>>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.

>>Hello, I'm CR howdy shell president at advisors, uh, excited to be participating in GreenLake day Han joined by valued long-term 15 year customer Srini Vanga he's vice president information technology at wr grace and company Srini. Thanks for joining me today, especially in light of the $570 million acquisition completed yesterday. Congratulations on that. And can you tell us a little bit about yourself, your organization, and a bit about the relationship you've had with advising? >>Sure. Uh, thank you, Sierra, let me start with grace. Grace is a $2 billion global specialty chemical manufacturing company. It's got two main business segments, catalyst technologies and materials technologies. Our FCC catalyst technologies help our petrochemical refining customers in producing, uh, mainly transportation fuel and petrochemical feedstock. So, and our materials technology business delivers silica based materials to our customers to improve their products and processes in, uh, segments like coatings, uh, consumer industrial and, uh, pharma businesses. Um, as a CRE, as you just mentioned, uh, we recently closed it in acquisition and acquired the fine chemicals business of, uh, Alvamar, which will increase our business share of a pharma business. So coming back to me, um, uh, regarding myself, I've been with the grays for 22 years. It's been a long time guys. So I I've been mainly in the SAP technology area and took over the role of the, uh, Weiss president and head of it for years back. Um, and I've been working with the advisors for almost 15 years now, and it's been an excellent strategic partnerships. >>Well, thank you. And we definitely appreciate the business and, uh, the relationship. So, uh, we'll, we'll move on to the next question. So what are, what are the most important factors for you to be successful in the business? Obviously, growth is going to be key with what you just, just accomplished with the acquisition, but, uh, one of the most important factors for you to be successful >>Since, uh, since grace is a specialty chemical manufacturing company, uh, it's very important for us to understand and, uh, sometimes even anticipate, uh, uh, exact customer requirements and then, uh, quickly create that a special material which helps improve our customer's products and processes. That's the most important thing for us. Um, the company depends on me and my team, uh, to provide value to our business and, uh, helping them make decisions quicker and in real time and, uh, adaptable, uh, to the ever changing market, the business niche this year. So that's the most important factor. >>Great. It is obviously playing a, a bigger role as, as you mean. Good. So what are some of the most, I don't like to use the word pain points, but I'll call them business challenges, you know, in your industry. >>Um, so building on my previous point, right? So chemical manufacturing is not new and it has a wall or the years and, and with numerous mergers and acquisitions along the way, uh, the systems and processes are not always, uh, harmonized are standardized. So keeping it moving together and in the same direction has, uh, has always been a challenge, right? And, and added to that COVID has affected most of the sector. And, uh, and our under our industry is no exception, especially in the refining sector. Uh, we need to be able to provide, uh, rapid customization to our customers, uh, which means our business, uh, which needs a flexible computing power, uh, to process and analyze huge amounts of these, the material properties data, and, and allow them to come up with products, uh, back to, we can go to market faster than our competitors. Yeah. >>Right. Got it. And obviously that's key, you touched on this briefly, but I'd really like to hear more about how your business has changed in the last year. You mentioned COVID so love to hear how things have changed and what you can share >>So specifically about COVID right. So about 50% of our employees have been working remotely since March of last year. Um, unless unlike other industries, uh, we cannot go a hundred percent remote, uh, because we have chemical plants to run and chemical labs to operate. So we'll always be at this 50%. So technology has enabled us to do that. We have done a lot of things remotely, which we never thought possible. Um, um, we did work two on factory visits for our pharma customers, our remote plant startup for our poly properly in, uh, uh, customers. Um, and also did virtual, um, annual customer conferences. Uh, in the end, some of this will go back to pre COVID days, but most of this is going to stay and stay here for good. >>Well, congratulations on that, because I think the whole working remote, I think we're all seeing the challenges, but obviously it looks like you've seized the challenge and it's going to be more of a business as usual going forward. Yeah. Well, congratulations. That's key obviously to the business also going forward and with that, with a hybrid model, I mean, many customers, the hybrid clouds with journey, will you share with us at wr grace and company journey for the hybrid cloud? >>Sure. So, yeah. Um, when I took over this role, uh, four years back, uh, I made a decision that I no longer want to be in this data center business. Uh, we need to focus on our core strength and core competencies as a chemical company. And, uh, I wanted it to be spending more time helping our, our business, uh, manufactured and sell our products safely and efficiently. So working with our strategic partner, uh, advisors and HPE, we moved ahead with, uh, with GreenLake, which just solved mainly my problem of this, uh, getting out of the data center business. Uh, we now have a private on-prem cloud solution that is elastic fully scalable and is, uh, based on the consumption model based model, right? So that's very similar to what these hyperscale cloud providers have. And I love it. This, the consumption based model is what, what is great about the GreenLake that I have signed up, um, with, with GreenLake, I can, uh, scale up quickly and I will, I can grow as my business needs grow. And, um, it makes, it makes this a perfect cloud solution for grace. >>That's great to hear it, especially since we are a big part of, and I'd have to agree, you know, with, with the words, getting out of the data center business, we're hearing it more and more as we, as we hear meet with more customers. So, and with that in a hybrid model, there are a lot of decisions to be made on what goes into public cloud. What should, what should remain on prem. And obviously this is a decision you had to make. This can be crucial when it comes down to business critical applications. How did you and your team approached this when you were looking at, at your SAP environment? >>Great question to CR, but for me, the answer is simple. Uh, as I told you previously, like I did not want to be in the business of data center. I also did not want to be in the business of developing custom applications. We retired most of our custom built applications in, uh, procurement sales, HR, and replaced them with the SAS providers like Ariba conquer Salesforce and success factors, which are all hosted in the cloud. Uh, these companies, uh, spend billions of dollars in R and D and come up with solutions that are state of the art in this, uh, in these processes that I talked to you about. Right? So, so unless I have a special need, which I don't in the finance procurement and HR, I don't need this custom built applications, which is the reason I went to these SAS based applications. All of which are hosted in the cloud. >>That leaves me with, uh, my mission critical application, which is SAP and there's peripherals, right. For business reasons. I wanted this on-prem. Um, so I chose the HPE GreenLake, uh, to host this on-prem in my own data center at, at our headquarters in Columbia, Maryland, but with the Dr. Capability in the cloud. Um, so that I don't have to have a colo facility, which I have right now from IDR. So I use both on-prem and cloud hybrid cloud for myself, uh, for, for grace. So I have very few custom built applications on prem. Um, and as these become more standardized, I certainly look at taking them to the cloud or even keeping them on prem. Um, so we wanted that inherent flexibility. So yeah, that's the reason we went to this model. >>That's great. Cause that leads in right into the next question I had for you many customers in this past year, they're all looking for the flexibility, right. And how important it is. Can you share with us the value you see from HPE GreenLake and, and how that provided flexibility for wr grace and company specifically to workloads that can easily scale up or down? >>The main thing that helped me make the decision for GreenLake is the GreenLake is sized with this 20% buffer that we can scale to in minutes, um, that would usually take a weeks or even months to deploy. We know how that power and the flexibility in mere minutes, uh, when not when our business comes to us with a new requirement, either for a new applications or new data analytics capability that needs computing power, I don't have to wait for two or three months to give them that capability. So I, it can be done right away with this 20% of flexibility. >>That's great. And agreed. So this is a newer question with, with the event of your, um, acquisition, how do you see that added flexibility when you're looking to integrate a new company, >>This, this is an exact, you, you hit it on the head, uh, CR that's true. If I were to, if I had to bring this on with this additional computing power, I would have had to place an order, wait for the codes, come back and do all that with this 30%, I can easily fit in a new acquisition. >>Well, that's great. And that, that, that really helps for the short and long run. I'm sure that helps the business. Yes. So last two questions really is. Can you talk about what really stood out for advisors with advice, et cetera, about advisors, you know, basically why advise X and what will you saw the benefit of working with us >>Advisor? you have a great team CR so, so I've been, I've been, I mean, I've been working with, I told you write for 15 years and, um, I've been working with the same account manager for most of these years and the team as well. Right? So, so the account manager and the team knows how I, and what I expect of the team, right. So I can call them 24, seven anytime day or night. And they, they always pick up my phone and assist me in that time of the need. That's the most important thing. That's the reason that I I've been working with adviser, extended advice, Excel always proposed good solutions to me, either with HP or with other vendors, I can always trust them. Um, we have developed a strong strategic relationship. And, um, more importantly, like I told you that there is this trust that is difficult to find, and, um, it has continued to endure. Um, and, um, I deal with a lot of it vendors and I can confidently say that advisors X is at the top of the list from the customer service perspectives here. >>Well, thank you. And listen, that means a lot. I know we've had some bumps, we, and I've been on the phone for some, some of the tougher times, but, you know, you get through those to the, to the good times like now, and, uh, really, really excited about what we're doing with GreenLake. So, and, and most importantly, appreciate that relationship. And I'm sure our on Akuna is going to love the fact that you mentioned the relationship. So thank you for that. You know, finally, you know, any, any parting words of wisdom, brother, customers, as they consider HPE GreenLake, >>Um, like a standard earlier, uh, you must ask yourself, do you really want to be in this data center business, uh, ask yourself what your core businesses and what your core competencies are and focus your business acumen to deliver those that value to your business. Um, I'm sure he will come to the same conclusion as we did, um, and take a good look at GreenLake fund itself, flexibility. Um, you be very pleased and happy with the value the solution provides to your business. >>I would have to agree and what we're seeing with the best of breed solutions you can bring forward with GreenLake. Uh, we're excited about it too. And look forward to doing more work with you and customers like wr grace and company. I just want to say thank you for the time as importantly, thank you for the business. Really do appreciate it and appreciate the, uh, the kind words. Thanks, and, uh, have a great day. >>Thank you. See ya.

(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)

>>From around the globe. It's the cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS, and our community partners. >>Hello, everyone. Welcome back to the cubes. Virtual coverage of AWS reinvent 2020 it's virtual this year because of the pandemic. We're not there in person and in real life, we're remote. I'm John for a year hosting the cube or the cube virtual. Um, as we continue to cover the three weeks of AWS reinvent and analyze the keynotes, we bring it in, uh, from our Cuban alumni, uh, network experts. And we have here great guest, Steve Malaney, CEO of Ava Trex, industry executive legend, former entrepreneur had done startups, um, been very, very successful with luminary and Silicon Valley, um, Palo Alto networks and the Sierra Cisco, I me, all the companies you've worked for. Um, Steve, great to see you again. >>Oh yeah. Hey awesome. Even if it's just virtual, John's great to be back in the cube. >>Okay, Steve, what's up? Am I muted? I got you. Okay. >>Gotcha. Oh, okay. I just said it's great. They're great to be back in the cube. >>I had to shut up my volume, got to love live cube TV. Um, I wanted to bring you on, because one, we've been talking with you guys and your company that you're now heading. You came off the board to take the helm of Ava tricks. You really saw the vision early on before the pandemic. We were actually, we did a hybrid event with you guys, a digital hybrid and your vision of multi-cloud and hybrid was pretty much in line with what Andy Jassy. And Amazon's now rolling out, except they're not calling it. Multi-cloud, they're just saying hybrid. But when you factor in the edge, the complexity there, you're really talking multiple environments. So I want to get your take, as you look at what Amazon has done in their announcements, they're continuing to power long. What's your analysis. What's your industry take? >>Yeah, I, I think it's, uh, you know, I think it's great. I think, you know, when we were a year ago, it was just a little over a year ago, we were at a multi-cloud conference and I think people kind of thought, wow, is multicloud something that the vendors are wanting to happen because they don't want to be killed by AWS. And you know, I mean, I saw this two years ago, I call it the Cambridge and explosion to cloud where every enterprise to we are now going to move to cloud. And they had been talking about it for six or seven years, but they didn't really mean it. And two years ago I saw they meant it and I knew what was going to happen. It was going to go multi-cloud they we're going to care about day two operations, visibility, control, security, all the things that enterprises care about. And I think, um, you know, what we've seen really over the last year is AWS and all the other cloud providers recognizing this, that the world is going multicloud. Um, and day two operations matter. You've gotta be able to operationalize this and enterprises. Can't just, it's not just about wiring it and building it up. You got do, you can operate it. And so that's, I think the thing that's really interesting is the maturity of the messaging. I would say from AWS to recognize, um, where enterprises are in their journey. >>You know, Steve, I want to just reflect on something. When I was 19 years old in my first job, uh, in New York, it was on a prime mini computer, my first exposure to the enterprise office and then went and worked for IBM and HP and others. I've been in the, around the enterprise. Let me just go back 10 years in Silicon Valley, you could literally count on one or two hands. The number of enterprise experts out there that you knew of that were out circulating that weren't retired. Um, because it went through this kind of commodity stage of outsource everything kind of down to the bone, you know, just keeping the lights on there. Wasn't really a lot of innovation in the enterprise. Now it's the hottest thing in the world. And you, and you look at what's happening with cloud. They're redefining the enterprise in Andy Jassy said to me, and I'm going to interview him, uh, later this week. And you know, he said, we're done with eyes and pads. We checked that's anything. I say anyone, but he's kind of implying that we did. I, as in pass, we're targeting global it. >>Yeah. Well, you know, >>Now enterprise is super hot and you know, it's, it's a whole nother ball game to restructuring on G >>Yeah, I mean, so I, uh, the AWS is marketing slogan, Mark. My words I'll bet you a hundred bucks within the next year is going to change. They are not going to say go build anymore. Right? Because that's what they're going to say. Go consume because no enterprise wants to build and Oh, by the way, here's the other thing that they're now also figuring out. Cause I know Andy Jassy analysis, there's a skills shortage of cloud, so they don't have the skills at the aptitude, but there's also a people shortage. It's not just the skills, it's the amount of people. They don't have the ability to go deploy this. And they're going to, you're going to need solutions like ABA tricks, abstract the way a lot of the complexities of the underlying clouds and deliver this architecture for people to be able to actually deploy. >>Where is the skill gaps in your opinion, where do you see them? >>You know, I was just talking to a customer yesterday and he said most of my, most of my team are CLI jockeys. And so for networking, that means the CLI the command line interface that a human manipulates to control the Cisco router. That's the old operational model. The model of this, these days are Terraform. You're going to infrastructure is code everything. You need scriptures. You need, you need developers that are going to be driving your infrastructure. And, and, but I can't, I can't fire all these people that I've had in my enterprise for the last 30 years. I got to bring them along. I got to bring them along and the tools and the platforms to be able to go, to go do that. >>Andy's argument and Amazon's position is we eliminate the undifferentiated heavy lifting and we have all this training and content to bring everyone along. Okay. By that. >>Well, I mean, here's, here's the thing that I think AWS and all the, all the cloud providers are figuring out is the enterprise is a different beast. You know, when you go to a company as AWS and say, Hey, you can get it as long as it's any color you want, as long as it's black. And so guess what, I'm a service. And the beautiful thing is you don't need to know anything about how we do anything and just trust me, it's all going to work that does not go over well with an enterprise because they say, I'm the guy that needs to know I will get fired. If this infrastructure goes down, you know, you saw us East one go down two weeks ago, Google had a outage to two days ago or whatever it was, shit happens. I don't know if I can say that on the cube. >>We're not going to actually see regulated at this point, but who's going to know. >>Um, and you know what? I've got to have that visibility in controls and enterprise, and I need the granular controls and the visibility to troubleshoot and the security controls and the performance controls that I used to have on prem, because I'm a regulated enterprise. I need that visibility and control. And the cloud providers just say, look, I deliver a service and I deliver it to everybody. And it's the same service. And you don't need to know that does not fly with the >>Well, certainly you're seeing more regulated industries. It used to be just public sector. I just talked with Teresa Carlson. She now took over all the industries. So FinTech is regulated. Energy is regulated. Telecom's regulated. The only thing that's not regulated is a VC and startup sectors, right? So there's a >>Well, and, and, and every, every good CIO of an enterprise knows nothing good comes from your, from your infrastructure that gets outsourced. We tried that it doesn't work. Now, maybe in 20 years, I can outsource my infrastructure if I'm the CIO of a major enterprise corporation. But right now I am not outsourcing that I have to have control. Now, am I going to leverage services and basic infrastructure from the cloud providers? Absolutely. I'm not going to build it on my own data centers. That world is over, but what I'm going to maintain is the visibility and control. >>Yeah. And that's what we heard from Verner. Vogel's around observability systems, thinking control versus observability, um, evolvable systems, things like reasoning, um, you know, these are, these are innovations, right? So, so let's get back to that builders thing, because you mentioned that earlier, I think there might be an opportunity. And I think this is where I think Jassy will either look brilliant or it might not pan out. So go big or go home moment. Can Amazon create a market for companies to say, instead of bringing along everybody, I'm going to bring along some people and hire more builders because there's rewards as spoils to be had for those builders. At this point in time, given the pandemic, it's kind of put everything on full display in terms of what to do. What's your thoughts on that? >>I think, I think outside in meaning I, I look at the customer and I, and I sit at the same side of the table as a customer. I think, what did they want? And every enterprise customer right now is building out their PRI it's just like in 1992, when they built out their private infrastructures, global infrastructure, and they did it with on-prem and data centers. I bought my stories, my compute, my networking, my MPLS, and I built my infrastructure. And it was my infrastructure. They're doing the same thing. It's just, they're architecting on top of cloud and they're doing it in a multi-cloud world because they're not going to be locked in to just one cloud. And they're going to have some applications that run better on GCP. Some have better in AWS and some on Oracle, and all of our customers are doing this. And what they want though, is a common infrastructure. That's their architecture and their infrastructure, not an AWS architecture and a Google architecture and an Azure architecture. What architecture, abstracted away above the clouds. That's my architecture. And it's common for my global network that that's what enterprises want to do. And I think each of the individual clouds are going to have to understand that they are a piece of the puzzle. They are not the puzzle. And I think you're going to have to come to that realization. >>I appreciate your expertise and insight into the commentary real quick, last 30 seconds, give a quick plug for Ava tricks. What are you guys doing? What's new cause the quick update. >>I mean, it's, it's, it's crazy just since, uh, I've been the CEO for two years and you know, the, the logos of large enterprise that we're getting right now. My, my Cambrian explosion that I saw two years ago is real, um, more executing on that strategy. It's a, who's who of logos right now. We've got 450 customers now we're, uh, exploding and more importantly, enterprises are now getting that deployment phase. They have, they're done with the architecture phase of, Hey, let me check this whole thing out in cloud. And now they're pushing the button and they're, they're accelerating, which my guess is it's not a coincidence that AWS is now talking about operations. And what Aviatrix does is, is, is, does gives that visibility and control cloud networking, but in a very cloud native way with Terraform simplicity, agility, because agility is part of mission critical infrastructure. Now can't be like it was in 1994 with a Cisco infrastructure where it said, what year do you want your, your, your infrastructure, Mr. Customer? >>Great. And the biggest thing people should pay attention to this year, uh, for around the enterprise dynamics with cloud and scale what's what should people be watching >>In your opinion? Just the continued movement of big enterprises, uh, all into cloud. The center of gravity is now into cloud and, uh, they're going to be completely running away from everything on prem. >>All right. Steven Landy, CEO of VBA tricks, a proven success entrepreneur CEO, back in the two years of the helm, the VBA tricks. Great to see you. I wish we were in person. One of our last events was your altitude event. It's on YouTube. If anyone was interested in watching, we had a great time. Steve, thank you so much for your candid commentary. Yeah. Thanks, John. Okay. I'm Jennifer with the cube. You're watching the cube virtual here on the cube. Thanks for watching..

(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)

>>Hello, everyone. This is not appropriate to lapse of America. I'm going to talk about the motivation. For zero knowledge goes back to the heart off, winding down identity, ownership, community and control. Much of photography exists today to support control communications among individuals in the one world. We also consider devices as extensions of individuals and corporations as communities. Here's hoping you're not fit in this picture. What defines the boundary off an individual is the ability to hold a secret with maybe, it says, attached to the ownership. Off some ethic, we want the ability to use the secret to prove ownership of this asset. However, giving up the secret itself essentially announced ownership since then, anybody else can do the same. Dear Knowledge gives us tools to prove ownership without revealing the secret. The notion of proving ownership off a digital object without revealing it sounds very paradoxical outside the model off. So it gives us a surprise when this motion was formalized and constructed by Goldwasser Miccoli and back off in the late eighties, we'll focus on the non interactive >>version of Siri, a knowledge our music in the >>stock, which was first developed by blow Tillman and Peggy, where the general it can span multiple rounds of communications music only allows a single message to be trusted. No, let's get into some technical details for musics. The objective of for music is to show that an object X, which you can think off as the public footprint, often asset, belonging clan and the language without revealing its witness. W, which you can think off as the Future Analytics team consists off three algorithms, video proof and very. The key generation process is executed by a trusted third party and the very opposite, resulting in a common >>random string, or steers, which is made public. The >>true vendor produces a proof by based on the CIA's X and the very fine with the checks. The proof against X and accepts or rejects music off course has to satisfy some properties. We needed to be correct, which basically says that when everyone follows the protocol correctly on, so we can expect, we need to be thought, which says that a false statement cannot be proven. The channel is a trickier properly to form this. How do we capture the intuition behind saying that the proof there is no knowledge of the witness. One way to capture that is to imagine their tools is the real world where the proof is calculated. Using the witness on there's a simulation worth where the proof is calculated without a witness. To make this possible, the simulator may have some extra information about the CIA's, which is independent off the objectives. The property then requires that it is not possible to effectively distinguish these words Now. It is especially challenging to construct music's compared to encryption signature schemes, in particular in signature schemes. The analog off the Hoover can use a secret, and in any case, the analog off the very fire can use a secret. But in is it's none of the crew layer and the verifier can hold a secret. Yeah, in this talk, I'm going to focus on linear subspace languages. This class is the basis of hardness. >>Assumptions like GH and deliver >>on has proved extremely useful in crypto constructions. This is how we express DD it and dealing as linear software. We will use additive notation on express the spirit logs as the near group actions on coop elements. You think the syntax we can write down Deitch on dealing Jupiter's very naturally a zoo witness sector times a constant electric so we can view the language as being penetrated by a constant language. Metrics really was hard by many groups in our instructions. What does it mean? S while uh, Standard group allows traditions and explain it off by in your group also allows one modification In such groups, we can state various in yourself facing elections. The DDN is the simplest one. It assumes that sampling a one dimensional space is indistinguishable from something full professional. The decisional linear assumption assumes the theme from tours is three dimensional spaces generalizing the sequence of Presumptions. The scaling the resumption asks to distinguish between gay damaged examples and full it and >>examples from a K plus one national space. >>Right, So I came up with a breakthrough. Is the construction in Europe 2008 in particular? There? Music for many years Off Spaces was the first efficient >>construction based on idiots and gear. Structurally, >>it consisted of two parts Our commitment to the witness Andre question proof part and going how the witness actually corresponds to the object. The number of elements in the proof is linear in the number >>of witnesses on the number of elements in the object. >>The question remains to build even shorter visits. The Sierras itself seemed to provide some scoop Rosa Russo fix. See how that works for an entire class of languages? Maybe there's a way to increase proof efficiency on the cost of having had Taylor Sierra's for each year. This is what motivates quality and after six, where we let the solace depend on the language itself. In particular, we didn't require the discrete logs of the language constants to generate this, Yes, but we did require this constant student generated from witness sample distributions. This still turns out to be sufficient for many applications. The construction achieved a perfect knowledge, which was universally in the sense that the simulator was independent. However, soundness is competition. So here's how the construction differed from roots high at a very high level, the language constants are embedded into the CIA s in such a way that the object functions as it's only so we end up not needing any separate commitment in the perfect sense. Our particular construction also needed fewer elements in the question proof, as there On the flip side, the CIA's blows up quadratic instead of constant. Let's get into the detail construction, which is actually present with this script. Let the language apparently trace by Giovanni tricks with the witness changing over time, we sat down and matrices >>D and B with appropriate damages. >>Then we construct the public series into what C. S. D is meant to be used. By the way. On it is constructed by >>multiplying the language matrix with D and being worse, Sierra's V is the part that is meant to be used by the very fair, and it is constructed using details be on be embedded in teaching. >>Now let's say you're asked to computer proof for a candidate X with fitness number we computed simply as a product of the witness with CSP. The verification of the truth is simply taking with the pairing off the candidate and the proof with the Sierras. Seeming threats is equal to zero. If you look carefully. Sierra's V essentially embedded in G to the kernel of the Matrix, owned by the language metrics here and so to speak. This is what is responsible for the correctness. The zero knowledge property is also straightforward, >>given the trapdoor matrices, D and B. Now, >>when corrected journalism relatively simple to prove proving illnesses strictly The central observation is that, given CSP, there is still enough entropy. >>India and me to >>random I seriously in particular Sierra's we Can we expand it to have an additional component with a random sample from the kernel allows it. This transformation is purely statistical. No, we essentially invented idiots are killing their talent in the era of kernel part in this transform sitting within show that an alleged proof on a bad candidate and we used to distinguish whether a subspace sample was used for a full space >>sample was used at the challenge. The need >>to have the kernel of the language in this city. That's the technical >>reason why we need the language to come from a witness. Sample. >>Uh, let's give a simple illustration >>of the system on a standard Diffie Hellman, which g one with the hardness assumption being idiot. >>So the language is defined by G one elements small D, E and F, with pupils off the phone due to the W. After that ugly, the CIA is is generated as follows example D and >>B from random on Compute Sierra speak as due to the day after the being verse and Sierra's V as G to do to do the big on day two of the video. The >>proof of the pupil >>detail that I do after the bill is computed using W. As Sierra Speed race to the party. I know that this is just a single element in the group. The verification is done by bearing the Cooper and the proof with the Sierras VMS and then checking in quality. The >>similar can easily compute the proof using trapdoors demand without knowing that what we are expecting. People leave a Peter's die and reduce the roof size, the constant under a given independent of the number of witnesses and object dimensions. Finally, at Cryptocurrency 14 we optimize the proof toe, one group >>element under the idiots. In both the works, the theorists was reduced to linear sites. The >>number of bearings needed for ratification was also industry in years. This is the crypto Ford in construction in action, the construction skeleton remains more or less the famous VR turkey. But the core observation was that many of the Sierras elements could were anomaly. Comite. While still >>maintaining some of this, these extra random items are depicted in red in this side. >>This round of combination of the Sierras elements resulted in a reduction of boat, Bruce says, as also the number of clearings required for education in Europe in 2015 kills, and we came up with a beautiful >>interpretation of skill sets based on the concept of small predictive hash functions. >>This slide is oversimplified but illustrated, wanting, uh, this system has four collecting >>puzzle pieces. The goodness of the language metrics okay again and a key Haider when >>the hidden version of the key is given publicly in the Sears. Now, when we have a good object, the pieces fit together nicely into detectable. However, when we have a bad object, the pieces no longer fit and it becomes >>infeasible to come up with convincing. Zero knowledge is demonstrable by giving the key to the simulator on observing that the key is independent of the language metrics. >>Through the years, we have extended >>enhanced not mind to be six system, especially with our collaborators, Masayuki Abby Koko Jr. Born on U. >>N. Based on your visits, we were able to construct very efficient, identity based encryption structure, resulting signatures >>public verifiable CCS, secure encryption, nine signatures, group signatures, authorities, key extremes and so on. >>It has also been gratifying to see the community make leaps and bounces ideas and also use queuing visits in practical limits. Before finishing off, I wanted to talk to you a little bit about >>some exciting activities going on Hyper ledger, which is relevant for photographers. Hyper >>Leisure is an open source community for enterprise. Great. It's hosted by the minute formation on enjoys participation from numerous industry groups. Uh, so difficult funded to efforts in Africa, we have versa, which is poised to be the crypto home for all. Blocking it and practice a platform for prospecting transactions are part of the legs on the slide here, >>we would love participation from entity inference. So >>that was a brief history of your analytics. Thanks for giving me the opportunity. And thanks for listening

>>From the cube studios in Palo Alto in Boston. It's the cube covering, empowering the autonomous enterprise brought to you by Oracle consulting. >>Hi buddy. Welcome back. You're watching the queue. We go out to the events, we extract the signal from the noise. This is a very special digital event and we're really covering the transformation, not only the industry but the transformation of Oracle consulting and its rebirth. Mike Owens is here, group VP of cloud advisory and GM of Oracle elevate, which is a partnership that Oracle alone announced last OpenWorld with Deloitte and Don Schmitt and Sierra was a managing director, but to like Jen. Good to see you. Welcome. Good to be here today. So Don want to start with you. A transformation, right? Everybody talks about that. Uh, there's a lot of trends going on in the industry. What do you guys see as the big gestalt transformation that's going on? >>Yeah, I think there's an inflection point right now, right? Everybody has been saying they want to get out of their data centers. Um, the leaps haven't really been taken place, right? They've been kind of moving in small bets. We're now at the point where large transformation at scale of getting out of your data centers is now here. So we are here to try to help our clients move faster. How can we do this more effectively, cost efficiently and get them out of these data centers so they can move on with their day to day business. >>So data center is just not an efficient use of capital for your, for your customers. >>No, no. There's lots of ways to do this all at faster, cheaper, um, and get onto innovation. Spend your money there, not on hardware floor space, power, cooling, >>two very well known brands you guys got together. So what was the sort of impetus to get together? How's it going? Give us the update on, on that front. >>Oracle has been really technology focused. It was really created by technologist, right? And back to the point of what you're trying to do with the cloud and you're trying to do larger transformation. Those aren't some of the skills that we have. We've been bringing in some of those skills in DNA. But if you look at it as why would you try to recreate this situation? Why would you not partner with an organization who does large business transformation like a Deloitte? Right? And so the impetus of that is how do we take the technology with the business transformation, pull that together and back with the one plus one equals three for my customer, right? That's what they really want. So how do we actually scale that into really big things and get big outcomes for our customers? Our partnership is not about trying to take a bunch of customers and move on a couple application workloads. Our job we're really charted to do is really make huge transformational leaps for our customers using the combined capabilities of the two organizations. So there's, it's a huge paradigm for us to kind of do this and I, and our collaboration with two organizations, just the opposite for what Mike just said, right? So delight wasn't really big in big it, right? Business led transformation is kind of what Deloitte has been known for right along with our cyber practice. And so we needed the deep skills of the technical experts. >>So you just described what I would think of is wave one and then as you keep peeling, you got the applications, you got the business process, you might have, you know, reorganizations. That's really what do you guys have expertise. >>There's a lot of things I have to sort through. Right? And that's where the combined, um, elevate program really synergizes itself around the tools that we have. We both have tools or help make sure we get this right. Right. Uh, Deloitte has a product called added data. Oracle has a product called soar. They marry together properly into these transformational journey to make sure we get the discovery done right and we get the migration's done right. >>Take me through a typical engagement, typical, I know quotes and then how long, like take me through the point at which you get start to get business value. What am I going to do to get there? Yeah. >>So we see two different spectrums on, on a transformation and it really aligns to what are your objectives, objectives? Do you just need to get out of the data center because you're on her kick dine hardware or do you want to take that, take your time and make a little bit more of a transformation journey? Or do you want to play somewhere in the middle of that spectrum? Um, but yeah, on either one of those we'll come in and we'll do a discovery conversation. We'll understand what's in your data center, understand what the, the age or the health of your, your data center is helping the customers through a business case, a TCO, how fast or how slow that journey needs to be for them. Create what we call wave groups of how fast in we're going to sequence those over time to get out of their data center. >>In parallel we're going to be doing as was Microsoft around all the operational aspects. So while we're doing that discovery, we want to start standing up their cloud, uh, center of excellence. Getting caught operations into the organization is, uh, it's a, it's a different skill set for it to have, right? They are going to need to retrain themselves, retool themselves in the world of cloud. So we kind of do that in parallel. And then what we want to do is when we start a project, we want to start with a little POC or small little group of safe applications that we can prove out the model works, move those into the cloud. And then what we want to do is we want to scale that it at it's large pace, right? Um, let's get the it savings, get the cost cuts out of the, uh, organization. It was, so under the program of elevate, we've, we've got a couple of campaigns. So the, the biggest one we we've been talking about is around the data center transformation. So that's kind of the first campaign that we're working on together. Um, the next one is around moving JD Edwards, um, specific applications to, uh, to Oracle's cloud. And then the third one is around our analytics offering that Deloitte has and how we're going to market to, to genera. Put that in as well. Those are our three major campaigns, >>the JDE migration. Um, so you've got what situations where people have just, >>yeah, and I would say it's actually more of a JDE modernization or Hey, so you have an organization, right? They may have a JD at J D or J D J D Edwards instance. That's really, it's older. They maybe version nine or something like that. They don't want to go all the way to SAS cause they can't simplify the business processes. They need to do that. But they also want to take advantage of the higher level capabilities of cloud computing, right? IOT, mobile, et cetera. Right. So as a modernization, one of the things we're doing is an approach it together. We work with customers depending on where they're go and going, Hey great. You can actually modernize by taking it to this version of JDE through an upgrade process. But that allows you to then to move it over to Oracle cloud infrastructure, which allows you to actually tap into all those platform services, the IOT and stuff like that to take to the next level. Then you can actually do the higher level analytics that sits on top of that. So it's really a journey where the customer wants to get, there's various kind of four major phases that we can do or entry points with a customer on the JDE modernization. We kind of work them through. So that's a skill of some of the capabilities that Deloitte has as a deep JDE. Um, and as well as Oracle consulting. Um, and we actually are going to market that together. Matter of fact, we're even at conferences together talking about our approaches here >>and the analytics, uh, campaign. So it seems to me that a lot of companies don't have their data driven. You know, they, they want to be data-driven, but they're not, you're not there yet. And so their data is in silos. And so I would imagine that that's all about helping them understand where the data is breaking down, busting down those silos, and then actually putting in sort of a, an analytics approach that, that drives their drivers from data to insights. Is that fair? >>Yeah. Fair. Yeah. It's not just doing reporting and dashboards. It's, it's actually having KPI driven insights into their information and their data within their organizations. And so the Deloitte has some pre-configured, uh, applications, uh, for, uh, HR, finance and supply chain >>six guys, two powerhouses. Thanks so much for explaining in the cube and to our audience. Appreciate it. Alright, thank you everybody for watching. We'll be right back with our next guest. You're watching the cube from Chicago right back, right after this short break.

we've made just tremendous progress over the last several years with Microsoft you know started back in 2015 where we you know cross certified hypervisors and that's kind of a basic you know let's work together over the last couple years it's truly blossomed into a really good partnership where you know I think they've and we both gotten over this you know Linux vs. Windows thing and you know I said we've gotten over I think we both recognized you know we need to serve our customers in the best possible way and that clearly means is two of the largest infrastructure software providers working closely together and what's been interesting as we've gone forward we find more and more common ground about how we can better serve our customers whether that's you know what might sound mundane that's a big deal sequel server on realm and setting benchmarks around that or dotnet running on our platforms now all the way to really being able to deliver a hybrid cloud with a seamless experience with openshift from you know on premise - - to Azure and I mean having to H Bank on States twenty five thousand containers running in production moving back and forth - sure and I think it's more building on what I talked to you about a year ago if I remember last May May of 2018 in San Francisco so I was exposing very heavily look the world's going to move towards containers the world is already embraced Linux this is the time to have a new architecture that enables hybrid much along the lines that gem and all of the clients as well as Ginni and Sasha we're talking about on stage yesterday so you put all that together and you say that is what we mentioned last year and we were clear that is where the world is going to go nice step forward a few months from there into October of 2018 and on 29th of October we announced that IBM intends to acquire Red Hat so then you say wow we put actually our money where amount was we were talking about the strategy we were talking about Linux containers openshift the partnership we announced last May was IBM software products together with OpenShift that is we already believed in that but now this allows us coming together it's it's more like a marriage then sort of loose partners passing each other in the middle of the night we are so excited and you know having put in all the time part of this is representing all the work the team has done and the communities have done when you think about all the work that goes into a Linux distribution it is everybody it's the community's it's the partners so we released the Red Hat Enterprise Linux eight beta in November mid-november we've had 40,000 downloads of that beta since November people who have provided feedback and comments suggestions all of that fed into what we've released today as the Red Hat Enterprise Linux eight general availability so it's a big day and part of it is we're just so proud of how we've done it and what we've done and we've really redefined what are not the value of an operating system with Red Hat Enterprise limits eight tech transformation started about ten years ago bean CI over the company about ten years and frankly the first five years were just fixing the basics so getting in place what we'd call world-class systems doing a bunch of stuff on resilience and security and all of that kind of stuff and the other thing and this is the dramatic change you know ten years ago when I joined the company we were 85% outsource to managed service vendors so I had technology people that basically were signing contractors and managing service agreements if we didn't have technology DNA and so you know over those five years and the full ten years actually we've been to not about just in sourcing and rebuilding our technical muscle if you like so now we're we've gone from 85% outsource to 90% in sourced so we run build and manage our own we're at word now a technology company yeah and and five years ago we had a real big shift and you know we were we were closest to what was going on in China and so probably saw this before many many of the other banks saw this around the world of what Alibaba was doing with ant financial and $0.10 and this whole just just complete disruption of how customers interact with the banking industry so we got an early lead on this digital transformation and really for the last five six years would be doubling down on building a pure digital offering and we see ourselves as a technology company providing banking services not as a bank with some technology department in the backend open source is the innovation model going forward period end of story full stop and I think as I said in my keynote yesterday you know leading up to the the biggest acquisition ever for a software company not an open source software coming a software company that happened to be an open source software company I don't think there's any doubt that that open source has one here here today it and it's because of the pace of innovation yeah our goal is to make sure we're supporting those upstream communities so all of all of Red Hat software is open source and we work with a whole community of individuals and companies and the upstream open source software and we want to make sure that we're not just contributing features that we want but that we're a good player or that we're helping to make sure those communities are healthy and so for a number of the projects that were involved in we actually assigned a full-time Community Manager a community lead to help make sure that project is healthy so we have someone on everything from Saif and Gloucester to fedora to kubernetes I'm just making sure the community does well yeah we do a little bit of both and so a lot of it is responding to the community and that's one of the areas that Red Hat is really excelled as taking what's popular what's working upstream and helping moving along make it a stable product or stable solution that developers can use but we also have a certain agenda or certain platforms that we want to present so we start from like various runtimes to actually contain our platforms and so we want to have to kind of drive some of that initiatives on our own to help drive fill that need because we hear it from customers a lot it's like things are doing are great but like there's all these projects that need to come together sort as a product or unified experience and so we spend a lot of our time trying to bring those things together as a way to help developers do those different tasks and also focus across like not just the Java runtimes which we hit a lot of Java so you might have baked security in right I mean we have a secure supply chain and you talk about difficult things for la right every package that we that comes in that is we totally refresh everything from upstream but when they come in we have to inspect all the crypto we have to run them through security scans vulnerability scanners we've got three different vulnerability scanners that we're using we run them through penetration testing so there's a huge amount of work that just comes just to inherit all that from the upstream but in addition to that we've put a lot of work into making sure that well our crypto has to be Fitz certified right which means you've got to meet standards we also have work that's gone in to make sure that you can enable a security policy consistently across the system so that no application that you load on can violate your security policy we've got enough tables in their new firewalling Network bound disk encryption that actually it kind of ties in with a lot of the system management work that we've done so a thing that I think differentiates rl8 is we put a lot of focus on making it easy to use on day one and easy to manage day two well we're not getting there were there what that allows us to do is to take the reference designs that we have and the testing that we've we've previously validated with Intel and Red Hat and be able to snap pieces together so it's just a matter of what's different and unique for the client in the client situation and their growth pattern what's great about trueskill is that in this model is that we can predictably analyze or consumption forward based on the business growth so for example if you're using open shipped and you start with a small cluster for say one or two lines of business as they adopt DevOps methodologies going from either waterfall or agile we can we can predictably analyze the consumption forward that they're going to need so they can plan years in advance as they progress and as such the other snap-ins say uh storage that they're going to need for data and motion or data at rest so it's it's actually smarter and what that ends up doing is obviously saving the money but it saves some time you know typical model is going back to IT and saying we need these servers we need the storage and the software and bolt it all together and the IT guys are you know hair on fire running around already so so they can you know as long as IT approves it they can sort of bypass that that big heavy lift we're trying to do is create role models for women and girls who would like to participate in technology but perhaps are not sure that that's the way that they can go and they don't see people that are like them so they're less tendency to join into this type of communities so with the community award winner we're looking at a professional who's been contributing to open source for a period of time and with our academic winner we're looking to spur more people who are in university to think about it and of course the big idea is you'll all be looking at these women as people that will inspire you to potentially do more things with open source and more things with technology we've been hearing for many many years that we definitely need to have more gender diversity in tech in general in an open source and Red Hat is kind of uniquely situated to focus on the open source community and so with our role is the open source leader we really feel like we need to make that commitment and to be able to foster that right so so Sierra's a supercomputer and what's unique about these systems is that we're solving there's lots of systems that network together maybe are bigger a number of servers than us but we're doing scientific simulation and that kind of computing requires a level of parallelism and it's very tightly coupled so all the servers are running a piece of the problem they all have to sort of operate together if any one of them is running slow it makes the whole thing go slow so it's really this tightly coupled nature of supercomputers that make things really challenging you know we talked about performance if if one server is just running slow for some reason you know everything else is going to be affected by that so we really do care about performance and we really do care about just every little piece of the hardware you know performing as it should so we thought okay let's take all of these best practices that we have and build more or less a methodology around it how to make this actually works like how to do this we really broke it down into like individual sprints do dissin sprint one the distance sprint do to really have the results within three months six months 12 months whatever the places that you want to run on and then we realize talking to customers this by itself isn't still enough so that's why we started to open up this to an entire ecosystem so we brought ecosystem partners along like working closely with red a lot of other companies but also system integrators who can help us we speak up projects because we as a company are software companies we're not a services or consulting company and we do support customers and some of those engagement but if you think of like a really fortune 500 company that's a multi-year project it will keep hundreds of busy people busy so to recap like built-in methodology we built the ecosystem to deliver on that promise at scale and now the last step was we as we were doing this we also built like a reference architecture for it and was just in an internal IDE so how do we like structure this bill that reference architecture and then realize okay I think it's kind of like super helpful for customers so that this way we then decided to open source this reference architecture is fabric as well to like the entire software community so they can also use it so technically these three pieces it's the methodology it's the ecosystem and it's like the reference architecture that you can work with to help you achieve you [Music]

>>day, Volonte. And welcome to the Cuban special presentation here from Amazon in Boston. We're talking storage, really? A group of intelligent people here in the storage world and really excited to have Kevin Miller. You got hard news today around this. Think of replication. Time >>control. Yeah. >>What? What's that all about? What should we know about S3 replication? What problems isn't solving for customers? Why'd you do this? >>Yeah, absolutely. So we're very >>pleased to announce the launch today of s three replication Time control. >>This is a >>future that a number of customers across really across the board, large enterprise as well as public sector customers have asked us >>for to really give >>them insight and confidence that critical data they need to have replicated will be done in the time frames that they require. So we're actually today offering industry first s L. A of 99.9% of data will be replicated with within 15 minutes when using replication, time control and really, most data is replicated within a matter of seconds. But then having that escalate to >>back up that promise. So >>we have a number of customers who >>use as three replication today. Both is in our cross region replication as well as same region replication. And so the >>use cases really >>span the gamut from customers were looking to just back up their data so they might make a copy into a lower cost storage class to have a backup of that data. A CZ well as customers that I want to have on always on disaster recovery site, where they can replicate the data and then have a live hot, ready to go replication in another region for disaster >>recovery. Okay, so let's double click on that a little bit. Cross region replication. C r R >>r r >>Tell us more about that. What should we know there? >>Well, see, you're ours. The >>capability we've had for a long time, and it's it's a really critical capability. Ah, building block that our customers used to ensure that they can maintain a second copy of the data in another region. And so, and with Sierra are they can not only replicate the data, but they can actually replicate it into a completely different accounts so they can actually have two accounts that with potentially different access control and different administrators who can access those accounts. So they really have confidence that even if there was a knish you with their application in one region, that they can immediately begin operating in that second region. And so so we have customers who use replication for backup recovery, but also for a ZAY said sort of live replication to have ah always on D our site. >>Okay. And you also just recently announced the same reason. Region replication tell us more about that. >>Well, same region replication. It provides many of the benefits of cross region replication, but does so within one region. So we do have some customers >>who would like to, for example, make a backup copy of their data into a different account. But they >>need to >>maintain that data within the same geography, but perhaps for data, sovereignty reasons, or that they just want Thio, keep everything in one region but still have that second copy. So with same region replication, it's really just one parameter in the replication configuration, and they have all the benefits that we have historically had with across region application. >>So, Kevin, what should we be watching for? Just in terms of s three replication. Replication generally is very important for customers, really. But what's next for Amazon as three replication that we should be paying attention to? >>Well, you know, we, uh we think the >>replication today has ah range of different differentiated capabilities in terms of the ability to replicate on a tag level or replicate subset of the data. And so, you know, >>really, our goal with replication is just to make it as easy as >>possible for customers. Thio configure the replication they need Andi provide that flexibility while also providing the sort of the fully managed experience that we have with us three where you don't have to build your own software to do it. So, >>you know, we're gonna be continuing >>to work with customers. Uh, Thio simplify the things that they need to d'oh to configure replication for their different use cases. >>Let's talk about that customer angle you're just thinking about as three replication time control. What you expect customers to be saying about this, how they're going to be using it. What kind of problems are they going to be solved? >>Yeah, well, we have customers, you know, particularly those >>in regulated industries or in government public sector where they are under very stringent requirements. Thio be able to prove that they always have a second copy of the data and and this is the way that they can do that. So we air, you know, working with customers in with some of the tightest regulations you can imagine who were saying, Yeah, this is what I need with this capability Now I can I can watch it. I can monitor it. Ah, and I and more importantly, I know that the data is there for them. They can't start processing the data until they know that that second copy is is made. So they're using the replication time control metrics to really look at it real time and say, Okay, I'm ready to begin processing this data because I know I have both copies made. >>Well, it's great to see you guys really expanding the storage portfolio again. It started very simple, but you get that flywheel effect going. It's it's a critical part of the value chain. So congratulations. I'll give you last word, and >>I I just think that >>obviously that s three stands for simple storage service. And despite all of the flexibility and capability we're trying to build in. At the same time, simplicity is job number one for us. And so >>we're just >>really excited about with replication. Time control. Uh, we think that we've built something that both hits, that that mark of being simple but also provides just a lot of capability that that otherwise, you know, would take quite a bit of effort. >>Always a balance. Right? The simple you make it that war customers wants. Kevin, thanks so much for coming on The Cube. Really appreciate it. >>Absolutely. Thanks for having me. >>You're welcome. And thank you for watching everybody, right? Right back, Right after this short break.

>> [Disembodied Voice] From New York, it's the cube. Covering escape 19. >> Welcome back to the Cube's coverage here in New York City for the inaugural multi-cloud conference called Escape 2019. This is a conference dedicated, first conference dedicated to conversations and content and people around the trend of multi-cloud, which I've been critical of, I've called BS in the past. But it is multi-vendor it's developing and the architecture for true multi-cloud is on the horizon. Where well, we will be relevant. Our next guest is Daniel Wall, senior Distinguished Engineer at Red Hat, working on a lot of the technology around what Kubernetes and containers is create a lot of buzz around and that is the abstraction layer around working across clouds. Daniel, welcome to The Cube. >> Thank you for having me. >> I'm sure I butchered what you do, but I know you make a lot of tools. You make containers work. Talk about your role at Red Hat real quick. >> So my role at Red Hat is I am the technical lead of container technology, everything basically underneath Kubernetes main projects over the last few years is to look at what Docker did and then split them into individual tasks. I believe that Docker should be broken into four different main tasks move and container images around playing with containers, building container images, and running containers in production. And then we can run different security realms around each one of them. So we have tools to do that a Scopio, Podman build, and CRI-O is the one we use for Kubernetes. >> And how's it going? Good? >> It's going great. Yeah, we're getting great up. A lot of community support. A lot of people are really excited about some of the security features for so you can run full containers where you traditionally would do a darker you can run a totally non routes and much more secure. >> Well, I'm really interested in your talk you're giving here because the folks that follow The Cube know some of my tirades I've been on the past. I've been saying for a long time that there's been a very non-selection of clouds outside the big three, >> Right. >> And you had a power law that has, know who the big guys and a long tail of people creating their own little niche services. But income, the essentials and the global size and channel part is people using cloud. We have a video cloud, we're building more and more clouds for our media business. This, I was talking about the rise of these new clouds right?. >> Right. >> You're actually put some structure around this around, You're talking about Walmart clouds and niche clouds. Could you explain so this is really important. I want you to take some time to explain that. >> Okay, so my talk today I call it the Walmart clouds, although the analogy is when Walmart first started showing up in the United States and different areas, all of the department stores basically went out of business because Walmart was able to out-commoditize everything in the universe. And so, all these major vendors, district department stores went out of business. The one thing that didn't go out of business was sort of like specialty stores. So, I always kid around and say my wife has me every weekend sitting out front of these specialty stores that she loves to stop shop at. So if I look at the way the clouds have happened is basically most people say there's three major clouds, although I think they ignore one. So you look at Amazon, you have Google and you have Microsoft Azure, although I think Alibaba is going to become important in the future. And I call those the Walmart clouds, because basically, their whole goal is to commoditize and get rid of all the other, >> And scale up and provide more and more departments more services, >> But basically it they will always be rushing to get to the cheapest price. But there were a bunch of other cloud vendors out of the specialty cloud vendors like you talking about the Cube one, you this might be the best one to do in video. So I might want to put part of my workload in the Microsoft cloud or the Amazon cloud to get the cheapest price but I want to run certain certain workloads inside the U.S. We look at another example that is Nvidia right? and there's the Nvidia cloud and they might put the best GPUs in there. And you might want to do your machine learning your AI technologies might want to go in there because they might work better. IBM, who obviously bought Red Hat, but but IBM, you look at what they're doing in their cloud, they can have power series, they can have, mainframe workload z series. They might even have, some of their future, super duper computers type things in it. And then you have Oracle and Oracle would have database, they're probably going to do databases, they've massive database technologies inside of their cloud. So when you really >> Well, they think they're one of the big clouds. But they're not. >> They do. >> But their specialty Database Cloud. >> Basically, I believe that they are. I believe IBM, I think all of them are niche, especially clouds. But the bottom line is you need an API to move between these clouds so you can put workloads in different instances. And I believe that the Walmart clouds the the AWS and Microsoft and Google, their whole goal is to get you into their cloud. They might talk a little bit about on prem cloud and supporting your data centers. But their real goal is to get you off your data centers into their cloud, so they can start making money. They won't have no interest in supporting these, sort of the specialty cloud vendors. But if you look at open shift, which Kubernetes, from Red Hat, our goal is to basically make moving your cloud instances around and keep commodity and stability and move to clouds around. >> Let's take it through a working example. So there's couples and use cases that I see happening, I want to get your reaction. One is our cloud. We're (mutters intelligibly) which we do have. It's coming out. It's on Amazon. So we were small, self funded, company growing having fun. We're building on Amazon. We don't do any work in Azure our solutions on Amazon. Another use case might be a vendor that says hey I have proprietary software, I'm going to stand up my own cloud infrastructure and do all that and build it from the ground up. Is there a difference between the two? Because one is co-locating essentially on Amazon. leveraging the cheap commodity, but building differentiated niche on top of it, versus the standing up a full cloud? >> Well, what I would argue, first of all is is I would want you are your cloud, the one that you're saying is in say, Amazon, it what is the chance of you guys basically getting an offer from Azure to a nickel less per hour. >> Pretty high!(laughs amusingly) >> To be able to move your cloud over, >> It might be high. >> And the problem I would see is if your cloud inside of Amazon cloud starts to take advantage of Amazon's features, then all of a sudden it gets harder and harder for you. the cost of moving off is going to get harder and harder. If you use open source solutions, pure open source and not tied to individual cloud vendors. Then it would become much easier for you to move around. So you could take advantage of, commodity, right? And that you mean, another analogy I use with the big cloud vendors is Hansel and Gretel right. They all want you to come on in and come on in have some of our candy, have some our candy. And next thing you know, you're inside the cage. And, you know, but if you stick to open source, right, this is in a lot of ways the major cloud vendors is a major threat to open source, and that they're trying to lock everybody in right there. We lost it. >> Okay so what's the path? So I told it, by the way, I'm getting what your saying. So I say great I'll take advantage of the cheap I as the infrastructure service layer. But then what an open source toy usually open shift, I still got to build my app, I got to still host it. >> Right. So you build you build your app on top of it. So let me define what open shift is. And so open shift is basically Red Hat's enterprise version of Kubernetes. So if you look at Kubernetes, Kubernetes in some ways is just a higher level distribution of software. So when when Red Hats got into Linux business, there were lots and lots of Linux distributions. And what Red Hat did is they picked a whole kernel and a whole bunch of packages and joined them together and created a distribution that everybody could agree on and build on. So with open shift we're doing is we're taking Kubernetes, but there's a whole bunch of CNCF projects, and we're joining them all together and then testing them and making enterprise so that ready. But really Kubernetes is the key factor here in that if you build everything Kubernetes you CNCF open source projects, for your, save your storage, put it on staff, so Gloucester, one of the network based file systems in the open source world, instead of diving directly into Amazon, now you have the flexibility to be able to get out of the- >> So here's an Architectural question. So I got to ask you as multi-cloud conversation starts to heat up, and by the way, I think people have multiple clouds. It's just not multi-clouding. Right, right, right. Yeah, but it's coming. So architecturally what do someone have to think about architecturally for multi cloud? What's in the mind of the technical architect out there? >> What's on them? What are they should be thinking about from an architecture because you don't want to forclose the future. But I also want to get the best what I can get today from the clouds. >> I mean, I keep keep on hammering on it, but stick to the open source projects to do this as the CNCF projects just to allow you flexibility. A lot of it, the real problem with a lot of this technology right now is it's developing so fast. I mean, I think we have a Kubernetes version every two weeks, it seems at least in my team and see it feels like it. >> So you think Red Hat's of good vendor for the supplier for that person. >> Obviously >> Yeah you know some stuff is hard to deal with so it (mutters) look I'm so busy, these guys, I'm trying to get the transformation going. I don't have time to keep track of what's going on in CNCF. >> Yeah, well, we're a co worker of mine talks about your Red Hat and open shift is a plumbing tool or an electric we're building the foundation of your house and we put the electrical systems and the plumbing empties into your house, but we still need applications to run so we need you you need a toast or you need a toilet, you need a sink. And the applications and one of the one of the differences between Red hat and sort of the cloud vendors is we try not to get into the product, the lab and product business. So we want to support open source projects and other products running in our environment. If you compare that to running inside a cloud, you know if you become incredibly successful inside of Amazon, your video cloud business wants to prevent Amazon to say, oh, we'll just do video will steal everything they're doing and all a sudden we'll do the video inside of Amazon and then put your your cloud out of business. And, your only option then is now you're competing Amazon in Amazon against Amazon. How do you get out of Amazon >> That's called 3D chess.I think. Or maybe 4D chess. >> So if you you know My point being if you have an opportunity to get out and compete against Amazon say on Microsoft compete on your local compete on one of the niche clouds So any vendor that basically ties totally to Amazon, >> This is this is absolutely why I'm here because I believe multi-vendor, that was the buzzword in the 80s and 90s. Is everyone wants to they want to homogeneous they want a heterogeneous network. So multi-vendor will be around multi-cloud has to survive, it will survive. But right now we are in the foundational stages. The second interview, he has talked about plumbing and streets, and that's what we're at. So I guess the final question for you is, as we're setting the foundational infrastructure for multi-cloud, what's the big takeaway that you see that you could share? You mentioned get involved in open source what specifically architecturally should should folks think about in terms of foundational. >> I think, look at what the CNCF that cloud cloud native foundation is doing for open source projects, depends on what level you want to come in. And the bottom line is, built on top of Kubernetes use open standards to do it. Don't fall for the Hansel and Gretel effect of eating the candy because you will find yourself in a cage. >> Well, multi cloud is arrived and it's being thought through by industry leaders from entrepreneurs. We just had the former CEO of Sierra on, now running AVA trace, industry veteran, lot of tech chops in here, laying down the lines, if you will. A lot of good stuff Kubernetes is a key part of the containers. >> Okay, huge part of it. Thanks for coming on. >> Thanks for having me. >> And thanks for sharing the insights here on The Cube. We're in New York City for the inaugural multi-cloud conference Escape 19. I'm John Furrier back with more after this short break (pulsating music) (pulsating music)

>> Narrator: Live from Copenhagen, Denmark, it's theCUBE. Covering Nutanix dot next 2019. Brought to you by Nutanix. >> Welcome back everyone to theCUBE's live coverage of Nutanix dot next. I'm your host, Rebecca Knight co-hosting along with Stu Miniman. We're joined by Christo du Raan, he is the COO IT Hardware and Infrastructure at Trustco Holdings. Thanks so much for coming on theCube. >> All right, thanks. And thanks for having me. >> Direct from Namibia. So we keep hearing there are customers from 50 countries. And you represent Namibia here. >> Yeah I come from far down in Africa. (laughs) >> So tell our viewers a little bit about Trustco, what you do down there? >> Trustco's a financial services company firstly, we look after all our Namibian customers in the insurance industry, as well as in the banking industry. We've been busy building our banking industry now for the last five years. And we're almost to that point where we can start serving people. Then we've got also educational services that we give to our customers and we've got roughly about 15,000 students, all doing distance learning, and of that 15,000 we've got about 80 to 90 percent of them that we also do finance, not just for the course material but also the technology, that we finance for them, so to give them the capabilities to do their studies through us. Then we've got also natural resources, it's quite a new business unit for us, where we dabble a little in diamond mining, we've got two mines currently, one in Namibia itself, where we produce probably one of the best diamonds in the world, clear cut diamonds, and then also in Sierra Leone we've recently acquired a mining license there as well. Then in Namibia, the other stuff that we do is in Shared Services, where we have our own radio station that we broadcast in Namibia, and then we do a little bit of in-house marketing and media and those type of things. >> Just a few things! >> Well luckily Christo, your IT staff, they have it easy, they don't have, you know, I walk through the Expo floor, it's like oh well how many verticals do you need to go to all of them, to be able to learn what you're doing. So give us if you can just, a little bit of a snapshot of your IT environment, what your team's responsible for, and if you can, kind of bring us even back before you began the journey onto Nutanix. >> So we're very centralized in Namibia, all our stuff gets run out of one data center, or one common area in our area offices, and then we expand to the six branches out in Namibia and in South Africa and now of late we'll be in Sierra Leone. IT team pretty much look after everything, we've got a saying at the office, "If it's got a plug on, it's IT's problem". (laughing) So yeah, so we do everything from the infrastructure, the networking, the servers, the storage, well, now it's Nutanix, everything is already built into one solution, so that the spurred systems have now fallen away, and we only look after it. >> Bring us back to that move to Nutanix, was there an upgrade that you were looking to do? Was there a pain point? What was the impetus to look at Nutanix? >> So our business has expanded quite quickly and the old way of doing things, with the separate SANs, separate switches, separate servers, those type of things became a little bit slumbersome, and difficult to manage because you had to have all these different kind of vendors that's got specific software solutions and specific training that you have to do and it just became a little bit too much for us and we decided that, let's step back a little bit, and see if there's any solutions out there that makes it firstly easier, that we can manage with less people and do more and at that stage hyperconvergence was just on the peak of becoming a thing, if you want to call it that, and we had done our research and found that Nutanix at that stage was the best fit for us and also the most mature in the hyperconverged space. So, that's basically where we got to the Nutanix solution, obviously like everyone else, we started with a Community Edition, dabbled our hand a little bit in there, and saw that's actually doable, it's easy and something that we can build on. >> So, you've been with them for about two years now, so still a relatively new relationship but talk about the beginning in particular and relationships are hard. Every relationship is hard. There are inevitable stumbling blocks. What were some of the challenges you faced and how did you work with Nutanix to overcome them? >> Challenges, I can say, luckily we haven't had a lot of them. Our business is not nearly as big as the Europeans and the Americans, so it is not that complex a system. We had our challenges in the beginning, hypervisor specifically, 'cause we made a huge move, we went totally 180 degrees from our Hyper-V environment, we said we going to go right over to AHV, don't want to do deal licensing, let's just jump in on AHV and go Nutanix fully. So, obviously we had a few challenges with a couple of our services and servers. But other than that, I must say, it was actually a pretty easy move for us. >> It's interesting that you say going from Hyper-V 'cause I've talked to the customers, oh there's a saving from moving from VMware, oh Microsoft, Hyper-V's all included, if you're doing Windows and you've got Hyper-V, I'm sure you've got a Windows application, so was there an application change or what was the driver to move? >> There were some of our applications that were very specific, especially on the network drivers side of things, moving from the normal Windows drivers, to the IO drivers in Linux. We had a couple of challenges with our in-house apps as well, but again, it was a reasonably painless move over to Nutanix. >> One of things we keep hearing about at this conference is how Nutanix is evolving as customer needs and demands are changing. You gave us the overview of your company, you are getting into new businesses and still continuing in established businesses, what are some of the needs that your IT is experiencing and how is Nutanix meeting those needs? >> Like I say, in the old infrastructure days, provisioning was probably the biggest hurdle, if the Dev guys wanted stuff, you first had to go and buy some more hardware, because you need to adapt to them. When we reversed over to Hyper-V eventually, it became easier, but it was still not the right fit. You still had to tweak it and play with it etc etc. So, the biggest challenge was to get our DevOp guys quicker access to what they need. And then also our customers as well. We've moved from where there's a person that needed to provision storage, needed to provision networking, needed to provision server and VMs, that's now all basically done by one person and most of those things we've already automized, so it is five, ten minutes, and then they've got what they need. I think it made us a little bit more agile because we pride ourselves on being quick thinkers, deploying stuff fast and that was always Trustco's main advantage in the Namibian market, we didn't go through all the other rigamarole that other companies have of tendering and doing things in a certain way and by the time that you get there it's not relevant anymore, now we need to do something else again. That brought us quick to market and made it so that we can deliver quicker solutions to our customers. >> So, Christo, was there any impact organizationally for rolling out Nutanix, you mentioned DevOps there, the goal of course is that they shouldn't have to worry about the infrastructure and hopefully Nutanix is delivering that, but there's some retraining or moving inside the organization, what's the impact been on your organization? >> On the customer side, none. They don't even know we've moved over. >> But from the IT side? >> From our customer side, they've not seen anything. From the IT side of things, we had a phased approach, so we started off with the Community Edition, where we basically just dabbled in it, saw what we could do on it and then also, let's call it training for the IT guys, so that they're comfortable in how the product works. So by the time that we got to deploying it in production, it was actually a very smooth transaction. We had all the kinks sorted out beforehand and made sure that everything will work, again, being in the finance industry, in the banking industry, downtime is an absolute no no, and we wanted to get to a point where we say we're not going to move over production sites, production environments, in the evenings from twelve to four in the morning because we've all got families so we'll either plan it properly ahead of time and yes we did it and actually, dare I say, in production time, we moved across almost seamlessly. We've got a lot of redundancies built in obviously so it gave us the opportunity to actually move in place if you want to call it that. >> So what does the future hold for this relationship? Where do you see your partnership with Nutanix evolving and where do you think you'll be, say, five years from now? >> So, we've got a roadmap set out with Nutanix and where we're now only in the baby phase, where we've done the infrastructure, we're happy everything is working, so now we're in the POC stage of exploring the software suite in its entirety. We've started now with Leap and Bolt ADR scenario and tested it extensively and we're now in that process, probably when I get back in Namibia, we'll have the licenses hopefully to start deploying it in our production environment. More closer to the future, in the next I would say, six to nine months, we're going to take on Frame, 'cause part of our business scenario, because we were Microsoft, was the Remote Desktop Service, and that was what kept us so lean. There are some challenges now with Remote Desktop Services where our Dev guys are moving into some Linux and there's different things coming up now where we move away from the traditional monolithic applications to more agile applications and then we'll start dabbling our hands in Frame. For us the holdback was when Frame came out, that it was only in the cloud and for us in Namibia, Africa, the internet is not as stable as we would like, so that was totally off the cards for us. Now that it moved back into on-prem and we can run Frame on-prem, that will probably be our biggest project going forward for the next year and year and a half. >> Excellent. Well thank you so much for coming on theCube Christo. It was a pleasure talking to you. >> Thank you very much. Thanks for having me. >> I'm Rebecca Knight for Stu Miniman, stay tuned for more of theCube's live coverage of dot next. [Urgent Music]

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019 brought to you by IBM Wear and its ecosystem partners. >> Welcome back, I'm stew minimum like co host for this segment is Justin War, and this is the 10th year of the Cube here at VM World 2019 when the lobby of Mosconi North and happened. Welcome to the program first, a first time guest on the program. June Yang, who is the vice president of product management and engineering at VM. Where. Thank you so much for joining us. >> Thank you for having me. >> And welcoming back to the program is Marin Cabra, who's the vice president. Product marketing of Cloud at Delhi emcee for in Great to See You, thanks to All right, June so many different pieces talking about Cloud Way. Think back 10 years ago, you know, Pomerance was talking about it like it's the software mainframe. What we're talking because, you know, even back then, you know, Cloud isn't really it's not a destination or a place. You know, there is no cloud is just somebody else's computer. It's more of an operating model, so of course, the VM work cloud on various solutions. Of course. Sitting here with Del, I'm sure we'll be talking about the V. MacLeod, a deli emcee. But just give us over a little bit about you know, you're in a lot of customer meetings. You know what's resonating with your customers. What are they coming to you tow? Discuss when it comes to their overall cloud strategy? >> Yeah, I think for a lot of customers, they're really looking for both the hybrid cloud story as well as a multi call story. I mean, this is something that Pat spend quite a bit of time talking to you on the Mondays keynote. We see customers clearly. Many of them have very large existing footprints on premises and edges again as a growing segment off their infrastructure. It's also getting very significant, making very significant investment over there. And of course, the public cloud itself. So we see many customer really trying to straddle the combination off the private cloud, the public cloud and the edge side, and our strategy is really we want to have a consistent infrastructure that's running everywhere, so therefore we have a consistent operational model that enables the customer and their advance to be to do that. >> Yeah, In some ways, it reminds me back. You know, in the early days when I worked with VM where every group had some application they'd built and you know which server they bought, you know, you know, they would run VM. We're underneath that because it would help with the efficiency in there. So in some ways, is multi cloud similar to what we had in multi vendor back in the day, >> I mean, we think of, you know, you think about the first it oration. Of'em were right. We're really thinking about We're taking the hype, the hyper visor, and making all the hardware underneath that to be really invisible right you're using, You're dealing with a high. You're doing the hyper visor and really hide it a head virginity off. What's underneath that? And then we talk about our STD Sierra, which is really focusing software defined data center were virtualized not only compute, but also storage and network as well and really hide in the head Virginity for that. And so the third iteration flies really looking at the cloud as the next level off you know, different instructor comes from money again. We want to go to hide that and offer consistent operational model there. >> So from the customer perspective, back in the day when Vienna, where was new It was new and scary for a lot of customers. And we had we saw that with cloud as well. So 10 years ago, Cloud was evil and wrong, and we should never use it. Customers have moved on in both of those cases Have we have We reached the point now where cloud is just Yes, it's accepted and we're going to be doing it. Are we? Are we going to have another battle about whether hybrid or multi cloud or customers just moved past that and are now looking at? We know what we want to use this for, so we know that we need to choose it. We're not gonna be moving everything to the cloud, but we're not gonna be putting everything in V EMS either. We're going to choose what is the right solution for the for the different views. Guys, >> I think over the last court, a couple of years that has become sort of the defective standard people comfortable with the cloud people comfortable with on premises. They know that it's gonna be hybrid cloud world. It's gonna be a multi cloud world. >> So Varun, we talked about the VM War cloud on Delhi M C. We had a number of conversations back. Adelle Technologies World. You know, earlier this year when you look out in the general market place, they're like, Oh, I look at the family. Well, Della's the hardware Veum. Where's the software? There are a lot of announcements this week that we're the cross pollination of pieces, and a lot of those are software pieces from the Dell family that tie into what's happening on VCF and the like. So bring us the update. >> Mr Was, as June said, both Daddy M. C and V M were incredibly customer driven companies, right? So what we've been hearing from customers is one. They're really excited about being able to try out the Ember cloud and a GMC, so we're very, very happy to be working with the hammer to bring this to market first. So that's something that that our customers have been asking us for. But then, along with that, as customers start understanding the model of the fully manage data. So you know the fully manage infrastructure you can. The next question that customers have is okay. I can now focus on higher value added service is And one of the things that immediately comes up next is okay. What about my data out? We're protected, right? I'm gonna be running applications on this. And we've already spoken on this show many times before. Data is increasingly one off our organization's most valuable assets. It's a competitive differentiator. Bc news, Every day, if it falls in the wrong hands, what happens? Right? So what we've been doing now, in addition to the three amazing amount of work that we've been doing the June's team to bring this to market, they've also been working on the data protection side. So now the deli emcee data protection is now validated to be working on Williams of you, MacLeod and DMC as the data protection solution. So this means that customers can not only take advantage of the the integration that we have on the infrastructure earlier. You can also take advantage of just have the peace of mind that our industry leading data protection solutions Will will be there to help them manage the data and protect their data. >> So it sounds like it's something that you don't have to think about it as an afterthought, which is often the challenge with data protection. If you if you wait to think about it, it never happens. So this pretty much just comes. We know it's gonna work. Turn it on Day one. Just have it. Start with your data being protected and just have that baked into the way that you run your operations so that it no longer becomes spinning up a specific backup project. Because those things that they always expensive, there's no there's no perceived value to the business of doing this, whereas if it's just now part off, this is how you run your infrastructure. So this is how you stand up via MacLeod on Delhi emcee, and this is just how you should do business. >> You know, it's absolutely like that way. What would we find? That's really exciting. What the Hammer Claw Run DMC is. Customers are asking us to deliver the cloud model right to their data centers do their edge locations, so that's how they want to consume software solutions as well. So what's amazing about the solution is you're you're doing everything to the browser. So that's how you're gonna cause you Data protection becomes an ad on service that you want to add on that. And I'm sure over time we're gonna enter the capabilities as well. But it's really that's the key part here. The ease of consumption it Sorry, The ease of use and basically being able to consume things through the browser is a game changer for for infrastructure, on data in the data center on the edge. >> So June 1 of the things that definitely has caught our attention and one of the bigger announcements this week is Tom Zoo in the con to Mission Control. That's what they call it because from going to have multiple locations, we've been looking for my entire career in I t o. You know, we're gonna have some tool that's going to manage across these environments and made a VM wear cloud, you know, on Delhi emcee. But I probably of'em were cloud on some of the public clouds, and I you might also be doing some kubernetes. That's not even with the V a more pieces, so help paint a picture is kind of where we are today and where we're going when it comes to you know that management consumption and maybe even some of the finances in getting to that cloud operating model across all my environments. >> Yeah, tonsil Vincenzo is a kind of follow. Your name for a number of products was in that tons of mission control, of course, is one part of that. The way we view Content Zoo is that this is really a multi called platform. We understand that customers of developers in particular, wanted to use consume, consume carbon eighties cluster and the often they want to choose communities. Cluster based on different cloud for variety reasons, sometimes cause something's resiliency, sometimes just geographical availability. And then there needs the way to be able to see this in the consolidated fashion. And that's what tons of mission control does. And that's when I showcase yesterday the keynote to really show that you can now have a single pane glass to be able to see all of these clusters across multiple clouds and and then be able to, you know, do some troubleshooting and so forth making things much easier that, of course, buildup Holly policies on top of these clusters and then welcome propagated changes and making sure those in force. So those are some really, really, I think, really good operational capabilities that really simplifies the data. The operational cut, you know, kind of the task that operator has to do its part of the >> driver for this, that that enterprises who got this investment in v sphere. So they've spent 10 years of 10 more years investing in envy sphere. And then all of a sudden, you've got these cloud people who want to come and do things in a completely different way. So now, as a business, I either I have to make a choice of what do I invest a lot of money in both of these things? Do I move everything to one model? It sounds like you're actually trying to provide customers with away. That's a look. You've already made these investments and you don't have to throw them all away. You can still operate things here, but you can also have these cloud things without having to move everything off into a completely different operating model. Is that fairly >> accurate. So I think we're very customer driven by We want to deliver what customer wants to. It wants to be able to consume S o. You know, That's why you know, part of the reason we're so excited about a Project Pacific on top of the V sphere side is really customer has made a huge investment on the visa for platform. And we've got 500,000 customers out there and tons of customers does. He becomes their standard in the data center and that you now have a kubernetes coming in and containers coming in and we don't want a customer. Have to do a siloed platform for it. And by embedding communities directly into V's for yourself, we have now made V's fear The platform for containers and for VMC Sport was well, so that investment customer has made on the on the VCR side. Now kind of moves out to people to cover the communities and containers as well. And because our std see and our hybrid cloud story we're taking the same V sphere across to be a mark on the deli Emcee the Mark child on aws mbm were cloud, you know on edge and so forth. That means all this benefits that fracture. Pacific greens is now going everywhere. >> Having spoken to some clients about the experience of even managed community service is it's really, really painful for them. So being about having these of use of these fear, if you could bring that to group in a visa and have that is a manage service, I'm sure you'll make a lot of people very happy. >> That's that's why we're so excited about it. >> Do you want to click one level further on the product Pacific stuff? Because the thing that struck me at first it's like, Wait, you know, containers and communities That's gonna be the cloud and being, you know, feast fear. We want to modernize it. But you know, that's not what I want to put in the public cloud. But Product Pacific. Is this primarily a data center offering? If I'm doing via more cloud in a public cloud to expect to be leveraging the native public cloud and then tan to helps me manage across them? Is that how we think of them? Or am I not getting the full story? >> So I think a little bit about you think about. There's 111 track is you can do is all these fear based clouds, right? These fear based on premise the sphere based on dahlia MSI ve sphere based on top of you know, public cloud right, That's one track if you follow that track than Project Pacific essentially allows you to be able to run both kubernetes and virtual machines on a single platform. Now, if customers also wanted to be able to run a native cloud, then this is what kind of bring tons of mission control in, because that's a multi called story. So that was kind of what paddle trying explain at the keynote in terms of hybrid cloud versus the versus the multi cloud. >> Okay, so you don't actually have to make a choice of one way of saying things, the tyranny of the single glass of pain. I have to make choices and you can't have a lot of things. And if there's one thing enterprises, height is that that's dedicating themselves to just one way of doing things, they like to have choice. >> We want to give them choices. Well, >> s O. B. Having that ability to be able to make those choices and have it be an end decision instead of war. I think that's >> so one of the questions we've gotten from customers this week is you know, your partners he had VM wear have just made a lot of acquisitions. It's a lot of integration work that needs to get it done. Their bills got strong experience in these things. That sit on top of the stack gives a little bit of what we should see going forward on your planet. >> I mean, I think if there's anything that's that's apparent this week, is that being there and L Technologies are just getting started. I mean, even as a having having known a little bit about some of these announcements, it was just so exciting to see all that stuff come Rio. And we're very, very excited to continue to work with the, um, where to bring. You know, Tan Xue. The various components attends a more Cooper container stuff as well, as well as other other capabilities that we saw in you realize orchestrator and automation. We want to bring that to our customers in an integrated fashion so that it's easy for them to deploy just easy for them to use. And so I think what you're seeing here is just the start. >> That sounds fantastic. Yeah. So all of this investment that women there were saying from from the M wear and from Delhi and see like our customers going to see the payoff immediately, like tomorrow. Or we're going to have to wait. Another wait for some of these investments and integration is to pay off. How long are we going away? >> You think a lot of this is coming to fruition already? We announced availability. Of'em were called on Dahlia emcee at B M World. So it's ready for customer to purchase today, right? If a customer wanted Thio, you know much like what I demolition at the keynote. If a customer has a data center, they want to stood up wherever they need to be taken, literally place, order and be able to get that right. So that's the benefit they can have immediately. And of course, a lot of the longer term things have been talking about by layering additional capabilities. When Project Pacific comes into for a shin, this becomes available, you know, across the veer mark Wild and tell'em see products as well. I mean, these things will all kind of continuous snowballing as we go forward. But there's immediate benefit today and they'll be ongoing benefit as we go forward, making additional investment. >> Excellent. I don't have to wait forever. >> Yes, yes, it's about instant gratification. That's the trick. Now >> what? Wonder if you could speak to kind of changing application portfolio. His customers are modernizing, Going cloud native on that, what's the impact on your platforms and what are you seeing and hearing from customers? >> You know, uh, there is obviously a lot of interest in containers, and customers are either already trying it out or having some sort of applications that her back is there or they have or they're looking at it and saying, This seems really interesting. In some ways, it seems very, very similar to what What I saw from customers five years ago when people were saying, I'm gonna move everything to the public club and, you know, sometimes you hear a little bit of I'm gonna move everything to containers. I think what we will likely see over the next few years is a little bit of rationalization, just like we saw with public and private, is that it's both. I think we will continue to see sort of traditional applications and new applications live in more off of'em centric model. And I think there will be as their new applications being built or as I squeeze package of their applications to be more container friendly. We'll see some go that way. I you know, if anything, I've learned it is One thing I've learned in the I T industry in all these years is there really isn't a one size fits all solution. We get very excited about things, >> and we're like, Oh, >> everybody's going to do this But the reality is, things balanced themselves out and into June's point as a vendor. What we want to do is we want to give our customers choice. But we know that there's no one size fits all, and we want them to choose what's right for their business and help them achieved their goals. >> So, June last question I have for you. Congratulations on the keynote yesterday way Heard way. No, a lot of the inside work and, you know, heard like the guy that swim across the English Channel like that got added to the agenda, you know, like days beforehand flew way. Understand? What happened with demos and last minute gives a little bit is to kind of the making of the team that helped put that together. You know anything that you know, you were super excited. That actually made the final stage that you might not have thought would've gotten there, >> you know, we started out was we were very ambitious, right? And we put in 15 or 16 demos into it. And as we started putting things together, time was our biggest enemy, you know? You know our friend Joe, who is, you know, running the day to show he was telling me you are 30 seconds over on this particular done, though you are 45 seconds on the other day. You give yourself credit here. I'm trying to tell the story here. So, unfortunately, we actually had to cut some demos out just because he couldn't fit into the scope of time. We want to make sure the story really comes out and the customer really understood what we're trying to show. I mean, I'm just so excited as part of the, you know, me doing the key day to keynote. I actually learned about a bunch of products I wasn't that familiar with. And so I was like, Wow, I didn't even know were doing that. And so just to see the amount of capabilities that we're bringing to bear, it's pretty astonishing and it's it's exciting. >> June, I'll say It reminds me of other cloud shows where there's so much going on so much new products getting launched that no single person can keep up with that. But thank you, June and Vern for helping our audience learn a little bit more about the areas that you're doing with >> my pleasure. >> Thank you for having us. >> Justin Warren. I'm still Minuteman back with more coverage at VM World 2019. Thank you for watching the Cube

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019. Brought to you by VM Wear and its ecosystem partners. >> Welcome back to two cubes. Live coverage in San Francisco, California for VM World 2019. I'm John Ferrier, Postal Cuba David Lattin, My Coast, Dave. 10 years covering the BM World Paul Maritz laid out the stack early on. We saw that and watch it go through Its motions now >> remain from the marketing people got a hold of >> that mainframe turned into cloud Now hybrid cloud seven years after we first started about 2012 has been great Our next guest, Paul Falsone, S V. P and general manager of the Cloud Native APS. This is a business unit within VM where that is going to the next level. This is the Act three is Jerry Chen said any of you I talked earlier for VM wears a company. I won't say moving up the staff because there is no stack. It's cloud, right? So its applications on top of operating infrastructure Dev ops going enterprise scale is about developers building APS operating them in scale. This is a big focus of what you're doing. >> It is a dead end of the day. One of my close friend of mine, who's in front of customers all the time, reminds our team constantly that our customers applications matter of the most cause. That's what they used to get in front of their customers with the Dillman teams and the tools they're building the user. Japs come second cause that's what supports the abs. And then the infrastructure comes third zone away. There is that stacks it, but never forget you were at the bottom of the pecking order, if you will, when it comes to ultimately bringing full customer value to our company, our customers, businesses. >> And it's one of the things we've been looking back at our 10 years covering VM where I think you're 13 15 of'em world is that the virtual ization of all very quickly around really optimizing server virtualization really kind of change. The game of one kind of knows that our knows the history there, but it did it without any code changes, too, APs and I think that was a very innovative thing. Now we looking containers and what Kubernetes is bringing to the table. You're starting to get some clear visibility into what's happening and what's possible. Could >> you >> share your vision on what that visibility is that you guys are eyeing for the marketplace in four of'em, where, >> sure, the APP development methodologies are changing, changing more today than they have in the last 20 years. We're seeing ah lot of new concepts and approaches that right now really only accessible to a small percentage of application developers worldwide. We want to try to bring those application development methodologies, practices tools to the mainstream so we can. We can touch the 13 or $14 million.1,000,000 enterprise developers around the world and help the CEOs in their line of business counterparts at our customers get a CZ much productivity out of their development teams as possible. At the end of the day, those APS we're gonna power the next decade of those organizations success or failures with their customers, and so that's becoming a real competitive asset. I've had a number of customer discussions here this week where the primary theme is how me help my developers move faster at enterprise scale, but in a regulated environment in an environment where compliance is is front center >> to big things going on in your world that we covered extensively, honestly, pretty impactful to the Vienna, where portfolio one as open source and hefty oh, acquisition half a billion dollars almost a year ago, about a year left in less than a year, probably was that we close in December last year. So yes, ovary. Just recently we know those guys all people. I mean, I've been covering that for a while, and then I'll see the pivotal acquisition. Just announced a drink from the fire hose. There be doing tons of press briefings, those to impact points, kind of leaving a mark. >> So we've been we've been building up to this. I joined AA Drink them were in 2012 through the Sierra acquisition, but I moved into this role about just about three years ago, and one of the things that we identified early on was, ah, close partnership with Pivotal was going to be essential inside of the Del Technologies umbrella for us to exist in thrive together. And so that's where the idea for P Cass was born. So the combination of V. M. R. R and D with pivotal RND focused on delivering our first community service to our enterprise. Customers we brought helped you in last year. Once they saw what we were doing and thought about the possibility of what would happen if we actually took some of the concepts of communities and p ks and embed them into V sphere, That was, I think, the real ah ha moment for for us and the happier team coming together in the power of what that could enable. But all along the way, we always believed that that was just covering the infrastructure side of the equation. You still needed to get through the making the APP developers productive and efficient in this new infrastructure world and so on to be able to do so on any cloud. And that's where the pivotal piece finally came together last just last month. July Pivotal put out a lot of information in the market around how they're evolving their portfolio to be very cool, bernetti centric, moving forward. And that was a big part about getting all the pieces lined up so that the M word could deliver what we announced this week. The in the town's a portfolio with the component tree for building running in managing modern applications on any club, >> we've kind of come full circle here, predates, and I Sarah, But you guys talking about the stack? Yeah. Paul Moretz. I used to have the whole stack. Ed actually applications up here with Simba. Spring sources around. Exactly. And then you had these when I used to call the misfit toys. Have you had some assets in the M. C as coming in Vienna, where Paul Maritz, Joe Tucci decided, create pivotal as the The platform developed next generation applications. Now it's all come full circle there. So my question is related to that stack and particularly the death part of that stack. This audience is not Deb's not, but increasingly, you've gotta attract that audience. So what's what's your thoughts there? And so >> I think pivotals done a very nice job over the years through the Con Foundry Foundation. The work they've done there through the spring community Spring is at this stage is is arguably the most popular modern Java development environment on the planet. So, you know, we're seeing a tremendous amount of leverage of that of that framework and so between the events of pimples is actively involved in Leeds and their ability to help customers, um teach their enterprise developers how to get the most out of this modern tool kit. We think that there is some wonderful ingredients to a recipe to really scale this thing up in a big way. We way. I also believe that Veum we're still has a lot to learn about what it means to best support enterprise developers and their organizations. And so we are quite a bit in learning mode right now. We're gonna take a lot of lessons from the pivotal team as we as we move forward towards the close and learn a lot more about the team in the culture and their customer engagements. But one of the things I think is is front and center to what pivotal has for customers today is their transformation Service's customers. You've got different groups inside a customer summer looking to build the newest applications. Some of them are just trying to get more operational efficiency out of what they have today. Some of these customers have 12,000 applications in their environments. Um, pivotal has ah set of service is that come in and they help them take their existing monolithic applications and just modernize key components of them so they can operate them more efficiently and reclaim a lot of resources to go do other things. That, I think is probably the lowest hanging fruit for enterprise organizations today. And I'm very, very excited about the service is that pimple has to make available the customers on that front. >> Assad and Jerry Chen, earlier than the other set I was mentioning earlier is a VC now, Greylock, big time to your one. We see former VM Where, uh, guy from 22,003. He also worked on cloud foundries in sight. We ask about the white spaces where starts to thrive in one of the transit is kind of pointing to was have some cummings going public. Some are being bought at sizable numbers, but we rift on. The idea of monitoring was a boring category right now. Observe ability, which is just be monitoring 2.0, you got I pose. You got acquisitions. I mean, major action happening in this observe ability space. I bring this up because that's an area you think, Oh, it's a white space Data opportunities for companies to build service is really points to this cloud. 2.0 application Renaissance And I want to get your thoughts on that environment. What needs to be in place to make that happen? Honestly, pivotals keep for you guys. I get that on Vienna. Where side, but for the ecosystem and for the marketplace, people trying to make careers and or do things What is that cloud 2.0, complexity that need to be abstracted away or >> so The Pepto team had a great Craig and Joe had this great, uh, one liner on kubernetes is all about where the people structure meets the infrastructure. When you think about that, our enterprise organizations have thousands if not tens of thousands of developers all trying to do similar. But a lot of cases different things at the same time, across lots of different cloud infrastructures. On the infrastructure team side, you've got private cloud, you've got hybrid cloud. You've got public cloud environments that you have to get your arms around, monitor, manage, secure and get visibility into. We believe that Carini sits at that perfect layer between the two domains on. This is a big part of why we developed Tom's a mission control. It's just that that perfect layer between the two domains, too, access the company's later and give you full visibility into what all of your developers were doing on every piece of your infrastructure. And we also think that's gonna be a very interesting place for third parties to plug into to gain access to all of the community's clusters that we're helping. Our customers managed across their app landscape to do very interesting things. And so we're really excited about the ecosystem that that project will open up. >> You think this opportunity to start ups in there? >> I do. I do. I think there's a ton of other I mean, think about it just really basic math. Ah, VM based application. When it gets containerized, it has just on the compute side alone. Never mind the networking in the storage site. There are 10 times as many moving parts. A typical containerized EPA's 10 times as many moving parts as avian bay Step. If you think about that applied to the networking layer, you think about that applied to the storage layer, the security layer. You've got 10 times as many points to secure. Now, how do you get your head around that level of complexity As a an operations person, you can't do it. Humans can't do it anywhere. You can't write down your actions. Control this on a pad of paper and know what's what's accessing what anymore, >> Dave. One more question, if I may, on the on the VM container thing, there's a debate or are architectural kind of conversation, and customers are having around when to do containers in three days on bare metal or with V EMS. How do you guys talk to that house? The >> steam going because that was my question. So there was a snarky tweets yesterday. I want to get your reaction to it. And the tweet was during yesterday's keynote. I thought we we launched pivotal so that we didn't have to run containers on V EMS. Now the reality to your point is that people are running containers on bare metal. They're running him on vehement the EMS. I don't have any data, but I wonder if you could comment on that >> so way Probably have a couple of snarky comments of our own on this three share one of the things that put up on stage. Yes, I'll start at the kind of a little little. And I worked my way up at the base layer. The testing we're doing with Project Pacific, which is something we announced this week, which is effectively bringing kubernetes into the heart of the sphere. We're actually using combinations to make the sphere better. We're also going to expose communities to our customers through V sphere, just like we exposed the EMS today. This is a pretty exciting project for the for the company in our early testing of this project, based on the advanced scheduling capabilities of the SX hyper visor take advantage of modern hardware. We're seeing an 8% better performance in a certain test sweet versus what you'd see on bare metal so are ready at the early stages. We're seeing some benefits now take that a step further. The big public college for writers out there if you look at service is like G K on Google. If you look at a ks, uh, recast on Amazon, a cast on his door, every single one of their community service is is run against a virtualized environment, not on a bare metal environment. Why is that? Well, because their customers are using containers in VM, side by side, the flexibility you get out of that virtualization layer. Whether you're a big public cloud provider or your ah smaller enterprise shop running your own data centers, the benefits are proportionate, rather equal on dso >> the narratives off a little bit. What you're saying. What I hear you saying is people use virtualization for a lot of efficiency and scale reasons that's independent of what happens with bearnaise decisions. So if you decide you want to run Cubans on bare metal, go >> to go to town. We think >> if you want to do that, >> you want to do that. But we don't. We actually see a lot of customers who have started down that path. When they go to get to that operational stage, they're realizing they're now dealing with firm where again, they're dealing with Nick drivers again. They're dealing with stuff, and they can easily take that and turn it over to their ops team that's already managing a huge virtualized state and operated with the same tool. >> That's a really a layer thing around round scale. You do the virtual ization for Ryan reasons, and then cos sits on top of it for a whole another reason. >> And the I'd say its operations scale these operations teams need to, you know, just look at the number of announcements we made this week. For an ops team to get their head around all of these new technologies simultaneously is impossible to bring them in one new capability of time into the thing that they're already operating for. That organization is very >> positive. If I understood yesterday, you're claiming better before 8% better performance relative to bare metal. I know that's apples to apples. Or what kind of juicing you're doing on the benchmark >> sex schedule that it chooses it right there. >> I want to ask you about integration and look at it as a quasi. His story of the the industry. You go back to see A with all the acquisitions, right? Historical force it with fusion. Different layer of the stack. I know. Certainly Del did a lot of acquisitions. Some of them work. Some of them didn t m c. Same thing pretty successful. Actually. VM were great engineering. Um, very strong. Go to market on really good acquisitions. My question is on integration with the nice Sarah background, I wonder. I mean, nice. Sarah seems to be very well integrated into the VM. Where platform How is integration The state of integration today within V. M. Where is it a lot easier today because we're living in this AP I economy. What about VM? Wears sort of integration ethos. One of the challenges. I wonder if you could comment and that long. So >> I've been through, uh, to significant integrations of'em where the 1st 1 was with this nice era on. I was on the I was on the incoming side, not the receiving side. The next was with hep Theo. I was on the receiving side, not the incoming side. And so, as coming into this year, back in 2012 Pat was extremely supportive and asked his entire team to be very supportive of getting us integrated quickly and productive. A CZ fastest possible. We were on campus on the via more campus from the next era office within days of the deal closing. That's how efficient Veum work. That's like that's the mindset hammerhead coming into. We were in a building. We were co located with the other networking engineers and product managers. Within the first week on, we were off to the races. That was about 100 20 person company. Hep Ko is about 100% company, Um, about the same efficiency we were consolidating. Offices were bringing them over again, mostly distributed team, but they had a center of gravity. In Seattle. We had a center of gravity in Bellevue. We brought the team's over within within a couple of months in about three months. In three and 1/2 months in, we had the team fully integrated. The organizational design done all the tools in a greater we're all in the same systems. So what happens very quickly now, an organization that's much bigger like like pivotal 3000 employees. Public company takes a little bit longer to get from Deal announced the deal close because it's too public entities. It'll take a little bit longer to do all the integration, but we're already thinking thinking about we know them so well and they know us so well. We already know where the potential landmines are, where the potential rough spots are. Pat prides himself and, uh, this pushes down into the rest of them were on well, welcoming new team members in new groups into the company. And so we try to do that really were very culturally sensitive way optimized for the right tool kit s O that we take, we take some learning like cloud health. When they came in, they had a lot of expertise around. SAS drooling and support of customers were adopting all of that, right. Were jettisoned some of our older tools in favor of some of the things that >> we're gonna win the modernization. So I want to get your thoughts on the last question for the second congratulations, your your your area. We love what you're doing. We think it's super important. Would be covering it like a blanket this year and going forward. But Pakistan came on was wrapped. Talking about 10 years and doing the riffing on the Cube are 10 years covering it. We have some 10 years forward, which waves to be on. They highlighted on the past 10 years in this ear acquisition as a critical moment to bring VM. We're into the S T D C kind of concept started networking up, so we know the history they're sti n and then going forward, he says. If you're not a networking and security in the next wave and Kubernetes is Number one, you're really gonna be missing out. So we highlighted networking, security and kubernetes. But networking. It's nice here on both sides of that 10 year spectrum. You're part of that. >> Why is that? Why is that wise >> watching people know that networking is the most important piece of the wave here? What's the relevance of what he's saying? Share their thoughts on >> Think about the increasing complexity of what at modernization drives into the infrastructure. You're getting smaller and smaller moving parts that that need to operate together at scale in a comprehensive, logical way. But at any point in time, if you're if you're an enterprise organization, if you've got if you've got compliance requirements, audit ability, requirements. If you want to protect, you hear about the number of of small towns that get blackmailed on a daily basis because someone's secured an encrypted There, there, there count taxpayer data and they're there, their victims. All right, this is this >> is some say, cyber warfare. >> It is something. So if you think about in orderto help, our customers get the most out of their developers, these tools that open up I think the potential of a lot more avenues of attack get a lot more complex. And so we think that these two have to progress hand in hand. One. We do want to help developers go as fast as possible. We won't help enterprises get the most out of those developers. That's a big part of why we brought them were into into the damn warfare. We're bringing a pivotal into the VM. We're family, but at the same time, we recognize that the infrastructure has to progress. Every bit is fast, and the network is the thing that ties all these parts together. Whether it's a layer three year layer for networking today or level layer several networking layer seven AP I based networking in the future >> all. I mean, I'm not gonna bring up I ot or industrial i ot to takeovers of physical devices, whether it's a self driving bus off a cliff or taking over towns and cities warfare, I mean the service areas of enormous networks, Internet connectivity applications over the cloud native. Anyway, we know that, right? So a lot to talk about. Thanks for coming on. The Cube Sharing your insight. Senior Vice President, General manager, The Cloud Native APS Group. This is really the key instrument with envy em where to take kubernetes and the advancement of cloud to 0.0 to the next level. I'm John for a day. Volante, be back after this short break.