>>Welcome back everyone. This is our final wrap-up of the Amazon web services. Reinvent conferences is SiliconANGLE and Wiki bonds. The cube is our flagship program. We go out to the events, extract the signal from the noise. I'm John furry or the founders to look an angle. And of course I'm joining my cohost partner in crime. Dave Volante, co-founder with you bond.org. Um, really exciting event, Dave, I got to say, this is our wrap up. Let's put a bow on this show. Let's put the bumper sticker on the car and let's see what, uh, what was this document? What happened day one enterprise day to infrastructure day three ties it all together with Kinesis. Amazon is doing two things. That's very, very rare in tech history, and that is a disrupting and innovating at the same time. The magic it's the magic formula. And to me, it's really two tactical executions, one ball moving the ball yard by yard first and 10, do it again to use the football analogy, moving the chains, moving the ball down the field, kind of a running game, ground game, whatever a call it. >>And then the big yardage passing play with Kinesis, I think really brings their success of an integrated stack. And I believe they're going to be the iPhone like model for the cloud they're they're light years ahead of everybody else on public cloud. Uh, they're winning the developers. And again, we just heard from Dr. Matt would kind of reiterating what we were saying in our previous segment about the diversity of the successes. It's not a one trick pony. They got diversity from startups to large enterprises to NASA. So Dave, I mean, I mean, who is going to take on Amazon, who is going to challenge Amazon? That's the question that we want to know right now. It's not looking good right now. They're got a commanding lead in the cloud space and it'd be really interesting to watch how the Kinesis, the enterprise movement, uh, with VDI announcement and workspaces and all the enhancements in the, in the performance is going to shift the sand in the industry. And you're already seeing Cisco down 12% VMware stocks down. I mean, game-changing, the sands are shifting. What's your >>Well, I think we're seeing history in the making here, John. I mean, I think last year at reinvent com leading up to we reinvent, we realized that this event was going to be big and not just the event. The event is a metaphor for the shift that's occurring in the industry. We're talking about a trillion plus dollar marketplace that Amazon is disrupting and believe it or not, they're tiny, even though there are three or 4 billion, they're tiny, it's a trillion dollar Tam that is absolutely getting flipped on its head. And what do we mean by that? Every premise about the it business is changing. We talk about a lot. Amazon has ch has turned the data center into an API. It's a very powerful concept. I think you're right on. It's the, it's the iPhone of the enterprise. Yes. That's. They're not like hall monitors checking about every application in the app store. >>That's not the point. The point is it's a consistent environment that is controlled by Amazon, very tightly controlled and it works. You know what you're getting, and it's innovating at a, at a breakneck speed. It's antithetical to everything we know about it. So, you know, you've been asking people all week what the bumper sticker is on the show. I can't wait to go back and see some of those, but I mean, this is the trend and the trend is your friend, or it might be your enemy. So when you say who's going to be able to compete with Amazon, I think Martin of eucalyptus set a set of best historically in economics. There's always people that will rent and there's always people that will buy. And the, the old guard is Amazon calls them is not going to take this lying down, but the old guard has to replicate an Amazon's model. How does it do that? It's got to create an open entry into its system. That's equivalent in terms of simplicity and power to the Amazon API. Number one, number two is it's got to be able to demonstrate to the developer community that you can inter-operate across those platforms in a way that you can get critical mass, the same way that you can with Amazon. And that's going to be the, the massive battle that's going to take place in the cloud Wars. >>I mean, I think one of the things that's interesting is that the word lock-in was something that we were talking on day one, especially in the enterprise, that's a word that gets kicked around. And you know, my feeling has always been lock-in is not necessarily a bad thing if it's, if you can, if you can have switching costs that aren't super high locking means, switching costs are so high that you can switch. I can switch from my iPhone to Android anytime I want. But the problem is that iPhone is a better product. It's integrated with the apps and I can buy all the same apps. So that's a very key thing. And I think the switching costs here are a lot higher and I, there are Amazon >>On the record. Amazon is the mother of all lock-ins. I mean, this is a beautiful business model and here's, what's so great about it is the customers. You heard them this week say if you took AWS away from me, I would burst out into tears. So Amazon's, I think brilliant challenge here is to how do they keep innovating? They're doing that, but how do they keep lowering prices? So people don't want to leave. So that that's, that's what I see as the disruptive piece. It, >>Well, being in this business all these years were, you know, a little bit older than some of the young guns were on the cube to me lock-in is moving right? You see, um, in the old days, huge capital outlays for, uh, for equipment, you had maintenance, all this stuff was locking. Now the lock-in shifting to OPEX and agility. So what's happening is Amazon is basically commoditizing the old way of how people would spend and shifting the lock-in to the op X side of the equation. I call it the heroin addiction where, Hey, it's so low cost and the agility is the lock-in. So the functionality of agility guarantees the lock. And I think that's what Amazon's betting the ranch on is that when can go to time to market, to value quicker, that is inherently a lock-in, that's a quote, user experience to use my iPhone example. >>If I'm going to have a good experience making money as an enterprise, that's good. That's good. Lock-in right. So it's all a relative term in that the lock-in has been around. I mean, they call it differentiation, but at the end of the day, I think Amazon's got a good, good play there. But like I said, I don't think Amazon has cracked the it nut yet. I think they're going to have some it penetration. And this is top of the first ending, as we were saying, the enterprise, it nut enterprise, it is not, has not. The nut has not been cracked. What >>Do you need to see to be convinced? Well, >>I just think the stack is going to be the, the same paradigm of having an integrated staff. I just want to see different levels of services because the table stakes for the enterprise are different. There's certain compliance issues and you know, they're checking the boxes right now. This is the ground game I was referring to earlier. Amazon is going to start checking the boxes. Oh, VDI, we got workspaces, I got this. I'm going to check the boxes. Ultimately the list is just too long to win everyone. Right? So I think, you know, so it's going to be an opportunity. I think OpenStack has a great hope. I think VMware and IBM and HP are big players. And I think OpenStack needs to step up its game and have a big player, pop down a billion dollars with like IBM David Linux and saying, look at OpenStack, we're behind it. And rally the troops. And that's all >>Sorry, go back to the lock-in comments because this is critical because to me, the definition of lock-in is it's, it's, it's less economically attractive to leave than it is to stay. And that's what Amazon is doing. They're making it, making it more economically attractive to stay than they are to leave. Here's why that's so important. The more people that they pull, and this is why Carlisle and back said, you know, we can't lose to the bookseller. And you said that because they know the old guard knows that if people go to Amazon, they're not going to leave. Cause it's going to be less attractive for them to leave than it is to stay. So there's a huge battle over that trillion dollar Tam. So the key is John that OpenStack and IBM and VMware and Oracle and all the others have to make it economically attractive to not go into Amazon. And that is the battle. >>One of the things that's very clear, Dave, that's coming out of the show for me. My bumper sticker is dev ops wins. And I think what that mean by that is, is that, and we refer to the cloud being in the top of the first inning, meaning really everything else was spring training. He used the baseball metaphor in the sense that this is all that this is all activation of a paradigm shift. That is so game-changing the dev ops concept of software developers. Writing code that trickles into a fully integrated stack is really amazing, right? This really replaces the pain of provisioning hardware cost of it, cost of the infrastructure. That stuff is that that is the real value of the crowd. So if you take the dev ops concepts, which to me is already a winner and put that into the enterprise market, that's going to be cloud ops. >>So to me, I think the opportunity right now for anyone who wants to with Amazon in my opinion, is to go out there and say, look it, you got to win the software developers, look at what a Mongo DB has done. We had Elliot the co-founder on, they made it good goodness for the developer. Whoever can do that for the enterprise will win. And I don't think that there's a direct one-to-one mapping of what dev ops is. It is in the Amazon world. And what dev ops is in the enterprise. I think that's more cloud ops because the guys that are provisioning EMC drives dealing with IBM and red hat a little bit slower, I would say in terms of deployment, they used to the big slow cycles. Dev ops guys are pushing code a little bit more, you know, nimble startup, clean sheet of paper, you know, Uber, Airbnb, those younger generations, but this is a generational shift and it's happening and it's all on the software. So to me, I think dev ops speaks to, >>I wanna, I wanna, uh, keep this thread going. So, so what's the playbook to, for the old guard to compete, you're saying you gotta, uh, attract developers, but that's not enough. You need a cloud platform, right? So take, for example, VMware, VMware announces, you know, hybrid cloud infrastructure as a service it's early days, they need a cloud platform. So what else do you need to compete? You need developers. You need, >>You gotta have, you gotta have trust and security, right? So here's the thing. Developers care about success of creativity for the solutions. And what Amazon's demonstrate is the time to value is the key thing. You hear people, whether they're startups or big company get to some value, double down on success, figure out how to be agile succeed. Fast, move on with the problem right now is that developers are like deer in the headlights. They go where the action is, right? And it's always been that way. I think OpenStack to me is an opportunity or whatever platform that is. Someone's got to get a big anchor tenant in that platform needs to step up and be the galvanizing force and create some solidarity around that approach for it. That is an opportunity for VMware. I think Pat Gelsinger is probably best positioned to do that. Pivotal is a, is a genius, but I think ultimately they might be biting off more than they can chew. So I worry about, you know, their car not being fast enough right now in, in the game. So, you know, worry about pivotal there. But I think VMware probably is a better position there. So they need, they need, they need infrastructure. They need this middleware, which is database queuing notifications. A lot of that, a lot of the stuff you see Amazon doing at the top of the stack managed services. So that's streaming data and all the goodness on them, >>Developers, you got to have a cloud platform at scale, you gotta have trust and security. I would add to that. You got to do things that Amazon's not going to do. So for instance, we heard all week, Amazon doesn't want to do one-offs. They don't like to do customization, whatever they do. They want everybody to benefit from that enterprise enterprises want customization. We've talked about this, John. That's why, for instance, you, you find that some of the customers won't go into Amazon, not because the security is bad, it's just different. And Amazon's not going to change the security profile. They're not going to change the policy. So enterprise, uh, players, the old guard, so to speak must continue to do custom stuff. One-off that Amazon won't do, but here's the bet that Amazon's making Amazon's that its ecosystem will over time be able to do those one-offs for the customer and put a buffer in between the Amazon platform and the customer. So that's, that's really interesting. >>Yeah. I would also add to that, that the main differentiation where Amazon and other potential people to compete with Amazon is scale, scale matters. Scale gives leverage. Amazon has proven that, and they're trying to use that leverage now to catapult into other markets for market expansion. So that's one thing. So, so, so the, so for the enterprise in particular, one area we watch heavily, I see two major trends. I see a cloud service that's similar to Amazon. It smells like an integrated stack, but it just has different feature sets tailored for the enterprise. That's more of that's the hybrid cloud clearly hybrid cloud is a winner. Amazon is not using that term hybrid cloud. And he's a hybrid ID, which is basically a head fake. It really means hybrid cloud. So that's hybrid cloud. The second thing is I think you're going to see data centers be Amazon in a box. >>So that's why I like io.com because io.com has essentially built pods and containers and essentially is cloud in a box. And I think shipping data centers is the future. And I think what I like about IO and here's why I'm interested in double clicking on that company is that they're basically shipping data centers. You've got Goldman Sachs, big companies. So IO IO has got, got that going on. And then you've got hybrid cloud. And then the third thing that's really relevant is that you started to see the vertical integration Dave of, of services. Look at CSC, CSC bought service mesh. We had, uh, this guy Jeff on earlier with, uh, that company is doing all the user experience they're offering full end-to-end full-stack developers for essentially web apps. Okay. That is a shift to what I call the dev ops world. Those two things. You're going to see these industries where it's ISV and integrators are kind of vertically integrated. They're going to actually build their own stuff. And that's going to be the, I think the innovation on the channel side. So the channel is up for grabs. Everything's being disrupted >>Battlefield. We've got developers, we've got cloud scale, we've got trust and security. We've got customization. And I'm going to add another one, which is the ecosystem, which is essentially your, you know, in part in your channel, but got to have a strong ecosystem, want to pick up this discussion with you and getting the hook. >>So the Dave wants to of what's the bumper sticker for the show. Give me the Dave Volante bumper sticker. You. We heard everyone said a story here. Um, >>What AWS, the, the trend is your friend, >>My bumper sticker. I'm going to throw a hashtag in there. The hashtag next generation computer revolution to me, this is the next generation computer revolution, total transformative hashtag next generation computer revolution. I think Amazon's leading the charge and I think they're going to shift the sands and everyone else is going to have to adjust. And that's good for everyone, Dave and the market wins a ruin murky on Hortonworks tweeted. Hey, we'd love it. Market expansion, rising tide floats all boats. And I think that's all >>Ultimately ultimately billion dollar Tam Gianna. I'm thrilled to a >>Part of covering that with the cube. I want to thank everyone for watching. Thanks. This is the day three wrap up this acute exclusive coverage from Amazon web services. Want to thank the crew here? All the guys back at the ranch. Kristen, Nicole art Lindsay, Mark Hopkins. Andrew, we got mic. We got Alex. Good job, Jeff Fricks do, uh, everyone. Jeff Kelly. We have the analysts. Come on. We've got this show covered, Dave. I think we fished this pond out. So look for us next to HP. Discover will be there. And, uh, December the week of the 10th or 11th and 12th, we'll be doing the OpenStack summit as well. Look for that. When that gets announced, um, my maybe doing the node node summit in December, we got also the spark summit and MIT event in January. The security event would be at Berkeley. We're going to all these great events tubes out of control. We've got storage, big data now cloud, we look for a lot of research. You can see a lot of cloud coverage coming out on the research. So I looked for that over the next few months, I will get bon.org. Thank you for watching. Well, that's a wrap day three exclusive coverage. This is the cube. I'm John fryer with Dave Volante here in Las Vegas until next time take care.