>> Narrator: From New York City, it's theCUBE, covering New Relic FutureStack 2019, brought to you by New Relic. >> Hi, I'm Stu Miniman and this is theCUBE at New Relic FutureStack 2019 here in New York City. It's our first year of the event, but the event itself has been around for seven years and to help us end our coverage, no better person than the founder and CEO of New Relic, and the one who the name of the company came from, Lew Cirne. Of course, Lew Cirne is an anagram for New Relic. >> Indeed it is. >> Lew, thank you so much for having theCUBE at the event here and thanks for hosting us. >> I'm a huge fan of theCUBE. I've been watching it for a long time and it's such a pleasure to have you guys here. Thank you for coming. >> All right, so Lew, you're known as the coding CEO >> Lew: I am. >> And you come out with a vision of making software better. It's a great goal. Give us a little bit about the state of the industry. You know the internet challenge these days. It's going to fragment into a bunch of pieces and Open Source isn't what it used to be. There's so many changes going in the industry. Just kind of macro view before we get into New Relic. >> Yeah, from a macro view at New Relic we do this for the love of software. It's not just me, it's the whole company. We believe in software. We think it unquestionably is changing the world, transforming every industry. It's not enough just to build software that's great. You have to deliver more perfect software. That's now become almost obvious whereas when we first started out that was actually a bit of an evangelical sale where we had to convince people that they needed to observe their software. Now it's become a must-do thing, and that's why observability has become a household term. Everybody recognizes that anything that runs in production in internet scale needs to be observed, needs to be measured in real time. And so, that's been going on and has become a must-do thing for our customers. What we're so excited about is that we're delivering the first observability platform. What do we mean by that? Well, we see with this proliferation of tools, you might have metrics going to one place and logs going to another place and traces going to Zipkin or logs going to Elasticsearch. You want it all in one place, and more important, you want it to be connected so that you can see the relationship between the application and its server or infrastructure and the user experience all in one connected platform. That's what we're delivering with New Relic One today that's so exciting. >> Yeah. So, Lew, the IT industry in general is known for its fragmentation. >> Lew: Yeah, it is. >> When I want to build my application in the old days, I talk to the CIO. He's like, "Give me a million dollars and 18 months "and I will build you the Taj Mahal of my application." And we've got it beautifully designed and pull it out. Well, today things are moving much faster, but I've got everything from that Taj Mahal to the Kubernetes and Serverless, Microservice Architectures-- >> Lew: All that compartment-based stuff, yeah. >> There's usually a lot of different teams, and a lot of different tools in there. How does New Relic fit across that landscape and how are you helping to pull things together? >> Well, certainly the industry's moving from the monolithic application to the component-based application, often running in smaller and smaller services, usually running in something like Kubernetes or a containerized environment and with that comes a proliferation of things to monitor, and often a proliferation of tools. We have enterprise customers that have 20, 30 different monitoring and telemetry tools. It's not because they want it, it's because there might be one particular feature that one tool does that gives them the visibility they need. And what they want is a single platform. What people have historically used New Relic for is dropping our agents into their application or their infrastructure. Then our agents automatically put visibility in and then they report on the health of that system. We do that really well, but what we're announcing today is that we're opening up our platform to consume telemetry from Open Source, agentless sources. So that, if you've got something like Prometheus that's gathering data from Kubernetes, that can go straight into New Relic and be treated as first class data, so that you don't have to switch between a bunch of tools. None of our customers want that. They want it all in one place, but they need an open platform that's connected and most importantly programmable so that they can actually have one tool to see it all. And that's New Relic. >> A lot of the logging and tracing information out there isn't agent-led. What do you see as the future of agents, and what are some of the challenges of pulling all of these various data types together? >> Well, the most important thing for the future is that our customers have complete control in a choice. What we see particularly in large enterprises is they want both. They have a portfolio of more than a thousand applications. They want to observe them all. Most of them they'll want to drop an agent in because they don't have time to reinstrument them, but they still need to see them. Some of them they may want to manually instrument because they want a higher level of control or they want to adopt an Open Source API like OpenTelemetry. But then, if they're adopting that for some of their portfolio, when a transaction reaches across these different services, you don't want to lose visibility. We're delivering best of both worlds. You can manually instrument what you want. You can use OpenTelemetry in parts of your environment. And then you can also use our automatic instrumentation that comes from our agents. Our customers get to decide, and that's the future. >> So, Lew, you've laid out the case in a strong way as to why New Relic One should be the platform for the monitoring observability. I think you undersold a little bit the NRDB piece. When I look inside my business or I talk to customers, being able to see my data and act on my data can be challenging. You showed a demo of 10 terabytes and being able to change it in a snap. >> You know, NRDB is pretty magical. At some risk, let's see if this will show up on my phone right now. Just give you a sense of how fast NRDB is performing right now. Okay. One more time. So we've got-- >> Hold it up a little bit and show the camera this way. >> NRDB right at this moment is inserting 18 million events every second. Every second, 17.89 million pieces of data coming into NRDB in real time. And our customers are querying that in real time. Right now, in this moment, they're reading 24 billion pieces of data per second. Those pieces of data could be log messages. They could be someone pressing something on their app, could be a request going through a server. It's all in the same database. And the last one is a hundred millisecond response time on those queries, which is mind-blowing for these analytics queries. >> You actually showed the press an analyst this at lunch and it was over 20 million-- >> I think it was at 40 billion at that moment. >> 40 billion coming out and the same response time. A hundred milliseconds is Google good as to how fast I get a response. >> For this kind of data processing, it's mind-blowing. Now, the thing that our customers need to know is that all your metrics, all your events, all your logs, all your traces going into the same database with one query language. That's so much better than going to Elasticsearch and using its query language for logs, then using a totally different query language for getting at your metrics, and then trying to stitch it all together. We put it all not only in one cloud but in one database. That is the most powerful telemetry database in the world, which is NRDB. >> Lew, give us a little bit of the journey to the announcement today. Observability's been talked about in the industry for a while. VC money has been pouring into startups. There's been some acquisitions in this space already. Give us a little bit as to how we got to today. >> So how we got to today was when we started off as a company, we were championing the whole idea of observability, putting visibility into application code. As I said, that was a bit evangelical in the early days. People were wondering if they needed it. Now there's no question they need it. In fact, some people need it so badly they want complete control, and so they're manually instrumenting. OK, I've talked about that. Now where we see people going is now that all of this telemetry data is coming ideally into one place like New Relic, our customers are saying, "I need to go beyond dashboards. "Dashboards are good, but often dashboards are incomplete "to get the most out of the data we're collecting." That's why we're claiming we have the first and only platform for observability, with a capital P. What do I mean by that? It's only a platform if you can build software on it, and New Relic One is the first software development platform for observability applications. Our customers can take all this data and build real-time applications that leverage all the value out of it. When a customer buys something online, New Relic's database could be the first piece of, certainly, analytics database that sees that data. So you could a navigation that shows real-time sales for your business people all based on New Relic One. We can also solve all sorts of IT operations problems by building applications on this platform. And to prove it out, we're offering 12 free Open Source applications to anyone. They can download, they can clone them off of GitHub and push them into their New Relic account and they can use that as inspiration to build their own applications on top of our platform. >> Right. This is, if I understand, the first twelve, and you expect both New Relic and your customers will build many more. >> Yes, and actually it's thirteen already. We just added another one today. Some of those have been built by our customers already, and we're already seeing customers deploying these applications into their New Relic One accounts in production today. >> It really goes back to the promise of SaaS is that when customers need something and make a change or build on it, it's not just that customer that gets to be able to leverage that, but everybody else that is on the platform-- >> They can share and benefit. The way to think of it is, you're absolutely right, and without Force.com, Salesforce is just a CRM system. But with Force.com, companies could really leverage all the data inside Salesforce. Without programmability, ServiceNow is just a ticketing system, right? But how does ServiceNow become strategic? By allowing people to build applications tailored to their business. We believe the world needs an observability platform and the only one of its kind is New Relic One. >> All right. So, Lew, it sounds like this should be something that should accelerate growth for the company going forward. I read through your last earnings report. You're growing at 30, 35%, which is reasonable but less than the overall cloud marketplace itself is growing. So, how come the AWS, Azure, GCP tailwind isn't pushing New Relic faster? >> Well, it is a good tailwind for us, and I can't go into too much detail. We're a public company in a quiet period so I can't speak to specifics. What I can tell you is history has shown that people tend to adopt platforms at a certain rate and then, a few years later, they adopt the management technologies for those platforms. So we tend to be a little bit behind the adoption of cloud but then when people standardize and they go all in on it, then they really increase their investment in New Relic. I believe that things like our platform capabilities take our customers that might be spending... We have 850 plus customers that spend more than 100,000 a year with New Relic, and I believe when they start to adopt our platform and go strategic with us, many of them will be million-dollar customers, and that ought to be the basis of durable growth for the company. >> All right. So, Lew, there was some news leading up to the event. Some management changes. Let you speak a little bit of that, and you've got some history with, of course, Mike was already on the board, but-- >> We're so thrilled about Mike Christenson joining the company as President and COO. I've known Mike since 2006, when he acquired my last company, Wily Technology, which was really the very first APM company. Mike was the President and COO of CA, and so he had a similar role there to what he has here. Mike is, I think, one of the most brilliant operational minds I've ever met. He's been involved with New Relic for nine years. He's been one of the first investors in the company. He's been on our board of directors, and he's always had a keen mind for how to think about growing our business. I've been thinking for a long time on how to get him more involved as a member of the team and finally I convinced him to come join. Mike joined us as our President and COO. He's going to be my partner in growing the business. I think those that know me know that I love technology and products and thinking about where we are five years from now. Mike will be my partner to help make sure we're operating the company and growing the business on a day-to-day basis. >> Lew, you and your team helped create and democratize this wave of APM, Application Performance Management. As you look at it today, we talked about microservices. You talk about the dispersed nature of everything going on. How would you reframe the market today and New Relic, where it needs to be today and going forward? >> Phase 0 was people-monitored servers, back in the Stone Ages. Monitoring was just "Is the server up or down "and does it have enough CPU?" >>Blinking lights. >> Right. Then came APM. APM really was the precursor to observability. It was the notion that these are complex systems. They need to be observed at high granularity. APM gave birth to observability, so when New Relic first came along, we're "Let's democratize APM." And as observability came along, we saw this as an opportunity to open up the platform. Now where we are, if you look at our track record, first of all, my first company created the category of APM. New Relic then democratized APM, and now we're delivering the first observability platform. I believe that the future is programmable, and that New Relic is the future. >> Lew, you've always been enthusiastic when it comes to the vision that you put out, but it's been noted by some of my peers that your energy level and enthusiasm is even higher today than usual. So many things that you talked about, some of the things that you highlight, maybe behind the scenes, or things that might get missed beyond the headlines that you want to share. >> The idea for New Relic One was born two years ago. I took some of the brightest people in New Relic offsite and we fleshed out the thinking and the early prototype of what's become this. This is my life's work. This company's my life's work. I believe so much in this platform. I believe in its capabilities. I'm seeing our customers ripping it out of our hands, saying, "This is going to enable us "to fully achieve our goal of complete visibility "and completely tailored to the needs of our business." Why I'm so fired up and passionate is when you put your heart and soul into something that's new, that no one else has done before... There's been a handful of times I've done that in my life. The first time became APM. The second time became New Relic. The third was when I created NRDB. And now the fourth is New Relic One. And we're just getting started. >> Well, Lew, I want to let you have the final word as to what you want your customers taking away here from FutureStack 2019. >> My belief is that the future of observability is you need a platform. That platform needs to be open, connected, and programmable. We have such a beautiful, easy... It's a Heroku-like developer experience. So within seconds, you can be building an application that takes the telemetry data in New Relic and turns it into actionable business insights for your company. And if you want inspiration, there's 13 applications now up on GitHub that you can install right into your New Relic account, and maybe modify and tailor to your needs and republish to share with our other customers. >> I know you and your team are making sure that New Relic doesn't become a relic of the past. Thank you so much for having us here-- >> We're always in the future. >> And congratulations. I look forward to watching the progress going forward. >> Thank you, I enjoyed it. Thank you. All right, bye-bye. >> Thank you so much. And that's a wrap theCUBE's coverage of New Relic FutureStack 2019. I'm Stu Miniman, of course. Go to theCUBE.net for all of the coverage. A big thanks to the team here and everyone supporting and as always, thank you for watching theCUBE. (Electronic Music)

>> Live from Seattle, Washington it's theCUBE covering KubeCon and CloudNativeCon, North America 2018. Brought to you by Red Hat, The CloudNative Computing Foundation, and Antico System Partners. (upbeat music) >> Hey everyone, welcome back to theCUBE. Day two live coverage here in Seattle of the CNCF KubeCon and CouldNative. I'm John Furrier, host of theCUBE with Stu Miniman here all week for three days as multiple years we've been covering KubeCon. We've been covering this community, all the way back to the OpenStack days to now CloudNative and Kubernetes, rise of Kubernetes, and KubeCon has been great. CloudNative Computing Foundation and the center of it has been an individual CUBE alumni that we've talked to many times, Lew Tucker, VP and CTO of Cloud Computing at Cisco Systems. Great to have Lew on, good to see you. >> Great to be back again. >> We got a great history of conversations and every year we kind of have a pinch me moment where it's like it's so awesome right now, the technology's coming together, now more than ever, the standardization, the maturization of Kubenetes and what's going on around it, is probably one of the most exciting trends. It's not just about Kubernetes, it's about what that's enabling, ecosystems, storage, networking and compute, now the, is working now magically creating a lot of value. So, we've talked about it, what's the update from your perspective, how do you see it evolving now? >> I see it very much the same way, I had a short little keynote today, yesterday, and was talking about I think we've entered this kind of golden age of software where because of the number of projects that are now going into the CNCF for example, and elsewhere, and get up repositories, we just have a major driving force which is the accumulation of the software that's used now to power the cloud, power data centers, totally transforming infrastructure. We're no longer cabling as I sort of say has no become code. >> Yeah. >> And that's all about the software, it's about through the open source communities. >> We've been talking about before we came on camera about the, and we've had other conversations about the historical waves of innovation. AI's been around for a while, you know all these things have kind of been around but now with cloud computing and the resources available in terms of compute power, storage, and networking now programmable, it's creating a lot of innovation right. And this has been a tailwind for some and a headwind for others, companies that have transformed and understood that have been leveraging it. We've seen conversations from Net App, Cisco, you guys are transform, you turned it into a tailwind, for Cisco, because now all that magic can come in for the programmability on the networking side. >> Exactly right, yeah. We see AI as having a big impact across the board on all of these, we're big contributors also into Cube Clove, for example, because on top of Kubernetes, the biggest issue we're going to have in AI going forward is we don't have enough AI engineers. We don't have enough people who are trained in that. So we need to create these tools and the services that we see coming out in the cloud now for AI are designed to make it easy to consume AI. You don't have to be an AI expert in order to use it and that sort of thing is really exciting. >> How is the CloudNative environment changing IT investments 'cause again, the old days I'd have to throw a machine at something, I got to buy this and siloed, you got now horizontal capabilities, you got the vertical specialization with machine learning and AI as you just referenced. How is it changing investments, people now are looking at re-imagining their infrastructure, they're re-imagining how apps are built. How is Kubernetes, CloudNative impacting IT investments? >> So we've found for example when we talk to our customers and everything else, they're all using multiple clouds. So I think internally we're getting to see a rise here now is this multi-cloud environment that we have. And so Cisco with what we've been doing with our hybrid solutions for AWS and hybrid solutions that we're having with Google is making it so that you can have the same environment within your data center as you have in the cloud, and then we connect the two so that now the IT infrastructure really is looking like a cloud and there's many clouds, multiple clouds in your own data center, in multiple service providers. That makes it easier for IT to really consume CloudNative technology. >> I wonder if you can chill us down a level from what we're talking- you talk about cube flow and machine learning remember back to big data, was like okay, well what do we have to do with the network? Well, I need some more buffering but you know, how are we what is just the base infrastructure layer and where Kubernetes and this ecosystem just becomes the platform for all of the modern applications, and what has to be done differently, I wonder if you could help- >> Yeah so one of the big challenges I think is this how do we connect the different clouds together with your own data center. And that's why we, the hybrid solutions, where Cisco's driving now are designed specifically to make that easy because it's scary for IT organizations to say they're going to open up some part of their firewall to have connections coming in, and so we provide a solution that makes it easy for people. And that means that things such as cube flow, and things like that, they can be running, perhaps they might do some of their research in a hybrid- in a public cloud provider, such as AWS or Google. And then they want to run it now in production within their own data center, and they don't want to change a thing. And at the same time, we're seeing other capabilities. You want to access some service in the cloud as a part of your enterprise app. >> Yeah one of the things people have a hard time understanding is what is just kind of standardized, okay I've got compliant Kubernetes it can run all these places and then there's areas where Cisco has done deep integration work with both Google Cloud and with AWS, maybe help understand what are the standard pieces and what's the extra engineering work needed to be done to support some of these? >> Well I think what has helped us all is the fact that Kubernetes has really taken off. So we really are seeing if you have a Kubernetes platform and you adhere to the public APIs of Kubernetes and everything else like that, you then can have the portability of applications back in the java days we were going after that, and now we're seeing it with Kubernetes. And so by what we've developed has been with the Cisco container platform is an on premise manage Kubernetes environment that looks identical to what you find in the Kubernetes environment at AWS or at Google. So the same interfaces are there, the IT doesn't have to relearn things, they can actually get the advantage of that standardization. >> And that's key for operations and IT because that is the promise of cloud operations. Similar on both platforms on premises and in the cloud. And the next question is okay from a networking perspective, we've had many conversations with Suzie Wee at Cisco around network programmability or net dev options as you guys call it, which is kind of a play on dev ops. This is the future because with multi-cloud the apps don't need to know about where to provision workloads, which cloud when, is it better region over here, latency, network factors come in, you still got to move things around, put A to B, edge of the network for IOT. Talk about the importance of network programmability now more than ever with CloudNative why it's so important. >> Well the first and foremost, it has to be driven by APIs. The old days of actually going out and having people configure network switches to make connectivity or open up provisions and firewalls and things like that, that's behind us. Now we have that all being because of programmability of the network through what we've been doing with ACI and other technologies, we can make it so we can connect these clouds and make it, maintain the security. We're also seeing other things such as isteo and edgebased computing and things like that come into play, where again, the ordinary developer doesn't have to learn all of the details of networking and security, but the operations people need it to be secure, need it to be able to be moved around, need to be able to have telemetry so they can tell what's going on. >> One of the things we've been talking about on theCUBE, Stu and I were yesterday riffing on this but for a while, but it's also now trickled into the Silicon Valley conversations around some of the tech elite people around architecture. Cloud architects are in high demand and there's two schools of thought. There's a persona around a systems architect, more of a systems view, operating systems kind of view, that's cloud that's operating, environment, serverless, advanced, these are kind of concepts that is a systems-oriented thinker. And then you have the application developer that looks like an app server kind of world. Those are all paradigms that we've lived through. >> Right. >> Now coming together now in one, horizontally scaled both cloud that's a system, vertical specialization around the apps, and with dev ops layer, having these guys work together. Talk about this dynamic, your thoughts on it, how it shapes employee selection, people who lead projects. 'Cause the CTO and architect role's now more important, but the software side's just as important. >> Yeah so I think one thing that's become very clear is that we need to make it easier for the domain experts in an application area to just take care of their part. And so that's why like one of the previous episodes we talked about here was about istea, where we've actually separated out essentially the data play, the transport of data around with security, encryption, identity, and everything else from the actual application code of the micro service. That makes it much easier because now the engineering teams are too large, you can't have everybody know everything anymore, like you say, we've got specialists in different areas. We need to be able to provide then, underlying systems that connect these things and that underlying system then has to be managed by your operations people. So we've got dev ops where the application people are writing code actually that the operations people use, so that we can actually have this kind of uniform infrastructure that is maintainable. >> And security is super important and all that good stuff. >> Yeah so Lew it's interesting, we've been watching so many of the pieces we've worked on OpenStack, it was really from the bottoms up building the infrastructure, we've seen the dynamic the last two years, Kubernetes some, and server-less even more, coming from the top down. We want to get your thoughts on that, we've been digging in and trying to tease out some of the Knative pieces that are being discussed here, versus some of the functions things that are happening, especially in Amazon and Microsoft, I'd love to get your take. >> I think we're always seeing this progression in platforms for computing, and programming languages, and paths we've talked about years ago. All of these things are designed always to make it easier. So you're right we've got for example Knative now really coming on as saying can we standardize a way specifically helping Kubernetes people move into this area. Like I've mentioned before the Kubeflow again, how can we start to standardize these pieces? The beauty of this is, the standardized pieces are coming out in open source. So everybody gets it, and that means it's deployable in your public clouds, it's deployable in your data center, and then through a lot of the hybrid technology that Cisco's working, you can connect those together. But you're right we're going to continue to see innovation, that's great, because we need that, we need that constantly. What we need to be able to do is make it easier to consume and then integrate into these systems. And that's where I think Kubernetes has a lot do with how we make it easier. >> Final question on Cisco then I want to go on a more personal note with you on your situation which is news breaking here on theCUBE. Cisco has successfully transformed it's direction, it's been always a great leader in networking, always a great business, billions and billions of dollars in revenue. Now with CloudNative and Kubernetes, the relationship I saw with Amazon, you got Google, you guys have taken that systems view in making things programmable. Explain the Cisco strategy from your perspective as a CTO and as a legend in the industry, for the people that know Cisco, know the old Cisco, what is the new Cisco? And how does Kubernetes and how does all this CloudNative fit into the new Cisco? >> I think the new Cisco really is focused now on where customers are taking their computing resources and it is in this multi-cloud world where we're seeing it's not a fight anymore. You can't say I have a reason to keep things here in my data center, I'm never going to go to cloud, and other customers are saying I'm never going to have a data center, now everybody's saying we're probably going to have both. And Cisco as a networking company, this plays right into our strength because what you have to be able to do is now connect those environments in a secure way, in a manageable way. And so this plays right into where Cisco's growth I think is going to be, it'll be in much more of these kinds of services that allow that to happen, and in the relationships and partnerships that we have with the major cloud providers. >> This basically, the decomposition of monolithic applications into sets of microservices is connected by the network. >> Exactly right. >> This is the fundamental beauty of where you guys see that tailwind. >> Exactly. >> Awesome. Well Lew you've been a legend in the industry, I've been following your career from the beginning. You've been- you have product that's in the Computers Museum you've done amazing work at Sun Microsystems, I mean just a great story career, the work you've done at Cisco, you've been on theCUBE so many times, I don't know that number. You've really contributed to the industry and this news now about your situation, share the news about what's happening with you. >> Well I made announcements at our CNCF board and our OpenStack board meetings that I'm leaving Cisco and so I'm having to withdraw from the board positions as well as Cloud Foundry and that's sad in a way because I have relationships with those people, but it many ways after I want to spend some time to really see where the future is again, because as you know in my career I've changed several times. And I'm so looking forward to actually, now going into sort of a new direction which may be much more moving up the stack. I think there's very exciting things going on in AI, there's exciting things going on in genomics. There's a lot of activity going on so we've been building this technology for a purpose to allow us to have those kinds of things. Now I want to start focusing much more directly. >> And you're leaving Cisco on what date? >> Leaving Cisco beginning of January. >> Well congratulations, great work and I think one of the trends I think this speaks to is I see a lot of computer scientists, a lot of people who have some DNA from the old ways like you do, and been there, and contributed at a seminal level, just some great contributions. Seeing computer science as an opportunity to solve problems. This is kind of a renaissance from seasoned pioneers and young people coming together. This is a great opportunity, is that kind of what you're thinking, you're just going to attack the problem? >> There's 8000 people here, this show's sold out and this is all developers so people who have background in computer science or are getting online and learning it themselves, this is an opportunity and the time to get in. >> You've been a great mentor to many, you've been a great contributor in the open source community, again, your contributions at the systems level and you understand certainly what's going on with CloudNative, looking forward to following up and congratulations. >> Yep, well I hope to be back again. >> Of course, you're VIP CUBE alumni. Lew Tucker, exciting news, Cisco's transformed. He's moving on to- taking on some big new challenges, thanks for coming on theCUBE really appreciate it. Lew Tucker, Vice President CTO systems, Cisco systems, moving on to some new endeavors. Here in theCUBE we're covering the live coverage here at KubeCon CloudNative I'm John Furrier, Stu Miniman, back with more day two interviews after this short break. (upbeat music)

Oh from Las Vegas it's the cube covering AWS reinvents 2018 brought to you by Amazon Web Services Intel and their ecosystem partners well good morning welcome back to AWS reinvent this is day three of our coverage here on the cube we made it we have survived the show here that been a great show and still a lot of energy out here on the show floor Justin Morin John wall's we're with loose Ernie who is the CEO and founder of New Relic and and Luffy look just over your left shoulder there's that really impressive New Relic Pavillion you've got there we've been admiring it all week so that's a great show for us and you know our our theme this yours is billed fast and break nothing because that's really the objective of moving to the cloud is building software that customers value as rapidly as possible when you're building stuff fast there's risk and so how do you build fast with breaking nothing it's measuring everything in real time everything in that environment seeing exactly what's going on so you can make sure the stuff you're building works for your customers and that's what we do for so many people were adopting the Amazon Cloud kind of reminds me of John Wooden yield UCLA basketball coach had said be quick but don't hurry that's all right so that's right so it was all about pace and I understand putting that culture in the team so how do you put that culture and into with your well I you know it's it's one of the great truths how can you manage what you can't measure so we're a company that makes it trivially easy to measure software infrastructure digital customer experience our customers come to us every day and say what I love about New Relic is within seconds of setting up my account and and deploying the agent all of a sudden production is lit up I can see what's going on that measurement helps our customers have more confidence moving to the cloud faster deploying more frequently delivering customer value more rapidly now one of the themes that we've had over the last couple of days and John and I were talking just before we came on this morning that complexity yeah we've been hearing that time and time the amount of change it's happening so quickly and we've got all of these different systems we got micro services we've got containers we've got serverless it's a really complicated environment yeah how do you help the humans understand how how do you get them to understand what's going on in this really complex environment that's moving so fast you're you're absolutely hitting on the key challenge and what we're great at what our customers tell us they love about us is we simplify that complexity and and there's how do we simplify it well we have a deep understanding of how these systems work and we've fought very hard about how do you surface the interesting information that's most relevant to understanding the health and application and really in that moment when there's a problem how do you make it as easy as possible to understand the cause that problem as rapidly as possible this is like our customers they're right in the you know right in the pit of the most high pressure situations when there's a production issue every second counts every second counts you got to find that issue as rapidly as possible and what our customers tell us is they're sick of having to juggle around between three four five many of our customers have dozens of tools that are intended to watch production they turned a new rally platform cause it's all in one platform and when seconds matter you don't want to be switching between tools and context to understand what the nature the problem is and that's that's super important it's kind of like we all become pack rats in a way right yeah we save things we just keep putting them in this room and this room in this room and it comes time to kind of clean up or yeah get our act together and that's what you're doing for people is helping them get their act together absolutely and once you've got an understanding of how the system provides you go from overly cautious and timid to confident and with that confidence you can start playing offense with software we talk about all the time 15 20 years ago IT leaders thought of software as a defensive mechanism when I say defense I mean it's a way to reduce costs how do I reduce the cost of billing how do I reduce the cost of handling a support call now it's offense it's the growth engine for these companies right the digital customer experience is driving top-line growth and so when you're confident your ability to move fast with your software you're actually participating to growth your company that's why it's so strategic that's why the cloud is growing so rapidly so if you've got a customer who's not with you really clearly you want them to they should be going with you what if what does it feel like to go from not having New Relic in there and dealing with this complexity and having those struggles and then as you've put in New Relic for the first time what's what's that onboarding experience feel like I once was blind and now I see John Newton America it's truly that our customers tell us that before I discovered new relic I had no idea was going on production and it was opinions that we're telling us what was going on and when you've got a bunch of teams working on a complex system and there's a problem and it's like the loudest opinions gonna determine how you go forward that results in chaos and it results in organizational misalignment and with data all of a sudden people are lying on how you move forward yeah so with all that data that's there I mean that that can actually be complex itself if I'm trying to see everything all at once that that can be overwhelming so how do you help customers dial in on what's actually important within this this sea of information that they can now now look at well you know we have a variety of ways in which we approach that problem um the first is an opinionated user interface okay we have more experience in the realm you know my first company I founded in 1998 created the category of application performance management and so I've been thinking about this problem might ease the think about this problem for a long time we come to our customers with an opinion on what matters in the application environment but even then beyond that we're layering on well AI but we call it applied intelligence because artificial intelligence people overuse the term and honestly our customers don't care whether we're using a collaborative filter or good old-fashioned algorithms but they want to split more smarts in our platform to tell them what's anomalous tell them what's abnormal tell them what to pay attention to in this sea of data you really collects about 15 million data points every second off of our customers applications and infrastructure and digital customer experiences 15 million data points every second coming to the New Relic Cloud and we analyze all of it in real time to service to our customers what's important what's anomalous and what's interesting yeah so let's get into that let's go about what's anomalous and what's interesting yeah how do you differentiate that because as you said out of 15 million data points every second yeah I mean you're gonna develop trends but but it's by the time you evaluate it seems like one set of data you're off to a completely different set of data and you're right this is a very dynamic environment well the combination of an understanding of how applications work in general but then the flexibility to recognize you know how an e-commerce application might be very different from a Content application like USA Today networks is a big New Relic customer and so we need to provide enough of a platform that our customers can give New Relic some guidance on the nature of their application and and and we can discover its architecture and we can discover things about it but we we really can't discover its business purpose and so there's a combination of what we do out of the box with the customizability that that get our customers the point where the software's doing the work for them you're on so having been in the show now for three four days what have you seen around here what a customer's looking at that they're gonna bring it bring it on to their environment next what are some of the things I think you know lambda is coming mainstream right right and so when we think about where where the world is going you know micro services are going to be here for a while just like all the other technologies you said like the packrat analogy is true but future in the future when someone starts a brand new project they won't even think about infrastructure they'll just think about their code and new relics philosophy on visibility is you start with the software because the software is that the whole the business logic the whole point of all this infrastructure is to run software and so our most important starting point for visibility is the software itself we just made an announcement this week about delivering the first product that automatically instrument lambda to tell you if your lambda function is misbehaving exactly how is it doing that and so as the world continually moves from the old IT used to obsess on infrastructure and and and and new ideas is obsesses on how do we deliver more software faster and that that aligns very well with what we're great what our philosophy is on delivering his ability it starts and ends with the software and it feels like people are going into lambda really quite quickly because absolutely moving with some meetings this morning that they were saying that there's enterprises in particular may not have actually jumped onto the container bandwagon yet but they've looking at laminate is going you know what we're just gonna skip leapfrog to that yeah I'm seeing quite a bit of that containers still have an awful lot of value there they're wonderful lightweight ways to host what used to be on you know in a virtualized environment and get that isolation all that benefit kubernetes is also a big deal we made an acquisition of a company called coast scale that we announced last quarter that accelerates our capability to do work in kubernetes environments we're always inspired by what our customers are doing to accelerate how they build their software and that inspires us to make sure our platforms continually their tool a choice to make sure they can see the entire environment so you're getting as much for them as they're getting from you absolutely it's a great partnership we have with our customers we learn from them and then we provide them with thought leadership on how do you think about making sure you're seeing the entire environment so you can spend more time delivering great software and less time debugging it excellent well let's get back to that great booth of your awesome great for being with us we're sharing our a relic story and success on the the last day of the show all right well mate ok all right excellent right loser T joining us you from New Relic back with more here with AWS reinvent you're watching the cube from Las Vegas

(upbeat music) >> Announcer: Live from Vancouver, Canada. It's theCUBE covering OpenStack Summit North America 2018. Brought to you by Red Hat, the OpenStack Foundation, and its ecosystem partners. >> Welcome back. This is theCUBE's exclusive coverage of OpenStack Summit 2018 in Vancouver. I'm Stu Miniman with my co-host John Troyer. Happy to welcome back to the program two CUBE alums. We have Alan Clark, who's the board chair of the OpenStack Foundation and in the CTO office of SUSE. >> Yep, thank you. >> Thanks for joining us again. It's been a few years. >> It's been a while, I appreciate being back. >> And Lew Tucker, the vice chair of the OpenStack Foundation and vice president and CTO of Cisco. Lew, it's been weeks. >> Exactly right. >> All right. >> I've become a regular here. >> Yeah, absolutely. So, first of all, John Furrier sent his regard. He wishes he was here, you know. John's always like come on Lew and I, everybody, we were talking about when this Kubernetes thing started and all the conferences, so it's been a pleasure for us to be here. Six years now at this show, as well as some of the remote days and other things there. It's been fun to watch the progressions of-- >> Isn't it amazing how far we've come? >> Yeah, absolutely. Here's my first question for you, Alan. On the one hand, I want you to talk about how far we've gone. But the other thing is, people, when they learn about something, whenever they first learn about it tends to fossilize in their head, this is what it is and always will be. So I think most people know that this isn't the Amazon killer or you know it's free VMware. That we talked about years ago. Bring us a little bit of that journey. >> Well, so, you know, it started with the basic compute storage and as we've watched open-source grow and adoption of open-source grow, the demands on services grow. We're in this transformation period where everything's growing and changing very rapidly. Open-source is driving that. OpenStack could not stay static. When it started, it solved a need, but the needs continued to grow and continued to change. So it's not surprising at all that OpenStack has grown and changed and will continue to grow and change. >> So Lew, it's been fascinating for me, you know. I've worked with and all these things with Cisco and various pieces for my entire career. You're here wearing the OpenStack @ Cisco shirt. And Cisco's journey really did through that to digital transformation themselves. When I talked to Rowan at Cisco Live Barcelona, the future of Cisco is as a software company. So, help set OpenStack into that kind of broader picture. >> Sure, I think one of the aspects of that is that we're seeing now it is becoming this multi-cloud world. And that we see all of our customers are running in the public cloud. They have their own private data centers. And what they're looking for is they want their whole development model and everything else to now become targeted towards that multi-cloud world. They're going to do services in the public cloud, they still have their private data center. OpenStack is a place for them to actually meet and run all their services 'cause now you can build your environment within your data center that makes it look very much like your public cloud, so your developers don't have two completely different mindsets. They have the same one, it's extracting resources on demand. And that one, we're putting on top of that other newer technology that's coming, such as Kubernetes. We've got a real consistency between those environments. >> Yeah, please Alan. >> I was going to say, it enables you to leverage your existing infrastructure so you don't want to make them, particularly those SUSE's customers, they don't want us to come in and say throw everything away, start afresh right? But at the same time, you've got to be able to embrace what's new and what's coming. We're talking about many new technologies here in OpenStack Summit today right? Containers and all sorts of stuff. A lot of those things are still very new to our customers and they're preparing for that. As Lew said, we're building that infrastructure. >> One of the things, as I'm thinking about it, some people look at, they look at codec containers and some of these pieces outside of the OpenStack project and they're like, well what's the Foundation doing? But I believe it should be framed, and please, please, I would love your insight on this, in that multi-cloud discussion because this is, it can't just be, well, this is how you build private. It needs to be, this is how you live in this multi-cloud environment. >> That's why I think, you're beginning to see us talk about open infrastructure. And this is using open-source software to use software to manage your infrastructure and build it out instead of configuration, cabling, having guys going out, plugging in, unplugging network ports and whatever. We want software and automations to do all that, so OpenStack is one of the cloud platforms. But these other projects are now coming into the Foundation, which also expand that notion of open infrastructure, and that's why we're seeing these projects expand. >> Lew's exactly right and it goes beyond that. Back in 2017, early 2017, we recognized, as a board, that it's not going to be just about the projects within OpenStack. We have to embrace our adjacent communities and embrace those technologies. So that's why you're hearing a lot about Kubernetes and containers and networking and all sorts of projects that are not necessarily being done within OpenStack but you're seeing how we're collaborating with all those other communities. >> And codec is a perfect example of that. Codec containers came out of those clear containers. It's now combining the best of both worlds, 'cause now you get the speed of containers bringing up, but you get the security and isolation of virtual machines. That's important in the OpenStack community, in our world, because that's what we want out of our clouds. >> Well you both have just mentioned community a few times. I saw one thing coming in to this conference, I'm so impressed by the prominence of community. It's up on stage from the first minutes of the first keynote. People, the call to action, the pleas, for the folks, some of us have been here years and years, for the new folks, please come meet us right? That's really inviting, it's very clear that this is a community. >> Yeah I was surprised, actually, 'cause we saw it when we were asked when up on stage how many people were here for the first time? More than half the audience raised their hand. >> Alan: I was surprised by that as well. >> That was the real surprise. And at the same time, we're seeing, increasingly, users of OpenStack coming in as opposed the people who are in core projects. We're seeing Progressive insurance coming in. We're seeing Adobe Marketing Cloud having over 100,000 cores running OpenStack. That's in addition to what we've had with Walmart and others so the real users are coming. So our communities, not just the developers but the users of OpenStack and the operators. >> That's always an interesting intention for an open-source project right. You have the open-source contributors, and then you have the users and operators. But here at the show right? All of these different technology tracks. Part of community is identity. And so, as the technical work has been split-off, and is actually at another event, these are the users. But it does, with all these other technology conversations, I wonder what the core identity of, I'm an OpenStack member, like what does that end up meaning in a world of open infrastructure? if the projects, if the OpenStack itself is more mature, and as we get up the letters of the alphabet towards Z, How do you all want to steer what it means to be a member of the OpenStack community. >> We met on Sunday as a joint leadership. So we had, it wasn't just a board meeting, it was a meeting with the technical committee, it was a meeting with the user committee. So we're very much pushing to make sure we have those high interactions, that the use cases are getting translated into requirements and getting translated into blueprints and so forth. We're working very, very hard to make sure we have that communication open. And I think one of the things that sets the OpenStack community apart is what we call our Four Opens. We base everything on our Four Opens and one of those is communication, transparency and communication. And that's what people are finding enticing. And one of the big reasons is I think they're coming to OpenStack to do that innovation and collaboration. >> We've seen the same thing with Linux, for example. Linux is no longer just the operating system when people think about the Linux community. Linux community is the operating system and then all of these other projects associated with them. That's the same thing that we're seeing with OpenStack. That's why we're continuing to see, wherever there's a need as people are deploying OpenStack and operating it and running it, all of these other open-source components are coming into it because that's what they really were running, that conglomerate of projects around it. >> Certainly, the hype cycle, and maybe Linux went through it's own hype cycle, back in the day and I'm from Silicon Valley. I think the hype cycle outside the community and what's actually happening on the ground here actually are meshed quite well. What I saw this week, like you said, real users, big users, infrastructure built into every bank, transport, telecom in the world. That's a global necessary part of the infrastructure of our planet. So outside of investment, things like that-- >> Well I hope you can help us get the message out. Because that is, a major thing that we see and we experience the conf, people who are not here. They still, then maybe look at OpenStack the way it was, maybe, four years ago, and it was difficult to deploy, and people were struggling with it, and there was a lot of innovation happening at a very, very fast rate. Well now, it's proven, it's sort of industrial grade, it's being deployed at a very large scale across many, many industries. >> Well it's interesting. Remember, Lew, when we were talking about ethernet fabrics. We would talk about some of SDN and some of these big things. Well, look sometimes these things are over-hyped. It's like, well, there's a certain class of the market who absolutely needs this. If I'm at Telco, and I sat here a couple of years ago, and was like, okay, is it 20 or 50 companies in the world that it is going to be absolutely majorly transformative for them and that's hugely important. If I'm a mid-sized enterprise, I'm still not sure how much I'm caring about what's happening here, no offense, I'd love to hear some points there. But what it is and what it isn't with targets, absolutely, there are massive, massive clouds. Go to China, absolutely. You hear a lot about OpenStack here. Coming across the US, I don't hear a lot about it. We've known that for years. But I've talked to cloud provider in Australia, we've talked to Europeans that the @mail who's the provider for emails for certain providers around the world. It's kind of like okay, what part of the market and how do we make sure we target that because otherwise, it's this megaphone of yeah, OpenStack, well I'm not sure that was for me. >> So, yeah, what's your thought? >> We're seeing a lot of huge variety of implementations, users that are deploying OpenStack. And yeah we always think about the great big ones right? I love CERN, we love the Walmarts. We love China Mobiles, because they're huge, great examples. But I have to say we're actually seeing a whole range of deployments. They don't get the visibility 'cause they're small. Everybody goes, oh you're running on three machines or 10 machines, okay, right? Talk to me when you're the size of CERN. But that's not the case, we're seeing this whole range of deployments. They probably don't get much visibility, but they're just as important. So there's tons of use cases out there. There's tons of use cases published out there and we're seeing it. >> One of the interesting use cases with a different scale has been that edge discussion. I need a very small-- >> In fact that's a very pointed example, because they've had a ton of discussion because of that variety of needs. You get the telcos with their large-scale needs, but you've also got, you know, everybody else. >> It's OpenStack sitting at the bottom of a telephone pole. On a little blade with something embedded. >> In a retail store. >> It's in a retail store. >> Or in a coffee shop. >> Yeah. >> So this is really where we recognizing over and over again we go through these transitions that it used to be, even the fixed devices out of the edge. To change that, you have to replace that device. Instead, we want automation and we want software to do it. That's why OpenStack, moving to the edge, where it's a smaller device, much more capability, but it still computes storage and networking. And you want to have virtualized applications there so you can upgrade that, you can add new services without sending a truck out to replace that. >> Moving forward, do we expect to see more interaction between the Foundation itself and other foundations and open-source projects? And what might that look like? >> It depends on the community. It really does, we definitely have communications from at the board level from board-to-board between adjacent communities. It happens at the grassroots level, from, what we call SIGs or work groups with SIGs and work groups from those adjacent communities. >> I happen to sit on three boards, which is the OpenStack board the CNCF board, Cloud Foundry. And so what we're also seeing, though, now. For example, running Kubernetes, we just have now the cloud provider, which, OpenStack, being a cloud provider for Kubernetes similar in the open way that Amazon had the cloud provider for Kubernetes or Google is the cloud provider. So that now we're seeing the communities working together 'cause that's what our customers want. >> And now it's all driven by SIGs. >> The special interest groups, both sides getting together and saying, how do we make this happen? >> How do we make this happen? >> All right. One of the things you look at, there's a lot going on at the show. There's the OpenDev activity, there's a container track, there's an edge track. Sometimes, you know, where it gets a little unfocused, it's like let's talk about all the adjacencies, wait what about the core? I'd love to get your final takeaways, key things you've seen at the show, takeaways you want people to have when they think about OpenStack the show and OpenStack the Foundation. >> From my point of view it actually is back to where we started the conversation, is these users that are now coming out and saying, "I've been running OpenStack for the last three years, "now we're up to 100,000 or 200,000 cores." That shows the real adoption and those are the new operators. You don't think of Walmart or Progressive as being a service provider but they're delivering their service through the internet and they need a cloud platform in which to do that. So that's one part that I find particularly exciting. >> I totally agree with Lew. The one piece I would add is I think we've proven that it's the right infrastructure for the technology of the future, right? That's why we're able to have these additional discussions around edge and additional container technologies and Zuul with containers testing and deployment. It fits right in, so it's not a distraction. It's an addition to our infrastructure. >> I think the idea around, and that's why we actually broke up into these different tracks and had different keynotes around containers and around edge because those are primary use cases now. Two years ago when I think we were talking here, and like NFV and all the telcos were, and now that has succeeded because almost all the NFV deployments now are based on OpenStack. Now we're seeing it go to containers and edge, which are more application specific deployments. >> I'd love for you to connect the dots for us from the NFV stuff we were talking about a couple of years ago to the breadth of edge. There is no edge, it depends on who you are as to what the edge is, kind of like cloud was a few years ago. >> I mean, we actually have a white paper. If you go to OpenStack.org or just Google OpenStack edge white paper, I think you'll see that there are a variety of cases that are from manufacturing, retail, telco, I saw even space, remote driving vehicles and everything else like that. It's where latency really matters. So that we know that cloud computing is the fastest way to deploy and maintain, upgrade new applications, virtualize applications on a cloud. It's unfortunately too far away from many the places that have much more real-time characteristics. So if you're under 40 milliseconds or whatever, or you want to get something done in a VR environment or whatever, under five milliseconds, you can't go back to the cloud. It also, if you have an application, for example, a security monitoring application, whatever. 99% of the time, the video frames are the same and they're not interesting, don't push all that information back into the central cloud. Process it locally, now when you see frames that are changing, or whatever, you only use the bandwidth and the storage in the central cloud. So we're seeing this relationship between what do you want computed at the edge and how much computing can you do as we get more powerful there and then what do you want back in the centralized data centers. >> Daniel: While you simplify the management. >> Exactly right. >> Orchestration, policy. >> But you still need the automation, you need it to be virtualized, you need it to be managed in that way, so you can upgrade it. >> Alan Clark, Lew Tucker, always a pleasure to catch up. >> Thank you, yeah, >> Thank you so much for joining us. >> It's good to be here. >> John Troyer and I will be back with lots more coverage from OpenStack Summit 2018 here in Vancouver. Thanks for watching theCUBE. (upbeat music)

>> Announcer: From Copenhagen, Denmark, it's the Cube. Covering KubeCon and CloudNativeCon Europe 2018, brought to you by the Cloud Native Computing Foundation, and it's ecosystem partners. >> Hello everyone, welcome back to the Cube's exclusive coverage here in Copenhagen, Denmark for KubeCon 2018, part of the CNCF, the Cloud Native Compute Foundation, part of the Linux Foundation, I'm John Furrier cohost of the Cube, here with my cohost this week Lauren Cooney, the founder of Spark Labs. Got two great guests in the industry here, Lew Tucker, the CTO of Cloud Computing for Cisco Systems and Aparna Sinha who's the group project manager for Google Cloud, thanks for coming on, great to see you guys. >> Great to be here >> Thanks for having us. >> So obviously the two big players, you've got networking, you've got moving up the stack and Google Cloud with all the goodness you have hundreds of people here at this show. Cloud native big, you're cloud native, >> Aparna: Yeah. >> You guys are running the networks a lot of stuff's happening, but the big story's the Kubernetes de facto standard position that's been echoed by many people here, Kubernetes tightly controlled core with a lot of innovation going on around Kubernetes. >> Aparna: Yes. >> When I hear words like de facto standards, it reminds me of the old networking days when the OSI model and the TCPIP was forming. Massive shifts at that point. >> Lew: Yeah, yeah. >> Almost a seminal moment now. >> Yeah but in fact I think in open source it's a different notion than in the old days of standards. Here we've got multiple communities, multiple companies that are working together to create a common platform and that's what I think the success of open source is about. So actually, Kubernetes coming into CNCF has really makes that possible and we just graduated it so we should have a celebration around Kubernetes now has graduated in terms of a CNCF project. >> Yeah and you know one think I would say about de facto standard, I don't take that for granted. Kubernetes is built as a platform that runs anywhere across on premises, data centers, public clouds, runs anywhere but, you know that it will be or is a de facto standard is something that we don't take for granted. We make sure in the community that we're working on increase support for, for example different types of storage with a storage interface standard, different types of networking, with a CNI different types of run times, so establishing those interfaces and establishing those standards is key to making it the platform. But that's certainly the potential of Kubernetes is to be-- >> Yeah I mean it's not the end game, it's the beginning. >> Aparna: It is. >> And the nurturing and making sure that ecosystem with thrive is important. And that's why I want to get your thoughts, 'cause you've got Google and Cisco here so lets talk about first the relationship, you guys are working together. >> Lew: Absolutely, yeah. >> Talk about the relationship between Google and Cisco. >> Sure, I think it came about because we're both recognizing that enterprises for example are incorporating cloud computing as a part of their overall IT strategy. And so they needed to find a way, how can they actually make that happen without companies that are working in both of those areas getting together. So it's very natural I think for the two of us to sort of come together because this way we can take our enterprise customers and using Kubernetes as sort of the foundational platform make it so that they can run applications wherever they want, they can run it in their private data center they can run it in Google Cloud, and we can make this now, to provide a lot of the networking so that you can extend private networks into Google Cloud and vice versa, so I think it's a marriage made in heaven in that way. >> Aparna you're reaction to the partnership. >> Yeah, you know, Google is a very developer friendly, developer focused company, always has been, you know the majority of Google is actually developers so it's a company for developers by developers and you know with Google Cloud actually the irony is we're also a networking company and so there's a nice affinity working with Cisco. Our DNA is very much open source, there's multiple projects that have come out of Google that have been very successful open source projects. I mean Tenser Flow, Kubernetes I think is unique in that we've really created and participated and built a community around it and so with this partnership, we're really excited to have Cisco also be part of the community, certainly with Kubernetes but also the Istio Project. And a lot of the projects in cloud native have come from Google's experience running services at global scale. Kubernetes certainly came that way from the Borg heritage and then Istio also from, from what we call one platform, internally to manage service. >> That's a great point, you brought up scale and it's interesting, it's almost like you have two large scale companies here, you have Cisco with massive scale footprint of enterprises from day one, routers you need to move packets around the internet. You guys have built scale for Google with millions of services out there, millions of users, I mean it's unprecedented. So now as you come into the enterprise, the Cisco relationship is an opportunity to blend the best of Google with the footprint at Cisco, how is that going to work, how's that working and what's the vision? I mean obviously it's a nice match, you've got a great footprint in the enterprise, you've got massive scale with the cloud, bringing that in, moving it out, hybrid cloud obviously, is that the? >> Yeah well we often notice for example as I sort of said, the foundational piece is actually running Kubernetes everywhere and so we just recently announced a Cisco container platform which is based on Kubernetes, that means that enterprises now can develop applications in Google Cloud and then run them in their enterprises or vice verse and then on top of that and we're adding in the networking capabilities, through things such as CSR and things like that to allow us to connect both the enterprise and their public cloud running Kubernetes and then Istio as we're mentioning is this thing on top and I'm, as you know, a big fan of where that really is going to take us because I think one of the things that enterprises want to be able to do is that they want to be able to consume services out of Google Cloud, whether it be in kind of terms of the data services or increasingly AI, intelligence service, Tenser Flow, be able to use as a part of their enterprise applications and so I have within my team for example contributed both in terms of what we're doing in terms of Istio, Kubernetes, I've got people on my team who are bringing for example IPB6 into Kubernetes, that's important because, guess what, service providers also want to move into a container world. And then also Cube Flow and so all of these things are starting to come together so that you can start building applications as an assembly of these services and many other services that I will see coming from the public cloud and Google in particular. >> Aparna, I want to ask you, because this is important to distinguish this Istio trend because we asked a lot of people at the Cube here and in our reporting, okay what's next after Kubernetes? If you have a de facto standard, you have stuff coming around it, an eco system, everyone talks about service mesh and Istio project. >> Aparna: Yeah. >> Now the best thing about infrastructure as code which is dev ops in the cloud is you can make things programmable and automate, so if you look at what Istio's doing, it feels like an application benefit but also an automated networking concept with services. >> Aparna: Sure. >> So you got kind of a new dynamic going on where a lot of dynamic things are happening a lot of services are being provisioned, maybe for the first time. >> Aparna: Yeah, yeah. >> So how do you instrument it? This is going to be a future area of innovation. >> So again going back to that standard, right? That platform that runs everywhere, why is it a standard, why is it becoming a standard and I hear this from our customers, our users, it's because they don't have to train multiple times for multiple different environments, they can really scale their workforce, they can hire people that they trained up in Kubernetes and they can scale that workforce so it applies regardless of where they go and it gives them that mobility and if you think about the eco system around Kubernetes right so Kubernetes is one project, a major big project but then the eco system around Kubernetes has really exploded in the last year it has gone from 4000 projects to 15000 projects and I was looking through those projects and seeing you know, which are the ones that have the most stars and there's actually three projects that stood out as having more than 3000 stars but being new, like in the last year and Istio was at the top of that list and obviously it's very popular in terms of the number of stars but it's only one year old and I don't know how much people know that. >> And I think it's interesting, 'cause I'm going to throw kind of a curve ball here at you and say, you know I'm hearing that the service mesh is actually, people are using it. >> Aparna: Yes. >> But it's actually hasn't been deployed into production, is that the case? >> Aparna: It's starting to be. >> Okay. >> So on GKE, Google Kubernetes Engine we've got customers that are deploying Istio, it's starting. >> Lauren: Okay. >> Again it's a one year old project and then also on premise, using the open source and we've got a program called the EEPE program it's like an early program, they're deploying and using Istio and it tends to be a very nice attach to Kubernetes. >> So what is the use case for that? >> One of the things to understand, it is very new and less than a year old, we're not even at a one dot out yet but the components that go into it, Envoy for example has been battle tested because Istio's made up of, just to get technical, in terms of having proxies that make up the data plane and that's battle testing or whatever. So now we're adding a control plane on top of that, where policy, telemetry, observability, all of that comes to the fore. That's what's new. So bringing that together and so people have and Istio's not the only service mesh, service meshes have actually been made up of these proxies and have you manage them, Istio's just seems to be a better way to the community is agreeing-- >> A proxy can be very inefficient, so I want to just ask a question on that because one of the things that I'm trying to understand is for the average person in tech, not the inside baseball, they're trying to understand why is Istio so powerful. >> Aparna: Yes. >> So is there, what paid points are they solving? >> The easiest way to think about that is we've moved to a microservices architecture and that's so that every development team can focus on their particular area of expertise, they don't want to have to learn networking and everything else, so what we've done is we've offloaded all of the issues around how do you do load balancing, circuit breakers and telemetry off to a service mesh, that allows the developer to dramatically increase their productivity because they're only focused on their one application area and now the operations team brings that together through the networking concept. >> Aparna: Yes. >> So they built a distributed application without having to know very much about the specificity. >> Yes, it's very much that separation of concern and you know Kubernetes has the same principle, it separates you know the infrastructure from the applications and what Istio does, it allows you to manage those applications at scale, visualize them, make them secure and to control them in a scalable way, so you're not writing the service management pieces into the application and the developer is therefor freed from that burden and the application operations team can then manage things like distributing certificates or rotating certificates, right? Those are things you need to do across all of your services. >> So you're bringing us on that system and I know you guys run at scale, hundreds of thousand of services, if not more, I don't know what the number is, millions whatever it is. >> Aparna: Four million containers. >> Tons. >> Aparna: A week! >> So when you talk about that, what I'm hearing and I've talked to the SRE, site reliable engineers before, the roll of the admin is gone to more of an operator and then the operator role is less of an operating, 'cause it's operating only on exception, 'cause if you got policy in the control plane, that seems to be where the action is, is that, am I getting that right? How do you explain that notion of less admin, more operational kind of-- >> There is a change in roles, the administration of the application is not so application specific if you will, right? And I think the best analogy to it is the way we do development at Google, everybody is a developer right? And they write their services but there's a lot of common infrastructure that you do not replicate so for example storage, monitoring, logging, you know publishing your API, you know quotas, rate limiting, chargebacks, billing, all of that is common infrastructure, you write your service, it is immediately using all of that infrastructure, you don't build those things into your application and that has so many benefits, you know you can write your service and it can be global. >> So on time savings, no brainer, automation-- >> And when you change any one of those services that has a monitoring or anything, now you don't have to tell the application development team that that change is happening. >> So this is infrastructure as code, passes the test right? You can program the infrastructure. >> This is services, this is a services world, rather than infrastructure world or an application siloed world, this is the world of services, that's really what we're here for. >> What's the growth in microservices? I'm seeing different stats, can you just give an order of magnitude, just from your own personal experience in looking at the market, how fast is the notion of microservices growing? 'Cause this is really the proxy for the cloud native shift. And you guys are certainly micro services oriented, we talk about this all the time, any data or any anecdotes around growth of microservices? >> Well I mean there's a lot of surveys and most of the surveys point towards, I think containers are a good proxy, you know 88 percent of enterprises are using containers, it's becoming, whether you move to the cloud or not actually containers are basically a way of doing things more repeatedly, giving you efficiency from an infrastructure perspective giving you reliability so that you know you can basically exchange out the hardware and your container environment is still resilient and then giving you that developer productivity, that's becoming something that enterprises are embracing, it seems from these surveys and I think that's the building block for microservices. >> And I think many people are already moved, remember Soho, we've got history here, so we've been trying to move towards this world in which it is a services world and before it was much too heavyweight Ectimel RPC and everything that made it, Soap and everything else, difficult to do these things. Now things have gotten much much easier. So a lot of people are actually doing a services architecture already. And the microservices I think is just a more formal way of doing that at a finer grain and when you get to this finer grain, that's when you need something like a service mesh now to pull things back together again. >> Alright, lets do a plug for the service mesh, people that are watching have got to be intrigued by this conversation, what's the state of the service mesh piece, lot of stars so good good community vibe going on, how do they get involved, what's needed, where's the white space, where's the work being done? >> And I think also John, what skills are needed to actually as a developer, you know we've got a lot of new folks here at that show that are just learning about this and what do they need to know to actually do this and bring this back to their companies. >> If they're, so first of all it's at Istio.io so that's the place to start, there's a lot of very good documentation there, there's very simple examples that can be downloaded so that you can try it out, you can try it out we're using containers so on top of cumulating, you can do it on your laptop, you can do it in the cloud so we're in this wonderful age of the internet in fact that most of the learning is done online and that you can get everything you need online you don't have to walk away from the show with a CD pack or anything else like that. So I would encourage developers to just simply try it out by themselves. Remember then there's Istio developers, people that are actually contributing code into Istio, that's sort of a specialized group of people who are very interested in it. More people, it'll be 10 to one users of Istio than there will be actually of the Istio developer community and the Istio developer community I urge people to get involved 'cause that's where we need to expand the number of use cases and make sure that we're covering the things that are important across the board for variety. >> Yeah, I mean Istio's not that difficult to learn, it's an L7 Proxy. It has a great affinity to Kubernetes project so if you are using Kubernetes or are involved in Kubernetes project then it basically is something that you can deploy into your Kubernetes cluster and you can get started with it. There are a number of trainings and workshops actually at this conference, there were a couple of Istio trainings and there are many tracks and then there's training online, there's a tutorial on the Google site with the GKE and I think on many other companies as well to get started with Istio but it's basically a proxy and in, it's not actually only limited to Kubernetes, you can run it in a VM environment, you can, it basically any service, it is a proxy that intercepts and you know basically can provide load balancing, traffic managing, quotas, all of those things that you expect of a rich proxy and so if you have a networking background it's actually very easy to pick it up. >> That's great, now when you're talking about these kind of, you know, these proxy and things along those lines, I'm sure that there are use cases that are the first ones to pop up, can you talk a little bit about that. >> Yes, I think the first use case of Istio is actually Canary, Canary deployment, so being able to route traffic from one version of your application to another version of your application. Make sure that that, lets say it's an upgrade, you know, make sure that that's running well and then gradually route more of you're traffic. So that's a very developer centric use case that appeals and then of course security. And that's a less developer centric, more control and ops perspective and then observability and again, control, also an ops perspective, those are the three main use cases. >> Okay. >> That's great, that's awesome and you have Cube Flow going on here, you guys had a couple of Google folks on. >> Yes, so I mentioned three projects that are the top projects, Istio number one, number two is Cube Flow, again within the last year, more than 3000 stars and then the last one is Scaffold. >> Great stuff, I love the programmability, automation. >> And one of the things that we mentioned before, because when people hear proxy, they think of the old time, actually when you've used a proxy and a DNS which now it's very high performance and one of the things that you're seeing also, it connects up with other open source projects such as FDIO which is VPP, which is now being used, integrated into envoy which is a proxy, so the data plane itself, I think is going to be more efficient than people trying to do their own network. >> That's a good point Lew, I mean people think proxies are inefficient, it's a hack, a bridge between point A and point B. >> Yes, that was a lot of the initial skepticism around this, so you know, this was about two years ago we were sitting around saying okay, Kubernetes, what's next? And we came up with a open service broker, so you can consume services and then the early start of Istio, starting with Envoy and then building the service mesh around that and that was indeed one of the early concerns as well, will it be too heavy, will it add latency, will there be performance bottle neck, I think a lot of that concern has been addressed and it will continue to be addressed. >> Well we got to wrap up be I want to get some comments from you guys, reaction to the show here in Europe, obviously Google is in big force, Istio is prime time, you predicted that in Austin, it looks like it's tracking beautifully, reactions, what did you walk away with here from this event? What observations, revelations, surprises, share some color for the folks that couldn't make it. >> We were talking earlier about the number of use cases now that we've seen that our customers are coming in and describing how they're using Kubernetes and other of the technologies making up the cloud native world. And that allows people to learn and so that's what I'm always excited, because I can sit there in the audience and you can see everybody else going oh, I'm going to apply that to what I'm trying to do and just the breath now of-- >> John: So you're surprised at the uptake, or you're happy with the uptake, that's your reaction? >> Yeah and I think you would agree too. >> Yeah, I think the reason I come to KubeCon is to meet users, it's a user conference, and with each passing KubeCon, it becomes more and more user-centric so some of the talks here, the takeaways that I had, you know the folks from Spotify talked about how users need to get more involved and the benefits of getting more involved in the community, that was a very inspiring talk. Another talk yesterday talked about how Kubernetes needs to be a platform for everything, not just cloud native, but actually also Legacy and so these are points. And then the third piece, a lot of users talking about multicloud, right and making that a reality, these are things that I'm taking away as you know, users are doing this today. >> John: Multicloud certainly is a path, people have that outcome in mind. >> Yes. >> Doing the work now to get there. Thanks for coming on, Aparna and Lew. >> Thank you. >> Great to have you guys, you're awesome, senior folks in the industry, experienced executives, driving the change here, cloud native, microservices architecture, whole new modern paradigm shift in software architecture, here at KubeCon, Kubernetes, Istio, hot projects, Cube Flow and more here on the Cube, live coverage here in Copenhagen, stay with us for more coverage, after this short break. (upbeat music)

>> Announcer: Live from Austin Texas, it's theCUBE. Covering KubeCon and CloudNativeCon 2017. Brought to you by Red Hat, the Linux Foundation, and theCUBE's ecosystem partners. >> Welcome back everyone, this is theCUBE live in Austin, Texas for our exclusive coverage at the CloudNative Conference and KubeCon with Kubernetes via theCUBE. theCUBE which we're live, and 8 years running, I'm John Furrier, the founder of SiliconANGLE Media, my colleague, Stu Miniman. And I'm excited to have Cube alumni, and its distinguished industry legend, Lew Tucker, Vice President CT of Cloud Computing at Cisco Systems. Welcome back to theCUBE, great to see you. >> Great to be back, it's one of my favorite shows. >> Lou, we've had many conversations over the years, and it's always great to have you on because you're on the cutting-edge perspective, but you have a historical view as well, you've seen many waves of innovation. And obviously you own lots of property in the Computer's History museum, your resume goes on and on. But, you got to admire this community. Three years old, it was you, me and JJ we're sitting around at OpenStack in Vancouver three and a half years ago, having a beer after the event one of these days, and we were talking about Kubernetes, and we were really riffing on orchestration and kind of shooting the arrow forward, kind of reading the tea leaves. And we were predicting inter-clouding, inter-networking, Cisco core competency, the notion of application developers wanting infrastructure as code. We didn't actually say mircoservices but we were kind of describing a world that would be microservices, and this awesomeness that's going on with the Cloud. What a ... [Lew] You were right. You were right. >> We were right, it wasn't me, it was the community. This is how communities operate. >> It is. I think that what we're seeing, and particularly in these open source communities, you're getting the best ideas. And therefore, a lot of people are looking at this future space, and then we bring the kids out of the communities, get the projects that we work together on it, and that's how we move it forward. >> You've been a great leader in the community, just want to give you some props for that, you deserve it, but more importantly is just the momentum going on right now. And I want to get your take, you're squinting through the growth, you're looking at the innovation, looking at the big picture, certainly from a Cisco perspective, but also as an industry participant. Where's the action? Obviously containers grew, that tide came in, a lot of boats floated up. We saw microservices boom, then we now, Kubernetes' getting better and better, multiple versions, it's - some say commoditized, some would say more inter-operable. Really, that's the connection tissue for multi-cloud. >> Exactly right. >> Do you see the same thing? Where's the action? >> So, cloud computing is going everywhere now. And so it's natural that we see one of the next phases of this is in the area of multi-cloud. The customers, they are in public cloud, they have private data centers where they want to run similar applications. They don't want to have a completely different environment. What they really want to see is a consistent environment across which they can deploy applications. And that consistent environment also has to have security policies, authentication services, and a lot of these things. And to really drive the innovation, what I find interesting is that, the services that are coming now out of public cloud, whether it be an AI or server list, event-driven kind of programming models. Enterprises want to connect into them. And so one of the things I think that that leads to is that you're beginning to hear talk now, just beginning to hear it, which is this project called Istio. Which is a service mesh, because what that really allows -- >> John: What's the project name? >> It's called Istio? >> John: Istio. >> Lew: I-S-T-I-O. >> Okay. >> dot I-O. Everything is open source, it's a project that's contributed to by Google, and IBM, and Lyft, and now Cisco's getting involved in it, as well. And what it really plays into is this world of multi-cloud. That now we can actually access services in the public cloud from your own private data center, or from the public running applications in a public cloud, you can access services that are back in your data center. So it's really about this kind of application-level networking stack, that means that application developers can now off-load all of that heavy work to a service mesh, and therefore that'll accelerate application development. >> So it's interesting, I heard some talk about things like Envoy edge and service proxies, and service proxies have been a nice tool to kind of cobble together old legacy stuff, but now you're seeing stuff go to the next level. This data I heard in the keynote, I want to get your reaction 'cause this kind of jumps out at me. Lyft had created a mesh over hundreds of thousands of services over millions of transactions per second. Lyft. Uber's got some stuff on the monitoring side, Google's donated - This is large scale cloud guys who had to build their own stuff with open source, now contributing all this stuff back. This is the mesh you're talking about, correct? >> This is exactly right, yes. Because what we're seeing is, we've talked about micro services, and Kubernetes is about orchestration of containers. And that has accelerated application development and deploying it. But now the services, each one of those services still has all of this networking stuff they have to deal with. They have to deal with load balancing, they have to deal with retries, they have to deal with authentication. So instead, what is happening now, we're recognizing these common patterns, this is what the community does (mumbles). You see a common pattern, you abstract it, and you push that out into what is known as side cars now, so that the application developer doesn't have to -- the application doesn't get changed when you need to change, like, 'bring up a couple more services over here' 'put this on a different cloud'. The individual components now are unaffected by that, because all of that work has been offloaded into a service mesh. >> Lew, bring us inside a little bit. Dig into that next level of kind of networking. 'Cause you speak, kind of networking administrator, running around the data center, you get everything from pulling cables to zoning and everything like that. Now it's multi-cloud, multi-service, everything's faster. Through all the architect, the person running it, automation ... We don't have an hour, but give us a little bit about what it means to be a networking person these days. >> Well, it's interesting, because one of the things that we know application developers did not want to become, is to be a network engineer. And yet to do a lot of what they had to do, they had to learn a lot of those skills. And instead they would rather set things up by policy. For example, they would like to be able to say, 'if I'm deploying now the version two of my application', it's a classic thing we talk about in this deal, 'the next version we want to just direct' '5% of the traffic to it, make sure it's okay' 'before we turn over the whole thing.' You should be able to do that at the application level, and through a service mesh that is built in networking at the application level, the application guys can do it. Now the role of the network engineer is still the same, they have to provide the basic infrastructure to allow that to happen. And for example, a lot of the infrastructure now is extending the Cloud from public cloud through the cloud BPM services that they have back into the data center. So Cisco, for example, is putting technologies that are running at AWS and at Google, and Azure, that allows that to come back into the data center. So we can run Cisco virtual routers in the Cloud, connected back up in the data center. So their standard networking policy that the networking engineers really want to see enforced, they can be assured that that's enforced, and then Istio layers on top of it. >> And that's decoupled from the application. >> Right. Right. >> This is what we've been talking about since 2010, our eighth year of theCUBE, infrastructure as code. This is what DevOps was all about, and now it's evolving mainstream. >> Absolutely right. You really want infrastructure to be as boring as possible. And capable and then secure. And now give a lot more control over to the application developer. And we also know, right now it's really based largely on Kubernetes, it's a great example, but that will connect into virtual machines, it will connect into legacy services. So all of this has to do with connecting all of those pieces that are today in an enterprise, moving to a public cloud. And that transition doesn't happen wholesale. You move a couple over. >> Lew, one thing. I want you to look back, John talked about - We interviewed a bunch of years in OpenStack. What's your take on the role of OpenStack today, is there still a roll in OpenStack, and how's that kind of compare/contrast to what we're doing here? >> Happy to answer, because I actually am on both boards, I'm on the CNCF board and I'm on the OpenStack board, and I have contributors on my teams to both efforts across the board. And I think that the role that we're seeing of OpenStack is Openstack is evolving also, and it's becoming more embracive and it's becoming about open infrastructure. And it's really about, how do you create these open infrastructure plays. So it is about virtual machines, and containers, and bare metal, and setting up of those services. So Kubernetes works just great on top of OpenStack, and so now people get to have a choice, because one of the hard things I think for, mostly enterprise developers and everything else, is that the pace is changing so fast. So how do they try out some of the newer technologies that still can be connected back into the existing legacy systems? And that's why I think that we're seeing the role for OpenStack is to make that, you can put it with virtual machines, you can stand them up in there, and you can have the same virtual machines essentially running in the Cloud. >> So virtual machines versus other approaches has come up as a trade off, we heard in the keynote, between cost - I mean, speed, and security. Security's super important. So let me get your thoughts on how that plays out, because we've got the pluggable logger tech, which is another big theme we heard in the keynote, which is essentially just meaning, having a very focused, leverageable piece of code that can be connected into Kubernetes. But with VM's now, some are saying VM's are slow when you're trying to do security, but you want slow, boring when you need it, but you want speed and secure when you need it, too. How do you get both out of that? >> Without being too geeky in terms of, a virtual machine is emulating an entire computer. And so it looks like a computer, so you're running your traditional applications on top of a virtual machine. The same as they would if they were running on what we call, bare metal machine. So that is by necessity, much heavier. You're bringing around a whole operating system and things like that. Containers -- >> And there's a role for that, too. >> There's absolutely a role for that. >> Now containers? >> But containers, then, are really much more about, it's an application packaging exercise, so that you can say, 'I'm going to run this application, I just want all its dependencies packaged up.' I'll assume there's an operating system there. I'm going to count on the fact that there's a single operating system. So you can spin up containers, they're much more lightweight, much more quickly. And now there's even things such as Kata Containers that are coming out of Intel, which is now merging those technologies. >> Male: The clear containers. >> Clear containers, they came originally Clear Containers, and now it's merging, because we're saying, 'we want the security and the protection that you get' 'with a virtual machine, tied into, like the VTX' 'instruction set, in the hardware'. So you can get that level of security, assurances, but now you get the speed of containers. So, I think we're continuing to see the whole community evolving in this direction and making things easier for application developers, faster to do. They're increasing in scale, so management and orchestration - we talked about that three years ago, that that would be a big issue, and guess what? Of course it is. That's exactly what Kubernetes is addressing. >> And the role of the data is going to be critical, this is where a lot of people in the enterprise that we talked to, love the story, they love the narrative, but they're hearing things that they've never heard before and they kind of, slow down. So I'd like you to take a minute, Lew, and explain to the person watching, CIO, chief architect, network guy, whatever - what the hell is this Kubernetes hubbub about? What is Kubernetes, from your perspective? How would you wrap that up and describe the, what it is, and the impact to the customer? >> So, formally it's an orchestration of the container. So what that means is that, when you're developing an application, if you want it to be resilient, you want several instances of that application running, and you want traffic, then, to be low-balanced across it. Kubernetes provides that level of orchestration, to make sure there's always three running. If one fails, it can bring up another one. And it can do that completely automated. So it's a layer that really manages the deployment of containers. As an application developer, you still write your application, you package it up into a container, could be a doc or a container, and then you deploy it using Kubernetes in there. What is interesting, and I think that this is what we've recognized in this last year, I think, is that Kubernetes has a very simple networking model. Which is basically that of having a way to load-balance across multiple containers and keep them running. If you have anything more complicated about different services that you want to talk to from those containers, that may be different places in the universe, we don't have a mechanism for doing that. And everybody was having to write their own. So again, that's where the idea of a service mesh, STF -- >> John: That's where the meshing comes in. >> That's where the mesh ... >> Hundreds and hundreds of services. >> Lynkerd has been doing it for a while, Envoy. >> And Lyft and Uber, they had to do it because they had massive explosion of devices. >> Right, exactly right. And so that's why getting together the code from Lyft and Envoy, adding a control plane to it, which is what Istio really is about, brings that out, too. >> Sounds like an operating system to me, but Lew I one more question for you. You mentioned in, as you described it, Kubernetes, isn't that auto-scaling? If I'm familiar with AWS, isn't that just auto-scaling? Or is it auto-scaling for application instances? Or is auto-scaling more - defined differently? >> It does do the scaling part, it does the resiliency part, but it has a very simple model for that. And that's why you need to have other - but it's a beginning of that orchestration layer. >> Because at the container level, it has all those inherent problems. >> Right. And it can make sure to keep those containers alive and well, and manage the life cycle. >> John: And that's the difference. >> And that's the real difference. Whereas the auto-scaling from Amazon, as a service, is purely a networking capability then tied into bringing up new instances. >> So this is like auto-scaling on steroids. >> It is. But one of the differences also is that Kubernetes and what we're doing here is all open source. So you can run it anywhere. You don't get, a lot of people are very concerned about being locked in to, it used to be, you were locked into Oracle, or to Microsoft, or Java, on premise of things like that. >> Whatever proprietary operating system. >> And now they have concern being locked into these services that are in the public cloud providers. And what we're seeing now with Kubernetes and we're seeing in almost everything around here, by open sourcing them, the advantage is now the enterprise can run the same technology inside, without being locked into a vendor, as they do in the public cloud. >> Lew, so we spent a bunch of time talking about multi-cloud. Some of the more interesting pieces is what's happening at the edge, and IOT. We've heard Cisco talking about it for many years, networking of course important. What's your take, what are you working on, with regards to that these days. >> There's a couple new trends that we've been, IOT is actually now really getting realized, I think, because it is pushing a lot of the computing out to the edge, whether it be in cell phone towers or base stations, retail stores, that kind of edge. At the same time, we're seeing this multi-cloud that we want the big services. If I want to use a machine learning service, I want to use it up in the cloud, and I need to now connect it back to those devices. So multi-cloud is really about, addressing how do you develop applications that run across multiple, in the cloud, on the edge, in an IOT device. There's also, I think you've probably been hearing, server lists, and function as a service. These are, again, a lighter weight way to have kind of an event-driven model, so that if you have an IOT device and it just causes an event, you want to be able to spawn essentially a service, in the cloud, that only runs to process that one event, and then it goes away. So you're not paying to run instances of virtual machines or whatever, sitting there waiting for some event. You get a trigger, and you only pay - so it has this micro-billing capability as a part of it - so that you just can use only the resources. We finally realized the promise that we always had in cloud computing, which is that, pay for only what you need, for what you use. And so this is another way to do that. >> Lew, it's great to have you on theCUBE again, good to see you, great to get the update. I'd like to ask you one more final question to end the segment here. You always have your ear to the ground, reading the tea leaves, you have a unique skill to understand the tech at the root level. What's coming next? If we go back and we have these nice conversations where we're riffing on what's coming out in the next two, three years. It's unclear to some of the visionaries out there, so I got to ask you, what's going to be hot, what do you see emerging? As we saw Kubernetes and discussed, we couldn't have predicted this, I couldn't have. I knew it was going to be hot, I knew it was going to be big, but not this big, changing industry. What do you see out there? What would be the conversation you'd say, 'You know, we've got to watch this,' 'this is going to be a value creation opportunity,' 'enabling technology that's going to make a lot of things' 'flow nicely' - what kind of tech should ... >> Well, it may be a trite answer, 'cause I think a lot of people are seeing the same thing, is that we're actually laying the groundwork here, when we talk about multi-cloud, things that are distributed across multiple things. Accessing different services. I'm still a big believer in, it's going to be in the strength of those services. Whether they be speech-translation services, whether they be recommendation engine, whether it means big data services. Access to those services is what's going to be important. Three or four years from now, we're going to be talking about the intelligence -- >> Without a lot of heavy lifting to integrate it. >> Yes, that's exactly the point. We want it so that somebody can almost visually wire up these things, and take advantage of tremendously powerful machine-learning algorithms. That they don't want to have to hire the machine-learning experts to do it, they want to use that as a service. >> Slinging API, slinging services, wiring things up, sounds like it's an operating system to me. >> It's always an operating system at the end of the day. >> Lew Tucker, Vice President and CTO at Cisco Systems. Industry legend, on the board of CNCF, the fastest-growing organization, where projects equal products equals profit, and of course the OpenStack. Lew, thanks for coming on theCUBE, I'm John Furrier with Stu Miniman, back here live in Austin for more live coverage of CloudNativeCon and KubeCon, after this short break. >> Lew: Thank you.

(upbeat instrumental music) >> Narrator: Live from Las Vegas, it's the Cube. Covering AWS re:Invent 2017, presented by AWS, Intel, and our ecosystem of partners. >> Hey, welcome back everyone. This is the Cube, live here in Las Vegas for AWS re:Invent 2017. I'm John Furrier, the cohost of the cube. My cohost, Keith Townsend, here for our fifth year in a row, covering the thunderous growth of Amazon Web Services as they continue to not only nail the developers and the start ups, but continue to win the enterprise. Our next guest, Lew Cirne, who's the founder and CEO of publicly held New Relic, a very successful startup, one of the most admired places to work in the Bay area, and in tech. Lew, great to have you on the Cube, welcome. >> Hi. >> John: Hi, first time. >> I know, so great to be here. I can't believe it's the firs time. I've been such a fan for a long time. >> Now you're an alumni, the benefits. >> Here I am. >> All the benefits of being an alumni, all those season tickets to all of our games. I gotta, I want to just share something with the audience out there. You're the only public CEO that I know that's been on the Cube that writes software, has a GitHub account, and manages a publicly held company. So that's a unique thing and I want to just say it's awesome. >> It's a full plate, that's for sure, but I'm the luckiest guy in the world because I've always loved building software since my first computer I got in the Christmas of 82, what's that, 35 years ago now, and, and so, what an exciting time to be someone who's passionate about software and technology. Look what's going on in the cloud, and so I've been fortunate enough to start this company that's participating in this revolution in technology, so it's great. >> You guys are always in the cutting edge. I noticed, you guys get your hands dirty, you get in there, you're coding away, but you guys are very successful in a very important area right now, which is instrumentation of data. >> Lew: Absolutely. >> In applications, so I really want to get your, kind of your thoughts on the landscape. We were talking about on our intro analysis, that we're seeing a renaissance in software development, where with open source growing exponentially, a new software methodology's coming out, where there's just so much going on. Multiple databases within one app, IOT, so a new kind of thinking is evolving. What's your take on that? >> Well I think it's really important to understand why all of this is happening. So why are there 40,000 people here in Las Vegas for re:Invent? Why are people consuming the cloud at just a dizzying pace? It's not just for the sake of cloud computing, it's because there's this business imperative to compete on software, so if you look at where software was 15, 20 years ago, software was a tool to reduce costs and automate things in the back end. Now your software's your business. If you are a large global bank, your app has more to do with your customers' experience and satisfaction than the branch because nobody walks through a branch anymore, so now the best software developing bank is going to be the winner, so if you think about that's what's going on and that's why they're adopting new technologies to move faster, so where do we fit in? If you're going to compete on your software, and by competing you have to build the best stuff, the fastest as possible, so you have to get to market quickly, and that means you've got to change a lot. Anytime you're changing something rapidly, that introduces risk. New Relic de-risks all of that rapid movement by instrumentation, by measuring everything in the software. Those measurements help you move faster with confidence. >> And also I would say that you, not only does that create risks, but new software creates risks, so I'm doing server-less, I want to try the new service because it could A, add value, AKA Lamda or whatever, so a new, maybe time out is needed, so all kinds of new things or elements are going on inside the software stacks. >> Yes, and more complex than ever before, right, so you introduce things like Lambda server-less function computing, call it what you will, and you integrate it with, you know, microservice architecture, and so instead of one monolith, you might have hundreds, or even some of our customers have thousands of independent services, all supposed to be working in flawless concert in order to deliver a great customer experience. How on earth do you make sense of whether that's all working? Well it involves collecting an enormous amount of data about everything that's going on in real time, and then applying intelligence to that data using what we call at New Relic applied intelligence to tell our customers in real time, here's what's working well, and more importantly, here's what's going to be a problem if you don't take immediate action. And that's, you know, that's a hard problem to solve. We think we're the best at doing it. >> And that's critical too, because like you said, if it crashes, or there's some sort of breach hold that comes out there, all the stuff is at risk. >> And like, customers have just incredibly high expectations that only get higher and higher every day. Like, you know, one of our customers is Domino's and it's an amazing thing where you pre-order your pizza and you can see, second by second, how your order is doing, right? They put your pizza in the oven, then they took the pizza out of the oven, and I see that in phone, and that gives, that's that feedback that's valuable to me, right? So long as it's working, right? >> John: I'm hungry now. >> So we, we've ravished this word digital transformation all the time. >> Oh yeah, it's a little overused, but. >> It is a little overused. But melding that physical world with cold. I love it that you're a developer. First off, what's your favorite language? >> Oh geez, it really depends on the project. I'm really getting into, I love React right now on the front end. I'll still do Java when it needs some heavy lifting, Ruby for rapid prototyping. It really depends on the task at hand. >> So the value of reducing friction from a developer seeing a problem, needing to solve that problem, and getting the resources needed to solve a problem, AWS does a wonderful job of saying, you know what, developer, give me your credit card, we'll give you all the tools you need. Where is the first stumbling block because this is new capability, net new over the past few years? Where's the first set of stumbling blocks when developers reduce friction, get to that first level contact with the branch manager of the pizza store, where does it fall apart and New Relic comes in to help? >> Look, how many times have you ever had a developer or a tech or someone that works on my machine, right? >> Exactly, worked on my laptop. I don't know why it didn't deploy well in production, it worked perfectly fine on my laptop. >> I really, I started thinking about and solving this problem 20 years ago now. The notion of less instrument Java code because I was frustrated with the stuff that worked on my laptop. I couldn't understand why it didn't work when a customer used it, and everything prior to the customer using the software is nothing but sunk cost. There is no value in the software you're building until it runs in production. How well it runs in production is what determines the fate of the application. And that's where New Relic comes in, is we feel like alright, let me take you back to the ancient days of like turn of the century, 2000, nothing went to production without QA. Now nothing goes to production without instrumentation. >> Yeah, but now Agile's there, so the old days was a crab. You built a software product, but you didn't know if it was going to work until it went into production with QA. Now you're shipping stuff fast, so it's still. You've got that dev off mindset, but it's in QA. >> One of our customers, Airbnb, deploys more than a thousand times a day. And this is not a small, low load site. I mean like every deploy has to work, otherwise millions of people are impacted and it's the whole business, and it's a big business, so you're talking about a pace of innovation and change that cannot be managed with a traditional QA cycle. I've, of course testing's important, but instrumentation's more important than that. >> Lew, I want to ask you an important question because I asked Andy Jassie this last Monday when I had a one on one with him. A lot of people that are entering ecosystem for Amazon is new, that are new, or considerably, Amazon's the big, they're fearful, it's always going to be that way. He highlighted your company, New Relic, and said they're an amazing part, they do extremely well, even though they introduced Cloud Watch, which because some customers just wanted it, they have monitoring, but you guys are so much better. I said that, but if he implied it, obviously you're doing well. So the successful participation of the ecosystem is there. You can be successful in the Amazon ecosystem. >> Absolutely, it's a great partnership. >> So what's this formula for a new entry coming in or someone who's here that needs to find some white space? How do you read the tea leaves to know where not to play and where to play? >> You know, it just comes down to the fundamental good thought process you use when you're thinking about approaching your customer too. Don't think about what's in it for me, the Amazon partner. What's in it for Amazon? How do you make them more successful? And so when I imagine myself as Andy, who is like, what an incredible job he's done, but what Andy, what's top mind of Andy is how do I get more customers consuming more of Amazon faster, right? All of Amazon, all of Amazon's web services, and so we solve a problem for Andy and his team. We help our customers consume Amazon faster because we give them the confidence to consume more and move faster, and there's data to prove it. When Amazon asks their customers that aren't yet New Relic customers how much they're consuming and how fast, they get a slower rate of adoption than they do for the cohort that uses New Relic, and so it's in our mutual interest to go to market together because we help them consume more, and so I. >> John: Build a good product. >> Build a good product. >> John: Customer value. >> Think about how you help your partner be successful. Talk in that language, don't talk in language. >> Alright, so personal question. So you and I, pretend we're sitting here, having a beer, you're playing the guitar. >> A little light. >> I'm singing some tunes and Keith's our friend. He says I'm in trouble, I'm a CIO. I've got a transformation project. I don't know what to do. Which cloud do I use? How do I become data driven? Guys, help me out. Lew, what do you say? >> I say first of all, you have an instrumentation strategy. Everything, if you're a CIO in a large organization, you don't have one, two, three, or four projects. You have dozens, if not hundreds, sometimes thousands of applications and services that are all running, and you've got, I haven't met a CIO that doesn't say they've got too many monitoring tools. So you need an instrumentation strategy. Nothing should run in production without instrumentation. That's not just the service light stuff that runs on EC2, it's also every click that runs. You know, when Dunkin Donuts, which has been a longtime customer of ours, and they run in the Amazon Cloud, you know when you pre-order that doughnut, we track the tap, how long it takes from the phone all the way through the cloud services, all that's fully instrumented, so if you're a CIO, you say I can't be tactical with instrumentation. If I'm going to move fast and compete at my software, nothing should run in production without education. >> John: That's native. >> That's right. >> Foundational. >> Foundational. It's a core requirement to run in production if you're going to move at any level of speed, so establish that strategy, and then we think, we offer the best instrumentation, certainly the best value, the most ubiquitous, the easiest to use, the most comprehensive, and then we make the most sense of it, but you could pick another, you know you could pick another strategy. Some people do the heavy lifting of manually instrumenting all their code. We just don't think that's a good use of your developer time, so we automatically do that for you, but have a strategy and then execute to it. >> Awesome. Lew, congratulations on a blowout quarter. I won't even get you to comment on it, just say that you guys had a great quarter, stocks at an all time high, all because you guys are doing a great product. Congratulations and great to have you on the Cube. >> We're delighted to be here. I've honestly, I've been a longtime fan. It means a lot that you could have me on, and we really enjoy partnering with Amazon, and what a great show. >> Yeah, super successful ecosystem partner, one of the best, New Relic, based out of San Francisco, here with the founder and CEO, also musician, writes code, gets down and dirty, runs a publicly held company. He's Superman. Lew, thanks for coming on the Cube. More live data and action here on the Cube after this short break, stay with us. (upbeat instrumental music)

>> Narrator: From theCUBE studios in Palo Alto in Boston, connecting with thought leaders all around the world. This is a CUBE conversation. >> As you know by now, Jeff Bezos, CEO of Amazon, is stepping aside from his CEO role and AWS CEO, Andy Jassy, is being promoted to head all of Amazon. Bezos, of course, is going to remain executive chairman. Now, 15 years ago, next month, Amazon launched it's simple storage service, which was the first modern cloud offering. And the man who wrote the business plan for AWS, was Andy Jassy, and he's navigated the meteoric rise and disruption that has seen AWS grow into a $45 billion company that draws off the vast majority of Amazon's operating profits. No one in the media has covered Jassy more intimately and closely than John Furrier, the founder of SiliconANGLE. And John joins us today to help us understand on theCUBE this move and what we can expect from Jassy in his new role, and importantly what it means for AWS. John, thanks for taking the time to speak with us. >> Hey, great day. Great to see you as always, we've done a lot of interviews together over the years and we're on our 11th year with theCUBE and SiliconANGLE. But I got to be excited too, that we're simulcasters on Clubhouse, which is kind of cool. Love Clubhouse but not since the, in December. It's awesome. It's like Cube radio. It's like, so this is a Cube talk. So we opened up a Clubhouse room while we're filming this. We'll do more live hits in studio and syndicate the Clubhouse and then take questions after. This is a huge digital transformation moment. I'm part of the digital transformation club on Clubhouse which has almost 5,000 followers at the moment and also has like 500 members. So if you're not on Clubhouse, yet, if you have an iPhone go check it out and join the digital transformation club. Android users you'll have to wait until that app is done but it's really a great club. And Jeremiah Owyang is also doing a lot of stuff on digital transformation. >> Or you can just buy an iPhone and get in. >> Yeah, that's what people are doing. I can see all the influences are on there but to me, the digital transformation, it's always been kind of a cliche, the consumerization of IT, information technology. This has been the boring world of the enterprise over the past, 20 years ago. Enterprise right now is super hot because there's no distinction between enterprise and society. And that's clearly the, because of the rise of cloud computing and the rise of Amazon Web Services which was a side project at AWS, at Amazon that Andy Jassy did. And it wasn't really pleasant at the beginning. It was failed. It failed a lot and it wasn't as successful as people thought in the early days. And I have a lot of stories with Andy that he told me a lot of the inside baseball and we'll share that here today. But we started covering Amazon since the beginning. I was as an entrepreneur. I used it when it came out and a huge fan of them as a company because they just got a superior product and they have always had been but it was very misunderstood from the beginning. And now everyone's calling it the most important thing. And Andy now is becoming Andy Jassy, the most important executive in the world. >> So let's get it to the, I mean, look at, you said to me over holidays, you thought this might have something like this could happen. And you said, Jassy is probably in line to get this. So, tell us, what can you tell us about Jassy? Why is he qualified for this job? What do you think he brings to the table? >> Well, the thing that I know about Amazon everyone's been following the Amazon news is, Jeff Bezos has a lot of personal turmoil. They had his marriage fail. They had some issues with the smear campaigns and all this stuff going on, the run-ins with Donald Trump, he bought the Washington post. He's got a lot of other endeavors outside of Amazon cause he's the second richest man in the world competing with Elon Musk at Space X versus Blue Origin. So the guy's a billionaire. So Amazon is his baby and he's been running it as best he could. He's got an executive team committee they called the S team. He's been grooming people in the company and that's just been his mode. And the rise of AWS and the business performance that we've been documenting on SiliconANGLE and theCUBE, it's just been absolutely changing the game on Amazon as a company. So clearly Amazon Web Services become a driving force of the new Amazon that's emerging. And obviously they've got all their retail business and they got the gaming challenges and they got the studios and the other diversified stuff. So Jassy is just, he's just one of those guys. He's just been an Amazonian from day one. He came out of Harvard business school, drove across the country, very similar story to Jeff Bezos. He did that in 1997 and him and Jeff had been collaborating and Jeff tapped him to be his shadow, they call it, which is basically technical assistance and an heir apparent and groomed him. And then that's how it is. Jassy is not a climber as they call it in corporate America. He's not a person who is looking for a political gain. He's not a territory taker, but he's a micromanager. He loves details and he likes to create customer value. And that's his focus. So he's not a grandstander. In fact, he's been very low profile. Early days when we started meeting with him, he wouldn't meet with press regularly because they weren't writing the right stories. And everyone is, he didn't know he was misunderstood. So that's classic Amazon. >> So, he gave us the time, I think it was 2014 or 15 and he told us a story back then, John, you might want to share it as to how AWS got started. Why, what was the main spring Amazon's tech wasn't working that great? And Bezos said to Jassy, going to go figure out why and maybe explain how AWS was born. >> Yeah, we had, in fact, we were the first ones to get access to do his first public profile. If you go to the Google and search Andy Jassy, the trillion dollar baby, we had a post, we put out the story of AWS, Andy Jassy's trillion dollar baby. This was in early, this was January 2015, six years ago. And, we back then, we posited that this would be a trillion dollar total addressable market. Okay, people thought we were crazy but we wrote a story and he gave us a very intimate access. We did a full drill down on him and the person, the story of Amazon and that laid out essentially the beginning of the rise of AWS and Andy Jassy. So that's a good story to check out but really the key here is, is that he's always been relentless and competitive on creating value in what they call raising the bar outside Amazon. That's a term that they use. They also have another leadership principle called working backwards, which is like, go to the customer and work backwards from the customer in a very Steve Job's kind of way. And that's been kind of Jobs mentality as well at Apple that made them successful work backwards from the customer and make things easier. And that was Apple. Amazon, their philosophy was work backwards from the customer and Jassy specifically would say it many times and eliminate the undifferentiated heavy lifting. That was a key principle of what they were doing. So that was a key thesis of their entire business model. And that's the Amazonian way. Faster, cheaper, ship it faster, make it less expensive and higher value. While when you apply the Amazon shipping concept to cloud computing, it was completely disrupted. They were shipping code and services faster and that became their innovation strategy. More announcements every year, they out announced their competition by huge margin. They introduced new services faster and they're less expensive some say, but in the aggregate, they make more money but that's kind of a key thing. >> Well, when you, I was been listening to the TV today and there was a debate on whether or not, this support tends that they'll actually split the company into two. To me, I think it's just the opposite. I think it's less likely. I mean, if you think about Amazon getting into grocery or healthcare, eventually financial services or other industries and the IOT opportunity to me, what they do, John, is they bring in together the cloud, data and AI and they go attack these new industries. I would think Jassy of all people would want to keep this thing together now whether or not the government allows them to do that. But what are your thoughts? I mean, you've asked Andy this before in your personal interviews about splitting the company. What are your thoughts? >> Well, Jon Fortt at CNBC always asked the same question every year. It's almost like the standard question. I kind of laugh and I ask it now too because I liked Jon Fortt. I think he's an awesome dude. And I'll, it's just a tongue in cheek, Jassy. He won't answer the question. Amazon, Bezos and Jassy have one thing in common. They're really good at not answering questions. So if you ask the same question. They'll just say, nothing's ever, never say never, that's his classic answer to everything. Never say never. And he's always said that to you. (chuckles) Some say, he's, flip-flopped on things but he's really customer driven. For example, he said at one point, no one should ever build a data center. Okay, that was a principle. And then they come out and they have now a hybrid strategy. And I called them out on that and said, hey, what, are you flip-flopping? You said at some point, no one should have a data center. He's like, well, we looked at it differently and what we meant was is that, it should all be cloud native. Okay. So that's kind of revision, but he's cool with that. He says, hey, we'll revise based on what customers are doing. VMware working with Amazon that no one ever thought that would happen. Okay. So, VMware has some techies, Raghu, for instance, over there, super top notch. He worked with Jassy, directly in his team Sanjay Poonen when they went to business school together, they cut a deal. And now Amazon essentially saved VMware, in my opinion. And Pat Gelsinger drove that deal. Now, Pat Gelsinger, CEO, Intel, and Pat told me that directly in candid conversation off theCUBE, he said, hey, we have to make a decision either we're going to be in cloud or we're not going to be in cloud, we will partner. And I'll see, he was Intel. He understood the Intel inside mentality. So that's good for VMware. So Jassy does these kinds of deals. He's not afraid he's got a good stomach for business and a relentless competitor. >> So, how do you think as you mentioned Jassy is a micromanager. He gets deep into the technology. Anybody who's seen his two hour, three hour keynotes. No, he has a really fine grasp of the technology across the entire stack. How do you think John, he will approach things like antitrust, the big tech lash of the unionization of the workforce at Amazon? How do you think Jassy will approach that? >> Well, I think one of the things that emerges Jassy, first of all, he's a huge sports fan. And many people don't know that but he's also progressive person. He's very progressive politically. He's been on the record and off the record saying things like, obviously, literacy has been big on, he's been on basically unrepresented minorities, pushing for that, and certainly cloud computing in tech, women in tech, he's been a big proponent. He's been a big supporter of Teresa Carlson. Who's been rising star at Amazon. People don't know who Teresa Carlson is and they should check out her. She's become one of the biggest leaders inside Amazon she's turned around public sector from the beginning. She ran that business, she's a global star. He's been a great leader and he's been getting, forget he's a micromanager, he's on top of the details. I mean, the word is, and nothing gets approved without Andy, Andy seeing it. But he's been progressive. He's been an Amazon original as they call it internally. He's progressive, he's got the business acumen but he's perfect for this pragmatic conversation that needs to happen. And again, because he's so technically strong having a CEO that's that proficient is going to give Amazon an advantage when they have to go in and change how DC works, for instance, or how the government geopolitical landscape works, because Amazon is now a global company with regions all over the place. So, I think he's pragmatic, he's open to listening and changing. I think that's a huge quality >> Well, when you think of this, just to set the context here for those who may not know, I mean, Amazon started as I said back in 2006 in March with simple storage service that later that year they announced EC2 which is their compute platform. And that was the majority of their business, is still a very large portion of their business but Amazon, our estimates are that in 2020, Amazon did 45 billion, 45.4 billion in revenue. That's actually an Amazon reported number. And just to give you a context, Azure about 26 billion GCP, Google about 6 billion. So you're talking about an industry that Amazon created. That's now $78 billion and Amazon at 45 billion. John they're growing at 30% annually. So it's just a massive growth engine. And then another story Jassy told us, is they, he and Jeff and the team talked early on about whether or not they should just sort of do an experiment, do a little POC, dip their toe in and they decided to go for it. Let's go big or go home as Michael Dell has said to us many times, I mean, pretty astounding. >> Yeah. One of the things about Jassy that people should know about, I think there's some compelling relative to the newest ascension to the CEO of Amazon, is that he's not afraid to do new things. For instance, I'll give you an example. The Amazon Web Services re-invent their annual conference grew to being thousands and thousands of people. And they would have a traditional after party. They called a replay, they'd have a band like every tech conference and their conference became so big that essentially, it was like setting up a live concert. So they were spending millions of dollars to set up basically a one night concert and they'd bring in great, great artists. So he said, hey, what's been all this cash? Why don't we just have a festival? So they did a thing called Intersect. They got LA involved from creatives and they basically built a weekend festival in the back end of re-invent. This was when real life was, before COVID and they turned into an opportunity because that's the way they think. They like to look at the resources, hey, we're already all in on this, why don't we just keep it for the weekend and charge some tickets and have a good time. He's not afraid to take chances on the product side. He'll go in and take a chance on a new market. That comes from directly from Bezos. They try stuff. They don't mind failing but they put a tight leash on measurement. They work backwards from the customer and they are not afraid to take chances. So, that's going to board well for him as he tries to figure out how Amazon navigates the contention on the political side when they get challenged for their dominance. And I think he's going to have to apply that pragmatic experimentation to new business models. >> So John I want you to take on AWS. I mean, despite the large numbers, I talked about 30% growth, Azure is growing at over 50% a year, GCP at 83%. So despite the large numbers and big growth the growth rates are slowing. Everybody knows that, we've reported it extensively. So the incoming CEO of Amazon Web Services has a TAM expansion challenge. And at some point they've got to decide, okay, how do we keep this growth engine? So, do you have any thoughts as to who might be the next CEO and what are some of their challenges as you see it? >> Well, Amazon is a real product centric company. So it's going to be very interesting to see who they go with here. Obviously they've been grooming a lot of people. There's been some turnover. You had some really strong executives recently leave, Jeff Wilkes, who was the CEO of the retail business. He retired a couple of months ago, formerly announced I think recently, he was probably in line. You had Mike Clayville, is now the chief revenue officer of Stripe. He ran all commercial business, Teresa Carlson stepped up to his role as well as running public sector. Again, she got more power. You have Matt Garman who ran the EC2 business, Stanford grad, great guy, super strong on the product side. He's now running all commercial sales and marketing. And he's also on the, was on Bezos' S team, that's the executive kind of team. Peter DeSantis is also on that S team. He runs all infrastructure. He took over for James Hamilton, who was the genius behind all the data center work that they've done and all the chip design stuff that they've innovated on. So there's so much technical innovation going on. I think you still going to see a leadership probably come from, I would say Matt Garman, in my opinion is the lead dog at this point, he's the lead horse. You could have an outside person come in depending upon how, who might be available. And that would probably come from an Andy Jassy network because he's a real fierce competitor but he's also a loyalist and he likes trust. So if someone comes in from the outside, it's going to be someone maybe he trusts. And then the other wildcards are like Teresa Carlson. Like I said, she is a great woman in tech who's done amazing work. I've profiled her many times. We've interviewed her many times. She took that public sector business with Amazon and changed the game completely. Outside the Jedi contract, she was in competitive for, had the big Trump showdown with the Jedi, with the department of defense. Had the CIA cloud. Amazon set the standard on public sector and that's directly the result of Teresa Carlson. But she's in the field, she's not a product person, she's kind of running that group. So Amazon has that product field kind of structure. So we'll see how they handle that. But those are the top three I think are going to be in line. >> So the obvious question that people always ask and it is a big change like this is, okay, in this case, what is Jassy going to bring in? And what's going to change? Maybe the flip side question is somewhat more interesting. What's not going to change in your view? Jassy has been there since nearly the beginning. What are some of the fundamental tenets that he's, that are fossilized, that won't change, do you think? >> I think he's, I think what's not going to change is Amazon, is going to continue to grow and develop their platform business and enable more SaaS players. That's a little bit different than what Microsoft's doing. They're more SaaS oriented, Office 365 is becoming their biggest application in terms of revenue on Microsoft side. So Amazon is going to still have to compete and enable more ecosystem partners. I think what's not going to change is that Bezos is still going to be in charge because executive chairman is just a code word for "not an active CEO." So in the corporate governance world when you have an executive chairman, that's essentially the person still in charge. And so he'll be in charge, will still be the boss of Andy Jassy and Jassy will be running all of Amazon. So I think that's going to be a little bit the same, but Jassy is going to be more in charge. I think you'll see a team change over, whether you're going to see some new management come in, Andy's management team will expand, I think Amazon will stay the same, Amazon Web Services. >> So John, last night, I was just making some notes about notable transitions in the history of the tech business, Gerstner to Palmisano, Gates to Ballmer, and then Ballmer to Nadella. One that you were close to, David Packard to John Young and then John Young to Lew Platt at the old company. Ellison to Safra and Mark, Jobs to Cook. We talked about Larry Page to Sundar Pichai. So how do you see this? And you've talked to, I remember when you interviewed John Chambers, he said, there is no rite of passage, East coast mini-computer companies, Edson de Castro, Ken Olsen, An Wang. These were executives who wouldn't let go. So it's of interesting to juxtapose that with the modern day executive. How do you see this fitting in to some of those epic transitions that I just mentioned? >> I think a lot of people are surprised at Jeff Bezos', even stepping down. I think he's just been such the face of Amazon. I think some of the poll numbers that people are doing on Twitter, people don't think it's going to make a big difference because he's kind of been that, leader hand on the wheel, but it's been its own ship now, kind of. And so depending on who's at the helm, it will be different. I think the Amazon choice of Andy wasn't obvious. And I think a lot of people were asking the question who was Andy Jassy and that's why we're doing this. And we're going to be doing more features on the Andy Jassy. We got a tons, tons of content that we've we've had shipped, original content with them. We'll share more of those key soundbites and who he is. I think a lot of people scratching their head like, why Andy Jassy? It's not obvious to the outsiders who don't know cloud computing. If you're in the competing business, in the digital transformation side, everyone knows about Amazon Web Services. Has been the most successful company, in my opinion, since I could remember at many levels just the way they've completely dominated the business and how they change others to be dominant. So, I mean, they've made Microsoft change, it made Google change and even then he's a leader that accepts conversations. Other companies, their CEOs hide behind their PR wall and they don't talk to people. They won't come on Clubhouse. They won't talk to the press. They hide behind their PR and they feed them, the media. Jassy is not afraid to talk to reporters. He's not afraid to talk to people, but he doesn't like people who don't know what they're talking about. So he doesn't suffer fools. So, you got to have your shit together to talk to Jassy. That's really the way it is. And that's, and he'll give you mind share, like he'll answer any question except for the ones that are too tough for him to answer. Like, are you, is facial recognition bad or good? Are you going to spin out AWS? I mean these are the hard questions and he's got a great team. He's got Jay Carney, former Obama press secretary working for him. He's been a great leader. So I'm really bullish on, is a good choice. >> We're going to jump into the Clubhouse here and open it up shortly. John, the last question for you is competition. Amazon as a company and even Jassy specifically I always talk about how they don't really focus on the competition, they focus on the customer but we know that just observing these folks Bezos is very competitive individual. Jassy, I mean, you know him better than I, very competitive individual. So, and he's, Jassy has been known to call out Oracle. Of course it was in response to Larry Ellison's jabs at Amazon regarding database. But, but how do you see that? Do you see that changing at all? I mean, will Amazon get more publicly competitive or they stick to their knitting, you think? >> You know this is going to sound kind of a weird analogy. And I know there's a lot of hero worshiping on Elon Musk but Elon Musk and Andy Jassy have a lot of similarities in the sense of their brilliance. They got both a brilliant people, different kinds of backgrounds. Obviously, they're running different things. They both are builders, right? If you were listening to Elon Musk on Clubhouse the other night, what was really striking was not only the magic of how it was all orchestrated and what he did and how he interviewed Robin Hood. He basically is about building stuff. And he was asked questions like, what advice do you give startups? He's like, if you need advice you shouldn't be doing startups. That's the kind of mentality that Jassy has, which is, it's not easy. It's not for the faint of heart, but Elon Musk is a builder. Jassy builds, he likes to build stuff, right? And so you look at all the things that he's done with AWS, it's been about enabling people to be successful with the tools that they need, adding more services, creating things that are lower price point. If you're an entrepreneur and you're over the age of 30, you know about AWS because you know what, it's cheaper to start a business on Amazon Web Services than buying servers and everyone knows that. If you're under the age of 25, you might not know 50 grand to a hundred thousand just to start something. Today you get your credit card down, you're up and running and you can get Clubhouses up and running all day long. So the next Clubhouse will be on Amazon or a cloud technology. And that's because of Andy Jassy right? So this is a significant executive and he continue, will bring that mindset of building. So, I think the digital transformation, we're in the digital engine club, we're going to see a complete revolution of a new generation. And I think having a new leader like Andy Jassy will enable in my opinion next generation talent, whether that's media and technology convergence, media technology and art convergence and the fact that he digs music, he digs sports, he digs tech, he digs media, it's going to be very interesting to see, I think he's well-poised to be, and he's soft-spoken, he doesn't want the glamorous press. He doesn't want the puff pieces. He just wants to do what he does and he puts his game do the talking. >> Talking about advice at startups. Just a quick aside. I remember, John, you and I when we were interviewing Scott McNealy former CEO of Sun Microsystems. And you asked him advice for startups. He said, move out of California. It's kind of tongue in cheek. I heard this morning that there's a proposal to tax the multi-billionaires of 1% annually not just the one-time tax. And so Jeff Bezos of course, has a ranch in Texas, no tax there, but places all over. >> You see I don't know. >> But I don't see Amazon leaving Seattle anytime soon, nor Jassy. >> Jeremiah Owyang did a Clubhouse on California. And the basic sentiment is that, it's California is not going away. I mean, come on. People got to just get real. I think it's a fad. Yeah. This has benefits with remote working, no doubt, but people will stay here in California, the network affects beautiful. I think Silicon Valley is going to continue to be relevant. It's just going to syndicate differently. And I think other hubs like Seattle and around the world will be integrated through remote work and I think it's going to be much more of a democratizing effect, not a win lose. So that to me is a huge shift. And look at Amazon, look at Amazon and Microsoft. It's the cloud cities, so people call Seattle. You've got Google down here and they're making waves but still, all good stuff. >> Well John, thanks so much. Let's let's wrap and let's jump into the Clubhouse and hear from others. Thanks so much for coming on, back on theCUBE. And many times we, you and I've done this really. It was a pleasure having you. Thanks for your perspectives. And thank you for watching everybody, this is Dave Vellante for theCUBE. We'll see you next time. (soft ambient music)

>> Reporter: From New York City, it's theCUBE, covering New Relic FutureStack 2019, brought to you by New Relic. >> I'm Stu Miniman, we're here in New York City right next door to Grand Central Station, at the Grand Hyatt. This first year of theCUBE, attending New Relic's Futurestack, the seventh year of the show, and happy to welcome to the program, Guy Fighel, who's the vice president and general manager of New Relic AI of course, CEO was up on stage this morning announcing New Relic AI, it's in beta, Lew said expect early 2020 for to come out, so thank you so much for joining us. >> Thank you for being here. >> All right, so Guy, you came to New Relic by way of the acquisition of signifAI. And that ends in AI of course, even though we pronounce it signify, so help us understand is this a repackaging, rebranding you know, New Relic-izing the product that was through the acquisition, tell us how we've gotten here. >> Yes, sure, so New Relic AI is a whole new set of capabilities, it's a suite of capabilities that we are launching today in beta that pretty much augments the site reliability engineers with AI and ML capabilities. It runs on top of the New Relic One platform, which is the first observability platform that is connected, open, and programmable so you have all of the existing information and data that you already have inside New Relic. And we've incorporated a lot of the technologies and the techniques that we have developed as part of signifAI with existing capabilities that New Relic already had, and pretty much integrated all of that into single user experience and single type of capabilities across the stack. >> All right so, Guy, AI is a really broad category you know, you got your AI and ML and cognitive and you know all these things, what was kind of the core IP of SignifAI when they came in. >> Sure, so we really focused on correlating and reducing the noise of all of your different alerts and incidents but not just that, we've actually built a recommendation engine on top of that, to provide you much faster context to get into potential root cause of all of your different information focused on events. And now we're combining that with all the time series data that New Relic as a platform has to offer, so you're getting a much broader capabilities for understanding. >> Yeah, you know, definitely there's that promise of AI as we know that humans alone or my traditional tooling just can't keep up, you know, talk about all the different sources of data, the volume of data. I just saw Lew talking about the amount of the millions of items being ingested into the New Relic database, and the billions of items that are being read basically per second. So, help us understand. You say we love, we talk about our videos or extracting the signal from the noise, so, did I hear it was like 80, 85% your early customers are helping to reduce that noise Bring us in a little bit more. >> True, yes, so definitely early results shows us over 80% noise reduction for some of the customers and it is important to understand this is automatic relations, so this is truly based on the engines with no human interaction. Now, we actually have even greater results when some user input is driven into the system and that raises the capabilities as well. In terms of the number of events, yes, we are dealing with huge amount of events and information in the platform and I think it's, all around, not replacing the humans, but actually augmenting the site reliability engineers, so you talked about how systems, you know, there is a great promise for those capabilities. We believe that applied intelligence is a much better term, because it gives really enabling the augmentation for the site reliability engineers. We don't believe that site reliability engineers needs to go away or can even be replaced anytime soon. We definitely think that we can help them understand better and faster, what is the type of problems that they see in their production environments, and then help them resolve that much faster and better. >> Yeah, absolutely, we're huge supporters of really, the best solutions are when you have the people plus machines, there are certain things the machines are going to do on their own, but it's the marrying, so help us understand who's going to be using New Relic AI how is it going to change their day-to-day life and maybe even kind of organizationally, what the impact will be. >> Sure, so if you're a site reliability engineer, or a DevOps themed depending on, how you want to call yourself and, you know, there's a big debate in the industry, whether it's DevOps or site reliability engineers. Pretty much anyone who is responsible for Op time in the digital production environments you're a relevant user, If you carry the pager, if you're on call, you're a relevant user, so you're going to be interacting with the system to be able to actually see what are the problems with potential recommendations and then, you can infuse the system with your own logic. Whether it's based on the logic, we also provide very easy user experience we'd like thumbs up, thumbs down, different types of feedbacks as part of the workflow and I think the most important piece is that we're connecting to users where they are. Meaning, we don't believe we need to change the workflows so, if you're a user and you're already using with a specific internet management providers and you've already connected some of the additional monitoring tools to those providers, we now offer you a streamline of syncing to those instant management platforms and then, in reaching them with all of the information that we already have on the platform. >> So Guy, we've talked about AI but, let's talk a little bit about AI Ops. So, you know I've talked to the number of the vendors I actually went to an AI ops conference earlier this year and some of the talk track was, APM is the old way, AI ops is going to replace what you were doing before Let's take all your scattered tools and consolidate them down. some of the messaging reminds me of what I heard this morning, the New Relic One platform is going to replace a number of tools, pull everything together. Help us kind of, you know, square that circle of APM and AI ops and where you see New Relic compared to some of those competitors out there today. >> Sure, so APM is application performance monitoring. it's all about monitor and have that visibility to your application layer, it has nothing to do with AI ops it has nothing to do with replacing the tools. We believe that everyone should have visibility into their application, and that's, a lot of that messaging came through Lew's key note this morning, and opening it up to any type of open source instrumentation so we can bring it to the platform whether you want to drop an agent, whether you want to use any other open source SDK, we allow you to do that. Pretty much opening up the platform and giving you the option. AI ops is a term coined by Gardner actually, and it is pretty much applying some automation, AI capabilities, ML capabilities, statistical analysis capabilities on huge amount of data that you have in a centralized place. It has nothing to do with the monitoring, per se, so, I definitely think that the industry's going into a new space, where there is a consolidation obviously with different vendors. I believe that New Relic is giving customers the choice to make, whether they want to go and continue using their old tools, and that's okay, and we are an open platform so we will sync up with their data as part of New Relic AI we'll be able to bring in the new data whether by, again inter-connecting with their incident management platform or through a rest API or native integrations or if customer choose to do that, they can just send us all of the data directly and then, we apply the AI ops capabilities on top of the existing platforms. So, it's really opening up for the choice of the customer. >> All right it's been less than a year since the acquisition of SignifAI we know that some of the things when you do an acquisition it's an area of investment, you're going to get more resources, more people but, you've mentioned customers a couple of times, maybe give us a little bit of insight as to how the customer conversations have changed now working for New Relic, as opposed to being a customer understanding that piece of the New Relic ecosystem. >> Oh absolutely, I think, you know, as you transition from a small start up into a company like New Relic you get much more exposure to enterprise customer, your scaling capabilities are much better so we're in serious conversations with a lot of the enterprises customers that have a lot of interest in what we do. A lot of it is part of the branding recognition and all of the great capabilities that New Relic has already, and then marinade that with all of the capabilities that we're bringing or that we brought into New Relic as a young start-up with all of the latest technologies and a lot of the AI capabilities which are truly innovative ones, so definitely see a lot of traction from the enterprise customers, the more sophisticated ones as well. >> All right, so the solution announced today is in beta give us a little bit of a look forward as to what we should expect to see and what feedback you're hoping to get from customers along the way and how they might get engaged if they want to. >> Yeah so definitely we are in beta today. We've engaged with customers prior to the beta, so, we already got a lot of feedback and great feedback and we make some tweaks to the product based on that. We're actually announcing AGI of a small feature today which is enhanced incident context, which provides you active detection for time series data all the way to your slack channels but the overall solution is currently in beta and as we are progressing, within every month we're going to get more and more customers engaging with the platform, and then we're going to release a much more advanced capabilities even than what we have today in GA coming early next year. >> All right great, last thing, big mention and push about observability this morning, help us understand where AI fits into the broader discussion of observability. >> So again, as I mentioned before the observability will allow you to see all of your data in a centralized place. So, it's combining matrix, events, logs and traces in a specific place that now algorithms and different techniques such as AI and ML based algorithms really, really be successful in gathering, understanding, because you have all of that different information for the human brain, it's very hard to actually go and crawl and kind of ingest all of that vast amount of different data points for machines, they're very good at that. They're starving for broad amount of data and so having that capability, building on top of a true observability platform is what makes the AI and ML so successful and drive value to customers in really understanding what the data means. >> All right well, Guy thank you so much for sharing best of luck on the journey towards GA for the the full New Relic AI in the future. We look forward to, launching it. >> Thank you so much. >> All right and once more here, walking through at the New Relic Futurestack 2019, here in New York City. I'm Stu Miniman and thanks for watching theCUBE. (upbeat music)

>> Live, from Washington, D.C., it's theCUBE, covering AWS Public Sector Summit 2018, brought to you by Amazon Web Services and it's ecosystem partners. >> Welcome back to the District, everybody. This is theCUBE, the leader in live tech coverage. My name is Dave Vellante, and I'm here with my cohost, Stu Miniman. Day two of the AWS Public Sector Summit. We saw Teresa Carlson yesterday, a lot of keynotes, we saw the CIA. Todd Osbourne is here, he's the Vice President of Alliances of New Relic, a company that's been smokin' hot, six billion dollar market cap, and really is takin' the world by storm. He's joined by Scott Drossos, who's the president of Infiniti, who is a public sector consultancy. Gentleman, welcome to theCUBE, good to see you. >> Thanks, good to be here. >> Thank you. >> So Todd, you heard me, I mean really, everybody's talkin' about New Relic, stocks been smoking, I read an article recently, "it's got to cool off, it's too hot." So why so hot, what's goin' on, why the appeal of New Relic? >> Well as our CEO Lew Cirne has been on a couple of times talking to you about, every business is becoming a software business in the public sector, which we're here representing at the Amazon public sector event. It's the same thing with agencies and all the digital experiences that are happening across all the government and whether it's education, higher ed, healthcare, any of the DOD or other agencies, there's always some sort of digital experience that folks are having with the citizens that all the agencies and organizations are tryin' to support, and New Relic's right there, right there at the forefront of every one of those digital experiences. Everyone's running software that's modern software, or shifting to that with modern software running microservices, running containers, shifting to the cloud, and anyone deploying that type of software needs to have New Relic as part of their engagement to monitor what's happening at the citizen or the customer level, what's going on in the back end, on through the infrastructure. And New Relic, whether it's a large enterprise that we're out there, like Dunkin' Donuts or Dominos, monitoring their applications and their eCommerce sites, or it's an agency in the public sector space, you got to have New Relic as part of those engagements. >> So Scott, when AWS services first came out, 2006 timeframe, we looked at it, we said okay, this is the future, but as much as it potentially simplifies lives, it brings a lot of new complexities. So you know, Stu and I used to talk about, look, the AWS is awesome, we're big fans, but the ecosystem has to grow. Consultancies have to come out of the woodworks, and help customers really, adopt. So that's really exactly what's happened. I presume that's how Infiniti got started, maybe you could tell us a little bit about the company, and what your value is. >> Sure, thanks Dave, so Infiniti is a 15 year old company. We're originally founded in public sector IT consulting, and we realized several years ago that the world was changing and that we needed to make the shift from IT consulting to cloud services. And so we dove in headfirst with AWS, and we really tried to move to the top of the curve very quickly, and so we were a little bit ahead of our market in public sector, being a public sector focused organization, but we felt it was important to get ahead of the market because now the market really is smokin' hot. But we thought it was important that if we're going to move into the cloud, we wanted to move to the top of the curve, and deal with things like DevOps, migrations, even machine learning, predictive analytics, so we kind of pride ourselves on having some of the largest public sector contracts in the US, even though we're, right now, predominantly California based, California focused. >> And what's your head count? >> We're about a hundred people. >> I mean this is the thing, we're seeing this trend toward a lot of, you know, smaller specialists, are really doing super. Why is that, or how are you able to differentiate from these big global SIs that have tens of thousands, hundreds of thousands of employees, vertical expertise, why are you guys winning? >> Well, first of all, I think we're able to be nimble and shift our focus pretty quickly to serve our market, to serve our customers, I think more successfully. But one of the thing's that's changed when the cloud arrived, is the cloud really let smaller organizations like us, act like big organizations, so we didn't need to go deploy millions of dollars of capital to go set up a massive data center, we can build an environment on the fly, as you know, in the cloud, and we can have access to world-class platform tools like New Relic, and we can help a customer, a large customer, perform just as well as if we were a large multi-billion dollar services organization. >> Todd, one of the interesting things to talk to customers about is their journey, and where are they, and the cloud migration and how do they do this, reinvent? A year ago or two I heard there were like seven or nine ARS to get there, anything from the full refactoring and building cool new stuff with server lists and things like that, to just the re-platforming. Lift and shift, is that a good thing, isn't that? Walk us through how New Relic with Infiniti, how are you involved in some of those migrations? There's no typical customer, but give us some examples. >> Yeah absolutely, so Infiniti, just like many of the integrators that we work with are all delivering services generally in a couple different areas. One is typically a cloud adoption, or cloud migration practice. So working with Amazon, how do we get more and more of customer's workloads shifted to the cloud? Usually those projects are also going on with something in the refactoring world or application space. Usually they're also developing or shifting to some sort of DevOps practice, and that's also part of our sweet spot, what's happening in the application there, whether it's on the cloud yet or not, we're going to provide that visibility to that. And then the third piece is, there's usually something else happening with that, as I was mentioning before, the customer experience or the citizen experience, so what's the browser impact, what's the user experience on that, what's the, if it's on a mobile app, what's the user experience on there? So while Infiniti's delivering all those services for the clients, New Relic's part of all those services, so our whole model that we're tryin' to do with all of our partners is embed ourselves into all of those services, such that we can help Infiniti be more successful, deliver those projects on time, and really resolve any issues that may come up during those migration issues. >> Scott, I'd love to hear especially, I know I hear DevOps talked about a lot in New Relic's customers, is it pervasive around the agencies that you work with and please do add some color there too. >> So in the public sector, it's a range of readiness, but we're seeing a real wave building, we believe. We worked with New Relic on a very large DevOps, SysOps, very complex cloud services engagement, largest higher education cloud services engagement in the US, and in that case, just like Todd was referencing, when we implemented the migration of the legacy platform to the cloud, first of all we had to do, make choices around refactory, host, rearchitect and so forth, but then when we're managing that environment, and there's millions of users hitting that environment, we need to be able to make sure that we can monitor the application to make sure the application's performing well, and if there's an issue, we want to see the line of code that's causing the problem as quickly as possible so we can keep the environment up all the time. Even though public sector may not be driven by the same financials as say, commercial, they still expect to be up all the time. They still want to take advantage of the benefits of the cloud and so New Relic allows us to do that, but then, as we're looking at the users interface with the application environment, New Relic's browser and mobile, they let us monitor how that experience is going, and we can proactively get at the performance issues there that the application may not tell us, if there's an issue there. And then, we can do things like test middleware with synthetics and make sure that the whole environment's working, and then obviously on the infrastructure side, it lets us make sure that we're optimizing the environment for our clients. One of the cool thing is, when you in the past, you'd set up an EC2 instance, you may not see that you don't need as much CPU as you're using, and so you can size that appropriately, and allow your environment to still run at a high performance, 100% up time, but give them the cost efficiencies at the same time. So we use New Relic across board to help support the entire environment. >> I wonder if we could talk about the marketplace a little bit, generally and then specifically, the public sector? So Scott, I presume you're obviously public sector focused, but are you exclusive to AWS, no, you probably do some other stuff, is that right, is that fair? >> Well we are both AWS and Azure Gold, in terms of partner, but we do more of our work in AWS for sure. >> Okay, so we'll come back to that. And New Relic, of course you're a software company, so you want everybody to love your software, so if there's a cloud that a customer wants to use, you want your software to be on that cloud, fair enough? >> Sure, and also on PRIM, I mean a lot of our... >> On PRIM too. >> A lot of our applications we monitor are still on PRIM, and there's a tremendous amount of value there regardless of... >> I would just add, Infiniti is a trusted advisor, we like to see ourselves as a trusted advisor, so we do feel like we have to be multi-cloud and have an objective perspective. >> And New Relic is presumably the same way, I mean let the customers decide, so, and it's a hybrid world, folks, despite what Amazon wants, it's a hybrid world, and they even recognize that. My question is, there's a lot of discussion in the industry about Amazon as an infrastructure service provider and their lead or relative lead on the competition. It's our sense that there's still a lead there, what's your sense? >> Well AWS is still the leading cloud services provider in the marketplace. They lead in innovation, they lead in disruption, they lead in market share, they lead in so many metrics, and because they have that lead, and that's where we started, we've benefited from that, and we've invested heavily, and in the same way, we see New Relic, when we made a choice around who we were going to pick as a platform to support our customers, we wanted something that was cloud-born, didn't come out of on-premise and get sort of bootstrapped into the cloud, and we wanted something that was a complete platform. So New Relic was really a clear choice for us. It was not a, we looked at the entire market when we made that choice. >> So the narrative in the market used to be, oh, security in the cloud, now we hear the CIA say hey, security on the worst day in Amazon's cloud is way better than I ever saw with client server. It was a pretty powerful statement, so let's assume security, people are relatively comfortable with security these days, even though I'm sure there's still some issues with regard to corporate edicts, and flexibility, and audits, let's put that aside. SLAs is another big one. People often criticize the public cloud SLAs, and cost, oh it's so expensive, I can do it cheaper on PRIM. Are those myths, are those realities, is it a it depends? What's your sense? >> I mean they're all, they're all factors that all of our customers are looking into. I would say what we're hearing a lot about right now, is how do we help provide more visibility to everything that's happening, so if you've got a developer now that has the ability to write code, put it on any cloud they want, spin up containers, spin down containers, go try out server-less base of architectures, they've got a lot of flexibility to do what they want. Government agencies, as well as customers, one of the things they're looking for is what's actually happening? Who's doing what? The governance piece is a big piece and I think New Relic plays right into that in terms of helping control all that. One of the things that we're, is one of our sweet spots, is as you move to DevOps and a truly microservices architecture, one of the whole values of that is speed, keeping up with how fast the whole market is moving, and customers and agencies, what they want out of that, is to deploy applications where they're releasing multiple times a day. You have to have visibility into everything you're doing across the stack to be successful in that, and that's really New Relic's sweet spot in terms of doing that. So providing that visibility, instrumenting the applications in the infrastructure before, and then helping provide visibility to things like governance, things that other, not necessarily our sweet spot, but other companies in the industry are doing things throughout the DevOps life cycle in the governance realm, things like that. So we're part of that ecosystem that's helping Amazon and the other cloud providers be very successful, helping customers and agencies be very successful deploying modern applications. >> It's all about that visibility. >> Scott, one of the things, when we look at any rollout of new technology or migration, once it's up and running, then what, so wondering how your firm's involved in, you know, is there re-training, is there things go on, once this is in place, now what? >> Well Infiniti, what we found in public sector is that everybody wants to take advantage of the cost efficiencies and the benefits, and most public sector isn't going to reduce cost, they're just going to want to re-use cost more wisely. So some of the confusion around cost savings is that they're getting way more for their dollar in the future state, and the choices you have to make around how fast you want to get to the cloud, and what you want to get out of the cloud when you're there, those all effect the equation in terms of what you're actually outcomes are immediately and in the long term. So we often see that in public sector, some of the legacy applications, they may not naturally or easily move all at once, and so you have to make a choice, are you going to do some refactory and architecting before you get it there, are you going to get in the cloud now, and then do it afterwards. Either way, there's benefits, but you have to make choices about what, how you want to approach it. >> Yeah, when you talk about, after I've rolled this in, I've heard from some customers, they're like, after I've gotten a cloud, I love it, but I had to dedicate an engineer for financial architecting because there's all of these things we need to do. Are we still in that state? And once again, do you help with some of the training as to, okay, or is it plugging them into the Amazon ecosystem and how do they get certified and ready to use all of this. >> So Infiniti works with clients differently, we work with some in a more episodic, lighter capacity, and we work with some in a wholistic capacity where we are that engine for them, where we provide them the complete cloud services team to do everything from migrations, architecture, DevOps, SysOps, SecOps, machine learning and all the way through. And so when we're providing those services, we're doing those kind of things, we're making sure that the next improvement is worked into the architecture. Last year, the customer I was referencing earlier, we did just under a hundred releases, so that's a hundred releases that we're using the New Relic platform and our architectural solution, our solution architects, rather, to make sure that it's faultless, that the process is efficient, it's effective, it's secure, and that we're driving efficiencies wherever possible. So it really depends on what the customer wants. If the customer wants to hone the environment, they may have to go a little slower to account for their learning, their learning curve, and we'll help them, if that's what they want, but if they want to go faster, and they want to take advantage of our expertise, we make that available, and we're happy to do that. >> We had the former CTO of the NSA on yesterday, who now works for Accenture, and we were asking about sort of, federal versus commercial, are we sort of still taking, learning lessons from commercial and bringing it to federal, or is it because federal has so much interesting technology around analytics, does it go the other way, and he said, "it's funny, when you're on the inside, you think all the innovation is goin' on outside, now that I'm on the outside I say wow, there's a lot of interesting stuff going on in federal." We heard Teresa yesterday talk about Aurora, she talked about the VM wear partnership, so things that were announced a while ago and actually being adopted in commercial coming in to federal. So how does it work? Is it more of a two-way than it used to be 20 years ago and I wonder if you could comment? >> Yeah, from Infiniti's perspective, absolutely. We work with clients to understand the problems and where they want to get to, and then we innovate with them. You're pretty dependent on the subject matter expertise of the organization. I think our customers like that, they like that they're part of the solution, but then they need the expertise that we bring to create the next generation solution. We just created something in the higher ed space called, a college called Architecture Builder, and it was after teaming with a specific college, and working in that space for a long time, but we wanted to create a way for colleges to rapidly implement a complete architecture integrated with all the different things, including New Relic, quickly and successfully, and that was done in partnership with them, so we did the work, but we couldn't have done it without them. >> Todd, New Relic obviously, you're a believer, you drink the Koolaid every day. Why New Relic relative to the competition? How do you guys differentiate? Pitch me. >> So it's really all about being successful in that modern software space, again, as I've mentioned, and so New Relic is the only SAS only platform, so we're not going to put anything on PRIM. We've got ourselves one of the biggest and best DevOps team that develops our software, we roll code everyday, and our customers get the benefit of us being a pure SAS platform. Part of that is scalability. What we can do at scale is unbelievable. There was a customer that was just talked about on the news today that I can't mention, but they just went from basically zero to $100 million on an application just in the past 90 days. It's one of our customers and we've scaled, we have no problem scaling with customers that are doing things like that, and again, the full platform value that we have now, looking at everything from the front end on the browser and mobile applications, through the application, which is core to us, it's where we provide that code-level visibility, the ability to trace across all the different microservices that are happening, connected back to that infrastructure. That full platform now provides such tremendous value up and down the stack, but not only to the technology leaders but also to those folks that are business leaders, chief marketing officers, heads of practices at the consultants we work with, all these folks are all getting value out of New Relic. >> What would that customer who should not be named say about the value contribution of New Relic to that scale? >> The value's unbelievable. That's a commercial customer, but their business is taking off like so many of our customer's businesses are at an unbelievable scale. They can't be hamstrung by having to do a server upgrade, or having to go back, working with a release of code from a couple weeks ago, they have to be as fast as possible 'cause their business is moving so fast, their agencies are moving so fast, they need a provider that's going to provide that visibility to that at the speed with which they're moving. >> Awesome so, you got one more? >> No, we've got to run. >> Yeah, we've got to go. So this is the last question, so impressions of AWS Public Sector Summit? I presume you guys, like we did, had to register yesterday. There were some logistic issues, but other than that, maybe you could give us your last word on the summit? >> Well Infiniti is very committed to public sector, so we really enjoy coming to the Public Sector Summit. It's great to connect with our partners, like New Relic and others, and it's great to see the latest innovations coming out from AWS. >> Yeah and I've been to, I don't know, 10 or so summits around the world so far this year. It is unbelievable the excitement and the amount of people that are now excited about what's happening in the clouded option world, and Amazon's piece in that, and what's happening here in D.C. this week is no exception. >> I would second that. It's been a while since I've been at summits. Stu, you go all the time, and they are just exploding and growing, and this is one of the best that's out there. So thanks guys, for comin' on theCUBE, we really appreciate it. >> Thanks very much. >> Thank you for the opportunity. >> You're welcome. Alright, keep it right there everybody, Stu and I will be back with our next guest after this short break. John Furrier's here, you're watchin' theCUBE live, from AWS Public Sector Summit. We'll be right back. (upbeat music)

>> (narrator) Live from Copenhagen Denmark, it's theCUBE covering Kubecon and CloudNativeCon Europe 2018. Brought to you by the Cloud Native Computing Foundation and it's ecosystem partners. >> Hello and welcome to theCUBE. Exclusive coverage of Kubecon 2018 here in Europe. The Linux Foundation, theCUBE's coverage. Again, we're covering Kubecon, Cloud Native Conference, part of the CNCF. I'm John Furrier, host this week here in Europe with Lauren Cooney. Lauren, great to see you. >> Thank you. It's great to be here. >> Cloud, CloudNative is hot, obviously the Cloud Native Compute Foundation, CNCF, part of the Linux Foundation, driving really a pretty incredible growth. >> This is tremendous. >> Onboard and the logos, it's just pretty massive growth in microservices. >> It's just, you're seeing so many interesting things that are actually coming to this show. You know, A there's over 4,000 people here I heard. You know the taxi line was 20 people deep this morning to actually get here for the keynote. And I got to say that, you know, some of the technologies that are coming out are just really tremendous. I mean, we've got some great folks that are going to be coming on the show. Lew Tucker from Cisco and then we've got Tyler Jewell whose going to be talking about a new Cloud Native programming language. I think that's pretty interesting. >> And we've got some great influences as well. We're going to get the commentary. But the big story is, we're in Copenhagen Denmark. Sun's shining. It was raining yesterday but again, great European city. Feels like Amsterdam, got the canals. But the growth in Europe is just, it feels like I'm in North America in just terms of the volume. It's not like a satellite show. Normally in Europe, you see kind of the U.S., North America big tent events and then Europe's kind o' like a sidecar, no pun intended event. But no, it's pretty massive. I mean, you're seeing great developer uptake here in Europe. Cloud is hot. Kubernetes is the talk of the show, >> You know, I, >> SDO among other things. >> Exactly, you know, I think, I've been talking to folks around the conference center and so many of them as actually learning this for the first time and bringing it back to their, you know, large banks or some of their employers, you know, huge European companies that are actually looking to adopt this. And I think it's just phenomenal. >> I was chatting with Abby Kearns last night. I told her I'd give her a quick plug here on theCUBE. She's CEO of Cloud Foundry and we were having a chat. She just did a survey as part of the Cloud Foundry Group that found that outside of our bubble in Silicon Valley and certainly in the influencer sphere, most people have heard of Kubernetes, but actually don't know what it is and kind o' where it's going to be applied. It's one of those things where it's really taken the world by storm, certainly in the classic enterprises but application developers are seeing the goodness of what Kubernetes will do when you look at multiple workloads, workload portability, microservices as the growth of applications become cloudified. >> I think it's >> Kubernetes is key. >> It's key and I think the projects that really are inside of the CNCF are obviously super key as well, like Spyfy, who actually detects kind of workloads and types and you know, does that in an automated way. So, you know, the user doesn't have to figure that out anymore. I think those technologies are really the ones that are going to be you know, changing the landscape of platforms, you know, now and to come. >> Yeah. So Dan Kohn's up on stage, Lew Tucker's up on stage talking about multiclouds from Cisco's perspective. Lauren, you're out there on the streets working with some startups and big companies as they start to transform cloud, what do you see as the key themes of the show, what are the notable highlights for you that you see on the agenda and what are some of the things you're looking for this week in Europe? >> Well, I'm definitely looking to find out really what the news here is. You know, we've got some new projects. We've got some new end users. We've got some awards that are handed out. I really want to get to the root of what's new and what's happening. I think that there are some interesting things that are happening around. You know, we know that growth is explosive in this community. I think that, you know, is very clear. What I don't know is, you know, kind of clear to me yet at least, is really how large CNCF has gotten and how it really going to kind o' fit together and how users are going to take advantage of that entire ecosystem because they're just so many partners now and users. How do you actually pull that together in a way that's going to be workable from, you know, the perspective of a platform? >> To me the big story I like here and certainly what's notable is, and worth talking about is the role Google's playing. If you look at this show, you got some Microsoft here with Azure but really Google's at the centerpiece of this. See Red Hat and all the other industry players are here as well. But Google is driving a lot of open source standards. This is the real kind o', I won't say anti-AWS show but it's kind o' like you got Amazon re:Invent and then you got everybody else. And this is, this show represents to me everybody else because there's a real emphasis on multicloud and workload portability again, not getting a lot into one cloud. Google's pretty upfront about that and they're betting on open source to be that lever to get a good position in the cloud game. >> Well it has to be and I think really what's interesting to is AWS did show up here and they had a, you know, I was actually bouncing between some of the trainings that were going on with Fido, one of the projects and also, you know, what was going on with AWS. They call it their awesome day. And there were a lot of folks attending and a lot of folks interested. So I think it's going to be an interesting game here John. >> Well we have Adrian Cockcroft coming on, obviously, he's with AWS. He's leading the open source efforts for Amazon. And again, not to poke at Amazon but, you know, Amazon is so busy and they announce so much at re:Invent, they're so ahead of the game on cloud, cloud scale, just a number of services that Amazon... (techno music) the cloud has had significant impacts. We covered Amazon's earnings last week, again, at 50% increase. The profit that AWS is throwing off is so notable and so impressive that it really is a bellwhether to me on terms of this cloud transformation. And the key is applications. That is the number one focus we're seeing and how that makes the cloud scale an impact. What are you looking for with applications? What's interesting you, what's interested you there with the applications? >> Any applications that are running from public to, and private across that environment but I want to see multi-public cloud environments as well as on, you know, our private environments too. That to me is interesting. >> Well I want to get your thoughts on another topic that we're going to talk about this week and that is the role of the personnel inside the organization for cloud transformations. So for instance, the role of the admin operators out there, or admins and operators. Certainly at Cisco, DevNet Create that we were recently at, the role of the network manager is moving much more cloud oriented program or infrastructure. But you're seeing Google starting to talk about things like automation is good but yet the role of an operator, they call it at NASA a Site and Reliability Engineer, as the key position for cloud, what's your thought on the personnel equation for cloud within an enterprise within large companies. >> Well the SRE is the new hot role to have, right? I think that there is an increase interest in that audience because they are actually the ones that are troubleshooting a lot of this and looking at a lot of what this strategy is and where to take these things. I think that you know, it's also interesting because as people are looking to aspire to different roles, this is one of the ones that has become more established and is kind of shined upon in the developer world right now. And it's going to be interesting to see if that stays that way or if, you know, they're going to be, you know, what's kind of going to happen there. >> Thoughts on microservices in context, SDO service meshes. Again, last Kubecon we talked about SDO, the service mesh piece of it, with the notion of a modern architecture. How is that playing out in your mind? >> I think it's playing out pretty well. Everyone seems to be on the ciscobus. I also think that, you know, when we talk to Lew Tucker for example, I think we really need to ask him where he sees it going and what's going on with Cisco and the ecosystem at large on that. But everyone is playing and playing nice with those guys. >> I'm interested to get the security update. We're going to have some Google folks on. I want to find out what's new with that and also Google Next is coming up in July, their big cloud show. I'm expecting it be that pretty large event. Google is really going all in on cloud. Certainly, the cloud group within Google's got a lot of investment, a lot of enterprise folks. But the security question in Kubernetes is an interesting one. How to deploy, you know, endpoint security or is it an IOT thing? Is it ship set to operating system to application? I mean this is the open question on Kubernetes is security. >> I don't have a good answer for you there. I think that, you know, that is something we definitely need to dig into as a community and as developers. It's something that, you know, I think is was mentioned in the keynote today and I think we got to continue to to poke at that one. >> Awesome. Well we're here kicking off day one of two days of coverage here at CNCFs Kubecon, John Furrier with Lauren Cooney. Back with more live coverage here in Europe in Denmark. We're in Copenhagen for cube coverage at Kubecon 2018 Europe. (techno music)

(techno music) >> Announcer: Live, from the Moscone Center it's theCUBE. Covering AWS Summit, San Francisco 2018. Brought to you by Amazon Web Services. >> Hello everyone, welcome back to theCUBE's exclusive coverage here in San Francisco, I'm John Furrier with Stu Miniman. This is Amazon Web Services, AWS Summit 2018. We got two great guests, Dave McCann the vice president general manager of AWS Marketplace and Service Catalog and Matthew Scullion is a CEO of Matillion, partner of Marketplace. Guys thanks for coming on good to see you again >> Thank you. >> Thanks for havin' us. >> Alright, so Dave, Marketplace is doing phenomenal, well, we talked with Lew Cirne from New Relic at Reinvent, and was talking about how successful they've been on the Marketplace, so clearly it's working, 170 thousand active customers on stage, we saw the keynote today, What's going on with the Marketplace? Take a minute to explain how the Marketplace is set up now and how it's evolved to this point. >> Thank you, so, great to be back. Can't believe it's four months since Reinvent. So Marketplace is a digital library, of software. You know the cloud is helping our customers innovate faster but you need to be able to innovate with the software not just with the compute and the storage, and so our purpose is to stand up a digital library of software for our customers to subscribe and launch, and we're continuing to grow on multiple dimensions. We've deployed out to all the new standard regions, so we're now up in Korea, we're clearly in LHR so in all the standard regions we've fit Marketplace. And then we continue to expand the library of software, so more and more companies, like a Matillion, publish into the library. We're over 1,300 software companies now, and we're over 4,000 different software titles and you know, our customers show up, they're typically a developer or a manager, with a project with a budget, and they're looking for the best tool that they can keep the project going on schedule. >> And just to make clarification nuances, I know it's commercial and is there a public sector version or is it all one? >> That's a really good question. We actually launched Marketplace last August in our GovCloud Region, so we do actually operate a GovCloud Region for our US government customers and we actually offer a separate Marketplace for the US intelligence agencies. So that's the library of what were doing and we continue tho grow and as Werner said this morning, bunch of new stats. >> The business, the business model obviously people see, um, two things happening. I want to get your reaction to, one is Werner Vogels laid out how services are going to be laid out all over the place and it's not, you know, monolithic as he says. They're all a bunch of services. Scale is a huge factor in enabling that, and also the business model changes are going on, we're seeing people be successful. How are your customers and partners using Marketplace today, how does it work, I mean, do they just call up and say, "Hey! Dave I want to get in the Marketplace." I mean what, I mean, obviously downloading services, enabling services makes sense. How is it working? Like what do they do? Like what's the model? >> So, let's start from the customer and walk backwards. You know Amazon talks about working backwards from the customer. So typically in a company will be a set of developers who are building on us and they'll have a set of architects very often they've a few cloud architects and across the set of software, networking, security, database, dealer analytics, BI, DevOps, all the way to business apps. There'll be a set of architects saying, "What's the best software as we move to the cloud? "Do we bring what we had, or do we buy new?" So the architects are recommending to the developers, "Hey, for your project, here's a good tool." So in the buyer, architects are recommending, and then the developer gets told you can use these vendors. On the seller side of things, software companies like Matillion have to decide "How do we reach the AWS customer?" and then they have to package up their software, put it in our library, and make a bunch of decisions that he can talk about, and then they make it available. >> Yeah Dave it's been interesting to watch kind of the maturation in the Marketplace. It's been large for a number of years but how your partners have changed how they package software, last year there was a discussion that you know, it changed how billing is done, so that Amazon can help make it just seamless for customers, whether they buy service from, you know, AWS or beyond. You know, give us, you used to talk about the customer and the partner, walk us through a little bit of that maturation and how that's that's gone. >> So, we're a six year old service and so we you know we're agile, we keep releasing features. So last year in April, at San Francisco, with Splunk we launched something called SaaS Contracts, which was a new API for SaaS vendors and now we have over 300 SaaS companies in the last year that have developed to that API. So a software vendor can decide they want to deliver as a software package or as an AMI so it could be SaaS or AMI. And we also provision APIs. So we're constantly introducing flexibility on how that vendor can price and package and the more we innovate, the more software companies use our features. >> Yeah, I'm sure you get asked, you know, what's the concern, is there concern, from some of the SaaS players that, "Oh, I'm going to go in there, "I'm going to price and package the way Amazon does, "what's to stop them from just kind of "duplicating what I'm doing and becoming a competitor?" >> You know, that question comes up a lot, and you know look, the software industry is $550 billion. It's growing at 6% a year which is $30 billion and AWS all late last year did about $18 billion. So the software industry is growing by an AWS a year, and the reality is there's so much innovation going on that whatever innovation we're doing, you know, there's lots of room for other software vendors to innovate on top of our stack, 'cause we live in an expanding universe. >> Stu and I always joke, it's like so funny, we look at the, we watch all the cloud, of your competition, you Google Microsoft and Oracle, IBM, whatever, and they all quote numbers. If you factored in the ecosystem, in your number, the cloud revenues would be, I mean trillions. So you know, you guys I know you don't include that, in the numbers and like Microsoft does put Office in there, so it's kind of apples and oranges and so you know, Matthew I want to ask you, 'cause you're a partner. You're doing business on that, so, this is the formula we've been seeing that's been working where, the ecosystem growth, rising tide floats all boats, clearly that's Amazon's strategy. And they're opening up their platform to partners. So talk about what you guys are doing. First, take a minute to explain your company and then talk about your relationship to the Marketplace, and how that's working, and the relationship, how you make money, and the business model behind it. >> Yeah sure, and thanks for the question and for having me. So first of all Matillion, we're a software company, an ISV we make cloud-native data integration technology, purpose-built for this new generation of cloud data warehouses. For us that's Amazon Redshift, it's also Snowflake, and we sell both of those products on the AWS Marketplace, So customers are using us any time when they want to compete with data, so drive product development, or service their customers better, or in fact, become more efficient in the way they run their IT infrastructure. Perhaps migrating an on-premise warehouse into the cloud. So we developed that product through 2014-15, and we were looking for a route to market. Being honest, originally we were going to set it up as a SaaS business, and I saw a pitch from one of Dave's reports, a guy called Barry Russell, talking about AWS marketplace. We're like, okay here's a platform that's going to allow me to deliver my software anywhere in the world to any AWS customer pretty much instantly. More to the point, it's going to deliver my customer a really excellent experience around doing that, from a performance point of view, my software's going to go to go into their VPC sat right next to their data sources, in their Redshift cluster. From a security point of view, that question, very important in data integration, just taken totally off the table, so inside that firewall inside their VPC and of course super convenient and simple to buy. You just access AWS Marketplace, pay with Genuine Cloud Economics by the hour and stand it up pay a few AWS bills. So a really compelling way to deliver the software. >> Was there a technical integration required on your end? I mean like, there's some clients that are born in the cloud Amazon, some are, have built their own stuff. Do you have to, I mean, where are you guys fit into that? One, are you using Amazon? If not, was there any integration piece that you had to do? And if so, what was the level of work required to integrate? >> Yeah, and to be honest, I think this is, you know, the key question on how to be successful selling in this this kind of landscape of public cloud vendor marketplaces and, and the public cloud. So, I mean we're a born on AWS and in fact are born on AWS Marketplace products, and that intersection of product engineering with the route to market, and it's not just the software, it's also the things you surround it with, like great quality content, online support portals, videos, a really great launch experience, that means you're going to be clicked to running our software, commercial-grade ETL tool in under five minutes, free for the first 14 days and then by the hour billing, you know, there's a lot of different angles that go into that and you've absolutely got to be thinking about it. Other people are being successful just kind of sticking their products on the Marketplace and using it just as a billing mechanism but I think for us one of the reasons we've been able to drive great customer resonance and growth, is having that intersection of engineering, content and the Marketplace, together. >> Matthew I wanted have you talk to me a little bit about Matillion, 'cause when I think about kind of customer acquisition, you know Data Warehousing Market's been around for a long time. Redshift's been doing phenomenal, I mean for a while it was the largest, you know, fastest growing product in the AWS you know, portfolio. Being only through the Marketplace, does that, you know, how does that help you get customers, how do they learn about you? Do you ever worry about, like, oh well they just think I'm an Amazon service? Maybe that's a good thing. You know, I'm just curious about kind of that whole go-to-market and relationship with the customers being, you know, super tight, with AWS, you said Snowflake's in there too, so yeah, I'm just curious about that dynamic. >> Yeah, I mean the, the AWS only service thing that historically was a pro and a con. So back in the day we were just Redshift. We're now a couple of other data warehouses as well, you mentioned Snowflake, that's quite right. So that's allowed us to kind of move up the value chain with our customers and give them some choice, which they wanted. Yeah, I think in terms of the go-to-market economics, I mean, we all say this, sometimes its glib, here I think it's authentic. You want to start with what's best for the customer, right. And so we're delivering with genuine cloud economics. Our product starts at $1.37 an hour and yet it'll scale to the world's largest enterprises, and if they don't like it they can turn it off. Typical SaaS products, you're actually signing up for 12 months. So you're not that focused on keeping your customer happy for 11 of those months. Me, I need to keep that customer happy 100% of the time, because he can turn it off any time he likes. >> Yeah, yeah, I always wonder sometimes as an analyst, you know, should it be called a SaaS product if I'm signed into a year or multi-year contract. >> Yeah, so really interesting dynamic of our business is our entire revenue drops by 15% Saturday, Sunday, and it's cause people are turning off dev instances. They come back on Monday morning. Now, as a CEO I could worry about that and say, "Where's my 15% gone Saturday, Sunday?" Actually I'm delighted, 'cause it means my customers are only paying for value they're getting out of the product. >> And then, so about the business model, I wanted to drive into that. I want you to explain and give some color commentary to what your choice was if you didn't have the Marketplace. Hire a sales force? That's going to cost you some money. First you got to find people. >> Yeah. >> Push it to about a thousand customers, run ad campaign. Did you guys do the analysis and say, "Whoa, this is like A,B"? >> Well, so when we launched this product, we were a 12 man company, so I'm not going to say that we rolled in a management consultancy to work that stuff out for us, being honest. But we took a view. I think there have been two big things. First of all, in those very early days when you're trying to find some product market fit, you're trying to find some customers. That global reach instantly delivered by the Marketplace is amazing. So I'm from Manchester UK, apologies for the accent, that's where a good part of our business is still based, although we have offices now in New York and Denver and Seattle as well. If you drill a vertical hole downwards from Manchester, UK, you pop out in Melbourne, Australia that's the first customer we picked up on AWS Marketplace, still a customer today. So in those early guerrilla days, >> No travel, instant global footprint. >> And they were spending money with us before we spoke to them for the first time as well. Now today, we do have a sales force, of course, but it's not a sales force that's closing big deals. They're being value-added, and additive, they are escorting customers through the buying journey, and we've got just as many pre-sales guys as we have sales guys just helping the customer 'cause that's what we want to do. They're going to use the products and consume it 'cause it's easy to do and to turn it off. >> So you focus the high-value activities with the high value employees on the right customer mix, while the rest is just kind of working through the cloud economics. >> Yeah, that's it. Hey, we have to do marketing, of course. We're here doing an event, it's going great. We were lucky enough to be mentioned in the, in the keynote this morning, so our booth's been swamped, >> And now you're on theCUBE, you're a CUBE alumni. >> Exactly. >> The world's going to see, going public next. >> One of the things we do on the marketing front, is when you come into Marketplace and you talk about how we onboard a seller, we have a whole team who we call category managers and so there's an expert over each subject area such as data analytics or networking or security and we not only give them the engineering advice on how to package, on how to onboard and by the way we didn't curate manage so we publish his AMI and he tells us what regions he wants it to go to. And so he may say, clone to Korea, but I don't want it over here, so the seller could decide geography but then we lay on a business go-to-market plan and we actually develop a joint go-to-market. And so we'll do co-marketing with our sellers, and they can choose whether it's by country, by territory, is it large enterprise, is it small business. So there's a set of business advice that we lend. >> So you apply some best practices and some market intelligence on the portfolio side. >> Exactly. >> And the sector. And then we have all the data right? We provide these guys with a real time API they're pulling data off the API every day and what's happening, and so were monitoring that data and everything's measured so this is a digital channel. And then of course the ultimate thing we do when I ran my last SaaS company, we provide the billing platform. And so the buyer comes in on the AWS account, uses the AWS account, so now we bill on behalf of, we do the collection from the buyer, and then we disperse the funds back to the vendor. >> You're making the market for 'em, and they're still doing their blocking and tackling. >> The customer gets a really good experience on their bill and then the customer spend actually becomes visible in Cost Explorer, so we've tagged everything, so we also tagged it so that it's "this is Matillion", and so the customer knows "I'm spending X much on, "X amount of dollars on Matillion on that stack." >> So you're a sales channel and you're adding more value, Matthew, if someone asks you, just say I say, "Hey Matthew, look I got a great product and it's kickin' ass, I want to get into Marketplace" what do I do, what advice would you give me, what would you say? "Oh, I'm skeptical of Amazon's Marketplace" or, "Hey, I really want it". How would you talk to those two tubes of audiences? >> Yeah, so I think the first thing, and we alluded to it earlier, is I think really hard about that 360 experience of packaging the product and how it's launched, that's engineering in the software itself. You need to think about how the customer's going to interact with it, but you also need to clothe that software with great quality content and support, and finally the right type of go-to-market motion around that. And one of the big benefits for us in terms of the AWS Marketplace has been the efficiency of the sales model. So we've got really efficient go-to-market economics and also the types of customers that we sell to and we've, for a company of our stage, you know, we're a post series B, high-growth software company, but for a company of that stage, we are, have a disproportionately high number of global 8,000 global 2,000 customers, that are because Marketplace takes away the barrier of selling into those guys. So as advice on how to be successful, I'd focus on that packaging side and advice as to why to do it, you've got instant worldwide reach into the traditional stomping ground of the the startup other tech vendors but also into the world's biggest software users. >> A virtuous circle, faster to the customers, at a lower cost structure, you still make money, everyone's happy, sounds like a, the Amazon business model. >> It is. >> Great customer experience, great selection, and you know, adoption by the customer, and then continued innovation. Another thing that we do is we have a portal where these guys are publishing new versions, so it's not a one-and-done model. So as these guys update their models, their engineers just publish into seller portal and then that new version comes in, and then we publish that new version out to the customer. So there's a refreshing of the AMI so the latest version is up there. >> And Werner's keynote today really highlighted it's not just about developers anymore, it's about the business teams coming together, pushing stuff real time to the Marketplace is now a business ops model and it's really kind of coming together with entrepreneurial traction and the footprint's a gateway to the world. You have a world footprint. >> Yes, it's 21st century software distribution and really the buyer gets the ultimate choice and you know the buyer can go for an annual contract or for by the hour, so economically, lots of choice. >> Alright, so I'll put you on the spot to end this segment. I'll be a naysayer. Dave you got competition out there, what, what's in it for me? How do you compare vis-a-vis the competition? >> Dave: You're a software vendor? >> Yeah. >> As, you're playin' the persona? >> Yeah, I'm a software guy, I'm looking at marketplaces, you know, why you guys? >> You know, you have to go where the customer is, ultimately you have to decide who your customer is. You know, Werner talked this morning about the tens of thousands of companies that are up on AWS, and so, if I've got 170 thousand buyers showing up on my marketplace, and they're intentional on their budget, and you're a software vendor you get reach, and given what Gartner says on where we are, on fulfilling share in cloud, is where the customer is. >> And if you're a service too, software service APIs, it's even better goodness there. >> Yeah we have thousands of consulting partners also use Marketplace as a library so if you're an SI, and we have tens of thousands of SIs, those SIs also view Marketplace as a good place to find software for the project. >> You've been in this business for a while. I mean, we've always talked about this on theCUBE, I want to ask you real quick, I mean more than ever now, ecosystems and communities are paramount, priority. Especially with this kind of dynamic 'cause that ecosystem is that fabric to enable, you know, go-to-markets that are seamless with economic scale, visibility into the numbers, what's your reaction when someone says that comment to you about community and an ecosystem? >> Well you know, an ecosystem is a collection of software companies that inter-operate. And the reality is that our customers are rewriting all the software. The world is rewriting its software portfolio. You know, a large customer I went to see recently has a thousand software applications. Now as they move them all to the cloud, they're either rewriting or they're modernizing, but as they rewrite them, they're going to use distributed services, they're going to use micro-services. And so they're refreshing their entire stack. >> Yeah, it's a re-platforming of the internet. >> Transformational. >> Dave McCann, who runs the Marketplace for AWS. Really kickin' butt out there. Congratulations on all your success, and I know there's a lot more to do, I wish we had more time, I'd love to do a follow-up with you and find out what's going on the Marketplace. and Matthew a partner, congratulations, hyper-growth, hittin' that trajectory. Congratulations, we'll come visit you in Manchester and then we'll drill a hole, we'll go to Melbourne right down there. Appreciate, thanks for coming on theCUBE, thanks. >> Thank you. >> I'm John Furrier and Stu Miniman. More live coverage after this short break. We are in San Francisco, live for AWS Summit 2018. We'll be right back. (techno music)

(techno music) >> Narrator: Live, from Barcelona, Spain, it's theCUBE, covering Cisco Live 2018. Brought to you by Cisco, Veeam, and theCUBE's ecosystem partners. (techno music) >> Okay, welcome back everyone. This is theCUBE's exclusive coverage. Day two. We're wrapping up the show here at Cisco Live 2018, in Europe. We're in Barcelona, Spain. The past two days we've been here. I'm John Furrier with Stu Miniman, talking to the most important people at Cisco, the top executives, some developers, and really kind of getting the lay of the land. It's the first time theCUBE has been at Cisco Live in its existence, so it's great to be here. Stu, Cisco Live, a lot of smart people. So it's great to have theCUBE. The Cube fits beautifully with Cisco Live because you've got people sharing, you have great, smart networking guys, but they are also doing applications. This is really an awesome opportunity because this is like the perfect storm for Cisco. This is an opportuity to galvanize their base, grow them into the new talent to move forward in this cloud edge world, where the network needs to be more intelligent. This is your wheelhouse. You have been covering this for a long time. >> So, John, yeah, I was looking forward to this. It's been years since I've attended Cisco Live in person. There is a term we haven't talked about a lot this week, but I think it fits. It's the digital transformation. And Cisco is in the midst of this transformation. I said in our open on day one, my barometer was going to be, look how is Cisco doing becoming a software company? Of course, things like IOS have been in the guts of what they did from networking, but being here in the DevNet Zone. DevNet, Susie Lee's team, really helping to drive some of that transformation. We had a great conversation with Rowan talking about the future. Talking about apps. Talking about so many of the different things that Cisco is doing to not just be boxes and ports. Hardware still an important piece. >> Yep. >> I'm actually concerned that maybe they have a little bit of that hardware holding them back a tiny bit because Cisco has skills there. They have lots of expertise. It might be mostly software, but even when they talk about things like collaboration there is hardware underneath a lot of that. >> Stu, Rowan Trollope, who is the SVP, general manager of the applications team, is the rising star. He is being promoted, and watch. This is a signal from Cisco. They recognize it. So, we heard from Andy Jassy at AWS re:Invent, there is the old guard meaning, they are talking about Oracle, and then the new guard, trying to obviously position themselves as the new guard to carry customers into the future. Rowan Trollope, on his keynote yesterday, who the big story cause the CEO wasn't here. He was the lead dog. So he's getting promoted. He was telling about the future. So the question I have for you is, as an analyst, is Cisco an old guard, or are they a new guard? Or, are they moving to be a new guard? What is your opinion? >> Yeah, too soon to say. Cisco was one of the four horsemen of the internet era. Absolutely, they should have a place going forward. But look, they're not one of the big public cloud providors. They don't sell a lot to the hyper-scale players. But, they have a very strong position in a lot of places. Still dominant in traditional networking. Do very well in collaboration. Have a lot of software pieces. They have made a number of acquisitions. The telecompany we had tracked before doing well inside of Cisco. AppD, lot of buzzwords going on. We got to learn a bunch about Spark this week, John. Heck, even little tidbits I got. There is these two colored globes sitting behind you. It's like, oh, it's Alexa apps. And there's been people doing developer labs this entire week. So Cisco, part of helping to educate and do that transformation. Other companies, like Pivotal, is a partner. Lots of partnerships. And not just the traditional infrastructure companies, but we heard about what they are doing with Google, with Apple, and others. So, I'm not ready to anoint Cisco as a winner in the new world. But, if multi-cloud, which I'd love to get your take on, What you think with the multi-cloud strategy is. But, Cisco at least has a right to be at the table. They've got strong customer relationships. Strong in the enterprise. Strong in service providers. >> But if Oracle is an old guard, then why isn't Cisco? I mean, Oracle is plumbing. They have these database deals. They're not going anywhere soon. So, you can make an argument that Oracle is not going to be displaced anytime soon, cause they have the massive deals. But a lot of people will say, and we even said, that Oracle's relevance is waning with new database growth happening outside the proprietary database. So, is Cisco relevant? >> Yeah, John. It's a good question. So for one piece, if you say okay how are they doing on the transition to becoming recurring revenue rather than boxes, they still have quite a ways to go. They are not far enough along that journey. But, my measuring stick was how much are they a software company? How much are they an infrastructure company? They're kind of straddling the line. They are moving up the stack. More than some of the other initiatives in the past. It's taken hold. Thousands of people, so I give them good marks, John. What's your take? >> I mean, I don't know. I think, here's my take on Cisco. Cisco knows the networking. You can't, like I was saying with Oracle, they're not going anywhere. No one is going to rip out Cisco and replace it. There's nothing else to replace it with. I mean, there is no other competition, really. The competition to Oracle, I mean Cisco, is not being on the right side of history. So to me, I think Cisco should be worried about one thing, making the bet wrong on architecture. So, they own the network. The other thing that people don't know about Cisco, that is a competitive advantage is, they know the edge of the network. They have been doing edge computing since it existed. So, okay sending it out to IOT is not a big deal, in my opinion. I think that is going to be an easy get for Cisco. Extending it to wireless, they have that with their deal with Jasper. That's interesting. That's going to be a game changer. But that's not going to be their problem. Wireless, human, cars, that's the new edge. That's just an extension for Cisco. That is a major advantage. So competitively speaking, I think that is a real point that they are going to really nail home that a lot of people don't understand. The second thing is that their DevNet program is showing that they're upgrading and advancing their capabilities up the stack and bringing along with them their entire developer consistencies, which were essentially network engineers. So, they were once the rock stars, those network engineers, of any enterprise. You go into any enterprise you say, the network engineers, they ran the show. Now, the threat is coming from alpha perspective from developers. So now you have this kind of dynamic going on Stu, where the network engineers need to move up the stack to meet the new developers, and that is where the rubbing is going on, right. That's where the action is. That's what DevNet's doing. They're doing a masterful job, in my opinion. They are not over driving, not overplaying their hand. They are in the cloud native rule with DevNet Create. So I think their best move is to just continue to march down that path, but they got to own the IOT edge. Without the IOT edge, Cisco could crumble. >> Yeah, so a couple comments on that, John. One, IOT, Cisco started messaging IOT really early, and they've gone through a couple of iterations, so that what they're talking about IOT wasn't what they were talking about a few years ago. I like their story much better today. Absolutely, both from a wireless standpoint, they have got the hardware gear like Meraki, they talked on stage. From the software standpoint, like Jasper. One of the areas we got feedback from the community, John, they are talking about containers and Kubernetes, sure. They're not involved with serverless yet. And that is a blindness. Is it something that the big public cloud's are going to do there? >> Well I have an opinion on that. >> They're, I'm sorry? >> I have an opinion on that. >> Okay. >> Cisco is running billion dollar partnerships. They're doing billions of dollars in revenue. So I think you can't really judge them there by their participation in these open source projects yet. I think they've got to bring something to the party quickly. I think it's too early to tell, I would agree with you on that point. On this piece, they've got to go to open source. And they've got to figure out a way to do it in a way that is not distracting from the core mission. If I am Cisco, if I'm advising the CEO, I'm like, march with the network as the value, maximize the software play, and don't blow off open source. They cannot blow off open source. Are they brilliant at open source right now? Outside of Lew Tucker, who do we see? >> Look, no. I mean, from a network standpoint, Cisco has been involved across lots of projects, not just open stack containers. We've talked about what they are doing with Kubernetes and Istio. >> Give them a grade, open source, give them a grade. A, B, C, or D, or F? >> You know, I tell you at least a strong B. >> Okay, that's decent. >> Yeah, I mean look, they are not monetizing open source. They're not rallying around the flag. They are doing great with developers, which John, I guess we say, is it contributing for contributing sake or how does it fit in the business model? We did a couple of interviews here where it said, no open source, we're not negative on it. They're not pushing against public cloud. They're not against these things. It just doesn't fit as much into their environment. >> I think the multi-cloud thing, well getting back to you're question about containers. So containers are being commoditized. Red Hat just bought Core OS. Docker's Docker. Docker's got a business model challenge. We've reported on that, Stu. And we're doing a feature report on it now. And so what are they going to do? But still, container is a goodness. People like containers. Is it super complicated? Not really. Is Kubernetes strategic and important? Yes, that's obvious. So the service mesh is interesting to me. And I think the net devops positioning that they announced here, Cisco is bringing this devops culture to the networking world. They are kind of creating a new devops ethos at a networking layer. I think that's going to be a really, really big deal. And that is either going to be a go big or go home situation. It is either going to work like a charm, or it's going to fail miserably. So, what do you think? I mean the smell, it lines up with Istio, it lines up with Service Mesh, programmable infrastructures, managing micro services. I mean, it kind of hangs together, Stu. What do you think? >> Yeah, I mean, John, it goes along with the whole trend we have been seeing. The people that were managing the network can't be managing devices, or even groups of devices. Intent based networking is one of the big items coming into here. It's how do I let the machine learning, the programmability help me in this environment because it is only going to get more complicated. The edge you talked about is critical. IOT keeps growing. And it's not something that people alone can do, it needs to be people plus machines. And I've seen nice maturation of how Cisco does this. Cisco, to be critical on Cisco for the last decade, is thy have thrived in complexity. And I think they are trying to get over that some and shift their model to more of a softer model. >> Well, Stu, I think you nailed that this. So here's my take. Software model allows them to scale. With machine learning, they can do what Facebook and Google has done. So if you go to Google, for instance, how they manage their data center, they have site reliability engineers. They have changed the IT model to scale the number of machines that they have. The number of devices that are coming on the network cannot be physically managed by people. So this means machine learning and software has to automate. That is Cisco's opportuity. I'm not seeing it clearly right now, but if that's what they're talking about, that to me will be the tell sign. If Cisco can create a site reliability engine, like what Google did for networks, that's a game changer. Alright Stu, final thoughts. Let's go through, let's riff on what we saw here. Obviously Barcelona great city. The weather's been phenomenal. It's been really great. Good food, good tapas. But Cisco, good vibe. Cube in the DevNet Zone, it's been really interesting to watch. People love the labs. It's very chill and relaxed, but very active. The keynote looking forward, not looking back. Notable point, the CEO wasn't here. So that to me-- >> It's the end of the quarter and he was just at Davos, and there is a bunch there. He didn't come last year either. >> John: Okay. >> But Chuck will be at the Orlando show. Hoping we'll have him on theCUBE when we go there. We're going to be at the Orlando show. We've got theCUBE at the DevNet Create show again. And John, chill I think was the right word. And part of me is wondering, is it because we are here in Barcelona and it is just a relaxed atmosphere of a city. I've really enjoyed it this week. Or, network people, it used to be a little bit uptight. I mean, it's the risk and fear are things that kind of ruled in networking before. And people seemed a little bit more chill here. >> Pros and cons, Stu. Or observations that were good and not so good? Observations to me were, on the good side, was a lot of activity in the DevNet Zone. A lot of energy in the hallway, and in Barcelona wise. There was a lot of European flavor. The signal I thought was good was the keynote was packed. You and I thought it might be empty, right. But people strolled in. They packed every seat. The other area is that you can just tell people were interested in the new direction. The critical analysis to me would be, I didn't hear enough data driven. I want to see more data driven, but I didn't want to hear AI is changing the world. I want to see real, practical examples of data-driven impact to data center and I wanted to see more meat on the bone on multicloud. Because I didn't really see much there, I just heard about it. It was almost like a, "we're going there," not a lot of data driven, not a lot of multicloud. Outside of that, I thought it was really, really a great conference. >> And John, we had some phenomenal guests here. So on the data driven piece, Michelle Dennedy, the Chief Privacy Officer, really good piece and she said, oh, you guys are missing it if you didn't hear the data-driven. And she drove home in the interview with us how Cisco is involved there. So, John, there is a lot going on. Cisco is a big company. Big show. There is a lot we are not going to be able to get. Reaz Rehan, got the IOT piece, seeing some new players. Really helping to shift along this transition. Love Susie Lee's discussion about the four year transformation that we are talking. And Rowan, strong executive, good bench at Cisco. Stock has been up, like most of the tech stocks the last few months. >> I mean, we forgot to mention that, good point, Stu. New sheriff in town on IOT, that was a great interview. Again, Susie's at DevNet's hit a home run here. She's got a great group she's developing. Awesome stuff. >> So last thing, John. If Chuck Robbins gave you a call and said, Hey John, I've got that 10, 20, 30 billion dollars that I might be able to play with. Any final advice for him? >> I would really sure up the collab stuff. I think there is a distraction there from the sense of that I get why its developing. But if you use WebEx or all these tools, you're biased. You don't understand, it's the tools you use. You're just going to use it. I think that is a great data. And I think that the collab apps, if you look at it not as a software play, but as an IOT edge device, data-driven device. That's a good play. So I like the direction. I would throw a lot of dough at the collab and make that an IOT edge feature. Cause they can cross connect great data from WebEx to Spark. And I think Spark feels like an app. I want to see, it's not an app. It's a platform. >> Look, it's a messy space. Who leads in those spaces tends to be a lot more the consumer companies that did this. Cisco killed most of their consumer stuff. Then they did, after they had Flip in the set top boxes. So very different Cisco. What assets do they have? >> But to answer your question, Stu, what I would say, I would say Chuck, own the edge. This is a strategic imperative. I would throw the kitchen sink at owning the edge of the network. That means from the core to the edge, and I'd push that edge all the way to the wearables. All the way to the implants in your brain in the future. Own it end to end. Lock that down. Make it dynamic. Make it programmable. That is a holy grail moment and to me, lock it down. And everything will fall into place. You'll have cloud traction. You'll have app traction. Everything will happen. >> And they don't need to be the owner of the public cloud to be successful in what you said, John. So good strategy, I like that. >> Alright, theCUBE, with all the strategy for the CEO, Chuck Robbins, who's watching. Chuck, good to see you. Thanks for having us at Cisco Live. Stu, great analysis. I want to thank all the guests, thank the crew here. Tony Day and the team, and Brendan and Brian, great job. And all the people back home at theCUBE network and theCUBE network operating center in Palo Alto and Boston. This is live coverage. This is our wrap-up from Barcelona, Spain. Cube is calling it a day here at Cisco Live 2018 in Europe. Thanks for watching. (techno music)

>> Narrator: Live from Austin, Texas, it's theCUBE, covering KubeCon and CloudNativeCon 2017, brought to you by Red Hat, the Linux Foundation, and theCUBE's ecosystem partners. >> Okay, welcome back, everyone. This is theCUBE's exclusive coverage live here in Austin, Texas for the CNCF's two conferences, CloudNativeCon, which was yesterday, and two days, today and tomorrow, KubeCon for Kubernetes' conference. This is theCUBE, of course, from SiliconANGLE Media. I'm John Furrier with my cohost, Stu Miniman. Our next guest, Dan Kohn, is the executive director of the CNCF, the man who put it all together. Congratulations. Welcome back to theCUBE. Good to see you. >> Oh, absolutely. Thrilled to have you guys back here again. >> So you kind of doing a victory lap here now, high fiving each other? >> Dan: Great hugs. >> John: Great event. >> Laughing: I'm glad it's a good event, and I am hearing fantastic feedback that folks are thrilled to be here. But we sort of describe this moment for the organization and the community as being the end of the beginning. >> John: Yeah. >> Where we now have all the major cloud vendors, all of the biggest enterprise software companies. We have a core group of 14 projects anchored by Kubernetes, but tons and tons of work in front of us. >> And tons of success, so I'm just going to read a couple of highlights from yesterday. There's a lot today. Baidu joins the CNCF, a lot of scaling production application examples, 31 new silver end-user members joined, Alibaba Cloud update to platinum, CoreDNS 1.0, Containerd, Fluentd, Jaeger, tons of news. Obviously, we've been pumping out the coverage. Today, again, more and more great goodness. But really interesting is that you guys have put a frame around this community to allow it to grow, to fertilize the open source vibe, which is all cloud but yet scaled. And you put up a slide I want to get your reaction to that I thought was compelling yesterday during your keynote. It was the flywheel, circle, and it said projects, products, profit. >> Dan: Right. >> And not that you're promoting profit, but you're not hiding the ball, either, saying, hey, you know what? There's a lot of commercial interest in cloud, obviously. We saw AWS' success last week. And that is if you create good products in this community framework, there's profit to be had. >> Right. So first of all, I should admit to plagiarizing that slide from Linux Foundation Executive Director Jim Zemlin. >> And similarly, I think you can look at a lot of aspects... >> It's an open source feature. >> Dan: Yes. >> Free for you to use. >> John: Right. >> Similarly, I think there's a lot of ways in which Kubernetes is trying to build on the success of Linux. And Jim even describes Kubernetes as the Linux of the cloud. >> John: Yeah. >> Stu: Yeah. >> John: That's a good point. >> Dan, one of the things we've been talking around Kubernetes is you talk about scale. >> Dan: Right. >> Talk about scale of the CNCF. You have 4 to 14 projects. People are a little worried when you get all the vendors around here and there's all these projects. It's a foundation thing, it's going to go off the rails. >> Dan: Yeah. >> Customers aren't going to have a voice. How do we make sure we kind of learn from some of the things that other projects have had challenges with in the past? >> And I think that's our advantage, which is the great thing about coming later than some of the other foundations, is we can look at where they had successes and where they had issues. And our aspiration for CNCF is to get to go make entirely new mistakes rather than replicating some of the issues that have come before. And so really from the beginning of CNCF, we had a somewhat unusual and frankly a little bit cumbersome charter where I describe it at times as a three-ring circus. We have a governing board made up of the vendors that are putting a lot of money into the community, but they don't get to run the projects and they don't even get to pick the projects. Instead, they appoint six of the nine members of an independent technical oversight committee, kind of like the Supreme Court. And then we have a third group in the end-user community that I'm thrilled to say is now up to 28 members in it. They appoint one of those folks. We finally got that working. We have Sam Lambert, the director of infrastructure at GitHub, who has just made a huge commitment to Kubernetes and is moving all their infrastructure over into it. Those seven appoint the last two. And so that body, and they just had their public meeting a couple hours ago. They feel very strongly about their independence, about their reputation, that they're trying to make very good judgments based on what they're seeing in the marketplace. >> That's interesting, the three-ring circle. I like how you put it. But let's talk about the end-user piece because I think that's critical. One of the things we were commenting earlier from the Lyft folks was you have a lot of end users who have built some large-scale systems out of their own sheer necessity. >> Dan: Definitely. >> And that is now being donated in. We saw Kubernetes come in with, you shepherded beautifully, went from Google, but you've got Lyft donating an amazing product convoy. >> This first convoy has a huge amount of excitement. And what was fun was, actually, on the same stage that they contributed back in LA in September, Uber contributed a separate project. Now, unlike Uber and Lyft, the two projects are in no way competitive- >> John: Yeah. >> Like Jaeger is really fantastic tracing one. But what they have in common is that they're companies that have had to grow from nothing to extremely high scale and then had problems that they solved. And they wanted to share that expertise with us. >> I want to get your thoughts on this. Because we've been speculating, on theCUBE, we've been kind of thinking, an editorial, but just that this is all good business. Now, that's pretty obvious, right? You're starting to see this kind of contribution, the gifts that keep on giving. These are significant code. >> Dan: Yeah. >> Not like, okay, let's start a little group and huddle and build something organically. You have real goodness coming in from Google, Uber, Lyft, and there's a million others. >> Dan: Right. >> How is that changing the game? Certainly accelerating it. That's really bringing goods to the table. >> Right. I think the whole... >> You have to manage it. >> Well, and for what it's worth, I don't actually manage the projects. And so we do provide a set of services- >> John: The community? >> -to them and we help them, we market them. But one of the unusual aspects of CNCF is that the projects do actually manage themselves. A little bit of guidance from the TOC, but we really are unusual in that sense. And that's one of the reasons the projects have been... >> And what's interesting is, to connect the dots, though, one step further, you're talking about a commercial entity donating massive intellectual property in the open for all the goodness of everyone else. But yet that flywheel is continuing. They're still using it. So it is inherently commercial dynamic. >> Right. And back to that circle, I think really the underlying concept is that companies agree that sharing key parts of their infrastructure has a huge amount of value to the whole ecosystem, to each other. And then they're absolutely eager to compete above that. And so you can look at it with the public clouds where we have now Amazon, Microsoft, Google, Alibaba, IBM, Oracle all at the table. They are absolutely fierce competitors. But they're saying that this specific software infrastructure layer isn't the area that they want to compete. They want to compete on all the value-added services, customer service, et cetera. >> Dan, I wonder if you can speak to how CNCF connects to some of the broader communities out there. Things like Kata containers got announced coming out of the OpenStack group. You've got a serverless track happening here, kind of extends some of where Kubernetes is going. How does CNCF fit into the broader... >> Sure. And it's definitely the case that all the innovation out there cannot happen in CNCF. Most obviously, everything that we do, almost everything depends on Linux. And so that's our parent organization, the Linux Foundation. But we've had a good collaboration with Jonathan Bryce from OverStack. They have two booths on the floor here at the show. And we've spoken to Clear Containers and RunV, the two predecessors in the past. But the part that I'm particularly pleased with for Kata containers is that it is an OCI-compliant runtime, that's another sister organization, and is really designed to work well for Kubernetes. And then they can pitch that and let the market go decide which container runtimes they find the most valuable. >> Obviously a lot of traction here in terms of the sentiment around service meshes and pluggable lock-in textures. That's been very cool. But security came up. So I want to get your thoughts around security, obviously storage and these older models around how to deal with storage and networking. Obviously, always in the action. >> Yeah. >> But security is top of mind for everyone. How is that being addressed? You know, talk is out there... >> Sure. I mean our philosophy on this is that moving to cloud-native and particularly the continuous integration and continuous development that goes along with that is the most important step that you can do to help secure your infrastructure. And Equifax is the example everyone always brings up. But there was a case where they were using known insecure software and they didn't have the processes up to place where instead of doing quarterly updates or monthly updates, you want to be doing dozens of updates per day. And a cloud-native infrastructure allows you to do that. >> What's next for you? Because you've got great traction with both community response, and the community has been absolutely amazing, the quality of people, level has been great, but also at the funding sponsors. You've got a lot of people that are involved. What's next? What happens next? What do you envision happening? What's the plan, and then how do you view that evolving? >> Well, I hate to fall into the buzzword implosion here, but if you go back to the crossing the chasm metaphor, I think we're still very much just in the early adopter phase. 2018 could very well be the moment that we jump over to the early majority. And I do feel like this whole community now has the velocity to do that and that we're on track for it. But as that happens, there's just far, far more people who need to be educated so they understand the projects and the options and how to work with them. And then hopefully they go from just being consumers of these technologies to contributors and that we can welcome them into our community and hopefully get the advantage of their expertise as well. >> I want to get your thoughts on a comment that Stu and I were talking about. Stu, you and I were talking about the notion of value creation above the stack, and then how Kubernetes, although some could say being commoditized, but it's also creating value because with that consistency of Kubernetes, you can now create value. So we believe, and I want to get your reaction to this, because we think a whole new ecosystem dynamic will emerge of a new kind of ecosystem. And if this new app developer combined with software engineering, which is really going on, you're talking about the cloud, the app developers will just build in value, that value creation will be rewarded. That's where monetization will be happening. >> And if I could build off that... >> John: Yeah. >> Dan, I loved one of your opening comments. You quoted, "exciting times for boring infrastructure, "maybe too exciting." So this week we've been teasing out there's a lot of work to make that infrastructure boring. You've got everybody on this floor, the CNCF board, lots of new projects making that. Where the action is and what this is going to create is that application monetization and the speed and agility of being able to create these cool new cloud-native applications out there. So it's interesting dynamic, spans broad pieces of this, layers of the stack there. >> Yeah. Well, I will point out that there was an odd level of unanimity of just a ton of different leaders in the community, in keynotes from Craig McLuckie and Chen Goldberg and others where they all agree that Kubernetes is not by any means the ultimate answer or the final answer. I think everybody now expects to see Kubernetes as a core aspect of the infrastructure for software for the next decade or more. But there's a belief that there's a whole ton of value that needs to be added above it, particularly to try and show for a regular application developer who just has a PHP app or no-GS microservices or anything else what's the easiest way to go from having a piece of software and deploying it effectively. >> Dan, so it's interesting. You watch the people on the outside. They're like, oh, look at Kubernetes. They're all holding hands and saying Kumbaya. We know there's some spirited debates that happen- >> Dan: Definitely. >> In the code, some projects that are sometimes competing up there. Why has the community come together, and where are some of the areas that we still need to work on and improve to help customers going forward? >> And again, I think they have the big advantage of having watched other communities that didn't value community and consensus and the ability to work through their issues. And so thankfully, we just have a ton of really capable engineers who also have some of those social or personal qualities that they care about working these things out. And to date, at least, I think most of those disagreements have been settled pretty amicably and in a positive direction. I think there's still huge swathes of this space that are still up in the air. Storage is an obvious one where there's a ton of work going on in a storage working group of CNCF. Serverless is another where I think everyone agrees that the application deployment model of AWS Lambda is really exciting and has things that people should replicate and should be brought over to Kubernetes. But how that should happen, what the software is, et cetera, there's still, in fact, we have our first serverless track today here at KubeCon where several different competing approaches are all talking about what they'd like to do. >> Awesome stuff. And you also announced some dates for next year, December 11 and 13 in Seattle. >> Dan: Yes. >> Okay. >> Dan: That's a year from now. >> November 14 and 15 in Shanghai. >> Now, you and I met in Hangzhou in the lobby, which was just amazing. But I certainly am hoping to convince you to go back to China with us. This will be our first event... >> I got a three-year visa. >> Good, yeah, that's the exactly right one. But this will be our first event in China, which I think is just a huge opportunity. We now have Baidu, Tencent, Huawai, ZTE, a number of startups. There's just so much excitement for this space over there that we're really excited to satisfy. >> Stu: And Copenhagen in May. >> And that's the last one. Thank you. May 2 to 4 in Copenhagen, and we're really excited for the event, to bring it to Europe and the rest of the world. >> Okay. So you've been working like a dog, you've been working hard. I've seen you in China. It's serendipitous. But it's not without being mentioned that this has been great effort by your team and the Linux Foundation and Jim and the whole team. But congratulations. Are you having a pinch me moment? I know it's too early to do a victory lap. >> But you've got to be pretty excited. >> Yeah. It really has been a great thing for the foundation that we sort of accomplished many of our 2018 and 2019 goals this year. But I'm sure we're going to find plenty of stuff to do next year. >> And your goal for the next 6 to 12 months, what's on your top three to-do's, continue the momentum? Share your API for... >> Yeah. What's great is that we really have plenty of members. We'd always like to add new ones and serve the ones we have better. But right now, the focus is really about providing better services to our projects. All of them feel overworked. They would love help on documentation, on marketing, on messaging about it, and some of them need help with testing development and other things. So that's really what we're buckling down on. >> Great community are going to test them, being here on the ground, personally present at creation. And I was standing there with J.J. and Lew Tucker, OpenStack three years ago, talking about Kubernetes. We were kind of ripping. We couldn't have imagined, then, obviously, they bolted it on last year with your event. Now second year here, huge community... >> But you have 4,100 folks here, is more than the previous four events combined. >> Yeah, awesome. >> So it really is exciting. >> TheCUBE, always on the ground. And sometimes the squirrel finds a nut. We found a cloud-native foundation, part of the Linux Foundation. CNCF, Cloud-Native Compute Foundation, really a new, growing, and relevant community for cloud and a new way to do software and reimagine the future from software engineering to full application development, a new way. This is theCUBE's coverage, and we are here live in Austin. More live coverage after this short break. We'll be right back. [Techno Music]

>> Announcer: Live from Austin, Texas, it's theCUBE. Covering KubeCon and CloudNativeCon 2017. Brought to you by: Red Hat, the Linux Foundation, and theCUBE's ecosystem partners. >> Hey, welcome back everyone. And we're live here in Austin, Texas. This is theCUBE's exclusive coverage of the Cloud Native conference and KubeCon for Kubernetes Conference. This is for the Linux Foundation. This is theCUBE. I'm John Furrier, the co-founder of Silicon ANGLE Media. My co, Stu Miniman. Our next guest is Dustin Kirkland Vice-President of product. The Ubuntu, Canonical, welcome to theCUBE. >> Thank you, John. >> So you're the product guy. You get the keys to the kingdom, as they would say in the product circles. Man, what a best time to be-- >> Dustin: They always say that. I don't think I've heard that one. >> Well, the product guys are, well all the action's happening on the product side. >> Dustin: We're right in the middle of it. >> Cause you got to have a road map. You got to have a 20 mile steer on the next horizon while you go up into the pasture and deliver value, but you always got to be watching for it always making decision on what to do, when to ship product, not you got the Cloud things are happening at a very accelerated rate. And then you got to bring it out to the customers. >> That's right. >> You're livin' on both sides of the world You got to look inside, you got to look outside. >> All three. There's the marketing angle too. which is what we're doing here right now. So there's engineering sales and this is the marketing. >> Alright so where are we with this? Because now you guys have always been on the front lines of open source. Great track record. Everyone knows the history there. What are the new things? What's the big aha moment that this event, largest they've had ever. They're not even three years old. Why is this happening? >> I love seeing these events in my hometown Austin, Texas. So I hope we keep coming back. The aha moment is how application development is fundamentally changing. Cloud Native is the title of the Cloud Native Computing Foundation and CloudNativeConference here. What does Cloud Native mean? It's a different form of writing applications. Just before we were talking about systems programing right? That's not exactly Cloud Native. Cloud Native programming is writing to API's that are Cloud exposed API's, integrating with software as a service. Creating applications that have no intelligence, whatsoever, about what's underneath them, Right? But taking advantage of that and all the ways that you would want and expect in a modern application. Fault tolerance, automatic updates, hyper security. Just security, security, security. That is the aha moment. The way applications are being developed is fundamentally changing. >> Interesting perspective we had on earlier. Lew Tucker from Cisco, (mumbles) in the (mumbles) History Museum, CTO at Cisco, and we have Kelsey Hightower co-chair for this conference and also very active in the community. Yet, in the perspective, and I'll over simplify and generalize it, but basically was: Hey, that's been going on for 30 years, it's just different now. Tell us the old way and new way. Because the old way, you kind of describing it you're going to build your own stuff, full stack, building all parts of the stack and do a lot of stuff that you didn't want to do. And now you have more, especially time on your hands if DevOps and infrastructure as code starts to happen. But doesn't mean that networking goes away, doesn't mean storage goes away, that some new lines are forming. Describe that dynamic of what's new and the new way what changes from the old way? >> Virtualization has brought about a different way of thinking about resources. Be those compute resources, chopping CPU's up into virtual CPU's, that's KVM ware. You mentioned network and storage. Now we virtualized both of those into software defined storage and software defined networking, right? We have things like OpenStack that brings that all together from an infrastructure perspective. and we now have Kubernetes that brings that to fare from an application perspective. Kubernetes helps you think about applications in a different way. I said that paradigm has changed. It's Kubernetes that helps implement that paradigm. So that developers can write an application to a container orchestrator like Kubernetes and take advantage of many of the advances we've made below that layer in the operating system and in the Cloud itself. So from that perspective the game has changed and the way you write your application is not the same as a the monolithic app we might have written on an IBM or a traditional system. >> Dustin, you say monolithic app versus oh my gosh the multi layered cake that we have today. We were talking about the keynote this morning where CNCF went from four projects to 14 projects, you got Kubernetes, You got things like DSDU on top. Help up tease that a little bit. What are the ones that, where's canonical engaged? What are you hearing from customers? What are they excited about? What are they still looking for? >> In a somewhat self-serving way, I'll use this opportunity to explain exactly what we do in helping build that layered cake. It starts with the OS. We provide a great operating system, Ubuntu that every developer would certainly know and understand and appreciate. That's the kernel, that's the systemd, that's the hyperviser, that's all the storage and drivers that makes an operating system work well on hardware. Lot's of hardware, IBM, Dell HP, Intel, all the rest. As well as in virtual machines, the public Clouds, Microsoft, Amazon, Google, VM ware and others. So, we take care of that operating system perspective. Within the CNCF and within in the Kubernetes ecosystem, It really starts with the Kubernetes distribution. So we provide a Kubernetes distribution, we call it Canonicals Distribution of Kubernetes, CDK. Which is open source Kubernetes with security patches applied. That's it. No special sauce, no extra proprietary extensions. It is open source Kubernetes. The reference platform for open source Kubernetes 100% conformed. Now, once you have Kubernetes as you say, "What are you hearing from customers?" We hear a lot of customers who want a Kubernetes. Once they have a Kubernetes, the next question is: "Now what do I do with it?" If they have applications that their developers have been writing to Google's Kubernetes Engine GKE, or Amazon's Kubernetes Engine, the new one announced last week at re:Invent, AKS. Or Microsoft's Kubernetes Engine, Microsoft-- >> Microsoft's AKS, Amazons EKS. A lot of TLA's out there, always. >> Thank you for the TLA dissection. If you've written the applications already having your own Kubernetes is great, because then your applications simply port and run on that. And we help customers get there. However, if you haven't written your first application, that's where actually, most of the industry is today. They want a Kubernetes, but they're not sure why. So, to that end, we're helping bring some of the interesting workloads that exists, open source workloads and putting those on top of Canonical Kubernetes. Yesterday, we press released a new product from Canonical, launched in conjunction with our partners at Rancher Labs, Which is the Cloud Native platform. The Cloud Native platform is Ubuntu plus Kubernetes plus Rancher. That combination, we've heard from customers and from users of Ubuntu inside and out. Everyone's interested in a developer work flow that includes open-source Ubuntu, open-source Kubernetes and open-source Rancher, Which really accelerates the velocity of development. And that end solution provides exactly that and it helps populate, that Kubernetes with really interesting workloads. >> Dustin, so we know Sheng, Shannon and the team, they know a thing or two about building stacks with open source. We've talked with you many times, OpenStack. Give us a little bit of compare and contrast, what we've been doing with OpenStack with Canonical, very heavily involved, doing great there versus the Cloud Native stacking. >> If you know Shannon and Sheng, I think you can understand and appreciate why Mark, myself and the rest of the Canonical team are really excited about this partnership. We really see eye-to-eye on open source principles First. Deliver great open source experiences first. And then taking that to market with a product that revolves around support. Ultimately, developer option up front is what's important, and some of those developer applications will make its way into production in a mission critical sense. Which open up support opportunities for both of us. And we certainly see eye-to-eye from that perspective. What we bring to bare is Ubuntu ecosystem of developers. The Ubuntu OpenStack infrastructure is a service where we've seen many of the world's largest organizations deploying their OpenStacks. Doing so on Ubuntu and with Ubuntu OpenStacks. With the launch of Kubernetes and Canonical Kubernetes, many of those same organizations are running their own Kubernetes along side OpenStack. Or, in some cases, on top of OpenStack. In a very few cases, instead of Openstack, in very special cases, often at the Edge or in certain tiny Cloud or micro Cloud scenarios. In all of these we see Rancher as a really, really good partner in helping to accelerate that developer work flow. Enabling developers to write code, commit code to GitHub repository, with full GitHub integration. Authenticate against an active directory with full RBAC controls. Everything that you would need in an enterprise to bring that application to bare from concept, to development, to test into production, and then the life cycle, once it gains its own life in production. >> What about the impact of customers? So, I'm an IT guy or I'm an architect and man, all this new stuff's comin' at me. I love my open source, I'm happy with space. I don't want to touch it, don't want to break it, but I want to innovate. This whole world can be a little bit noisy and new to them. How do you have that conversation with that potential customer or customer where you say, Look, we can get there. Use your app team here's what you want to shape up to be, here's service meshes and plugable, Whoa plugable (mumbles)! So, again, how do you simplify that when you have conversations? What's the narrative? What's the conversation like? >> Usually our introduction into the organization of a Fortune 500 company is by the developers inside of that company who already know Ubuntu. Who already have some experience with Kubernetes or have some experience with Rancher or any of those other-- >> So it's a bottoms up? >> Yeah, it's bottoms up. Absolutely, absolutely. The developer network around Ubuntu is far bigger than the organization that is Canonical. So that helps us with the intro. Once we're in there, and the developers write those first few apps, we do get the introductions to their IT director who then wants that comfy blanket. Customer support, maybe 24 by seven-- >> What's the experience like? Is it like going to the airport, go through TSA, and you got to take your shoes off, take your belt off. What kind of inspection, what is kind of is the culture because they want to move fast, but they got to be sure. There's always been the challenge when you have the internal advocate saying, "Look, if we want to go this way "this is going to be more the reality for companies." Developers are now major influencers. Not just some, here's the product we made a decision and they ship it to 'em, it's shifted. >> If there's one thing that I've learned in this sort of product management assignment, I'm a engineer by trade, but as a product manager now for almost five years, is that you really have to look at the different verticals and some verticals move at vastly different paces than other verticals. When we are in the tele close phase, We're in RFI's, requests for a quote or a request for information that may last months, nine months. And then go through entering into a procurement process that may last another nine months. And we're talking about 18 months in an industry here that is spinning up, we're talking about how fast this goes, which is vastly different than the work we do in Silicon Valley, right? With some of the largest dot-coms in the world that are built on Ubuntu, maybe an AWS or else where. Their adoption curve is significantly different and the procurement angle is really different. What they're looking to buy often on the US West Coast is not so much support, but they're looking to guide your roadmap. We offer for customers of that size and scale a different set of products something we call feature sponsorships, where those customers are less interested in 24 by seven telephone support and far more interested in sponsoring certain features into Ubuntu itself and helping drive the Ubuntu roadmap. We offer both of those a products and different verticals buy in different ways. We talked to media and entertainment, and the conversation's completely different. Oil and gas, conversation's completely different. >> So what are you doing here? What's the big effort at CloudNativeCon? >> So we've got a great booth and we're talking about Ubuntu as a pretty universal platform for almost anything you're doing in the Cloud. Whether that's on frame infrastructure as a service, OpenStack. People can coo coo OpenStack and point OpenStack versus Kubernetes against one another. We cannot see it more differently-- >> Well no I think it's more that it's got clarity on where the community's lines are because apps guys are moving off OpenStack that's natural. It's really found the home, OpenStack very relevant huge production flow, I talk to Johnathon Bryce about this all the time. There's no co cooing OpenStack. It's not like it's hurting. Just to clarify OpenStack is not going anywhere its just that there's been some comments about OpenStack refugees going to (mumbles), but they're going there anyway! Do you agree? >> Yeah I agree, and that choice is there on Ubuntu. So infrastructure is a service, OpenStack's a fantastic platform, platforms as a service or Cloud Native through Cloud Native development Kubernetes is an excellent platform. We see those running side by side. Two racks a systems or a single rack. Half of those machines are OpenStack, Half of those are Kubernetes and the same IT department manages both. We see IT departments that are all in OpenStack. Their entire data center is OpenStack. And we see Kubernetes as one workload inside of that Openstack. >> How do you see Kubernetes impact on containers? A lot of people are coo cooing containers. But they're not going anywhere either. >> It's fundamental. >> The ecosystem's changing, certainly the roles of each part (mumbles) is exploding. How do you talk about that? What's your opinion on how containers are evolving? >> Containers are evolving, but they've been around for a very long time as well. Kubernetes has helped make containers consumable. And doctored to an extent, before that the work we've done around Linux containers LXE LEXT as well. All of those technologies are fundamental to it and it take tight integration with the OS. >> Dustin, so I'm curious. One of the big challenges I have the U face is the proliferation of deployments for customers. It's not just data center or even Cloud. Edge is now a very big piece of it. How do you think that containers helps enable the little bit of that Cloud Native goes there, but what kind of stresses does that put on your product organization? >> Containers are adding fuel to the fire on both the Edge and the back end Cloud. What's exciting to me about the Edge is that every Edge device, every connected device is connected to something. What's it connected to, a Cloud somewhere. And that can be an OpenStack Cloud or a Kubernetes Cloud, that can be a public Cloud, that could be a private implementation of that Cloud. But every connected device, whether its a car or a plane or a train or a printer or a drone it's connected to something, it's connected to a bunch of services. We see containers being deployed on Ubuntu on those Edge devices, as the packaging format, as the application format, as the multi-tendency layer that keeps one application from DOSing or attacking or being protected from another application on that Edge device. We also see containers running the micro services in the Cloud on Ubuntu there as well. The Edge to me, is extremely interesting in how it ties back to the Cloud and to be transparent here, Canonical strategy and Canonical's play is actually quiet strong here with Ubuntu providing quite a bit of consistency across those two layers. So developers working on those applications on those devices, are often sitting right next to the developers working on those applications in the Cloud and both of them are seeing Ubuntu helping them go faster. >> Bottom line, where do you see the industry going and how do you guys fit into the next three years, what's your prediction? >> I'm going to go right back to what I was saying right there. That the connection between the Edge and the Cloud is our angle right there, and there is nothing that's stopping that right now. >> We were just talking with Joe Beda and our view is if it's a shoot and computing world, everything's an Edge. >> Yeah, that's right. That's exactly right. >> (mumbles) is an Edge. A light in a house is an Edge with a processor in it. >> So I think the data centers are getting smarter. You wanted a prediction for next year: The data center is getting smarter. We're seeing autonomous data centers. We see data centers using metals as a service mask to automatically provision those systems and manage those systems in a way that hardware look like a Cloud. >> AI and IOT, certainly two topics that are really hot trends that are very relevant as changing storage and networking those industries have to transform. Amazon's tele (mumbles), everything like LAN and serverless, you're starting to see the infrastructure as code take shape. >> And that's what sits on top of Kubernetes. That's what's driving Kubernetes adoption are those AI machine learning artificial intelligence workloads. A lot of media and transcoding workloads are taking advantage of Kubernetes everyday. >> Bottom line, that's software. Good software, smart software. Dustin, Thanks so much for coming theCube. We really appreciate it. Congratulations. Continued developer success. Good to have a great ecosystem. You guys have been successful for a very long time. As the world continues to be democratized with software as it gets smarter more pervasive and Cloud computing, grid computing, Unigrid. Whatever it's called it is all done by software and the Cloud. Thanks for coming on. It's theCube live coverage from Austin, Texas, here at KubeCon and CloudNativeCon 2017. I'm John Furrier, Stu Miniman, We'll be back with more after this short break. (lively music)

>> Announcer: Live from Las Vegas, it's theCUBE, covering AWS Reinvent 2017, presented by AWS, intel, and our ecosystem of partners. >> Welcome back everyone, live here in Las Vegas. We're at AWS Reinvent. Day one coverage of three days of theCUBE, I'm John Furrier, the host this week. >> We've got two sets, our fifth year covering Reinvent. It's been great to watch. Every year we try to get in the VC panels. We just had Jerry Chen on from Greylock. We've got two more awesome friends of theCUBE in the community here. We've got Sunil Dhaliwal who is the founder of Amplify Ventures and Nick Sturiale with Ignition Partners. Guys, great to see you. >> Great to see you, John. >> Good to see you, John. >> Boy what a lineup it's been over the past three years, four years with Amazon, just watching them tear. Now it's all steamed ahead. Microsoft is totally gearing up. You can see them playing, what they're doing, they're pedaling as fast as they can. Google Play and the (mumbles) we're gonna compete on TensorFlow and other, little goodness, a lot more to go. You got Alibaba Cloud. Intel behind us is making (mumbles) chips. Good market on paper. >> Yeah. >> But we're seeing startups kind of get bought, not for what they wanted. Didn't go public. Skyhigh from Greylock. You see Barracuda going private. A lot of money to be made. Maybe the investment thesis of 200 million dollar fundings, that's over, is it over? Get a little bit of cash and get the critical mass and... >> Well, here's a question. Do you invest in these companies thinking every one of them is going to go public? Or do you think that a good number of them are gonna get acquired? And I think the investors that have done this for a while, and Nick's done this for what, like 45 years? >> I started when I was two, so. >> I've done this like two years less than you have, so I don't pretend I'm dramatically younger. But the reality is, these companies get acquired. And pretending that you're gonna pile into a company late and expect every single thing to go public I think is kind of crazy. And the people that are getting caught in that trap, I think they're gonna be in for a rude awakening. But look, you've got a billion six outcome for Barracuda, right? >> John: That was pretty damn good. >> And you know Skyhigh number hasn't been printed, but it wasn't a small one. Like, those are good outcomes. Those are good venture returns, if you were smart about where you got in. >> So I have a slightly different perspective, which is the real issue is that so much money moved into the late stage, and these companies thought that growth would always be linear even asymptotic. And so what happens is that their growth rate slows down and the cost of growth goes up, and suddenly the company's not quite as hot as it was a year ago, and so now the options for what they do have shrunk dramatically, and so you get exits like you just mentioned. And so part of the problem is is that entrepreneurs and investors really have to have a sober view of what is a business model that's durable over time and which ones really are gonna start to leak in their later phases. >> Well it's kind of a planted question for you guys, because you're early stage in Amplify. I've been following you guys, do a great job. You guys do a range of early, end growth. >> Mostly early though. >> The days of just laying back and kicking your feet up and throwing cash at stuff is over. You actually gotta do the work. It sounds like old school VCs. Greg Sands and I talk about this all the time. You gotta go in and be venturing. You gotta actually make it work. >> And that sucks, I was just told I put my feet up, I put some money in and then I get a distribution check at the end of it. >> That's what everyone thinks you guys do. What do you guys do every day? Take us through your day. >> It looks a lot like that except... >> It's so easy to be a VC, all you do is okay, yes, no, okay that's good. >> We got a dartboard. >> All you gotta do is bet on the good ones. >> Yeah. >> That's so easy. >> So there are what, 14,000 startups in the bay area, how many of them are worthwhile you think? >> It's a lot of work. Well old school, let's go back to the old school tactics, because you're seeing a couple things going on. You guys essentially pointing it out, you gotta do the work and pick the winners. But now that the business models are changing, right? You're seeing Amazon just ignoring conventional wisdom, and they're winning. The game is changing a bit in the business model side. How are you guys looking at that as you make investments? So you got the classic venture, bet on a good team, do all that stuff. What do you guys look at now in the marketplace for fit, scale, longevity, durability? >> I mean the stuff we care about the most is are you going after a big problem? Because I think a lot of the stuff we see, even with your great teams and great technologies, but you step back and you actually think, you know, that isn't a company, that's a product, or that's not even a product, that's a feature. And I think that's the natural outgrowth of what happens when you got 14,000 startups in the bay area, is there aren't 14,000 products that are companies worth having. What you have is, probably 12,000 features, 1500 products, and then like 500 real companies. And that's probably the biggest filter that you gotta apply on the way in, and it's maybe the hardest one to solve for, which is, roll this out seven years, nine years, because that's really what you're talking about when you're talking about building a public durable company is, what does this market look like way down the road? And is that a thing that can stand alone? And that's really, I think, the difference between the companies and the investors that do really well and the ones that can kind of squeeze by, knocking out a couple interesting outcomes. >> My favorite thing is that when you say we just pick the winners, is that nobody knows who the winner is a priori. If you knew that, that market would be gone already. And most successful companies that you read about, and they talk about the (mumbles) investors that were in it early, that's all BS. It's a million good things happen along the way, serendipity, a ton of hard work on the management team and the employees. So this idea that things are preordained is just silly. And I would tell you that you look at most really successful companies today, their business model is completely different than the one that the venture person backed. >> I mean it's always the classic, because I remember when I first started an entrepreneur in the 90s, the question was what's your exit strategy? It was a legitimate question at that time, and it was kind of a peg mark, okay, when I build a growing company and have an exit. Now the exits are, as you mentioned, buyers. And that's not necessarily a bad thing. If Microsoft's in a race to fill in their white spaces, man, I would crop up and get the crops growing, right? So you can say, okay, Microsoft. So you guys gotta kind of do a little bit of homework there, do some relationship work, and you guys are close to Microsoft, so. >> Yes. >> I mean, is that kind of the new playbook? >> Yes. >> How should entrepreneurs posture to this? I mean obviously they're gonna try to build a durable venture, but they don't want to be zig-zagging too much or pivoting. >> No. >> I mean Nick made the point earlier, which I think is absolutely the one to focus on, which is when you raise a ton of capital your options start to shrink. The more money you raise at the higher and higher price, there's somebody you gotta serve who's thinking about the even bigger pot of gold at the end of the rainbow. And honestly, when we look at, I'll take one company in our portfolio for example, and I think the Splunk story is right up there with it, If you look at Datadog, Datadog's huge here at this show. There's purple shirts everywhere and a massive booth, and they've been here for five years running or four years running. That business has barely touched the last round of capital they raised, let alone the round of capital before that. The capital efficiency of that business, not only is it gonna make it a great outcome, but it's gonna give them tons of options of things that they can do. And, you know, they'll get to make every single decision they make, whether it's going to new product or whatever, position of strength. And not a lot of companies do that. >> So Splunk started in 2004. Guess how much total the company raised before it went public? >> How much? >> Forty million. Guess how much it spent up to the time it went public? >> John: How much? >> John: Twenty five. >> So it went public... >> So very capital efficient? >> John: Think about that. >> Yes, and it's worth 9 billion now. So you had several hundred millionaires created out of Splunk, and I would submit to you if Splunk was started today, the investor community would have killed it. >> John: Why? >> Because 18 Brinks trucks would have backed up and dumped a billion dollars on top of it, and buried it in too much money without allowing the company to get the time to become a fully viable system. >> Sunil: Yeah. >> So the too much cash can create toxicity for the startup? >> Money rarely makes the company. Money rarely makes the company. >> Lew Cirne was on earlier, founder of New Relic. Another capital efficient company. >> Great company. >> Went public all time high. Love that guy. He's such a strong, he wrote some code last week. He said, if you can help your partners be successful, in referring to Amazon. >> Man: Amazon. >> Then you can be a great ecosystem partner. So the question now is that's not a bad deal for a company to jump into the Cloud game and be a really good partner and build a kick-ass product. >> Yes. >> And look like a feature maybe on paper, and then sequence to an opportunity. Thoughts on that? It's certainly lucrative if you can get the flywheel going. Right? >> So you don't want to build a company whose basic thesis is helping Amazon or Azure or Google. That is a dead company. If, however, you pull revenue for one of those three in a way that's interesting to them, they will support you all day long. We have two companies in particular, Icertis and KenSci that are pulling a lot of revenue for Azure right now. And Microsoft gives them extraordinary support. >> That's the nuance right there. That's the nuance. Pulling revenue, value, creation. >> Yes. >> Well, they've created Amazon and Microsoft and Google, to a degree, as they get going. They've created a really interesting model, which is unlike your traditional ecosystem, hub-and-spoke model, where someone's gonna capture (mumbles) control of the sale, etc., etc. The smart thing that Amazon's done is they say, you use whatever you want, we're gonna bill you for the primitives until the cows come home, and as long as you're not standing in between Amazon and their primitives revenue, you're gonna do great. >> All right, final question for you guys. First of all, great conversation on the capital markets, certainly it's crazy. We always try to cover it, but here's a thought exercise. Last night we were at the analyst summit. We were talking to some analysts, and the question was, the airplane's going down, and you're in a board meeting, I gotta pick a parachute. There are only three parachutes, Amazon, Microsoft, and Google, which one do you grab? You got 10 seconds. >> To sell to or? >> No, just grab a parachute, and you hope that it opens and you live. Pick a parachute. >> Amazon, >> I'm going with Amazon. This one isn't hard. >> Microsoft and Google. The only person who's gonna grab the Microsoft parachute is the guy who's been with Microsoft for 30 years and knows they're not gonna let him down. If you're a forward-facing company you're going with Amazon, and if you're nuts, you're gonna grab Google right now. No offense to my friends at Google. >> So we're sitting here at Reinvent, so I feel like that's a trick question. (laughing) >> Well, that's good. If you're in the Microsoft ecosystem, they do take care of their own. >> They do. >> Their DNA is tuned to ISVs, they're very good at it. >> and that's their track record. Well, the one guys says, well it depends. By the time you argue with the parachute the planes (mumbles). But it does depend on your business. >> Sunil: Yes. >> Nick: Yes. >> But it is hard not to look at this show and say this is what electricity was in 1920. >> Final question, obviously Amazon is looking at all steam ahead, business models are changing, you're starting to see the top of the stack develop nicely, moving up the stacks seems to be the trend. You got this decentralized market up there. Bitcoin hit 10,000. A lot of smart alpha geeks, including some of the guys here at theCUBE team, is looking at ways to kind of leverage this decentralization trend in a way that's productive. Yet there's a lot of scams out there with these ICOs. Decentralization good or just another infrastructure dynamic? Thoughts on this whole decentralized token economics wave? Also the FCC has regulations now in it. Is it disrupting VC? Your thoughts, Nick. >> Do remember what H.L. Mencken said? "A fool and his money are soon parted." so I think anyone who sits there and says I understand completely what an ICO is and what I'm buying and doesn't view it as something that'll be a tax deduction for next year, I think is gonna be in for a bumpy ride. >> Get out your Gartner Hype Cycle. And if you don't know what it is, go look it up, and there's a spot right now of where we are in the hype cycle, and I think the movement my finger tells you where we are, but this is coming, but this comes afterwards. >> I heard this argument, the web is just for kids. No one will ever use the web. Browsers is a toy. >> A K memory is all you'll ever need. >> Yeah, but guess what, guess what, 2001 happened before we got to 2017, so let's never forget where we are at that kind of hype. >> ICOs are like subprime mortgages, and I speak Spanish and I can't even read the thing. That is what an ICO is. >> So certainly hyped up. Winter's coming, we'll see. All right, we got the VCs here, Nick and Sunil. We got Amplify and Ignition Partners here in theCUBE. More live coverage day one after this short break.