(upbeat music) >> Welcome to the special CUBE presentation of the AWS Global Public Sector Partner Awards Program. I'm here with the leader of the partner program, Sandy Carter, Vice President, AWS, Amazon Web Services @Sandy_Carter on Twitter, prolific on social and great leader. Sandy, great to see you again. And congratulations on this great program we're having here. In fact, thanks for coming out for this keynote. Well, thank you, John, for having me. You guys always talk about the coolest thing. So we had to be part of it. >> Well, one of the things that I've been really loving about this success of public sector we talked to us before is that as we start coming out of the pandemic, is becoming very clear that the cloud has helped a lot of people and your team has done amazing work, just want to give you props for that and say, congratulations, and what a great time to talk about the winners. Because everyone's been working really hard in public sector, because of the pandemic. The internet didn't break. And everyone stepped up with cloud scale and solve some problems. So take us through the award winners and talk about them. Give us an overview of what it is. The criteria and all the specifics. >> Yeah, you got it. So we've been doing this annually, and it's for our public sector partners overall, to really recognize the very best of the best. Now, we love all of our partners, John, as you know, but every year we'd like to really hone in on a couple who really leverage their skills and their ability to deliver a great customer solution. They demonstrate those Amazon leadership principles like working backwards from the customer, having a bias for action, they've engaged with AWS and very unique ways. And as well, they've contributed to our customer success, which is so very important to us and to our customers as well. >> That's awesome. Hey, can we put up a slide, I know we have slide on the winners, I want to look at them, with the tiles here. So here's a list of some of the winners. I see a nice little stars on there. Look at the gold star. I knows IronNet, CrowdStrike. That's General Keith Alexander's company, I mean, super relevant. Presidio, we've interviewed them before many times, got Palantir in there. And is there another one, I want to take a look at some of the other names here. >> In overall we had 21 categories. You know, we have over 1900 public sector partners today. So you'll notice that the awards we did, a big focus on mission. So things like government, education, health care, we spotlighted some of the brand new technologies like Containers, Artificial Intelligence, Amazon Connect. And we also this year added in awards for innovative use of our programs, like think big for small business and PTP as well. >> Yeah, well, great roundup, they're looking forward to hearing more about those companies. I have to ask you, because this always comes up, we're seeing more and more ecosystem discussions when we talk about the future of cloud. And obviously, we're going to, you know, be at Mobile World Congress, theCUBE, back in physical form, again, (indistinct) will continue to go on. The notion of ecosystem is becoming a key competitive advantage for companies and missions. So I have to ask you, why are partners so important to your public sector team? Talk about the importance of partners in context to your mission? >> Yeah, you know, our partners are critical. We drive most of our business and public sector through partners. They have great relationships, they've got great skills, and they have, you know, that really unique ability to meet the customer needs. If I just highlighted a couple of things, even using some of our partners who won awards, the first is, you know, migrations are so critical. Andy talked at Reinvent about still 96% of applications still sitting on premises. So anybody who can help us with the velocity of migrations is really critical. And I don't know if you knew John, but 80% of our migrations are led by partners. So for example, we gave awards to Collibra and Databricks as best lead migration for data as well as Datacom for best data lead migration as well. And that's because they increase the velocity of migrations, which increases customer satisfaction. They also bring great subject matter expertise, in particular around that mission that you're talking about. So for instance, GDIT won best Mission Solution For Federal, and they had just an amazing solution that was a secure virtual desktop that reduced a federal agencies deployment process, from months to days. And then finally, you know, our partners drive new opportunities and innovate on behalf of our customers. So we did award this year for P to P, Partnering to Partner which is a really big element of ecosystems, but it was won by four points and in quizon, and they were able to work together to implement a data, implement a data lake and an AI, ML solution, and then you just did the startup showcase, we have a best startup delivering innovation too, and that was EduTech (indistinct) Central America. And they won for implementing an amazing student registration and early warning system to alert and risks that may impact a student's educational achievement. So those are just some of the reasons why partners are important. I could go on and on. As you know, I'm so passionate about my partners, >> I know you're going to talk for an hour, we have to cut you off a little there. (indistinct) love your partners so much. You have to focus on this mission thing. It was a strong mission focus in the awards this year. Why are customers requiring much more of a mission focused? Is it because, is it a part of the criteria? I mean, we're seeing a mission being big. Why is that the case? >> Well, you know, IDC, said that IT spend for a mission or something with a purpose or line of business was five times greater than IT. We also recently did our CTO study where we surveyed thousands of CTOs. And the biggest and most changing elements today is really not around the technology. But it's around the industry, healthcare, space that we talked about earlier, or government. So those are really important. So for instance, New Reburial, they won Best Emission for Healthcare. And they did that because of their new smart diagnostic system. And then we had a partner when PA consulting for Best Amazon Connect solution around a mission for providing support for those most at risk, the elderly population, those who already had pre existing conditions, and really making sure they were doing what they called risk shielding during COVID. Really exciting and big, strong focus on mission. >> Yeah, and it's also, you know, we've been covering a lot on this, people want to work for a company that has purpose, and that has missions. I think that's going to be part of the table stakes going forward. I got to ask you on the secrets of success when this came up, I love asking this question, because, you know, we're starting to see the playbooks of what I call post COVID and cloud scale 2.0, whatever you want to call it, as you're starting to see this new modern era of success formulas, obviously, large scale value creation mission. These are points we're hearing and keep conversations across the board. What do you see as the secret of success for these parties? I mean, obviously, it's indirect for Amazon, I get that, but they're also have their customers, they're your customers, customers. That's been around for a while. But there's a new model emerging. What are the secrets from your standpoint of success? you know, it's so interesting, John, that you asked me this, because this is the number one question that I get from partners too. I would say the first secret is being able to work backwards from your customer, not just technology. So take one of our award winners Cognizant. They won for their digital tolling solution. And they work backwards from the customer and how to modernize that, or Pariveda, who is one of our best energy solution winners. And again, they looked at some of these major capital projects that oil companies were doing, working backwards from what the customer needed. I think that's number one, working backwards from the customer. Two, is having that mission expertise. So given that you have to have technology, but you also got to have that expertise in the area. We see that as a big secret of our public sector partners. So education cloud, (indistinct) one for education, effectual one for government and not for profit, Accenture won, really leveraging and showcasing their global expansion around public safety and disaster response. Very important as well. And then I would say the last secret of success is building repeatable solutions using those strong skills. So Deloitte, they have a great solution for migration, including mainframes. And then you mentioned early on, CloudStrike and IronNet, just think about the skill sets that they have there for repeatable solutions around security. So I think it's really around working backwards from the customer, having that mission expertise, and then building a repeatable solution, leveraging your skill sets. >> That's a great formula for success. I got you mentioned IronNet, and cybersecurity. One of things that's coming up is, in addition to having those best practices, there's also like real problems to solve, like, ransomware is now becoming a government and commercial problem, right. So (indistinct) seeing that happen a lot in DC, that's a front burner. That's a societal impact issue. That's like a cybersecurity kind of national security defense issue, but also, it's a technical one. And also public sector, through my interviews, I can tell you the past year and a half, there's been a lot of creativity of new solutions, new problems or new opportunities that are not yet identified as problems and I'd love to get your thoughts on my concern is with Jeff Bar yesterday from AWS, who's been blogging all the the news and he is a leader in the community. He was saying that he sees like 5G in the edge as new opportunities where it's creative. It's like he compared to the going to the home improvement store where he just goes to buy one thing. He does other things. And so there's a builder culture. And I think this is something that's coming out of your group more, because the pandemic forced these problems, and they forced new opportunities to be creative, and to build. What's your thoughts? >> Yeah, so I see that too. So if you think about builders, you know, we had a partner, Executive Council yesterday, we had 900, executives sign up from all of our partners. And we asked some survey questions like, what are you building with today? And the number one thing was artificial intelligence and machine learning. And I think that's such a new builders tool today, John, and, you know, one of our partners who won an award for the most innovative AI&ML was Kablamo And what they did was they use AI&ML to do a risk assessment on bushfires or wildfires in Australia. But I think it goes beyond that. I think it's building for that need. And this goes back to, we always talk about #techforgood. Presidio, I love this award that they won for best nonprofit, the Cherokee Nation, which is one of our, you know, Native American heritage, they were worried about their language going out, like completely out like no one being able to speak yet. And so they came to Presidio, and they asked how could we have a virtual classroom platform for the Cherokee Nation? And they created this game that's available on your phone, so innovative, so much of a builder's culture to capture that young generation, so they don't you lose their language. So I do agree. I mean, we're seeing builders everywhere, we're seeing them use artificial intelligence, Container, security. And we're even starting with quantum, so it is pretty powerful of what you can do as a public sector partner. >> I think the partner equation is just so wide open, because it's always been based on value, adding value, right? So adding value is just what they do. And by the way, you make money doing it if you do a good job of adding value. And, again, I just love riffing on this, because Dave and I talked about this on theCUBE all the time, and it comes up all the time in cloud conversations. The lock in isn't proprietary technology anymore, its value, and scale. So you starting to see builders thrive in that environment. So really good points. Great best practice. And I think I'm very bullish on the partner ecosystems in general, and people do it right, flat upside. I got to ask you, though, going forward, because this is the big post COVID kind of conversation. And last time we talked on theCUBE about this, you know, people want to have a growth strategy coming out of COVID. They want to be, they want to have a tail win, they want to be on the right side of history. No one wants to be in the losing end of all this. So last year in 2021 your goals were very clear, mission, migrations, modernization. What's the focus for the partners beyond 2021? What are you guys thinking to enable them, 21 is going to be a nice on ramp to this post COVID growth strategy? What's the focus beyond 2021 for you and your partners? >> Yeah, it's really interesting, we're going to actually continue to focus on those three M's mission, migration and modernization. But we'll bring in different elements of it. So for example, on mission, we see a couple of new areas that are really rising to the top, Smart Cities now that everybody's going back to work and (indistinct) down, operations and maintenance and global defense and using gaming and simulation. I mean, think about that digital twin strategy and how you're doing that. For migration, one of the big ones we see emerging today is data-lead migration. You know, we have been focused on applications and mainframes, but data has gravity. And so we are seeing so many partners and our customers demanding to get their data from on premises to the cloud so that now they can make real time business decisions. And then on modernization. You know, we talked a lot about artificial intelligence and machine learning. Containers are wicked hot right now, provides you portability and performance. I was with a startup last night that just moved everything they're doing to ECS our Container strategy. And then we're also seeing, you know, crippin, quantum blockchain, no code, low code. So the same big focus, mission migration, modernization, but the underpinnings are going to shift a little bit beyond 2021. >> That's great stuff. And you know, you have first of all people don't might not know that your group partners and Amazon Web Services public sector, has a big surface area. You talking about government, health care, space. So I have to ask you, you guys announced in March the space accelerator and you recently announced that you selected 10 companies to participate in the accelerated program. So, I mean, this is this is a space centric, you know, targeting, you know, low earth orbiting satellites to exploring the surface of the Moon and Mars, which people love. And because the space is cool, let's say the tech and space, they kind of go together, right? So take us through, what's this all about? How's that going? What's the selection, give us a quick update, while you're here on this space accelerated selection, because (indistinct) will have had a big blog post that went out (indistinct). >> Yeah, I would be thrilled to do that. So I don't know if you know this. But when I was young, I wanted to be an astronaut. We just helped through (indistinct), one of our partners reach Mars. So Clint, who is a retired general and myself got together, and we decided we needed to do something to help startups accelerate in their space mission. And so we decided to announce a competition for 10 startups to get extra help both from us, as well as a partner Sarafem on space. And so we announced it, everybody expected the companies to come from the US, John, they came from 44 different countries. We had hundreds of startups enter, and we took them through this six week, classroom education. So we had our General Clint, you know, helping and teaching them in space, which he's done his whole life, we provided them with AWS credits, they had mentoring by our partner, Sarafem. And we just down selected to 10 startups, that was what Vernors blog post was. If you haven't read it, you should look at some of the amazing things that they're going to do, from, you know, farming asteroids to, you know, helping with some of the, you know, using small vehicles to connect to larger vehicles, when we all get to space. It's very exciting. Very exciting, indeed, >> You have so much good content areas and partners, exploring, it's a very wide vertical or sector that you're managing. Is there any pattern? Well, I want to get your thoughts on post COVID success again, is there any patterns that you're seeing in terms of the partner ecosystem? You know, whether its business model, or team makeup, or more mindset, or just how they're organizing that that's been successful? Is there like a, do you see a trend? Is there a certain thing, then I've got the working backwards thing, I get that. But like, is there any other observations? Because I think people really want to know, am I doing it right? Am I being a good manager, when you know, people are going to be working remotely more? We're seeing more of that. And there's going to be now virtual events, hybrid events, physical events, the world's coming back to normal, but it's never going to be the same. Do you see any patterns? >> Yeah, you know, we're seeing a lot of small partners that are making an entrance and solving some really difficult problems. And because they're so focused on a niche, it's really having an impact. So I really believe that that's going to be one of the things that we see, I focus on individual creators and companies who are really tightly aligned and not trying to do everything, if you will. I think that's one of the big trends. I think the second we talked about it a little bit, John, I think you're going to see a lot of focus on mission. Because of that purpose. You know, we've talked about #techforgood, with everything going on in the world. As people have been working from home, they've been reevaluating who they are, and what do they stand for, and people want to work for a company that cares about people. I just posted my human footer on LinkedIn. And I got my first over a million hits on LinkedIn, just by posting this human footer, saying, you know what, reply to me at a time that's convenient for you, not necessarily for me. So I think we're going to see a lot of this purpose driven mission, that's going to come out as well. >> Yeah, and I also noticed that, and I was on LinkedIn, I got a similar reaction when I started trying to create more of a community model, not so much have people attend our events, and we need butts in the seats. It was much more personal, like we wanted you to join us, not attend and be like a number. You know, people want to be part of something. This seem to be the new mission. >> Yeah, I completely agree with that. I think that, you know, people do want to be part of something and they want, they want to be part of the meaning of something too, right. Not just be part of something overall, but to have an impact themselves, personally and individually, not just as a company. And I think, you know, one of the other trends that we saw coming up too, was the focus on technology. And I think low code, no code is giving a lot of people entry into doing things I never thought they could do. So I do think that technology, artificial intelligence Containers, low code, no code blockchain, those are going to enable us to even do greater mission-based solutions. >> Low code, no code reduces the friction to create more value, again, back to the value proposition. Adding value is the key to success, your partners are doing it. And of course, being part of something great, like the Global Public Sector Partner Awards list is a good one. And that's what we're talking about here. Sandy, great to see you. Thank you for coming on and sharing your insights and an update and talking more about the 2021, Global Public Sector partner Awards. Thanks for coming on. >> Thank you, John, always a pleasure. >> Okay, the Global Leaders here presented on theCUBE, again, award winners doing great work in mission, modernization, again, adding value. That's what it's all about. That's the new competitive advantage. This is theCUBE. I'm John Furrier, your host, thanks for watching. (upbeat music)

>> From the SiliconANGLE Media office in Boston, Massachusetts, it's theCUBE. Now here's your host, Dave Vellante. >> Hello everyone and welcome to this week's episode of theCUBE insights, powered by ETR. In this Breaking Analysis, we're going deep into AWS. In a couple of weeks, theCUBE is going to be at the eighth AWS Reinvent, which will be our seventh year of having theCUBE at that show. You know, reinvent has really become the Super Bowl for enterprise tech innovation. And, ahead of the event, what I want to do is talk about the revolution of cloud, and the impact that it's having on the industry. And of course, I want to dig in to some of the data using the ETR data set. Before I do that, let me first say that the cloud 2.0, which is a term that we've been using, is becoming a reality. This is something that John Furrier and I talk about a lot here at theCUBE and at SiliconANGLE. The cloud is not about an incremental transition, it's really about transformation. We're talking here about the end to end modernization of the enterprise. The game is changing, and the engine of innovation is really being driven by new architectures, and these architectures have built around a few items. Data, machine intelligence, and of course cloud, for scale. We feel like what we are witnessing is the build out of this massively scalable distributed system. And this system is transforming businesses, and really enabling entire new companies and business models to emerge. The cloud is the under pitting of this digital revolution, and virtually every industry is going to be disrupted, no industry is safe. All right, let's get right to it. So, the key questions that I want to explore in this session, let's start with the spending patterns. We're going to look at the ETR survey data, and what services are attracting the most action inside cloud, and which vendors are winning? I then want to look at the market share data from a couple of angles. I'll look at ETR data, I'll talk about some other market data. Then we're going to drill into some of the services that are critical to innovation, and I specifically want to look at databases in particular analytic data stores. And then I want to look at the data and analytic services at AI, machine intelligence, and then I want to look at the data around containers and functions, like Lambda, which are very hot right now. Then, we're going to share some data on how the cloud is impacting the so called, "old guard." This is a pejorative term that Andy Jassy coined to refer to the legacy enterprise tech providers. Then I want to make some comments about the AWS ecosystem, it's getting a lot of chatter lately. And then I want to share some thoughts on what you can expect this year at Reinvent, and then I'll wrap. So the first data point that I want to show you here really draws on ETR's latest survey of 1,336 respondents. So what this chart does is it cuts the data, and it's showing just the cloud sector ranked by net score. Now remember, net score is a measure of spending momentum. Okay? So you can see where the action is. So at the top, you see Azure Functions and AWS Lambda popping right up. Look at their net scores, they've got a net score of 74% and 71% respectively. You can see Azure overall, this is the overall Azure business that's right up there as well, and of course AWS overall, so people responded AWS is right there. Very, very high, but it's dropped a little bit below Azure. We'll talk about that more in a moment. Then you can see VMware Cloud on AWS, it's got strong momentum, which is a real positive. You've got Google Cloud Functions, again, Functions very hot right now. Open Shift from Red Hat, GCP is up there, VMware Cloud. Then you've got Alibaba. Alibaba's only got 18 mentions, whereas the others have much higher shared in, so I'm not going to really put too much weight on that. And you can see the other folks as well on that chart. But also you can you can point out the functions. The Azure functions, and services like Lander, Lambda, are gaining really a lot of momentum in the marketplace, and I think point to a new mode of compute. What I want to do now is I want to isolate in this chart, the big 3 in cloud, and put them into context with a legacy player, you know, namely IBM. I'm not trying to pick on the legacy guys, but I think it's good for context. So as you can see here, Azure and AWS, they've been neck and neck battling it out in the last 10 surveys or so. And you can see even Google, somewhat behind, but it's still got pretty strong spending momentum. Now, these figures overall are trending down relative to the expectations earlier in the year. This is something that we've talked about, that spending is reverting back to pre '18 levels, not falling off a cliff, still solid in the grand scheme of things. So you can see, you know, net scores here are well above 50% for AWS and Azure. Now take a look at IBM. The ETR data shows them in the red zone, with a net score of 16%. That is not a surprise, that they're behind the Big 3. And I've said many many times, here's the thing, IBM and Oracle, I'm not showing Oracle here, they're at least in the cloud game. Think about it, HP had the public cloud, they had to tap out. Cisco, they don't have a public cloud. Dell EMC, even VMware, they don't have a public cloud. So at least IBM and Oracle have a cloud play, where they can take their SaaS business and run it, and get vertically integrated and some operating leverage. Okay, I'm going to switch gears a little bit and talk about market share. And we want to focus here on the battle between Azure and AWS. We all know Microsoft is growing faster, but AWS is much larger. And this is something that AWS CEO Andy Jassy, he takes a lot of time to explain to the analyst, and to the crowd at Reinvent. Let's take a look at what Jassy said last year at Reinvent on this topic, and then we'll come back. >> So if you look at the provider who most people think is the second place provider in this space, in their last financials they grew 76% year over year. And you can look at that and say, "Oh, 76% is more than 46%." But if you look at it in reality, that 76% represents about a billion dollars of growth year over year. If you look at the 46% growth of AWS on that much larger base, that represents $2.1 billion of growth year over year. So more than double that. So AWS not only has a significant market segment leadership position in share, but also on an absolute revenue basis is growing meaningfully faster than anybody else. >> Okay so, think about what Jassy said. He was using Q3 data and he said that AWS had a $27 billion run rate business. And if you look at those charts that I showed, or he showed, it looked like the yellow bar, which was Microsoft, even though they didn't say, you know, "the company that shall not be named." It was about 1/3 the size of AWS, so where would that put Microsoft? Somewhere around 9 billion last year, on kind of an apples to apples run rate basis, using those extrapolated market data that Jassy showed. By the way, ironically, this is about what AWS did last quarter which you can see here on this chart that I'm showing you. You might remember, I showed you this chart in a previous episode of Breaking Analysis. And what it shows is AWS' quarterly revenue on the blue bars, and the growth rate on the right hand axis, that's the red line. And you can see Jassy talked about 46% growth.. And you can see that in Q3 last year, and then look how its moderated. It's 35% in Q3 in 2019, the last quarter that they announced. So Jassy is right. AWS is growing slower than Microsoft last year, which was growing in the mid-70's. But Microsoft was 59% last quarter so that trend is continued. If, you know, that's if you believe Microsoft numbers, which are really not clean. It's hard to say sometimes with all the SaaS in there, and Office 365, LinkedIn, I don't know what else is in there but we try to parse that out. Regardless, Jassy's point that size matters is still correct. But, Microsoft is closing the gap. I talked to the Wikibon team recently, and they think that AWS is going to come in at $35 billion dollars in revenue this year. And they have Microsoft's IS business at around $15 billion. So that's 43% of AWS's business versus 33% at this time last year. So you can see that Microsoft is closing that gap. AWS is still adding $8 billion a year in growth, but Microsoft is definitely catching up. So what is the spending data show? Let's take a look here at the ETR data, and see what they say about market share. Now, remember, in the ETR parlance market share is a measure of how pervasive a vendor is within the data set. And as you can see here, it maps pretty well to the market estimates that I was just talking about. Although it actually appears that in these lines that AWS is widening that lead. But you can see in the net scores, by the way, this is net scores across all sectors, not just cloud computing, so it pulls in the other segments. But none the less, you can see Azure has a somewhat higher net score which indicates stronger spending intentions. So that pretty much fits what we see in the market for the most part. Now it's not all rosy for Microsoft. You know, they are super strong in the ETR data set across the board, but specifically in cloud. So that's important, I don't want to lose sight of that, but I want to share something that Gartner said recently, and it's a 2019 magic quadrant on cloud computing. Microsoft Azure's reliability issues continue to be a challenge for customers, largely as a result of Azure's growing pains. Since September of 2018, Azure has had multiple service-impacting incidents, including significant outages involving Azure active directory. The nature of many of these outages is such that customers had no controls in order to mitigate the downtime. So, caution is what Gartner said. So despite the great numbers and the fact that Azure is gaining, it's having growing pains. For years I've talked about the economies of scale for AWS due to its automation. I talked about the companies marginal economics at volume, and you can see it in the firm's operating margins. The question to ask, is Microsoft running into dis-economies at scale, due to it's large install base, and does it have technical debt? Because it's jamming large software estate into Azure, and having to preserve the past while trying to innovate for the future. I don't know, and it's hard to tell because Microsoft is so big and so profitable, but it's something that CIO's definitely should keep an eye on. Now, I want to look at some key sectors here and evaluate how AWS is doing in some of the areas where we see really innovation. And I want to start in the all important data base area. Now I'm going to focus here on analytic databases, and data warehouses, and I think there's some interesting trends going on here. So this is a cut of the ETR data warehouse segment. Now I've talked about Snowflake in the previous episodes of Breaking Analysis, and you can see why. Snowflake has a net score of 71%. They're one of the highest and most interesting newer companies in this space and in the ETR data set. You can see AWS doing very well, and I want to make some comments on both Snowflake and AWS Redshift. But before I do that, look at Oracle and Teradata on this chart. What you see here is the classic innovator's dilemma. It's at play where AWS and Snowflake, you can see them, they're solidly in the green, and you got the two legacy players affirmly in the red. So I include them as reference points. But I want to come back to Redshift and Snowflake, because I feel like there's something new going on in cloud. Where cloud 1.0 was all about IS and compute and storage and throw in some data base, there's this new trend emerging that's really driving new workloads. And this data that now sits in the cloud, it's maybe stored in S3, and customers are using data stores like Redshift and Snowflake to get more insights out of that data. They're bringing tools like data bricks into the equation, and really driving a whole new set of work loads that are not just about provisioning infrastructure, but really extracting insights much more quickly from the data and applying it to your business. And for AWS, it's driving tons of compute sales and customers are getting more value out of their data. Now, here's the interesting thing. Redshift and Snowflake are both best in class modern data warehouses, they seem to be coexisting, they're both thriving, you know, why is that? They're both MPP columnar stores, so they've got many similar attributes, but I think what it comes down to really is what I call horses for courses. I don't have time to dig into it today, but when you peel back the onion, what you find is different approaches to things like architecture, security, scaling, different philosophies, pricing, different feature sets. So it really comes down to the best strategic fit, and for now it looks like to me, there's room for both platforms. They're both doing very well from a spending momentum perspective. We'll see how that plays out over time. Let's now take a look at the analytic sector. Now here, we're talking about things like Amazon's quarry services, elastic map reduce, search kinesis, quick site glue, streaming, those kinds of tooling. You can see in this chart that AWS is very strong and it leads Microsoft by a small margin in the ETR data set. Now for comparison, and again, I'm not trying to pick on the legacy players, but I think it's important to provide context, and when it comes to spending momentum, the data doesn't lie. You can see here, IBM they've had a sizeable and very impressive set of capabilities in the analytic space, but you can see where the buyers are placing their bets. Now, what I'm showing you now in this next chart is a similar view, but this time I'm showing ETR market share for both AI and the machine learning segment. So for context I've added IBM Watson. Remember, market share for ETR is a measure of pervasiveness, not only to AWS and Microsoft, though they're battling it out for the top spot, but they got stronger spending momentum as you can see by the net scores. Look at Watson, I mean, it's respectable in the ETR data, but it just doesn't have the scale of the top two players. Okay, finally, I want to look at the container space. It's hot and I want to focus on Lambda from AWS. So what we're showing here is the net scores for Lambda, and Amazon's elastic container service. And you can see Lambda, very very strong. ECS is tapering a little bit, it's showing less momentum overtime, but still well over 50% net score. But look at Pivotal Cloud Foundry, they've showed a steady down term over time. This underscores the work that VMware and Pat Gelsinger have to do with one of their newest acquisitions. As in aside, this is an opportunity for VMware, which in my opinion, I've said they really need to get their developer act together, really to drive new innovation. And by the way, Pivotal just had some layoffs, but my understanding that it was not in engineering but rather folks that VMware saw as redundant, rolls that they already had in place. The bottom line is, Pivotal has been steadily losing momentum in the ETR surveys. But look, a 27 net score is not a disaster by any means. I said on my last Breaking Analysis, that if I were Michael Dell, I'd dedicate a thousand engineers to open sources, using Pivotal to really appeal to developers, and make his hardware run better on the open source tooling and apps that these thousand build. And make his infrastructure programmable. This is how the edge is going to be won. It's not going to be by throwing boxes over the top of the fence, but really a bottoms up by devs. I digress. The last data point that I want to share here is really designed to address the question, how is the cloud impacting what Jassy calls the "old guard?" So this view shows market share, which again is defined by ETR, remember they do the math to measure the pervasiveness of a vendor in their data set. And they call that market share. And I've cut that data by just the cloud spenders. So those buyers spending heavily, and I've isolated on AWS, Azure, and Google Cloud. And how their spending on traditional vendors has changed overtime. And I'm picking out Cisco, HPE, Dell EMC, and Oracle. And the story you can see is clear. They came out of the downturn in 2010, and the big guys who were holding their breath, and they came up for air and they saw lots of pet up demands, so they did pretty well. But the cloud has continued to slowly eat away at their share, and their spending momentum as seen by the net scores in this table, has been affected. But look at Cisco. They actually have quite a strong net score, its 37%. So to me, by the way, this makes sense. And I think Cisco is in a good position to connect clouds and secure data moving across clouds. But the cloud, it's long steady march continues. And we are entering a new era that I think is only going to see greater share gains for the cloud in my view. By the way, I don't want to just, back to my rant about the edge in programmable infrastructure, and how developers are going to win the edge. Cisco with Devnet is actually in a pretty good position here, and done a good job. And I think they're one of the few, if not the only legacy player that is going to figure this out. Now before I close, I want to make a few comments on the ecosystem, and give a glimpse as to what to expect at Reinvent in 2019. All right first the ecosystem. There's a lot of sort of chatter, and griping, and concerns around AWS cannibalizing the ecosystem partners. And I think frankly, that concern has merit. You know when AWS has this insane customer focus, you can pretty much take that to the bank. If a customer wants something and expresses that to AWS, and they see a space to fill where it can leverage that flywheel that they always talk about at ad services, AWS is not going to sub optimize it's portfolio to protect it's partner. It's going to go hard after it. So as a partner of AWS, it's up to you to keep innovating and moving fast. And that's hard, because AWS is probably moving faster than you are. But you know, you can still specialize as a partner, and thrive as a best debride player. I mean, look at the Snowflake example. There's plenty of opportunities out there in security, backup, governess, machine intelligence, work flow, edge, and of course, there's the infamous multi cloud opportunity. And I saw infamous because AWS doesn't use that term, you're not going to see it on the floor of Reinvent this year because it's frankly not allowed. AWS is very controlling over the messaging that it puts out to it's customers, and that includes the rules of the ecosystem if you want to go to their show. But you'll hear plenty of side conversations about multi cloud, and we're certainly going to be talking about it on theCUBE. Is multi cloud a symptom of multi vendor? You know what I think on this topic. I think it's more than that than it is a strategy. But CIO's are now being asked to clean up the multi cloud mess, so it does have merit. But it creates complexity, and that means opportunity for partners. So multi cloud is white space for the ecosystem, as is hybrid, and on prim connectivity, so partners are hedging their bet, they're supporting multiple clouds, and they're partnering with Azure and Google, and that makes sense to do so. But here's the thing. Cloud 2.0 is getting more complex. AI, new workloads, edge, new use cases, machine learning, more API's, more services, more complicated pricing. These are confusing matters for customers, and partners can help simplify this. As well, thinking about competition with Microsoft, Microsoft is kind of an easy choice. If you're already a Microsoft software customer, (murmurs) So partners need AWS, and AWS need partners to help them deliver solutions to go to market, and keep it simple. John Furrier says this a lot, that winning in the enterprise requires salesmanship, and AWS partners, they're a powerful channel, so AWS has to lean on this channel to really create solutions for customers and simplify. Okay, let's talk about what to expect at Reinvent 2019, and I want to start with storage. Jeff Bar put out a blog post announcing a series of new storage offers around block store, new gateways, S3 replication, a new Windows file server capabilities, and stronger emphasis on file storage. Now, most of the world's data is stored on file, and AWS is expanding it's portfolio. It started with S3 object, back in 2006, and then EBS, block store, and now a big emphasis on file services. So I expect to hear a lot about that, and as well, we're going to hear about outpost. What progress has Amazon made with outpost? What's the status? What's the vision for outpost? How does it fit in at the edge? You know as I just said in my rant earlier, the edge is all about developers, and I like AWS' edge approach. I think AWS has the right perspective. It's very devs centric. It's bottoms up from devs, not over the top like many of the box sellers. Now at Reinvent, you're probably going to hear more about unplugging Oracle databases, certainly security is going to be a big focus, as will AI and machine learning. I also expect a lot on transformation of industries. As Microsoft continues to grow in IS, expect AWS to somehow try to change the game again. And I'm not sure AWS can win the battle head on with CIO's. Rather, I think AWS is really going to focus on this duel disruption agenda, both within the horizontal technology stack but also within industries. In other words, expect AWS to increasingly focus on enabling industry transformation in different segments, like media, health care, financial services, manufacturing, government, automobiles, telco, virtually every vertical. This dual disruption agenda, both in the tech stack and within industries, its in AWS's DNA because it's in Amazon's DNA. It's driven by Jeff Bezos at the top. Now in closing, I want to stress again, the cloud 2.0 is here, and it's getting more complex. The so called "old guard" is hanging on to it's install basis, but in many ways, it's working hard to get simpler. Now are these two domains going to collide together and create an equilibrium in the cloud native wannabes and the cloud native guys? Probably not functionally, but there are a lot of opportunities for the big whales to capitalize on this industry consolidation, and compete by simplifying their experience enough to keep customers hanging around. You know, don't forget, the enterprise business for years has relied on high touch specials, and unique requirements, and that's the wheelhouse for the legacy players, it's not AWS'. And maybe this approach is going to continue to pick away at those opportunities with repeatable and automatible solutions. So this should be really interesting to watch. Stop by theCUBE, come see us at Reinvent, we got two sets there. This is Dave Vellante, signing out from this episode of CUBE insights powered by ETR. Thanks for watching, we'll see you next time. (upbeat music)

>> Announcer: Live from Manhattan It's theCUBE! Covering AWS Summit New York City 2017. Brought to you by Amazon Web Services. >> And welcome back here to New York. We're at the Javits Center here in midtown Manhattan for AWS Summit 2017. Along with Stu Miniman, I'm John Walls. Glad to have you here on theCUBE we continue our coverage here from New York City. Well, if you're making that move to the cloud these days, you're thinking about privacy, you're thinking about security, you're thinking about compliance. Big questions, and maybe some big problems that Bill Shin can answer for you. He is the Principal Security Architect at AWS, and Bill, thanks for being with us. >> Thanks for giving me the time. >> Hey CUBE rookie, right? This is- >> This is my first time. >> Your maiden voyage. >> First time for everything. >> Glad to have you, yeah. So I just hit on some of the high points, these are big, big questions for a lot of folks I would say. Just in general, before we jump in, how do you go about walking people into the water a little bit, and getting them thinking, get their arms around these topics? >> Absolutely. It's still among the first conversations we have with customers, it's our top priority at AWS, the security, and customers are concerned about their data security, regardless of where that data is. Once they move it into the cloud it's a real opportunity to be more secure, it's an opportunity to think about how they're doing security, and adapt and be a little faster. So we have a really prescriptive methodology for helping customers understand how to do a clouded option, and improve their security at the same time. We have a framework called the Well-Architected Framework, and there's a security pillar in that framework, it's built around five key areas. Identity access management, which is really what you should be thinking about first, because authorization is everything. Everything is code, everything is in API, so it all has to be authorized properly. Then we move into detective controls and talk about visibility and control, turning on CloudTrail, getting logging set up. All the detective controls so that before you even move a workload into the cloud, you know exactly what's happening, right? And then we move into infrastructure security, which includes your network trust boundaries, zone definition, things like firewall rules, load balancers, segmentation, as well as system security. Hardening and configuration state of all the resources in their account. Then we move on to data protection as we walk customers through this adoption journey. Things like encryption, backup, recovery, access control on data. And then finally incident response. We want to make sure that they have a really good, solid plan for incident response as they begin to move more and more of their business into the cloud. So to help them wade through the waters we bring it up. The CSO is a key partner in a clouded option, organizations need to make sure security is in lockstep with engineering as they move to the cloud. So we want to help with that. We also have the Cloud Adoption Framework, and there's a security perspective in that framework. Methodology for really treating security more like engineering these days. So you have Dev Ops and you have Dev Sec Ops. Security needs to have a backlog, they need to have sprints, they need to have user stories. It's very similar to how engineering would do it. In that way their partnering together as they move workloads into the cloud. >> Amazon's releasing so many new features, it's tough for a lot of us to keep up. Andy Jassey last year said, "Every day when you wake up, there's at least three new announcements coming out." So it's a new day, there are a number of announcements in your space, maybe bring us up to speed as to what we missed if you just woke up on the West Coast. >> Sure, sure. Customers love the pace of innovation, especially security organizations, they really like the fact that when we innovate on something, it means they might not have to put as much resources on that particular security opportunity or security concern. They can focus more on their code quality, more on engineering principles, things like that. So today, we happily announced Amazon Macie, love it, it performs data classification on your S3 objects. It provides user activity monitoring for who's accessing that data. It uses a lot of our machine learning algorithms under the hood to determine what is normal access behavior for that data. It has a very differentiated classification engine. So it does things like topic modeling, regular expressions, and a variety of other things to really identify that data. People were storing trillions of objects in S3, and they really want to know what their data is, whether it's important to them. Certainly customer's data is the most important thing, so being able to classify that data, perform user analytics on it, and then be able to alert and alarm on inappropriate activities. So take a look at Macie, it's really going make a big difference for customers who want to know that their data is secure in S3. >> Actually I got a question from the community looking at Macie came out, we've got a lot of questions about JDPR coming out. >> Bill: Okay sure, yeah. >> So Macie, or the underlying tech, can that be- >> Bill: Absolutely a great tool. We think the US is the greatest place to be to perform JDPR compliance. You really got to know your data, you have to know if you're moving data by European citizens around, you really have to understand that data. I think Macie will be a big part of a lot of customer strategy on JDPR compliance. To finish your question, we've announced quite a few things today, so Macie's one of them. We announced the next iteration of Cloud HSM, so it's cheaper, more automated, deals more with the clustering that you don't have to do. Deeper integration with things like CloudTrail. Customers really wanted a bit more control and integration with the services that what the previous iteration was, so we've offered that. We announced EFS volume encryption too, so EFS, or Elastic File System encryption at rest. It natively integrates with the key management system the same way that the many of our services do when you're storing data. We announced some config rules today to help customers better understand the access policies on their S3 buckets. So yeah, good stuff. >> John: Busy day, >> Busy day. >> I mean just from a security standpoint, when you are working with a new client, do you ever uncover, or do they discover things about themselves that need to be addressed? >> Bill: Yeah. I think the number one thing, and it's true for many organizations when they move to the cloud, is they want that agility, right? And when we talk to security organizations, one of the top things we advise them on is how to move faster. As much as we're having great conversations about WAF and Shield, the Web Application Firewall, and Shield, our D-DOS solution, Inspector, which performs configuration assessments, all the security services that we've launched, we're also having pretty deep conversations with security organizations these days about CodeStar, CodePipeline, CodeDeploy, and then DevOps tool chains, because security can get that fast engineering principles down, and their just as responsive. It also puts security in the hands of engineers and developers, you know that's the kind of conversations we're having. They discover that they kind of need to get a little closer to how development does their business. You know, talking in the same vocabulary as engineering and development. That's one of the things I think customers discover. Also it's a real opportunity, right? So if you don't have to look after a data center footprints and all the patch panels and switches and routers and firewalls and load balancers and things you have on premises, it really does allow a shift in focus for security organizations to focus on code quality, focus on user behavior, focus on a lot of things that every CSO would like to spend more time on. >> Bill, one of the things a lot of companies struggle with is how they keep up with everything that's happening, all the change there, when I talk to my friends in the security industry it's one of the things that they're most excited about. Is we need to be up on the latest fixes and the patches, and when I go to public cloud you don't ask somebody "Hey what version of AWS or Azure are you running on?" You're going to take care of that behind the scenes. How do you manage the application portfolio for customers, and get them into that framework so that they can, you know we were talking about, Cameron, Jean Kim just buy into that as security just becomes part of the process, as I get more out of agile. >> Yeah, so the question is really about helping customers understand all the services, and really get them integrated deeply. A couple of things, certainly the well architected framework, like I mentioned, is helpful for that. We have solution architects, professional services consultants, a very, very rich partner ecosystem that helps customers. A lot of training for security, there's some free training online, there's classroom, instructor-led training as well, so that training piece is important. I think the solutions are better together. We have a lot of great building blocks, but when you look at something like CloudTrail Cloud Watch Events, and Lambda together, we try and talk about the solutions, not just the individual building blocks. I think that's one key component too, to help them understand how to solve a security problem. Take, for example, monitoring the provisioning of identities and roles and permissions. We really want customers to know that that CloudTrail log, when someone attaches a role to a policy, that can go all the way to a slack channel, that can go all the way to a ticket system. You really want to talk about the end-to-end integration with our customers. Really to help them keep pace with our pace of innovation. We really try and get the blog in front of them, the security blog is a great source of information for all the security announcements we make. Follow Jeff Bar's Twitter, a bunch of things to help keep pace with all of our launches and things, yeah. >> You brought up server lists, if I look at the container space, which is related of course, security has been one of those questions. Bring us up to speed as to where you are with security containers, Lambda- >> Sure, I think Lambda's isolation is very strong, in Lambda we have a really confidence in the tenant isolation model for those functions. The nice thing about server lists is, when there's no code running, you really don't have a surface area to defend. I think from a security perspective, if you were building an application today, and you go to your security team and say "I'd really like to build this little piece of code, and tie these pieces of code together, and when they're not running there's nothing there that you need to defend." Or, would I like to build this big set of operating systems and fleet management and all the things I have to do. It's kind of a, it's a pretty easy conversation right? All the primitives are there in server-less. You have strong cryptography TLSM endpoints, you've got the IM policy framework so that identity access management has really consistent language across all the services, so principles, actions, resources, and conditions is the same across every service. It's not any different for server-less, so they can leverage the knowledge they have of how to manage identities and authorization in the same way. You've got integration of CloudTrail. So all the primitives are there, so customers can focus on their code and being builders. >> Stu: So it sounds like that's part of the way to attach security for IOT then if we're using those. >> I think for IOT it's a very similar architecture too, so you have similar policies that you can apply to what a device you can write to in the cloud. We have a really strong set of authorization and authentication features within the IOT platform so that it makes it easy for developers to build things, deploy them, and maintain them in a secure state. But you can go back to the Well-Architected Framework and the CAF, the Cloud Adoption Framework, you take those five key areas, you know identity, detective controls, infrastructure security, data protection, and IR incident response. It's pretty similar across all the different services. >> It just comes back to the fundamentals. >> It does, absolutely. And for customers, you know those control objectives haven't changed right? They have those control objectives today, they'll have them in the cloud, and we just want to make it easier and faster. >> Well Bill, thanks for being with us. >> You bet, thank you very much. >> Good to have you on theCUBE, look forward to seeing you again for the second time around. >> See you then hopefully >> Bill Shin, from AWS joining us here on theCUBE. Continuing our coverage from the AWS Summit here in New York in just a bit. (techno music)