>> Live from San Francisco, its the CUBE. Covering Google Cloud Next 2018. Brought to you by Google Cloud and its ecosystem partners. >> Welcome back everyone this is the CUBE's live coverage in San Francisco Google Cloud's big conference, Google Next 2018, #googlenext18, I'm John Furrier with Jeff Frick bringing you live coverage. Melody Meckfessel, Vice President of cloud engineering at Google is here in the CUBE. She leads a lot of the managing 40,000 plus engineers making them happy and creating great code, friendly environment, doing great work. Just featured her in a story we did about the power of women in Google Cloud. Melody great to see you, thanks for coming on. >> Thank you so much for having me, it's great to be here. >> Today is a lot of developer announcements, we saw a lot of community discussions, new code. You guys talked cloud build. What is some of the news, let's get that out of the way, what's going on here at Google Cloud Next? >> Great. Very excited to announce and demo today, and it was a live demo, I don't know if you saw that, so we had some dramatic excitement waiting for the actual build. Yeah we're very excited to announce Cloud Build, which is a fully managed continuous integration and delivery platform. It lets developers build and test their applications in the cloud at any scale, and it's based on a lot of the lessons learned that we had within Google, iterating over the last two decades with developer and operator tools. Google does some crazy scale internally, and we're really excited to bring that automation and scale out to our customers. >> We had the chance to meet a couple weeks ago, we went deep dive on developers. You have a job focus that's really to kind of keep the developers productive, happy, there's a lot of them at Google and they are tough customers, they want to be coding. They don't want any distractions. They don't want any toil, a word we've been using a lot and hearing a lot here. And so there's techniques that you guys have done within Google, this seems to be the theme of Google Next, taking the best of Google and trying to make it consumable for customers. In this case developers. What is the state of the art to keeping developers happy, making them productive, more cohesive in their work, what are some of the things that you guys are doing, I know there's a lot going on, Google Cloud Build is one. What are some of the things you guys do to keep developers productive and happy? >> Yeah, that's a really good question. What we've found is that there's a tremendous amount of value of automating away, you said toil, the things that developers want to do. So some of the research, industry research that we've done, developers want to write code, they want to do design, they want to work on requirements. They don't want to take care of the plumbing and the pipeline of how their build test and release happens. So we showed some pretty amazing features today around automated canary analysis. So it's almost in a way, we want these tools and the automation to have the developer and the operator's backs. Because we know, we've learned at Google, that when we do that, they take more risks. They move quickly. Because they know that the DevOps tools are going to catch the breakages for them, and we showed a couple of things today around running tasks, identify if they're vulnerability scans, trying to find vulnerability scans before they get pushed out to production. We're trying to move as much as we can into the front part of the pipeline. So what makes developers happy? Well one thing is, give them automation so that they can focus on code. The second thing is, the culture to support and empower them. We've found that 65% of developers believe that they have the ability to choose their own tools. So at GC we want to make that easier for them. >> Wow you mentioned something earlier I want to get into. What's a canary? Explain what that is. Because a lot people, they know what it is, but some people might not know this canary concept. >> So essentially what you're trying to do is take the release that you build and test, make sure it's secure, now you want to start routing traffic to it. So you take that you release it to a small set of production instances, you start routing traffic to it, you look at air rates, you look at traces you sort of see what's going on, if it's good, then you slowly deploy it out to all your production instances. So it's a really safe way, it reduces your risk. Right, you want to catch the errors before they get out. >> Canary in a coal mine. >> Yeah, there you go. >> So it's a great agile way to push code and test it. Well not push code, push users to code. >> That's right. >> And get a feel for does it break. >> Yes. >> And if it breaks you pull back. >> Yes, and we want to find things ahead of time. I know you're talking to Dave Resin, you know the alignment of having shared goals between developers and operators is really important culturally because when you're incented towards minimizing, we call it the MTTR right, the minimum time to respond. So when you do things like canary analysis, you're finding the issues before they roll out and impact your user community. >> It's super valuable. But it sounds so easy. Why don't we just roll it out to like, our top users or the ones who won't leave the platform, and then pull it back? And this is a DevOps principle. If done right, works great. But it's hard to do. How hard is it to do it if you didn't have all these tools? I mean think about, you got to push code, pull the servers back, re push the new code. >> Yeah, you don't want to do that, right? Human error. >> Without automation, without all these tools, how hard is it? >> It's very difficult and time consuming. And we know, as humans, we're prone to error. Right? So it was really fun to show a live demo today of a spinnaker pipeline, showing the canary, pushing it out to production, and then going back to the website and seeing the impact of the code fixes that we put in place. >> Right, so just on the culture side, you've been at Google for a while. And you know we still think of Google, I still think of it as a supersized startup. But you guys have been at it for a while. You've been there for 13 years on LinkedIn, they company's 20 years old. How do you maintain kind of that cool, the colored bikes, the great food, you know go play volleyball outside in the middle of the day, kind of culture as the company just grows and you have so many new people. How do you maintain that baseline culture that's been there and made Google what it is today? >> You know we have a very strong culture within Google. A very strong engineering community. And that engineering community really comes from, and I think this has been consistent for the almost 14 years I've been there, using data to guide our decisions. Right? We've also put things in place to help enable the trust between the humans, which when I talk to customers, this is a challenge. Throw it over the wall to the operators, you know they don't trust each other. We've had blameless post-mortems within the engineering culture for decades. We've abstracted away, it's about learning. It's about continuous improvement. We're a software a company, and everyone's a software company now. How do you accept and learn from failure? But when you create this shared goals, use the data not someone's opinion or someone's title, and then ground. And we're learning, we're always learning. We're always making it better. That inspires people, right? To have that impact together. Now, the culture, the benefits, you know I'm working on writing code, products, I don't know the last time I played volleyball. >> Beautiful court, though. >> It looks great when you come in the building. >> You're the second, Dave also mentioned this blameless post-morten, I'd love to dig a little bit more in, because obviously that must be an institutionalized thing that you guys do. How do you do it without hurting feelings? Because it's still people, and even when it's data-based, you still kind of risk hurting people. So how do you institutionalize it's the data, it's not you, and we're actually trying to use this to learn and grow, not necessarily get on that particular person or that team for something that didn't work. >> Well you know I love this quote, it comes from SRE, if your SLO target is perfection, it's the wrong target. So we know, in software development and systems, that things break. And as humans, we're writing the code. We are writing the services. So we're going to make mistakes. And I think that tolerance and that understanding, we have some structure, right, we track to-dos that came out of the outage, we make sure that they get closed so we don't have the outage again, but when you obstruct that away, and know that maybe I made the mistake this week and maybe someone else on my team's going to make the mistake the next week. But how we learn from it and how we come together as a team is what's important. >> Blameless post-mortem is a great concept. Most people think post-mortem, something bad happened. Someone needs to be charged with a crime. Oh my god, bad things. You're learning, blameless post-mortem is an iteration of learning. >> Mm hmm, continuous improvement. >> So this is a culture, now let's take that to open source, because one of the things that's happening here that's front and center, I mean it's just natural for you guys, the importance of open source. Software development is getting more power. And you mentioned the stats and some of the cycle graphics. They can choose any tool that they want. That's a challenge for companies. Retaining them, keeping them employed, because they can get a job anywhere, they get more power, open source seems to be this balance in the force if you will. It's kind of like open source is now operationalized for that's where recruiting happens, that's where social activity happens, conferences. How important is open source, and how are you guys organizing around it as you build the cloud out, what's the vision? >> I have been so inspired by Google's increased contributions and collaborations to open source. I think we had over, I hope I get these stats right, we were contributing over 30,000 repos last year, 1% of the total contributions in 2017 on GitHub came from Googlers. We're committed to it. And we really believe that Google Cloud platform is living the open cloud. And we do that through open APIs, we do that through collaboration around open source tooling, and by creating this abundance and community ecosystem around it. And if you think about, I'll throw out another stat, 70% of developers feel a connection with each other. That's how they get inspired, that's how they learn. Think about Stack Overflow, you think about GitHub. You think about contributing to a product that you're going to make better, it's incredibly inspiring. >> Co-creation creates a bond. >> Yeah it does, it's connection. So if you look in the DevOps base, we've made some commitments with Bazil, which is we've open-sourced our build system, if you look at the contributions in the Go community in terms of Go working really well on Cloud. And then I showed Spinnaker which is actually a project that Netflix started, with their workloads, and we stocked up an engineering team to contribute to that to make it work for multi-cloud. Right, it's the right thing to do for developers, to have these tools that they can use in different, irrespective of where they're deploying. Now Google Cloud platform is the best platform to deploy to, but choice is really important. >> But it's another piece to the puzzle that you contribute to keeping them happy, right? Their participation in open source is why they still have their day job, and the accolades and kind of the peer feedback that comes from that is an important piece. So to be able to do that while still having the day job has got to be a big piece of what keeps them at Google, keeps them happy. >> It is, and you look at the community aspect around Kubernetes and TensorFlow, and the ecosystem is having such a huge effect on the innovation that's happening. And we all get to be a part of that, that's what's inspiring around Cloud. >> Opens the new competitive advantage, certainly from a retention standpoint, recruiting, and productivity. >> Yeah and productivity, absolutely. >> We believe in open, we're open conduct, we're co-creating content here at Google Next with the best minds at Google. Melody thanks for coming on, we really appreciate your time. >> Thank you so much, great to see you again. >> It's the CUBE out in the open here on the floor at Google Next, we're got more coverage. Stay with us after this short break.

(upbeat music) >> Hey, welcome back everyone to theCube's live coverage of the Monaco Crypto Summit here in Monaco. I'm John Furrier, host of theCube, and Lauren Bissell here, founder and CEO of Immutable Industries, focused on the advancement of technologies in art, entertainment, blockchain across multiple sectors. Great background in entertainment music, complying that into the convergence and to crypto. Welcome to theCube. I appreciate it. >> Thank you so much. Thank you guys for having me. It's been an incredible day so far. >> So we were just talking before we came on camera, your background and just the people you've worked with in the music industry. You've been there for a very long part of your career, from the beginning. Now you're on the wave of Web3, crypto, DeFi. There's a confluence of refactoring businesses. We're seeing that impact. And I think a lot of people, finance and entrepreneurial, the best brains are coming into the sector because it's an opportunity, clearly, to reset and refactor old antiquated business models and practices, in a new way to achieve the same things. Better, faster, cheaper >> Exactly. Better, faster, cheaper, is good sometimes, other times that's... We will see. But I think for me, coming in from the music industry was something that, I honestly never expected to be involved in blockchain and futuristic tech. It's always something that I admired, but I didn't really see, "Okay. Here's how I can be involved in that." I was obsessed with it. But as I was sort of progressing my career as a music producer, I saw so many issues with the industry. The way capital came in, the way that it was distributed. I mean, these things are still happening today. But I was just constantly looking around for better solutions and how to make this work in a better way. In 2017, when I started really diving into crypto, that was something where I saw a huge opportunity for the entire industry. The music industry is notorious for just sort of being behind the curve when it comes to new tech. And it's a shame. When you're in an industry that's full of art and innovation, you would think that it's something... It's an industry that would embrace this position. Maybe some people do this, and I applaud those people very much. But in general, the music industry is kind of behind. We live a little bit in the Wild West. Not in the futures way, but kind of in the old way. I'm just really excited to be able to bring these things into the industry. >> It's interesting. I'm not in the industry, in the music side, but I've been on the software industry, where you had the proprietary software, the rights, and people used to build software. And then when the company went under, the software was gone, lost forever. And in around the late eighties, nineties, open source movement happened, and it just changed everything. And I think, to me, I feel like this is a similar structural inflection point in change, where rights are changing. People are still holding onto like, "He can't use the copyright." And I even saw a stat that said, with AI now, you can actually copyright every single melody, every single note in music. So that means like, "Who the hell's going to develop anything?" So are even rights even matter? So rights, ownership, art, mixing. Funny story of my son, a year and a half ago, mixed an old song from a band that wasn't around, and it became a TikTok sensation. Hundreds of millions of listens, and then the Spotify and Apple account was making like 20,000 a week, and DistroKid cut him off. Because someone went back and claimed the copyrights. But it was a mix of a couple of different pieces of the song for a new melody. But because that wasn't his work, the middle man killed the account. >> Right. But if there had been maybe an easier solution for him to go get those rights. So I actually used to be a rights and royalties negotiation specialist. I was on the phone with labels, every second of every day. From a producer standpoint, you're trying to find something that works for the artist, something that works for the label, something that you can arrange in perpetuity, if possible. But it's just... Again, there's so many people that have to just get on the phone- >> Like a busy gen system of like- >> Yeah. >> Weirdness >> Right. >> What's the solution? >> I mean, right now one of the favorite... It's super simple. Smart contracts related to publishing and royalties. Now you still need, probably in the interim, someone to go out and... The old school job for someone in rights and royalties is sitting in a restaurant and listening to see if the music is being played, and then you write it all down on a piece of paper. I mean, that's quite old school, but that still happens in a lot of places. So we can kind of move into smart contracts for the payment systems, and eventually we can move into AI, to actually detect what music is being played where. Just to go, not really on a tangent, but it's like, "Okay. Well, are we taking a job away from someone who's supposed to sit in a restaurant and listen to the music?" Well, I think we're developing a lot of new jobs by needing to generate this software. This is more- >> I've heard that. We've heard that argument before, "Oh! Bank tellers are going to be put out of business by the ATM machine." Turns out there's more branches now. >> Right. >> Okay. There's a total waste there. I mean, people say that are like... I mean, but it does bring up the next gen, the creator, the young artist, the ability to collaborate with smart contracts, the removal of the middle person in all this, the intermediaries. That's really the key, right? >> I think it is the key. And like I said, before removal of the middle person, some people would look down on that. I think it's more efficient systems. When you have more efficient systems, you have more efficient societies, you can create bigger and better things. So is there a change process that has to happen there? Yeah, of course. But this is humanity, this is history, this is what happens. >> Okay. So you're a pro, you've been through- >> I just embrace that. >> You've been through the business, you got the scar tissue, you got the experience, you got the brains. Now you're here in the front of a new generation, a lot of pioneering going on, a lot of chaos, a lot of confusion. Some people... Blood's spilling on the ground. There's a lot of stuff going on, that is opportunity. What are you up to? How are you attacking this market, how do you look at it, what's on your mind? >> Yeah. I mean, so what's funny, I've actually been spending the last few years, sort of directly advising individuals and companies in the music industry. So everyone from artists to label executives, content distribution executives, licensing teams and publishers, and sort of explaining, "Here's how things work. Here's how we think they're going to go. And here's how, instead of running away from that and trying to block your artists from using that system, we can actually use this to enhance the financial pie of the music industry, instead of just trying to steal a piece of everyone else's pie." That's what I really want to do, is, the industry pie can get bigger. We don't need to steal your blueberries. It's just- >> They're picking up crumbs and fighting over crumbs >> Exactly. The industry changed, and I understand why it's scary. I really, really do. I've lived through this. But it's going to be- >> What do they say? What's your advice to them, and what's their reaction? Is it like, "Yeah, you said that you'd get lip service." Or like, "Yeah, we're trying my best. I'll stop drinking, I promise." I mean, I've heard... I tried last week. I mean, are they actually getting it done, or they don't know what to do? >> Yeah. Well, I think it starts with individuals. I actually spent a lot of time working with individuals on education and how they can take that information to their companies or implement that in their companies. It's on sort of a corporate level. It is slower. That's okay. That's expected. But educating sort of individuals, like I said, that's what I've been doing for the past few years, is what's really been helpful. Because if you just kind of do this overnight, I understand it's not going to happen overnight. But being able, like I said, to figure out, "Okay. We grow the financial pie for the whole industry." This accumulates, this helps the health of the industry. Like I said, I grew up in the industry. I care a lot about the industry. I actually want to see good things happen- >> Positive change. >> It's in my heart, in my soul, to make the music industry- >> So Lauren, I got to ask you. So as you see the industry changing, and it's going to be hard to get people to go through transformation. >> Yeah. >> They have to get there. Otherwise, they'll be extinct. And we kind of see that. Is there new brands emerging that have a clean sheet of paper? Because I'm a far young artist, I'm saying to myself, "Okay. If I can write my own ticket..." And by the way, brands become platforms is a big trend you're seeing with NFTs and- >> Yeah. >> And these great Web3 platforms. So I got more social power, I got collective intelligence, I got network effect, I got fans. All that's tappable now from a monetization standpoint. >> Yeah. >> Are there new agencies, new brands, emerging that's artists friendly like this? >> I mean, that's one of the reasons we're here, to begin with. I'm obviously just going to mention Digital Bits, because they're literally creating NFTs for brands. I'm here because I believe in what they're building. Their model is applicable to brands, it's applicable to artists and athletes. I actually truly believe in what they're building and how they're doing it. NFTs is a faster way to achieve what we thought we were going to achieve with sort of the tokenization of a person or an individual brand. NFTs, I think, is a better way to do that. Obviously NFTs are tokens as well, but it's a different type of thing than an ICO. >> It has more versatility and it's got the same kind of characteristics- >> Yeah. I think you can build more community with it, you can maintain the value of the token itself, the non-punchable token itself, a little bit better, and you can build community around it. >> What are some of the companies you're advising and people you're advising? Are they record labels, are they executive, like an executive coach on one end, business consultant on the other? >> Yeah. >> What's some of the range of... >> So I actually advise a couple of brands, I can't completely speak about in the music industry, but from the executive position, I do advise individual executives from the label and the content distribution side, on sort of how to implement futurist tech into their company a little bit better, and sort of what the real things that are going on, the new things that are going on. I actually just took on a role for a company called Cyber Yachts, which I'm really excited about. This one's just going to be fun. International music, entertainment, fun. >> Do you need some media up there? We'll have to do interviews on both- >> Yeah. You can come on the metaverse yacht and the physical yacht, if you want to. But- >> Monaco's a great place for that. >> We will be here. >> All right. >> Absolutely. >> So tell me about the future of some of these big agencies you mentioned? Because if you look at the market right now, if you zoom out, content is king, distribution is Kong. That's what they say. There's a lot more distribution now more than, it seems, content. That's maybe on some perspectives. But it seems like there's a lot more outlets looking for better content. >> Always. >> Do you agree that distribution's hungry for the content, or is there more content than distribution? >> I think it just depends on the type of content. If you look at the content that's being distributed over, say social media, for example, there's a plethora of content. >> Yeah. I guess I'm not- >> There's actually, now, this new hierarchy there, where you have to really scrap to get to the top. So in a weird way, you're seeing that sort of mimic. We see how societies work. So now that's become very hierarchical, and that's almost mimicking the way the traditional industry has been developed. So we go through these cycles. >> It must be hard for a record label to try to do the A and R job, when you have more artists emerging from TikTok, Instagram, the social networks, or- >> I would say their job's probably gotten easier. >> Do you think because of the filtering? >> Well, yeah. Now you can view so much talent in a tiny amount of time online. Now, do I know what they are like lives, do I know how they perform? No, I got to go figure that out. But before you had to go to clubs and sit in there, and run around a city. You can only be in so many places at one time. >> You got to chase content down, look it down. >> Yeah. >> All right, so what's the most exciting thing that you think is happening in the whole crypto world, that's people should pay attention to, that's going to impact some of the mainstream? What's the most important things, do you think? >> Well, something that's actually, somewhat unrelated to music, which is government adoption. Sorry, but hands down, that is the most exciting and important thing that's going on right now. >> Adopting it and embracing it is important. >> Adopting it, embracing it, new regulations coming out. >> Are you happy with the progress? >> Yeah. I mean, it takes time. But right now we're the biggest sort of country that sun is, El Salvador. >> And now Monaco's leaning in. >> Now Monaco is obviously leaning in, that's... It's exciting. It's really exciting. >> Well, to me, I think Digital Bits, so when you climbed in earlier, is that, there's a legitimate crossover between the physical asset, digital asset world, and now the kind of the tough parts, the in between the details and the gaps, the contracts, the royalties. >> Yeah. >> Compliance. What does that even mean? >> Right. >> How is that going to get sorted out? Do you think this is going to settle itself out on its own or self govern, a little bit of a iron hand in there, or... >> It'll be a mix. I mean, there's a lot of trial and error going on right now, as far as governments. Like I said, there's really only a few places in the world that are doing it. I applaud these places for their bravery because... Don't get me wrong. It's going to be a struggle. There's going to be failures and successes, and being willing to be one of the countries that does that, that shows some grit. I really respect it. >> And the upside is if they get it right, it's huge. Lauren, final question. What are you up to next, what's on your mind? What are you working on beyond this consultancy? What's around the corner for you? Where do you see the self dots connecting in the future? >> Well, I'm really... Right now I travel quite a bit. I spend a lot of different... A lot of time at different conferences. I spoke earlier a little bit about an education program that I'm developing with an alliance with Draper University in El Salvador. So I want to finish the programming for that. We're going to scale that out across multiple countries. And that's everything from education for governments and education for people that, maybe just recently heard of Bitcoin and they don't even know how to go about seeing what it is. >> 5G in emerging countries is pretty potential there. >> It is. Absolutely. >> Great stuff. Lauren, thanks for coming on theCube sharing. >> Thank you so much. >> I appreciate it. Lauren Bissell here on theCube, I'm John Furrier, live in Monaco, for the Monaco Crypto Summit, Digital Bits. We got a big gala event tonight with Prince Albert in attendance. A lot of action, a lot of big news happening here. All the players are gathered for the inaugural Monaco Crypto Summit. I'm John Furrier. We'll have more live coverage after this short break. (upbeat music)

>> live from London, England. It's the queue covering a ws summat. London twenty nineteen Brought to you by Amazon Web services. >> Thiss really is huge, >> isn't it? David >> London is my co star today on the Cube. We're going to be extracting the signal from the noise and there is a lot of noise. Just trying to register. Here was an event in itself, and one guy in the queue with me earlier said, You know, this is like an army of young technologist backing one particular platform, and we've had the main keynote speeches already in the conference hall. There are breakout sessions going on as well as we speak. And in those keynote speeches, it really wants the focus again on Hey I and machine learning and a huge array of services that eight of us now provide. Because, of course, every tech company, every company is a tech company these days. Where do you work in transportation or defense or retail? Let's talk >> about Dave a little bit about a ws and the exponential growth that it's seen over the past two years because it just keeps on getting bigger and you could see testament really out there just so many people here. >> You know, Susannah, when a WS announced its first service in two thousand six, very quietly announced E C, too, which is a computer service. Nobody really paid much attention. But a devious has permanently changed the landscape of the of the technology business. And we're here in London twelve thousand people at a one day summit. I mean, that's his large as many or or larger than most U. S based three day conferences. >> And there are many thousands more watching the life streaming as well, >> right? And when you talk to the people here, they're a division. First of them has builders, and it was interesting to hear some of the key knows this morning talking about some of the innovations that occurred in the UK he obviously UK, very prideful country. The first lights in electric lights work the Savoy Theatre, the Colossus, you know, Code breaker and many, many others. Home computing originated in the UK It so a diverse are connecting that invention and that what they call reinvention. Eight of us talks about his differentiation. The number of regions that it has around the world believe they said twenty one regions, sixty for availability zones, which are little, many regions inside of the regions. In case there's a problem, you can fail over fourteen database services. You know what's happening is all the traditional tea, which is eighty percent of the market place, trying to sort of hang on to their legacy install basis. So they're trying to substantially mimic eight of us. The problem is, eight of us moves faster, has more services, and it's just growing at such a phenomenal rate. >> And it's really kind of bottom up. A CZ. Well, it's so got that head start. So it's learning from its current customers and those it's had in the past, really to find out what new services they want that has his wealth of data ofthe gods to build on it, doesn't it? So every it seems every month it's it's another step ahead. >> Well, the data is critical. Amazon. Is it a dogfight? I always say, for your data with Google and Microsoft and Oracle, they all want your data. Why? Because data is the most valuable resource today, right? People talk about data is the new oil. We think data is more valuable than oil. You could put oil in your car. You can put in your house, but you can't put it in. Both data is reusable in a way that we've never seen a natural resource before. So it's extremely powerful applying machine intelligence to data. So Amazon knows if it can get your data into the cloud and do so cost effectively and deliver services that make you happy and delight you that they have a perpetual business model that's really unbeatable. The company now is at a thirty billion dollars run rate, growing at a constant currency rate of forty two percent per year. No people will say, Well, well, Microsoft is going faster. Microsoft is growing at seventy two percent here, but it's a much, much smaller base we're talking about single digit, a few billion versus thirty billion. So Amazon each year is growing at a nine to ten billion dollars incremental rate. Even more importantly, the operating income is phenomenal. I mean, a WS is only twelve percent of Amazon's revenue, but it accounts for fifty percent of its operating income. Hey, Ws is operating income is is in the high twenties, twenty eight twenty nine percent higher than Cisco, higher than AMC when it when he had seen was a public company. And those air very profitable companies the only companies that are more profitable on a percentage basis that that Amazon a pure place, software companies like an oracle. So Amazon, who's an infrastructure company, is as profitable almost as a software company. It's astounding, >> really interesting to see some of the partners that were invited on. It's about the keynote speeches. For example, Saint spreads so real traditional retailer at a prompter state that they'd be in the business for one hundred fifty years and some would say in many ways a competitive toe. Amazon at marketplace because they sell a vast array of goods and services to the customers. But they talked about how they're using around eighty eight WS services. It's always like a kind of a pic, a mix sweet shop. Or, as you would say, a candy store isn't and I think that's that's some of the benefits that some customers view for A W. S. Some would say, actually, I would prefer all of my product be in one place or the car that access and services in one place. And so is this pick a mix idea that I think really is taking off, isn't it? >> I'm glad you brought up the state's very example because, essentially, in a way, they are in adjacent competitors Teo, eight, of us. And yet they've chosen to put their data. And there's in leverage Amazon services. It's like Netflix. Everybody uses Netflix as the example. I mean, they compete vigorously with with Amazon Prime Video, and yet they choose to run in the age of U. S code. Now this is one of the areas where you heard at the Google Cloud next show a lot of talk about retail companies, you know, considering using Google, because, of course, they're concerned about Amazon eating their lunch. And so it's a hard decision for retail companies to make. Sainsbury obviously has said OK, we can compete. We have a unique advantage with Amazon retail, you know, but it's something worth watching for sure, because, you know, Walmart obviously doesn't wantto run in the eight of us Cloud because it's it's fearful. Ah, at the same time, Amazon would tell you, Auntie Jessie offenses look. There's a brick wall between eight of us and the retail side. We don't share data, so it's just a matter of that. Trade off is the risk of running in a ws er and potentially running at a competitors sight worth the extra value that you get out of the services. And that's what the market has to decide, >> yet certainly does interesting as well. We had the Department of Justice on the UK Department of Justice because they're has beans real concerned about security, about putting all your eggs in one basket effectively put a your data into a club no operated by you. And it does, though seem is, though little by little, some of those security fears are being laid up. Play >> well, there was this. The seminal moment in a WS. His history was in two thousand thirteen, when it won the CIA CIA contract who was more security conscious than the CIA. And they beat Big Blue IBM for that contract way back in two thousand thirteen, and the analysis that came out of that because IBM contested that contract. What came out of that was information that suggested that eight of us said the far superior solution forced IBM to go spend two billion dollars on a company called Software to actually get into the public Cloud does. It couldn't really compete with its own sets of services, and since that, Amazon has only accelerated its lead. IBM, of course, has a public cloud, and it's competitive in its own right. But the point is that the CIA determined that security the cloud was better than it could do on Prem. Now you're seeing the big battle for the Jet I contract Joint Enterprise Defensive Initiative. It's the biggest story in DC Amazon is the front runner. It's down the Amazon and Microsoft. Not surprisingly, Oracle has contested that because the government uses these sources from multiple suppliers and there's contesting it, saying, Hey, that's not fair to use one cloud. When a vendor contests Abid, a lot of information comes out. The General Accountability Office and the D. O. D determined that a single cloud was more secure, more reliable, more cost effective and less complex to run. So this is big debate around multi cloud versus single cloud. And again, Amazon continues to lead in the marketplace and in many many instances, is winning >> on DH. There were a few comments made in certainly one of the key notes today, trying to kind of blow the competition out of the water again knows whether a few specific references, in fact, to Oracle and Microsoft >> were right. And so they called the database freedom they had hashtag database freedom again. As they say, Microsoft, IBM, Oracle, Amazon, they're in a fight for your data. That's why Oracle has launched fourteen database services. Now it's not trivial. So Sainsbury and the Ministry of Justice both talked about moving Oracle databases into the eight of us Cloud. It's not trivial. It's much easier for data warehouse and stateless applications for online transaction processing. Things like banking much, much more difficult to migrate into the clouds. So it's interesting. Sainsbury talked about racquets stands for a really application close. There's a very high end, complicated Oracle database that they migrated to Aurora. The Ministry of Justice talked about moving Oracle in tow. RGS, this is a battle I tweeted today earlier, Susana, you pick up the Wall Street Journal is a quarter page ad on the front page. Cut your Amazon bill in half now, of course, what? Oracle doesn't tell you is that they date to X the price when you're running on or on Amazon versus Oracle. So they're playing pricing games. Having said that organism very good database, the best database in the industry, the most reliable. So for mission critical applications, Oracle continues to be the leader. However, Oracle, strong arms people, they'LL, they'LL raise prices, they'LL get you in a headlock and do audits. And that's what Amazon was referring today about Microsoft and Oracle will do out. It's so they position. They tried a D position Oracle as an evil company. The Oracle, of course, so way add value. We have the best database, and they're trying to add value for the customers. Build their own cloud. So it's quite a battle that's going on, and you see the instance. Creation of that battle manifest itself in the general contract. >> Absolutely interesting is well, what we heard from really both states bruise on the Ministry of Justice, really talking about the end users and how they're so different. So for public sector organizations, this isn't about making more money making profit. It's about the experience for the user. But in fact, that came up from Sainsbury's as well, making sure that the right products are with the right part of the store. And that's how a I could help them do that and efficient, usable data they currently have. >> I think every enterprise really wants to have a consumer app like experience, and very few do. I mean, we all know used these enterprise APS from large, you know, brands, and they're often times not that great. So what, you're seeing a closing of the Gap? People see what's happening with Facebook and Instagram and Whatsapp and so forth and say we should be able to have apse that run that simply and so you're seeing that gap clothes. I don't see how you could do that without some kind of public cloud infrastructure because of the massive scale that's required. It's so companies like Saintsbury are moving in that direction. Mobile has been critical for the last decade, and so that's what the consumer wants. That's what the cloud can provide. >> Is that what every consumer wants? Because increasingly, we're hearing a lot more concerned about privacy, that people not wanting to give all of her data across to private companies and do you think this could be dist sticking point ready going forward and could actually hold back the growth all they ws and its competitors >> a great point because you have a problem. Wonder problems. You have this app creep. I can tell you have dozens and dozens and dozens of app on my phone. I don't know if I trust them with the data. So having said that, one way to simplify that is to eliminate the need to do heavy lifting and patching of your infrastructure. Let us take care of that and build value up the stack by focusing re shifting your resource is on on value added services. Could it be a problem? I think no question. When Snowden came out in the U. S. People in Europe for sure. As you know, we're concerned about putting their data in the cloud that seems to have attenuated. I don't hear much about that anymore, you know. But if the NSA can come in and demand access to my data, well, that could be problematic. That's why I ws is putting so much or one reason why they're putting so much emphasis on setting up regions. It not just eight of us, Amazon and Google and Microsoft as well for many reasons. Privacy. GPR compliance on of course, Leighton. See the laws of physics? >> Absolutely. Okay, Dave Melody, thank you very much for being with me here at the age of us. That summit here >> in London at the XL Center there is still so much going on here. Lots of breakout sessions, many more kind of individual keynotes taking place with the various different subsections. Although the A W s business and also its partners. So we will be keeping across all of those on the Cube. Thanks for watching.

>> Live from San Francisco, it's theCUBE covering Google Cloud Next 2018, brought to you by Google Cloud and its ecosystem partners. (techy music) >> Hello everyone, welcome back to theCUBE's live coverage here. We're in San Francisco for Google Cloud's major conference, Next 2018. I'm John Furrier, here for three days. Wall to wall coverage on day one. We've got two great guests from SignalFX, Karthik Rau, founder and CEO, and Rajesh Raman, who's the chief architect. Signal's a hot startup in the area. Way ahead of its time, but now as the world gets more advanced, the solution is front and center as the value proposition if cloud moves into the mainstream, devops going to a world at large scale. Not just networking, monitoring, applications, you've got service meshes booming, great topic. Karthik, great to see you, Rajesh, thanks for joining us. >> Thank you. >> John, great to be on. >> So, first of all let's just get it out of the way, you guys have some fresh funding in May, so just quickly give an update on the company. You guys raised-- >> Yeah >> A series... >> A series D. >> Series D, give us, but how much? >> Yeah, so we raised $45 million from General Catalyst leading the round back in May, been building a ton of momentum as a company, close to a couple hundred people today. We're using a lot of that to expand internationally. We've got a team in Europe now, just opened up a team in Australia. So, things have been going great. >> Congratulations, we've had chats before, always been impressed. You guys have a great stable of awesome engineers and talent in the company doing some great work, but it begs the question, I always like to get into the what ifs. What if I could have large scale application development environments with programmable infrastructure, how does that change things? So, Karthik, what's... How as that what if changes, now that is what's happening you're starting to see the cloud at scale for the common masses of enterprises, where old ways of doing things are kind of moving away. It's like horse and buggy versus having a car for the first time-- >> Yeah. >> Jobs are changing, but the value doesn't necessarily change. You still go from point A to point B, you still got an engine, people who care about fixing cars, so people just want to drive the cloud, some people want to get under the hood, whole new architecture. >> Yeah. >> What's the what if of if I could have all these resources, what's the challenges and what do you guys solve. >> Well, I think there are a couple of challenges in this new environment. One is the number of components are just orders of magnitude more than they used to be in a cloud environment, right? We went from having physical machines that live for three years in a data center, divide it up into VMs 10 years ago, now divided up into containers for every process. Not only that, but these containers get spun up and spun down every few minutes or every few hours, and so it's just the number of components in the churn is just massive. So, that in and of itself requires a far more analytics-based approach to understand patterns rather than what's happening on an individual component. The second thing that's changed is the operating model's fundamentally different, because now you're building and running web services, and when you're running web services the people who build the software are the ones who technically are responsible for operating it. And so, you know, you have more updates, you've got more people involved, you've got lots of different components that all need to interact with one another, and so having a communication framework across all of these disparate teams become really, really, really critical. So, those are the two fundamental changes as you move from, you know, for operating these modern, massively distributed-- >> Yes. >> Applications. >> And I'll just add just some observation data that we've seeing in theCUBE is those same folks building aren't necessarily operators, so they want to be in and out fast, right? (laughs) >> They don't want to be running and operating all the time, they want to push some code. Melody Meckfessel here at Google ran a survey with developers and said, you know, "What makes you happy," and it was two things that bothered developers: technical debt and speed for deployments, commits, and the commit number was around minutes. If you can't get something done in minutes then they're onto something else, so the mind share attention of developers and technicos. So, this is a challenge at scale when you have technical debt, which we've seen companies come out of the woodwork, "Oh, yeah, "I'm going to automate something, "I'm going to throw some compute at it with the cloud "with the best monitoring package on the planet "and look how great it is," but all they did was just code some instrumentation and that's it. >> Mm-hmm. >> They weren't dealing with a lot of moving parts. Now as more things come in this is a challenge that a lot of companies face. You guys kind of solved this problem... >> Yeah, absolutely, so maybe Rajesh was a part of the team at Facebook that built the Facebook monitoring system, and that's actually what gave us a lot of the vision to start SignalFX five-and-a-half years ago, so maybe-- >> Tell about the protection, the vision-- >> Yeah. >> And what you guys are doing. >> Yeah, so CICD, you know, it kind of, like, underlies a lot of this vision of, like, moving fast. You mentioned that people wanted, like, you know, push their code in a few minutes... The thing that makes that possible is for you to have observability into what's happening while that push happens, because it's one thing to push very fast, it's another thing to recognize that you might have pushed something bad and to be able to revert it very quickly, too. And so, you'd only need, like, you know, good observability into all the things that matter that characterize the health of your system to be able to quickly recognize patterns, to be able to quickly recognize anomalies, and to be able to maybe push forward or even roll back very quickly. So, I think, like, observability is like a very key aspect of this entire CICD story. >> That's great, and that's great to know that you were over at Facebook because obviously Facebook built, at scale from the ground up, a lot of opensource. Obviously they contributed a lot to opensource, but it's interesting, as they matured and you start to see their philosophy change. It used to be move fast, break stuff. >> Yeah. >> To move fast, be reliable. >> Yeah. >> This is now the norm that's the table stakes in cloud. You have to move fast, you got to push code, but you got to maintain an operational integrity. This is, like, not like an option. This is, like, standard. >> Absolutely. >> How do you guys help solve that problem? >> So, I think there are a few different aspects to it. So, the first is to, you know, people need to ensure that they have observability into their application, so this is ensuring that you have the right kind of instrumentation in place. Thankfully this is kind of becoming commoditized right now and getting metrics from your system. The second part, and the more key part, is then being able to process this data in a real time way. You know, have high resolution, very low latency, and then to be able to do real time streaming analytics on this data. In highly elastic environments when things come and go very quickly, the identity of any individual, like, component is less important than the aggregate system behavior, and so you really need the analytics capability to kind of, like, go across this data, do various kinds of aggregations, compare it against past data, do predictive analytics, that sort of thing. So, analytics becomes the very key concept of, you know, how you operate these environments. >> It sounds so easy. >> Yeah, well one thing I'll add to that, so you know, to your point a lot of big companies sometimes are scared by this. You know, "How do we," you know... "We can't move quickly and break things," and everything that they've designed is around having process and structure to check and make sure everything is clean before they push changes out, and now we're in this world where, you know, an intern or a developer can push directly on a production, how do you manage that? The key thing in this modern world when you're trying to release software quickly, Rajesh hit on this earlier, you need the magic undo button. >> Yeah. >> That is the key to this entire process. You need to design your software, you need to design your process, and you need to design your tools so that if you introduce something bad you catch it immediately and you can roll it back. So, lots of devops practices are oriented around this, right? The idea of a canary release, I'm going to roll out an update to one percent of my systems and users, test it out, observe all the metrics, make sure everything is clean before I roll it out to everyone else, and the ability to roll back quickly is also important. But in order to do all of this you need the visibility, you need the metrics, and you need to be able to do analytics on it quickly to identify the patterns as they emerge. >> That's a great point and I'd love to just double down on that and get your thoughts because some of the Google Cloud people who are operating at this scale, I put them on this whole service-centric architecture, because they're services. We're talking about services, managing sets of services, having analytics, observation space, the reverting back and the undo button, the magic button do-over, whatever you want to call it, but the interesting thing is clean. Having a clean service whether it's an API, message queue, or an event, this stuff's happening all over the place in the new services world. How do you guys help there, is that where you guys get involved? Do you see up in that layer, how far up are you guys looking at some of the instrumentation and the insights? >> Yeah, you want to take that? >> Yeah, sure, so you know, the one thing that we really like about SignalFX and we were very keen on when we built the platform is that we are very agnostic about metrics. We're happy to accept metrics from anywhere, we'll take instrumentation-- >> (chuckles) You don't discriminate against metrics. >> We'll take instrumentation from cloud environment, we'll take, you know, metrics from opensource systems and premier applications, so you know, some of these systems are already kind of built in to get metrics from. You know, we talk to the Kafkas and Cassandras of the world, for example. We can also talk to GCP and AWS and grab metrics from their system. I think the interesting question is like when people really are taking the devops philosophy of, like, so how do you instrument your own application, what questions do you want to ask from your environment that answer the critical questions that you kind of have, and so you know, that's the one, that's the next step in the hierarchy of needs is for people to ask the right kinds of questions, and you know, instrument their applications properly. But like having done that, we can go up and down the stack in terms of, like, insight into whether all the way from your cloud environment through opensource systems, all the way up-- >> So, you guys'll take data from anyone, just stream it in-- >> Yeah. >> Normal mechanisms there, what's the value added, where's the secret sauce on SignalFX? >> So, I think value, it's all about analytics. We are all about analytics, so we are able to look at patterns of the data, we can go up and down the stack and correlate across different layers of software, look at interactions across components in your microservice, for example. You know, one really interesting thing that's happening, as you might be aware, like the whole service mesh aspect of it, which lets us, gives us insight into interactions between components-- >> Yeah. >> In a microservices architecture, so you know, we are able to get all that data and give you insight into how your whole system is working. >> So, you guys, you can see in the microservices layer? >> Absolutely. >> Yeah. >> That's powerful. >> And the key point is monitoring really has become an analytics problem, that's what we keep saying, right, because what's happening on an individual component is no longer as interesting as what's happening across the entire service, so you have to aggregate the information and look at the trend across the entire service, but the second thing that's really important is you need to be able to do it quickly, and this is where our streaming real time system really mattes. And people might ask, "Why does it "matter to do something real time." Like, "Seconds versus minutes, can a human actually "process something in seconds versus minutes?" Perhaps not, but everyone's moving towards automation, right? >> Yeah. >> So, if you want to move to a system where you have a closed loop, you have automation, and guess what, all of these modern systems, all the stuff that Google's talking here is all about automation. >> Yeah. >> And in that world seconds versus minutes, it means a tremendous amount of difference, right, where if you can find signals that will tell you there's an emerging problem within seconds and then you can revert a bad code push or you can auto-scale a cluster or you can, you know, change your load balancing algorithms all within seconds, that is what enables you to deliver, you know, 4.9s, 5.9s type of availability. >> And the consequences of not having that is outages-- >> Yeah, outages. >> Performance. >> Performance degradations, unhappy customers. I mean the cost to a brand now of having any kind of a performance issue is enormous, right? People are on Twitter before your team knows about it. (chuckles) >> Actually, you guys have a lot of the things you're solving, what is the core problem that you solve, what's the value proposition if you narrow it down that's high order bit for SignalFX? What's the corporate problem you solve? >> Well, we're solving the monitoring and observation problem for people operating cloud applications, so what happens is when you use SignalFX you have the confidence to move quickly, right? It gives you the safety net to be able to deploy changes on a daily basis, to have the shared context across a distributed team, so if you've got hundreds of two pizza box teams working together we give you that framework, the communication framework and the proactive intelligence to find issues as they emerge and proactively address them. And bottom line what that means is you can move as quickly as a Google or a Facebook or a Netflix even if you're a traditional Fortune 500 company that's regulated, and you know, you think you may not be able to do it but you really can. >> You give them the turbo charge, basically, for the analytics. All right, here's a question for you, what are the core guiding principles for the company? You guys obviously have a lot going on so you've got a core tech team, I mentioned it earlier. >> Mm-hmm. >> What are some of the guiding principles as you guys hire, build product, talk to customers, what's the key DNA of SignalFX? >> Yeah, I would say we are a very impact-driven company, so I'm, you know, very, very proud of all the people that we have on the team. We've got a lot of entrepreneurs who are focused on solving big problems, solving problems that customers may not necessarily know they need at the time, but as the market evolves we're there to solve it for them. So, we're a very customer-centric company. We have fantastic, we invest aggressively in technology, so it's not just about wrapping a pretty UI around, you know, Bolton Tech. We have real differentiated technology that solves real problems for people, and you know, I think we've in general just tried to skate to where the puck is and understand where the market's headed as a company. >> What are some of the customer feedback that you're getting? For folks that don't know SignalFX, what are some of the things that you're hearing from customers, why are you winning, what are some of the examples, can you share some color commentary? >> Yeah, I'll give one example, a Fortune 500 company that has been very aggressively investing in cloud the past, you know, four or five years, built an entire digital team, and their entire initiative is, like a lot of people in the Fortune 500 now, is to have a direct-to-consumer type of a relationship, and one of the things that they struggled with early was how do they move quickly, support product launches that might have massive load, and have the visibility to know that they can do that and catch issues as they emerge, and they didn't have a solution that could give that visibility to them until they leveraged SignalFX. And so now, if you talk to people there they'll say that they've essentially gone from defense every time they did one of these product launches to being on offense and really understanding what it takes to successfully launch a product and they're doing way more of these, so-- >> Moving the needle on time to market. >> Moving their business forward, you know, and digital transformation just by-- >> Yeah. >> Having SignalFX as a core enabler. >> It's the cloud version of putting out fires, so to speak, when you do product launches, right? >> Yeah. >> I got to ask you guys a question. You guys are both industry veterans, obviously Facebook has a storied history. We know all the great things that happen on the infrastructure side. Karthik, you've been in VM where you've seen the movie before where VM, where it made the market, changed IT for the better, still talk about the VMwares now. Now as we see cloud taking that next transformational push, describe the wave we're on right now, because it's kind of an interesting time in tech history where the talent that's coming in is pretty amazing. The young guns coming in with opensource the way it's flourishing is pretty phenomenal. Some of the smartest computer science and/or engineering talent is really solving what was old school B2B problems that really no one really wanted to solve. I mean, it was people were buying IT. Now you're talking about building operating systems, so the computer science kind of mojo in the enterprise has upped a bit. >> Mm-hmm. >> What's this wave about, how would you describe the wave of this time in history of the tech industry? >> Do you want to... (laughs) I'll add my take but why don't you go first. >> I think the thing that I find striking is just like, you know, when people used to talk about big data, you know, a few years ago, and now that is like, that's just normal. >> Yeah. >> And like, the amount of compute and the amount of storage that people are able to, you know, bring to command at-- >> Yeah. >> On any problem, it's just incredible, and that's just going to, I think, like continue to grow, right? That's going to be an amazing thing to watch. I think, you know, what this means... It also has interesting implications for, you know, companies like SignalFX who are trying to be in the monitoring space because the mojo used to be you had to have all this complicated software to do the instrumentation. Well, the instrumentations part is easy, but now all the value that's going to come about monitoring is in what you do with all that data, how you analyze it and look for, like, you know, so the whole AI ops and all that is going to be the key of the whole monitoring problem going forward, you know, five, 10 years from now, but we already see that analytics is such a key aspect of the whole thing, so... >> Yeah, I'm very, I think we're at the beginning, still at the beginning of a massive 30 to 40 year cycle, and this hasn't happened since the PC revolution in the 1970s, right, so the smartphone comes out 2007, massively opens up the market for software-based services to several billion people who are connected all the time now, drives a massive refresh of the backend infrastructure, drives the adoption of opensource, and so we're at this magical point now where the market for software-based services is just exploding, and every enterprise, you know, is becoming a software company, and you know, I think the volume of data that we're accumulating is just growing exponentially and what you can do with AI at this point, it's just... We're just beginning to see the benefit of it, so I think this is a really, really exciting time and I think we're just at the beginning. Most of the enterprises, and even the tech companies, are just beginning to capitalize on what is in store for us in the industry. >> I find it to be intoxicating, fun, and just great people coming in. To your point about the beginning of a 40 year run, also the nature of software development is being modernized at an extremely accelerated pace, so as people in the enterprise start re-imagining how they do software, because if they're a software company they've never had product managers. I mean, so the notion of what is a product, how do you launch a product, is all kind of first generation problems and opportunities, so I think to me it's really the enablement... And this is really what I think people are looking for is who can take the burden off my shoulders, help me move faster, more gas, less brake. >> Mm-hmm. >> Go faster, drive value, and then ultimately compete, because competitive advantage with technology... What does that mean to you guys, because how do you react to that because what you essentially are doing is creating instrumentation for enabling companies to create new value faster with technology and software, in some cases at a level that they've never seen before. What do you, how do you react to that? >> Well, I think that's exactly what we do, right, I mean, every company, I think most companies realized that they had to invest in software and focus on all these new opportunities at the early part of this decade. First thing they had to do was figure out who's going to build all this software, so most of them had to go hire engineers or build digital teams. They had to decide where are they going to run, the cloud wars of, you know, the early part of this decade. Do we build a private cloud, do we use a public cloud, I think both of those things have happened and people are now comfortable with those decisions. The third leg, which is squarely in the space that we're in, which is how do you operationalize this new model, and I think people are working through that now. As they get through that in the next few years, the companies like SignalFX helping every company, operationalize it very quickly, I think that's when the true promise of this new digital era will be realized where you'll start to see all of these fantastic applications, mobile apps, web service apps, direct-to-consumer streamlined supply chains. We're just beginning to see the benefit of that, and we'll see when that happens then the volume of data that they're collecting will increase exponentially and then the promise of machine learning and AI will take an altogether nother step. >> You got to know how to automate it before you can automate it, basically. What's next, final question for you guys, what's going on with SignalFX, what are you guys going to conquer, what's the next major milestones for you guys, what are you looking to do? >> Yeah, well we're continuing to focus on driving value for our customers, so we're expanding our geographic presence, so we're doing a lot of international expansion at this point. We're hiring a lot of engineers, so if anyone is interested in a development job, reach out to us. >> What kind of engineers are you looking to hire? >> Rajesh, you want to take that, sorry. (chuckles) What kind of engineers... >> What kind of engineers you looking to hire? >> Everything. (chuckles) >> I mean, all kinds of engineers, especially distributed systems engineers, front end engineers, full stack engineers, like real tech, all the good engineers we can get. >> (chuckles) Awesome. >> A lot of product development, there's a lot of interesting things happening in this space, and so we're, you know, continuing to invest very aggressively. >> Large scale distributed systems. >> Yep. >> You've got decentralized right around the corner, so you've got a lot of stuff happening. >> Yeah. >> Yeah. >> Great job to have you coming on, thanks for coming on, Karthik. >> Great, great to be on. >> Rajesh, thank you so much. >> My pleasure. >> SignalFX here in the cloud of Google here at Next, it's theCUBE, theCUBE cloud, CUBE data, we're bringing it all to you. I'm John Furrier, thanks for watching. More coverage, stay with us, we'll be back after this short break. (techy music)

>> Live from San Francisco, it's theCUBE, covering Google Cloud Next 2018, brought to you by Google Cloud and its ecosystem partners. (electronic music) >> Hello, everyone, welcome to theCUBE, here, live in San Francisco at Masconi South. We're here with Google Cloud Next Conference. It's Google Next 2018. It's theCUBE's exclusive three days of wall-to-wall coverage. I'm John Furrier, and I'm joined with my co-host Dave Vallente. Jeff Rick's here, the whole team is here. This is a big break out moment for Google Cloud and we're going to break it down for you. Going to have interviews with Diane Green coming in today, Google Executives, Google's top women in the Cloud, top customers, and top people within the ecosystem. Google Cloud is really going to the next level. This show is really about coming out party for two years of work that Diane Green and her team have been doing, transforming Google from the largest Cloud for their own business, to making Google Cloud consumable and easy to use with the technology for large enterprise customers as well as developers around the world, global platform. Dave, we had the keynote here. I'd say Google we're seeing, introduce their Google Cloud service platform GCP certifying partners, Cisco announced on stage they are re-selling Google Cloud, which takes a big objection off the table around not having a quote, "Enterprise ready sales force". Google is in every large enterprise, Google's Cloud is morphing into a large scale technology driven Cloud. The number one advantage they have is their technology, their OpenSource, and now a partnership with Cisco, and all the machine learning and all the infrastructure that they have are bringing out a new look. This is Google's coming out party. This is really two years of hard work, that Diane Green and the team have accomplished. Working, bringing on new people, bringing on a whole new set of capabilities. Checking the boxes for the table stakes, trying to get it to pull position, for the Cloud game, obviously Amazon is significantly ahead of everybody. Microsoft making great progress, their stock is up. Microsoft, although leveraging their core confidency, the enterprise and the office, and all the existing business that they do. Again a B to B, Google bringing in end-user centric view with all the automation. Big announcements. Google Cloud services platform, Histeo is now shipping in production, doubling down on Kubernetes, this is Google looking at new abstraction layers for developers and businesses. Diane Green, not the most elegant in her keynotes, but really hitting all her marks that she needed to hit. Big customer references, and really showcasing their competitive advantage, what they want to do, the posture of Google Cloud is clear, next is the execution. >> So here at Google Next 25,000 registered people, so big crowd. Diane Green said on stage 3000 engineers here, we want to talk to you. The Cisco announcements, classic case of a company without a Cloud, wanting to partner up with somebody that has a Cloud, Google, and Google, without a big enterprise sales presence. Obviously Cisco brings that. So kind of match made in heaven. Obviously, Cisco's got relationships with other Cloud providers, particularly Microsoft but, to me this makes a lot of sense. It's going GA in August, you also saw underneath that, GKE, Google Kubernetes Engine, now it's on prem, so you're seeing recognition of hybrid. We heard Diane Green talk about two years ago when she started John, she got a lot of heat from the analysts. You're not really an enterprise company, you got a long way to go, it's going to take you a decade. She basically laid down the gun and said, we are there. We'll talk about that. We'll talk about what leadership means. You just made a comment that Amazon is obviously in the lead. What is leadership? How does Google define leadership? Clearly they're leading in aspects of the Cloud. Scale, automation, OpenSource, contributing a lot, it makes me wonder, does this hundred plus billion dollar company with a hundred billion dollars in the bank, do they really care about how much money they make in the enterprise? Or are they trying to sort of change the way in which people do development, do programming, that's maybe a form of leadership that we really haven't often seen in the industry. I mean I go back, I harken back, not that it's an exact comparison, but you think about Xerox park and all the contributions they made to the industry, think about the contributions that Google's making with TensorFlow, with Kubernetes, with Istio, a lot of OpenSource chops giving to the community. And taking their time about monetizing it, not that a couple billion dollars or billion dollars a quarter is not monetization, but compared to 25 billion of Amazon, and what Microsoft's doing it's much smaller market share. >> I mean that's a great point about the monet, all the analysts and all the Wall Street guys are going to go to try to figure out, squint through the numbers try to figure out how you make money on this. We've been talking to a lot of the Google Executives and a lot of the engineers leading up to Google Next, we've had great relationship, some of their inside people. The common theme Dave that I'm hearing is absolutely they're playing the long game, but if Google's smart, they will leverage their retail business, ads and other things, and not focus on the short-term monetization, and that's pretty clear, some of the posture. That they're looking at this as an engineering culture, engineering DNA, OpenSource DNA, and they're about speed. When I press Google people and say, "What is the DNA of Google Cloud?". It all comes back down to the same thing, inclusive, open, speed. They're going to focus on how to make things faster, that has always been the culture at Google, make page loads faster, make things go faster. Amazon has the notion of, ship things as fast as possible at lower prices. Amazon is make stuff go faster and make it easy to use from a consumer standpoint so, easy of use has always been a consumer DNA of Google, and now with Cloud, if they don't focus on the short-term, they continue to march the cadence of open, speed, ease of use, and take that user-centric view, to make things easier that's key. I'm really impressed with the announcement, one little kind of technical kind of nuance is this Istio. Istio is an extension of Kubernetes, and this is where you're starting to see some signals from Google on where they're going to be scanning through with (mumbles). And that is as Kubernetes builds on top of containers, and as Kubernetes starts to be more of an orchestration layer, the services that are deployed in the Cloud are going to have more and more functionality. This is classic moving up the stack. This is an only an opportunity to build abstraction layers, that make things really easy to consume, and make things faster. If they can get that position, that beach head, they will enable developer greatness, and that'll maybe hopefully change the game a little bit, and sling shot them into a position that's different than what Amazon, I mean, what Microsoft's doing. Microsoft's just brute force, throwing everything at Cloud. The numbers look good on paper, but will that truly translate to ease of use, large scale, global deployment, managing data at scale. I mean Google's great some technology, and that is their number one thing that they have a their disposal. >> Well Istio, the classic case of dog fooding, right John? I mean there's Google, using tons and tons of micro services for its own purposes, enter gate, how do we simplify this? How do we automate this? And how do we pay it forward? And that's what they do, that's their culture. This is a company that's, again, talk about leadership, they spent well over $10 billion a year on Capex, you can argue easily they got the biggest Cloud in the world, certainly they got more underwater cable, the biggest network in the world, so these are forms of leadership. Diane Green talked about information technology powering every aspect of the business. I mean we've heard that since Nick Carr said IT doesn't matter, but now it seems like more than ever, it's more important. She also said CIO's realized they're not in the data center business, but yet they only have a small fraction of their workloads in the Cloud. This is why she said Google is seeing, and others I'm sure, seeing such big growth in the Cloud. But then she underscored, but we're modern Cloud. We're not lift and shift Cloud. We're not doing what Oracle's doing and sticking the existing apps in the Cloud. We're doing things differently. You talk about this a lot John, you talked to a couple of really high level women in Google, about the new development model, the new programming model, they're really changing the way in which people think about software development. >> Yeah I mean I think one of the things that's clear is that, the modern era can hear around software development. Software development life cycle, certainly we hear, Agile have been going on for the DevOps movement and that's kind of been out there, but what's changing now is that software engineering, or software development, isn't just computer science. You don't need three computer science degrees to do Cloud and do development. The aperture is widening on what computer science is, that's opening up more women in tech, and as Diane Green pointed out on her keynote, there's a re-engineering of business going on, there's new discoveries happening, and half the population is women, and so women should be part of making the products consumed by women and other people. So there's a huge opportunity to fill the gender diversity gap, but more importantly I think what's interesting about Google Cloud in particular is that they kind of figured out something, and it might have been a pop to their arrogance balloon but it used to be, "Oh, everyone wants to be like Google, 'cause we're so huge and we're great". 'Cause they are. Their technology is phenomenal, you look at what Google's built and Urs has been on stage, they have built probably the best most complex system to power their business, and all of a sudden that's come out from map produced paper, Kubernetes, which they're now doubling down on, Google has done amazing. They're about 10 to 15 years ahead of the market in terms of technology by my estimate. The problem that they've had when they first started doing Cloud was, oh just, you want to be like Google. No people don't want to be like Google, people can't be like Google, what they now understand is that people want what Google has, and that's ease of use, DevOps, fully com instead of libraries, com instead of interfaces, really ease of rolling out at scale applications. That's different. People want the benefits of what Google has for their business, not, they don't want to be like Google. I think that was the, I think that Diane Green two years ago, came in and reset. They've hired great enterprise people, and the question is can they catch up? How fast can they catch up? They're checking the boxes, they're doing the table stakes, and can they harvest the best that they're making? Auto ML is a great example. IT operations is going to be decimated as an industry sector. All the industry analysts and the financial analysts have not yet observed this but, anyone who's in the business of IT operations is going to get decimated. Automation's going to take that away and make it a service, it's going to be a human component, but the value is going to shift up the stack. This is something that we're seeing as to look at value of start ups, IT operations, AI operations, this is a new category of the industry, and Google is betting on that. That to me is a big tell sign. >> And we've been talking about the economics of that for years, but I want to come back to something you said. Google clearly was late to the enterprise party, and I think part of the reason you were touching on this is I think they underestimated the degree to which organizations, enterprise in particular, have all this technical debt built up. You can't just rip out and replace, these companies are making money with their existing Oracle databases, with their existing outdated processes, but they're making money, they're meeting Wall Street expectations, they're making their big bonuses so they can't just stop doing that. It'd be like Google to your point, but Google is playing the long game, they are doing something differently, and they're trying to help people get to this new era of software development, so I think that's a very very important point. >> Melody Meckfessel, one of the VP of Engineering, she is going to announce a survey that she did. It's interesting, they pulled the human aspect of development, and they asked the question, "What do you care about?". And developers care about generally the enterprise and kind of Cloud native developers, really two things. Technical debt, and time to push code. If technical debt accumulates, that's a huge problem, makes them unhappy, makes them kind of, not happy with how things are going, and then also speed. If you're shipping code it takes more than a few minutes to get back the commits that it hit. That's a problem. This is a huge issue. You said technical debt. Enterprise IT has been accumulating decades of technical debt, that's now running the company. So as re-engineering the business theme that Diane Green points out, really is spot on, people are going to stop buying IT and be deploying services more in the future, and using those services to drive business value. This to me is a big shift, this is what's going to hurt in (mumbles) and enterprises that, no one's buying IT. They're building platforms, the product is the platform, and the sense of services will enable applications to sit on top of them. This is an absolute mindset shift, and that impacts every vertical that we cover. You've covered IOT and everything else. The way CIOs think about this is they think about a portfolio, and it's just to simplify it. It's like run the business, grow the business, transform the business. And by far, the biggest investments are in run the business, and they can't stop running the business, they can't stop investing in running that business. What they can do is say, okay we can grow the business with these new projects and these new initiatives, and we can transform the business with new models of software development, as we transform into a digital company as a software company. So that it increasingly going to be pouring investments there, and it's slowly sunset, the run the business apps. It happens over decades. It doesn't happen over night. >> Well that's actually the number one point I think that didn't come out in the keynote but Earl's talked about it, where he said the old model is lift and shift. When we covered at the Linux foundation, and the CNC app, and the other shows that we go to is that what containers and Kubernetes are bringing to the market, the real value of that, is that existing IT CIOs don't have to rip and replace old apps, and that's a lot of pressure, the engineering requirements, there's personnel requirements, there's migration, so with Kubernetes and containers, containers and Kubernetes, you can essentially keep them around for as long as they need to be around. So you can sunset the applications and let the apps take its natural life cycle course, while bringing in new functionality. So if you want to be Cloud native right out of the gate, with Google Cloud, and some of these great services, like AI and machine learning that's going on, you can actually bring it in natively, containerize and with Kubernetes and now Istio, build a set of services to connect existing applications, and not feel the pressure and the heat, the budget for it, the engineer for it, to actually hire against it, to manage the existing life cycle. This is a huge accelerant for Cloud native. The rip and replace doesn't have to happen. You can certainly sunset applications at will, but you need to kill the old, to bring in the new. This is a very very important point. >> Yeah so a couple things that Diane Green hit on that I just want to go quickly through her keynote. She talked about, like you say, a small fraction of workloads are actually in the Cloud, but she asked the question, why Google? She said "Look, we're an enterprise company, but we're a modern enterprise company. We take all the information from that Cloud, we organize it, we allow you to put it back intelligently. We've got a global Cloud and it's unbelievably complex. We've got 20 years of scaling and optimizing, with that elite team. We've the most advanced Cloud in the world". She said, she didn't give the number, but many many football size, football stadium size data centers around the world that are carbon neutral with tons of fiber under the ocean, specialized processors, talked about Spanner, which is this amazing distributed, globally distributed consistent transactional database, big query, and she also talked about a consistency with a common core set of primitives. Now I want to ask her about that, 'cause I think she was taking a shot at Amazon, but I'm not sure, if they have a, to make a similar statement, so we're going to ask her about that when she comes on. She also said, the last thing I'll share with you is, "AI and security are basically hand in hand". She said security is what everybody's worried about, AI is the big opportunity, those are the two areas where Google is putting some of its greatest resources. >> That was my favorite sound bite by the way, she said, "Security's the number one worry, and AI is the number one opportunity". Really kind of points to it. On the primitive things, I don't think that's so much a shot at Amazon, as in it's more of multi Cloud. We've been kind of seeing multi Cloud vapor ware for months, past year, 'cause it kind of is. What we were seeing with Cloud native community and OpenSource is multi Cloud can only happen if you can run the same map across multiple Clouds with common interfaces, and that ultimately is I think what they're trying to solve. My favorite sound bites from her keynote is, she said, quote, "We've got 20 years scaling Google Cloud", it's obviously very large, number one Cloud, if you want to put Clouds in benchmarks and without (mumbles) of the enterprise number one, in terms of tech and scale. But she says, "My main job at Google two years ago was surfacing the great technologies and services, and make it easy to use. We have a technical infrastructure, TI, that has big query, Spanner, and then consistencies across all primitives", and she said on top of the technical infrastructure they got Gmail, Gsuite, maps, et cetera et cetera, powering at large scale, dealing with all the threat intelligence, and a ton of body of technology around II. And then to cap it all off, leader in OpenSource. To me this is where Google's betting big, with security as the number one worry, which is a major check box with AI kind of the catnip for developers. And they got security features. If you compare Amazon to Google Cloud, Amazon wins on sense of services in terms of number of features, but the question is, does Google have the right features? These are the questions we're going to have. And the dig at Amazon was Reed Hastings, Netflix CEO, friend of Diane Green, I've seen them both speak at Stanford, so she bumped into, what she said, "Reed Hastings is a power user of Google Chrome and Gsuite", and kind of said how great it is, but that's not Netflix. Now Netflix is an Amazon customer, so interesting jab there was about Reed Hastings personally but not about Netflix being a customer of Google Cloud. The question is, can Diane Green convince Reed Hastings to move Netflix from Amazon to Google Cloud? That's the question I'm going to ask her. >> The other piece of the keynote that I thought was quite interesting was Urs Holzle, who's the Senior Vice President of Technology Infrastructure who was doing Cloud before anybody talked about Cloud, he said, "Cloud's a fundamental shift in computing. GCP gives you access to unlimited computing on the world's largest network". Talked about Spanner, the globally consistent distributed database, ML APIs for doing speech and natural language recognition. Big query, the big data warehouse, basically a silo buster, but he said what's still missing, is essentially that hybrid (mumbles) all the Cloud's are different. I interpreted that meaning closed. So he said, "Things like setting up a network, provisioning a virtual machine, are all different". And basically to your point John, that stuff is going to get automated away. So Istio, they talked about Apogee, visibility, orchestration, serverless, they talked about GKE on prem, which is Google Kubernetes Engine on prem, and then Cisco came out on stage. The big partnership, the big news from the keynote. >> Lets talk about what we're going to look for this week in Google Cloud, and also within the industry. Dave I'll start. I'm looking for Google's technology architecture map, which I love, I think they've got a great solution, does that translate to the enterprise? In other words, can they take what Google has and make it usable and consumable for enterprises without having the be like Google strategy, use what Google has benefited from, in a way that enterprises can consume. I'm going to look for that, see how the technology can fit in there. And then I think the most important thing that I'm going to swing through all the hype here and the comment and the news and Kool Aid that they're spreading around, is how are they making the ecosystem money? Because if Google Cloud wants to take the long game, they got to secure the beach head of the viable, large scale Cloud which I think they're doing extremely well. Can they translate that into a ecosystem flourishing market? Does that make money for developers? They talk about going into verticals as a core strategy and healthcare being one. Can they go in there, in financial services, manufacturing, transportation, gaming and media, and attract the kind of partners and business customers that allow them to do better business? Does it translate the distribution for developers? Do businesses make more money with Google? That to me is the ultimate tell sign with how Google Cloud translates to the market place. Ecosystem, benchmark, and value to customers in terms of money making, utility of the users, and their customers' customers. >> So two things for me John. One is the same as yours is ecosystem. I learned from the SiliconANGLE editorial team, by the way, go to siliconangle.com, there's some great editorial to drop this week in support of just what's going on in Cloud and Google Next, but I learned from reading that stuff, Google late to the party. Only 13,000 partners. Amazon's got 100,000 Cloud partners. (mumbles) has 70,000 Cloud partners. Where, what's the ecosystem strategy, how are they going to grow? How are they going to help make money? The second thing is, basic question, I want to understand what Google wants in the Cloud. What's their objective? I know Amazon wants to dominate infrastructures of services, and be the leader there. I know that Microsoft wants to take its existing software state, bring it to the Cloud. I'm not really clear on what exactly Google's objectives are. So I want to get clarity on that. >> I think it's going to be developers, and one of the things we're going to dig into as the OpenSource. theCUBE coverage here in San Francisco, live coverage of three days wall-to-wall, (mumbles) Dave Vallante, stay with us. thecube.net is where you can find the live feed if you're watching this on SiliconANGLE or around the web, or with Syndicate. Go to thecube.net to get all the content, and siliconangle.com has a Cloud special this week. The team is putting out a ton of content. Covering the news, critical analysis, and what it means and the impact of Google Cloud into the industry and to their customers. So I'm John Furrier, Dave Vallante, stay with us, live coverage here, be right back. (electronic music)