>> Hey. Welcome back, everybody. Jeff Frick here, with The Cube. We're in Denver, Colorado at the Airworks show, put on by DJI, and who knew that we would fly, like a thousand miles to see the keynote speaker, guest speakers, the Menlo Park Fire Department, real close to us in Palo Alto, So, we're excited to have them here, and, also, to learn about the practical applications of drone technology for public safety. So, we're joined by Michael Ralston, he runs the Crisis Response and Innovation in Technology Practice Initiative at Menlo Park Fires. So, Michael, great to see you. >> Thank you. Thanks for having me here, Jeff. >> Absolutely. You're obviously here on the invitation of DJI so you guys must be doing some pretty interesting things. Not only with drones, but really looking at a broader technology suite of things that you guys can bring to bare, to save lives and put out fires. >> Absolutely. Absolutely. We're excited to be here, and the thing about DJI is that we've been working with them for years. We've been getting into the whole concept of using drones and using technology in crisis response. And so, it's all coming together right at the right time. We're excited about the announcements that are going on here because it really represents a culmination of what we've been trying to do. >> Right. But still, you're a real customer, and I thought it was interesting. The first part of the story was you guys decided to get drones and use them, you got one, and then it sat on the shelf for two years. Right? I mean, it's just not as easy, and then I think the other really important message that came out of your talk was, you kept kind of stumbling on to all these new requirements. Insurance, training, certifications. So, it wasn't easy, but that was years ago. And now, you guys are really leading the charge in using this technology. >> There is many, many people in the country who are all uncovering this Van Gogh at the same time. And so, what we really try to do, and try to bring across in our program is that it's not all about us and we're not necessarily the leaders. We may be one of the ones who are leading the charge, but what we've discovered over the years, over the years in our term, right? Which is really months. Is that that initial foundation stage, getting the drone and having it sitting there, we discovered quite a bit. We discovered that you have to do this first. Oh, wait. You got to do this first, you got to do this. And once we got to that point, where we had the right regulatory and political, community support, then we got into this growth stage. This is an exciting time. It was a transition point where now we're starting to ... Things are moving faster, we're starting to learn. We got out of middle school, we're now in high school. But that growth phase, that was... As exciting as it was, we started doing more and more missions. Use whichever cliche you want. "Two steps forward, one step back," whatever. We discovered that there's an ecosystem out there. This ecosystem is bigger than we are, and involves all kinds of other critical elements that have to be put in place and have to be developed, have to get deep. Things that are beyond our expertise, things such as logistics, such as training or support, or other regulatory elements. All those things, and technology, obviously. As we learned about this ecosystem, we started to realize that that's what's going to make all this work. It's not just us, we're like a start-up company. We're like a technology start-up company, within the fire district. But we realized, like any start-up company, that market has to be made. And so, we've spent a lot of time, a lot of effort putting together things, bringing people together, saying... People listen to us, we're the fire department. It's kind of fun to hangout with us, or we like to think so, but... >> It is (laughs). >> But, what that means is we say, "Hey, why don't we get everybody together, and let's have a conversation together." And, it's that symbiosis. It's that synergy, energy coming together, that new links, new networks are formed, and people start to realize, "Oh wow. You're doing that? We're doing that, too. Let's work together." And, we just stand by and go, "This is awesome," because it gets us to where we want to be, which is saving lives, obviously. >> It's interesting because you showed a symposium that you put on at Slack, again not only the ecosystem to enable you, but then you guys took a real active role then in passing that knowledge on to other departments and other institutions. Wondering if you can explain a little bit, how did that come together? How well was it received? And is that now part of an ongoing thing that you guys are going to continue to support. >> Well, brief answer. Absolutely, it's an ongoing thing. It's an ongoing thing beyond just drones, so we're calling it Technology Symposium. Meaning, we started to realize that there's all kinds of inventive technology. My program, Crisis Response, Innovation, and Technology is how do we go and leverage... make use of all the things we can put into the fire service to help us do what we do. Now, specifically to your question, this symposium. We had all these folks there together, and it was great. It was very well received and a lot of people came up to us afterwards saying, "I'm so glad you did this." And, it was because everyone thought it should be done. We are blessed by the fact of where we are, or geographically speaking. And, by the fact that when we do knock on people's doors they tend to answer, they're excited to go and participate. So, we're good at hosting a party. But we were hosting a party, that's what it was. We contributed what we knew, which was, "Hey, we're trying to climb this mountain, and we took this path." But there's lots of other people who have just as important programs, and they've learned a lot of other things we haven't learned because they took this path. Let's get them all together, and the only way we can get to the mountain top together is to share that information. >> Give us some specific examples of things that you guys do with drones that you could not do before that have been some of the really... Like, "Wow," "A-ha" moments when you deploy these things. >> How much time do you go? >> Give me your top couple, we've got time. You're the fire department, we got time. Nothing's burning, they are running drones back there. You could probably hear them in the background. >> There's quite a bit. The first place that I would start is we are the fire department and we do regular fire department things. We put out fires, we go to auto accidents, we go to medical things. All those things that we do can come up with a use case for a drone because when you think about it, as Chief Calvert mentioned earlier on in our presentation, our fire district, like any other fire department around the country, around the world, we protect life, we protect property, we protect the environment, right? Well, but when you think about, "What can a drone do?" "What can technology do, in general?" It can do three main things, right? And, these are critical things to us. One, is provide more safety. One, is provide better situational awareness, two. And three is, of course, better response time. Well, response time, situational awareness, and safety, that applies to medical calls, applies to car accidents, applies to fire. A more specific example is, you have a fire, and, conceptually, we live... I don't know what the traffic is like where-- >> I live right by you, in Palo Alto. So, it's not good (laughs). >> Picture yourself needing the fire department to get there, you call 911 and there's traffic. Now, lights and sirens are going to let people know, but you can't go anywhere if you're in a traffic jam. We face the same challenge. What if a drone could go straight over head, line of sight, and get there. Now, in some cases, that's life saving stuff. Bring an AED. An AED is a defibrillator. >> Right. >> That's one way that you can actually make use of a drone to get life-saving stuff there faster. Or, what happens if someone calls 911, it's a car accident, because you're supposed to do that, but it's a minor accident. Well, it's safer for us to drive code two, what we call.. You know, to drive without lights and sirens, just to go there and check it out, but it's not an emergency. It's safer for the citizens, it's safer for us. Send a drone there, you see right away that this is a fender bender, off to the side of the road, go there to check it out, but don't go lights and sirens. It's safer for them, it's safer for us. Or, "Hey, this is a fire. It's getting bigger and bigger." Not just send one engine, but send the calvary. So, another example is situational awareness. If you're on scene somewhere, if you think about it... And, you know, for those of us who are parents out there, we know what it's like to run a zone defense on your kids. You're processing a lot of things at once. Well, the act of a battalion chief or incident commander on scene of a fire or of a large incident, it's chaos. There's a lot of stuff going through that person's mind. He or she has to remain focused on their mission, but also take in a lot of information. And they're constantly looking around, they're constantly moving. What if, they had eyes in the sky. What if, instead of them having to walk around the building to get a 360 view, they had a screen here, and you have a drone that's just circling. It would provide tremendous amount of information for them. That'd be a game changer. >> Yeah, and it really came up in the keynote, too, about having someone who's trained, looking at the picture, who knows what to look for. What are the key signs they want to check out. So, again, really invaluable service. >> Yeah, yeah. >> Yeah. Well, very exciting times, and congrats for being highlighted, and keep doing the great work that you do. >> Great. Thanks for having us. >> All right. He's Michael Ralston, I'm Jeff Rick. From Menlo Fire, I'm from The Cube. Thanks for watching, we'll see you next time.

>>Hello, and welcome to the cubes presentation of the AWS startup showcase. This is season two, episode four, the ongoing series covering exciting startups from the AWS ecosystem to talk about cyber security. I'm your host, John feer. And today we're excited to join by a Mediatel Walker, CEO of Quin security and sub IER, vice president of product management of sequence security gentlemen, thanks for joining us today on this showcase. >>Thank you, John PRAs. >>So the title of this session is continuous API protection life cycle to discover, detect, and defend security. APIs are part of it. They're hardened, everyone's using them, but they're they're target for malicious behavior. This is the focus of this segment. You guys are in the leading edge of this. What are the biggest challenges for organizations right now in assessing their security risks? Because you're seeing APIs all over the place in the news, just even this week, Twitter had a whistleblower come out from the security group, talking about their security plans, misleading the FTC on the bots and some of the malicious behavior inside the API interface of Twitter. This is really a mainstream Washington post is reporting on it. New York times, all the global outlets are talking about this story. This is the risk. I mean, yeah, this is what you guys do protect against this. >>Yeah, this is absolutely top of mind for a lot of security folks today. So obviously in the media and the type of attack that that is being discussed with this whistleblower coming out is called reputation bombing. This is not new. This has been going on since I would say at least eight to 10 years where the, the bad actors are using bots or automation and ultimately using APIs on these large social media platforms, whether it's Facebook, whether it's Twitter or some other social media platform and messing with the reputation system of those large platforms. And what I mean by that is they will do fake likes, fake commenting, fake retweeting in the case of Twitter. And what that means is that things that are, should not be very popular, all of a sudden become popular. That that way they're able to influence things like elections, shopping habits, personnel. >>We, we work with similar profile companies and we see this all the time. We, we mostly work on some of the secondary platforms like dating and other sort of social media platforms around music sharing and things like video sharing. And we see this all the time. These, these bots are bad. Actors are using bots, but ultimately it's an API problem. It's not just a bot problem. And that's what we've been trying to sort of preach to the world, which is your bot problem is subset of your API security challenges that you deal as an organization. >>You know, IMIA, we talked about this in the past on a previous conversation, but this really is front and center mainstream for the whole world to see around the challenges. All companies face, every CSO, every CIO, every board member organizations out there looking at this security posture that spans not just information technology, but physical and now social engineering. You have all kinds of new payloads of malicious behavior that are being compromised through, through things like APIs. This is not just about CSO, chief information security officer. This is chief security officer issues. What's your reaction >>Very much so I think the, this is a security problem, but it's also a reputation problem. In some cases, it's a data governance problem. We work with several companies which have very restrictive data governance and data regulations or data residency regulations there to conform to those regulations. And they have to look at that. It's not just a CSO problem anymore. In case of the, the news of the day to day, this is a platform problem. This goes all the way to the, that time CTO of Twitter. And now the CEO of Twitter, who was in charge of dealing with these problems. We see as just to give you an example, we, we work, we work with a similar sort of social media platform that allows Oop based login to their platform that is using tokens. You can sort of sign in with Facebook, sign in with Twitter, sign in with Google. These are API keys that are generated and trusted by these social media platforms. When we saw that Facebook leaked about 50 million of these login credentials or API keys, this was about three, four years ago. I wrote a blog about it. We saw a huge spike in those API keys being used to log to other social media platforms. So although one social platform might be taking care of its, you know, API or what problem, if something else gets reached somewhere else, it has a cascading impact on a variety of platforms. >>You know, that's a really interesting dynamic. And if you think about just the token piece that you mentioned, that's kind of under the coverage, that's a technology challenge, but also you get in the business logic. So let's go back and, and unpack that, okay, they discontinue the tokens. Now they're being reused here. In the case of Twitter, I was talking to an executive here in Silicon valley and they said, yeah, it's a cautionary tale, for sure. Although Twitter's a unique situation, but they abstract out the business value and say, Hey, they had an M and a deal on the table. And so if someone wants to unwind that deal, all I gotta say is, Hey, there's a bot problem. And now you have essentially new kinds of risk in the business have nothing to do with some sign the technology, okay. They got a security breach, but here with Twitter, you have an, an, an M and a deal, an acquisition that's being contested because of the, the APIs. So, so if you're in business, you gotta think to yourself, what am I risking with my API? So every organization should be assessing their security risks, tied to their APIs. This is a huge awakening for them. Where should they start? And that's the, that's the core question. Okay. You got my attention risks with the API. What do I do? >>So when I talked to you in my previous interview, the start is basically knowing what to, in most cases, you see these that are hitting the wire much. Every now there is a major in cases you'll find these APIs are targeted, that are not poorly protected. They're absolutely just not protected at all, which means the security team or any sort of team that is responsible for protecting these APIs are just completely unaware of these APIs being there in the first place. And this is where we talk about the shadow it or shadow API problem. Large enterprises have teams that are geo distributed, and this problem is escalated after the pandemic even more because now you have teams that are completely distributed. They do M and a. So they acquire new companies and have no visibility into their API or security practices. And so there are a lot of driving factors why these APIs are just not protected and, and just unknown even more to the security team. So the first step has to be discover your API attack surface, and then prioritize which APIs you wanna target in terms of runtime protection. >>Yeah. I wanna dig into that API kind of attack surface area management, runtime monitoring capability in a second, but so I wanna get you in here too, because we're talking about APIs, we're talking about attacks. What does an API attack look like? >>Yeah, that's a very good question, John, there are really two different forms of attacks of APIs, one type of attack, exploits, APIs that have known vulnerabilities or some form of vulnerabilities. For instance, APIs that may use a weak form of authentication or are really built with no authentication at all, or have some sort of vulnerability that makes them very good targets for an attacker to target. And the second form of attack is a more subtle one. It's called business logic abuse. It's, it's utilizing APIs in completely legitimate manner manners, but exploiting those APIs to exfiltrate information or key sensitive information that was probably not thought through by the developer or the designers or those APIs. And really when we do API protection, we really need to be able to handle both of those scenarios, protect against abuse of APIs, such as broken authentication, or broken object level authorization APIs with that problem, as well as protecting APIs from business logic abuse. And that's really how we, you know, differentiate against other vendors in this >>Market. So just what are the, those key differentiated ways to identify the, in the malicious intents with APIs? Can you, can you just summarize that real quick, the three ways? >>Sure. Yeah, absolutely. There are three key ways that we differentiate against our competition. One is in the, we have built out a, in the ability to actually detect such traffic. We have built out a very sophisticated threat intelligence network built over the entire lifetime of the company where we have very well curated information about malicious infrastructures, malicious operators around the world, including not just it address ranges, but also which infrastructures do they operate on and stuff like that, which actually helps a lot in, in many environments in especially B2C environments, that alone accounts for a lot of efficacy for us in detecting our weed out bad traffic. The second aspect is in analyzing the request that are coming in the API traffic that is coming in and from the request itself, being able to tell if there is credential abuse going on or credential stuffing going on or known patterns that the traffic is exhibiting, that looks like it is clearly trying to attack the attack, the APM. >>And the third one is, is really more sophisticated as they go farther and farther. It gets more sophisticated where sequence actually has a lot of machine learning models built in which actually profile the traffic that is coming in and separate. So the legitimate or learns the legitimate traffic from the anomalous or suspicious traffic. So as the traffic, as the API requests are coming in, it automatically can tell that this traffic does not look like legitimate traffic does not look like the traffic that this API typically gets and automatically uses that to figure out, okay, where is this traffic coming from? And automatically takes action to prevent that attack? >>You know, it's interesting APIs have been part of the goodness of cloud and cloud scale. And it reminds me of the old Andy Grove quote, founder of, in one of the founders of Intel, you know, let chaos, let, let the chaos happen, then reign it in it's APIs. You know, a lot of people have been creating them and you've got a lot of different stakeholders involved in creating them. And so now securing them and now manage them. So a lot of creation now you're starting to secure them and now you gotta manage 'em. This all is now big focus. As you pointed out, what are some of the dynamics that customers who have to deal with on the product side and, and organization, let, let chaos rain, and then rain in the chaos, as, as the saying goes, what, what do companies do? >>Yeah. Typically companies start off with like, like a mayor talked about earlier. Discovery is really the key thing to start with, like figuring out what your API attack surfaces and really getting your arms around that problem. And typically we are finding customers start that off from the security organization, the CSO organization to really go after that problem. And in some cases, in some customers, we even find like dedicated centers of excellence that are created for API security, which go after that problem to be able to get their arms around the whole API attack surface and the API protection problem statement. So that's where usually that problem starts to get addressed. >>I mean, organizations and your customers have to stop the attacks. A lot of different techniques, you know, run time. You mentioned that earlier, the surface area monitoring, what's the choice. What's the, where are, where are, where is everybody? Is everyone in the, in the boiling water, like the frog and boiling water or they do, they know it's happening? Like what did they do? What's their opportunity to get in >>Position? Yeah. So I, I think let's take a step back a little bit, right? What has happened is if you draw the cloud security market, if you will, right. Which is the journey to the cloud, the security of these applications or APIs at a container level, in terms of vulnerabilities and, and other things that market grew with the journey to the cloud, pretty much locked in lockstep. What has happened in the API side is the API space has kind of lacked behind the growth and explosion in the API space. So what that means is APIs are getting published way faster than the security teams are able to sort of control and secure them. APIs are getting published in environments that the security completely unaware of. We talked about in the past about the parameter, the parameter, as we know, it doesn't exist anymore. It used to be the case that you hit a CDN, you terminate your SSL, you stop your layer three and four DDoS. >>And then you go into the application and do the business logic. That parameter is just gone because it's now could be living in multi-cloud environment. It could be living in the on-prem environment, which is PubNet is friendly. And so security teams that are used to protecting apps, using a perimeter defense plus changes, it's gone. You need to figure out where your perimeter is. And therefore we sort of recommend an approach, which is have a uniform view across all your APIs, wherever they could be distributed and have a single point of control across those with a solution like sequence. And there are others also in this space, which is giving you that uniform view, which is first giving you that, you know, outside and looking view of what APIs to protect. And then let's, you sort of take the journey of securing the API life cycle. >>So I would say that every company now hear me out on this indulges me for a second. Every company in the world will be non perimeter based, except for maybe 5% because of maybe unique reason, proprietary lockdown, information, whatever. But for most, most companies, everyone will be in the cloud or some cloud native, non perimeter based security posture. So the question is, how does your platform fit into that trajectory? And specifically, why are you guys in the position in your mind to help customers solve this API problem? Because again, APIs have been the greatest thing about the cloud, right? Yeah. So the goodness is there because of APS. Now you gotta reign it in reign in the chaos. Yeah. What, what about your platform share? What is it, why is it win? Why should customers care about this? >>Absolutely. So if you think about it, you're right, the parameter doesn't exist. People have APIs deployed in multiple environments, multicloud hybrid, you name it sequence is uniquely positioned in a way that we can work with your environment. No matter what that environment is. We're the only player in this space that can protect your APIs purely as a SA solution or purely as an on-prem deployment. And that could be a SaaS platform. It doesn't need to be RackN, but we also support that and we could be a hybrid deployment. We have some deployments which are on your prem and the rest of this solution is in our SA. If you think about it, customers have secured their APIs with sequence with 15 minutes, you know, going live from zero to life and getting that protection instantaneously. We have customers that are processing a billion API calls per day, across variety of different cloud environments in sort of six different brands. And so that scale, that flexibility of where we can plug into your infrastructure or be completely off of your infrastructure is something unique to sequence that we offer that nobody else is offering >>Today. Okay. So I'll be, I'll be a naysayer. Yeah, look, it, we are perfectly coded APIs. We are the best in the business. We're locked down. Our APIs are as tight as a drum. Why do I need you? >>So that goes back to who's answer. Of course, >>Everyone's say that that's, that's great, but that's my argument. >>There are two types of API attacks. One is a tactic problem, which is exploiting a vulnerability in an API, right? So what you're saying is my APIs are secure. It does not have any vulnerability I've taken care of all vulnerabilities. The second type of attack that targets APIs is the business logic. Use this stuff in the news this week, which is the whistleblower problem, which is, if you think APIs that Twitter is publishing for users are perfectly secure. They are taking care of all the vulnerabilities and patching them when they find new ones. But it's the business logic of, you know, REWE liking or commenting that the bots are targeting, which they have no against. Right. And then none of the other social networks too. Yeah. So there are many examples. Uber wrote a program to impersonate users in different geo locations to find lifts, pricing, and driver information and passenger information, completely legitimate use of APIs for illegitimate, illegitimate purpose using bots. So you don't need bots by the way, don't, don't make this about bot versus not. Yeah. You can use APIs sort of for the, the purpose that they're not designed for sort of exploiting their business logic, either using a human interacting, a human farm, interacting with those APIs or a bot form targeting those APIs, I think. But that's the problem when you have, even when you've secured all your problem, all your APIs, you still have to worry about these of challenges. >>I think that's the big one. I think the business logic one, certainly the Twitter highlights that the Uber example is a good one. That is basically almost the, the backlash of having a simplistic API, which people design to. Right. Yeah. You know, as you point out, Twitter is very simple API, hardened, very strong security, but they're using it to maliciously manipulate what's inside. So in a way that perimeter's dead too. Right. So how do you stop that business logic? What's the, what's the solution what's the customer do about that? Because their goal is to create simple, scalable APIs. >>Yeah. I'll, I'll give you a little bit, and then I think Subaru should maybe go into a little bit of the depth of the problem, but what I think that the answer lies in what Subaru spoke earlier, which is our ML. AI is, is good at profiling plus split between the API users, are these legitimate users, humans versus bots. That's the first split we do. The split second split we do is even when these, these are classified users as bots, we will say there are some good bots that are necessary for the business and bad bots. So we are able to split this across three types of users, legitimate humans, good bots and bad bots. And just to give you an example of good bots is there are in the financial work, there are aggregators that are scraping your data and aggregating for end users to consume, right? Your, your, and other type of financial aggregators FinTech companies like MX. These are good bots and you wanna allow them to, you know, use your APIs, whereas you wanna stop the bad bots from using your APIs super, if you wanna add so, >>So good bots versus bad bots, that's the focus. Go ahead. Weigh in, weigh in on your thought on this >>Really breaks down into three key areas that we talk about here, sequence, right? One is you start by discovering all your APIs. How many APIs do I have in my environment that ly immediately highlight and say, Hey, you have, you know, 10,000 APIs. And that usually is an eye opener to many customers where they go, wow. I thought we had a 10th of that number. That usually is an eyeopener for them to, to at least know where they're at. The second thing is to tell them detection information. So discover, detect, and defend detect will tell them, Hey, your APIs are getting traffic from. So and so it addresses so and so infrastructure. So and so countries and so on that usually is another eye opener for them. They then get to see where their API traffic is coming from. Let's say, if you are a, if you're running a pizza delivery service out of California and your traffic is coming from Eastern Europe to go, wait a minute, nobody's trying, I'm not, I'm not, I don't deliver pizzas in Eastern Europe. Why am I getting traffic from that part of the world? So that sort of traffic immediately comes up and it will tell you that it is hitting your unauthenticated API. It is hitting your API. That has, that is vulnerable to a broken object level, that authorization, vulnerable be and so on. >>Yeah, I think, and >>Then comes the different aspect. Yeah. The different aspect is where you can take action and say, I wanna block certain types of traffic, or I wanna rate limit certain types of traffic. If, if you're seeing spikes there or you could maybe insert header so that it passes on to the end application and the application team can use that bit to essentially take a, a conscious response. And so, so the platform is very flexible in allowing them to take an action that suits their needs. >>Yeah. And I think this is the big trend. This is why I like what you guys are doing. One APIs we're built for the goodness of cloud. They're now the plumbing, you know, anytime you see plumbing involved, connection points, you know, that's pretty important. People are building it out and it has made the cloud what it is. Now, you got a security challenge. You gotta add more intelligence, more smarts to it. This is where I think platform versus tools matter. Can you guys just quickly share your thoughts on that? Cuz a lot of your customers and, and future customers have dealt with the sprawls of all these different tools. Right? I got a tool for this. I got a tool for that, but people are gravitating towards platforms, but how many platforms can a customer have? So again, this brings up the point point around how you guys are engaging with customers. Can you share your thoughts on tooling platforms? Your customers are constantly inundated with the same tsunami. Isn't new thing. Why, what, how should they look at this? >>Yeah, I mean, we don't wanna be, we don't wanna add to that alert fatigue problem that affects much of the cybersecurity industry by generating a whole bunch of alerts and so on. So what we do is we actually integrate very well with S IEM systems or so systems and allow customers to integrate the information that we are detecting or mitigating and feed them onto enterprise systems like a Splunk or a Datadog where they may have sophisticated processes built in to monitor, you know, spikes in anomalous traffic or actions that are taken by sequence. And that can be their dashboard where a whole bunch of alerting and reporting actually happens. So we play in the security ecosystem very well by integrating with other products and integrate very tightly with them, right outta the box. >>Okay. Mia, this is a wrap up now for the showcase. Really appreciate you guys sharing your awesome technology and very relevant product for your customers and where we are right now in this we call Supercloud or now multi-cloud or hybrid world of cloud. Share a, a little bit about the company, how people can get involved in your solution, how they can consume it and things they should know about, about sequence security. >>Yeah, we've been on this journey, an exciting journey it's been for, for about eight years. We have very large fortune 100 global 500 customers that use our platform on a daily basis. We have some amazing logos, both in Europe and, and, and in us customers are, this is basically not the shelf product customers not only use it, but depend on sequence. Several retailers. We are sitting in front of them handling, you know, black Friday, cyber, Monday, Christmas shopping, or any sort of holiday seasonality shopping. And we have handled that the journey starts by, by just simply looking at your API attack surface, just to a discover call with sequence, figure out where your APIs are posted work with you to prioritize how to protect them in a sort of a particular order and take the whole life cycle with sequence. This is, this is an exciting phase exciting sort of stage in the company's life. We just raised a very sort of large CDC round of funding in December from Menlo ventures. And we are excited to see, you know, what's next in, in, in the next, you know, 12 to 18 months. It certainly is the, you know, one of the top two or three items on the CSOs, you know, budget list for next year. So we are extremely busy, but we are looking for, for what the next 12 to 18 months are, are in store for us. >>Well, congratulations to all the success. So will you run the roadmap? You know, APIs are the plumbing. If you will, you know, they connection points, you know, you want to kind of keep 'em simple, as they say, keep the pipes dumb and make the intelligence around it. You seem to see more and more intelligence coming around, not just securing it, but does, where does this go in your mind? Where, where do we go beyond once we secure everything and manage it properly, APRs, aren't going away, they're only gonna get better and smarter. Where's the intelligence coming share a little bit. >>Absolutely. Yeah. I mean, there's not a dull moment in the space. As digital transformation happens to most enterprise systems, many applications are getting transformed. We are seeing an absolute explosion in the volume of APIs and the types of APIs as well. So the applications that were predominantly limited to data centers sort of deployments are now splintered across multiple different cloud environments are completely microservices based APIs, deep inside a Kubernetes cluster, for instance, and so on. So very exciting stuff in terms of proliferation of volume of APIs, as well as types of APIs, there's nature of APIs. And we are building very sophisticated machine learning models that can analyze traffic patterns of such APIs and automatically tell legitimate behavior from anomalous or suspicious behavior and so on. So very exciting sort of breadth of capabilities that we are looking at. >>Okay. I mean, yeah. I'll give you the final words since you're the CEO for the CSOs out there, the chief information security officers and the chief security officers, what do you want to tell them? If you could give them a quick shout out? What would you say to them? >>My shout out is just do an assessment with sequence. I think this is a repeating thing here, but really get to know your APIs first, before you decide what and where to protect them. That's the one simple thing I can mention for thes >>Am. Thank you so much for, for joining me today. Really appreciate it. >>Thank you. >>Thank you. Okay. That is the end of this segment of the eight of his startup showcase. Season two, episode four, I'm John for your host and we're here with sequin security. Thanks for watching.

>>Okay, welcome back everyone. It's the Cube's coverage of AWS, Amazon re Mars machine learning, automation, robotics, and space. I'm John Prairie host of the cube. We're here for two days, live coverage, and we're getting all the stories and story here is our entrepreneur hot startup making things happen, making more connectivity, go Diana GenZ, founder and CEO of El speed, El or L speed. Welcome to the cube. >>Well, speed represents how fast we can transfer the data. And so an L is a upper electro sort of magnetic phenomena that lives above thunderstorms and it moves very, very fast. It looks like it moves faster than the speed of light. So we play on the speed of elves. >>Well, let's get into it cuz I love the love, the approach you take. And this is consistent with the theme of the show, a lot of industrial change and innovations sometimes recycling old technology to help invent new ones, integrations platforms coming together, little bit more, open, less proprietary. You're in an area where you're gonna solve the bandwidth problem with unique new ways. Yeah. Pick them in to explain what you're working on. What's the project and what's the ambition. >>Yes, exactly. I think we fit really well in that concept of taking something that has a lot of heritage reliability. We are very familiar with this technology. We've used it for more than 50 years. We like it. Um, and the problem with that technology has been that it's very expensive. It's not affordable, not affordable to people like you and me such that that amount of bandwidth can actually be available to us. So what we have done is really focused on advanced materials and manufacturing techniques to make this new technology significantly more affordable. So like, >>And technology is >>So we make power amplifiers that are based on TTS. So TTS are in amplifiers that actually like are currently being operated on the Voyager way back, long time ago. Um, it's a very old technology and we have taken it and really revamped it and looked at it differently. And how can we make it to technology over the future? Um, so we specifically operate in millimeter wave frequencies, um, and at millimeter wave frequencies, we can provide significantly more bandwidth than what you can do at lower frequency. >>Okay. So the folks that aren't wireless say, what does millimeter wave mean? >>Millimeter wave is the amount of frequency that you have sort of in space. So the wavelength of that frequency is a millimeter wave range. So sort of the size of your nail or something like that, thickness of your nail. And so because of that, when you start operating at those frequencies, you can send significantly more information, right? The frequencies that we use today are sort of on a order of, you know, centimeters, you know, 10 centimeters, something like that. So about like this. And so, and that doesn't allow you to send as much data as you can at these higher frequencies. >>So more bandwidth >>Significantly more >>Than so the problem you're solving is taking something that's actually high bandwidth and has long ranges, >>Correct. >>Should bring it to the common price points to be deployed. >>That's >>Right, >>Correct. That's right. So this particular technology allows you to generate enough power so you can send the data over long distances. So if you are on the ground, you can create 40 plus kilometer links or you can send that information straight to space all the way to the geo stations, right? So you actually have enough power, um, to provide that amount of bandwidth. So the, the challenge has been is affordability, which is what we have done is focus specifically is how do you reduce that cost? >>Well, I love anything that gets me more bandwidth, more, no one ever went out of business for providing more bandwidth. Well maybe the app <laugh>, um, than monopolies. Um, talk about how you got here. What was the origination story? Um, you work at slack, not confused with slack as in the messaging application, the Stanford linear accelerator in technically Menlo park. I think >>It is in Menlo park, in Menlo >>Park up Palo. Okay. >>So, so it's right on sand hill road, right? Right. >>Sand hill road next, all the VCs that drive past it all the time, what's it like there? And how was it like, were you guys working on this at slack? Was it like something that you had a lot of interest in? Were you scratching this itch so to >>Speak? So this particular technology has many applications. Um, and so particle accelerators are one of the applications of this technology. So, and, um, right. So some of the users for particle accelerators are of course facilities like slack, where we do some amazing science. Um, but you can take that same particle accelerator. Right. And we use it for cancer treatment. So one technology doesn't just apply to sort of one solution, you know, I'm using in my company for communications, right. And this is how it related to the work that I was doing at slack. So at slack, my focus was on materials and manufacturing of these particular devices. And I really focused on what is fundamental limitation of how much power you can really pack into the size of the device. If you can really shrink the size of the device, you know, what can you do? And that applies whether it's particle accelerators or these millimeter wave amplifiers that I'm working on today. Um, and yes, slack <laugh> without the K yes. Is, is a, uh, particle accelerated laboratory that's operated, uh, by Stanford for the department >>And all the geeks know about it's it's it's folklore certainly in Silicon valley. Yes. And I didn't even know they had the hidden tunnels behind in the >>Mouth. They do, they >>Too kind of >>Stuff up there. I think they're back to having tours. So that's, it's always worth visiting. >>Let me get a little kind of camera crew in there. All right. Let's talk about back to the, back to your opportunity there. Um, how many people do you have working for you? What's the funding status? Where are you in your journey? >>So I hired my first person last June, uh, and we're at 14 people today. Um, we have just did the first close of our seed round. So we had our Pree round last year and we are sort of in the middle of our seed round right now. Um, and the plan is to get to series a sometime next year, depending on sort of performance >>And what we are already. So you're product building mode right now. >>We actually are in product building mode. We have, uh, product delivery scheduled in the next few months, >>You know? So you have customers ordering amplifiers. >>Yes. We actually have customer orders. >>What's the price point you're getting at what's cause that I could see people lining up in this >>Well. So because of our focus on manufacturing, we are also attaching customer interest to volume. So it depends on whether you're buying 10 of them or a thousand of them. So the price point varies <laugh> >>Course. >>So >>Buying bulk, Amazon <laugh> yes. You have a lot of outposts out there potentially. And you got the telecoms edge booming. Yes. Um, they got full blown data centers now at these absolutely. It used to be just, you know, monopoles or, you know, trust towers. >>Well, so this is one of the advantages of having a wireless technology. If you're trying to put a, a location that's remote or even semi remote for you to be able to put a fiber link, that spot is years an enormous amount of investment. So you can get the same amount of data movement if you switch to technology like ours mm-hmm <affirmative> um, and so, yeah, that's a, it's a great application for, um, for millimeter >>Weight. So things are going good. You got orders, you've got product being built. You're gonna get through your seat to soon to have series a >>Next year. Yeah. And so the next step for us is building a factory, uh, which is we are sort of doing a, a planned low rate, initial production, uh, starting probably at the end of this year, trying to scale to sort of tens of units per week. Um, and then after that, trying to get the factory, they'll be able to do sort of 10 times that, uh, but we are gauging that with a customer interest so that we are matching the production to the >>What's what's your current, uh, verticals that are most interested now. >>So our primary application space is communications and back holes specifically. Uh, I think we're very well positioned to enter that market. Um, it sort of the next focus is going to space. So actually being on the space vehicles and, but to do that, we have to go for the space qualifications. So we have a team focusing on how to space >>Qualified. It's all certifications, all kinds of security checks. >>Correct. So that will take a little bit of time. I think the earliest we'll get there is next year. Yeah. Um, and so, but there is a lot of interest and support from sort of current companies, the new space companies to sort of help move technology faster. Yeah. Otherwise you can't get access to something that's new, right. Space qualification >>Takes space. I'm space force, everyone I talk to here and all over the industry on NASA to space force, they want to move faster. They don't wanna be perceived as that old slow antiquated systems. Yes. They want to be cooler and faster, but secure. >>Absolutely >>Security is a huge deal right now. >>And that's one of the advantages that we provide. Right. We are relying on a heritage technology and also because it's millimeter wave, it provides you a certain amount of security, right. Because it's much, much harder to intercept than anything else. Right. >>Well, exciting news. Congratulations. Thank you. Um, if you wanna take a minute to go plug for your startup, you're gonna hire, um, what's status. >>Um, you mean for my new employees? >>Yeah. What are you looking for customers? What kind of customers you looking hire? >>Absolutely >>Put commercial out there from the company. >>Okay. So when it comes to customers, we are looking for people that are willing to move really fast, as fast as we are moving and willing to actually consider something like millimeter wave for their backhoe applications. So starting at K band and all the way to WB frequencies for those that are my customers, they will know exactly what I'm talking about. Yes. And so, and we are bringing a technology that's reliable and bringing their cost down by a factor of 10, meaning something that was half a million before is going to be significantly cheaper today. And you could afford to actually buy >>Thousand faster, cheaper. >>Exactly. That's that's, that's the thing. So when it comes to employees, so we are growing really fast. Um, and we have a very fun team that cares about people. So for example, we spend one hour every week to actually talk about growth and personal development as sort of part of our culture. It's something we're committed to is that you have to love what you do. And so when you come to work, you better be having fun. Yeah. And so we are looking for people that are very techy, but also sort of are human centered and are willing to make the world a better place, which is what sort of El is all about is, you know, making technology useful for people, right. When it comes to communications, right. Making me a, you connected or us connected to the rest of the world as we sit here. >>Yeah. And more empathetic and connected, like just connected emotionally >>Connected in Mo both ways. >>Yeah. Both ways. Exactly physical and emotional and more bandwidth, more connections. Right. >>And you can have that interaction to be significantly higher quality. Right. If you can actually recreate that environment with my >>Day, I work for you. Sounds like a great place. No, <laugh> no. I'll stay with Mike Day job. Thanks Dan. Thanks for coming on the queue. Appreciate >>It. Of course. Thank you for hosting me. >>Okay. We're here at re Mars. All the hot startups are here. Technologists. It's kind of a geeky nerd show and it's really cool because it's about industrial innovation and about space and all the cool things we love at the cube. I'm John for your host. Thanks for watching.

>>Okay, welcome back everyone to San Francisco, live coverage here with the cube 80, be summit 2022. We're back in person. I'm John furry host of the cube. We'll be at the 80 us summit in New York city. This summer, check us out then. But right now, two days in San Francisco, getting all the coverage what's going on in the cloud, we got a cube, alumni and friend of the cube. I dos car CEO, investor, a Sierra, and also an investor and a bunch of startups, angel investor. I'm gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see. See you, sir. Chris pump. Cool. How are you? >>Good. How are you? >>So congratulations on all your investments. Uh, you've made a lot of great successes over the past couple years and your company raising some good cash as Sarah. So give us the update. How much cash have you guys raised? What's the status of the company product what's going on? >>First of all, thank you for having me. We're back to be business with you never while after. Great to see you. Um, so I, as the company started around four years back, I invested with a few of the investors and now I'm the CEO. Um, we have raised close to a hundred million there. The investors are people like nor west Menlo, true ventures, coast, lo ventures, Ram Shera, and all those people all well known guys, Andy Beel chime Paul Mo Mayard web. So a whole bunch of operating people and, uh, Silicon valley vs are involved >>And has it gone? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISRA is going after is what I call the applying AI for customer service. It operations, it help desk, uh, the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and service now to take it the next stage? Well >>Of having you on the cube, Dave and I, David ante as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a, you're like a guest analyst. <laugh> >>You know who done? You >>Get the comment, this fun to talk to you though, you >>Get the commentary, you you're your finger on the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud scale. You predicted that we talked about in the cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing Docker just raised a hundred million on a 2 billion valuation back from the debt after they pivoted from an enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control, plane emerging, AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded, observability there's 10 million observability companies. Data is the key. What's your angle on this? What's your take? Yeah, >>No, look, I think I'll give you the view that I see right from my side. Obviously data is very clear. So the things that system of recorded you and me talked about the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud native, it'll be called AI. Native NATO is a new buzzword and using the AI for customer service it operations. We talk about observability. I call it AI ops, applying ops for good old it operations management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events incidents. So I see a lot of work clicking for AIOps and AI service desk. What used to be help desk with ServiceNow BMC <inaudible> you see a new, a layer emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflows, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with AI workflows. So you'll see AI going off >>Is RPA a company is AI, is RPA a feed of something bigger? Or can someone have a company on RPA UI pass? One will be at their event this summer? Um, is it a product company? I mean, I mean, RPA is almost, should be embedded in everything. It's a feature. >>It is very good point. Very, very good thing. So one is, it's the category for sure. Like it's a category, it's an area where RPA maybe change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company also, but that automation should be ed in every area. Yeah. Like we call cloud NATO and AI NATO. It'll become automation. NATO. Yeah. And that's your thinking? So >>It's most interesting me. I think about the, what you're talking about. What's coming to my is I'm kinda having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it was middleware. It sat between two things and then the middle and it was software abstraction. Now you have all kinds of workflows abstractions everywhere. So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed. Are they integrated? I mean, these are the challenges. This is crazy. What's the, >>So don't put the database became called polyglot databases. Yeah. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area like you you're talking about. It should be part of service. Now it should be part of ISRA, like every company, every Salesforce. So that's why you see it. MuleSoft and Salesforce buying RPA companies. So you'll see all the SaaS companies, cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also have an automation as a layer <inaudible> inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind us, you got the expo hall, got, um, we're back to vents, but you got, you know, AMD, Clum, Ove, uh, Dynatrace data, dog, innovative all the companies out here that we know. And we interview them all. They're trying to be suppliers to this growing enterprise market. Right. Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Deibel later today. He's a former NEA guy and we always talk to Jerry, Jen. We know all the, the VCs. What does the startups look like? What does the, to of the, in your mind, cuz you, I know you invest the entrepreneurial founder situation. Cloud's bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's code. Yes. Basically. Data's everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to two things that I'm seeing out there. Remember days of Amazon created the startups 15 years back, everybody built on Amazon now Azure and GCP. The next layer would be is people don't just build on Amazon. They're going build it on top of snowflake. Companies are snowflake becomes the data platform, right? People will build on snowflake. Right? So I, my old boss Blankman trying to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer. Right? So I think that's the next level of <inaudible> trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis a couple months ago called castles in the cloud where your moat is, what you do in the cloud. Not necessarily in the, in the IP. Um, Dave LAN and I had last reinvent, coined the term super cloud. Right's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldmans Sachs is doing. You're starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage. And guys like Charles Fitzgerald out there who we like was kind of shitting on us saying, Hey, you guys terrible, they didn't get him. Like, yeah, I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. He's cool. Um, but snowflake is on Amazon. Yes. Now they say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist and, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. >>It is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to everything on Amazon where possible whatever is, I cannot build, I'll make the pass layer. Remember the middle layer pass will be snowflake so I can build it on snowflake. I can use them for data layer. If I really need do size, I'll build it on force.com Salesforce. Yeah. Right. So I think that's where you'll. >>So basically the, the, if you're an entrepreneur, the, the north star in terms of the, the outcome is be a super cloud. It is, That's the application on another big CapEx ride, the CapEx of AWS or >>Cloud, and that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. >>Yeah. Yeah. How are, how is Amazon and the clouds dealing with these big whales, the snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think they had Redshift. Amazon has got Redshift, um, but snowflakes, a big customer and the they're probably paying AWS, I think bills too. So >>John video it's like whole Netflix is, and Amazon prime Netflix runs on Amazon, but Amazon has Amazon prime that co-optation will be there. So Amazon will have Redshift, but Amazon is also partnering with, uh, snowflake to have native snowflake data warehouses, a data layer. So I think depending on the applic use case, you have to use each of the above. I think snowflake is here for a long term. So if I'm building an application, I want to use snowflake then, right. Think from stats. >>Well, I think that it comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, You know, foreclose your value. That's right. With some sort of internal hack. But I think, I think the general question that I have is that I, I think it's okay to have a super cloud like that because the rising tide is still happening. Some point, when does the rising tide stop >>And >>The people shopping up their knives, it gets more competitive or is it just an infinite growth cycle? >>I think it's growth. You call it cloud scale. You invented the word cloud scale. So I think, look, cloud will continually agree, increase. I think there's, as long as there are more movement from on, uh, on-prem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations, it helpless, even the customer service service now and, uh, ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go >>Made. I wanna get your thoughts for the folks watching that are, uh, enterprise buyers or practitioners, not suppliers to the market, feel free to text me or DMing next. Question's really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products, cuz you know, the big enterprises now and you know, small, medium, large, and large enterprise, they're all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between startup selling to, or growing startup selling to an enterprise? Um, have you seen changes there? I mean I'm seeing some stuff, but why don't we get your thoughts on that? What, no, it >>Is. If I remember going back to our 2007 or eight, when I used to talk to you back then and Amazon started very small, right? We an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or one person today. Most companies are already spending 20, 30% with startups. Like if I look at a CIO, a line of business it's gone. Yeah. Can it go more? I think it can double in the next four, five years. Yeah. Spending on the startups. >>Yeah. And check our, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want get your reaction because I, I reference the URL cause it's like, there's like a bunch of companies we've been promoting because the solutions that startups have actually are new stuff. Yes. It's bending, it's shifting left for security or using data differently or are um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there. Um, and goes back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona. You mentioned a AIOps we've been seeing AOPs IOPS blue booming and that's creating a new developer paradigm that's right. Which we call and coin data as code data as code is like infrastructure as code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this to engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same things? Do you agree? Um, do you disagree or can you share >>Yourself? I, no, I have a lot of thoughts that first is I see the AOP solutions in the future should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone through it. Like I spend a lot of time with data dog, Cisco app dynamic, right? Dynatrace, all this solution will go future towards predict to proactive solution with AOPs. But what you bring of a very good point on the data side, I think like we have a Amazon marketplace and for startup, there should be data exchange where you want to create for AOPs and AI service desk customers that give the data, share the data because we thought the data algorithms are useless. I can come the best algorithm, but I gotta train them, modify them, tweak them, make >>Them >>Better, make them better. Yeah. And I think there are a whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that data is very important. >>You've always been on, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to big data days back in 2009, you know, >>Look at, look how much data bricks has grown. >>It is double, the >>Key cloud air kinda went private, so good stuff. But what are you working on right now? Give a, give a, um, plug for what you're working on. You'll still invest strength. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. >>So >>Right. ISRA is my number one baby right now. So I'm looking at that growing customers and my customers. Some of them you like it's zoom auto desk, MacAfee, uh, grantor. So all the top customers, um, mainly for it help desk customer service ops. Those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What what's their need? What category is it? >>I think the look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on, predict ours one area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value. Prop. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service. >>Great stuff, man. Great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the key. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of Aish summit 2022. And we're gonna be at a summit in San, uh, in New York in the summer. So look for that on this calendar, of course, go to Aish startups.com and mention that it's ay for all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break.

More bottoms up and have more technical early adopters. And generally speaking, they're free to use. They're free to try. They're very commonly community source or open source companies where you have a large technical community that's supporting them. So there's a, there's kind of a new normal now I think in great enterprise software and it starts with great technical founders with great products and great bottoms of emotions. And I think there's no better place to, uh, service those people than in the cloud and uh, in, in your community. >>Well, first of all, congratulations, and by the way, you got a great pedigree and great background, super smart, but Myer of your work and your, and, and your founding, but let's face it. Enterprise is hot because digital transformation is all companies there's no, I mean, consumer is enterprise now, everything is what was once a niche. No, I won't say niche category, but you know, not for the faint of heart, you know, investors, >>You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. <laugh> but remember, like right now there's also a tech and VC conference in Miami <laugh> and it's covering cryptocurrencies and FCS and web three. So I think beauty is definitely in the eye of the beholder <laugh> but no, I, I will tell you, >>Ts is one big enterprise, cuz you gotta have imutability you got performance issues. You have, I IOPS issues. >>Well, and, and I think all of us here that are, uh, may maybe students of history and have been involved in open source in the cloud would say that we're, you know, much of what we're doing is, uh, the predecessors of the web web three movement. And many of us I think are contributors to the web three >>Movement. The hype is definitely one web three. Yeah. >>But, >>But you know, >>For sure. Yeah, no, but now you're taking us further east of Miami. So, uh, you know, look, I think, I, I think, um, what is unquestioned with the case now? And maybe it's, it's more obvious the more time you spend in this world is this is the fastest growing part of enterprise software. And if you include cloud infrastructure and cloud infrastructure spend, you know, it is by many measures over, uh, $500 billion in growing, you know, 20 to 30% a year. So it it's a, it's a just incredibly fast, well, >>Let's get, let's get into some of the cultural and the, the shifts that are happening, cuz again, you, you have the luxury of being in enterprise when it was hard, it's getting easier and more cooler. I get it and more relevant <laugh> but there's also the hype of like the web three, for instance, but you know, for, uh, um, um, the CEO snowflake, okay. Has wrote a book and Dave Valenti and I were talking about it and uh, Frank Luman has says, there's no playbooks. We always ask the CEOs, what's your playbook. And he's like, there's no playbook, situational awareness, always Trump's playbooks. So in the enterprise playbook, oh, higher, a direct sales force and SAS kind of crushed that now SAS is being redefined, right. So what is SAS is snowflake assassin or is that a platform? So again, new unit economics are emerging, whole new situation, you got web three. So to me there's a cultural shift, the young entrepreneurs, the, uh, user experience, they look at Facebook and say, ah, you know, they own all my data and you know, we know that that cliche, um, they, you know, the product. So as this next gen, the gen Z and the millennials come in and our customers and the founders, they're looking at things a little bit differently and the tech better. >>Yeah. I mean, I mean, I think we can, we can see a lot of common across all successful startups and the overall adoption of technology. Um, and, and I would tell you, this is all one big giant revolution. I call it the user driven revolution. Right. It's the rise of the user. Yeah. And you might say product like growth is currently the hottest trend in enterprise software. It's actually like growth, right. They're one and the same. So sometimes people think the product, uh, is what is driving growth. >>You just pull the product >>Through. Exactly, exactly. And so that's that I, that I think is really this revolution that you see, and, and it does extend into things like cryptocurrencies and web three and, you know, sort of like the control that is taken back by the user. Um, but you know, many would say that, that the origins of this, but maybe started with open source where users were contributors, you know, contributors were users and looking back decades and seeing how it, how it fast forward to today. I think that's really the trend that we're all writing. It's enabling these end users. And these end users in our world are developers, data engineers, cybersecurity practitioners, right. They're really the, and they're really the, the beneficiaries and the most, you know, kind of valued people in >>This. I wanna come back to the data engineers in a second, but I wanna make a comment and get your reaction to, I have a, I'm a gen Xer technically. So for not a boomer, but I have some boomer friends who are a little bit older than me who have, you know, experienced the sixties. And I have what been saying on the cube for probably about eight years now that we are gonna hit digital hippie revolution, meaning a rebellion against in the sixties was rebellion against the fifties and the man and, you know, summer of love. That was a cultural differentiation from the other one other group, the predecessors. So we're kind of having that digital moment now where it's like, Hey boomers, Hey people, we're not gonna do that anymore. You, we hate how you organize shit. >>Right. But isn't this just technology. I mean, isn't it, isn't it like there used to be the old adage, like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would get fired if you bought IBM. And I mean, it's just like the, the, I think, I think >>During the mainframe days, those renegades were breaking into Stanford, starting the home group. So what I'm trying to get at is that, do you see the young cultural revolution also, culturally, just, this is my identity NFTs to me speak volumes about my, I wanna associate with NFTs, not single sign on. Well, >>Absolutely. And, and I think like, I think you're hitting on something, which is like this convergence of, of, you know, societal it'll trends with technology trends and how that manifests in our world is yes. I think like there is unquestionably almost a religion yeah. Around the way in which a product is built. Right. And we can use open source, one example of that religion. Some people will say, look, I'll just never try a product in the cloud if it's not open source. Yeah. I think cloud, native's another example of that, right? It's either it's, you know, it either is cloud native or it's not. And I think a lot of people will look at a product and say, look, you know, you were not designed in the cloud era. Therefore I just won't try you. And sometimes, um, like it or not, it's a religious decision, right? Yeah. It's so it's something that people just believe to be true almost without, uh, necessarily caring >>About data. Data drives all decision making. Let me ask you this next question. As a VC. Now you look at pitch, well, you've been a VC for many years, but you also have the founder entrepreneurial mindset, but you can get empathize with the founders. You know, hustle is a big part of the, that first founder check, right? You gotta convince someone to part with their ch their money and the first money in which you do a lot of it's about believing in the person. So faking it till you make it is hard. Now you, the data's there, you either have it cloud native, you either have the adaption or traction. So honesty is a big part of that pitch. You can't fake it. >>Oh, AB absolutely. You know, there used to be this concept of like the persona of an entrepreneur. Right. And the persona of the entrepreneur would be, you know, so somebody who was a great salesperson or somebody who tell a great story, and I still think that that's important, right. It still is a human need for people to believe in narratives and stories. Yeah. But having said that you're right. The proof is in the pudding, right. At some point you click download and you try the product and it does what it says it gonna it's gonna do, or it doesn't, or it either stands up to the load test or it doesn't. And so I, I feel like in the new economy that we live in, really, it's a shift from maybe the storytellers and the creators to, to the builders, right. The people that know how to build great product. And in some ways the people that can build great product yeah. Stand out from the crowd. And they're the ones that can build communities around their products. And, you know, in some ways can, um, you know, kind of own more of the narrative of because their product begins exactly >>The volume you back to the user led growth. >>Exactly. And it's the religion of, I just love your product. Right. And I, I, I, um, Doug song is the founder of du security used to say, Hey, like, you know, the, the really like in today's world of like consumption based software, like the user is only gonna give you 90 seconds to figure out whether or not you're a company that's easy to do business with. Right. And so you can say, and do all the things that you want about how easy you are to work with. But if the product isn't easy to install, if it's not easy to try, if it's not, if, if the it's gotta speak to the, >>Speak to the user, but let me ask a question now that for the people watching, who are maybe entrepreneurial entre, preneurs, um, masterclass here in session. So I have to ask you, do you prefer, um, an entrepreneur come in and say, look at John. Here's where I'm at. Okay. First of all, storytelling's fine with you an extrovert or introvert, have your style, sell the story in a way that's authentic, but do you, what do you prefer to say? Here's where I'm at? Look, I have an idea. Here's my traction. I think here's my MVP prototype. I need help. Or do, do you wanna just see more stats? What's the, what's the preferred way that you like to see entrepreneurs come in and engage? >>There's tons of different styles, man. I think the single most important thing that every founder should know is that we, we don't invest in what things are today. We invest in what we think something will become. Right. And I think that's why we all get up in the morning and try to build something different, right? It's that we see the world a different way. We want it to be a different way. And we wanna work every single moment of the day to try to make that vision a reality. So I think the more that you can show people where you want to be the, of more likely somebody is gonna align with your vision and, and wanna invest in you and wanna be along for the ride. So I, I wholeheartedly believe in showing off what you got today, because eventually we all get down to like, where are we and what are we gonna do together? But, um, no, I, you gotta >>Show the >>Path. I think the single most important thing for any founder and VC relationship is that they have the same vision. Uh, if you have the same vision, you can, you can get through bumps in the road, you can get through short term spills. You can all sorts of things in the middle. The journey can happen. Yeah. But it doesn't matter as much if you share the same long term vision, >>Don't flake out and, and be fashionable with the latest trends because it's over before you can get there. >>Exactly. I think many people that, that do what we do for a living, we'll say, you know, ultimately the future is relatively easy to predict, but it's the timing that's impossible to predict. <laugh> so you, you know, you sort of have to balance the, you know, we, we know that the world is going in this way and therefore we're gonna invest a lot of money to try to make this a reality. Uh, but some times it happens in six months. Sometimes it takes six years. Sometimes it takes 16 years. Uh, >>What's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at right now with Bel partners, Tebel dot your site. What's the big wave. What's your big >>Wave. There's three big trends that we invest in. And the they're the only things we do day in, day out one is the explosion and open source software. So I think many people think that all software is unquestionably moving to an open source model in some form or another yeah. Tons of reasons to debate whether or not that is gonna happen, an alwa timeline >>Happening forever. >>But, uh, it is, it is accelerating faster than we've ever seen. So I, I think it's, it's one big, massive wave that we continue to ride. Um, second is the rise of data engineering. Uh, I think data engineering is in and of itself now, a category of software. It's not just that we store data. It's now we move data and we develop applications on data. And, uh, I think data is in and of itself as big of a market as any of the other markets that we invest in. Uh, and finally, it's the gift that keeps on giving. I've spent my entire career in it. We still feel that security is a market that is underinvested. It is, it continues to be the place where people need to continue to invest and spend more money. Yeah. Uh, and those are the three major trends that we run >>And security, you think we all need a dessert do over, right? I mean, do we need you do over in security or is what's the core problem? I, >>I, I keep using this word underinvested because I think it's the right way to think about the problem. I think if you, I think people generally speaking, look at cybersecurity as an add-on. Yeah. But if you think about it, the whole economy is moving online. And so in, in some ways like security is core to protecting the digital economy. And so it's, it shouldn't be an afterthought, right? It should be core to what everyone is doing. And that's why I think relative to the trillions of dollars that are at stake, uh, I believe the market size for cybersecurity is run $150 billion. And it still is a fraction of what we're, >>What we're and national security even boom is booming now. So you get the convergence of national security, geopolitics, internet digital that's >>Right. You mean arguably, right? I mean, arguably again, it's the area of the world that people should be spending more time and more money given what to stake. >>I love your thesis. I gotta, I gotta say, you gotta love your firm. Love. You're doing we're big supporters, your mission. Congratulations on your entrepreneurial venture. And, uh, we'll be, we'll be talking and maybe see a Cuban. Uh, absolutely not. Certainly EU maybe even north Americans in Detroit this year. >>Huge fan of what you guys are doing here. Thank you so much for helping me on the show. >>Guess be VC Johnson here on the cube. Check him out. Founder for founders here on the cube, more coverage from San Francisco, California. After this short break, stay with us. Everyone. Welcome to the cue here. Live in San Francisco. K warn you for AWS summit 2022 we're live we're back with events. Also we're virtual. We got hybrid all kinds of events. This year, of course, summit in New York city is happening this summer. We'll be there with the cube as well. I'm John. Again, John host of the cube. Got a great guest here, Justin Kobe owner, and CEO of innovative solutions. Their booth is right behind us. Justin, welcome to the cube. >>Thank you. Thank you for having me. >>So we're just chatting, uh, uh, off camera about some of the work you're doing. You're the owner of and CEO. Yeah. Of innovative. Yeah. So tell us the story. What do you guys do? What's the elevator pitch. >>Yeah. <laugh> so the elevator pitch is we are, uh, a hundred percent focused on small to mid-size businesses that are moving to the cloud, or have already moved to the cloud and really trying to understand how to best control security, compliance, all the good stuff that comes along with it. Um, exclusively focused on AWS and, um, you know, about 110 people, uh, based in Rochester, New York, that's where our headquarters is, but now we have offices down in Austin, Texas, up in Toronto, uh, Canada, as well as Chicago. Um, and obviously in New York, uh, you know, the business was never like this, uh, five years ago, um, founded in 1989, made the decision in 2018 to pivot and go all in on the cloud. And, uh, I've been a part of the company for about 18 years, bought the company about five years ago. And it's been a great ride. >>It's interesting. The manages services are interesting with cloud cause a lot of the heavy liftings done by a of us. So we had Matt on your team on earlier talking about some of the edge stuff. Yeah. But you guys are a managed cloud service. You got cloud advisory, you know, the classic service that's needed, but the demands coming from cloud migrations and application modernization, but obviously data is a huge part of it. Huge. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on the SMB side for edge. Yeah. For AWS, you got results coming in. Where's the, where's the forcing function. What's the pressure point. What's the demand like? >>Yeah. It's a great question. Every CEO I talk to, that's a small mids to size business. They're all trying to understand how to leverage technology better to help either drive a revenue target for their own business, uh, help with customer service as so much has gone remote now. And we're all having problems or troubles or issues trying to hire talent. And um, you know, tech is really at the, at the forefront and the center of that. So most customers are coming to us and they're of like, listen, we gotta move to the cloud or we move some things to the cloud and we want to do that better. And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. Yeah. And what we try to help as many customers understand as possible is lifting and shifting, moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. And then so, uh, progressively working through a modernization strategy is always the better approach. And so we spend a lot of time with small to mid-size businesses who don't have the technology talent on staff to be able to do >>That. Yeah. And they want to get set up. But the, the dynamic of like latency is huge. We're seeing that edge product is a big part of it. This is not a one-off happening around everywhere. It is not it's manufacturing, it's the physical plant or location >>Literally. >>And so, and you're seeing more IOT devices. What's that like right now from a challenge and problem statement standpoint, are the customers, not staff, is the it staff kind of old school? Is it new skills? What's the core problem. And you guys solve >>In the SMB space. The core issue nine outta 10 times is people get enamored with the latest and greatest. And the reality is not everything that's cloud based. Not all cloud services are the latest and greatest. Some things have been around for quite some time and our hardened solutions. And so, um, what we try to do with, to technology staff that has traditional on-prem, uh, let's just say skill sets and they're trying to move to a cloud-based workload is we try to help those customers through education and through some practical, let's just call it use case. Um, whether that's a proof of concept that we're doing or whether that's, we're gonna migrate a small workload over, we try to give them the confidence to be able to not, not necessarily go it alone, but, but to, to, to have the, uh, the Gusto and to really have the, um, the, the opportunity to, to do that in a wise way. Um, and what I find is that most CEOs that I talk to yeah. Feel like, listen, at the end of the day, I'm gonna be spending money in one place or another, whether that's on primer in the cloud, I just want know that I'm doing that way. That helps me grow as quickly as possible status quo. I think every, every business owner knows that COVID taught us anything that status quo is, uh, is, is no. No. Good. >>How about factoring in the, the agility and speed equation? Does that come up a lot? It >>Does. I think, um, I think there's also this idea that if, uh, if we do a deep dive analysis and we really take a surgical approach to things, um, we're gonna be better off. And the reality is the faster you move with anything cloud based, the better you are. And so there's this assumption that we gotta get it right the first time. Yeah. In the cloud, if you start down your journey in one way and you realize midway that it's not the right, let's just say the right place to go. It's not like buying a piece of iron that you put in the closet and now you own it in the cloud. You can turn those services on and off. It's a, gives you a much higher density for making decisions and failing >>Forward. Well actually shutting down the abandoning, the projects that early, not worrying about it, you got it mean most people don't abandon stuff cuz they're like, oh, I own it. >>Exactly. >>And they get, they get used to it. Like, and then they wait too long. >>That's exactly. >>Yeah. Frog and boiling water, as we used to say, oh, it's a great analogy. So I mean, this, this is a dynamic. That's interesting. I wanna get more thoughts on it because like I'm a, if I'm a CEO of a company, like, okay, I gotta make my number. Yeah. I gotta keep my people motivated. Yeah. And I gotta move faster. So this is where you guys come in. I get the whole thing. And by the way, great service, um, professional services in the cloud right now are so hot because so hot, you can build it and then have option optionality. You got path decisions, you got new services to take advantage of. It's almost too much for customers. It is. I mean, everyone I talked to at reinvent, that's a customer. Well, how many announcements did Andy jazzy announcer Adam? You know, the 5,000 announcement or whatever. They did huge amounts. Right. Keeping track of it all. Oh, is huge. So what's the, what's the, um, the mission of, of your company. How does, how do you talk to that alignment? Yeah. Not just processes. I can get that like values as companies, cuz they're betting on you and your people. >>They are, they are >>Values. >>Our mission is, is very simple. We want to help every small to midsize business leverage the power of the cloud. Here's the reality. We believe wholeheartedly. This is our vision that every company is going to become a technology company. So we go to market with this idea that every customer's trying to leverage the power of the cloud in some way, shape or form, whether they know it or don't know it. And number two, they're gonna become a 10 a company in the process of that because everything is so tech-centric. And so when you talk about speed and agility, when you talk about the, the endless options and the endless permutations of solutions that a customer can buy in the cloud, how are you gonna ask a team of one or two people in your it department to make all those decisions going it alone or trying to learn it as you go, it only gets you so far working with a partner. >>I'll just give you some perspective. We work with about a thousand small to midsize business customers. More than 50% of those customers are on our managed services. Meaning they know that we have their back and we're the safety net. So when a customer is saying, right, I'm gonna spend a couple thousand and dollars a month in the cloud. They know that that bill, isn't gonna jump to $10,000 a month going in alone. Who's there to help protect that. Number two, if you have a security posture and let's just say your high profile and you're gonna potentially be more vulnerable to security attacks. If you have a partner that's offering you some managed services. Now you, again, you've got that backstop and you've got those services and tooling. We, we offer, um, seven different products, uh, that are part of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go out today and go buy a new Relic solution on their own. It, it would cost 'em a four, >>The training alone would be insane. A risk factor. I mean the cost. Yes, absolutely opportunity cost is huge, >>Huge, absolutely enormous training and development. Something. I think that is often, you know, it's often overlooked technologists. Typically they want to get their skills up. They, they love to get the, the stickers and the badges and the pins, um, at innovative in 2018. When, uh, when we, he made the decision to go all in on the club, I said to the organization, you know, we have this idea that we're gonna pivot and be aligned with AWS in such a way that it's gonna really require us all to get certified. My executive assistant at the time looks at me. She said, even me, I said, yeah, even you, why can't you get certified? Yeah. And so we made, uh, a conscious, it wasn't requirement. It still isn't today to make sure everybody in the company has the opportunity to become certified. Even the people that are answering the phones at the front >>Desk and she could be running the Kubernetes clusters. I >>Love it. It's >>Amazing. >>But I'll tell you what, when that customer calls and they have a real Kubernetes issue, she'll be able to assist and get >>The right people with. And that's a cultural factor that you guys have. So, so again, this is back to my whole point out SMBs and businesses in general, small and large it staffs are turning over the gen Z and millennials are in the workforce. They were provisioning top of rack switches. Right. First of all. And so if you're a business, there's also the, I call the buildout, um, uh, return factor, ROI piece. At what point in time as an owner, SMB, do I get to ROI? Yeah. I gotta hire a person to manage it. That person's gonna have five zillion job offers. Yep. Uh, maybe who knows? Right. I got cyber security issues. Where am I gonna find a cyber person? Yeah. A data compliance. I need a data scientist and a compliance person. Right. Maybe one in the same. Right. Good luck. Trying to find a data scientist. Who's also a compliance person. Yep. And the list goes on. I can just continue. Absolutely. I need an SRE to manage the, the, uh, the sock report and we can pen test. Right. >>Right. >>These are, these are >>Like critical issues. >>This is just like, these are the table stakes. >>Yeah. And, and every, every business owner's thinking about this, >>That's, that's what, at least a million in loading, if not three or more Just to get that app going. Yeah. Then it's like, where's the app. Yeah. So there's no cloud migration. There's no modernization on the app side. No. And they remind AI and ML. >>That's right. That's right. So to try to go it alone, to me, it's hard. It it's incredibly difficult. And the other thing is, is there's not a lot of partners, so the partner, >>No one's raising their hand boss. I'll do all that exactly. In the it department. >>Exactly. >>So like, can we just call up, uh, you know, our old vendor that's >>Right. <laugh> right. Our old vendor. I like it, >>But that's so true. I mean, when I think about how, if I was a business owner starting a business today and I had to build my team, um, and the amount of investment that it would take to get those people skilled up and then the risk factor of those people now having the skills and being so much more in demand and being recruited away, that's a real, that's a real issue. And so how you build your culture around that is, is very important. It's something that we talk about every, with every one of our small to mid-size >>Businesses. So just, I want get, I want to get your story as CEO. Okay. Take us through your journey. You said you bought the company and your progression to, to being the owner and CEO of innovative yeah. Award winning guys doing great. Uh, great bet on a good call. Yeah. Things are good. Tell your story. What's your journey? >>It's real simple. I was, uh, I was a sophomore at the Rochester Institute of technology in 2003. And, uh, I knew that I, I was going to school for it and I, I knew I wanted to be in tech. I didn't know what I wanted to do, but I knew I didn't wanna code or configure routers and switches. So I had this great opportunity with the local it company that was doing managed services. We didn't call it at that time innovative solutions to come in and, uh, jump on the phone and dial for dollars. I was gonna cold call and introduced other, uh, small to midsize businesses locally in Rochester, New York go to Western New York, um, who innovative was now. We were 19 people at the time. Yeah. I came in, I did an internship for six months and I loved it. I learned more in those six months than I probably did in my first couple of years at, uh, at RT long story short. >>Um, for about seven years, I worked, uh, to really help develop, uh, sales process and methodology for the business so that we could grow and scale. And we grew to about 30 people. And, um, I went to the owners at the time in 2000 and I was like, Hey, I'm growing the value of this business. And who knows where you guys are gonna be another five years? What do you think about making me an owner? And they were like, listen, you got long ways before you're gonna be an owner. But if you stick it out in your patient, we'll, um, we'll work through a succession plan with you. And I said, okay, there were four other individuals at the time that were gonna also buy the business with me. >>And they were the owners, no outside capital, >>None zero, well, 2014 comes around. And, uh, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons. They all decided that it wasn't for them. One started a family. The other didn't wanna put capital in. Didn't wanna write a check. Um, the other had a real big problem with having to write a check. If we couldn't make payroll, I'm like, well, that's kind of like, if we're own, we're gonna have to like cover that stuff. <laugh> so >>It's called the pucker factor. >>Exactly. So, uh, I sat down with the CEO in early 2015 and, uh, we made the decision that I was gonna buy the three partners out, um, go through an earn out process, uh, coupled with, uh, an interesting financial strategy that wouldn't strap the BI cuz they cared very much. The company still had the opportunity to keep going. So in 2016 I bought the business, um, became the sole owner. And, and at that point we, um, we really focused hard on what do we want this company to be? We had built this company to this point. Yeah. And, uh, and by 2018 we knew that pivoting all going all in on the cloud was important for us. And we haven't looked back. >>And at that time, the proof points were coming clearer and clearer 2012 through 15 was the early adopters, the builders, the startups and early enterprises. Yes. The capital ones of the world. Exactly the, uh, and those kinds of big enterprises. The GA I don't wanna say gamblers, but ones that were very savvy. The innovators, the FinTech folks. Yep. The hardcore glass eating enterprises >>Agreed, agreed to find a small to midsize business to migrate completely to the cloud is as infrastructure was considered, that just didn't happen as often. Um, what we were seeing where the, a lot of our small to midsize business customers, they wanted to leverage cloud based backup, or they wanted to leverage a cloud for disaster recovery because it lent itself. Well, early days, our most common cloud customer though, was the customer that wanted to move messaging and collaboration. The, the Microsoft suite to the cloud. And a lot of 'em dipped their toe in the water. But by 2017 we knew infrastructure was around the corner. Yeah. And so, uh, we only had two customers on AWS at the time. Um, and we, uh, we, we made the decision to go all in >>Justin. Great to have you on the cube. Thank you. Let's wrap up. Uh, tell me the hottest product that you have. Is it migrations? Is the app modernization? Is it data? What's the hot product and then put a plugin for the company. Awesome. >>So, uh, there's no question. Every customer is looking migrate workloads and try to figure out how to modernize for the future. We have very interesting, sophisticated yet elegant funding solutions to help customers with the cash flow, uh, constraints that come along with those migrations. So any SMB that's thinking about migrating into the cloud, they should be talking innovative solutions. We know how to do it in a way that allows those customer is not to be cash strapped and gives them an opportunity to move forward in a controlled, contained way so they can modernize. So >>Like insurance, basically for them not insurance class in the classic sense, but you help them out on the, on the cash exposure. >>Absolutely. We are known for that and we're known for being creative with those customers and being empathetic to where they are in their journey. >>And that's the cloud upside is all about doubling down on the variable win that's right. Seeing the value and ING down on it. Absolutely not praying for it. Yeah. <laugh> all right, Justin. Thanks for coming on. You really appreciate >>It. Thank you very much for having me. >>Okay. This is the cube coverage here live in San Francisco, California for AWS summit, 2022. I'm John for your host. Thanks for watching. We're back with more great coverage for two days after this short break >>Live on the floor in San Francisco for Aus summit. I'm John for host of the cube here for the next two days, getting all the actual back in person we're at AWS reinvent a few months ago. Now we're back events are coming back and we're happy to be here with the cube. Bring all the action. Also virtual. We have a hybrid cube, check out the cube.net, Silicon angle.com for all the coverage. After the event. We've got a great guest ticking off here. Matthew Park, director of solutions, architecture with innovation solutions. The booth is right here. Matthew, welcome to the cube. >>Thank you very much. I'm glad to be here. >>So we're back in person. You're from Tennessee. We were chatting before you came on camera. Um, it's great to be back through events. It's >>Amazing. This is the first, uh, summit I've been to, to in what two, three >>Years. That's awesome. We'll be at the, uh, a AWS summit in New York as well. A lot of developers and the big story this year is as developers look at cloud going distributed computing, you got on premises, you got public cloud, you got the edge. Essentially the cloud operations is running everything devs sec ops, everyone kind of sees that you got containers, you got Benet, he's got cloud native. So the, the game is pretty much laid out. Mm-hmm <affirmative> and the edge is with the actions you guys are number one, premier partner at SMB for edge. >>That's >>Right. Tell us about what you guys doing at innovative and, uh, what you do. >>That's right. Uh, so I'm the director of solutions architecture. Uh, me and my team are responsible for building out the solutions. The at our around, especially the edge public cloud for us edge is anything outside of an AWS availability zone. Uh, we are deploying that in countries that don't have AWS infrastructure in region. They don't have it. Uh, give >>An example, >>Uh, example would be Panama. We have a customer there that, uh, needs to deploy some financial tech data and compute is legally required to be in Panama, but they love AWS and they want to deploy AWS services in region. Uh, so they've taken E EKS anywhere. We've put storage gateway and, uh, snowball, uh, in region inside the country and they're running or FinTech on top of AWS services inside Panama. >>You know, what's interesting, Matthew is that we've been covering Aw since 2013 with the cube about their events. And we watched the progression and jazzy was, uh, was in charge and became the CEO. Now Adam slaps in charge, but the edge has always been that thing they've been trying to avoid. I don't wanna say trying to avoid, of course, Amazon would listens to the customer. They work backwards from the customer. We all know that. Uh, but the real issue was they were they're bread and butters EC two and S three. And then now they got tons of services and the cloud is obviously successful and seeing that, but the edge brings up a whole nother level. >>It does >>Computing. >>It >>Does. That's not centralized in the public cloud now they got regions. So what is the issue with the edge what's driving? The behavior. Outpost came out as a reaction to competitive threats and also customer momentum around OT, uh, operational technologies. And it merging. We see with the data at the edge, you got five GM having. So it's pretty obvious, but there was a slow transition. What was the driver for the edge? What's the driver now for edge action for AWS >>Data in is the driver for the edge. Data has gravity, right? And it's pulling compute back to where the customer's generating that data and that's happening over and over again. You said it best outpost was a reaction to a competitive situation. Whereas today we have over 15 AWS edge services and those are all reactions to things that customers need inside their data centers on location or in the field like with media companies. >>Outpost is interesting. We always use the riff on the cube, uh, cause it's basically Amazon in a box, pushed in the data center, running native, all this stuff, but now cloud native operations are kind of becoming standard. You're starting to see some standard. Deepak syncs group is doing some amazing work with opensource Raul's team on the AI side, obviously, uh, you got SW who's giving the keynote tomorrow. You got the big AI machine learning big part of that edge. Now you can say, okay, outpost, is it relevant today? In other words, did outpost do its job? Cause EKS anywhere seems to be getting a lot of momentum. You see local zones, the regions are kicking ass for Amazon. This edge piece is evolving. What's your take on EKS anywhere versus say outpost? >>Yeah, I think outpost did its job. It made customers that were looking at outpost really consider, do I wanna invest in this hardware? Do I, do I wanna have, um, this outpost in my datas center, do I want to manage this over the long term? A lot of those customers just transitioned to the public cloud. They went into AWS proper. Some of those customers stayed on prem because they did have use cases that were, uh, not a good fit for outpost. They weren't a good fit. Uh, in the customer's mind for the public AWS cloud inside an availability zone now happening is as AWS is pushing these services out and saying, we're gonna meet you where you are with 5g. We're gonna meet you where you are with wavelength. We're gonna meet you where you are with EKS anywhere. Uh, I think it has really reduced the amount of times that we have conversations about outposts and it's really increased. We can deploy fast. We don't have to spin up outpost hardware can go deploy EKS anywhere in your VMware environment. And it's increasing the speed of adoption >>For sure. Right? So you guys are making a lot of good business decisions around managed cloud service. That's right. Innovative. Does that get the cloud advisory, the classic professional services for the specific edge piece and, and doing that outside of the availability zones and regions for AWS, um, customers in these new areas that you're helping out are they want cloud, like they want to have modernization a modern applications. Obviously they got data machine learning and AI, all part of that. What's the main product or, or, or gap that you're filling for AWS, uh, outside of their availability zones or their regions that you guys are delivering. What's the key is that they don't have a footprint. Is it that it's not big enough for them? What's the real gap. What's why, why are you so successful? >>So what customers want when they look towards the cloud is they want to focus on what's making them money as a business. They wanna focus on their applications. They wanna focus on their customers. So they look towards AWS cloud and a AWS. You take the infrastructure, you take, uh, some of the higher layers and we'll focus on our revenue generating business, but there's a gap there between infrastructure and revenue generating business that innovative slides into, uh, we help manage the AWS environment. Uh, we help build out these things in local data centers for 32 plus year old company. We have traditional on-premises people that know about deploying hardware that know about deploying VMware to host EKS anywhere. But we also have most of our company totally focused on the AWS cloud. So we're that gap in helping deploy these AWS services, manage them over the long term. So our customers can go to just primarily and totally focusing on their revenue generating business. So >>Basically you guys are basically building AWS edges, >>Correct? >>For correct companies, correct? Mainly because the, the needs are there, you got data, you got certain products, whether it's, you know, low latency type requirements, right. And then they still work with the regions, right. It's all tied together, right. Is that how it >>Works? Right. And, and our customers, even the ones in the edge, they also want us to build out the AWS environment inside the availability zone, because we're always gonna have a failback scenario. If we're gonna deploy fin in the Caribbean, we're gonna talk about hurricanes. And we're gonna talk about failing back into the AWS availability zones. So innovative is filling that gap across the board, whether it be inside the AWS cloud or on the AWS edge. >>All right. So I gotta ask you on the, since you're at the edge in these areas, I won't say underserved, but developing areas where now have data and you have applications that are tapping into that, that requirement. It makes total sense. We're seeing that across the board. So it's not like it's a, it's an outlier it's actually growing. Yeah. There's also the crypto angle. You got the blockchain. Are you seeing any traction at the edge with blockchain? Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech. And in, in the islands there a lot of, lot of, lot of web three happening. What's your, what your view on the web three world right now, relative >>To we, we have some customers actually deploying crypto, especially, um, especially in the Caribbean. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers that are deploying crypto. A lot of, uh, countries are choosing crypto to underlie parts of their central banks. Yeah. Um, so it's, it's up and coming. Uh, I, I have some, you know, personal views that, that crypto is still searching for a use case. Yeah. And, uh, I think it's searching a lot and, and we're there to help customers search for that use case. Uh, but, but crypto, as a, as a, uh, technology, um, lives really well on the AWS edge. Yeah. Uh, and, and we're having more and more people talk to us about that. Yeah. And ask for assistance in the infrastructure, because they're developing new cryptocurrencies every day. Yeah. It's not like they're deploying Ethereum or anything specific. They're actually developing new currencies and, and putting them out there on >>It's interesting. I mean, first of all, we've been doing crypto for many, many years. We have our own little, um, you know, project going on. But if you look talk to all the crypto people that say, look, we do a smart contract, we use the blockchain. It's kind of over a lot of overhead and it's not really their technical already, but it's a cultural shift, but there's underserved use cases around use of money, but they're all using the blockchain just for like smart contracts, for instance, or certain transactions. And they go to Amazon for the database. Yeah. <laugh> they all don't tell anyone we're using a centralized service. Well, what happened to decentralized? >>Yeah. And that's, and that's the conversation performance issue. Yeah. And, and it's a cost issue. Yeah. And it's a development issue. Um, so I think more and more as, as some of these, uh, currencies maybe come up, some of the smart contracts get into, uh, they find their use cases. I think we'll start talking about how does that really live on, on AWS and, and what does it look like to build decentralized applications, but with AWS hardware and services. >>Right. So take me through, uh, a use case of a customer Matthew around the edge. Okay. So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. I want to modernize my business. And I got my developers that are totally peaked up on cloud, but we've identified that it's just a lot of overhead latency issues. I need to have a local edge and serve my a, I also want all the benefit of the cloud. So I want the modern, and I wanna migrate to the cloud for all those cloud benefits and the goodness of the cloud. What's the answer. >>Yeah. Uh, big thing is, uh, industrial manufacturing, right? That's, that's one of the best use cases, uh, inside industrial manufacturing, we can pull in many of the AWS edge services we can bring in, uh, private 5g, uh, so that all the, uh, equipment that, that manufacturing plant can be hooked up, they don't have to pay huge overheads to deploy 5g it's, uh, better than wifi for the industrial space. Um, when we take computing down to that industrial area, uh, because we wanna do pre-procesing on the data. Yeah. We want to gather some analytics. We deploy that with a regular commercially available hardware running VMware, and we deploy EKS anywhere on that. Inside of that manufacturing plant, we can do pre-procesing on things coming out of the robotics, depending on what we're manufacturing. Right. And then we can take those refined analytics and for very low cost with maybe a little bit longer latency transmit those back, um, to the AWS availability zone, the, the standard >>For data, data lake, or whatever, >>To the data lake. Yeah. Data lake house, whatever it might be. Um, and we can do additional data science on that once it gets to the AWS cloud. Uh, but a lot of that, uh, just in time business decisions, just time manufacturing decisions can all take place on an AWS service or services inside that manufacturing plant. And that's, that's one of the best use cases that we're >>Seeing. And I think, I mean, we've been seeing this on the queue for many, many years, moving data around is very expensive. Yeah. But also compute going to the data that saves that cost yeah. On the data transfer also on the benefits of the latency. So I have to ask you, by the way, that's standard best practice now for the folks watching don't move the data unless you have to. Um, but those new things are developing. So I wanna ask you what new patterns are you seeing emerging once this new architecture's in place? Love that idea, localize everything right at the edge, manufacturing, industrial, whatever, the use case, retail, whatever it is. Right. But now what does that change in the, in the core cloud? There's a, there's a system element here. Yeah. What's the new pattern. There's >>Actually an organizational element as well, because once you have to start making the decision, do I put this compute at the point of use or do I put this compute in the cloud? Uh, now you start thinking about where business decisions should be taking place. Uh, so not only are you changing your architecture, you're actually changing your organization because you're thinking, you're thinking about a dichotomy you didn't have before. Uh, so now you say, okay, this can take place here. Uh, and maybe, maybe this decision can wait. Right. And then how do I visualize that? By >>The way, it could be a bot tube doing the work for management. Yeah. <laugh> exactly. You got observability going, right. But you gotta change the database architecture on the back. So there's new things developing. You've got more benefit. There >>Are, there are, and we have more and more people that, that want to talk less about databases and want to talk about data lakes because of this. They want to talk more about customers are starting to talk about throwing away data. Uh, you know, for the past maybe decade. Yeah. It's been store everything. And one day we will have a data science team that we hire in our organization to do analytics on this decade of data. And well, >>I mean, that's, that's a great point. We don't have time to drill into, maybe we do another session this, but the one pattern we're seeing come of the past year is that throwing away data's bad. Even data lakes that so-called turn into data swamps, actually, it's not the case. You look at data, brick, snowflake, and other successes out there. And even time series data, which may seem irrelevant efforts over actually matters when people start retrain their machine learning algorithms. Yep. So as data becomes co as we call it in our last showcase, we did a whole whole an event on this. The data's good in real time and in the lake. Yeah. Because the iteration of the data feeds the machine learning training. Things are getting better with the old data. So it's not throw away. It's not just business benefits. Yeah. There's all kinds of new scale. There >>Are. And, and we have, uh, many customers that are running petabyte level. Um, they're, they're essentially data factories on, on, on premises, right? They're, they're creating so much data and they're starting to say, okay, we could analyze this, uh, in the cloud, we could transition it. We could move petabytes of data to AWS cloud, or we can run, uh, computational workloads on premises. We can really do some analytics on this data transition, uh, those high level and sort of raw analytics back to AWS run 'em through machine learning. Um, and we don't have to transition 10, 12 petabytes of data into AWS. >>So I gotta end the segment on a, on a, kind of a, um, fun, I was told to ask you about your personal background on premise architect, Aus cloud, and skydiving instructor. How does that all work together? What tell, what does this mean? >>Yeah. Uh, I, >>You jumped out a plane and got a job. You got a customer to jump >>Out kind of. So I was, you jumped out. I was teaching Scott eing, uh, before I, before I started in the cloud space, this was 13, 14 years ago. I was a, I still am a Scott I instructor. Uh, I was teaching Scott eing and I heard out of the corner of my ear, uh, a guy that owned an MSP that was lamenting about, um, you know, storing data and how his customers are working. And he can't find enough people to operate all these workloads. So I walked over and said, Hey, this is, this is what I went to school for. Like, I'd love to, you know, I was living in a tent in the woods, teaching skydiving. I was like, I'd love to not live in a tent in the woods. So, uh, I started in the first day there, we had a, and, uh, EC two had just come out <laugh> um, and, uh, like, >>This is amazing. >>Yeah. And so we had this discussion, we should start moving customers here. And, uh, and that totally revolutionized that business, um, that, that led to, uh, that that guy actually still owns a skydiving airport. But, um, but through all of that, and through being in on premises, migrated me and myself, my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, now let's take what we learned in the cloud and, and apply those lessons and those services to premises. >>So it's such a great story. You know, I was gonna, you know, you know, the, the, the, the whole, you know, growth mindset pack your own parachute, you know, uh, exactly. You know, the cloud in the early days was pretty much will the shoot open. Yeah. It was pretty much, you had to roll your own cloud at that time. And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. >>And so was Kubernetes by the way, 2015 or so when, uh, when that was coming out, it was, I mean, it was, it was still, and I, maybe it does still feel like that to some people, right. Yeah. But, uh, it was, it was the same kind of feeling that we had in the early days of AWS, the same feeling we have when we >>It's much now with you guys, it's more like a tandem jump. Yeah. You know, but, but it's a lot of, lot of this cutting stuff like jumping out of an airplane. Yeah. You guys, the right equipment, you gotta do the right things. Exactly. >>Right. >>Matthew, thanks for coming on the cube. Really appreciate it. Absolutely great conversation. Thanks for having me. Okay. The cubes here, lot in San Francisco for AWS summit, I'm John for your host of the cube. Uh, we'll be at a summit in New York coming up in the summer as well. Look up for that. Look at this calendar for all the cube, actually@thecube.net. We'll right back with our next segment after this break. >>Okay. Welcome back everyone to San Francisco live coverage here, we're at the cube, a summit 2022. We're back in person. I'm John furry host of the cube. We'll be at the, a us summit in New York city this summer, check us out then. But right now, two days in San Francisco getting all coverage, what's going on in the cloud, we got a cube alumni and friend of the cube, my dos car CEO, investor, a Sierra, and also an investor and a bunch of startups, angel investor. Gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see you, Pam. Cool. How are you? Good. >>How are you? >>So congratulations on all your investments. Uh, you've made a lot of great successes, uh, over the past couple years, uh, and your company raising, uh, some good cash as Sarah so give us the update. How much cash have you guys raised? What's the status of the company product what's going on? First >>Of all, thank you for having me. We're back to be business with you never while after. Great to see you. Um, so is a company started around four years back. I invested with a few of the investors and now I'm the CEO there. Um, we have raised close to a hundred million there. Uh, the investors are people like nor west Menlo, true ventures, coast, lo ventures, Ram Shera, and all those people, all known guys that Antibe chime Paul Mayard web. So a whole bunch of operating people and, uh, Silicon valley vs are involved. >>And has it gone? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISR is going after is what I call the applying AI for customer service. It operations, it help desk the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and ServiceNow to take it to the next stage? Well, >>I love having you on the cube, Dave and I, and Dave Valenti as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a, you're like a guest analyst. <laugh>, >>You know, >>You >>Get, the comment is fun to talk to you though. >>You get the commentary, you, your, your finger on the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase it. Isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud out scale. You predicted that we talked about in the cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing Docker just raised a hundred million on our $2 billion valuation back from the dead after they pivoted from an enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control, plane emerging, AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded observability there's 10 million observability companies. Data is the key. This is what's your angle on this. What's your take. Yeah, >>No, look, I think I'll give you the view that I see, right? I, from my side, obviously data is very clear. So the things that room system of record that you and me talked about, the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud native, it'll be called AI. NA NA is a new buzzword and using the AI for customer service, it operations. You talk about observability. I call it AI ops, applying AOPs for good old it operation management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events insurance. So I see a lot of work clicking for AIOps and AI service desk. What needs to be helped desk with ServiceNow BMC <inaudible> you see a new ALA emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflows, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with AI workflows. So you'll see AI going >>Off is RPA a company is AI, is RPA a feature of something bigger? Or can someone have a company on RPA UI S one will be at their event this summer? Um, or is it a product company? I mean, I mean, RPA is almost, should be embedded in everything. >>It's a feature. It is very good point. Very, very good thinking. So one is, it's a category for sure. Like, as we thought, it's a category, it's an area where RPA may change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company also, but that automation should be a, in every area. Yeah. Like we call cloud NA and AI NATO it'll become automation. NA yeah. And that's your thinking. >>It's almost interesting me. I think about the, what you're talking about what's coming to mind is I'm kind having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it was middleware. It sat between two things and then the middle and it was software was action. Now you have all kinds of workflows abstractions everywhere. Right? So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed or they integrated. I mean, these are the challenges. This is crazy. What's the, >>So don't about the databases become all polyglot databases. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area, like, as you were talking about, it should be part of ServiceNow. It should be part of ISRA, like every company, every Salesforce. So that's why you see MuleSoft and Salesforce buying RPA companies. So you'll see all the SaaS companies could cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also will have an automation as a layer <inaudible> inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind us, you got the expo hall. You got, um, we're back to vents, but you got, you know, am Clume Ove, uh, Dynatrace data dog, innovative all the companies out here that we know, we interview them all. They're trying to be suppliers to this growing enterprise market. Right. Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Deibel later today. He's a former NEA guy and we always talk to Jerry, Jen, we know all the, the VCs. What does the startups look like? What does the state of the, in your mind, cause you, I know you invest the entrepreneurial founder situation. Cloud's bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's. Yes. Basically. Data's everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to, uh, two things that I'm seeing out there. Remember leaders, how Amazon created the startups 15 years back, everybody built on Amazon now, Azure and GCP. The next layer would be is people don't just build on Amazon. They're gonna build it on top of snowflake. Companies are snowflake becomes a data platform, right? People will build on snowflake. Right? So I see my old boss flagman try to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer. Right? So I think that's the next level of <inaudible> trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis of a couple months ago called castles in the cloud where your Mo is what you do in the cloud. Not necessarily in, in the, in the IP. Um, Dave LAN and I had last reinvent, coined the term super cloud, right? He's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldman S Sachs is doing. You starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage, and guys, Charles Fitzgerald out there who we like was kind of shitting on us saying, Hey, you guys terrible, they didn't get it. Like, yeah, I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. <laugh> cause he's cool. Um, but snowflake is on Amazon. Now. They say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist. And, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. It >>Is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to build everything on Amazon where possible whatever is, I cannot build. I'll make the pass layer. Remember the middle layer pass will be snowflake so I can build it on snowflake. I can use them for data layer if I really need to size build it on force.com Salesforce. Yeah. Right. So I think that's where you'll see. So >>Basically the, if you're an entrepreneur, the, the north star in terms of the, the outcome is be a super cloud. >>It is, >>That's the application on another big CapEx ride, the CapEx of AWS or cloud, >>And that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. Yeah. >>Yeah. How are, how is Amazon and the clouds dealing with these big whales, the snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think they had Redshift. Amazon has got Redshift. Um, but Snowflake's a big customer in the, they're probably paying AWS, I think big bills too. So >>Joe on very good. Cause it's like how Netflix is and Amazon prime, right. Netflix runs on Amazon, but Amazon has Amazon prime that co-optation will be there. So Amazon will have Redshift, but Amazon is also partnering with, uh, snowflake to have native snowflake data warehouses or data layer. So I think depending on the application use case, you have to use each of the above. I think snowflake is here for a long term. Yeah. Yeah. So if I'm building an application, I want to use snowflake then writing from stats. >>Well, I think that it comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, you know, foreclose, your, you that's right with some sort of internal hack. Uh, but I think, I think the general question that I have is that I, I think it's okay to have a super cloud like that because the rising tide is still happening at some point, when does the rising tide stop and do the people shopping up their knives, it gets more competitive or is it just an infinite growth? So >>I think it's growth. You call it cloud scale, you invented the word cloud scale. So I think look, cloud will continually agree, increase. I think there's as long as there more movement from on, uh, OnPrem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations. It helpless, even the customer service service now and, uh, ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So cloud ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go >>Made. I wanna get your thoughts for the folks watching that are, uh, enterprise buyers are practitioners, not suppliers to the more market, feel free to text me or DMing. The next question's really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products, cuz you know, the big enterprises now and you know, small, medium, large and large enterprise are all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between the startup selling to, or growing startup selling to an enterprise? Um, have you seen changes there? I mean I'm seeing some stuff, but why don't get your thoughts on that? What, >>No, it is. If I growing by or 2007 or eight, when I used to talk to you back then and Amazon started very small, right? We are an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or 1% today. Most companies are already spending 20, 30% with startups. Like if I look at a CIO or line of business, it's gone. Yeah. Can it go more? I think it can in the next four, five years. Yeah. Spending on the startups. >>Yeah. And check out, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want to get your reaction because I reference the URL cause it's like, there's like a bunch of companies we've been promoting because the solutions that startups have actually are new stuff. Yes. It's bending, it's shifting for security or using data differently or um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there. Um, and goes back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona, you mentioned AIOps, we've been seeing AIOps IOPS booming and that's creating a new developer paradigm that's right. Which we call coin data as code data as code is like infrastructure is code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this data engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same thing? Do you agree? Um, do you disagree or can you share >>Yourself a lot of first is I see the AIOP solutions in the future should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone there yet. Like I spend a lot of time with data dog, Cisco app Dyna, right? Dynatrace, all this solution. We will go future towards predict to proactive solution with AOPs. But what you bring up a very good point on the data side. I think like we have a Amazon marketplace and Amazon for startup, there should be data exchange where you want to create for AOPs and AI service desk. Customers are give the data, share the data because we thought the data algorithms are useless. I can them, but I gotta train them, modify them, tweak them, make them >>Better, >>Make them better. Yeah. And I think their whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that area is very important. >>You've always been on, um, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to big data days back in 2009, you know, >>Look at, look how much data Rick has grown. >>It is. They doubled the >>Key cloud air kinda went private. So good stuff, man. What are you working on right now? Give a, give a, um, plug for what you're working on. You'll still investing. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. So right. ISRA is my number one baby right now. So I'm looking at that growing customers and my customers are some of them, you like it's zoom auto desk McAfee, uh, grand to so all the top customers, um, mainly for it help desk customer service. AIOps those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What's what's their need? What category is it? >>I think they look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on predict is one area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value problem. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service. >>Great stuff, man. Great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the cube. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of Aish summit 2022. And we're gonna be at Aus summit in San, uh, in New York in the summer. So look for that on this calendar, of course go to eight of us, startups.com. I mentioned that it's decipher all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break. >>Okay. Welcome back everyone. This the cubes coverage here in San Francisco, California, a Davis summit, 2022, the beginning of the event season, as it comes back, little bit smaller footprint, a lot of hybrid events going on, but this is actually a physical event, a summit in new York's coming in the summer. We'll be there too with the cube on the set. We're getting back in the groove psych to be back. We were at reinvent, uh, as well, and we'll see more and more cube, but you're can see a lot of virtual cube outta hybrid cube. We wanna get all those conversations, try to get more interviews, more flow going. But right now I'm excited to have Corey Quinn here on the back on the cube chief cloud economists with bill group. He's the founder, uh, and chief content person always got great angles, fun comedy, authoritative Corey. Great to see you. Thank >>You. Thanks. Coming on. Sure is a lot of words to describe is shit posting, which is how I describe what I tend to do. Most days, >>Shit posting is an art form now. And if you look at mark, Andrew's been doing a lot of shit posting lately. All a billionaires are shit hosting, but they don't know how to do it. Like they're not >>Doing it right? So there's something opportunity there. It's like here's how to be even more obnoxious and incisive. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, it's like, I get excited with a nonsense I can do with a $20 gift card for an AWS credit compared to, oh well, if I could buy a midsize island, do begin doing this from, oh, then we're having fun. >>This shit posting trend. Interesting. I was watching a thread go on about, saw someone didn't get a job because of their shit posting and the employer didn't get it. And then someone on this side I'll hire the guy cuz I get that's highly intelligent shit posting. So for the audience that doesn't know what shit posting is, what is shit posting? >>It's more or less talking about the world of enter prize technology, which even that sentence is hard to finish without falling asleep and toppling out of my chair in front of everyone on the livestream. But it's doing it in such a way that brings it to life that says the quiet part. A lot of the audience is thinking, but generally doesn't say either because they're polite or not a jackass or more prosaically are worried about getting fired for better or worse. I don't don't have that particular constraint, >>Which is why people love you. So let's talk about what you, what you think is, uh, worthy and not worthy in the industry right now, obviously, uh, coupons coming up in Spain, which they're having a physical event, you see the growth of cloud native Amazon's of all the Adams, especially new CEO. Andy's move on to be the chief of all Amazon. Just so I'm the cover of was it time met magazine? Um, he's under a lot of stress. Amazon's changed. Invoice has changed. What's working. What's not, what's rising, what's falling. What's hot. What's not, >>It's easy to sit here and criticize almost anything. These folks do. They're they're effectively in a fishbowl, but I have trouble imagining the logistics. It takes to wind up handling the catering for a relatively downscale event like this one this year, let alone running a 1.7 million employee company having to balance all the competing challenges and pressures and the rest. I, I just can't fathom what it would be like to look at all of AWS. And it's, it's sprawling immense that dominates our entire industry and say, okay, this is a good start, but I, I wanna focus on something with a broader remit. What is that? How do you even get into that position? And you can't win once you're there. All you can do is hold onto the tiger and hope you don't get mold. >>Well, there's a lot of force for good conversations. Seeing a lot of that going on, Amazon's trying to port eight of us is trying to portray themselves as you know, the Pathfinder, you know, you're the pioneer, um, force for good. And I get that and I think that's a good angle as cloud goes mainstream. There's still the question of, we had a guy on just earlier, who was a skydiving instructor and we were joking about the early days of cloud. Like that was like skydiving, build a parachute open, you know, and now same kind of thing. As you move to edge, things are like reliable in some areas, but still new, new fringe, new areas. That's crazy. Well, >>Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon and his backfill replacement. The AWS CISO is CJ. Moses who as a hobby races, a as a semi-pro race car driver to my understanding, which either, I don't know what direction to take that in either. This is what he does to relax or ultimately, or ultimately it's. Huh? That, that certainly says something about risk assessment. I'm not entirely sure what, but okay. <laugh> either way, sounds like more exciting. Like I better >>Have a replacement ready <laugh> I, in case something goes wrong on the track, highly >>Available >>CSOs. I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, which I was never a fan of until I watched that Netflix series. But when you look at the formula one, it's pretty cool. Cause it's got some tech angles, I get the whole data instrumentation thing, but the most coolest thing about formula one is they have these new rigs out. Yeah. Where you can actually race in east sports with other people in pure simulation of the race car. You gotta get the latest and videographic card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're basically simulating racing. >>Oh, it's great too. And I can see the appeal of these tech companies getting into it because these things are basically rocket shifts. When those cars go, like they're sitting there, we can instrument every last part of what is going on inside that vehicle. And then AWS crops up. And we can bill on every one of those dimensions too. And it's like slow down their hasty pudding one step at a time. But I do see the appeal. >>So I gotta ask you about, uh, what's going on in your world. I know you have a lot of great success. We've been following you in the queue for many, many years. Got a great newsletter, check out Corey Quinn's newsletter, uh, screaming in the cloud program. Uh, you're on the cutting edge and you've got a great balance between really being snarky and, and, and really being delivering content. That's exciting, uh, for people, uh, with a little bit of an edge, um, how's that going? Uh, what's the blowback, any blowback late? Has there been uptick? What was, what are some of the things you're hearing from your audience, more Corey, more Corey. And then of course the, the PR team's calling you >>The weird thing about having an audience beyond a certain size is far and away as a landslide. The most common response I get is silence where it's high. I'm emailing an awful lot of people at last week in AWS every week and okay. They must not have heard me it. That is not actually true. People just generally don't respond to email because who responds to email newsletters. That sounds like something, a lunatic might do same story with response to live streams and podcasts. It's like, I'm gonna call into that am radio show and give them a piece of my mind. People generally don't do >>That. We should do that. Actually. I think you're people would call in, oh, >>I, I think >>I guarantee we had that right now. People would call in and say, Corey, what do you think about X? >>Yeah. It not, everyone understands the full context of what I do. And in fact, increasingly few people do and that's fine. I, I keep forgetting that sometimes people do not see what I'm doing in the same light that I do. And that's fine. Blowback has been largely minimal. Honestly, I am surprised about anything by how little I have gotten over the last five years of doing this, but it would be easier to dismiss me if I weren't generally. Right. When, okay, so you launch this new service and it seems pretty crappy to me cuz when I try and build something, it falls over and begs for help. And people might not like hearing that, but it's what customers are finding too. Yeah. I really am the voice of the >>Customer. You know, I always joke with Dave Alane about how John Fort's always at, uh, um, reinvent getting the interview with jazzy now, Andy we're there, you're there. And so we have these rituals at the events. It's all cool. Um, one of the rituals I like about your, um, your content is you like to get on the naming product names. Um, and, and, and, and, and kind of goof on that. Now why I like is because I used to work at ETT Packard where they used to name things as like engineers, HP 1 0, 0 5, or we can't call, we >>Have a new monitor. How are we gonna name it? Throw the wireless keyboard down the stairs again. And then there you go. Yeah. >>It's and the old joke at HP was if they, if they invented SU sushi, they'd say, yeah, we can't call sushi. It's cold, dead fish. That's what it is. And so the joke was cold. Dead fish is a better name than sushi. So you know is fun. So what's the, what are the, how's the Amazon doing in there? Have they changed their naming, uh, strategy, uh, on some of their, their >>Producting. So they're going in different directions. When they named Amazon Aurora, they decided to explore a new theme of Disney princesses as they go down those paths. And some things are more descriptive. Some people are clearly getting bonused on number of words, they can shove into it. Like the better a service is the longer it's name. Like AWS systems manager, session manager is a great one. I love the service ridiculous name. They have a systems manager, parameter store, which is great. They have secrets manager, which does the same thing. It's two words less, but that one costs money in a way that systems manage your parameter store does not. It's fun. >>What's your, what's your favorite combination of acronyms >>Combination >>Of gots. You got EMR, you got EC two, you got S3 SQS. Well, RedShift's not an acronym you >>Gets is one of my personal favorites because it's either elastic block store or elastic bean stock, depending entirely on the context of the conversation, they >>Shook up bean stock or is that still around? Oh, >>They never turn anything off. They're like the anti Google, Google turns things off while they're still building it. Whereas Amazon is like, well, we built this thing in 2005 and everyone hates it, but while we certainly can't change it, now it has three customers on it. John three <laugh>. Okay. Simple BV still haunts our dreams. >>I, I actually got an email on, I saw one of my, uh, servers, all these C twos were being deprecated and I got an email I'm I couldn't figure out. Why can you just like roll it over? Why, why are you telling me? Just like, give me something else. All right. Okay. So let me talk about, uh, the other things I want to ask you, is that like, okay. So as Amazon better in some areas where do they need more work in your opinion? Because obviously they're all interested in new stuff and they tend to like put it out there for their end to end customers. But then they've got ecosystem partners who actually have the same product. Yes. And, and this has been well documented. So it's, it's not controversial. It's just that Amazon's got a database Snowflake's got out database service. So Redshift, snowflake data breach is out there. So you got this co-op petition. Yes. How's that going? And what do you hearing about the reaction to any of that stuff? >>Depends on who you ask. They love to basically trot out a bunch of their partners who will say nice things about them. And it very much has heirs of, let's be honest, a hostage video, but okay. Cuz these companies do partner with, and they cannot afford to rock the boat too far. I'm not partnered with anyone. I can say what I want. And they're basically restricted to taking away my birthday at worse so I can live with that. >>All right. So I gotta ask about multicloud. Cause obviously the other cloud shows are coming up. Amazon hated that word multicloud. Um, a lot of people though saying, you know, it's not a real good marketing word. Like multicloud sounds like, you know, root canal. Mm-hmm <affirmative> right. So is there a better description for multicloud? >>Multiple single >>Cloudant loves that term. Yeah. >>You know, you're building in multiple single points of failure, do it for the right reasons or don't do it as a default. I believe not doing it is probably the right answer. However, and if I were, if I were Amazon, I wouldn't want to talk about my multi-cloud either as the industry leader, let's talk about other clouds, bad direction to go in from a market cap perspective. It doesn't end well for you, but regardless of what they want to talk about, or don't want to talk about what they say, what they don't say, I tune all of it out. And I look at what customers are doing and multi-cloud exists in a variety of forms. Some brilliant, some brain dead. It depends a lot on, but my general response is when someone gets on stage from a company and tells me to do a thing that directly benefits their company. I am skeptical at best. Yeah. When customers get on stage and say, this is what we're doing because it solves problems. That's when I shut up and listen. >>Yeah, course. Awesome. Corey, I gotta ask you a question cause I know you we've been, you know, fellow journeyman and the, and the cloud journey going to all the events and then the pandemic hit. We now in the third year, who knows what it's gonna gonna end. Certainly events are gonna look different. They're gonna be either changing footprint with the virtual piece, new group formations. Community's gonna emerge. You've got a pretty big community growing and it's growing like crazy. What's the weirdest or coolest thing or just big changes you've seen with the pandemic, uh, from your perspective, cuz you've been in the you're in the middle of the whitewater rafting. You've seen the events you circle offline. You saw the online piece, come in, you're commentating, you're calling balls and strikes in the industry. You got a great team developing over there. Duck build group. What's the big aha moment that you saw with the pandemic. Weird, funny, serious, real in the industry and with customers what's >>Accessibility. Reinvent is a great example. When in the before times it's open to anyone who wants to attend, who can pony up two grand and a week in Las Vegas and get to Las Vegas from wherever they happen to be by moving virtually suddenly it, it embraces the reality that talent is evenly. Distributed. Opportunity is not. And that means that suddenly these things are accessible to a wide swath of audience and potential customer base and the rest that hadn't been invited to the table previously, it's imperative that we not lose that. It's nice to go out and talk to people and have people come up and try and smell my hair from time to time, I smelled delightful. Let me assure you. But it was, but it's also nice to be. >>I have a product for you if you want, you know? Oh, >>Oh excellent. I look forward to it. What is it? Pudding? Why not? <laugh> >>What else have you seen? So when accessibility for talent. Yes. Which by the way is totally home run. What weird things have happened that you've seen? Um, that's >>Uh, it's, it's weird, but it's good that an awful lot of people giving presentation have learned to tighten their message and get to the damn point because most people are not gonna get up from a front row seat in a conference hall, midway through your Aing talk and go somewhere else. But they will change a browser tab and you won't get them back. You've gotta be on point. You've gotta be compelling if it's going to be a virtual discussion. Yeah. >>And you turn off your iMessage too. >>Oh yes. It's always fun in the, in the meetings when you're ho to someone and their colleague is messaging them about, should we tell 'em about this? And I'm sitting there reading it and it's >>This guy is really weird. Like, >>Yes I am and I bring it into the conversation and then everyone's uncomfortable. It goes, wow. Why >>Not? I love when my wife yells at me over I message. When I'm on a business call, like, do you wanna take that about no, I'm good. >>No, no. It's better off. I don't the only entire sure. It's >>Fine. My kids text. Yeah, it's fine. Again, that's another weird thing. And, and then group behavior is weird. Now people are looking at, um, communities differently. Yes. Very much so, because if you're fatigued on content, people are looking for the personal aspect. You're starting to see much more of like yeah. Another virtual event. They gotta get better. One and two who's there. >>Yeah. >>The person >>That's a big part of it too is the human stories are what are being more and more interesting. Don't get up here and tell me about your product and how brilliant you are and how you built it. That's great. If I'm you, or if I wanna work with you or I want to compete with you or I want to put on my engineering hat and build it myself. Cause why would I buy anything? That's more than $8. But instead, tell me about the problem. Tell me about the painful spot that you specialize in. Yeah. Tell me a story there. >>I, I think >>That gets a glimpse in a hook and makes >>More, more, I think you nailed it. Scaling storytelling. Yes. And access to better people because they don't have to be there in person. I just did a thing. I never, we never would've done the queue. We did. Uh, Amazon stepped up in sponsors. Thank you, Amazon for sponsoring international women's day, we did 30 interviews, APAC. We did five regions and I interviewed this, these women in Asia, Pacific eight, PJ, they call for in this world. And they're amazing. I never would've done those interviews cuz I never, would've seen 'em at an event. I never would've been in pan or Singapore, uh, to access them. And now they're in the index, they're in the network. They're collaborating on LinkedIn. So a threads are developing around connections that I've never seen before. Yes. Around the content. >>Absolutely >>Content value plus and >>Effecting. And that is the next big revelation of this industry is going to realize you have different companies. And, and I Amazon's case different service teams all competing with each other, but you have the container group and you have the database group and you have the message cuing group. But customers don't really want to build things from spare parts. They want a solution to a problem. I want to build an app that does Twitter for pets or whatever it is I'm trying to do. I don't wanna basically have to pick and choose and fill my shopping cart with all these different things. I want something that's gonna basically give me what I'm trying to get as close to turnkey as possible. Moving up the stack. That is the future. And just how it gets here is gonna be >>Well we're here at Corey Quinn, the master of the master of content here in the a ecosystem. Of course we we've been following up from the beginning. His great guy, check out his blog, his site, his newsletter screaming podcast. Corey, final question for, uh, what are you here doing? What's on your agenda this week in San Francisco and give a plug for the duck build group. What are you guys doing? I know you're hiring some people what's on the table for the company. What's your focus this week and put a plug in for the group. >>I'm here as a customer and basically getting outta my cage cuz I do live here. It's nice to actually get out and talk to folks who are doing interesting things at the duck bill group. We solved one problem. We fixed the horrifying AWS bill, both from engineering and architecture, advising as well as negotiating AWS contracts because it turns out those things are big and complicated. And of course my side media projects last week in aws.com, we are, it it's more or less a content operation where I in my continual and ongoing love affair with the sound of my own voice. >><laugh> and you're good. It's good content it's on, on point fun, Starky and relevant. So thanks for coming to the cube and sharing with us. Appreciate it. No >>Thank you button. >>You. Okay. This the cube covers here in San Francisco, California, the cube is back going to events. These are the summits, Amazon web services summits. They happen all over the world. We'll be in New York and obviously we're here in San Francisco this week. I'm John fur. Keep, keep it right here. We'll be back with more coverage after this short break. Okay. Welcome back everyone. This's the cubes covers here in San Francisco, California, we're live on the show floor of AWS summit, 2022. I'm John for host of the cube and remember AWS summit in New York city coming up this summer, we'll be there as well. And of course reinvent the end of the year for all the cube coverage on cloud computing and AWS two great guests here from the APN global APN Sege chef Jenko and Jeff Grimes partner lead Jeff and Sege is doing partnerships global APN >>AWS global startup program. Yeah. >>Okay. Say that again. >>AWS. We'll start >>Program. That's the official name. >>I love >>It too long, too long for me. Thanks for coming on. Yeah, >>Of course. >>Appreciate it. Tell us about what's going on with you guys. What's the, how was you guys organized? You guys we're obviously we're in San Francisco bay area, Silicon valley, zillions of startups here, New York. It's got another one we're gonna be at tons of startups. A lot of 'em getting funded, big growth and cloud big growth and data secure hot in all sectors. >>Absolutely. >>So maybe, maybe we could just start with the global startup program. Um, it's essentially a white glove service that we provide to startups that are built on AWS. And the intention there is to help identify use cases that are being built on top of AWS. And for these startups, we want to pro vibe white glove support in co building products together. Right. Um, co-marketing and co-selling essentially, um, you know, the use cases that our customers need solved, um, that either they don't want to build themselves or are perhaps more innovative. Um, so the, a AWS global startup program provides white glove support. Dedicat at headcount for each one of those pillars. Um, and within our program, we've also provided incentives, programs go to market activities like the AWS startup showcase that we've built for these startups. >>Yeah. By the way, AWS startup, AWS startups.com is the URL, check it out. Okay. So partnerships are key. Jeff, what's your role? >>Yeah. So I'm responsible for leading the overall effort for the AWS global startup program. Um, so I've got a team of partner managers that are located throughout the us, uh, managing a few hundred startup ISVs right now. <laugh> >>Yeah, you got a >>Lot. We've got a lot. >>There's a lot. I gotta, I gotta ask a tough question. Okay. I'm I'm a startup founder. I got a team. I just got my series a we're grown. I'm trying to hire people. I'm super busy. What's in it for me. Yeah. What do you guys bring to the table? I love the white glove service, but translate that what's in it for what do I get out of it? What's >>A story. Good question. I focus, I think. Yeah, because we get, we get to see a lot of partners building their businesses on AWS. So, you know, from our perspective, helping these partners focus on what, what do we truly need to build by working backwards from customer feedback, right? How do we effectively go to market? Because we've seen startups do various things, um, through trial and error, um, and also just messaging, right? Because oftentimes partners or rather startups, um, try to boil the ocean with many different use cases. So we really help them, um, sort of laser focus on what are you really good at and how can we bring that to the customer as quickly as possible? >>Yeah. I mean, it's truly about helping that founder accelerate the growth of their company, right. And there's a lot that you can do with AWS, but focus is truly the key word there because they're gonna be able to find their little piece of real estate and absolutely deliver incredible outcomes for our customers. And then they can start their growth curve there. >>What are some of the coolest things you've seen with the APN that you can share publicly? I know you got a lot going on there, a lot of confidentiality. Um, but you know, we're here a lot of great partners on the floor here. I'm glad we're back at events. Uh, a lot of stuff going on digitally with virtual stuff and, and hybrid. What are some of the cool things you guys have seen in the APN that you can point to? >>Yeah, absolutely. I mean, I can point to few, you can take them. So, um, I think what's been fun over the years for me personally, I came from a startup brand sales at an early stage startup and, and I went through the whole thing. So I have a deep appreciation for what these guys are going through. And what's been interesting to see for me is taking some of these early stage guys, watching them progress, go public, get acquired and see that big day mm-hmm <affirmative>, uh, and being able to point to very specific items that we help them to get to that point. Uh, and it's just a really fun journey to watch. >>Yeah. I, and part of the reason why I really, um, love working at the AWS, uh, global startup program is working with passionate founders. Um, I just met with a founder today that it's gonna, he's gonna build a very big business one day, um, and watching them grow through these stages and supporting that growth. Um, I like to think of our program as a catalyst for enterprise is sort of scale. Yeah. Um, and through that we provide visibility, credibility and growth opportunities. >>Yeah. A lot, a lot of partners too. What I found talking to staff founders is when they have that milestone, they work so hard for it. Whether it's a B round C round Republic or get bought. Yeah. Um, then they take a deep breath and they look back at wow, what a journey it's been. So it's kind of emotional for sure. But still it's a grind. Right? You gotta, I mean, when you get funding, it's still day one. You don't stop. It's no celebrate, you got a big round or valuation. You still gotta execute >>And look it's hypercompetitive and it's brutally difficult. And our job is to try to make that a little less difficult and navigate those waters. Right. Where ever everyone's going after similar things. >>Yeah. And I think as a group element too, I observe that startups that I, I meet through the APN has been interesting because they feel part of AWS. Yeah, totally. As a group of community, as a vibe there. Um, I know they're hustling, they're trying to make things happen. But at the same time, Amazon throws a huge halo effect. I mean, that's a huge factor. I mean, you guys are the number one cloud in the business, the growth in every sector is booming. Yeah. And if you're a startup, you don't have that luxury yet. And look at companies like snowflake that built on top of AWS. I mean, people are winning by building on AWS. >>Yeah. And our, our, our program really validates their technology first. So we have, what's all the foundation's technical review that we put all of our startups through before we go to market. So that when enterprise customers are looking at startup technology, they know that it's already been vetted. And, um, to take that a step further and help these partners differentiate, we use programs like the competency programs, the DevOps competencies, the security competency, which continues to help, um, provide sort of a platform for these startups, help them differentiate. And also there's go to market benefits that are associated with that. >>Okay. So let me ask the, the question that's probably on everyone's mind, who's watching, certainly I asked this a lot. There's a lot of companies startups out there who makes the cut, is there a criteria cut? It's not like it's sports team or anything, but like sure. Like there's activate program, which is like, there's hundreds of thousands of startups out there. Not everyone is at the APN. Right? Correct. So ISVs again, that's a whole nother, that's a more mature partner that might have, you know, huge market cap or growth. How, how do you guys focus? How do you guys focus? I mean, you got a good question, you know, thousand flowers blooming all the time. Is there a new way you guys are looking at it? I know there's been some talk about restructure or, or new focus. What's the focus. >>Yeah. It's definitely not an easy task by any means. Um, but you know, I recently took over this role and we're really trying to establish focus areas, right. So obviously a lot of the ISVs that we look after are infrastructure ISVs. That's what we do. Uh, and so we have very specific pods that look after different type of partners. So we've got a security pod, we've got a DevOps pod, we've got core infrastructure, et cetera. And really, we're trying to find these ISVs that can solve, uh, really interesting AWS customer. >>You guys have a deliberate, uh, focus on these pillars. So what infrastructure, >>Security, DevOps, and data and analytics, and then line of business >>Line, business line business, like web >>Marketing, business apps, >>Owner type thing. Exactly. >>Yeah, exactly. >>So solutions there. Yeah. More solutions and the other ones are like hardcore. So infrastructure as well, like storage back up ransomware kind of stuff, or, >>Uh, storage, networking. >>Okay. Yeah. The classic >>Database, et cetera. Right. >>And so there's teams on each pillar. >>Yep. So I think what's, what's fascinating for the startups that we cover is that they've got, they truly have support from a build market sell perspective, right. So you've got someone who's technical to really help them get the technology, figured out someone to help them get the marketing message dialed and spread, and then someone to actually do the co-sell, uh, day to day activities to help them get in front of customers. >>Probably the number one request that we always ask for Amazon is can wish that sock report, oh, download it on the console, which we use all the time. <laugh> exactly. But security's a big deal. I mean, you know, ask the res are evolving, that role of DevOps is taking on dev SecOps. Um, I, I can see a lot of customers having that need for a relationship to move things faster. Do you guys provide like escalation or is that a part of a service or that not part of, uh, uh, >>Yeah, >>So the partner development manager can be an escalation for absolutely. Think of that. 'em as an extension of your business inside of AWS. >>Great. And you guys, how is that partner managers, uh, measure >>On those three pillars? Right. Got it. Are we billing, building valuable use cases? So product development go to market, so go to market activities, think blog, posts, webinars, case studies, so on and so forth. And then co-sell not only are we helping these partners win their current opportunities that they are sourcing, but can we also help them source net new deals? Yeah. Right. That's very, >>I mean, top asked from the partners is get me in front of customers. Right. Um, not an easy task, but that's a huge goal of ours to help them grow their top line. >>Right. Yeah. In fact, we had some interviews here on the cube earlier talking about that dynamic of how enterprise customers are buying. And it's interesting, a lot more POCs. I have one partner here that you guys work with, um, on observability, they got a huge POC with capital one mm-hmm <affirmative> and the enterprises are engaging the star ups and bringing them in. So the combination of open source software enterprises are leaning into that hard and bringing young growing startups in mm-hmm <affirmative>. Yep. So I could see that as a huge service that you guys can bring people in. >>Right. And they're bringing massively differentiated technology to the table. The challenge is they just might not have the brand recognition. The, at the big guys have mm-hmm <affirmative>. And so that's, our job is how do you get that great tech in front of the right situations? >>Okay. So my next question is about the show here, and then we'll talk globally. So here in San Francisco sure. You know, Silicon valley bay area, San Francisco bay area, a lot of startups, a lot of VCs, a lot of action. Mm-hmm <affirmative> so probably a big market for you guys. Yeah. So what's exciting here in SF. And then outside of SF, you guys have a global pro, have you see any trends that are geography based or is it sure areas more mature? There's certain regions that are better. I mean, I just interviewed a company here. That's doing, uh, a AWS edge really well in these cases. It's interesting that these, the partners are filling a lot of holes and gaps in the opportunities with a AWS. So what's exciting here. And then what's the global perspective. >>Yeah, totally. So obviously see a ton of partners from the bay area that we support. Um, but we're seeing a lot of really interesting technology come out of AMEA specifically. Yeah. Uh, and making a lot of noise here in the United States, which is great. Um, and so, you know, we definitely have that global presence and, and starting to see super differentiated technology come out of those regions. >>Yeah. Especially Tel Aviv. Yeah. >>Amy and real quick before you get into surge. It's interesting. The VC market in, in Europe is hot. They've got a lot of unicorns coming in. We've seen a lot of companies coming in. They're kind of rattling their own, you know, cage right now. Hey, look at us. Let's see if they crash, you know, but we don't see that happening. I mean, people have been predicting a crash now in, in the startup ecosystem for least a year. It's not crashing. In fact, funding's up. >>Yeah. The pandemic was hard on a lot of startups for sure. Yeah. Um, but what we've seen is many of these startups, they, as quickly as they can grow, they can also pivot as, as, as well. Um, and so I've actually seen many of our startups grow through the demo because their use cases are helping customers either save money, become more operationally efficient and provide value to leadership teams that need more visibility into their infrastructure during a pandemic. >>It's an interesting point. I talked to Andy jazzy and Adam Celski both say the same thing during the pandemic. Necessity's the mother of all invention. Yep. And startups can move fast. So with that, you guys are there to assist if I'm a startup and I gotta pivot cuz remember iterate and pivot, iterate and pivot. So you get your economics, that's the playbook of the ventures and the models. >>Exactly. How >>Do you guys help me do that? Give me an example of what me through. Pretend me, I'm a start up. Hey, I'm on the cloud. Oh my God. Pandemic. They need video conferencing. Hey cube. Yeah. What do I need? Search? What, what do >>I do? That's a good question. First thing is just listen. Yeah. I think what we have to do is a really good job of listening to the partner. Um, what are their needs? What is their problem statement? Where do they want to go at the end of the day? Um, and oftentimes because we've worked with, so how many successful startups that have come out of our program, we have, um, either through intuition or a playbook determined what is gonna be the best path forward and how do we get these partners to stop focusing on things that will eventually, um, just be a waste of time. Yeah. And, or not provide, or, you know, bring any fruit to the table, which, you know, essentially revenue. >>Well, we love startups here in the cube because one, um, they have good stories, they're oil and cutting edge, always pushing the envelope and they're kind of disrupting someone else. Yeah. And so they, they have an opinion. They don't mind sharing on camera. So love talking to startups. We love working with you guys on our startups. Showcases startups.com. Check out AWS startups.com and she got the showcase. So is, uh, final word. I'll give you guys the last word. What's the bottom line bumper sticker for AP globe. The global APN program summarize the opportunity for startups, what you guys bring to the table and we'll close it out. Totally. We'll start >>With you. Yeah. I think the AWS global startup programs here to help companies truly accelerate their business full stop. Right. And that's what we're here for. Love it. >>It's a good way to, it's a good way to put it. Dato yeah. >>All right. Thanks for coming out. Thanks John. Great to see you love working with you guys. Hey, startups need help. And the growing and huge market opportunities, the shift cloud scale data engineering, security infrastructure, all the markets are exploding in growth because of the digital transformation of realities here, open source and cloud. I'll making it happen here in the cube in San Francisco, California. I'm John furrier, your host. Thanks for >>Watching Cisco, John. >>Hello and welcome back to the Cube's live coverage here in San Francisco, California for AWS summit, 2022. I'm John for host of the cube. Uh, two days of coverage, AWS summit, 2022 in New York city coming up this summer will be there as well. Events are back. The cube is back of course, with the cube virtual cube hybrid, the cube.net. Check it out a lot of content this year more than ever a lot more cloud data cloud native, modern applic is all happening. Got a great guest here. Jeremy Burton, Cub alumni, uh, CEO of observe Inc in the middle of all the cloud scale, big data observability, Jeremy. Great to see you. Thanks. >>Coming on. Always great to come and talk to you on the queue, man. It's been been a few years, so, >>Um, well you, you got your hands. You're in the trenches with great startup, uh, good funding, great board, great people involved in the observability Smith hot area, but also you've been a senior executive president of Dell EMC. Um, 11 years ago you had a vision and you actually had an event called cloud meets big data. Um, yeah. And it's here, you predicted it 11 years ago. Um, look around it's cloud meets big data. >>Yeah. I mean the, the cloud thing I think, you know, was, was probably already a thing, but the big data thing I do claim credit for, for sort of catching that bus early, um, you know, we, we were on the, the, the bus early and, and I think it was only inevitable. Like, you know, if you could bring the economics and the compute of cloud to big data, you, you could find out things you could never possibly imagine. >>So you're close to a lot of companies that we've been covering deeply snowflake, obviously you involved, uh, at the board level, the other found, you know, the people there, uh, cloud, you know, Amazon, you know, what's going on here? Yeah. You're doing a startup as the CEO at the helm, uh, chief of observ, Inc, which is an observability, which is to me in the center of this confluence of data engineering, large scale integrations, um, data as code integrating into applications. I mean, it's a whole nother world developing, like you see with snowflake, it means snowflakes is super cloud as we call it. So a whole nother wave is here. What's your, what's this wave we're on what's how would you describe the wave? >>Well, a couple of things, I mean, people are, I think right in more software than, than ever before are why? Because they've realized that if, if you don't take your business online and offer a service, then you become largely irrelevant. And so you you've got a whole set of new applications. I think, I think more applications now than any point. Um, not, not just ever, but the mid nineties, I always looked at as the golden age of application development. Now, back then people were building for windows. Well, well now they're building for things like AWS is now the platform. Um, so you've got all of that going on. And then at the same time, the, the side effect of these applications is they generate data and lots of data. And the, you know, there's sort of the transactions, you know, what you bought today are something like that. But then there's what we do, which is all the telemetry, all the exhaust fumes. And I think people really are realizing that their differentiation is not so much their application. It's their understanding of the data. Can, can I understand who my best customers are, what I sell today. If people came to my website and didn't buy, then why not? Where did they drop off all of that? They wanna analyze. And, and the answers are all in the data. The question is, can you understand it >>In our last startup showcase, we featured data as code one of the insights that we got out of that, and I wanna get your opinion on our reaction to is, is that data used to be put into a data lake and turns into a data swamp or throw into the data warehouse. And then we'll do some queries, maybe a report once in a while. And so data, once it was done, unless it was real time, even real time was not good anymore after real time. That was the old way. Now you're seeing more and more, uh, effort to say, let's go look at the data, cuz now machine learning is getting better. Not just train once mm-hmm <affirmative> they're iterating. Yeah. This notion of iterating and then pivoting, iterating and pivoting. Yeah, that's a Silicon valley story. That's like how startups work, but now you're seeing data being treated the same way. So now you have another, this data concept that's now yeah. Part of a new way to create more value for the apps. So this whole, this whole new cycle of >>Yeah. >>Data being reused and repurposed and figured out and yeah, >>Yeah. I'm a big fan of, um, years ago. Uh, uh, just an amazing guy, Andy McAfee at the MIT C cell labs I spent time with and he, he had this line, which still sticks to me this day, which is look I'm I'm. He said I'm part of a body, which believes that everything is a matter of data. Like if you have enough data, you can answer any question. And, and this is going back 10 years when he was saying these kind of things and, and certainly, you know, research is on the forefront. But I think, you know, starting to see that mindset of the, the sort of MIT research be mainstream, you know, in enterprises, they they're realizing that. Yeah, it is about the data. You know, if I can better understand my data better than my competitor, then I've got an advantage. And so the question is is, is how, what, what technologies and what skills do I need in my organization to, to allow me to do that. >>So let's talk about observing you the CEO of, okay. Given you've seen the ways before you're in the front lines of observability, which again is in the center of all this action what's going on with the company. Give a quick minute to explain, observe for the folks who don't know what you guys do. What's the company doing? What's the funding status, what's the product status and what's the customer status. Yeah. >>So, um, we realized, you know, a handful of years ago, let's say five years ago that, um, look, the way people are building applications is different. They they're way more functional. They change every day. Uh, but in some respects they're a lot more complicated. They're distributed. They, you know, microservices architectures and when something goes wrong, um, the old way of troubleshooting and solving problems was not gonna fly because you had SA so much change going into production on a daily basis. It was hard to tell like where the problem was. And so we thought, okay, it's about time. Somebody looks at the exhaust fumes from this application and all the telemetry data and helps people troubleshoot and make sense of the problems that they're seeing. So, I mean, that's observability, it's actually a term that goes back to the 1960s. It was a guy called, uh, Rudolph like, like everything in tech, you know, it's, it's a reinvention of something from years gone by. >>Um, there's a guy called, um, Rudy Coleman in 1960s coiner term and, and, and the term was being able to determine the state of a system by looking at its external outputs. And so we've been going on this for, uh, the best part of four years now. Um, it took us three years just to build the product. I think, I think what people don't appreciate these days often is the barrier to entry in a lot of these markets is quite high. You, you need a lot of functionality to have something that's credible with a customer. Um, so yeah, this last year we, we, we did our first year selling, uh, we've got about 40 customers now. Um, we just we've got great investors for the hill ventures. Uh, I mean, Mike SP who was, you know, the, the guy who was the, really, the first guy in it snowflake and the, the initial investor were fortunate enough to, to have Mike and our board. And, um, you know, part of the observed story is closely knit with snowflake all of that time with your data, you know, we, we store in there. >>So I want to get, uh, yeah. Pivot to that. Mike SP snowflake, Jeremy Burton, the cube kind of, kind of same thinking this idea of a super cloud or what snowflake became. Yeah. Snowflake is massively successful on top of AWS. Mm-hmm <affirmative> and now you're seeing startups and companies build on top of snowflake. Yeah. So that's become an entrepreneurial story that we think that to go big in the cloud, you can have a cloud on a cloud, uh, like as Jerry, Jerry Chan and Greylock calls it, castles in the cloud where there are moats in the cloud. So you're close to it. I know you, you're doing some stuff with snowflake. So as a startup, what's your view on building on top of say a snowflake or an AWS, because again, you gotta go where the data is. You need all the data. >>Yeah. So >>What's your take on that? I mean, >>Having enough gray hair now, um, you know, again, in tech, I think if you wanna predict the future, look at the past. And, uh, you know, 20 years ago, 25 years ago, I was at a, a smaller company called Oracle and an Oracle was the database company. And, uh, their, their ambition was to manage all of the world's transactional data. And they built on a platform or a couple of platforms, one, one windows, and the other main one was Solaris. And so at that time, the operating system was the platform. And, and then that was the, you know, ecosystem that you would compete on top of. And then there were companies like SAP that built applications on top of Oracle. So then wind the clock forward 25 years gray hairs. <laugh> the platform, isn't the operating system anymore. The platform is AWS, you know, Google cloud. I gotta probably look around if I say that in. Yeah, >>It's okay. Columbia, but hyperscale. Yeah. CapX built out >>That is the new platform. And then snowflake comes along. Well, their aspiration is to manage all of the, not just human generated data, but machine generated data in the world of cloud. And I think they they've done an amazing job are doing for the, I'd say, say the, the big data world, what Oracle did for the relational data world, you know, way back 25 years ago. And then there are folks like us come along and, and of course my ambition would be, look, if, if we can be as successful as an SAP building on top of snowflake, uh, as, as they were on top of Oracle, then, then we'd probably be quite happy, >>Happy. So you're building on top of snowflake, >>We're building on top of snowflake a hundred percent. And, um, you know, I've had folks say to me, well, aren't you worried about that? Isn't that a risk? It's like, well, that that's a risk. You're >>Still on the board. >>Yeah. I'm still on the board. Yeah. That's a risk I'm prepared to take. I am more on snowing. >>It sounds well, you're in a good spot. Stay on the board, then you'll know what's going on. Okay. No, yeah. Serious one. But the, this is a real dynamic. It is. It's not a one off its >>Well, and I do believe as well that the platform that you see now with AWS, if you look at the revenues of AWS is in order of magnitude, more than Microsoft was 25 years ago with windows mm-hmm <affirmative>. And so I've believe the opportunity for folks like snowflake and, and folks like observe it. It's an order of magnitude more than it was for the Oracle and the SAPs of the old world. >>Yeah. And I think this is really, I think this is something that this next generation of entrepreneurship is the go big scenario is you gotta be on a platform. Yeah. >>It's quite easy >>Or be the platform, but it's hard. There's only like how seats were at that table left >>Well value migrates up over time. So, you know, when the cloud thing got going, there were probably 10, 20, 30, you know, rack space and there's 1,000,001 infrastructure, a service platform as a service. My, my old, uh, um, employee EMC, we had pivotal, you know, pivotal was a platform as a service. Don't hear so much about it these days, but initially there's a lot of players and then it consolidates. And then to, to like extract, uh, a real business, you gotta move up, you gotta add value, you gotta build databases, then you gotta build applications. So >>It's interesting. Moving from the data center of the cloud was a dream for starters within if the provision, the CapEx. Yeah. Now the CapEx is in the cloud. Then you build on, on top of that, you got snowflake. Now you got on top of that. >>The assumption is almost that compute and storage is free. I know it's not quite free. Yeah. It's almost free, but you can, you know, as an application vendor, you think, well, what can I do if I assume compute and storage is free, that's the mindset you've gotta get >>Into. And I think the platform enablement to value. So if I'm an entrepreneur, I'm gonna get a series us multiple of value in what I'm paying. Yeah. Most people don't even blanket their Avis pills unless they're like massively huge. Yeah. Then it's a repatriation question or whatever discount question, but for most startups or any growing company, the Amazon bill should be a small factor. >>Yeah. I mean, a lot of people, um, ask me, uh, like, look you build in on snowflake. Um, you, you know, you, you, you're gonna be, you're gonna be paying their money. How, how, how, how does that work with your business model? If you're paying their money, you know, do, do you have a viable business? And it's like, well, okay. I, we could build a database as well and observe, but then I've got half the development team working on something that will never be as good as snowflake. And so we made the call early on that. No, no, we, we want a eight above the database. Yeah. Right. Snowflake are doing a great job of innovating on the database and, and the same is true of something like Amazon, like, like snowflake could have built their own cloud and their own platform, but they didn't. >>Yeah. And what's interesting is that Dave <inaudible> and I have been pointing this out and he's obviously a more on snowflake. I've been looking at data bricks, um, and the same dynamics happening, the proof is the ecosystem. Yeah. I mean, if you look at Snowflake's ecosystem right now and data bricks it's exploding. Right. I mean, the shows are selling out the floor. Space's book. That's the old days at VMware. Yeah. The old days at AWS. >>Well, and for snowflake and, and any platform from VI, it's a beautiful thing because, you know, we build on snowflake and we pay them money. They don't have to sell to us. Right. And we do a lot of the support. And so the, the economics work out really, really well. If you're a platform provider and you've got a lot of >>Ecosystems. Yeah. And then also you get, you get a, um, a trajectory of, uh, economies of scale with the institutional knowledge of snowflake integrations, right. New product, you're scaling a step function with them. >>Yeah. I mean, we manage 10 petabytes of data right now. Right. When I, when I, when I arrived at EMC in 2010, we had, we had one petabyte customer. And, and so at observe, we've been only selling the product for a year. We have 10 petabytes of data under management. And so been able to rely on a platform that can manage that is inve >>You know, well, Jeremy great conversation. Thanks for sharing your insights on the industry. Uh, we got a couple minutes left, um, put a plug in for observe. What do you guys know? You got some good funding, great partners. I don't know if you can talk about your, your, your POC customers, but you got a lot of high ends folks that are working with you. You getting in traction. >>Yeah. Yeah. Scales >>Around the corner. Sounds like, are you, is that where you are scale? >>We've got a big that that's when coming up in two or three weeks, we've got, we've got new funding, um, which is always great. Um, the product is, uh, really, really close. I think, as a startup, you always strive for market fit, you know, which is at which point can you just start hiring salespeople? And the revenue keeps going. We're getting pretty close to that right now. Um, we've got about 40 SaaS companies that run on the platform. They're almost all AWS Kubernetes, uh, which is our sweet spot to begin with, but we're starting to get some really interesting, um, enterprise type customers. We're, we're, you know, F five networks we're POC in right now with capital one, we got some interest in news around capital one coming up. I, I can't share too much, but it's gonna be exciting. And, and like I said, so hill continue to, to, >>I think capital one's a big snowflake customer as well. Right. >>They were early in one of the things that attracted me to capital one was they were very, very good with snowflake early on. And, and they put snowflake in a position in the bank where they thought that snowflake could be successful. And, and today that, that is one of Snowflake's biggest accounts, >>Capital, one, very innovative cloud, obviously Atos customer, and very innovative, certainly in the CISO and CIO, um, on another point on where you're at. So you're, Prescale meaning you're about to scale, >>Right? >>So you got POCs, what's that trajectory look like? Can you see around the corner? What's, what's going on? What's on, around the corner. That you're, that you're gonna hit this straight and narrow and, and gas it fast. >>Yeah. I mean, the, the, the, the key thing for us is we gotta get the product. Right. Um, the nice thing about having a guy like Mike Pfizer on the board is he doesn't obsess about revenue at this stage. His questions that the board are always about, like is the product, right? Is the product right? Is the product right? Have you got the product right? And cuz we know when the product's right, we can then scale the sales team and, and the revenue will take care of itself. Yeah. So right now all the attention is on the product. Um, the, this year, the exciting thing is we we're, we're adding all the tracing visualizations. So people will be able to the kind of things that by in the day you could do with the new relics and AppDynamics, the last generation of, of APM tools, you're gonna be able to do that within observe. And we've already got the logs and the metrics capability in there. So for us this year is a big one, cuz we sort of complete the trifecta, you know, the, the >>Logs, what's the secret sauce observe. What if you had the, put it into a, a, a sentence what's the secret sauce? >>I, I, I think, you know, an amazing founding engineering team, uh, number one, I mean, at the end of the day, you have to build an amazing product and you have to solve a problem in a different way. And we've got great long term investors and, and the biggest thing our investors give is it actually, it's not just money. It gives us time to get the product, right. Because if we get the product right, then we can get the growth. >>Got it. Final question. While I got you here, you've been on the enterprise business for a long time. What's the buyer landscape out there. You got people doing POCs on capital one scale. So we know that goes on. What's the appetite at the buyer side for startups and what are their requirements that you're seeing? Uh, obviously we're seeing people go in and dip into the startup pool because new ways to refactor their, this restructure. So, so a lot of happening in cloud, what's the criteria. How are enterprises engaging in with startups? >>Yeah. I mean, enterprises, they know they've gotta spend money transforming the business. I mean, this was, I almost feel like my old Dell or EMC self there, but, um, what, what we were saying five years ago is happening. Um, everybody needs to figure out a way to take their business to this digital world. Everybody has to do it. So the nice thing from a startup standpoint is they know at times they need to risk or, or take a bet on new technology in order to, to help them do that. So I think you've got buyers that a have money, uh, B it prepared to take risks and it's, it's a race against time to you'll get their, their offerings in this, a new digital footprint. >>Final, final question. What's the state of AWS. Where do you see them going next? Obviously they're continuing to be successful. How does cloud 3.0, or they always say it's day one, but it's more like day 10, but what's next for Aw. Where do they go from here? Obviously they're doing well. They're getting bigger and bigger. Yeah, >>Better. It's an amazing story. I mean, you know, we're, we're on AWS as well. And so I, I think if they keep nurturing the builders and the ecosystem, then that is their superpower. They, they have an early leads. And if you look at where, you know, maybe the likes of Microsoft lost the plot in the, in the late nineties, it was, they stopped, uh, really caring about developers in the folks who were building on top of their ecosystem. In fact, they started buying up their ecosystem and competing with people in their ecosystem. And I see with AWS, they, they have an amazing headstart and if they did more, you know, if they do more than that, that's, what's gonna keep this juggernaut rolling for many years to come. >>Yeah. They got the Silicon and got the stack. They're developing Jeremy Burton inside the cube, great resource for commentary, but also founding with the CEO of a company called observing in the middle of all the action on the board of snowflake as well. Um, great startup. Thanks for coming on the cube. Always a pleasure. Okay. Live from San Francisco. It's to cube. I'm John for your host. Stay with us more coverage from San Francisco, California after the short break. >>Hello. Welcome back to the cubes coverage here live in San Francisco, California. I'm John furrier, host of the cubes cube coverage of AWS summit 2022 here in San Francisco. We're all the developers are the bay air at Silicon valley. And of course, AWS summit in New York city is coming up in the summer. We'll be there as well. SF and NYC cube coverage. Look for us. Of course, reinforcing Boston and re Mars with the whole robotics, AI. They all coming together. Lots of coverage stay with us today. We've got a great guest from Bel VC. John founding partner, entrepreneurial venture is a venture firm. Your next act, welcome to the cube. Good to see you. >>Good to see you, man. I feel like it's been forever since we've been able to do something in person. Well, >>I'm glad you're here because we run into each other all the time. We've known each other for over decade. Um, >>It's been at least 10 years, >>At least 10 years more. And we don't wanna actually go back as bring back the old school web 1.0 days. But anyway, we're in web three now. So we'll get to that in a second. We, >>We are, it's a little bit of a throwback to the path though, in my opinion, >>It's all the same. It's all distributed computing and software. We ran each other in cube con. You're investing in a lot of tech startup founders. Okay. This next level, next gen entrepreneurs have a new makeup and it's software. It's hardcore tech in some cases, not hardcore tech, but using software to take an old something old and make it better new, faster. So tell us about Bel what's the firm. I know you're the founder, uh, which is cool. What's going on. Explain >>What you, I mean, you remember I'm a recovering entrepreneur, right? So of course I, I, >>No, you're never recovering. You're always entrepreneur >>Always, but we are also always recovering. So I, um, started my first company when I was 24. If you remember, before there was Facebook and friends, there was instant messaging. People were using that product at work every day, they were creating a security vulnerability between their network and the outside world. So I plugged that hole and built an instant messaging firewall. It was my first company. The company was called IM logic and we were required by Symantec. Uh, then spent 12 years investing in the next generation of software companies, uh, early investor in open source companies and cloud companies and spent a really wonderful years, uh, at a firm called NEA. So I, I feel like my whole life I've been either starting enterprise software companies or helping founders start enterprise software companies. And I'll tell you, there's never been a better time than right now to start an enterprise software company. >>So, uh, the passion for starting a new firm was really a recognition that founders today that are starting an enterprise software company, they, they tend to be, as you said, a more technical founder, right? Usually it's a software engineer or a builder mm-hmm <affirmative>, uh, they are building that are serving a slightly different market than what we've traditionally seen in enterprise software. Right? I think traditionally we've seen it buyers or CIOs that have agendas and strategies, which, you know, purchase software that is traditionally bought and sold tops down. But you know, today I think the most successful enterprise software companies are the ones that are built more bottoms up and have more technical early adopters. And generally speaking, they're free to use. They're free to try. They're very commonly community source or open source companies where you have a large technical community that's supporting them. So there's a, there's kind of a new normal now I think in great enterprise software. And it starts with great technical founders with great products and great bottoms of motions. And I think there's no better place to, uh, service those people than in the cloud and uh, in, in your community. >>Well, first of all, congratulations, and by the way, you got a great pedigree and great background. You're super smart admire of your work and your, and, and your founding, but let's face it. Enterprise is hot because digital transformation is, is all companies there's no, I mean, consumer is enterprise now. Everything is what was once a niche, not, I won't say niche category, but you know, not for the faint of heart, you know, investors, >>You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. But remember, like right now, there's also a giant tech in VC conference in Miami <laugh> and it's covering cryptocurrencies and FCS and web three. So I think beauty is definitely in the eye of the beholder <laugh> but no, I, I will tell you, well, >>MFTs is one big enterprise, cuz you gotta have imutability you got performance issues. You have, I IOPS issues. >>Well, and, and I think all of us here that are of may, maybe students of his stream have been involved in open source in the cloud would say that we're, you know, much of what we're doing is, uh, the predecessors of the web web three movement. And many of us I think are contributors to the web three >>Movement. The hype is definitely web >>Three. Yeah. But, >>But you know, >>For sure. Yeah, no, but now you're taking us further east to Miami. So, uh, you know, look, I think, I, I think, um, what is unquestioned with the case and maybe it's, it's more obvious the more time you spend in this world is this is the fastest growing part of enterprise software. And if you include cloud infrastructure and cloud infrastructure spend, you know, it is by many measures over, uh, $500 billion in growing, you know, 20 to 30 a year. So it it's a, it's a just incredibly fast >>Let's getting, let's get into some of the cultural and the, the shifts that are happening, cuz again, you, you have the luxury of being in enterprise when it was hard, it's getting easier and more cooler. I get it and more relevant <laugh> but there's also the hype of like the web three, for instance, but you know, for, uh, um, um, the CEO snowflake, okay. Has wrote a book and Dave Valenti and I were talking about it and uh, Frank Lutman has says, there's no playbooks. We always ask the CEOs, what's your playbook. And he's like, there's no playbook, situational awareness, always Trump's playbooks. So in the enterprise playbook, oh, hire a direct sales force and sass kind of crushed that now SAS is being redefined, right. So what is SAS? Is snowflake a SAS or is that a platform? So again, new unit economics are emerging, whole new situation, you got web three. So to me there's a cultural shift, the young entrepreneurs, the, uh, user experience, they look at Facebook and say, ah, you know, and they own all my data. And you know, we know that that cliche, um, they, you know, the product. So as this next gen, the gen Z and the millennials come in and our customers and the founders, they're looking at things a little bit differently and the tech better. >>Yeah. I mean, I mean, I think we can, we can see a lot of commonalities across all six of startups and the overall adoption of technology. Uh, and, and I would tell you, this is all one big giant revolution. I call it the user driven revolution. Right. It's the rise of the user. Yeah. And you might say product like growth is currently the hottest trend in enterprise software. It's actually user like growth, right. They're one in the same. So sometimes people think the product, uh, is what is driving. >>You just pull the product >>Through. Exactly, exactly. And so that's that I, that I think is really this revolution that you see, and, and it does extend into things like cryptocurrencies and web three and, you know, sort of like the control that is taken back by the user. Um, but you know, many would say that, that the origins of this movement may be started with open source where users were contributors, you know, contributors were users and looking back decades and seeing how it, how it fast forward to today. I think that's really the trend that we're all writing and it's enabling these end users. And these end users in our world are developers, data engineers, cybersecurity practitioners, right. They're really the users. And they're really the, the offic and the most, you know, kind of valued people in >>This. I wanna come back to the data engineers in a second, but I wanna make a comment and get your reaction to, I have a, I'm a gen Xer technically. So for not a boomer, but I have some boomer friends who are a little bit older than me who have, you know, experienced the sixties. And I've, I've been saying on the cube for probably about eight years now that we are gonna hit a digital hippie Revolut, meaning a rebellion against in the sixties was rebellion against the fifties and the man and, you know, summer of love. That was a cultural differentiation from the other one of group, the predecessors. So we're kind of having that digital moment now where it's like, Hey boomers, Hey people, we're not gonna do that anymore. We hate how you organize shit. >>Right. But isn't this just technology. I mean, isn't it, isn't it like there used to be the old adage, like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would get fired if you bought IBM. And I mean, it's just like the, the, I think, I think >>During the mainframe days, those renegades were breaking into Stanford, starting the home brew club. So what I'm trying to get at is that, do you see the young cultural revolution also, culturally, just, this is my identity NFTs to me speak volumes about my, I wanna associate with NFTs, not single sign on like, well, >>Absolutely. And, and I think like, I think you're hitting on something, which is like this convergence of, of, you know, societal trends with technology trends and how that manifests in our world is yes. I think like there is unquestionably almost a religion around the way in which a product is built. Right. And we can use open source. One example of that religion. Some people say, look, I'll just never try a product in the cloud if it's not open source. Yeah. I think cloud, native's another example of that, right? It's either it's, you know, it either is cloud native or it's not. And I think a lot of people will look at a product and say, look, you know, you were not designed in the cloud era. Therefore I just won't try you. And sometimes, um, like it or not, it's a religious decision, right? It's, it's something that people just believe to be true almost without, uh, necessarily. I mean, >>The data drives all decision making. Let me ask you this next question. As a VC. Now you look at pitch, well, you've been a VC for many years, but you also have the founder entrepreneurial mindset, but you can empathize with the founders. You know, hustle is a big part of the, that first founder check, right? You gotta convince someone to part with their ch their money and the first money in which you do a lot of is about believing in the first. So faking it till you make it is hard. Now you, the data's there, you either have it cloud native, you either have the adaption or traction. So honesty is a big part of that pitch. You can't fake it. Oh, >>AB absolutely. You know, there used to be this concept of like the persona of an entrepreneur, right. And the persona of the entrepreneur would be, you know, somebody who was a great salesperson or somebody who tell a great story. And I still think that that's important, right. It still is a human need for people to believe in narratives and stories. Yeah. But having said that you're right. The proof is in the pudding, right. At some point you click download and you try the product and it does what it says it's gonna, it's gonna do, or it doesn't, or it either stands up to the load test or it doesn't. And so I, I feel like in this new economy, that're, we live in really, it's a shift from maybe the storytellers and the creators to, to the builders, right. The people that know how to build great product. And in some ways the people that can build great product yeah. Stand out from the crowd. And they're the ones that can build communities around their products. And, you know, in some ways can, um, you know, kind of own more of the narrative because their product begin for exactly >>The volume you back to the user led growth. >>Exactly. And it's the religion of, I just love your product. Right. And I, I, I, um, Doug song is the founder of du security used to say, Hey, like, you know, the, the really like in today's world of like consumption based software, like the user is only gonna give you 90 seconds to figure out whether or not you're a company that's easy to do business with for right. And so you can say, and do all the things that you want about how easy you are to work with. But if the product isn't easy to install, if it's not easy to try, if it's not, if, if the it's gotta speak to the, >>Exactly. Speak to the user. But let me ask a question now that for the people watching, who are maybe entrepreneurial entre entrepreneurs, um, masterclass here is in session. So I have to ask you, do you prefer, um, an entrepreneur to come in and say, look at John. Here's where I'm at. Okay. First of all, storytelling's fine. Whether you're an extrovert or introvert, have your style, sell the story in a way that's authentic, but do you, what do you prefer to say? Here's where I'm at? Look, I have an idea. Here's my traction. I think here's my MVP prototype. I need help. Or do you wanna just see more stats? What's the, what's the preferred way that you like to see entrepreneurs come in and engage? >>There's tons of different styles, man. I think the single most important thing that every founder should know is that we, we don't invest in what things are today. We invest in what we think will become, right. And I think that's why we all get up in the morning and try to build something different, right? It's that we see the world a different way. We want it to be a different way, and we wanna work every single moment of the day to try to make that vision a reality. So I think the more that you can show people where you want to be, the more likely somebody is gonna to align with your vision and, and want to invest in you and wanna be along for the ride. So I, I wholeheartedly believe in showing off what you got today, because eventually we all get down to like, where are we and what are we gonna do together? But, um, no, I, you gotta show the path. I think the single most important thing for any founder and VC relationship is that they have the same vision. Uh, if you have the same vision, you can, you can get through bumps in the road, you can get through short term spills. You can all sorts of things in the middle of the journey can happen. Yeah. But it doesn't matter as much if you share the same long term vision, >>Don't flake out and, and be fashionable with the, the latest trends because it's over before you even get there. >>Exactly. I think many people that, that do what we do for a living will say, you know, ultimately the future is relatively easy to predict, but it's the timing that's impossible to predict. So you, you know, you sort of have to balance the, you know, we, we know that the world is going this way and therefore we're gonna invest a lot of money to try to make this a reality. Uh, but sometimes it happens ins six months. Sometimes it takes six years. Sometimes it takes 16 years. Uh, >>What's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at right now with Tebel partners, Tebel dot your site. What's the big wave. What's your big >>Wave. There there's three big trends that we invest in. And then the, the only things we do day in day out one is the explosion at open source software. So I think many people think that all software is unquestionably moving to an open source model in some form or another yeah. Tons of reasons to debate whether or not that is gonna happen an alwa timeline happening forever, but it is, it is accelerating faster than we've ever seen. So I, I think it's its one big mass of wave that we continue to ride. Um, second is the rise of data engineering. Uh, I think data engineering is in and of itself now a category of software. It's not just that we store data. It's now we move data and we develop applications on data. And, uh, I think data is in and of itself as big of a market as any of the other markets that we invest in. Uh, and finally it's the gift that keeps on giving. I've spent my entire career in it. We still feel that security is a market that is underinvested. It is, it continues to be the place where people need to continue to invest and spend more money. Yeah. Uh, and those are the three major trends that we run >>And security, you think we all need a do over, right? I mean, do we need a do over in security or is what's the core problem? I, >>I, I keep using this word underinvested because I think it's the right way to think about the problem. I think if you, I think people generally speaking, look at cyber security as an add-on. Yeah. But if you think about it, the whole like economy is moving online. And so in, in some ways like security is core to protecting the digital economy. And so it's, it shouldn't be an afterthought, right? It should be core to what everyone is doing. And that's why I think relative to the trillions of dollars that are at stake, uh, I believe the market size for cybersecurity is around 150 billion and it still is a fraction of what >>We're, what we're and even boom is booming now. So you get the convergence of national security, geopolitics, internet digital >>That's right. You mean arguably, right. Arguably again, it's the area of the world that people should be spending more time and more money given what to stake. >>I love your thesis. I gotta, I gotta say you gotta love your firm. Love who you're doing. We're big supporters of your mission. Congrat is on your entrepreneurial venture. And uh, we'll be, we'll be talking and maybe see a Cuban. Uh, >>Absolutely >>Not. Certainly EU maybe even north America's in Detroit this year. >>Huge fan of what you guys are doing here. Thank you so much for helping me on the show. >>Des bell VC Johnson here on the cube. Check him out. Founder for founders here on the cube, more coverage from San Francisco, California, after the short break, stay with us. Hey everyone. Welcome to the cue here. Live in San Francisco, California for AWS summit, 2022 we're live we're back with events. Also we're virtual. We got hybrid all kinds of events. This year, of course, 80% summit in New York city is happening this summer. We'll be there with the cube as well. I'm John. Again, John host of the cube. Got a great guest here. Justin Colby, owner and CEO of innovative solutions they booth is right behind us. Justin, welcome to the cube. >>Thank you. Thank you for having me. >>So we're just chatting, uh, off camera about some of the work you're doing. You're the owner of and CEO. Yeah. Of innovative. Yeah. So tell us the story. What do you guys do? What's the elevator pitch. Yeah. >><laugh> so the elevator pitch is we are, uh, a hundred percent focused on small to midsize businesses that are moving to the cloud or have already moved to the cloud and really trying to understand how to best control, cost, security, compliance, all the good stuff, uh, that comes along with it. Um, exclusively focused on AWS and, um, you know, about 110 people, uh, based in Rochester, New York, that's where our headquarters is. But now we have offices down in Austin, Texas up in Toronto, uh, Canada, as well as Chicago. Um, and obviously in New York, uh, you know, the, the business was never like this, uh, five years ago, um, founded in 1989, made the decision in 2018 to pivot and go all in on the cloud. And, uh, I've been a part of the company for about 18 years, bought the company about five years ago. And it's been a great ride. >>It's interesting. The manages services are interesting with cloud cause a lot of the heavy liftings done by AWS. So we had Matt on your team on earlier talking about some of the edge stuff. Yeah. But you guys are a managed cloud service. You got cloud advisory, you know, the classic service that's needed, but the demands coming from cloud migrations and application modernization and obviously data is a huge part of it. Huge. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on the SMB side for edge. Yeah. For AWS, you got results coming in. Where's the, where's the forcing function. What's the pressure point. What's the demand like? Yeah. >>It's a great question. Every CEO I talk to, that's a small to mid-size business. I'll try and understand how to leverage technology better to help either drive a revenue target for their own business, uh, help with customer service as so much has gone remote now. And we're all having problems or troubles or issues trying to hire talent. And um, you know, tech is really at the, at the forefront and the center of that. So most customers are coming to us and they're like, listen, we gotta move to the out or we move some things to the cloud and we want to do that better. And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. Yeah. And what we try to help as many customers understand as possible is lifting and shifting, moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. And then, uh, progressively working through a modernization strategy is always the better approach. And so we spend a lot of time with small to midsize businesses who don't have the technology talent on staff to be able to do >>That. Yeah. They want to get set up. But the, the dynamic of like latency is huge. We're seeing that edge product is a big part of it. This is not a one-off happening around everywhere. It is. And it's not, it's manufacturing, it's the physical plant or location >>Literally. >>And so, and you're seeing more IOT devices. What's that like right now from a challenge and problem statement standpoint, are the customers, not staff, is the it staff kind of old school? Is it new skills? What's the core problem you guys solve >>The SMB space. The core issue nine outta 10 times is people get enamored with the latest and greatest. And the reality is not everything that's cloud based. Not all cloud services are the latest and greatest. Some things have been around for quite some time and are hardened solutions. And so, um, what we try to do with technology staff that has additional on-prem, uh, let's just say skill sets and they're trying to move to a cloud-based workload is we try to help those customers through education and through some practical, let's just call it use case. Um, whether that's a proof of concept that we're doing or whether that's, we're gonna migrate a small workload over, we try to give them the confidence to be able to not, not necessarily go it alone, but to, to, to have the, uh, the Gusto and to really have the, um, the, the opportunity to, to do that in a wise way. Um, and what I find is that most CEOs that I talk to, yeah, they're like, listen, the end of the day, I'm gonna be spending money in one place or another, whether that's OnPrem or in the cloud. I just want to know that I'm doing that in a way that helps me grow as quickly as possible status quo. I think every, every business owner knows that COVID taught us anything that status quo is, uh, is, is no. No. Good. >>How about factoring in the, the agility and speed equation? Does that come up a lot? It >>Does. I think, um, I think there's also this idea that if, uh, if we do a deep dive analysis and we really take a surgical approach to things, um, we're gonna be better off. And the reality is the faster you move with anything cloud based, the better you are. And so there's this assumption that we gotta get it right the first time. Yeah. In the cloud, if you start the, on your journey in one way, and you realize midway that it's not the right, let's just say the right place to go. It's not like buying a piece of iron that you put in the closet and now you own it in the cloud. You can turn those services on and off. It's a, gives you a much higher density for making decisions and failing >>Forward. Well actually shutting down the abandoning, the projects that early and not worrying about it, you got it. I mean, most people don't abandon stuff cuz they're like, oh, I own it. >>Exactly. >>And they get, they get used to it. Like, and then they wait too long. >>That's exactly. Yeah. >>Frog and boiling water as we used to say so, oh, it's a great analogy. So I mean this, this is a dynamic that's interesting. I wanna get more thoughts on it because like I'm a, if I'm a CEO of a company, like, okay, I gotta make my number. Yeah. I gotta keep my people motivated. Yeah. And I gotta move faster. So this is where you guys come in. I get the whole thing. And by the way, great service, um, professional services in the cloud right now are so hot because so hot, you can build it and then have option optionality. You got path decisions, you got new services to take advantage of. It's almost too much for customers. It is. I mean, everyone I talk to at reinvent, that's a customer. Well, how many announcements did Andy jazzy announcer Adam, you know, five, a thousand announcement or whatever they did with huge amounts. Right. Keeping track of it all. Oh, is huge. So what's the, what's the, um, the mission of, of your company. How does, how do you talk to that alignment? Yeah. Not just product. I can get that like values as companies, cuz they're betting on you and your people. >>They are, they are >>The values. >>Our mission is, is very simple. We want to help every small to mid-size business, leverage the power of the cloud. Here's the reality. We believe wholeheartedly. This is our vision that every company is going to become a technology company. So we go to market with this idea that every customer's trying to leverage the power of the cloud in some way, shape or form, whether they know it or don't know it. And number two, they're gonna become a tech company in the pro of that because everything is so tech-centric. And so when you talk about speed and agility, when you talk about the, the endless options and the endless permutations of solutions that a customer can buy in the cloud, how are you gonna ask a team of one or two people in your it department to make all those decisions going it alone or trying to learn it as you go, it only gets you so far working with a partner. >>I'll just give you some perspective. We work with about a thousand small to midsize business customers. More than 50% of those customers are on our managed services. Meaning know that we have their back and we're the safety net. So when a customer is saying, all right, I'm gonna spend a couple thousand dollars a month in the cloud. They know that that bill, isn't gonna jump to $10,000 a month going on loan. Who's there to help protect that. Number two, if you have a security posture and let's just say you're high profile and you're gonna potentially be more vulnerable to security attack. If you have a partner that's offering you some managed services. Now you, again, you've got that backstop and you've got those services and tooling. We, we offer, um, seven different products that are part of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go out today and go buy a new Relic solution on their own, it would cost 'em a fortune. If >>It's training alone would be insane. A risk factor not mean the cost. Yes, absolutely. Opportunity cost is huge, >>Huge, absolutely enormous training and development. Something. I think that is often, you know, it's often overlooked technologists. Typically they want to get their skills up. Yeah. They, they love to get the, the stickers and the badges and the pins, um, at innovative in 2018, when, uh, when we made the decision to go all on the club, I said to the organization, you know, we have this idea that we're gonna pivot and be aligned with AWS in such a way that it's gonna really require us all to get certified. My executive assistant at the time looks at me. She said, even me, I said, yeah, even you, why can't you get certified? Yeah. And so we made, uh, a conscious decision. It wasn't requirement isn't today to make sure everybody in the company has the opportunity to become certified. Even the people that are answering the phones at the front desk >>And she could be running the Kubernetes clusters. I >>Love it. It's amazing. So I'll tell you what, when that customer calls and they have a real Kubernetes issue, she'll be able to assist and get the right >>People involved. And that's a cultural factor that you guys have. So, so again, this is back to my whole point about SMBs and BIS is in general, small and large. It staffs are turning over the gen Z and millennials are in the workforce. They were provisioning top of rack switches. Right. First of all. And so if you're a business, there's also the, I call the build out, um, uh, return factor, ROI piece. At what point in time as an owner or SMB, do I get the why? Yeah. I gotta hire a person to manage it. That person's gonna have five zillion job offers. Yep. Uh, maybe who knows? Right. I got cyber security issues. Where am I gonna find a cyber person? Yeah. A data compliance. I need a data scientist and a compliance person. Right. Maybe one in the same. Right. Good luck. Trying to find a data scientist. Who's also a compliance person. Yep. And the list goes on. I can just continue. Absolutely. I need an SRE to manage the, the, uh, the sock report and we can pen test. Right. >>Right. >>These are, these are >>Like critical issues. This >>Is just like, these are the table stakes. >>Yeah. And, and every, every business owner's thinking about this, that's, >>That's what, at least a million in bloating, if not three or more Just to get that going. Yeah. Then it's like, where's the app. Yeah. So there's no cloud migration. There's no modernization on the app side now. Yeah. No. And nevermind AI and ML. That's >>Right. That's right. So to try to go it alone, to me, it's hard. It's incredibly difficult. And the other thing is, is there's not a lot of partners, so the partner, >>No one's raising their hand boss. I'll do all that exactly. In the it department. >>Exactly. >>Like, can we just call up, uh, you know, our old vendor that's >>Right. <laugh> right. Our old vendor. I like >>It, >>But that's so true. I mean, when I think about how, if I were a business owner starting a business today and I had to build my team, um, and the amount of investment that it would take to get those people skilled up and then the risk factor of those people now having the skills and being so much more in demand and being recruited away, that's a real, that's a real issue. And so how you build your culture around that is, is very important. And it's something that we tell, talk about every, with every one of our small to mid-size >>Businesses. So just, I wanna get, I want to get your story as CEO. Okay. Take us through your journey. You said you bought the company and your progression to, to being the owner and CEO of innovative yeah. Award winning guys doing great. Uh, great bet on a good call. Yeah. Things are good. Tell your story. What's your journey? >>It's real simple. I was, uh, I was a sophomore at the Rochester Institute of technology in 2003. And, uh, I knew that I, I was going to school for it and I, I knew I wanted to be in tech. I didn't know what I wanted to do, but I knew I didn't wanna code or configure routers and switches. So I had this great opportunity with the local it company that was doing managed services. We didn't call it at that time innovative solutions to come in and, uh, jump on the phone and dial for dollars. I was gonna cold call and introduce other, uh, small to midsize businesses locally in Rochester, New York go to Western New York, um, who innovative was now. We were 19 people at the time. And I came in, I did an internship for six months and I loved it. I learned more in those six months that I probably did in my first couple of years at, uh, at RT long story short. >>Um, for about seven years, I worked, uh, to really help develop, uh, sales process and methodology for the business so that we could grow and scale. And we grew to about 30 people. And, um, I went to the owners at the time in 2010 and I was like, Hey, on the value of this business and who knows where you guys are gonna be another five years, what do you think about making me an owner? And they were like, listen, you got long ways before you're gonna be an owner, but if you stick it out in your patient, we'll, um, we'll work through a succession plan with you. And I said, okay, there were four other individuals at the time that were gonna also buy into the business with me. >>And they were the owners, no outside capital, none >>Zero, well, 2014 comes around. And, uh, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons, they all decided that it wasn't for them. One started a family. The other didn't wanna put capital in. Didn't wanna write a check. Um, the other had a real big problem with having to write a check. If we couldn't make payroll, I'm like, well, that's kind of like if we're owners, we're gonna have to like cover that stuff. <laugh> so >>It's called the pucker factor. >>Exactly. So, uh, I sat down with the CEO in early 2015, and, uh, we made the decision that I was gonna buy the three partners out, um, go through an early now process, uh, coupled with, uh, an interesting financial strategy that wouldn't strap the business, cuz they cared very much. The company still had the opportunity to keep going. So in 2016 I bought the business, um, became the sole owner. And, and at that point we, um, we really focused hard on what do we want this company to be? We had built this company to this point. Yeah. And, uh, and by 2018 we knew that pivoting going all in on the cloud was important for us and we haven't looked back. >>And at that time the proof points were coming clearer and clearer 2012 through 15 was the early adopters, the builders, the startups and early enterprises. Yes. The capital ones of the world. Exactly. And those kinds of big enterprises, the GA I don't wanna say gamblers, but ones that were very savvy. The innovators, the FinTech folks. Yep. The hardcore glass eating enterprises >>Agreed, agreed to find a small to mid-size business, to migrate completely to the cloud as, as infrastructure was considered. That just didn't happen as often. Um, what we were seeing where a lot of our small to mid-size as customers, they wanted to leverage cloud-based backup or they wanted to leverage a cloud for disaster recovery because it lent itself. Well, early days, our most common cloud customer though, was the customer that wanted to move messaging and collaboration, the Microsoft suite to the cloud. And a lot of 'em dipped their toe in the water. But by 2017 we knew infrastructure was around the corner. Yeah. And so, uh, we only had two customers on AWS at the time. Um, and we, uh, we, we made the decision to go all in >>Justin. Great to have you on the cube. Thank you. Let's wrap up. Uh, tell me the hottest product that you have. Is it migrations? Is it the app modernization? Is it data? What's the hot product and then put a plug in for the company. Awesome. >>So, uh, there's no question. Every customer is looking to migrate workloads and try to figure out how to modernize for the future. We have very interesting, sophisticated yet elegant funding solutions to help customers with the cash flow, uh, constraints that come along with those migrations. So any SMB that's thinking about migrating to the cloud, they should be talking innovative solutions. We know how to do it in a way that allows those customers not to be cash strap and gives them an opportunity to move forward in a controlled, contained way so that they can modernize. >>So like insurance, basically for them not insurance class in the classic sense, but you help them out on the, on the cash exposure. >>Absolutely. We are known for that and we're known for being creative with those customers and being empathetic to where they are in their journey. >>And that's the cloud upside is all about doubling down on the variable wind. That's right. Seeing the value and Ling down on it. Absolutely not praying for it. Yeah. <laugh> all right, Justin. Thanks for coming on. You really appreciate it. >>Thank you very much for having me. >>Okay. This is the cube coverage here live in San Francisco, California for AWS summit, 2022. I'm John for your host. Thanks for watching. We're back with more great coverage for two days after this short break, >>Live on the floor and see San Francisco for a AWS summit. I'm John ferry, host of the cube here for the next two days, getting all the action we're back in person. We're at a AWS reinvent a few months ago. Now we're back. Events are coming back and we're happy to be here with the cube. Bring all the action. Also virtual. We have a hybrid cube. Check out the cube.net, Silicon angle.com for all the coverage. After the event. We've got a great guest ticking off here. Matthew Park, director of solutions, architecture with innovation solutions. The booth is right here. Matthew, welcome to the cube. >>Thank you very much. I'm glad to be >>Here. So we're back in person. You're from Tennessee. We were chatting before you came on camera. Um, it's great to have to be back through events. >>It's amazing. This is the first, uh, summit I've been to and what two, three years. >>It's awesome. We'll be at the UHS summit in New York as well. A lot of developers and a big story this year is as developers look at cloud going distributed computing, you got on premises, you got public cloud, you got the edge. Essentially the cloud operations is running everything dev sec ops, everyone kind of sees that you got containers, you got Kubernetes, you got cloud native. So the game is pretty much laid out mm-hmm <affirmative> and the edge is with the actions you guys are number one, premier partner at SMB for edge. >>That's right. >>Tell us about what you guys doing at innovative and, uh, what you do. >>That's right. Uh, so I'm the director of solutions architecture. Uh, me and my team are responsible for building out the solutions that are around, especially the edge public cloud for us edge is anything outside of an AWS availability zone. Uh, we are deploying that in countries that don't have AWS infrastructure in region. They don't have it. Uh, give an example, uh, example would be Panama. We have a customer there that, uh, needs to deploy some financial tech and compute is legally required to be in Panama, but they love AWS and they want to deploy AWS services in region. Uh, so they've taken E EKS anywhere. We've put storage gateway and, uh, snowball, uh, in region inside the country and they're running their FinTech on top of AWS services inside Panama. >>You know, it's interesting, Matthew is that we've been covering a, since 2013 with the cube about their events. And we watched the progression and jazzy was, uh, was in charge and became the CEO. Now Adam's in charge, but the edge has always been that thing they've been trying to avoid. I don't wanna say trying to avoid, of course, Amazon would listen to the customers. They work backwards from the customer. We all know that. Uh, but the real issue was they were they're bread and butters EC two and S three. And then now they got tons of services and the cloud is obviously successful and seeing that, but the edge brings up a whole nother level. >>It does computing. It >>Does. That's not centralized in the public cloud now they got regions. So what is the issue at the edge what's driving the behavior. Outpost came out as a reaction to competitive threats and also customer momentum around OT, uh, operational technologies. And it merging. We see that the data at the edge, you got 5g having. So it's pretty obvious, but there's a slow transition. What was the driver for the edge? What's the driver now for edge action for AWS >>Data is the driver for the edge. Data has gravity, right? And it's pulling compute back to where the customer's generating that data and that's happening over and over again. You said it best outpost was a reaction to a competitive situation where today we have over 15 AWS edge services and those are all reactions to things that customers need inside their data centers on location or in the field like with media companies. >>Outpost is interesting. We always used to riff on the cube cause it's basically Amazon and a box pushed in the data center, running native, all the stuff, but now cloud native operations are kind of becoming standard. You're starting to see some standard Deepak syncs. Group's doing some amazing work with open source Rauls team on the AI side, obviously, uh, you got SW, he was giving the keynote tomorrow. You got the big AI machine learning big part of that edge. Now you can say, okay, outpost, is it relevant today? In other words, did outpost do its job? Cause EKS anywhere seems to be getting a lot of momentum. You see local zones, the regions are kicking ass for Amazon. This edge piece is evolving. What's your take on EKS anywhere versus say outpost? >>Yeah, I think outpost did its job. It made customers that were looking at outpost really consider, do I wanna invest in this hardware? Do I, do I wanna have, um, this outpost in my data center, do I want to manage this over the long term? A lot of those customers just transitioned to the public cloud. They went into AWS proper. Some of those customers stayed on prem because they did have use cases that were, uh, not a good fit for outposts. They weren't a good fit. Uh, in the customer's mind for the public AWS cloud inside an availability zone. Now what's happening is as AWS is pushing these services out and saying, we're gonna meet you where you are with 5g. We're gonna meet you where you are with wavelength. We're gonna meet you where you are with EKS anywhere. Uh, I think it has really reduced the amount of times that we have conversations about outposts and it's really increased. We can deploy fast. We don't have to spin up outpost hardware. We can go deploy EKS anywhere or in your VMware environment. And it's increasing the speed of adoption >>For sure. Right? So you guys are making a lot of good business decisions around managed cloud service. That's right. Innovative as that you get the cloud advisory, the classic professional services for the specific edge piece and, and doing that outside of the availability zones and regions for AWS, um, customers in, in these new areas that you're helping out are, they want cloud, like they want to have modernization a modern applications. Obviously they got data machine learning and AI, all part of that. What's the main product or, or, or gap that you're filling for AWS, uh, outside of their availability zones or their regions that you guys are delivering. What's the key is it. They don't have a footprint. Is it that it's not big enough for them? What's the real gap. What's why, why are you so successful? >>So what customers want when they look towards the cloud is they want to focus on, what's making them money as a business. They want on their applications. They want to focus on their customers. So they look towards AWS cloud and say, AWS, you take the infrastructure. You take, uh, some of the higher layers and we'll focus on our revenue generating business, but there's a gap there between infrastructure and revenue generating business that innovative slides into, uh, we help manage the AWS environment. Uh, we help build out these things in local data centers for 32 plus year old company. We have traditional on-premises people that know about deploying hardware that know about deploying VMware to host EKS anywhere. But we also have most of our company totally focused on the AWS cloud. So we're filling that gap in helping of these AWS services, manage them over the long term. So our customers can go to just primarily and totally focusing on their revenue generating business. So >>Basically you guys are basically building AWS edges, >>Correct? >>For correct companies, correct? Mainly because the, the needs are there, you got data, you got certain products, whether it's, you know, low latency type requirements, right. And then they still work with the regions, right. It's all tied together, right. Is that how it works? Right. >>And, and our customers, even the ones in the edge, they also want us to build out the AWS environment inside the availability zone, because we're always gonna have a failback scenario. If we're gonna deploy FinTech in the Caribbean, we talk about hurricanes and we're gonna talk about failing back into the AWS availability zones. So innovative is filling that gap across the board, whether it be inside the AWS cloud or on the AWS edge. >>All right. So I gotta ask you on the, since you're at the edge in these areas, I won't say underserved, but developing areas where you now have data and you have applications that are tapping into that, that required. It makes total sense. We're seeing that across the board. So it's not like it's, it's an outlier it's actually growing. Yeah. There's also the crypto angle. You got the blockchain. Are you seeing any traction at the edge with blockchain? Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech. And in, in the islands there a lot of, lot of, lot of web three happening. What's your, what's your view on the web three world right now, relative >>To we, we have some customers actually deploying crypto, especially, um, especially in the Caribbean. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers that are deploying crypto. A lot of, uh, countries are choosing crypto to underlie parts of their central banks. Yeah. Um, so it's, it's up and coming a, uh, I, I have some, you know, personal views that, that crypto is still searching for a use case. Yeah. And, uh, I think it's searching a lot and, and we're there to help customers search for that use case. Uh, but, but crypto, as a, as a, uh, technology, um, lives really well on the AWS edge. Yeah. Uh, and, and we're having more and more people talk to us about that. Yeah. And ask for assistance in the infrastructure, because they're developing new cryptocurrencies every day. Yeah. It's not like they're deploying Ethereum or anything specific. They're actually developing new currencies and, and putting them out there on it's >>Interesting. I mean, first of all, we've been doing crypto for many, many years. We have our own little, um, you know, projects going on. But if you look talk to all the crypto people that say, look, we do a smart concept. We use the blockchain. It's kind of over a lot of overhead and it's not really their technical already, but it's a cultural shift, but there's underserved use cases around use of money, but they're all using the blockchain, just for this like smart contracts for instance, or certain transactions. And they go into Amazon for the database. Yeah. <laugh> they all don't tell anyone we're using a centralized service, but what happened to decentralized. >>Yeah. And that's, and that's the conversation performance issue. Yeah. And, and it's a cost issue. Yeah. And it's a development issue. Um, so I think more and more as, as some of these, uh, currencies maybe come up, some of the smart contracts get into, uh, they find their use cases. I think we'll start talking about how does that really live on, on AWS and, and what does it look like to build decentralized applications, but with AWS hardware and services. >>Right. So take me through, uh, a use case of a customer, um, Matthew around the edge. Okay. So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. I want to modernize my business. And I got my developers that are totally peaked up on cloud. Um, but we've identified that it's just a lot of overhead latency issues. I need to have a local edge and serve my ad. And I also want all the benefit of the cloud. So I want the modernization and I wanna migrate to the cloud for all those cloud benefits and the goodness of the cloud. What's the answer. Yeah. >>Uh, big thing is, uh, industrial manufacturing, right? That's, that's one of the best use cases, uh, inside industrial manufacturing, we can pull in many of the AWS edge services we can bring in, uh, private 5g, uh, so that all the, uh, equipment inside that, that manufacturing plant can be hooked up. They don't have to pay huge overheads to deploy 5g it's, uh, better than wifi for the industrial space. Um, when we take computing down to that industrial area, uh, because we wanna do pre-procesing on the data. Yeah. We want to gather some analytics. We deploy that with, uh, regular commercial available hardware running VMware, and we deploy EKS anywhere on that. Uh, inside of that manufacturing plant, uh, we can do pre-procesing on things coming out of the, uh, the robotics that depending on what we're manufacturing, right. Uh, and then we can take those refined analytics and for very low cost with maybe a little bit longer latency transmit those back, um, to the AWS availability zone, the, the standard for >>Data, data lake, or whatever, to >>The data lake. Yeah. Data lake house, whatever it might be. Um, and we can do additional data science on that once it gets to the AWS cloud. Uh, but a lot of that, uh, just in time business decisions, just in time, manufacturing decisions can all take place on an AWS service or services inside that manufacturing plant. And that's, that's one of the best use cases that we're >>Seeing. And I think, I mean, we've been seeing this on the queue for many, many years, moving data around is very expensive. Yeah. But also compute going to the data that saves that cost yep. On the data transfer also on the benefits of the latency. So I have to ask you, by the way, that's standard best practice now for the folks watching don't move the data, unless you have to, um, those new things are developing. So I wanna ask you what new patterns are you seeing emerging once this new architecture's in place? Love that idea, localize everything right at the edge, manufacturing, industrial, whatever, the use case, retail, whatever it is. Right. But now what does that change in the, in the core cloud? This is a, there's a system element here. Yeah. What's the new pattern. There's >>Actually an organizational element as well, because once you have to start making the decision, do I put this compute at the point of use or do I put this compute in the cloud out? Uh, now you start thinking about where business decisions should be taking place. Uh, so not only are you changing your architecture, you're actually changing your organization because you're thinking, you're thinking about a dichotomy you didn't have before. Uh, so now you say, okay, this can take place here. Uh, and maybe maybe decision can wait. Right? Yeah. Uh, and then how do I visualize that? By >>The way, it could be a bot too, doing the work for management. Yeah. <laugh> exactly. You got observability going, right. But you gotta change the database architecture on the back. So there's new things developing. You've got more benefit. There >>Are, there are. And, and we have more and more people that, that want to talk less about databases and want to talk more about data lakes because of this. They want to talk more about customers are starting to talk about throwing away data, uh, you know, for the past maybe decade. Yeah. It's been store everything. And one day we will have a data science team that we hire in our organization to do analytics on this decade of data. And >>Well, I mean, that's, that's a great point. We don't have time to drill into, maybe we do another session on this, but the one pattern was income of the past year is that throwing away data's bad. Even data lakes that so-called turn into data swamps, actually, it's not the case. You look at data, brick, snowflake, and other successes out there. And even time series data, which may seem irrelevant efforts over actually matters when people start retrain their machine learning algorithms. Yep. So as data becomes code, as we call it our lab showcase, we did a whole, whole, that event on this. The data's good in real time and in the lake. Yeah. Because the iteration of the data feeds the machine learning training. Things are getting better with the old data. So it's not throw away. It's not just business benefits. Yeah. There's all kinds of new scale. There >>Are. And, and we have, uh, many customers that are run petabyte level. Um, they're, they're essentially data factories on, on, uh, on premises, right? They're, they're creating so much data and they're starting to say, okay, we could analyze this, uh, in the cloud, we could transition it. We could move petabytes of data to the AWS cloud, or we can run, uh, computational workloads on premises. We can really do some analytics on this data transition, uh, those high level and sort of raw analytics back to AWS run 'em through machine learning. Um, and we don't have to transition 10, 12 petabytes of data into AWS. >>So I gotta end the segment on a, on a kind of a, um, fun note. I was told to ask you about your personal background on premise architect, a cloud and skydiving instructor. <laugh> how does that all work together? What tell, what does this mean? Yeah. >>Uh, you >>Jumped out a plane and got a job. You, you got a customer to jump out >>Kind of. So I was jump, I was teaching Scott eing, uh, before I, before I started in the cloud space, this was 13, 14 years ago. I was a, I still am a Scott I instructor. Yeah. Uh, I was teaching Scott eing and I heard out of the corner of my ear, uh, a guy that owned an MSP that was lamenting about, um, you know, storing data and, and how his cus customers are working. And he can't find enough people to operate all these workloads. So I walked over and said, Hey, this is, this is what I went to school for. Like, I'd love to, you know, uh, I was living in a tent in the woods teaching scout. I think I was like, I'd love to not live in a tent in the woods. So, uh, uh, I started in the first day there, uh, we had a, a discussion, uh, EC two, just come out <laugh> um, and, uh, like, >>This is amazing. >>Yeah. And so we had this discussion, we should start moving customers here. And, uh, and that totally revolutionized that business, um, that, that led to, uh, that that guy actually still owns a skydiving airport. But, um, but through all of that and through being an on premises migrated me and myself, my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, now let's take what we learned in the cloud and, and apply those lessons and those services to >>It's. So it's such a great story, you know, I was gonna, you know, you know, the, the, the, the whole, you know, growth mindset pack your own parachute, you know, uh, exactly. You know, the cloud in the early day was pretty much will the shoot open. Yeah. It was pretty much, you had to roll your own cloud at that time. And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. >>And so was Kubernetes by the way, 2015 or so when, um, when that was coming out, it was, I mean, it was, it was still, and I, maybe it does still feel like that to some people. Right. But, uh, it was, it was the same kind of feeling that we had in the early days, AWS, the same feeling we have when we >>It's pretty much now with you guys, it's more like a tandem jump. Yeah. You know, but, but it's a lot of, lot of this cutting edge stuff, like jumping out of an airplane. Yeah. You guys, the right equipment, you gotta do the right things. Exactly. >>Right. >>Matthew, thanks for coming on the cube. Really appreciate it. Absolutely great conversation. Thanks for having me. Okay. The cubes here live and San Francisco for summit. I'm John Forry host of the cube. Uh, we'll be at a summit in New York coming up in the summer as well. Look up for that. look@thiscalendarforallthecubeactionatthecube.net. We'll be right back with our next segment after this break. >>Okay. Welcome back everyone to San Francisco live coverage here, we're at the cube a be summit 2022. We're back in person. I'm John fury host to the cube. We'll be at the eight of his summit in New York city. This summer, check us out then. But right now, two days in San Francisco, getting all the coverage what's going on in the cloud, we got a cube alumni and friend of the cube, my dudes, car CEO, investor, a Sierra, and also an investor and a bunch of startups, angel investor. Gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see you, sir. Chris. Cool. How are, are you >>Good? How are you? >>So congratulations on all your investments. Uh, you've made a lot of great successes, uh, over the past couple years, uh, and your company raising, uh, some good cash as Sarah. So give us the update. How much cash have you guys raised? What's the status of the company product what's going on? First >>Of all, thank you for having me back to be business with you. Never great to see you. Um, so is a company started around four years back. I invested with a few of the investors and now I'm the CEO there. Um, we have raised close to a hundred million there. Uh, the investors are people like Norwes Menlo, Tru ventures, coast, lo ventures, Ram Sheam and all those people, all well known guys. The Andy Beckel chime, Paul Mo uh, main web. So a whole bunch of operating people and, uh, Silicon valley VCs are involved >>And has it come? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISR is going after is what I call the applying AI for customer service. It operations, it help desk, uh, the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and ServiceNow to take it to the next stage? >>Well, I love having you on the cube, Dave and I, Dave Valenti as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a GE, you're like a guest analyst. <laugh> >>You know who you >>Get to call this fun to talk. You though, >>You got the commentary, you, your, your finger on the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase it. Isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud scale. You predicted that we talked about on cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing DACA just raised a hundred million on a 2 billion valuation back from the dead after they pivoted from an enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control, plane emerging, AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded, observability there's 10 million observability companies. Data is the key. What's your angle on this? What's your take. Yeah, >>No, look, I think I'll give you the view that I see right from my side. Obviously data is very clear. So the things that remember system of recorded you and me talked about the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud NA it'll be called AI, NA AI native is a new buzzword and using the AI customer service it operations. You talk about observability. I call it, AIOps applying AOPs for good old it operation management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events insurance. So I see a lot of work clicking for AIOps and service desk. What needs to be helped us with ServiceNow BMC G you see a new ELA emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflow, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with a AI workflows. So you'll see AI going >>Off is RPA a company is AI, is RPA a feature of something bigger? Or can someone have a company on RPA UI pass? One will be at their event this summer? Um, is it a product company? I mean, I mean, RPA is almost, should be embedded in everything. It's >>A feature. It is very good point. Very, very good thinking. So one is, it's a category for sure. Like, as we thought, it's a category, it's an area where RPA may change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company, or, but that automation should be embedded in every area. Yeah. Like we call cloud NA and AI NATO it'll become automation. NA yeah. And that's your thinking. >>It's almost interesting me. I think about the, what you're talking about what's coming to mind is I'm kinda having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it. It was middleware. It sat between two things and then the middle, and it was software abstraction. Now you have all, all kinds of workflows, abstractions everywhere. So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed or they integrated. I mean, these are the challenges. This is crazy. What's the, >>So don't about the databases become called poly databases. Yeah. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area like you were talking about. It should be part of service. Now it should be part of ISRA, like every company, every Salesforce. So that's why you see MuleSoft and Salesforce buying RPA companies. So you'll see all the SaaS companies, cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also have an automation as a layer <inaudible> inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind us, you've got the expo hall. We got, um, we're back to vents, but you got, you know, AMD, Clum, Ove, uh, Dynatrace data, dog, innovative, all the companies out here that we know, we interview them all. They're trying to be suppliers to this growing enterprise market. Right. Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Bel later today. He's a former NEA guy and we always talk to Jerry, Jen. We know all the, the VCs. What does the startups look like? What does the state of the, in your mind, cause you, I know you invest the entrepreneurial founder situation, clouds bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's code. Yes. Basically data is everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to, uh, two things that I'm seeing out there. Remember leaders of Amazon created the startups 15 years back. Everybody built on Amazon now, Azure and GCP. The next layer would be is people don't just build on Amazon. They're going to build it on top of snowflake. Companies are snowflake becomes a data platform, right? People will build on snowflake. Right? So I see my old boss flagman try to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer. Right? So I think that's in the of, <inaudible> trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis a couple months ago called castles in the cloud where your moat is, what you do in the cloud. Not necessarily in the, in the IP. Um, Dave LAN and I had last reinvent, coined the term super cloud, right? He's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldman S Sachs is doing. You starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage. And guys like Charles Fitzgeral out there, who we like was kind of shit on us saying, Hey, you guys terrible, they didn't get it. Like, yeah. I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. <laugh> if he's cool. Um, but snowflake is on Amazon. Yes. Now they say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist. And, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. >>It is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to build everything on Amazon where possible whatever is, I cannot build. I'll make the pass layer. Remember the middle layer pass will be snowflake. So can build it on snowflake. I can use them for data layer. If I really need to size, I'll build it on four.com Salesforce. So I think that's where you'll see. So >>Basically if you're an entrepreneur, the north star in terms of the outcome is be a super cloud. >>It is, >>That's the application on another big CapEx ride, the CapEx of AWS or cloud, >>And that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. >>Yeah. Yeah. How are, how is Amazon and the clouds dealing with these big whales? The snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think got Redshift. Amazon has got red, um, but Snowflake's a big customer. They're probably paying AWS think big bills too. >>So John, very good. Cause it's like how Netflix is and Amazon prime, right. Netflix runs on Amazon, but Amazon has Amazon prime that co-option will be there. So Amazon will have Redshift, but Amazon is also partnering with, uh, snowflake to have native snowflake data warehouse as a data layer. So I think depending on the application use case, you have to use each of the above. I think snowflake is here for a long term. Yeah. Yeah. So if I'm building an application, I want to use snowflake then writing from stats. >>Well, I think that comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, You know, foreclose your value that's right. But some sort of internal hack, but I think, I think the general question that I have is that I think it's okay to have a super cloud like that because the rising tide is still happening at some point. When does the rising tide stop >>And >>Do the people shopping up their knives, it gets more competitive or is it just an infinite growth cycle? I >>Think it's growth. You call it cloud scale. You invented the word cloud scale. So I think look, cloud will continually agree, increase. I think there's, as long as there are more movement from on, uh, OnPrem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations. It helpless, even the customer service service now and, uh, ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So cloud ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go made. >>I wanna get your thoughts for the folks watching that are, uh, enterprise buyers or practitioners, not suppliers to the market, feel free to, to XME or DMing. Next question's really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products. Cause you know, the big enterprises now and, you know, small, medium, large, and large enterprise are all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between the startup selling to, or a growing startup selling to an enterprise? Um, have you seen changes there? I mean I'm seeing some stuff, but why don't we get your thoughts on that? What, no, it is. >>If I remember going back to our 2007 or eight, it, when I used to talk to you back then when Amazon started very small, right? We are an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or 1% today. Most companies are already spending 20, 30% with startups. Like if I look at a CIO line business, it's gone. Yeah. Can it go more? I think it can double in the next four, five years. Yeah. Spending on the startups. >>Yeah. And check out, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want to get your reaction because I reference the URL cause it's like, there's like a bunch of companies we've been promoting because the solutions that startups have actually are new stuff. Yes. It's bending, it's shifting left for security or using data differently or um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there, um, and gives back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona, you mentioned AIOps, we've been seeing AIOps IOPS booming and that's creating a new developer paradigm that's right. Which we call coin data as code data as code is like infrastructure as code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this data engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same thing? Do you agree? Um, do you disagree or can you share >>Yourself? No, I have a lot of thoughts that plus I see AIOP solutions in the future should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone there yet. Like I spend a lot of time with data dog, Cisco app Dyna, right? Dynatrace, all this solution will go future towards to proactive solution with AOPs. But what you bring up a very good point on the data side. I think like we have a Amazon marketplace and Amazon for startup, there should be data exchange where you want to create for AOPs and AI service that customers are give the data, share the data because we thought the data algorithms are useless. I can come the best algorithm, but I gotta train them, modify them, tweak them, make them better, make them better. Yeah. And I think their whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that area is very important. >>You've always been on, um, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to our big data days back in 2009, you know, >>Look at, look how much data bricks has grown. >>It is uh, double, the key >>Cloud kinda went private, so good stuff. What are you working on right now? Give a, give a, um, plug for what you're working on. You'll still investing. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. So right. ISRA is my number one baby right now. So I'm looking at that growing customers and my customers are some of them, you like it's zoom auto desk, Mac of fee, uh, grandchildren, all the top customers. Um, mainly for it help desk customer service. AIOps those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What's what's their need? What category is it? >>I think they look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on predict S one area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value problem. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service, >>Great stuff, man. Doing great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the cube. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of 80 summit, 2022. And we're gonna be at 80 summit in San, uh, in New York and the summer. So look for that on this calendar, of course go to eight of us, startups.com. I mentioned that it's a site for all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break. >>Okay. Welcome back everyone. This to cubes coverage here in San Francisco, California, a Davis summit, 2022, the beginning of the event season, as it comes back a little bit smaller footprint, a lot of hybrid events going on, but this is actually a physical event, a summit new York's coming in the summer. We'll be there too with the cube on the set. We're getting back in the groove, psyched to be back. We were at reinvent, uh, as well, and we'll see more and more cube, but you're gonna see a lot of virtual cube, a lot of hybrid cube. We wanna get all those conversations, try to get more interviews, more flow going. But right now I'm excited to have Corey Quinn here on the back on the cube chief cloud economists with duck, bill groove, he founder, uh, and chief content person always got great angles, fun comedy, authoritative Corey. Great to see you. Thank you. >>Thanks. Coming on. Sure is a lot of words to describe as shit posting, which is how I describe what I tend to do. Most days, >>Shit posting is an art form now. And if you look at Mark's been doing a lot of shit posting lately, all a billionaires are shit posting, but they don't know how to do it. Like they're not >>Doing it right. Something opportunity there. It's like, here's how to be even more obnoxious and incisive. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, it's like, I get excited with a nonsense I can do with a $20 gift card for an AWS credit compared to, oh well, if I could buy a mid-size island to begin doing this from, oh, then we're having fun. This >>Shit posting trend. Interesting. I was watching a thread go on about, saw someone didn't get a job because of their shit posting and the employer didn't get it. And then someone on the other side, I'll hire the guy cuz I get that's highly intelligent shit posting. So for the audience that doesn't know what shit posting is, what is shit posting? >>It's more or less talking about the world of enterprise tech, which even that sentence is hard to finish without falling asleep and toppling out of my chair in front of everyone on the livestream. But it's doing it in such a way that brings it to life that says the quiet part. A lot of the audience is thinking, but generally doesn't say either because they're polite or not a jackass or more prosaically are worried about getting fired for better or worse. I don't have that particular constraint, >>Which is why people love you. So let's talk about what you, what you think is, uh, worthy and not worthy in the industry right now, obviously, uh, coupons coming up in Spain, which they're having a physical event, you can see the growth of cloud native Amazons, all, all the Adams let see new CEO, Andy move on to be the chief of all. Amazon just saw him. The cover of was it time magazine. Um, he's under a lot of stress. Amazon's changed. Invoice has changed. What's working. What's not, what's rising, what's falling. What's hot. What's not, >>It's easy to sit here and criticize almost anything these folks do. They they're effectively in a fishbowl, but I have trouble imagining the logistics. It takes to wind up handling the catering for a relatively downscale event like this one this year, let alone running a 1.7 million employee company having to balance all the competing challenges and pressures and the rest. I, I just can't fathom what it would be like to look at all of AWS. It's, it's sprawling, immense that dominates our entire industry and say, okay, this is a good start, but I, I wanna focus on something with a broader remit. What is that? How do you even get into that position? And you can't win once you're there. All you can do is hold onto the tiger and hope you don't get mold. Well, >>There's a lot of force for good conversations, seeing a lot of that going on, Amazon's trying to port and he was trying to portray themselves as you know, the Pathfinder, you know, you're the pioneer, um, force for good. And I get that and I think that's a good angle as cloud goes mainstream. There's still the question of, we had a guy on just earlier, who was a skydiving instructor and we were joking about the early days of cloud. Like that was like skydiving, build a parachute open, you know, and now it same kind of thing. As you move to edge, things are like reliable in some areas, but still new, new fringe, new areas. That's crazy. Well, >>Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon and his backfill replacement. The AWS CISO is CJ. Moses who as a hobby races, a as a semi-pro race car driver to my understanding, which either, I don't know what direction to take that in either. This is what he does to relax or ultimately, or ultimately it's. Huh? That, that certainly says something about risk assessment. I'm not entirely sure what, but okay. Either way, sounds like more exciting >>Replacement ready <laugh> in case something goes wrong. I, the track highly >>Available >>CSOs. I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, which I was never a fan of until I watched that Netflix series. But when you look at the formula one, it's pretty cool. Cause it's got some tech angles, I get the whole data instrumentation thing, but the most coolest thing about formula one is they have these new rigs out. Yeah. Where you can actually race in e-sports with other, in pure simulation of the race car. You gotta get the latest and video graphics card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're basically simulating racing. >>Oh, it's great too. And I can see the appeal of these tech companies getting into it because these things are basically rocket shifts. When those cars go, like they're sitting there, we can instrument every last part of what is going on inside that vehicle. And then AWS crops up. And we can bill on every one of those dimensions too. And it's like slow down their hasty pudding one step at a time. But I do see the appeal. >>So I gotta ask you about, uh, what's going in your world. I know you have a lot of great success. We've been following you in the queue for many, many years. Got a great newsletter. Check out Corey Quinn's newsletter, uh, screaming in the cloud program. Uh, you're on the cutting edge and you've got a great balance between really being snarky and, and, and really being delivering content. That's exciting, uh, for people, uh, with a little bit of an edge, um, how's that going? Uh, what's back any blow back late there been uptick. What was, what are some of the things you're hearing from your audience, more Corey, more Corey. And then of course the, the PR team's calling you >>The weird thing about having an audience beyond a certain size is far and away as a landslide. The most common response I get is silence where it's high. I'm emailing an awful lot of people at last week in AWS every week and okay. They must not have heard me it. That is not actually true. People just generally don't respond to email because who responds to email newsletters. That sounds like something, a lunatic might do same story with response to live streams and podcasts. It's like, I'm gonna call into that am radio show and give them a piece of my mind. People generally don't do that. >>We should do that. Actually. I think sure would call in. Oh, I, >>I think >>Chief, we had that right now. People would call in and say, Corey, what do you think about X? >>Yeah. It not, everyone understands the full context of what I do. And in fact, increasingly few people do and that's fine. I, I keep forgetting that sometimes people do not see what I'm doing in the same light that I do. And that's fine. Blowback has been largely minimal. Honestly, I am surprised anything by how little I have gotten over the last five years of doing this, but it would be easier to dismiss me if I weren't generally. Right. When, okay, so you launch this new service and it seems pretty crappy to me cuz when I try and build something, it falls over and begs for help. And people might not like hearing that, but it's what customers are finding too. Yeah. I really am the voice of the customer. >>You know, I always joke with Dave ante about how John Fort's always at, uh, reinvent getting the interview with jazzy now, Andy we're there, you're there. And so we have these rituals at the events. It's all cool. Um, one of the rituals I like about your, um, your content is you like to get on the naming product names. Um, and, and, and, and, and kind of goof on that. Now why I like is because I used to work at ETT Packard where they used to name things as like engineers, HP 1 0 5, or we can't, >>We have a new monitor. How are we gonna name it? Throw the wireless keyboard down the stairs again. And there you go. Yeah. >>It's and the old joke at HP was if they, if they invented sushi, they'd say, yeah, we can't call sushi. It's cold, dead fish. That's what it is. And so the joke was cold. Dead fish is a better name than sushi. So you know is fun. So what's the, what are the, how's the Amazon doing in there? Have they changed their naming, uh, strategy, uh, on some of their, their >>Producting, they're going in different directions. When they named Amazon Aurora, they decided to explore a new theme of Disney princesses as they go down those paths. And some things are more descriptive. Some people are clearly getting bonused on a number of words. They can shove into it. Like the better a service is the longer it's name. Like AWS systems manager, session manager is a great one. I love the service, ridiculous name. They have systems manager, parameter store, which is great. They have secrets manager, which does the same thing. It's two words less, but that one costs money in a way that systems manage your parameter store does not. It's >>Fun. What's your, what's your favorite combination of acronyms >>Combination of you >>Got Ks. You got EMR, you got EC two. You got S three SQS. Well, Redshift the on an acronym, you >>Gots is one of my personal favorites because it's either elastic block store or elastic bean stock, depending entirely on the context of the conversation. >>They still up bean stalk. Or is that still around? Oh, >>They never turn anything off. They're like the anti Google, Google turns things off while they're still building it. Whereas Amazon is like, wow, we built this thing in 2005 and everyone hates it. But while we certainly can't change it, now it has three customers on it. John three <laugh>. >>Okay. >>Simple BV still haunts our dreams. >>I, I actually got an email. I saw one of my, uh, servers, all these C two S were being deprecated and I got an email I'm like, I couldn't figure out. Why can you just like roll it over? Why, why are you telling me just like, give me something else. Right. Okay. So let me talk about, uh, the other things I want to ask you is that like, okay. So as Amazon gets better in some areas, where do they need more work in your opinion? Because obviously they're all interested in new stuff and they tend to like put it out there for their end to end customers. But then they've got ecosystem partners who actually have the same product. Yes. And, and this has been well documented. So it's, it's not controversial. It's just that Amazon's got a database, Snowflake's got a database service. So Redshift, snowflake database is, so you got this co-op petition. Yes. How's that going? And what are you hearing about the reaction to any of that stuff? >>Depends on who you ask. They love to basically trot out a bunch of their partners who will say nice things about them. And it very much has heirs of, let's be honest, a hostage video, but okay. Cuz these companies do partner with Amazon and they cannot afford to rock the boat too far. I'm not partnered with anyone. I can say what I want and they're basically restricted to taking away my birthday at worse so I can live with that. >>All right. So I gotta ask about multi-cloud cause obviously the other cloud shows are coming up. Amazon hated that word. Multi-cloud um, a lot of people are saying, you know, it's not a real good marketing word, like multi sounds like, you know, root canal. Mm-hmm <affirmative> right. So is there a better description for multi-cloud >>Multiple single points? >>Dave loves that term. Yeah. >>Yeah. You're building in multiple single points of failure. Do it for the right reasons or don't do it as a default. I believe not doing it is probably the right answer. However, and if I were, if I were Amazon, I wouldn't want to talk about multi-cloud either as the industry leader, talk about other clouds, bad direction to go in from a market cap perspective, it doesn't end well for you, but regardless of what they want to talk about, or don't want to talk about what they say, what they don't say, I tune all of it out. And I look at what customers are doing and multi-cloud exists in a variety of forms. Some brilliant, some brain dead. It depends a lot on context. But my general response is when someone gets on stage from a company and tells me to do a thing that directly benefits their company. I am skeptical at best. Yeah. When customers get on stage and say, this is what we're doing, because it solves problems. That's when I shut up and listen. Yeah. >>Cool. Awesome. Corey, I gotta ask you a question, cause I know you, we you've been, you know, fellow journeymen and the, and the cloud journey going to all the events and then the pandemic hit where now in the third year, who knows what it's gonna gonna end. Certainly events are gonna look different. They're gonna be either changing footprint with the virtual piece, new group formations. Community's gonna emerge. You got a pretty big community growing and it's throwing like crazy. What's the weirdest or coolest thing, or just big chain angels. You've seen with the pandemic, uh, from your perspective, cuz you've been in the you're in the middle of the whitewater rafting. You've seen the events you circle offline. You saw the online piece, come in, you're commentating. You're calling balls and strikes in the industry. You got a great team developing over there. Duck bill group. What's the big aha moment that you saw with the pandemic. Weird, fun, serious, real in the industry and with customers what's >>Accessibility. Reinvent is a great example. When in the before times it's open to anyone who wants to attend, who can pony up two grand and a week in Las Vegas and get to Las Vegas from wherever they happen to be by moving virtually suddenly it, it embraces the reality that talent is even distributed. Opportunity is not. And that means that suddenly these things are accessible to a wide swath of audience and potential customer base and the rest that hadn't been invited to the table previously, it's imperative that we not lose that. It's nice to go out and talk to people and have people come up and try and smell my hair from time to time, I smell delightful. Let make assure you, but it was, but it's also nice to be. >>I have a product for you if you want, you know. >>Oh, excellent. I look forward to it. What is it putting? Why not? <laugh> >>What else have you seen? So when accessibility for talent, which by the way is totally home run. What weird things have happened that you've seen? Um, that's >>Uh, it's, it's weird, but it's good that an awful lot of people giving presentations have learned to tighten their message and get to the damn point because most people are not gonna get up from a front row seat in a conference hall, midway through your Aing talk and go somewhere else. But they will change a browser tab and you won't get them back. You've gotta be on point. You've gotta be compelling if it's going to be a virtual discussion. >>Yeah. And also turn off your IMEs too. >>Oh yes. It's always fun in the, in the meetings when you're talking to someone and their co is messaging them about, should we tell 'em about this? And I'm sitting there reading it and it's >>This guy is really weird. Like, >>Yes I am and I bring it into the conversation and then everyone's uncomfortable. It goes, wow. >>Why not? I love when my wife yells at me over I message. When I'm on a business call, like, do you wanna take that about no, I'm good. >>No, no. It's better off. I don't. No, the only encourager it's fine. >>My kids. Excellent. Yeah. That's fun again. That's another weird thing. And, and then group behavior is weird. Now people are looking at, um, communities differently. Yes. Very much so, because if you're fatigued on content, people are looking for the personal aspect. You're starting to see much more of like yeah. Another virtual event. They gotta get better. One and two who's there. >>Yeah. >>The person >>That's a big part of it too is the human stories are what are being more and more interesting. Don't get up here and tell me about your product and how brilliant you are and how you built it. That's great. If I'm you, or if I wanna work with you or I want to compete with you, or I wanna put on my engineering hat and build it myself. Cause why would I buy anything? That's more than $8. But instead, tell me about the problem. Tell me about the painful spot that you specialize in. Tell me a story there. >>I, I >>Think that gets a glimpse in a hook and >>Makes more, more, I think you nailed it. Scaling storytelling. Yes. And access to better people because they don't have to be there in person. I just did it thing. I never, we never would've done the queue. We did. Uh, Amazon stepped up in sponsors. Thank you, Amazon for sponsoring international women's day, we did 30 interviews, APAC. We did five regions and I interviewed this, these women in Asia, Pacific eight, PJ, they called for in this world. And they're amazing. I never would've done those interviews cuz I never, would've seen 'em at an event. I never would've been in Japan or Singapore to access them. And now they're in the index. They're in the network. They're collaborating on LinkedIn. So a threads are developing around connections that I've never seen before. Yes. Around the content, >>Absolutely >>Content value plus >>The networking. And that is the next big revelation of this industry is going to realize you have different companies. And in Amazon's case, different service teams, all, all competing with each other, but you have the container group and you have the database group and you have the message cuing group. But customers don't really want to build things from spare parts. They want a solution to a problem. I want to build an app that does Twitter for pets or whatever it is I'm trying to do. I don't wanna basically have to pick and choose and fill my shopping cart with all these different things. I want something that's gonna give me what I'm trying to get as close to turnkey as possible. Moving up the stack. That is the future. And just how it gets here is gonna be >>Well we're here with Corey Quinn, the master of the master of content here in the a ecosystem. Of course we we've been following up in the beginnings. Great guy. Check out his blog, his site, his newsletter screaming podcast. Cory, final question for you. Uh, what do you hear doing what's on your agenda this week in San Francisco and give a plug for the duck build group. What are you guys doing? I know you're hiring some people what's on the table for the company. What's your focus this week and put a plug in for the group. >>I'm here as a customer and basically getting outta my cage cuz I do live here. It's nice to actually get out and talk to folks who are doing interesting things at the duck build group. We solve one problem. We fixed the horrifying AWS bill, both from engineering and architecture, advising as well as negotiating AWS contracts because it turns out those things are big and complicated. And of course my side media projects last week in aws.com, we are, it it's more or less a content operation where I indulge my continual and ongoing law of affair with the sound of my own voice. >><laugh> and you good. It's good content. It's on, on point fun, Starky and relevant. So thanks for coming to the cube and sharing with us. Appreciate it. No, thank you. Fun. You. Okay. This the cube covers here in San Francisco, California, the cube is back at to events. These are the summits, Amazon web services summits. They happen all over the world. We'll be in New York and obviously we're here in San Francisco this week. I'm John furry. Keep, keep it right here. We'll be back with more coverage after this short break. Okay. Welcome back everyone. This's the cubes covers here in San Francisco, California, we're live on the show floor of AWS summit, 2022. I'm John for host of the cube and remember AWS summit in New York city coming up this summer, we'll be there as well. And of course reinvent the end of the year for all the cube coverage on cloud computing and AWS. The two great guests here from the APN global APN se Jenko and Jeff Grimes partner leader, Jeff and se is doing partnerships global APN >>AWS global startup program. Yeah. >>Okay. Say that again. >>AWS global startup program. >>That's the official name. >>I love >>It too long, too long for me. Thanks for coming on. Yeah, of course. Appreciate it. Tell us about what's going on with you guys. What's the, how was you guys organized? You guys we're obviously were in San Francisco bay area, Silicon valley, zillions of startups here, New York. It's got another one we're gonna be at tons of startups. Lot of 'em getting funded, big growth and cloud big growth and data security, hot and sectors. >>Absolutely. >>So maybe, maybe we could just start with the global startup program. Um, it's essentially a white glove service that we provide to startups that are built on AWS. And the intention there is to help identify use cases that are being built on top of AWS. And for these startups, we want to provide white glove support in co building products together. Right. Um, co-marketing and co-selling essentially, um, you know, the use cases that our customers need solved, um, that either they don't want to build themselves or are perhaps more innovative. Um, so the, a AWS global startup program provides white glove support, dedicated headcount for each one of those pillars. Um, and within our program, we've also provided incentives, programs go to market activities like the AWS startup showcase that we've built for these startups. >>Yeah. By the way, start AWS startups.com is the URL, check it out. Okay. So partnerships are key. Jeff, what's your role? >>Yeah. So I'm responsible for leading the overall F for, for the AWS global startup program. Um, so I've got a team of partner managers that are located throughout the us, uh, managing a few hundred startup ISVs right now. <laugh> >>Yeah, I got >>A lot. We've got a lot. >>There's a lot. I gotta, I gotta ask the tough question. Okay. I'm I'm a startup founder. I got a team. I just got my series a we're grown. I'm trying to hire people. I'm super busy. What's in it for me. Yeah. What do you guys bring to the table? I love the white glove service, but translate that what's in it. What do I get out of it? What's >>A good story. Good question. I focus, I think. Yeah, because we get, we get to see a lot of partners building their businesses on AWS. So, you know, from our perspective, helping these partners focus on what, what do we truly need to build by working backwards from customer feedback, right? How do we effectively go to market? Because we've seen startups do various things, um, through trial and error, um, and also just messaging, right? Because oftentimes partners or rather startups, um, try to boil the ocean with many different use cases. So we really help them, um, sort of laser focus on what are you really good at and how can we bring that to the customer as quickly as possible? >>Yeah. I mean, it's truly about helping that founder accelerate the growth of their company. Yeah. Right. And there's a lot that you can do with AWS, but focus is truly the key word there because they're gonna be able to find their little piece of real estate and absolutely deliver incredible outcomes for our customers. And then they can start their growth curve there. >>What are some of the coolest things you've seen with the APN that you can share publicly? I know you got a lot going on there, a lot of confidentiality. Um, but you know, we're here lot of great partners on the floor here. I'm glad we're back at events. Uh, a lot of stuff going on digitally with virtual stuff and, and hybrid. What are some of the cool things you guys have seen in the APN that you can point to? >>Yeah, absolutely. I mean, I can point to few, you can take them. Sure. So, um, I think what's been fun over the years for me personally, I came from a startup, ran sales at an early stage startup and, and I went through the whole thing. So I have a deep appreciation for what these guys are going through. And what's been interesting to see for me is taking some of these early stage guys, watching them progress, go public, get acquired, and see that big day mm-hmm <affirmative>, uh, and being able to point to very specific items that we help them to get to that point. Uh, and it's just a really fun journey to watch. >>Yeah. I, and part of the reason why I really, um, love working at the AWS, uh, global startup program is working with passionate founders. Um, I just met with a founder today that it's gonna, he's gonna build a very big business one day, um, and watching them grow through these stages and supporting that growth. Um, I like to think of our program as a catalyst for enterprise sort of scale. Yeah. Um, and through that we provide visibility, credibility and growth opportunities. >>Yeah. A lot, a lot of partners too. What I found talking to staff founders is when they have that milestone, they work so hard for it. Whether it's a B round C round Republic or get bought. Yeah. Um, then they take a deep breath and they look back at wow, what a journey it's been. So it's kind of emotional for sure. Yeah. Still it's a grind. Right? You gotta, I mean, when you get funding, it's still day one. You don't stop. It's no celebrate, you got a big round or valuation. You still gotta execute >>And look it's hypercompetitive and it's brutally difficult. And our job is to try to make that a little less difficult and navigate those waters right. Where everyone's going after similar things. >>Yeah. I think as a group element too, I observe that startups that I, I meet through the APN has been interesting because they feel part of AWS. Yeah, totally. As a group of community, as a vibe there. Um, I know they're hustling, they're trying to make things happen. But at the same time, Amazon throws a huge halo effect. I mean, that's a huge factor. I mean, yeah. You guys are the number one cloud in the business, the growth in every sector is booming. Yeah. And if you're a startup, you don't have that luxury yet. And look at companies like snowflake, they're built on top of AWS. Yeah. I mean, people are winning by building on AWS. >>Yeah. And our, our, our program really validates their technology first. So we have, what's called a foundation's technical review that we put all of our startups through before we go to market. So that when enterprise customers are looking at startup technology, they know that it's already been vetted. And, um, to take that a step further and help these partners differentiate, we use programs like the competency programs, the DevOps compet, the, the security competency, which continues to help, um, provide sort of a platform for these startups, help them differentiate. And also there's go to market benefits that are associated with that. >>Okay. So let me ask the, the question that's probably on everyone's mind, who's watching. Certainly I asked this a lot. There's a lot of companies startups out there who makes the, is there a criteria? Oh God, it's not like his sports team or anything, but like sure. Like there's activate program, which is like, there's hundreds of thousands of startups out there. Not everyone is at the APN. Right? Correct. So ISVs again, that's a whole nother, that's a more mature partner that might have, you know, huge market cap or growth. How do you guys focus? How do you guys focus? I mean, you got a good question, you know, a thousand flowers blooming all the time. Is there a new way you guys are looking at it? I know there's been some talk about restructure or, or new focus. What's the focus. >>Yeah. It's definitely not an easy task by any means. Um, but you know, I recently took over this role and we're really trying to establish focus areas, right. So obviously a lot of the fees that we look after our infrastructure ISVs, that's what we do. Uh, and so we have very specific pods that look after different type of partners. So we've got a security pod, we've got a DevOps pod, we've got core infrastructure, et cetera. And really we're trying to find these ISVs that can solve, uh, really interesting AWS customer challenges. >>So you guys have a deliberate, uh, focus on these pillars. So what infrastructure, >>Security, DevOps, and data and analytics, and then line of business >>Line of business line, like web marketing >>Solutions, business apps, >>Business, this owner type thing. Exactly. >>Yeah, exactly. >>So solutions there. Yeah. More solutions and the other ones are like hardcore. So infrastructure as well, like storage, backup, ransomware of stuff, or, >>Uh, storage, networking. >>Okay. Yeah. The classic >>Database, et cetera. Right. >>And so there's teams on each pillar. >>Yep. So I think what's, what's fascinating for the startup that we cover is that they've got, they truly have support from a build market sell perspective. Right. So you've got someone who's technical to really help them get the technology, figured out someone to help them get the marketing message dialed and spread, and then someone to actually do the co-sell, uh, day to day activities to help them get in front of customers. >>Probably the number one request that we always ask for Amazon is can we waste that sock report? Oh, download it, the console, which we use all the time. Exactly. But security's a big deal. I mean, you know, SREs are evolving, that role of DevOps is taking on dev SecOps. Um, I, I could see a lot of customers having that need for a relationship to move things faster. Do you guys provide like escalation or is that a part of a service or not, not part of a, uh, >>Yeah, >>So the partner development manager can be an escalation point. Absolutely. Think of them as an extension of your business inside of AWS. >>Great. And you guys how's that partner managers, uh, measure >>On those three pillars. Right. Got it. Are we billing, building valuable use cases? So product development go to market, so go to market activities, think blog, posts, webinars, case studies, so on and so forth. And then co-sell not only are we helping these partners win their current opportunities that they are sourcing, but can we also help them source net new deals? Yeah. Right. That's >>Very important. I mean, top asked from the partners is get me in front of customers. Right. Um, not an easy task, but that's a huge goal of ours to help them grow their top >>Line. Right. Yeah. In fact, we had some interviews here on the cube earlier talking about that dynamic of how enterprise customers are buying. And it's interesting, a lot more POCs. I have one partner here that you guys work with, um, on observability, they got a huge POC with capital one mm-hmm <affirmative> and the enterprises are engaging the startups and bringing them in. So the combination of open source software enterprises are leaning into that hard and bringing young growing startups in mm-hmm <affirmative>. Yep. So I could see that as a huge service that you guys can bring people in. >>Right. And they're bringing massively differentiated technology to the table. Mm-hmm <affirmative> the challenge is they just might not have the brand recognition that the big guys have. And so that it's our job is how do you get that great tech in front of the right situations? >>Okay. So my next question is about the show here, and then we'll talk globally. So here in San Francisco sure. You know, Silicon valley bay area, San Francisco bay area, a lot of startups, a lot of VCs, a lot of action. Mm-hmm <affirmative> so probably a big market for you guys. Yeah. So what's exciting here in SF and then outside SF, you guys have a global program, you see any trends that are geography based or is it sure areas more mature? There's certain regions that are better. I mean, I just interviewed a company here that's doing, uh, AWS edge really well in these cases. It's interesting that these, the partners are filling a lot of holes and gaps in the opportunities with AWS. So what's exciting here. And then what's the global perspective. >>Yeah, totally. So obviously a ton of partners, I, from the bay area that we support. Um, but we're seeing a lot of really interesting technology coming out of AMEA specifically. Yeah. Uh, and making a lot of noise here in the United States, which is great. Um, and so, you know, we definitely have that global presence and, and starting to see super differentiated technology come out of those regions. >>Yeah. Especially Tel Aviv. Yeah. >>Amy real quick, before you get in the surge. It's interesting. The VC market in, in Europe is hot. Yeah. They've got a lot of unicorns coming in. We've seen a lot of companies coming in. They're kind of rattling their own, you know, cage right now. Hey, look at us. We'll see if they crash, you know, but we don't see that happening. I mean, people have been projecting a crash now in, in the startup ecosystem for at least a year. It's not crashing. In fact, funding's up. >>Yeah. The pandemic was hard on a lot of startups for sure. Yeah. Um, but what we've seen is many of these startups, they, as quickly as they can grow, they can also pivot as, as, as well. Um, and so I've actually seen many of our startups grow through the pandemic because their use cases are helping customers either save money, become more operationally efficient and provide value to leadership teams that need more visibility into their infrastructure during a pandemic. >>It's an interesting point. I talked to Andy jazzy and Adam Leski both say the same thing during the pandemic necessity, the mother of all invention. Yep. And startups can move fast. So with that, you guys are there to assist if I'm a startup and I gotta pivot cuz remember iterate and pivot, iterate and pivot. So you get your economics, that's the playbook of the ventures and the models. >>Exactly. How >>Do you guys help me do that? Give me an example of walk me through, pretend me I'm a startup. Hey, I am on the cloud. Oh my God. Pandemic. They need video conferencing. Hey cube. Yeah. What do I need? Surge? What, what do I do? >>That's a good question. First thing is just listen. Yeah. I think what we have to do is a really good job of listening to the partner. Um, what are their needs? What is their problem statement and where do they want to go at the end of the day? Um, and oftentimes because we've worked with so many successful startups, they have come out of our program. We have, um, either through intuition or a playbook, determined what is gonna be the best path forward and how do we get these partners to stop focusing on things that will eventually, um, just be a waste of time yeah. And, or not provide, or, you know, bring any fruit to the table, which, you know, essentially revenue. >>Well, we love star rights here in the cube because one, um, they have good stories. They're oil and cutting edge, always pushing the envelope and they're kind of disrupting someone else. Yeah. And so they have an opinion. They don't mind sharing on camera. So love talking to startups. We love working with you guys on our startup showcases startups.com. Check out AWS startups.com and you got the showcases, uh, final. We I'll give you guys the last word. What's the bottom line bumper sticker for AP the global APN program. Summarize the opportunity for startups, what you guys bring to the table and we'll close it out. Totally start >>With you. Yeah. I think the AWS global startup program's here to help companies truly accelerate their business full stop. Right. And that's what we're here for. I love it. >>It's a good way to, it's a good way to put it Dito. >>Yeah. All right, sir. Thanks for coming on. Thanks John. Great to see you love working with you guys. Hey, startups need help. And the growing and huge market opportunities, the shift cloud scale data engineering, security infrastructure, all the markets are exploding in growth because of the digital transformation of the realities here. Open source and cloud all making it happen here in the cube in San Francisco, California. I'm John furrier, your host. Thanks for watching >>John. >>Hello and welcome back to the cubes live coverage here in San Francisco, California for AWS summit, 2022. I'm John for host of the cube. Uh, two days of coverage, AWS summit, 2022 in New York city. Coming up this summer, we'll be there as well at events are back. The cube is back of course, with the cube virtual cube hybrid, the cube.net, check it out a lot of content this year, more than ever, a lot more cloud data cloud native, modern applic is all happening. Got a great guest here. Jeremy Burton, Cub alumni, uh, CEO of observe Inc in the middle of all the cloud scale, big data observability Jeremy. Great to see you. Thanks >>Always great to come and talk to you on the queue, man. It's been been a few years, so, >>Um, well you, you got your hands. You're in the trenches with great startup, uh, good funding, great board, great people involved in the observability hot area, but also you've been a senior executive president of Dell, uh, EMC, uh, 11 years ago you had a, a vision and you actually had an event called cloud meets big data. Um, yeah. And it's here. You predicted it 11 years ago. Um, look around it's cloud meets big data. >>Yeah. I mean the, the cloud thing I think, you know, was, was probably already a thing, but the big data thing I do claim credit for, for, for sort of catching that bus out, um, you know, we, we were on the, the, the bus early and, and I think it was only inevitable. Like, you know, if you could bring the economics and the compute of cloud to big data, you, you could find out things you could never possibly imagine. >>So you're close to a lot of companies that we've been covering deeply. Snowflake obviously are involved, uh, the board level, you know, the founders, you know, the people there cloud, you know, Amazon, you know, what's going on here? Yeah. You're doing a startup as the CEO at the helm, uh, chief of observ, Inc, which is an observability, which is to me in the center of this confluence of data engineering, large scale integrations, um, data as code integrating into applic. I mean, it's a whole nother world developing, like you see with snowflake, it means snowflake is super cloud as we call it. So a whole nother wave is here. What's your, what's this wave we're on what's how would you describe the wave? >>Well, a couple of things, I mean, people are, I think riding more software than, than ever fall. Why? Because they've realized that if, if you don't take your business online and offer a service, then you become largely irrelevant. And so you you've got a whole set of new applications. I think, I think more applications now than any point. Um, not, not just ever, but the mid nineties, I always looked at as the golden age of application development. Now back then people were building for windows. Well, well now they're building for things like AWS is now the platform. Um, so you've got all of that going on. And then at the same time, the, the side effect of these applications is they generate data and lots of data and the, you know, the sort of the transactions, you know, what you bought today or something like that. But then there's what we do, which is all the telemetry data, all the exhaust fumes. And I think people really are realizing that their differentiation is not so much their application. It's their understanding of the data. Can, can I understand who my best customers are, what I sell today. If people came to my website and didn't buy, then I not, where did they drop off all of that they wanna analyze. And, and the answers are all in the data. The question is, can you understand it >>In our last startup showcase, we featured data as code. One of the insights that we got out of that I wanna get your opinion on our reaction to is, is that data used to be put into a data lake and turns into a data swamp or throw into the data warehouse. And then we'll do some query, maybe a report once in a while. And so data, once it was done, unless it was real time, even real time was not good anymore after real time. That was the old way. Now you're seeing more and more, uh, effort to say, let's go look at the data cuz now machine learning is getting better. Not just train once mm-hmm <affirmative> they're iterating. Yeah. This notion of iterating and then pivoting, iterating and pivoting. Yeah, that's a Silicon valley story. That's like how startups work, but now you're seeing data being treated the same way. So now you have another, this data concept that's now yeah. Part of a new way to create more value for the apps. So this whole, this whole new cycle of >>Yeah. >>Data being reused and repurposed and figured out and >>Yeah, yeah. I'm a big fan of, um, years ago. Uh, uh, just an amazing guy, Andy McAfee at the MIT C cell labs I spent time with and he, he had this line, which still sticks to me this day, which is look I'm I'm. He said I'm part of a body, which believes that everything is a matter of data. Like if you, of enough data, you can answer any question. And, and this is going back 10 years when he was saying these kind of things and, and certainly, you know, research is on the forefront. But I, I think, you know, starting to see that mindset of the, the sort of MIT research be mainstream, you know, in enterprises, they they're realizing that yeah, it is about the data. You know, if I can better understand my data better than my competitor than I've got an advantage. And so the question is is, is how, what, what technologies and what skills do I need in my organization to, to allow me to do that. So >>Let's talk about observing you the CEO of, okay. Given you've seen the wave before you're in the front lines of observability, which again is in the center of all this action what's going on with the company. Give a quick minute to explain, observe for the folks who don't know what you guys do. What's the company doing? What's the funding status, what's the product status and what's the customer status. Yeah. >>So, um, we realized, you know, a handful of years ago, let's say five years ago that, um, look, the way people are building applications is different. They they're way more functional. They change every day. Uh, but in some respects they're a lot more complicated. They're distributed. They, you know, microservices architectures and when something goes wrong, um, the old way of troubleshooting and solving problems was not gonna fly because you had SA so much change going into production on a daily basis. It was hard to tell like where the problem was. And so we thought, okay, it's about time. Somebody looks at the exhaust fumes from this application and all the telemetry data and helps people troubleshoot and make sense of the problems that they're seeing. So, I mean, that's observability, it's actually a term that goes back to the 1960s. It was a guy called, uh, Rudolph like, like everything in tech, you know, it's, it's a reinvention of, of something from years gone by. >>But, um, there's a guy called, um, Rudy Coleman in 1960s, kinder term. And, and, and the term was been able to determine the state of a system by looking at its external outputs. And so we've been going on this for, uh, the best part of the all years now. Um, it took us three years just to build the product. I think, I think what people don't appreciate these days often is the barrier to entry in a lot of these markets is quite high. You, you need a lot of functionality to have something that's credible with a customer. Um, so yeah, this last year we, we, we did our first year selling, uh, we've got about 40 customers now. <affirmative> um, we just we've got great investors for the hill ventures. Uh, I mean, Mike SP who was, you know, the, the guy who was the, really, the first guy in it snowflake and the, the initial investor were fortunate enough to, to have Mike on our board. And, um, you know, part of the observed story yeah. Is closely knit with snowflake because all of that time data know we, we still are in there. >>So I want to get, uh, >>Yeah. >>Pivot to that. Mike Pfizer, snowflake, Jeremy Burton, the cube kind of, kind of same thinking this idea of a super cloud or what snowflake became snowflake is massively successful on top of AWS. Mm-hmm <affirmative> and now you're seeing startups and companies build on top of snowflake. Yeah. So that's become an entrepreneurial story that we think that to go big in the cloud, you can have a cloud on a cloud, uh, like as Jerry, Jerry Chan and Greylock calls it castles in the cloud where there are moats in the cloud. So you're close to it. I know you're doing some stuff with snowflake. So a startup, what's your view on building on top of say a snowflake or an AWS, because again, you gotta go where the data is. You need all the data. >>Yeah. So >>What's your take on that? >>I mean, having enough gray hair now, um, you know, again, in tech, I think if you wanna predict the future, look at the past. And, uh, you know, to many years ago, 25 years ago, I was at a, a smaller company called Oracle and an Oracle was the database company. And, uh, their, their ambition was to manage all of the world's transactional data. And they built on a platform or a couple of platforms, one, one windows, and the other main one was Solaris. And so at that time, the operator and system was the platform. And, and then that was the, you know, ecosystem that you would compete on top of. And then there were companies like SAP that built applications on top of Oracle. So then wind the clock forward 25 years gray hairs. <laugh> the platform, isn't the operating system anymore. The platform is AWS, you know, Google cloud. I gotta probably look around if I say that in. Yeah. It's >>Okay. But hyperscale, yeah. CapX built out >>That is the new platform. And then snowflake comes along. Well, their aspiration is to manage all of the, not just human generator data, but machine generated data in the world of cloud. And I think they they've done an amazing job doing for the, I'd say, say the, the big data world, what Oracle did for the relational data world, you know, way back 25 years ago. And then there are folks like us come along and, and of course my ambition would be, look, if, if we can be as successful as an SAP building on top of snow snowflake, uh, as, as they were on top of Oracle, then, then we'd probably be quite happy. >>So you're building on top of snowflake. >>We're building on top of snowflake a hundred percent. And, um, you know, I've had folks say to me, well, aren't you worried about that? Isn't that a risk? It's like, well, that that's a risk. You >>Still on the board. >>Yeah. I'm still on the board. Yeah. That that's a risk I'm prepared to take <laugh> I am long on snowflake you, >>Well, you're in a good spot. Stay on the board, then you'll know what's going on. Okay. No know just doing, but the, this is a real dynamic. It is. It's not a one off it's. >>Well, and I do believe as well that the platform that you see now with AWS, if you look at the revenues of AWS is an order of magnitude more than Microsoft was 25 years ago with windows mm-hmm <affirmative>. And so I believe the opportunity for folks like snowflake and folks like observe it's an order of magnitude more than it was for the Oracle and the SAPs of the old >>World. Yeah. And I think this is really, I think this is something that this next generation of entrepreneurship is the go big scenario is you gotta be on a platform. Yeah. >>It's quite >>Easy or be the platform, but it's hard. There's only like how many seats are at that table left. >>Well, value migrates up over time. So, you know, when the cloud thing got going, there were probably 10, 20, 30, you know, Rackspace and there's 1,000,001 infrastructure, a service platform as a service, my, my old, uh, um, employee EMC, we had pivotal, you know, pivotal was a platform as a service. You don't hear so much about it, these, but initially there's a lot of players and then it consolidates. And then to, to like extract, uh, a real business, you gotta move up, you gotta add value, you gotta build databases, then you gotta build applications. So >>It's interesting. Moving from the data center of the cloud was a dream for starters. Cause then if the provision, the CapEx, now the CapEx is in the cloud. Then you build on top of that, you got snowflake you on top of that, the >>Assumption is almost that compute and storage is free. I know it's not quite free. Yeah. It's >>Almost free, >>But, but you can, you know, as an application vendor, you think, well, what can I do if I assume compute and storage is free, that's the mindset you've gotta get into. >>And I think the platform enablement to value. So if I'm an entrepreneur, I'm gonna get a serious, multiple of value in what I'm paying. Yeah. Most people don't even blanket their Avis pills unless they're like massively huge. Yeah. Then it's a repatriation question or whatever discount question, but for most startups or any growing company, the Amazon bill should be a small factor. >>Yeah. I mean, a lot of people, um, ask me like, look, you're building on snowflake. Um, you, you know, you are, you are, you're gonna be, you're gonna be paying their money. How, how, how, how does that work with your business model? If you're paying them money, you know, do, do you have a viable business? And it's like, well, okay. I, we could build a database as well in observe, but then I've got half the development team working on in that will never be as good as snowflake. And so we made the call early on that. No, no, we, we wanna innovate above the database. Yeah. Right. Snowflake are doing a great job of innovating on the database and, and the same is true of something like Amazon, like, like snowflake could have built their own cloud and their own platform, but they didn't. >>Yeah. And what's interesting is that Dave <inaudible> and I have been pointing this out and he's actually more on snowflake. I I've been looking at data bricks, um, and the same dynamics happening, the proof is the ecosystem. Yeah. I mean, if you look at Snowflake's ecosystem right now and data bricks it's exploding. Right. I mean, the shows are selling out the floor. Space's book. That's the old days at VMware. Yeah. The old days at AWS >>One and for snowflake and, and any platform provider, it's a beautiful thing. You know, we build on snowflake and we pay them money. They don't have to sell to us. Right. And we do a lot of the support. And so the, the economics work out really, really well. If you're a platform provider and you've got a lot of ecosystems. >>Yeah. And then also you get, you get a, um, a trajectory of, uh, economies of scale with the institutional knowledge of snowflake integrations, right. New products. You're scaling that function with the, >>Yeah. I mean, we manage 10 petabytes of data right now. Right. When I, when I, when I arrived at EMC in 2010, we had, we had one petabyte customer. And, and so at observe, we've been only selling the product for a year. We have 10 petabytes of data under management. And so been able to rely on a platform that can manage that is invaluable, >>You know, but Jeremy Greek conversation, thanks for sharing your insights on the industry. Uh, we got a couple minutes left. Um, put a plug in for observe. What do you guys, I know you got some good funding, great partners. I don't know if you can talk about your, your, your POC customers, but you got a lot of high ends folks that are working with you. You getting traction. Yeah. >>Yeah. >>Scales around the corner. Sounds like, are you, is that where you are scale? >>Got, we've got a big announcement coming up in two or weeks. We've got, we've got new funding, um, which is always great. Um, the product is, uh, really, really close. I think, as a startup, you always strive for market fit, you know, which is at which point can you just start hiring salespeople? And the revenue keeps going. We're getting pretty close to that right now. Um, we've got about 40 SaaS companies run on the platform. They're almost all AWS Kubernetes, uh, which is our sweet spot to begin with, but we're starting to get some really interesting, um, enterprise type customers. We're, we're, you know, F five networks we're POC in right now with capital one, we got some interest in news around capital one coming up. I, I can't share too much, uh, but it's gonna be exciting. And, and like I saids hill continued to, to, to stick, >>I think capital one's a big snowflake customer as well. Right. They, >>They were early in one of the things that attracted me to capital one was they were very, very good with snowflake early on. And, and they put snowflake in a position in the bank where they thought that snowflake could be successful. Yeah. And, and today that, that is one of Snowflake's biggest accounts. >>So capital one, very innovative cloud, obviously AIOS customer and very innovative, certainly in the CISO and CIO, um, on another point on where you're at. So you're, Prescale meaning you're about to scale, right? So you got POCs, what's that trick GE look like, can you see around the corner? What's, what's going on? What's on, around the corner. That you're, that you're gonna hit the straight and narrow and, and gas it >>Fast. Yeah. I mean, the, the, the, the key thing for us is we gotta get the product. Right. Um, the nice thing about having a guy like Mike Pfizer on the board is he doesn't obsess about revenue at this stage is questions that the board are always about, like, is the product, right? Is the product right? Is the product right? If you got the product right. And cuz we know when the product's right, we can then scale the sales team and, and the revenue will take care of itself. Yeah. So right now all the attention is on the product. Um, the, this year, the exciting thing is we were, we're adding all the tracing visualizations. So people will be able to the kind of things that back in the day you could do with the new lakes and, and AppDynamics, the last generation of, of APM tools, you're gonna be able to do that within observe. And we've already got the logs and the metrics capability in there. So for us, this year's a big one, cuz we sort of complete the trifecta, you know, the, the logs, >>What's the secret sauce observe. What if you had the, put it into a, a sentence what's the secret sauce? I, >>I, I think, you know, an amazing founding engineering team, uh, number one, I mean, at the end of the day, you have to build an amazing product and you have to solve a problem in a different way. And we've got great long term investors. And, and the biggest thing our investors give is actually it's not just money. It gives us time to get the product, right. Because if we get the product right, then we can get the growth. >>Got it. Final question. Why I got you here? You've been on the enterprise business for a long time. What's the buyer landscape out there. You got people doing POCs on capital one scale. So we know that goes on. What's the appetite at the buyer side for startups and what are their requirements that you're seeing? Uh, obviously we're seeing people go in and dip into the startup pool because new ways to refactor their business restructure. So a lot happening in cloud. What's the criteria. How are enterprises engaging in with startups? >>Yeah. I mean, enterprises, they know they've gotta spend money transforming the business. I mean, this was, I almost feel like my old Dell or EMC self there, but, um, what, what we were saying five years ago is happening. Um, everybody needs to figure out out a way to take their, this to this digital world. Everybody has to do it. So the nice thing from a startup standpoint is they know at times they need to risk or, or take a bet on new technology in order to, to help them do that. So I think you've got buyers that a have money, uh, B prepared to take risks and it's, it's a race against time to, you know, get their, their offerings in this. So a new digital footprint, >>Final, final question. What's the state of AWS. Where do you see them going next? Obviously they're continuing to be successful. How does cloud 3.0, or they always say it's day one, but it's more like day 10. Uh, but what's next for Aw. Where do they go from here? Obviously they're doing well. They're getting bigger and bigger. >>Yeah. They're, they're, it's an amazing story. I mean, you know, we we're, we're on AWS as well. And so I, I think if they keep nurturing the builders in the ecosystem, then that is their superpower. They, they have an early leads. And if you look at where, you know, maybe the likes of Microsoft lost the plot in the, in the late it was, they stopped, uh, really caring about developers and the folks who were building on top of their ecosystem. In fact, they started buying up their ecosystem and competing with people in their ecosystem. And I see with AWS, they, they have an amazing head start and if they did more, you know, if they do more than that, that's, what's gonna keep the jut rolling for many years to come. Yeah, >>They got the silicone and they got the staff act, developing Jeremy Burton inside the cube, great resource for commentary, but also founding with the CEO of a company called observing in the middle of all the action on the board of snowflake as well. Um, great start. Thanks for coming on the cube. >>Always a pleasure. >>Okay. Live from San Francisco to cube. I'm John for your host. Stay with us more coverage from San Francisco, California after the short break. >>Hello. Welcome back to the cubes coverage here live in San Francisco, California. I'm John furrier, host of the cubes cube coverage of AWS summit 2022 here in San Francisco. We're all the developers of the bay area at Silicon valley. And of course, AWS summit in New York city is coming up in the summer. We'll be there as well. SF and NYC cube coverage. Look for us. Of course, reinforcing Boston and re Mars with the whole robotics AI thing, all coming together. Lots of coverage stay with us today. We've got a great guest from Deibel VC. John Skoda, founding partner, entrepreneurial venture is a venture firm. Your next act, welcome to the cube. Good to see you. >>Good to see you, Matt. I feel like it's been forever since we've been able to do something in person. Well, >>I'm glad you're here because we run into each other all the time. We've known each other for over a decade. Um, >><affirmative>, it's been at least 10 years now, >>At least 10 years more. And we don't wanna actually go back as frees back, uh, the old school web 1.0 days. But anyway, we're in web three now. So we'll get to that in >>Second. We, we are, it's a little bit of a throwback to the path though, in my opinion, >><laugh>, it's all the same. It's all distributed computing and software. We ran each other in cube con you're investing in a lot of tech startup founders. Okay. This next level, next gen entrepreneurs have a new makeup and it's software. It's hardcore tech in some cases, not hardcore tech, but using software is take old something old and make it better, new, faster. <laugh>. So tell us about Deibel what's the firm. I know you're the founder, uh, which is cool. What's going on. Explain >>What you're doing. I mean, you remember I'm a recovering entrepreneur, right? So of course I, I, I, >>No, you're never recovering. You're always entrepreneur >>Always, but we are also always recovering. So I, um, started my first company when I was 24. If you remember, before there was Facebook and friends, there was instant messaging. People were using that product at work every day, they were creating a security vulnerability between their network and the outside world. So I plugged that hole and built an instant messaging firewall. It was my first company. The company was called, I am logic and we were required by Symantec. Uh, then spent 12 years investing in the next generation of our companies, uh, early investor in open source companies and cloud companies and spent a really wonderful 12 years, uh, at a firm called NEA. So I, I feel like my whole life I've been either starting enterprise software companies or helping founders start enterprise software companies. And I'll tell you, there's never been a better time than right now to start enter price software company. >>So, uh, the passion for starting a new firm was really a recognition that founders today that are starting in an enterprise software company, they, they tend to be, as you said, a more technical founder, right? Usually it's a software engineer or a builder mm-hmm <affirmative>, uh, they are building products that are serving a slightly different market than what we've traditionally seen in enterprise software. Right? I think traditionally we've seen it buyers or CIOs that have agendas and strategies, which, you know, purchased software that has traditionally bought and sold tops down. But, you know, today I think the most successful enterprise software companies are the ones that are built more bottoms up and have more technical early opts. And generally speaking, they're free to use. They're free to try. They're very commonly community source or open source companies where you have a large technical community that's supporting them. So there's a, there's kind of a new normal now I think in great enterprise software. And it starts with great technical founders with great products and great and emotions. And I think there's no better place to, uh, service those people than in the cloud and uh, in, in your community. >>Well, first of all, congratulations, and by the way, you got a great pedigree and great background, super smart admire of your work and your, and, and your founding, but let's face it. Enterprise is hot because digital transformation is all companies. The is no, I mean, consumer is enterprise. Now everything is what was once a niche. No, I won't say niche category, but you know, not for the faint of heart, you know, investors, >>You know, it's so funny that you say that enterprise is hot because you, and I feel that way now. But remember, like right now, there's also a giant tech in VC conference in Miami <laugh> it's covering cryptocurrencies and FCS and web three. So I think beauty is definitely in the eye of the beholder <laugh> but no, I, I will tell you, >>Ts is one big enterprise, cuz you gotta have imutability you got performance issues. You have, I IOPS issues. Well, and, >>And I think all of us here that are, uh, maybe students of history and have been involved in, open in the cloud would say that we're, you know, much of what we're doing is, uh, the predecessors of the web web three movement. And many of us I think are contributors to the web three movement. >>The hype is definitely that three. >>Yeah. But, but >>You know, for >>Sure. Yeah, no, but now you're taking us further east to Miami. So, uh, you know, look, I think, I, I think, um, what is unquestioned with the case now? And maybe it's, it's more obvious the more time you spend in this world is this is the fastest growing part of enterprise software. And if you include cloud infrastructure and cloud infrastructure spend, you know, it is by many men over, uh, 500 billion in growing, you know, 20 to 30% a year. So it it's a, it's a just incredibly fast, >>Let's getting, let's get into some of the cultural and the, the shifts that are happening, cuz again, you, you have the luxury of being in enterprise when it was hard, it's getting easier and more cooler. I get it and more relevant, but it's also the hype of like the web three, for instance. But you know, uh, um, um, the CEO snowflake, okay. Has wrote a book and Dave Valenti and I were talking about it and uh, Frank Luman has says, there's no playbooks. We always ask the CEOs, what's your playbook. And he's like, there's no playbook, situational awareness, always Trump's playbooks. So in the enterprise playbook, oh, higher direct sales force and SAS kind of crushed the, at now SAS is being redefined, right. So what is SAS? Is snowflake a SAS or is that a platform? So again, new unit economics are emerging, whole new situation, you got web three. So to me there's a cultural shift, the young entrepreneurs, the, uh, user experience, they look at Facebook and say, ah, you know, they own all my data. You know, we know that that cliche, um, they, you know, the product. So as this next gen, the gen Z and the millennials come in and our customers and the founders, they're looking at things a little bit differently and the tech better. >>Yeah. I mean, I mean, I think we can, we can see a lot of commonalities across all successful startups and the overall adoption of technology. Uh, and, and I would tell you, this is all one big giant revolution. I call it the user driven revolution. Right. It's the rise of the user. Yeah. And you might say product like growth is currently the hottest trend in enterprise software. It's actually user like growth, right. They're one in the same. So sometimes people think the product, uh, is what is driving. You >>Just pull the >>Product through. Exactly, exactly. And so that's that I, that I think is really this revolution that you see, and, and it does extend into things like cryptocurrencies and web three and, you know, sort of like the control that is taken back by the user. Um, but you know, many would say that, that the origins of this movement maybe started with open source where users were, are contributors, you know, contributors, we're users and looking back decades and seeing how it, how it fast forward to today. I think that's really the trend that we're all writing and it's enabling these end users. And these end users in our world are developers, data engineers, cybersecurity practitioners, right. They're really the users. And they're really the, the beneficiaries and the most, you know, kind of valued people in >>This. I wanna come back to the data engineers in a second, but I wanna make a comment and get your reaction to, I have a, I'm a GenXer technically, so for not a boomer, but I have some boomer friends who are a little bit older than me who have, you know, experienced the sixties. And I've, I've been staying on the cube for probably about eight years now that we are gonna hit a digital hippie revolution, meaning a rebellion against in the sixties was rebellion against the fifties and the man and, you know, summer of love. That was a cultural differentiation from the other one other group, the predecessors. So we're kind of having that digital moment now where it's like, Hey boomers, Hey people, we're not gonna do that anymore. We hate how you organize shit. >>Right. But isn't this just technology. I mean, isn't it, isn't it like there used to be the old adage, like, you know, you would never get fired for buying IBM, but now it's like, you obviously probably would get fired if you bought IBM. And I mean, it's just like the, the, I think, I think >>It's the main for days, those renegades were breaking into Stanford, starting the home brew club. So what I'm trying to get at is that, do you see the young cultural revolution also, culturally, just, this is my identity NFTs to me speak volumes about my, I wanna associate with NFTs, not single sign on. Well, >>Absolutely. And, and I think like, I think you're hitting on something, which is like this convergence of, of, you know, societal trends with technology trends and how that manifests in our world is yes. I think like there is unquestionably almost a religion around the way in which a product is built. Right. And we can use open source, one example of that religion. Some people will say, look, I'll just never try a product in the cloud if it's not open source. Yeah. I think cloud, native's another example of that, right? It's either it's, you know, it either is cloud native or it's not. And I think a lot of people will look at a product and say, look, you know, you were not designed in the cloud era. Therefore I just won't try you. And sometimes, um, like it or not, it's a religious decision, right? It's, it's something that people just believe to be true almost without, uh, necessarily. I mean >>The decision making, let me ask you this next question. As a VC. Now you look at pitch, well, you've made a VC for many years, but you also have the founder, uh, entrepreneurial mindset, but you can get empathize with the founders. You know, hustle is a big part of the, that first founder check, right? You gotta convince someone to part with their ch their money and the first money in which you do a lot of is about believing in the person. So fing, so you make, it is hard. Now you, the data's there, you either have it cloud native, you either have the adaption or traction. So honesty is a big part of that pitch. You can't fake it. Oh, >>AB absolutely. You know, there used to be this concept of like the persona of an entrepreneur, right. And the persona of the entrepreneur would be, you know, somebody who was a great salesperson or somebody who tell a great story. You, I still think that that's important, right? It still is a human need for people to believe in narratives and stories. But having said that you're right, the proof is in the pudding, right? At some point you click download and you try the product and it does what it says it it's gonna do, or it doesn't, or it either stands up to the load test or it doesn't. And so I, I feel like in this new economy that we live in, it's a shift from maybe the storytellers and the creators to, to the builders, right. The people that know how to build great product. And in some ways the people that can build great product yeah. Stand out from the crowd. And they're the ones that can build communities around their products. And, you know, in some ways can, um, you know, kind of own more of the narrative because their products exactly >>The volume back to the user led growth. >>Exactly. And it's the religion of, I just love your product. Right. And I, I, I, um, Doug song was the founder of du security used to say, Hey, like, you know, the, the really like in today's world of like consumption based software, the user is only gonna give you 90 seconds to figure out whether or not you're a company that's easy to do business with. Right. And so you can say, and do all the things that you want about how easy you are to work with. But if the product isn't easy to install, if it's not easy to try, if it's not, if, if the, you know, it's gotta speak to >>The, speak to the user, but let me ask a question now that the people watching who are maybe entrepreneurial entrepreneur, um, masterclass here is in session. So I have to ask you, do you prefer, um, an entrepreneur to come in and say, look at John. Here's where I'm at. Okay. First of all, storytelling's fine. Whether you're an extrovert or introvert, have your style, sell the story in a way that's authentic, but do you, what do you prefer to say? Here's where I'm at? Look, I have an idea. Here's my traction. I think here's my MVP prototype. I need help. Or do you wanna just see more stats? What's the, what's the preferred way that you like to see entrepreneurs come in and engage, engage? >>There's tons of different styles, man. I think the single most important thing that every founder should know is that we, we don't invest in what things are today. We invest in what we think something will become. Right. And I think that's why we all get up in the morning and try to build something different, right? It's that we see the world a different way. We want it to be a different way, and we wanna work every single moment of the day to try to make that vision a reality. So I think the more that you can show people where you want to be, the more likely somebody is gonna align with your vision and, and want to invest in you and wanna be along for the ride. So I, I wholeheartedly believe in showing off what you got today, because eventually we all get down to like, where are we and what are we gonna do together? But, um, no, I >>Show >>The path. I think the single most important thing for any founder and VC relationship is that they have the same vision, uh, have the same vision. You can, you can get through bumps in the road, you can get through short term spills. You can all sorts of things in the middle of the journey can happen. Yeah. But it doesn't matter as much if you share the same long term vision, >>Don't flake out and, and be fashionable with the latest trends because it's over before you can get there. >>Exactly. I think many people that, that do what we do for a living will say, you know, ultimately the future is relatively easy to predict, but it's the timing that's impossible to predict. So you, you know, you sort of have to balance the, you know, we, we know that the world is going this way and therefore we're gonna invest a lot of money to try to make this a reality. Uh, but sometimes it happens in six months. Sometimes it takes six years is sometimes like 16 years. >>Uh, what's the hottest thing in enterprise that you see the biggest wave that people should pay attention to that you're looking at right now with Desel partners, Tebel dot your site. What's the big wave. What's your big >>Wave. There, there's three big trends that we invest in. And they're the, they're the only things we do day in, day out. One is the explosion and open source software. So I think many people think that all software is unquestionably moving to an open source model in some form or another yeah. Tons of reasons to debate whether or not that is gonna happen and on what timeline happening >>Forever. >>But it is, it is accelerating faster than we've ever seen. So I, I think it's, it's one big, massive wave that we continue to ride. Um, second is the rise of data engineering. Uh, I think data engineering is in and of itself now, a category of software. It's not just that we store data. It's now we move data and we develop applications on data. And, uh, I think data is in and of itself as big of a, a market as any of the other markets that we invest in. Uh, and finally, it's the gift that keeps on giving. I've spent my entire career in it. We still feel that security is a market that is under invested. It is, it continues to be the place where people need to continue to invest and spend more money. Yeah. Uh, and those are the three major trends that we run >>And security, you think we all need a dessert do over, right? I mean, do we need a do over in security or is what's the core problem? I, >>I, I keep using this word underinvested because I think it's the right way to think about the problem. I think if you, I think people generally speaking, look at cyber security as an add-on. Yeah. But if you think about it, the whole economy is moving online. And so in, in some ways like security is core to protecting the digital economy. And so it's, it shouldn't be an afterthought, right? It should be core to what everyone is doing. And that's why I think relative to the trillions of dollars that are at stake, uh, I believe the market size for cybersecurity is around 150 billion. And it still is a fraction of what we're, what >>We're and security even boom is booming now. So you get the convergence of national security, geopolitics, internet digital >>That's right. You mean arguably, right? I mean, arguably again, it's the area of the world that people should be spending more time and more money given what to stake. >>I love your thesis. I gotta, I gotta say, you gotta love your firm. Love. You're doing we're big supporters of your mission. Congratulations on your entrepreneurial venture. And, uh, we'll be, we'll be talking and maybe see a Cub gone. Uh, >>Absolutely. >>Certainly EU maybe even north America's in Detroit this year. >>Huge fan of what you guys are doing here. Thank you so much for having me on >>The show. Guess bell VC Johnson here on the cube. Check him out. Founder for founders here on the cube, more coverage from San Francisco, California. After the short break, stay with us. Everyone. Welcome to the queue here. Live in San Francisco, California for AWS summit, 2022 we're live we're back with the events. Also we're virtual. We got hybrid all kinds of events. This year, of course, 80% summit in New York city is happening this summer. We'll be there with the cube as well. I'm John. Again, John host of the cube got a great guest here. Justin Coby owner and CEO of innovative solutions. Their booth is right behind us. Justin, welcome to the cube. >>Thank you. Thank you for having me. >>So we're just chatting, uh, uh, off camera about some of the work you're doing. You're the owner of and CEO. Yeah. Of innovative. Yeah. So tell us a story. What do you guys do? What's the elevator pitch. >>Yeah. <laugh> so the elevator pitch is we are, uh, a hundred percent focused on small to midsize businesses that are moving into the cloud or have already moved to the cloud and really trying to understand how to best control, cost, security, compliance, all the good stuff, uh, that comes along with it. Um, exclusively focused on AWS and, um, you know, about 110 people, uh, based in Rochester, New York, that's where our headquarters is, but now we have offices down in Austin, Texas up in Toronto, uh, key Canada, as well as Chicago. Um, and obviously in New York, uh, you know, the, the business was never like this, uh, five years ago, um, founded in 1989, made the decision in 2018 to pivot and go all in on the cloud. And, uh, I've been a part of the company for about 18 years, bought the company about five years ago and it's been a great ride. It >>It's interesting. The manages services are interesting with cloud cause a lot of the heavy liftings done by AWS. So we had Matt on your team on earlier talking about some of the edge stuff. Yeah. But you guys are a managed cloud service. You got cloud advisory, you know, the classic service that's needed, but the demands coming from cloud migrations and application modernization and obviously data is a huge part of it. Huge. How is this factoring into what you guys do and your growth cuz you guys are the number one partner on the SMB side for edge. Yeah. For AWS, you got results coming in. Where's the, where's the forcing function. What's the pressure point. What's the demand like? >>Yeah. It's a great question. Every CEO I talk to, that's a small to midsize business. They're trying to understand how to leverage technology. It better to help either drive a revenue target for their own business, uh, help with customer service as so much has gone remote now. And we're all having problems or troubles or issues trying to hire talent. And um, you know, tech ISNT really at the, at the forefront and the center of that. So most customers are coming to us and they're like, listen, we gotta move to the cloud or we move some things to cloud and we want to do that better. And um, there's this big misnomer that when you move to the cloud, you gotta automatically modernize. Yeah. And what we try to help as many customers understand as possible is lifting and shifting, moving the stuff that you maybe currently have OnPrem and a data center to the cloud first is a first step. And then, uh, progressively working through a modernization strateg, always the better approach. And so we spend a lot of time with small to midsize businesses who don't have the technology talent on staff to be able to do >>That. Yeah. They want get set up. But then the dynamic of like latency is huge. We're seeing that edge product is a big part of it. This is not a one-off happening around everywhere. It is. And it's not, it's manufacturing, it's the physical plant or location >>Literally. >>And so, and you're seeing more IOT devices. What's that like right now from a challenge and problem statement standpoint, are the customers, not staff, is the it staff kind of old school? Is it new skills? What's the core problem you guys solve >>In the SMB space? The core issue nine outta 10 times is people get enamored with the latest and greatest. And the reality is not everything that's cloud based. Not all cloud services are the latest and greatest. Some things have been around for quite some time and are hardened solutions. And so, um, what we try to do with technology staff that has traditional on-prem, uh, let's just say skill sets and they're trying to move to a cloud-based workload is we try to help those customers through education and through some practical, let's just call it use case. Um, whether that's a proof of concept that we're doing or whether we're gonna migrate a small workload over, we try to give them the confidence to be able to not, not necessarily go it alone, but to, to, to have the, uh, the Gusto and to really have the, um, the, the opportunity to, to do that in a wise way. Um, and what I find is that most CEOs that I talk to, yeah, they're like, listen, the end of the day, I'm gonna be spending money in one place or another, whether that's OnPrem or in the cloud. I just want to know that I'm doing that in a way that helps me grow as quickly as possible status quo. I think every, every business owner knows that COVID taught us anything that status quo is, uh, is, is no. No. >>Good. How about factoring in the, the agility and speed equation? Does that come up a lot? It >>Does. I think, um, I, there's also this idea that if, uh, if we do a deep dive analysis and we really take a surgical approach to things, um, we're gonna be better off. And the reality is the faster you move with anything cloud based, the better you are. And so there's this assumption that we gotta get it right the first time. Yeah. In the cloud, if you start down your journey in one way and you realize midway that it's not the right, let's just say the right place to go. It's not like buying a piece of iron that you put in the closet and now you own it in the cloud. You can turn those services on and off. It's gives you a much higher density for making decisions and failing >>Forward. Well actually shutting down the abandoning the projects that early and not worrying about it, you got it. I mean, most people don't abandon cause like, oh, I own it. >>Exactly. And >>They get, they get used to it. Like, and then they wait too long. >>That's exactly. Yeah. >>Frog and boiling water as we used to say. So, oh, it's a great analogy. So I mean, this is a dynamic that's interesting. I wanna get more thoughts on it because like I'm a, if I'm a CEO of a company, like, okay, I gotta make my number. Yeah. I gotta keep my people motivated. Yeah. And I gotta move faster. So this is where you, I get the whole thing. And by the way, great service, um, professional services in the cloud right now are so hot because so hot, you can build it and then have option optionality. You got path decisions, you got new services to take advantage of. It's almost too much for customers. It is. I mean, everyone I talked to at reinvent, that's a customer. Well, how many announcements did am jazzy announce or Adam, you know, the 5,000 announcement or whatever. They do huge amounts. Right. Keeping track of it all. Oh, is huge. So what's the, what's the, um, the mission of, of your company. How does, how do you talk to that alignment? Yeah. Not just processes. I can get that like values as companies, cuz they're betting on you and your people. >>They are, they are, >>What's the values. >>Our mission is, is very simple. We want to help every small to midsize business leverage the power of the cloud. Here's the reality. We believe wholeheartedly. This is our vision that every company is going to become a technology company. So we go to market with this idea that every customer's trying to leverage the power of the cloud in some way, shape or form, whether they know it or don't know it. And number two, they're gonna become a tech company in the process of that because everything is so tech-centric. And so when you talk about speed and agility, when you talk about the, the endless options and the endless permutations of solutions that a customer can buy in the cloud, how are you gonna ask a team of one or two people in your, or it department to make all those decisions going it alone or trying to learn it as you go, it only gets you so far working with a partner. >>I'll just give you some perspective. We work with about a thousand small to midsize business customers. More than 50% of those customers are on our managed services. Meaning they know that we have their back Andre or the safety net. So when a customer is saying, all right, I'm gonna spend a couple thousand dollars a month in the cloud. They know that that bill, isn't gonna jump to $10,000 a month going in alone. Who's there to help protect that. Number two, if you have a security posture and let's just say you're high profile and you're gonna potentially be more vulnerable to security attack. If you have a partner, that's all offering you some managed services. Now you, again, you've got that backstop and you've got those services and tooling. We, we offer, um, seven different products, uh, that are part of our managed services that give the customer the tooling, that for them to go out and buy on their own for a customer to go out today and go buy a new Relic solution on their own. It, it would cost 'em a fortune. If >>Training alone would be insane, a factor and the cost. Yes, absolutely. Opportunity cost is huge, >>Huge, absolutely enormous training and development. Something. I think that is often, you know, it's often overlooked technologists. Typically they want to get their skills up. Yeah. They, they love to get the, the stickers and the badges and the pins, um, at innovative in 2018, when, uh, when we made the decision to go all in on the club, I said to the organization, you know, we have this idea that we're gonna pivot and be aligned with AWS in such a way that it's gonna really require us all to get certified. My executive assistant at the time looks at me. She said, even me, I said, yeah, even you, why can't you get certified? Yeah. And so we made, uh, a conscious decision. It wasn't requirement and still isn't today to make sure everybody in the company has the opportunity to become certified. Even the people that are answering the phones at the front desk >>And she could be running the Kubernetes clusters. I love it. It's amazing. >>But I'll tell you what, when that customer calls and they have a real Kubernetes issue, she'll be able to assist and get >>The right people involved. And that's a cultural factor that you guys have. So, so again, this is back to my whole point about SMBs and businesses in general, small en large, it staffs are turning over the gen Z and millennials are in the workforce. They were provisioning top of rack switches. Right. First of all. And so if you're a business, there's also the, I call the build out, um, uh, return factor, ROI piece. At what point in time as an owner or SMB, do I get the ROI? Yeah. I gotta hire a person to manage it. That person's gonna have five zillion job offers. Yep. Uh, maybe who knows? Right. I got cybersecurity issues. Where am I gonna find a cyber person? Yeah. A data compliance. I need a data scientist and a compliance person. Right. Maybe one and the same. Right. Good luck. Trying to find a data scientist. Who's also a compliance person. Yep. And the list goes on. I can just continue. Absolutely. I need an SRE to manage the, the, uh, the sock report and we can pen test. Right. >>Right. >>These are, these are >>Critical issues. This >>Is just like, these are the table stakes. >>Yeah. And, and every, every business owner's thinking about. So that's, >>That's what, at least a million in bloating, if not three or more Just to get that going. Yeah. Then it's like, where's the app. Yeah. So there's no cloud migration. There's no modernization on the app side though. Yeah. No. And nevermind AI and ML. That's >>Right. That's right. So to try to go it alone, to me, it's hard. It it's incredibly difficult. And, and the other thing is, is there's not a lot of partners, so the partner, >>No one's raising their hand boss. I'll >>Do all that >>Exactly. In it department. >>Exactly. >>Like, can we just call up, uh, you know, <laugh> our old vendor. That's >>Right. <laugh> right. Our old vendor. I like it, but that's so true. I mean, when I think about how, if I was a business owner, starting a business to today and I had to build my team, um, and the amount of investment that it would take to get those people skilled up and then the risk factor of those people now having the skills and being so much more in demand and being recruited away, that's a real, that's a real issue. And so how you build your culture around that is, is very important. And it's something that we talk about every, with every one of our small to midsize business. >>So just, I want to get, I want to get your story as CEO. Okay. Take us through your journey. You said you bought the company and your progression to, to being the owner and CEO of innovative award winning guys doing great. Uh, great bet on a good call. Yeah. Things are good. Tell your story. What's your journey? >>It's real simple. I was, uh, was a sophomore at the Rochester Institute of technology in 2003. And, uh, I knew that I, I was going to school for it and I, I knew I wanted to be in tech. I didn't know what I wanted to do, but I knew I didn't wanna code or configure routers and switches. So I had this great opportunity with the local it company that was doing managed services. We didn't call it at that time innovative solutions to come in and, uh, jump on the phone and dial for dollars. I was gonna cold call and introduce other, uh, small to midsize businesses locally in Rochester, New York go to Western New York, um, who innovative was now. We were 19 people at the time. And I came in, I did an internship for six months and I loved it. I learned more in those six months that I probably did in my first couple of years at, uh, at R I T long story short. >>Um, for about seven years, I worked, uh, to really help develop, uh, sales process and methodology for the business so that we could grow and scale. And we grew to about 30 people. And, um, I went to the owners at the time in 2010 and I was like, Hey, I'm growing the value of this business. And who knows where you guys are gonna be another five years? What do you think about making me an owner? And they were like, listen, you got long ways before you're gonna be an owner, but if you stick it out in your patient, we'll, um, we'll work through a succession plan with you. And I said, okay, there were four other individuals at the time that we're gonna also buy the business with >>Me. And they were the owners, no outside capital, >>None zero, well, 2014 comes around. And, uh, the other folks that were gonna buy into the business with me that were also working at innovative for different reasons. They all decided that it wasn't for them. One started a family. The other didn't wanna put capital in. Didn't wanna write a check. Um, the other had a real big problem with having to write a check. If we couldn't make payroll, I'm like, well, that's kind of like if we're owners, we're gonna have to like cover that stuff. <laugh> so >>It's called the pucker factor. >>Exactly. So, uh, I sat down with the CEO in early 2015, and, uh, we made the decision that I was gonna buy the three partners out, um, go through an earn out process, uh, coupled with, uh, an interesting financial strategy that wouldn't strap the business, cuz they care very much. The company still had the opportunity to keep going. So in 2016 I bought the business, um, became the sole owner. And, and at that point we, um, we really focused hard on what do we want this company to be? We had built this company to this point. Yeah. And, uh, and by 2018 we knew that pivoting all going all in on the cloud was important for us and we haven't looked back. >>And at that time, the proof points were coming clearer and clearer 2012 through 15 was the early adopters, the builders, the startups and early enterprises. Yes. The capital ones of the world. Exactly the, uh, and those kinds of big enterprises. The game don't, won't say gamblers, but ones that were very savvy. The innovators, the FinTech folks. Yep. The hardcore glass eating enterprises >>Agreed, agreed to find a small to midsize business, to migrate completely to the cloud as, as infrastructure was considered. That just didn't happen as often. Um, what we were seeing were a lot of our small to midsize business customers, they wanted to leverage cloud based backup, or they wanted to leverage a cloud for disaster recovery because it lent itself. Well, early days, our most common cloud customer though, was the customer that wanted to move messaging and collaboration. The, the Microsoft suite to the cloud and a lot of 'em dipped their toe in the water. But by 2017 we knew infrastructure was around the corner. Yeah. And so, uh, we only had two customers on eight at the time. Um, and we, uh, we, we made the decision to go all in >>Justin. Great to have you on the cube. Thank you. Let's wrap up. Uh, tell me the hottest product that you have. Is it migrations? Is the app modernization? Is it data? What's the hot product and then put a plug in for the company. Awesome. >>So, uh, there's no question. Every customer is looking to migrate workloads and try to figure out how to modernize for the future. We have very interesting, sophisticated yet elegant funding solutions to help customers with the cash flow, uh, constraints that come along with those migrations. So any SMB that's thinking about migrating to the cloud, they should be talking innovative solutions. We know how to do it in a way that allows those customers not to be cash strapped and gives them an opportunity to move forward in a controlled, contained way so that they can modernize. >>So like insurance, basically for them not insurance class in the classic sense, but you help them out on the, on the cash exposure. >>Absolutely. We are known for that and we're known for being creative with those customers, empathetic to where they are in their journey. And >>That's the cloud upside is all about doubling down on the variable wind. That's right. Seeing the value and doubling down on it. Absolutely not praying for it. Yeah. <laugh> all right, Justin. Thanks for coming on. You really appreciate it. Thank >>You very much for having >>Me. Okay. This is the cube coverage here live in San Francisco, California for AWS summit, 2022. I'm John for your host. Thanks for watching with back with more great coverage for two days after this short break >>Live on the floor in San Francisco for 80 west summit, I'm John ferry, host of the cube here for the next two days, getting all the action we're back in person. We're at AWS reinvent a few months ago. Now we're back events are coming back and we're happy to be here with the cube, bringing all the action. Also virtual, we have a hybrid cube, check out the cube.net, Silicon angle.com for all the coverage. After the event. We've got a great guest ticketing off here. Matthew Park, director of solutions, architecture with innovation solutions. The booth is right here. Matthew, welcome to the cube. >>Thank you very much. I'm glad >>To be here. So we're back in person. You're from Tennessee. We were chatting before you came on camera. Um, it's great to have to be back through events. >>It's amazing. This is the first, uh, summit I've been to and what two, three years. >>It's awesome. We'll be at the, uh, New York as well. A lot of developers and a big story this year is as developers look at cloud going distributed computing, you got on premises, you got public cloud, you got the edge. Essentially the cloud operations is running everything dev sec ops, everyone kind of sees that you got containers, you got Kubernetes, you got cloud native. So the, the game is pretty much laid out. Mm. And the edge is with the actions you guys are number one, premier partner at SMB for edge. >>That's right. >>Tell us about what you guys doing at innovative and, uh, what you do. >>That's right. Uh, so I'm the director of solutions architecture. Uh, me and my team are responsible for building out the solutions that are around, especially the edge public cloud out for us edge is anything outside of an AWS availability zone. Uh, we are deploying that in countries that don't have AWS infrastructure in region. They don't have it. Uh, give >>An example, >>Uh, example would be Panama. We have a customer there that, uh, needs to deploy some financial tech data and compute is legally required to be in Panama, but they love AWS and they want to deploy AWS services in region. Uh, so they've taken E EKS anywhere. We've put storage gateway and, uh, snowball, uh, in region inside the country and they're running their FinTech on top of AWS services inside Panama. >>You know, what's interesting, Matthew is that we've been covering Aw since 2013 with the cube about their events. And we watched the progression and jazzy was, uh, was in charge and then became the CEO. Now Adam Slosky is in charge, but the edge has always been that thing they've been trying to, I don't wanna say, trying to avoid, of course, Amazon would listen to customers. They work backwards from the customers. We all know that. Uh, but the real issue was they were they're bread and butters EC two and S three. And then now they got tons of services and the cloud is obviously successful and seeing that, but the edge brings up a whole nother level. >>It does >>Computing. It >>Does. >>That's not central lies in the public cloud. Now they got regions. So what is the issue with the edge what's driving? The behavior. Outpost came out as a reaction to competitive threats and also customer momentum around OT, uh, operational technologies. And it merging. We see with the data at the edge, you got five GM having. So it's pretty obvious, but there was a slow transition. What was the driver for the <affirmative> what's the driver now for edge action for AWS >>Data is the driver for the edge. Data has gravity, right? And it's pulling compute back to where the customer's generating that data and that's happening over and over again. You said it best outpost was a reaction to a competitive situation. Whereas today we have over fit 15 AWS edge services, and those are all reactions to things that customers need inside their data centers on location or in the field like with media companies. >>Outpost is interesting. We always used to riff on the cube, uh, cuz it's basically Amazon in a box, pushed in the data center, uh, running native, all the stuff, but now cloud native operations are kind of become standard. You're starting to see some standard Deepak sings group is doing some amazing work with open source Rauls team on the AI side, obviously, uh, you got SW who's giving the keynote tomorrow. You got the big AI machine learning big part of that edge. Now you can say, okay, outpost, is it relevant today? In other words, did outpost do its job? Cause EKS anywhere seems to be getting a lot of momentum. You see low the zones, the regions are kicking ass for Amazon. This edge piece is evolving. What's your take on EKS anywhere versus say outpost? >>Yeah, I think outpost did its job. It made customers that were looking at outpost really consider, do I wanna invest in this hardware? Do I, do I wanna have, um, this outpost in my data center, do I wanna manage this over the long term? A lot of those customers just transitioned to the public cloud. They went into AWS proper. Some of those customers stayed on prem because they did have use cases that were, uh, not a good fit for outpost. They weren't a good fit. Uh, in the customer's mind for the public AWS cloud inside an availability zone. Now what's happening is as AWS is pushing these services out and saying, we're gonna meet you where you are with 5g. We're gonna meet you where you are with wavelength. We're gonna meet you where you are with EKS anywhere. Uh, I think it has really reduced the amount of times that we have conversations about outposts and it's really increased. We can deploy fast. We don't have to spin up outpost hardware. We can go deploy EKS anywhere in your VMware environment and it's increasing the speed of adoption >>For sure. So you guys are making a lot of good business decisions around managed cloud service. Innovative does that. You have the cloud advisory, the classic professional services for the specific edge piece and, and doing that outside of the availability zones and regions for AWS, um, customers in, in these new areas that you're helping out are they want cloud, like they want to have modernization a modern applications. Obviously they got data machine learning and AI, all part of that. What's the main product or, or, or gap that you're filling for AWS, uh, outside of their available ability zones or their regions that you guys are delivering. What's the key is it. They don't have a footprint. Is it that it's not big enough for them? What's the real gap. What's why, why are you so successful? >>So what customers want when they look towards the cloud is they want to focus on, what's making them money as a business. They wanna focus on their applications. They want focus on their customers. So they look towards AWS cloud and say, AWS, you take the infrastructure. You take, uh, some of the higher layers and we'll focus on our revenue generating business, but there's a gap there between infrastructure and revenue generating business that innovative slides into, uh, we help manage the AWS environment. We help build out these things in local data centers for 32 plus year old company, we have traditional on-premises people that know about deploying hardware that know about deploying VMware to host EKS anywhere. But we also have most of our company totally focused on the AWS cloud. So we're filling that gap in helping deploy these AWS services, manage them over the long term. So our customers can go to just primarily and totally focusing on their revenue generating business. >>So basically you guys are basically building AWS edges, >>Correct? >>For correct companies, correct? Mainly because the, the needs are there, you got data, you got certain products, whether it's, you know, low latency type requirements, right. And then they still work with the regions, right. It's all tied together, right. Is that how it works? Right. >>And, and our customers, even the ones in the edge, they also want us to build out the AWS environment inside the availability zone, because we're always gonna have a failback scenario. If we're gonna deploy FinTech in the Caribbean, we're gonna talk about hurricanes and gonna talk about failing back into the AWS availability zones. So innovative is filling that gap across the board, whether it be inside the AWS cloud or on the AWS edge. >>All right. So I gotta ask you on the, since you're at the edge in these areas, I won't say underserved, but developing areas where now have data, you have applications that are tapping into that, that requirement. It makes total sense. We're seeing across the board. So it's not like it's, it's an outlier it's actually growing. Yeah. There's also the crypto angle. You got the blockchain. Are you seeing any traction at the edge with blockchain? Because a lot of people are looking at the web three in these areas like Panama, you mentioned FinTech in, in the islands. There are a lot of, lot of, lot of web three happening. What's your, what's your view on the web three world right now, relative >>To we, we have some customers actually deploying crypto, especially, um, especially in the Caribbean. I keep bringing the Caribbean up, but it's, it's top of my mind right now we have customers that are deploying crypto. A lot of, uh, countries are choosing crypto underly parts of their central banks. Yeah. Um, so it's, it's up and coming. Uh, I, I have some, you know, personal views that, that crypto is still searching for a use case. Yeah. And, uh, I think it's searching a lot and, and we're there to help customers search for that use case. Uh, but, but crypto, as a, as a tech technology, um, lives really well on the AWS edge. Yeah. Uh, and, and we're having more and more people talk to us about that. Yeah. And ask for assistance in the infrastructure because they're developing new cryptocurrencies every day. Yeah. It's not like they're deploying Ethereum or anything specific. They're actually developing new currencies and, and putting them out there on it's >>Interesting. And I mean, first of all, we've been doing crypto for many, many years. We have our own little, um, you know, projects going on. But if you look talk to all the crypto people that say, look, we do a smart contract, we use the blockchain. It's kind of over a lot of overhead. It's not really their technical already, but it's a cultural shift, but there's underserved use cases around use of money, but they're all using the blockchain, just for this like smart contracts for instance, or certain transactions. And they go into Amazon for the database. Yeah. <laugh> they all don't tell anyone we're using a centralized service, but what happened to decent centralized. >>Yeah. And that's, and that's the conversation performance. >>Yeah. >>And, and it's a cost issue. Yeah. And it's a development issue. Um, so I think more and more as, as some of these, uh, currencies maybe come up, some of the smart contracts get into, uh, they find their use cases. I think we'll start talking about how does that really live on, on AWS and, and what does it look like to build decentralized applications, but with AWS hardware and services. >>Right. So take me through a, a use case of a customer, um, Matthew around the edge. Okay. So I'm a customer, pretend I'm a customer, Hey, you know, I'm, we're in an underserved area. I want to modernize my business. And I got my developers that are totally peaked up on cloud. Um, but we've identified that it's just a lot of overhead latency issues. I need to have a local edge and serve my a and I also want all the benefits of the cloud. So I want the modernization and I wanna migrate to the cloud for all those cloud benefits and the good this of the cloud. What's the answer. Yeah. >>Uh, big thing is, uh, industrial manufacturing, right? That's, that's one of the best use cases, uh, inside industrial manufacturing, we can pull in many of the AWS edge services we can bring in, uh, private 5g, uh, so that all the, uh, equipment inside that, that manufacturing plant can be hooked up. They don't have to pay huge overheads to deploy 5g it's, uh, better than wifi for the industrial space. Um, when we take computing down to that industrial area, uh, because we wanna do pre-procesing on the data. Yeah. We want to gather some analytics. We deploy that with, uh, regular commercially available hardware running VMware, and we deploy EKS anywhere on that. Uh, inside of that manufacturing plant, uh, we can do pre-processing on things coming out of the, uh, the robotics that depending on what we're manufacturing, right. Uh, and then we can take the, those refined analytics and for very low cost with maybe a little bit longer latency transmit those back, um, to the AWS availability zone, the, the standard >>For data lake or whatever, >>To the data lake. Yeah. Data Lakehouse, whatever it might be. Um, and we can do additional data science on that once it gets to the AWS cloud. Uh, but I'll lot of that, uh, just in time business decisions, just in time, manufacturing decisions can all take place on an AWS service or services inside that manufacturing plant. And that's, that's one of the best use cases that we're >>Seeing. And I think, I mean, we've been seeing this on the queue for many, many years, moving data around is very expensive. Yeah. But also compute going of the data that saves that cost yep. On the data transfer also on the benefits of the latency. So I have to ask you, by the way, that's standard best practice now for the folks watching don't move the data unless you have to. Um, but those new things are developing. So I wanna ask you, what new patterns are you seeing emerging once this new architecture's in place? Love that idea, localize everything right at the edge, manufacture, industrial, whatever the use case, retail, whatever it is. Right. But now what does that change in the, in the core cloud? There's a, there's a system element here. Yeah. What's the new pattern. There's >>Actually an organizational element as well, because once you have to start making the decision, do I put this compute at the point of use or do I put this compute in the cloud? Uh, now you start thinking about where business decisions should be taking place. Uh, so not only are you changing your architecture, you're actually changing your organization because you're thinking, you're thinking about a dichotomy you didn't have before. Uh, so now you say, okay, this can take place here. Uh, and maybe, maybe this decision can wait. Yeah. Uh, and then how do I visualize that? By >>The way, it could be a bot tube doing the work for management. Yeah. <laugh> exactly. You got observability going, right. But you gotta change the database architecture in the back. So there's new things developing. You've got more benefit. There >>Are, there are. And, and we have more and more people that, that want to talk less about databases and want to talk more about data lakes because of this. They want to talk more about out. Customers are starting to talk about throwing away data, uh, you know, for the past maybe decade. Yeah. It's been store everything. And one day we will have a data science team that we hire in our organization to do analytics on this decade of data. And well, >>I mean, that's, that's a great point. We don't have time to drill into, maybe we do another session on this, but the one pattern we're seeing of the past year is that throwing away data's bad, even data lakes that so-called turn into data swamps, actually, it's not the case. You look at data, brick, snowflake, and other successes out there. And even time series data, which may seem irrelevant efforts over actually matters when people start retraining their machine learning algorithms. Yep. So as data becomes code, as we call it in our last showcase, we did a whole whole event on this. The data's good in real time and in the lake. Yeah. Because the iteration of the data feeds the machine learning training. Things are getting better with the old data. So it's not throw it away. It's not just business better. Yeah. There's all kinds of new scale. >>There are. And, and we have, uh, many customers that are running pay Toby level. Um, they're, they're essentially data factories on, on, uh, on premises, right? They're, they're creating so much data and they're starting to say, okay, we could analyze this, uh, in the cloud, we could transition it. We could move Aytes of data to the AWS cloud, or we can run, uh, computational workloads on premises. We can really do some analytics on this data transition, uh, those high level and sort of raw analytics back to AWS run 'em through machine learning. Um, and we don't have to transition 10, 12 petabytes of data into AWS. >>So I gotta end the segment on a, on a kind of a, um, fun note. I was told to ask you about your personal background, OnPrem architect, Aus cloud, and skydiving instructor. <laugh> how does that all work together? What tell, what does this mean? Yeah. >>Uh, you >>Jumped out a plane and got a job. You got a customer to jump out >>Kind of. So I was, you jumped out. I was teaching having, uh, before I, before I started in the cloud space, this was 13, 14 years ago. I was a, I still am a sky. I instructor, uh, I was teaching skydiving and I heard out of the corner of my ear, uh, a guy that owned an MSP that was lamenting about, um, you know, storing data and, and how his customers are working. And he can't find an enough people to operate all these workloads. So I walked over and said, Hey, this is, this is what I went to school for. Like, I'd love to, you know, uh, I was living in a tent in the woods, teaching skydiving. I was like, I'd love to not live in a tent in the woods. So, uh, uh, I started and the first day there, uh, we had a, a discussion, uh, EC two had just come out <laugh> and, uh, like, >>This is amazing. >>Yeah. And so we had this discussion, we should start moving customers here. And, uh, and that totally revolutionized that business, um, that, that led to, uh, that that guy actually still owns a skydiving airport. But, um, but through all of that, and through being in on premises, migrated me and myself, my career into the cloud, and now it feels like, uh, almost, almost looking back and saying, now let's take what we learned in the cloud and, and apply those lessons and those services tore >>It's. So it's such a great story, you know, was gonna, you know, you know, the whole, you know, growth mindset pack your own parachute, you know, uh, exactly. You know, the cloud in the early days was pretty much will the shoot open. Yeah. It was pretty much, you had to roll your own cloud at that time. And so, you know, you, you jump on a plane, you gotta make sure that parachute is gonna open. >>And so was Kubernetes by the way, 2015 or so when, uh, when that was coming out, it was, I mean, it was, it was still, and maybe it does still feel like that to some people. Right. But, uh, it was, it was the same kind of feeling that we had in the early days of AWS, the same feeling we have when we >>It's now with you guys, it's more like a tandem jump. Yeah. You know, but, but it's a lot of, lot of this cutting edge stuff, like jumping out of an airplane. Yeah. You got the right equipment. You gotta do the right things. Exactly. >>Right. >>Yeah. Thanks for coming. You really appreciate it. Absolutely great conversation. Thanks for having me. Okay. The cubes here live in San Francisco for eight of us summit. I'm John for host of the cube. Uh, we'll be at a summit in New York coming up in the summer as well. Look up for that. Look up this calendar for all the cube, actually@thecube.net. We'll right back with our next segment after this break. >>Okay. Welcome back everyone to San Francisco live coverage here, we're at the cube a be summit 2022. We're back in person. I'm John fury host of the cube. We'll be at the eighties summit in New York city this summer, check us out then. But right now, two days in San Francisco, getting all the coverage what's going on in the cloud, we got a cube alumni and friend of the cube, my dos car CEO, investor, a Sierra, and also an investor in a bunch of startups, angel investor. Gonna do great to see you. Thanks for coming on the cube. Good to see you. Good to see you. Cool. How are you? Good. >>How hello you. >>So congratulations on all your investments. Uh, you've made a lot of great successes, uh, over the past couple years, uh, and your company raising, uh, some good cash as Sarah. So give us the update. How much cash have you guys raised? What's the status of the company product what's going on? >>First of all, thank you for having me. We're back to be business with you, never after to see you. Uh, so is a company started around four years back. I invested with a few of the investors and now I'm the CEO there. We have raised close to a hundred million there. The investors are people like Norwes Menlo ventures, coastal ventures, Ram Shera, and all those people, all well known guys. And Beckel chime Paul me Mayard web. So whole bunch of operating people and, uh, Silicon valley VCs are involved >>And has it gone? >>It's going well. We are doing really well. We are going almost 300% year over year. Uh, for last three years, the space ISRA is going after is what I call the applying AI for customer service. It operations, it help desk, uh, the same place I used to work at ServiceNow. We are partners with ServiceNow to take, how can we argument for employees and customers, Salesforce, and service now to take you to the next stage? Well, >>I love having you on the cube, Dave and I, Dave LAN as well loves having you on too, because you not only bring the entrepreneurial CEO experience, you're an investor. You're like a, you're like a guest analyst. <laugh> >>You know, who does >>You, >>You >>Get the call fund to talk to you though. You >>Get the commentary, your, your finger in the pulse. Um, so I gotta ask you obviously, AI and machine learning, machine learning AI, or you want to phrase it. Isn't every application. Now, AI first, uh, you're seeing a lot of that going on. You're starting to see companies build the modern applications at the top of the stack. So the cloud scale has hit. We're seeing cloud scale. You predicted that we talked about in the cube many times. Now you have that past layer with a lot more services and cloud native becoming a standard layer. Containerizations growing Docker just raised a hundred million on a $2 billion valuation back from the dead after they pivoted from enterprise services. So open source developers are booming. Um, where's the action. I mean, is there data control plan? Emerging AI needs data. There's a lot of challenges around this. There's a lot of discussions and a lot of companies being funded, observability there's 10 billion observability companies. Data is the key. This is what's your end on this. What's your take. >>Yeah, look, I think I'll give you the few that I see right from my side. Obviously data is very clear. So the things that rumor system of recorded you and me talked about the next layer is called system of intelligence. That's where the AI will play. Like we talk cloud native, it'll be called AI. NA AI enable is a new buzzword and using the AI for customer service. It, you talk about observability. I call it, AIOps applying AOPs for good old it operation management, cloud management. So you'll see the AOPs applied for whole list of, uh, application from observability doing the CMDB, predicting the events insurance. So I see a lot of work clicking for AIOps and AI services. What used to be desk with ServiceNow BMC GLA you see a new ALA emerging as a system of intelligence. Uh, the next would be is applying AI with workflow automation. So that's where you'll see a lot of things called customer workflows, employee workflows. So think of what UI path automation, anywhere ServiceNow are doing, that area will be driven with AI workflows. So you, you see AI going >>Off is RPA. A company is AI, is RPA a feature of something bigger? Or can someone have a company on RPA UI S one will be at their event this summer? Um, is it a product company? I mean, or I mean, RPA is, should be embedded in everything. It's a >>Feature. It is very good point. Very, very good thinking. So one is, it's a category for sure. Like, as we thought, it's a category, it's an area where RPA may change the name. I call it much more about automation, workflow automation, but RPA and automation is a category. Um, it's a company also, but that automation should be embedded in every area. Yeah. Like we call cloud NATO and AI. They it'll become automation data. Yeah. And that's your, thinking's >>Interesting me. I think about the, what you're talking about what's coming to mind is I'm kinda having flashbacks to the old software model of middleware. Remember at middleware, it was very easy to understand it was middleware. It sat between two things and then the middle, and it was software abstraction. Now you have all kinds of workflows, abstractions everywhere. So multiple databases, it's not a monolithic thing. Right? Right. So as you break that down, is this the new modern middleware? Because what you're talking about is data workflows, but they might be siloed. Are they integrated? I mean, these are the challenges. This is crazy. What's the, >>So remember the databases became called polyglot databases. Yeah. I call this one polyglot automation. So you need automation as a layer, as a category, but you also need to put automation in every area like you, you were talking about, it should be part of service. Now it should be part of ISRA. Like every company, every Salesforce. So that's why you see it MuleSoft and sales buying RPA companies. So you'll see all the SaaS companies, cloud companies having an automation as a core. So it's like how you have a database and compute and sales and networking. You'll also have an automation as a layer embedded inside every stack. >>All right. So I wanna shift gears a little bit and get your perspective on what's going on behind us. You can see, uh, behind, as you got the XPO hall got, um, we're back to vis, but you got, you know, AMD, Clum, Dynatrace data, dog, innovative, all the companies out here that we know, we interview them all. They're trying to be suppliers to this growing enterprise market. Right? Okay. But now you also got the entrepreneurial equation. Okay. We're gonna have John Sado on from Deibel later. He's a former NEA guy and we always talk to Jerry, Jen, we know all the, the VCs, what does the startups look like? What does the state of the, in your mind, cause you, I know you invest the entrepreneurial founder situation. Cloud's bigger. Mm-hmm <affirmative> global, right? Data's part of it. You mentioned data's code. Yes. Basically. Data's everything. What's it like for a first an entrepreneur right now who's starting a company. What's the white space. What's the attack plan. How do they get in the market? How do they engineer everything? >>Very good. So I'll give it to, uh, two things that I'm seeing out there. Remember leaders of Amazon created the startups 15 years back. Everybody built on Amazon now, Azure and GCP. The next layer would be people don't just build on Amazon. They're going to build it on top of snow. Flake companies are snowflake becomes a data platform, right? People will build on snowflake, right? So I see my old boss playing ment, try to build companies on snowflake. So you don't build it just on Amazon. You build it on Amazon and snowflake. Snowflake will become your data store. Snowflake will become your data layer, right? So I think that's the next level of companies trying to do that. So if I'm doing observability AI ops, if I'm doing next level of Splunk SIM, I'm gonna build it on snowflake, on Salesforce, on Amazon, on Azure, et cetera. >>It's interesting. You know, Jerry Chan has it put out a thesis a couple months ago called castles in the cloud where your moat is, what you do in the cloud. Not necessarily in the, in the IP. Um, Dave LAN and I had last re invent, coined the term super cloud, right? It's got a lot of traction and a lot of people throwing, throwing mud at us, but we were, our thesis was, is that what Snowflake's doing? What Goldman S Sachs is doing. You're starting to see these clouds on top of clouds. So Amazon's got this huge CapEx advantage. And guys like Charles Fitzgeral out there, who we like was kind of hitting on us saying, Hey, you guys terrible, they didn't get him. Like, yeah, I don't think he gets it, but that's a whole, can't wait to debate him publicly on this. <laugh> cause he's cool. Um, but snowflake is on Amazon. Yes. Now they say they're on Azure now. Cause they've got a bigger market and they're public, but ultimately without a AWS snowflake doesn't exist and, and they're reimagining the data warehouse with the cloud, right? That's the billion dollar opportunity. >>It is. It is. They both are very tight. So imagine what Frank has done at snowflake and Amazon. So if I'm a startup today, I want to build everything on Amazon where possible whatever is, I cannot build. I'll make the pass layer room. The middle layer pass will be snowflake. So I cannot build it on snowflake. I can use them for data layer if I really need to size, I'll build it on force.com Salesforce. Yeah. Right. So I think that's where you'll >>See. So basically the, the, if you're an entrepreneur, the, the north star in terms of the, the outcome is be a super cloud. It >>Is, >>That's the application on another big CapEx ride, the CapEx of AWS or cloud, >>And that reduce your product development, your go to market and you get use the snowflake marketplace to drive your engagement. Yeah. >>Yeah. How are, how is Amazon and the clouds dealing with these big whales, the snowflakes of the world? I mean, I know they got a great relationship, uh, but snowflake now has to run a company they're public. Yeah. So, I mean, I'll say, I think got Redshift. Amazon has got Redshift. Um, but snowflake big customer. The they're probably paying AWS big, >>I >>Think big bills too. >>So John, very good. Cause it's like how Netflix is and Amazon prime, right. Netflix runs on Amazon, but Amazon has Amazon prime that co-option will be there. So Amazon will have Redshift, but Amazon is also partnering with the snowflake to have native snowflake data warehouse as a data layer. So I think depending on the use case you have to use each of the above, I think snowflake is here for a long term. Yeah. Yeah. So if I'm building an application, I want to use snowflake then writing from stats. >>Well, I think that comes back down to entrepreneurial hustle. Do you have a better product? Right. Product value will ultimately determine it as long as the cloud doesn't, you know, foreclose your value. That's right. With some sort of internal hack, but I've think, I think the general question that I have is that I think it's okay to have a super cloud like that because the rising tide is still happening at some point, when does the rising tide stop and the people shopping up their knives, it gets more competitive or is it just an infinite growth cycle? I >>Think it's growth. You call it closed skill you the word cloud scale. So I think look, cloud will continually agree, increase. I think there's as long as there more movement from on, uh, on-prem to the classical data center, I think there's no reason at this point, the rumor, the old lift and shift that's happening in like my business. I see people lift and shifting from the it operations, it helpless. Even the customer service service. Now the ticket data from BMCs CAS like Microfocus, all those workloads are shifted to the cloud, right? So cloud ticketing system is happening. Cloud system of record is happening. So I think this train has still a long way to go made. >>I wanna get your thoughts for the folks watching that are, uh, enterprise buyers are practitioners, not suppliers to the market. Feel free to text me or DMing. Next question is really about the buying side, which is if I'm a customer, what's the current, um, appetite for startup products. Cause you know, the big enterprises now and you know, small, medium, large, and large enterprise, they're all buying new companies cuz a startup can go from zero to relevant very quickly. So that means now enterprises are engaging heavily with startups. What's it like what's is there a change in order of magnitude of the relationship between the startup selling to, or growing startup selling to an enterprise? Um, have you seen changes there? I mean seeing some stuff, but why don't we get your thoughts on that? What it >>Is you, if I remember going back to our 2007 or eight, when I used to talk to you back then when Amazon started very small, right? We are an Amazon summit here. So I think enterprises on the average used to spend nothing with startups. It's almost like 0% or one person today. Most companies are already spending 20, 30% with startups. Like if I look at a C I will line our business, it's gone. Yeah. Can it go more? I think it can double in the next four, five years. Yeah. Spending on the startups. Yeah. >>And check out, uh, AWS startups.com. That's a site that we built for the startup community for buyers and startups. And I want to get your reaction because I, I reference the URL causes like there's like a bunch of companies we've been promoting because the solution that startups have actually are new stuff. Yes. It's bending, it's shifting left for security or using data differently or um, building tools and platforms for data engineering. Right. Which is a new persona that's emerging. So you know, a lot of good resources there. Um, and goes back now to the data question. Now, getting back to your, what you're working on now is what's your thoughts around this new, um, data engineering persona, you mentioned AIOps, we've been seeing AIOps IOPS booming and that's creating a new developer paradigm that's right. Which we call coin data as code data as code is like infrastructure as code, but it's for data, right? It's developing with data, right? Retraining machine learnings, going back to the data lake, getting data to make, to do analysis, to make the machine learning better post event or post action. So this, this data engineers like an SRE for data, it's a new, scalable role we're seeing. Do you see the same thing? Do you agree? Um, do you disagree or can you share? >>I, a lot of thoughts that Fu I see the AI op solutions in the futures should be not looking back. I need to be like we are in San Francisco bay. That means earthquake prediction. Right? I want AOPs to predict when the outages are gonna happen. When there's a performance issue. I don't think most AOPs vendors have not gone there yet. Like I spend a lot of time with data dog, Cisco app dynamic, right? Dynatrace, all this solution will go future towards predict to pro so solution with AOPs. But what you bring up a very good point on the data side. I think like we have a Amazon marketplace and Amazon for startup, there should be data exchange where you want to create for AOPs and AI service that customers give the data, share the data because we thought the data algorithms are useless. I can give the best algorithm, but I gotta train them, modify them, make them better, make them better. Yeah. And I think their whole data exchange is the industry has not thought through something you and me talk many times. Yeah. Yeah. I think the whole, that area is very important. >>You've always been on, um, on the Vanguard of data because, uh, it's been really fun. Yeah. >>Going back to big data days back in 2009, you know that >>Look at, look how much data bricks has grown. >>It is doubled. The key cloud >>Air kinda went private, so good stuff. What are you working on right now? Give a, give a, um, plug for what you're working on. You'll still investing. >>I do still invest, but look, I'm a hundred percent on ISRA right now. I'm the CEO there. Yeah. Okay. So right. ISRA is my number one baby right now. So I'm looking year that growing customers and my customers, or some of them, you like it's zoom auto desk, McAfee, uh, grand <inaudible>. So all the top customers, um, mainly for it help desk customer service. AIOps those are three product lines and going after enterprise and commercial deals. >>And when should someone buy your product? What's what's their need? What category is it? >>I think they look whenever somebody needs to buy the product is if you need AOP solution to predict, keep your lights on, predict ours. One area. If you want to improve employee experience, you are using a slack teams and you want to automate all your workflows. That's another value problem. Third is customer service. You don't want to hire more people to do it. Some of the areas where you want to scale your company, grow your company, eliminate the cost customer service, >>Great stuff, man. Doing great to see you. Thanks for coming on. Congratulations on the success of your company and your investments. Thanks for coming on the cube. Okay. I'm John fur here at the cube live in San Francisco for day one of two days of coverage of a us summit 2022. And we're gonna be at Aus summit in San, uh, in New York in the summer. So look for that on the calendar, of course, go to a us startups.com. That's a site for all the hot startups and of course the cube.net and Silicon angle.com. Thanks for watching. We'll be back more coverage after this short break. >>Okay. Welcome back everyone. This the cubes coverage here in San Francisco, California, a Davis summit, 2022, the beginning of the event season, as it comes back, little bit smaller footprint, a lot of hybrid events going on, but this is actually a physical event, a summit in new York's coming in the summer. We'll be two with the cube on the set. We're getting back in the Groove's psych to be back. We were at reinvent, uh, as well, and we'll see more and more cube, but you're gonna see a lot of virtual cube outta hybrid cube. We wanna get all those conversations, try to get more interviews, more flow going. But right now I'm excited to have Corey Quinn here on the back on the cube chief cloud economist with duck bill groove, he's the founder, uh, and chief content person always got great angles, fun comedy, authoritative Corey. Great to see you. Thank you. >>Thanks. Coming on. Sure is a lot of words to describe is shit posting, which is how I describe what I tend to do. Most days, >>Shit posting is an art form now. And if you look at mark, Andrew's been doing a lot of shit posting lately. All a billionaires are shit posting, but they don't know how to do it. They're >>Doing it right. There's something opportunity there. It's like, here's how to be even more obnoxious and incisive. It's honestly the most terrifying scenario for anyone is if I have that kind of budget to throw at my endeavors, it's like, I get excited with a nonsense I can do with a $20 gift card for an AWS credit compared to, oh well, if I could buy a mid-size island to begin doing this from, oh, then we're having fun. >>This shit posting trend. Interesting. I was watching a thread go on about, saw someone didn't get a job because of their shit posting and the employer didn't get it. And then someone on this side I'll hire the guy cuz I get that's highly intelligent shit posting. So for the audience that doesn't know what shit posting is, what, what is shitposting >>It's more or less talking about the world of enterprise technology, which even that sentence is hard to finish without falling asleep and toppling out of my chair in front of everyone on the livestream, but it's doing it in such a way that brings it to life that says the quiet part. A lot of the audience is thinking, but generally doesn't say either because they're polite or not a Jack ass or more prosaically are worried about getting fired for better or worse. I don't have that particular constraint, >>Which is why people love you. So let's talk about what you, what you think is, uh, worthy and not worthy in the industry right now, obviously, uh, Cuban coming up in Spain, which they're having a physical event, you see the growth of cloud native Amazon's evolving Atos, especially new CEO. Andy move on to be the chief of all. Amazon just saw him the cover of was it time magazine. Um, he's under a lot of stress. Amazon's changed. Invoice has changed. What's working. What's not, what's rising, what's falling. What's hot. What's not, >>It's easy to sit here and criticize almost anything. These folks do. They're they're effectively in a fishbowl, but I have trouble. Imagine the logistics, it takes to wind up handling the catering for a relatively downscale event like this one this year, let alone running a 1.7 million employee company having to balance all the competing challenges and pressures and the rest. I, I just can't fathom what it would be like to look at all of AWS. And it's, it's sprawling immense, the nominates our entire industry and say, okay, this is a good start, but I, I wanna focus on something with a broader remit. What is that? How do you even get into that position? And you can't win once you're there. All you can do is hold onto the tiger and hope you don't get mold. >>Well, there's a lot of force for good conversations. Seeing a lot of that going on, Amazon's trying to a, is trying to portray themselves, you know, the Pathfinder, you know, you're the pioneer, um, force for good. And I get that and I think that's a good angle as cloud goes mainstream. There's still the question of, we had a guy on just earlier, who was a skydiving instructor and we were joking about the early days of cloud. Like that was like skydiving, build a parachute open, you know, and now it's same kind of thing. As you move to edge, things are like reliable in some areas, but still new, new fringe, new areas. That's crazy. Well, >>Since the last time we've spoken, uh, Steve Schmidt is now the CISO for all of Amazon and his backfill replacement. The AWS CISO is CJ. Moses who as a hobby races, a as a semi-pro race car, our driver to my understanding, which either, I don't know what direction to take that in either. This is what he does to relax or ultimately, or ultimately it's. Huh? That, that certainly says something about risk assessment. I'm not entirely sure what, but okay. Either way, it sounds like more exciting. Like they >>Better have a replacement ready in case something goes wrong on the track, highly >>Available >>CSOs. I gotta say one of the things I do like in the recent trend is that the tech companies are getting into the formula one, which I was never a fan of until I watched that Netflix series. But when you look at the formula one, it's pretty cool. Cause it's got some tech angles, I get the whole data instrumentation thing, but the most coolest thing about formula, the one is they have these new rigs out. Yeah. Where you can actually race in e-sports with other people in pure simulation of the race car. You gotta get the latest and video graphics card, but it's basically a tricked out PC with amazing monitors and you have all the equipment of F1 and you're basically simulating racing. Oh, >>It's great too. And I can see the appeal of these tech companies getting it into it because these things are basically rocket shifts. When those cars go, like they're sitting there, we can instrument every last part of what is going on inside that vehicle. And then AWS crops up. And we can bill on every one of those dimensions too. And it's like slow down their hasty pudding one step at a time. But I do see the appeal. >>So I gotta ask you about, uh, what's going on in your world. I know you have a lot of great SA we've been following you in the queue for many, many years. Got a great newsletter. Check out Corey Quinn's newsletter, uh, screaming in the cloud program. Uh, you're on the cutting edge and you've got a great balance between really being snarky and, and, and really being delivering content. That's exciting, uh, for people, uh, with a little bit of an edge, um, how's that going? Uh, what's the blowback, any blowback late leads there been tick? What was, what are some of the things you're hearing from your audience, more Corey, more Corey. And then of course the, the PR team's calling you >>The weird thing about having an audience beyond a certain size is far and away as a landslide. The most common response I get is silence where it's hi, I'm emailing an awful lot of people at last week in AWS every week and okay. They not have heard me. It. That is not actually true. People just generally don't respond to email because who responds to email newsletters. That sounds like something, a lunatic might do same story with response to live streams and podcasts. It's like, I'm gonna call into that am radio show and give them a piece of my mind. People generally don't do that. >>We should do that. Actually. I think sure would call in. Oh, I, I >>Think >>I guarantee if we had that right now, people would call in and Corey, what do you think about X? >>Yeah. It not, everyone understands the full context of what I do. And in fact, increasingly few people do and that's fine. I, I keep forgetting that sometimes people do not see what I'm doing in the same light that I do. And that's fine. Blowback has been largely minimal. Honestly, I am surprised anything by how little I have gotten over the last five years of doing this, but it would be easier to dismiss me if I weren't generally. Right. When, okay, so you launch this new service and it seems pretty crappy to me cuz when I try and build something, it falls over and begs for help. And people might not like hearing that, but it's what customers are finding too. Yeah. I really am the voice of the customer. >>You know, I always joke with Dave Avante about how John Fort's always at, uh, um, reinvent getting the interview with jazzy now, Andy we're there, you're there. And so we have these rituals at the events. It's all cool. Um, one of the rituals I like about your, um, your content is you like to get on the naming product names. Um, and, and, and, and, and kind of goof on that. Now why I like is because I used to work at ETT Packard where they used to name things as like engineers, HP 1 0, 0 5, or we can't, we >>Have a new monitor. How are we gonna name it? Throw the wireless keyboard down the stairs again. And then there you go. Yeah. >>It's and the old joke at HP was if they, if they invented sushi, they'd say, yeah, we can't call sushi. It's cold, dead fish, but that's what it is. And so the joke was cold. Dead fish is a better name than sushi. So you know is fun. So what's the, what are the, how's the Amazon doing in there? Have they changed their naming, uh, strategy, uh, on some of their, their product >>They're going in different directions. When they named Aurora, they decided to explore a new theme of Disney princesses as they go down those paths. And some things are more descriptive. Some people are clearly getting bonus on number of words, they can shove into it. Like the better a service is the longer it's name. Like AWS systems manager, a session manager is a great one. I love the service ridiculous name. They have a systems manager, parameter store with is great. They have secrets manager, which does the same thing. It's two words less, but that one costs money in a way that systems manage through parameter store does not. It's fun. >>What's your, what's your favorite combination of acronyms >>Combination of you >>Got Ks. You got EMR, you got EC two. You got S three SQS. Well, RedShift's not an acronym. You got >>Gas is one of my personal favorites because it's either elastic block store or elastic bean stock, depending entirely on the context of the conversation, >>They still got bean stock or is that still >>Around? Oh, they never turn anything off. They're like the anti Google, Google turns things off while they're still building it. Whereas Amazon is like, wow, we built this thing in 2005 and everyone hates it. But while we certainly can't change it, now it has three customers on it, John. >>Okay. >>Simple BV still haunts our >>Dreams. I, I actually got an email on, I saw one of my, uh, servers, all these C twos were being deprecated and I got an email I'm like, I couldn't figure out. Why can you just like roll it over? Why, why are you telling me just like, gimme something else. Right. Okay. So let me talk about, uh, the other things I want to ask you is that like, okay, so as Amazon gets better in some areas where do they need more work? And you, your opinion, because obviously they're all interested in new stuff and they tend to like put it out there for their end to end customers. But then they've got ecosystem partners who actually have the same product. Yes. And, and this has been well documented. So it's, it's not controversial. It's just that Amazon's got a database Snowflake's got out database service. So, you know, Redshift, snowflake database is out there. So you've got this optician. Yes. How's that going? And what are you hearing about the reaction to any of that stuff? >>Depends on who you ask. They love to basically trot out a bunch of their partners who will say nice things about them. And it very much has heirs of, let's be honest, a hostage video, but okay. Cuz these companies do partner with Amazon and they cannot afford to rock the boat too far. I'm not partnered with anyone. I can say what I want. And they're basically restricted to taking away my birthday at worse so I can live with that. >>All right. So I gotta ask about multi-cloud cause obviously the other cloud shows are coming up. Amazon hated that word. Multi-cloud um, a lot of people are saying, you know, it's not a real good marketing word. Like multicloud sounds like, you know, root canal. Mm-hmm <affirmative> right. So is there a better description for multicloud? >>Multiple single >>Loves that term. Yeah. >>You're building in multiple single points of failure. Do it for the right reasons or don't do it as a default. I believe not doing it is probably the, the right answer. However, and if I were, if I were Amazon, I wouldn't want to talk about multi-cloud either as the industry leader, let's talk about other clouds, bad direction to go in from a market cap perspective. It doesn't end well for you, but regardless of what they want to talk about, or don't want to talk about what they say, what they don't say, I tune all of it out. And I look at what customers are doing and multi-cloud exists in a variety of some brilliant, some brain dead. It depends a lot on context. But my general response is when someone gets on stage from a company and tells me to do a thing that directly benefits their company. I am skeptical at best. Yeah. When customers get on stage and say, this is what we're doing because it solves problems. That's when I shut up and listen. >>Yeah. Cool. Awesome. Corey, I gotta ask you a question cause I know you we've been, you know, fellow journey mean in the, in the cloud journey, going to all the events and then the pandemic hit where now in the third year, who knows what it's gonna end, certainly events are gonna look different. They're gonna be either changing footprint with the virtual piece, new group formations community's gonna emerge. You've got a pretty big community growing and it's growing like crazy. What's the weirdest or coolest thing, or just big changes you've seen with the pan endemic, uh, from your perspective, cuz you've been in the you're in the middle of the whitewater rafting. You've seen the events you circle offline. You saw the online piece come in, you're commentating, you're calling balls and strikes in the industry. You got a great team developing over there. Duck bill group. What's the big aha moment that you saw with the pandemic. Weird, funny, serious, real in the industry and with customers what's >>Accessibility. Reinvent is a great example. When in the before times it's open to anyone who wants to attend, who >>Can pony. >>Hello and welcome back to the live cube coverage here in San Francisco, California, the cube live coverage. Two days, day two of a summit, 2022 Aish summit, New York city coming up in summer. We'll be there as well. Events are back. I'm the host, John fur, the Cub got great guest here. Johnny Dallas with Ze. Um, here is on the queue. We're gonna talk about his background. Uh, little trivia here. He was the youngest engineer ever worked at Amazon at the age. 17 had to get escorted into reinvent in Vegas cause he was underage <laugh> with security, all good stories. Now the CEO of company called Z know DevOps kind of focus, managed service, a lot of cool stuff, Johnny, welcome to the cube. >>Thanks John. Great. >>So tell a story. You were the youngest engineer at AWS. >>I was, yes. So I used to work at a company called Bebo. I got started very young. I started working when I was about 14, um, kind of as a software engineer. And when I, uh, it was about 16. I graduated out of high school early, um, working at this company Bebo, still running all of the DevOps at that company. Um, I went to reinvent in about 2018 to give a talk about some of the DevOps software I wrote at that company. Um, but you know, as many of those things were probably familiar with reinvent happens in a casino and I was 16. So was not able to actually go into the, a casino on my own. Um, so I'd have <inaudible> security as well as casino security escort me in to give my talk. >>Did Andy jazzy, was he aware of >>This? Um, you know, that's a great question. I don't know. <laugh> >>I'll ask him great story. So obviously you started a young age. I mean, it's so cool to see you jump right in. I mean, I mean you never grew up with the old school that I used to grew up in and loading package software, loading it onto the server, deploying it, plugging the cables in, I mean you just rocking and rolling with DevOps as you look back now what's the big generational shift because now you got the Z generation coming in, millennials on the workforce. It's changing like no one's putting and software on servers. Yeah, >>No. I mean the tools keep getting better, right? We, we keep creating more abstractions that make it easier and easier. When I, when I started doing DevOps, I could go straight into E two APIs. I had APIs from the get go and you know, my background was, I was a software engineer. I never went through like the CIS admin stack. I, I never had to, like you said, rack servers, myself. I was immediately able to scale. I was managing, I think 2,500 concurrent servers across every Ables region through software. It was a fundamental shift. >>Did you know what an SRE was at that time? >>Uh, >>You were kind of an SRE on >>Yeah, I was basically our first SRE, um, was familiar with the, with the phrasing, but really thought of myself as a software engineer who knows cloud APIs, not a SRE. All >>Right. So let's talk about what's what's going on now as you look at the landscape today, what's the coolest thing that's going on in your mind in cloud? >>Yeah, I think the, I think the coolest thing is, you know, we're seeing the next layer of those abstraction tools exist and that's what we're doing with Z is we've basically gone and we've, we're building an app platform that deploys onto your cloud. So if you're familiar with something like Carku, um, where you just click a GitHub repo, uh, we actually make it that easy. You click a GI hub repo and it will deploy on ALS using a AWS tools. So, >>Right. So this is Z. This is the company. Yes. How old's the company about >>A year and a half old now. >>All right. So explain what it does. >>Yeah. So we make it really easy for any software engineer to deploy on a AWS. It's not SREs. These are the actual application engineers doing the business logic. They don't really want to think about Yamo. They don't really want to configure everything super deeply. They want to say, run this API on S in the best way possible. We've encoded all the best practices into software and we set it up for you. Yeah. >>So I think the problem you're solving is that there's a lot of want be DevOps engineers. And then they realize, oh shit, I don't wanna do this. Yeah. And some people want to do it. They loved under the hood. Right. People love to have infrastructure, but the average developer needs to actually be as agile on scale. So that seems to be the problem you solve. Right? >>Yeah. We, we, we give way more productivity to each individual engineer, you know? >>All right. So let me ask you a question. So let me just say, I'm a developer. Cool. I build this new app. It's a streaming app or whatever. I'm making it up cube here, but let's just say I deploy it. I need your service. But what happens about when my customers say, Hey, what's your SLA? The CDN went down from this it's flaky. Does Amazon have, so how do you handle all that SLA reporting that Amazon provides? Cuz they do a good job with sock reports all through the console. But as you start getting into DevOps <affirmative> and sell your app, mm-hmm <affirmative> you have customer issues. How do you, how do you view that? Yeah, >>Well, I, I think you make a great point of AWS has all this stuff already. AWS has SLAs. AWS has contract. Aw has a lot of the tools that are expected. Um, so we don't have to reinvent the wheel here. What we do is we help people get to those SLAs more easily. So Hey, this is AWS SLA as a default. Um, Hey, we'll fix you your services. This is what you can expect here. Um, but we can really leverage S's reliability of you. Don't have to trust us. You have to trust ALS and trust that the setup is good there. >>Do you handle all the recovery or mitigation between, uh, identification say downtime for instance? Oh, the server's not 99% downtime. Uh, went down for an hour, say something's going on? And is there a service dashboard? How does it get what's the remedy? Do you have a, how does all that work? >>Yeah, so we have some built in remediation. You know, we, we basically say we're gonna do as much as we can to keep your endpoint up 24 7 mm-hmm <affirmative>. If it's something in our control, we'll do it. If it's a disc failure, that's on us. If you push bad code, we won't put out that new version until it's working. Um, so we do a lot to make sure that your endpoint stay is up, um, and then alert you if there's a problem that we can't fix. So cool. Hey S has some downtime, this thing's going on. You need to do this action. Um, we'll let you know. >>All right. So what do you do for fun? >>Yeah, so, uh, for, for fun, um, a lot of side projects. <laugh> uh, >>What's your side hustle right now. You got going on >>The, uh, it's >>A lot of tools playing tools, serverless. >>Yeah, painless. A lot of serverless stuff. Um, I think there's a lot of really cool WAM stuff as well. Going on right now. Um, I love tools is, is the truest answer is I love building something that I can give to somebody else. And they're suddenly twice as productive because of it. Um, >>It's a good feeling, isn't it? >>Oh yeah. There's >>Nothing like tools were platforms. Mm-hmm <affirmative>, you know, the expression, too many tools in the tool. She becomes, you know, tools for all. And then ultimately tools become platforms. What's your view on that? Because if a good tool works and starts to get traction, you need to either add more tools or start building a platform platform versus tool. What's your, what's your view on a reaction to that kind of concept debate? >>Yeah, it's a good question. Uh, we we've basically started as like a, a platform. First of we've really focused on these, uh, developers who don't wanna get deep into the DevOps. And so we've done all of the pieces of the stacks. We do C I C D management. Uh, we do container orchestration, we do monitoring. Um, and now we're, spliting those up into individual tools so they can be used. Awesome in conjunction more. >>All right. So what are some of the use cases that you see for your service? It's DevOps basically nano service DevOps. So people who want a DevOps team, do clients have a DevOps person and then one person, two people what's the requirements to run >>Z. Yeah. So we we've got teams, um, from no DevOps is kind of when they start and then we've had teams grow up to about, uh, five, 10 men DevOps teams. Um, so, you know, as is more infrastructure people come in because we're in your cloud, you're able to go in and configure it on top you're we can't block you. Uh, you wanna use some new AWS service. You're welcome to use that alongside the stack that we deploy >>For you. How many customers do you have now? >>So we've got about 40 companies that are using us for all of their infrastructure, um, kind of across the board, um, as well as >>What's the pricing model. >>Uh, so our pricing model is we, we charge basically similar to an engineering salary. So we charge a monthly rate. We have plans at 300 bucks a month, a thousand bucks a month, and then enterprise plan for >>The requirement scale. Yeah. So back into the people cost, you must have her discounts, not a fully loaded thing, is it? >>Yeah, there's a discounts kind of asking >>Then you pass the Amazon bill. >>Yeah. So our customers actually pay for the Amazon bill themselves. So >>Have their own >>Account. There's no margin on top. You're linking your, a analyst account in, um, got it. Which is huge because we can, we are now able to help our customers get better deals with Amazon. Um, got it. We're incentivized on their team to drive your costs down. >>And what's your unit main unit of economics software scale. >>Yeah. Um, yeah, so we, we think of things as projects. How many services do you have to deploy as that scales up? Um, awesome. >>All right. You're 20 years old now you not even can't even drink legally. <laugh> what are you gonna do when you're 30? We're gonna be there. >>Well, we're, uh, we're making it better, better, >>Better the old guy on the queue here. <laugh> >>I think, uh, I think we're seeing a big shift of, um, you know, we've got these major clouds. ALS is obviously the biggest cloud and it's constantly coming out with new services, but we're starting to see other clouds have built many of the common services. So Kubernetes is a great example. It exists across all the clouds and we're starting to see new platforms come up on top that allow you to leverage tools for multiple times. At the same time. Many of our customers actually have AWS as their primary cloud and they'll have secondary clouds or they'll pull features from other clouds into AWS, um, through our software. I think that's, I'm very excited by that. And I, uh, expect to be working on that when I'm 30. <laugh> awesome. >>Well, you gonna have a good future. I gotta ask you this question cuz uh, you know, I always, I was a computer science undergrad in the, in the, and um, computer science back then was hardcore, mostly systems OS stuff, uh, database compiler. Um, now there's so much compi, right? Mm-hmm <affirmative> how do you look at the high school college curriculum experience slash folks who are nerding out on computer science? It's not one or two things. You've got a lot of, lot of things. I mean, look at Python, data engineering and emerging as a huge skill. What's it, what's it like for college kids now and high school kids? What, what do you think they should be doing if you had to give advice to your 16 year old self back a few years ago now in college? Um, I mean Python's not a great language, but it's super effective for coding and the datas were really relevant, but it's, you've got other language opportunities you've got tools to build. So you got a whole culture of young builders out there. What should, what should people gravitate to in your opinion and stay away from or >>Stay away from? That's a good question. I, I think that first of all, you're very right of the, the amount of developers is increasing so quickly. Um, and so we see more specialization. That's why we also see, you know, these SREs that are different than typical application engineering. You know, you get more specialization in job roles. Um, I think if, what I'd say to my 16 year old self is do projects, um, the, I learned most of my, what I've learned just on the job or online trying things, playing with different technologies, actually getting stuff out into the world, um, way more useful than what you'll learn in kind of a college classroom. I think classroom's great to, uh, get a basis, but you need to go out and experiment actually try things. >>You know? I think that's great advice. In fact, I would just say from my experience of doing all the hard stuff and cloud is so great for just saying, okay, I'm done, I'm banning the project. Move on. Yeah. Cause you know, it's not gonna work in the old days. You have to build this data center. I bought all this, you know, people hang on to the old, you know, project and try to force it out there. Now you >>Can launch a project now, >>Instant gratification, it ain't working <laugh> or this is shut it down and then move on to something new. >>Yeah, exactly. Instantly you should be able to do that much more quickly. Right. So >>You're saying get those projects and don't be afraid to shut it down. Mm-hmm <affirmative> that? Do you agree with that? >>Yeah. I think it's ex experiment. Uh, you're probably not gonna hit it rich on the first one. It's probably not gonna be that idea is the genius idea. So don't be afraid to get rid of things and just try over and over again. It's it's number of reps >>That'll win. I was commenting online. Elon Musk was gonna buy Twitter, that whole Twitter thing. And someone said, Hey, you know, what's the, I go look at the product group at Twitter's been so messed up because they actually did get it right on the first time. And we can just a great product. They could never change it because people would freak out and the utility of Twitter. I mean, they gotta add some things, the added button and we all know what they need to add, but the product, it was just like this internal dysfunction, the product team, what are we gonna work on? Don't change the product so that you kind of have there's opportunities out there where you might get the lucky strike right outta the gate. Yeah. Right. You don't know. >>It's almost a curse too. It's you're not gonna hit curse Twitter. You're not gonna hit a rich the second time too. So yeah. >><laugh> Johnny Dallas. Thanks for coming on the cube. Really appreciate it. Give a plug for your company. Um, take a minute to explain what you're working on. What you're look looking for. You hiring funding. Customers. Just give a plug, uh, last minute and kind the last word. >>Yeah. So, um, John Dallas from Ze, if you, uh, need any help with your DevOps, if you're a early startup, you don't have DevOps team, um, or you're trying to deploy across clouds, check us out z.com. Um, we are actively hiring. So if you are a software engineer excited about tools and cloud, or you're interested in helping getting this message out there, hit me up. Um, find us on z.co. >>Yeah. LinkedIn Twitter handle GitHub handle. >>Yeah. I'm the only Johnny on a LinkedIn and GitHub and underscore Johnny Dallas underscore on Twitter. All right. Um, >>Johnny Dallas, the youngest engineer working at Amazon, um, now 20 we're on great new project here in the cube. Builders are all young. They're growing into the business. They got cloud at their, at their back it's tailwind. I wish I was 20. Again, this is a I'm John for your host. Thanks for watching. Thanks. >>Welcome >>Back to the cubes. Live coverage of a AWS summit in San Francisco, California events are back, uh, ADAS summit in New York cities. This summer, the cube will be there as well. Check us out there lot. I'm glad we have events back. It's great to have everyone here. I'm John furry host of the cube. Dr. Matt wood is with me cube alumni now VP of business analytics division of AWS. Matt. Great to see you. Thank >>You, John. Great to be here. >>Appreciate it. I always call you Dr. Matt wood, because Andy jazzy always says Dr. Matt, we >>Would introduce you on the he's the one and only the one and >>Only Dr. Matt wood >>In joke. I love it. >>Andy style. And I think you had walkup music too on, you know, >>Too. Yes. We all have our own personalized walk. >>So talk about your new role. I not new role, but you're running up, um, analytics, business or AWS. What does that consist of right now? >>Sure. So I work, I've got what I consider to be the one of the best jobs in the world. Uh, I get to work with our customers and, uh, the teams at AWS, uh, to build the analytics services that millions of our customers use to, um, uh, slice dice, pivot, uh, better understand their day data, um, look at how they can use that data for, um, reporting, looking backwards and also look at how they can use that data looking forward. So predictive analytics and machine learning. So whether it is, you know, slicing and dicing in the lower level of, uh Hado and the big data engines, or whether you're doing ETR with glue or whether you're visualizing the data in quick side or building models in SageMaker. I got my, uh, fingers in a lot of pies. >>You know, one of the benefits of, uh, having cube coverage with AWS since 2013 is watching the progression. You were on the cube that first year we were at reinvent 2013 and look at how machine learning just exploded onto the scene. You were involved in that from day one is still day one, as you guys say mm-hmm <affirmative>, what's the big thing now. I mean, look at, look at just what happened. Machine learning comes in and then a slew of services come in and got SageMaker became a hot seller, right outta the gate. Mm-hmm <affirmative> the database stuff was kicking butt. So all this is now booming. Mm-hmm <affirmative> that was the real generational changeover for <inaudible> what's the perspective. What's your perspective on, yeah, >>I think how that's evolved. No, I think it's a really good point. I, I totally agree. I think for machine machine learning, um, there was sort of a Renaissance in machine learning and the application of machine learning machine learning as a technology has been around for 50 years, let's say, but, uh, to do machine learning, right? You need like a lot of data, the data needs to be high quality. You need a lot of compute to be able to train those models and you have to be able to evaluate what those mean as you apply them to real world problems. And so the cloud really removed a lot of the constraints. Finally, customers had all of the data that they needed. We gave them services to be able to label that data in a high quality way. There's all the compute. You need to be able to train the models <laugh> and so where you go. >>And so the cloud really enabled this Renaissance with machine learning, and we're seeing honestly, a similar Renaissance with, uh, with data, uh, and analytics. You know, if you look back, you know, five, 10 years, um, analytics was something you did in batch, like your data warehouse ran a analysis to do, uh, reconciliation at the end of the month. And then was it? Yeah. And so that's when you needed it, but today, if your Redshift cluster isn't available, uh, Uber drivers don't turn up door dash deliveries, don't get made. It's analytics is now central to virtually every business and it is central to every virtually every business is digital transformation. Yeah. And be able to take that data from a variety of sources here, or to query it with high performance mm-hmm <affirmative> to be able to actually then start to augment that data with real information, which usually comes from technical experts and domain experts to form, you know, wisdom and information from raw data. That's kind of, uh, what most organizations are trying to do when they kind of go through this analytics journey. It's >>Interesting, you know, Dave LAN and I always talk on the cube, but out, you know, the future and, and you look back, the things we were talking about six years ago are actually happening now. Yeah. And it's not a, a, a, you know, hyped up statement to say digital transformation. It actually's happening now. And there's also times where we bang our fist on the table, say, I really think this is so important. And Dave says, John, you're gonna die on that hill <laugh>. >>And >>So I I'm excited that this year, for the first time I didn't die on that hill. I've been saying data you're right. Data as code is the next infrastructure as code mm-hmm <affirmative>. And Dave's like, what do you mean by that? We're talking about like how data gets and it's happening. So we just had an event on our 80 bus startups.com site mm-hmm <affirmative>, um, a showcase with startups and the theme was data as code and interesting new trends emerging really clearly the role of a data engineer, right? Like an SRE, what an SRE did for cloud. You have a new data engineering role because of the developer on, uh, onboarding is massively increasing exponentially, new developers, data science, scientists are growing mm-hmm <affirmative> and the, but the pipelining and managing and engineering as a system. Yeah. Almost like an operating system >>And as a discipline. >>So what's your reaction to that about this data engineer data as code, because if you have horizontally scalable data, you've gotta be open that's hard. <laugh> mm-hmm <affirmative> and you gotta silo the data that needs to be siloed for compliance and reasons. So that's got a very policy around that. So what's your reaction to data as code and data engineering and >>Phenomenon? Yeah, I think it's, it's a really good point. I think, you know, like with any, with any technology, uh, project inside an organization, you know, success with analytics or machine learning is it's kind of 50% technology and then 50% cultural. And, uh, you have often domain experts. Those are, could be physicians or drug experts, or they could be financial experts or whoever they might be got deep domain expertise. And then you've got technical implementation teams and it's kind of a natural often repulsive force. I don't mean that rudely, but they, they just, they don't talk the same language. And so the more complex the domain and the more complex the technology, the stronger that repulsive force, and it can become very difficult for, um, domain experts to work closely with the technical experts, to be able to actually get business decisions made. And so what data engineering does and data engineering is in some cases team, or it can be a role that you play. >>Uh, it's really allowing those two disciplines to speak the same language it provides. You can think of it as plumbing, but I think of it as like a bridge, it's a bridge between like the technical implementation and the domain experts. And that requires like a very disparate range of skills. You've gotta understand about statistics. You've gotta understand about the implementation. You've gotta understand about the, it, you've gotta understand and understand about the domain. And if you could pull all of that together, that data engineering discipline can be incredibly transformative for an organization, cuz it builds the bridge between those two >>Groups. You know, I was advising some, uh, young computer science students at the sophomore junior level, uh, just a couple weeks ago. And I told 'em, I would ask someone at Amazon, this questions I'll ask you since you're, you've been in the middle of of it for years, they were asking me and I was trying to mentor them on. What, how do you become a data engineer from a practical standpoint, uh, courseware projects to work on how to think, um, not just coding Python cause everyone's coding in Python mm-hmm <affirmative> but what else can they do? So I was trying to help them and I didn't really know the answer myself. I was just trying to like kind of help figure it out with them. So what is the answer in your opinion or the thoughts around advice to young students who want to be data engineers? Cuz data scientists is pretty clear in what that is. Yeah. You use tools, you make visualizations, you manage data, you get answers and insights and apply that to the business. That's an application mm-hmm <affirmative>, that's not the, you know, sta standing up a stack or managing the infrastructure. What, so what does that coding look like? What would your advice be to >>Yeah, I think >>Folks getting into a data engineering role. >>Yeah. I think if you, if you believe this, what I said earlier about like 50% technology, 50% culture, like the, the number one technology to learn as a data engineer is the tools in the cloud, which allow you to aggregate data from virtually any source into something which is incrementally more valuable for the organization. That's really what data engineering is all about. It's about taking from multiple sources. Some people call them silos, but silos indicates that the, the storage is kind of fungible or UND differentiated. That that's really not the case. Success requires you to really purpose built well crafted high performance, low cost engines for all of your data. So understanding those tools and understanding how to use 'em, that's probably the most important technical piece. Um, and yeah, Python and programming and statistics goes along with that, I think. And then the most important cultural part, I think is it's just curiosity. >>Like you want to be able to, as a data engineer, you want to have a natural curiosity that drives you to seek the truth inside an organization, seek the truth of a particular problem and to be able to engage, cuz you're probably, you're gonna have some choice as you go through your career about which domain you end up in, like maybe you're really passionate about healthcare. Maybe you're really just passionate about your transportation or media, whatever it might be. And you can allow that to drive a certain amount of curiosity, but within those roles, like the domains are so broad, you kind of gotta allow your curiosity to develop and lead, to ask the right questions and engage in the right way with your teams. So because you can have all the technical skills in the world, but if you're not able to help the team's truths seek through that curiosity, you simply won't be successful. >>We just had a guest on 20 year old, um, engineer, founder, Johnny Dallas, who was 16 when he worked at Amazon youngest engineer at >>Johnny Dallas is a great name by the that's fantastic. It's his real name? >>It sounds like a football player. Rockstar. I should call Johnny. I have Johnny Johnny cube. Uh it's me. Um, so, but he's young and, and he, he was saying, you know, his advice was just do projects. >>Yeah. That's get hands on. >>Yeah. And I was saying, Hey, I came from the old days though, you get to stand stuff up and you hugged onto the assets. Cause you didn't wanna kill the cause you spent all this money and, and he's like, yeah, with cloud, you can shut it down. If you do a project that's not working and you get bad data, no one's adopting it or you don't want like it anymore. You shut it down. Just something >>Else. Totally >>Instantly abandoned it. Move onto something new. >>Yeah. With progression. Totally. And it, the, the blast radius of, um, decisions is just way reduced, gone. Like we talk a lot about like trying to, you know, in the old world trying to find the resources and get the funding. And it's like, right. I wanna try out this kind of random idea that could be a big deal for the organization. I need 50 million in a new data center. Like you're not gonna get anywhere. You, >>You do a proposal working backwards, document >>Kinds, all that, that sort of stuff got hoops. So, so all of that is gone, but we sometimes forget that a big part of that is just the, the prototyping and the experimentation and the limited blast radius in terms of cost. And honestly, the most important thing is time just being able to jump in there, get fingers on keyboards, just try this stuff out. And that's why at AWS, we have part of the reason we have so many services because we want, when you get into AWS, we want the whole toolbox to be available to every developer. And so, as your ideas developed, you may want to jump from, you know, data that you have, that's already in a database to doing realtime data. Yeah. And then you can just, you have the tools there. And when you want to get into real time data, you don't just have kineses, but you have real time analytics and you can run SQL again, that data is like the, the capabilities and the breadth, like really matter when it comes to prototyping and, and >>That's culture too. That's the culture piece, because what was once a dysfunctional behavior, I'm gonna go off the reservation and try something behind my boss's back or cause now as a side hustle or fun project. Yeah. So for fun, you can just code something. Yeah, >>Totally. I remember my first Haddo project, I found almost literally a decommissioned set of servers in the data center that no one was using. They were super old. They're about to be literally turned off. And I managed to convince the team to leave them on for me for like another month. And I installed her DUP on them and like, got them going. It's like, that just seems crazy to me now that I, I had to go and convince anybody not to turn these service off, but what >>It was like for that, when you came up with elastic map produce, because you said this is too hard, we gotta make it >>Easier. Basically. Yes. <laugh> I was installing Haddo version, you know, beta nor 0.9 or whatever it was. It's like, this is really hard. This is really hard. >>We simpler. All right. Good stuff. I love the, the walk down memory lane and also your advice. Great stuff. I think culture's huge. I think. And that's why I like Adam's keynote to reinvent Adam. Lesky talk about path minds and trail blazers because that's a blast radius impact. Mm-hmm <affirmative> when you can actually have innovation organically just come from anywhere. Yeah, that's totally cool. Totally. Let's get into the products. Serverless has been hot mm-hmm <affirmative> uh, we hear a lot about EKS is hot. Uh, containers are booming. Kubernetes is getting adopted. There's still a lot of work to do there. Lambda cloud native developers are booming, serverless Lambda. How does that impact the analytics piece? Can you share the hot, um, products around how that translates? Sure, absolutely. Yeah, the SageMaker >>Yeah, I think it's a, if you look at kind of the evolution and what customers are asking for, they're not, you know, they don't just want low cost. They don't just want this broad set of services. They don't just want, you know, those services to have deep capabilities. They want those services to have as lower operating cost over time as possible. So we kind of really got it down. We got built a lot of muscle, lot of services about getting up and running and experimenting and prototyping and turning things off and turn turning them on and turning them off. And like, that's all great. But actually the, you really only most projects start something once and then stop something once. And maybe there's an hour in between, or maybe there's a year, but the real expense in terms of time and, and complexity is sometimes in that running cost. Yeah. And so, um, we've heard very loudly and clearly from customers that they want, that, that running cost is just undifferentiated to them and they wanna spend more time on their work and in analytics that is, you know, slicing the data, pivoting the data, combining the data, labeling the data, training their models, uh, you know, running inference against their models, uh, and less time doing the operational pieces. >>So is that why the servers focus is there? >>Yeah, absolutely. It, it dramatically reduces the skill required to run these, uh, workloads of any scale. And it dramatically reduces the UND differentiated, heavy lifting, cuz you get to focus more of the time that you would've spent on the operation on the actual work that you wanna get done. And so if you look at something just like Redshift serverless that we launched a reinvent, you know, there's a kind of a, we have a lot of customers that want to run like a, uh, the cluster and they want to get into the, the weeds where there is benefit. We have a lot of customers that say, you know, I there's no benefit for me though. I just wanna do the analytics. So you run the operational piece, you're the experts we've run. You know, we run 60 million instant startups every single day. Like we do this a lot. Exactly. We understand the operation. I >>Want the answers come on. So >>Just give the answers or just let, give me the notebook or just give the inference prediction. So today for example, we announced, um, you know, serverless inference. So now once you've trained your machine learning model, just, uh, run a few, uh, lines of code or you just click a few buttons and then yeah, you got an inference endpoint that you do not have to manage. And whether you're doing one query against that endpoint, you know, per hour or you're doing, you know, 10 million, but we'll just scale it on the back end. You >>Know, I know we got not a lot of time left, but I want, wanna get your reaction to this. One of the things about the data lakes, not being data swamps has been from what I've been reporting and hearing from customers is that they want to retrain their machine learning algorithm. They want, they need that data. They need the, the, the realtime data and they need the time series data, even though the time has passed, they gotta store in the data lake mm-hmm <affirmative>. So now the data lakes main function is being reusing the data to actually retrain. Yeah, >>That's >>Right. It worked properly. So a lot of, lot of postmortems turn into actually business improvements to make the machine learning smarter, faster. You see that same way. Do you see it the same way? Yeah, >>I think it's, I think it's really interesting. No, I think it's really interesting because you know, we talk it's, it's convenient to kind of think of analytics as a very clear progression from like point a point B, but really it's, you are navigating terrain for which you do not have a map and you need a lot of help to navigate that terrain. Yeah. And so, you know, being, having these services in place, not having to run the operations of those services, being able to have those services be secure and well governed, and we added PII detection today, you know, something you can do automatically, uh, to be able to use their, uh, any unstructured data run queries against that unstructured data. So today we added, you know, um, text extract queries. So you can just say, well, uh, you can scan a badge for example, and say, well, what's the name on this badge? And you don't have to identify where it is. We'll do all of that work for you. So there's a often a, it's more like a branch than it is just a, a normal, uh, a to B path, a linear path. Uh, and that includes loops backwards. And sometimes you gotta get the results and use those to make improvements further upstream. And sometimes you've gotta use those. And when you're downstream, you'll be like, ah, I remember that. And you come back and bring it all together. So awesome. It's um, it's, uh, uh, it's a wonderful >>Work for sure. Dr. Matt wood here in the queue. Got just take the last word and give the update. Why you're here. What's the big news happening that you're announcing here at summit in San Francisco, California, and update on the, the business analytics >>Group? Yeah, I think, you know, one of the, we did a lot of announcements in the keynote, uh, encouraged everyone to take a look at that. Uh, this morning was Swami. Uh, one of the ones I'm most excited about, uh, is the opportunity to be able to take, uh, dashboards, visualizations. We're all used to using these things. We see them in our business intelligence tools, uh, all over the place. However, what we've heard from customers is like, yes, I want those analytics. I want their visualization. I want it to be up to date, but you know, I don't actually want to have to go my tools where I'm actually doing my work to another separate tool to be able to look at that information. And so today we announced, uh, one click public embedding for quick side dashboards. So today you can literally, as easily as embedding a YouTube video, you can take a dashboard that you've built inside, quick site cut and paste the HTML, paste it into your application and that's it. That's all you have to do. It takes seconds and >>It gets updated in real time. >>Updated in real time, it's interactive. You can do everything that you would normally do. You can brand it like this is there's no power by quick site button or anything like that. You can change the colors, make it fit in perfectly with your, with your applications. So that's sitting incredibly powerful way of being able to take a, uh, an analytics capability that today sits inside its own little fiefdom and put it just everywhere. It's, uh, very transformative. >>Awesome. And the, the business is going well. You got the serverless and your tailwind for you there. Good stuff, Dr. Matt with thank you. Coming on the cube >>Anytime. Thank >>You. Okay. This is the cubes cover of eight summit, 2022 in San Francisco, California. I'm John host cube. Stay with us with more coverage of day two after this short break.

(gentle music) >> From the Cube Studios in Palo Alto and Boston, connecting with thought leaders all around the world. This is theCube Conversation. >> Hi everybody, this is Dave Vellante, we're back at Cube on Cloud, and with me is Muddu Sudhakar. He's a long time alum of theCube, a technologist and executive, a serial entrepreneur and an investor. Welcome my friend, good to see you. >> Good to see you, Dave. Pleasure to be with you. Happy elections, I guess. >> Yeah, yeah. So I wanted to start, this work from home, pivot's been amazing, and you've seen the enterprise collaboration explode. I wrote a piece a couple months ago, looking at valuations of various companies, right around the snowflake IPO, I want to ask you about that, but I was looking at the valuations of various companies, at Spotify, and Shopify, and of course Zoom was there. And I was looking at just simple revenue multiples, and I said, geez, Zoom actually looks, might look undervalued, which is crazy, right? And of course the stock went up after that, and you see teams, Microsoft Teams, and Microsoft doing a great job across the board, we've written about that, you're seeing Webex is exploding, I mean, what do you make of this whole enterprise collaboration play? >> No, I think the look there is a trend here, right? So I think this probably trend started before COVID, but COVID is going to probably accelerate this whole digital transformation, right? People are going to work remotely a lot more, not everybody's going to come back to the offices even after COVID, so I think this whole collaboration through Slack, and Zoom, and Microsoft Teams and Webex, it's going to be the new game now, right? Both the video, audio and chat solutions, that's really going to help people like eyeballs. You're not going to spend time on all four of them, right? It's like everyday from a consumer side, you're going to spend time on your Gmail, Facebook, maybe Twitter, maybe Instagram, so like in the consumer side, on your personal life, you have something on the enterprise. The eyeballs are going to be in these platforms. >> Yeah. Well. >> But we're not going to take everything. >> Well, So you are right, there's a permanence to this, and I got a lot of ground to cover with you. And I always like our conversations mood because you tell it like it is, I'm going to stay on that work from home pivot. You know a lot about security, but you've seen three big trends, like mega trends in security, Endpoint, Identity Access Management, and Cloud Security, you're seeing this in the stock prices of companies like CrowdStrike, Zscaler, Okta- >> Right >> Sailpoint- >> Right, I mean, they exploded, as a result of the pandemic, and I think I'm inferring from your comment that you see that as permanent, but that's a real challenge from a security standpoint. What's the impact of Cloud there? >> No, it isn't impact but look, first is all the services required to be Cloud, right? See, the whole ideas for it to collaborate and do these things. So you cannot be running an application, like you can't be running conference and SharePoint oN-Prem, and try to on a Zoom and MS teams. So that's why, if you look at Microsoft is very clever, they went with Office 365, SharePoint 365, now they have MS Teams, so I think that Cloud is going to drive all these workloads that you have been talking about a lot, right? You and John have been saying this for years now. The eruption of Cloud and SAS services are the vehicle to drive this next-generation collaboration. >> You know what's so cool? So Cloud obviously is the topic, I wonder how you look at the last 10 years of Cloud, and maybe we could project forward, I mean the big three Cloud vendors, they're running it like $20 billion a quarter, and they're growing collectively, 35, 40% clips, so we're really approaching a hundred billion dollars for these three. And you hear stats like only 20% of the workloads are in the public Cloud, so it feels like we're just getting started. How do you look at the impact of Cloud on the market, as you say, the last 10 years, and what do you expect going forward? >> No, I think it's very fascinating, right? So I remember when theCube, you guys are talking about 10 years back, now it's been what? More than 10 years, 15 years, since AWS came out with their first S3 service back in 2006. >> Right. >> Right? so I think look, Cloud is going to accelerate even more further. The areas is going to accelerate is for different reasons. I think now you're seeing the initial days, it's all about startups, initial workloads, Dev test and QA test, now you're talking about real production workloads are moving towards Cloud, right? Initially it was backup, we really didn't care for backup they really put there. Now you're going to have Cloud health primary services, your primary storage will be there, it's not going to be an EMC, It's not going to be a NetApp storage, right? So workloads are going to shift from the business applications, and these business applications, will be running on the Cloud, and I'll make another prediction, make customer service and support. Customer service and support, again, we should be running on the Cloud. You're not want to run the thing on a Dell server, or an IBM server, or an HP server, with your own hosted environment. That model is not because there's no economies of scale. So to your point, what will drive Cloud for the next 10 years, will be economies of scale. Where can you take the cost? How can I save money? If you don't move to the Cloud, you won't save money. So all those workloads are going to go to the Cloud are people who really want to save, like global gradual custom, right? If you stay on the ASP model, a hosted, you're not going to save your costs, your costs will constantly go up from a SaaS perspective. >> So that doesn't bode well for all the On-prem guys, and you hear a lot of the vendors that don't own a Cloud that talk about repatriation, but the numbers don't support that. So what do those guys do? I mean, they're talking multi-Cloud, of course they're talking hybrid, that's IBM's big play, how do you see it? >> I think, look, see there, to me, multi-Cloud makes sense, right? You don't want one vendor that you never want to get, so having Amazon, Microsoft, Google, it gives them a multi-Cloud. Even hybrid Cloud does make sense, right? There'll be some workloads. It's like, we are still running On-prem environment, we still have mainframe, so it's never going to be a hundred percent, but I would say the majority, your question is, can we get to 60, 70, 80% workers in the next 10 years? I think you will. I think by 2025, more than 78% of the Cloud Migration by the next five years, 70% of workload for enterprise will be on the Cloud. The remaining 25, maybe Hybrid, maybe On-prem, but I get panics, really doesn't matter. You have saved and part of your business is running on the Cloud. That's your cost saving, that's where you'll see the economies of scale, and that's where all the growth will happen. >> So square the circle for me, because again, you hear the stat on the IDC stat, IBM Ginni Rometty puts it out there a lot that only 20% of the workloads are in the public Cloud, everything else is On-prem, but it's not a zero sum game, right? I mean the Cloud native stuff is growing like crazy, the On-prem stuff is flat to down, so what's going to happen? When you talk about 70% of the workloads will be in the Cloud, do you see those mission critical apps and moving into the car, I mean the insurance companies going to put their claims apps in the Cloud, or the financial services companies going to put their mission critical workloads in the Cloud, or they just going to develop new stuff that's Cloud native that is sort of interacts with the On-prem. How do you see that playing out? >> Yeah, no, I think absolutely, I think a very good question. So two things will happen. I think if you take an enterprise, right? Most businesses what they'll do is the workloads that they should not be running On-prem, they'll move it up. So obviously things like take, as I said, I use the word SharePoint, right? SharePoint and conference, all the knowledge stuff is still running on people's data centers. There's no reason. I understand, I've seen statistics that 70, 80% of the On-prem for SharePoint will move to SharePoint on the Cloud. So Microsoft is going to make tons of money on that, right? Same thing, databases, right? Whether it's CQL server, whether there is Oracle database, things that you are running as a database, as a Cloud, we move to the Cloud. Whether that is posted in Oracle Cloud, or you're running Oracle or Mongo DB, or Dynamo DB on AWS or SQL server Microsoft, that's going to happen. Then what you're talking about is really the App concept, the applications themselves, the App server. Is the App server is going to run On-prem, how much it's going to laureate outside? There may be a hybrid Cloud, like for example, Kafka. I may use a Purse running on a Kafka as a service, or I may be using Elasticsearch for my indexing on AWS or Google Cloud, but I may be running my App locally. So there'll be some hybrid place, but what I would say is for every application, 75% of your Comprende will be on the Cloud. So think of it like the Dev. So even for the On-prem app, you're not going to be a 100 percent On-prem. The competent, the billing materials will move to the Cloud, your Purse, your storage, because if you put it On-prem, you need to add all this, you need to have all the whole things to buy it and hire the people, so that's what is going to happen. So from a competent perspective, 70% of your bill of materials will move to the Cloud, even for an On-prem application. >> So, Of course, the susification of the industry in the last decade and in my three favorite companies last decade, you've worked for two of them, Tableau, ServiceNow, and Splunk. I want to ask you about those, but I'm interested in the potential disruption there. I mean, you've got these SAS companies, Salesforce of course is another one, but they can't get started in 1999. What do you see happening with those? I mean, we're basically building these sort of large SAS, platforms, now. Do you think that the Cloud native world that developers can come at this from an angle where they can disrupt those companies, or are they too entrenched? I mean, look at service now, I mean, I don't know, $80 billion market capital where they are, they bigger than Workday, I mean, just amazing how much they've grown and you feel like, okay, nothing can stop them, but there's always disruption in this industry, what are your thoughts on that. >> Not very good with, I think there'll be disrupted. So to me actually to your point, ServiceNow is now close to a 100 billion now, 95 billion market coverage, crazy. So from evaluation perspective, so I think the reason they'll be disrupted is that the SAS vendors that you talked about, ServiceNow, and all this plan, most of these services, they're truly not a multi-tenant or what do you call the Cloud Native. And that is the Accenture. So because of that, they will not be able to pass the savings back to the enterprises. So the cost economics, the economics that the Cloud provides because of the multi tenancy ability will not. The second reason there'll be disrupted is AI. So far, we talked about Cloud, but AI is the core. So it's not really Cloud Native, Dave, I look at the AI in a two-piece. AI is going to change, see all the SAS vendors were created 20 years back, if you remember, was an operator typing it, I don't respond administered we'll type a Splunk query. I don't need a human to type a query anymore, system will actually find it, that's what the whole security game has changed, right? So what's going to happen is if you believe in that, that AI, your score will disrupt all the SAS vendors, so one angle SAS is going to have is a Cloud. That's where you make the Cloud will take up because a SAS application will be Cloudified. Being SAS is not Cloud, right? Second thing is SAS will be also, I call it, will be AI-fied. So AI and machine learning will be trying to drive at the core so that I don't need that many licenses. I don't need that many humans. I don't need that many administrators to manage, I call them the tuners. Once you get a driverless car, you don't need a thousand tuners to tune your Tesla, or Google Waymo car. So the same philosophy will happen is your Dev Apps, your administrators, your service management, people that you need for service now, and these products, Zendesk with AI, will tremendously will disrupt. >> So you're saying, okay, so yeah, I was going to ask you, won't the SAS vendors, won't they be able to just put, inject AI into their platforms, and I guess I'm inferring saying, yeah, but a lot of the problems that they're solving, are going to go away because of AI, is that right? And automation and RPA and things of that nature, is that right? >> Yes and no. So I'll tell you what, sorry, you have asked a very good question, let's answer, let me rephrase that question. What you're saying is, "Why can't the existing SAS vendors do the AI?" >> Yes, right. >> Right, >> And there's a reason they can't do it is their pricing model is by number of seats. So I'm not going to come to Dave, and say, come on, come pay me less money. It's the same reason why a board and general lover build an electric car. They're selling 10 million gasoline cars. There's no incentive for me, I'm not going to do any AI, I'm going to put, I'm not going to come to you and say, hey, buy me a hundred less license next year from it. So that is one reason why AI, even though these guys do any AI, it's going to be just so I call it, they're going to, what do you call it, a whitewash, kind of like you put some paint brush on it, trying to show you some AI you did from a marketing dynamics. But at the core, if you really implement the AI with you take the driver out, how are you going to change the pricing model? And being a public company, you got to take a hit on the pricing model and the price, and it's going to have a stocking part. So that, to your earlier question, will somebody disrupt them? The person who is going to disrupt them, will disrupt them on the pricing model. >> Right. So I want to ask you about that, because we saw a Snowflake, and it's IPO, we were able to pour through its S-1, and they have a different pricing model. It's a true Cloud consumption model, Whereas of course, most SAS companies, they're going to lock you in for at least one year term, maybe more, and then, you buy the license, you got to pay X. If you, don't use it, you still got to pay for it. Snowflake's different, actually they have a different problem, that people are using it too much and the sea is driving the CFO crazy because the bill is going up and up and up, but to me, that's the right model, It's just like the Amazon model, if you can justify it, so how do you see the pricing, that consumption model is actually, you're seeing some of the On-prem guys at HPE, Dell, they're doing as a service. They're kind of taking a page out of the last decade SAS model, so I think pricing is a real tricky one, isn't it? >> No, you nailed it, you nailed it. So I think the way in which the Snowflake there, how the disruptors are data warehouse, that disrupted the open source vendors too. Snowflake distributed, imagine the playbook, you disrupted something as the $ 0, right? It's an open source with Cloudera, Hortonworks, Mapper, that whole big data that you want me to, or that market is this, that disrupting data warehouses like Netezza, Teradata, and the charging more money, they're making more money and disrupting at $0, because the pricing models by consumption that you talked about. CMT is going to happen in the service now, Zen Desk, well, 'cause their pricing one is by number of seats. People are going to say, "How are my users are going to ask?" right? If you're an employee help desk, you're back to your original health collaborative. I may be on Slack, I could be on zoom, I'll maybe on MS Teams, I'm going to ask by using usage model on Slack, tools by employees to service now is the pricing model that people want to pay for. The more my employees use it, the more value I get. But I don't want to pay by number of seats, so the vendor, who's going to figure that out, and that's where I look, if you know me, I'm right over as I started, that's what I've tried to push that model look, I love that because that's the core of how you want to change the new game. >> I agree. I say, kill me with that problem, I mean, some people are trying to make it a criticism, but you hit on the point. If you pay more, it's only because you're getting more value out of it. So I wanted to flip the switch here a little bit and take a customer angle. Something that you've been on all sides. And I want to talk a little bit about strategies, you've been a strategist, I guess, once a strategist, always a strategist. How should organizations be thinking about their approach to Cloud, it's cost different for different industries, but, back when the cube started, financial services Cloud was a four-letter word. But of course the age of company is going to matter, but what's the framework for figuring out your Cloud strategy to get to your 70% and really take advantage of the economics? Should I be Mono Cloud, Multi-Cloud, Multi-vendor, what would you advise? >> Yeah, no, I mean, I mean, I actually call it the tech stack. Actually you and John taught me that what was the tech stack, like the lamp stack, I think there is a new Cloud stack needs to come, and that I think the bottomline there should be... First of all, anything with storage should be in the Cloud. I mean, if you want to start, whether you are, financial, doesn't matter, there's no way. I come from cybersecurity side, I've seen it. Your attackers will be more with insiders than being on the Cloud, so storage has to be in the Cloud then come compute, Kubernetes. If you really want to use containers and Kubernetes, it has to be in the public Cloud, leverage that have the computer on their databases. That's where it can be like if your data is so strong, maybe run it On-prem, maybe have it on a hosted model for when it comes to database, but there you have a choice between hybrid Cloud and public Cloud choice. Then on top when it comes to App, the app itself, you can run locally or anywhere, the App and database. Now the areas that you really want to go after to migrate is look at anything that's an enterprise workload that you don't need people to manage it. You want your own team to move up in the career. You don't want thousand people looking at... you don't want to have a, for example, IT administrators to call central people to the people to manage your compute storage. That workload should be more, right? You already saw Sierra moved out to Salesforce. We saw collaboration already moved out. Zoom is not running locally. You already saw SharePoint with knowledge management mode up, right? With a box, drawbacks, you name anything. The next global mode is a SAS workloads, right? I think Workday service running there, but work data will go into the Cloud. I bet at some point Zendesk, ServiceNow, then either they put it on the public Cloud, or they have to create a product and public Cloud. To your point, these public Cloud vendors are at $2 trillion market cap. They're they're bigger than the... I call them nation States. >> Yeah, >> So I'm servicing though. I mean, there's a 2 trillion market gap between Amazon and Azure, I'm not going to compete with them. So I want to take this workload to run it there. So all these vendors, if you see that's where Shandra from Adobe is pushing this right, Adobe, Workday, Anaplan, all the SAS vendors we'll move them into the public Cloud within these vendors. So those workloads need to move out, right? So that all those things will start, then you'll start migrating, but I call your procurement. That's where the RPA comes in. The other thing that we didn't talk about, back to your first question, what is the next 10 years of Cloud will be RPA? That third piece to Cloud is RPA because if you have your systems On-prem, I can't automate them. I have to do a VPN into your house there and then try to automate your systems, or your procurement, et cetera. So all these RPA vendors are still running On-prem, most of them, whether it's UI path automation anywhere. So the Cloud should be where the brain should be. That's what I call them like the octopus analogy, the brain is in the Cloud, the tentacles are everywhere, they should manage it. But if my tentacles have to do a VPN with your house to manage it, I'm always will have failures. So if you look at the why RPA did not have the growth, like the Snowflake, like the Cloud, because they are running it On-prem, most of them still. 80% of the RP revenue is On-prem, running On-prem, that needs to be called clarified. So AI, RPA and the SAS, are the three reasons Cloud will take off. >> Awesome. Thank you for that. Now I want to flip the switch again. You're an investor or a multi-tool player here, but so if you're, let's say you're an ecosystem player, and you're kind of looking at the landscape as you're in an investor, of course you've invested in the Cloud, because the Cloud is where it's at, but you got to be careful as an ecosystem player to pick a spot that both provides growth, but allows you to have a moat as, I mean, that's why I'm really curious to see how Snowflake's going to compete because they're competing with AWS, Microsoft, and Google, unlike, Frank, when he was at service now, he was competing with BMC and with on-prem and he crushed it, but the competitors are much more capable here, but it seems like they've got, maybe they've got a moat with MultiCloud, and that whole data sharing thing, we'll see. But, what about that? Where are the opportunities? Where's that white space? And I know there's a lot of white space, but what's the framework to look at, from an investor standpoint, or even a CEO standpoint, where you want to put place your bets. >> No, very good question, so look, I did something. We talk as an investor in the board with many companies, right? So one thing that says as an investor, if you come back and say, I want to create a next generation Docker or a computer, there's no way nobody's going to invest. So that we can motor off, even if you want to do object storage or a block storage, I mean, I've been an investor board member of so many storage companies, there's no way as an industry, I'll write a check for a compute or storage, right? If you want to create a next generation network, like either NetSuite, or restart Juniper, Cisco, there is no way. But if you come back and say, I want to create a next generation Viper for remote working environments, where AI is at the core, I'm interested in that, right? So if you look at how the packets are dropped, there's no intelligence in either not switching today. The packets come, I do it. The intelligence is not built into the network with AI level. So if somebody comes with an AI, what good is all this NVD, our GPS, et cetera, if you cannot do wire speed, packet inspection, looking at the content and then route the traffic. If I see if it's a video package, but in UN Boston, there's high interview day of they should be loading our package faster, because you are a premium ISP. That intelligence has not gone there. So you will see, and that will be a bad people will happen in the network, switching, et cetera, right? So that is still an angle. But if you work and it comes to platform services, remember when I was at Pivotal and VMware, all models was my boss, that would, yes, as a platform, service is a game already won by the Cloud guys. >> Right. (indistinct) >> Silicon Valley Investors, I don't think you want to invest in past services, right? I mean, you might come with some lecture edition database to do some updates, there could be some game, let's say we want to do a time series database, or some metrics database, there's always some small angle, but the opportunity to go create a national database there it's very few. So I'm kind of eliminating all the black spaces, right? >> Yeah. >> We have the white spaces that comes in is the SAS level. Now to your point, if I'm Amazon, I'm going to compete with Snowflake, I have Redshift. So this is where at some point, these Cloud platforms, I call them aircraft carriers. They're not going to stay on the aircraft carriers, they're going to own the land as well. So they're going to move up to the SAS space. The question is you want to create a SAS service like CRM. They are not going to create a CRM like service, they may not create a sales force and service now, but if you're going to add a data warehouse, I can very well see Azure, Google, and AWS, going to create something to compute a Snowflake. Why would I not? It's so close to my database and data warehouse, I already have Redshift. So that's going to be nightlights, same reason, If you look at Netflix, you have a Netflix and you have Amazon prime. Netflix runs on Amazon, but you have Amazon prime. So you have the same model, you have Snowflake, and you'll have Redshift. The both will help each other, there'll be a... What do you call it? Coexistence will happen. But if you really want to invest, you want to invest in SAS companies. You do not want to be investing in a compliment players. You don't want to a feature. >> Yeah, that's great, I appreciate that perspective. And I wonder, so obviously Microsoft play in SAS, Google's got G suite. And I wonder if people often ask the Andy Jassy, you're going to move up the stack, you got to be an application, a SAS vendor, and you never say never with Atavist, But I wonder, and we were talking to Jerry Chen about this, years ago on theCube, and his angle was that Amazon will play, but they'll play through developers. They'll enable developers, and they'll participate, they'll take their, lick off the cone. So it's going to be interesting to see how directly Amazon plays, but at some point you got Tam expansion, you got to play in that space. >> Yeah, I'll give you an example of knowing, I got acquired by a couple of times by EMC. So I learned a lot from Joe Tucci and Paul Merage over the years. see Paul and Joe, what they did is to look at how 20 years, and they are very close to Boston in your area, Joe, what games did is they used to sell storage, but you know what he did, he went and bought the Apps to drive them. He bought like Legato, he bought Documentum, he bought Captiva, if you remember how he acquired all these companies as a services, he bought VMware to drive that. So I think the good angle that Microsoft has is, I'm a SAS player, I have dynamics, I have CRM, I have SharePoint, I have Collaboration, I have Office 365, MS Teams for users, and then I have the platform as Azure. So I think if I'm Amazon, (indistinct). I got to own the apps so that I can drive this workforce on my platform. >> Interesting. >> Just going to developers, like I know Jerry Chan, he was my peer a BMF. I don't think just literally to developers and that model works in open source, but the open source game is pretty much gone, and not too many companies made money. >> Well, >> Most companies pretty much gone. >> Yeah, he's right. Red hats not bad idea. But it's very interesting what you're saying there. And so, hey, its why Oracle wants to have Tiktok, running on their platform, right? I mean, it's going to. (laughing) It's going to drive that further integration. I wanted to ask you something, you were talking about, you wouldn't invest in storage or compute, but I wonder, and you mentioned some commentary about GPU's. Of course the videos has been going crazy, but they're now saying, okay, how do we expand our Team, they make the acquisition of arm, et cetera. What about this DPU thing, if you follow that, that data processing unit where they're like hyper dis-aggregation and then they reaggregate, and as an offload and really to drive data centric workloads. Have you looked at that at all? >> I did, I think, and that's a good angle. So I think, look, it's like, it goes through it. I don't know if you remember in your career, we have seen it. I used to get Silicon graphics. I saw the first graphic GPU, right? That time GPU was more graphic processor unit, >> Right, yeah, work stations. >> So then become NPUs at work processing units, right? There was a TCP/IP office offloading, if you remember right, there was like vector processing unit. So I think every once in a while the industry, recreated this separate unit, as a co-processor to the main CPU, because main CPU's inefficient, and it makes sense. And then Google created TPU's and then we have the new world of the media GPU's, now we have DPS all these are good, but what's happening is, all these are driving for machine learning, AI for the training period there. Training period Sometimes it's so long with the workloads, if you can cut down, it makes sense. >> Yeah. >> Because, but the question is, these aren't so specialized in nature. I can't use it for everything. >> Yup. >> I want Ideally, algorithms to be paralyzed, I want the training to be paralyzed, I want so having deep use and GPS are important, I think where I want to see them as more, the algorithm, there should be more investment from the NVIDIA's and these guys, taking the algorithm to be highly paralyzed them. (indistinct) And I think that still has not happened in industry yet. >> All right, so we're pretty much out of time, but what are you doing these days? Where are you spending your time, are you still in Stealth, give us a little glimpse. >> Yeah, no, I'm out of the Stealth, I'm actually the CEO of Aisera now, Aisera, obviously I invested with them, but I'm the CEO of Aisero. It's funded by Menlo ventures, Norwest, True, along with Khosla ventures and Ram Shriram is a big investor. Robin's on the board of Google, so these guys, look, we are going out to the collaboration game. How do you automate customer service and support for employees and then users, right? In this whole game, we talked about the Zoom, Slack and MS Teams, that's what I'm spending time, I want to create next generation service now. >> Fantastic. Muddu, I always love having you on you, pull punches, you tell it like it is, that you're a great visionary technologist. Thanks so much for coming on theCube, and participating in our program. >> Dave, it's always a pleasure speaking to you sir. Thank you. >> Okay. Keep it right there, there's more coming from Cuba and Cloud right after this break. (slow music)

(gentle music) >> From the Cube Studios in Palo Alto and Boston, connecting with thought leaders all around the world. This is theCube Conversation. >> Hi everybody, this is Dave Vellante, we're back at Cube on Cloud, and with me is Muddu Sudhakar. He's a long time alum of theCube, a technologist and executive, a serial entrepreneur and an investor. Welcome my friend, good to see you. >> Good to see you, Dave. Pleasure to be with you. Happy elections, I guess. >> Yeah, yeah. So I wanted to start, this work from home, pivot's been amazing, and you've seen the enterprise collaboration explode. I wrote a piece a couple months ago, looking at valuations of various companies, right around the snowflake IPO, I want to ask you about that, but I was looking at the valuations of various companies, at Spotify, and Shopify, and of course Zoom was there. And I was looking at just simple revenue multiples, and I said, geez, Zoom actually looks, might look undervalued, which is crazy, right? And of course the stock went up after that, and you see teams, Microsoft Teams, and Microsoft doing a great job across the board, we've written about that, you're seeing Webex is exploding, I mean, what do you make of this whole enterprise collaboration play? >> No, I think the look there is a trend here, right? So I think this probably trend started before COVID, but COVID is going to probably accelerate this whole digital transformation, right? People are going to work remotely a lot more, not everybody's going to come back to the offices even after COVID, so I think this whole collaboration through Slack, and Zoom, and Microsoft Teams and Webex, it's going to be the new game now, right? Both the video, audio and chat solutions, that's really going to help people like eyeballs. You're not going to spend time on all four of them, right? It's like everyday from a consumer side, you're going to spend time on your Gmail, Facebook, maybe Twitter, maybe Instagram, so like in the consumer side, on your personal life, you have something on the enterprise. The eyeballs are going to be in these platforms. >> Yeah. Well. >> But we're not going to take everything. >> Well, So you are right, there's a permanence to this, and I got a lot of ground to cover with you. And I always like our conversations mood because you tell it like it is, I'm going to stay on that work from home pivot. You know a lot about security, but you've seen three big trends, like mega trends in security, Endpoint, Identity Access Management, and Cloud Security, you're seeing this in the stock prices of companies like CrowdStrike, Zscaler, Okta- >> Right >> Sailpoint- >> Right, I mean, they exploded, as a result of the pandemic, and I think I'm inferring from your comment that you see that as permanent, but that's a real challenge from a security standpoint. What's the impact of Cloud there? >> No, it isn't impact but look, first is all the services required to be Cloud, right? See, the whole ideas for it to collaborate and do these things. So you cannot be running an application, like you can't be running conference and SharePoint oN-Prem, and try to on a Zoom and MS teams. So that's why, if you look at Microsoft is very clever, they went with Office 365, SharePoint 365, now they have MS Teams, so I think that Cloud is going to drive all these workloads that you have been talking about a lot, right? You and John have been saying this for years now. The eruption of Cloud and SAS services are the vehicle to drive this next-generation collaboration. >> You know what's so cool? So Cloud obviously is the topic, I wonder how you look at the last 10 years of Cloud, and maybe we could project forward, I mean the big three Cloud vendors, they're running it like $20 billion a quarter, and they're growing collectively, 35, 40% clips, so we're really approaching a hundred billion dollars for these three. And you hear stats like only 20% of the workloads are in the public Cloud, so it feels like we're just getting started. How do you look at the impact of Cloud on the market, as you say, the last 10 years, and what do you expect going forward? >> No, I think it's very fascinating, right? So I remember when theCube, you guys are talking about 10 years back, now it's been what? More than 10 years, 15 years, since AWS came out with their first S3 service back in 2006. >> Right. >> Right? so I think look, Cloud is going to accelerate even more further. The areas is going to accelerate is for different reasons. I think now you're seeing the initial days, it's all about startups, initial workloads, Dev test and QA test, now you're talking about real production workloads are moving towards Cloud, right? Initially it was backup, we really didn't care for backup they really put there. Now you're going to have Cloud health primary services, your primary storage will be there, it's not going to be an EMC, It's not going to be a ETAP storage, right? So workloads are going to shift from the business applications, and this business App again, will be running on the Cloud, and I'll make another prediction, make customer service and support. Customer service and support, again, we should be running on the Cloud. You're not want to run the thing on a Dell server, or an IBM server, or an HP server, with your own hosted environment. That model is not because there's no economies of scale. So to your point, what will drive Cloud for the next 10 years, will be economies of scale. Where can you take the cost? How can I save money? If you don't move to the Cloud, you won't save money. So all those workloads are going to go to the Cloud are people who really want to save, like global gradual custom, right? If you stay on the ASP model, a hosted, you're not going to save your costs, your costs will constantly go up from a SAS perspective. >> So that doesn't bode well for all the On-prem guys, and you hear a lot of the vendors that don't own a Cloud that talk about repatriation, but the numbers don't support that. So what do those guys do? I mean, they're talking multi-Cloud, of course they're talking hybrid, that's IBM's big play, how do you see it? >> I think, look, see there, to me, multi-Cloud makes sense, right? You don't want one vendor that you never want to get, so having Amazon, Microsoft, Google, it gives them a multi-Cloud. Even hybrid Cloud does make sense, right? There'll be some workloads. It's like, we are still running On-prem environment, we still have mainframe, so it's never going to be a hundred percent, but I would say the majority, your question is, can we get to 60, 70, 80% workers in the next 10 years? I think you will. I think by 2025, more than 78% of the Cloud Migration by the next five years, 70% of workload for enterprise will be on the Cloud. The remaining 25, maybe Hybrid, maybe On-prem, but I get panics, really doesn't matter. You have saved and part of your business is running on the Cloud. That's your cost saving, that's where you'll see the economies of scale, and that's where all the growth will happen. >> So square the circle for me, because again, you hear the stat on the IDC stat, IBM Ginni Rometty puts it out there a lot that only 20% of the workloads are in the public Cloud, everything else is On-prem, but it's not a zero sum game, right? I mean the Cloud native stuff is growing like crazy, the On-prem stuff is flat to down, so what's going to happen? When you talk about 70% of the workloads will be in the Cloud, do you see those mission critical apps and moving into the car, I mean the insurance companies going to put their claims apps in the Cloud, or the financial services companies going to put their mission critical workloads in the Cloud, or they just going to develop new stuff that's Cloud native that is sort of interacts with the On-prem. How do you see that playing out? >> Yeah, no, I think absolutely, I think a very good question. So two things will happen. I think if you take an enterprise, right? Most businesses what they'll do is the workloads that they should not be running On-prem, they'll move it up. So obviously things like take, as I said, I use the word SharePoint, right? SharePoint and conference, all the knowledge stuff is still running on people's data centers. There's no reason. I understand, I've seen statistics that 70, 80% of the On-prem for SharePoint will move to SharePoint on the Cloud. So Microsoft is going to make tons of money on that, right? Same thing, databases, right? Whether it's CQL server, whether there is Oracle database, things that you are running as a database, as a Cloud, we move to the Cloud. Whether that is posted in Oracle Cloud, or you're running Oracle or Mongo DB, or Dynamo DB on AWS or SQL server Microsoft, that's going to happen. Then what you're talking about is really the App concept, the applications themselves, the App server. Is the App server is going to run On-prem, how much it's going to laureate outside? There may be a hybrid Cloud, like for example, Kafka. I may use a Purse running on a Kafka as a service, or I may be using Elasticsearch for my indexing on AWS or Google Cloud, but I may be running my App locally. So there'll be some hybrid place, but what I would say is for every application, 75% of your Comprende will be on the Cloud. So think of it like the Dev. So even for the On-prem app, you're not going to be a 100 percent On-prem. The competent, the billing materials will move to the Cloud, your Purse, your storage, because if you put it On-prem, you need to add all this, you need to have all the whole things to buy it and hire the people, so that's what is going to happen. So from a competent perspective, 70% of your bill of materials will move to the Cloud, even for an On-prem application. >> So, Of course, the susification of the industry in the last decade and in my three favorite companies last decade, you've worked for two of them, Tableau, ServiceNow, and Splunk. I want to ask you about those, but I'm interested in the potential disruption there. I mean, you've got these SAS companies, Salesforce of course is another one, but they can't get started in 1999. What do you see happening with those? I mean, we're basically building these sort of large SAS, platforms, now. Do you think that the Cloud native world that developers can come at this from an angle where they can disrupt those companies, or are they too entrenched? I mean, look at service now, I mean, I don't know, $80 billion market capital where they are, they bigger than Workday, I mean, just amazing how much they've grown and you feel like, okay, nothing can stop them, but there's always disruption in this industry, what are your thoughts on that. >> Not very good with, I think there'll be disrupted. So to me actually to your point, ServiceNow is now close to a 100 billion now, 95 billion market coverage, crazy. So from evaluation perspective, so I think the reason they'll be disrupted is that the SAS vendors that you talked about, ServiceNow, and all this plan, most of these services, they're truly not a multi-tenant or what do you call the Cloud Native. And that is the Accenture. So because of that, they will not be able to pass the savings back to the enterprises. So the cost economics, the economics that the Cloud provides because of the multi tenancy ability will not. The second reason there'll be disrupted is AI. So far, we talked about Cloud, but AI is the core. So it's not really Cloud Native, Dave, I look at the AI in a two-piece. AI is going to change, see all the SAS vendors were created 20 years back, if you remember, was an operator typing it, I don't respond administered we'll type a Splunk query. I don't need a human to type a query anymore, system will actually find it, that's what the whole security game has changed, right? So what's going to happen is if you believe in that, that AI, your score will disrupt all the SAS vendors, so one angle SAS is going to have is a Cloud. That's where you make the Cloud will take up because a SAS application will be Cloudified. Being SAS is not Cloud, right? Second thing is SAS will be also, I call it, will be AI-fied. So AI and machine learning will be trying to drive at the core so that I don't need that many licenses. I don't need that many humans. I don't need that many administrators to manage, I call them the tuners. Once you get a driverless car, you don't need a thousand tuners to tune your Tesla, or Google Waymo car. So the same philosophy will happen is your Dev Apps, your administrators, your service management, people that you need for service now, and these products, Zendesk with AI, will tremendously will disrupt. >> So you're saying, okay, so yeah, I was going to ask you, won't the SAS vendors, won't they be able to just put, inject AI into their platforms, and I guess I'm inferring saying, yeah, but a lot of the problems that they're solving, are going to go away because of AI, is that right? And automation and RPA and things of that nature, is that right? >> Yes and no. So I'll tell you what, sorry, you have asked a very good question, let's answer, let me rephrase that question. What you're saying is, "Why can't the existing SAS vendors do the AI?" >> Yes, right. >> Right, >> And there's a reason they can't do it is their pricing model is by number of seats. So I'm not going to come to Dave, and say, come on, come pay me less money. It's the same reason why a board and general lover build an electric car. They're selling 10 million gasoline cars. There's no incentive for me, I'm not going to do any AI, I'm going to put, I'm not going to come to you and say, hey, buy me a hundred less license next year from it. So that is one reason why AI, even though these guys do any AI, it's going to be just so I call it, they're going to, what do you call it, a whitewash, kind of like you put some paint brush on it, trying to show you some AI you did from a marketing dynamics. But at the core, if you really implement the AI with you take the driver out, how are you going to change the pricing model? And being a public company, you got to take a hit on the pricing model and the price, and it's going to have a stocking part. So that, to your earlier question, will somebody disrupt them? The person who is going to disrupt them, will disrupt them on the pricing model. >> Right. So I want to ask you about that, because we saw a Snowflake, and it's IPO, we were able to pour through its S-1, and they have a different pricing model. It's a true Cloud consumption model, Whereas of course, most SAS companies, they're going to lock you in for at least one year term, maybe more, and then, you buy the license, you got to pay X. If you, don't use it, you still got to pay for it. Snowflake's different, actually they have a different problem, that people are using it too much and the sea is driving the CFO crazy because the bill is going up and up and up, but to me, that's the right model, It's just like the Amazon model, if you can justify it, so how do you see the pricing, that consumption model is actually, you're seeing some of the On-prem guys at HPE, Dell, they're doing as a service. They're kind of taking a page out of the last decade SAS model, so I think pricing is a real tricky one, isn't it? >> No, you nailed it, you nailed it. So I think the way in which the Snowflake there, how the disruptors are data warehouse, that disrupted the open source vendors too. Snowflake distributed, imagine the playbook, you disrupted something as the $ 0, right? It's an open source with Cloudera, Hortonworks, Mapper, that whole big data that you want me to, or that market is this, that disrupting data warehouses like Netezza, Teradata, and the charging more money, they're making more money and disrupting at $0, because the pricing models by consumption that you talked about. CMT is going to happen in the service now, Zen Desk, well, 'cause their pricing one is by number of seats. People are going to say, "How are my users are going to ask?" right? If you're an employee help desk, you're back to your original health collaborative. I may be on Slack, I could be on zoom, I'll maybe on MS Teams, I'm going to ask by using usage model on Slack, tools by employees to service now is the pricing model that people want to pay for. The more my employees use it, the more value I get. But I don't want to pay by number of seats, so the vendor, who's going to figure that out, and that's where I look, if you know me, I'm right over as I started, that's what I've tried to push that model look, I love that because that's the core of how you want to change the new game. >> I agree. I say, kill me with that problem, I mean, some people are trying to make it a criticism, but you hit on the point. If you pay more, it's only because you're getting more value out of it. So I wanted to flip the switch here a little bit and take a customer angle. Something that you've been on all sides. And I want to talk a little bit about strategies, you've been a strategist, I guess, once a strategist, always a strategist. How should organizations be thinking about their approach to Cloud, it's cost different for different industries, but, back when the cube started, financial services Cloud was a four-letter word. But of course the age of company is going to matter, but what's the framework for figuring out your Cloud strategy to get to your 70% and really take advantage of the economics? Should I be Mono Cloud, Multi-Cloud, Multi-vendor, what would you advise? >> Yeah, no, I mean, I mean, I actually call it the tech stack. Actually you and John taught me that what was the tech stack, like the lamp stack, I think there is a new Cloud stack needs to come, and that I think the bottomline there should be... First of all, anything with storage should be in the Cloud. I mean, if you want to start, whether you are, financial, doesn't matter, there's no way. I come from cybersecurity side, I've seen it. Your attackers will be more with insiders than being on the Cloud, so storage has to be in the Cloud and encompass compute whoever it is. If you really want to use containers and Kubernetes, it has to be in the public Cloud, leverage that have the computer on their databases. That's where it can be like if your data is so strong, maybe run it On-prem, maybe have it on a hosted model for when it comes to database, but there you have a choice between hybrid Cloud and public Cloud choice. Then on top when it comes to App, the app itself, you can run locally or anywhere, the App and database. Now the areas that you really want to go after to migrate is look at anything that's an enterprise workload that you don't need people to manage it. You want your own team to move up in the career. You don't want thousand people looking at... you don't want to have a, for example, IT administrators to call central people to the people to manage your compute storage. That workload should be more, right? You already saw Sierra moved out to Salesforce. We saw collaboration already moved out. Zoom is not running locally. You already saw SharePoint with knowledge management mode up, right? With a box, drawbacks, you name anything. The next global mode is a SAS workloads, right? I think Workday service running there, but work data will go into the Cloud. I bet at some point Zendesk, ServiceNow, then either they put it on the public Cloud, or they have to create a product and public Cloud. To your point, these public Cloud vendors are at $2 trillion market cap. They're they're bigger than the... I call them nation States. >> Yeah, >> So I'm servicing though. I mean, there's a 2 trillion market gap between Amazon and Azure, I'm not going to compete with them. So I want to take this workload to run it there. So all these vendors, if you see that's where Shandra from Adobe is pushing this right, Adobe, Workday, Anaplan, all the SAS vendors we'll move them into the public Cloud within these vendors. So those workloads need to move out, right? So that all those things will start, then you'll start migrating, but I call your procurement. That's where the RPA comes in. The other thing that we didn't talk about, back to your first question, what is the next 10 years of Cloud will be RPA? That third piece to Cloud is RPA because if you have your systems On-prem, I can't automate them. I have to do a VPN into your house there and then try to automate your systems, or your procurement, et cetera. So all these RPA vendors are still running On-prem, most of them, whether it's UI path automation anywhere. So the Cloud should be where the brain should be. That's what I call them like the octopus analogy, the brain is in the Cloud, the tentacles are everywhere, they should manage it. But if my tentacles have to do a VPN with your house to manage it, I'm always will have failures. So if you look at the why RPA did not have the growth, like the Snowflake, like the Cloud, because they are running it On-prem, most of them still. 80% of the RP revenue is On-prem, running On-prem, that needs to be called clarified. So AI, RPA and the SAS, are the three reasons Cloud will take off. >> Awesome. Thank you for that. Now I want to flip the switch again. You're an investor or a multi-tool player here, but so if you're, let's say you're an ecosystem player, and you're kind of looking at the landscape as you're in an investor, of course you've invested in the Cloud, because the Cloud is where it's at, but you got to be careful as an ecosystem player to pick a spot that both provides growth, but allows you to have a moat as, I mean, that's why I'm really curious to see how Snowflake's going to compete because they're competing with AWS, Microsoft, and Google, unlike, Frank, when he was at service now, he was competing with BMC and with on-prem and he crushed it, but the competitors are much more capable here, but it seems like they've got, maybe they've got a moat with MultiCloud, and that whole data sharing thing, we'll see. But, what about that? Where are the opportunities? Where's that white space? And I know there's a lot of white space, but what's the framework to look at, from an investor standpoint, or even a CEO standpoint, where you want to put place your bets. >> No, very good question, so look, I did something. We talk as an investor in the board with many companies, right? So one thing that says as an investor, if you come back and say, I want to create a next generation Docker or a computer, there's no way nobody's going to invest. So that we can motor off, even if you want to do object storage or a block storage, I mean, I've been an investor board member of so many storage companies, there's no way as an industry, I'll write a check for a compute or storage, right? If you want to create a next generation network, like either NetSuite, or restart Juniper, Cisco, there is no way. But if you come back and say, I want to create a next generation Viper for remote working environments, where AI is at the core, I'm interested in that, right? So if you look at how the packets are dropped, there's no intelligence in either not switching today. The packets come, I do it. The intelligence is not built into the network with AI level. So if somebody comes with an AI, what good is all this NVD, our GPS, et cetera, if you cannot do wire speed, packet inspection, looking at the content and then route the traffic. If I see if it's a video package, but in UN Boston, there's high interview day of they should be loading our package faster, because you are a premium ISP. That intelligence has not gone there. So you will see, and that will be a bad people will happen in the network, switching, et cetera, right? So that is still an angle. But if you work and it comes to platform services, remember when I was at Pivotal and VMware, all models was my boss, that would, yes, as a platform, service is a game already won by the Cloud guys. >> Right. (indistinct) >> Silicon Valley Investors, I don't think you want to invest in past services, right? I mean, you might come with some lecture edition database to do some updates, there could be some game, let's say we want to do a time series database, or some metrics database, there's always some small angle, but the opportunity to go create a national database there it's very few. So I'm kind of eliminating all the black spaces, right? >> Yeah. >> We have the white spaces that comes in is the SAS level. Now to your point, if I'm Amazon, I'm going to compete with Snowflake, I have Redshift. So this is where at some point, these Cloud platforms, I call them aircraft carriers. They're not going to stay on the aircraft carriers, they're going to own the land as well. So they're going to move up to the SAS space. The question is you want to create a SAS service like CRM. They are not going to create a CRM like service, they may not create a sales force and service now, but if you're going to add a data warehouse, I can very well see Azure, Google, and AWS, going to create something to compute a Snowflake. Why would I not? It's so close to my database and data warehouse, I already have Redshift. So that's going to be nightlights, same reason, If you look at Netflix, you have a Netflix and you have Amazon prime. Netflix runs on Amazon, but you have Amazon prime. So you have the same model, you have Snowflake, and you'll have Redshift. The both will help each other, there'll be a... What do you call it? Coexistence will happen. But if you really want to invest, you want to invest in SAS companies. You do not want to be investing in a compliment players. You don't want to a feature. >> Yeah, that's great, I appreciate that perspective. And I wonder, so obviously Microsoft play in SAS, Google's got G suite. And I wonder if people often ask the Andy Jassy, you're going to move up the stack, you got to be an application, a SAS vendor, and you never say never with Atavist, But I wonder, and we were talking to Jerry Chen about this, years ago on theCube, and his angle was that Amazon will play, but they'll play through developers. They'll enable developers, and they'll participate, they'll take their, lick off the cone. So it's going to be interesting to see how directly Amazon plays, but at some point you got Tam expansion, you got to play in that space. >> Yeah, I'll give you an example of knowing, I got acquired by a couple of times by EMC. So I learned a lot from Joe Tucci and Paul Merage over the years. see Paul and Joe, what they did is to look at how 20 years, and they are very close to Boston in your area, Joe, what games did is they used to sell storage, but you know what he did, he went and bought the Apps to drive them. He bought like Legato, he bought Documentum, he bought Captiva, if you remember how he acquired all these companies as a services, he bought VMware to drive that. So I think the good angle that Microsoft has is, I'm a SAS player, I have dynamics, I have CRM, I have SharePoint, I have Collaboration, I have Office 365, MS Teams for users, and then I have the platform as Azure. So I think if I'm Amazon, (indistinct). I got to own the apps so that I can drive this workforce on my platform. >> Interesting. >> Just going to developers, like I know Jerry Chan, he was my peer a BMF. I don't think just literally to developers and that model works in open source, but the open source game is pretty much gone, and not too many companies made money. >> Well, >> Most companies pretty much gone. >> Yeah, he's right. Red hats not bad idea. But it's very interesting what you're saying there. And so, hey, its why Oracle wants to have Tiktok, running on their platform, right? I mean, it's going to. (laughing) It's going to drive that further integration. I wanted to ask you something, you were talking about, you wouldn't invest in storage or compute, but I wonder, and you mentioned some commentary about GPU's. Of course the videos has been going crazy, but they're now saying, okay, how do we expand our Team, they make the acquisition of arm, et cetera. What about this DPU thing, if you follow that, that data processing unit where they're like hyper dis-aggregation and then they reaggregate, and as an offload and really to drive data centric workloads. Have you looked at that at all? >> I did, I think, and that's a good angle. So I think, look, it's like, it goes through it. I don't know if you remember in your career, we have seen it. I used to get Silicon graphics. I saw the first graphic GPU, right? That time GPU was more graphic processor unit, >> Right, yeah, work stations. >> So then become NPUs at work processing units, right? There was a TCP/IP office offloading, if you remember right, there was like vector processing unit. So I think every once in a while the industry, recreated this separate unit, as a co-processor to the main CPU, because main CPU's inefficient, and it makes sense. And then Google created TPU's and then we have the new world of the media GPU's, now we have DPS all these are good, but what's happening is, all these are driving for machine learning, AI for the training period there. Training period Sometimes it's so long with the workloads, if you can cut down, it makes sense. >> Yeah. >> Because, but the question is, these aren't so specialized in nature. I can't use it for everything. >> Yup. >> I want Ideally, algorithms to be paralyzed, I want the training to be paralyzed, I want so having deep use and GPS are important, I think where I want to see them as more, the algorithm, there should be more investment from the NVIDIA's and these guys, taking the algorithm to be highly paralyzed them. (indistinct) And I think that still has not happened in industry yet. >> All right, so we're pretty much out of time, but what are you doing these days? Where are you spending your time, are you still in Stealth, give us a little glimpse. >> Yeah, no, I'm out of the Stealth, I'm actually the CEO of Aisera now, Aisera, obviously I invested with them, but I'm the CEO of Aisero. It's funded by Menlo ventures, Norwest, True, along with Khosla ventures and Ram Shriram is a big investor. Robin's on the board of Google, so these guys, look, we are going out to the collaboration game. How do you automate customer service and support for employees and then users, right? In this whole game, we talked about the Zoom, Slack and MS Teams, that's what I'm spending time, I want to create next generation service now. >> Fantastic. Muddu, I always love having you on you, pull punches, you tell it like it is, that you're a great visionary technologist. Thanks so much for coming on theCube, and participating in our program. >> Dave, it's always a pleasure speaking to you sir. Thank you. >> Okay. Keep it right there, there's more coming from Cuba and Cloud right after this break. (slow music)

>>from around the globe. It's the Cube with digital coverage of VM World 2020 brought to you by VM Ware and its ecosystem partners. >>Welcome back. I'm stew Minuteman. And this is the Cube coverage of VM World 2020 our 11th year covering the show. And of course, networking has been a big growth story. Four vm where for a number years, going back to the Neisseria acquisition for over billion dollars. Really leveraging all of the virtual networking and SD wins been another hot topic. A couple years ago, it was the Velo Cloud acquisition. And now happy to welcome to the program two of the Velo Cloud business executives. First of all, we have Sanjay you Paul. He is the senior vice president and general manager of that mentioned division of VM Ware. Enjoining him is Craig Connors, whose the vice president and chief technology officer for that same division he was the chief architect of fellow Cloud Craig Sanjay. Thank you for joining us. >>Thank you. >>Thank you. >>Alright, So, Sanjay, first of all nice, you know, call outs and a lot of news that we're gonna get to dig into in the morning Keynote you know Pat Sanjay the team. Uh, you know, a couple of years ago, Pat talked about, you know, the next billion dollar businesses networking your team helping toe add to that. And, ah, a new term thrown out that we're gonna get to talk a little bit about. Our friends at Gartner termed it sassy. So I'll let you, you know, explain a little bit the news that this wonderful new four letter acronym that the Gartner spots that us. Um, why don't you start us there? >>Yeah. I couldn't be more excited to be here at VM World announcing this expansion of what's going on in Ste. Van. So I see Van was all about bringing branch office users to their applications and doing that in a really efficient manner, throwing out all those complex hardware appliances and simplifying everything with software, increasing the quality of experience for the user. But now what has happened is, you know they want security to be dealt off in the same way. Same simplicity and automation, same great user experience. And at the same time, you know, blocking all these attacks that are coming in from various places and covert has just driven that even more meaning that you need to get to networking and network security to be brought together in this simple and automated way while keeping the end user experience be great on while giving I t what they need, which is high security and good manageability. So this acronym sassy, secure access Service edge It really is the bringing together off net networking and network security both as a service. That service angle is really important. And the exciting part about what we're announcing at the at we'd be involved. Here is the expansion off the S, Stephen Pops and Gateways into becoming Sassy pops. And now customers can get a whole slew of services both networking and network security services from the anyway. So that's the announcement. >>Wonderful, Craig. You know, since since since you've helped with so much of the architecture here, I wanna kick out a little bit. When? When it comes to the security stuff that Sandy was talking about. I remember dealing back with land optimization solutions, trying to remember. Okay, wait. When can I compress? When can I encrypt? You know what do I lay on top of it? Um, SD when you know fits into this story, help us understand. What does you Novello Cloud do? What is it from the partner ecosystem? You know, So you know there's there's some good partners that you have helping us. Help us understand. You know what exactly we mean because security is such a broad term. >>Yeah, thanks. So there's four components in the sassy pop that we're bringing together. Obviously, VM Ware Ston is one of those Sanjay mentioned the changing workforce. We have off net users that aren't coming from behind Stu and Branch Mawr and Mawr today. So we also have secure access powered by our workspace. One solution that's bringing those remote users into the sassy pop and then two different security solutions. Secure Web gateway functionality. And that is the next generation secure Web gateway that includes things like DLP and remote browser isolation. And as you saw in the news today that's powered through ROM agreement with Menlo Security. And then we have next Gen firewall ing for securing corporate traffic. And that's powered by our own VM Ware NSX firewall, which has been recently augmented with our last line acquisition. So those are the four key components coming together within our sassy pop. And of course, we also have our continued partnership with the scaler for our our large joint via Mersey Scaler customer base to facilitate that security solution as well. >>Yeah. So, Sanjay, maybe it would make sense. As you said, you've got ah, portfolio now in this market, Uh, got v d I You've got edge walk us. Or if you could, some of the most important use cases for your business. >>Yeah. So you know the use case that has taken off in the last several years since the advent of SD. When is to get sites? So these would be branch offices and a branch office could be an agricultural field. It could be a plane. It could be an oil rig. You know, it could be any one of these. This is a branch office. So these sites how to get them connected to the applications that they need to get access to so telemedicine example. So how do you get doctors, diagnosticians and all that that are sitting in their clinics and hospitals? You get great access to the applications on the applications can be anywhere they don't have to be back in your data centers. You know, after data center consolidation happened, some of the apse you know, we're in the data centers. But then, after the cloud advent came, then the apse were everywhere there in the public cloud, both in I s as well as in SAS. And then now they're moving back towards the edge because of the advent of edge computing. So that's really the primary use case that s Stephen has been all about. And that's where you know, we have staked a claim to be the leader in that space. Now, with Covic, the use cases are expanding and obviously with work from home, you take the same telemedicine example. The doctors and diagnosticians who used to work from hospitals and clinics now have to get it done when they're working from the home. And, of course, this is a business critical app. And so what do you do? How do you get these folks who are at home to get the same quality of experience, the same security, the same manageability, but at the same time, you cannot disturb the other people who are working from home because that is an entire ecosystem. You serve the business user, but you also serve the needs off the home users keeping privacy in mind. So these two cases branch access and then remote access, which great talked about these are the primary use cases, and then they break down by vertical. So depending on whether it's health or it's federal or its manufacturing or its finance, then you have sub use cases underneath that. But this is how we from a from a V C n standpoint, you know, claimed to have 17,000 customers that have deployed our networking solutions. Ah, large fraction of those being our stu and solutions today. >>Yeah. Okay, Craig, one of those terms that gets thrown around a lot in the industry iss scale. I look at certain parts of the market, you know, say kubernetes kubernetes was about, you know, bringing together lots of sites. But now we're spending a lot of time talking about edge, which is a whole different scale. Same thing if you talk about devices and I o t can you speak to us a little bit about, you know, fundamentally, You know that branch architecture, I think, set you up well, but when I start thinking about EJ, it probably is. You know, uh, you know, larger number and some different challenges. So So maybe maybe some differences that happen to happen in the code to make that happen? >>Yeah, absolutely. I mean, I think you know, we've been fortunate in the success that we've had in RST ran deployments. More than 280,000 branches deployed with RST ran solution. So scale is something that's been near and dear to our heart from the beginning. How do you build a multi tenant service in the cloud? How do you build cloud scale? And we brought that aspect into all of these components through container ization, as you mentioned through horizontal scalability, bringing them into our own dedicated pops. Where we control the hardware we control the hyper visor, obviously built on top of the m r E. S s. I that allows us to deliver scale in a way that other competitors may not be able to achieve. >>Yeah, son Sanjay, it's been a couple of years since the acquisition by VM Ware. Give us a little bit of an update, if you would as to, you know, what I'm sure. Obviously, customer reach on adoption greatly increased by by the channel and go to market. But, you know, directionally And you know, any difference in use cases that that you've seen now being part of the M R. >>Yeah, absolutely. No. There's there's been an expansion in the use cases, which is why this fit was very good, meaning Vela Cloud being a part of VM way. So if you look at it, what the wider network does, where the place where you know ties, we tie it all together and tie walk together. If you look at the end User computing, which Greg was mentioning, the clients are digital workspace, workspace. One client. Well, those clients now will connect to our sassy pop. So that's one tie in that obviously we couldn't have and we were an independent company. The other side of it, when you go from the sassy pop into the data center, then we tie into NSX. Not just that the Cloud firewall, but in the data center itself so we can extend micro segmentation. So that's another kid use case that is becoming prevalent. Then the third aspect of this is really when you run inside telecom operators and VM Ware has a very robust business as it goes after telcos with the software stack and so running our gateways running our sassy pops at the telco environment, then gets us to integrate with what's going on with our telecom business unit. We also have what we're doing on our visibility and Tellem entry perspective. So we had acquired a company called Neons A, which were crafting into on edge network intelligence product that then fits into VM Ware's overall. For in the space we have, ah, product suite called We Realize Network Insight. And so that network inside, combined with what we're doing from from a business unit standpoint, gives customers an end to end view from from an individual client through the cloud, even up to an individual container. And so we call this client to cloud to container. All of this is possible because we're part of VM Ware. In the last piece of this is something that's gonna happen. We believe next year, which is edge computing when edge computing comes in. You know, I jokingly say to my team this acronym of Sassy, which is s a s e you gotta insert of sea in the middle. So it becomes s a CSE and out of that pronounced that says sacks E. So I know it sounds a little bit awkward, but that c stands for the compute. So as you put compute in the computer is going to run in the edge, the computer that's going to run in the pop and the sassy is gonna become, you know, sexy. And who better to give that to you than VM Ware? Because, you know, we have that management stack that controls compute for customers today. >>Well, definitely. I think you're you're you're drawing from the Elon Musk school of You know how to name acronyms in products Do so sometimes It's really interesting. Uh, Craig, talk us a little a little bit about that vision to get there, you know? What do we need to do as an industry? How's the product mature? Give us a little bit of that. That that roadmap forward, if you would >>Yeah, I think you know Sassy is really the convergence of five key things. One is this distributed pop architecture. Er So how do you deliver this? Compute and these services near to the customers premise. And that's something that companies like us have have had years of experience and building out. And then the four key components of sassy that we have, you know, zero trust access S t u N next generation firewall ing and secure Web Gateway. We're fortunate, as Sanjay said, to be part of the M where where we don't have to invent some of these components because we already have a works based one and we already have the NSX distributed firewall. And we already have the m r s d when and so ah, lot of companies you'll see are trying to to put all of these parts together. We already had them in house. We're putting them under one umbrella, the one place where we didn't have a technology within VM Ware. That's where we're leveraging these partnerships with memo and see scaler to get it done. >>Sanjay e think the telco use case that you talked about is really important One we've definitely seen, you know, really good adoption from from VM Ware working in those spaces. One place I I wanna understand, though, if you look at vcf and how that moves. Thio ws toe Azure, even toe Oracle's talked about in the keynote this morning. How does SD win fit into just that kind of traditional hybrid cloud deployment we've been talking about for the last couple of years? >>Yeah, that's a great question. So, you know, when you look at Ste Van, that name can notes software defined, but it doesn't. It's not specific to branch office access at all. And when you look at DCF, what VCF is doing is really modernizing your compute stack. And now you can run this modern compute stack of your own data centers. You can run it in the private cloud. You can run it on the public cloud as well, right? So you can put these tax on Amazon, azure, Google and and then run them. So what an STV in architecture allows you to do is not just get your branch and secure users to access the applications that are running on those computes tax. But you can also intermediate between them. So when customers come in and they say that they want simplified networking and security between two public cloud providers, this is the multi cloud use case, then getting that networking toe work in a seamless fashion with high security can be done by an S Stephen architectures. And our sassy pop is perfectly situated to do that. And all you would need to do is add virtual services at the sassy pop. An enterprise customer would come in and they say they want some peanuts here and some VP CS there they want to look at them in an automated fashion. They want to set it up, you know, with the point and click architectures and not have to do all this manual work, and we can get that done. So there's a there's a really good fit between Sassy s Stephen and where VCF is going to solve the multi cloud problem that people are having right now. >>Excellent. I really appreciate that. That that explanation last thing, I guess I'll ask is, you know, here at VM World, I'm sure you've got a lot of breakouts. You've probably got some good customers sharing some of their stories. So anonymous if it has to be. But we would love if you've got either views of some examples, uh, to help bring home that the value that your solutions are delivering. >>Great. When I start with one and then creek and fill in the other one, eso let me start off with the telemedicine example. So we have, you know, customer called M. D. Anderson Cancer Center. And these are the folks in in Texas, and they provide a really, really important service. And that service is, you know, providing patients who are critically ill to give them all the kinds of services, whether they come into the clinic or whether they're across a network connection. And they're radiologists and doctors air sitting at home. So I think it's very important use case and, you know, we started off by deploying in the hospitals and the clinics. But when Cove, it hit there to send a lot of these folks to work from home, and then when they work from home, it's really this device that goes in which you can see here. This is our Belo cloud edge. And this, um, has said in one of the my my favorite song says, There's nothing this box can't do. All right, so this box goes home into the, you know, doctors home, and then they are talking to their patient, getting telemedicine done because it solves the problem off performance. Um, you know that some of those folks have literally said that this thing was a God sent. That's not very often that networking people, you know, have been told that their products are like godsend. So I'll take that to the limit of grain of salt. But we are solving a very important problems increasing the performance were also this is a secure device, so it's not gonna be hacked into and then makes things much more manageable from a nightie standpoint. So this is one of those use cases, and there's plenty of them. But Craig has his favorites all turn it over to him. >>There's so many I could bore you. I think you know one really interesting. One is a new investment banking company that we have is a customer, and they used to go work in the office five days a week, and everything that they did was on their computer in the office and with this pivot to work from home post Kobe, did they think their future is a flexible work workforce where sometimes there in the office and sometimes they're remote. And when the remote there are deep peeing into their desktop, that is sting in their office and with their like to remote access VPN solution, they had to connect, Say, I'm a user sitting in Southern California. I'm connecting my VPN to Chicago to then come across the network back to Los Angeles to get to my desktop so that I can work from home. And now with Sassy, my secure access client from workspace one connects to the closest asi pop I get to my desktop in my office. Tremendously lower, Leighton see tremendously higher quality to experience for the users, whether they're, you know, at home, on the road anywhere they need to access that device. >>Craig Sanjay, thank you so much. Love the customer example. Sanjay. Good job bringing out the box. Uh, show people It's a software world. But the sassy hardware is still needed at times, too. Thanks for joining us. All >>right. Thank you, Stew. Thanks. Great. Cheers. All >>right. Stay with us for more coverage of VM World 2020. I'm still minimum. Thanks. As always for watching the cube

>>from Menlo Park, California In the heart of Silicon Valley, it's the Cube covering cloud now. Awards 2020 Brought to you by Silicon Angle Media. Now here's Sonia category. >>Hi, and welcome to the Cube. I'm your host Sonia category, and we're on the ground at Facebook headquarters in Menlo Park, California covering Cloud now's top women entrepreneurs in Cloud Innovation Awards. >>Joining us today is Melon Yen, founder and partner of operator Collective Madeleine, Welcome to the Cube. Thank you so much. So tell us a little bit about your background. >>So Operator Collective is actually my fourth organization that been apart of starting, and all of them have had an aspect of it that had a strong community to it. And so that was one of the reasons why, um, as you hear about in a second, I could put together this kind of crazy idea for a fund that looks like no other. >>Um, So what inspired you to start this company? And how did you navigate getting funding? >>Sure. So? So, because that operator collective is my fourth company. The 1st 1 was actually a nonprofit. The 2nd 1 was a venture backed company that we took from 0 to 100 million in public in less than three years, and the 3rd 1 was something called Faster, which is the world's largest B two b B two b community for SAS Softwares of service, the company that was a venture backed startup that we took from 0 to 100 million in public in less than three years. Even though I helped launch it, I didn't actually officially joined as an employee until about 18 months in, and by that time it's employees 65 I noticed a number of things, which is there were largely homogenous group of people who were there before me, all really great people. But you tend to know people like you and the hyper growth stages of startups. You tend to turn around and say, Who can I get? And so you and you turn to the people that you know, And so you end up with companies that look like yourself and so spent a lot of time looking at what was going on in the venture world, which is that in the area that I focus on, which is enterprise and software enterprise software. It is over 90% male in terms of veces as well as founders and the world revolves around in the venture world revolves around veces and founders. And so I looked around and said, Well, where the operators, the people who build and grow and scale up these companies, they're largely not. They're not efficiently and effectively part of this ecosystem and then second, where the women and people of color And so but as I started to dig in more and talk to people, what I realized was that the VCs and founders actually wanted to bring in the operators. They wanted to bring in the people with different backgrounds, but the network's didn't naturally overlap. And so I thought, there's got to be a way to bring them in, because I know the operators and the operators also want to participate. But the system isn't optimized to make it efficient or friendly are comfortable for them to be able to participate. So that's why I decided to put operator collective together. >>Wow, So you are key noting today for cloud. Now, um, what has this experience been like? And what is the main message you want to give to the award winners and to the cloud now community. >>So it's incredibly inspiring to be with all of the women who are being honored tonight as well as, frankly, the organizers. The organization itself Cloud now is incredibly impactful. And so one of the reasons I was so excited to be asked is a number of the women who were being honored. I either know or have heard of. And the recognition is something that is very important because we need to tell the stories and recognize these people who are not. Maybe the usual suspects, the ones who maybe not our everyday names. And so I was super excited to be here. >>So you were talking about how it's about 90% male in the VC and founder community, Um, in one of your articles, which are amazing, by the way you said, Don't let the excuse of cultural fit be a vehicle for perpetuating sameness, and I thought that was so profound. So, um, are you still seeing this notion of cultural fit being a huge issue and if so, what can be done? Teoh mitigate it? Yeah, I think there's >>more awareness now of the fact that if you hire for cultural fit, you'll end up with 65 people who are exactly like you. And that's not optimizing for a successful company because right there studies that show that diverse teams outperform out innovate, homogeneous teams. But what's also interesting is the same study says that, but homogeneous teams are more certain that they've gotten to the right answer, even if they've got into the answer less less often than the diverse teams. And so when you have people who are just like you, then everyone agrees with each other than you don't realize that. Maybe there's another way of looking at something and so cultural fit is is a warning sign. I think to say that. Okay, well, there just like me, I'm very comfortable sometimes. Being uncomfortable is good. >>That's a great message. I think it's really hard to to say like, Oh, I'm okay with being comfortable. Um, so in, in in in one of your other articles, you bring up this idea of, um, don't check all the boxes, but rather fill in the gaps. So can you explain more about that? >>Yeah. So the idea behind that is, if you look for only the typical candidates. The ones who maybe think of a startup founder went to Stanford. Where's the hoodie? Right? Did computer science then that's fine. There are plenty of those people who have been successful, but you're ignoring all the people who didn't. And so, in fact, I'm the beneficiary of people who were willing to not just check all the boxes because I >>didn't >>check any of the boxes. If you look at, if you look at my background, I should not have been able to raise. Is the first time fund and a first time fund manager to be able to raise a $50 million fund because I'm a um Ah, let's see, I'm a solo GP, right? So, General partner who hasn't been a VC before with the first time fund, I don't have the traditional venture background. My previous background was I was an intellectual property attorney. Um, then help start a company as a result of that and then and then also when you check the boxes, 40% of the seas went to Stanford or Harvard, and when you look at the numbers, I didn't check all the boxes, but precisely because I didn't check all the boxes, I was able to actually look at this differently and say, Hey, that's not the model that that I want to build. And frankly, if I tried to build the same model that everyone else did, my background so doesn't look like anything. I wouldn't have been successful. And by taking it and saying, Look, I'm gonna build a model that's totally different from the ground up that allowed me to build a platform in a community that looked like no one else is as a result of that was able to raise money from institutional investors, for instance, which very rarely back first time funds. And so, by not checking all the boxes, um, I was able to build a model, but by other people also saying, Look, she doesn't check any of our typical boxes. But we >>would like this >>idea because it's so different than everyone else is. We will. We are now, you know, part of the fund >>and sometimes different is good, and it's what's what's needed? Absolutely. Um, so speaking of that, um, in terms of operator collective, what workplace environment are you trying to strive for. >>So what we say is we seek to back founders from all backgrounds who believe you share are believed that culture, diversity and operational excellence are a key part of building truly great companies. So we strive to be inclusive way. We strive to have a variety of backgrounds. We use a lot of the tools that of the companies, because we focus only on enterprise and B two B software and technology and infrastructure. And so we also try to use a lot of those tools. So we are mostly women team and we are distributed team. We largely work out of our homes and we work a lot on Zoom and we all a lot of us have kids too, and so what we do is we adjust the schedule so we can do drop off in the morning. We work like crazy, right? We work long hours, but we also do it so that people can can take their kids to doctor's appointments or pick up their kids at the end of the day. But we what was important to me was that we created environment that worked with our busy lives, and it wasn't that we were trying to take, take take these incredibly talented women and make it fit into just the corporate norm. Because you can have an incredibly successful work relationship. I mean, you can have an incredibly successful, um career if you don't have to sacrifice everything else in your life for it, >>right? Right. And that balance is so important. Um, so what advice would you give to aspiring female entrepreneurs who maybe have, ah, not so technical background or who are struggling to navigate in this male dominated industry. >>So one of the things >>I talked about in my keynote today was was that you never get this right. You're never going to raise a fund. If if you do this, you're never gonna raise a fund. And so when you're starting a company, you will go when you talk to a lot of people as you should, because you will get lots of great information. Ah, lot of people are going to say, Well, you're never gonna have a You're never going to start a company if you don't have a technical co founder never going to start a company. If you're gonna try to do X and So while you some might say, Well, you should just ignore those people actually say, Don't ignore those people because they are saying that other people are going to think that too. But think of a way to counter that. And that actually help make the operator collective business model stronger. Because we said Okay, we know that's gonna be the mindset. Let's turn it around and actually make this a strength. And so, for female founders or any founders, what I would say is listen to a lot of people talk to a lot of people here what they have to say. Ultimately, trust your instinct. Trust your gut. And because you know what's best for the company that you're trying to build. >>Great words of advice. Melon. Thank you so much for being on the Cube. Thank you >>so much for having me. Absolutely. >>I'm Sonita Gari. Thanks for watching the Cube. Stay tuned for more. >>Yeah, yeah, yeah.

>>Trump and low park California in the heart of Silicon Valley. It's the cube covering cloud now. Awards 2020 brought to you by Silicon angle media. Now here's Sonya to garden. >>Hi and welcome to the cube. I'm your host Sonia to Gary. And we're on the ground at Facebook headquarters in Menlo park, California covering cloud now's top women entrepreneurs in cloud innovation awards. Joining us today is modest to get day, the cofounder of branch motto. Welcome to the cube. Thank you so much for having me. So you're receiving an award today for being a top female entrepreneur in cloud innovation. How does that feel? >>It feels awesome. I'm humbled to be in such amazing company with some great ladies that have started really great companies, so pretty excited to be here. >>Great. So just give us a brief overview of your background. >>Sure. Uh, my background, well, I probably don't have the regular Silicon Valley background. I was born and raised in communist Romania, uh, in a pretty small town called Barco, uh, in the Rijo Romania called Moldavia. I was very good at math. Um, and my parents, uh, pushed me to explore applying to schools in the United States, which I did. Um, and I applied to 23 colleges and the DOB, uh, getting a full scholarship from Cornell where I studied computer engineering. Um, I dreamt of working for big companies, which I did for a while, uh, until one day when I remember I was doing a master's to Stanford and one professor told me I was, I told him, I was like, I don't think I could ever start a company. And he was like, what if you don't? Like, who do you think? Well, so I was like, Oh, I never thought about it that way. Um, and that's when I think my entrepreneurial dream started. And a few years later I started, um, phone co-founders and started a few different companies that eventually ended up being branch. That's a long answer to your question. >>No, that's perfect. So what inspired you to start branch and how did you navigate getting funding? >>Um, it's a, it's an interesting story. I think we came together, my cofounders and I were in business school, Stanford, we all want to start a company and we did what all business school students do. We just started something that sounded cool but maybe it didn't have such a big market. Um, and uh, then pivoted and ended up building an app. So we worked on an app or the mobile photo printing app called kindred. We worked on the Apple for quite some time. It was, um, over a year we sold over 10,000 photo books. I've seen a lot of images of babies and pets and we reviewed manually every single book and we had a really hard time growing. So if you think about the mobile ecosystem today, and if you compare it to the web on the web, the web is a pretty democratic system. >>You, um, you have the HTTP protocol and you are able to put together a website and make sure that the website gets found through social media to research to all this other platforms. Apps are much harder to discover. Um, the app ecosystem is owned by the platforms. And we had a really hard time applying. I was coming from the web world and all the things I had done to market websites just in the work with the apps. And it was hard. Uh, you know, you could only Mark at the top and how out all the content inside the app. That's a lot more interesting than the app itself. So we, we felt that we were like really, really struggling and we would need it to kind of shut the company down. And then we realized that one of the things that we were trying to build for us to a disability to allow people to share and get to content within the app, which is in our case was photo books was actually something that everyone in the ecosystem needed. >>So we, we asked a lot of people and it seemed like this was a much bigger need. Uh, then, you know, the photo books. And, uh, we had started to already build it to solve our own problem. So we started building a linking and attribution platform, um, to help other app. And mobile companies grow and understand their user journey and help build like interesting connections for the user. So, you know, our mission is to, um, to help people discover content within apps, uh, through links that always work. Uh, and it's been a wonderful, like an F pretty exciting journey ever since. That's really inspiring and, and solving a real world problem, a real world problem. >> So it's interesting when you ask about fundraising. Uh, it was so hard to raise money for the photo book app. And we raised actually from, uh, uh, pay our ventures and they actually, even now I remember, uh, the guy patch man sat us down in a very Silicon Valley fashion at the rosewoods and was a very hot day and there was like Persian tea being served and he gave us money and he said, you know, I just want to do something. >>I am not investing in the idea. I'm investing in you as a team. Uh, and if you pivot away from photo books, you know, uh, which we did and I think we pivoted the way because we ended up finding a much, much bigger problem. And we felt that, you know, we could actually make a, an actual change into the mobile cloud ecosystem. And that's how, that's how it all started. Uh, and it wasn't actually was easier to raise money after we had a really big problem. We had a good team that had been working together for almost two years. We had product market fit. >> So, uh, so yeah. So what are some things that have influenced you in your journey to become an entrepreneur? Um, some things interesting. Um, well I would say the Stanford design school. Um, I think I came from working for Siemens, which is a giant company. >>And I started doing this project and I remember one of the projects was we built, um, an, uh, a toolbar we were supposed to where we're doing a project for, um, Firefox, which, you know, Mozilla was utilize browser, uh, which was in some ways the precursor to Chrome. And we're trying to help it grow. And we didn't know. And one of the ideas was we, we built this toolbar for eBay and eBay hadn't had a toolbar for Firefox. And we, you know, we were some students for two weeks. We build this toolbar bar and then someone bought the car to our toolbar. And I was like, wow. Like how incredible is it that you can just kind of put your thoughts on something and just get something done and make an actual impact someone's life. And I think that's when the spark of the entrepreneurial spark, it was during that time that, um, Michael Dearing course, a professor and one of my D school courses also told me the thing that if I don't do it, who will? >>And I think that's when, that's when it all started. I think the things that have helped me along the way, I mean, my cofounders, I think I've been incredibly lucky to find cofounders that are incredibly eager to be good at what they do and also very different from me. So I think if you think about why many companies implode, it's usually because of the founding team. We've been together for almost seven years now. Uh, and it's been an interesting way to find balance through so many failed companies. So many stages of growth branches over 400 people now. So you know, our roles have shifted over time and it's been like, uh, an interesting journey and I think recently more in the past few years, I think one of the things that has helped me find balance has been having a group of female founder friends. Um, it's really interesting to have a peer group that you can talk about things with and be vulnerable with. >>And I didn't have that in the first few years and I wish I did. My cofounders are amazing, but I think in some ways we are also coworkers. So having an external group has been incredibly helpful in helping me find balance in my life. So I think a lot of women feel that way. They feel that it's really difficult to navigate in this male dominated workspace. So what advice would you give to female entrepreneurs in this space? Yeah, I mean it is really hard and I think confidence is something that I've noticed with myself, my peers, the women that I've invested in. I do investing on the side. Uh, I would say believe that you can do it. Uh, believe that the only, the sky's the limit believe that, um, you can do more than you think you can do. I think sometimes, uh, you know, our, our background and the society around us, um, doesn't necessarily believe that we can do the things that we can do as women. >>So I think believing in ourselves is incredibly important. I think the second part is making sure that we build networks around us. They can tell us that they believe in us. They can push us beyond what we think is possible. And I think those networks can be peers. Like my funeral founder group, we call each other for ministers or, uh, I think investors. Um, I think it can be mentors. And I've had, I've been lucky enough to have amazing women investors, uh, women mentors. Um, and I, it's been a really incredible to see how much they helped me grow. So I think the interesting thing is when I was just getting started, I didn't look for those communities. I didn't look for a guy. I just kinda felt, Oh, I can do it. But I didn't actually realize that being part of a community, being vulnerable, asking questions can actually go help me go so much further. Um, so the advice would be to start early and find a small group of people that you can actually rely on, and that can be your advocates and your champions. So, yeah. Well, thank you so much for those words of wisdom. Thanks for having me. Thank you for being on the cube. I'm your host, Sonia to Gary. Thanks for watching the cube. Stay tuned for more.

>>From and low park California in the heart of Silicon Valley. It's the cube covering cloud now. Awards 2020 brought to you by Silicon angle media. Now here's Sonya to garden. >>Hi and welcome to the cube. I'm your host Sonia to Gary. And we're on the ground at Facebook headquarters in Menlo park, California covering cloud now's top women entrepreneurs in cloud innovation awards. Joining us today is Shamila Bandler who is the director of production engineering at Facebook. to the cube. Thank you Sonya. So can you tell us a little bit about your background? Absolutely. >> Um, I grew up in India and it was in 2001 I moved to United States. I joined a company in financial sector fidelity investment. That was my first job in the U S it was a very important team I was working on, which was responsible for mission critical applications and trading floor. So if you know a little bit about stocks, you can think about the sense of urgency. That's where I learned early on in my career while I was working there. I also did my part time masters at Howard university. >>Um, that time was very crucial in my growth because it taught me resilience doing two things at the same time. 2005 was a life changing event where for personal reasons, I relocated to a Bay area from East coast and I joined a startup going from a big company to a small company. Again, put me in a situation which I was never used to. The startup taught me again being very resilient moving fast, which got acquired by Dell. That's when I switched to management. I sat on the decision for three months when my director asked me, you should be in management. And it wasn't, I wasn't afraid. I was too naive to like step away from individual contribution to the Tech's role to step into management. They were persistent and I took on the management role and there was never turning back because what I was giving back to the company, to the team and also seeing more women join my team. >>That was something I was truly enjoying. Then I did a couple of small companies transforming their business from a on-prem business to cloud. Um, that was again, growing the team from ground up and building a team in like two years was very, very motivating. And it was about a year and a half ago when I joined Facebook where a opportunity came knocking. I really wanted to work at this keel. And six months into the role I was supporting Facebook's monitoring ecosystem. And then last year my role changed. I started supporting Facebook's revenue generating platforms, which is ads, marketplace, commerce, and payments. And I'm absolutely loving it. >> That's very inspiring. Thank you. See you were a past winner of cloud now and now you're on the cloud now, advisory board. Tell us a little bit about that journey and what's the experience been like? >> Absolutely. I still remember, it was about four years ago. >>I'm the founder of cloud. No, Jocelyn had reached out to me that you should absolutely put the nomination. I had self-doubts, but then I thought, okay, I have done three transformations, let me give it a shot. And I attended that event on Google, Google campus. And the most important thing I took away from that evening was the amazing inspiring speakers. And the other pure winners from that, there was never looking back. It's just not being the award recipient. I think it boosted my confidence that what I have done and then also put more responsibility on me that how can I see more women leaders grow and get more women in the tech. Then last year of when I pitched to my management team that we should host cloud now event on Facebook campus. I got immense support from them. We did it. And this is when I felt that giving back to the community. >>This is what it means. At the same time after the event, Jocelyn said, I think you should be on the advisory board because we can get more of them and join this mission and we can accelerate the missions. A goal which is getting more and more women in tech. We have a lot of work still to do. >> Um, and so today you hosted the welcome and the scholarship, um, presentation. So how has that experience and tell us a little bit more about cloud now is um, STEM scholarship fund opportunity. It was a great experience. I think whole Borton school and Shanti Bhavan. I mean, when I look at the backgrounds of some of the scholars, it's just amazing. I mean, we all are privileged. I feel I'm privileged. Um, whether it's education or from the families. I think our parents took really good care of ourselves. >>But when I look at some of the fascinating stories of the scholars, some of them like absolute poverty, homelessness, there was one story which was like a person was homeless and the social economic statuses they come from, you wouldn't even think like, how can they even like done into like great software engineers at some amazing top companies. When I look back, the whole philanthrophy mission of, um, you know, cloud now is on this international STEM scholarship. It is making sure these underprivileged scholars have a fair chance because they didn't start at the same place where I feel I have started, you know, being a kid, you know, going to a school and it's amazing that we are able to contribute to this mission. Well that's great. And you're giving them an opportunity to share their skills with the world. Absolutely. Um, so what impact do you hope cloud now will have in the future? >>I think we still have a long way to go. I mean if I just look at, um, around me, uh, it's amazing that Facebook is very much into seeing more and more diversity and inclusion. And I know the numbers are changing even in other companies, but they're not changing at the rate where we want. Cloud now has gotten into a place in eight years very well connected with the winners. All of them, all the winners I look at past eight years are in very prominent positions. We have a privilege. At the same time, we also have a huge responsibility if in whatever field, whatever domain, whatever rules V. V, R. N if we can influence and change the equation very, we are making it a fair ground. I think we can see more and more women in tech. And what advice would you give to women who want to be in tech but maybe feel a little intimidated by the male dominated industry? >>I think sometimes we are owed our own enemies. Um, it's easier said than done. Um, I think believing in yourself. So when I was put in drawers, absolutely there were moments I was not comfortable at all and I started doing things not worrying about the outcome. Whatever I felt was right at that time I never thought, uh, this problem is some other team's problem and I'll wait for it. I just went ahead and whatever I could do in my capacity. And that was seen and I think women are really, really good in collaboration and soft skills. I would say use your strengths and use it well because that's what the companies need today. And are you personally seeing a rise in women in tech? Like um, in your team or at Facebook? Are you seeing that there are more women? Absolutely. When I joined the production engineering monetization team last year we had 13 women. >>We have 26 women in the team now. So that's my team is about hundred plus. So about 26% is great. I had no women managers in the team. I can proudly say I have two women managers in the T team. As I say, we still have a long way to go. My hope is in the organization, Ironman. If we can see more women in production engineering, then I would say like, yes, it's, it's getting there. And last question. Um, uh, there are a lot of shifts in the tech industry and new companies, new emerging tech. What's the opportunity now for women? I think AI is, um, you know, machine learning and AI is on the top because it's not just associated with one domain. AI can be applied anywhere. I feel women lik whether it's healthcare, whether it's in technology, it's, it's going to be applied, you know, everywhere. The other is cloud computing. Again, with the public and private clouds on the rise, more and more companies moving into hybrid cloud model. A, I feel for women, you know, going into these fields will like, just open up more opportunities for them. Shana, thank you so much. This is really inspiring and thank you for being part of cloud now. Thank you so much for having me here. I'm Sonya. Thanks for watching the cube. Um, stay tuned for more.

>>from Menlo Park, California In the heart of Silicon Valley, it's the Cube covering cloud now. Awards 2020 Brought to you by Silicon Angle Media. Now here's Sonia category. >>Hi and welcome to the Cube. I'm your host Sonia category, and we're on the ground at Facebook headquarters in Menlo Park, California covering Cloud now's top women entrepreneurs in Cloud Innovation Awards. Joining us today is Tao Johnson, who's the CEO and founder of Kaizen Technology Partners. Now welcome to the Cube. Thank you. Thank you for having me. So give us a brief overview of your background. >>Sure, I actually have a finance degree and have no idea what technology was. I started as a finance analyst at Sun Microsystems and had no idea who they were or what job awas but having the interest to be a CFO one day, our CEO in another company, I figured I'd go into sales and really understand what drives a company growth and revenue. So I was actually trained by Scott McNealy's best of the best program and was in sales class with him and his with his sister in law. And, um, I never left sales after them, >>so um So you mentioned that you have a finance background? How do you think that background has helped you to become a successful CEO versus, say, a technical background? >>And I think having the finance background is very important because your cash flow management is one of the biggest reasons companies fail. You know, before they can get their next round of funding, they run out of their overhead costs, their monthly overhead costs. The other thing is really to understand how to sell in our ally and total cost of ownership to the decision powers that be at the CFO level and CEO CIO. >>Okay, Um, so you're on the cloud now advisory board to tell us, How did you join And how was that experience? Like, I think >>it grew organically having been a participant to a few of the events with Jocelyn and then helping her. Where can I help? How can I get speakers for you or winners? And over time, just like just came to me and said, You know, you have such a network, Why don't you join our board and help us where we can? Hence we have mailing today, um, as our keynote because of our network. >>And speaking of entrepreneurs, you, um, I just want to mention that you are at this program for Harvard, for entrepreneurs. Can you talk more about that? >>Sure, it's an amazing program. I wish that there were more women who applied and were able to invest the money and time into the program. It's, ah, owners and entrepreneurs who have companies around the world. There's 41 countries represented. Unfortunately, only about 17% of women of 151 participants in class. We meet three times once a year, and we go through three weeks of intensive training to discuss marketing finance how to scale operations. But the best thing you get out of it is 1 30% of it is learning this case studies method and Harvard, the other 30% is really the network and the different industry's. You get to meet. We have film. As you know, we've talked about retail and other industries there that you can self reflect on. How does that involve with technology? Um, and then the other 30 self reflection time. A lot of entrepreneurs, especially CEOs, don't have the time to get away from their business, and it really forces you to not be the operator. Walk away and be able to self reflect on Where do you want to take the business >>today >>and speaking about networking? What's your advice on networking within the industry? What are some tips and tricks >>in my belief? You know, we have social media, but the best way to meet people is through other people. So going to events like this and really having an idea of your goals at the event when you're going there, who's going to help you get to that person? Um, and having a focus, not. I want to meet 100 80 people, and I don't know who they're going to be really being able to say, Who do I want to meet at that event who can help me get there and preparing plan as much triple the time that you're gonna be even at the event? >>Yes, the networking can be really difficult. So as an entrepreneur, what do you think makes a great entrepreneur? >>You know, entrepreneurship is very hard because you really have to touch all facets of a company and find the right people to trust to do certain areas, but then be able to understand all the different parts of the company, right, from supply chain to partnerships to sales and finance. So what, you really have to be diverse and ambidextrous, and that makes it very difficult for some people who are only analytical or only sales e to be able to run a company in scale. >>And what advice do you have for female technologists who maybe feel that so it's really difficult to navigate in this male dominated industry? I would >>say to them they're stand out, make your different standout, right? Why make it a negative? The positive is you are female and you stand out so less men get called on by you and you might have a chance to get in the door. But you better have your ideas in line and your resource is and you better be >>kick ass. But use it to your >>advantage that you are different and that they're not used to hearing from women. >>So you've been with carved out for many years now. Where do you hope to see cloud now in the future, I >>would love to see cloud now be more, uh, geographically worldwide as we're doing more work in my non profit for women Rwanda, in Afghanistan as entrepreneurs, Um and I think, you know, we've upped and stepped up so much more with Facebook bringing in investments to us to compared to what we've done before, Um, I think just the awareness and may be doing this on a, um, twice a year basis instead of only once a year to be ableto celebrate these wonderful women. >>Don, thank you so much for being on the Cube. This has been really knowledgeable. Thank you for having me. I'm Sonia Tagaris. Thank you for watching the Cube stay tuned for more. Yeah, yeah, yeah.

From a little park, California in the heart of Silicon Valley. It's the cube covering cloud now. Awards 2020 brought to you by Silicon angle media. Here's Sonya to garden. Hi and welcome to the cube. I'm your host Sonia to Gary. And we're on the ground at Facebook headquarters in Menlo park, California covering cloud nows, top women entrepreneurs in cloud innovation awards. Joining us today is Christine Heckart, CEO of scaler. Christine, welcome to the cube. Thank you. So you're receiving an award today for being one of the top women in cloud. Um, how do you feel about that? >>Oh, it's always terrible to get an award. I mean, it's awesome. I'm very honored to be here. >>Awesome. Um, so give us a little brief overview of your background. >>Oh, 30 years in tech. Um, let's same now. I'm CEO of scaler. So we're a log analytics company. We scale to over a hundred terabytes a day in the cloud at ridiculously affordable prices. And we serve some of the best tech companies in the world. We sell into engineers and developers. >>And so you've been CEO for over a year now. What's that experience been like? What challenges have you faced along the way? >>Uh, exhilarating experience if you've never been at a startup? Um, it's a great place to be. It's a phenomenal team. Challenges are all about how you grow and how you serve customers well on a limited set of resource with unlimited choice sets and opportunities. And that's hard thing to do. >>So you've been an executive for quite a while now. What's the best part about being a CEO? >>The people are the best part. Um, both the employees. We have some incredible employees, very energized about the mission, very dedicated, uh, and then absolutely amazing customers that we serve. These, you know, we serve engineers whereby accompanied by engineers for engineers and engineers innovate to change the world. And our job is to help them innovate with more confidence so they can change the world more quickly. And so you're feeding into all these incredible missions around the world with these incredible people and you're helping them do their job better. And it's just every day is different and every day is fun. >>So what are the, some of the things that have influenced you along the way or some of the people who have influenced you? >>Jeez. Um, you know, I guess I'm influenced mostly by the people who I worked with and who have worked for me. Um, even more so maybe than the people I've worked for, although they've also been fabulous. Um, I just think you learn from, you learn from all the talent around you in the way people think differently about problems and, and how that synergy, um, often creates just magical outcomes. >>So as a CEO, um, what kind of workplace culture are striving to achieve? >>Uh, we have picked just one value and there are other companies that I think are doing the same and the value and we picked us care. And so we really strive to have a culture that encourages people to care about each other and care about the company's mission, uh, care about serving customers well and, and building a very high quality product with great experience, but also care about the environment and care about the community and care about people's lives outside of the day to day work job. Um, so we try to take a really holistic view, but on one key attribute, which is care. >>Well that's, that's awesome. I think everyone wants to go to work and, and just feel like, you know, that they're not bogged down by long hours or that >>we still have long hours. There's no doubt about that, but it's carrying long hours right there. Appreciate it. Yeah. Um, so what advice would you give to women who are considering a career in tech? I love tech. I've been 30 years in tech. I go out of my way to get people into the industry. Um, I do believe in all of its facets. It's the greatest industry in the history of history. I really do believe that it's also a hard place to work. It's a demanding place to work. Um, it's still hard place to work for women. Um, and any, I think kind of minority, uh, it's not as welcoming yet as it could be, but relative to 10 or 20 or 30 years ago, we've made enormous progress. I still believe we are making enormous progress and there's work to go, but it's very encouraging. >>That's great. Um, so, um, after being in the industry for a while, have you figured out a work life balance? Is there a secret? Is it a myth? >>Um, I am not the person to ask about work life balance for sure. Uh, most people would probably say I don't have it. Um, I don't look at it as balanced so much as, um, maybe juggling, like you just prioritize what's important in the moment. Um, I do believe in that. One of the great things about tech is usually you can do your job anytime from anywhere. Um, and you know, that has good and bad. So I tend to do my job all times everywhere. But you can do your job all times, everywhere and, and sometimes that's from home. And sometimes that's from other places, you know, anywhere around the world. >>And I'm sure especially as like, you know, moms and stuff like it's, it's great to have that flexibility. Um, and um, so, okay. So as a CEO, what do you think makes you a great leader? >>Um, I think any great leader is a leader who cares about their mission and their employees, uh, as people and not just as workers, um, and their customers as people and their, their holistic careers in their lives, not just as a source of revenue. So that's one of the reasons why we picked that value care is that, you know, it's super important for any leader at any level. What do you think leaders can do to, to make that, make it more welcoming for women in tech to be part of this industry? Um, it's not, this is not a question about women or any, anybody in particular, what people value is being appreciated and being included and being heard. That's it. Like, if you, if, if you can create an environment that is inclusive, where people can be heard and can be valued for what they contribute and their ideas, then I think, you know, it's a great place to work and, and, and that's a hard thing to do. It's white. It's easy to say. It's very hard to do culturally. Um, but I, I really think it's that simple. Well, thank you so much, Christine, for being on the. It's always great to have you here. Thank you for having me again. I'm sending it to Gary. Thanks for watching the cube. Stay tuned for more.

>>from Menlo Park, California In the heart of Silicon Valley, it's the Cube covering cloud now. Awards 2020 Brought to you by Silicon Angle Media. Now here's Sonia category. >>Hi, and welcome to the Cube. I'm your host Sonia category, and we're on the ground at Facebook headquarters in Menlo Park, California covering Cloud now's top women entrepreneurs in Cloud Innovation Awards. >>Joining us today is Get the Schmidt CEO of Human. Get that. Welcome to the Cube. >>Thank you. Thanks for having me. >>So just give us a brief overview of your background and more about Humira. All right, A brief >>overview. Let's see. Um, I'll start off that I've been in the industry for some time now. Um, since ah, 97 which I used to actually work at this campus that we're here today at when it used to be Sun Microsystems. So I started out in technology in product management and marketing. Mainly, um, when java was coming out so early days and really learned a lot about what it takes to take a product or a concept out to market very exciting in those early days and sort of, you know, move towards looking at Industries and Sister focused on financial services into the lot around financial services marketing. Also it son. >>And then I moved >>to Denmark, which is sort of a surprise, But I'm married to a day and we decided we would try something different. So I moved to Denmark, working at a consulting company software consulting company based in Denmark, fairly small and Ah, and was part of sort of building out of the conference and business development business they had over there. And ah, and that was a way for us, for me to understand a completely other side of the business consulting aspects where you really build software for a customer and really understand, you know, sort of the customer solution needs that are required versus when you're working at a large enterprise company kind of are separated away from the customers. And that was there where I met the two founding team members of Humi Oh, Christian and Trust in at Tri Fork into you. Essentially, we've been working together for 10 years, and, uh, we sort of all felt like we could really come out with the world's best logging solution and, ah, this was out of some of the pain we were running into by running other solutions in the market. And so we took a leap into building our own product business. And so we did that in 2016. And so that's really what brought me here into the CEO role. So we have a three person leisure leadership or executive team, our founding team, which is to verily technical folks. So the guys that really built the product and and, uh, and keep it running and take it to the next level every single day. But what was missing was really that commercial kind of leader that was ready to take that role, and that's where I came in. So they were very supportive and and bringing me on board. So that was into 2016 where I started that >>that's awesome. So how do you think having like a business and marketing background versus a technical background has helped you become a successful CEO? Um, I >>think it's really, really hard if you don't have different profiles on your founding team to be able to run a successful tech business. So there's technology that you could have the world's greatest technology like an example would be my you know, my co founders were building an amazing product, but until they came into the room, they hadn't thought about going out and trying to get a customer to use it. And essentially, that is one of the issues there is that you can sit and build something and build the best product out there. But if you're not getting feedback really, really early in the design and the concepts of product development, then customers our search of it's not built in. And so a lot of the thought process around him. EOS We like to say customers are in our DNA. We build >>our product >>for people to use 6 to 8 hours a day, and they're in it every day. And so it keeps this feeling of a customer feedback loop. And even if you're technical, it's really exciting. You know that you build something that somebody uses every day. It looks at every day, and so that's the kind of energy that we've tried to, you know, instill. Or maybe I've tried to instill in Humi Oh, that you know, our customers really matter, and I think that's one of the ways that we've been able to move, Let's say really, really fast in building the right features the right functionality, um, and the right things for people are using it on the on the on, the on the other and essentially >>so okay. And, um so you're here to receive an award for being one of the top female entrepreneurs in cloud innovation. So congratulations and And how does it feel to win this award? Super >>exciting. I mean, I'm glad that there are organizations like Cloud now that are doing amazing things for women and and also, you know, making examples of folks that are doing interesting roles in our industry, especially around B two B software. I think that's a real area where there's not many CIOs or leaders in our space where there should be. And, uh, and I think part of it is actually kind of highlighting that. But, you know, the other side is sort of an event like this today is bringing together a lot of other profiles that are women or diverse profiles together to sort of, you know, talk about this problem and acknowledge and also take, let's say, more of an active stance around, you know, making this place not so scary. I mean, I think I remember one of my early events and I was raising our series A when I walked into a VC event where there were no other female CIOs out there. There's 100 CIOs and I was the only one. And I think one of the hard parts is I walked in there and, you know, it felt a bit uncomfortable, But there were some. There were two amazing VC partners at the company that I first started talking to, and that just really used the sort of like, you know, I guess. Uncomfortable, itty. So I think the main focus at things like today or, you know, the people that are here today. So I think we can help each other. And I think that's something that you know. That's something that I'd like to see more of, that we actively sort of create environments and communities for that to happen, and cloud now is one of them. >>So I think a lot of women have had that experience where they're the only woman in the room, you know, and it's just really hard to like. Figure out your path from there. So as the company as Julio, how do you What's your strategy for inclusion? >>Um, so, like I like to call it active inclusion. I think part of this is like having a diverse workforce, which is, you know, obviously including women and different backgrounds. Other things. But >>one of >>the big things we think about at Hume Eo is we really like to, let's say, celebrate people's differences so like that you're able to be yourself and almost eccentric is a good thing. And be able to feel safe in that environment to feel safe, that you can express your opinions, feel comfortable and safe when you're, you know, coming with a opposite viewpoint. Because the diversity of thought is really what we're trying to include in our company. So it means bringing together folks that don't look like each other where exactly, the same clothes and do the exact same hobbies and come from the same countries like we have. Ah, very, you know, global workforce. So we have folks, you know in Denmark of an office in Denmark. We have an office in the UK, and we have folks all over the U. S. We have a lot of backgrounds that have come from different cultures, and I think there's a beauty to that. There's a beauty to actually combining a lot of ways to solve problems. Everyone from a different culture has different ways of solving those. And so I think part of this is all around making that. Okay, right. So, you know, active inclusion is a way to to sort of put it into terms. So So we're definitely looking for people, Actively, that would like to join something like >>this. So I love that. Um, So if you were personally, if you were to have your own board of directors, like, who would they be? Um, it's not really >>the who. It's almost like the profiles or the people. I mean, we already have a personal board like I call it. I mean, it's something that I actively started doing. Um, once I once I started with a company board, I realized, you know, I probably need my own personal board, my own sort of support infrastructure That includes folks like my family, my sisters and my mom. It also includes you know, some younger junior folks that are actually much younger >>than me. >>But I learned so much from so um, to one of my good friend Cindy, who's who is brilliant at describing technology concepts. And and I think just some of the conversations I've had with her just opened my eyes to something that I hadn't seen before. And I think that's the area where I like to say the personal board isn't exactly you know people. It's it's profile. So along the way, as you grow, you're looking for new types of profiles. Let's say you want to learn about a new concept or a new technology or, you know, get better at running or something. So it's part of bringing those profiles in tow, learn about it and then back to this board concept. It's It's not as though it's a linked in network or it's actually sort of a group of people that you sort of rely on. And then it's a It's a two way street. So essentially, you know, there could be things that the other person could gain from knowing me, and ideally, that those were the best relationships in a personal board. So so I encourage alive women to do this because it builds a support infrastructure that is not related to your job. It's not your manager. It's not your co worker. You kind of feel some level of freedom having those discussions because those people aren't looking at your company. They're looking at helping you. So So that's That's sort of the concepts around >>the personal board idea and anything as women like having a sport system is so necessary, especially in this, like male dominated industry. Well, I think it's back >>to that whole feeling like you're the one person in the room, right? Right, so you're not the one person in the room, and I think we need to change that. And I think that's like some you know, all of our kind of roles that for all the women intact. I mean, it's sort of like something that we could help each other with right, and and if we don't do it actively, I mean, you know the numbers and we know you know the percentages of these things. If we want to change that, it does require some active interest on on our part to make that happen. And I think those are the areas where I see, like, the support infrastructures, the events like this really kind of engaging, um, us to be aware and doing something about the >>problem. Thank you so much for being on the key of love having you here. Thanks for >>having me. I really appreciate it. >>I'm Sonia to Garry. Thanks for watching the Cube. Stay tuned for more. >>Yeah, yeah.

>> Narrator: From Sand Hill Road, in the heart of Silicon Valley, it's the CUBE. Presenting, The People First Network, insights from entrepreneurs and tech leaders. >> Hello everyone welcome to this special CUBE conversation, I'm John Furrier, host of theCUBE. We're here at Mayfield Fund, on Sand Hill Road and Menlo Park. As part of Mayfield's People First Network, co-creation with SiliconANGLE and theCUBE and Mayfield. Next guest, Beth Devin, Managing Director of Innovation Network and Emerging Technologies at Citi Ventures. Thanks for coming on. >> Thanks for having me. >> Hey, thanks for coming in. We're here for the Mayfield fiftieth anniversary, where they're featuring luminaries like yourself, and we're talking about conversations around how the world's changing and the opportunities and the challenges can be met, and how you can share some of your best practices. Talk about what your role is at Citi Ventures and what your focus is. >> Sure, sure, and boy howdy, has it been changing. It's hard to keep up with. I've been at Citi Ventures about two years and one of the reasons I joined was to stand up an Emerging Technology practice. Citi Ventures does a lot of work in corporate venture investing. We tend to be strategic investors, for start up companies that are aligned with the strategy of Citi, as well as our client. We serve probably, eighty percent of the Fortune Five Hundred companies in the world. But we also are a really important part of the innovation ecosystem at Citi. Which is looking at how to drive culture change, broaden mindset, and really, enlist our employees to be part of the innovation process. So, we have an internal incubator, we have a Shark Tank-like process we call Discover Ten X. And what I really bring to the table with my team is monitoring, and learning about, and digesting technology that's not quite ready for commercialization but we think it might be disruptive in a good or challenging way for the bank or our clients. We try to educate and provide content that's helpful to our executives, and just the employee body at large. >> I want to get into a LinkedIn post you wrote, called the Tech Whisperer, which I love. >> Thank you. >> You're there to identify new things to help people understand what that is. But that's not what you've done. You've actually implemented technology. So, on the other side of the coin, in your career. Tell us about some of the things you've done in your career, because you've been a practitioner. >> Beth: Yeah. >> and now you're identifying trends and technologies, before you were on the other side of the table. >> That's right, and sometimes I'll tell you, I have that itch. I miss the operator role, sometimes. Yeah, you know, I feel so fortunate I sort of stumbled on computer science early when I was going to school. And, the first, I'd say twenty years of my career, were working in enterprise I.T, which at that time I couldn't even have made that distinction, like why do you have to say enterprise I.T. I was a software developer, and I was then a DBA, and I even did assembler language programing. So way back when, I think I was so fortunate to fall in to software engineering. It's like problem solving, or puzzle making, and you with your own brain and sort of typing can figure out these problems. Then over the years I became more of a manager and a leader, and sort of about a reputation for being somebody you could put on any hard problem and I'd figure a way out. You know tell me where we're trying to go it looks knotty, like not a fun project, and I would tackle that. And then I'd say, I had some experience working in lots of different industries. Which really gave me an appreciation, for you know, at the end of the day, we can all debate the role that technology plays in companies. But industries, whether it's health care or media, or financial services. There's a lot of the same challenges that we have. So I worked at Turner Broadcasting before it was acquired, you know by Time Warner and AOL. And I learned about media. And then I had a fantastic time working at Charles Schwab. That was my first big Financial Services role when it came back to the bay area. I worked at Art.Com, it was a need converse company, the first company I worked at where I was in charge of all the technology. We had no brick and mortar, and if the technology wasn't working, we weren't earning revenue, in fact, not only that, we were really making customers angry. I also had a role at a start up, where I was the third person to join the company, and we had a great CEO who had a vision, but it was on paper. And we hadn't really figured out how to build this. I was very proud to assemble a team, get an office, and have a product launch in a year. >> So you're a builder, you're a doer, an assembler, key coding, hexadecimal cord dumps back in the day. >> Way back when. We didn't even have monitors. I'll tell ya, it was a long time ago. >> Glory days, huh? Back when we didn't have shoes on. You know, technology. But what a change. >> Huge change. >> The variety of backgrounds you have, The LinkedIn, the Charles Schwab, I think was during the growth years. >> And the downturn, so we got both sides. >> Both sides of that coin, but again, the technologies were evolving. >> Yes. >> To serve that kind of high frequency customer base. >> Beth: That's right. >> With databases changing, internet getting faster. >> It has. >> Jeff: More people getting online. >> We were early adopters, I'll tell you. I still will tell people, Charles Schwab is one of the best experiences I have, even though at the end I was part of the layoff process. I was there almost seven years, and I watched, we had crazy times in the internet boom. Going in 98, 99, 2000, I can't even tell you some of the experiences we had. And we weren't a digital native. But we were one of the first companies to put trading online, and to build APIs so our customers could self service, and they could do that all online. We did mobile trading. I remember we had to test our software on like twenty different phone sets. Today, it's actually, so much easier. >> It's only three. Or two. Or one. Depending on how you look at it. >> That's right. We couldn't even test on all the phone sets that were out then. But that was such a great experience, and I still, that Schwab network, is still people I'm in touch with today. And we all sort of sprinkled out to different places. I think, I dunno, there's just something special about that company in terms of what we learned, and what we were able to accomplish. >> You have a fantastic background. Again the waves of innovation you have lived through, been apart of, tackling hard problems, taking it head on. Great ethos, great management discipline. Now more than ever, it seems to be needed, because we're living in an age of massive change. Cause you have the databases are changing, the networks changing, the coding paradigms changing. Dev ops, you've got the role of data. Obviously, mobile clearly is proliferated. And now the business models are evolving. Now you got business model action, technical changes, cultural people changes. All of those theaters are exploding with opportunity, but also challenges. What's your take on that as you look at that world? >> You know, I'm a change junkie, I think. I love when things are changing, when organizations are changing, when companies are coming apart and coming together. So for me, I feel like, I've been again, so fortunate I'm in the perfect place. But, one of the things that I really prided myself on early in my career, is being what I call the bridge, or the, the translator between the different lines of business folks that I work with. Whether it was head of marketing, or somebody in a sales or customer relationship, or service organization, and the technology teams I built and led. And I think I've had a natural curiosity about what makes a business tick, and not so much over indexing on the technology itself. So technology is going to come and go, there's going to be different flavors. But actually, how to really take advantage of that technology, to better engage your customers, which as you said, their needs and their demands are changing, their expectations are so high. They really set the pace now. Who would have though that ten years ago we'd live in an environment where industries and businesses are changing because consumers have sort of set the bar on the way we all want to interact, engage, communicate, buy, pay. So there's this huge impact on organizations, and you know, I have a lot of empathy for large established enterprises that are challenged to make it through this transformation, this change, that somehow, they have to make. And I always try to pay attention on which companies have done it. And I call out Microsoft as an example. I can still remember several years ago, being at a conference. I think it was Jeffrey Moore who was speaking, and he had on one slide... Here's all the companies in technology that have had really large success. Leading up to the internet boom days, there would be a recipe for the four companies that would come together. I think it was Sun, Oracle, and Microsoft. And then he said, and now here's the companies of today. And most young people coming out of college, or getting computer science degrees won't use any of these old technology companies. But Microsoft proved us all wrong, but they did it, focused on people, culture, being willing to say where they screwed up, and where they're not going to focus anymore, and part ways with those parts of their business. And really focus on who are their customers, what are their customer needs. I think there's something to be learned from those changes they made. And I think back to the Tech Whisperer, there's no excuse for an executive today, not to at least understand the fundamentals of technology. So many decisions have to be made around investment, capital, hiring, investment in your people. That without that understanding, you're sort of operating blind. >> And this is the thing that I think I love, and was impressed by that Tech Whisperer article. You know, a play on the Horse Whisperer, the movie. You're kind of whispering in the ears of leaders who won't admit that they're scared. But they're all scared! They're all scared. And so they need to get, maybe it's cognitive dissonance around decision making, or they might not trust their lead. Or they don't know what they're talking about So this certainly is there, I would agree with that. But there's dynamics at play, and I want to get your thoughts on this. I think this plays into the Tech Whisperer. The trend we're seeing is the old days was the engineers are out coding away, hey they're out there coding away, look at them coding away. Now with Cloud they're in the front lines. They're getting closer to the customer, the apps are in charge. They're dictating to the infrastructure what can be done. With data almost every solution can be customized. There's no more general purpose. These are the things we talk about, but this changes the personnel equation. Now you got engineering and product people talking to sales and marketing people, business people. >> And customers. >> They tend not to, they traditionally weren't going well. Now they have to work well, engineers want to work with the customers. This is kind of a new business practice, and now I'm a scared executive. Beth, what do I do? What's your thoughts on that dynamic? >> You know, I'm not sure I would have had insight in that if I hadn't had the oppurtunity to work at this little start up, which we were a digital native. And it was the first time I worked in an environment where we did true extreme programming, pair programming, we had really strong product leads, and engineers. So we didn't have project managers, business analysts, a lot of things that I think enterprise I.T tends to have. Because the folks, historically, at an enterprise, the folks that are specifying the need, the business need, are folks in the lines of business. And they're not product managers, and even product managers, I say in banking for example, they aren't software product managers. And so that change, if you really do want to embrace these new methods and dev ops, and a lot of the automation that's available to engineering and software development organizations today, you really do have to make that change. Otherwise it's just going to be a clumsy version of what you use to do, with a new name on it. The other thing though that I would say, is I don't want to discount for large enterprises is partnerships with start up companies or other tech partners. You don't need to build everything. There's so much great technology out there. You brought up the Cloud. Look at how rich these Cloud stacks are getting. You know, it's not just now, can you provision me some compute, and some storage, and help me connect to the internet. There's some pretty sophisticated capabilities in there around A.I and machine learning, and data management, and analysis. So, I think overtime, we'll see richer and richer Cloud stacks, that enables you know, every company to benefit from the technology and innovation that's going on right now. >> Andy Jassy, the CEO of Amazon Web Search, has always said whenever I've interviewed him, he always talks publicly now about it is, two pizza teams, and automate the undifferentiated heavy lifting. In tech we all know what that is, the boring, mundane, patching, provisioning, ugh. And deploying more creative research. Okay so, I believe that. I'm a big believer of that philosophy. But it opens up the role, the question of the roles of the people. That lonely DBA, that you once were, I did some DBA work myself. System admins, storage administrator, these were roles, network administrator, the sacred God of the network, they ran everything. They're evolving to be much more coding oriented, software driven changes. >> It's a huge change. And you know, one thing that I think is sad, is I run into folks often that are, I'll just say, technology professionals, just say, you know, we're at large. Who are out of work. You know, who sort of hang their head, they're not valued, or maybe there's some ageism involved, or they get marked as, oh that's old school, they're not going to change. So, I really do believe we're at a point, where there's not enough resources out there. And so how we invest in talent that's available today, and help people through this change, not everybody is going to make it. It starts with you, knowing yourself, and how open-minded you are. Are you willing to learn, are you willing to put some effort forth, and sort of figuring out some of these new operating models. Because that's just essential if you want to be part of the future. And I'll tell you, it's hard, and it's exhausting. So I don't say this lightly, I just think. You know about my career, how many changes and twists and turns their have been. Sometimes you're just like, okay I'm ready, I'm ready to just go hiking. (Beth laughs) >> It can be, there's a lot of institutional baggage, associated with the role you had, I've heard that before. Old guard, old school, we don't do that, you're way too old for that, we need more women so lets get women in. So there's like a big dynamic around that. And I want to get your thoughts on it because you mentioned ageism, and also women in tech has also grown. There's a need for that. So there's more opportunities now than ever. I mean you go to the cyber security job boards, there are more jobs for cyber security experts than any. >> Oh, I'll tell you, yesterday, we held an event at our office, in partnership with some different start ups. Because that's one of the things you do when you're in a corporate venture group, and it was all on the future of authentication. So it was really targeted at an audience of information security professionals and chief information security officers. And it was twenty men and one woman. And I thought, wow, you know I'm use to that from having been a CIO that a lot of the infrastructure roles in particular, like as you were saying, the rack and stack, the storage management, the network folks, just tend to be more male dominant, than I think the product managers, designers, even software engineers to some extent. But here you know, how many times can you go online and see how many openings there are for that type of role. So I personally, am not pursuing that type of role, so I don't know what all the steps would need to be, to get educated, to get certified, but boy is there a need. And that needs not going to go away. As more, if everything is digitized and everything is online. Then security is going to be a constant concern and sort of dynamic space. >> Well, we interview a lot of women in tech, great to have you on, you're a great leader. We also interview a lot of people that are older. I totally believe that there's an ageism issue out there. I've seen it first hand, maybe because I'm over fifty. And also women in tech, there's more coming but not enough. The numbers speak for themselves. There's also an opportunity, if you look at the leveling up. I talked to a person who was a network engineer, kind of the same thing as him, hanging his head down. And I said, do you realize that networking paradigm is very similar to how cyber works. So a lot of the old is coming back. So if you look at what was in the computer science programs in the eighties. It was a systems thinking. The systems thinking is coming back. So I see that as a great opportunity. But also the aperture of the field of computer science is changing. So it's not, there are some areas that frankly, women are better than men at in my opinion. In my opinion, might get some crap for that. But the point, I do believe that. And there are different roles. So I think it's not just, there's so much more here. >> Oh, that's what I try to tell people. It's not just coding, right. There's so many different types of roles. And unfortunately I think we don't market ourselves well. So I encourage everyone out there that knows somebody. (Beth laughs) Who's looking-- >> If someone was provisioned Sun micro-systems, or mini computers, or workstations, probably has a systems background that could be a Cloud administrator or a Cloud architect. Same concepts. So I want to get your thoughts on women in tech since you're here. What's your thoughts on the industry, how's it going, things you advise, other folks, men and women, that they could do differently. Any good signs? What's your thoughts in general? >> Yeah so, first of all, I'm just a big advocate for women in general. Young girls, and, young women, just getting into the work force, and always have been. Have to say again, very fortunate early in my career working for companies like a phone company, and Schwab, we had so many amazing female leaders. And I don't even think we had a program, it was just sort of part of the DNA of the company. And it's really only in the last couple of years I really seen we have a big problem. Whether it's reading about some of the cultures of some of the big tech companies, or even spending more time in the valley. I think there's no one answer, it's multifaceted. It's education, it's families, it's you know, each one of us could make a difference in how we hire, sort of checking in what our unintended biases are, I know at Citi right now, there's a huge program around diversity and inclusion. Gender, and otherwise. And one of the ways I think it's going to be impactful. They've set targets that I know are controversial, but it holds people accountable, to make decisions and invest in developing people, and making sure there's a pipeline of talent that can step up into even bigger roles with a more diverse leadership team. It will take time though, it will take time. >> But mind shares are critical. >> It absolutely is. Self-awareness, community awareness, very much so. >> What can men do differently, it's always about women in tech, but what can we, what can men do? >> I think it's a great question. I would say, women can do this too. I hate when I see a group together, and it's all women working on the women issue. Shame on us, for not inviting men into the organization. And then I think it's similar to the Tech Whisperer. Don't be nervous, don't be worried, just step in. Because, you know, men are fathers, men are leaders, men are colleagues. They're brothers, they're uncles. We have to work on this together. >> I had a great guest, and friend, I was interviewing. And she was amazing, and she said, John, it's not diversity and inclusion, it's inclusion and diversity. It's I-N-D not D-I. First of all, I've never heard of it, what's D-N-I? My point exactly. Inclusion is not just the diversity piece, inclusion first is inclusive in general, diversity is different. So people tend to blend them. >> Yes they do. >> Or even forget the inclusion part. >> Final question, since you're a change junkie, which I love that phrase, I'm kind of one myself. Change junkies are always chasing that next wave, and you love waves. Pat Gelsinger at VMWare, wave junkie, always love talking with him. And he's a great wave spotter, he sees them early. There's a big set of waves coming in now, pretty clear. Cloud has done it's thing. It's only going to change and get bigger, hybrid, private, multi Cloud. Data, AI, twenty year cycle coming. What waves are you most excited about? What's out there? What waves are obvious, what waves aren't, that you see? >> Yeah, oh, that's a tough one. Cause we try to track what those waves are. I think one of the things that I'm seeing is that as we all get, and I don't just mean people, I mean things. Everything is connected, and everything has some kind of smarts, some kind of small CPU senser. There's no way that our existing, sort of network, infrastructure and the way we connect and talk can support all of that. So I think we're going to see some kind of discontinuous change, where new models are going to, are going to absolutely be required cause we'll sort of hit the limit of how much traffic can go over the internet, and how many devices can we manage. How much automation can the people and an enterprise sort of oversee and monitor, and secure and protect. That's the thing that I feel like it's a tsunami about to hit us. And it's going to be one of these perfect storms. And luckily, I think there is innovation going on around 5G and edge computing, and different ways to think about securing the enterprise. That will help. But it couldn't come soon enough. >> And model also meaning not just technical business. >> Absolutely. Machine the machine. Like who's identity is on there that's taken an action on your behalf, or the companies behalf. You know, we see that already with RPA, these software robots. Who's making sure that they're doing what they're suppose to do. And they're so easy to create, now you have thousands of them. In my mind, it's just more software to manage. >> And a great contrary to Carl Eschenbach, former VMware CEO now at Sequoia, he's on the board of UIPath, they're on the front page of Forbes today, talking about bots. >> Yes, yes, yes, I've heard them speak. >> This is an issue, like is there a verification. Is there a fake bots coming. If there's fake news, fake bots are probably going to come too. >> Absolutely they will. >> This is a reality. >> And we're putting them in the hands of non-engineers to build these bots. Which there's good and bad, right. >> Regulation and policy are two different things, and they could work together. This is going to be a seminal issue for our industry. Is understanding the societal impact, tech for good. Shaping the technologies. This is what a Tech Whisperer has to do. You have a tough job ahead of you. >> But I love it. >> Jeff: Beth thank you for coming on. >> Thank you for having me. >> I'm Jeff Furrier for the People First Network here at Sand Hill Road at Mayfield as part of theCUBE and SiliconANGLE's co-creation with Mayfield Fund, thans for watching.

>> live from Boston, Massachusetts. It's the Cube covering A W s reinforce 2019 brought to you by Amazon Web service is and its ecosystem partners. >> Okay, welcome back. Everyone keeps live coverage here in Boston. Messages of AWS reinforce That's Amazon. Webster's his first inaugural commerce around cloud security on John Kerry with David Lantz. One of the top stories here, the announced being announced here reinforced is the VPC traffic nearing and we wanted to bring in alumni and friend Mike Banner was the VP of marketing at a Vectra who specializes in networking. Welcome to the Q. We go way back. HP networking got a hot start up here so wanted to really bring you in to help unpack this VPC traffic mirroring product is probably medias announcement of everything on stage. That other stuff was general availability of security have which is great great product, Absolutely. And guard guard duty. Well, all this other stuff have it. But the VPC traffic nearing is a killer feature for a lot of reasons, absolutely. But it brings some challenges and some opportunities that might be downstream. I don't get the thoughts on what is your take on the BBC traffic nearing >> a tte. The highest level brings a lot of value because it allows you get visibility and something that's really opaque, which is the traffic within the cloud. And in the past, the way people were solving this was they had to put an agent on the workload, and nobody wants that one. It's hard to manage. You don't want dozens to hundreds or thousands of agents, and also it's going to slow things down. On third, it could be subverted. You get the advanced attacker in there. He knows how to get below that level and operated on in a way where he can hide his communication and and his behavior isn't seen. With traffic nearing that, we're getting a copy of the packet from below. The hyper visor cannot be subverted, and so we're seeing everything, and we're also not slowing down the traffic in the virtual private cloud. So it allows us to extract just the right data for a security application, which is our case, metadata and enrich it with information that's necessary for detecting threats and also of performing an investigation. >> Yeah, it was definitely the announcement that everybody has been talking about has the buzz. So from a from a partner perspective, how do you guys tie into that? What do you do? Was the value that you bring to the customer, >> So the value that we're bringing really stems from what you can do with our platform. There's two things everybody is looking to do with him at the highest level, which is detect threats and respond to threats. On the detection side, we could take the metadata that we've extracted and we've enriched. We're running through machine learning algorithms, and from there we not only get a detection, but we can correlated to the workers we're seeing it on. And so we could present much more of an incident report rather than just a security alert, saying, Hey, something bad happened over there. It's not just something bad happened, but these four bad things happen and they happen in this time sequence over this period of time, and it involved these other work looks. We can give you a sense of what the attack campaign looks like. So you get a sense of like with cancer, such as you have bad cells in your liver, but they've metastasized to these other places. Way also will keep that metadata in something we call cognito recall, which is in AWS. And it has pre built analytics and save searches so that once you get that early warning signal from cognito detect, you know exactly where to start looking for. You can peel back all the unrelated metadata, and you can look specifically at what's happened during the time of that incident. In order, perform your threat investigation and respond rapidly to that threat. >> So you guys do have a lot of machine intelligence. OK, ay, ay chops. How close are we to be able to use that guy to really identify? Detect, but begin to automate responses? We there yet eyes. It's something that people want don't want. >> We're getting close to being there. It's answer your first question, and people are sure that they want it yet. And here's some of the rationale behind it. You know, like we generally say that Aria is pretty smart, but security operations people are still the brains of the operation. There's so much human intelligence, so much contextual knowledge that a security operations person can apply to the threats that we detect. They can look at something and say, Oh, yeah, I see the user account. The service is being turned on from, you know, this particular workload. I know exactly what's happening with that. They add so much value. So we look at what we're doing is augmenting the security operations team. We're reducing their workload by taking all the mundane work and automating that and putting the right details at their fingertips so they could take action. Now there's some things that are highly repeatable that they do like to use playbooks for So we partner with companies like Phantom, which got bought by spunk, and to Mr which Palazzo Networks acquired. They've built some really good playbooks for some of those well defying situations. And there was a couple presentations on the floor that talked about those use >> cases. Fan of fan was pretty good. Solid product was built in the security hub. Suit helps nice product, but I'll get back to the VPC traffic, not smearing. It makes so much sense. It's about time. Yes, Finally they got it done. This make any sense? It wasn't done before, but I gotta ask first with the analytics, you and you said on the Q. Before network doesn't lie, >> the network is no line >> they were doesn't lie with subversion pieces of key piece. It's better be the lowest level possible. That's a great spot for the data. So totally agree. Where do you guys create Valley? Because now that everyone's got available BBC traffic mirroring How do you guys take advantage of that? What's next for you guys is that Where's the differentiation come from? Where's the value go next? >> Yeah, there's really three things that I tend to focus on. One is we enrich the metadata that we're extracting with a lot of important data that makes it. It really accelerates the threat investigation. So things like directionality, things like building a notion of what's the identity of the workload or when you're running us on prem. The device, because I P addresses changed. There's dynamic things in there, so having a sense of of consistency over a period of time is extremely valuable for performing a threat investigation so that information gets put in tow. Recall for the metadata store. If people have a data leak that they wanna have ascended to, whether it's elastic or spawn, Kafka then that is included in what we send to them and Zeke formatting use. Others eat tooling so they're not wasting any money there. And in the second piece is around the way that we build analytics. There's always, ah, a pairing of somebody from security research with the data scientist. This is the security researcher explains the tools, the tactics, the techniques of the attacker. So that way, the data scientist isn't being completely random about what features do they want to find in the network traffic. They're being really specific to what features are gonna actually pair to that tool, tactic and technique. So that way, the efficacy of the algorithm is better. We've been doing this for five plus years, and history speaks for something because some of the learning we've had is all right. In the beginning, there were maybe a couple different supervised techniques to apply. Well, now we're applying those supervised techniques with some deep learning techniques. So that way, the performance of the algorithm is actually 90% more effective than it was five years ago. >> Appreciating with software. Get the data extract the data, which the metadata, Yes, you're doing. Anyway. Now, It's more efficient, correct, low speed, No, no problems with informants in the agents you mentioned earlier. Now it's better data impact the customers. What's the What's the revelation here For the end of the day, your customer and Amazons customers through you? What do they get out of it? What's the benefit to them? >> So it's all about reducing the time to detect in the time to respond. Way had one of our fortune to 50 customers present last week at the Gardener Security Summit. Still on stage. Gentlemen from Parker Hannifin talked about how they had an incident that they got an urgent alert from from Cognito. It told him about an attack campaign. He was immediately alerted the 45 different machines that were sending data to the cloud. He automatically knew about what were the patterns of data, the volume of data. They immediately know exactly what the service is that were being used with in the cloud. They were able to respond to this and get it all under control. Listen 24 hours, but it's because they had the right data at their fingertips to make rapid decisions before there was any risk. You know what they ended up finding was it was actually a new application, but somebody had actually not followed the procedures of the organization that keeps them compliant with so many of their end users. In the end, it's saved tremendous time and money, and if that was a real breach, it would have actually prevented them from losing proprietary information. >> Well, historically, it would take 250 days to even find out that there was a breach, right? And then by then who knows what What's been exfiltrate ID? >> Yeah, we had a couple. We had a couple of firms that run Red team exercises for a living come by and they said, I said to them, Do you know who we are? And they said, Of course we know where you are. There's one tool out there, then finds us. It's victory. That's >> a That's a kind of historical on Prem. So what do you do for on Pramuk? This is all running any ws. Is it cloud only? >> It's actually both, so we know that there's a lot of companies that come here that have never owned a server, and everything's been in AWS from day one and for I t. Exactly. And for them waken run everything. We have the sensor attached to the VPC traffic nearing in AWS. We could have the brain of the cognitive platform in eight of us, you know. So for them they don't need anything on prime. There's a lot of people that are in the lift and shift mode. It can be on Prem and in eight of us, eh? So they can choose where they want the brain. And they could have sensors in both places. And we have people that are coming to this event that their hybrid cloud, they've got I t infrastructure in Azure. But they have production in eight of us and they have stuff that's on Prem. And we could meet that need to because we work with the V Top from Azure and so that we're not religious about that. It's all about giving the right data right place, reducing the time to detective respond, >> Mike, Thanks for coming and sharing the insights on the VP. Your perspective on the vpc traffic mirror appreciated. Give a quick plug for the company. What you guys working on? What's the key focus? You hiring. Just got some big funding news. Take a minute to get the plug in for electric. >> Yeah, So we've gone through several years of consecutive more than doubling in. Not in a recurring revenue. I've been really fortunate to have to be earning a lot of customer business from the largest enterprises in the world. Recently had funding $100,000,000 led by T C V out of Menlo Park. Total capitalization is over to 22 right now on the path to continue that doubling. But, you know, we've been really focusing on moving where the you know already being where the puck is going to by working with Amazon. Advance on the traffic nearing. And, you know, we know that today people are using containers in the V M environment. We know that you know where they want to go. Is more serverless on, you know, leveraging containers more. You know, we're already going in that direction. So >> great to see congratulates we've known each other for many, many years is our 10th anniversary of the Q. You were on year one. Great to know you. And congratulations. Successive victor and great announcement. Amazon gives you a tailwind. >> Thanks a lot. It's great to see your growth as well. Congratulations. >> Thanks, Mike. Mike Banning unpacking the relevance of the VPC traffic mirroring feature. >> This is kind >> of conversation we're having here. Deep conversation around stuff that matters around security and cloud security. Of course, the cubes bring any coverage from the inaugural event it reinforced for me. Ws will be right back after this short break.