>> Live from Washington, D.C., it's theCUBE, covering AWS Public Sector Summit, 2017. Brought to you by Amazon web services and it's partner, Ecosystem. >> And welcome to our nation's capitol. Here we are in Washington, D.C. TheCUBE coming live from the Walter Washington Convention Center, here for AWS Private Sector Summit. It's our maiden voyage with the Public Sector so looking forward to this. John Walsh and John Furrier, glad to have you along for the ride, John, this is going to be a good week. >> Hey, it'll be fun. >> A good couple of days. John Galvin joins us. He is the Vice President and General Manager of the Public Sector Intel. John, thank you for being with us here on theCUBE; glad to have you. >> It's a pleasure to be here, thank you. >> Tell us a little bit first off, about your portfolio. >> Sure. >> I understand you cover not only United States, but you have a global footprint as well. Touch base a little bit with our audience with what you're up to. >> Yeah, absolutely. So first of all, I have to put it in perspective for everyone. People know us as a micro-processor company. They don't always attribute us to going out and calling on government, or education decision makers. So we really act as a trusted advisor. We don't sell directly to government or to education entities, and I have sales people, or account exec's, around the world who are going in and meeting with ministers of education or ministers of ICT. Sometimes it's a school superintendent or a district superintendent, but, overall, what we're talking about is digital transformation and how technology can be used to advance government or advance education. And sometimes at a national level, could be at a state level, could be at a district level. >> Well, John and I were talking in our open segment just a little bit ago, about maybe a glacial pace isn't fair to say about how government had that reputation, obviously, for many years about being, maybe, reluctant. >> Right. >> To embrace change. What do you see now in that space? Is there this shift going on, that there's more of an embracing of technology? And of more entrepreneurial kind of spirit within the operation of government? >> Yeah, absolutely. It is happening so quickly. The categorization of government moving slowly is absolutely true. Education the same. But now wherever I go around the world, everyone is talking about transformation and they're starting to launch projects that might be a pilot or a proof of concept, but they're getting started. The challenge is when you talk about digital transformation it is so big so it becomes difficult for governments to really get their hands around it, and what are they going to do to improve citizens quality of life. Is that going to be a healthcare initiative? Is it going to be a transportation initiative? Sometimes it's an education initiative; and we're seeing them all. I think what is causing it to advance now is they see proof-points that it works. That by making those investments it really is changing the quality of life for people. And in emerging markets they don't have existing infrastructure that they have to tear out and replace. And some of the mature markets, it's how do you actually breakdown those silos. >> Well, John, I'm really glad you came on. Intel, in my opinion, I've been following Intel for many years, recently, has been pretty amazing. But you guys have always been a bellwether for trends, I'd say, five to 10 years out. I mean, look at everything that Intel's done with technology You have that five to 10 year stair instantly in what you're proposing. We've been seeing a lot of the AI commercials with Intel, what is the Public Sector trends that intersect with the vision of Intel? >> Well, you're absolutely right. If you look at what Intel does we're similar to the auto industry. It takes us five to six years to produce our next processor, and so we have to be looking that far out of what are the use cases, and really, what are those technological boundaries that we're going to either cross or break? And AI is absolutely the conversation today. It's sort of around artificial intelligence and it's no longer science fiction. We're not talking about it in the future; we're now talking about how can we use it today? Machine learning big, big topic, and not just the role that Intel plays, but companies like AWS; big players, in terms of how that actually comes to life in your home. It's not just how it's going to come to life in a big government institution or a big enterprise. >> And the Public Sector landscape, for the folks that are watching some know the Public Sector, what is the Public Sector? Because it's not the government. There's education, there's health, so what's the layout. How do you categorically look at it? How should people think about Public Sector? Not just GovCloud because there's a GovCloud, but is there a Public Sector cloud? I mean, how should people think about it? >> Yeah, great question. I work as part of a group at Intel that are all verticals. There's a healthcare team, there's a transportation team, there's an energy team. Public Sector is completely different because we're all of those things. We're working on transportation projects, we're working big healthcare projects, and so Public Sector you have to look at in the biggest sense where it's not just a federal presence but it is a state presence, it's a city presence or a county presence. And so our opportunity is to be able to connect all of those things, and that is what I think is so exciting about the transformation that is taking place right now is for that vision to be realized those silos really need to be broken. You know, you're going to hear comments over the next couple of days about forming a data lake. Which is bringing in all of those data streams into a single spot so that you can apply analytics and be able to get to insights that we've never been able to get to before. >> So how do you do that if you talk about municipality levels, state levels, federal levels, different operating systems, different processes, different procedures? And all great resources, how do you pull all that together and make that an asset instead of a morass? >> Well, in that question you just captured how big this opportunity is, and the way that we do it is we work with our ecosystem partners. The strength that Intel has when we enter into those conversations is we work with everyone. We work with the big cloud providers, we work with all the different operating system providers. We're not only with the computer companies that are our partners and our customers, but we're working now with internet and think companies, and so we have the ability to now work across that ecosystem to start pulling all of those pieces together. The heart of your question though is that those are all different systems that have been built over time. And if you look at what's been happening in enterprise over the past 10 years is CIO's and CTO's at the enterprise levels have been breaking down those silos and moving more to single systems and big data streams. And now that's what's happening with in the Public Sector is that data has to come together. >> John, talk about the collaboration between Intel and AWS and what is going on with you guys, how you guys are working together, and what's the impact in serving Public Sector customers? >> Well, we have had a great partnership with AWS from the beginning. (audio cuts out) (audio cuts out) That's going to take on this bigger vision is going to have a cloud discussion. There will still be things that they're going to be doing on premise, but it's most likely going to be a hybrid environment. And so with AWS we really have the opportunity to have a bigger discussion, where they can really have that cloud discussion and even some of the analytics layer. They're also doing more at an IOT perspective; we're able to join that conversation in terms of how our technology really plays into it. But I think the other thing we're able to do with AWS is really look for innovators. We're able to identify either those small companies, or even some of the cities are doing some really great things. And then because of their global footprint and our global footprint we can share that pretty broadly. >> And ecosystem's critical. You guys, Intel's always been ecosystem friendly company. With that in mind I got to ask you the question that everyone's talking about, and certainly, we're covering Mobile World Congress this year in Barcelona. And you couldn't go anywhere without hearing 5G and these new phones that are coming out. And then under the hood network transformation, you're hearing about software to find networking, machine learning, AI a lot of things that you guys are talking about. So the question for you is Smart Cities. It is a really, really hot opportunity just to even think about the concept of what a Smart City entails. I mean, here in D.C., like other cities, they have bicycles people can take out and ride around. That's a smart city, that's a cool service. But now you bring digital all to it. Imagine, Air B&B, you've got Uber, you've got Lift you've got all kinds of digital services, digital experiences. This is a government, this is a Public Sector issue. This is an interesting one. How is Intel's view on Smart Cities, how do you see that rolling out? >> First of all, we're very excited about what's happening within Smart Cities, and to the beginning of your question we think 5G is going to be an accelerant. It's going to cause it to happen even faster than it's happening now. What's interesting about Smart City is that it really does take a lot of different formats. And so we see cities who are really focused on public security and safety. We have examples whether it's Singapore, London of how they're now capturing new data with the cameras that they put up, and can do real-time analytics on it using AI and machine learning. So it's not that they just have all of these data streams, but they're doing real-time analysis of the data stream to be able to identify potential threats. But we also have examples where we're seeing cities invest in new technology to, essentially, replace what are the old ways of us being able to communicate and engage with the government. And that could be as simple as there's new information that's available to us. Or as they're collecting all these data streams they're making that data public and available for innovation, and so entrepreneurs now have the ability to also build solutions on those data streams. It's an incredibly exciting time. >> I mean, it's mind boggling to just think about how we live our lives in our cities. I can call the police department, the fire department, call for services in the analog world. Imagine video chat. Is that going to go to the certain departments? So how people engage, which side of the street do the cars drive on, who decides all that? And this is kind of how big this is. It's mind blowing. >> Well, it is big, and I'm going to answer that in two ways. Yes, the way that we did things before is changing and it's changing rapidly. To your 911 reference, I don't know, does it have to be a video engagement? Or through video are we actually capturing real-time that there's an incident that the fire department or an ambulance or police need to be dispatched. Where no phone call actually needs to be made. >> Real-time analytics. >> Yeah. >> Predicted, prescriptive analytics could come to the table. >> Yeah, absolutely. And so we're already seeing examples of that, where that's happening today. What we're not seeing happening at scale, but I think we will see it happening at scale, all of those early adopters they had to figure it out on their own. But now we have blueprints, we have frameworks that we can share with other cities where they will be able to do it much more quickly. >> All right, what project really stands out for you, in all the things you're looking at, in the Public Sector because there's so much going on that you guys are doing I mean, props to Intel love what they're doing. The AI mission really puts a vision in place but also it's reality now with machine learning. What projects stand out for you that you see as real innovative, collaborative between Intel and AWS? >> Yeah, so we did a project with AWS where we, essentially, created a competition for new ideas to be able to come forward, and out of that what we've seen is some cities really doing some innovative things, just taking those first steps. What that does for us is it gives us a broader view than we would be able to get on our own. But some of that's basic. Say exciting stuff, we have exciting examples, the kiosks on the street corners in New York are an exciting example. What we see some of the universities doing, I think, is really exciting. Universities around the world have an issue with student retention. Where they just experience high drop out rates at the end of the freshman year and the end of the sophomore year. The challenge is how do you identify a student at risk? Well, automate attendance and you can now see are students actually attending classes. Or are they skipping class? Start using sensors and beacons on the campus and you can actually detect what those student patterns are and you just might need to have a counselor step in or a professor step in and really sit down with them and walk them through it. >> Use the IOT example, humans are things too, right? I mean, wearables, they got all kinds of sensors that could be even on-person device too. Absolutely, we have been working with the University of Texas Arlington, exactly, on that project. Through a sensor you can actually capture the emotional state of student. Are they highly stressed? And should that be, again, an environment where-- >> Explain how. How does that work? >> Through body temperature and -- >> So biometrics being measured. >> Yeah. >> Body temperature, respiration rates, all those kinds of things. >> Mental health is a huge issue in colleges and universities around the pressure. >> You can see that idea from a health perspective, strep throat, right? >> Sure. >> It's like the freshman plague. Every freshman gets strep throat. But if you could identify anxiety as it's being formulated before it manifests itself in academic performance, you could treat that. >> Sure, and now you combine that with capturing data from the student cafeteria or dorms of what are they're eating patterns, what are they're sleeping patterns? Are they actually getting enough sleep? So you get a much more holistic view of the student. And we have to be careful here, right, because-- >> There's privacy concerns. >> Right, there's absolutely privacy and security concerns. And anyone who engages in these projects, heightened awareness of that. So it really is about quality of life and how do you create a better educational experience, not create anything that's threatening, but it becomes a much more personalized learning experience. >> The convergence and the conflicts between IOT and cloud and processing power and software, it's interesting, I was looking on prior to the show coming in I saw on your website at Intel Farmers in America. And then on Amazon's site there's a City on the Cloud. Can you take a minute and explain those projects. I think they're both Intel and AWS collaborations. Can you just take a minute to explain the City on the Cloud and the Farmers of America, what's the big aha there? >> So it's a three year project that we've been working on in collaboration with AWS, and the whole idea was for us to be able to identify some innovative ideas within the space because it is still a new area. How do we, essentially, give some of these entrepreneurs and innovative people a chance to be able to bring their idea into fruition? And so agriculture and Farmers America's a great example because that data is being collected in terms of weather patterns and how they can now, essentially, access that data to be able to plan differently what they're doing as well as better enable them to share with others what they're finding as they're making changes too. >> The farm tech has been hot on the D.C. community, certainly, in the Silicon Valley seeing people doing farm tech. Farm tech is one of those things, agriculture's a huge area that health implications too. People are interested in automating a lot of things and bringing tech there. And then also healthcare is a factor too. One of the areas is education but healthcare is another one that you guys are, what's the new thing in there that you guys are doing in healthcare? >> Yeah, we're doing quite a bit in healthcare around the world, and if you really think about it the challenge with healthcare is that your records are typically with your doctor or with your hospital. They're not always shared and they don't move with you when you travel. And so the first opportunity is how does that data actually become standardized so that it can actually be shared. But the other opportunity in healthcare is for those CTO's and CIO's to start using data very differently, to understand the patterns of what's happening within their hospitals. And you're earlier reference, John, to strep throat within a campus, how do you, essentially, start tracking that there's a trend and that there's something that you could potentially deal with much more quickly once you have the insights to it. >> All right, so take a minute as end this segment here, I want to get your thoughts on, give us a taste and showcase some of the Intel speeds and feeds, some of the tech, what's under the hood, what's coming out of Intel that's powering all of this because remember we're all driving the self-driving digital tooling out there. It's all powered by the Zeons, all kinds of cool stuff. What's the latest state-of-the-art that you got from Intel that you guys are bringing to the market in the Public Sector? >> Yeah, well, thank you for that question. I don't normally get it. >> John loves it. He's a speed and feed guy. >> To get too much feedback. Too geeky. >> Well, your earlier question was around AI and machine learning and for us that's the zonify. And if you look at the power of zonify it's, essentially, three times the teraflops of the largest super computer that existed 20 years ago, in a single processor. And so for us it's an opportunity to then really be able to advance and accelerate what's happening with artificial intelligence as well as machine learning. >> Well, it's an exciting new world. Obviously with a realm that goes healthcare to ag, to education, to government with Intel very much at the center of that. John, thanks for being with us. >> It was great to be here. >> We appreciate the time on theCUBE. We look forward to having you back. We'll continue our coverage live here from the AWS Public Sector Summit here on theCUBE. Back with more in just a bit. (upbeat music)

>> Announcer: Live from the Washington D.C. It's the CUBE covering AWS Public Sector Summit 2017. Brought to you be Amazon Web Services and it's partner Ecosystem. >> Welcome back here on the CUBE as we continue our coverage of the AWS Public Sector Summit 2017. Along with John Furrier, I'm John Walls we're in the Walter E. Washington Convention Center. For the sixth show, of almost 10,000 attending. somewhere in that ball park. It's come along way in a very short period of time. AWS has a lot to feel good about. >> It's a good reinvent for Public Sector. It's huge. >> And not just to think about government. We think about education as well. We had a couple of segments about that. We are going to talk about government with our next guest. If we get a name wrong on this segment shame on us, John Stephenson with John Walls and John Furrier. John's a senior manage at Public Policy at AWS. John nice to have you with us we appreciate that. >> Thank you for having me. >> Thank you for your time. So your focus primarily state and local governments. What exactly as the conduit do you want to bring to their table from of AWS? >> Well I'm Senior Manager, of Public Policy for Amazon Web Services in the Eastern United States. I handle state and local government relations in the Eastern U.S. from Texas to Main and then South Florida. I help our business and also our partners in government to understand how public policy can enable cloud and modern technologies. It's a very exciting place to be because there's a lot going on in state and local government when it comes to IT modernization and cloud right now. >> I think about government too. There's that big umbrella we can put on (mumbles). It's public service. But federal government has a place and state and local. I think much more responsive, much more grass roots. So those applications are much more immediate. I would think. Does that come into play with you? That you need to be a little more nimble. Or you're helping your clients to be a litter more nimble or more agile? >> Absolutely, if you look at what state and local governments are doing. Essential services from delivering health care to taking out the trash, providing public safety, providing education it's handled at the state and local government. If you look at the number of times you touch government. It is state and local. Think about renewing a driver license. Think about paying a parking ticket. Think about getting a zoning permit for remodeling of your house. You're dealing with state and local government. The demands on state and local government are also higher. They're holding more data on citizens than the Federal government. They are undergoing massive population changes. It's either positive or negative. State and local governments which have budget constraints. Need to be more nimble, more innovative. They are natural early adopters and first movers of technology. If you look at some of the more exciting things about technology that are happening in the government space. I think it's happening at state and local government in the U.S. >> Smart cities by the way is the hottest trend. Intel one of the key sponsors of this show. We had two folks on here. AI is going to be a real nice gateway for some of these innovations on their side. They have 5G opportunities. They have transformation. Lot of technology going on under the covers, under the hood if you will. One of them is smart cities and that is something that is just mind blowing. Just from a technology stand point but even more mind blowing from a policy perspective. Who sets the rules? What side does the car run on? What digital services are the citizens going to get? Who pays for them? What does the government do? What does the private sector do? These are issues that need to be grappled with. Your thoughts on how you guys look at that? And how are your constituents engaging with that and thinking about it? >> I'm glad you mentioned smart cities because there's a lot of activity going on in that space. If you look at the internet of things technologies alone. One of the enablers of smart cities. As many as 53% of state and local government according to NASCIO are looking at these technologies or deploying them. It's great to see that because that will enable a lot of potential from smarter government services, better government services, improving service delivery and improving constituent fulfillment. Which resonates with us, as part of Amazon. We're all about our customer fulfillment and delighting our customer. >> Lower prices and ship things faster that's Bezos' ethos. That's Amazon's culture. >> Exactly. >> And you could deliver services any digital service. >> Everything we do starts with the customer and we work backwards. In the conversations I've had with policy makers in the state and local governments. They see smart cities as a way to do that. Everything from improving transportation in places like Columbus, Ohio. To improving connectivity and engagement with the internet in places Kansas City, Missouri. And new ways of delivering services in places like New York and Los Angeles. It's very exciting stuff. Policy makers are coming to us and others in the industry. What are the policies? What are the best practices that can enable these technologies? We've been working with them. Providing information on what we're seeing around the world. How open data can be made (mumbles). How security and compliance can be built into applications. And we're happy to provide that because we know from working in the cloud ourselves. The potential that's there for state and local government. >> You want to foster innovation but at the same time you don't want to create this restrictive environment. Or have legacy be the baggage that holds things back. In fact you look at some of the best smart cities implementation. It's Singapore. It's Dubai. It's areas all over the world. In some cases it didn't have real strong infrastructure. So now come back to your role. As you look at the U.S. which has great infrastructure. Except for broadband connectivity, we'd be faster. They have some pre-existing conditions. They're under pressure. The cloud is a prefect vehicle for them. Because they can come in with their existing stuff. Get apps and services online quicker. How are you dealing with the challenge of? OK, calm down we're not going to take over the world. No, skynet's not coming. You know terminator reference. That's a concern, privacy. Lot of in policy issues, to be dealt with. How do you handle those? >> I think with any policy issue. I've been in public policy for a while now. It really starts with education. Understanding in really simple layman's terms. What the cloud is. And what it is not. It is a very transformative technology. It is not an end all one size fits all technology. What we've done is help educate policy makers by understanding the potential of cloud. What it can do in terms of cost savings, improved security, and being more agile. And to tell that story, we don't use PowerPoints at Amazon. We're not coming in and giving PowerPoint presentations. >> Good ole flesh pounding, hand shakes, and hit the streets. >> We'll more importantly it's sharing the customer's stories We're talking with them about what's happening at the New York City Department of Transportation. We're talking with them about what's happening at the city of Los Angeles with their emergency operation center. About how cities are using cloud technologies to deliver far superior products and services faster. >> So what is New York doing and what is L.A. doing specifically? >> New York city they have their iRide application to help citizens get from one point to the other much more quickly and safely as part of their Vision Zero campaign. Anyone who's been in New York, and I've been in New York quite a few times. Knows that traffic and be a real pain getting from part of Manhattan to the other. So what iRide does, is it helps people navigate Manhattan and the other boroughs much more quickly and efficiently using all the modes of transportation available to them. The city of New York was able to deploy that much more quickly, to many more people. They're able to update it, keep it secure thanks to cloud technology offered by AWS. The city of Los Angeles. They face cyber attacks everyday. Then there are the huge cost of maintaining that security. But with cloud they're able to build out event management systems and integrate those with their Homeland Security technologies and practices. And to be able to do it for a fraction of the cost using traditional systems, traditional IT, and traditional practices. It's very exciting. Suddenly local government can move at the speed and agility of a startup. Which has made Amazon very innovative. Last year we launched over a thousand new services and features. Local governments are seeing that. They want to be more like us and others in the industry. That are using cloud to deliver new products and services. And be better at their job. >> And the education, I say it probably patience in the educational role. You think about just the civil liberties of the citizens. That's really job one. Because I think most people get spooked. Whoa all this surveillance. The thing about it, just watching Patriots Day with my family. You know the Boston bombing, Boston strong with Mark Wahlberg. These things actually happen all the time. And we take for granted the some of the things we have in the surveillance community for the kinds of data that's out there. The same time that's the balance. Can you bring me value with my liberties. It's the same compliance scheme. Same governance game. This is the public sector. >> Well, that's where I think cloud has a great story to tell With cloud you get the benefits of economies of scale. Of Amazon with security and also with privacy. We have multiple compliance frameworks. Everything from HIPPA, FERPA, CJIS, Criminal Justice Information Systems. We are zealous guardians of security and our customer's privacy. We don't look at data. We don't share data about with out our customer's permission. We have very strong safeguards. That's why if you look a the customer base of Amazon from banks to government agencies, health care companies. Even companies like Netflix and you would think they're a competitor of ours. They're running their IT in AWS. They trust us even though with Amazon video and Amazon prime. You would think they're a competitor. But they've put that level of trust in us and our systems and our practices that they can put their data there. And we're hearing it from customer after customer. That they feel more safer and more secure with their data in the cloud offered by AWS. And we've shared that with government officials. And they take great comfort in those statements. >> You hit on something earlier. When you said that state governments and local governments have more data at their disposal than the federal government has about their consumers. Because of that, how much higher do find their concerns to be, in terms of cyber security, in terms of hack proof secured networks and systems as opposed to what might happen at the federal level. Cause we think federal. We think big. About what happened with the U.S. government's payment systems last year OPM. State and local they've got a lot more data they're protecting >> I've had a great opportunity in my current job to talk with a lot of IT officials and policy makers in the state. And, often times a meeting will start. And they'll say I've read about this. I've heard about this. And we're often able to say that's not an issue with the cloud offered the AWS. Or that's something we've already addressed through our security and compliance frame works. For example, I was in one meeting and a state policy maker asked me, well what do you do about HIPPA compliance. We have HIPPA compliance in AWS. And then he tried to ask questions, well what about this, what about that. And each time our team was able to tell the state policy maker. We meet that. We exceed that. We actually help write the standard for that compliance frame work. What we've been able to show that policy maker and others. The cloud just offers a far superior security posture than what they can do on their own. It's taken some time because the cloud is new. And as we like to say, it's still day one in this field. But we are very confident as word gets out. More and more people will be trusting particularly in state government their data to the cloud. Because of the superiority it offers on so many different levels. >> Well certainly the words getting out. This event here is just as big as it's ever been (mumbles). Use to be a little summit, now it's grown. There's a lot of interest. >> It's very exciting for me. I've been to reinvent now twice. And this is just so delightful to see so many people from government from the U.S. from internationally here to learn about the cloud share their stories. It's really inspirational to see what's possible. >> That's a testament to Teresa Carlson. Who was just years ago knocking on doors. That was before cloud was cloud. Now it's just come a long way. Congratulations to the whole team. >> Thank you. It's really to delightful to see. And I can't wait to see what's in store for next year and after that. >> We still got a little bit here to go John Don't kick us out. John Stephenson, Public Policy at AWS. Thanks for being with us we appreciate that. >> Thank you. >> Thank you. With John Furrier, I'm John Walls and we'll be back with more here on the CUBE from Washington D.C. right after this. (upbeat music)

(theCUBE theme music) >> Narrator: Live from Washington D.C. It's theCUBE, covering AWS Public Sector Summit 2017. Brought to you by Amazon Web Services and its partner ecosystem. >> Welcome back here to the show floor at AWS Public Sector Summit 2017. Along with John Furrier, I'm John Walls. Glad to have you here on theCUBE as we continue our coverage here live from the nation's capital. Joining us now from Enlighten IT Consulting is John Eubank IV, Director of Program Management Office. John, thanks for joining us here on theCUBE, a CUBE rookie, I believe, is that correct? >> Yes, sir, yeah, thanks for the invite. >> Nice to break the maiden, good to have you aboard here. First off, tell us a little bit about your consulting firm for our viewers at home, to give an idea about your frame and why you're here at AWS. >> Absolutely, so we're a big data consulting company focused on cyber security solutions for the DOD IC community. What we jumped into about three years ago was a partnership with AWS. And seeing, just the volume, the velocity of data coming out of the DOD, that those on-premise server farms could not keep up, could not support it with the power, space and cooling needs. So we partnered with AWS and over the last three years we've been migrating our customers up to GovCloud, specifically. >> So what are you doing then for DOD specifically, then? When you said you solve problems, right? They've got reams and reams of data, trying to help them manage that process a little bit better, but, you know, drill down a little bit more specifically what you're doing for DOD. >> Absolutely, so we developed a proprietary technology called the Rapid Analytic Deployment and Management Framework, RADMF, it's available on RADMF.com, R A D M F dot com. >> John Walls: True marketer. >> Yeah, true marketer at heart. So that's our, sort of governance framework for DOD applications that want to move to the cloud. It automates the deployment process to get 'em out of their existing systems up to the cloud. One of the real problems inside the DOD that we've encountered is the disparate data sets to enable effective analytics when it comes to cyber security solutions. So, I like to think back to the day one conversation about, sort of the data swamp, not the data lake. That's exactly what we have inside the DOD. There's so many home-built sensors, paired with COT sensors, that it's created this absolute mess, or nightmare of data. That swamp needs to be drained. It needs to be, sort of refined in a way that we can call it a data lake, something understandable that people can-- >> I hate the term data lake, I, you've been listening, I, John knows I hate the term data lake. Love the term data swamp, because it illustrates exactly that, there is, if you don't watch the data, and don't share it, it's just stagnant, and it turns into a swamp. And I think, this is a huge issue. >> John Eubank IV: Absolutely correct. >> So I want you to just double down on that, just give some color. Is it the volume of the data, is it the lack of sharing, both? (laughs) >> It's really every, it's everything under the sun, there's, you know, sharing issues all across the federal government right now and who can see what data, Navy doesn't want to share with Army, inside the IC-- >> John Furrier: Well that'll never happen. >> Agencies don't want to share with each other. (laughs) I think we're, we're breaking down those walls. We're seeing that, when it comes to cyber security, no one person can defend an entire nation. No one agency can defend an entire nation on their own. It has to be a collaborative solution. It has to be a team effort. Navy, Army, Air Force, IC, etc., have to work together, in tendem, in partnership, if we're ever going to just, defend our nation from cyber hackers. >> I want to ask you a philosophical question, because, you know, as someone who's been online all my life, computer science, you've seen, there's always the notion of trolling, the notion of online message boards, back in the day when I was running, is now main stream now, >> John Eubank IV: Right. >> I mean people trolling each other on Twitter, for crying out loud, main stream. So, the culture of digital has an ethos, and open source is a big driver on that cyber security, there's a huge ethos of sharing, and it's kind of an honor among practitioners. >> John Eubank IV: Mm-hmm. 'cause they know how big the threat is. How is that evolving? Because this seems to highlight, your point about sharing, that it's, the digital world's different than the analog world, and some of the practices that are getting traction can be doubled-down on. So everyone's trying to figure out what's, what should be double-down on, and what are the good practices from the bad? Can you just share some cultural... >> Well, I think you hit the nail on the head with the open source model there. That is the key right here. It's not even within the government we need to share. It's industry and government, in partnership, need to approach these problem sets together and work on 'em as one cohesive body. So, for example, our company, our platform, it's entirely an open source platform. It's government-owned solution. We don't sell, it's the big data platform, it's provided by DISA right now. We don't sell that product. It's available to any government agency that wants it for free. We have 1500 different software developers and engineers from across the government community that collaborate together to evolve that platform. And that's really the only way we're going to make a significan difference right now. >> That creativity that could come out of this new process that you're referring to, I'm just kind of thinking out loud here on theCUBE, is interesting because you think about all those people on Twitch. >> John Eubank IV: Uh-huh. >> 34 million, I think, a day or whatever the big number, it's a huge number. Those idle gamers could be actually collaborating on a core problem that could be fun. So if you look at a crowd sourcing model of attacking data, this is kind of a whole new mindset of culture. To me, this is the kind of doors that open up when you start thinking like this model. Because the bad guys are already ahead of the game. I mean, so, how do you, how do you guys talk about that, 'cause you guys have to kind of keep some data masked, and you have to kind of, maybe not expose everything. How do you balance that secretive nature of it, and yet opening it up? >> That's a question that the DHS is struggling with, sort of day in and day out right now. They're going through a couple different iterations of different efforts. There was the ESSA program, there's the Automated Indicator Sharing program going on right now with DHS and some of the IC partners of what do we share with industry, because we're recognizing as a government we can't defend this nation on our own. We need an industry partnership. How do we open that up to the general public of the United States to do that crowd sourced mentality. Threat hunting is a lot of fun if you know what you're doing, and if somebody will guide you down the path, it's an endless world and a need for threat analysts to study the data sets that are out there. Indicators of compromise point you in a general direction, but they're a wide-open direction, and... >> They're already playing, it's like lagging in a video game, they're, gamers are already ahead of, the hackers are already ahead of you. Interesting point, Berkeley, University of California at Berkeley has a new program, they call it the quote Navy Seals of cyber. It's an integrated computer science and engineering and Haas business school program. And it's a four-year degree specifically for a special forces kind of thinking. Interdisciplinary, highly data driven, computer science, engineering and business so they can understand, again, hackers run a business model. These are organized units. This is kind of what we're up against. >> Absolutely agree. >> John Furrier: What are your thoughts on that? You think that's the, the right direction, we need more of it? >> We need more of it, absolutely. DOD is moving in the same direction with the cyber protection teams or CPTs. They're beginning to do sort of the same formal training models for the soldiers. Unfortunately, right now a lot of the cyber protection teams are just scavenged resources from other branches of the military. So you have guys in EOD that are now transitioning into cyber, and they're going from diffusing bombs to diffusing cyber threats. It's a totally different scenario and use case, and it's a tough struggle to transition into that when your background was diffusing a bomb. >> And you brought up the industry collaboration, talking about private, you know, private sector and public sector. I know, you know, personal experience in the wireless space, there was a lot of desire to share information, but yet there was a congressional reluctance. >> John Eubank IV: Mm-hmm. >> To allow that. For different concerns. Some we thought were very unwarranted at the time. So how do you deal with that, because that's another influence in this, is that you might have willing parties, but you've got another body over here that might not be on board. >> I think we're going to start seeing more of a shift as private industry acknowledges their need for government support and that government collaboration, so data breaches like the Target breach and massive credit card breaches that, you know, these private industries cannot keep up with defending their own network. They need government supoort for defending very large corporations. Walmart, Target, Home Depot, the list goes on of breaches. >> Final question as we wrap up here, but what's the coolest tech that you're seeing that's enabling you to be successful, whether it's cool tech that you're looking at, you're kicking the tires on. From software to Amazon, hardware, what are you seeing that's out there that's really moving the needle and getting people motivated? >> So a surprising thing there, I'm going to say the Snowball Edge. And people go, it's just a data hard drive. Well, not really. It's way more than a data hard drive. So when you come to Amazon you think enterprise solutions, enterprise capabilities. What the Snowball Edge provides is a deployable unit that has processing, compute, storage, etc., onboard that you can take into your local networks. They're putting it so you can run any VM you want on the Snowball Edge. What we're doing is we're taking that inside DOD tactical spaces that don't have connections to the internet. We're able to do computation analytics on threats facing that local regional onclave using a hard drive. It's really cool technology that hasn't been fully explored, but that's uh, that's where we're-- >> You can tell you're excited about it. Your eyes light up, you got a big smile on your face. >> Drove the new Ferrari that came out. >> Yeah, right. >> When I saw it, I just jumped all in. >> John Walls: You loved it, right. >> So, three months ago... >> You knew right away, too. >> Right. >> John Furrier: The big wheel. >> John, thank you for being with us. I think they're going to kick us out of the place, John. >> Hey, they got to unplug us. We're going to go until they unplug us. >> Alright, John, again thanks for being with us. >> Well, thank you guys for your time, much appreciated. >> Thank you for joining us here from Washington, for all of us here at theCUBE, we appreciate you being along for the ride at AWS Public Sector Summit 2017. (theCUBE theme music)

>> Announcer: Live from Washington, D.C., it's theCUBE covering AWS Public Sector Summit 2017. Brought to you by Amazon Web Services and it's partner ecosystem. >> Welcome back, live here on theCUBE along with John Furrier, I'm John Walls. Welcome to AWS Public Sector Summit 2017. Again, live from Washington, D.C., your nation's capital, our nation's capital. With us now is our host for the week, puts on one heck of a show, I'm want to tell you, 10,000 strong here, jammed into the Washington Convention Center, Theresa Carlson from World Wide Public Sector. Nice to have you here, Theresa. >> Hi, good afternoon. >> Thanks for joining us. >> Love theCUBE and thank you for being here with us today. >> Absolutely. >> All week in fact. >> It's been great, it really has. Let's just talk about the show first off. Way back, six years ago, we could probably get everybody there jammed into our little area here, just about I think. >> Pretty much. >> Hard to do today. >> That's right. >> How do you feel about when you've seen this kind of growth not only of the show, but in your sector in general? >> I think at AWS we're humbled and excited and, on a personal level because I was sort of given the charge of go create this Public Sector business world-wide, I'm blown away, I pinch myself every time because you did hear my story. The first event, we had about 50 people in the basement of some hotel. And then, we're like, okay. And today, 10,000 people. Last year we had it at the Marriott Wardman Park and we shut down Connecticut Avenue so we knew we needed to make a change. (laughing) But it's great, this is really about our customers and partners. This is really for them. It's for them to make connections, share, and the whole theme of this is superheroes and they are our superheroes. >> One of the heroes you had on the stage today, John Edwards from the CIA, one of your poster-children if you will for great success and that kind of collaboration, said something to the effect of quote, "The best decision we ever made at the CIA "was engaging with AWS in that partnership." When you hear something like that from such a treasured partner, you got to feel pretty good. >> You just have to drop the microphone, boom, and you're sort of done. They are doing amazing work and their innovation levels are really leading, I would say, in the US Public Sector for sure and also, not just in US Public Sector but around the world. Their efforts of what they're doing and the scale and reach at which they're doing it so that's pretty cool. >> John, you've talked about the CIA moment, I'd like to hear the story, share with Theresa. >> Oh, you're going to steal my thunder here? >> No, I'm setting you up. That's what a good partner does. It's all yours. >> Well, John, we've talked multiple times already so I'll say it for the third time. The shot heard around the cloud was my definition of seminal moment, in big mega-trends there's always a moment. It was when Obama tweeted, Twitter grew, plane landing on the Hudson, there's always a seminal moment in major trends that make or break companies. For you guys, it was the CIA. Since then, it's just been a massive growth for you guys. That deal was interesting because it validated Shadow IT, validated the cloud, and it also unseated IBM, the behemoth sales organization that owned the account. In a way, a lot of things lined up. Take us through what's happened then, and since then to now. >> Well, you saw between yesterday at Werner Vogels' keynote and my keynote this morning, just the breadth and depth of the type of customers we have. Everything from the UK government, GCHQ, the Department of Justice with the IT in the UK, to the centers for Medicare for HHS, to amazing educational companies, Cal. Polytech., Australian Tax Office. That's just the breadth and depth of the type of customers we have and all of their stories were impactful, every story is impactful in their own way and across whatever sector they have. That really just tells you that the type of workloads that people are running has evolved because I remember in the early days, when you and I first talked, we talked about what are the kind of workloads and we were talking a little bit about website hosting. That's, of course, really evolved into things like machine learning, artificial intelligence, a massive scale of applications. >> Five or six years ago when we first chatted at re:Invent, it's interesting 'cause now this is the size of re:Invent what it was then so you're on a same trajectory from a show size. Again, validation to the growth in Public Sector. But I was complimenting you on our opening today, saying that you're tenacious because we've talked early days, it was a slog in the early days to get going in the cloud, you were knocking on a lot of doors, convincing people, hey, the future's going to look his way and I don't want to say they slammed the proverbial door in your face but it was more of, woah, they don't believe the cloud is ever going to happen for the government. Share some of those stories because now, looking back, obviously the world has changed. >> It has and, in fact, it's changed in many aspects of it, from policy makers, which I think would be great for you all to have on here sometime to get their perspective on cloud, but policy makers who are now thinking about, we just had a new modernization of IT mandate come out in the US Federal Government where they're going to give millions and millions of dollars toward the modernization of IT for US Government agencies which is going to be huge. That's the first time that's ever happened. To an executive order around cyber-security which is pretty much mandated to look at cloud and how you use it. You're seeing thing like that to even how grants are given where it used to be an old-school model of hardware only to now use cloud. Those ideas and aspects of how individuals are using IT but also just the procurements that are coming out. The buying vehicles that you're seeing come out of government, almost all of them have cloud now. >> John and I were talking about D.C. and the political climate. Obviously, we always talk about it on my show, comment on that. But, interesting, theCUBE, we could do damage here in D.C.. So much target-rich environment for content but more than ever, to me, is the tech scene here is really intrinsically different. For example, this is not a shiny new toy kind of trend, it is a fundamental transformation of the business model. What's interesting to me is, again, since the CIA shot heard around the cloud moment, you've seen a real shift in operating model. So the question I have for you, Theresa, if you can comment on this is: how has that changed? How has the procuring of technology changed? How has he human side of it changed? Because people want to do a good job, they're just on minicomputers and mainframes from the old days with small incremental improvement over the years in IT but now to a fundamental, agile, there's going to be more apps, more action. >> You said something really important just a moment ago, this is a different kind of group than you'll get in Silicon Valley and it is but it's very enterprise. Everybody you see here, every project they work on, we're talking DoD, the enterprise of enterprises. They have really challenging and tough problems to solve every day. How that's changed, in the old days here in government, they know how to write acquisitions for a missile or a tank or something really big in IT. What's changing is their ability to write acquisitions for agile IT, things like cloud utility based models, moving fast, flywheel approach to IT acquisitions. That's what's changing, that kind of acquisition model. Also, you're seeing the system integrator community here change. Where they were, what I call, body shops to do a lot of these projects, they're having to evolve their IT skills, they're getting much more certified in areas of AWS, at the system admin to certified solution architects at the highest level, to really roll these projects out. So training, education, the type of acquisition, and how they're doing it. >> What happened in terms of paradigm shift, mindset? Something had to happen 'cause you brought a vision to the table but somebody had to buy it. Usually, when we talk about legacy systems, it was a legacy mindset too, resistant, reluctant, cautious, all those things. >> Theresa: Well, everything gets thrown out. >> What happened? Where did it tip the other way? Where did it go? >> I think, over time, it's different parts of the government but culture is the hardest thing to, always, change. Other elements of any changes, you get there, but culture is fundamentally the hardest thing. You're seeing that. You've always heard us say, you can't fight gravity, and cloud is the new normal. That's for the whole culture. People are like, I cannot do my project anymore without the use of cloud computing. >> We also have a saying, you can't fight fashion either, and sometimes being in fashion is what the trends are going on. So I got to ask you, what is the fashion statement in cloud these days with your customers? Is it, you mentioned there, moving much down in the workload, is it multi-cloud? Is it analytics? Where's the fashionable, cool action right now? >> I think, here, right now, the cool thing that people really are talking about are artificial intelligence and machine learning, how they take advantage of that. You heard a lot about recognition yesterday, Poly and Lex, these new tools how they are so differentiating anything that they can possibly develop quickly. It's those kind of tools that really we're hearing and of course, IOT for state and local is a big deal. >> I got to ask you the hard question, I always ask Andy a hard question too, if he's watching, you're going to get this one probably at re:Invent. Amazon is a devops culture, you ship code fast and you make all these updates and it's moving very, very fast. One of the things that you guys have done well, but I still think you need some work to do in terms of critical analysis, is getting the releases out that are on public cloud into the GovCloud. You guys have shortened that down to less than a year on most things. You got the east region now rolled out so full disaster recovery but government has always been lagging behind most commercial. How are you guys shrinking that window? When do you see the day when push button commercial, GovCloud are all lockstep and pushing code to both clouds? >> We could do that today but there's a couple of big differentiators that are important for the GovCloud. That is it requires US citizenship, which as you know, we've talked about the challenges of technology and skills. That's just out there, right? At Amazon Web Services, we're a very diverse company, a group of individuals that do our coding and development, and not all of them are US citizens. So for these two clouds, you have to be a US citizen so that is an inhibitor. >> In terms of developers? In terms of building the product? >> Not building but the management aspect. Because of their design, we have multiple individuals managing multiple clouds, right? Now, with us, it's about getting that scale going, that flywheel for us. >> So now it's going to be managed in the USA versus made in the USA with everything as a service. >> Yeah, it is. For us, it's about making sure, number one, we can roll them out, but secondly, we do not want to roll services into those clouds unless they are critical. We are moving a lot faster, we rolled in a lot more services, and the other cool thing is we're starting to do some unique things for our GovCloud regions which, maybe the next time, we can talk a little bit more about those things. >> Final question for me, and let John jump in, the CIA has got this devops factory thing, I want you to talk about it because I think it points to the trend that's encouraging to me at least 'cause I'm skeptical on government, as you know. But this is a full transformation shift on how they do development. Talk about these 4000 developers that got rid of their development workstations, are now doing cloud, and the question is, who else is doing it? Is this a trend that you see happening across other agencies? >> The reason that's really important, I know you know, in the old-school model, you waited forever to provision anything, even just to do development, and you heard John talk about that. That's what he meant on this sort of workstation, this long period of time it took for them to do any kind of development. Now, what they do is they just use any move they have and they go and they provision the cloud like that. Then, they can also not just do that, they can create armies of cores or Amazon machine images so they have super-repeatable tools. Think about that. When you have these super-repeatable tools sitting in the cloud, that you can just pull down these machine images and begin to create both code and development and build off those building blocks, you move so much faster than you did in the past. So that's sort of a big trend, I would say they're definitely leading it. But other key groups are NASA, HHS, Department of Justice. Those are some of the key, big groups that we're seeing really do a lot changes in their dev. >> I got to ask you about the-- >> Oh, I have to say DHS, also DHS on customs and border patrols, they're doing the same, really innovators. >> One of the things that's happening which I'm intrigued by is the whole digital transformation in our culture, right, society. Certainly, the Federal Government wants to take care of the civil liberties of the citizens. So it's not a privacy question, it's more about where smart cities is going. We're starting to see, I call, the digital parks, if you will, where you're starting to see a digital park go into Yosemite and camping out and using pristine resources and enjoying them. There's a demand for citizens to democratize resources available to them, supercomputing or datasets, what's your philosophy on that? What is Amazon doing to facilitate and accelerate the citizen's value of technology so it can be in the hands of anyone? >> I love that question because I'll tell you, at the heart of our business is what we call citizen service, paving the way for disruptive innovation, making the world a better place. That's through citizen's services and they're access. For us, we have multiple things. Everything from our dataset program, where we fund multiple datasets that we put up on the cloud and let everybody take advantage of them, from the individual student to the researcher, for no fee. >> John F.: You pick up the cost on that? >> We do, we fund, we put those datasets in completely, we allow them to go and explore and use. The only time they would ever pay is if they go off and start creating their own systems. The most highly curated datasets up there right now are pretty much on AWS. You heard me talk about the earth, through AWS Earth that we have that shows the earth. We have weather datasets, cancer datasets, we're working with so many groups, genomic, phenotypes, genomes of rice, the rice genome that we've done. >> So this is something that you see that you're behind, >> Oh, completely. >> you're passionate about and will continue to do? >> Because you never know when that individual student or small community school is out there and they can access tools that they never could've accessed before. The training and education, that creativity of the mind, we need to open that up to everybody and we fundamentally believe that cloud is a huge opportunity for that. You heard me tell the 1000 genomes story in the past of where took that cancer dataset or that genome dataset from NIH, put it into AWS for the first time, the first week we put it up we had 3200 new researchers crowdsource on that dataset. That was the first time, that I know of, that anyone had put up a major dataset for researchers. >> And the scale, certainly, is a great resource. And smart cities is an interesting area. I want to get your thoughts on your relationship with Intel. They have 5G coming out, they have a full network transformation, you're going to have autonomous vehicles out there, you're going to have all kinds of digital. How are you guys planning on powering the cloud and what's the role that Intel will play with you guys in the relationship? >> Of course, serverless computing comes into play significantly in areas like that because you want to create efficiencies, even in the cloud, we're all about that. People have always said, oh, AWS won't do that 'cause that's disrupting themselves. We're okay with disrupting ourselves if it's the right thing. We also don't want to hog resourcing of these tools that aren't necessary. So when it comes to devices like that and IOT, you need very efficient computing and you need tools that allow that efficient computing to both scale but not over-resource things. You'll see us continue to have models like that around IOT, or lambda, or serverless computing and how we access and make sure that those resources are used appropriately. >> We're almost out of time so I'd like to shift over if we can. Really impressed with the NGO work, the non-profit work as well and your work in the education space. Just talk about the nuance, differences between working with those particular constituents in the customer base, what you've learned and the kind of work you're providing in those silos right now. >> They are amazing, they are so frugal with their resources and it makes you hungry to really want to go out and help their mission because what you will find when you go meet with a lot of these not-for-profits, they are doing some of the most amazing work that even many people have really not heard of and they're being so frugal with how they resource and drive IT. There's a program called Feed the World and I met the developer of this and it's like two people. They've fed millions of people around the world with like three developers and creating an app and doing great work. To everything from like the American Heart Association that has a mission, literally, of stopping heart disease which is our number one killer around the world. When you meet them and you see the things they're doing and how they are using cloud computing to change and forward their mission. You heard us talk about human trafficking, it's a horrible, misunderstood environment out there that more of us need to be informed on and help with but computing can be a complete differentiator for them, cloud computing. We give millions of dollars of grants away, not just give away, we help them. We help them with the technical resourcing, how they're efficient, and we work really hard to try to help forward their mission and get the word out. It's humbling and it's really nice to feel that you're not only doing things for big governments but you also can help that individual not-for-profit that has a mission that's really important to not only them but groups in the world. >> It's a different level of citizen service, right? I mean, ocean conservancy this morning, talking about that and tidal change. >> What's the biggest thing that, in your mind, personal question, obviously you've been through from the beginning to now, a lot more growth ahead of you. I'm speculating that AWS Public Sector, although you won't disclose the numbers, I'll find a number out there. It's big, you guys could run the table and take a big share, similar to what you've done with startup and now enterprise market. Do you have a pinch-me moment where you go, where are we? Where are you on that spectrum of self-awareness of what's actually happening to you and this world and your team? In Public Sector, we operate just like all of AWS and all of Amazon. We really have treated this business like a startup and I create new teams just like everybody else does. I make them frugal and small and I say go do this. I will tell you, I don't even think about it because we are just scratching the surface, we are just getting going, and today we have customers in 155 countries and I have employees in about 25 countries now. Seven years ago, that was not the case. When you're moving that fast, you know that you're just getting going and that you have so much more that you can do to help your customers and create a partner ecosystem. It's a mission for us, it really is a mission and my team and myself are really excited, out there every day working to support our customers, to really grow and get them moving faster. We sort of keep pushing them to go faster. We have a long way to go and maybe ask me five years from now, we'll see. >> How about next year? We'll come back, we'll ask you again next year. >> Yeah, maybe I'll know more next year. >> John W.: Theresa, thank you for the time, very generous with your time. I know you have a big schedule over the course of this week so thank you for being here with us once again on theCUBE. >> Thank you. >> Many time CUBE alum, Theresa Carlson from AWS. Back with more here from the AWS Public Sector Summit 2017, Washington, D.C. right after this. (electronic music)

>> Voiceover: Live from Washington D.C., it's theCube, covering AWS Public Sector Summit 2017, brought to you by Amazon Web Services and its partner Ecosystem. >> Good morning, welcome back here on theCube, the Silicon Valley or Siliconangle TV flagship broadcast, here as we continue our coverage live from the Nation's capital, Washington D.C., the AWS Public Sector Summit 2017. I'm John Walls, we're glad to have you hear on theCube along with John Furrier, good morning. >> Morning. >> Good night? >> Great night. I had two great meetings, learned some information, got some exclusive material for a story that has to do with government stuff. >> So you were kind of working then weren't you? >> I'm always working. We're in D.C. I want to put my ear to the ground and bring all these stories back to my show, Silicon Valley Friday Show, which has been on hiatus during the month of May and June for all theCube events. >> Slacker. >> I got some great metadata as they say. (laughter) >> Good about data. >> I went home and watched the Nat's game. That was my big night. Jeff McAllister is with us now, he is the GM of the Americas for Druva and Jeff, glad to have you on theCube, we appreciate the time. >> Oh gee, thank you for the opportunity and it's a pleasure to meet you. >> Alright so you guys are all data, all the time on the Cloud right? >> That's right. >> All about data protection and security, availability. Tell us a little big more just about Druva and then we'll get into maybe your relationship with AWS but first off about you, about Druva. >> I've been fortunate to be with Druva since we really embarked on our enterprise strategy. I've been part of the team that made the investment a couple of years ago to start to pursue FedRAMP and some of the specifications for the Federal Government. And as you know, we are Cloud native. We are for the Cloud and built on the Cloud. We've been a partner with AWS for over eight years now. So we've had a very strong working relationship with them and the opportunity to come and speak here today and with you gentlemen, has really been tremendously exciting and frankly they're absolutely wonderful partners to go to market with. >> Yeah, talk about a minute about how integral that obviously is to your business to have not just a relationship, but to have the relationship that you do with AWS. >> Well, AWS obviously provides a world-class platform on which to build a service like ours. For our customers, it means tremendous levels of security, tremendous data durability, a reliability and availability of that data, but also the idea that many of our customers are very mobile. They have great geographic dispersion among their employees. Their employees are engaging in other parts of the world. So availability of that Cloud and that Cloud infrastructure, in local areas is tremendously important. And for our Federal customers, the certification for ITAR and other things that are specific to that market, having a platform like GovCloud, built specifically to their specifications, to service them, creates great leverage for us and our customers. >> John F.: I mean, eight year relationship, and that's going back. >> Yes it is. >> And they're only 10 years old and they spent their 10th birthday going on their 11th year, just AWS. So, obviously they saw some federal action right away, or public sector action right away. Nature of the Cloud, very friendly to developers back then. But still it was building blocks foundational back then. >> That's right, exactly. >> What's changed? How would you chronicalize that change other than the massive growth we've seen in the market place which we've chronicalized as well but I mean, from your perspective in the public sector, this is on a nice trajectory. >> I've been in the business now for over 30 years. Started out at Data General through Sun Microsystems and I've seen much of the industry change. The one thing that has been very impressive with the public sector, is that the interval in product innovation would come to the public sector a year or two years behind what we saw in the commercial marketplace. That time and space is absolutely shrinking down to nothing. They are pursuing the same business continuity, data transformation issues the Cloud-first strategies that our commercial customers are. And frankly, the government worker today has become more mobile. And the requirements to protect that data and secure it, are at an all-time high. And the AWS platform in combination with what we do, really provides a level of security that is hard to do on your own. >> So yesterday, we talked about a term I coined, or phrase I coined, around the seminal moments in GovCloud's history and really in the Amazon public sector. Is called "the shot heard around the Cloud", and that was the CIA deal where AWS came in and beat IBM, which had a lock-in spec and they're old-school IBM, they know how to sell. The sponsorships, they had everything locked and loaded. Who knows what they were doing, wining and dining. You know how the Federal Government is? >> Jeff: That's right. >> Things were very much picked out, everything's buttoned up and then boom, Shadow IT is happening, Amazon wins. Since then, we've seen a lot of change in how people are securing, how people are deploying. >> Jeff: Right. >> No better example than data protection because there's no wall, there's no firewall. You're in the middle of it. Talk about that dynamic about how the no walls, no perimeter in the Cloud has changed the role of data and data protection. >> Sure. So, gone are the days where we can dictate the device, how somebody wants to work, what solutions they're going to use. Cloud applications like Office 365, Box, Slack, other, have really created an environment where the IT folks, want to stimulate innovation, stimulate the work in places where people want to get done. But then provide the same level of protection and governance that they would on a non-platform solution. So, watching that evolution take place, its really driven us to really have to be mindful that we're in the performance business and with that performance we have to be respectful of the requirements from a security and protection standpoint that our customers call for. FIP certification became fundamental for us being able to service the government. That led us into the pursuit now of FedRAMP, which we're now FedRAMP ready. But all of those things provide the infrastructure to allow them to embrace these new strategies and this digital transformation, be it in my Cloud-first strategy or my mobility strategy, and be able to extend that same level of security that I would need, and provide that flexibility for my users to get their jobs done. >> Yeah and honestly, Cloud native, as you know, we love Cloud native, we've covered it. >> We do too. >> Covered it from day one. (laughs) Cloud-first is kind of like a moniker that people use. >> Sure. >> Kind of an ethos. It's more of a manifesto, it's more agile. But really Amazon has never hidden the ball in the fact what they believe the future will be and that is API economy. And from day one it's all about APIs and they believe that you should have APIs everywhere. The Cloud has no perimeter so that changes the security game. But the one thing that's emerged out of all this, is a new SaaS business model for businesses and government, and federal, and education. So everything's as a service. >> Jeff: Correct. >> That is a huge deal and this is maybe nuanced a bit, but how does public sector turn into a service model with the Cloud? 'Cause that's something that everyone's kind of going at. You have Cloud natives great, we're going to be Cloud natives, check. But really what they're getting to is, everything's as a service. >> Right. It's created a lot of flexibility in the buying process. First of all, you're bringing that elasticity of demand, right? So they are able to embrace the idea that, I only pay for the services I actually consume. So, should I have a movement in employees, should I change in structure, should my usage suddenly spike, I have the ability to adjust on the fly. That's a big part of it. But the other piece of it is that we can deliver our service at a fixed price cost for a certain period of time within that government fiscal year. So not only does it become easy to manage technologically, but from a budget stand point, it makes it a very predictable cost. I'm no longer having an explosion of data that I have to manage and go off books to try and find data to provide those IOPS and storage on sight. I can simply continue to go at the same budget level that I've already set aside. >> One dynamic that has come up while you brought this up, 'cause I think it's relevant to what we were just talking about is, lock-in. Right? I mean the word lock-in has always been vendor lock-in but really that's on one side of the coin. The other side of the coin is user lock-in. So last night, one of my secret meetings I had last night was with a senior government official and we were talking about how, they're all pissed 'cause they got Microsoft Surfaces instead of Macs. They wanted Macs. So they were just handed a bunch of Microsoft Surfaces. No offense Microsoft, I love the Surface personally, but I've got a Mac here. The point is, they didn't want it. >> Jeff: Right. >> It was forced down their throat. >> Let's just shut that for a moment here. (laughs) >> This is the old way. We made a decision, we're going with this product. So this is really the flexibility point is, very interesting, 'cause now with the Cloud, you can actually do these really agile deployments. >> Jeff: Exactly. >> And give people more choice. >> That's right. The time to value on these products, we have a very large defense contractor inside the Beltway. We were able to deploy to 23,000 users worldwide in under six weeks. But we understand that we're in the performance business and the idea that our customers could leave us at any point in time when the term is up, keeps us very conscious of the specifications that they require. And frankly, it requires us to be innovative on their behalf. Certainly taking their feedback, but really starting to anticipate their requirements, so that we continue to earn that business year over year. And frankly, if you want to talk about lock-in, SaaS provides tremendous flexibility to switch when a contractor isn't performing to spec, versus a perpetual license where I'm locked in for the duration. >> And that's a fear obviously that they're going to use their dollars wisely. I want to get you to weigh in on Druva's digital transformation in back of the customer. Obviously you guys are doing well, you're in the sweet spot, data protection is a hot area. It's one of the hottest area no one really kind of looks at, but it's really hot with the Cloud. What impact are you having with customers and how are you rolling out your value proposition to the public sector? What are the key highlights? I mean, how do they work with you? Is it FedRAMP? Is it GovCloud? Just take us through your value proposition with respect to the- >> Our value proposition, I think is fairly unique. So first, we run on the most wildly accepted Cloud platform by the public sector, AWS GovCloud. Without question the market leader there. We bring all of our experience from the commercial marketplace into that same experience on GovCloud. With the added certifications of FIPS, certification 140-2 moderate. Our FedRAMP in process. We're also HIPPA certified so that we have the ability to address HHS and FDA as some of our customers. 'Cause they also process a lot of personal information that is unique to that particular agency. But at the end of the day, the piece that really is most interesting to our public sector customers is, one, this is a very easy service to bring to the Cloud at lower cost and frankly higher value. The plethora of features and the security, the ease of management that we bring, relieving them of having to manage hundreds of terrabytes of data and apps on behalf of this service, is tremendously beneficial. The predictability of the cost year over year, makes it very very easy to manage. But I think the biggest thing that people have come to embrace is that the innovation that takes place in the Cloud comes to market so much faster in the Cloud. Just think of the QA cycles and how they've been reduced 'cause we're QAing for one platform. Being able to consistently, quarter in, quarter out, deliver that additional feature set and additional value, at no additional cost to our customers, is really what they've really gelled around. >> How do you guys handle the certification processes that are going? I'm sure there'll be more. I mean, they're coming. With all the free-flowing data, I'm sure there's going to be a lot of regulations and policies and governance issues. But you've got to move fast. How do you guys move fast to certify? Is there a secret sauce? Is there a secret playbook? How do you guys stay on top of it? 'Cause automations, machine learning, what's the secret sauce? >> You know, I think it's interesting, part of the uniqueness that is Druva I think is, our ability to anticipate market demand. I think we have a very experienced team of individuals. Look at the choice to go to AWS eight years ago. It was unthinkable at that time, but its turned out to be a visionary sort of choice. We identified that FedRAMP and FIPs certification, three or four years ago, was an absolute mandate to play in this marketplace. So we went there way ahead of our success in the market but we saw a very unique opportunity to go there. So I think it's just a tremendously creative group of people. It's a very dynamic marketplace. And it's one that requires a little bravery and a little bit of thinking in advance of the marketplace. I don't know that we have any magic sauce, but so far it's worked pretty well. I think it's worked out alright. >> I always ask just to see. >> Although that's a good question. >> To that point though, eight years ago when you went, it was a leap right? >> It was. >> Big leap. And now here you are 2017, things are rolling along. I imagine your sale or your pitch has taken on a different tone because you have so much proof in the pudding now, right? >> Oh, it does. A long time ago it was strictly backup. We've now moved into governance, e-discovery, the idea of user behavior analysis so I can find anomalies that may occur so that I can avoid Cryptolocker or other sorts of viruses or things that may be able to affect the operation of my customers. All of those things have come into play that weren't there four years ago. So it's really been an advancement of the added services beyond what we just did in backup, that have really kind of driven the business and differentiated us from the market. But it's still kind of fundamentally that idea that I'm going to protect your data, make it available to you and separate now from your device and really help you manage your data wherever you're doing your work. >> I know we're running tight on time, I do want to get one more question in from your perspective because again, present and creation is really a benefit to Druva, congratulations on that. You get to ride the wave and now the wave is bigger and more sets coming in. That's to use the surfing analogy. But talk about the perspective from your personal standpoint, just the changes going on in this marketplace right now. Teresa Carlson, when we were commenting on our opening, how tenacious she's been. She's knocked on a lot of doors. Eight years ago, what the hell's cloud? No one even knew what it was right? And then the shot heard around the Cloud with the CIA deal and just more and more and more in them, this is just a great business opportunity for Amazon Web Services, not just the enterprise, which they're doing well in now. >> Right. >> They own the startup market. This could be, it could have a 90% market share of public sector. >> That's right, that's right. >> John F.: Talk about the change. What's going on? Is it the perfect storm? Is it like right now, what's the progress. >> Well you know, it seems like its a perfect storm but for somebody who's been banging at it for the last four or five years, it seems to be a little bit more evolutionary. But it's interesting, when I started at Druva, if I looked across our opportunities across the Americas. It was fairly evenly split between the idea that I'm going to do this on premise or I'm going to do it in the Cloud. Today, if I look across all o6f North America and all the commercial entities and public sector entities that we're dealing with, we're probably engaged in well over 500 opportunities at any one time, literally less than two, quarter over quarter, is now on premise. People have come to embrace the idea that this is a place where I can conduct business safely and securely. And frankly, for us, you look at that digital transformation or business transformation, we become two really compelling services to start and experiment with moving to the Cloud. So very often, we are the tip of that spear. Lets backup our endpoint devices to the Cloud, let's get out of that business, 'cause we can do it much more effectively with Druva than we can for ourselves at less cost. >> It's almost the reverse of what on prem was. I've had many opportunities where I've bumped into IT practitioners, friends and what not in the industry. "Oh, I forgot to do the backup plan. I got the procurement going on." It's kind of an afterthought, it's been kind of an afterthought. I am oversimplifying but generally, it's not the primary. When you go outside the walls of a company, into the Cloud where there's no perimeter, it's the first conversation. >> That's right. >> So I hear what you're saying and I totally agree. This is unique, it's a complete flip around. >> Well it's amazing. So often, we're backing up server data to the cloud. So now it used to be just backing up to the Cloud. Now it's, I have the application running in the Cloud and I want to back it up and secure it into another Cloud. It's completely morphing into all sorts of interesting places. But the part that's really interesting is that we will bring to our customers disaster recovery, for example. Well that's a service, we turn it on and if you never experience the disaster, you don't pay for it. It just creates a whole new mindset of how we're going to think and how we're going to approach the infrastructure that we're now building. >> No license fee. It's just if you need it, you get whacked on it and you deserve to get whacked on it because you need the service. >> Well, they know what the cost will be. We've set it up for a nominal fee but if you're fortunate enough that you never experience the problem, why should you pay for it. So literally cutting that price in half, removing the requirement of 2XL Servers and 430 tip. >> John F.: It's a new operating model. >> That's right. And the flexibility that it creates to change to your computing requirements is just phenomenal. >> Well, phenomenal, I think would be a way to describe your ascent as well. >> Oh thank you. >> So congratulations on that front. Glad you could be with us Jeff, at the show. Continued success and we hope to see you down the road on theCube. >> John, John, it was a real pleasure. >> John W.: First time right? >> It was, it was, thank you. >> John W.: You're a tour alum now or a Cube alum. (laughs) >> John F.: Cube alumni. >> Good to have you with us. >> Jeff: Thank you, thank you so much. >> Jeff McAllister with Druva. Back with more here from AWS Public Sector Summit 2017 on theCube. You're watching live in Washington D.C..

>> Announcer: Live from Washington D.C., it's the CUBE, covering AWS Public Sector Summit 2017, brought to you by Amazon Web Services and its partner, Ecosystem. >> Well, welcome back to the CUBE here. We are live in Washington D.C., day two of our coverage here at the AWS Public Sector Summit 2017. Again, in Washington D.C., just about a mile and a half or so, about a mile from the White House, conveniently located here in our nation's capitol with John Furrier. I'm John Walls. John, good morning to you, sir. >> Good morning, great day yesterday. A lot of great interviews, thought leaders, inspirational, very informational. And again, the CUBE just doing its thing, our inaugural event, here at Amazon Web Services Public Sector Summit. Our first time here, this is the seventh year of the show. Started out as just a kind of gathering, people coming together. >> Kind of a hope for a gathering too, right? We heard yesterday, guys, "Boy, I hope somebody shows up." Well, we have 10,000 showing up now, so. >> It's still small, but that's a huge number. Some big companies don't even get that many for their annual user customer conference in general. So, 10,000 is certainly a good number. I expect Amazon to continue to blow away their performance and the numbers. I expect this show to be, again, the Amazon re:Invent, which is their big show, as a company. Amazon, which was a re:Invent, which is held in Las Vegas every year and overseas. But this going to be the public sector version: education, government, health, all these different public sector opportunities are ripe for the cloud. And that's really the big story. >> You know, and I think we saw that on the keynotes this morning with Theresa Carlson who's the Vice President of Worldwide Public Sector here for AWS. But she brought out a number of guests, John Edwards being the most prominent, the CIO of the CIA, but also Representative for the Australian Tax Office, Representative for the Ocean Conservancy. She talked about state and local governments. So you hit the nail on the head. We think public sector, I think maybe the presumption is go right to big government. But there are a lot of tentacles, if you will, out there or a lot of segments out there. 22 thousand non-profits, for example, that AWS is now working with. State, local, and federal governments. So they've cast a wide net, and they've caught a lot of fish. >> I mean, yeah, I mean to me this is an interesting time in our lives. What's the famous quote? We live in interesting times? We are living in interesting times, certainly in Washington D.C. here we are feeling it. Obviously, coming from California, I always love to come into D.C. to feel what it's like into the boiling water with Trump in the office and all the disarray in the government. There's a shooting of a Congressman this morning, 50 shots fired at a softball practice. It's insane. And so, there's also change going on at the technology level, but that's changing government and also roles of education and whatnot. So you have this really kind of weird environment like all the evidence of the frog in boiling water. At some point, it doesn't know it's being boiled to death, but that's been the public sector for generations. Really, I think the seminal changeover was mainframes and minicomputers really kind of powered the government, and I think it's been incremental changes. And you've seen IT become what we've seen in the enterprise: an incremental improvement and bolting on some support. Here, we've got wireless. And so, it's kind of moving the ball down the field yard by yard, no major long ball throws to the endzone as we say in football. But now with the cloud, you have an opportunity to take the domain expertise of all the different agencies because they want to do a good job. Their world is changing. You can look no farther than education, higher ed, and even K through 12. I mean, they're dealing with an audience that's grown up with cell phones, mobile phones, smartphones. I mean, they're not phones anymore. They're computers that happen to make phone calls, and half the kids don't even make phone calls anymore, so. >> That's right, half are you kidding? >> It's not even a phone anymore. It's a computer, a camera. >> It's a texting device. >> User experiences are driving this, and it's a forcing function. So all this disarray, all this opportunity, the perfect storm of innovation happening. And I think the cloud enables that. And I think that's part of the reason why Amazon Web Services is, again, feeling the love here because the growth is right there in front of them. >> Now, we're going to have Theresa Carlson on a little bit later on, but I want to just get your take on her. She's taken this from an infancy stage and has just walked it, absolutely, she's amazing. >> Theresa Carlson, we'll have her on. She's been on the CUBE multiple times. We always joke with her when she comes on the CUBE when we're at re:Invent and other places we see her when she comes on. "Hey, we should come to your conference." And so, we're here. But the thing about Theresa Carlson is, she's loved by all of the customers today, and she's very customer-focused. But she's tenacious. She is smart. She's beautiful. She's a hustler. She's great. So she is a great leader, and she's been knocking on doors in this town for years when cloud wasn't cloud yet. And you know, when you're an innovator, pioneer, the door slams in your face, right? So, you know, you've got to have that kind of tenacity to stay on it, and that's what she's done. She's been amazing. I'm a real big fan of hers. I mean, I think she's got some work to do, areas I think that she's got to really expand and go faster with Ecosystem. Some of the case studies are out there to be had. We know for a fact, I mean, and they talked on stage, but there's a lot of smart cities, things going on. There's a ton of transformative Amazon Web Services deals happening, so you want to see more of those, want to see more of them faster. I want to see more peer review. I want to see more case studies. So to me, that's where I think she's going to have to really keep the hustle going and then get her team cut out, set the bar high and continue to innovate. >> You know, we talked about that seminal moment with the CIA deal four years ago when the CIA made the move, went to AWS, chose them over IBM. John Edwards was talking about that mindshift at the agency today, saying, it was our goal as we looked at all of our partners, instead of making you or them become like us, we wanted to become like them. We wanted to be faster. We wanted to be more agile. We wanted to be more nimble. We wanted to be more open in a way or at least open to new ideas. And so, it was a transformational shift in their paradigm that really sent them on a great course. He couldn't have been more positive on that stage today talking about AWS and the relationship with the CIA and what they have done for the agency, what it's done for the agency. >> Look, there's a frustration in public sector. It's the elephant in the room, so to speak. And that is, they want to do more with less because that's always been their role. Now, some kind of say, "Oh yeah, "a bolted contractor kind of bids." And you know, the procurement process which old school was, you know, the $45 bolt that the joke in D.C. is for these big government and, you know, Army contracts. But they still get scrutinized on costs. So, you know, there's been a way of doing things that are changing, right? So how you procure technology, how you deploy it, is really different now. And the opportunity is to get this in the hands of people who want to move fast. They want to actually deliver a good product. There's a lot of great people in public sector who love their job, and if they don't give them the tools, you're going to see what I call a brain drain go on in public service. And you're seeing that going on, obviously with Trump and the government here. There are a lot of smart people saying, "Hey, I'm out of here." Right? It always kind of happens during political changeovers, but no more than the passion of the people working. Just give them the tools for the job, alright? That's kind of the cloud mojo. It's like give them, move fast, give them the technology they need. And a lot of stuff we're hearing from friends is one of our guests yesterday, they need some of the basic stuff automated away. I want the compliance. I want the security. I want to make sure that I can run the operations at scale. And that's really the table stakes. And that's going to be the tipping point, when all those details around compliance can just be programmed in once and just work. That's when you're going to start to see some real acceleration, new apps, new developers, new environments for whether it's students, federal workers, or practitioners in health and human services, you're going to start to see those things happen. >> Well, it's all about stability, right? It's the stability and certainty and knowing that what I'm doing is okay. Right? That I'm staying within the confines, the regulations, you know, this town knows regulations. >> All of these markets, you know, what's going on in those worlds? And a lot of people ask questions. People in the industry, they know what's going on, and they want better, faster, cheaper, now. And I think that's Amazon's ethos. I mean, Jeff Bezos, the CEO, is living large right now, stock prices at thousands and his personal cash to send people to space and build up Mars, for instance. That's his moon shot. It's not his moon shot, it's his Mars shot. So, he's got a grand vision. He loves space. But he's always said the ethos of Amazon, which Amazon Web Services is part of Amazon, is lower prices for customers, constantly deliver lower prices, push the prices lower, and ship product faster. >> That's true. >> Get it in the hands faster on the delivery side. So you could apply that ethos to anything. It's really a timeless ethos. It's not pegged on one division. Andy Jassy and Theresa Carlson, they picked that up. They're trying to drive the prices down. CIA talks about that. And delivering faster means speed. I want faster drives. I want lower prices. And they've delivered that. Amazon has consistently delivered better product at a lower price and working on shipping software faster, better performance. You know, delivering here is packets. So, there it is. That's really why Amazon is winning. That's the key to their success. >> Well, it's been a winning formula, for sure, and we'll be talking about that much more today as we continue our coverage here from Washington D.C. We are live here on the CUBE. We continue with more from AWS Public Sector Summit 2017 right after this.

>> Narrator: Live from Washington DC, it's theCube, covering AWS Public Sector Summit 2017. Brought to you by Amazon Web Services and its partner Ecosystem. >> Welcome back here to Washington, D.C. You're watching Cube Live here at Silicon Angle T.V. The flagship broadcast of Silicon Angle. We are at AWS Public Sector Summit 2017 wrapping up day one coverage here in the Walter Washington Convention Center. Along with John Furrier, we are now joined by our esteemed colleague Jeff Frick who's been alongside all day handling all the machinations behind the scenes. >> Behind the scenes, John. >> John: Doing an admirable job of that, Jeff. >> So what do you think, our first ever visit to your town. >> John: I love it, I love it. >> I sense something tableau at the Opry. The Opry's the other big convention center, here, or Graceland. >> International Harbor. >> It's the same company. >> National harbor, MGM. >> You're a D.C. guy. >> Gaylord. >> Gaylord, thank you. >> What's the connection? So we going to get some tickets for the Nationals game? >> We got Nats game tonight, Strasburg pitched last night, did not pitch well, but who knows? Maybe we'll get Gio tonight. >> Well the action certainly Amazon Web Services >> Yeah let's talk about what we have going on here today, Jeff. >> Well, I mean, we interviewed, you and I did some great interviews. Intel came on, which is obviously Bellwether in the tech business. Jeff, former Intel employee knows what it's like to march to the cadence of Moore's law and Intel is continuing to do well in platinum sponsor or diamond sponsor here at the event. Look it, the chips are getting smarter and smarter, security at the Silicon, powering 5G, a networks transmission, a lot of the plumbing that's going on in cloud and in cars and devices and companies, it's going to all be connected. So it's a connected world we're living in and Intel's going to be a key part of that so they're highly interested and motivated by all the people that are popping up in the cloud. >> We were just talking and Jeff, I know, you're able to listen on the last interview that we did, but a point that you made, that, you know, a point that you raised, about four years ago, when the CIA deal came down and AWS is ON one side and IBM's on the other, and AWS wins that battle. You called it the shot heard round the cloud. And that, now four years later, has turned out to be a hugely pivotal moment. >> Yeah, I mean this is like moments in time history here, again, documenting it on the Cube for the first time. I don't think anything was written about this I'll say it since we're going to be analyzing it. The shot heard around the cloud was 2013 when AWS public sector under Teresa Carlton's team and her leadership, beat IBM for the Central Intelligence Agency, CIA, contract. Guaranteed lots of spec for IBM. Amazon comes out of the woodwork and wins it. And they won it because essentially the sales motion and the power of IBM had this thing lopped in. But at that time the marketplace was booming with what we call Shadow IT, where you could put your credit card down and go into Amazon cloud and get some instants. What happened was someone actually cut a little prototype, showed their boss, and they said, "I like that better than that, let's do a bake-off." So what happened was at the last minute, new opportunity comes in and then they do what they call a bake-off. Bake-offs and RAPs come in and they won. Went to court and the judge in the ruling actually said Amazon has a better product. So they ruled in favor of Amazon Web Services. That was what I called the shot heard around the cloud. Since that point on, the cloud has become more legitimate every single day for not only startups, enterprises, as well as now public sector. So shot heard around the cloud fast forward to today, this show's on a trajectory to take on the pace of re:Invent, which as their core Amazon Web Services show, then of course which is why we're here chronicalizing this moment in history. This is where we believe, Jeff you and I talked about this, and Dave Alante and I talked about the research team, this is where the influction point kicks up. This is a new growth pillar unpredicted by Wall Street, new growth predictor for revenue for Amazon, they're already a cash machine. They're already looking like a hockey stick this way. You add on public sector, it's going to be phenomenal. So, a lot of people are seeing it but this is just growing like a weed. >> Jeff, follow up on that. >> I was going to say, the two mega trends, John, that we've talked about time and time again, and Teresa Carlson and team have done a terrific job here in the public sector, but I always go back to the James, Tuesday night in the James Hamilton at re:Invent, and if you've never gone you got to go, and he talks about just all these big iron infrastructure investments that Amazon continues to make because they have such scale behind them. Whether it's in chips, whether it's in networking, whether it's in new fibers that they're running across the oceans. They can invest so much money to the benefit of their customers, whether it be security, you know, in all the areas of compute, that is fascinating to me. The other thing we always hear about, about cloud, right, is at some point, it's cheaper to own rather than rent. We just keep coming back to Netflix, like at nighttime, I think Netflix owns whatever the number, 45 percent of all internet traffic in the evening is Netflix, whatever the number is. They're still on Amazon. So, it's not necessarily better to rent than buy. You have to know what you're doing and we were at another show the other day, it was Gannet, the newspaper company. When they're using a lot of servers, they use hundreds, but he said there are sometimes, using AWS, that they actually turn all the servers off. You cannot do that in a standard infrastructure world. You can't turn everything off and then on. Which again, you got to manage it. You don't want the expensive bill. But to me, being able to leverage such scale to the benefit of every customer whether it's Netflix or a startup, it's pretty tough. >> And this is the secret, and this is something again, shared with the Cube audience, here, is not new to us, but we're going to re-amplify it because the people make a mistake with the cloud, it's in one area, they don't match the business model to their variable cost expenses. If you get into the cloud business, and you can actually ratchet your revenue coming in and then manage that cost delta redline, blackline, know where those lines are, as long as you're in the black, and revenue, and you then have the cost variable step up with your revenue, that is the magical formula. It's not that hard, it's back of an envelope. >> Right, right. >> Red line cost, black line revenue. >> The other great story, it was from summit, actually, in San Francisco earlier this year, at they keynote, they had Nextdoor, everybody knows Nextdoor it's the social media for your mom, my mom. They love it, right, people are losing dogs, and looking for a plumber, but the guy talked from about Nextdoor. >> John: Don't knock Nextdoor. >> I don't knock Nextdoor, the Nextdoor CEO gets up and he said, well, I laugh because the Nextdoor guy's mom didn't know what he did until he did Nextdoor. Anyway, he said, you know, we have the entire production system for Nextdoor. And then we would build production plus one on a completely separate group of hardwares inside of Amazon. When that was tested out and ready to run, guess what, we just turn off the first one. You can't, you can't, you can't do that in an owned infrastructure world. You can't build N and N plus one and N plus two and turn off N, you just can't do that. >> Well, the Fugue CEO, Josh, everyone should check out on Youtube.com/siliconangle, he was awesome. He basically saw a throwaway infrastructure mindset to your point about Nextdoor. You build it up and then you bring your new stuff in, you digitally throw it away. >> Right, right. >> That's the future. And this is the business model aspect. And public sector, we were joking, look it, let's just be honest with ourselves, it is a glacier antiquated old systems, people trying hard, you know, government servants, you know, that, employees of the government, not appointees, they don't have a lot of budget and they're always under scrutiny for cost. So the cost benefits always there and they have old systems. So they want new systems. So the demand is there. The question is, can they pull it off. >> So, talk about the government mindset or the shift. We've heard a little bit about that today. About how, to the point that you just made there, John, that you know, very reluctant, some foot-dragging going on, that's historical, that's what happens. But now, maybe the CIA deal, whatever it was, we hit that tipping point, and all the sudden, the minds are opening, and some people are embracing, or being more engaging, with new mousetraps, with better ways to do things. >> We've got the speakers coming on here, so we should wrap it up real quick. Final thoughts, from Day One. >> I was just going to say that the other thing is that before there was so much fat, in not only government in general, but in infrastructure purchasing, 'cause you had to, you better not run out of hardware at Q3 when you're running the numbers. So everything was so over provision, so much expense and over provisioning. With Amazon you don't need to over provision. You can tap it when you need it and turn it off so there's a huge amount of budget that should actually be released. >> I want to ask you guys, we'll wrap up here, final, since you're emceeing, final thoughts. What is your impression of day one? I'll start here and you guys can have time to think of an answer. My takeaway for public sector is Teresa Carlson has risen up as a prime executive for Amazon Web Services. She went from knocking doors eight years ago to full on blown growth strategy for Amazon. And it's very clear, they're not there yet. They only have 10,000 people here, so the conference isn't that massive. But it's on its way to becoming massive. Here's their issue. They have to start getting the cadence of re:Invent launches into the public sector. And that's the big story here. They are quickly shortening the cycles between what they launch at Amazon re:Invent and what they roll out of the public sector. The question is how fast can they do that? And that's what we're going to be watching. And then the customer behaviors starting to procure. So greenlight for Amazon. But they got to get those release cycles. Stuff gets released at Amazon re:Invent, they got to roll them with government, shorten that down to almost zero, they'll win. >> Yeah, my just quick impression is, I like to look at the booth action, because we've all had booth duty, right. What's going on in the booths? Did the people that paid for a booth here feel like they got their money's worth? And the traffic in the booths has been good, they've been three deep, four deep. So the people that are here are curious they're interested, they're spending time going booth to booth to booth, and that's a very good sign. >> This is a learning conference. Alright your thoughts. >> I would say, the only thing that is, I wouldn't say it's a red light by any means, but it's like a caution light, it's about budgets, you know, when you run government, you're always, you are vulnerable to somebody else's budget decision. I'm, you know, whether it's Congress, whether it's a city council, whether it's a state legislation, whatever it is, that's always just kind of a, a little hangup you have to deal with because you might have the best mousetrap in the world, but if somebody says nah, you can't write that check this year, maybe next year. We're going to put our money somewhere else. That's the only thing. >> I got my Trump joke in, I don't know if you heard that, but my Trump joke is, I'll say it at the end, there's a lot of data lakes in D.C., and they've turned into data swamps. So Amazon's here to drain the data swamp. >> Jeff: He got it in. He's been practicing that all week. >> I've heard it three times, are you kidding? Funny every time. >> Well you know our Cube, you know we talk about data swamps. I hate the word data lake, as everyone knows, I just hate that word, it's just not. >> Well, there is value in that swamp. >> Hated the word data lake. >> For Jeff Rick, John Furrier, I'm John Walsh. Thank you for joining us here at the AWS Public Sector Summit 2017. Back tomorrow with more coverage, live here on the Cube.

>> Narrator: Live from Washington DC, it's the CUBE. Covering AWS Public Sector Summit 2017. Brought to you by Amazon Web Services and its partner Ecosystem. >> Welcome back here on the CUBE, the flagship broadcast of Silicon Angle TV along with John Furrier, I'm John Wallace. We're here at AWS Public Sector Summit 2017, the sixth one in its history. It's grown leaps and bounds and still a great vibe from the show for us. It's been packed all day John. >> It's the new reinvent for the public sector, so size wise it's going to become a behemoth very shortly. Our first conference, multi-year run covering Amazon, thanks to Theresa Carlson for letting us come and really on the front lines here, it's awesome. It's computing right here, edge broadcasting, we're sending the data out there. >> We are, we're extracting the signal from the noise as John always likes to say. Government, educations all being talked about here this week. And with us to talk about that is Max Peterson, he's a general manager at the AWS and Max, thank you for joining us, we appreciate that. >> Thank you for the invitation. >> And I knew we were in trouble with our next guest, cause I said this is John, I'm John, he said, this is Max and I'm Max. I said no you're not, I know better than that. Andre Pienaar who's a founder and chairman of C5 Consulting, Andre, thank you for being here on the CUBE. >> It's great pleasure being here. >> Alright let's just start off first off with core responsibilities and a little bit about C5 too for our audience. First off, if you would Max, tell us a little bit about your portfolio-- >> Sure. >> At AWS and then Andre, we'll switch over to C5. >> I think I might have the best job in the world because I get to work with government customers, educational institutions, nonprofits who are all working to try and improve the lives of citizens, improve the lives of students, improve the lives of teachers and basically improve the lives of people overall. And I do that all around the world. >> That is a good job. Yeah, Andre. >> Max will have to arm wrestle for who has got the best job in the world, because in C5, we have the privilege of investing into fast growing companies that are built on Amazon Cloud and that specializes in cyber security, big data and cloud computing and helps to make the world a safer place. >> I'm willing to say >> Hold on I think we have the best job. >> we both have the best job. >> Now wait a minute, we get to talk to the two of you, are you kidding? >> Yeah, I've got the best, we talk to all the smartest people like you guys and it can't get better than that. >> You're just a sliver of our great day. >> That's awesome, we have established we all have great jobs. >> Andre, so you hit cyber, obviously there is not a hotter topic, certainly in this city that is talked about quite a bit as you're well aware so let's just talk about that space in general and the kinds of things that you look for and why you have this interest and this association with AWS. >> So the AWS cloud platform is a game changer for cyber security. When we started investing in cyber security, and people considered cloud, one of their main concerns was do I move my data into the cloud and will it be secure? Today it's the other way around because of the innovation that AWS has been driving in the cyber security space. People are saying, we feel we are much more secure having the benefit of all innovation on the cloud platform in terms of our cyber security. >> And the investment thesis that you guys go after, just for the record, you're more on the growth side, what stage of investments do you guys do? >> We're a later stage investor so the companies we invest in are typically post revenue but fast growing in visibility and on profitability. >> So hot areas, cyber security, surveillance, smart cities, autonomous vehicles, I mean there's a data problem going on so you see data and super computing coming back into vogue. Back when I was a youngling in college, they called it data processing. The departments and mainframes, data processing and now you have more compute power, edge compute, now you have tons of data, how is all that coming in for and inching in the business models of companies. This is a completely different shift with the cloud. But you still need high performance computing, you still need huge amounts of data science operations, how do companies and governments and public sectors pull up? >> I think just the sheer volume of data that's being generated also by the emerging internet of things necessitates new models for storing and processing and accessing data and also for securing it. When big enterprises and governments think about cyber security, they really think about how do we secure the most valuable data that's in our custody and our stewardship and how do we meet that obligation to the people who have provided that data to us. >> How would you summarize the intrinsic difference between old way, new way? Old way being non-cloud and new way being cloud as we look forward? >> I think that was a pretty good summary right there. New way is cloud, old way is the legacy that people have locked up in their data centers and it's not just the hardware that is the legacy problem, the data is the legacy problem. Because when you have all that information built in silos around government, it makes it impossible to actually implement a digital citizen experience. You as a citizen would like to be able to just ask your question of government and let them sort out what your postal code was, what your benefits information was, right? You can't do that when you've got the data, much less the systems, locked up in a whole bunch of individual departments. >> Well merging of data, sharing data as an ethos and the cyber security world, where there's an ethos of hey, you know, we're going to help each other out because the more data, the more they can get patterns into the analytics which is a sharing culture. That's not really the way it is. I got governance, I got policy issues. >> Well policing is a good example. In the Washington DC area, there are 19 law enforcement agencies with arresting powers and that data is being kept in completely separate silos. Whereas if we're able to integrate and share that data, you will be able to draw some very useful predictive policing conclusions from that which can prevent and detect crime. >> That's a confidence issue and that's where your security point weighs in. Let me get back to what you said about the old way, new way thing. Another bottleneck or barrier, or just hurdle if you will, in cloud growth, has been cultural. Mindset of management and also operational practices, you have a waterfall development cycles or project management versus agile, which is different. That's a different cultural thing so you got all the best intentions in the world, people could raise their hand put stuff in the cloud, but if you can't scale out, you're going to be on this cadence where projects aren't going to get that ROI picture generated so the agility, how are you guys seeing that developing? >> I would tell you the first thing that it takes is leaders and that's what this conference is about. It's about telling the stories of customers who have seen the potential and who are now leaders. It takes something, it takes a spark to start it and the most powerful spark that we've seen, are customer testimonials, who come forward and they explain, hey I was doing this the old way. A lot of times for a cost reason or a new mandate, they have to come up with a new way to invent and they made that selection of the cloud and that's what so often changed the opportunity that they can address. Here's just using that data as an example, transport for London in the UK has a massive amount of data that comes from all of the journey information. They started their journey to the cloud four years ago and it started with the simple premise of I needed to save costs. They saved money and they were able to take that money and reprogram it now to figuring out how do we unlock the data to generate more information for commuters. Finally, they were able to take that learning and start spinning it into how do I actually improve the journey by using machine learning, artificial intelligence and big data techniques? Classic progression along the cloud. Save some money, reinvest the savings and then start delivering new innovation on that point. >> I was going to ask you the use cases. You jumped right in. Andre, can you just chime in and share your opinion on this or anecdotal or story or data around use cases that you see out there that can point to saying, that's game changing that's transformative, that's disruptive. >> Well one of the customer stories that Max referred to that was a real game changer in cyber security was when the CIA said that they were going to adopt the AWS cloud platform. Because people said if US Intelligence community has the confidence to feel secure on AWS cloud, why can't we? AWS have evolved cyber security from being an offering which is on top of the cloud and the responsibility of the client to something which is inside the cloud which involves a whole range of services and I think that's been a complete game changer. >> The CIA deal, Dave Velanto is not here, my partner in crime as well, I call it the shot heard all around the cloud, that was a seminal moment for AWS in chronicling your guys journey over the years but I've been following you guys since the barely birth days and how you've grown up, that was a really critical moment for AWS in the public sector so I want to ask you guys both a question, right now, 2017 here at public sector conference, what's the perception of AWS outside of the ecosystem? Clearly cloud is the new normal, we heard previously, I agree with that. But what's the perception of the viability, the production level? What's the progress part in the minds of the folks? How far are we in that journey cause this is a breakout year, this year. That was the shot heard around the cloud, now there seems to be a breakout year, almost a hockey stick pick up. >> It's another example of how it takes leadership and it was the shot heard round the cloud, what we're seeing though is now many, many people are picking up that lead and using it to their advantage. The National Cyber Security Center in the UK told a story today that's pretty much a direct follow on. They're now describing to their agencies what they should do to be safe on the cloud. They're not giving them a list of rules that they need to try and go check off. It's very much about enabling and it's very much about providing the right guidance and policy. It's unlocking it instead of using security as a blocker in that example. Much more than just that one example, all over the world-- >> But people generally think okay this is now viable. So in terms of the mind of the people out in the trenches, not in the front lines like here, thoughts on your view on the perception of the progress bar on AWS public sector. >> John, one of the best measures of how the AWS cloud is perceived is what's happening in the startup scene. 90% of all startups today get born on the Amazon cloud in the US. 70% of all startups in France gets born in AWS cloud. This is the future voting for cloud and saying this is where we want to be, this is where we can scale this is where we can grow-- >> If you can believe APIs will be the normal operational interface subsystems and data, then you essentially have a holistic distributed cloud, aka computer. That's the vision. So what's the challenge? What do you guys see as the challenge, is it just education, growth? You only have 10,000 people here, it's not like it's 30 yet. >> Well you heard one of the, or you hit on one of the things that's key and that's policy. You really do have to break through the old government bureaucracy and the old government mentality and help set the new policies. Whether it's economic policies that help enable small businesses to launch and use the cloud. Whether it's procurement policies that allow people to actually buy tech and use tech fast, or whether it's the basic policy of the country. The UK now has a policy of being digital native, cloud native. >> The ecosystem's interesting, Andre, you mentioned startup, because I think for me, challenge opportunity is to have Amazon scale up, to handle the tsunami of Ecosystem partners that could be as you said, we just talked to Fugue here. Amazing startup funded by New Enterprise Associates, NEA, they're kicking ass, they're just awesome. You go back 10 years ago, they wouldn't even be considered. >> Absolutely. >> So you've got an opportunity to jam everyone in the marketplace and let it be a free for all, it's kind of like a fun time. >> It's a great time and in the venture capital world, being architect on the Amazon cloud has become a badge of quality. So increasingly venture capital firms are looking for startups that run on the AWS cloud and use them in an innovative way. >> Well on the efficiency on the product side, but also leverage on the capital side. >> Exactly. You need less capital. >> Been a provision of data center, what? >> You need less capital and secondly, also, you can fail much faster and then still have space and time to build it and restart. I think failing faster is something from an investment point of view that is really attractive. >> John: Final question. >> John: Failing faster? >> Failing faster. Because what you don't want are the long drawn out deaths of businesses. Because that's a sure way to destroy value of money. >> I think the other part though is fix faster. >> Fix faster. >> And that's exactly what the cloud does so instead of spending an immense amount of time and energy trying to figuring out precisely what I need to build, I can come up with the basic idea, I can work quick, I can fail fast, but I can fix it fast. >> Alright, well you mentioned the golden time, the golden era, and I think you both have captured it, so I think both your jobs would be up there at the top of the shelf. >> Thank you John. >> You mentioned 19 agencies by the way here in DC that can arrest, I have parking tickets from every one of them. >> Andre: I'm glad they haven't arrested you yet John. >> No, that's the price you pay for living in this city. >> Thanks John and John. >> Max, Andre thank you very much. >> John and John thank you. >> Cheers. >> Back with more here from AWS Public Sector Summit 2017, live, Washington DC, you're watching the CUBE.

>> Narrator: Live, from Washington, DC, it's the Cube. Covering AWS Public Sector Summit 2017. Brought to you by Amazon Web Services, and its partner ecosystem. >> Well welcome back to our nations' capitol, Washington, DC, hosting this week's AWS Public Sector Summit 2017. You're live, here on the Cube, which of course is the flagship broadcast of the Siliconangle TV, where my partner in crime John Fourier always likes to say, we extract the single from the noise, don't we John? >> That's right, we're here. >> Yeah, we are. >> In D.C. >> In DC and it's a little warm, it's a little toasty inside but outside especially. 95 and humidity, Jeff Raleigh could attest to that. He just pulled into town from Columbus, Ohio. Jeff, good to see you, the Senior VP and GM of Cloud at Ellucian, so thank you for being with us Jeff. >> Absolutely, John and John, happy to be here. >> You bet, so Ellucian, a leader in higher education software, we've talked a little bit about the company. 2,400 institutions around the world with which you work. Most of those, about 2,000 here in the US. Let's talk about that work, the kind of nature of the work first and then we'll jump into a little bit about how they're playing in the Cloud these days. >> Sure absolutely happy to, so the Ellucian's got a sole focus in higher education. So it's really the only industry that we serve. We serve the industry really from a software, enterprise software prospective. So that's really helping from an ERP perspective, HR finance, but really our bread and butter is the student system and it's really the systems around helping students achieve success. As they, go to a community college or go to a four year public or four year private. It's really about helping those students drive success. And actually get the successful outcomes. And we do that with registration, with advisement, with recruiting systems, so there's a full breadth of software that an institution needs in order to help a student successfully go through that process of getting a degree and ultimately getting a job. >> Well John and I can both relate to that. He's got a daughter who's transferring over to Cal Berkeley. Going to be going to school there. I've got a niece starting at UNC Wilmington that I'm helping out, I love the registration help. So, you and I need to talk about it. >> Absolutely. >> A question is how do you get the kids into the schools they want, is there a back door Trojan horse? >> We can't manipulate that much. But you talk about your company does data rich inside pour, which I thought that was an interesting way to kind of look at things. Like we have this huge treasure trove of information and data but yet maybe there's somewhat of a disconnect in interpreting that data and then putting it value, putting it to use. What do you see with regard to that in the higher education space? >> You know, I think John, that's a great question. That's actually a really big focus of ours in terms of unlocking that data. If you think about the systems that have been on campus for 30 years right. You've got all kinds of information about the students that have attended, the classes that they take and how well they've succeeded, the types of advising that they needed. But how do you unlock all of the rich information so that you can take that information, drive some insight and then just drive better outcomes? We've been working on a platform, we call it Ethos and what we basically built is a new data model for higher education where we've looked at all of those different systems and we've basically harmonized to a new data model that really sits above all of those systems. And we begin now to extract all of that information out from those systems, into a data model that's really designed around bringing role based or persona based insight. And we call it role based analytics. That basically is designed around answering the top five to seven questions that all of the people that are on campus have. So if you're a registrar and you want to know what classes should I be adding that I need extras of. Well, that's a tough question to answer, we unlock the answer to that through the Ethos platform and the new persona based analytics that we're developing. Cause when we sit down and we talk to presidents of a school or we talk to the provost, one of the things that they want is they want to know that the people that they have working on campus for student outcomes are getting access to the information that they need to do their jobs better. And so that's been a clear mandate from our customers to help them do a better job of using the information that they're collecting. >> How do you guys deal with the data science side of this Because it's interesting is that you're using data aggressively, Cloud's perfect for that. You got a lot of compute available, how are you guys taking that legacy environment and kind of putting overlay on top of a really high, functional analytic system? >> That's a great question John. So what we do is we enable all of our software, whether it be on premise software, most of our customers still run a lot of their software on premise. And what we've built for those systems is a set of restful APIs that we deliver wherever that software runs to push that data into an AWS cloud environment where we begin putting that data in the columnar databases that are really built and constructed to help get insight very, very quickly from that data. The most important part of doing that is really sitting down and talking to the person that has the question to understand, what's the question that you're trying to answer that you haven't been able to answer? And then building the visualization that they need that actually helps them answer that question. But we took it one step further, and what we did is we basically said, we know through our research that that first question really just always yields another question. Which then yields another question and so what we did is we built a heuristic capability into the analytic platform that based on the user, based on who they are, based on the role that they had at a school and based on other people that look like them and act like them and have that role. The system begins to learn the questions that are being asked and then where are they navigating to? What are the next questions, so that we actually begin presenting the users not just with the answer to the first question that they have, but actually to, we believe that now that you've got the answer to this, that this is where you're going to go next from an inside perspective. The next types of questions so we begin to guide the users and that's really where that guided nature comes from. >> So what's the next question John's going to ask then? >> This brings up the whole cognitive computing thing. The idea that predictive analytics are one thing, you've got prescription analytics also you've got the notion of recommendation engines. All kinds of cool things that are just sitting out there waiting to be applied, the question is how do you get the data, that's the number one problem. >> That's a good one, so we've got, one of the solutions that we have in our CR Import folio is called Advise. And what we do with that product is we actually bring all of the student data, so we bring their attendance data, we bring their health records, we bring all of the grades that they have. And we then build cohorts where we have like students. And what we begin to do is we begin to build a predictive model to find students that are at risk. That based on these attendance patters in these classes, we know that this set of students is likely to have a poor outcome. And so what we want to do is not just identify that, well, now they're at risk but it's the predictive side of, well what should you do, what is the actual intervention that you need to take that's going to drive a better outcome? So the solution actually takes all the data and does two things. First, it identifies who are the students that we want to be working with, could be at risk, could be hypos right, could by high potential students that we want to accelerate. But then it's about driving the actual actions and the interactions with those students. It is not just about identifying well, Johnny's going to be in trouble, it's well, okay, what should we do for Johnny to help him get out of trouble? And so it's both sides of that. So, it is about polling all of the data which means you need to understand where the data lives. We have an advantage there over, pretty much everyone else in higher education because those 2,400 institutions that we have, they are running a massive amount of our software from a portfolio perspective. So we know where the data is, so we know how to go out and get it. And then if you look at our partner, ecosystem we have over 130 partners that also serve higher education with us. And we know what data they have and we are enabling all of those partners to leverage the Ethos platform. To be able to share that data, both from an integration and interoperability perspective. But also to feed that cloud analytic solution as well. >> One of the cool things you're doing with AWS, I'll say, they pretty much run the table on public cloud, we see the numbers there. They're in the chapter of their company or divisions, like the way a company, I call the team period. I call it the enterprise years. Govnow is like really going, it's like reinvent size. It's getting to that level, what's the impact that that's having and what are some of the things that you're doing with AWS inside the public sector that's notable. >> That's a great question, I think one of the big things is we have a really, really strong go to market partnership with AWS. And I say the go to market side because we've had a really strong technical partnership with them for many years. Where we've been working with them as they've developed new services and we've been able to leverage those services to build micro applications, to build elastic applications, all of that. And that's great form a technical perspective but now it's about bringing all of that to market. We have a very strong joint partnership with. >> John: How many years has it gone back? >> About two and a half, three years. So our enterprise agreement is two and half years old. We were doing work with them before that. But it's about two and a half years old and when I look at that, we deploy all of our cloud applications solely on AWS. So they are the sole cloud provider for us. We've expanded our cloud offering outside of the United States, we're in Dublin, we have a data center in Sydney, Australia. And we are just expanded into their new data center in the eastern Canada area in Montreal. And that's helped us from a go to market because what they bring for us, is they bring that credibility of delivering cloud infrastructure. We bring credibility of delivering higher education solutions that solve specific problems that only exist in higher education. It's that combination when you go to market to basically say the world's leading infrastructure cloud provider partnered with the world's leading solution provider in higher education. That's an unbeatable solution for us. >> So I got to ask you the question that people might ask. Hey, I've not been following AWS public sector. I see the Wall Street Journal articles, they're killing it. How would you describe their current state of innovation, their current presence in the public sector market as of right now? >> I think the lens that I really have is really around that higher education, so community colleges, public four year schools and they are highly focused on it. They have a team of dedicated people that are just focused on higher education. They work with us kind of from a joint perspective and I know that my cloud business that I'm responsible for, it is the fastest growing part of Ellucian today. So in June of 2016, we actually surpassed, form a growth perspective we started growing much faster than the on premise side of our business. And that's in large part because of what AWS has enabled us to do, so from a training perspective, from a sales motion perspective, from a marketing and positioning perspective. It's a big focus for them. >> Would you consider them, like the perception of them would be they're getting traction, they've cleared the runway, they're at cruising altitude. Where are they in the mind share of higher eds? >> I definitely think, they've cleared the runway. They are clearly going past that 10,000 foot and up there. For us, one of the main reasons we chose AWS was that factor, they already had traction. They were well known and well understood and that really helps us. Prior to that, we were doing a co location where we were managing a bunch of infrastructure, that was a hard sell, cause let's face it, we're software people, not infrastructure people. When we started bringing AWS to the table and basically talking about that's where we deploy. That took a lot of questions around scale, security, elasticity and it basically put it all to rest. So we no longer have to contend with those questions because AWS is well known in the higher education space. So it really worked well for us. >> So when you sit down with a new client or new perspective client, the two of you, you come in with this great resume and I think is where it's kind of interesting to me, universities are these fountains of innovation and creative thinking. IT, maybe not so much, because it's very institutional. There's a lot of legacy baggage they're bringing along. So what are the impediments that you run into in terms of talking to folks who might be, not doubters, but maybe a little resistant to change or maybe have a little change aversion. I mean how do you go about bringing them along on that journey? >> What's interesting in terms of higher education is there's actually a couple things that are happening that really help us with that, that are happening. But to answer the first question John which was when we get into that, not really a battle. But when we get into that dialogue, where they're like well I'm not really sure that moving to the cloud is the right thing. There's an analyst that covers higher education and she's made a statement that basically is, by 2020, a no cloud policy on campus is going to be much like a no internet policy on campus. Just not going to be a thing. And a lot of that is because a lot of providers are only building cloud solutions. That's all you're going to have access to. One of the things that's happening in higher education is in the IT space particularly, they're having a hard time finding those IT professionals. Because higher education isn't seen IT wise as a sexy place to go. And so a lot of those people that have been working in higher education for 25, 30 years, they're reaching that retirement age, and so. >> John: The main frame guys. >> Right, the main frame guys, the Unix guys. And where do you go find replacements for those. And so, they're recognizing that, okay, well that's going to be a problem for us. And right there's a lot of the infrastructure, on premise infrastructure is getting old. So does it make sense to put that capital investment into infrastructure or I got other capital investment for research and research equipment that I'd much rather put, if I'm a president, I'd much rather put the money there. That also leads to an easier conversation around that journey to the cloud, that journey of taking your enterprise systems and moving them to cloud environments. The other thing that we find is, the conversation is never really around cost savings. What it's really around is the redeployment of those IT resources to be better business partners, to be business analysts, to be people that can actually be change agents at the university to bring about change cause they're no longer managing operating systems or writing network patches or security patches. They've offloaded that to us and we've offloaded part of that work to AWS. >> Well, we appreciate the perspective. Like you said, it sounds like you've got quite a corner on the market, 2,400 partners, if you will out there. Many of those overseas, so congratulations on that front. >> Thank you. >> And I wish you continued success and thanks for joining us on The Cube, first time I think right? >> Yep, first time. >> We have rookies across the board. >> But you're now a Cube alumni. >> I appreciate it. >> Look forward to having you back. >> Thanks John and John, appreciate it. >> Back with more from Washington, DC at the AWS Public Sector Summit, 2017. You're watching live on the Cube. (upbeat music)

>> Announcer: Live from Washington D.C., it's theCUBE covering AWS Public Sector Summit 2017. Brought to you by Amazon Web Services and its partner, Ecosystem. >> Welcome back to our nation's capitol where we continue our coverage here on theCUBE of the AWS Public Sector Summit 2017. Some 10,000 strong in attendance this week here in the Walter Washington Convention Center. It's just about a mile from the U.S. Capitol. John Walsh, this is John Furrier. John, do you feel the energy of the centerpiece of the political universe. >> It's hot here in D.C. >> It is hot. >> It's a pressure cooker, the humidity. >> But, it's not global warming we know that because, ya know, climate change is >> Climate change is not real. That's from what I heard. >> That's what we've been told. >> The problem with D.C. is it's a data lake that's turned into a data swamp. So, someone really needs to drain that data swamp. >> Well, ya know, to help us do that. You know who's going to help us do that? >> Amazon Web Services. >> Marlin McFate's going to help us do that. He is the technical leader of the Advanced Technology Group in the office of the CTO and Riverbed. And Marlin, thank you for being with us here on theCUBE. Your first time, I believe. >> Yes, it is my first time on theCUBE. >> So, you're a Cube rookie? >> Yes, Cube rookie. >> Good to have you aboard. >> I appreciate it, thanks. >> Tell us a little bit first about Riverbed, about what you do there specifically, what you do there and what the company's mission is overall. >> Absolutely, so I work for the Advanced Technology Group, the Advanced Technology Group works underneath the office of the CTO. There's actually two groups that work under the office of the CTO, my group, the Advanced Technology Group and another one called the Strategic Technology Group. The ATT Group, the one that I belong to, we focus on being the subject matter experts of our products. I think there's about nine of us now and we all focus on different products. Riverbed's grown from a company of being just the WAN Optimization Company to really being the performance company, right, whether that be visibility, whether it be optimization, whether it be network optimization. Each one of us focuses on a different piece. I, predominantly focus on our WAN optimization, our SteelConnect product and at times our SteelFusion project, which is the combined Edge product. >> SteelConnect, yeah, tell us what that's all about. >> SteelConnect, SteelConnect is not actually our most recent product to come to market. We have a couple of visibility products that have come out recently, but SteelConnect addresses the idea that we have been doing networking for the same way say, you know, 1993 beyond, right. We are still doing it the same way. Everything within our industry, whether you take a look at virtualization, whether you take a look at Cloud, whether or not you take a look at storage, everything has changed substantially in how we do it and this brings that change to networking. The idea is that when you think about servers you say, I no longer want to think about you know, hardware. I never want to think about that. I never want to think about resources. Maybe I don't even want to worry about operating systems. I only want to worry about containers, right. Now, when it comes to networking I don't necessarily want to have to worry about each individual piece within my network. I want it to be orchestrated and controlled centrally and what I tell it to do, I want it to do. I shouldn't have to do that. >> You missed a challenged. We heard Vernon Vogel on stage here at Amazon a couple of seconds ago say, I'm here in D.C. say hey, it's a new normal. We had another entrepreneur on just before you from FUGE who said, hey, it's inevitably the world of the future and it's inherently different, or intrinsically different in Cloud than it is on premise with enterprises, so the question for you is, what is the use case that you guys are winning at because the Cloud is impacting federal government and public sector, but a lot of times they have old, antiquated systems like back in 1993, '94. So, they're moving fast to commercialize, to modernize, that's the focus. How do you guys help them? What's the big lynch pen for you guys and that goal mission to the customer? >> Alright, so you're absolutely right. The government has been here, or the government or public sector as a whole has been moving to the Cloud quite quickly here recently, right. We've seen this move more on the commercial side first, obviously, and now in the public sector. One of the very large use cases that we address is the ability to provision for your applications, right. Some of the characteristics that you find in commercial world, such as, I want to use internet as transport. You don't see as much in public sector. But, you do see, I can spin up an application in the Cloud. If you go to your Cloud person and say, how would it take me to get application B, they could possibly come back to you and say, well, would this afternoon be okay, right. Can you provision in hours like that? Can you get the policy in place for users? Could you get the connectivity? Could you get any of that in place in the same amount of time? That is a use case that SD WAN addresses without having to rip up, take out the network that you already have, which is the physical network, or what we refer to as the underlay. Being able to give you that flexibility on top of that network. >> The big thing that customers have a challenge on is that other focus it's DebOps trend programmable infrastructure is another one, so that they want to make it programmable. >> Right. >> So, how do you guys fit into that? Because one of the things that we hear is, could I have develop 'cause all I want to do is have infrastructure just works as code. That's all I need for whatever use case. >> Yeah, we usually see that DebOps is actually one that'll probably be the first movers to the Cloud for the public sector, right. With our, really it's every single one of our products, whether or not we're talking about SteelConnect, SteelHead, SteelEssential, any one of them, there's a RESTful API for every single one of them. So, you can actually go in and utilizing a very easy scripting a RESTful API directly itself and spin up whole environments and then spin them down if you wanted to do that. So, it fits very, very nicely into that DebOps world. >> Do you have SteelEdge yet? >> SteelEdge? >> Copyright on theCUBE. >> It might be a razor company that might have that. I don't know. >> Well, the Edge in the network is huge and this is where we're talking about as you guys do it, you know SD WAN, I mean, come on, why the area networks? You don't beat, you can't get any more edgier than that. You guys have a core competency in this. How do you guys look at the Edge and IOT and all these use cases popping around? >> Well, we do actually have a product that has Edge in it, it was SteelFusion Edge. We could address that in a couple of different ways. I want to make sure that I understood your question, though. Your question was around IOT, specifically? >> Well, how do you guys look at the Edge? The trends right now are super hyped up right now, Intelligent Edge is a big message we're hearing from others. IOT is an Edge application with its Industrial Edge with Genery Censor networks, help with safety, surveillance, all this is Edge devices. >> It still ends up in the end being you know, and that has, we've heard the change from people calling it Branch to calling it Edge, which is probably pretty appropo, right. But, really in the end, what it comes down to is connectivity, right. So, if I have IOT sensors in a warehouse, whether or not I have an application, whether or not I have a group of users, whether or not I have mobile users, in the end what it really comes down to is connectivity. And, we all especially with our cell phones, right, we have come pretty much to the point where we expect our data and our connectivity to be there at all times, right. That's one of the things SD WAN addresses. Whether it be our direct, our SD WAN products, SteelConnect, or whether or not it has works with some of the pieces that move further into the LAN architectural, like our wireless access points, our switching, right. So, you can imagine here, right, I can provide policy for my IOT devices. I can provide that policy one time at an organizational or agency level. I can have that policy filter down, all the way down to the axis point and now the axis point might be my axis point to my IOT or to my user. So, in the end, it still comes to connectivity. >> Marlin, what's some of the use cases or scenarios you've been involved with customers where it's been super exciting from an architectural standpoint, where you guys are doing some cutting edge things. Like, is it more the network size? Is it software? Is it Edge. I mean, I'm tryin' to get a sense of, could you share a personal perspective? >> Absolutely so. One of the ones that we're working on right now I think is probably the most exciting. It is combining some aspects, you could call it an FE. You could call it SD WAN. You could call it Grey Box. What I like to call it is just a combined Edge piece, right, which encompasses both the SteelConnect piece which handles your firewall characteristics, your identity management characteristics, built into that some switching, virtualization, so you can run other products on there. What the customer really wanted to end up doing was they had school systems that, a school system that was in a very far away place and that school system, they were putting in a router, a switch, an access point, you know, all these different little pieces and devices, right. What we did was we were able to take that design and crunch it down into basically one box, right. They have enough switchboards. They have the ability to run virtual machines 'cause they said that they had a server here or there. They have their virtualized SteelConnect gateway which gives them the firewall capability, gives them the routing capability and this is all combined in a box that already has the WAN Optimization built in. So, they get everything that they would have had onsite in one box. >> Is there something to working, you bring up education as an example, but in that space overall in the .gov, the .edu space that's separate and aside from commercial partners or commercial relationships like different concerns, different priorities and yet they're using the same technologies. >> Most certainly. The only thing that I could really say from a using technology, right, I mean there are some pockets where different technology, far off weird technologies is utilized. But, I would say that they are the public sector, schools, federal government, intel, they're all using a lot of the same technology, right. It's when they adopt it. When did they bring it into their environment? And then, what are the special characteristics of their environment? So for example, what I said earlier, right, your commercial customers are looking at utilizing SD WAN to move maybe completely off of MPLS. It's probably not something that we're going to see within the public sector, right. They're want to still use some sort of private networking. I do have some customers that are utilizing public internet, but then, they are tunneling an overlay back to an MPLS entry point to get back into their Cloud. We just have interesting requirements. Whether that be a trusted internet connection, whether or not that'd be JRSS, we have different security requirements in the public sector. >> Well, I love some of what you're doin'. Did you get all of that MPLS stuff there? >> Yeah, I got the first four. >> I want to jump in and double down on that. This is interesting conversation because the whole trend right now is hybrid Cloud on the Enterprise side which is a leading indicator to the government, a little bit lagging on that, so whatever that translates to in terms of Hybrid or Legacy, it's going to be somewhat similar, I believe. But, really multi-Cloud is a trend that people are talking about. It's super hyped up but it's not yet real. The thing that's holding multi-Cloud back not multi-Cloud in the sense I got to workload over hear and a workload over there, I'm talking about moving resources around the network, data, compute, what not, is latency, huge problem. You mentioned MPLS and all this tunneling, there's still the latency problem of how do you get the laws of physics down to the point where you can actually have those kinds of latencies? What is Riverbed doing? Can you share some insights to that direction 'cause that's the holy grail right now. That's the last hurdle. Then, well getting all the silicons is still the final hurdle, but latency's critical. >> So, problem number one there, right. Even if it is Cloud to Cloud in that example, right, is first how do I get a WAN Optimization device, something that can optimize that traffic for me. Something that can affect my latency for me into that environment. Riverbed has worked tirelessly to get that in there right. But, to your point, you can't change how an electron flies, right. The speed of light is the speed of light. You're not going to get an electron to move any faster. So, what Riverbed developed that's still very relevant today is the ability to, instead of change your latency, mitigate the negative affects of your latency, right. So, if I. >> Or work around it. >> Absolutely, and you can do that at the application level, absolutely, program around it, but there are a lot of protocols out there that aren't necessarily optimized for that longer latency environment, right. So, what we do is, or the adage is, the trip never taken, right, the shortest trip. So, if I have to, not to get into the weeds or anything like that, but if I have to make a thousand round trips to accomplish something, right, and I could put something in there that understands what I was getting, right, that data that I was getting each one of those times and I can take less trips, well then, that just made that faster. So, if I have a thousand round trips and it takes a minute to do, and now I can do ten round trips and it only took ten seconds, or six seconds if we're doing the math right. >> It's kind of like here in D.C., you're local. I noticed that coming from Dulles Airport they have Sirius pricing on the toll roads. That's basically private networking right there. >> That's right. >> These cost path routing opposed to the other side. I was in the, you know. >> Marlin was more describing my trips to the hardware store on the weekends, a thousand round trips, be a lot more economical. But you're right, it is private networking. >> If you're off the road, you're off the packets aren't on the network it saves some room for someone else. >> More traffic, you hear more traffic at the higher speeds. >> You actually could. So, you get two benefits. One is the increase of speed, but the other is the perceived capacity increase of your network. And, we accomplish these things through compression which is really, really simple. I think compression is a must, right. But, through our data duplication. Data duplication is I've seen these patterns before and it's a byte level. We're not talking about an object. I haven't seen a file. No, I've seen these byte level patterns before, I don't need to resend them. And, in traditional network or traditional applications you see pretty much in any organization, right, you typically can get somewhere between 50 and 80, if not sometimes 90% reduction total in traffic. >> My final question before we wrap up this segment here is, Share with the folks, take a minute to talk to the audience about what you're doing with Riverbed at the show and what they should know about the current Riverbed. I know you've guys trying a transformation of yourselves, give a quick plug. Go ahead. >> Absolutely. So, what we're specifically doing here or one of the pieces that is a differentiator for us and our SD WAN is, we went ahead and we thought why couldn't we make that an AWSPPC or a Cloud instance one of my Edge sites, right, connecting into the Cloud, there's many different ways to do it, but why couldn't we make a very simple way of doing that? Why couldn't I take the technology that I'm already putting in place at my data centers, I'm already putting in place at my branch offices, why can't I utilize that to create a secure connection into my BBCs. And, to your point, actually earlier one of the things that's also interesting was Cloud to Cloud. Why couldn't I take that same technology and connect multiple Clouds? Whether they be private Cloud or two public Clouds or connect them all together and take the best of all worlds, right, the best from each and make the best infrastructure that I possibly can. So, what we're showing off here from a SteelConnect perspective is our ability to do that. I can take an AWSVPC, actually I can take all, I think there's 16 regions within AWS and I can interconnect them in less than 10 minutes with the click of a button. And, then back into my infrastructure. So, that and then we also have brought Eternity, which is one of our visibility products that is basically rounded out on our visibility play within the market. We have the network. We have the app. We have the database. Now, we have the end users computer. >> Alright, well, if you could interconnect me to my home in 10 minutes I'm a client. I'd be sold, I'd be all over it. >> I'm going to be in the same traffic as you later. >> I'm not that far from here, but it might as well be another day. Marlin, thanks for the time. >> Absolutely, my pleasure. >> Good to have you on theCUBE, alright. >> Thanks, hope we get to do it again. >> Riverbed has joined us here on theCUBE. We'll be live with more from Washington D.C. right after this.

(energetic techno music) >> Announcer: Live from Washington D.C., it's theCUBE. Covering AWS Public Sector Summit 2017. Brought to you by Amazon Web Services, and its partner, Ecosystem. >> Interviewer: So what can Fugue do for you? Well, I'm going to guess that they can take your agency to the Cloud. >> Josh: You're, you're correct, Jeff. >> John W.: That's exactly what I'm looking at over here, the Fugue booth here, on the show floor at AWS Public Sector Summit 2017. Welcome inside, live on theCUBE channel, John Wells and John Furrier, and Josh Stella, who is the founder, and CEO of Fugue. Did I get it right, by the way? >> You did get it right. >> Jeff: You're taking the agencies to the Cloud, correct. >> Taking agencies to the Cloud, taking companies to the Cloud, too, but of course, this is worldwide public sector, so we're focused on the agencies today. >> Yeah, we were just talking before this even started, just a little historical background here, you were with Amazon back in 2012, when this show started, and you told me that your commission with your colleagues was to get 600 attendees. >> Yeah, we wanted to get 600, I think we got 750, which is classic Amazon style, right. >> John W.: Bonus year. >> We go over. But yeah, over 10,000 registered this year, it's amazing. >> Which shows you that this explosive growth of this area, in terms of the public sector. So let's talk about Fugue a little bit. >> Sure. >> Before we dive a little bit, share with our viewers, core competencies, what your primary mission is. >> So Fugue is an automation system. Fugue is a way to completely automate the Cloud API surface. It's true infrastructure as code, so unlike a deployment tool that just builds something on Cloud, Fugue builds it, monitors it, self-heals it, modifies it every time, alerts if anything drifts, and we've added a layer to that for policy as codes. So you can actually express the rules of your organization, so if you're a government agency, those might be NIST or FISMA rules. If you're a start-up, those might be, we don't open SSH to the world. Those can be just expressed as code. So Fugue fully automates the stack, it doesn't just do deployment, and we just released the team conductor, that will manage dozens of AWS accounts for you, so many of our customers in financial services, and other enterprises have many, many AWS accounts. Fugue allows you to kind of centralize all of that control without slowing down your developers. Without getting in the way of going fast. >> John W.: And what, why is that big news? >> It's big news because in the past, the whole core value prop of Cloud is to go fast, is to innovate, iterate, be disruptive, and move quickly. What happens, though, is as you do that, at the beginning, when you're starting small, it looks pretty easy. You can go fast. But you learn pretty quickly over time that things get very messy and complex. So Fugue accelerates that going-fast part, but keeps everything kind of within the bounds of knowing who's running things, knowing what resources you're actually using. Who built what, who has permissions to do what. So it's really this foundational layer for organizations to build and control Cloud environments. >> Josh, one of the things we talked about in the opening was the government's glacial case of innovation over the years. But the pressure is on the innovate. So the, lot of emphasis on innovation. In an environment that's constrained by regulation, governance, policies. So they have kind of an Achilles heal there, but Cloud gives them an opportunity at a scale point to do something differently, I want to dip into that, but I'll set this question up by quoting a CIO I chatted with who's in the government sector. He's like, "Look, Cloud's like, jumping out of a plane "with a parachute I didn't even know was going to open up." So this is kind of a mindset, he was over generalizing, but again, to the point is, trust, scale, execution, risk. >> Mhm, mhm. >> It's a huge thing. >> Absolutely. >> How do you guys solve that problem for the agencies that want to go to the Cloud, because, certainly they want to go there, I think it's a new normal as Werner said. What do you guys do to make that go away? How do you make it go faster? >> Sure, so Amazon and other Cloud vendors have done a great job of building a very highly trusted, low level infrastructure that you can put together into systems. That's really the core offering. But there's still, in government agencies, as you point out, this need to follow rules and regulations and policies, and check those. So, one of the things Fugue does, is allows you to actually turn those rules into executable compiled code. So, instead of finding out you're breaking a rule a month later, in some meeting somewhere, that's going to loop back, it'll tell you in ten milliseconds. And how to fix it. So we allow you to go just as fast as anyone can on Cloud, but meeting all those extra constraints and so on. >> So you codify policies, and governance type stuff, right? >> That's part of what we do, but we also automate the entire infrastructure and grid. >> So this is the key, this is what I want to kind of jump to that next point. That's cool, but it would make sense that machine learning would probably be like an interesting take away. Cuz' everyone talks about training, data models, and it sounds like what you're doing, if you codify the policies, you probably set up well for growing and scaling in that world. Is that something that's on your radar? >> Sure. >> How do you guys look at that whole, okay I've got machine learning coming down the pike, everyone wants to get their hands on some libraries, and they want to get to unsupervised at some point. >> Yes, yeah it's a great question. So Fugue is really a bridge to that future where the entire infrastructure layer is automated and dynamic. And that's what you're talking about, where you have machine learning that are helping you make decisions about how to do computing. A lot of folks aren't ready for that yet. They're still thinking about the Cloud as kind of a remote data center, in our view, it's actually just a big distributed computer. And so, when you think about things like whether it's machine learning, or just algorithms to run over time that modify these environments to make them more efficient. Fugue is definitely built to get you there, but we start where you're comfortable now, which is just the first thing we have. >> Yeah of course, when you're still early to tells in the water, all kinds of data issues, you see the growth there. So the question is, what is the low hanging fruit for you? What are the use cases? Where are you guys winning, and what's new with your codifying the policies that you're releasing here? What's the use cases, and what're you guys releasing? >> Yeah, so common use case for us is integration with CI, CD, and DevOps for the entire infrastructure chain. So, you'll have organizations that want to go to a fully automated deployment management of infrastructure. And what they've learned in the past is, without Fugue, they might get some of the deployment automated, with a traditional CM tool or something like this, but because they're not doing the self healing, the constant maintenance on the environment, the updating of the environment, the alerting on it, there's a big missing link in terms of that automation. So, we're getting a lot of resonance in the financial services sector, and folks who are sophisticated on Cloud, and are doing large-scale Cloud operations. So, if you think about, uh, Netflix can build full automation for themselves, because they're Netflix. But not everyone fits in that boat. So Fugue is sort of the sorts of capabilities that Netflix built in a very specific way for themselves, we don't use their tools. We're a general purpose solution to that same class of problems. So, really, where we're winning is in automation of, again, deployments and operations of those deployments, but also in things like policy. We're seeing that not just in government but in the private sector as well. >> What are the big bottlenecks, what are the roadblocks for the industry? >> The roadblocks for the industry certainly are bringing, sort of, a legacy patterns to Cloud. Imagining it's a remote data center, thinking of it as virtual machines and storage, instead of just, infinite compute, and infinite resources that you put together. >> John F.: So the mindset's the bottleneck. >> Absolutely, it's cultural, yeah, yeah. And skillset, because in the DevOps Cloud world, everything should be code, and therefore everyone has to be a developer. And so, that's a little new. >> Is scale a big issue for you guys, with your customers? Is that something that they're looking for? And what's the kind of, scope of some of your customers and your use cases in government Clouds. >> Yeah, sure, absolutely. I mean, a lot of us came from AWS, so we know how to build things at scale. But yeah, y'know, a lot of folks start small with Fugue, but they go to very large, very quickly, has been our experience. So, scale across dozens, or hundreds AWS accounts-- >> That's where the automation, if they're not set up properly, bites them in the butt pretty much, right? >> Absolutely, absolutely. So yeah, we get a lot of that too. Going back in and helping people put their system back together the right way for Cloud, because they went there from the-- >> Alright, so what's the magnified learnings from this, from your experience with your company, mobile rounds of finance, you guys are well financed, one of the best venture capitals, the firm's NEA, great backer, you guys are doing well. Over the years, what have you learned, what's the magnification of the learnings, and how do you apply it to today's marketplace? >> Um, we are in a massive transition. We're just beginning to see the effects of this transition. So, from 1947 until the Cloud, you just had faster, smaller, Von Neumann machines in a box. You had any ax that got down to the size of your wristwatch. The Cloud is intrinsically different. And so there is an opportunity now, that's a challenge, but it's a massive opportunity to get this new generation of computing right. So I'd say that the learnings for me, as a technologist coming into a CEO role, are how to relate these deeply technical concepts to the world in ways that are approachable, and that can show people a path that they want to get involved with. But I think the learnings that I've had at AWS and at Fugue are, this is the beginning of this ride. It's not going to end at containers, it's not going to end at Lambda, it's going to continue to evolve. And the Cloud in ten years is going to look massively different than it does now. >> So, when you said, "to get it right," the computer, I mean, such as, or in what way, I mean, we have paths right, routes you could take. So you're saying that there are a lot of options that will be pitfalls, and the others that would be great opportunities. >> Well, that's absolutely right. So, for example, betting on the wrong technologies too soon, in terms of where the Cloud is going to finally land, is a box canyon, right. That's an architectural dead end. If you cannot compose systems across all these disparate Cloud surfaces, the application boundary, the system boundary is now drawn across services. You used to be able to open an IDE, and see your application. Well, now that might be spread across virtual machines, containers, Lambda, virtual discs, block storage, machine learning services, human language recognition services. That's your application boundary. So, if you can't understand all of that in context, you're in real trouble. Because the change is accelerating. If you look at the rate of new services, year over year in the Cloud, it's going up, not down. So the future's tougher. >> So, if I'm a government service, though, and I think John just talked about this, I'm just now getting confidence, right? >> Yes. >> I'm really feeling a little bit better, because I met somebody to hold my hand. And then I hear on the other hand, say, we have to make sure we get this right. So now all of a sudden, I'm backing off the edge again. I'm not so sure. So how do you get your public sector client base to take those risks, or take those daring steps, if you will. You know, we've had a lot of really great conversations and have a lot of great relationships in public sector, what we're seeing there is, like in the commercial world. I mean, public sector wasn't that far behind commercial on Cloud. When I was at Amazon, y'know, five years ago, I worked mostly with public sector costumers, and they were trying hard there, they were champions already, moving there. So, one of the things that Fugue does very effectively is, because we have this ability to deterministically, programmatically follow the rules, it takes it off of the humans, having to go and check. And that's always the slow and expensive part. So we can give a lot of assurance to these government agencies that, for example, if one of their development teams chooses to deploy something to Cloud, in the past, they'd have to go look for that. Well, with Fugue, they literally cannot deploy it, unless it's correct. And that's what I mean by "get it right." Is the developer, who's sitting there, and I've been a developer for decades, they want to do things by the rules. They want to do things correctly. But they don't always want to read the stack of books like this, and follow, y'know, check their boxes. So, with Fugue, you just get a compiler error and you keep going. >> Josh, I wanted to ask you about a new category we see emerging, it's really not kind of mainstream yet, by Wikibon research, and still getting in theCUBE, we get to see things a little bit early. Plus we have a data science team to skim through the predictive analytics. One thing that's clear is SAS businesses are emerging. So, SAS is growing at an astounding rate, platform is a service, and infrastructure's a service, I mean, Javassist doesn't think to see it that way, I don't you do either. It's infrastructure and SAS pretty much. So pretty much, everyone's going to, at some point, be a Cloud service provider. And there'll be a long tail distribution, we believe, on niche, to completely huge, and the big ones are going to be the Amazons, the Facebooks, the Google, but then there's going to be service providers that is going to emerge. They're going to be on Clouds, with governments, so we believe that to be true. If you believe that to be true, then the question is, how do I scale it? So, now I'm a solution architect in an enterprise. And like you said, it's intrinsically different in the Cloud than it was, say on premise, or even the critical traditional enterprise computing. I've got to now completely change my architectural view. >> Yes. >> If you think it's a big computer, then you've got to be an operating systems guy. (laughs) You've got to say, okay, there's a linker, there's a load, there's a compiler, I've got subsystems, I got IO. You got to start thinking that way. How do you talk to your friends, and colleagues, and customers around how to be a new solutions architect. >> Yeah, so I think it's a balancing act. Because we are this transition stage, right. The modern Cloud is still a Prius. (chuckles) And the future Cloud is the Tesla, in terms of how customers use it. We're in this transition phase in technologies, so you have to have one foot in both camps. Immutable infrastructure patterns are incredibly important to any kind of new development, and if you go to the Fugue.cosite or O'Reily, we wrote a little book with them on immutable infrastructure patterns. So, the notion there is, you don't maintain anything, you just replace it. So you stand a compute instance, Verner likes to talk about, these are cattle, not pets, Y'know, or paper cuff computing, that's right. You never touch it, you never do configuration management, you crumple it up, throw it away, and make a new one. That's the right new pattern, but a lot of the older systems that people still rely upon don't work that way. So, you have to have a foot in each camp as a solutions architect in Cloud, or as the CEO of a Cloud company. You have to understand both of those, and understand how to bridge between them. And understand it's an evolution-- >> And the roles within the architecture, as well. >> That's right. >> They coexist, this coexistence. >> Absolutely. You know, it's interesting you said, "everyone's going to become a service provider." I'd put that a little differently, the only surface that matters in the future is APIs. Everything is APIs. And how you express your APIs is a business question. But, fundamentally, that's where we are. So, whether you're a sales force with a SAS, I really don't like the infrastructure and SAS delineation, because I think the line's very blurred. It's just APIs that you compose into applications. >> Well, it's a tough one, this is good debate we could have, certainly, we aren't going to do it live on theCUBE, and arm wrestle ourselves here, and talk about it. But, one of the things about the Cloud that's amazing is the horizontal scalability of it. So, you have great scalability horizontally, but also, you need to have specialty, specialism at the app layers. >> Josh: Yes. >> You can't pick one or the other, they're not mutually exclusive. >> Josh: That's right. >> So, you say, okay, what does a stack look like? (laughs) If everything's in API, where the hell's the stack? >> Yeah, well that's why we write Fugue. Because Fugue does unify all that. Right, you can design one composition in Fugue. One description of that stack. And then run the whole thing as a process, like you would run Apache. >> So you're essentially wrapping a system around, you like almost what Docker Containers is for microservices. You are for computing. >> And including the container's managers. (John F. Laughs) So that's just one more service to us, that's exactly right. And, y'know, you asked me earlier, "how does this affect agencies?" So one thing we're really excited about today is, we just announced today, we're live on GovCloud, so we support GovCloud now, you can run in the commercial regions, you can run in GovCloud, and one of the cool things you can do with Fugue, because of that system wrapping capability, is build systems in public regions, and deploy them on GovCloud and they'll just work, instead of having to figure out the differences. >> Oh that's what what you think about the Cloud, standing up's something that's a verb now. "Hey I'm going to stand this up." That's, what used to be Cloud language, now that's basically app language. >> I think what you're getting at here is something near to my heart, which is all there are anymore are applications. Talking about infrastructure is kind of like calling a chair an assembly of wood. What we're really about are these abstractions, and the application is the first class citizen. >> I want to be comfortable, and sit down, take a load off. >> Josh: That's right, that's right. >> That's what a chair does. And there's different versions. >> John W.: You don't want to stand up, you want to sit down. >> And there's different, there's the Tesla of the chairs, and then there's the wooden hard chair for your lower back, for your back problems. >> Josh: Exactly, exactly. >> The Tesla really is a good use case, because that points to the, what I call, the fine jewelry of a product. Right, they really artistically built amazing product, where the value is not so much the car, yeah there's some innovations with the car, you've got that, with electric. But it's the data. The data powering the car that brings back the question of the apps and the data, again, I want to spend all my time thinking about how to create a sustainable, competitive advantage, and serve my customers, rather than figure out how to architect solutions that require configuration management, and tons of labor. This is here the shift is. This is where the shift is going from non-differentiated operations to high-value added capabilities. So, it's not like jobs are going up. Yeah, some jobs are going away, I believe that. But, it's like saying bank tellers were going to kill the bank industry. Actually, more branches opened up as a result. >> Oh yeah, this is the democratization of computing as a service. And that's only going to grow computing as a whole. Getting back to the, kind of, fine jewelry, you talked about data as part of that, I believe another part of that is the human experience of using something. And I think that is often missing in enterprise software. So, you'll see in the current release of Fugue, we just put into Beta a very, we've spent about two years on it, a graphic user interface that shows you everything about the system in an easily digestible way. And so, I think that the, kind of, the effect of the iPhone on computing in the enterprise is important to understand, too. The person that's sitting there at an enterprise environment during their day job gets in their Tesla, because they also love beautiful things. >> Well, I mean, no other places for you guys to do that democratization, and liberation, if you will. The government Cloud, and public sector, is the public sector. They need, right now they've been on antiquated systems for (chuckles) yeah, not only just antiquated, siloed, y'know, Cobol systems, main framed, and they've got a lot of legacy stuff. >> There is, there's a lot of legacy stuff, and they're a lot of inefficiencies in the process model in how things get done, and so, we love that AWS has come in, and when we were there, we helped do that part. And now with Fugue, we want to take these customers to kind of, the next level of being able to move forward quickly. >> Well, if you want to take your agency to the Cloud, Fugue is your vehicle to do that. Josh Stella, founder, CEO. Thanks for being with us here on theCUBE. >> Thanks so much. >> We appreciate it. We'll continue, live from Washington, D.C. Nation's capital here, AWS Public Sector Summit, 2017 on theCUBE. >> John F.: Alright, great job, well done. (upbeat techno music)

>> Announcer: Live from Washington, DC, it's theCube, covering AWS Public Sector Summit 2017, brought to you by Amazon Web Services and its partner ecosystem. >> Welcome inside the convention center here in Washington, DC. You're looking at many of the attendees of the AWS Public Sector Summit 2017. We're coming to you live from our nation's capital. Several thousand people on hand here for this three-day event, we're here for two days. John Walls, along with John Furrier. John, good to see you again, sir. >> Sir, thank you. >> We're joined by Jay Littlepage, who is the VP of Infrastructure and Operations at Digital Globe, and Jay, thank you for being with us at theCube. >> My pleasure. >> John W: Good to have you. First off, your company, high-resolution, earth imagery satellite stuff. Out-of-this world business. >> Yep. >> Right, tell our viewers a little bit about what you do, I mean, the magnitude of, obviously, the environmental implications of that or defense, safety security, all those realms. >> Okay, well, stop me when I've said too much because I get pretty excited about this. We work for a very cool company. We've been taking earth imagery since 1999, when our first satellite went up in the sky. And, as we've increased our capabilities with our constellation, our latest satellite went up last November. We're flying, basically, a giant camera that we can fly like a drone. So, and when I say giant camera, it's about the size of a school bus, and the lens is about the size of the front of the school bus, and we can take imagery from 700 miles up in space and resolve a pixel about the size of a laptop. So, that gives us an incredible amount of capability, and the flying like a drone, besides just being really cool and geeky, we can sling the lens from basically Kansas City to here in Washington in 15 seconds and take a shot. And so, when world events happen, when an earthquake happens, you know, they're generally not scheduled events, we don't have to have the satellite right above the point where there's something going on on the ground, we can take a shot from an angle of 1,000 miles away, and with compute power and good algorithms, we can basically resolve the picture of the earth, and it looks like we're right overhead, and we're getting imagery out immediately to first responders, to governmental agencies so they can respond very quickly to a disaster happening to save lives. >> So, obviously, the ramifications are endless, almost, right? >> Yes. >> All that data, I mean, you can't even imagine the amount, talk about storage. So, that's certainly a complexity, and then, they are making it useful too all these different sectors. Without getting too simple, how do you manage that? >> Well, you know, it's a big trade-off because, ideally, if storage was free, all of our imagery in its highest consumable form would be available all the time to everybody. Each high-resolution image might be 35 gig by itself. So, you think of that long of flying a constellation, we've got 100 petabytes of imagery. That's too much, it's too expensive to have online all of the time. And so, we have to balance what's going to be relevant and useful to people versus cost. You know, a lot of the imagery goes through cycle where it's interesting until it's not, and it starts to age off. The thing about the planet, though, is we never know what's going to happen, and when something that aged off is going to be relevant again. And so, the balance for my team is really making sure we're hitting the sweet spot on there. The imagery that is relevant is readily accessible, and the imagery that's not is, in its cheapest form, fact or possible, which for us, is compressed, and it's in some sort of archival storage, which for us, now that we've used the Snowmobile, is Glacier. >> Jay, I want to ask to give your thoughts. I want you to talk about DigitalGlobe, before that, some context. This weekend, I was hanging out with my friends in Santa Cruz and kids were surfing. He's a big drone guy, he used to work for GoPro, and she used to buy the drones and, hey, how's it going with the drones. It got kind of boring, here's a great photo I created, but after a while, it just became like Google Earth, and it got boring. Kind of pointed out that he wanted more, and we got virtual reality, augmented reality, experience is coming to users. That puts imagery, place imagery, the globe, pictures, places and things is what you guys do. So, that's not going away any time soon. So, talk about your business, what you guys do, some of the things that you do, your business model, how that's changing, and how Amazon, here in the public sector, is changing that. >> Well, that's a fantastic questions, and our business is changing pretty rapidly. We have all that imagery, and it's beautiful imagery, but increasingly, there's so much of it, and so many of the use cases aren't about human eyeballs staring at pixels. They're about algorithms extracting information from the pixels. And, increasingly, from either the breadth of pixels, instead of just looking at a small area, you can look around it and see what's happening around it and use that as signal information, or you can go deep into an archive and see the same location on the planet over and over over years and see the changes that had happened in terms of time frame. So, increasingly, our market is about extracting information and extracting insights from the imagery more so than it is the imagery itself. And so that's driving an analytics business for us, and it's also driving a services business for us, which is particularly important in the public sector to actually use that for different purposes. >> You can imagine the creativity involved and developers out there watching or even thinking about using satellite imagery in conflux with other data. Remember, they're in the Web 2.0 craze earlier in the last decade. You saw mashups of API with Google Max. Oh yeah, pull a little pin, and then the mobile came. But now, you're seeing mashups go on with other data. And I've heard stats at Uber, for instance, remaps New York City every five days with all that GPS data of the cars, which are basically sensors. So, you can almost imagine the alchemy, the convergence of data. This is exciting for you, I can imagine. Won't you share with us, anecdotally or statistically what you're seeing, how this is playing out? >> Well, yes, some of our biggest commercial customers of our products now are location-based services. So, Uber's using our imagery because the size of the aperture of our lens means we have great resolution. And so, they've been consuming that and consuming our machine learning algorithms to basically understand where traffic is and where people are so that they can refine, on an ongoing basis, where the best pick-up and drop-off locations are. That really drives their business. Facebook's using the imagery to basically help build out the Internet. You know, they want to move into places on the planet where Internet doesn't exist. Well, in order to really understand that, they need to understand where to build, how to build, how many people are there, and you can actually extract all that from imagery by going in in detail and mapping roofs' shapes and roofs' sizes, and, from there, extracting pretty accurate estimates of how many people live in a particular area, and that's driving their project, which is ultimately going to drive access for... >> Intelligence in software, we look at imagery. I mean, we here at Amazon, recognition's their big product for facial recognition, among other pictures. But this is what's getting at, this notion of actually extracting that data. >> Well, you think about it. You know, once the data is available, once our imagery is available, then the sky's the limit. You know, we have a certain set of algorithms that we apply to help different industries, you know, to look at rooftops, to look at water extractions. After a hurricane, we can actually see how the coverage has changed. But, you look at a Facebook, and they're applying their own algorithms. We don't force our algorithms to be used. We provide the information, we try to provide the data. Companies can bring their own algorithms, and then, it's all about what can you learn, and then, what can you do about it, and it's amazing. >> So, here's the question. With the whole polyglot conversation, multiple languages that people speak that's translated into the tech industry, and interdisciplinary forces are in play: Data science, coding, cognitive, machine learning. So, the question is, for you, is that, okay, as this stuff comes together, do you speak DevOps? It's kind of a word, and we hear people say, is that in Russian or is that like English? DevOps is a cloud language mindset. And so, that brings up the question of, are you guys friendly to developers, and because people want to have microservices, I'm from a developer, I'm like, hey, I want those maps. How do I get them, can I buy it as a service, are they loaded on Amazon, how to I gauge with DataGlobe, as a developer or a company? >> Well, you think about what you just said and the customers I just talked about. They're not geospatial customers. You know, they're not staffed with people that are PhDs in extracting information. They're developers that are working for high-tech companies that have a problem that want to solve. >> There are already mobile apps or doing some cool database working in here. >> So, we're providing the raw imagery and the algorithms to very tried and true systems where people can plug into work benches and build artificial intelligence without necessarily being experts in that. And, as a case in point, my team is an IT team. You know, we've got a part of the organization that is all staffed with PhDs. They're the ones that are driving our global... >> John W: PhD is a service. (laughter) >> Well, kind of. I mean, if you think about it, they're driving the leading edge, for these solutions to our customers. But, I've got an IT team, and I've got this problem with all this data that we talked about earlier. Well, how am I actually going to manage that? I'm going to be pulling in all sorts of different sources of data, and I'm going to be applying machine learning using IT guys that aren't PhDs to actually do that, and I'm not going to send them to graduate school. They're going to be using standard APIs, and they're going to be applying fairly generic algorithms, and... >> So, is that your model, is it just API, is there other... >> I think the real key is the API makes it accessible, but a machine learning algorithm is only as good as its training. So, the more it's used, the more it refines itself, the better our algorithm gets. And so, that is going to be the type of thing that the IT developer, the infrastructure engineer of the future becomes, and I've already, basically, in the last couple of years, as we started this journey at AWS, 20% of my staff now, same size staff, but they're software developers now. >> So, I'll take this to the government side. We talked a lot about commercial use. But at the government side, I'm thinking about FEMA, disaster response, maybe a core of engineers, you know, bridge construction, road construction, coastline management. Are all those kind of applications that we see on the dot gov side? >> There are all things that you see that can be done on the dot gov side, but we're doing them all in the commercial environment. The USC's region for AWS, and I think that's actually a really important distinction, and it's something that I think more and more of the government agencies are starting to see. We do a lot of work for one particular government agency and have for years. But 99 point something percent of our imagery is commercial unclassified, and it's available for the purposes that our customers use it for, but they're also available for all those other customers I've talked about. And more and more of what we do, we are doing on the completely open but secure commercial environment because it's ubiquitous for our customers. Not all of our customers do that type of work. They don't need to comply with those rigid standards. It's generally where all AWS products that are released are released to, with the other environments lagging, and they probably don't want me saying that on TV, but I just did. And it's cheaper, you know, we're a commercial company that does public sector work. We have to make a profit, and the best way to do that is to put your environment in a place where if you're going to repeat an operation, like pulling an image of Glacier and build it into something that is consumable by either a human or an algorithm and put it back. If you're going to do something like that a million times, you want to do it really inexpensively. And so, that's where... (crosstalking) >> Lower prices, make things fast, that's Jeff Hayes' ethos, shipping products, that these books in the old days. Now, they're shipping code and making lower-latency systems. So, you guys are a big customer. What are the big implementation features that you have with AWS, and then, the second part of the question is, are you worried about locking. At some point, you're so big, the hours are going to be so massive, you're going to be paying so much cash, should you build your own, that's the big debate. Do you go private cloud, do you stay in the public? Thoughts on those two options? >> Well, we have both. Right now, we're running a 15-year-old system, which is where we create the imagery that comes off the satellites, and it goes into a tape archive. Last year, Reinvent... >> John F: Tape's supposed to be dead! >> Tape will die someday! It's going to die really soon, but, at the Reinvent Conference last year, AWS rolled out a semi truck. Well, the real semi truck was in our parking lot getting loaded with all those tapes, and it's sad... >> John F: Did you actually use the semi? >> We were the first customer ever, I believe, of the Snowmobile. And so, it takes a lot of time and effort to move 12,000 LTO 5 tapes loaded onto a semi and send it off. You know, that represents every image ever taken by DG in the history of our company, and it's now in AWS. So, to your second part of your question, we're pretty committed now. >> John F: Are you okay with that? >> Well, we're okay with that for a couple of reasons. One is, I'm not constraining the business. AWS is cheaper. It will be even cheaper for us as we learn how to pull all the levers and turn all the dials in this environment. But, you know, you think about that, we ran a particular job last year for a customer that consumes 750,000 compute hours in 22 days. We couldn't have done that in our data center. We would have said no. And so, I would... >> I know, I can't do, you can't do it. >> We can't do it! Or, we can do it, come back, the answer will be here in six months. So, time is of the essence in situations like that, so we're comfortable with it for our business. We're also comfortable with it because, increasingly, that's where our customers already are. We are creating something in our current environment and shipping it to Amazon anyway. >> We're going to start a movie about you, with Jim Carrey, Yes Man. (laughter) You're going to say yes to everything now with Amazon. Okay, but this is a good point. Joking aside, this is interesting because we have this debate all the time, when is the cloud prohibitive. In this case, your business model, based on that fact that variables spend that you turn up your Compute is based upon cadence of the business. >> That's exactly right. You know, the thing that's really changed for the business with this model is historically, IT has been a call center, and moving into Amazon, I manage our storage, and I pay for our storage because it's a shared asset. It's something that is for the common good. The business units and different product managers in our business now have the dial for what they spend on the Compute and everything else. So, if they want to go to market really rapidly, they can. If they want to spin it up rapidly, they can. If they want to turn it down, they can. And it's not a fixed investment. So, it allows the business philosophy that we've never had before. >> Jay, I know we're getting tight on time, but I do want to ask you one question, and I did not know that you were the first Snowmobile customers, so, that's good trivia to have on theCube and great to have you. So, while we got you here, being the first customer of AWS Snowmobile when they rolled out at Amazon Reinvent, we covered on SiliconAngle. Why did you jump on that and how was your experience been, share some color onto that whole process. >> Okay, it's been an iterative learning process for both us and for Amazon. We were sitting on all this imagery. We knew we wanted to get in AWS. We started using the Snowballs almost a year and a half ago. But moving 100 petabytes, 80 terabytes at a time, it's like using a spoon to move a haystack. So, when Amazon approached us, knowing the challenge we had about moving it all at once, I initially thought they were kidding, and I realized it was Amazon, they don't kid about things like this, and so we jumped on pretty early and worked with them on this. >> John F: So, you've got blown away like, what? >> Just like. >> What's the catch? >> Really, a truck, really? Yeah, but really. So, it's as secure as it could possibly be. We're taking out the Internet and all the different variables in that, including a lot of cost in bandwidth and strengths, and basically parking and next to our data, and, you know, it's basically a big NFS file system, and we loaded data onto it, the constraint for us being, basically that tape library with 10,000 miles of movement on the tape pads. We had to balance between loading the Snowmobile and basically responding to our regular customers. You know, we pulled 4 million images a year off that tape library. And so, loading every single image we've ever created onto the Snowmobile at the same time was a technical challenge on our side more so than Amazon's side. So, we had to find that sweet spot and then just let it run. >> John F: Now, it's operational. >> So, the Snowmobile is gone. AWS has got it. They're adjusting it right now into the West Region, and we're looking forward to being able to just go wild with that data. >> We got Snowmobiles, we got semis, we have satellites, we have it all, right? >> We have it all, yeah. >> It's massive, obviously, but impressed with what you're doing with this. So, congratulations on that front, and thank you again for being with us. >> My pleasure, thanks for having me. >> You bet, we continue our coverage here from Washington, DC, live on theCube. SiliconAngle TV continues right after this. (theCube jingle)

>> Narrator: Live from Washington D.C. it's the CUBE covering the AWS Public Sector Summit 2017. Brought to you by the Amazon web services and its partner Ecosystem. >> Melvin Greer is with us now he's the director of Data Science and Analytics at Intel. Now Melvin, thank you for being here with us on the CUBE. Good to see you here this morning. >> Thank you John and John I appreciate getting a chance to talk with you it's great to be here at the AWS Public Sector Summit. >> Yeah we make it easy for you. >> I never forget the names. >> John and John. Let's talk just about data science in general and analytics I mean tell us about, give us the broad definition of that. You know the elevator speech about what's being done and then we'll drill down a little bit deeper about Intel and what you're doing with in terms of government work and healthcare work. >> Sure well data science and analytics covers a number of key areas and it's really important to consider the granularity of each of these key areas. Primarily because there's so much confusion about what people think of as artificial intelligence. It's certainly got a number of facets associated with it. So we have core analytics like descriptive, diagnostic, predictive and prescriptive. This describes what happened, what's going to happen next, why is it happening and what should I do about it. So those are core analytics. >> And (mumbles) oh go ahead. >> And a different tech we have machine learning cognitive computing. These things are different than core analytics in that they are recognizing patterns and relying on the concepts of training algorithms and then inference. The use of these trained algorithms to infer new knowledge. And then we have things like deep learning and convolutional neuro networks which use convolutional layers to drive better and better granularity and understanding of data. They often typically don't rely on training and have a large focus area around deep learning and deep cognitive skills. And then all of those actually line up in this discussion around narrow artificial intelligence and you've seen a lot of that already haven't you john? You've seen where we teach a machine how to play poker or we teach a machine how to play Jeopardy or Go. These are narrow AI applications. When we think about general AI however, this is much different. This is when we're actually outsourcing human cognition to a thinking machine at internet speed. >> This is amazing I love this conversation cause couple things, in that thread you just brought up is poker which is great cause it's not just Jeopardy it's poker is unknown conditions. You don't know the personality of the other guy. You don't know their cards their dealing with so it's a lot like unstructured data and you have to think about that so but it really highlights the (mumbles) between super computing paradigm and data and that really kind of changes the game on data science cause the old data warehouse model storing information, pulling it back, latency, and so we're seeing machine learning in these new aps really disrupting old data analytics models. So, I want to get your thoughts on this because and what is Intel doing because you guys have restructured things a bit differently. The AI messages out there as this new revolution takes place with data, how are you guys handling that? >> So Intel formed in late 2016 its artificial intelligence product group and the formation of this group is extremely consistent with our pivot to becoming a data company. So we're certainly not going to be abandoning any of that great performance and strong capabilities that we have in silicon architectures but as a data company it means that now we're going to be using all of these assets in artificial intelligence, machine learning cognitive computing and Intel in fact by using this is really in a unique position to focus on what we have termed and what you'll hear our CEO talk about as the virtuous cycle of growth. This cycle of growth includes cloud computing, data center, and IOT. And our ability to harness the power of artificial intelligence in data science and analytics means that Intel is really capable of driving this discussion around cloud computing and powering the cloud and also driving the work that's required to make a smart and a connected world a reality. Our artificial intelligence product group expands our portfolio and it means that we're bringing all these capabilities that I talked to you that make up data science and analytics. Cognitive, machine learning, artificial intelligence, deep learning, convolutional neuro networks, to bare to solve some of the nation's most significant and important problems and it means that Intel with its partners are really focused on the utilization of our core capabilities to drive government missions. >> Well give us an example then in terms of federal government NAI. How you're applying that to the operation of what's going on in this giant bureaucracy of a town that we have. >> So one of the things that I'm most excited about it that there's really no agency almost every federal agency in the U.S. is doing an investigation of artificial intelligence. It started off with this discussion around business intelligence and as you said data warehousing and other things but clearly the government has come to realize that turning data into a strategic asset is important, very very important. And so there are a number of key domain spaces in the federal government where Intel has made a significant impact. One is in health and life sciences so when you think about health and life sciences and biometrics, genomics, using advanced analytics for phenotype and genotype analysis this is where Intel's strengths are in performance in the ability to deliver. We created a collaborative cancer cloud that allows researches to use Intel hardware and software to accelerate the learnings from all of these health and life sciences advances that they want. Sharing data without compromising that data. We're focused significantly on cyber intelligence where we're applying threat and vulnerability analytics to understanding how to identify real cyber problems and big cyber vulnerabilities. We are now able to use Intel products to encrypt from the bios all the way up through the application stack and what it means is, is that our government clients who typically are hyper sensitive around security, get a chance to have data follow their respective process and meet their mission in a safe and secure way. >> If I can drill down on that for a second cause this is kind of a really sweet area for innovation. Data is now the new development environment the new development >> You said Bacon is the Oil is the new bacon (laughing) >> Versus the gold nuggets so I was talking with >> You hear what he said? >> No. >> It's the new bacon. >> The new bacon (laughs) love that. >> Data's the new bacon. >> Everyone loves bacon, everyone loves data. There's a thirst for the data and this also applies is that I ask you the role of the CDO, the chief data officer is emerging in companies and so we're seeing that also at the federal level. I want to get your thoughts on that but to quote the professor from Carnegie Mellon who I interviewed last week said the problem with a lot of data problems its like looking for a needle in the haystack with there's so much data now you have a haystack of needles so his premise is you can't find everything you got to use machine learning and AI to help with that so this is also going to be an issue for this chief data officer a new role. So is there a chief data officer role is there a need for that is there a CCO? Who handles the data? (laughing) >> Yeah so this is >> it's a tough one cause there's a lot a tech involved but also there's policies. >> Yeah so the federal government has actually mandated that each agency assign a federal chief data officer at the agency level and this person is working very closely with the chief information officer and the agency leaders to insure that they have the ability to take advantage of this large set of data that they collect. Intel's been working with most of the folks in the federal data cabinet who are the CDO's who are working to solve this problem around data and analysis of data. We're excited about the fact that we have chief data officers as an entry point to help discuss this hyper convergence that you described in technology. Where we have large data sets, we have faster hardware, of course Intel's helping to provide much of that and then better mathematics and algorithms. When we converge these three things together it's the soup that makes it possible for us to continue to drive artificial intelligence but that not withstanding federal data officers have a really hard job and we've been engaging them at many levels. We just had our artificial intelligence day in government where we had folks from many federal agencies that are on that cabinet and they shared with us directly how important it is to get Intel's on both hardware, hardware performance but also on software. When we think about artificial intelligence and the chief data officer or the data scientist this is likely a different individual than the person that is buying our silicon architectures. This is a person who is focused primarily on an agency mission and is looking for Intel to provide hardware and software capabilities that drive that mission. >> I got to ask you from an Intel perspective you guys are doing a lot of innovative things you have a great R and D group but also silicon you mentioned is important and you know software is eating the world but data's eating software so what's next what's eating data? We believe it's memory and silica and so one of the trends in big data is real time analytics is moving closer and closer to memory and then and now silicon who have some of those security paradigms with data involved seeing silicon implementations, root security, malware, firmware, kind of innovations. This is an interesting trend cause if software gets on to the silicon to the level that is better security you have fingerprinting all kinds of technologies. How is that going to impact the analytics world? So if you believe that they want faster lower latency data it's going to end up in the silicon. >> John you described exactly why Intel is focused on the virtuous cycle of growth. Because as more cloud enabled data moves itself from the cloud through our 5g networks and out to the edge in IOT devices whether they be autonomous vehicles or drones this is exactly why we have this continuum that allows data to move seamlessly between these three areas and operationalizes the core missions of government as well as provides a unique experience that most people can't even imagine. You likely saw the NBA finals you talked about Kevin Durant and you saw there the Intel 360 demonstration >> Love that! >> Where you're able to see how through different camera angles the entire play is unfolding. That is a prime example of how we use back end cloud hyper connected hardware with networks and edge devices where we're pushing analytics closer and closer to the edge >> by the way that's a real life media example of an IOT situation where it's at the edge of the network AKA stadium. I mean we geek out on that as well as Amazon has the MLB thing Andy (mumbles) knows I love that because it's like we're both baseball fans. >> We're excited about it too we think that along with autonomous vehicles, we think that this whole concept of experiences rather than capabilities and technologies >> but most people don't know that that example of basketball takes massive amounts of compute I mean to make that work at that level. >> In real time. >> This is the CG environment we're seeing with gaming culture the people are expecting an interface that looks more like Call of Duty (laughing) or Minecraft than they are Windows desktop machines what we're used to. We think that's great. >> That's why we say we're building the future John. (men laughing) >> You touched on something you said a little bit ago. A data officer of the federal government has got a tough job, a big job. >> Yes. >> What's the difference between private and public sector somebody who is handling the same kinds of responsibilities but has different compliance pressures different enforcement pressures and those kinds of things so somebody in the public space, what are they facing that somebody on the other side of the fence is not? >> All data officers have a tough job whether it's about cleansing data, being able to ingest it. What we talk about, and you described this, a haystack of needles is the need and ability to create a hyper relevancy to data because hyper relevancy is what makes it possible for personalized medicine and precision medicine. That's what makes it possible for us to do hyper scale personalized retail. This is what makes it possible to drive new innovation is this hyper relevancy and so whether you're working in a highly regulated environment like energy or financial services or whether you're working in the federal government with the department of defense and intelligence agencies or deep space exploration like at NASA you're still solving many data problems that are in common. Of course there are some differences right when you work for the federal government you're a steward of citizen's data that adds a different level of responsibility. There's a legal framework that guides how that data's handled as opposed to just a regulatory and legal one but when it comes to artificial intelligence all of us as practitioners are really focusing on the legal, ethical, and societal implications associate with the implementation of these advanced technologies. >> Quick question end this segment I know we're a little running over time but I wanted to get this last point in and this is something that we've talked on the CUBE a lot me and Dave have been debating because data is very organic innovation. You don't know what your going to do until you get into it, alchemy if you will, but trust and security and policy is a top down slow down mentality so often in the past it's been restricting growth so the balance here that you're getting at is how do you provide the speed and agility of real time experiences while maintaining all the trust and secure requirements that have slowed things down. >> You mention a topic there John and in my last book, 21st Century Leadership I actually described this concept as ambidextrous leadership. This concept of being able to do operational excellence extremely well and focus on delivery of core mission and at the same time be in a position to drive innovation and look forward enough to think about how, not where you are today but where you will be going in the future. This ambidexterity is really a critical factor when we talk about all leadership today, not just leaders in government or people who just work mostly on artificial intelligence. >> It's multidimensional, multi disciplined too right I mean. >> That's right, that's right. >> That's the dev opps ethos, that's the cloud. Move fast, I mean Mark Zuckerberg had the best quote with Facebook, "move fast and break stuff" up until that time he had about a billion users and then changed to move fast and be secure and reliable. (laughing) >> Yeah and don't break anything >> Well he understood you can't just break stuff at some point you got to move fast and be reliable. >> One of five books I want to mention by the way. >> That's right I'm working on my sixth and seventh now but yeah. >> And also the managing of the Greer Institute of Leadership and Management so you've written now almost seven books, you're running this leadership, you're working with Intel what do you do in your spare time Melvin? >> My wife is the chef and >> He eats a lot. (laughing) >> And so I get a chance to chance to enjoy all of the great food she cooks and I have two young sons and they keep me very very busy believe me. >> I think you're busy enough (laughing). Thanks for being on the CUBE. >> I very much appreciate it. >> It's good to have you >> Thank you. >> With us here at the AWS Public Sector Summit back with more coverage live with here on the Cube, Washington D.C. right after this.

>> Announcer: Live from Washington, D.C., it's theCUBE, covering AWS Public Sector Summit, 2017. Brought to you by Amazon web services and it's partner, Ecosystem. >> And welcome to our nation's capitol. Here we are in Washington, D.C. TheCUBE coming live from the Walter Washington Convention Center, here for AWS Private Sector Summit. It's our maiden voyage with the Public Sector so looking forward to this. John Walsh and John Furrier, glad to have you along for the ride, John, this is going to be a good week. >> Hey, it'll be fun. >> A good couple of days. John Galvin joins us. He is the Vice President and General Manager of the Public Sector Intel. John, thank you for being with us here on theCUBE; glad to have you. >> It's a pleasure to be here, thank you. >> Tell us a little bit first off, about your portfolio. >> J.Galvin: Sure. >> I understand you cover not only United States, but you have a global footprint as well. Touch base a little bit with our audience with what you're up to. >> Yeah, absolutely. So first of all, I have to put it in perspective for everyone. People know us as a micro-processor company. They don't always attribute us to going out and calling on government, or education decision makers. So we really act as a trusted advisor. We don't sell directly to government or to education entities, and I have sales people, or account exec's, around the world who are going in and meeting with ministers of education or ministers of ICT. Sometimes it's a school superintendent or a district superintendent, but, overall, what we're talking about is digital transformation and how technology can be used to advance government or advance education. And sometimes at a national level, could be at a state level, could be at a district level. >> Well, John and I were talking in our open segment just a little bit ago, about maybe a glacial pace isn't fair to say about how government had that reputation, obviously, for many years about being, maybe, reluctant. >> Right. >> To embrace change. What do you see now in that space? Is there this shift going on, that there's more of an embracing of technology? And of more entrepreneurial kind of spirit within the operation of government? >> Yeah, absolutely. It is happening so quickly. The categorization of government moving slowly is absolutely true. Education the same. But now wherever I go around the world, everyone is talking about transformation and they're starting to launch projects that might be a pilot or a proof of concept, but they're getting started. The challenge is when you talk about digital transformation it is so big so it becomes difficult for governments to really get their hands around it, and what are they going to do to improve citizens quality of life. Is that going to be a healthcare initiative? Is it going to be a transportation initiative? Sometimes it's an education initiative; and we're seeing them all. I think what is causing it to advance now is they see proof-points that it works. That by making those investments it really is changing the quality of life for people. And in emerging markets they don't have existing infrastructure that they have to tear out and replace. And some of the mature markets, it's how do you actually breakdown those silos. >> Well, John, I'm really glad you came on. Intel, in my opinion, I've been following Intel for many years, recently, has been pretty amazing. But you guys have always been a bellwether for trends, I'd say, five to 10 years out. I mean, look at everything that Intel's done with technology You have that five to 10 year stair instantly in what you're proposing. We've been seeing a lot of the AI commercials with Intel, what is the Public Sector trends that intersect with the vision of Intel? >> Well, you're absolutely right. If you look at what Intel does we're similar to the auto industry. It takes us five to six years to produce our next processor, and so we have to be looking that far out of what are the use cases, and really, what are those technological boundaries that we're going to either cross or break? And AI is absolutely the conversation today. It's sort of around artificial intelligence and it's no longer science fiction. We're not talking about it in the future; we're now talking about how can we use it today? Machine learning big, big topic, and not just the role that Intel plays, but companies like AWS; big players, in terms of how that actually comes to life in your home. It's not just how it's going to come to life in a big government institution or a big enterprise. >> And the Public Sector landscape, for the folks that are watching some know the Public Sector, what is the Public Sector? Because it's not the government. There's education, there's health, so what's the layout. How do you categorically look at it? How should people think about Public Sector? Not just GovCloud because there's a GovCloud, but is there a Public Sector cloud? I mean, how should people think about it? >> Yeah, great question. I work as part of a group at Intel that are all verticals. There's a healthcare team, there's a transportation team, there's an energy team. Public Sector is completely different because we're all of those things. We're working on transportation projects, we're working big healthcare projects, and so Public Sector you have to look at in the biggest sense where it's not just a federal presence but it is a state presence, it's a city presence or a county presence. And so our opportunity is to be able to connect all of those things, and that is what I think is so exciting about the transformation that is taking place right now is for that vision to be realized those silos really need to be broken. You know, you're going to hear comments over the next couple of days about forming a data lake. Which is bringing in all of those data streams into a single spot so that you can apply analytics and be able to get to insights that we've never been able to get to before. >> So how do you do that if you talk about municipality levels, state levels, federal levels, different operating systems, different processes, different procedures? And all great resources, how do you pull all that together and make that an asset instead of a morass? >> Well, in that question you just captured how big this opportunity is, and the way that we do it is we work with our ecosystem partners. The strength that Intel has when we enter into those conversations is we work with everyone. We work with the big cloud providers, we work with all the different operating system providers. We're not only with the computer companies that are our partners and our customers, but we're working now with internet and think companies, and so we have the ability to now work across that ecosystem to start pulling all of those pieces together. The heart of your question though is that those are all different systems that have been built over time. And if you look at what's been happening in enterprise over the past 10 years is CIO's and CTO's at the enterprise levels have been breaking down those silos and moving more to single systems and big data streams. And now that's what's happening with in the Public Sector is that data has to come together. >> John, talk about the collaboration between Intel and AWS and what is going on with you guys, how you guys are working together, and what's the impact in serving Public Sector customers? >> Well, we have had a great partnership with AWS from the beginning. (audio cuts out) (audio cuts out) That's going to take on this bigger vision is going to have a cloud discussion. There will still be things that they're going to be doing on premise, but it's most likely going to be a hybrid environment. And so with AWS we really have the opportunity to have a bigger discussion, where they can really have that cloud discussion and even some of the analytics layer. They're also doing more at an IOT perspective; we're able to join that conversation in terms of how our technology really plays into it. But I think the other thing we're able to do with AWS is really look for innovators. We're able to identify either those small companies, or even some of the cities are doing some really great things. And then because of their global footprint and our global footprint we can share that pretty broadly. >> And ecosystem's critical. You guys, Intel's always been ecosystem friendly company. With that in mind I got to ask you the question that everyone's talking about, and certainly, we're covering Mobile World Congress this year in Barcelona. And you couldn't go anywhere without hearing 5G and these new phones that are coming out. And then under the hood network transformation, you're hearing about software to find networking, machine learning, AI a lot of things that you guys are talking about. So the question for you is Smart Cities. It is a really, really hot opportunity just to even think about the concept of what a Smart City entails. I mean, here in D.C., like other cities, they have bicycles people can take out and ride around. That's a smart city, that's a cool service. But now you bring digital all to it. Imagine, Air B&B, you've got Uber, you've got Lift you've got all kinds of digital services, digital experiences. This is a government, this is a Public Sector issue. This is an interesting one. How is Intel's view on Smart Cities, how do you see that rolling out? >> First of all, we're very excited about what's happening within Smart Cities, and to the beginning of your question we think 5G is going to be an accelerant. It's going to cause it to happen even faster than it's happening now. What's interesting about Smart City is that it really does take a lot of different formats. And so we see cities who are really focused on public security and safety. We have examples whether it's Singapore, London of how they're now capturing new data with the cameras that they put up, and can do real-time analytics on it using AI and machine learning. So it's not that they just have all of these data streams, but they're doing real-time analysis of the data stream to be able to identify potential threats. But we also have examples where we're seeing cities invest in new technology to, essentially, replace what are the old ways of us being able to communicate and engage with the government. And that could be as simple as there's new information that's available to us. Or as they're collecting all these data streams they're making that data public and available for innovation, and so entrepreneurs now have the ability to also build solutions on those data streams. It's an incredibly exciting time. >> I mean, it's mind boggling to just think about how we live our lives in our cities. I can call the police department, the fire department, call for services in the analog world. Imagine video chat. Is that going to go to the certain departments? So how people engage, which side of the street do the cars drive on, who decides all that? And this is kind of how big this is. It's mind blowing. >> Well, it is big, and I'm going to answer that in two ways. Yes, the way that we did things before is changing and it's changing rapidly. To your 911 reference, I don't know, does it have to be a video engagement? Or through video are we actually capturing real-time that there's an incident that the fire department or an ambulance or police need to be dispatched. Where no phone call actually needs to be made. >> J.Furrier: Real-time analytics. >> Yeah. >> Predicted, prescriptive analytics could come to the table. >> Yeah, absolutely. And so we're already seeing examples of that, where that's happening today. What we're not seeing happening at scale, but I think we will see it happening at scale, all of those early adopters they had to figure it out on their own. But now we have blueprints, we have frameworks that we can share with other cities where they will be able to do it much more quickly. >> All right, what project really stands out for you, in all the things you're looking at, in the Public Sector because there's so much going on that you guys are doing I mean, props to Intel love what they're doing. The AI mission really puts a vision in place but also it's reality now with machine learning. What projects stand out for you that you see as real innovative, collaborative between Intel and AWS? >> Yeah, so we did a project with AWS where we, essentially, created a competition for new ideas to be able to come forward, and out of that what we've seen is some cities really doing some innovative things, just taking those first steps. What that does for us is it gives us a broader view than we would be able to get on our own. But some of that's basic. Say exciting stuff, we have exciting examples, the kiosks on the street corners in New York are an exciting example. What we see some of the universities doing, I think, is really exciting. Universities around the world have an issue with student retention. Where they just experience high drop out rates at the end of the freshman year and the end of the sophomore year. The challenge is how do you identify a student at risk? Well, automate attendance and you can now see are students actually attending classes. Or are they skipping class? Start using sensors and beacons on the campus and you can actually detect what those student patterns are and you just might need to have a counselor step in or a professor step in and really sit down with them and walk them through it. >> Use the IOT example, humans are things too, right? I mean, wearables, they got all kinds of sensors that could be even on-person device too. Absolutely, we have been working with the University of Texas Arlington, exactly, on that project. Through a sensor you can actually capture the emotional state of student. Are they highly stressed? And should that be, again, an environment where-- >> Explain how. How does that work? >> Through body temperature and -- >> So biometrics being measured. >> Yeah. >> Body temperature, respiration rates, all those kinds of things. >> Mental health is a huge issue in colleges and universities around the pressure. >> You can see that idea from a health perspective, strep throat, right? >> Sure. >> It's like the freshman plague. Every freshman gets strep throat. But if you could identify anxiety as it's being formulated before it manifests itself in academic performance, you could treat that. >> Sure, and now you combine that with capturing data from the student cafeteria or dorms of what are they're eating patterns, what are they're sleeping patterns? Are they actually getting enough sleep? So you get a much more holistic view of the student. And we have to be careful here, right, because-- >> Host: There's privacy concerns. >> Right, there's absolutely privacy and security concerns. And anyone who engages in these projects, heightened awareness of that. So it really is about quality of life and how do you create a better educational experience, not create anything that's threatening, but it becomes a much more personalized learning experience. >> The convergence and the conflicts between IOT and cloud and processing power and software, it's interesting, I was looking on prior to the show coming in I saw on your website at Intel Farmers in America. And then on Amazon's site there's a City on the Cloud. Can you take a minute and explain those projects. I think they're both Intel and AWS collaborations. Can you just take a minute to explain the City on the Cloud and the Farmers of America, what's the big aha there? >> So it's a three year project that we've been working on in collaboration with AWS, and the whole idea was for us to be able to identify some innovative ideas within the space because it is still a new area. How do we, essentially, give some of these entrepreneurs and innovative people a chance to be able to bring their idea into fruition? And so agriculture and Farmers America's a great example because that data is being collected in terms of weather patterns and how they can now, essentially, access that data to be able to plan differently what they're doing as well as better enable them to share with others what they're finding as they're making changes too. >> The farm tech has been hot on the D.C. community, certainly, in the Silicon Valley seeing people doing farm tech. Farm tech is one of those things, agriculture's a huge area that health implications too. People are interested in automating a lot of things and bringing tech there. And then also healthcare is a factor too. One of the areas is education but healthcare is another one that you guys are, what's the new thing in there that you guys are doing in healthcare? >> Yeah, we're doing quite a bit in healthcare around the world, and if you really think about it the challenge with healthcare is that your records are typically with your doctor or with your hospital. They're not always shared and they don't move with you when you travel. And so the first opportunity is how does that data actually become standardized so that it can actually be shared. But the other opportunity in healthcare is for those CTO's and CIO's to start using data very differently, to understand the patterns of what's happening within their hospitals. And you're earlier reference, John, to strep throat within a campus, how do you, essentially, start tracking that there's a trend and that there's something that you could potentially deal with much more quickly once you have the insights to it. >> All right, so take a minute as end this segment here, I want to get your thoughts on, give us a taste and showcase some of the Intel speeds and feeds, some of the tech, what's under the hood, what's coming out of Intel that's powering all of this because remember we're all driving the self-driving digital tooling out there. It's all powered by the Zeons, all kinds of cool stuff. What's the latest state-of-the-art that you got from Intel that you guys are bringing to the market in the Public Sector? >> Yeah, well, thank you for that question. I don't normally get it. >> Host: John loves it. He's a speed and feed guy. >> To get too much feedback. Too geeky. >> Well, your earlier question was around AI and machine learning and for us that's the zonify. And if you look at the power of zonify it's, essentially, three times the teraflops of the largest super computer that existed 20 years ago, in a single processor. And so for us it's an opportunity to then really be able to advance and accelerate what's happening with artificial intelligence as well as machine learning. >> Well, it's an exciting new world. Obviously with a realm that goes healthcare to ag, to education, to government with Intel very much at the center of that. John, thanks for being with us. >> It was great to be here. >> We appreciate the time on theCUBE. We look forward to having you back. We'll continue our coverage live here from the AWS Public Sector Summit here on theCUBE. Back with more in just a bit. (upbeat music)

>>from around the globe. It's the queue with digital coverage of AWS Public sector online brought to you by Amazon Web services. Everyone welcome back to the Cube's virtual coverage of AWS Public sector online summit, which is also virtual. I'm John Furrier, host of the Cube, with a great interview. He remotely Jennifer Cronus, who's the general manager with the D. O. D. Account for Amazon Web services. Jennifer, welcome to the Cube, and great to have you over the phone. I know we couldn't get the remote video cause location, but glad to have you via your voice. Thanks for joining us. >>Well, thank you very much, John. Thanks for the opportunity here >>to the Department of Defense. Big part of the conversation over the past couple of years, One of many examples of the agencies modernizing. And here at the public sector summit virtual on line. One of your customers, the Navy with their air p is featured. Yes, this is really kind of encapsulate. It's kind of this modernization of the public sector. So tell us about what they're doing and their journey. >>Sure, Absolutely. So ah, maybe er P, which is Navy enterprise resource planning is the department of the Navy's financial system of record. It's built on S AP, and it provides financial acquisition and my management information to maybe commands and Navy leadership. Essentially keep the Navy running and to increase the effectiveness and the efficiency of baby support warfighter. It handles about $70 billion in financial transactions each year and has over 72,000 users across six Navy commands. Um, and they checked the number of users to double over the next five years. So essentially, you know, this program was in a situation where their on premises infrastructure was end of life. They were facing an expensive tech upgrade in 2019. They had infrastructure that was hard to steal and prone to system outages. Data Analytics for too slow to enable decision making, and users actually referred to it as a fragile system. And so, uh, the Navy made the decision last year to migrate the Europe E system to AWS Cloud along with S AP and S two to s AP National Security Services. So it's a great use case for a government organization modernizing in the cloud, and we're really happy to have them speaking at something this year. >>Now, was this a new move for the Navy to move to the cloud? Actually, has a lot of people are end life in their data center? Certainly seeing in public sector from education to modernize. So is this a new move for them? And what kind of information does this effect? I mean, ASAP is kind of like, Is it, like just financial data as an operational data? What is some of the What's the move about it Was that new? And what kind of data is impacted? >>Sure. Yeah, well, the Navy actually issued a Cloud First Policy in November of 2017. So they've been at it for a while, moving lots of different systems of different sizes and shapes to the cloud. But this migration really marked the first significant enterprise business system for the Navy to move to the actually the largest business system. My migrate to the cloud across D o D. Today to date. And so, essentially, what maybe Air P does is it modernizes and standardizes Navy business operation. So everything think about from time keeping to ordering missile and radar components for Navy weapon system. So it's really a comprehensive system. And, as I said, the migration to AWS govcloud marks the Navy's largest cloud migration to date. And so this essentially puts the movement and documentation of some $70 billion worth of parts of goods into one accessible space so the information can be shared, analyzed and protected more uniformly. And what's really exciting about this and you'll hear from the Navy at Summit is that they were actually able to complete this migration in just under 10 months, which was nearly half the time it was originally expected to take different sizing complexity. So it's a really, really great spring. >>That's huge numbers. I mean, they used to be years. Well, that was the minicomputer. I'm old enough to remember like, Oh, it's gonna be a two year process. Um, 10 months, pretty spectacular. I got to ask, What is some of the benefits that they're seeing in the cloud? Is that it? Has it changed the roles and responsibilities? What's what's some of the impact that they're seeing expecting to see quickly? >>Yeah, I'd say, you know, there's been a really big impact to the Navy across probably four different areas. One is in decision making. Also better customer experience improves security and then disaster recovery. So we just kind of dive into each of those a little bit. So, you know, moving the system to the cloud has really allowed the Navy make more timely and informed decisions, as well as to conduct advanced analytics that they weren't able to do as efficiently in the past. So as an example, pulling financial reports and using advanced analytics on their own from system used to take them around 20 hours. And now ah, maybe your API is able to all these ports in less than four hours, obviously allowing them to run the reports for frequently and more efficiently. And so this is obviously lead to an overall better customer experience enhance decision making, and they've also been able to deploy their first self service business intelligence capabilities. So to put the hat, you know, the capability, Ah, using these advanced analytics in the hands of the actual users, they've also experienced improve security. You know, we talk a lot about the security benefits of migrating to the cloud, but it's given them of the opportunity to increase their data protection because now there's only one based as a. We have data to protect instead of multiple across a whole host of your traditional computing hardware. And then finally, they've implemented a really true disaster recovery system by implementing a dual strategy by putting data in both our AWS about East and govcloud West. They were the first to the Navy to do those to provide them with true disaster become >>so full govcloud edge piece. So that brings up the question around. And I love all this tactical edge military kind of D o d. Thinking the agility makes total sense. Been following that for a couple of years now, is this business side of it that the business operations Or is there a tactical edge military component here both. Or is that next ahead for the Navy? >>Yeah. You know, I think there will ultimately both You know that the Navy's big challenge right now is audit readiness. So what they're focusing on next is migrating all of these financial systems into one General ledger for audit readiness, which has never been done before. I think you know, audit readiness press. The the D has really been problematic. So the next thing that they're focusing on in their journey is not only consolidating to one financial ledger, but also to bring on new users from working capital fund commands across the Navy into this one platform that is secure and stable, more fragile system that was previously in place. So we expect over time, once all of the systems migrate, that maybe your API is going to double in size, have more users, and the infrastructure is already going to be in place. Um, we are seeing use of all of the tactical edge abilities in other parts of the Navy. Really exciting programs for the Navy is making use of our snowball and snowball edge capabilities. And, uh, maybe your key that that this follows part of their migration. >>I saw snow cones out. There was no theme there. So the news Jassy tweeted. You know, it's interesting to see the progression, and you mentioned the audit readiness. The pattern of cloud is implementing the business model infrastructure as a service platform as a service and sass, and on the business side, you've got to get that foundational infrastructure audit, readiness, monitoring and then the platform, and then ultimately, the application so a really, you know, indicator that this is happening much faster. So congratulations. But I want to bring that back to now. The d o d. Generally, because this is the big surge infrastructure platform sas. Um, other sessions at the Public sector summit here on the D. O. D is the cybersecurity maturity model, which gets into this notion of base lining at foundation and build on top. What is this all about? The CME EMC. What does it mean? >>Yeah, well, I'll tell you, you know, I think the most people know that are U S defense industrial base of what we call the Dev has experienced and continues to experience an increasing number of cyber attacks. So every year, the loss of sensitive information and an election property across the United States, billions each year. And really, it's our national security. And there's many examples for weapons systems and sensitive information has been compromised. The F 35 Joint Strike Fighter C 17 the Empty Nine Reaper. All of these programs have unfortunately, experience some some loss of sensitive information. So to address this, the d o. D. Has put in place, but they all see em and see which is the Cybersecurity Maturity Models certification framework. It's a mouthful, which is really designed to ensure that they did the defense industrial base. And all of the contractors that are part of the Defense Supply Chain network are protecting federal contract information and controlled unclassified information, and that they have the appropriate levels of cyber security in place to protect against advanced, persistent, persistent threats. So in CMC, there are essentially five levels with various processes and practices in each level. And this is a morton not only to us as a company but also to all of our partners and customers. Because with new programs the defense, investor base and supply take, companies will be required to achieve a certain see MNC certification level based on the sensitivity of the programs data. So it's really important initiative for the for the Deal E. And it's really a great way for us to help >>Jennifer. Thanks so much for taking the time to come on the phone. I really appreciate it. I know there's so much going on the D o d Space force Final question real quick for a minute. Take a minute to just share what trends within the d o. D you're watching around this modernization. >>Yeah, well, it has been a really exciting time to be serving our customers in the D. And I would say there's a couple of things that we're really excited about. One is the move to tactical edge that you've talked about using out at the tactical edge. We're really excited about capabilities like the AWS Snowball Edge, which helped Navy Ear Key hybrid. So the cloud more quickly but also, as you mentioned, our AWS cone, which isn't even smaller military grades for edge computing and data transfer device that was just under £5 kids fitness entered mailbox or even a small backpacks. It's a really cool capability for our diode, the warfighters. Another thing. That's what we're really watching. Mostly it's DRDs adoption of artificial intelligence and machine learning. So you know, Dear D has really shown that it's pursuing deeper integration of AI and ML into mission critical and business systems for organizations like the Joint Artificial Intelligence. Enter the J and the Army AI task force to help accelerate the use of cloud based AI really improved war fighting abilities And then finally, what I'd say we're really excited about is the fact that D o. D is starting Teoh Bill. New mission critical systems in the cloud born in the cloud, so to speak. Systems and capabilities like a BMS in the airports. Just the Air Force Advanced data management system is being constructed and created as a born in the cloud systems. So we're really, really excited about those things and think that continued adoption at scale of cloud computing The idea is going to ensure that our military and our nation maintain our technological advantages, really deliver on mission critical systems. >>Jennifer, Thanks so much for sharing that insight. General General manager at Amazon Web services handling the Department of Defense Super important transformation efforts going on across the government modernization. Certainly the d o d. Leading the effort. Thank you for your time. This is the Cube's coverage here. I'm John Furrier, your host for AWS Public sector Summit online. It's a cube. Virtual. We're doing the remote interviews and getting all the content and share that with you. Thank you for watching. Yeah, Yeah, yeah, yeah, yeah