>> Narrator: Silicon Angle Media presents TheCUBE! Covering Alibaba Cloud's annual conference. Brought to you by Intel. Now, here's John Furrier.... >> Hi, I'm John Furrier of Silicon Angle Media based in the United States in Silicon Valley in Palo Alto, California. I'm also co-host of TheCUBE where we go out through the event and extract the signal from the noise. We're here in China, we are here with a business development director of America's for Alibaba Cloud International, Karen Lu. Thanks for taking the time. >> Karen: Sure, absolutely. >> So, it's exciting for us from the US to come to China to hear the (mumbles), but I'm blown away by the culture. It's not a B-to-B tech conference. It's not boring. It's exciting. Talk about the Alibaba Cloud. What's so special about Alibaba Cloud? >> Sure. Alibaba Cloud is actually the encumbered cloud provider in China, and further more we extend our reach into global market since two years ago, and our strategy for globalize our cloud services is really to bridge up the business communities from overseas to China, from US to China, from US to Asia-Pacific, and to connect the rest of the world as well. Our goal is set up the platform to enable our enterprise customers, our SMEs, small and medium customer base be able to utilize our platform to develop their applications, their vertical solutions to benefit their end users. >> Alibaba Cloud has come such a long way since 2009. So much has happened, Alibaba grew up as a company. It's not just e-commerce. It's intersecting e-commerce, entertainment and web services, which is the magical formula that consumers want. They don't want just a business solution or just do e-commerce. You guys have weaved that formula together. What's special about that formula, and why is Alibaba important to the folks in the United States? >> I think it's all about the ecosystem and what makes the people, the people's community, and business community benefit from the services we provided to the world, right? Not just the e-commerce platform that have been running for the past 18 years, but also entertaining, to the map services, location services, the data services like Ali Cloud is providing, and be able to put out those elements together, and benefit people's lives, and help to improve users' experience from globally. >> It's been impressive here in China. Now as you go outside of China in the globalization plan, what's the strategy, what's the tactics? What are you going to do? >> I think our value is to, as I mentioned earlier, bridge up the business communities, especially to enable the outside world benefit a huge market from Mainland China and rest of the world as well, so I think I think our key value is to enable the business communities and be able to help them reach out outside the world. That being said, one of our key globalization strategy is to be able to help the SME's, small and medium companies to benefit the new technologies to the level that they won't be able to get in the past. It's the old technologies. >> John: What's some of the statistics or facts, fun facts, or Alibaba stats in the US, North America, your presence there, can you share what the current situation is? >> Sure. I think things about two years ago, when we extend our reach in two your market, we now have more than two thousand customers from individual to startup, to medium enterprises, and to some very large enterprises in the world as well. People are from the communities get to know Alibaba Cloud and get to know Alibaba not only provide to the e-commerce services, the EWTP platform to the world. We're also brought the data technologies. We also provided the technologies to the world that benefit their reach to the world. >> Everyone talks about data-driven. You guys have a very specific data formula, data fueling, not just getting the data from engagement data and user data, but fueling data in for user experience. The question is as you go outside of China into the US, certainly you have a developer ecosystem, you have a business ecosystem. >> Correct. >> How do the folks benefit locally in the US, to our business, do they have have access to China? Is it the services, is it the technology? Can you share the benefits to the developers and to the businesses? >> Sure absolutely. We ran a program called the China Connect, and that's the program we help the business communities you have, from the IVs, the independent after vendors, from the sales providers and developers' opportunity of communities to be able to develop their applications and software, and bring those benefits to China market. Through this process, it's hard to navigate a brand new market, especially in China, without knowing the people, the communities, the culture, the business practices here, right? We actually provide a platform, a program to help them to get to know the market, and help them to land their business in China through this program, and help them, of course, expertise their business roles in China. >> A lot of people want to know what's inside their cloud. It's one of those things where this mysterious cloud. The security's a concern, but partnerships are critical. Talk about what's inside your cloud. Intel's a big partner. What's the Alibaba-Intel partnership like? >> It's a fantastic partnership. We have been established over the past years, and Intel is one of our strategic alliance in the marketplace. They provide us a lot from hardware to technology, in terms of helping us to establish the platform with the business communities, not only China, but globally, so we really appreciate Intel's partnership, and moving forward we are looking for more reciprocal partnership with Intel to be able to form more strategic partnership to be able to benefit the business communities, and people's communities as well. >> For the folks in the US, I'll say that this is an amazing conference. It's got a million people here. I don't even know the numbers. I'm sure you have the numbers handy, but it's a mix of developers. You have a crowded house here with developers, but you also have some business people. You have key partners. I saw some US companies here. What's the vibe at the event? What's the feeling here? You got a music festival three nights. It's not a boring tech conference. Is that by design? Share the stats, how many people are here? >> I guess this is the excitement of this, the conference, annually, we actually invite a lot of our customers from US, and the rest of the world to join us to share the excitement from China, to share the experience from Alibaba. Just like Jack said, the vision for us is to make people's lives more healthier and happier. The 2H strategy from us, right, is not just the hardworking. It's also the fun. It's also the the excitement for us to share these technologies, to share this platform, and to enable people to enjoy this technology. >> The scene I see here is interesting. I've seen at Apple, in the late 90's when Steve Jobs transformed that company, he had the vision of technology meeting liberal arts. That became their calling card. You guys have art and science come in together. It's not just scientists and developers. You have artists here because user experience is super important >> exactly. >> Is that part of the culture as science and art comes together because Jack is a charismatic leader. He's a culptive personality. Young Company. >> Karen: It is. >> Share the culture. >> It is. Just like Jack and other topic executives has been sharing with the community, we want to make sure technology is inclusive elements to everyone in the community, not just for the programmers or developers, or the very high-tech companies, right? It should benefit the entire society, and fun, of course, always as part of it to make people's life happier, and to make users' experience more satisfied. >> You had a career in international technology industry for a while. You see how it's played out in the past. We're in a different now. It's a global world. The internet has opened up a lot of good things, and sometimes not so good things. The US have the selection in fake news, but as the culture starts connecting, a new kind of normal is evolving. How does Alibaba see themselves in this new world order? >> I think we see ourselves as the enabler and platform to bring the technology, and bring the people, and bring the happiness together to benefit everyone in the world, not just the tech sectors, or just the e-commerce sectors, or just one of the single verticals. We are trying to bring the technologies, and the enablement, the platform that everybody can enjoy. That's the core value for us as the inclusive technology provider. >> For the folks in the United States that will see this video, share something that they may not know about Alibaba. Might be the first time in getting to see some of the culture and some of the commentary, what should they know about Alibaba as you guys move in and become global? They're going to see some services. Is it the services, is it the people, the culture, what should they engage with Alibaba at cloud? How should they see Alibaba Cloud? >> First of all, we are one of the top three cloud providers in the world. If you look at the latest (speaks in foreign language) released a couple of weeks ago, and that's why globalization is critical for us, and we want to be able to reach out to the overseas communities, and we want to build up the trust and the confidence with the local business communities, like the rating, where in US market for instance. For us, become the global family is critical for us, and this is our vision to bring the values to them as well. >> That's fantastic, spectacular culture, and the ecosystem is just now growing, open-source software is growing exponentially, global fabric of communities developing. It is opportunities for US companies and developers to access China. Talk a little bit more about the potential that entrepreneurs and businesses could have in this global framework. >> Sure. The beauty of cloud is actually the ecosystem. It's not just one company or one vertical. For us, for instance, we try to enable the small business, especially those startup business by offering them the free resources from our infrastructure at global level, be able to enable those young peoples, especially, to create their own ideas, to be innovative, and to utilize our resources, be able to access the technologies like the way the big companies has been invested into. This is, I think, as an example for us to commit to this global market. I think for us to be part of that family, especially in Silicon Valley is critical because of the technologies, because of innovations, and because of the mindset in Silicon Valley. That's why we set up our R&D centers, we set up our frontend back office in Silicon Valley as well be able to part of that reach in, and not only to learn the technologies, but sense the mindset in our reach in. I think that's critical for us as well as the Chinese headquarter of the company, but with a global vision. >> And where in Silicon Valley is your office? >> We're headquartered in San Mateo, California for US operations. >> And entrepreneurship is changing, and it's global. It's exciting. What's the benefit to entrepreneurship? Certainly, ventured capitalists are highly interested in the China market. They've been in here for a while. Is it coming together? >> Yes, it is indeed. Actually, not only we funding a lot of the new tech companies, we also been able to help them to find their partners to build up a extended ecosystem. In Silicon Valley, in West Coast reach ins, as well as extend from the inner US, in mid-western reach in, Chicago for instance, to New York coastal areas as well. >> I noticed on the sponsorship list and partner list in your ecosystem, a logo that is new, but it's super important in the US. It's growing like crazy. The Cloud Native Compute Foundation's here, and that's the Linux Foundation. They're partnering with you. The cloud native developer market is evolving very, very quickly. They're different than the old classic IT developers. A new generation, it's not IT anymore. It's data that's driving it, and it's open-source. How do you guys engage with that community because, clearly, they win with you. >> Yes. We're actually working with a lot of open-source partners like Docker, (mumbles), and others, be able to help them to bring the communities to bring their customers onto our infrastructures and create this platform to help the developer communities to develop their applications. It's a lot of vertical focus, the solution department tasks right now. >> Excuse me, you mentioned small, medium size enterprises and business, but the big enterprises are transforming as well. How do you see Alibaba helping them because they're going cloud native? They're going private cloud on premise. You have quantum computing. You even have IOT. You have a lot of things. How's the digital transformation message for enterprises and for small businesses that don't want to pay the technology tax. >> I think for large enterprises, the most strategy you have been seeing from the marketplace, one is multi-cloud strategy. People need redundancy. People want to reduce the dependencies for one or two cloud providers, and we work with other cloud providers in the community to provide interval qualities to support this multi-cloud strategies. On the other side, couple years back, people didn't know what's in a cloud. And then, people rush to cloud for everything. And now, people come back and review the strategies and find out hybrid-cloud strategy is more suitable for large enterprises. They have their on-prem architect and infrastructure. Meanwhile, they move some of their applications to cloud. It's a good combination of on-prem physical infrastructure cloud topology. We have been seeing a trend for both for large enterprise clients. For small business, especially for small business, they don't have the upfront huge investment paying to the infrastructure, and we provide them the instant access to the infrastructure, not only from computing storage network and the database perspective, more importantly from security perspective. >> The Alibaba Infrastructure services, I saw a part of the display here, very prominent in that equation. You guys have the scale. What can you share about the under-the-hood? What's the technology look like? What's the engine of Alibaba Cloud? How mature is it? What's to do? Where's the strategic direction? Block-chain is important, but now, that's changing everything It's all this new wave's coming. >> Just like the (speaks in foreign language) indicated two months ago, if you look at the overall qualifications to be a world lead cloud provider, we're number four, after AWS, Microsoft Azure, and Google Cloud, but if you look at market share and revenue, we're number three. That being said, we actually provide a very comprehensive technology, and the infrastructure to the business communities, and people's communities. For instance, from the global footprint perspective, right now, we have 14 reach ins, pretty much cover all the major market in the world. By end of this year into beginning of next year, we're going to activate two to three reach ins, make it 16 to 17 reach ins globally, that we can offer the global cloud solutions for the big and small businesses. >> That's exciting, and Silicon Valley certainly import our home base. Are you guys hiring, is there expanding? Share a little bit of a public service announcement on what's going on in the Silicon Valley area. You guys hiring, looking for engineers, what kind of people are you looking for? >> Yes, (laughs) great question. Actually, we are hiring, and we're looking for talented professionals join us from those marketing, business development, to cloud architect, to technical account management, to marketing premises, so we want to build up a business that we can truly build up the trust towards the local business communities. That's why we hire a lot of local talented young professionals, and to help them to be able to fit in to the culture, the unique culture of Alibaba, and also be able to contribute to this journey, very exciting journey... >> China has always been big. Everyone in the United States knows. The numbers are big here in terms of mobile deployment, app size. A lot of the people in the US look at China and say, "Wow, we can collaborate with China." It's a very nice distribution system, but they got to take care of their needs at home. >> Exactly. >> This is a big part of the undercurrent we're hearing. How do you guys help? >> Globalization is always critical for any business, even for some small business. Just like Jack Ma said this morning at his speech, even for small business, they need to globalize. They need to reach out to more business communities, and more customers. For us, because of the huge market in China, because of the EWTP platform we set up globally, because Alibaba Cloud Infrastructure and our global footprint, we're actually being able to help our customers, not only access the infrastructure from cloud perspective, but also help them to leverage our ecosystem from different business unit, and more partnership, to be able to help them to expertise their business in China and globally. >> That's exciting. Finally, developers are a big hot button. Everyone always says, I hear comments like, "We have to own the developer community," not that you could own the developer. No one wants to be owned, but what they mean is they want to win over the hearts and minds of developers. A lot of competition, and developers want programmable infrastructure. In dev ops world, that's called dev ops. That is really the new normal in developer community. How do you guys attack that developer market? >> We actually want to enable the developers community, not own or just win over. We want constantly enable them with the new platform, the new business models, the new programs that we can bring them together. That's our mission, enablement. >> Congratulations on a spectacular formula. Thanks for having us here, TheCUBE and Silicon Angle, and thanks for your time. >> Thank you so much for the opportunity. >> Karen Lu here in China with TheCUBE. Exclusive coverage in China, bringing the stories of the most important trends and tech in Alibaba Cloud. Really changing the game with their formula of e-commerce, entertainment, and entertainment. This is not B-to-B, boring to boring. It's exciting, in a music festival. 60 thousand people are here at this conference. Developers in the world watching, I'm John Furrier with Silicon Angle. Thanks for watching. (techno music)

(uplifting music) >> Hello, everyone. Welcome to theCUBE Conversations here at the Palo Alto Studios for theCUBE. I'm John Furrier the co-host of theCUBE, co-founder of SiliconANGLE. We're here for Thought Leader Thursday, and my guest here to talk about the cloud, earnings in the industry, and also all the mega trends happening is Tarun Thakur, who is the co-founder and CEO of Datos.IO, hot start up out of Los Gatos, California. Welcome back to theCUBE, great to see you. >> Thank you, John, thank you, good to be back. >> We love having entrepreneurs come in because you guys are on the cutting edge, you're sweating bullets, you're stressing out, you're building the company. You guys are still in a growth mode, which is great, congratulations. >> Thank you. >> But you're also playing in the cloud game. You're in the ecosystem. We're seeing massive visibility now into the numbers. You see the cloud earnings just came out. Amazon continues to crush it. Microsoft, they're bundling 365 and they're juicing the numbers up but we all know what's going on there, but still, they're looking good. >> Correct. >> And then Google's a dark horse with really that developer platform looking good. So the big three are popping. But, you know, Facebook just announced a $10 billion quarter. They're a cloud too, not to be reckoned with, but kind of not in the pure infrastructures of service. So clearly the market has shown that there is some stability. We're in the second, third inning maybe of this cloud game. What's your take on the marketplace? >> No, I think this is an excellent topic. Thank you, John, for again having us back. Always great to be here. So, you know, the way I think about what's happening really in the cloud is really from three dimensions. Number one, you know, you rightly said $20 billion is what Amazon is on a run rate business of. We personally believe it's still the first innings. It's not the second or the third. You know, they've seen a massive adoption as its called the product market for developilabilty, where the developers, where the application developers, where the SMBs of the world, but the enterprises are just starting to scratch the surface of the cloud. We believe the cloud is in the first innings. The real growth. >> Enterprise cloud. >> Enterprise cloud is just beginning. Just beginning, right. I was, you know, I'll give you quickly an example. I was out in Denver visiting a customer, which is the world's largest, one of the world's largest, shipping companies. They are moving as fast as possible to the cloud, but this is their first foray. But their first foray is not five terabytes or 50 terabytes. Their first foray is 50 petabytes of data. >> So they're moving big time. >> Oh, they're moving big time. >> This is not a toe in the water. >> No, they took two years to evaluate it, and then they go big. >> Right, so talk about the trends here because let's tease through the numbers. I looked at all the earnings, and again, Microsoft is doing well, but remember, they're bundling Office 365, which kind of puts Google unnoticed because Google's got a huge presence that they could roll in. So there's a lot of number games going on that the analysts are kind of pointing out, and we're pointing out, but Amazon has just been crushing it on overall performance. >> Right. >> I mean look at the compute that's going on, the scale, they've got thousands of enterprise customers, and still there's a lot more growth there because the on-prem, true private cloud, is still growing. >> That's correct. >> So what is the state of the enterprise now, and who is using the public cloud more, and who's using it less, and why are they doing that? Is it a makeup, is it a DNA culture? Is it just evolution? >> No, it's just evolution, John. I think the enterprises are finally latching on to this, I think they are, but they're latching on it in a big way. Right, and so that's the second point that I sort of wanted to highlight that while you call Google the Trojan horse, and Amazon being the lead, and then Microsoft somewhere in the middle, let's not forget about Oracle cloud. Larry Ellison is a formidable competitive spirit. He's not going to give up. He has not given up so far. They are going to build an Oracle cloud. There will be a-- >> Well they have an Oracle cloud. >> They have an Oracle cloud. But, you know, having versus really truly-- >> It's so funny, Larry Ellison called Salesforce a fake cloud, but a lot of people are calling Oracle a fake cloud. >> A fake cloud. >> But Oracle on Oracle, we've entered Dave Donatelli, Larry is the only one that hasn't come on theCUBE. Oracle cloud works great with Oracle. >> Correct. >> They're trying to put the message out there that Oracle is working well with cloud native. They're in the Cloud Native Foundation now. >> Sure, sure. >> CNCF, so you stayed in Oracle amidst Avery and folks over there doing a great job, so, but they're not getting the word out. Oracle's not getting the job done because no one sees Oracle as a cool cloud native company. >> No, and they're not. And I think that's a very valid point. But what I'm saying is that there will be room There is oxygen in this market to get the fourth and the fifth cloud provider. There will be specialized clouds. And there will be places for that. Because Amazon is not an answer for all. It is definitely an answer for majority of your workloads, but the HPC, the high performance computing workloads, the GPU workloads, the Oracle. You know, you look at the number one database in the cloud that Amazon claims openly is MySQL. It's not Oracle. An Amazon database business, if they're making 20 billion in total AWS, I will tell you about 40% or 50% of their business is database. And that's not Oracle. So think of five to $10 billion of revenue and money that Amazon is making is not Oracle. >> What's that mean? Does that mean Oracle's losing money or. That's leakage on Oracle's model? Is that Oracle still has an opportunity? Cause they still control a lot of databases. >> Thank you and, thus, thank you, thank you for asking that. It's not that Oracle is losing money, it's the next generation applications, it's the cloud enabled applications. >> So it's growth, it's pure growth. >> It's the new oxygen, it's the new wealth creation. >> So it's like the classic example when the internet started. Web traffic increased because more people were using the internet. >> Correct. >> So what you're saying is that cloud has created a more database market. Amazon's getting a big chuck of it there, but Oracle still has the database market. >> For example if you look-- >> And SAP too. >> And look at the third reason of these clouds, if you look at AIML, right, these applications, the Alexa, the Siri-like applications, and the applications that will be built on top of this, will be built in the cloud. You're not going to start building Alexa AI application on prem infrastructure. That is not happening. And that's the third part of this whole cloud. We say it's $20 billion and we have barely scratched the surface on AI, ML, and blockchain. And all those applications that will be built, will be built on cloud elastic infrastructure. >> Alright, so what's your take? I mean, right now Amazon's winning the cloud game, Oracle, I wouldn't call them number four, but they're trying to juice the numbers up as well, but they clearly have an installed base, and they're not going anywhere. >> Tarun: Captive audience. >> SAP is going multi-cloud, so you're seeing SAP starting to put their, looking at saying, hey, we want our customers to run Oracle SAP on any cloud, so they're clearly thinking multi-cloud. Who else is out there? Alibaba cloud is now coming to the US in San Mateo, so they're number seven cloud but four worldwide, right? >> Tarun: Correct. >> So, pure worldwide numbers, Alibaba's four. >> Yes, so I'll start with Ali cloud. You know, you talk about Alibaba, their cloud is called Ali cloud, and fortunately, as you're building a company, as you talked about earlier on in our offline conversation, you get to meet all the way from governed DoD's and DIA's of the world too. We worked with Ali cloud executive team just a few weeks ago and they were out here in the bay area. Didi is the de facto car hailing company, it's not Uber, in China. We believe Ali cloud will be that in China. There will be a fifth cloud, there will be a sixth cloud. To my point, there will be specialized clouds. Amazon's not going to win this entire pie. And there will be clouds outside of US markets. >> Well I had a chance to tell Karen Lu and Dr. Min Wen Li as well as Dr. Wong at Alibaba in China a few weeks ago, and if you look at what they're doing in China, it's not just cloud. They've got eCommerce, they've got the city brain project. They're looking at holistically around data. Data's fundamental to their vision. I think that's consistent with what we're seeing in the US. A little bit more broader scope because IT here is a little bit more, has more legacy. China's got much more focus and got some government controls in there to get some latitude to do the right things. But the consumers are moving faster in China. If you look at the mobile growth. >> Absolutely. >> John: Huge indicator. >> Look at the Didi's growth. Didi's growth is more faster than Uber's growth. Right, and they've built a massive, massive company out there. >> IoT is pretty hot in China, you're starting to see that. I mean, this is a re-imagining of cloud, so you guys are in the middle of it with back on the road recovery. So as a CEO you're in the body swerving, car's that are flying by you, you're trying not to get run over. You've got a good market opportunity with the cloud because GDPR's coming right around the corner. >> Yes, yes, absolutely. >> So what's your strategy? Are you, I mean, I'm paraphrasing, not dodging cars, but, I mean, as a start up you've got to worry about your success might kill you, but how do you manage the business? I mean, how are you looking at this? Because you've got a great opportunity, and it's a growth market. >> Thank you, thank you. No we're lucky and fortunate that some of the decisions we made back four years ago people used to laugh, why are you going in this market of cloud data applications and isn't eight out of $10 dollars being spent on Oracle. Why would you go off to that. And, we're like, guys that's today. Where the puck is going. The puck is going towards the cloud and cloud applications. And to answer your question, we've found beautiful beautiful excellent product market fit. A little bit about the company. >> John: What's the use case? >> We're just classically going backup in recovery use cases. Built for cloud native applications. So, for example, I talked about the number one database in the cloud is MySQL. The number two database on prem is SQL Server. Take a guess on number two database in the cloud. It's MongoDB, they just went IPO two weeks ago. Number two database on Amazon is MongoDB. Who thought that five years ago? >> Well Lamp Stack its just open stores driving a lot of this action. >> So, I'll give you an example, one of our biggest, biggest customers which we're going to be announcing very soon, but take the liberty to share here, OpenTable. OpenTable, we are protecting OpenTable. 2.5 billion documents. That's yours and my reservation. That's your and my reservation that we make for a beautiful restaurant. >> Yeah, and if I change that reservation I've got to have that backed up, but want to bring it back. You guys are doing that. So what's the scale of the OpenTable? Ballpark it. >> So all their entire reservation applications. >> The whole thing. >> I probably will not talk about the datasets. You know, but their entire geo-distributed applications. You could be sitting in New York or you could be in London. >> And in which cloud are they using? >> They are all Google cloud, they're on prem. So they're truly private cloud and public cloud. So I call that a multi cloud data management space. They've a ton of stuff still on prem. They're not going to diverge away from that very quickly. >> What's the Google situation? Sam Ramji is over there doing a great job. Google Next is coming up soon, next year. Great traction, but still people aren't considering Google as the white glove service because, well, Amazon's not really known for that either, but at least they have a lot more, thousands more customers than Google does. >> Yeah so I think that the problem is twofold, in my humble opinion. Or the observation is twofold. One, I think Google needs to amp up their game around cloud and cloud messaging. You open Amazon AWS.cloud website, and you open GCP website, you could just see the differences. How Amazon talks about cloud. You're still selling compute storage network, but they talk business agility. What took a month for SQL Server now takes two hours. That's what you're selling, right? >> You're selling speed and you're selling automation, and you're selling value. >> Orchestration. So I think Google has to amp up their game, and amp up their game around that. >> Are they too technical, too geeky? >> Too nerdy, too geeky and still talking about infrastructure. >> Yeah sure, and I think Sam knows that too. >> And I think second part, which is, you know, they absolutely need to amp up their game not go head on and follow Amazon, find the newer applications and new use cases, where they can go ahead of Amazon. Whenever you're playing Art of War, either you can follow somebody or you go establish your own base. >> If they go frontal attack on these guys they'll lose, they've got to play the shadows. I think they can slingshot around them. I think the developer traction they have is strong, even though Amazon's got strong developer traction. Google's got some goodness with TensorFlow, they've got some great technology, but they've got to stop the game of we're Google, go with us. Enterprises don't work that way even though I get why they say that cause it's true. At some level from a alpha geek perspective, but this isn't the land of alpha geeks, these are real people that have jobs and enterprise IT that won't transform. >> They're real enterprises, who have real DBAs, and real server admins who really care about data services. Going back to the comment-- >> Not just the shiny new toy. I need reliability, proof. >> I want durability of this data. Don't just tell me I can get compute 10 times cheaper than Amazon. That's not what I care about. Change my, talk my language. I care about data services. I called data driven enterprises. >> Okay, as you guys go out and talk to customers, give me the anecdotal view of the landscape of customers. Because obviously the earnings came out. We saw, again, Amazon continuing to do well. But they've got some competition. We just laid and unpacked that. Customers now see this. What's kind of the the conversations in the boardrooms, and then in the trenches in IT and enterprise as they transform because IT is not a department anymore in the future enterprise. It's now a fabric of all things in cloud native. What are the conversations? Are they slowing down, obviously they want to go faster, is it a personnel issue? What are some of the conversations? >> I'll give you real example. We presented recently to a big, massive federal government agency. We cannot take their name out of legal. >> John: They spend a lot of money. >> Out of Washington, D.C. out here in the Bay area. >> CIA. Or, NSA. >> You're looking at the start-ups in the Bay area, and they were like, look why had we ever adopted the IBMs, the mainframes, and the EMCs, and the Dells of the world. We also know the wealth of the innovation is here in Silicon Valley. Right, so they come out once a year. And I can tell you, John, spending two hours that we did with them earlier in the week, and they are accelerating their journey to the cloud. Things that were foreign terms like micro services, that's how they want to build these federal agencies now. Every application has to have microservices. They are not truly there. I'll tell you that. They are not there, but that is top of mind for the CIA. >> And gov cloud has grown very fast, fedramp, all these services. >> Amazon called it Commercial Cloud Service, c2s, built for the government. And that entire team was here. >> Well Tarun great job. Congratulations on your opportunity we just talked about. Datos.IO. You guys, it's Datos.IO if you want to check out the website. You're going to be at Reinvent, you're going to come on theCUBE, we'll be there with two sets. Again, I have 50, you're doing Amazon, love the community there, they do a great job, Andy Jassy comes on, great group, Trace Carlson, among others. What are you expecting to see this year at Amazon? Besides the fact that it's going to be crowded and certainly the show of the year in terms of cloud. >> Momentum, they're going to accelerate the momentum. The amount of services they're planning to announce from, because we work with the team very closely, and the amount of acceleration they're showing, the new partners coming on board, and the partners like us who had one customer, and now we have 20 in Amazon cloud. You know, we just became an advanced technology partner, they understand that. >> So you're happy with how they're working with partners? >> Oh we love Amazon team. We became an advanced technology partner. They drilled us down for three months to prove themselves, yes, Datos can run on their infrastructure. You know, they want to go fast, but they want to go diligent fast. >> Yeah, we love Amazon too, of course. Our crowd chat solver's on their website as a case study using some of their stuff. Thanks so much for coming on, your final thoughts. Earnings, cloud, where are we? >> This is unstoppable force. It's an unstoppable force, we're in the first innings. There's so much opportunity ahead of us. And we couldn't have picked a beautiful market to than what we did. >> And true private cloud as we keep pointing out, turns out that's playing out. On prem activity's high. Your thoughts on on prem? True private cloud? >> It's going to survive, it's going to survive. But it's not going to be the growth place. >> But we think it will grow with the SaaS. >> With the Saas, I agree, but infrastructure. Infrastructure is not going to be growing. So that's our two cents, but you know, we'll be back in a couple of weeks, we have a phenomenal exciting product launch coming up. >> I just tweeted on Twitter this morning $1.5 billion is going to be coming out of on premise, non-differentiated labor operations. Which basically means, the rack and stacking some of these jobs are going to go away. But the growth is in automation, AI, and machine learning, and some SaaS tooling. >> Cloud applications. >> Cloud operations business models growing on premise. >> And those dollars are going to leak to the cloud. >> Yeah, and cloud, it's all to the cloud. Tarun, thanks so much. >> Thank you. >> Co-founder and CEO of Datos.IO. I'm John Furrier here for CUBE Conversation in Palo Alto at our studios, thanks for watching. (techno music)