, on atomic clocks, GPS clocks on every single server. We don't have any of that reliance, we're transactional data replication, which means if something changes, it gets replicated, and that process is continuous, which means that you can basically move data applications without any downtime or interruption to service. And that's absolutely critical for what I called earlier Cloud V2, which is the enterprises moving to Cloud, they have to be able to get there without any interruption to service. Small data, yeah, you can use that kind of technology, or non-strategic data, yeah, you can use this kind of technology. Strategic data and strategic applications, trading systems, you know, you can't be 99.99% correct if somebody's got cancer or not, right? If you're using the Cloud, or machine learning technology to figure that out, you can't be, you know, almost certain, you need to be completely certain, and that requires data to be where it's supposed to be. >> So, Amazon's a partner of yours. What's it like being a partner of Amazon's these days? Give us your point on that. >> Amazon are a phenomenal company. They have to be, right, they've just built, probably the world's most valuable enterprise technology business by a country mile in ten years. I mean, it's just, you know, zero to 10 billion in (snaps fingers) the blink of an eye is just incredible. And part of their secret is, they base everything on data, and I've learned a lot from dealing with Amazon actually, everything is data driven. You know, they have this Five Why's, I'm sure you've read about it in the media, where you have to prove, through facts and figures, not sentiment, that something is so, and that's pretty uncomfortable for a lot of people. For us, it's not, and it's, working with Amazon, their requirements, the bar is so high it's made our products much much much better. They have a well-architectured review that they go through with all their partners. They're actually great to partner with, if you're not a very good company, I would, daresay, don't bother because they'll find you out very quickly. But they're a great set of guys, very very good to partner with, it's very black and white, it's very quantitative, but, yeah, they've obviously got a huge market. >> Yeah. One of the things I love about this show is that the quality of people, you know, is phenomenal, and you get such a, I mean, a huge cross-section, not only location, size, industry, but one of the things I think that is across everybody that comes here, is they're trying new things, they're open to, you know, moving forward, iterating, learning, which has been one of the things that, you know, we kind of say what holds companies back is like, oh I'm doing it the old way. So, what's your experience been with the users? Any stories you can tell from that standpoint? >> So, right down to the bottom of the organization, they're prepared to take any idea. I mean, Amazon Web Services, for goodness' sake was basically a paper that was written and presented to Jeff Bezos, right, who said, yeah that's a good idea to Jassy and said yeah, let's go off and do it. But they, virtually every innovation in their organization is somebody coming up with an idea. They have the mechanics and machinery to listen to that idea. We do it ourselves, so, we're looking at serverless compute and using Lambda so we can have replication literally as a service that you can just call, you can call Paxos, which is our core IP, it's based on Paxos, it's called DConE, so you can call that algorithm and get a replication service. So these concepts, some of the concepts that Amazon are introducing, their ability to move so quickly to introduce new products is because they have this innovative approach where they allow people, right down to the very bottom of the organization, to come up with new ideas and approaches to doing things. And it's perfectly fine for somebody at the bottom of their organization to challenge somebody at the top of the organization. In fact, they expect it. And again, that's not comfortable for a lot of people, but I like the way that they go around their business. >> I'm looking forward to, Alexa, how's my replication doing? (laughs loudly) >> Wouldn't that be great? >> Well, it's interesting you say that, we had Malcolm Gladwell on a month or two ago, and he talked about, the most powerful organizations are the ones that let the fresh ideas bubble up from the bottom because it's the people that have not been tainted by being in part of the company, that had new and creative and innovative, and a different way of looking at it, and oftentimes they get squelched, so the fact that they let those ideas come up, and also driven by data, pretty powerful. >> It's interesting being at the show this week, and I have two types of meetings, I have meetings with companies at the forefront of this Cloud revolution, companies at the forefront of building new, innovative applications that were designed for the Cloud, and then I have other meetings with companies, vendors, who have been caught out by this. They didn't see this coming, they didn't expect, you know, this sea change to happen as quickly as it's happening and they really are fighting and scrambling to know what to do, and this is everything from, you know, the big services companies, the big traditional enterprise storage companies are really struggling to understand what they're going to do with the Cloud, and they don't have those processes and procedures inside their businesses like we do. Like, they can't change and be agile and nimble and take advantage of these new products and markets that are suddenly appearing overnight. >> Yeah, it's funny, the guy from (mumbles) was talking about, they don't want to be a system integrator anymore, right now it's services integration and really changing the way you think about putting this stuff together, it's very different. >> It is very different, and, it used to be the case that you'd get, and I know we've all lived through this, you get the enterprise sales guy that turns up in the $2,000 suit and the Porsche parked outside, and comes in and sells you, you know, a piece of software, and asks you how your wife and kids are doing and all the rest of it. Look at the audience here today. They're not going to put up with, you know, that style of enterprise sales moving forward. People are buying stuff from a marketplace. The expectation is you can choose, select, deploy, and build applications yourself, and that's how many of these companies are operating today. So it's not just the sea change in the technology, the technology's facilitating completely different and new markets. >> Jeff: Behaviors, yeah. >> David, want to give you the final word on, as you leave this show, you know, your takeaways, what you want people to know. >> Clearly we're in an era where, this is going to be an Enterprise Cloud. Cloud 2.0 is all about enterprises that are taking their data from On-premises into the Cloud. It's happening very quickly. 32,000 people are here this week, they're here for a reason, because they have to be. This is a sea change in the marketplace, and I hope, well I know WANdisco's the vanguard of moving many of those enterprises from On-premises into the Cloud very quickly. >> Alright, absolutely, definitely agree with the sea change there. David Richards, founder and still CEO of WANdisco, really appreciate you joining us again. We'll be back to wrap up our coverage of today at AWS re:Invent 2016. You're watching the CUBE. (light techno music)

>> Narrator: Live from Las Vegas, Nevada, it's theCUBE covering AWS re:Invent 2016. Brought to you by AWS and its ecosystem partners. Now here is your host, John Furrier. >> Hey, welcome back everyone. We are here live in Las Vegas for AWS Amazon Web Services re:Invent 2016, their annual industry conference. The center of the universe in the tech world, 32,000 attendees, broke all records. It grew from 16,000 last year, almost double. I'm John Furrier with theCUBE. We are here getting all of the signal from the noise. Three days of wall-to-wall coverage. Our next guest Ramin Sayar, who's the President and CEO of Sumo Logic. Welcome to theCube, welcome back. >> Very well, thank you much. Nice to be here. >> So, when did you move over to Sumo Logic? >> So interestingly enough, it's two years this Friday. >> Okay so give us a quick update and then I want to dive into the relationship with Amazon. You guys clearly doing big data early. In the wave of the Hadoop is big data, but those other methodologies. Quick history of what you guys are doing now and status of the company. >> Sure. So the company is about seven years old. We were founded, born, actually bred on AWS. We don't have a single server in our place and interesting enough, the premise of founding Sumo, seven and a half years ago, actually was to build a multi-tenant SAAS-based machine data analytics platform to start to address a lot of the security, but also the operational issues that customers were facing. Our founders actually came from a security background and realized that rear-view mirror technologies and looking at historical aspects wasn't good enough. So low and behold, they made a big bet at that time, six years, almost seven years ago, to build exclusively on AWS and today, on an average day, we're ingesting about 70 terabytes of data, we're analyzing over 100 petabytes of data on AWS. >> So talk about the specific implementations. Obviously using all of the services, is there any particular ones, obviously storage, Glacier, you must be using some Glacier, but is it mostly S3, is it ElasticBox Storage? >> S3, C2, we use, obviously, some of the other services, but more importantly, we enable all of the services that AWS provides for their customers to be seamlessly supported by Sumo. So when you log into Sumo or you create a brand new account you give us your credentials, everything from Kinesis to Lambda, to EC2, to ElasticBox Storage, all of those are out-of-the-box that are supported. >> And you guys had a great booth last year. This huge booth, right in the front, with sumo wrestlers. I mean that stole the show in the age of Twitter and Instagram. The share of voice on that was pretty significant. >> Yeah I think there's an underpinning tone there, which is we want to wrangle your data, right. And no one knows big data more than a sumo. And we have earned the right now, after seven years in with 100 petabytes of data that we're analyzing every single day, to be a lot more prescriptive for customers in terms of how to approach the way they build, run, and secure these modern apps. >> We've been following you guys in context of the big data space. I don't think we've had a lot of briefings on the analysis side. I think we should get you guys certainly plugged-in with George Gilbert, our analyst, but what's interesting is the predictive marketing and then a lot of certain verticals were really in early on big data and you guys were there. What's evolved since then? Because now you're seeing, with AWS certainly, you've got streaming, you got redshift doing very well, the services that they've added on over the past few years has been pretty significantly and kind of right in your wheelhouse. >> Yeah. >> John: So what new use-cases are popping up now? What are you guys doing for business? What's some of the profile customers? How are they using Sumo and what's the value for them? >> Great question. So a few things we're seeing. One is with the availability of all these services that Amazon is providing, the cycle time for releasing new code and overall applications is becoming much less. And as a result there's not just a need to move to continuous integration or continuous deployment, it's about continuous updates. So the challenge that brings for a lot of our customers they need real-time visibility. We refer to that as continuous intelligence. So our platform is predicated on the fact that we have near real-time analytics streaming engine that as data is coming in, you can get visibility for your developers, you can get visibility for your operations teams, and you can get visibility for your security compliance teams. So let me give you a couple of examples. You asked for customers, Huddle is one of the customers they spoke about today. >> John: Jeff Frick and I love Huddle. >> Football videos, but you know they support Premier League, they support Aussie rule football, I mean there's a lot of sports right? And so they're uploading video and there's a great service not for just college or high school athletes, but professional athletes to understand their game and analyze their games. So underpinning that, actually Huddle's using Sumo to run their service, to manage their service. Not too distinct from Domo or Qualtrics or other customers like SalesForce, Adobe. We have customers like Land-O-Lakes. We do a lot in media and entertainment, gaming, online retailers. So what do they all have in common? They're either migrating to the cloud, one. Two, they're doing digital transformation or some sort of digital application initiative. Three, they need some way to get visibility real-time into their applications and services from a security perspective, but also an operational perspective. >> What's the driver for customers right now? Because one of the things we hear all the time is people are trying to account for their data. So analytics is kind of like this, well data warehouse was this old mentality, but now smart people started putting into mainstream, but now there's more of a data accountability aspect. The metadata, really valuable. How are customers doing that with you guys? 'Cause I can see them getting their toes wet with Sumo and then getting up and saying "Wow I can use some prescriptive analytics, predictive marketing", whatever the use-case could be, but now you gotta start thinking where's the data coming from and where's it accounted for. Is there a data economy? >> So what's interesting about that, you mentioned metadata, and that's what it's about. Our system, we ingest any type of structured or unstructured data. And we actually analyze a lot of the metadata. In fact, like I mentioned earlier, we're analyzing over 100 petabytes every single day on AWS. And so what we're able to actually help our customers do now is be much more prescriptive and provide insights as to the 1300 customers that are on Sumo, the 74% of them that run on AWS, about a quarter of them are using things like Lambda. Another two-thirds are using EC2, but how? And what types of queries are they doing? And what types of services are they building with Docker containers, or Mesosphere, or others of that type of services? So now we've actually entered a position where we're actually the trusted advisor for a lot of these companies in moving to the cloud, building new, modern apps because we've been doing it for seven and a half years. >> Yeah. >> Ramin: And so the metadata starts to become important because we actually put out a recent survey we called "The state of the modern app". And that whole report was premised on the 100 plus petabytes every single day over a six month period, how are customers using AWS, what services are they using and not using, and what should you consider? The number one thing we found in that report was only half of the customers, of which 74% of the 1300 run on AWS, were actually doing anything with CloudTrail with respect to security. That means the other half are potentially vulnerable to breach. >> John: Yeah. >> John: What percentage? >> 50%. >> So half were exposed. >> Half are exposed >> John: No audit at all. >> Ramin: No audit at all. So now we're actually proactively notifying them saying, "Hey listen for your type of deployment you're using these types of common services. Others similar to you should use the following." >> That brings up a good point. So let's unpack that because what that brings up is a lot of people get into data and they hear all this stuff in the news. Oh big data driven and you know they can drink the Kool-Aid and go "Okay I buy that vision." But there's some pretty urgent issues on the table that people got to deal with in the enterprise and or if they're cloud native and that is security. You mentioned it. I mean that has become such the low-hanging fruit for data analytics. So Splunk being very successful with that. Cyber, we talked to Teresa Carlson earlier. Their public-sector business is exploding, certainly with the CIA and others. I'm sure you guys got some of those clients. But that highlights that yeah that's all fine and dandy to do some nice stuff over here to figure out recommendation engine for this or that, when you got security holes out there. Are you seeing that on your end too? >> Well interestingly enough, that's how we started. We started with the goal of providing analytics and more importantly we wanted to democratize analytics initially for security in the cloud. And so, we actually before Amazon Web Services really built things like PKI or public key encryption or things around encrypting data transfer, we had built that into our system and service. So what we actually are able to do now is not only show how we can encrypt the data and do all this services, but show them how they should actually start to use CloudTrail and how they should architect these modern apps, and what things they should be concerned about from a vulnerability and risk point of view. One of the newest products that we just announced is in early-access around threat vulnerability and threat intelligence because now we're getting a 360 degree view for a lot of our customers because you saw today the hybrid announcement right? That's going to be there for a while. What Sumo allows a lot of our customers to do is from their on-premise data center to their CDNs to all their SAAS applications like SalesForce, or WorkDay, or DropBox, or Box to all those things running on ASH or Amazon and the like, we provide a whole 360 view. And we can actually now >> John: So you get real-time >> John: as well on that? >> Real-time. >> Ramin: So our system and service is predicated on a real-time data streaming engine. >> Yeah so you guys can coexist in multi-cloud world. >> Absolutely. >> John: That's your premise. >> Ramin: No pun intended right? (laughing) >> All right, let's talk about contextual data and what companies should do and why they should get you guys involved in the use-cases of going forward, planning. A lot of conversation here at re:Invent is AWS 2.0. They go on to the next level, Enterprise, a little bit more complicated than say Cloud Native greefield apps. How should they be thinking about their data? You've been doing this for seven years in AWS and you probably have clients that aren't on AWS some are, some aren't, that's the makeup. But generally what's the architecture? What should be holistic concept for CIO, CXO, or down to the practitioner level, what's the guiding principles? >> It starts with a fundamental principle of form follows function. And you know this is a sports analogy, but if you're not formed right, you're not going to function right. So a lot has to do with a conscious decision customers need to make in terms of how they're going to structure their teams and whether they're going to move to a true dev-ops model where they're pushing hourly, daily, weekly, and whether they need to or not for certain applications versus others. And then it goes into function in terms of how they start to architect their applications. What services they need to use. And we've actually learned that over seven and a half, eight years ourselves, seven which years were running on AWS. And so the advice often times we give to a lot of our customers is understand where the mission critical workloads that you need to migrate, categorize those. Second is, which of the greenfield apps you're building and why. And what type of retention and security policies do you need and these are the common services you should probably consider with AWS. And then third is, the other set of applications you don't really care about, leave them for now. Focus on your expertise here. >> It's really triaging the sequence or order of app rollout, basically. Well thanks for coming on theCube. Really appreciate Ramin. I want you to take a minute to close us out and talk about for the folks watching, what's new with Sumo Logic? Why should they be working with you? What's the pitch? What's new? What's relevant for you guys? >> Great, so obviously we're a big data company, but more specifically our service and our strategy was predicated on democratizing analytics. And so we refer to that as continuous intelligence. And so as this digital transformation is taking place, and we're seeing it here, we're seeing it across every part of the businesses, we are well suited for every company that's got either a migration effort or an active, new project going on AWS. And so we can provide a simple, secure, highly scalable machine data analytics platform as a service and that's what Sumo is all about. >> And your business plan for the next year is what? Knock down more customers? Do more product development? All of the above? Channel? What's the strategy? >> So good question. So on one hand we're introducing a new product. We've kind of hinted to some of that today with some threat intelligence. Second is, we just introduced a new product about a month ago that we're starting to monetize. It's about semi-structured data. And third is, we're gonna start to really expand our routes to market and channels. One of the things that we participated in recently with Amazon is the new Amazon SAAS marketplace program. We're in with a handful of companies that participate in design and development there. And so that allows very seamlessly for customers to come try, buy, and decide whether they go month-to-month, semi-annually, or year. >> Well that will accelerate the operational nature of your product. >> Absolutely, but that's the way we sell today. In fact, our whole business model is predicated on land and expand. You're probably familiar with this whole notion of cohorts. >> Yup. >> And that dollar retention. Well the median, if you look at PACCrest and Morgan Stanely and the other firms, tend to be 103 to 105. Best in class tends to be 110 to 115. We've been well north of 160 for 19 straight quarters. >> Well Jassie said that on his keynote today. The bombastic days of handwaving are over. If you don't see it right there, the value, in front of you, don't buy it. >> Don't buy it. >> It's really the marketplace's vision. >> That's marketplace vision and that's what we're all about at Sumo Logic. >> Ramir Sayar, President and CEO of Sumo Logic. Congratulations on your success. Continued success. This is theCube bringing you all the action live in Las Vegas for re:Invent 2016, I'm John Furrier. Be right back with more after this short break. You're watching theCube.

(uplifting music) >> Narrator: Partners. Now, here are your hosts, John Furrier and Stu Miniman. >> US Amazon Web Services re:Invent 2016 their annual conference. 32,000 people, record setting number. I'm John Furrier, Stu Miniman co-host in theCUBE for three days of wall-to-wall coverage. Day two, day one of the conference our next guest is Kiran Bhageshpur, who's the CEO and co-founder of Igneous Systems. He was a hot startup in the, I don't want to say storage area, kind of disrupting storage in a new way. Kiran great to see you, thanks for coming on theCUBE. >> Thanks a lot, glad to be here, John. >> So, you're living the dream the cloud dream, it's not a nightmare for you because you're one of the progressive new ways. I want to get your thoughts on Andy Jassy's Keynote because he really lays out the new mindset of the cloud. Your startup that you founded with your team is doing something kind of, I won't say contrarian, some might say contrarian, but contrarians usually become the big winners, like Amazon was a contrarian now they're obviously the winning. So, take a minute to explain what you guys are doing. You're funded by Madrona Ventures and NEA, New Enterprise Associates, great backers, smart. Your track record at Isilon, you know the business. Take a minute to describe what you guys are doing. >> Great, yes I will. So, Igneous Systems was founded to really deliver cloud services to the enterprise data center for data-centric workloads. So what to we mean by that? With cloud services, just like with Amazon, customers don't buy hardware, license software. They do not monitor or manage your infrastructure. They consume it across API and they pay for it by the drip rather than the drink. Similarly, the same case with us but we make that all available within a customer's data center itself. And we focus on sort of data-centric, data heavy workloads. I don't know whether you saw James Hamilton's-- >> Yeah. >> Speech yesterday, but he also talked about the same thing that Mary Meeker talked about earlier this year which is an overwhelming amount of data generated today is machine generated and machine consumed and that's growing really rapidly. And our view is the same techniques that have made Amazon so powerful and so valuable are needed out at the edge or on-premise, close to where users and machines are generating and using the data. So that's kind of what we do. Very much the cloud model taken out to the enterprise data center. So, think of it as a hybrid. >> Kiran, let's talk about storage and where it lives because I think something that many people miss is that cloud typically starts with very compute heavy types of applications and we know that data is tough to move. I mean, Amazon rolled out a truck to show how they move 100 petabyes. And not just to show it, this is a new product they had 'cause customers do want to be able to migrate data and that's really tough and takes a lot of time. You mentioned IoT at the edge, they announced kind of query services on your data up in S3, so what are you hearing from customers? You know, kind of large data from your previous jobs. Where's the data living, where's data being created, where does data need to be worked on and how does that play into what you're doing? >> That's a great question Stu. What we find with customers, especially the one's with large and growing data sets is there is still a challenge of not just how to go store it but how to go process that on the fly. On a camera today or a next generation microscope could produce tens of terabytes of data per hour and that is not stuff that you can move across the internet to the cloud. And so the ask and the call from customers is to be able to go ingest that, curate that, process that locally and the cloud still has a very compelling role to play as a distribution mechanism and for a sharing mechanism of that data. I found it pretty wild that a big part of Andy Jassy's Keynote was for the first time they talked about hybrid and acknowledged the fact that it is the cloud and cloud-like techniques out in the enterprise data center. So, I look at that as hugely validating what we have been talking about which is bringing cloud native paradigms into the enterprise data center. >> Let's talk about that operational model because what you're highlighting and what Jassy pointed out is an operational model now for IT. >> Kiran: Yep. >> How are you guys creating value for customers? And be specific, is it, 'cause the on-prem is not going away, we've talked about this before and certainly VMware sees the cloud but also on-prem too. What is the value for customers? Because now this operational model of on the cloud is there, one way-- >> Yes. >> But how do I get cloud inside my data center? >> The way we do that is, very similar to the cloud operating model, right? So, we sell customers essentially an annual subscription service and that service is delivered using appliances that are purpose-built. Think of it as, like snowball, if you will, that goes into the customers data centers fully managed by our software running in our cloud. So, for a customer point of view, it happens to live within their data center, but they are consuming it pretty much the same way that they would consume a cloud service. That's the value, it's the same tool chains, the same programming paradigms that they are used to with, say, a native OS. But within their data centers at lower latencies addressing the same things that Andy Jassy brought up, which is you need a truck to go move large amounts of data. >> Well, I want to also bring up James Hamilton's presentation. You mentioned that yesterday one of the key points he made was that scaling up for these peak loads like they have on the Friday's, their Prime Friday spikes, they do instantly and elastic is a big deal we know that. His point though was they would have to provision on bare metal or in the data center months in advance to even rationalize what that peak could be which still is an unknown number. So, the scale point and provisioning is a huge headache for customers, so that's why that's relevant. How do you guys answer that claim when you say, "Hey, I need stuff to be done fast, "I don't have time to provision"? How do you guys, do you address that at all? How do you talk to that specific point? >> We take care of the provisioning and the additional expansion and shrinking of capacity within the customer's data center, because just like Amazon monitors their infrastructure users in the data center, we do that for our infrastructure within the customer's data center, and therefore we can react to go scale up or scale down. But then there's another point to the whole thing, which is the interesting thing is the elasticity is much more important for compute as opposed to data. Data just linearly grows, you never throw that stuff away. The things that you captured, the processing is highly elastic and you might want to do some additional processing and burst out and so on. So, that's another aspect of hybrid we see with our customers which is, I want my work flow here, I want to be able to burst out to the public cloud for that peak capacity that I don't want to have infrastructure locally for. >> So Kiran, sorry. So James Hamilton's presentation talks a lot about, just that hyper scale. They claim they've got the most scale and therefore nobody else should do anything because oversimplifying a little bit, but we've got the best price, we've got the whole stack, give you all the solutions. You talk to enterprises. Scale means different things for different applications for what I need to get done, what I have. What does that really mean to you? How does that hybrid piece fit in to the whole scale discussion? >> So, a lot of what we do is really ride on the coattails of the Amazon and the Google and the Microsoft because everyone has access to the same raw components, hard drives and CPUs and so on and so forth. And then the question is how do you go assemble those in a form factor that is appropriate for that particular use case? If you're going to go build a data center that's one level of scale, but if you look at a vast majority of applications and enterprises, their scales are much smaller. So, we literally look at taking a rack of infrastructure which might have, say, 40 servers and a couple of switches in sheet metal and shrinking that to a 4U form factor which has got 60 of our nano servers which has got switches and has got sheet metal. So, it's shrinking the whole thing down. The economy's of scale are still quite compelling because we use the exact same raw materials from the same suppliers to the cloud guys, right? And the real difference in cost is how things are put together and how they are operationalized. In which case, we are much more like Amazon than not. >> The other thing that's really interesting to watch, if you look at Amazon's storage move, is storage is in a silo, they've now got all these services that I can start doing this. How does the enterprise look at that? How does the solution like yours enable us to be able to use our data more? >> I absolutely think there is a palpable need for and desire for those sorts of new paradigms in the enterprise data center too because what you can do with not just storage but with lambda and with a bunch of other advanced services on top of that, what that really does is allows enterprises and customers to just focus on what is differentiated to them. This is the whole low-code, no-code moment, if you will, right, movement, and that's a compelling trend. It is something that we've actively embraced. We've got our architecture enables that on day one and that's kind of the way you're going to go build applications now onwards. >> So will we see lambda functions calling things on your end? >> Stay tuned. I think my, yeah, stay tuned. >> That's a smile, that's a yes. (laughs) Talk about the drivers in your business, 'cause you guys are new, you're a startup. For the folks watching you're making some bets, big bets obviously funded by some pretty big venture capitalists out there. What is your big bet? Is it true private cloud is going to emerge on-premise? Is the bet that cloud adoption with scalable compute and storage is going to be unmanaged or manageless or serverless, what's the big bet? >> So our bet is the cloud is going to win and I mean the cloud paradigm, which means consuming infrastructure by the drip rather than the drink across APIs. Flexibility, agility is going to win. One answer which is very compelling is the public cloud today. We believe that similar patterns will exist on the on-premise world and we believe we are very well positioned to supply that thing. And the infrastructure which shrinks would be very traditional infrastructure and software technology stacks which has really existed in the enterprise data center for the last 20 years. That will shrink and everything will look similar as in highly flexible, highly scalable, very easy to go put things together and you're going to have very similar patterns in both the public cloud and within your data center. >> Our Wikibon research team is looking at the practitioner side of the market. One of the things they're observing is, among a lot of things, is that you're seeing AWS teams come together. We're seeing Accenture was on earlier talking about the same dynamic. That's the pattern that we're seeing is these teams are coming together, some handful of people, the pizza box teams-- >> Yep. >> As Jeff Bezos calls it, growing into fully functional bigger teams. So, depending upon that progression, what's your advice to practitioners? And how do you add value into this momentum of as they scratch their head go, "Okay, we're going to go to the cloud"? So they know that's the mandate. How do you help them and why should they look at your solution and where do you fit into that? >> So one of the things customers and partners tell us is we are a great on-ramp to the cloud if you will. Everybody wants to embrace the new programming patterns, new programming paradigms and many people have taken that big leap and done the full shift in one step. You've heard Finra, you've heard Capital One all of these guys talk, but not everyone is that far out there. So what we sort of become for these folks is a stepping stone. We are on-premise. It allows them to get used to it. They start using the same patterns that can scale there. There can decide what workflows remain local and why and what go there, and that's our view. We very much live in they hybrid world to burst out to the world, bring it back as appropriate. >> Kiran thanks so much for coming on theCUBE, we really appreciate it, we're getting the break but I do want to ask one personal question. You're back in the entrepreneurial zeal again, you've got the startup, you have some capital but you're not loaded with cash, a good amount to achieve what you need to do. What's it like for you right now? I mean, what do you believe in? What's your guiding principles and what's it like to get back on the entrepreneurial treadmill again? >> You know, it's actually quite exhilarating and liberating to be back in a startup environment because it forces you to focus on what is important what is urgent and important at all points in time, and a guiding principle for us is less is more. Let's be driven by customers and do what is required there and then slowly extend that out. And actually, being a startup and not having infinite money to throw like, large legacy players would frees you from trying to do too many things and focus on only what is important and that's really key to success. >> And how are you making the decisions as an executive like, product-wise? Is it more agile, are you guys doubling down? >> Very, very agile, we can move very quickly. Since we are delivering a service, we are continuously updating infrastructure just like Amazon does within their data center so we can turn around very, very quickly. So I'm very impressed the fact that the Amazon rolls out 1,000 new features this year, but I can see how that is possible at scale and that's what we're doing. >> At Isilon you were very successful scaling up that generation of web scale, we saw that with Facebook and the Apples of the world. What's different now than then? Just in the short years between the web scalers dominating to now full Multi-Cloud, Hybrid Cloud cloud. In your mind, what's different about the landscape out there? Share your thoughts. >> I think there's a couple of things. One of them is Isilon was incredible, was a very useful infrastructure, was something that was easy to deploy, but it was still that something you built, you managed, you owned, if you will. The big transition is away from that, from build to consume and not worry about that infrastructure at all. And that is not something that you can retrofit into an existing architecture, you have to start from scratch to go do that. So, that's the biggest number one. Two, second one is just the scale is bigger. You heard Andy Jassy talk about the exobyte moving problem and he commented on the fact that exobytes are not all that rare and he's true because you go back 10 years ago, maybe four companies had an exobyte problem. It's now a lot more than that. And so the scale is two or three orders of magnitude larger than when Isilon was growing up. >> Scales at table stakes and consumption of infrastructure, that's a dev-ops ethos gone mainstream. >> Yes. >> Thanks so much for sharing. We're live here in Las Vegas for Amazon re:Invent. I'm John Furrier, Stu Miniman, we're back with more live coverage, three days of wall-to-wall coverage. theCUBE will be right back. (upbeat electronic music) (relaxing guitar music)