>> Narrator: From theCUBE Studios in Palo Alto and Boston connecting with thought leaders all around the world. This is a CUBE conversation. >> Hello everyone, welcome to this special CUBE virtual coverage of the AWS summit virtual online. This is an event that Amazon normally has in-person in San Francisco, but now it's virtual around the world, Seoul, Korea, in Tokyo, all over the world and Asia-Pacific and in North America. I'm John Furrier here joined with Stu Miniman. So Stu, we're kicking off AWS virtual with theCUBE virtual. I'm in Palo Alto with the quarantine crew. You're in Massachusetts, in Boston and the quarantine crew there. Stu, great to have you on to talk about AWS virtual summit. >> Yeah, John, it's great to see you. It's been, you know, interesting times doing all these remote interviews. As many of us say, I sure don't miss the planes and the hotels, but I do miss the communities. I do miss the hallway conversation, but great to see you John. Love the Midnight Madness shirt from re:Invent last year. >> Well, we want to thank Amazon for stepping up with some sponsorship for allow us to do the virtual CUBE alongside their virtual event, because now it's a global community. It's all virtual, there are no boundaries theCube has no boundary. Stu, we've got a great program. We have Corey Quinn coming up and expect to hear from him last week in AWS. He's known for, he's a rising star in the community, certainly CUBE guest and also guest host and analyst for theCUBE. We expect to hear all the latest from his big Zoom post controversy, to really what's going on in AWS, around what services are high. I know you're going to do a great interview with him, but let's start with Amazon. We're seeing a ton of activity. Obviously most recently, last week was the JEDI thing, which was an agency protest, kind of confidential. Microsoft blew that up big time with a post by their worldwide comms person Frank Shaw, countered by Drew Herdener, who's the comms global lead for AWS. And so a war of words is ensuing. This is again, pointing to the cloud native war that's going on with a JEDI conference. I mean, the JEDI contract for $10 billion, which is worth to Microsoft. This shows that the heat is on, Stu. This is a absolute bloodbath between AWS and Microsoft. We're seeing it play out now virtually with Amazon, A.I. large scale cloud. This is huge, this is another level. A DEFCON one basically, your thoughts? >> Yeah, John, you've covered this really well. It's been really interesting plot, number one, you talked about the security requirement, when AWS launched the GovCloud had the CIA as a client, early on many years ago. It was the green light for many companies that go from "Wait, is the cloud secure enough?" to "Well, if it's good enough for "the federal government in the U.S., "it's probably good enough for the enterprise." When Microsoft won JEDI, they didn't have all the certification, to meet what was in the contract. They had a ticking clock to make sure that they could meet those security engagements, as well as one of the pieces on the task board that moved was Oracle made a partnership announcement with Azure. We know the federal government uses Oracle quite a bit, so they can now run that in Azure and not have the penalties from Oracle. So that many have said, "Hey AWS, "why don't you kind of let that one piece of business go? "You've got federal business." But those ripple effects we understand from one contract kind of move things around. >> Well, my take on this is just the tempest in the teapot. Either Microsoft's got something that we don't know or they're running scared. My prediction, Stu, is that the clock is going to tick out. D.O.D. is going to award the contract again to Microsoft because I don't think the D.O.D. wants to change based upon the data that I'm getting from my reporting. And then ultimately Amazon will keep this going in court because Microsoft has been deficient on winning the deal. And that is by the judge and in government contracts, as you know, when you're deficient, you're ineligible. So essentially on the tech specs, Microsoft failed to meet the criteria of the contract and they're deficient. They still can't host top secret content even if they wanted to. This is going to be a game changer. If this comes out to be true, it will be a huge tech scandal. If it's true, then AWS is going to have egg on their face. Okay, so moving past JEDI, this speaks to the large scale problems that are having with COVID. You seeing Amazon, they're all working at home, but they still get to run the servers. They can do it, they've got cloud native, you got DevOps, but for their customers Stu, but people who are trying to do hybrid, what are you hearing in terms of the kinds of situations that people are doing? Are they still going to work with masks on? Are there still data centers that need to be managed? What are you hearing Stu, in the tech worlds do around COVID-19 and as the cloud becomes more apparent, it's obvious that if you're not cloud native, you're going to be on the wrong side of history here, it's pretty obvious. >> Well, absolutely John, there is a bit of a tailwind behind cloud or with COVID-19, everything from, you mentioned work from home. Everybody needs to be on their VPN. They need to access their services, where they are. If you've got a global workforce, if you thought that your infrastructure was going to be able to handle that, you might not be in for a good story. AWS is meeting that need. There's been some of the cloud providers that have had performance issues, that have had to prioritize which customers can get access to things. AWS is standing strong, they're meeting their customers and they're answering the call of cloud. We know that AWS puts a huge investment into their environment. If you compare an availability zone or from AWS, it is very, very sturdy. It's not just, you know, a small cluster and they say, "Hey, we can run all over the place." To be specific Azure, has been having some of those performance issues and there's been some concerns. Corey actually wrote a really good article talking about that it actually puts a bad view on public cloud in general, but we know not all public clouds are the same. So, Google has been doing quite well, managing the demand spike, so has AWS. Microsoft has needed to respond a little bit. >> Since you just mentioned, Microsoft's outages, Microsoft actually got caught on their 8K filing, which I just had me going through and I noticed that they said they had all this uptime for the cloud. It turns out it wasn't the cloud, it was the team's product. They had to actually put a strike a line through it legally. So a lot of people getting called out, but it doesn't matter, it's a crisis. I think that's not going to be a core issue. This is going to be what technology has been needed the most. And I got to ask you Stu, when was the last time you and I talked about virtual desktops? Because hey, if you're working at home and you're not at your desk, you might need some stuff on your desk. This is a real issue. I mean it's kind of a corner case in tech, but virtual desktops, if you're not at the office, you need to have that at home. This is a huge issue and it's been a surge of demand. >> Yeah, there were jokes in the community that, you know, finally at the year of V.D.I., but desktop as the service John, is an area that took a little while to get going. So, Dave Vellante and I were just having a conversation about this. You and Dave interviewed me when Amazon released workspaces and it was like, you know, Citrix is doing so well and V.D.I. isn't the hotness anymore, but desktop as a service, has grown, if you talk about desktop as a service compared to VDI, VDI is still a bit of a heavy lift. Even if you've got hyper converged infrastructure, roll this out, it's a couple of months to put these whole solutions together. Now if you have some of that infrastructure, can you scale it, can you build them up much faster? Yes you can. But if you're starting to enable your workforce a little bit faster, desktop as a service is going to be faster. AWS has a strong solution with workspaces. It really is that enablement and it's also putting pressure on the SaaS providers. One, they need scale and two, they need to be responsive that some of their customers need to scale up really fast and some of them need to dial things down. Always worry about, some of these contracts that the SaaS providers put you in. So, customers need to make sure they're being loud and clear with their providers. If you need help, if you need to adjust something, push back on them because they should be responsive, because we know that there is a broad impact on this, but it will not be a permanent impact. So, these are the times that companies need to work closely with customers, because otherwise you will, either make a customer for life or you will have somebody that will not be saying good about you for a long time. >> Well Stu, so let's just quickly run through some of the highlights so far on the virtual conference, virtual event. Obviously Amazon pre-announced last month, the Windows migration service, which has been a big part of their business. They've been doing it for 11 years. So we're going to have an interview with an AWS person to talk about that. Also AppFlow is announced as well as part of the virtual kind of private connects. So, you know, you're seeing that right here, large scale data lakes breaking down those silos, moving data from the cloud, from the console into the top applicants, like Salesforce is the big one. So that was kind of pre announced. The big story here is the Kendra availability and the augmented A.I. availability, among other things. This is this big story. This kind of shows the Amazon track record. They pre-announced that re:Invent and try to run as fast as they can to get it shipping. The focus of AI, the focus of large scale capacity, whether it's building on top of EC2, serverless, Lambda, A.I., all this is kind of coming together. Data, high capacity operational throughput and added value. That seems to be the highlights, your reaction? >> Yeah, so John, AppFlow is an interesting one, we were just talking about task providers. An area that we've been spending a lot of time talking with the East coast system is my data is all over the place. Yes, there's my data centers, public cloud, but there's all of these task providers. So, if I have data in ServiceNow I have it in Workday, I have it in Salesforce, how do I have connectors there? How do I secure that? How do I protect that? So Amazon, working with a broad ecosystem and helping to pull that together is definitely an interesting one to watch. Kendra definitely been some good buzz in the ecosystem for a while there. The question is on natural language processing and A.I., where are the customers with these deployments? Because some of them, if they're a little bit more longterm strategic might be the kind of projects that get put on pause rather than the ones that are critical for me to run the business today. >> And I just did a podcast with the VMware ecosystem last week talking about which projects will be funded, which ones won't. It brings up this new virtual work environment, where some people are going to get paid and some people aren't. If you're not core to the enterprise, you're probably not going to get paid. If you're not getting a phone call to come into work, you're probably going to get fired. So there will be projects that will be cut and projects that will be funded. Certainly virtual events, which I want to talk to you about in a minute, to applications that are driving revenue and or engagement around the new workforce. So the virtualization of business is happening. Now, we joke because we know server virtualization actually enabled the cloud, right? So I think there's going to be a huge Cambrian explosion of applications. So I want to get your thoughts, the folks you've been talking through the past few months, what are you hearing in terms of those kinds of projects that people are going to be leaning into and funding, versus ones they might put on hold? Have you heard anything? >> Yeah, well, John, it's interesting, when you go back at its core, what is AWS? And they want to enable build. So the last couple of years we've been talking about all of the new applications that will get built. That's not getting put on hold, John. What I do, not just to run the business but grow the business. I need to still have applications at the core of what we do. Data and application really are what driving companies today. So that piece is so critically important and therefore AWS is a very strategic partner there. >> Yeah, I've been seeing the same things too. I think the common trend that I would just add to that would be I'm seeing companies looking at the COVID crisis as an opportunity. And frankly in some cases an excuse to lay people off and that's kind of, you're seeing some of that. But at the end of the day that people are resetting, re-inventing and then putting new growth strategies together, that still doesn't change. business still needs to get done, so great point. All right, Stu, virtual events. We're here with the AWS summit. Normally we're on the show floor with theCUBE, we are here with the virtual CUBE doing our virtual thing. It's been interesting, Stu. A lot of our events have converted to virtual, some have been canceled but most of them have been been running on the virtual. We've been plugged in. But theCUBE is evolving, and I want to get your thoughts on how you see theCube evolving. I've been getting a lot of questions. This came up again on the VMware community podcast. How has theCUBE morphed? And I know that we've been working hard with a lot of our customers, how have we evolved? Because we're in the middle of this digital wave. This is a virtualization wave. theCUBE is in there. We've been successful, there's been different use cases. Some have been embedded into the software. Amazon's got their own run a show. But events are more than just running the show content. There's a lot more community behind this Stu, your thoughts on how theCUBE has evolved and what are you seeing? >> I'm glad John, you just mentioned community. So you and I have talked many times on air and did this too about theCUBE is as much a network and a community as it is a media company. So, first of all it's been so heartening over the last couple of months that we've been putting out content. We're still getting some great feedback from the community. One of the things I personally miss is, when we step off the stage and you walk the hallway and you bump into people that know and they ask you questions or they share some of the things that they're going through. That data that we always look for is something we still need. So I'm making sure to reach out to friends diving back into the social panels to make sure that we understand the pulse of what's going on. But, John, our community has always been online so a big piece of theCUBE is relatively unchanged other than we're doing all of the interviews remote. We have to deal with everyone's home systems and home network. Every once in a while you hear a dog barking in the background or a child running, but it actually humanized. So there's that opportunity for the communities to rally together. Some of my favorite interviews have been, the open source communities that are gathering together to work on common issues. A lot of them specifically for the global pandemic. And so there are some really good stories out there. I worry when you talk about companies that are saying, Hey, this is the-- (sound cuts out) There have been so many job losses, in this pandemic that it just is heartbreaking. So, we love when the tech community is helping to spur new opportunities, great new industries. I had a great interview that I did with our friends from A Cloud Guru and they've seen about a 20 to 30% increase on people taking the online training. And one of the main things that they're taking training on is the 101 courses on AWS, on Google and on Azure as well as an interesting point John, they said multicloud is something that has come up. So, 2020, we've been wondering is AWS going to admit that multicloud is a thing? Or are they going to stick with their hybrid message and ask that their partners not talk about multicloud? >> It's been interesting on the virtual queue, because we and Amazon's been a visionary in this and letting theCUBE be virtual with them. It's become a connective tissue, Stu, between the community and if you think about how much money the companies are saving by not running the physical events and with the layoffs as you mentioned, I think there could be an opportunity for theCUBE to be that connective tissue to bring people together. And I think that's the mission that we hope will unfold. But ultimately digital investments will probably go up from this. I'm seeing a lot of great conversion around, okay, so the content, what does it mean to me? Is that my my friend group, how are my friends involved? How do I learn, how do I discover? How do I connect? And I think the interesting thing about theCube is we've seen that upfront and I think there's a positive sign ahead, Stu, around virtualization of the media and the community and I think is going to be an economic opportunity and I hope that we could help people find either jobs or ways to reengage and reconnect. So again, re:Invent's coming, you've got VMworld, all these big shows too, they drop so much cash! Can you imagine if they put all that cash into the community? I think that's a viable scenario. >> Yeah, no, absolutely, John. There is big money in events. Yes, there are less costs. There are also almost none of them are charging for people to attend and very few of them are charging their sponsors. So, big shift in how we have to look at these. It needs to be a real focus on content. I mean, from our standpoint, John, from day one, and we've been doing this a decade now, in the early days when it was a wing and a prayer on the technology, it was always about the content and the best people help extract that signal from the noise. So, some things have changed, the mission overall stays the same. >> And you know what, Amazon is being humble. They're saying we're figuring it out. Of course, we're psyched that we're there with the virtual CUBE. Stu, thanks for spending the time kicking off this virtual coverage, wrap up. Not as good as face-to-face, love to be there on site, but I think it's going to be easier to get guests too Stu in the virtual world, but we're going to go to a hybrid as soon as it comes back to normal. It sounds like cloud Stu, public hybrid virtual. There it is. Stu, thanks so much. >> Thanks John. >> Okay, that's theCUBE coverage for AWS Summit Virtual Online. It's theCUBE virtual coverage. I'm John Furrier, Stu Miniman. Thanks for watching. Stay tuned for the next segment. (upbeat music)

live from Las Vegas it's the cube covering AWS reinvent 2018 brought to you by Amazon Web Services Intel and their ecosystem partners okay welcome back and we're live here in Las Vegas day three last interview of the day three days of wall-to-wall coverage two sets here at AWS reinvent 2018 our sixth year we've been at every reinvent except for the first one and it's been great to watch the rise I'm Jeff we're with Dean Volante we're here with Andy Jesse the CEO of AWS started this as it working backwards document years ago twelve years ago 12 half year zine years ago was when the document was written and we've launched 12 and a half years ago great to see you thanks for spending time I know you're super busy congratulations we met last week you couldn't really talk about it but boy there was so much more payload in the announcements than they were before are you happy with the results certainly three our keynote was taxing what's good impression when the keynote was over but ya know we're thrilled with it and most importantly the reason we're thrilled is because our customers are thrilled I think they just couldn't believe how much we delivered this week you know well over 100 capabilities and they were super excited about you know the storage announced was the thing is when you have millions of customers any announcement you make is going to be popular with thousands of customers so some people walked up to me and said oh I know it's not sexy but I love the storage announcements I needed the file systems I wanted that glacier deep archive some customers love the database releases with lots of customers that were excited about the machine learning piece and you know the another unsexy one where the enterprise abstractions just to make it so much easier for that type of builder who wants more prescriptive guidance to be able to get started quicker and then you know people are pretty excited that outpost too so it has you a question I'll talk Amazon speak now what what areas of the show do you feel you raise the bar this year on what was that what would you point to bar raising moments announcements well you know I think each year one of the things I like about reinvent and that we work hard on is we'd like to have we don't really want it to be a corporate event we wanted to be quirky and we want it to be authentic and we want you know we want our community to fit to have fun here while they also learn so you know Midnight Madness is for instance something we do every you know we've done the last couple years and we try radically different things and so I thought that Tatanka eating contest raised the bar is again this year was the second year in a row that we said again as political World Records and you know I thought I really liked Peter De Santis --is and Myrna Vogel's keynotes on Monday and today respectively I thought they both were fantastic and you know keep raising the bar are you over a year and you know so they're you know we're hoping I too will be something that people feel like raise the bar year over year what the house band synchronicity was quite good too you know yeah I tell you that that fan is terrific and you know and I think that again all those things I mentioned are part of what we you know think makes the event fun and quirky and different but the most important thing by far is the learning of the education and then our customers excited about not just the platform but we launched so many things do they feel like it helps them do their job better well while we're on the raising bar we've got a prop here this is the the deep racer deep the deep racer machine learning it's a toy for testing and the question comes up how old do you have to be to use this and I said hey if your kid can code machine learning good for them but talk about this because this is kind of interesting because it's fun but where'd this come from you know it came from last year when we release sage maker and we were making machine learning so much easier for everyday developers of scientists we said what can we do to give people hands-on experience because you learn things better if you actually try it and so we tried to help developers get more experience to computer vision by having a deep lens you know video camera and that was wildly popular and so as we were thinking about this year making reinforcement learning available as easily as we are in sage maker which we think is a huge potential game-changer grant Forsman learning the team kept thinking about it's great but nobody knows enforcement learning and nobody has experienced with it how can we give them experience what are ways they can get hands-on experience and that's how the deep racer car came up which is really making it simple where they can just give us a reward function with a line of Python strip and then Sage Maker will automatically train an RL algorithm and then they get to play it to the car and then race against one another and when we watched how competitive it was getting inside our own house on these RL infused cars racing each other we figured other people might find a compelling as well and I couldn't believe how many people participate yesterday yeah and then I don't know if you saw it three burners right before burners keynote the finals were really exciting to like the fact that there were some imperfections were actually made it more compelling to watch and so we had a racer Cup coming up - I met play 19 competitive yes that's going to happen yeah today was the accelerated version of the first ever deep racer League championship Cup but next year will be a full season at our 20 AWS summits the top winners in the in the deep racers you see bracer League races at each of those summits plus the top 10 vote getters in points from those summits will come here and compete for the championship Cup now you and I talked about a new persona last week when we met but now the announcements pretty clear now why this points to a whole new persona developer you got eSports on the twitch side booming heat sports is changing the game and in the whole digital sports category robotics space you got a satellite announcement this is a genre changed in digital culture and you see the AI stuff and machine learning how does the web services stack play in this new world where AI is now a service it's a whole nother paradigm shift what's your thoughts on all that well you know I mean all those areas that were continuing to expand into our areas that our customers are asking us to help them with and where there are huge opportunities for customers but where it's hard I mean if you look at space as an example if you've to interact with a satellite it's it's expensive to have to have all those satellites set up you know and those drown ground antennas set up and then you have to program them and then and you actually have to pay this fixed price instead of on-demand customers so why can't you give us access those satellites the way we consume AWS and then if you can have the ground antennas where when the data comes down from the satellite it's basically on the same premises as your AWS region so we can store the data and process the data analyze it and take action that is very compelling so that that just felt like a natural fit you know and the same thing with robotics I think that robotics is one of the most underrated areas of Technology I think robots will do all kinds of things for us at work and in a home and the tools out there to make it easy to build robotic applications and to do the simulation to deploy them and then have them work with the rest of your applications and infrastructure have been pretty primitive and so robot maker is I agree with you I think you look at the younger generation too even at the high school elementary level people are gravitating towards robotics robotics clubs are booming that maker culture goes through a whole nother level with robotic congratulation you know it's funny we had the youngest person to ever pass the AWS certification exam is a kid named Karthik nine years old passed and he was here this week actually and I got a chance to meet with him today and I said well after the certification what are you doing he said well I'm building a robot you know I'm feeling Ruben he said now with your launch of deep racer I want to try and find a way to to have the deep racer car be the eyes and the camera and the reinforcement learning for my robot nine years old yes it's gonna be a different generation with what they build John and I were talking this morning Andy at our open about you're making it harder for the critics used to be self-service only it criticized your open source contributions the hybrid strategy your turn a tick in the box is on all those outpost was I think surprised a lot of people it didn't so much surprise us that you were moving in that direction but I wonder if you could sort of talk about some of those key initiatives I know it's customer driven but wow the the TAM expansion the the customer value that you're bringing it's like a whole new era that you're entering yeah you know everything we build is you guys know we talk about all the time it's just it's driven by what customers want and so we just started over the last six months you know and really by virtue of having this partnership with VMware where we have a lot of enterprise engagement as they're moving to the cloud using VMware cloud and AWS we had a bunch of customers say it's really great I'm moving most my application of the cloud but there's some that aren't moving for a while because they got to be close to selling on-premises and I want to use AWS for this I don't want a different environment can you just find a way to put some services like compute and storage on-premises and hardware but I want to actually use the same control plan I'm going to use for the rest of AWS and I wanted to easily connect with the rest of my applications in AWS and we had you know we didn't like as you and I talked about a week or two ago we just have not like the model that's been out there so far to do this because it's you know the control plane is different the api's are different the tools are different the hardware is different the functionality is different and customers don't like it's why it's not getting much traction and we didn't want to pursue it if we didn't think it was going to be useful but we had this concept we were working on with a couple customers where they wanted compute and storage on-premises but they wanted to have that connect with all the other applications in the AWS cloud and so we have this idea that maybe this local set of compute and storage would be like a far zone from an availability zone they were using and we started thinking about that and we thought there was much more generalized idea which became outposts and so the thing that I think people are gonna love about that is for the applications that can't move easily because they need to be close slang on-premises you get AWS like real AWS compute real AWS Storage Analytics database sage maker will be in there as well but it's the same api's same control playing the same tools the same hardware we use in our data centers and it will easily connect through the same control plane to the rest of AWS the rest of the services and the rest of their applications there so and it provides a platform for a whole host of new services down I mean every customer meeting I've had in the last we made the announcement people are excited about I want to ask you guys are talking about all the innovation and new areas and we're seeing an expansion of the AWS distinct brand and things like TV advertising statcast I wonder what's behind that can you address that yeah it's a good question I mean there's kind of two different types of I'll call it TV advert Swartz we're doing one is straight-up advertising one is less so which is you know the one that less so is that a number of the sports leagues are really interested in and actually pretty sophisticated in using cloud computing and analytics and machine learning if you look at Major League Baseball now NFL and Formula One and they want to make the user experience and the viewer experience so much better and so they're building on top of AWS and then we like the ability of helping them showcase the capabilities that they're you know both the customer experience and the ml and AI capabilities then there's just a straight-up advertising them that we've been trying we tried a little bit of it last q4 and you know it's always very difficult to quantitatively measure tvf but we have a lot of ways that we try to triangulate that and we were really surprised and what looked like the positive numbers we saw for both TV as well as the outdoor media and things like in the airports and things like that and so we decided we would try it again this q4 and you know I think I would call us right now still experimenting yeah and it's very much kind of what Amazon does which is we try different things to see what resonates the see Whitefield says so so far so good and we expect to keep experimenting I I think that's a good call because the brand lift is probably there I'll see impressions get reach vehicle but you guys are in a rising tide market we're hearing co-creation VMware co-creating deep meaningful partnerships you always talk about that so it's kind of this success model of innovation to reimagine the satellite Lockheed Martin a partnership this seems to be a new way to do business in this rising tide how are you guys getting the word out education people want to know more this is a big kind of movement yeah well you know I think that if you looked at the first several years of AWS I was always surprised when I would go see enterprises and they would have no idea that Amazon was doing anything in the cloud even though we had the only cloud offering at the time so I think if you compare where we were a few years ago to today there's you know gigantic awareness relatively speaking but I still think that there are so many majority of workloads still live on premises I mean we have a twenty seven billion dollar revenue run rate business it's growing forty six percent year-over-year and yet we're still at the early stages of the meet of enterprise of public sector adoption in the u.s. you go outside the US where there twelve to thirty six months behind depending on the country in the industry and sometimes it feels like you know like Groundhog's Day well you guys are doing regions out there Italy as was announced yeah you're expanding very fast globally can you talk about that real quick yeah it's it's a you know we've had customers from 192 countries using AWS for many many years but they've been using AWS in regions outside of their country usually because there are a lot of workloads that could stand that latency and where the data doesn't have to be on natural soil but increasingly if you want to help customers get done what they want to and serve the broader array of their applications you have to have regions in their country both so that they have lower latency to their end users and because the data sovereignty laws which are getting really more rigid rather than more flexible let me ask you a question about competition you you said I can't members on the cube or in person there's no compression reach out gorilla for experience and time elastic economies with scale when you have copycat people trying to copy Amazon how do you talk about some of those things that are those diseconomies of scale what are the points that customers should look at when they say okay I got someone else is talking cloud Amazon's got years of experience ahead of the competition more services what do you talk about what do you point to you it's not about slimming the competition but what is the diseconomy of scale to try to match the trajectory of Amazon yeah it's it's a bunch of things you know first of all it's operational performance you know a lot of the hardest lessons you learn and operating of scale only happen when you get to that level of scale and you know there's some events that we see sometimes elsewhere we look at that and then we read the post-mortem we say oh yeah 2011 you know we remember they went through that I don't wish it on anybody but when you have a business at several times larger than the next or providers combined you just said a different level of scale and you've learned lessons earlier I also think that the reason that we continue to have both so much more functionality and innovate at a faster clip and seem to get capabilities that customers want is because we have so many more customers than anybody else you know a lot of times and this is happening all week to where customers will say to me I can't believe that you knew that I wanted that and I always say it's because you told us yeah it's not like we're Nostradamus you've told us that and so when you have so many more customers and when they feel free to give you feedback and when you've built good mechanisms like we have to get that feedback from the field to the product builders it means there's this real flywheel of getting you know getting more customers leads to more feedback leads to more features leads to better functionality where there's a network effect from being on the platform with all those other customers and all those industries I wonder if you could add some color to a premise that we've put forth on your edge strategy so what you guys you know we do a lot of these shows and a lot of the IOT and edge strategies that we've seen from traditional IT players what you call the old guard have fallen flat in our opinion because it's a top-down approach it reminds us of the Windows Phone it just didn't work and it's not going to work as their operations technologies people we see what you've announced here as a Bottoms Up approach you developing an application platform to build secure and manage apps for those folks right at the edge I wonder if you could add some color to that and some thoughts on your edge strategy yeah I mean again for us if we don't have some top-down strategy that you know that I think is grandiose it's just what customers want and so we have so many customers who have all these devices at the edge and all these assets at the edge and they said to us well the first problem I have I want to get this data into the cloud and then I want to do analytics item we say ok well how can we help they say well the first thing is I don't even know how to translate this data from the device protocol to just being able to operate in the cloud so that's the first problem we go solve well then people say ok now I can get it in but I actually I need security like you know if you look at the amount of security options for these edge devices it's a new field you know let that dine attack that took a lot of the internet down a couple years ago came from you know a device on the edge and so that's why you know we built you know a security capability and people say well okay now you've made it so I can run devices but if I'm gonna run thousands of devices I need a way to manage all those devices of scale and we build telling to manage two devices and people say well ok it's great that I can do it and device is big enough that have a CPU but what about when they don't have a CPU you know they have just a microcontroller and that's why we built the our toss piece and you know the list kind of keeps going people so this is great now that I get all this data in the cloud I can take all these analytics actions but on my device sometimes I don't want to make the round trip to the cloud so can you give me a way to use the same programming model and and pick which triggers I want to take action with cloud versus those that want to take on the device itself which was what green grass was so all of those pieces is not some kind of top-down master plan as much as we know that customers have all these devices the edge that they want to use that data analyze that data take action on that data and send it back in multiple ways and you have you have the cloud platform to give them the services to make the tools the right tools for the right job yeah that's the main team yeah so I got to ask you about one of the big controversies that we don't think that's that controversial but the chips that you announced new Amazon Web Services front microprocessors the chips yeah do two of them talk about them and Intel's also a partner a lot of people are talking about this in the press yeah Intel Amazon chips well that annapurna acquisition is Norton they bear fruit was 2015 I think yeah early it really the annapurna team is fantastic and they've added a huge amount of value to AWS and Amazon as a whole you know the first thing I would say is that Intel is a very deep partner of AWS and will be for a long time I mean that that's not changing and we've been a long thought that they were gonna be lots of different processors out there and and different ones that did different things at different price points and so like a lot of other companies we've been interested in arm for a long time and for a while it wasn't mature enough and the technology is matured and we found a way in in building our own ARM chip with graviton where we think we can allow customers to run a lot of their scale out generalize were close but up to 45 percent less expensively and so when you find a value proposition that compelling for customers you need to do it and you know as I mentioned in the keynote yesterday when we were talking about inference we feel like a lot of the world has been solvent for training and not solvent as much for inference yet and we've made training so much easier with the things that we've built in AWS over the last couple years but inferences where most of the cost is gonna be and so elastic inference we think it you know will allow people to be much more efficient in how they use them for use and how they spend money but when you've got the type of workloads at scale and productions that use whole GPUs or that need that low latency where you need it on the hardware of a chip that's optimized for inference they is faster that's more cost effective that's high throughput we can get hundreds of tops on it and thousands to you ban them together he's gonna totally change the game for imprison and so that was something that wasn't easy for us to find elsewhere and when we have team fortunately they could build it and it's the combination of the elastic service of inference with the chip that makes the difference it specialism there so it's not like I mean you can use each on their own and we expect they'll be a bunch of customers who will use each on their own but there will be an opportunity to use those in combination that will be very powerful it comes down to really deeply understanding the customer problem again at night training versus inference and everybody talks about the training right the the technical challenge you got a child is the internet and tells gonna make a lot of money as it stands expanding market banding so they'll get their share the chips get taped out their con a couple year to three year life cycles and everything starts anew every time somebody's building a new chip so I think it's actually great for customers of all sorts that there's multiple processors that are possible but we will have a deep relationship with Intel forever I think so I want to talk about one of the cool demos you did on stage not a lot you did customer did f1 that was a super cool I love that imagery because it said an analogy of high performance competitive racing that can be applied to this play sports anything and the level of accuracy that they need in the real time time series kind of encapsulates a lot of the cloud value talk about the f1 analytic thing are you guys gonna sponsor these events there's a relationship there give us what the picture of what's going on there you have a deep relationship with Formula One where they're using our platform to to do their all their digital properties as well as their analytics and machine learning and it was super cool to see Ross demo the way that they're changing the user experience for for viewers and you know it's it's it's an amazing sport you know it's not watched as much maybe in the US but outside the US that is the motorsport and the way that they're changing the experience the way that they're able to assess what's happening with drivers and with cars and then predict what's actually happening and make the viewer feel like they're actually either in the cockpit or actually in the pit itself with it with the crew is it's really exciting and it's non err to be a partner so you do some events they'll get the cube they're these these big time again there's a tech angle now and everything it's a plug for you to be at the they have one event cloud demócrata you're hitting now new industries I mean this is the thing right I mean it's disrupting every industry I mean what aren't you disrupting I mean what areas do you see that yet aren't coming online to the cloud I don't see industry segments at this point that aren't moving to the cloud I would have told you 18 to 24 months ago that I felt like financial services was moving a lot more slowly than then I thought they should or you know probably healthcare also was a little bit slower but both of those industry segments are moving very aggressively well it's taking longer they're high-risk industries and the digital transformation has it occurred fast enough but it's coming and there's regulatory pieces that they legitimately have to sort through and you know we have just if you look at financial services as an example we have a pretty significant team that does nothing but work with our partners to help them with the regulatory bodies because what we find is when we go with a customer to a regulator and show them a real use case and then how it will be done in a DOP is the regulator says oh well that's more secure that you do on-premises and so it's just an education process and you know I think that's been helpful in it and I'll get final questions for you what have you observed here at reinvent Houston glad people talking so you get a lot of feedback actually to clopped two-part question because I was asked the final final question so I'll just get it out front what are people missing of all the announcements you've had a lot of signal in there a lot of a lot of announcements what are what is something that you've observed that you think should be amplified that people might have not overlooked but like you feel like it's more important to sign the light on we'll start with that one well you know it's a little hard for me to tell this moment just because there have been so many in such a short amount of time and and if we just look a little bit at the coverage it seems and if I take just as inputs they comments and and the questions from customers it's been pretty broadly understood and people are pretty excited and as I said different segments have kind of their favorite areas but I feel like people are pretty excited by the breadth of capabilities you know I think that if I pick two in particular I would say that people are still in the machine learning space people are blown away by how much we provided are all three layers of the stack I think people are still getting their heads around which layer of the stack am I gonna participate at you know I mean the one that probably has the most potential for most companies is that middle layer because most companies have gobs of data and there are jewels in that data and if you can enable their developers their everyday developers to be able to build models and get at the predictive value and add value that has huge impact for companies moving forward but most modern companies with technology functions will use all three layers of the stack and so just getting their arms around which layers of the stack they should take advantage of first and having the personnel to be able to do it and we're making that much easier with things like sage maker and then you know I think if you look at the blockchain space I think that that is just one of those spaces that has a huge amount of buzz people talk a lot about it exactly sure sometimes what they're gonna do but but I also think that a lot of people said to us that breaking those into those two real customer jobs to be done and then having a great solution that does each of those jobs really well is not only something that AWS does all the time that makes it easier for them but it also made it easier for a lot of them to understand that a lot of customers said to us you know that qld be that ledger database with a single trust of central authority for my supply chain that's what I need for my supply chain I don't need all the complexity of a blockchain framework and then there were a lot of other people said oh yeah that is what I want I wanted to decentralize trust between peers but I just needed a way easier way to manage hyper ledger fabric and etherium so I think those are two that people like are so interested and still figuring out how to use as expansively as I think they hope they will Andy thanks so much for your time and I want to just say watching you guys in the past six years has been a fun journey together but watching the execution you guys have done an amazing job of keeping your eye on the ball and being humble but being proud and loud at the same time so congratulations and you know guns blaring in 2019 what's your top pray all right besides listening to the customers what's your top 20 19 we know you listen to cut oh my gosh we have so many things that we're doing in 2019 but you know we have a lot of delivery in front and in front of us I mean as much as we launched 140 unique things over the last six to eight business days and yet I tell you to stay tuned the rest of 2018 we have more coming and then in nineteen you'll you should expect to see more few capabilities more database capabilities more machine learning capabilities more analytics capability look a lot I could spend all night John we don't need it we don't need a post reinvent post you know traumatic announcements syndrome because just to digest it all yeah it's a lot of work looking forward to seeing how enterprises continue to make to to kind of manage their hybrid approach as they're as they're making this trend transition from on-premises to the cloud how many continue to jump on to VMware cloud an AWS how many jump onto outpost so I think that that transition and helping customers do that easily is something on here of course we'll be commentating and pontificating on that for the next year thanks for your time I really should have me and I appreciate that you guys come at regular pay our pleasure okay winding down that's the last interview here wall to wall covers two cents 110 interviews in the books we'll have 500 video assets total blog post on Sylvia angle calm that's reinvent closing down 2018 thanks for watching [Music]

>> Lisa: I'm Lisa Martin with theCUBE. We're on the ground at Google for the 6th Annual CloudNOW Top Women in Cloud Awards. Very excited to be joined by award winner and CUBE alumni Erica Windisch, founder and CTO of Iopipe. Welcome back to theCUBE, Erica. >> Erica: Thank you. Great to have you here, and congratulations on being one of the top women in Cloud. >> Yeah, of course. >> Tell me, when you heard about that you were being recognized, what did that mean to you and where you are in your career? >> Well, oh gosh, I mean it really meant, it was really big for me. I actually wasn't really expecting it. I think I was nominated and I totally forgot. I think somebody had mentioned to me that they were nominating me and I had no idea about it. I totally forgot about it. But I mean, for me it's just so validating because as much as I've, well one, because I've done a lot of interesting things in Cloud and in tech, but I've never really gotten a lot of recognition for that. And also, just recognition, I mean to be quite honest, I'm transgender. So the fact that I was recognized as a woman, Top Ten Women in Cloud Computing, was extra important and special for me. >> Oh, that's awesome. So tell me about your path to being where you are now. Were you always interested in computers and technology, or is that something that you kind of zigzagged your way to? >> Yeah, well, it was one of these things I guess I had some interest. When I was a child, we had BASIC exercises printed in our math books but our teachers never went over it. So I got kind of interested and I would read through those like those little appendums in my math books, and I would start teaching myself BASIC. And I picked up a Commodore 64 and it didn't work and I taught myself BASIC, more BASIC with those manuals. And I just had these little tiny introductions to technology and just self-taught myself everything. Eventually using a high school job to buy myself books and just teaching myself from those books. Managed to grab Linux on some floppy disks, installed it and tried to figure out how to use it. But I didn't really have lot of mentors or anything that I could really follow. At best there were other kids at school who were into computers and I just wanted to try and do what they were doing or do better than they were doing. >> I love that, self-taught, you knew you liked this and you were not afraid to try, "Hey, let me teach myself." That's really inspiring, Erica. >> Yeah. >> So, speaking of inspiring, tell me about the Iopipes story. So you're a TechSource company, tell us a little bit about TechSource, what that investment in IOpipe means. >> Yeah, so, I started, I guess I first started IOpipe two years ago. And I found the co-founder Adam Johnson, who joined me. And we applied for Techstars, got in, and that was like the first validation that we had from outside of ourselves and maybe one angel investor at that time. And that was a really big deal because it really helped accelerate us, give us validation, allow us to make the first hire, and they also taught us a lot about how to refine our elevator pitch, and how to raise money effectively. And then we ended up raising money, of course. So with the end of Techstars we had a lot of visibility, and that helped us raise two and a half million dollars seed round. >> Wow, so a really good launching pad for you. >> Yes, yeah. >> That's fantastic. So tell us a little bit more about the technology, I know that there's AWS Lambda, we just got back from re:Invent last week, so tell us a little bit more about exactly what you guys do. >> Oh yeah, so what we do is we provide a service that allows developers to get better insights into their application, they get observability into the application running a Lambda, as well as debugging and profiling tools. So you can actually get profiling data out of your Lambda and load that into Google DevTools and get Flame Graphs and dig in deep into which function called which function inside of each function call, so every Lambda invocation you can really dig down and see what's happening. We have things like custom metrics and alerts for that. So you can, for instance, we built this bot. I built it in two days. It's a Slack bot that, if you put an image in a Slack, it will run it through Amazon Rekognition and tell you, describe the objects in it, and describe it. So, for instance, if you have visually impaired members of your team, they can find out what was in the images that people pasted. I built it in only two days, and I could use our tool, let's say to extract how many objects were found in that image, whether or not a specific object was found in that image, and then we can create alerts around those, and do searches based on those, and get statistics out of our product on the data that was extracted from those images. So that was really cool, and we actually announced that feature, the profiling feature, at Midnight Madness at re:Invent so it was like the opening ceremony for re:Invent. It was just us, Andy Jassy and Shaquille O'Neal. >> Lisa: What? >> Yeah, and we launched our product, and we did the demo of this Slack bot, and it was a lot of fun. >> Wow! So you were there last week, then? >> I was there, we were there last week, and we were actually the first, myself, my co-founder and one of our engineers were up there and we were the first non-AWS speakers at the entire arena, it was really amazing. >> Wow, amazing. Congratulations. >> Thank you. >> So with all the cool announcements that came out last week on Lambda, Serverless, even new features that were announced for recognition, how does that either change the game or maybe kind of ignite the fire under you guys even a little bit more? >> Well I think one of the biggest announcements relative to us was Cloud9. And we knew that this was going to happen, Amazon acquired them a year ago, a year and a half ago, but they finally launched it. And they really doubled down on providing a much better experience for developers of Lambda to make it easier for developers to really build and ship and run that code on Lambda, which provides a much tighter experience for them so that they can on-board into things like IOpipe more easily. So that was really exciting, because I think that's really going to help with the adoption of Lambda. And some of the other features like Alexa for work is really interesting. It will probably just again, a lot of Alexa apps are built on top of Lambda, so all of these are going to provide value to my own company because we can tell you things like, "Well, how are your users interacting "with those Alexa skills?" But I think it's just generally exciting because there's just so many really cool, I mean, I don't know how many things they announced at this re:Invent that were just really amazing. Another one I really loved was Fargate, because I mean I came from Docker, I used to be a maintainer of the Docker engine and something that I was pushing for at that time in OpenStack and other projects, was the idea of just containers completely as a service without the VM management side of things, because with like ECS, you had to manage virtual machines, and I was like, "Well that is a little, like, "I don't want to manage virtual machines, "I just want Amazon to give me containers." So I was really excited that they finally launched Fargate to offer that. >> So the last question in our last couple of minutes here, tell me about the culture and your team that you lead at IOpipe. You were saying before, you know, when you were a kid you were really self-taught and very inspired by your own desire to learn, but tell me a little bit about the people that work for you and how you help inspire them. >> Oh gosh, well I think first of all, we are, right now we're nine people. I would say about four or five of us are under-represented minorities in tech in one way or another. It's really been fantastic that we've been able to have that level of diversity and inclusion. I think part of that is that we started very diverse. You know, a lot of companies will say, well, one of their problems with not having enough diversity is that they hire within their networks, well we hire within our networks, but we started very diverse in the first place. So that organic growth was very natural and very diverse for us, whereas that organic pairing growth can be problematic if you don't start in a very diverse place. So I think that's been really great, and I think that the fact that we have that level of diversity and inclusion with our employees is kind of inspiring, because a lot of workplaces just aren't like that in tech. It's really hard to find, and granted we're only nine right now. I would really hope that we can keep that up and I would like to actually make our workforce even more diverse than it is today. But yeah, I don't know, I just think it's fantastic and I want what we're doing to be a role model and an inspiration to other companies and say, "Yes, you can do this." And also the work people in the workforce, yes, you can be a woman in tech, yes, you can be trans in tech, yes, you can be non-binary in tech. I am binary, but we have non-binary people in staff. And, I don't know, I hope that's inspiring to people and also myself being a transgender founder, I maybe know one or two other people who are transgender founders, it's very uncommon. And I hope that also is an inspiration for people. >> Well I think so, speaking for myself I find you very inspiring. You seem to be someone that's really known for thinking, "I'm not afraid of anything. "I'm just going to try it. "Starting a company, I'm going to try it." And it sounds like you guys are very purposefully building a culture that's very inclusive, and so I think that, as well as your recognition as one of the Top Women in Cloud, be proud of that, Erica. That's awesome. >> Thank you. >> And you got to meet Shaquille O'Neal? >> I got to meet Shaquille O'Neal, yeah. >> I've got to see the photo. (laughs) >> Yeah. >> Well thank you so much Erica for joining us back on theCUBE. Congratulations on the award, and we look forward to seeing exciting things that you do in the future. >> Okay great, thank you. >> I'm Lisa Martin on the ground with theCUBE at Google for the CloudNOW Top Women in Cloud Awards. Thanks for watching, bye for now.

>> Announcer: Live from Las Vegas, it's the Cube, covering AWS reInvent 2017, presented by AWS, intel, and our ecosystem of partners >> Hello everyone, welcome to the Cube here, live in Las Vegas for Amazon web services, AWS annual conference reInvent 2017 and I'm John Furrier here, the co-founder of SiliconANGLE Media, co-host of the Cube. We are here for our fifth year in a row as Amazon Web Services continues to go on a thundering pace of product announcements and massive growth and we're here with two live sets, we're growing so much, there's so much action, there's two cubes, double barrel shotgun of innovation and data we're sharing with you, go to SiliconAngle.com, check out all the stories, all the news and we're hear kicking it of with an analysis, getting ready for tomorrow, the big day, today's officially the partner day, Sunday night they had Midnight Madness, the first ever event for Amazon, where they used the March Madness, kind of copied Cube Madness if you follow the Cube and they do a little preview, I'm here with Justin Moore and Keith Townsend, two great analysts in the community, guys and co-host this week at the cube. First of all thanks for co-hosting the Cube this week and thanks for coming by >> It's a pleasure >> Nice being here with my 50,000 closest friends (laughs) >> It's so good to have you guys here, one, the hosting but more importantly more Cloud thinking men but we've been watching this evolution, both when the Amazon start, I know you both have been involved in the game, in the Cloud watching it and participating but watching just like the tipping point, you're starting to see that moment where, people are calling this the Vmware 2008 moment, Where it's like oh my God its kind of gone mainstream but its still got a community, can they keep that alive? Meanwhile everybody is just getting blown away by Amazon, no matter what is being said, they're clearly the leader in Cloud, Microsoft pedaling as fast as they can, cobbling together their legacy Cloud, to try to keep up. Google, a new guard company looking really good with developers but not international, not a lot of things there yet but certainly looking great and then you got everybody else. >> Keith: Is there anybody else, really? >> As Dave Alonzo would say, what horses are on the track? >> Yeah there's lots of smaller players who are calling themselves Cloud, they're much more like, manage service providers and collocation kind of things, its not really Cloud they way you would think of it from the AWS kind of perspective. >> I've been talking to a lot of Fortune 500's lately and all of their internal customers, when they describe what they want, they're describing AWS, Azure and Google compute and everything else is just not even part of the discussion >> Yeah it needs to look like AWS, that's like the bench mark so this is what it is >> Total gold standard, the bell weather, let's talk about Amazon because I was writing a post on Forbes, I posted about kind of, trying to tell the story in a way that was kind of understood by the mainstream, still not really truly understood but they're changing the game, they're just kind of minding their knitting, they're just all steam ahead, you know, why look in the rear view mirror when your top dog? Why do that but the game is changing, they're constantly introducing new stuff, serverless is the hot trend that we've been tracking, you're seeing it here, you're seeing real developer centric, customer centric announcements. Even during the analysts meeting I heard rumblings, we can't even keep up with all the news, it's so massive so just thundering pace of announcements. Where's the innovation? What's Amazon doing now? What do they gotta do to distance themselves from the field? >> It's interesting, I reckon the competitors to Amazon are actually distancing themselves from AWS, they're trying to find their own way of doing things because you cannot AWS AWS >> Keith: Rackspace learned that a couple years ago right? >> Yeah, trying to compete head on, you're gonna lose so then we see Google is pushing really really hard, machine oiling and they are in top systems, a lot of people are using them for that big data and genomics research, Microsoft is all about office 365 and their traditional enterprise applications that all of their customers today, they know and love >> Yeah so Microsoft is doing what Microsoft does, which is taking care of their enterprise customers and I think this is where AWS needs to innovate in and its not maybe a technical innovation more than a operating and sales approach to how they treat enterprise customers. Enterprise customers still I think, are struggling to this date on how to interact with AWS and AWS is still trying to figure out how do they sale and help manage enterprise accounts. >> So let's separate IT because obviously two factors are merging, the CXO which is traditional IT, which we're all familiar with and a new kind of developer model is emerging and I won't say it's developer speeds and fees, developer programs, where developers are shaping the agenda. It used to be CXO's have the cash, they drive everything. Now you got this developer mojo and I can see early signs of a cult here, where all the innovation that's come in the field, is from customers saying screw it, I don't need the big dog telling me, the old guard, the old CIO up there, I'm just gonna go do it, get out of my way, three feet in the Cloud dust, get a prototype up and running. So you guys see that dynamic, with this cultural shift, what's your thoughts? >> Cloud is a state of mind... (laughs) It's a way of operating the business, its not so much about the infrastructure, its not so much about the services that live on top of it, it's how you use them and that way of doing things that the developers like, is that they get to pick and choose their favorite tools from what they think is the best solution and a lot of the time that's been AWS and then they blend them together and they just stitch this system together based on the favorite tools that they have and that just lives in a completely different level of abstraction than what we've seen before. >> And the speed too, I mean that's just changing the game too, right? >> Well you can do that a lot faster than waiting, raise a PO, wait for three months for someone to rack ans stack a whole bunch of gear, wait for everything to clear through purchasing and then you get access to the enterprise, anointed correct thing, so we saw it the same with sales floors, where people would... sales guys would just go with a credit card and just say, yes I'll have some of that, thanks >> It's much more than a credit card, VMware worked their re-Cloud air service a couple years, said, I can take your credit card, build a data center, my son a developer, in college, I gave him that solution, he looked at it, he was like what's a load balancer, why do I need to configure a firewall, I just want to build a application man, I just want to build, I just want to code, and AWS has figured that out, how to get developers back to what they love to do, which is solving problems via code and you see it, even before the start of this show, there's a lot of hoodies and shorts at this conference, compared to the culture that we see at a lot of other and past shows. >> I find it inspirational, so couple key points, so I asked Andy Jassy, an exclusive one on one with him last Monday and I asked him, you know, he was talking and he made a comment to me and I'll tell you the story here, he says, you know, we have a conversation inside Amazon, this is Andy talking about if we were gonna start Amazon all over again, cause he tells the story about the scar tissue and all the pain they went through with S3. He says if we're going to do it all over again, we would use Lambda, and the serverless trend is interesting because now that speaks to your son's objective, I don't need routers, I don't need load balances, I don't need gear... >> What do you mean how many CPUs I need? I don't know >> What's a patch? >> You tell me, alright, yeah >> Load Linux? What's Linux? So, okay if that's the norm, the driver has to be a new programming methodology, not agile, we're talking about compose ability and a level where no one says, oh I need Oracle for that or I need Mongodb for that, there's just data bases. So a whole new things happening where this choice that used to be the religious war between vendor A or B... serverless could change the game on this >> We're just gonna end up with a new religious war I think, it's gonna be, instead of Vim versus Emacs, it's gonna be should I use Amazon Lambda or should I use Google Cloud functions, it's gonna be one of those, which programming language is the best. >> Okay old guard, new guard, it's a term that Jassy uses, I like it because I'm old, so maybe I'm old guard trying to be new guard, old guard means legacy, he's really talking about Oracle, IBM, probably say Microsoft, so move over and put them in that bucket, so new guard players, clearly Amazon, saying they're new guard, but Google's new guard in Cloud, they're not really trying to do anything legacy, they have legacy infrastructure but they're approaching a... a market from a new guard perspective. What's you guys take on old guard, new guard and do you agree with that statement and what do the old guards have to do to be cool with the new school? >> So the Cube has been at almost every major conference, this year, take an example, what some of the old guard is trying to do, NetApp is trying to get into the Cloud conversation. Google has none of that legacy concern of needing to sell boxes, you look at a solution like Kubernetes, Kubernetes has come on and taken over the container orchestration conversation because Google doesn't need to make money off of Kubernetes, they don't need it to sell more boxes, there's a bit of freedom... >> They may have moved some work loads off Amazon, don't you think? >> It's a great way to move work loads out of Amazon, AWS has joined the CNCF because they no longer have a choice in the matter, Kubernetes has won the containers war so because of that, these new school competitors can compete in ways that a HPE, Dell EMC, etc., simply can't. >> Josh I gotta ask you this, I agree with what he's saying, I'll take it one step further, the old guards trying to slow the game down, move the goal post as an expression, they gotta try to slow this freight train down because otherwise it could be less than it does and they have leverage, they've got customers, they have market power, even Oracle I would say is in that category so they gotta kind of slow the game down but is the scale and the unprecedented amount of announcements, the differentiator as more services come on, their thesis here at Amazon, as I release more services faster, more available capability thus more, total address full markets available. Do you buy those two things, slowing down and services being the advantage? >> That's interesting I think it's more of a scatter gun approach in a way, it's like you know, fail fast. So if we throw enough services out there, throw enough stuff at the wall, we'll just find the ones that work and concentrate on those, as someone who tries to keep up with what Amazon is doing and this happens with developers as well. When you release 800 new services in a year, name them all, as a human that's really really difficult to manage. So I think in some ways it's a little bit... >> I've got four kids I can't even name, I get them all confused >> It's a little bit like Microsoft Word, it's got 800 billion different features but for any given customer they're gonna use maybe 10% of them and yet all of them are there because different customers use a different 10%. I think that's a little bit what Amazon is going for, kind of ubiquitous market coverage, as much market as it can possibly get, it's a lot like it's retail strategy, we want to be in everything, where some of the competitors are being a little bit more focused about saying well rather than just being a generic service that covers everything, we're gonna focus on particular areas that we think have enough value in that for it to be worth that time. >> Okay I wanna ask you guys a question about value creation, entrepreneurial, the startups, companies that are trying to go, you kind of see, certainly in Silicon Valley, where I live, startups are getting pummeled, if they were born before 2012, they're really going.6.. they try to go big but they're mostly going home. Barracuda Networks just announced this week that they're gonna go private, private equity's squabbling up all these companies that have pretty good sizeable funding, 100 million dollar invests from Andressen Horowitz, Graylog, Sequoia, big names, folding tent and being acquired which is code words for we can't got public and even big public companies that don't have a Cloud player, kind of retooling. So the question is, are we at a point now where scale and speed of the game is causing some havoc in the market place. >> Well look no further than what's going on in Europe now, the Cube is at HPE reInvent. HPE's discover in Europe and HPE is a completely different company than it was three years ago as a direct result of what Amazon has done in the Cloud space and gobbling up all of these smaller accounts and new opportunity. You mentioned it earlier, HPE is still HPE, HPE is gonna get that interview or session with the CIO, Meg makes the call, someones going to pick up the line. >> Now Antonio >> Yeah, now Antonio But AWS has been changing that story, impacting and taking the air out. HPE chose a interesting approach, get smaller, become more agile, Dell chose the opposite route of getting bigger to compete, we'll see which one plays out, in the meantime 18 billion dollar run rate and no sign of slowing down. >> 18 billion dollar run rate with 40% growth on that bassline is pretty significant, I think they might even be doing better than that next quarter but that speaks to the traction, it's not just startups, those numbers aren't just startups. Airbnb is a big company now but they started out small. We use Amazon, a lot of people use Amazon, they're winning big enterprise deals, why? What do you guys think, what's the reason why? >> You know what... Go a little bit intuitive here, look at VMware on AWS, I've been kind of critical of that solution but it is a easy win, if VMware made the exact same announcement on IBM, the year before at VM world... the Fortune 500's I talk to don't consider that Cloud, the exact same solution and AWS is Cloud, that's the Cloud check box. AWS, they do a much better job at controlling their brand Kleenex but they are the Kleenex, they are the Xerox of Cloud, you don't have Cloud unless you have AWS from a enterprise perspective, that's what Azure, Google Compute, and all the other Cloud providers have to compete against >> First of all those guys are incomplete in their Cloud and that's just on a feature by feature basis, I do agree it's kind of like Outlook or Word, I like Outlook because it's more bloated than Word and less useful but my point is, that's the name of the game, getting functional value creation. So final question for you guys is, as we look at reInvent this week obviously I looked at the industry day yesterday and the board, a lot of Alexa repeats. So you can see what sessions are repeating so that's a indicator of popularity so Alexa's got traction, serverless with Lambda. What do you guys see as the big, so far, early show buzz? >> I'm hearing a lot about containers, containers and like you say, things like Lambda and Alexa, anything that has AI machine learning in it, that's very hot at the moment whether or not it's just hype and the bubble on that will pop in a few years, I personally think that that is mostly hype and hot air but it'll settle down and there'll be some real value in there. That's where I'm seeing the noise. >> So over at the RA, they have the container kind of show, it's a show within a show and I'm hearing similarities with containers but not just containers, to your point, serverless, it was a term that we struggled with a couple years ago, now it's generally accepted, you know what, I can just write code and that code can be executed without regard to infrastructure operations. That has proved to be insanely popular right now. >> Okay final question, I'll start it, we're gonna end this on this last segment, I know I wanna get one more in, that's the buzz. I wanna ask you guys, what tea leaves are you reading, what signals are you looking for? Because remember Amazon is very scripted up right now, you can see them on message, I'm trying to poke holes, and which tea leaves, smelling it, putting my ear, ear to the ground, think about that question, my view is, I'm looking at, is this developer trend a cultural shift and to what extent is that developer traction in terms of mind share and love of the brand, Kleenex, the Cloud, the real Cloud, and how much will that tip the CXO conversation. Where's that power shift? So me, I'm trying to read what the tea leaves are saying, if this developer tipping point happens at this scale, developers could really be in the drivers seat. Not just oh developers are in charge, I'm talking about really making the decisions on all big deployments, that's my tea leaf read. What are you looking at? >> So I'm talking to a lot of vendors, their number one reason for being at AWS, when I say vendors, vendors that we see at traditional infrastructure shows, they're here to talk to new audiences, to that developer audience that you mentioned and what I want to know from them, more than just interest, do these developers have money? One of those challenges that all of these Cloudy type companies have faced is that the developers fall in love with them, Docker is a great example, developers fell in love with Docker, millions of downloads. However that doesn't translate to POs and purchases, do these guys actually have the buying power to see through that initial contact all the way to the sale of the solution. >> Influence the buying decisions and IT, thoughts? >> You made the same comment I think earlier about 2008 VM world, it has a very similar vibe to me here, I'm seeing that this is now the crossover between where it was developers, where it was all hoodies and tracksuits and pink hair, I'm seeing a lot of suits, seeing a lot of money floating around this conference, so I'm starting to think that this is the point where AWS is starting its transition from being the new guard to the old guard, they would love to be IBM, IBM made a lot of money. >> Turning into an old guard is very good financially >> It makes you a lot of money. So I'm looking to see where on that transition are we and how long can AWS maintain that momentum of being a new guard company. >> If they can hold the line on new guard they win everything as long as they could in my opinion. Alright, I'm John Furrier here with Justin Moore and Keith Townsend kicking off the first day of three days of wall to wall coverage here at AWS reInvent, stay tuned for more analysis opinion, commentary, of course go to SiliconANGLE.com for all the exclusive interviews with Andy Jassy and all the top executives of Amazon. We'll be back with more after this short break. (slow futuristic music)