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

>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. >>Everyone welcome to the cubes Live coverage of AWS reinvent 2020 virtual were virtual this year We are the Cube Virtual I'm your host John for a joint day Volonte for keynote analysis Andy Jassy just delivered his live keynote. This is our live keynote analysis. Dave. Great to see you, Andy Jassy again. You know their eight year covering reinvent their ninth year. We're virtual. We're not in person. We're doing it. >>Great to see you, John. Even though we're 3000 miles apart, we both have the covert here. Do going Happy birthday, my friend. >>Thank you. Congratulations. Five years ago I was 50 and they had the cake on stage and on the floor. There's no floor, this year's virtual and I think one of the things that came out of Andy Jessie's keynote, obviously, you know, I met with him earlier. Telegraph some of these these moves was one thing that surprised me. He came right out of the gate. He acknowledged that social change, the cultural shift. Um, that was interesting but he went in and did his normal end to end. Slew of announcements, big themes around pivoting. And he brought kind of this business school kind of leadership vibe to the table early talking about what people are experiencing companies like ourselves and others around the change and cultural change around companies and leadership. It takes for the cloud. And this was a big theme of reinvent, literally like, Hey, don't hold on to the old And I kept thinking to myself, David, you and I both are Historians of the tech industry remind me of when I was young, breaking into the business, the mainframe guys and gals, they were hugging onto those mainframes as long as they could, and I looked at it like That's not gonna be around much longer. And they kept No, it's gonna be around. This is this is the state of the art, and then the extinction. Instantly this feels like cloud moment, where it's like it's the wake up call. Hey, everyone doing it the old way. You're done. This is it. But you know, this is a big theme. >>Yes. So, I mean, how do you curate 2.5 3 hours of Andy Jassy. So I tried to break it down at the three things in addition to what you just mentioned about him acknowledging the social unrest and and the inequalities, particularly with black people. Uh, but so I had market leadership. And there's some nuance there that if we have time, I'd love to talk about, uh, the feature innovation. I mean, that was the bulk of his presentation, and I was very pleased. I wrote a piece this weekend. As you know, talk about Cloud 2030 and my main focus was the last 10 years about I t transformation the next 10 years. They're gonna be about organizational and business and industry transformation. I saw a lot of that in jazz ces keynote. So you know, where do you wanna go? We've only got a few minutes here, John, >>but let's break. Let's break down the high level theme before we get into the announcement. The thematic part was, it's about reinventing 2020. The digital transformation is being forced upon us. Either you're in the cloud or you're not in the cloud. Either way, you got to get to the cloud for to survive in this post covert error. Um, you heard a lot about redefining compute new chips, custom chips. They announced the deal with Intel, but then he's like we're better and faster on our custom side. That was kind of a key thing, this high idea of computing, I think that comes into play with edge and hybrid. The other thing that was notable was Jessie's almost announcement of redefining hybrid. There's no product announcement, but he was essentially announcing. Hybrid is changed, and he was leaning forward with his definition of redefining what hybrid cloud is. And I think that to me was the biggest, um, signal. And then finally, what got my attention was the absolute overt call out of Microsoft and Oracle, and, you know, suddenly, behind the scenes on the database shift we've been saying for multiple times. Multiple databases in the cloud he laid that out, said there will be no one thing to rule anything. No databases. And he called out Microsoft would look at Microsoft. Some people like cloud wars. Bob Evans, our good friend, claims that Microsoft been number one in the cloud for like like year, and it's just not true right. That's just not number one. He used his revenue a za benchmark. And if you look at Microsoft's revenue, bulk of it is from propped up from Windows Server and Sequel Server. They have Get up in there that's new. And then a bunch of professional services and some eyes and passed. If you look at true cloud revenue, there's not much there, Dave. They're definitely not number one. I think Jassy kind of throws a dagger in there with saying, Hey, if you're paying for licenses mawr on Amazon versus Azure that's old school shenanigans or sales tactics. And he called that out. That, to me, was pretty aggressive. And then So I finally just cove in management stuff. Democratizing machine learning. >>Let me pick up on a couple things. There actually were a number of hybrid announcements. Um, E C s anywhere E k s anywhere. So kubernetes anywhere containers anywhere smaller outposts, new local zones, announced 12 new cities, including Boston, and then Jesse rattle them off and made a sort of a joke to himself that you made that I remembered all 12 because the guy uses no notes. He's just amazing. He's up there for three hours, no notes and then new wavelength zones for for the five g edge. So actually a lot of hybrid announcements, basically, to your point redefining hybrid. Basically, bringing the cloud to the edge of which he kind of redefined the data center is just sort of another edge location. >>Well, I mean, my point was Is that my point is that he Actually, Reid said it needs to be redefined. Any kind of paused there and then went into the announcements. And, you know, I think you know, it's funny how you called out Microsoft. I was just saying which I think was really pivotal. We're gonna dig into that Babel Babel Fish Open source thing, which could be complete competitive strategy, move against Microsoft. But in a way, Dave Jassy is pulling and Amazon's pulling the same move Microsoft did decades ago. Remember, embrace and extend right Bill Gates's philosophy. This is kind of what they're doing. They have embraced hybrid. They have embraced the data center. They're extending it out. You're seeing outpost, You see, five g, You're seeing these I o t edge points. They're putting Amazon everywhere. That was my take away. They call it Amazon anywhere. I think it's everywhere. They want cloud operations everywhere. That's the theme that I see kind of bubbling out there saying, Hey, we're just gonna keep keep doing this. >>Well, what I like about it is and I've said this for a long time now that the edge is gonna be one by developers. And so they essentially taking AWS and the data center is an AP, and they're bringing that data center is an A P I virtually everywhere. As you're saying, I wanna go back to something you said about leadership and Microsoft and the numbers because I've done a lot of homework on this Aziz, you know, And so Jassy made the point. He makes this point a lot that it's not about the the actual growth rate. Yeah, the other guys, they're growing faster. But there were growing from a much larger base and I want to share with you a nuance because he said he talked about how AWS grew incrementally 10 billion and only took him 12 months. I have quarterly forecast and I've published these on Wiki Bond, a silicon angle. And if you look at the quarterly numbers and now this is an estimate, John. But for Q four, I've got Amazon growing at 25%. That's a year on year as you're growing to 46% and Google growing at 50% 58%. So Google and and Azure much, much higher growth rates that than than Amazon. But what happens when you look at the absolute numbers? From Q three to Q four, Amazon goes from 11.6 billion to 12.4 billion. Microsoft actually stays flat at around 6.76 point eight billion. Google actually drops sequentially. Now I'm talking about sequentially, even though they have 58% growth. So the point of the Jazz is making is right on. He is the only company growing at half the growth rate year on year, but it's sequential. Revenues are the only of the Big Three that are growing, so that's the law of large numbers. You grow more slowly, but you throw off more revenue. Who would you rather be? >>I think I mean, it's clearly that Microsoft's not number one. Amazon's number one cloud certainly infrastructure as a service and pass major themes in the now so we won't go through. We're digging into the analyst Sessions would come at two o'clock in three o'clock later, but they're innovating on those two. They want they one that I would call this member. Jasio says, Oh, we're in the early innings Inning one is I as and pass. Amazon wins it all. They ran the table, No doubt. Now inning to in the game is global. I t. That was a really big part of the announcement. People might have missed that. If you if you're blown away by all the technical and complexity of GP three volumes for EBS and Aurora Surveillance V two or sage maker Feature store and Data Wrangler Elastic. All that all that complex stuff the one take away is they're going to continue to innovate. And I, as in past and the new mountain that they're gonna Klima's global I t spin. That's on premises. Cloud is eating the world and a W s is hungry for on premises and the edge. You're going to see massive surge for those territories. That's where the big spend is gonna be. And that's why you're seeing a big focus on containers and kubernetes and this kind of connective tissue between the data machine layer, modern app layer and full custom. I as on the on the bottom stack. So they're kind of just marching along to the cadence of, uh, Andy Jassy view here, Dave, that, you know, they're gonna listen to customers and keep sucking it in Obama's well and pushing it out to the edge. And and we've set it on the Cube many years. The data center is just a big edge. And that's what Jassy is basically saying here in the keynote. >>Well, and when when Andy Jassy gets pushed on Well, yes, you listen to customers. What about your partners? You know, he'll give examples of partners that are doing very well. And of course we have many. But as we've often said in the Cube, John, if you're a partner in the ecosystem, you gotta move fast. There were three interesting feature announcements that I thought were very closely related to other things that we've seen before. The high performance elastic block storage. I forget the exact name of it, but SAN in a cloud the first ever SAN in the cloud it reminds me of something that pure storage did last year and accelerate so very, very kind of similar. And then the aws glue elastic views. It was sort of like snowflake's data cloud. Now, of course, AWS has many, many more databases that they're connecting, You know, it, uh, stuff like as one. But the way AWS does it is they're copying and moving data and doing change data management. So what snowflake has is what I would consider a true global mesh. And then the third one was quicksight que That reminded me of what thought spots doing with search and analytics and AI. So again, if you're an ecosystem partner, you gotta move fast and you've got to keep innovating. Amazon's gonna do what it has to for customers. >>I think Amazon's gonna have their playbooks when it's all said and done, you know, Do they eat the competition up? I think what they do is they have to have the match on the Amazon side. They're gonna have ah, game and play and let the partners innovate. They clearly need that ecosystem message. That's a key thing. Um, love the message from them. I think it's a positive story, but as you know it's Amazons. This is their Kool Aid injection moment, David. Educational or a k A. Their view of the world. My question for you is what's your take on what wasn't said If you were, you know, as were in the virtual audience, what should have been talk about? What's the reality? What's different? What didn't they hit home? What could they have done? What, your critical analysis? >>Well, I mean, I'm not sure it should have been said, but certainly what wasn't said is the recognition that multi cloud is an opportunity. And I think Amazon's philosophy or belief at the current time is that people aren't spreading workloads, same workload across multiple clouds and splitting them up. What they're doing is they're hedging bets. Maybe they're going 70 30 90 10, 60 40. But so multi cloud, from Amazon standpoint is clearly not the opportunity that everybody who doesn't have a cloud or also Google, whose no distant third in cloud says is a huge opportunity. So it doesn't appear that it's there yet, so that was I wouldn't call it a miss, but it's something that, to me, was a take away that Amazon does not currently see that there's something that customers are clamoring for. >>There's so many threads in here Were unpacked mean Andy does leave a lot of, you know, signature stories that lines in there. Tons of storylines. You know, I thought one thing that that mass Amazon's gonna talk about this is not something that promotes product, but trend allies. I think one thing that I would have loved to Seymour conversation around is what I call the snowflake factor. It snowflake built their business on Amazon. I think you're gonna see a tsunami of kind of new cloud service providers. Come on the scene building on top of AWS in a major way of like, that kind of value means snowflake went public, uh, to the level of no one's ever seen ever in the history of N Y s e. They're on Amazon. So I call that the the next tier cloud scale value. That was one thing I'd like to see. I didn't hear much about the global i t number penetration love to hear more about that and the thing that I would like to have heard more. But Jassy kind of touched a little bit on it was that, he said at one point, and when he talked about the verticals that this horizontal disruption now you and I both know we've been seeing on the queue for years. It's horizontally scalable, vertically specialized with the data, and that's kind of what Amazon's been doing for the past couple of years. And it's on full display here, horizontal integration value with the data and then use machine learning with the modern applications, you get the best of both worlds. He actually called that out on this keynote. So to me, that is a message to all entrepreneurs, all innovators out there that if you wanna change the position in the industry of your company, do those things. There's an opportunity right now to integrate with the cloud to disrupt horizontally, but then on the vertical. So that will be very interesting to see how that plays out. >>And eventually you mentioned Snowflake and I was talking about multi cloud snowflake talks about multi cloud a lot, but I don't even think what they're doing is multi cloud. I think what they're doing is building a data cloud across clouds and their abstracting that infrastructure and so to me, That's not multi Cloud is in. Hey, I run on Google or I run on the AWS or I run on Azure ITT's. I'm abstracting that making that complexity disappeared, I'm creating an entirely new cloud at scale. Quite different. >>Okay, we gotta break it there. Come back into our program. It's our live portion of Cube Live and e. K s Everywhere day. That's multi cloud. If they won't say, that's what I'll say it for them, but the way we go, more live coverage from here at reinvent virtual. We are virtual Cuban John for Dave a lot. They'll be right back.

>> live from Boston, Massachusetts. It's the Cube covering A W s reinforce 2019 brought to you by Amazon Web service is and its ecosystem partners. >> Okay, welcome back. Everyone's two cubes Live coverage here in Boston, Massachusetts, for AWS reinforce. This is Amazon Web services Inaugural conference around Cloud security There first of what? Looks like we'll be more focused events around deep dive security to reinvent for security. But not no one's actually saying that. But it's not a summit. It's ah, branded event Reinforce. We're hearing Mark Ryland off director Office of the Sea. So at eight of us, thanks for coming back. Good to see you keep alumni. Yeah, I'm staying here before It's fun. Wait A great Shadow 80 Bucks summit in New York City Last year we talked about some of the same issues, but now you have a dedicated conference here on the feedback from the sea. So as we've talked to and the partners in the ecosystem is, it's great to have an event where they go deep dives on some of the key things that are really, really important to security. Absolutely. This is really kind of a vibe that how reinvents started, right? So reinventing was a similar thing for commercial. You're deep, not easy to us. Three here, deeper on Amazon. But with security. Yeah, security lens on some of the same issues. One thing that happened >> and kind of signal to us that we needed an event like this over the years with reinvent was consistently over the years, the security and compliance track became one of the most important tracks that was oversubscribed in overflow rooms and like, Hey, there's a signal here, right? And so, but at the same time, we wanted to be able to reach on audience. Maybe they wouldn't go to reinvent because they thought I'd say It's all the crazy Dale Ops guys were doing this cloud thing. But now, of course, they're getting the strong message in their security organizations like, Hey, we're doing cloud. Or maybe as a professional, I need to really get smart about this stuff. So it's been a nice transition from still a lot of the same people, but definitely the different crowd that's coming here and was a cross pollination between multiple and I was >> just at Public sector summit. They about cyber security from a national defense and intelligence standpoint. Obviously, threesome Carlson leads That team you got on the commercial side comes like Splunk who our data and they get into cyber. So you started to see kind of the intersection of all the kind of Amazon ecosystems kind of coming around security, where it's now part of its horizontal. It's not just these are the security vendors and partners writes pretty much everyone's kind of becoming native into thinking about security and the benefits that you guys have talk about that what Amazon has to have a framework, a posture. Yeah, they call it shared responsibility. But I get that you're sharing this with the ecosystem. Makes sense. Yeah, talk about the Amazon Web service is posture for this new security >> world. Well, the new security world is if you look at like a typical security framework like Mist 853 120 50 controls all these different things you need to worry about if you're a security professional. And so what eight obvious able to do is say, look, there's a whole bunch of these that we can take care of on your behalf. There's some that we'll do some things and you got to do some things and there's some There's still your responsibility, but we'll try to make it easy for you to do those parts. So right off the bat we can get a lot of wins from just hey, there's a lot of things will just take care of. And you could essentially delegate to us. And for the what remain, You'll take your expertise and you'll re focus it on more like applications security. There still may be some operating systems or whatever. If using virtual machine service, you still have to think about that. But even there, we'll use we have systems Manager will make it easy to do patch management, updating, et cetera. And if you're willing to go all the way to is like a lambda or some kind of a platform capability, make it super easy because all you gotta do is make sure your code is good and we'll take care of all the infrastructure automatically on your behalf so that share responsibility remains. There's a lot of things you still need to be careful about and do well, but your experts can refocus. They could be very you know like it's just a lot less to worry about it. So it's really a message for howto raise the bar for the whole community, but yet still have >> that stays online with the baby value properties, which is, you know, build stuff, ship fast, lower prices. I mazon ethos in general. But when you think about the core A. W. S what made it so great Waas you can reduce the provisioning of resource is to get something up and running. And I think that's what I'm taking away from the security peace you could say. We know Amazon Web service is really well, and we're gonna do these things. You could do that so us on them and then parts to innovate. So I get that. That's good. The other trend I want to get your reaction to is comments we've had on the Cube with si SOS and customers is a trend towards building in house coding security. Your point about Lambda some cool things air being enabled through a B s. There's a real trend of big large companies with security teams just saying, Hey, you know what? I wanna optimize my talent to code and be security focused on use cases that they care about. So you know, Andy Jazz talks about builders. You guys are about builders you got cos your customers building absolutely. Yet they don't want Tonto, but they are becoming security. So you have a builder mindset going on in the big enterprises. >> Yes, talk about that dynamic. That's a That's a really important trend. And we see that even in security organizations which historically were full of experts but not full of engineers and people that could write code. And what we're seeing now is people say, Look, I have all this expertise, but I also see that with a software defined the infrastructure and everything's in a P I. If I pair up in engineering team with a security professional team, then well, how good things will happen because the security specials will say, Gosh, I do this repetitive task all the time. Can you write code to do that like, Yeah, we can write code to do that. So now I can focus on things that require judgment instead of just more rep repetitive. So So there's a really nice synergy there, and our security customers are becoming builders as well, and they're codifying if you moment expression in code, a policy that used to be in a document. And now they write code this as well. If that policy is whatever password length or how often we rode a credentials, whatever the policy is where Icho to ensure that that actually happening. So it's a real nice confluence of security expertise with the engineering, and they're not building the full stack >> themselves. This becomes again Aki Agility piece I had one customer on was an SMS business. They imported to eight of US Cloud with three engineers, and they wrote all the Kuban aged code themselves. They could have used, you know, other things, but they wanted to make sure it's stable so they could bring in some suppliers that could add value. So, again, this is new. Used to be this way back in the old days, in House developers build the abs on the mainframe, build the APS on the mini computers and then on I went to outsourcing, so we're kind of back. The insourcing is the big trend now, >> right in with the smaller engineering team, I can do a lot that used to require so many more people with a big waterfall method and long term projects. And now I take all these powerful building blocks and put an engineering team five people or what we would call it to pizza team five or six people off to the side, given 34 weeks, and they can generate a really cool system that would have required months and not years before. So that's a big trend, and it applies across the board, including two security. >> I think there's a sea change, and I think it's clear what I like about this show is this cloud security. But it's also they have the on premises conversation, Mrs Legacy applications that have been secured and or need to be secured as they evolve. And then you got cloud native and all these things together where security has to be built in. Yeah, this is a key theme, so I want to get your thoughts on this notion of built in security from Day one. What's your what's your view on this? And how should customers start thinking >> about it? And >> what did you guys bringing to the table? Well, I think that's just a general say maturation that goes on in the industry, >> whether it's cloud or on Prem is that people realize that the old methods we used to use like, Hey, I'm gonna build a nap And then I'm gonna hand it to the security team and they're gonna put firewalls around it That's not really gonna have a good result. So security by design, having security is equal co aspect of If I'm getting doing an architecture, I look a performance. I look, it cost. I look at security. It's just part of my system designed. I don't think of it as like a bolt on afterwards, so that leads to things like, you know, Secure Dev ops and kind of integration teams through. This could be happening on premises to it's just part of I T. Modernization. But Cloud is clearly a driver as well, and cloud makes it easier because it's all programmable. So things that are still manual on premises, you can do in a more automated getting into a lot of conversations here under the covers, A lot of under the hood conversations here around >> security BC to one of the most popular service is you guys have obviously compute a big part of the mission Land, another of the feature VPC traffic flows, where mirroring was a big announcement. Like we talked about that a lot of talking about the E c two nitro. You gave a talk on that. Did you just unpacked it a little bit because this has been nuanced out there. It's out there people are interested in. What's that talk about inscription is, is in a popular conversation taking minutes? Explain your talk. Sure, So we've talked for now a year and 1/2 >> about how we've essentially rien. Imagine reinvented our virtual machine architecture, too. Go from a primarily soft defined system where you have a mainboard with memory and intel processor and all that kind of a coup treatments of a standard server. And then your virtual ization layer would run a full copy of an operating system, which we call a Dom zero privileged OS that would mediate access between the guest OS is in this and the outside world because it would maintain the device model like how do I talk to a network card? How I talked to a storage device. I talked through the hyper visor, but through also a dom zero Ah, copy of Lennox. A copy of Windows to do all that I owe. So what we just did over the past few years, we begin to take all the things we're running inside that privileged OS and move that into dedicated hardware software, harbor combination where we now have components we call nitro components their actual separate little computers that do dbs processing. They do vpc processing they do instance, storage. So at this point now, we've taken all of the components of that damn zero. We've moved it out into these You could call Cho processors. I almost think of them is like the Nitro controllers. The main processor and the Intel motherboard is a co processor where customer workloads run because the trust now is in these external all systems. And when you go to talk to the outside world from easy to now you're talking through these very trusted, very powerful co processors that do encryption. They do identity management for you. They do a lot of work that's off the main processor, but we can accelerate it. We could be more assured that it's trustworthy. It can it can protect itself from potential types of hacks that might have been exposed if that, say, an encryption key was in the and the main motherboard. Now it's not so it's a long story until one hour version and doing three minutes now. But overall we feel that we built a trustworthy system for virtual. What was the title of talk so people can find it online? So I was just called the night to architecture security implications of the night to architecture. So it's taking information that we had out there. But we're like highlighting the fact that if you're a security professional, you're gonna really like the fact that this system has it has no damn zero. It has no shell. You can't log into the system as a human being. It's impossible to log in. It's all software to find suffer driven, and all the encryption features air in these co processors so we can do like full line made encryption of 100 gigabits of network traffic. It's all encrypted like that's never been done before. Really, in the history of computing, what's the benefit of nitro architectural? Simply not shelter. More trust built into it a trusted root. That's not the main board encryption, off load and more isolation. Because even if I somehow we're toe managed to the impossible combination of facts to get sort of like ownership of that main board, I still don't have access to the outside world. From there, I have to go through a whole another layer of very secure software that mediates between the inner world of where customer were close run and the outside world where the actual cloud is. So it's just a bunch of layers that make things more secure, >> and I'm sure Outpost will have that as well. Can you waste on that? Seem to me to hear about that. Okay, Encryption, encrypt everything. Is it philosophy we heard in the keynote? You also talked about that as well. Um, encrypting traffic on the hour. I didn't talk about what that means. What was talked to you? What's the big conversation around? Encryption within a. W s just inside and outside. What's the main story there? >> There's a lot of pieces to the pie, but a big one that we were talking about this week is a pretty long term project we call Project lever. It was actually named after a ah female cryptographer. Eventually Park team that was help. You know, one of the major factors, including World War Two, are these mathematicians and cryptographers. So we we wanted to do a big scale encryption project. We had a very large scale network and we had, you know, all the features you normally have, but we wanted to make it so that we really encrypted everything when it was outside of our physical control. So we done that took a long time. Huge investment, really exciting now going forward, everything we build. So any time data that customers give to us or have traffic between regions between instances within the same region outside reaches, whenever that traffic leaves our physical control so kind of our building boundaries or gates and guards and going down the street on a fiber optic to another data center, maybe not far away or going inter continent intercontinental links are going sub oceanic links all those links. Now we encrypt all the traffic all the time. >> And what's the benefit of that? So the benefit of that is there. Still, you know, it's it's obscure, >> but there is a threat model where, you know, governments have special submarines that are known to exist that go in, sniff those transoceanic links. And potentially a bad guy could somehow get into one of those network junction points or whatever. Inspect traffic. It's not, I would say, a high risk, but it's possible now. That's a whole nother level of phishing attacks. Phishing attack, submarine You're highly motivated to sniff that line couldn't resist U. S. O. So that's now so people could feel comfortable that that protection exists and even things like here's a kind of a little bit of scare example. But we have customers that say, Look, I'm a European customer and I have a very strong sense of regional reality. I wanna be inside the European community with all my data, etcetera, and you know, what about Brexit? So now I've got all this traffic going through. A very large Internet peering point in London in London won't be part of Europe anymore according to kind of legal norms. So what are you doing in that case? Unless they Well, how about this? How about if yes, the packets are moving through London, but they're always encrypted all the time. Does that make you feel good? Yeah, that makes me feel good. I mean, I so my my notion of work as extra territorial extra additional congee modified to accept the fact that hey, if it's just cipher text, it's not quite the same as unscripted. >> People don't really like. The idea of encrypted traffic. I mean, just makes a lot of sense. Why would absolutely Why wouldn't you want to do that right now? Final question At this event, a lot of attendee high, high, high caliber people on the spectrum is from biz dab People building out the ecosystem Thio Hardcore check. He's looking under the hood to see SOS, who oversee the regime's within companies, either with the C i O or whatever had that was formed and every couple is different. But there's a lot of si SOS here to information security officers. You are in the office of the Chief Security Information officer. So what is the conversations they're having? Because we're hearing a lot of Dev ops like conversations in the security bat with a pretty backdrop about not just chest undead, but hack a phone's getting new stuff built and then moving into production operations. Little Deb's sec up So these kinds of things, we're all kind of coming together. What are you hearing from those customers inside Amazon? Because I know you guys a customer driven in the customers in the sea SOS as your customer. What are they saying? What are they asking for? So see, so's our first getting their own minds around >> this big technical transformations that are happening on dhe. They're thinking about risk management and compliance and things that they're responsible for. They've got a report to a board or a board committee say, Hey, we're doing things according to the norms of our industry or the regulated industries that we sit in. So they're building the knowledge base and the expertise and the teams that can translate from this sort of modern dev ops e thing to these more traditional frameworks like, Hey, I've got this oversight by the Securities Exchange Commission or by the banking regulators, or what have you and we have to be able to explain to them why our security posture not only is maintained, it in some ways improved in these in this new world. So they're they're challenge now is both developing their own understanding, which I think they're doing a good job at, but also kind of building this the muscle of the strength. The terminology translate between these new technologies, new worlds and more traditional frameworks that they sit within and people who give oversight over them. So you gotta risk. So there's risk committees on boards of these large publics organizations, and the risk committees don't know a lot about cloud computing. So s O they're part of what they do now is they do that translation function and they can say, Look, I've I've got assurance is based on my work that I do in the technology and my compliance frameworks that I could meet the risk profiles that we've traditionally met in other ways with this new technology. So it's it's a pretty interesting >> had translations with the C I A. Certainly in public sector, those security oriented companies, a cz well, as the other trend, they're gonna educate the boards and they're secure and not get hacked the obsolete. And then there's the innovation side of it. Yeah, we actually gotta build out. Yes. This is what we just talked about a big change for our C says. That we talk to and work with all the time is that hey, we're in engineering community now. We didn't used to write a lot of code, and now we do. We're getting strong in that way. Or else we're parting very closely with an engineering team who has dedicated teams that support our security requirements and build the tools. We need to know that things are going well from our perspective. So that's a really cool, I think, changing that. I think that is probably one >> of my favorite trends that I see because he really shows the criticality of security was pretty much all critically, only act. But having that code coding focus really shows that they're building in house use case that they care about and the fact that I can now get native network traffic. Yeah, and you guys are exposing new sets of service is with land and other things >> over the top. >> It just makes for a good environment to do these clouds. Security things. That seems to be the show >> in a nutshell. Yeah, I think that's one of the nice thing about this show. Is It's a very positive energy here. It's not like the fear and scary stuff sometimes hear it. Security conference is like a the sky's falling by my product kind of thing Here. It's much more of a collaborative like, Hey, we got some serious challenges. There's some bad guys out there. They're gonna come after us. But as a community using new tooling, new techniques, modern approaches, modernization generally like let's get rid of a lot of these crusty old systems we've never updated for 10 or 20 years. It's a positive energy, which is really exciting. Good Mark, get your insights out. So this is your wheelhouse Show. Congratulations. >> You got to ask you the question. Just take your see. So Amazon had off just as an industry participant riding this way, being involved in it. What is the most important story that needs to be told in the press? In the media that should be told what's as important. Either it's being told it, then should be amplified or not being told and be written out. What's the What's the top story? I don't think that even after all this time that you know when people >> hear public cloud computing. They still have this kind of instinctive reaction like, Oh, that sounds kind of scary or a little bit risky and, you know, way need to get to the point where those words don't elicit some sense of risk in people's minds, but rather elicit like, Oh, cool, that's gonna help me be secure instead of being a challenge. Now that's a journey, and people have to get there, and our customers who go deep, very consistently, say, And I'm sure you've had them say to you, Hey, I feel more confident in my cloud based security. Then I do my own premises security. But that's still not the kind of the initial reaction. And so were we still have a ways, a fear based mentality. Too much more >> of a >> Yeah. Modernization base like this is the modern way to get the results in the outcomes I want, and cloud is a part of that, and it doesn't not only doesn't scare me, I want to go there because it's gonna take a community as well. Yeah, Mark, thanks so much for coming back on the greatest. Be hearing great Mark Mark Riley, direct of the office of the chief information security at Amazon Web services here, sharing his inside, extracting the signal. But the top stories and most important things >> being being >> said and discussed and executed here, it reinforced on the Cube. Thanks for watching. We'll be right back with more after this short break.

>> live from Boston, Massachusetts. It's the Cube covering A W s reinforce 2019. Brought to you by Amazon Web service is and its ecosystem partners. >> Welcome back. Everyone were accused Live coverage here in Boston, Massachusetts, for AWS reinforce. First inaugural conference runs security. I'm Jeffrey. David Lot there. Next guest is Dan Hubbard, CEO of lacework. I've started at a Mountain View, California. Great to have you on. Thanks for joining us. >> Thanks. Thanks for having me. >> So, you know, reinvent was developers Reinforces. Kind of like, si SOS coding security cloud and intersecting with security. This is a new kind of show. What's your take on? >> Super impressed so far? I mean, there's about 1000 people here, you know, way have literally hundreds of demos lined up in the booth s oh, really impressed so far. First impressions. >> It's a good move for Amazon. Do. Ah, security conference. Don't you think I mean >> really smart, Really smart. It's a lot more about defending than a lot of security conference about offense and vulnerabilities and how to find kind of holes and weak cracks. This is really about how do we defend you know, our security in the cloud >> Talk about your company. Your mission? You guys air started going after a hot space. Si SOS or CEO spending Talk to They want a new breed of supplier service provider. Certainly cloud a p. I is gonna be critical in all of this. So you start to see really smart platform thinking systems, thinking around companies around the security challenge and opportunity. What? What do you guys do? Explain what you guys? >> Yes, we really believed you know, this new wave of cloud I s and pass really needs a new architecture. It's a whole new architecture from a 90 perspective. So we need a new architect from a security perspective. And the great thing about the operating model is you could do a wide set of things and then go deep in the areas that are really important. So at least work does we allow you to secure? I asked. Past service is with compliance configuration host and container security. There's one platform that kind of wraps across all of those >> different targeting developers, right? So they don't have to think about security all the time. Is that the poor thing? >> Yeah, definitely. Eso in almost every case. Security is unlocking the budget. However, Dev Ops is involved, Dev Ops is involved from an influence. But, you know, it used to be that developers would ask security for permission. Now security's going back to developers and asking for permission to security >> infrastructure. He said that with the architecture is gonna be different because the the the I t. Is changing. So cloud security needs a new architecture. One of the fundamentals of that architecture and how is it different from security on prim? >> So I think it has to be SAS. So it's gotta be delivered multi cloud from the cloud. You know, we're gonna secure the cloud. It really should be from the cloud, their business models, that should be different. It's almost always a subscription is not perpetual models. You know you're annually re occurring your revenue. You're always keeping your customers happy and you're always innovating. The pace of innovation has to be really quick because the pace of the cloud is moving at such a dramatic speed. >> So that the those kind of business oriented you know, that's kind of a different definition of architecture. Technically, is it a fundamental do over Or is it fundamentally similar? >> Wolf. You know, there's some of the tenants which are the same, you know, we need to get visibility. That's very similar. You know, we have controls needed have auditing. We need to find threats. However, the way you do it is very different. So you don't own the hardware, you don't own the racks, you don't own the network. You gotta get used to that. You gotta live above the responsibility line. You have to fit within their infrastructure. So what that means is you need to be very happy. I friendly because we're sucking a lot of data on Amazon were pulling in configuration cloudtrail data, and you'll have to be able to deploy inside their infrastructures. We support things like kubernetes things like docker or we also interoperate things like bare metal and you know, in the AM eyes themselves, what >> problem you guys solve. Every startup has that cultural doctor, and they sometimes you weave into a market and also you get visibility into into a key value proper. What's the key problem that you saw? What's the benefit >> so that the key value we solve is if you are in the cloud or migraine in the cloud. We give you compliance configuration and threat protection across all your clowns. So, irrespective of which cloud you live in or operate in, we give you one central threat detection engine and that which gives you visibility but also gives you compliance and controls into that. >> So Amazon has this, you know she had responsibility model. They're they're protecting the compute, the storage, the database and customers are responsible for the end points. The operating system, the data, etcetera, etcetera. And Amazon certainly has tools. Help them. What is fuzzy to me sometimes is you know where eight of us leaves off. Where ecosystem partners like you guys come in. You obvious have to keep moving fast to your point. Absolute. Can you help us sort of squint through that maze? >> Sure. Yeah. I mean, the easiest way that I can explain it is if you could configure it, you have to secure everything. Below is the providers responsibility. That said, there are different areas where things are kind of peeking through the responsibility lines. So what I see is a world where there's not 50 security vendors that you've bought like in premise or traditional data center, but your Inter operating with a provider. So you know, the big three providers open source and then a solution like ours. So it's more about how do we interoperate there together? But what we do is we sit actually right within your container on the host themselves with an agent, and then we suck in there a p I. So technically, it's a little bit different. >> So the threat of containers is an interesting topic, right? You're spinning him up. It makes V M v ems look like child's play. Yeah, So are you using specific techniques, toe? So the fake out the bad guys make it. You're raising the bar on them and their cost using sort of algorithms to do that spin up, spin him down. You know, like the shell game of asking you. >> What we do is we get baked right into your infrastructure every single time you deploy and run through C I c d. A new container or a new app were baked in there and what we're doing, we're looking all your applications, processes the network traffic and then we look for that no one bad and the unknown bad based off of that. >> So it's native security in the container at the point of creation. Not a not an afterthought. Correct. Yep, >> What? Your take on kubernetes landscape? Obviously, pretty much everyone's kind of consolidate around that from a de facto standard. That's good news, wouldn't it? Koen ETS does is all kinds of stateless state full applications that becomes, like service mess conversation. You got all kinds of services that could land out there, automating all these things these sources were being turned on turned off in real time. >> It's >> a log it >> all. It's incredible. I think Cos. Is the fastest growing enterprise open source project ever. You know where every customer we talked to is either in the midst of migrating migrate or just thinking about it. That said, the world is looking to go multi cloud. But most customers today have, ah, a combination of in premise bare metal am eyes kubernetes containers. What we're doing is we give you visibility into your coup Bernays infrastructure. So we talk pods, nodes, clusters, name spaces and we allow you to secure the management plane. Any communication between those So it's really critical when you're deploying those from a security perspective that you know what's happening. The ephemeral nature of it is very different from regular security to you need to answer questions like what happened for 10 minutes during this time from six months ago, and that's really hard with traditional >> tools, really are. And that's really gonna with automation plays in Talk about the journey of where your customers are going out because we're seeing a progression kind of categorically three kind of levels. I really wanted to go to the cloud. I really want to convince you that cloud every aspiration. Yeah, not realistic, but it's on their plans. Then you've got people who go out and do it gets stuck in the mud. The wheels are spinning culturally, whatever's going on and then full on cloud native hard core Dev ops, eaten glass, spit nails, just kicking ass and taking names right? So you get the leaders. People are kind of in the middle, and then people jumping in. Where do you guys see your benefit? What are some of the challenges? How do you guys >> think it's a super dynamic marketplace? Because what's happening is every big company that may not be fully cloud native, is buying companies that are cloud native. So then they become the sexy new way to deploy, and then they start figure out how to deploy their there. So one of the trains were seeing is core centralized. Security is becoming governance and tooling, and then they're distributing the security function within the AP teams themselves. And that model seems to work really well because you've got security practitioners baked within the Dev Ops team. But then you've got a governing roll with tooling, centralized tooling from there. That said, depending on the customer or the prospect, it's all over the place. You know, many sisters, you're scratching their heads saying, No, you know, I don't know what's going over the cloud guys. They've got a different group that's running it. They're trying to figure out how do I just get visibility? I know my name's you know, I'm the one they're gonna come after if there's a problem. So it's really all over the place >> for your service. So you're baking it in creatively into the container. >> Yep, it doesn't matter. >> You're aware, if you will. >> It is a matter of urine premise or not. Containers or not, we worked across all of them. >> Was that the hook for your sort of original idea? Your business plan? Your investors you've raised, I think 32,000,000. You got 70 employees. What was that hook? What attracted the investment Community >> Theory journal? Idea was, if you're deployed in the cloud and you have a breach, how do you know you had a breach? Things that happen to come and go very quickly. All the data's encrypted on the network. I don't have full visibility on the network itself. So that was the original idea. How would I go back in time kind of time machine to find out what happened then? Way originally supported eight of us and it was really about visibility within 80 bus infrastructure. Then kubernetes happened. Now the big hook really is amazing containers. Am I using kubernetes? And then how do I make sure I'm compliant and then following best practices and then that breach that breach scenario still definitely happens. Everybody tries the service before they buy it. They're almost always finding out problems along the way. >> What did kubernetes do for you guys? That made a consensus step, function, change or what you guys were doing? Was it because they had the dynamic nature of the service's was orchestration? What specifically was the benefit? >> I think the orchestration, the single management plane from a security perspective, is one of the big things. You get access to that one brain, if you will. You have access to everything. Obviously, the ephemeral workload is big that it was enforcement kubernetes with service messes. Things like pot security policies allows us to hook a P eyes in a way that you can actually write enforcement versus a firewall or some of these old school ways of killing packets. >> Yes, you got a cloud native approach. Kubernetes comes along. It's aligns with your sort of philosophy and >> architectural, and we run today's ourselves. So our entire infrastructure is based off of kubernetes. We were kubernetes user very early on, so, you know, we just take the things that we learn to our customers. >> So here's a quote from a seesaw. I won't say his or her name, but I want to get your reaction to it when talking about dealing with suppliers, looking for the new generation of like what you guys are doing you got, I would put you in the new classification of emerging suppliers. This is the message to all the suppliers in the room. I happen to be in there having a P I and don't have its suck because you eyes shifting to a p a u ie Focus is shifting to FBI focus. So we are evaluating every supplier on their eight b. I's your reaction to that? >> I absolutely agree. So there's two levels of AP eyes. One is you have to interrupt it with the guys from the providers in order to get the data properly. Right. That's a big, big component. Others, you have to have a P eyes for your consumers. You can't automate without a P I. So that's really critical. That said, I will disagree a little bit on the u X and Y aspect. If you are triaging data, it's really important that you have the right data at the right time and visualizing that data in a ways. It's pretty important. >> How real is multi cloud, in your opinion, I mean, everybody's talking about multi cloud Ah la times we've said multi cloud. It's none of us a symptom of multi vendor. But increasingly it could be a strategy in terms of your thinking about your total available market, your market opportunity. How real is it when you're conversations with Coast? >> It's very really. We were really surprised. We first started supporting eight of us, and then we had a G, C, P and Azure together. Now we have a core principle that everything we build has to be parody across all the clouds. And we had a huge uptick across G, C, P and as your very early. So we were really surprised. What we were surprised about was, it's not portable workloads. So it's not about taking one application distributed across multi cloud. That's kind of fiction. That doesn't happen very often. It's either you bought a company that's in another cloud or use a past service in another cloud, or you have just two totally disparate applications in a large company. They just happen to be in different clouds in the data's in different places. They don't need to interoperate, so it's so it's just a little different, but we're seeing kind >> of horses for courses as well, right? Some clouds may be better for data oriented. >> Here's your point early, and we've heard this in some of the sea. So conversations em and becomes a big factor because they get new teams in new culture and they might have different cloud approaches. But I totally agree with you on that. I would say I would even go more further and saying It's absolute fiction between multi Cloud because it's just got a latent seizes on the connections, whether they're direct connections are not welcome on the factor. So I've always said, and I kind of believe in I'd love to get your thoughts on. It is the workload should dictate to the infrastructure which clouded should you know, and go with one cloud for that. If it makes sense on, then use multi cloud across workloads and low can handle a better cloud. Cloud Cloud selection. Be joined by the workload. >> Yeah, it's certainly from an out >> the other way around. >> Yeah, it's certainly from application perspective. You want a silo? It, you know, probably there. I think what's interesting about a lot of the work each provider is doing in security a lot people ask. Well, you know, why don't I just use all my provider security tools. And the answer is they got some great tools. You should use those for sure, but there is a bunch of technology above that you can use. And then you got a span across multiple clouds. What you don't want is three different AP eyes for security across every single cloud. That's gonna be a major pain or >> have to stitch. And that's where you guys come in. Absolutely. >> What's your take on this show? Reinforce against inaugural show. Love to go. The knuckle shows they don't have a 2nd 1 because they were there. Yeah, reinvent you made a calm before we came on. Reinvents started out. We were there early on as well. There's developers. Yeah, it wasn't a lot of fanfare. In fact, you could wander around Andy Jazz. It wasn't crowded. It all great, great time. That was younger. Now Amazons gotten much stronger. Bigger? What's the vibe here? Is that developers for security? Is it si SOS? Is it? What's your read on the makeup and the focus of the attendees? >> So I think it's it's a little bit of a mix of both, which I think is good you know, I've met a number of developers or what I would call kind of new breed security engineers. These are engineers that arm or interested in? How does the cloud work an inter operate? And how do you secure that versus, like reverse engineering malware with assembler, which you know a lot of the other places there really about the threats? And what of the threats and how specific or those This is really a little bit more about? How do we up our game from from a security perspective in this New World order, which is really >> get plowed. Very agile, very fast, yet horizontally scalable, elastic, all the goodness of cloud Final question developers Bottom line is developers continue to code and do the things, whether it's a devil's culture of having a hack a phone and testing new things, that which is how things roll now, getting into productions hard. What's the developers impact to security? Is the trend coming out of the show that security baked in enough to think about it like how configuration management took that track and Dev Ops took that away? You mentioned that earlier you figure you can secure it yet. So similar track for security going the way of automation. What's your? >> It's a lot of automation is gonna be critical for sure. And then it's gonna be a combination of Security and Dev ops together, you know, Call it DEP SEC Ops, code security engineer. Whatever you want to call it, it's definitely a combination of both. Security people are going away, that's for sure. You know, we're still gonna need security experts. And focus is just a critical aspect about this. >> Dan, Thanks for the insight coming on here. Reinforced. Take a quick second. Give a plug for your company. What you guys looking to do? Your hiring? What's going on? The company? >> Sure lacework. We're gonna help you protect all your workloads, Your configuration. Compliance in the cloud regardless of which cloud way are hiring websites lacework dot com and way love Thio culture Their cultures great, Very fast moving very fast paced, very modern way live and breathe by the success of our customers It's a subscription business. So now we have to continue innovating and renewing. Our customers >> got smart probably to get dealing combination containers. Thanks for coming on. Your coverage here live in Boston. General David, Want to stay tuned for more live coverage after this short break

>> live from Washington D. C. It's the Cube covering aws public sector summit DC brought to you by Amazon Web services. >> Welcome back, everyone to the cubes Live >> coverage of a ws public sector summit here in Washington D. C. I'm your >> host Rebecca Night, along with my co host, John >> Furrier. We're here with Cory Quinn, Cloud Economist The Duck Billed group and a cube host at large. Welcome. Welcome to our show. A medium >> at best, most days. But we'll see what happens when ever expanding. Someday I'll be a 10 x engineer, but not today. >> Right? Right. Exactly. >> Next host. Exactly. >> There we go, >> Cloud. Stand up on the side. We need to mention that >> Yes, generally more cloud improv. But no one believes that. It's off the cuff. So we smile, we nod, we roll with Tio. Yeah, no one wants to hear me sing in any form. >> I promise. Strapping So, Cory, you have been here. You are on the ground having great conversations with people here. 18,000 people at this summit Give us give our viewers a low down on the vibe. The energy What? What do you hear? Very different >> feeling in the commercial summits you're seeing. People are focusing on different parts of the story, and one thing I find amusing is talking to people who work in the public sector. Show up in their first response is, Oh, I'm so behind and then you go to the commercial summit. You talk to people who are doing bleeding edge things, and their response is, Oh, I'm so behind and everyone thinks that they're falling behind the curve and I'm >> not sure how >> much of that is a part of people just watching a technology. Events outpace them versus the ever increasing feature velocity. If they show on slide year over year over year, consistent growth and people feel like they're being left in the dust, it's it's overwhelming. It's drinking from a fire hose. And I don't think that that gets any easier when you're talking to someone in public sector where things generally move in longer planning cycles because they definitional have to, and I'd argue should, >> but you should help them, make them feel better and say, Don't worry. The private sector feels the same way. Not just everyone >> has these problems. That's that's the poor little challenge of this is everyone believes that if you go to the one magic company, their environment is going to be wonderful. They're adopting everything. It doesn't exist. I've gone into all of the typical tech companies you would expect and talk to people. And everyone wants you for three or four drinks into them, gets very honest and starts crying. What would its higher fire their own environment is? It says a lot of conference. We're going around. Here's how we built this amazing thing as a proof of concept is what the part they don't say or for this one small, constrained application. People are trying to solve business problems, not build perfect architecture. And that's okay. >> Yeah, process. They're not. They're not businesses, their agencies. As you said, they're like, slow as molasses when it comes to moving speed. And you could even see Andy Jazzy during his fireside Shep. He's already studying, laying the groundwork. Well, >> once you're in the >> cloud, here's how you know the adoption level so you can see that it's land not landing expand like the enterprise, which is still slow. It's land, get the adoption and then expand, So the public sector clearly has a lot of red tape. I mean, no doubt about it. >> That means anyone who'd argue that point >> chairman's like 1985. It's like, you know, hot tub time machine, you know, nightmare. But Andy Jazz, he also says on differently to heavy lifting is what they want to automate away. That's the dream. That's the That's the goal. Absolute. It's hard. This is the real challenge. Is getting the public sector adopted getting the adoption, your thoughts when what you're hearing people are they jumping in? They put a toe in the water, kicking the tires. As Andy said, >> all of the above and more. I think it's a very broad spectrum and they mentioned there. I think they were 28,000 or 12,000 non profit organizations that they wind up working with as customers and they all tend to have different velocities across the board as they go down that path. I think that the idea that there's one speed or you can even draw a quick to line summary of all the public sector is a bit of a Basile explanation. I see customers are sometimes constrained by planning cycles. There's always the policies and political aspects of things where if you wind up trying to speed things up, you're talking to some people who will not have a job. If you remove the undifferentiated heavy lifting because that's been their entire career, we're going to help you cut waste out of your budget. Well, that's a hard sell to someone who is incentivized based upon the size of the budget that they control it. You wind up with misaligned incentives, and it's a strange environment. But the same thing that I'm seeing across the corporate space is also happening in public sector. We're seeing people who are relatively concerned about where they're going to hire people from what those people look like, how they're going to transform their own organizations. Digital transformations, attired term. >> And it's like you have rosy colored glasses on too much. You're gonna miss the big picture. You gotta have a little bit of skepticism. I think to me governments always had that problem where I'm just gonna give up. I'm telling different. I can't get the outcome I want, because why even try? Right? I think now, with cloud what I hear Jazzy and Amazon saying is. Hey, at least you get some clear visibility on the first position of value, so there's some hope there, right? So I think that's why I'm seeing this adoption focus, because it's like they're getting the customers. For instance, like I'm a university. I could be a professor, but my credit card down my university customer, I got a couple instances of PC to so ding and another one to the 28,000 >> exactly number of customers is always a strange >> skeptical there. But now, for the first time, you, Khun got should go to a team saying, Hey, you know all that B s about not get the job done, you can get it with clouds. So it's gettable. Now it's attainable. It's not just aspirations. >> Movers really will make the difference. In the end, with the university customer's question, the people who were in that swing >> the tide can that be a generational shift, a deb ops mindset in government? That's a big question. >> Well, they have some advantages. For example, we took a look at all the Gulf cloud announcements and the keynote yesterday, and that must have been a super easy keynote to put together because they're just using the traditional Kino slides and reinvent 2014 because it takes time to get things certified as they moved through the entire pipeline process. And there's nothing inherently wrong with that. But the services that are going into come cloud or things that are tried and tested in a lot of other environments. There's an entire community out there. There's an established body of knowledge. So a lot of the path that government is walking down has already been from a technical perspective paid for them. >> I want to riff on an idea on to make a proposal with you here in real time. You're I think what we should do is make a proposal to the U. S. Government that we basically take equity in the agencies and then take them public. >> That's not a bad idea, absolutely not about commercialized. >> The entities create a stock option program, Cory, because listen, if I'm if I'm a talent, why would I gotta work for an agency when I could make three times Mohr get public and be rich, and that's the problem with talent. You walk around the expo for here. The booths are much smaller, and I didn't understand that at first, and then it clicked for me. If you want to sell services to government, you don't buy a bigger booth. You buy a Congress person and it turns out those air less expensive. That's how acquisitions tend to work in this space. So folks walking around or not, generally going to be the customers that buy things. People walking around in many cases are the talent and looking for more talent. And it does become extremely compelling to have those people leave public sector and go into private sector. In some cases where we'll pay you three times more and added bonus most days, this is America. After all, no one's shooting at you, so that does your >> cloud. Economists were kind of joking about your title, but if you think about it, there are economics involved. It's lower cost, faster, time to value. But what we're getting at is an incentive system. So you think fiscal monetary policy of incentives. So you know, Rebecca, this this This is the challenge that the policy guys gotta figure because the mechanisms to get stuff done is by the politicians or do this or do that. We're getting at something, really, to the heart of human beings, that mission of the mission of the agency or objective they're doing for the labor of love or money? Yes, Reed, why not create an incentive system that compensate? >> You think That's incentive system for taxpayers, though, too, in the sense of >> if I can see the trillions of dollars on the >> budget, a lot of what >> governments do shouldn't necessarily be for sale. I think the idea of citizen versus customer tends to be a very wide divergence, and I generally pushback on issues to attempt, I guess, convinced those into the same thing. It's you wind up with a very striated, almost an aristocracy Socratic society. >> I don't think that tends >> to lead anywhere. Good way. Everyone is getting political today for some reason. >> Well, I >> mean fireside chat to digital >> transformations. People process technology. You can superimpose that onto any environment where those public policy or whatever or national governments, the people, his issues there, processes, issues, technologies is each of one of them have their own challenge. Your thoughts on public sectors challenges opportunities. Four people process technology. >> You have to be mission driven for starters in order to get the people involved. As far as the processes go, there are inherently going to be limitations sometimes and easily observable in the form of different regulatory regimes that apply to these different workloads. And when we talk about the technology well, we're already seeing that that is becoming less of a gap over time. What used to be that o on ly we can secure a data center well enough from a physical security standpoint, there's a quote from the CIA that said on its worst day that cloud was cloud. Security was better than any on premises environment that they could build. And there's something to be said for that. Their economies of scale of like by >> the tech gaps going away. Almost zero yes. So if that OK, text, good check training fault of the people side. Absolute awareness competency processes a red tape automation opportunity. That could be. >> But this is also not to assume that the commercial world has unlock either. Where does the next generation come from? You talk to most senior cloud folks these days and most of us tend to have come up from working help desks being grumpy, you nexus in men's or you nexus movement because it's not like there's a second kind of those and we go up through a certain progression. Well, those jobs aren't there anymore. They've been automated away. The road that we walked is largely closed. Where does the next generation come from? I don't have a great answer. >> Talent question is a huge one. This is going to be the difference. Rebecca. We were riffing on this on our opening. >> It's the only one. >> Your thoughts. I mean, were you even hearing all this stuff and you've been researching this? What? Your thoughts. >> I think that we need to think more. I think tech companies need to think more broadly about where they're going to get this next generation of people, and they don't need to necessarily be people who have studied CS in school. Although, of course we need those people too. >> But the people with the bright, the creative, the expansive world views who are thinking about these problems and can learn >> the tech, I mean the tough guy, you know why >> block change you into a nice CEO and everyone gets >> rich, but I think when Jessie was saying today during his fireside, in the sense of we need to make sure that we're building tools, that >> you don't need to be a machine learning expert to deploy, you know we need to make simpler, more intuitive tools, and then that's really important here. >> Amazon does well in that environment about incentives. >> I think that >> one thing that the public sector offers that you don't often see in the venture start of world or corporate America or corporate anywhere, for that matter, is the ability to move beyond next quarter, planning the ability to look at long term projects like What >> does >> it take to wind up causing significant change across the world? Where is it take to build international space Station? You're not gonna be able to ship those things 180 days, no matter how efficiently you build things. And I think that the incentives and as you build them, have to start aligning with that. Otherwise you wind up with government trying to compete on compensation with the private sector. I don't think that works. I think you may have an opportunity to structure alignments around sentence in a very different life. >> It's an open item on the compensation. Until they agree, we'll watch. It was ideas. We'll see what tracks. But to me, in my opinion, what I think's gonna be killer for game game one here. This of this revolution is the people that come out of the woodwork because cloud attracts attract smart people and smart people are leaning into the government with cloud. It was the other way around before the cloud people, I don't want to get involved in government, and that was a big ding on government attracting qualified people. So I think Cloud is going to attract some smart people that want to help for the purpose and mission of whatever the outcome of that political or agency or government initiative with a cyber security there. People will care about this stuff who want the social equity not so much, >> Yeah, I think that's >> going to be a wild card. I think we're going to see like a new might in migration of talented people coming into quote assist government. That's a work for government to figure out how to be better at whatever the competition is and that is going to be I think the first lever of you start to see new names emerge. This person who just changed the organization over here become a hero Dev Ops mindset being applied to new environments. >> And we've seen that to some extent with the U. S. Digital service with 18 half where you have industry leaders from the commercial side moving into public sector and working in government for a time and then matriculating back into the public sector and the private sector, I think that there winds up being a lot of opportunity for more programs like that of scaling this stuff out >> and career change and career passer tissue. And there is this more fluid iti. As you're saying, >> I think that money isn't everything. You know. There's a lot of research that shows up to a certain threshold of income. You >> don't get that much happier. I don't know if Jeff >> basis is that much happier than us. I mean, >> we live in a little more bank and say, you know, >> you see the other side of it, too, is you build all these things together where you have okay. What? >> What is it >> that moves people? What do they care about. It's not just money, and I think that the old styled the old are very strict hierarchy within organizations where things are decided by tenure. Service is a bit of a problem if you have someone who works for. The EPA has been doing a deep dive cloud work for 10 years. There's nothing specific to the EPA about what that person has mastered. They shouldn't be able to laterally transition into the FDA, for example, >> Jackson Fireside Chat, Those interesting point about the fire phone that they talked about. And this is the transfer ability of skill sets and you getting at the thing that I will notice is that with Cloud attracts this interdisciplinary skill sets so you don't have to be just a coder. You khun, note how code works and be an architect, or you could be a change agent some somewhere else in an organization. So that's >> going to >> be interesting. That's not necessarily what how governments have always been siloed right? So can can these silos can these old ways of doing things. This is the question. This is why it's fun to cover this market. >> We're already >> seeing that in the public sector were being able to write code is rapidly transitioning into a very being very similar to I can speak French. Great. That's not a career in and of itself. That's a skill sad that unlocks of different right. A different career paths forward, but it doesn't wind up saving anything. It doesn't want a preserving its own modern aristocracy path forward or >> use the building an example. I don't have to learn how to pour concrete organ, right? The blueprints. Yes. So as we start getting into these systems conversations, you're going to start to see these different skill sets involved. Huge opportunity. If >> you're in >> school today and you're studying computer science, great learned something else, too, because the intersection between that and other spaces are where the knish opportunities are. That's the skill set of the future. That's where you're going to start seeing opportunities. Do not just succeed personally, but start to change the world. >> But Cory Great. Thanks for coming on and make an appearance and sharing what you found on the hallways. Good to see you. Coop con in Europe. Thanks for holding down the fort there. >> Of course I appreciate it. It was an absolute Bonner. >> Excellent. Great. Well, thank you so much. Thank >> you. I'm Rebecca Knight for John Furrier. Stay tuned. You are watching the Cube.

>> Ladies and gentlemen, please welcome Red Hat President Products and Technologies. Paul Cormier. Boring. >> Welcome back to Boston. Welcome back. And welcome back after a great night last night of our opening with with Jim and talking to certainly saw ten Jenny and and especially our customers. It was so great last night to hear our customers in how they set their their goals and how they met their goals. All possible because certainly with a little help from red hat, but all possible because of because of open source. And, you know, sometimes we have to all due that has set goals. And I'm going to talk this morning about what we as a company and with community, have set for our goals along the way. And sometimes you have to do that. You know, audacious goals. It can really change the perception of what's even possible. And, you know, if I look back, I can't think of anything, at least in my lifetime, that's more important. Or such a big golden John F. Kennedy setting the gold to the American people to go to the moon. I believe it or not, I was really, really only three years old when he said that, honestly. But as I grew up, I remember the passion around the whole country and the energy to make that goal a reality. So let's sort of talk about in compare and contrast, a little bit of where we are technically at that time, you know, tto win and to beat and winning the space race and even get into the space race. There was some really big technical challenges along the way. I mean, believe it or not. Not that long ago. But even But back then, math Malik mathematical calculations were being shifted from from brilliant people who we trusted, and you could look in the eye to A to a computer that was programmed with the results that were mostly printed out. This this is a time where the potential of computers was just really coming on the scene and, at the time, the space race at the time of space race it. It revolved around an IBM seventy ninety, which was one of the first transistor based computers. It could perform mathematical calculations faster than even the most brilliant mathematicians. But just like today, this also came with many, many challenges And while we had the goal of in the beginning of the technique and the technology to accomplish it, we needed people so dedicated to that goal that they would risk everything. And while it may seem commonplace to us today to trust, put our trust in machines, that wasn't the case. Back in nineteen sixty nine, the seven individuals that made up the Mercury Space crew were putting their their lives in the hands of those first computers. But on Sunday, July twentieth, nineteen sixty nine, these things all came together. The goal, the technology in the team and a human being walked on the moon. You know, if this was possible fifty years ago, just think about what Khun B. Accomplished today, where technology is part of our everyday lives. And with technology advances at an ever increasing rate, it's hard to comprehend the potential that sitting right at our fingertips every single day, everything you know about computing is continuing to change. Today, let's look a bit it back. A computing In nineteen sixty nine, the IBM seventy ninety could process one hundred thousand floating point operations per second, today's Xbox one that sitting in most of your living rooms probably can process six trillion flops. That's sixty million times more powerful than the original seventy ninety that helped put a human being on the moon. And at the same time that computing was, that was drastically changed. That this computing has drastically changed. So have the boundaries of where that computing sits and where it's been where it lives. At the time of the Apollo launch, the computing power was often a single machine. Then it moved to a single data center, and over time that grew to multiple data centers. Then with cloud, it extended all the way out to data centers that you didn't even own or have control of. But but computing now reaches far beyond any data center. This is also referred to as the edge. You hear a lot about that. The Apollo's, the Apollo's version of the Edge was the guidance system, a two megahertz computer that weighed seventy pounds embedded in the capsule. Today, today the edge is right here on my wrist. This apple watch weighs just a couple of ounces, and it's ten ten thousand times more powerful than that seventy ninety back in nineteen sixty nine But even more impactful than computing advances, combined with the pervasive availability of it, are the changes and who in what controls those that similar to social changes that have happened along the way. Shifting from mathematicians to computers, we're now facing the same type of changes with regards to operational control of our computing power. In its first forms. Operational control was your team, your team within your control? In some cases, a single person managed everything. But as complexity grows, our team's expanded, just like in the just like in the computing boundaries, system integrators and public cloud providers have become an extension of our team. But at the end of the day, it's still people that are still making all the decisions going forward with the progress of things like a I and software defined everything. It's quite likely that machines will be managing machines, and in many cases that's already happening today. But while the technology at our finger tips today is so impressive, the pace of changing complexity of the problems we aspire to solve our equally hard to comprehend and they are all intertwined with one another learning from each other, growing together faster and faster. We are tackling problems today on a global scale with unsinkable complexity beyond anyone beyond what any one single company or even one single country Khun solve alone. This is why open source is so important. This is why open source is so needed today in software. This is why open sources so needed today, even in the world, to solve other types of complex problems. And this is why open source has become the dominant development model which is driving the technology direction. Today is to bring two brother to bring together the best innovation from every corner of the planet. Toe fundamentally change how we solve problems. This approach and access the innovation is what has enabled open source To tackle The challenge is big challenges, like creating the hybrid cloud like building a truly open hybrid cloud. But even today it's really difficult to bridge the gap of the innovation. It's available in all in all of our fingertips by open source development, while providing the production level capabilities that are needed to really dip, ploy this in the enterprise and solve RIA world business problems. Red Hat has been committed to open source from the very, very beginning and bringing it to solve enterprise class problems for the last seventeen plus years. But when we built that model to bring open source to the enterprise, we absolutely knew we couldn't do it halfway tow harness the innovation. We had to fully embrace the model. We made a decision very early on. Give everything back and we live by that every single day. We didn't do crazy crazy things like you hear so many do out there. All this is open corps or everything below. The line is open and everything above the line is closed. We didn't do that, and we gave everything back Everything we learned in the process of becoming an enterprise class technology company. We gave it all of that back to the community to make better and better software. This is how it works. And we've seen the results of that. We've all seen the results of that and it could only have been possible within open source development model we've been building on the foundation of open source is most successful Project Lennox in the architecture of the future hybrid and bringing them to the Enterprise. This is what made Red Hat, the company that we are today and red hats journey. But we also had the set goals, and and many of them seemed insert insurmountable at the time, the first of which was making Lennox the Enterprise standard. And while this is so accepted today, let's take a look at what it took to get there. Our first launch into the Enterprise was rail two dot one. Yes, I know we two dot one, but we knew we couldn't release a one dato product. We knew that and and we didn't. But >> we didn't want to >> allow any reason why anyone of any customer anyone shouldn't should look past rail to solve their problems as an option. Back then, we had to fight every single flavor of Unix in every single account. But we were lucky to have a few initial partners and Big Eyes v partners that supported Rehl out of the gate. But while we had the determination, we knew we also had gaps in order to deliver on our on our priorities. In the early days of rail, I remember going to ask one of our engineers for a past rehl build because we were having a customer issue on it on an older release. And then I watched in horror as he rifled through his desk through a mess of CDs and magically came up and said, I found it here It is told me not to worry that the build this was he thinks this was the bill. This was the right one, and at that point I knew that despite the promise of Lennox, we had a lot of work ahead of us. The not only convinced the world that Lennox was secure, stable, an enterprise ready, but also to make that a reality. But we did. And today this is our reality. It's all of our reality. From the Enterprise Data Center standard to the fastest computers on the planet, Red Hat Enterprise, Lennox has continually risen to the challenge and has become the core foundation that many mission critical customers run and bet their business on. And an even bigger today Lennox is the foundation of which practically every single technology initiative is built upon. Lennox is not only standard toe build on today, it's the standard for innovation that builds around it. That's the innovation that's driving the future as well. We started our story with rail two dot one, and here we are today, seventeen years later, announcing rally as we did as we did last night. It's specifically designed for applications to run across the open hybrid. Clyde Cloud. Railed has become the best operating simp system for on premise all the way out to the cloud, providing that common operating model and workload foundation on which to build hybrid applications. Let's take it. Let's take a look at how far we've come and see this in action. >> Please welcome Red Hat Global director of developer experience, burst Sutter with Josh Boyer, Timothy Kramer, Lars Carl, it's Key and Brent Midwood. All right, we have some amazing things to show you. In just a few short moments, we actually have a lot of things to show you. And actually, Tim and Brandt will be with us momentarily. They're working out a few things in the back because we have a lot of this is gonna be a live demonstration, some incredible capabilities. Now you're going to see clear innovation inside the operating system where we worked incredibly hard to make it vast cities. You're free to manage many, many machines. I want you thinking about that as we go to this process. Now, also, keep in mind that this is the basis our core platform for everything we do here. Red hat. So it is an honor for me to be able to show it to you live on stage today. And so I recognize the many of you in the audience right now. Her hand's on systems administrators, systems, architect, citizens, engineers. And we know that you're under ever growing pressure to deliver needed infrastructure. Resource is ever faster, and that is a key element to what you're thinking about every day. Well, this has been a core theme, and our design decisions find red Odd Enterprise Lennox eight and intelligent operating system, which is making it fundamentally easier for you manage machines that scale. So hold what you're about to see next. Feels like a new superpower and and that redhead azure force multiplier. So first, let me introduce you to a large. He's totally my limits guru. >> I wouldn't call myself a girl, but I I guess you could say that I want to bring Lennox and light meant to more people. >> Okay, Well, let's let's dive in. And we're not about the clinic's eight. >> Sure. Let me go. And Morgan, >> wait a >> second. There's windows. >> Yeah, way Build the weft Consul into Really? That means that for the first time, you can log in from any device including your phone or this standard windows laptop. So you just go ahead and and to my Saturday lance credentials here. >> Okay, so now >> you're putting >> your limits password and over the web. >> Yeah, that might sound a bit scary at first, but of course, we're using the latest security tech by T. L s on dh csp on. Because that's the standard Lennox off site. You can use everything that you used to like a stage keys, OTP, tokens and stuff like this. >> Okay, so now I see the council right here. I love the dashboard overview of the system, but what else can you tell us about this council? >> Right? Like right here. You see the load of the system, some some of its properties. But you can also dive into logs everything that you're used to from the command line, right? Or lookit, services. This's all the services I've running, can start and stuff them and enable >> OK, I love that feature right there. So what about if I have to add a whole new application to this environment? >> Good that you're bringing that up. We build a new future into hell called application streams. Which the way for you to install different versions of your half stack that are supported I'LL show you with Youngmin a command line. But since Windows doesn't have a proper terminal, I'll just do it in the terminal that we built into the Web console Since the browser, I can even make this a bit bigger. Go to, for example, to see the application streams that we have for Poskus. Ijust do module list and I see you know we have ten and nine dot six Both supported tennis a default on defy enable ninety six Now the next time that I installed prescribes it will pull all their lady towards from them at six. >> Ok, so this is very cool. I see two verses of post Chris right here What tennis to default. That is fantastic and the application streams making that happen. But I'm really kind of curious, right? I loved using know js and Java. So what about multiple versions of those? >> Yeah, that's exactly the idea way. Want to keep up with the fast moving ecosystems off programming language? Isn't it a business? >> Okay, now, But I have another key question. I know some people were thinking it right now. What about Python? >> Yeah. In fact, in a minimum and still like this, python gives you command. Not fact. Just have to type it correctly. You can't just install which everyone you want two or three or whichever your application needs. >> Okay, Well, that is I've been burned on that one before. Okay, so no actual. Have a confession for all you guys. Right here. You guys keep this amongst yourselves. Don't let Paul No, I'm actually not a linnet systems administrator. I'm an application developer, an application architect, And I recently had to go figure out how to extend the file system. This is for real. And I'm going to the rat knowledge base and looking up things like, you know, PV create VD, extend resized to f s. And I have to admit, that's hard, >> right? I've opened the storage space for you right here, where you see an overview of your storage. And the council has made for people like you as well not only for people that I knew that when you two lunatics, right? It's if you're running, you're running some of the commands only, you know, some of the time you don't remember them. So, for example, I haven't felt twosome here. That's a little bit too small. Let me just throw it. It's like, you know, dragging this lighter. It calls all the command in the background for you. >> Oh, that is incredible. Is that simple? Just drag and drop. That is fantastic. Well, so I actually, you know, we'll have another question for you. It looks like now this linen systems administration is no longer a dark heart involving arcane commands typed into a black terminal. Like using when those funky ergonomic keyboards you know I'm talking about right? Do >> you know a lot of people, including me and people in the audience like that dark out right? And this is not taking any of that away. It's on additional tool to bring limits to more people. >> Okay, well, that is absolute fantastic. Thank you so much for that Large. And I really love him installing everything is so much easier, including a post gra seeker and, of course, the python that we saw right there. So now I want to change gears for a second because I actually have another situation that I'm always dealing with. And that is every time I want to build a new Lenox system, not only I don't want to have to install those commands again and again, it feels like I'm doing it over and over. So, Josh, how would I create a golden image? One VM image that can use and we have everything pre baked in? >> Yeah, absolutely. But >> we get that question all the time. So really includes image builder technology. Image builder technology is actually all of our hybrid cloud operating system image tools that we use to build our own images and rolled up in a nice, easy to integrate new system. So if I come here in the web console and I go to our image builder tab, it brings us to blueprints, right? Blueprints or what we used to actually control it goes into our golden image. Uh, and I heard you and Lars talking about post present python. So I went and started typing here. So it brings us to this page, but you could go to the selected components, and you can see here I've created a blueprint that has all the python and post press packages in it. Ah, and the interesting thing about this is it build on our existing kickstart technology. But you can use it to deploy that whatever cloud you want. And it's saved so that you don't actually have to know all the various incantations from Amazon toe azure to Google, whatever it's all baked in on. When you do this, you can actually see the dependencies that get brought in as well. Okay. Should we create one life? Yes, please. All right, cool. So if we go back to the blueprints page and we click create blueprint Let's, uh let's make a developer brute blueprint here. So we click great, and you can see here on the left hand side. I've got all of my content served up by Red Hat satellite. We have a lot of great stuff, and really, But we can go ahead and search. So we'LL look for post grows and you know, it's a developer image at the client for some local testing. Um, well, come in here and at the python bits. Probably the development package. We need a compiler if we're going to actually build anything. So look for GCC here and hey, what's your favorite editor? >> A Max, Of course, >> Max. All right. Hey, Lars, about you. I'm more of a person. You Maxim v I All right, Well, if you want to prevent a holy war in your system, you can actually use satellite to filter that out. But we're going to go ahead and Adam Ball, sweetie, I'm a fight on stage. So wait, just point and click. Let the graphical one. And then when we're all done, we just commit our changes, and our image is ready to build. >> Okay, So this VM image we just created right now from that blueprint this is now I can actually go out there and easily deploys of deploy this across multiple cloud providers. And as well as this on stage are where we have right now. >> Yeah, absolutely. We can to play on Amazon as your google any any infrastructure you're looking for so you can really hit your Clyburn hybrid cloud operating system images. >> Okay. All right, listen, we >> just go on, click, create image. Uh, we can select our different types here. I'm gonna go ahead and create a local VM because it's available image, and maybe they want to pass it around or whatever, and I just need a few moments for it to build. >> Okay? So while that's taking a few moments, I know there's another key question in the minds of the audience right now, and you're probably thinking I love what I see. What Right eye right hand Priceline say. But >> what does it >> take to upgrade from seven to eight? So large can you show us and walk us through an upgrade? >> Sure, this's my little Thomas Block that I set up. It's powered by what Chris and secrets over, but it's still running on seven six. So let's upgrade that jump over to my house fee on satellite on. You see all my relate machines here, including the one I showed you what Consul on before. And there is that one with my sun block and there's a couple others. Let me select those as well. This one on that one. Just go up here. Schedule remote job. And she was really great. And hit Submit. I made it so that it makes the booms national before. So if anything was wrong Kans throwback! >> Okay, okay, so now it's progressing. Here, >> it's progressing. Looks like it's running. Doing >> live upgrade on stage. Uh, >> seems like one is failing. What's going on here? Okay, we checked the tree of great Chuck. Oh, yeah, that's the one I was playing around with Butter fest backstage. What? Detective that and you know, it doesn't run the Afghan cause we don't support operating that. >> Okay, so what I'm hearing now? So the good news is, we were protected from possible failed upgrade there, So it sounds like these upgrades are perfectly safe. Aiken, basically, you know, schedule this during a maintenance window and still get some sleep. >> Totally. That's the idea. >> Okay, fantastic. All right. So it looks like upgrades are easy and perfectly safe. And I really love what you showed us there. It's good point. Click operation right from satellite. Ok, so Well, you know, we were checking out upgrades. I want to know Josh. How those v ems coming along. >> They went really well. So you were away for so long. I got a little bored and I took some liberties. >> What do you mean? >> Well, the image Bill And, you know, I decided I'm going to go ahead and deploy here to this Intel machine on stage Esso. I have that up and running in the web. Counsel. I built another one on the arm box, which is actually pretty fast, and that's up and running on this. Our machine on that went so well that I decided to spend up some an Amazon. So I've got a few instances here running an Amazon with the web console accessible there as well. On even more of our pre bill image is up and running an azure with the web console there. So the really cool thing about this bird is that all of these images were built with image builder in a single location, controlling all the content that you want in your golden images deployed across the hybrid cloud. >> Wow, that is fantastic. And you might think that so we actually have more to show you. So thank you so much for that large. And Josh, that is fantastic. Looks like provisioning bread. Enterprise Clinic Systems ate a redhead. Enterprise Enterprise. Rhetta Enterprise Lennox. Eight Systems is Asian ever before, but >> we have >> more to talk to you about. And there's one thing that many of the operations professionals in this room right now no, that provisioning of'em is easy, but it's really day two day three, it's down the road that those viens required day to day maintenance. As a matter of fact, several you folks right now in this audience to have to manage hundreds, if not thousands, of virtual machines I recently spoke to. Gentleman has to manage thirteen hundred servers. So how do you manage those machines? A great scale. So great that they have now joined us is that it looks like they worked things out. So now I'm curious, Tim. How will we manage hundreds, if not thousands, of computers? >> Welbourne, one human managing hundreds or even thousands of'em says, No problem, because we have Ansel automation. And by leveraging Ansel's integration into satellite, not only can we spin up those V em's really quickly, like Josh was just doing, but we can also make ongoing maintenance of them really simple. Come on up here. I'm going to show you here a satellite inventory and his red hat is publishing patches. Weaken with that danceable integration easily apply those patches across our entire fleet of machines. Okay, >> that is fantastic. So he's all the machines can get updated in one fell swoop. >> He sure can. And there's one thing that I want to bring your attention to today because it's brand new. And that's cloud that red hat dot com And here, a cloud that redhead dot com You can view and manage your entire inventory no matter where it sits. Of Redhead Enterprise Lennox like on Prem on stage. Private Cloud or Public Cloud. It's true Hybrid cloud management. >> OK, but one thing. One thing. I know that in the minds of the audience right now. And if you have to manage a large number servers this it comes up again and again. What happens when you have those critical vulnerabilities that next zero day CV could be tomorrow? >> Exactly. I've actually been waiting for a while patiently for you >> to get to the really good stuff. So >> there's one more thing that I wanted to let folks know about. Red Hat Enterprise. The >> next eight and some features that we have there. Oh, >> yeah? What is that? >> So, actually, one of the key design principles of relate is working with our customers over the last twenty years to integrate all the knowledge that we've gained and turn that into insights that we can use to keep our red hat Enterprise Lennox servers running securely, inefficiently. And so what we actually have here is a few things that we could take a look at show folks what that is. >> OK, so we basically have this new feature. We're going to show people right now. And so one thing I want to make sure it's absolutely included within the redhead enterprise in that state. >> Yes. Oh, that's Ah, that's an announcement that we're making this week is that this is a brand new feature that's integrated with Red Hat Enterprise clinics, and it's available to everybody that has a red hat enterprise like subscription. So >> I believe everyone in this room right now has a rail subscriptions, so it's available to all of them. >> Absolutely, absolutely. So let's take a quick look and try this out. So we actually have. Here is a list of about six hundred rules. They're configuration security and performance rules. And this is this list is growing every single day, so customers can actually opt in to the rules that are most that are most applicable to their enterprises. So what we're actually doing here is combining the experience and knowledge that we have with the data that our customers opt into sending us. So customers have opted in and are sending us more data every single night. Then they actually have in total over the last twenty years via any other mechanism. >> Now there's I see now there's some critical findings. That's what I was talking about. But it comes to CVS and things that nature. >> Yeah, I'm betting that those air probably some of the rail seven boxes that we haven't actually upgraded quite yet. So we get back to that. What? I'd really like to show everybody here because everybody has access to this is how easy it is to opt in and enable this feature for real. Okay, let's do that real quick, so I gotta hop back over to satellite here. This is the satellite that we saw before, and I'll grab one of the hosts and we can use the new Web console feature that's part of Railly, and via single sign on I could jump right from satellite over to the Web console. So it's really, really easy. And I'LL grab a terminal here and registering with insights is really, really easy. Is one command troops, and what's happening right now is the box is going to gather some data. It's going to send it up to the cloud, and within just a minute or two, we're gonna have some results that we can look at back on the Web interface. >> I love it so it's just a single command and you're ready to register this box right now. That is super easy. Well, that's fantastic, >> Brent. We started this whole series of demonstrations by telling the audience that Red Hat Enterprise Lennox eight was the easiest, most economical and smartest operating system on the planet, period. And well, I think it's cute how you can go ahead and captain on a single machine. I'm going to show you one more thing. This is Answerable Tower. You can use as a bell tower to managing govern your answerable playbook, usage across your entire organization and with this. What I could do is on every single VM that was spun up here today. Opt in and register insights with a single click of a button. >> Okay, I want to see that right now. I know everyone's waiting for it as well, But hey, you're VM is ready. Josh. Lars? >> Yeah. My clock is running a little late now. Yeah, insights is a really cool feature >> of rail. And I've got it in all my images already. All >> right, I'm doing it all right. And so as this playbook runs across the inventory, I can see the machines registering on cloud that redhead dot com ready to be managed. >> OK, so all those onstage PM's as well as the hybrid cloud VM should be popping in IRC Post Chris equals Well, fantastic. >> That's awesome. Thanks to him. Nothing better than a Red Hat Summit speaker in the first live demo going off script deal. Uh, let's go back and take a look at some of those critical issues affecting a few of our systems here. So you can see this is a particular deanna's mask issue. It's going to affect a couple of machines. We saw that in the overview, and I can actually go and get some more details about what this particular issue is. So if you take a look at the right side of the screen there, there's actually a critical likelihood an impact that's associated with this particular issue. And what that really translates to is that there's a high level of risk to our organization from this particular issue. But also there's a low risk of change. And so what that means is that it's really, really safe for us to go ahead and use answerable to mediate this so I can grab the machines will select those two and we're mediate with answerable. I can create a new playbook. It's our maintenance window, but we'LL do something along the lines of like stuff Tim broke and that'LL be our cause. We name it whatever we want. So we'Ll create that playbook and take a look at it, and it's actually going to give us some details about the machines. You know what, what type of reboots Efendi you're going to be needed and what we need here. So we'LL go ahead and execute the playbook and what you're going to see is the outputs goingto happen in real time. So this is happening from the cloud were affecting machines. No matter where they are, they could be on Prem. They could be in a hybrid cloud, a public cloud or in a private cloud. And these things are gonna be remediated very, very easily with answerable. So it's really, really awesome. Everybody here with a red hat. Enterprise licks Lennox subscription has access to this now, so I >> kind of want >> everybody to go try this like, we really need to get this thing going and try it out right now. But >> don't know, sent about the room just yet. You get stay here >> for okay, Mr. Excitability, I think after this keynote, come back to the red hat booth and there's an optimization section. You can come talk to our insights engineers. And even though it's really easy to get going on your own, they can help you out. Answer any questions you might have. So >> this is really the start of a new era with an intelligent operating system and beauty with intelligence you just saw right now what insights that troubles you. Fantastic. So we're enabling systems administrators to manage more red in private clinics, a greater scale than ever before. I know there's a lot more we could show you, but we're totally out of time at this point, and we kind of, you know, when a little bit sideways here moments. But we need to get off the stage. But there's one thing I want you guys to think about it. All right? Do come check out the in the booth. Like Tim just said also in our debs, Get hands on red and a prize winning state as well. But really, I want you to think about this one human and a multitude of servers. And if you remember that one thing asked you upfront. Do you feel like you get a new superpower and redhead? Is your force multiplier? All right, well, thank you so much. Josh and Lars, Tim and Brent. Thank you. And let's get Paul back on stage. >> I went brilliant. No, it's just as always, >> amazing. I mean, as you can tell from last night were really, really proud of relate in that coming out here at the summit. And what a great way to showcase it. Thanks so much to you. Birth. Thanks, Brent. Tim, Lars and Josh. Just thanks again. So you've just seen this team demonstrate how impactful rail Khun b on your data center. So hopefully hopefully many of you. If not all of you have experienced that as well. But it was super computers. We hear about that all the time, as I just told you a few minutes ago, Lennox isn't just the foundation for enterprise and cloud computing. It's also the foundation for the fastest super computers in the world. In our next guest is here to tell us a lot more about that. >> Please welcome Lawrence Livermore National Laboratory. HPC solution Architect Robin Goldstone. >> Thank you so much, Robin. >> So welcome. Welcome to the summit. Welcome to Boston. And thank thank you so much for coming for joining us. Can you tell us a bit about the goals of Lawrence Livermore National Lab and how high high performance computing really works at this level? >> Sure. So Lawrence Livermore National >> Lab was established during the Cold War to address urgent national security needs by advancing the state of nuclear weapons, science and technology and high performance computing has always been one of our core capabilities. In fact, our very first supercomputer, ah Univac one was ordered by Edward Teller before our lab even opened back in nineteen fifty two. Our mission has evolved since then to cover a broad range of national security challenges. But first and foremost, our job is to ensure the safety, security and reliability of the nation's nuclear weapons stockpile. Oh, since the US no longer performs underground nuclear testing, our ability to certify the stockpile depends heavily on science based science space methods. We rely on H P C to simulate the behavior of complex weapons systems to ensure that they can function as expected, well beyond their intended life spans. That's actually great. >> So are you really are still running on that on that Univac? >> No, Actually, we we've moved on since then. So Sierra is Lawrence Livermore. Its latest and greatest supercomputer is currently the Seconds spastic supercomputer in the world and for the geeks in the audience, I think there's a few of them out there. We put up some of the specs of Syrah on the screen behind me, a couple of things worth highlighting our Sierra's peak performance and its power utilisation. So one hundred twenty five Pata flops of performance is equivalent to about twenty thousand of those Xbox one excess that you mentioned earlier and eleven point six megawatts of power required Operate Sierra is enough to power around eleven thousand homes. Syria is a very large and complex system, but underneath it all, it starts out as a collection of servers running Lin IX and more specifically, rail. >> So did Lawrence. Did Lawrence Livermore National Lab National Lab used Yisrael before >> Sierra? Oh, yeah, most definitely. So we've been running rail for a very long time on what I'll call our mid range HPC systems. So these clusters, built from commodity components, are sort of the bread and butter of our computer center. And running rail on these systems provides us with a continuity of operations and a common user environment across multiple generations of hardware. Also between Lawrence Livermore in our sister labs, Los Alamos and Sandia. Alongside these commodity clusters, though, we've always had one sort of world class supercomputer like Sierra. Historically, these systems have been built for a sort of exotic proprietary hardware running entirely closed source operating systems. Anytime something broke, which was often the Vander would be on the hook to fix it. And you know, >> that sounds >> like a good model, except that what we found overtime is most the issues that we have on these systems were either due to the extreme scale or the complexity of our workloads. Vendors seldom had a system anywhere near the size of ours, and we couldn't give them our classified codes. So their ability to reproduce our problem was was pretty limited. In some cases, they've even sent an engineer on site to try to reproduce our problems. But even then, sometimes we wouldn't get a fix for months or else they would just tell us they weren't going to fix the problem because we were the only ones having it. >> So for many of us, for many of us, the challenges is one of driving reasons for open source, you know, for even open source existing. How has how did Sierra change? Things are on open source for >> you. Sure. So when we developed our technical requirements for Sierra, we had an explicit requirement that we want to run an open source operating system and a strong preference for rail. At the time, IBM was working with red hat toe add support Terrell for their new little Indian power architecture. So it was really just natural for them to bid a red. A rail bay system for Sierra running Raylan Cyril allows us to leverage the model that's worked so well for us for all this time on our commodity clusters any packages that we build for X eighty six, we can now build those packages for power as well as our market texture using our internal build infrastructure. And while we have a formal support relationship with IBM, we can also tap our in house colonel developers to help debug complex problems are sys. Admin is Khun now work on any of our systems, including Sierra, without having toe pull out their cheat sheet of obscure proprietary commands. Our users get a consistent software environment across all our systems. And if the security vulnerability comes out, we don't have to chase around getting fixes from Multan slo es fenders. >> You know, you've been able, you've been able to extend your foundation from all the way from X eighty six all all the way to the extract excess Excuse scale supercomputing. We talk about giving customers all we talked about it all the time. A standard operational foundation to build upon. This isn't This isn't exactly what we've envisioned. So So what's next for you >> guys? Right. So what's next? So Sierra's just now going into production. But even so, we're already working on the contract for our next supercomputer called El Capitan. That's scheduled to be delivered the Lawrence Livermore in the twenty twenty two twenty timeframe. El Capitan is expected to be about ten times the performance of Sierra. I can't share any more details about that system right now, but we are hoping that we're going to be able to continue to build on a solid foundation. That relish provided us for well over a decade. >> Well, thank you so much for your support of realm over the years, Robin. And And thank you so much for coming and tell us about it today. And we can't wait to hear more about El Capitan. Thank you. Thank you very much. So now you know why we're so proud of realm. And while you saw confetti cannons and T shirt cannons last night, um, so you know, as as burned the team talked about the demo rail is the force multiplier for servers. We've made Lennox one of the most powerful platforms in the history of platforms. But just as Lennox has become a viable platform with access for everyone, and rail has become viable, more viable every day in the enterprise open source projects began to flourish around the operating system. And we needed to bring those projects to our enterprise customers in the form of products with the same trust models as we did with Ralph seeing the incredible progress of software development occurring around Lennox. Let's let's lead us to the next goal that we said tow, tow ourselves. That goal was to make hybrid cloud the default enterprise for the architecture. How many? How many of you out here in the audience or are Cesar are? HC sees how many out there a lot. A lot. You are the people that our building the next generation of computing the hybrid cloud, you know, again with like just like our goals around Lennox. This goals might seem a little daunting in the beginning, but as a community we've proved it time and time again. We are unstoppable. Let's talk a bit about what got us to the point we're at right right now and in the work that, as always, we still have in front of us. We've been on a decade long mission on this. Believe it or not, this mission was to build the capabilities needed around the Lenox operating system to really build and make the hybrid cloud. When we saw well, first taking hold in the enterprise, we knew that was just taking the first step. Because for a platform to really succeed, you need applications running on it. And to get those applications on your platform, you have to enable developers with the tools and run times for them to build, to build upon. Over the years, we've closed a few, if not a lot of those gaps, starting with the acquisition of J. Boss many years ago, all the way to the new Cuban Eddie's native code ready workspaces we launched just a few months back. We realized very early on that building a developer friendly platform was critical to the success of Lennox and open source in the enterprise. Shortly after this, the public cloud stormed onto the scene while our first focus as a company was done on premise in customer data centers, the public cloud was really beginning to take hold. Rehl very quickly became the standard across public clouds, just as it was in the enterprise, giving customers that common operating platform to build their applications upon ensuring that those applications could move between locations without ever having to change their code or operating model. With this new model of the data center spread across so many multiple environments, management had to be completely re sought and re architected. And given the fact that environments spanned multiple locations, management, real solid management became even more important. Customers deploying in hybrid architectures had to understand where their applications were running in how they were running, regardless of which infrastructure provider they they were running on. We invested over the years with management right alongside the platform, from satellite in the early days to cloud forms to cloud forms, insights and now answerable. We focused on having management to support the platform wherever it lives. Next came data, which is very tightly linked toe applications. Enterprise class applications tend to create tons of data and to have a common operating platform foyer applications. You need a storage solutions. That's Justus, flexible as that platform able to run on premise. Just a CZ. Well, as in the cloud, even across multiple clouds. This let us tow acquisitions like bluster, SEF perma bitch in Nubia, complimenting our Pratt platform with red hat storage for us, even though this sounds very condensed, this was a decade's worth of investment, all in preparation for building the hybrid cloud. Expanding the portfolio to cover the areas that a customer would depend on to deploy riel hybrid cloud architectures, finding any finding an amplifying the right open source project and technologies, or filling the gaps with some of these acquisitions. When that necessarily wasn't available by twenty fourteen, our foundation had expanded, but one big challenge remained workload portability. Virtual machine formats were fragmented across the various deployments and higher level framework such as Java e still very much depended on a significant amount of operating system configuration and then containers happened containers, despite having a very long being in existence for a very long time. As a technology exploded on the scene in twenty fourteen, Cooper Netease followed shortly after in twenty fifteen, allowing containers to span multiple locations and in one fell swoop containers became the killer technology to really enable the hybrid cloud. And here we are. Hybrid is really the on ly practical reality in way for customers and a red hat. We've been investing in all aspects of this over the last eight plus years to make our customers and partners successful in this model. We've worked with you both our customers and our partners building critical realm in open shift deployments. We've been constantly learning about what has caused problems and what has worked well in many cases. And while we've and while we've amassed a pretty big amount of expertise to solve most any challenge in in any area that stack, it takes more than just our own learning's to build the next generation platform. Today we're also introducing open shit for which is the culmination of those learnings. This is the next generation of the application platform. This is truly a platform that has been built with our customers and not simply just with our customers in mind. This is something that could only be possible in an open source development model and just like relish the force multiplier for servers. Open shift is the force multiplier for data centers across the hybrid cloud, allowing customers to build thousands of containers and operate them its scale. And we've also announced open shift, and we've also announced azure open shift. Last night. Satya on this stage talked about that in depth. This is all about extending our goals of a common operating platform enabling applications across the hybrid cloud, regardless of whether you run it yourself or just consume it as a service. And with this flagship release, we are also introducing operators, which is the central, which is the central feature here. We talked about this work last year with the operator framework, and today we're not going to just show you today. We're not going to just show you open shift for we're going to show you operators running at scale operators that will do updates and patches for you, letting you focus more of your time and running your infrastructure and running running your business. We want to make all this easier and intuitive. So let's have a quick look at how we're doing. Just that >> painting. I know all of you have heard we're talking to pretend to new >> customers about the travel out. So new plan. Just open it up as a service been launched by this summer. Look, I know this is a big quest for not very big team. I'm open to any and all ideas. >> Please welcome back to the stage. Red Hat Global director of developer Experience burst Sutter with Jessica Forrester and Daniel McPherson. All right, we're ready to do some more now. Now. Earlier we showed you read Enterprise Clinic St running on lots of different hardware like this hardware you see right now And we're also running across multiple cloud providers. But now we're going to move to another world of Lennox Containers. This is where you see open shift four on how you can manage large clusters of applications from eggs limits containers across the hybrid cloud. We're going to see this is where suffer operators fundamentally empower human operators and especially make ups and Deb work efficiently, more efficiently and effectively there together than ever before. Rights. We have to focus on the stage right now. They're represent ops in death, and we're gonna go see how they reeled in application together. Okay, so let me introduce you to Dan. Dan is totally representing all our ops folks in the audience here today, and he's telling my ops, comfort person Let's go to call him Mr Ops. So Dan, >> thanks for with open before, we had a much easier time setting up in maintaining our clusters. In large part, that's because open shit for has extended management of the clusters down to the infrastructure, the diversity kinds of parent. When you take >> a look at the open ship console, >> you can now see the machines that make up the cluster where machine represents the infrastructure. Underneath that Cooper, Eddie's node open shit for now handles provisioning Andy provisioning of those machines. From there, you could dig into it open ship node and see how it's configured and monitor how it's behaving. So >> I'm curious, >> though it does this work on bare metal infrastructure as well as virtualized infrastructure. >> Yeah, that's right. Burn So Pa Journal nodes, no eternal machines and open shit for can now manage it all. Something else we found extremely useful about open ship for is that it now has the ability to update itself. We can see this cluster hasn't update available and at the press of a button. Upgrades are responsible for updating. The entire platform includes the nodes, the control plane and even the operating system and real core arrests. All of this is possible because the infrastructure components and their configuration is now controlled by technology called operators. Thes software operators are responsible for aligning the cluster to a desired state. And all of this makes operational management of unopened ship cluster much simpler than ever before. All right, I >> love the fact that all that's been on one console Now you can see the full stack right all way down to the bare metal right there in that one console. Fantastic. So I wanted to scare us for a moment, though. And now let's talk to Deva, right? So Jessica here represents our all our developers in the room as my facts. He manages a large team of developers here Red hat. But more importantly, she represents our vice president development and has a large team that she has to worry about on a regular basis of Jessica. What can you show us? We'LL burn My team has hundreds of developers and were constantly under pressure to deliver value to our business. And frankly, we can't really wait for Dan and his ops team to provisioned the infrastructure and the services that we need to do our job. So we've chosen open shift as our platform to run our applications on. But until recently, we really struggled to find a reliable source of Cooper Netease Technologies that have the operational characteristics that Dan's going to actually let us install through the cluster. But now, with operator, How bio, we're really seeing the V ecosystem be unlocked. And the technology's there. Things that my team needs, its databases and message cues tracing and monitoring. And these operators are actually responsible for complex applications like Prometheus here. Okay, they're written in a variety of languages, danceable, but that is awesome. So I do see a number of options there already, and preaches is a great example. But >> how do you >> know that one? These operators really is mature enough and robust enough for Dan and the outside of the house. Wilbert, Here we have the operator maturity model, and this is going to tell me and my team whether this particular operator is going to do a basic install if it's going to upgrade that application over time through different versions or all the way out to full auto pilot, where it's automatically scaling and tuning the application based on the current environment. And it's very cool. So coming over toothy open shift Consul, now we can actually see Dan has made the sequel server operator available to me and my team. That's the database that we're using. A sequel server. That's a great example. So cynics over running here in the cluster? But this is a great example for a developer. What if I want to create a new secret server instance? Sure, we're so it's as easy as provisioning any other service from the developer catalog. We come in and I can type for sequel server on what this is actually creating is, ah, native resource called Sequel Server, and you can think of that like a promise that a sequel server will get created. The operator is going to see that resource, install the application and then manage it over its life cycle, KAL, and from this install it operators view, I can see the operators running in my project and which resource is its managing Okay, but I'm >> kind of missing >> something here. I see this custom resource here, the sequel server. But where the community's resource is like pods. Yeah, I think it's cool that we get this native resource now called Sequel Server. But if I need to, I can still come in and see the native communities. Resource is like your staple set in service here. Okay, that is fantastic. Now, we did say earlier on, though, like many of our customers in the audience right now, you have a large team of engineers. Lost a large team of developers you gotta handle. You gotta have more than one secret server, right? We do one for every team as we're developing, and we use a lot of other technologies running on open shift as well, including Tomcat and our Jenkins pipelines and our dough js app that is gonna actually talk to that sequel server database. Okay, so this point we can kind of provisions, Some of these? Yes. Oh, since all of this is self service for me and my team's, I'm actually gonna go and create one of all of those things I just said on all of our projects, right Now, if you just give me a minute, Okay? Well, right. So basically, you're going to knock down No Jazz Jenkins sequel server. All right, now, that's like hundreds of bits of application level infrastructure right now. Live. So, Dan, are you not terrified? Well, I >> guess I should have done a little bit better >> job of managing guests this quota and historically just can. I might have had some conflict here because creating all these new applications would admit my team now had a massive back like tickets to work on. But now, because of software operators, my human operators were able to run our infrastructure at scale. So since I'm long into the cluster here as the cluster admin, I get this view of pods across all projects. And so I get an idea of what's happening across the entire cluster. And so I could see now we have four hundred ninety four pods already running, and there's a few more still starting up. And if I scroll to the list, we can see the different workloads Jessica just mentioned of Tomcats. And no Gs is And Jenkins is and and Siegel servers down here too, you know, I see continues >> creating and you have, like, close to five hundred pods running >> there. So, yeah, filters list down by secret server, so we could just see. Okay, But >> aren't you not >> running going around a cluster capacity at some point? >> Actually, yeah, we we definitely have a limited capacity in this cluster. And so, luckily, though, we already set up auto scale er's And so because the additional workload was launching, we see now those outer scholars have kicked in and some new machines are being created that don't yet have noticed. I'm because they're still starting up. And so there's another good view of this as well, so you can see machine sets. We have one machine set per availability zone, and you could see the each one is now scaling from ten to twelve machines. And the way they all those killers working is for each availability zone, they will. If capacities needed, they will add additional machines to that availability zone and then later effect fast. He's no longer needed. It will automatically take those machines away. >> That is incredible. So right now we're auto scaling across multiple available zones based on load. Okay, so looks like capacity planning and automation is fully, you know, handle this point. But I >> do have >> another question for year logged in. Is the cluster admin right now into the console? Can you show us your view of >> operator suffer operators? Actually, there's a couple of unique views here for operators, for Cluster admits. The first of those is operator Hub. This is where a cluster admin gets the ability to curate the experience of what operators are available to users of the cluster. And so obviously we already have the secret server operator installed, which which we've been using. The other unique view is operator management. This gives a cluster I've been the ability to maintain the operators they've already installed. And so if we dig in and see the secret server operator, well, see, we haven't set up for manual approval. And what that means is if a new update comes in for a single server, then a cluster and we would have the ability to approve or disapprove with that update before installs into the cluster, we'LL actually and there isn't upgrade that's available. Uh, I should probably wait to install this, though we're in the middle of scaling out this cluster. And I really don't want to disturb Jessica's application. Workflow. >> Yeah, so, actually, Dan, it's fine. My app is already up. It's running. Let me show it to you over here. So this is our products application that's talking to that sequel server instance. And for debugging purposes, we can see which version of sequel server we're currently talking to. Its two point two right now. And then which pod? Since this is a cluster, there's more than one secret server pod we could be connected to. Okay, I could see right there the bounder screeners they know to point to. That's the version we have right now. But, you know, >> this is kind of >> point of software operators at this point. So, you know, everyone in this room, you know, wants to see you hit that upgrade button. Let's do it. Live here on stage. Right, then. All >> right. All right. I could see where this is going. So whenever you updated operator, it's just like any other resource on communities. And so the first thing that happens is the operator pot itself gets updated so we actually see a new version of the operator is currently being created now, and what's that gets created, the overseer will be terminated. And that point, the new, softer operator will notice. It's now responsible for managing lots of existing Siegel servers already in the environment. And so it's then going Teo update each of those sickle servers to match to the new version of the single server operator and so we could see it's running. And so if we switch now to the all projects view and we filter that list down by sequel server, then we should be able to see us. So lots of these sickle servers are now being created and the old ones are being terminated. So is the rolling update across the cluster? Exactly a So the secret server operator Deploy single server and an H A configuration. And it's on ly updates a single instance of secret server at a time, which means single server always left in nature configuration, and Jessica doesn't really have to worry about downtime with their applications. >> Yeah, that's awesome dance. So glad the team doesn't have to worry about >> that anymore and just got I think enough of these might have run by Now, if you try your app again might be updated. >> Let's see Jessica's application up here. All right. On laptop three. >> Here we go. >> Fantastic. And yet look, we're We're into two before we're onto three. Now we're on to victory. Excellent on. >> You know, I actually works so well. I don't even see a reason for us to leave this on manual approval. So I'm going to switch this automatic approval. And then in the future, if a new single server comes in, then we don't have to do anything, and it'll be all automatically updated on the cluster. >> That is absolutely fantastic. And so I was glad you guys got a chance to see that rolling update across the cluster. That is so cool. The Secret Service database being automated and fully updated. That is fantastic. Alright, so I can see how a software operator doesn't able. You don't manage hundreds if not thousands of applications. I know a lot of folks or interest in the back in infrastructure. Could you give us an example of the infrastructure >> behind this console? Yeah, absolutely. So we all know that open shift is designed that run in lots of different environments. But our teams think that as your redhead over, Schiff provides one of the best experiences by deeply integrating the open chief Resource is into the azure console, and it's even integrated into the azure command line toll and the easy open ship man. And, as was announced yesterday, it's now available for everyone to try out. And there's actually one more thing we wanted to show Everyone related to open shit, for this is all so new with a penchant for which is we now have multi cluster management. This gives you the ability to keep track of all your open shift environments, regardless of where they're running as well as you can create new clusters from here. And I'll dig into the azure cluster that we were just taking a look at. >> Okay, but is this user and face something have to install them one of my existing clusters? >> No, actually, this is the host of service that's provided by Red hat is part of cloud that redhead that calm and so all you have to do is log in with your red hair credentials to get access. >> That is incredible. So one console, one user experience to see across the entire hybrid cloud we saw earlier with Red update. Right and red embers. Thank Satan. Now we see it for multi cluster management. But home shift so you can fundamentally see. Now the suffer operators do finally change the game when it comes to making human operators vastly more productive and, more importantly, making Devon ops work more efficiently together than ever before. So we saw the rich ice vehicle system of those software operators. We can manage them across the Khyber Cloud with any, um, shift instance. And more importantly, I want to say Dan and Jessica for helping us with this demonstration. Okay, fantastic stuff, guys. Thank you so much. Let's get Paul back out here >> once again. Thanks >> so much to burn his team. Jessica and Dan. So you've just seen how open shift operators can help you manage hundreds, even thousands of applications. Install, upgrade, remove nodes, control everything about your application environment, virtual physical, all the way out to the cloud making, making things happen when the business demands it even at scale, because that's where it's going to get. Our next guest has lots of experience with demand at scale. and they're using open source container management to do it. Their work, their their their work building a successful cloud, First platform and there, the twenty nineteen Innovation Award winner. >> Please welcome twenty nineteen Innovation Award winner. Cole's senior vice president of technology, Rich Hodak. >> How you doing? Thanks. >> Thanks so much for coming out. We really appreciate it. So I guess you guys set some big goals, too. So can you baby tell us about the bold goal? Helped you personally help set for Cole's. And what inspired you to take that on? Yes. So it was twenty seventeen and life was pretty good. I had no gray hair and our business was, well, our tech was working well, and but we knew we'd have to do better into the future if we wanted to compete. Retails being disrupted. Our customers are asking for new experiences, So we set out on a goal to become an open hybrid cloud platform, and we chose Red had to partner with us on a lot of that. We set off on a three year journey. We're currently in Year two, and so far all KP eyes are on track, so it's been a great journey thus far. That's awesome. That's awesome. So So you Obviously, Obviously you think open source is the way to do cloud computing. So way absolutely agree with you on that point. So So what? What is it that's convinced you even more along? Yeah, So I think first and foremost wait, do we have a lot of traditional IAS fees? But we found that the open source partners actually are outpacing them with innovation. So I think that's where it starts for us. Um, secondly, we think there's maybe some financial upside to going more open source. We think we can maybe take some cost out unwind from these big fellas were in and thirdly, a CZ. We go to universities. We started hearing. Is we interviewed? Hey, what is Cole's doing with open source and way? Wanted to use that as a lever to help recruit talent. So I'm kind of excited, you know, we partner with Red Hat on open shift in in Rail and Gloucester and active M Q and answerable and lots of things. But we've also now launched our first open source projects. So it's really great to see this journey. We've been on. That's awesome, Rich. So you're in. You're in a high touch beta with with open shift for So what? What features and components or capabilities are you most excited about and looking forward to what? The launch and you know, and what? You know what? What are the something maybe some new goals that you might be able to accomplish with with the new features. And yeah, So I will tell you we're off to a great start with open shift. We've been on the platform for over a year now. We want an innovation award. We have this great team of engineers out here that have done some outstanding work. But certainly there's room to continue to mature that platform. It calls, and we're excited about open shift, for I think there's probably three things that were really looking forward to. One is we're looking forward to, ah, better upgrade process. And I think we saw, you know, some of that in the last demo. So upgrades have been kind of painful up until now. So we think that that that will help us. Um, number two, A lot of our open shift workloads today or the workloads. We run an open shifts are the stateless apse. Right? And we're really looking forward to moving more of our state full lapse into the platform. And then thirdly, I think that we've done a great job of automating a lot of the day. One stuff, you know, the provisioning of, of things. There's great opportunity o out there to do mohr automation for day two things. So to integrate mohr with our messaging systems in our database systems and so forth. So we, uh we're excited. Teo, get on board with the version for wear too. So, you know, I hope you, Khun, we can help you get to the next goals and we're going to continue to do that. Thank you. Thank you so much rich, you know, all the way from from rail toe open shift. It's really exciting for us, frankly, to see our products helping you solve World War were problems. What's you know what? Which is. Really? Why way do this and and getting into both of our goals. So thank you. Thank you very much. And thanks for your support. We really appreciate it. Thanks. It has all been amazing so far and we're not done. A critical part of being successful in the hybrid cloud is being successful in your data center with your own infrastructure. We've been helping our customers do that in these environments. For almost twenty years now, we've been running the most complex work loads in the world. But you know, while the public cloud has opened up tremendous possibilities, it also brings in another type of another layer of infrastructure complexity. So what's our next goal? Extend your extend your data center all the way to the edge while being as effective as you have been over the last twenty twenty years, when it's all at your own fingertips. First from a practical sense, Enterprises air going to have to have their own data centers in their own environment for a very long time. But there are advantages of being able to manage your own infrastructure that expand even beyond the public cloud all the way out to the edge. In fact, we talked about that very early on how technology advances in computer networking is storage are changing the physical boundaries of the data center every single day. The need, the need to process data at the source is becoming more and more critical. New use cases Air coming up every day. Self driving cars need to make the decisions on the fly. In the car factory processes are using a I need to adapt in real time. The factory floor has become the new edge of the data center, working with things like video analysis of a of A car's paint job as it comes off the line, where a massive amount of data is on ly needed for seconds in order to make critical decisions in real time. If we had to wait for the video to go up to the cloud and back, it would be too late. The damage would have already been done. The enterprise is being stretched to be able to process on site, whether it's in a car, a factory, a store or in eight or nine PM, usually involving massive amounts of data that just can't easily be moved. Just like these use cases couldn't be solved in private cloud alone because of things like blatant see on data movement, toe address, real time and requirements. They also can't be solved in public cloud alone. This is why open hybrid is really the model that's needed in the only model forward. So how do you address this class of workload that requires all of the above running at the edge? With the latest technology all its scale, let me give you a bit of a preview of what we're working on. We are taking our open hybrid cloud technologies to the edge, Integrated with integrated with Aro AM Hardware Partners. This is a preview of a solution that will contain red had open shift self storage in K V M virtual ization with Red Hat Enterprise Lennox at the core, all running on pre configured hardware. The first hardware out of the out of the gate will be with our long time. Oh, am partner Del Technologies. So let's bring back burn the team to see what's right around the corner. >> Please welcome back to the stage. Red Hat. Global director of developer Experience burst Sutter with Kareema Sharma. Okay, We just how was your Foreign operators have redefined the capabilities and usability of the open hybrid cloud, and now we're going to show you a few more things. Okay, so just be ready for that. But I know many of our customers in this audience right now, as well as the customers who aren't even here today. You're running tens of thousands of applications on open chef clusters. We know that disappearing right now, but we also know that >> you're not >> actually in the business of running terminators clusters. You're in the business of oil and gas from the business retail. You're in a business transportation, you're in some other business and you don't really want to manage those things at all. We also know though you have lo latest requirements like Polish is talking about. And you also dated gravity concerns where you >> need to keep >> that on your premises. So what you're about to see right now in this demonstration is where we've taken open ship for and made a bare metal cluster right here on this stage. This is a fully automated platform. There is no underlying hyper visor below this platform. It's open ship running on bare metal. And this is your crew vanities. Native infrastructure, where we brought together via mes containers networking and storage with me right now is green mush arma. She's one of her engineering leaders responsible for infrastructure technologies. Please welcome to the stage, Karima. >> Thank you. My pleasure to be here, whether it had summit. So let's start a cloud. Rid her dot com and here we can see the classroom Dannon Jessica working on just a few moments ago From here we have a bird's eye view ofthe all of our open ship plasters across the hybrid cloud from multiple cloud providers to on premises and noticed the spare medal last year. Well, that's the one that my team built right here on this stage. So let's go ahead and open the admin console for that last year. Now, in this demo, we'LL take a look at three things. A multi plaster inventory for the open Harbor cloud at cloud redhead dot com. Second open shift container storage, providing convert storage for virtual machines and containers and the same functionality for cloud vert and bare metal. And third, everything we see here is scuba unit is native, so by plugging directly into communities, orchestration begin common storage. Let working on monitoring facilities now. Last year, we saw how continue native actualization and Q Bert allow you to run virtual machines on Cabinet is an open shift, allowing for a single converge platform to manage both containers and virtual machines. So here I have this dark net project now from last year behead of induced virtual machine running it S P darknet application, and we had started to modernize and continue. Arise it by moving. Parts of the application from the windows began to the next containers. So let's take a look at it here. I have it again. >> Oh, large shirt, you windows. Earlier on, I was playing this game back stage, so it's just playing a little solitaire. Sorry about that. >> So we don't really have time for that right now. Birds. But as I was saying, Over here, I have Visions Studio Now the window's virtual machine is just another container and open shift and the i d be service for the virtual machine. It's just another service in open shift open shifts. Running both containers and virtual machines together opens a whole new world of possibilities. But why stop there? So this here be broadened to come in. It is native infrastructure as our vision to redefine the operation's off on premises infrastructure, and this applies to all matters of workloads. Using open shift on metal running all the way from the data center to the edge. No by your desk, right to main benefits. Want to help reduce the operation casts And second, to help bring advance good when it is orchestration concept to your infrastructure. So next, let's take a look at storage. So open shift container storage is software defined storage, providing the same functionality for both the public and the private lads. By leveraging the operator framework, open shift container storage automatically detects the available hardware configuration to utilize the discs in the most optimal vein. So then adding my note, you don't have to think about how to balance the storage. Storage is just another service running an open shift. >> And I really love this dashboard quite honestly, because I love seeing all the storage right here. So I'm kind of curious, though. Karima. What kind of storage would you What, What kind of applications would you use with the storage? >> Yeah, so this is the persistent storage. To be used by a database is your files and any data from applications such as a Magic Africa. Now the A Patrick after operator uses school, been at this for scheduling and high availability, and it uses open shift containers. Shortest. Restore the messages now Here are on premises. System is running a caf co workload streaming sensor data on DH. We want toe sort it and act on it locally, right In a minute. A place where maybe we need low latency or maybe in a data lake like situation. So we don't want to send the starter to the cloud. Instead, we want to act on it locally, right? Let's look at the griffon a dashboard and see how our system is doing so with the incoming message rate of about four hundred messages for second, the system seems to be performing well, right? I want to emphasize this is a fully integrated system. We're doing the testing An optimization sze so that the system can Artoo tune itself based on the applications. >> Okay, I love the automated operations. Now I am a curious because I know other folks in the audience want to know this too. What? Can you tell us more about how there's truly integrated communities can give us an example of that? >> Yes. Again, You know, I want to emphasize everything here is managed poorly by communities on open shift. Right. So you can really use the latest coolest to manage them. All right. Next, let's take a look at how easy it is to use K native with azure functions to script alive Reaction to a live migration event. >> Okay, Native is a great example. If actually were part of my breakout session yesterday, you saw me demonstrate came native. And actually, if you want to get hands on with it tonight, you can come to our guru night at five PM and actually get hands on like a native. So I really have enjoyed using K. Dated myself as a software developer. And but I am curious about the azure functions component. >> Yeah, so as your functions is a function is a service engine developed by Microsoft fully open source, and it runs on top of communities. So it works really well with our on premises open shift here. Right now, I have a simple azure function that I already have here and this azure function, you know, Let's see if this will send out a tweet every time we live My greater Windows virtual machine. Right. So I have it integrated with open shift on DH. Let's move a note to maintenance to see what happens. So >> basically has that via moves. We're going to see the event triggered. They trigger the function. >> Yeah, important point I want to make again here. Windows virtue in machines are equal citizens inside of open shift. We're investing heavily in automation through the use of the operator framework and also providing integration with the hardware. Right, So next, Now let's move that note to maintain it. >> But let's be very clear here. I wanna make sure you understand one thing, and that is there is no underlying virtual ization software here. This is open ship running on bear. Meddle with these bare metal host. >> That is absolutely right. The system can automatically discover the bare metal hosts. All right, so here, let's move this note to maintenance. So I start them Internets now. But what will happen at this point is storage will heal itself, and communities will bring back the same level of service for the CAFTA application by launching a part on another note and the virtual machine belive my great right and this will create communities events. So we can see. You know, the events in the event stream changes have started to happen. And as a result of this migration, the key native function will send out a tweet to confirm that could win. It is native infrastructure has indeed done the migration for the live Ian. Right? >> See the events rolling through right there? >> Yeah. All right. And if we go to Twitter? >> All right, we got tweets. Fantastic. >> And here we can see the source Nord report. Migration has succeeded. It's a pretty cool stuff right here. No. So we want to bring you a cloud like experience, but this means is we're making operational ease a fuse as a top goal. We're investing heavily in encapsulating management knowledge and working to pre certify hardware configuration in working with their partners such as Dell, and they're dead already. Note program so that we can provide you guidance on specific benchmarks for specific work loads on our auto tuning system. >> All right, well, this is tow. I know right now, you're right thing, and I want to jump on the stage and check out the spare metal cluster. But you should not right. Wait After the keynote didn't. Come on, check it out. But also, I want you to go out there and think about visiting our partner Del and their booth where they have one. These clusters also. Okay, So this is where vmc networking and containers the storage all come together And a Kurban in his native infrastructure. You've seen right here on this stage, but an agreement. You have a bit more. >> Yes. So this is literally the cloud coming down from the heavens to us. >> Okay? Right here, Right now. >> Right here, right now. So, to close the loop, you can have your plaster connected to cloud redhead dot com for our insights inside reliability engineering services so that we can proactively provide you with the guidance through automated analyses of telemetry in logs and help flag a problem even before you notice you have it Beat software, hardware, performance, our security. And one more thing. I want to congratulate the engineers behind the school technology. >> Absolutely. There's a lot of engineers here that worked on this cluster and worked on the stack. Absolutely. Thank you. Really awesome stuff. And again do go check out our partner Dale. They're just out that door I can see them from here. They have one. These clusters get a chance to talk to them about how to run your open shift for on a bare metal cluster as well. Right, Kareema, Thank you so much. That was totally awesome. We're at a time, and we got to turn this back over to Paul. >> Thank you. Right. >> Okay. Okay. Thanks >> again. Burned, Kareema. Awesome. You know, So even with all the exciting capabilities that you're seeing, I want to take a moment to go back to the to the first platform tenant that we learned with rail, that the platform has to be developer friendly. Our next guest knows something about connecting a technology like open shift to their developers and part of their company. Wide transformation and their ability to shift the business that helped them helped them make take advantage of the innovation. Their Innovation award winner this year. Please, Let's welcome Ed to the stage. >> Please welcome. Twenty nineteen. Innovation Award winner. BP Vice President, Digital transformation. Ed Alford. >> Thanks, Ed. How your fake Good. So was full. Get right into it. What we go you guys trying to accomplish at BP and and How is the goal really important in mandatory within your organization? Support on everyone else were global energy >> business, with operations and over seventy countries. Andi. We've embraced what we call the jewel challenge, which is increasing the mind for energy that we have as individuals in the world. But we need to produce the energy with fuel emissions. It's part of that. One of our strategic priorities that we >> have is to modernize the whole group on. That means simplifying our processes and enhancing >> productivity through digital solutions. So we're using chlo based technologies >> on, more importantly, open source technologies to clear a community and say, the whole group that collaborates effectively and efficiently and uses our data and expertise to embrace the jewel challenge and actually try and help solve that problem. That's great. So So how did these heart of these new ways of working benefit your team and really the entire organ, maybe even the company as a whole? So we've been given the Innovation Award for Digital conveyor both in the way it was created and also in water is delivering a couple of guys in the audience poll costal and brewskies as he they they're in the team. Their teams developed that convey here, using our jail and Dev ops and some things. We talk about this stuff a lot, but actually the they did it in a truly our jail and develops we, um that enabled them to experiment and walking with different ways. And highlight in the skill set is that we, as a group required in order to transform using these approaches, we can no move things from ideation to scale and weeks and days sometimes rather than months. Andi, I think that if we can take what they've done on DH, use more open source technology, we contain that technology and apply across the whole group to tackle this Jill challenge. And I think that we use technologists and it's really cool. I think that we can no use technology and open source technology to solve some of these big challenges that we have and actually just preserve the planet in a better way. So So what's the next step for you guys at BP? So moving forward, we we are embracing ourselves, bracing a clothed, forced organization. We need to continue to live to deliver on our strategy, build >> over the technology across the entire group to address the jewel >> challenge and continue to make some of these bold changes and actually get into and really use. Our technology is, I said, too addresses you'LL challenge and make the future of our planet a better place for ourselves and our children and our children's children. That's that's a big goal. But thank you so much, Ed. Thanks for your support. And thanks for coming today. Thank you very much. Thank you. Now comes the part that, frankly, I think his best part of the best part of this presentation We're going to meet the type of person that makes all of these things a reality. This tip this type of person typically works for one of our customers or with one of with one of our customers as a partner to help them make the kinds of bold goals like you've heard about today and the ones you'll hear about Maura the way more in the >> week. I think the thing I like most about it is you feel that reward Just helping people I mean and helping people with stuff you enjoy right with computers. My dad was the math and science teacher at the local high school. And so in the early eighties, that kind of met here, the default person. So he's always bringing in a computer stuff, and I started a pretty young age. What Jason's been able to do here is Mohr evangelize a lot of the technologies between different teams. I think a lot of it comes from the training and his certifications that he's got. He's always concerned about their experience, how easy it is for them to get applications written, how easy it is for them to get them up and running at the end of the day. We're a loan company, you know. That's way we lean on accounting like red. That's where we get our support front. That's why we decided to go with a product like open shift. I really, really like to product. So I went down. The certification are out in the training ground to learn more about open shit itself. So my daughter's teacher, they were doing a day of coding, and so they asked me if I wanted to come and talk about what I do and then spend the day helping the kids do their coding class. The people that we have on our teams, like Jason, are what make us better than our competitors, right? Anybody could buy something off the shelf. It's people like him. They're able to take that and mold it into something that then it is a great offering for our partners and for >> customers. Please welcome Red Hat Certified Professional of the Year Jason Hyatt. >> Jason, Congratulations. Congratulations. What a what a big day, huh? What a really big day. You know, it's great. It's great to see such work, You know that you've done here. But you know what's really great and shows out in your video It's really especially rewarding. Tow us. And I'm sure to you as well to see how skills can open doors for for one for young women, like your daughters who already loves technology. So I'd liketo I'd like to present this to you right now. Take congratulations. Congratulations. Good. And we I know you're going to bring this passion. I know you bring this in, everything you do. So >> it's this Congratulations again. Thanks, Paul. It's been really exciting, and I was really excited to bring my family here to show the experience. It's it's >> really great. It's really great to see him all here as well going. Maybe we could you could You guys could stand up. So before we leave before we leave the stage, you know, I just wanted to ask, What's the most important skill that you'LL pass on from all your training to the future generations? >> So I think the most important thing is you have to be a continuous learner you can't really settle for. Ah, you can't be comfortable on learning, which I already know. You have to really drive a continuous Lerner. And of course, you got to use the I ninety. Maxwell. Quite. >> I don't even have to ask you the question. Of course. Right. Of course. That's awesome. That's awesome. And thank you. Thank you for everything, for everything that you're doing. So thanks again. Thank you. You know what makes open source work is passion and people that apply those considerable talents that passion like Jason here to making it worked and to contribute their idea there. There's back. And believe me, it's really an impressive group of people. You know you're family and especially Berkeley in the video. I hope you know that the redhead, the certified of the year is the best of the best. The cream of the crop and your dad is the best of the best of that. So you should be very, very happy for that. I also and I also can't wait. Teo, I also can't wait to come back here on this stage ten years from now and present that same award to you. Berkeley. So great. You should be proud. You know, everything you've heard about today is just a small representation of what's ahead of us. We've had us. We've had a set of goals and realize some bold goals over the last number of years that have gotten us to where we are today. Just to recap those bold goals First bait build a company based solely on open source software. It seems so logical now, but it had never been done before. Next building the operating system of the future that's going to run in power. The enterprise making the standard base platform in the op in the Enterprise Olympics based operating system. And after that making hybrid cloud the architecture of the future make hybrid the new data center, all leading to the largest software acquisition in history. Think about it around us around a company with one hundred percent open source DNA without. Throughout. Despite all the fun we encountered over those last seventeen years, I have to ask, Is there really any question that open source has won? Realizing our bold goals and changing the way software is developed in the commercial world was what we set out to do from the first day in the Red Hat was born. But we only got to that goal because of you. Many of you contributors, many of you knew toe open source software and willing to take the risk along side of us and many of partners on that journey, both inside and outside of Red Hat. Going forward with the reach of IBM, Red hat will accelerate. Even Mohr. This will bring open source general innovation to the next generation hybrid data center, continuing on our original mission and goal to bring open source technology toe every corner of the planet. What I what I just went through in the last hour Soul, while mind boggling to many of us in the room who have had a front row seat to this overto last seventeen plus years has only been red hats. First step. Think about it. We have brought open source development from a niche player to the dominant development model in software and beyond. Open Source is now the cornerstone of the multi billion dollar enterprise software world and even the next generation hybrid act. Architecture would not even be possible without Lennox at the core in the open innovation that it feeds to build around it. This is not just a step forward for software. It's a huge leap in the technology world beyond even what the original pioneers of open source ever could have imagined. We have. We have witnessed open source accomplished in the last seventeen years more than what most people will see in their career. Or maybe even a lifetime open source has forever changed the boundaries of what will be possible in technology in the future. And in the one last thing to say, it's everybody in this room and beyond. Everyone outside continue the mission. Thanks have a great sum. It's great to see it

>> fly from San Francisco. It's the Cube covering Google Cloud next nineteen Tio by Google Cloud and its ecosystem partners. >> Welcome back, everyone live coverage here in San Francisco for the Cube, Google Cloud next twenty nineteen to show around Cloud, Google Cloud, I'm John Forest Do Minimum and Dave along. We've been here all week, three days of wall to wall coverage here on the floor with all the exhibitors. Write the mean all the action we've talked to all the thought leaders, Google executives, entrepreneurs, experts are in the cloud and around the ecosystem. Dave's stew wrapping up the wrap up segment. Kind of can I put the show to rest and look to next year and possibly Google summits. There's one in New York and some other shows we're looking to also cover. But if you look encapsulate the show, I want to get your guys reaction, too. What the main themes have been, we're seeing obviously anthems was the big news. That's the big deal. That's their platform. They want to bring all the connective tissue around data security and really on prim hybrid cloud multi cloud application modernization. Clearly, during my open source and enterprise developers, plus the ability to hybrid and multi cloud stew. Your thoughts on the show. >> Yeah. So, John, you know, when I first saw Antos, I was like, Well, this is CSP that they announced last year We were excited about that talk about things like Azure Stack and eight of us Outpost. But the more I learn about it, the more I understand it. It's more than just kind of g k e and a little bit of packaging here, Eric for David. I just interviewed a Google fellow and, you know, you expect the the Google Fellow to really be able to articulate, You know, the history of Google and the distributor architect doing is like we're going to enable cloud native. Of course, we always had that in the Google Cloud, but now we're going to make that easier for you to do that in your own environment. So when you're thinking about modernizing your applications, you know, I was a little bit tough on Google when I said, Oh, I hear a lot about lift and shift. Well, most customers can't lifted, shifted, not change, because then I'LL pull it back. It's too expensive, but if I could modernize wherever it makes the most sense. I talked to some customers here that said, Look, I need to kick the team and get it into the cloud And then I could modernize and start falling apart. But for someone customers, I can't move that. And they need to modernize it here and that Antos is the key enabler and therefore it's a good message, its extension of what they done with Cuba. Netease. That's a lot of other pieces here. But you know, I'm pretty impressed. >> They want to get your thoughts is one of things I'm seeing and, you know, in sports they wanna team, plays a game and wins. They call it a statement game. I think Google Cloud next twenty nineteen is a statement by Google saying, We're into the enterprise. We're not goingto waiver. We got hired Thomas Curry and mid savory. They're going to keep all the great talent. No one's believing. It's not like a new regime. Change came in. They're pivoting. They knows there's no pivot here. They put a stake in the ground saying we are going to invest in the clouds soon. DARPA Kai, the CEO of Google said that on stage of day one, they're clearly putting all the window dressing around enterprise with all the great phrases that we love. Digital transformation, data centric architecture, multi cloud hybrid monitors that applications They're invested, Dave. They are in it to play. They recognize that they're not gonna win right away because it's a long game. So Google clearly is playing the cards properly. They're saying, Look, if we're going to bring a lot of the table and this long time table, but we're in it to play and we're going to play well when invest. >> Yeah, I think it took a while for me to get there Stew, too. He is. I heard a lot about what Right we do get a global distributed infrastructure or we're doing the applications for digital transformation. We got industry specific solutions. Is what way d'Oh. Okay. Great. And I heard a lot of you know differentiators are unique value proposition. So, for civil, what I would have liked to hear it right up front was okay. We know that eighty percent of your workloads are on Prem. Well, guess what, and we're investing in scale and all that stuff, but We're the best at cloud native and and we're going to take and we have the tools and expertise. We're gonna bring those to you on your premises and show you how to get there. And then when you're ready, come to the cloud. If you're never ready, that's fine. But we're going to earn the right for your future business. Hey said that Stead that >> right way, the things we're wondering your business. But I don't think they can yet say were the best that cloud native and that I think that's that's still good self awareness studio for Google. >> I think they could say it now. Maybe it's debatable. >> I would debate that I do not think that Google is the best cloud native cloud at this point. I don't think they have the breath and depth Amazon has, but I don't think that that's the hard core stick in the ground. Because Cloud native is early cnc F, they're investing heavily in open source is a big bet that they're talking about. They got a lot more work to do but cloud needed. Still, it's still early because you said the workloads is still on premise for most of the enterprises, so we got plenty of time. The point is, if they had overplayed that card, I would have been more cautious. >> Well, I mean, Okay, fine, huh? Let's talk talk about that a little bit because it's new. It's Would you? Would you disagree that internally, Google's got the most sophisticated, the best cloud in the world internally, globally for Google. And they make that comment when they make that claim, right? That start there, we get the best cloud in the world. Yeah, >> well, I think it's got a great cloud, >> too. Okay, so there's stuff on there. I mean, they've got least got some credibility there, so I would have come from that position straight now. The other criticism I heard was where the numbers. Now, that doesn't bother me so much. How long did it take Amazon to show us the numbers? Nine years? I think so. Good. We'LL get there, it's clear it's growing. You look around here. There's what thirty thirty five thousand people don't know what was there last year. Twenty. Twenty five thousand. It's growing, it's growing nicely and the quality of the people is good. >> Here's what I'd say about Google Cloud Steward? Let's get your reaction. Sudhir has Bay said this. He's the director product. Mentioning about cloud fusion, he said This from a customer quote. Google's cloud is like an awesome highway, but I can't get my car on the road. So that's the on ramp. >> I can't get by giving car. Okay, so so this note about you Look at the >> technology from Spanner Cooper duties, which was founded inside Google. And they did that right. Big queries. Amazing. They have freaking amazing tech because they had to do it for Google. So I think that is a key strategy. And I, like other clouds that have come in and then died away, didn't have a lot of tech chops. So Cultural Shift is one of the big teams, but on ramping, getting people on board and the bed another source. I think there's a gestation period that's gives Google some time. I don't think they gotta have it overnight there some table stakes, but they're there checking the boxes just kind of grind it out. >> I mean, look, the critique has been for years is you know, Google's too smart for all of us. you know, way have love reading the papers and were really impressed with the technology. But the term you heard over and over again this week, we're going to meet customers where they are. And I I almost failed. They dialled it down a little too much here because I didn't have anything that I'm like. Wow, blown away. Like, you know, they had er's up on stage and it's like I'm used to seeing him flying out of a plane with a Google glass on his head. >> I was started by the way that was Google. I o like, you're >> gay. But, you know, you know, one of that's what you expect from a googol is you know, some of those pieces and there wasn't a G wow amazing moment for me, but the messaging solid, they absolutely you know, understanding or solving some real customer problems today and, you know, solid >> well and one hundred percent of the cloud providers now have a coherent and explainable hybrid on Prem strategy. You know, frankly, it's about time. I mean, they were denying that for a long time, and I think it's clear that's where the business is >> well to me. The big criteria on the cloud game is Do they have the global footprint? They do. Do they have the software at scale Check? Do they have the connective tissue to bring these disparity opportunity data services together Check working on it, continue to improve. And are they on the philosophy side of things? Meaning one of things that I am made Amazon really great. Wass they from day one. We're a P I center who will always has been part of web services. So they have that DNA. I think apogee is going to be the secret little dark horse. And all this is going to tell Signe because as a p, I become programmable. You saw Sisko of'em wear on stage. Can they build on ecosystem? Can they work with multiple vendors? Because the fact is, from our data and we've been reporting on this on silicon angle and Wiki bomb is that big enterprises and governments, whether it's a d, o. D. Or a big bank, are gonna have hundreds of cloud projects, hundreds of workloads that's going to require unique clouds selection criteria because you cannot separate real time data from software, and that's just the facts of the databases are moving all over the place. If I gotta work Lodi, any data? I gotta be agile with the data, but I then need a data plane to connect across other workload. So workload conversation, I don't think was front and center enough where workloads are for the key criteria. >> And still some of the message on where Google fits in that hybrid and multi cloud world is a little bit muddy to me. So how did they get, you know, on those in your data center? Well, it's a deep partnership with V m where, uh, you know, I heard some people here. It's like, Oh, well, the current Amazon VM wear deal, you know, is like up for renewal soon. It's like I don't see Veum Where an Amazon separating that Latino way. People engineering partnerships. We've heard directly from Andy Jazz sees talked about on the Cube how important that relationship is. S O Veum was going to play across all the cloud environment. But you know, where does Google, you know, really make their money? They're going to partner with all the open source companies. And you know, you're going to own your data. We're going to make sure the prophecies there. So is Dave Said the numbers and the business of how Google Khun start slow scaling and really growing the enterprise business beyond, you know, G sweets now, part of it. And we saw some of the android for enterprise, and they have lots of pieces, but the cloud revenue gets a little bit muddy like a Microsoft. So, you know, from the cloud piece itself, I'm not sure where you know they start gaining on a Microsoft or an Amazon today. >> Well, I think that they could gain ground, take territories. That said on on Day one, Jennifer Linds, demo of no code modification, migration of workloads. If that actually happens, that's going to be a critical piece of the pie that's going to move. Move the needle very quickly for at Google. But I >> want to get you >> guys take on surprises. What surprised you here at the show? What was something that you didn't expect happen? That was a surprise on a good way. To me, the big surprise is that the word customer was used a lot more here than ever before. Customer is the key to success in the enterprise, listening to customer and customer choice. That's the playbook from Amazon. You don't hear Andy Jassy or any other executive Amazon go three words without saying the word customer. If you had a tag cloud and be like customers, the biggest font here we've heard customer choice. That's been a big one for me. >> Surprises. I was going to say when you were asking that question to get to me. It was customer related as well. You know clearly when you in Amazon show it's just customer. Just get inundated with a cool injection of customers. It's very impressive, but you don't have that scale here. However, What did see is a lot of Fortune. One thousand company's senior people were here. Yeah, still kicking the tires but learning. And I think that usually leads to something. So I think Google's developing a lot of pipeline at this show that I think next year is going to translate. We had conversations John with companies that we can't mention on air, but they are seriously substantively looking at moving workloads into Google's Cloud Number one. Number two is if you look around here, Deloitte, Accenture at toes. You know, some of the biggest. I'd like to see more of those global s eyes, and I think you will. And that's where you're going to really start to see customers. >> Dave took the customer. I'll say partner. So we said in one of our analysis segments, that logo slides Good. But, you know, compare itto Microsoft or Amazon. It needs to quadruple where it is today. But in the conversations that I had from startups through some of those big logo's on here, partnering with Google is good for them and they're excited by it. And that's not necessarily the clay case for every one of the big cloud providers out there. >> All right, so a lot of multi cloud talk. I've said multi clouds all the rage, but it's really more a symptom of sort of multi vendor people going best of breed with different departments. Big news last night on Jet I John, I want to get your take. Google really wasn't I don't think ever in the running, but certainly, you know Amazon was the lead Oracle, IBM, Microsoft share the news in your analysis of that news. >> Well, yesterday there was news that the Department of Defense, this Jet I contract joint defense initiative that's going on joining the Price Defense Initiative system. The military cloud ten billion dollar contract was under a lot of It's the biggest story in Tech and DC in generations. It's the confluence of procurement being outdated. Clouds selection, one soul cloud for that workload, multi cloud across in the department and a lot of lost business, potentially for Oracle in IBM. So Amazon, Microsoft, Amazon, Webster's, Microsoft, Oracle and IBM. We're all fighting for this business. The incumbents IBM and Oracle. We're potentially at risk billions of dollars. So it's been a lot of dirty pool, so to speak, a lot of dirty politics, a lot of dirty smear campaigns going on, from Oracle to to Amazon to try to discredit them. So the D. O d. Oracle soothe d o d. Saying is unfair process conflict of interest? The D. O. D made a final selection. Amazon Web services and Microsoft are the final selections and basically kicking out Oracle and IBM at the process. So Oracle, IBM are out. Oracle's lawsuit's still pending that'LL probably be dismissed because Oracle tried three different times to claim conflict of interest. They tried to claim conflict of interest in. And where has three in my notes here July twenty eighteen, November twenty eighteen and April twenty nineteen. All three times competition has been not proven, and Oracle and IBM or out. The analysis here is, is that this proves what we've been saying on the Q and that is, is that you can have one cloud soul cloud for a workload. So the Department of Defense has hundreds of projects. But for the military project that ten billion dollar one Amazon or Microsoft, probably the Amazon to the front runner can serve that cloud. And that's the best architecture. That means that Microsoft will probably win the eight billion dollar contract of the D. O. E s contract for collaboration again. Soul Cloud Soul workload. This is the trendy. My analysis is that Oracle on IBM, mainly Oracle, knew that they were going to lose. They tried to do whatever it takes to kill the deal. And now the D. O. D. Has brought forward and their modernizing the application and all these lawsuits about procurement rules from nineteen eighty five all this trip wires, all these little nuances. This is a great win for the Department of Defense, and I think it is a tell sign for large enterprises because you could be multiple. You'd have multiple clouds, but you can have one cloud work on one workload. It could be a big monster workload like a ten billion dollar >> workload. >> There could be a small work. >> All the tech vendors want to eat it. The government trough, We know that. And so the why is this relevant? It's relevant to me because you're you're absolutely right for a particular set of workloads. Mission critical workloads, especially a single cloud, is going to be more cost effective, more secure, uh, higher availability, less complex. And that's really what the debate is here now is multi cloud gonna happen? Of course, for different workloads is going to be horses for courses. So multi cloud is a huge opportunity. Everybody's going after it stew uh, Google through its hat in the ring in a big way. We seem to have a couple of camps lining up and read. Had interesting, interesting leads in both camps. Kind of got the IBM redhead camp and of'em wear with now with Google Really interesting sort of chessboard matches going on? >> Yeah, absolutely. Every customer we talked to hear. There's no like, Oh, you know, I might be moving most of my stuff or even all of my stuff to the public cloud, but it is workload dependent, and that's how I'm choosing it. Google has some key strength. I took a little while to get the data and I and ML pieces that we know Google has some strength here. One of the questions I had coming into it Can they reclaim kind of that thought leadership space. I'd love to hear whether you guys think I think that was the case, but, you know, messaging point on good speed. You know T K has them talking to the Enterprise in a way that won't scare them away as to oh, geez, I'm not smart enough to work with Google so >> well, I think I think Google has to get enterprise compatible and they've been working really hard to do that, and they got it. Just grind it out. I said this on Tuesday. It's a grinding out game. They've got a got a fight to the trenches. We've got to get the check boxes, and this is what Amazon did that early on and helped them a lot. Google has been working hard, I think, their security angle with the from a device. I phoned the Android phone and onboard security at the edge is huge. I think data and Big Query and those kinds of on boarding tools is going to be a great accelerant. I think cloud code cloud Run Cloud build is a phenomenal construct. I think that's absolutely delivered Ella for friendly. If they can continue to serve the developer for the enterprise and make it easy to build and stand up applications that hit that sweet spot of the trend, which is the modernization of enterprise APS not develop, perhaps not like a startup started sort. Different styles are cloud born in the cloud enterprise that's gonna deal with legacy and all these compliance and all this risk. They could make that easy and make it Dev ops like That's a great check boxes. >> Just a quick note on that, because there was a lot of enterprise talk there. There's a nice group inside a Google, working with a lot of the startups, got to talk to a couple of the start up there, and Google's definitely company there looking to partner with. All >> right, guys, let's wrap this up. Google really leaning into the enterprise heavily. Obviously, they're not. They're not blinking. They're going to continue power forward thinking. I like the mojo they have here. They got a new CEO. We interviewed George Curry, and Thomas's brother Thomas couldn't make it on the Cube. He's super busy talking to customers were gonna get him on the cue soon, but you got a culture here. Google and the culture is innovation, and the cultures Dev ops. The culture's developed for the country's AP eyes D. That puts him in a good position, >> their thoughts. I mean, I've been saying for a decade I feel like a broken record. I said it so much. I stopped saying it that the marginal economics of the Cloud service providers who have scale are driving towards zero. In other words, the more volume they do, they're there. The cost of adding an extra customer goes down to zero, just like software. There's three companies in United States who have that scale Google, Amazon and Microsoft. Obviously some guys outside the U. S. And you look at the cap Ex numbers forty seven billion over the last three years by Google. Thirteen and a half billion year to date US data centers alone. It would take IBM three and a half years to spend that much on Affects Who take Oracle six years. Okay, they just do not have the marginal economics to compete. They'LL compete in other ways, but though these three are in it to win it this big market, they're trillion dollar market. There's enough room for each to carve out an opportunity and continue to grow for quite some time. Do >> and Google lining up their ecosystem of partners to help them get deep into the enterprise. Absolutely, There's good opportunity for Google to do a number of acquisitions. They have, you know, a big bank spend a lot of money not just on infrastructure, but all the partner engagements and definitely some acquisition to help them get there. Wouldn't be surprised if they, you know, made some nice acquisition to help them grow that enterprise. I am in a modern way way now that was mentioned to it was carrying twins could be back together, but sure, >> awesome stuff. Guys, I think my my final take is I've always said Google's the Dark Horse and the Cloud game. They don't have a lot of baggage like a lot of work to do, and they're they're working hard and they really bring in tech to the table that bringing that culture of innovation, they're there behind this. Opportunities for them to move the ball down the field in a big way. I think they can take territory and gain share quickly if global things follow the place. If those bets come home, this dark horse will be right up on number two really quickly. So great job. Wanna thank Google, Google's team Cool calms Team, Google's CMO and executive Thomas carrying for letting us come to the Cube. Bring the Cube here. Google's very co creation oriented. We appreciate the location. I want to thank Google one. Thanks to our sponsors about our sponsors, we wouldn't be here, so he city signal FX. We got net app. We got Saada. We got some great clients here supporting us. You, Fio. Thanks to our sponsors, they signal to the community they care and they support our programs. Our tenth year of Cube coverage at events one. Thank everyone for watching, listening, sharing hit us up on Twitter at Cube and also silken angle dot com. We now are adding on a new feature to our Cube, which is on silicon angle dot com special reports where we flow as many stories as it takes to get the truth out there. Get the story's right, of course. Used the cube and stream the data with you here on the Cube. We're here. Google Next in San Francisco. I'm John Faria student Min David Long. Thanks for watching.

>> From the SiliconANGLE Media office in Boston, Massachusetts, it's theCUBE. Now, here's your host, Dave Vellante. >> Hi, everybody, welcome to this CUBE conversation. My name is Dave Vellante. You know the software industry is going through dramatic change. Obviously cloud is a piece of that. The drive towards simplification. Gone are the days of multi tens of millions of dollar implementations that take years and years with highly-customized software modifications. Those days are gone. People wanna simplify. They wanna be agile. Carter Lloyds is here. He's with QAD, an ERP manufacturing software specialist. Carter, thanks so much for coming on theCUBE. >> Thanks for having me here. I'm excited to talk to ya. >> Yeah, so I'm learning more about your company. Love the story and I'd like you to share it with our audience. Give us the brief overview of who QAD is. >> Absolutely, so maybe we should start with where we came from. So, it was about 40 years ago in 1979. Karl Lopker, our founder, and Pam Lopker, our co-founder, were in Santa Barbara, California. Karl had a company that was making sandals and he was running into some manufacturing problems and he needed some help and he needed some software to make it easier for him to manufacture. Pam came along, she wrote some software for him. He was very successful. That company turned into Deckers which now owns Uggs and is doing some great things and they decided along the way that although sandals are interesting, they thought software was more interesting. So they founded QAD and for 40 years we've been very focused on helping to make manufacturing easier through cloud ERP software now. >> That's a great story, so Pam is the coder. She's the alpha geek. >> Exactly. >> And they solved their own problem and then said, okay, let's take this to market. >> Exactly and that's why manufacturing, it's in our DNA. It's in our roots and it's what we're passionate about. >> Well so the obvious question that people are gonna have is how do you compete with the big whales in the market, particularly SAP? >> Okay, fantastic. I heard a quote recently that I've really locked onto and it's from the founder of the World Economic Forum and the quote is that in the old days, it used to be the big fish that would eat the small fish but in today's world, it's the fast fish that eats the slow fish and we see that not only as a metaphor for our position within the ERP industry, but what our customers are going through right now. That with all the rapid change that's going on, it's not about how big you are in economies of scale. It's about how resilient you are and how fast you can adapt. >> Well, that's interesting. So you're a smaller company, obviously, than the multi tens of billions of dollars that SAP and Oracle and others, but you're talking like a startup. >> Yep. >> Agile, speed. Is that how you think about yourselves? >> Absolutely, I think a startup mentality is always great to have, but rapid, agile, and effective. We believe that those are the requirements of our customers within the manufacturing business and that's what we need to be able to provide. >> So let's talk more about the differentiation. I mean you can't be all things to all people as a smaller company and a company that wants to be agile so what are some of the areas that you're focused on where you're having successes. >> Okay, absolutely, so historically, we focused on manufacturing, but that's too broad so we're focused on six verticals within manufacturing. So it's automotive, life sciences, food and beverage, consumer-packaged goods, electronics, and high tech. I'm sorry, industrial. So those are the main areas that we're focused on right now but within that, we're seeing a lot of challenges for manufacturers within that area. Again, it's this concept of change. We believe that the only constant is change and legacy ERP systems simply weren't designed for change. If there was no change, the system that you installed eight years ago would work just as well today as it did eight years ago, but that's not what's happening. We're seeing a disconnect between the business requirements and what the systems are able to provide. >> Now is your strategy to sort of build greater functionality into the software that sort of maps to companies' business processes or is it that the software is super flexible and can be adapted? Maybe you could describe that a little bit. >> It's both. So to start with, we want to not deliver to our customers a framework on which they need to build out their processes but realize that there are best practices and there are common processes within, amongst companies within a particular niche and so we want to come to the table with the very best industry best practices that we can and we do that. We also recognize, though, that each company is slightly different and to simply say adopt best practices and you must do that is not the right way to go. So we believe that our software can get our customers to 90% of their requirements and that's world-class but for that last 10%, don't ignore them. If that's where your competitive advantage is, where your differentiation is, then we need to give you a way to be able to meet those requirements and a way that is simple and does not lock you in to the software that you currently have. >> Mh-m, okay so Carter you're a global company. Maybe you could give us a sense of the sort of scope of your operations. >> Absolutely, so our customers are global and they've taken us global. We support over 65 countries in terms of the regulatory requirements so that out of the box, our software is able to do that. We believe that's industry-leading. We have operations all around the world, direct and through partners. >> So you guys have been around for a while. When you step back and think about some of the big trends, obviously cloud, everything is becoming, you know, about server size, what are the factors that you look at that are, you're trying to make tail winds for your company? >> Absolutely, so we've spent a lot of time over the last couple of years thinking about disruptors. So what are the common themes in these changes that our customers are facing and we've narrowed that down to three top disruptors. So the first one is anything is a service. So end users now are demanding not just products but what that product can do and the classic example is people don't want drills. They want holes. Why are we selling them drills? And we're seeing that sweep across manufacturing. We've got a customer that delivers industrial equipment to fast food chains and they don't wanna simply buy fryers. They want to be able to fry things so they're asking that vendor to be able to provide it as a service to be able to monitor and intervene so that they have more fryer up time which makes sense. That's the first one. The second one that we see is make to scale it order or mass customization. People want things the way that they want them and that's getting more pervasive throughout the supply chain. And then the third one is the digital transformation of manufacturing which many people call Industry 4.0. >> So on that last piece, very data-oriented >> Yes. >> And so maybe talk a little bit about how your customers are using data to transform their business and what role you guys play. >> Sure. It's absolutely critical when we think about how data has transformed the world of the consumer, it's incredible. What you are now able to do on the internet, even tied to anything as a service. The concept that we don't own movies anymore. We don't own music. We get it delivered as a service to us but the first step in doing that is to really digitize manufacturing. So it starts with the acquisition of company data and value chain data and then using that to be able to measure and optimize process to improve performance. >> So cloud is obviously another big trend in your business. You guys have moved to a cloud operating model whether it's on-prem or in your cloud but talk about your cloud strategy and what you guys are doing there, maybe some of your product portfolio. >> Absolutely, so we were very early to the cloud. Our first product went to the cloud in 2003 before it was even called the cloud. I think we called it on demand then and that was a supplier collaboration tool. We moved our flagship ERP system to the cloud in 2007 and since then, we've been building it for the cloud, optimizing, designing and it was an incredible experience for us that really had customer benefits because once you start to become a service-provider rather than a product-provider, you see it through your customers' eyes. So, depending on your viewpoint, you're either eating your own dog food or drinking your own champagne and it led us to understand some of the pains that people have in implementing ERP systems and upgrading them and then to design fixes so the software goes in faster, easier, and can be upgraded to a much greater extent. >> And so if you're gonna be in the cloud, your customers obviously wanna avoid a lot of custom modifications. We heard earlier that's sort of one of your differentiations and am I getting that right? As your customers move to the cloud, they're minimizing the need to do custom mods? >> So I would caveat that a little bit. I think the need still exists for that last-mile functionality to meet the individual requirements of the company but we think that customizations are evil. We want to eliminate customizations but still give them the ability to deliver on that need through extensions and new applications that are written in a non-intrusive way and can float above the system and therefore the system can be upgraded without breaking those connections. >> We're having to go back inside to the guts of those what you just called the last mile, right? >> Absolutely, so our customers are in the manufacturing business. They're not in the software business and part of the cloud-value proposition is allowing our customers to do what they do best which is to make great products and serve their customers and let us do what we do best which is delivering software through the cloud to them. >> And so your cloud products and your on-prem products are sort of identical from a code-based standpoint. Is that correct? >> They are, exactly. We do not believe that cloud should be a compromise. Our customers demand full-functionality ERP. That's what we had delivered previously on-premise and that's what we deliver on the cloud so it is identical software. >> So go back to this digital transformation for a minute 'cause you do a lot of conferences with theCUBE. You hear that. What does that mean to your customers? It's not just a buzz word. Every customer you talk to saying, digital, digital, digital. It's the number one driver of our business. What does that mean to your customer base? >> Absolutely, so for us it's not about the technology itself. It's about the use case and how it can make them better manufacturers and make manufacturing easier. So there are a couple of different areas that we've been exploring and we do that through a very pragmatic approach and we call that QAD Labs where we work with our customers around their use cases and how we can apply technology to it. So one of the areas that we're working on right now is around machine learning and it's to help automotive suppliers to take some of the signals that they're receiving from the OEMs in terms of what the requirements are and make sense of it so that what they are planning on delivering closely matches what the ultimate requirement will be from the OEMs. The OEM signals often jump around quite a bit and through machine learning, we can make better sense and not necessarily replace the planner, but provide additional information suggestions to the planner to make them more efficient. >> So the outcome is better predictability, sort of less heavy-lifting? >> Absolutely, so, much better customer service, less expediting of materials, and then also lower inventory. >> Talk about QAD Explore. It's coming up in May. When is it? What can people expect? What's it look like? >> Absolutely, so we have our user conference. Our global user conference in New Orleans, Louisiana, May sixth through ninth. It's a fantastic event. We get very excited about it. I guess we could say we get jazzed about it since it's in New Orleans. It allows us to really think about our customers, to meet with our customers, to have our customers network with each other, learn best practices, and see what we're doing and how we're trying to help them. >> What's the format of Explore? Like you've got obviously keynotes. Is it one-day, two-day? Maybe describe that a little bit. >> Absolutely, so it's a three-day event. The keynotes are fantastic. We try to do short, TED talk-type events with some of our executives so you can hear about our strategy and what we're releasing. We bring in industry experts and experts around the future of manufacturing and the future of business so that our customers can start to see where their area might be headed so that they can start to make decisions about where we're going and then in the afternoons we tend to go into breakouts where we can do deep dives into our solutions and businesses so that they can really understand the benefits that are available to them. >> So customers obviously attending. Will they present as well? >> We do have customers presenting. That's one of the main reasons our customers come actually is to hear from their peers and how they're solving problems. It's really a fantastic event. >> Well the Big Easy in May is a good place to be. It's a fun town. >> It's not a bad place to be and it actually starts the day after Jazz Fest so we can't complain about that either. >> Alright Carter Lloyds thanks so much for coming to theCUBE. >> Thank you very much for your time. >> And giving us the overview of QAD. Alright and thank you for watching everybody. This is Dave Vellante. We'll see ya next time. You're watching theCUBE. (light techno music)

>> Narrator: Live from Las Vegas It's The Cube Covering VMworld 2017. Brought to you by VMware and its ecosystem partners. >> Hey, welcome back to The Cube. Continuing coverage of VMworld 2017. Day two of the event, lots of exciting conversations that we've had so far. I'm Lisa Martin with my cohost Dave Vellante-- >> Hey. >> Hey! We're excited to be cohosting together, right Dave? >> That's right. >> Of course! And we have Cube alumni Calline Sanchez, Vice President of IBM Enterprise Storage Systems. Welcome back to The Cube. >> Thank you for inviting me. It's always great to have discussions with you. >> Yeah. So, talk to us, we're at VMworld day two, what's new with IBM and VMware? >> So what was great about working, or walking through the expo floor, is hearing conversations about data backup, like as they say with the IBM Backup Bar-- >> It's hot! >> They have, and also this idea that we work to optimize data within the entire stack. So yeah, you have your base infrastructure, but you layer on top of that things that support the digital experience. >> Why is backup so hot? Why now? >> Well, so my favorite reason is because of tape. Tape allows you to cheaply store data, so it's like about a cent per gig. That's a big deal. And I don't know, I suspect you like really good deals on shoes, bags, et cetera, I know I do. So that's what's great about tape, is it's cost effective as well as it's a high performer, high capacity element that we intend to deliver. >> OK, so I buy that. I've always been a fan of the economic argument for tape. Let me ask you another question, and see if you see this, Calline. It seems like when virtualization came into vogue, people had to re-architect their backup for a variety of reasons, less physical resources, et cetera. Is cloud affecting the way in which people think about backup and if so, how? >> So we support cloud service providers. As they say with tape, if you're cost effective and you can meet certain performance and capacity requirements well, you usually are part of the stack associated with the delivery into the cloud service provider data centers worldwide. So all I'm saying is that it's relevant, it's important that we continue to innovate, associate with what's required with regards to tape. >> Well, while we're on the subject of tape, let's carry that through. The conventional wisdom from the spinning disk and now the flash guys, oh, tape, tape is dead, I've been hearing tape is dead since I've been in this business, which is now quite a long time. What's kept tape alive, it's obviously the economics, but it's got to be more than that. It's got to be easier to use, it's got to be functional, what kind of innovations have occurred around tape to make it continue to be viable? >> So I would say our focus on enhancing spectrum archive. It used to be called a linear tape file system, and really it's this idea of a USB for file access or data access. So we keep working on focusing and delivering data access patterns that are actually efficient for our clients, simple to use, and we enable automation, which has been something that's great based on Ed Walsh's focus or strategy for our storage portfolio, and I know you've just heard that we had two awesome growth quarters within IBM Storage and our goal is to continue that through modernizing our entire portfolio. >> Three would make a trend, I told Ed. And he's like, "Come on, gimme a break." No, but it is awesome to see IBM's storage business growing again and hopefully that can continue. >> So speaking of innovation, and you talked about tape and people think tape's been dead for a long time, but you're talking about it as a core component of cloud strategies for businesses. How has IBM evolved your messaging, your positioning, as technologies have evolved and customers are now going, "We have to keep a ton of data," Michael Dowd talked about the importance of data today being at the CEO agenda level. Talk to us about how some of the innovations IBM is doing to help customers understand the relevance of different types of storage according to data growth but also going from data centers to centers of data. >> Great question. So, one thing that's really interesting, being that I'm from the lab, we have delivered, or our intent is to accelerate the entire roadmap as it relates to tape, so that we stay ahead of the delivery path and meet the requirements based on clients worldwide whether they're scientific clients based on some of the advanced data that is required, as well as cloud service providers. They say, "Hey, we're expecting you to innovate "and deliver as quickly as possible." And sometimes it's like the requests are quite interesting and fascinating based on just even the digital or the analytics of measuring like, temperatures in data centers. And what we're doing with Rocky interface based on ethernet interfaces. The clients are pushing us with regards to improving overall and delivering to meet the cloud economics that they require, as well as the attributes of. >> What's changed at IBM, if anything, I'm inferring something's changed because I've always said, one of the criticisms I've had of IBM storage is the pace with which it was able to get products out of engineering and to the marketplace, and that pace has accelerated quite dramatically. I don't know if it's new leadership, you mentioned Ed Walsh before, or there's been a change in the philosophy, am I dreaming or have I noticed-- >> No, you're completely accurate. So when we're talking about development or delivery, we're so much more agile that we really work to reduce the complexity of delivery, and we're delivering major functions or complex things to more simple, and getting client input sooner, and partner input sooner than later. Where as previously, it was like we worked for over a year sometimes on technologies or advancements and it would take a while for those clients to then adopt. Now, we have to deliver something a heck of a lot faster than we had done before. >> And are customers part of that innovation process? It sounds like-- >> They are. >> That's been a big change-- >> So we're big. Historically, we always talked about betas. Now we're talking about alphas, and some of these original demos in order to grow our understanding of the use case in the very early phases. And usually we did not have this type of discussions prior, at least in my experience, but now it's like it's a requirement. So, with new leadership is a component, as we discussed, but also this idea of really focused agility. Delivering to the marketplace faster, listening to our clients, so that means improvement based on how we go to market as well. Because it's important that we deliver value to our clients or we're not relevant. >> We were talking earlier to another guest, a competitive company, and we were talking about the anatomy of a transaction, and we were going through it and at one point he said that it hits a mainframe in an associated database and he said, "And that's OK." So we know the mainframe, alive and well, we've done a bunch of Cube activities, we were there at the Z13 launch at the Jazz at Lincoln, which was a great event. >> That's awesome. >> And so, give us the update on what's happening there. You guys have made some new announcements there, new DS8000 class systems, new Z systems, what's going on at that transaction world? >> So I would say two, or actually three major things that are part of that announcement to collaborate with Z is improvement based on modernizing our service support structure, which is like remote code load, things like that, so that we can have experts remotely, via a control center, help clients load latest levels of code as well as new feature function. The second element that I would say is, lead with flash. So we've optimized flash storage that complements specifically some of the ZOS, the System Z workload, which is significant for us to deliver to the marketplace as well. And then third, is this idea of Z hyperlink. Z hyperlink is this idea of, like, synch iO. It's a different structure that, yes, it'll take a while for adoption, we have a number of our alphas that are working in partnership with us to solution. Well, we're going to be doing replication, and also some of the iO streams differently than we had in the past. >> Question for you on the alphas. >> Yeah. >> From a business perspective, since so much has changed, lots of announcements just in the last 36 hours, as technology changes rapidly and stop-run tech companies are, like you said, poised to deliver agility faster, when you're talking with alphas, as you said, kind of in the nascent stages of a use case being developed, what are some of the key business metrics that your alpha clients are articulating to you that, when we get to x stage of this alpha, we need to be able to demonstrate x, y, z back to the business, thinking of cost reductions, resource allocations, faster time to market, what are some of those business KPI's that you're hearing from your clients? >> Yeah. So I would say it's price performance as well as capacity based on the amount of data growth. So those three things are fundamental components that come up quite often. Now, it usually is made very clear to us that things like security, like quality, that's job one. That's table stakes. Like, if we want to have fine dining, we'll just assume there's going to be this nice handkerchief as well as tablecloth. Well, security and quality are just fundamental. So they want to think about those things less. Because they're just naturally being delivered via whatever technology we're putting out or delivering from the lab. >> Alright, let's bring it back to VMworld. We're here. VMware, VMworld, what do you guys got going here, what's the relevance of all the activity that you have going to this event? >> So what's great about the event is we have the data backup bar that's associated with what we're doing with Spectrum Protect Plus. What I personally like and love about the Spectrum Protect Plus is simplicity. It's delivering this idea of usability. Which is important because we received feedback from our clients in very early stages on how we deliver. So we have a data backup bar to discuss some of that technology and actually run through specific downloads which I think is great, cause you get feedback out on the floor immediately to ensure that we're improving. The other aspect of our booths is discussing things, some of the fundamental infrastructure just like we talked previously on tape, as well as DS8000, cause DS8000 is not only a mainframe attach, but it's attachment agnostic. So we support aspects of distributive storage as well. For instance, we have some of the VMware enhancements that will allow us to more efficiently capture or reclaim data in thin provision volumes, and VMware has been fundamental in partnering with us to deliver. >> So continue to go to market approaches with VMware on the backup side, also on the cloud foundation side for IBM? >> Yes. >> Excellent. Thank you so much for stopping by The Cube again and sharing your thoughts and what's going on with the industry and how IBM is moving forward with respect to innovation and working with clients together. >> Right. Wonderful. Thank you. >> For my cohost Dave Vellante, I'm Lisa Martin. >> Stick around, you're watching day two of The Cube's coverage of VMworld 2017, we'll be right back. [Upbeat Synth Music]