>> Live from Las Vegas, it's theCUBE, covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel and their ecosystem partners. >> Welcome back. Here live on theCUBE, which we continue our day one coverage of AWS re:Invent, along Lauren Cooney. I'm John Walls and 40,000 of our best friends. >> Closest friends. >> That's right. It's a great venue. The Sands is. We're joined now by Tyson Clark. He's the technical director of Air Bud Entertainment. Tyson, thanks for joining us here on theCUBE. >> Thank you for having me. >> First off, let's talk about Air Bud. I mean so, you guys made Air Bud, right? >> We did. >> And you have other projects going as well? >> Yep. Right now we're working on a TV series for Disney. It's going to be about 22 episodes teaching how puppies become puppies while their owners are at school. >> How puppies become puppies? >> How puppies become puppies! >> Coming to a theater, maybe a TV channel near you? >> Disney Streaming. >> Disney Streaming? Good enough, fair enough. >> Aw, very cool. >> Alright tell us about technical director. So, you're the IT guy. >> I am the IT guy. >> You're handling a multitude of problems from a lot of different stakeholders. Tell us about it. >> So I do everything from password reset and the easy stuff all the way up to the most complicated, setting up our whole network, rendered farms, et cetera. >> So you're doing full stack IT? >> I'm doing absolutely everything. Full stack, everything. >> That's pretty impressive. >> A rare breed. >> It is. It's definitely a hand full. >> What do you work on that I would say, we've been talking to folks, like Cohesity and things along those lines. Do you use Cohesity? What are some of the things that you do with them? >> I definitely use Cohesity for our backups. They are a lifesaver. Tape backup just wasn't cutting it for us. We were generating way too much data to be able back it up to tape. Cohesity has allowed us to backup to that and pass it off to the cloud for archival. >> Well, wow. >> Sp what, in terms of the entertainment company, you talk about the data that their generating. >> Yes. >> I mean what are they trying to keep track of? What are you trying to do for them in that respect that hasn't been done before? >> So what we're doing is when we film something, we don't want to get rid of those assets. They're pretty expensive to make. So, we got to hold on to them. We got to make sure they're all recorded. We pass it off to the cloud for archival and then, next movie, say we need a dog from that movie, or an object we built. We can always bring it back and then reuse it. >> From a security standpoint, because there have been some instances-- >> Some pretty bad ones, yep. >> Where's that fit on your pyramid of concern? >> That's extremely high. In the media entertainment business it's very strict on what security rules are. We're right up there. It's pretty much number one. >> Great, so what do you hear? What's interesting for you here at AWS re:Invent? >> Pardon me? >> What is interesting for you here at AWS re:Invent? What are the things that you see as exciting and that you really want to put your hands on? >> Well, what I'm really interested in right is being able to burst in the cloud. So I'm trying to find a solution that will let me scale out my render farm on demand, instantly, pretty much. So, going up to, who knows how many cores. Just to get that render through so we can get our shots done in time. >> Great, anyone that you're looking at here? >> Not yet. Still trying to look around and find someone. >> Very cool. >> A lot of good contenders. >> So what is it in terms of how your job has evolved? If you had to cite, these are probably two or three of maybe the larger concerns that we've had that are being addressed now and fast forward that to next step, next iteration about what kind of, if there's anything that keeps you up at night, what that is? >> Well, what keeps me up at night right now is switching to 4K. A lot of people think you just flip the switch, it's easy, but that means we have four times the amount of data. It takes twice as long to render. It takes four times longer to move things around. It just, it's insane. >> So you're really excited about 5G? >> 5G will help, but right now we're looking at quadrupling pretty much all our storage. It's going to be a very exciting time and a very scary time for us. >> Who are you stakeholders, internally, and how do you handle them? Because I assume that its a dispersate group. You've got a lot of different people with a lot of different priorities, and because you're wearing that IT hat, you're the guy. You're the department that everybody's coming to for answers. >> The biggest person I deal with, personally is the CFO. The other one is the CEO, and they're both worried because I'm telling them I need to buy $5 million worth of infrastructure. The only way I can justify that is showing them. Hey look, it's working better than it was ever before. It's a better product every day. >> Yeah and we're seeing that more and more across the board with IT really having to be the partner of the CFO to actually get the budget to do what you want to do. I think that's pretty consistent for organizations that want to move forward. >> And the budgets are just getting bigger and bigger unfortunately. >> Do you find that rationalizing becomes, is a more critical factor now? >> Absolutely. Before you could get away with a lot smaller, like 10 terabytes was great. Now we're looking at petabytes. It's definitely, rationalizing is needed a lot more now. >> Is there anybody beyond the CFO? I would assume. You're got a lot of people knocking, or CFO, a lot of people knocking on your door. Hey Tyson. I need this, I need this. >> The CFO and the CEO are two best friends, and they're both the top dogs. They're the ones kind of running the whole show there. I'm pretty lucky in that aspect. >> What are you going to do to help solve their problems? Say in the coming year, if you had to say, okay this is going to be a bottleneck. This is going to be a problem. This is how I'm going to address it. What would that be for you in 2019? >> The biggest bottleneck, like I said, is just going to be data. We've got to get four time more or our Isilon. We've got to get four time more of our Qumulo. We've also have to get four times more of our Cohesity, and that's the main part. If we don't have that cohesity, we're done. >> Well I can solve a problem for you for next year. If you're looking for another dog, Lauren's got this gorgeous mix of dane lab. About 120 pounder. >> His name is Milo. He'd be perfect for a film. >> Milo, all right. >> Perfect. >> Just let us know if you need help next year. >> Absolutely. As long as that dog loves treats. >> I'm sure that's not a problem. Tyson, thanks for being with us. >> Thank you so much. >> Thank you so much. >> We'll continue our coverage here, live on theCUBE. We're at AWS re:Invent in Las Vegas. (upbeat music)

Oh from Las Vegas it's the cube covering AWS reinvents 2018 brought to you by Amazon Web Services Intel and their ecosystem partners well good morning welcome back to AWS reinvent this is day three of our coverage here on the cube we made it we have survived the show here that been a great show and still a lot of energy out here on the show floor Justin Morin John wall's we're with loose Ernie who is the CEO and founder of New Relic and and Luffy look just over your left shoulder there's that really impressive New Relic Pavillion you've got there we've been admiring it all week so that's a great show for us and you know our our theme this yours is billed fast and break nothing because that's really the objective of moving to the cloud is building software that customers value as rapidly as possible when you're building stuff fast there's risk and so how do you build fast with breaking nothing it's measuring everything in real time everything in that environment seeing exactly what's going on so you can make sure the stuff you're building works for your customers and that's what we do for so many people were adopting the Amazon Cloud kind of reminds me of John Wooden yield UCLA basketball coach had said be quick but don't hurry that's all right so that's right so it was all about pace and I understand putting that culture in the team so how do you put that culture and into with your well I you know it's it's one of the great truths how can you manage what you can't measure so we're a company that makes it trivially easy to measure software infrastructure digital customer experience our customers come to us every day and say what I love about New Relic is within seconds of setting up my account and and deploying the agent all of a sudden production is lit up I can see what's going on that measurement helps our customers have more confidence moving to the cloud faster deploying more frequently delivering customer value more rapidly now one of the themes that we've had over the last couple of days and John and I were talking just before we came on this morning that complexity yeah we've been hearing that time and time the amount of change it's happening so quickly and we've got all of these different systems we got micro services we've got containers we've got serverless it's a really complicated environment yeah how do you help the humans understand how how do you get them to understand what's going on in this really complex environment that's moving so fast you're you're absolutely hitting on the key challenge and what we're great at what our customers tell us they love about us is we simplify that complexity and and there's how do we simplify it well we have a deep understanding of how these systems work and we've fought very hard about how do you surface the interesting information that's most relevant to understanding the health and application and really in that moment when there's a problem how do you make it as easy as possible to understand the cause that problem as rapidly as possible this is like our customers they're right in the you know right in the pit of the most high pressure situations when there's a production issue every second counts every second counts you got to find that issue as rapidly as possible and what our customers tell us is they're sick of having to juggle around between three four five many of our customers have dozens of tools that are intended to watch production they turned a new rally platform cause it's all in one platform and when seconds matter you don't want to be switching between tools and context to understand what the nature the problem is and that's that's super important it's kind of like we all become pack rats in a way right yeah we save things we just keep putting them in this room and this room in this room and it comes time to kind of clean up or yeah get our act together and that's what you're doing for people is helping them get their act together absolutely and once you've got an understanding of how the system provides you go from overly cautious and timid to confident and with that confidence you can start playing offense with software we talk about all the time 15 20 years ago IT leaders thought of software as a defensive mechanism when I say defense I mean it's a way to reduce costs how do I reduce the cost of billing how do I reduce the cost of handling a support call now it's offense it's the growth engine for these companies right the digital customer experience is driving top-line growth and so when you're confident your ability to move fast with your software you're actually participating to growth your company that's why it's so strategic that's why the cloud is growing so rapidly so if you've got a customer who's not with you really clearly you want them to they should be going with you what if what does it feel like to go from not having New Relic in there and dealing with this complexity and having those struggles and then as you've put in New Relic for the first time what's what's that onboarding experience feel like I once was blind and now I see John Newton America it's truly that our customers tell us that before I discovered new relic I had no idea was going on production and it was opinions that we're telling us what was going on and when you've got a bunch of teams working on a complex system and there's a problem and it's like the loudest opinions gonna determine how you go forward that results in chaos and it results in organizational misalignment and with data all of a sudden people are lying on how you move forward yeah so with all that data that's there I mean that that can actually be complex itself if I'm trying to see everything all at once that that can be overwhelming so how do you help customers dial in on what's actually important within this this sea of information that they can now now look at well you know we have a variety of ways in which we approach that problem um the first is an opinionated user interface okay we have more experience in the realm you know my first company I founded in 1998 created the category of application performance management and so I've been thinking about this problem might ease the think about this problem for a long time we come to our customers with an opinion on what matters in the application environment but even then beyond that we're layering on well AI but we call it applied intelligence because artificial intelligence people overuse the term and honestly our customers don't care whether we're using a collaborative filter or good old-fashioned algorithms but they want to split more smarts in our platform to tell them what's anomalous tell them what's abnormal tell them what to pay attention to in this sea of data you really collects about 15 million data points every second off of our customers applications and infrastructure and digital customer experiences 15 million data points every second coming to the New Relic Cloud and we analyze all of it in real time to service to our customers what's important what's anomalous and what's interesting yeah so let's get into that let's go about what's anomalous and what's interesting yeah how do you differentiate that because as you said out of 15 million data points every second yeah I mean you're gonna develop trends but but it's by the time you evaluate it seems like one set of data you're off to a completely different set of data and you're right this is a very dynamic environment well the combination of an understanding of how applications work in general but then the flexibility to recognize you know how an e-commerce application might be very different from a Content application like USA Today networks is a big New Relic customer and so we need to provide enough of a platform that our customers can give New Relic some guidance on the nature of their application and and and we can discover its architecture and we can discover things about it but we we really can't discover its business purpose and so there's a combination of what we do out of the box with the customizability that that get our customers the point where the software's doing the work for them you're on so having been in the show now for three four days what have you seen around here what a customer's looking at that they're gonna bring it bring it on to their environment next what are some of the things I think you know lambda is coming mainstream right right and so when we think about where where the world is going you know micro services are going to be here for a while just like all the other technologies you said like the packrat analogy is true but future in the future when someone starts a brand new project they won't even think about infrastructure they'll just think about their code and new relics philosophy on visibility is you start with the software because the software is that the whole the business logic the whole point of all this infrastructure is to run software and so our most important starting point for visibility is the software itself we just made an announcement this week about delivering the first product that automatically instrument lambda to tell you if your lambda function is misbehaving exactly how is it doing that and so as the world continually moves from the old IT used to obsess on infrastructure and and and and new ideas is obsesses on how do we deliver more software faster and that that aligns very well with what we're great what our philosophy is on delivering his ability it starts and ends with the software and it feels like people are going into lambda really quite quickly because absolutely moving with some meetings this morning that they were saying that there's enterprises in particular may not have actually jumped onto the container bandwagon yet but they've looking at laminate is going you know what we're just gonna skip leapfrog to that yeah I'm seeing quite a bit of that containers still have an awful lot of value there they're wonderful lightweight ways to host what used to be on you know in a virtualized environment and get that isolation all that benefit kubernetes is also a big deal we made an acquisition of a company called coast scale that we announced last quarter that accelerates our capability to do work in kubernetes environments we're always inspired by what our customers are doing to accelerate how they build their software and that inspires us to make sure our platforms continually their tool a choice to make sure they can see the entire environment so you're getting as much for them as they're getting from you absolutely it's a great partnership we have with our customers we learn from them and then we provide them with thought leadership on how do you think about making sure you're seeing the entire environment so you can spend more time delivering great software and less time debugging it excellent well let's get back to that great booth of your awesome great for being with us we're sharing our a relic story and success on the the last day of the show all right well mate ok all right excellent right loser T joining us you from New Relic back with more here with AWS reinvent you're watching the cube from Las Vegas

>> Live from Las Vegas, it's theCUBE. Covering AWS re:Invent 2018, brought to you by Amazon Web Services, Intel, and their ecosystem partners. >> Welcome back here at AWS re:Invent. Day three of our coverage here on theCUBE. We have been here since Tuesday, bringing you all kind of sights and insights from the show floor here. Some 40 guests that we've had on this set alone. Have a person that's actually four sets around here. There's a lot of content to capture. A lot of excitement in the air. And I'm John, that's Rebecca. I don't have to tell you that, you know that. We're joined by Ankit Khandelwal, who's the Senior Director of Engineering to Kyvos Insights. Good to see you, Ankit. >> Thank you, good to be here. >> And Ajay Anand, who's the Vice President of Products and Marketing at Kyvos as well. Thank you for joining us gentlemen. We appreciate the time. >> It's good to be back with you. >> All right, so share a little bit, just for folks at home who are watching and may not be familiar with Kyvos. I doubt there are many. (Rebecca laughing) But just in case, share with us a little bit, and with them, your core mission. >> Yeah, so what Kyvos does is we deliver the capability of doing instant business intelligence on data at a massive scale, either on-premises or in the cloud. So, one of the big problems people have is when they're trying to connect from their BI tools to huge amounts of data, it takes a long time for the data to come back into the tool. As they are dragging and dropping, they don't get that interactive response. So we solve that by building a BI consumption layer on top of the big data. And what that enables you to do is, you know, once we've pre-processed that data and built multi-dimensional cubes, then you can get that interactive response time, right. So the core technology is OLAP, which has been around for a long time. But what we do is we make OLAP scale to huge amounts of data and really take advantage of the capabilities of the cloud, or big clusters, and on-premises environments, and really scale out with the cloud. >> Can you give us some examples of who your customers are and the kind of specific problems you're solving for them? >> Sure, some of our customers have spoken publicly about us, so I can share what they said. Walgreens spoke about us at the Tableau Conference just a couple of weeks ago. And they're solving problems that they had never imagined they'd be able to solve before. Dealing with hundreds of billions of rows of data and getting instant responses. And these customers are building multi-dimensional cubes at a scale that's never been done before. 100 terabyte cubes. Walgreens is an example of that. Verizon has spoken about us at other conferences as well. >> Ankit, I'd like to know what your take is on, as we were just talking about, the volume that you're dealing with here. Like never before. How do you help your customers figure out what matters? What's important and what's not, because most, or I shouldn't say, much of what they generate really doesn't matter, and yet there are some valuable nuggets in there that they are still trying to extract and then analyze appropriately. So how do you help them with that job? >> Yeah, so you know what happens is organizations and enterprises keep getting more and more data. They take it to a data lake. Now, the data on the ground wasn't enough, and now you have other services which helps you get the data from even space. Andy announced that you can get data from satellite. So all this data. Now once that data reaches the data lake, the next challenge that comes to, or in front of a business user is, how do you really get the ROI out of it? Now when I say ROI, basically know I am talking about ROI of data. And the ROI of data actually improves, comes only when, the data goes in the hands of the business user. So that's the times Kyvos comes into the picture because you want your data and you want your business users to analyze it. It has to be super fast and that's what Kyvos does, number one, and number two, the business users want their data to see in a way that they want. So basically, Kyvos helps you to actually define a semantic layer, put a business view on top of your data. So that a business user actually sees the data the way they want. So those are the things that Kyvos provides and helps the business user to actually get the insights out of the data. >> So this week at AWS, you launched Version 5. Tell our viewers a little bit more about what Version 5 entails, some of the capacities. >> Right, so one big thing is the capability to do Elastic OLAP in the cloud. So the OLAP capability being able to really leverage the infrastructure cost-effectively, scale out to deal with big loads and scale it down as you're building these multi-dimensional cubes. So really being able to deal with the infrastructure cost-effectively and deal with massive amounts of data as you're building these cubes. So you can decide, I want to build a 100 terabyte cube and just spin up the right amount of infrastructure that you need to build that cube and then shrink it down. So that elastic capability both for cube building as well as querying. At Walgreens, they talk about dealing with hundreds and thousands of users both internal and external all connecting to this data using Tableau or some other BI tool, and being able to deliver that instant response to them. So having that elastic capability is the new capability we're offering. >> I think the point is, as Andy was talking about in his yesterday's keynote, if you can do it fast then why not do it fast? I think that's where cloud comes into the picture. That with our Kyvos 5 release, once you set up your Kyvos on the cloud, it could actually use that scalability or the elasticity of the cloud for its benefit and for the benefit of the customer. As the load increases, is that the complexity increases. We could actually scale out and deliver the performance that we promised to deliver. And then once the load actually reduces then we could again reduces the resources that we're consuming and that's how we actually reduce the cost that is borne by the customer. So essentially, that is again, you're now giving them better ROI on the hardware that they're investing on. >> So how do you pump the breaks a little bit on the speed? I mean, in terms of making sure that you're in control? Because speed's one thing, right, very important to have, but we need reliability, you need accuracy, latency is not as much of an issue, but how do you, pump the brakes might not be the right description, but how do you ensure that speed is not an inhibitor and it's actually a facilitator? >> There's a whole bunch of enterprise capabilities that we have to provide. Dealing with the resilience so that it's always available to their business users. Dealing with concurrency as you really scale out with the large numbers of users. Dealing with security, right. So as I mentioned, at Walgreens they've got external users as well as internal users, all accessing the same cube, and they all need to see only what they're allowed to see, right. So we maintain that security, right from the user to the data, and we keep track of who's allowed to see what and expose only that. So all of those capabilities are built into the product. >> And as an engineer, I can actually say that again I would take the code from Warner this morning that, hey, you really architecture it well. So architected the product right from the beginning to not only deliver the performance but also to be scalable, deliver performance at a scale. To be secure and then in order to be reliable, fault ordering. So those things are inherently built into the product but then putting a patch on top of the product. >> We're hearing so much at this conference that many enterprises have really had the ah-ha moment. I need to go to the cloud. The security, the governance, those concerns are really falling by the wayside. So what's next? I mean, now that we have so many companies migrating, where do we go from here? >> I think, what we are seeing is a lot of companies are still in the process of migrating. So they've had on-premises infrastructures. Now they're moving to a hybrid cloud and then moving to potentially everything in the cloud. So delivering a seamless experience to the business user is extremely important. Business users shouldn't have to care whether the data is on premises or in a hybrid cloud or in the cloud itself. They should get that same interactive response, the same familiar user interface, and that's what our BI layer provides. By delivering that consumption layer that sits the same way on premises as it was in the cloud. It's a completely seamless experience for the user. >> And I think the performance or the skills still presents a problem. The thing is, how can you make it easy to use for the user? How can I make it smarter? So I think that's where we are going towards with our latest releases, with Kyvos 5. We're bring certain capabilities into the product so that the user doesn't have to bother about how do you really create that semantic layer. The product is smart enough to tell there what should be included in there and what to leave out of it. So smartness is one area which we are moving towards so that we can help the business user to get the performance at a scale with a lot of ease of use. >> I assume you guys have been here for a day or two, correct? >> Yes. >> Right, you met with a lot of customers. I again would assume, right? >> Right. >> So what is your take-away going to be from those direct conversations you've had here in terms of what you take back to Kyvos and maybe start putting into practice? What are you hearing about, this is my next roadblock, this is my next barrier, this is what I'm going to come to you to help me fix. >> We heard Andy's talk this morning or was it maybe Warner. >> Yesterday, Warner this morning, yeah. >> So Warner's talk where they talk about, 95% of what goes into AWS comes from feedback from their customers, and that's true with us to a large extent. We learn from our customers, as they deploy these cubes and their environments, but what's important to them. What are the critical areas that we need to overcome. Really understanding their business use cases and making sure that we build that smartness into the product so we can see what kind of intelligence are they looking to gather, what kind of analysis are they looking to do. And then we use that to build the smartness into the cube. So that the user doesn't need to figure this out themselves. So that's one of the new capabilities that we are providing and we're continuing to work on, is to build more and more smartness into the product. So it helps the user go where they want to go. >> And I think as we go to cloud, specifically AWS, how can we really use the services required by the cloud and then how can we really provide a layer of extraction on top of what is already there, so that then it becomes really easy for the user to use whatever we are providing. >> Right. >> Great. Yeah, just, and I don't want to convolute this with things that I don't need and time and effort. It's all about money at the end of the day, right? Save me money, save me time. >> Well, it's not just saving money but really the topline benefit, right. So expanding the business opportunity. So, we've got a bank that's doing risk analysis as they look for new investments. It used to take them days to do that risk analysis before they could make a decision. Now they can do it in seconds. So their ability to make a decision much faster and react to market conditions, really opens the door for them for much greater business opportunity and revenue. So it's not just cost savings that's driving this. It's taking advantage of the opportunity. >> You bet. >> Because if the queries don't really come fast. Let's say you as a person sitting here and you fire a query and then it takes a lot of time, and you go back and then have a cup of coffee and then come back. Your chain of thought's actually broken. So you cannot explore from the data otherwise you could integrate it'll actually come within seconds. >> Gentlemen, thank you for being here with us. I hope the show's gone well for you. It sure does sound like it's been a success, and we look forward to seeing you down the road. >> Great. >> Thank you. >> Good to be here. >> Thanks. >> From Kyvos. >> Back with more in just a bit here on theCUBE. You're watching AWS re:Invent. (bright music)

>> Live from Las Vegas, it's theCUBE covering AWS re:Invent 2018 brought to you by Amazon Web Services, Intel and, their Ecosystem Partners. >> Okay, welcome back everyone. Day three, we're live in Las Vegas for AWS re:Invent 2018. It's our sixth year covering Amazon re:Invent and AWS, Amazon Web Services meteoric rise in value, profitability, market share, just a rising tide floating all boats. I'm here with Dave Vellante. We're kicking off day three analyzing, you know, Vernon's keynote. Things start to wind down. Yesterday was kind of the big day with Andy Jassy. Dave, after yesterday it's pretty clear that there's a couple big mega trends that people are talking about. One AWS Outpost, okay, that is going to be a one year conversation about what that means, what implications. I mean basically if you're a Cloud-native company you order a data center and Amazon Prime will deliver it in two days, why would anyone want to buy hardware again from HPE or other companies? This is a huge risk, huge challenge, a huge shot across the bow to the industry because this essentially the thing. This is essentially Cloud in a box. Put it in, plug it in, we'll service, turn it on and it works and developers can just do their thing, that's amazing. So I think that's going to be a very hotly-contested topic throughout, at least one year until they ship that and all the posturing and jockeying's going to go on there. And then the other thing that was interesting was there was a lot of coolness, the F1, Racing car with analytics. You had Lockheed Martin with space satellite provisioning, that was pretty cool. And, you know, you got robots and IoT. That's cool, you got space, you got robots, you got, you know, sports cars all using analytics, all using AI, all using large-scale compute storage and networking, very elastic, all with all kinds of new tools and reference engines, but Jerry Chen laid it out from Greylock yesterday around the strategy. Amazon drives the cost down on the infrastructure side and bring the API concept up to AI and bring the marketplace together. So, a lot of action. Today we're going to see the impact and the fallout of that. What's your thoughts? >> Well, first of all John, there's so much to talk about. I want to say, so Werner Vogels this morning gave the keynote. When, when I first joined, you know this industry, we, IBM was everything, IBM was the dominant player. So we used to pour over IBM system and technology guides, and IBM white papers, because they set the technical standard for the industry and they shared that knowledge obviously with their customers to inspire them to buy more stuff, but they were giving back to the community as well to help people understand architectures and core computer science. Listening to Werner Vogels today, Amazon is now the beacon of technology in the industry. He went through the worse day of his life, which was December 12, 2004 when their Oracle Database went down for 12 hours because of a bug in the code and because they were pushing it beyond its limits. And so he described how they solved that problem over a multi-year effort and really got heavy into the technology of database, and recovery, and it was actually quite fascinating. But my takeaway was Amazon is now the company that is setting the technical direction of the industry for the next wave of Cloud-based applications. So that was actually really fascinating. We heard similar things on S3 and S3 recovery, even though they're still using some Oracle stuff it was really, really fascinating to see and very, very impressive. So that's one. As you say, there's so much to talk about. The IoT pieces, John, I really like what Amazon is doing with IoT. They're coming at it from a bottoms up approach, what do I mean by that? Do you remember when mobile first came out Microsoft basically said, hey we're going to put Windows on a phone, top down. We're going to take our existing IT Desktop standards, we're going to push 'em down to mobile, didn't work. And I see a lot of IT companies trying to do that with IoT today, not Amazon. Amazon's saying, look we're going to go bottoms up and serve the operation's technology people with a software development platform that's secure, that allows it, that's fully managed and allows them to build applications for IoT. I think it's the right approach. >> I think the other thing that's coming out is a Tweet here from Bobby Allen who we know from theCUBE days. I, you know, when we, I shared a Tweet about, you know, the future of the converged infrastructure on the outpost he says, software should be where tech companies differentiation value lies. This is back to our beating of the drum about software, software, software, you know. Andy Bechtolsheim, the Rembrandt of motherboards, Pat Gelsinger calls him, said, he's the founder of Arista, hardware's easy, software's hard. Software's where the action is. What Amazon's doing is essentially pushing large-scale platform capabilities and trying to make that as cheap and affordable as possible, the range of services, while creating a new shim layer around API concepts and microservices up the stack to enable people to write software faster, more compelling, more meaningful, and to iterate, and this is resonating with customers, Dave, because if I'm a business I got to write software, okay. I don't want to be in the running data center business because the data center powers the business. So the end doesn't justify the means in that regard. You say, hey, I need a data center to power my top-line revenue which is either going to be software-based or some sort of Edge network scenario, or even a human interface wearable or whatever. Software is the key. So if Amazon can continue to push the cost structure the lock-in spec is locked in because the better value so if it's going to be 80% less cost, and you call that a lock-in spec? A lot of lock-in spec, it's not like a technical lock-in spec, that's just called value. >> I'm locked in to Google Search. I mean, you know, I don't know what to tell ya. I'm not going to use any alternative search I'm just familiar with it, I like it, it's better. >> But software's the key, your thoughts. >> Okay, so, my thoughts on lock-in are, lock-in is one of the most overstated concepts in the business. I'm not saying that lock-in doesn't happen, it does happen, it happens everywhere. It happens across open-source. You do open-source you're locked-in to your developers. I've done research on this John and my research shows that 15% of the buyers really make primary decisions based on whether or not they're going to be locked-in. 85% look at the business value and they trade that off against lock-in so, you know, yeah, buyer beware, blah, blah, blah, but I think it's just really overstated. Yes, it's a Cloud, mother of all lock-ins, but what's the value that you get out of it? Speaking about another lock-in. I want to talk about Intel a little bit because the press has been like chirping about, about Intel and alternative processors, and the arm-based stuff that Amazon is doing. >> Well hold on, let's just set the table on this conversation. Intel announced a series of proprietary processors, their own silicon, you know the-- >> Amazon you mean. >> I mean Amazon, yeah, proprietary processors that are specific to certain workloads, inference engines, and other things around network-- >> Based on the Annapurna acquisition of 2015, a small Israeli-based company that they acquired. >> Yeah, so the press, I've been sharing on, oh, chips must be confronting Intel, your thoughts. >> Yeah, so here's the deal. Look it, Intel is massive and they do a huge amount of business with the Cloud players. Now, here's the thing about Intel, it's really, I've observed Intel for decades. Intel wants a level playing field amongst its customer base and so it wants a lot of different Cloud suppliers even though there's three, four, five, you know, worldwide, there's, there's many dozens, and hundreds of Cloud players out there. Intel wants to support them all. They're an arms dealer, right? They love all their customers and so, so what they do is they sprinkle around the innovation in the industry, they try to open up their architecture such that people can, you know, write software to their architecture and they try to support all their customers. We see it at all the shows. You see it at Lenovo, you see it at Dell, you see it here at AWS, you see at Google, Intel is everywhere and they are by far the biggest supplier. Now, Amazon, of course, has to have alternatives, right? They care about data-center power, you know, they do buy some stuff AMD, why not, why wouldn't you second-source some of this stuff? They do a lot of work with Invidia, ARM has its place, and so, but it's a rounding error in the grand scheme in the market. Now why people get excited is they say, okay, ARM now has a foot in the door, oh, Intel's in trouble. Intel obviously still a dominant player. I think it's, you know-- >> Is Intel in trouble? >> The press likes to glom onto that. Intel's like the dominant player in the microprocessor business and it has to move, and it has to move fast. I would not say Intel is in trouble, I'd say it continues to be the dominant player in the data center. It's got opportunities for alternative processors like Invidia. Intel strategy is to put as much function on the DI as possible and to grab that function, it's always the way it's behaved. You see people like Invidia trying to create opportunities, and doing a very good job of it, and so, there's white space there. It's competition, we love competition, right? >> Here's my, here's my. >> Intel needs some competition frankly. >> Here's my take. One, Intel pays, Amazon pays Intel a lot of money. >> Huge amount of money. >> So it's not like Intel's hurting, Intel's not in trouble. Here's why Intel's not in trouble. One, the Cloud service provider business that Raejeanne runs, she was on theCube yesterday, is growing significantly. A new total adjustable market, they call TAM expansion, is happening. >> So, you know, if you're looking at microprocessors it's not a one, or few, suppliers, it's a total TAM expansion and of course with that expansion of the market Intel's going to take a big chunk of the shares, so they are not in trouble, Amazon pays them a lot of money, they're a big-time supplier to AWS, check. Two, Intel is on a cadence on processor design that spans years. And Raejeanne and other Intel executives have spoken to us off the record, and here on theCUBE that hey, you know, sometimes there's use cases where they're not responding fast enough that are outside they're operating cycles, but as Raejeanne said, Amazon makes them get better, okay? So, they have to manage that, but there's no way Intel's in trouble. I think the press are using this as, to create link bait, for news that is sensational. But, yeah, I mean, on the surface you go, oh, chip, Intel, oh that's Intel's business, it must be bad for Intel. So, yeah, Amazon made their own processor. They got some specific things they want to build specialized processors for like GP Alternative, or inference engines that are tied to the stack, why wouldn't they? Why wouldn't they? >> What Intel will do, what Intel will do is they'll learn from that and they'll respond with functionality for maybe others, or maybe they'll earn Amazon's business, we'll see, but yield to your point, you know, Intel's exposure to the desktop and the laptop, a lot of people wrote about that, that Intel is, the (mumbles) entry is Intel's business, they're so huge, the cost of doing what they do, Intel's such a strategic supplier to so many companies and as we talked to Raejeanne about yesterday the Cloud has completely changed that dynamic and actually brought more suppliers. The data center consolidation that you've seen has been offset by the Cloud explosions, that's a good trend for Intel. And of course the mobile dynamic, you know more about that then I do, but, everybody said mobile's going to kill Intel, it obviously didn't happen. >> Look it, Intel, Intel's smart, they've been around, they're going to not miss the ball. They got a big team that services a lot of these big players. >> Are they still paranoid in your opinion? >> I think they are. >> I do too. >> I do too, I mean I, look it, Intel is, have a cadence of Moore's law. They have a execution style that's somewhat similar to AWS, they've very strict about how they execute and they have a great execution engine. So I would bet the farm that Intel's talking to Amazon and saying, what do you need for us to be better? And if Amazon does what they do best, which is tell them what they need, Intel will deliver. So I'm kind of not worried about Intel on that front. I think in the short term maybe this processor doesn't fit for that, but, that's why GPUs became popular, floating point was a unique thing that CPUs didn't do well on so a GPU comes out, there it is. And we're going to see processors like data-processing units, Pradeep Sindu, former founder of Juniper's, got a venture called, Fungible, that's building a data-processing unit. It's a dedicated chip to serve analytic workloads. These are specialized silicon chips that are going to come on faster, and, to the marketplace. So , just because there's more chips doesn't mean Intel dies 'cause if the TAM expands it's a, it's an overall bigger market so their share might not be as dominant on a smaller market, but it's-- >> You know, I got a, I got to come back to your John Chambers interview. I've watched it a couple times now and I would recommend people would go to, thecube.net, and see John Furrier's interview with John Chambers. The great companies of this industry have survived, you know, I talked about paranoia, Andy Grove, they've survived because they were not dogmatic about the past. So for the past several decades this industry has marched to the cadence of Moore's law and that was obviously very favorable to Intel. Well, that's changing, and it's changed, the innovation engine now, you've called it the innovation sandwich, which is data, machine intelligence applied to that data, in the scale of Cloud. So Intel has to pivot to that to take advantage of that and that's exactly what they're doing. So the great companies of the future, the Microsoft's, the Intel's, the AWS's, they survive because they can evolve. It's the Wang's that didn't, they denied, it was the PC-- >> They were entitled. >> The digital, right. They thought they were entitled and the point that John Chambers made is there's no entitlement and he kept referring to Boston 128, it used to be the Silicon Valley. And the leading executives today, of companies like, like Cisco, like Intel, like Microsoft, can see a vision to the future and they change when they have to change. >> So companies that are entitled, who are they (chuckling)? >> Wow, that' a really-- >> Is Oracle entitled? >> A good question. >> HPE, Dell? >> I think Oracle absolutely acts as though they're entitled and they're bunkering down into their red stack. Now, you know I've often said, don't bet against Larry Ellison, and I wouldn't make that bet against Larry Ellison, but his TAM is confined to Oracle customers. He's not currently going after, non-Oracle customers in my opinion at least not with a strategy that's obvious to me. And I think that's part of the reason why Thomas Kurian left the company is I think they had a battle about that, at least that's what my sources tell me. I haven't talked to him directly, I actually don't know him, but I know people who know him and have worked with him. HPE, I think HPE is more confused as to what the next step is. When they split the company apart they kind of gave up on software, they gave up on an integrated-supply chain. Mike Odell took the other approach, and thanks to VMware he's got a wining strategy. So, I think today's leading executives realize that they have to change. Look at Ginni Rometty, remember IBM was in trouble in my opinion because Watson failed, and their Cloud strategy essentially failed. So they just made a 34 billion dollar acquisition, a Red Hat, which is a bold move. And that, again, demonstrated a company who said, okay, hey it's not working, we have to pivot and we have to invest and go forward. >> Alright Dave, great kickoff day three. Andy Jassy coming up at the end of the day and he's going to do his annual, kind of, end of the last day roundup on theCUBE, kind of lean back, talk about what's going on and how he feels from the quotes, what people missed, what people got, and do a full review of re:Invent 2018. Day three kicks off here, CUBE, two sets on the floor gettin' all the content. We already have over a hundred videos. We'll have 500 total video assets, go to siliconangle.com and check out the blog there. A lot of stories flowing, a lot of flow, a lot of demand for the content. Stay with us for more after this short break.

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

>> Live from Las Vegas, it's theCUBE, covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel, and their ecosystem partners. (upbeat music) >> Welcome back, here on theCUBE, (mumbles) to continue our coverage at AWS re:Invent with Sands. This is actually one of seven sites all around town, that are hosting various sessions. We heard a lot our guests saying, "it's so exciting." There's this spot for this particular expertise. Then I boo, Uber across town, I go to this spot, because that's how big this show's become, and how dynamic this show has become. We are on day three, and I'm here with Rebecca Knight, and also joined by Eric Boerger, who is a technology specialist at McAfee. Hello Eric good to see you. >> Hello, thanks for having me today, this is wonderful. >> You bet, well we've had a couple of your colleagues on already. I mean Markus Strauss is one who comes to mind. Talk about the database you're on the cloud side of things, cloud security. >> I am. I'm a technology specialist here at McAfee. My role is to help our customers as they're moving into the cloud, understanding where their security pitfalls may be, and implementing the right technologies and security tools to help make sure that their transition into the cloud is as secure as possible. >> So what's the big picture on that? Alright so security first and foremost in the cloud, that's probably, well certainly one of the big questions people have right. >> Absolutely, that tends to be the biggest question is, "how can I make sure that as I'm doing this transition to the cloud, that I'm not just throwing assets out there, and finding that I have issues later, but how can I bake security into them from the beginning." And that's really where we at McAfee are trying to sit back and identify where customers are having their challenges, and make sure that our tools are able to be positioned and developed correctly to address those issues. >> So what are some of the most common challenges that you see? >> So some of the most common challenges that we see in terms of problems are misconfigured accounts. That's a very common issue that we see in a lot of breach reports. Somebody setup a data repository, doesn't put the right security mechanisms in place, and all of a sudden now all of the confidential data that's been breached. >> Out the door. >> A second problem we see is a lot of, especially within the IAS space, organizations are standing up new instances of workloads, and the security teams aren't necessarily being informed that they're actually putting these workloads, or computer assets online, so now they're coming online without any protections, or any audit capability in place to make sure they're meeting their own security best practices guidelines that their organizations may have developed. >> Yeah we were talking earlier with probably one of your competitors actually, and they were talking about breaches. We're talking about. They said, "Their estimation 90 percent, are created, or made possible by mistakes." >> Absolutely. >> I mean, you agree with that? Is that our... >> I cannot agree anymore with that. Because the problem is, is that, the ability and the agility of the cloud, is both a positive, it allows us to be extremely flexible and agile as we're developing, but it also allows us to move so fast that we may be outpacing what our own knowledge levels are for being able to secure those. And that's tended to be one of the biggest hindrances that we see, is a developer gets enabled to go through and create a MS3 Bucket, put a lot of data in there, but at the same point they don't implement any tools behind it, or any security behind that. So it's not necessarily their fault, it's just they don't understand what security requirements are to implement in the cloud. >> And that's where you come in. So talk a little bit about your solutions and about how you approach the problem. >> Absolutely. So we have a wide variety of solutions here at McAfee, to help address those issues. That's everything from our Skyhigh McAfee Casb product, to help do account identifications and discovery of rogue accounts. And then some of our tools, like our virtual network IPS. That's able to do packet level inspection to apply a deeper level of security onto those systems. And then of course our Cloud Workload Security Product. That's something that is able to help you discover any of those rogue assets, and identify systems that may have already been breached based upon the network communication that's already occurring on those systems. >> Yeah you're kind of this cat and mouse game, aren't you, in terms of security, because you're trying to stay one step ahead of some actors who are very skilled at maintaining an edge. >> Absolutely. >> I mean how do you sleep at night Eric? >> So moving to the cloud is an area that once you feel that... Once you have the right tools in place, it'll help you actually sleep a lot easier, knowing that there's audit tools in the background, that are able to continuously monitor your workloads, identify if you have misconfigured accounts, if you have systems that are missing, needed information. You may have a requirement to have something like an integrity monitoring tool in place for some of your workloads, and this is a, with our tools, we can actually monitor and tell you if you're out of compliance with any of those baseline requirements. >> So how do you help the companies, the customers that want to move to the cloud, but also be sort of a hybrid, or maybe keep some of their stuff on PRIM, how do you make it easier for them? >> And that's a very common question that we hear over and over is, "I want to move to the cloud, but I'm not ready to go all in yet." So what we've actually done, is we've developed a lot of same discovery tools, can be used on premise. So that as they're building out their private clouds, whether it's in an open sac implementation, or via VMware, we can still do the same discovery, the same identification of misconfigured workloads. Now that also brings us to, as they move more into the cloud, it's already there, it's able to help them with their hybrid environment space, and that can either be managed on premise or from the cloud directly. So that when they're ready to move all their management infrastructure to the cloud, our tools are already there and ready for them. >> Now you're really good at what you do, but as you know, you're not the only game in town. >> We're not. >> So what's your differentiation then in terms of your cloud offering? What do you think this is what McAfee does better than anybody else? >> So what we feel that we really do better than anybody else, is be able to integrate a full security picture in a unified console management. So this is giving us the ability to do deployment of our own tool sets. Being able to do things such as integration with our Skyhigh product, and being able to pull back from the Casb view to help pull in a unified view. That's where we really feel that we've got a lot of unique factors in the cloud space to help our customers as they're moving. Plus the ability to be not just cloud focused, but still hybrid. Being able to protect those private data centers. We see a lot of companies who are going pure cloud, but they say, "Well if you had something on a premise, we don't care about it anymore, because it's not in the cloud." We feel with our background and our strengths in security we can really help address those concerns. >> So you're a technology specialist, that is your job title, >> It is. >> but in so many of these migrations and big digital transformations, the technology is really the easy part. And what's so much harder is getting the people onboard with the changes. Getting them to adopt and embrace and keep using the solutions. First of all, do you see this kind of resistance, and then also how do you overcome those challenges? >> Absolutely, the challenge is getting people to adopt to the cloud, and then continually be integrative with the newest tools that are coming available from the security standpoint and side is always a problem. The developers are very agile, they want to move at the speed of development. Which means going back and talking to security and saying, "hey by the way, I'm doing these things," doesn't always happen. So this is where we want to be able to give you a continuous monitoring ability to say hey, "somebody went through and stood something up." Security was completely outside of the loop. Bring them back in so that they can get the visibility, the alerting. And this is even where we've created some new features, that we announced on stage yesterday to be able to be integrated with the Amazon security hub. This is where we really feel that being able to help augment as Amazon's developing tools providing our security insight, to make sure that once again, as the developers are taking advantage of some of the newest features, we're there with them. >> And what was the driver of that? I mean how did you get to that point? >> So this is part of our partnership with Amazon. We actually have a great foundational relationship where we have a lot of our products have gone through a best practices review. And we have well architecture review stamps on a lot of the products that we have in the marketplace. This is due to the tight security integrations that we've had work with Amazon. That we're invited to be one of the first partners into the security hub, and you're going to see this out of additional products as we move forward with our new capabilities in the cloud. >> Yeah I hate to, I mean we have just a few minutes left, and I hate to dive into a big topic here, but on the other side of that security coin is compliance. Right, you got to be concerned about that. It's governments, you got to be concerned about that. And that's a whole new can of worms especially today with whether you're dealing with company concerns, state, federal concerns, and even European concerns. >> Absolutely, and the data privacy is another major concern with the compliance. It's not just what do I have, but how is it being used, how's it being utilized, and that's where with some of our products we've actually gone through and have build our full DLP engine into discovery of any of your data that exists within the cloud. So if you put data in as three, we can go through, scan it, identify if there's any PII data, alert upon it, give you controls of that. And then from a workload perspective side, we have tools that can go through and feed in your own templates. To say that I need to be PCI compliant, I need to meet HIPAA compliance. Be able to audit that workload, and give a continuance summary report back to the management teams to say hey, "I have auditors coming in, how am I in compliance, and then tell me what I need to do to address those gaps that I found from my cloud workloads." >> Solving problems. >> Solving problems. >> That's what it's all about right there. >> He's the best, that's right. >> Alright, I want you around more often. (laughing) We got a lot of problems to be solved, we appreciate it Eric, thank you for your time here at AWS re:Invent. >> Thank you very much for the time today. >> Good to have you, thanks for the McAfee story. Back with more from Las Vegas right after this. You're watching theCUBE. (upbeat music)

>> Live from Las Vegas. It's theCUBE covering AWS re:Invent 2018 brought to you by Amazon web services, Intel and their ecosystem partners. >> Good to have you here on theCUBE, as we continue our coverage at AWS re:Invent. We're at day three here in Las Vegas in the Sands Expo Hall D, and we got about a half hour. Come by and say hi to us if you would. I'm here with Rebecca Knight, John Walls, and two gentleman here to join us. One from GitLab, Brendan Jung, who is the vice president of alliances. Brendan, good to see you sir. >> Thank you for having us. >> And Alex Hale, platform engineering at Beacon Platform. >> Hello, Alex, how are you doing? >> Not bad, I'm surviving the whole experience. >> It's a test! >> Well, let's talk about the whole experience (mumbles) What have you picked up this week? >> I've picked up that AWS is going very much into this sort of enterprise space. We saw that theme last year, and I think this year it's even more so that they're really catering towards how enterprise and then big organizations are getting in. And I think that's been a big. You can see it in how they're doing their storage strategies, how they're doing their network strategies, and how they're just really targeting towards security, and compliance, and governance. And I think that's a big theme that's from last year to this year, and I think it's going to continue on. >> Yeah, they've been waving a big flag for sure telling the enterprise it's safe to come onboard the public cloud's open for ya. >> Yes. >> Oh yeah for sure. >> Brendan, if you would, you were telling a story that you worked at Google for quite some time. >> I was, yes. >> Worked on some fairly high profile projects >> there, and you've been >> Yes. at GitLab for five months now. Instant transition for ya? >> Five months, yes. >> What was behind that? >> So a couple of it is, I mean when we get down to it sometimes you're either a builder or a runner just in the way you're oriented. And I'm a builder, so the biggest thing was love building that from the ground up with Google. Amazing team they did amazing job. We got to do a lot of really fun things. Was looking for something kind of new, and I'd worked with GitLab since I ran the partner organization for a lot of the partners at Google. I had worked with them for a number of years and it's rare when you work regularly with the company that you get surprised. So the kind of the point that I was like, "Oh, I really need to look into this more deeply," is I've done detailed work with GitLab for years. And I was in a meeting with Sid, our CEO. And he kind of, "Hey, you know what we're up to." And I'm like, "Oh, of course I know what we're up to." Right, cuz that's you always answer that. I mean you don't answer the question, "No, I have no idea what you're up to." We met four weeks ago, of course I know what you're up to. And he's really humble. But simply like oh hey, you want to see me insert. Hey, this is what we're working on. Slides across the floors to report, and he's like, oh, in the CI space, under three years we went from no product to the very best of the business. Beat out Microsoft, and CloudBees, and all these. And I was like wait, I didn't know you were in the CI space. I shouldn't say this publicly, >> Alright it's alright. >> but I went like I didn't know that. >> It's okay. You got the job. >> No, I'm safe, but the ability that's just the speed that the company moves. Everyone says it, but when you can go that fast with that kind of quality, I was like I got to dig deeper. And so we just kind of went down that path, and it's been quite an adventure. >> Good. >> Obviously, Microsoft buying GitHub has made for a whole lot of discussions in a whole lot of different ways for us. And competition's good, so it's been a lot of fun. >> Well, we definitely want to talk about the GitLab and Beacon Platform partnership, but I want to first ask you, Alex. Tell our viewers a little bit more about the Beacon Platform. >> So Beacon Platform is a company that came out of the financial services from the large banks; the Goldman Sachs, the J.P. Morgans, the Bank of Americas. And in those places, internally they have to have this quite open source like culture where there is people contributing in the same codebase, there's a lifecycle of how things are done, and it's rapid moving. And people don't associate them with large banks, but there is these products out there. In fact, some of the Goldman Sachs partners refer to those as the golden source, so they secret source. And if large banks can do it, why can't someone else. So we've taken those experiences that people have done for years to build these communities, best practices, and prescriptions, and turn it into a product. So we've taken the same model of here is a set of financial tooling, and infrastructure, and toolboxes to make financial applications. And we've brought it to the smaller bunch; so your insurance companies, even your large banks, Komodo used firms, insurance people. They can take our platform, and then bring their own analytics, and then build financial applications that they want on top of it and whilst doing so be ensured that they're compliant with security. We've done the governance for you. We've done the security for you. All you have to do is put your good ideas to use and make applications. >> So give us some examples of the business problems that this platform solves. >> So typically in the financial space, the people that have the great ideas are pawns, and they're by nature mathematicians. They're not developers. They're not UX people. They're not UI designers. They're certainly not security people. And yet they are are the people that are driving the core business and the value. And so the question is how do we make them be productive? How do we make sure that their lives are easier? Which means that you give them an idea. You give them a lifecycle for software that they can start saying, "Ooh, I've got an idea. I'll hack it up." And when it's hacked, they can publish it. It comes out the other end, and all the reporting is underneath there. Their security is there. The compliance is there. All the authentication is there. And that idea is now being actualized in the matter of days, weeks rather than months and years. And that means that our customers can take these ideas that they've been working on or just conceiving and turn it into reality in a very short amount of time. And then be comfortable that whole platform itself remains secure, compliant, and all the same thing that Amazon is actually counting to us. >> You know it seems like if your focus, your core competence, was or is financial services. I mean you're starting at a very high level of demand client, right? >> Yes. >> And appropriately so, and so there are a lot of lessons that migrate to other businesses that I assume are quite attractive to them, >> Yes. >> because if you mention your client, BOA, if they've got comfort, I have comfort. Right, because how much of that do you see that the experiences that you've developed or that you have put them through translate in a very positive way to other sectors? >> We've found out some of our customers are starting off in the cloud, and they're making their cloud journey. They're financial companies that want to take the journey to the cloud, but don't really know how to. And so we as a company which has already running on the cloud, as a company we don't actually own a physical single server. We're all on the cloud, all in. And they, our customers, come to us to say, "How are you in the cloud? What do you do? "You have the experience. You've worked at these places. "How does that all work?" And so we give them a sort of in the same way that out platform does. Prescriptive advice on how things are going to be done. And our customers come along with us on the journey. And so we take the customers on their cloud journey whereas our customers are taking us on their needs, and bringing their needs, and what they need to us to say, "I want to build an application like this. "What more do I need to do? What do I have to do?" And so it's a very collaborative relationship doing our customers to say, "I can help you in the cloud space. "You can help us in the financial ideas space, "and together we can actually make applications." Whatever we build ourselves, becomes we can resell it to others whilst the customers intellectual property can stay with them. It's a really interesting collaboration of. >> Symbiotic in many respects, right? >> Yes. >> You're leaning on them. And what about the relationship between the two of you again in terms of. >> Sure yeah, so as much as Beacon is very financial services focused, we're a DevOps tool and end DevOps tool for anyone, right. So in many ways what Beacon is doing is taking what GitLab's done about builing that whole tool chain, 'cause there's really a tool chain crisis out there. If you start looking at what needs to be set up for a developer, they want to live in their IDE, do their development, and publish as he said. But you start looking at what that needs to be set up after that, you're talking often times on a company 12, 15 other steps to go through. And that was kind of our aha was there's an opportunity to treat that as one full application as a DevOps tool set across the entire board. Started down that journey really like three years ago, and that's kind of I think we kind of match up. The similar story; they wrap all the important financial data, all the other things that matter to a bank, right. And they're got to whole bunch of extra tooling, extra data, extra services. But at the core of it, they also leveraged GitLab both as a tool to develop their own product and also to offer it as a tool possibly to their own customers, right. So their other customers need to develop. They need a DevOps toolset, so we work back and forth a whole lot on this. They move so fast. It's been amazing, and so every time we sit down we're like wait, what if we did, okay cool let's iterate. And we can turn that around. We ship every month to our customers. You can run it anywhere you want. The majority of our customers, they love the fact that they can run anywhere. Which in fact while Beacon does runs on Amazon, their customer bases have to run on (mumbles), right? And while we're seeing that hybrid become more and more common which is great, that's the truth that's been there forever. That's the world that we've lived, they live everyday and have lived for a long time, and so it's kind of fun to come here and see that be like yes, oh yeah that does exist, and we're kind of like yeah that's existed for a long time. >> Everybody caught up. >> Right yeah, we're there and there's always going to be reasons for that on both directions. And so we work really well together on that side, and they push us hard. Right, so we're actually right on stage. We're sitting there in just this morning, he's like hey, you finally (mumbles). You know I've got all these merge requests that he wants in our product. (mumbles) opens, it's open. Everyone in the world, anyone that watches this, go put a merge request on GitLab. We're going to track it. You're going to know where it lands. You're going to know when it gets delivered. So and if you want to write the code, you can write it and it's in. So it's been actually a ton of fun. >> And have at it, right? >> Yes. >> Well if the relationship's working good to see. >> Yes. >> And you're five months in, and I'm sure the one year anniversary's right around the corner for you. I'll try to be able to wait. >> Be here before you'll know it right? >> Hell yeah. >> (mumbles) thanks for joining us. Good to have you here on theCUBE, and look forward to hearing about this continuous success down the road I'm sure. >> Thank you >> Thank you so much. >> (mumbles) having us. >> Thank you both. Back with more here on theCUBE. You're watching this live at AWS re:Invent Las Vegas. (techno music)

live from Las Vegas it's the cube covering AWS reinvent 2018 brought to you by Amazon Web Services Intel and their ecosystem partners welcome back to Las Vegas everybody I'm Dave Villeneuve my co-host David Flair you want to the cube the leader in live tech coverage this is our third day of coverage at AWS reinvent 2018 our sixth year covering this event that keeps getting bigger and bigger Dave at 53,000 people amazing place is still jam we still barely have our voices 18 Cockroft is here he's a vice president of cloud architecture and strategy very well known in the industry q Balam thanks so much for coming back on thank you yeah it's the I've been to all of the reinvents we've been far as the customer and then we've been off of one but we watched remotely and hung on every word you know back when there wasn't a lot of information about a DMS now it's like too much information to process it's gonna take us months to sort through it all but at any rate it's it's a phenomenal opportunity for us to to learn to share to inspire folks and you do with some great work talk a little bit about you know some of the fun stuff you're working on and in your current role yeah I have a few different things I do one is one part of my role as I go around the world giving keynotes AWS summits but mostly I call it doing one of Ogle's impressions his deck and I get to presented around the world so we have to digest all of this stuff into a 90-minute deck that we can take to around the world that's a you know what do you leave out there's some it's it's harder and harder every year so that's a lot of fun but the team that I run for AWS I mean recruiting and running is around open-source right and we do we sponsor various events we members of various foundations we make contributions to projects and have been helping that by hiring people from the open-source communities into AWS to help help some of the edge over service teams with their launches of open-source related projects so what I've got what's been happening this year is had like a hundred blog posts related to open source lots of tweets lots of activity lots of events like ask on all things open in coupe car so be there in a couple of weeks exciting to you guys probably again but this week there are a few of the launches where we got quite deeply involved we did a blog posts on the open source blog most at the same time as Jeff fires okay here's the service and here's the open source part of it this is how you contribute and this is what's going on so we've had some fun with that so but it was it two years ago when we first met you've just been on the job for about a month about that particular time and you laid out what you wanted to do in terms of from your previous experience about how you wanted to turn AWS into a an open-source contributor how would you rate yourself in two years I think we've made some good progress really made me a AWS was making contributions to open source but had nobody talking about it and nobody know it was nobody's job to go out and explain what we were doing so that what part of the problem two years ago it was actually more happening so most people knew about but we were just not telling the story and it said it wasn't coming across well and the culture and the culture I mean it was spotty like some parts of AWS were doing a lot of open source other parts we're kind of not really seeing it as a priority so by talking a lot more about it we kind of get a more uniform acceptance across AWC huge organized just there but Amazon as a whole we are actually telling that story the story a much broader story than just AWS and be able to bring that and get everyone go oh this i see everyone doing it so i should be doing that so it helps create the the the leadership for more teams to follow and what we've seen in with you know really the first year building the team the last year kind of getting the content flowing and getting the processes kind of working to get all the all of the different events and blog posts and out the outbound part grips getting increasing number of contributions and launches so now Corrado was a few weeks ago so it you need us launch but that was that was an example that was it's a lot a lot happened from my team from Aaron Gupta my team his a Java champion he used to be at Sun he was a worked at Red Hat on J bar so he's like he knows everybody in Java has great credibility across the Java community and he said we should launch this product in Belgium at like midnight or so you know West Coast time and let's fly in James Gosling and like to a secret like get him on stage without anyone knowing he's gonna do it and do the introduction so it's like this totally crazy idea and it came off beautifully and we even had the the you know the Oracle Java people saying nice things about it the contributions to open JDK just just a really nice example of figuring it out all that get everybody on board get everything done right and then say here's something that matters to the community that we can contribute it'll show up on the rooftop complete thanks the star power thing but mincing James to do it was a right around a lot of credit for that that particular launch but you know this is the kind of people I have on my team and we're like we're pulling them in and pointing them at okay can you help this team figure out how to take this open-source project to market now I mean that was a major contribution to the open-source community and it was just in time wasn't it but another slight view would might be that you and Oracle should have been working this out until not leaving it until the last minute but I mean we were doing this work anyway right okay we're effectively self-supporting our own version of Java or internally we were getting better performance and better sooner bug fixes on open JDK so it made a decision to just move to the open JDK dream and we were just unhooking our internal use of the of the other the other options we have home mix you know a very large organization along for you acquire lots of different versions and flavors of Java you notice this one language so we like clean it up let's get JDK 8 and 10 we're self supporting it and then we announce to our cave will support our Amazon Linux version right and the final step was like the customers were saying please just like supportive on my laptop and anywhere else I need it and the thing we didn't announce then we didn't make a big thing out and arm support we didn't we kind of it was in there by default we didn't talk about it because the ARM chips came out this week so hey and part of it was also have exactly the same version of Java now on all of the Amazon Linux is even the the Intel AMD and arm so that helps the compatibility for people kind of going well it's a different processor architectures ties together so it was all part of the thinking if you didn't want to tip your hand on the announcement this young is right ok so I think sometimes a AWS is misunderstood partly from its own doing I mean you just mentioned you contribute a lot to open-source but you never talked about it generally when AWS doesn't have something to say they don't say a lot about it so others are left to you know make the narrative you come on you've now got an open-source agenda can you just sort of summarize what that motivation is and what the objectives are well we have you know lots of different pieces of this but you have service teams saying I'm gonna launch this product and there's an open source component to it can you help and sometimes that means I hire someone in my team to specialize in that area sometimes it's just our consulting with the team we may know connecting them to the open-source community so that's one piece of it is having that if you think about CN CF in particular cloud native computing foundation that's got lots of projects if you think about the AWS service teams no one team really owns the scope of CN CF but my team has that ownership for CN CF as a whole we have the board seat position and we say ok we have the serval as people over here we've got some entertaining things over here there's some Linux kernel virtualization bits here we can reach out to lots of different teams across AWS but act as a central point where you have something about open-source you want to talk about with with AWS or Amazon even as a whole you can come to us and we'll find the right people and we'll help you make those connections so part of it is acting as an on-ramp for the sort of buffer between the internal the external concerns of the communities there's somewhere to go and partly just getting contributions out there and what we could gain criticized for not making enough contributions well we've been making more and we're making more and we'll just keep making more contributions until people give credit for it and that's that's the if you're like what's the strategy contribute more and then tell people point at it and hope the people like what we did and take the input no it's the customer driven thing right we're gonna do what our customers ask us to do and their customer community focus on the things we want to do and we've been contributing to spinnaker the the Netflix OSS project we made some serious contributions to that in the this year firecracker myths which talk about that a bit and the Robo maker that those are all areas where we've been working with firecracker is particularly interesting isn't it I mean that's a major contribution of improving the performance and capability of those micro VMs yeah can you talk about that a little bit yeah it's the baby it's interesting because it's a piece of software pretty much no one will ever see your use it's the thing you run on the bare metal but lets you run your container Dee that lets you run your container on top right well it's deep down in the guts of the system there's this piece of code but we we kind of there's a few reasons we're using it particularly in production now with its supporting some of our production use of Fargate and lambda there in the middle it's not a hundred centraal out but there's a good chunk of the capacity running on it and that's where it turns out to be useful and just to cook how long we have to get into this but if you think about a customer running a lambda function we would put create a VM with that lambda function in it if they wanted a second lambda function we put it alongside that one no the customer comes and we start a new VM for them and we start a lambda function in that VMs take a while to start up so you have cancer pre-made some sitting there waiting but these are big VMs and we're putting lots of little functions in them what what firecracker lets you do is start a separate micro VM for every function and safely put all of the customers on one machine so you start packing them in it's a much more efficient way to run your capacity our utilization of those machines supporting lambda is vastly higher than having a machine with a bunch of empty space in it that we're trying to weight running for running for the customer so it's that efficiency is the thing and then the speed of starting a VM it's a very it's a very cut-down VM so it's 125 milliseconds with just to start the VM which is incredibly fast when you think hey give me a VM on ec2 it's you know they're in kinda like 30 seconds to a few minutes like I get 12 terabyte VM takes a little while to boot up but you don't have to pay for it till it finished including my good things about these huge machines right how about Robo maker can you talk a little bit about that and it's important so a rubber makers interesting on the open source blog which we posted on Slate on Sunday night early on Monday morning I did an interview with Brian Goerke who's the founder of the open robotics foundation and what we've done there is it's kind of an extension of sage maker if you think about that being AI if you've got these eight where I can deploy an AI model what is the AI model I want to do it wants to read something from the real world and modified the real word so it's a read from a camera or at some of the sensor and then control motors and servos and that's what Robo maker does it wraps the intelligence you can build with sage maker with the robotic operating system that has actually a library of actuators and a library of algorithms control algorithms you've got little brain in the middle and you've got a new robot that does something and we had the the Robo racer low racing car to which where all of these things come together to make an old toy race car that we can drive around tracks which is a whole other topic we get into but what interviewed Brian on what is the history of Rose the robotic operating system where did it come from you know what is the hard thing about running in it turns out the hard thing with Rose wasn't building the robots it was simulating the robots and the simulators quite a CPU intensive job it's graphics intensive you got this virtual world you're running and VR worlds are quite intensive and getting that installed and running was the hard part so what what what robot maker is is that as the service it's this simulator is called gazebo just a funny name so gazebo as a service is the actual service that effectively were charging for with a free tier so you can play with it and then we charge you for the sort of simulation units like how much computing time you're using when the rest of it is all you know cloud9 for the front end and deployment of fleets of data to fleets the robots and updating them and managing them but they're interesting thing is this is getting into like the people that the field of the first robotic thing is high schools high school robotic competitions they're interested yeah universities are interested in a university solar so we kind of it's not just for commercial production robots it's the whole training thing we're getting into STEM education if kids like playing with robots it's like Center and we're pulling all this in so now you can go home and take these like the latest most advanced AI algorithms that used to have to be doing a PhD at Stanford to be playing with and play with your kid you know over Christmas and see what you can come up with really simplifying the whole software development side of that when you look at the Dean came in competitions we're just awesome yeah all the kids they could have gravitate to the hardware cuz they can touch the software was really hard and and and this is gonna I think take a new level is particularly enough and it's all open source yeah you can go yes oh you've got this robot there no no I pointed them somebody who's complaining that we'd done it and no it was some proprietary robot thingy with the toy cars and I pointed them at the github URL it's that you can go build this thing it's all open source you can put anything else you want on it but the robot cars robot has rolls on it the robotic operating system H maker Robo maker all combined together and they're off running races and having all having fun now you guys are both Formula one fans yeah and you guys have been having some you know profile of Formula One folks here you got the little the mini vehicle riff on that really open source but I have another like thing I'm doing on the site it turns out the over the last year or so we started looking for opportunities to do sports sponsorship with a particular focus on Europe and the rest of the world we had a few US sports where they I don't know something with balls I like I like sports with wheels so about the middle of last year like this June we announced the deal with Formula One which is a multi-part deal part of the deal was just take them to the cloud that they have some data centers stuff they were running at a space and their data center is like no they wanted to do a technology refresh so for all the reasons that everyone else is moving to cloud we moved the sports core infrastructure to cloud over some number of years right so that's a process for starting and part of that is the archive of all Formula One races it's a treasure trove like 67 years of archive of everything they've got all the videos were digitizing it we're gonna figure out what to do what you know we've got to process it to label everything anyway so that's one thing and then we went turned up it we all turned up at Silverstone in the UK at that race it was the week after the announcement and that race we have a do as logos turning up on the screen because another piece was sponsorship so we start sponsoring the core video feed that Formula One uses to the world and that's 500 million fans watch Formula One so now 500 million fans for the next few years they're going to see a dope race logos on screen around the analytical insights of what is going on in the sport the odd rear tires are overheating you went round a corner this fast here's the pit stop strategy so we brand advertising associate with a high-technology sport and analytical insights and that's why we did that deal and they get all of our technology AI a lot of help helping them migrate and then the third thing we did that I got involved with was I'd already done a few CIO summits at Formula One races along the way so I was kind of like trying to poke my way into this thing that was happening I'm not involved in sponsorship set up right so hang on if you've done that thing yet and then them so we decided to do some executive events around Formula one so we'll pick a few races we'll have some you know corporate hospitality like things but when you put a bunch of senior executives together for a few days they share they solve each other's problems and you just get out of the way and they know the people that have solved one problem will share it with the other so it's a really it's like a tiny reinvent right here everyone is sharing if you sit next to someone what problem have you sold you can find stuff out so this is a concentrated version of that and we retired it in Monza earlier this year went great amazing I mean it's fun and it you know next to the business so it finally was like can we get someone on the car on Reba okay who's in Abu Dhabi on Saturday can we get them on Sunday night for the launch for the robot slut no this is like top guy in Formula One got here from Abu Dhabi if by Wednesday morning I'm just happy that they got here yeah that was that was a huge tire cube team we've watched your career you've been somebody who you know shares his knowledge and done some great work so thank you so much for coming back in the cube like that congratulations on all your great work Andy Jesse's coming up next we're excited about that keeper right to everybody we'll be back with our next guest Andy Jesse CEO of AWS right - this short break [Music]

>> Live from Las Vegas, it's theCUBE. Covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel. And their ecosystem partners. >> It's good to have you back here on theCUBE as we continue our day three coverage of AWS re:Invent. This is our 7th year at this show by the way, and it was just a little itty bitty thing some seven years ago. It's going to almost 40 thousand plus this year, and I think most of them are still here enjoying day three. Rebecca Knight with John Walls, and we're now joined by Dan Potter, who is the vice president of product management, and marketing at Attunity. Dan, good to see ya. >> Great to be back at theCUBE. >> You're a CUBE alumn, >> I am a CUBE alumn. >> we should say. >> Yes I am. >> And you were with Rebecca last year, two Bostonians, so again, I'll try to interject when I can, right? (Dan laughs) >> You don't speak our language fella. We can translate. >> It's alright Dan, it's okay. >> We were saying, before we got started here, you go to a lot of shows, right? >> Yes. >> And so, every one has it's own personality, it has it's own rhythm, it's own vibe. I mean, how would you characterize what you're seeing here? Especially, here we are day three, and it's still alive and thriving. >> It is absolutely overwhelming. This is my 3rd. Every year it grows. But I just seem to spend my days going from hotel to hotel, you know, to try to hit the sessions you want to, I feel like I'm always in an Uber, it's just so big, and the keynotes, there are so many new solutions that they're rolling out, it's just, the scale is so impressive. >> So what keeps you coming back? I mean, is it the chance to see so many customers in one place? Is it to hear the dizzying number of announcements from Andy Jassy? >> So I loved Andy's presentation, and the keynote this morning was great. For us, all of our customers are moving to the Cloud. I mean, Amazon really is the pioneer of people, and their transformation to the Cloud, and the success that customers are having with the Amazon platform is just astounding, and to see, over the last few years, how organizations have overcome some of the technical barriers, some of the perceptual, the regulatory barriers, they're all gone now, and this wave of movement to Amazon, and to Google and to Azure, it's real and it's happening and it's only accelerating. So it's exciting for us, you know, we're a vendor of data integration solutions. So we help customers move their data into the Cloud, and it's been great business for us, but it's been really fun connecting with our customers who we've gone through multiyear journeys with them as they're moving to the Cloud. So it's fun to see the success that they're having now with all the new technologies in the Amazon stack, it's great. >> So I want to ask you about the trends in the marketplace, what you're seeing, what you're hearing, as you've said, the security, the regulatory, the concerns are pretty much gone now. >> They are. >> They've had this aha moment. >> The Cloud is where I want to be. >> Yes. >> So what else are you seeing? >> Well, things continue to change, so if you look over the last few years, if you look at what's happening, all of those barriers are removed, but the technology stack it's still very much in motion in a positive way. New products are being introduced. Like today if you look at the announcement of a managed Kafka service. So one of the big trends we see is the move for realtime analytics, and to empower realtime analytics you need realtime data movement infrastructure, and Kafka is becoming an integral part of our customers data integration fabric. So that trend to realtime analytics, and having services like Kafka now on the Amazon platform, really important. >> And you got to Hadoop play, right? I mean you're working with Hadoop, you're working with Kafka as you point out. >> For sure. >> Yeah so. >> Well Hadoop's a great example of some of the changes that have happened over the last few years. Five years ago it was all Hadoop, and then all of a sudden the data lake strategy was Hadoop, and S3, and now it's Hadoop, S3, and it's Snowflake. There's so many different technologies that are really purposed to solve very particular pain points, this is the excitement for customers to be able to have this array of different technologies, and done right, if they have an architecture that supports them in moving that data where and when it's needed in whatever time frame, and structuring that information so it's analytics ready, that's the value, and that's some of the real innovations that you've seen over the last few years as this has all started to mature. >> Yeah, well I mean, take me through the data decision if you will. When am I going to leave on-prem? When am I going to move into the public cloud? As the volume of data grows, right? We're talking about trillions of processes within seconds. That's a big nut to crack for a lot of people. Why do I leave put on my Legacy system? Why do I move over? How reliable is it? What's the latency factor here? How do I make sure everybody gets to it, who needs to get to it, if it's over here, and over here? >> Exactly. >> So take us through that. >> So there are two big use cases that we see. One is analytics workloads. The Cloud is a perfect place for analytics. It allows you to create a very large data lake, bring in all kinds of hetero-genius data, bring it together, perform realtime transformation, and deliver analytics ready data to a wide variety of different business users and use cases. So the Cloud is really well purpose fit for analytics. If you look at all of the innovations that you've seen this week, a lot in AI and machine learning, a lot in realtime analytics. I mean this is the elasticity of the Cloud, and the storage capabilities, and the cost benefits of being able to store lots of information, and to be able to run different processes, analytic processes, when you need those, scale up and scale down, perfect fit for analytics. So that one is an absolute no brainer. We see a lot of people, this is the 1st choice for them as they're moving their analytic processes. The 2nd one we see is customers who have core transactional systems, like mainframe systems, you see this a lot in finance, big banks, insurance companies, these are 20 year old. >> I don't want to leave the mainframe, right? >> Not only are they not leaving the mainframe, but they're continuing to invest in the mainframe, and the mainframe is optimized for those transaction processing systems. But what they're not optimized for is how do I build new customer facing, web based applications, mobile applications, and the Cloud is the perfect environment to do that. So the way that we marry those two things together, and the big trend here is this is where realtime synchronization of data comes in. Every time there's an update on that mainframe system we can move that changed data to the Cloud in realtime. So if you're a bank, and you want to provide a web based interface, let me check my account balance, I need a realtime view, but you don't want to write that application against the mainframe, it's too expensive, the processing of a mainframe is too expensive. So if I can replicate that data into the Cloud, and I've got this whole modern array of tools in the Cloud, and I can take modern approaches, like microservices architectures, so I can have different optimized smaller databases that are purposed for different types of mobile apps, or web apps, that's the other trend that we're seeing. So that's kind of bridging that Legacy gap, and to your question of, what data do I leave on-prem? And what do I move to the Cloud? Those core transaction processing systems, they may never move to the Cloud, or in our lifetime we may not see those. Other databases, other applications are lift and shift moving to the Cloud. So things that are a more modern architecture we're seeing a lot of lift and shift directly to the Cloud. But it's going to be a mix for some time. >> So I understand you have a new launch of Attunity for data lakes on AWS, >> We do, yeah. >> tell our viewers a little more about that. >> So this is exciting. So I'll step back for a moment. We provide realtime data integration, and we move that changed data from on-prem into the Cloud. Moving the data is the 1st step, and it's an absolute requirement. But what really needs to happen in order to get the value from your data lake and cloud, you need to be able to not just move the data but shape that data, and make it purpose fit and analytics ready. So if our use case is analytics, and I want to be able to shape this data into a data mart, or I want to create an operational data store for realtime reporting or I'm a data scientist, I need a historic data store on a subset of information. Those are the analytic ready data sets that need to be created, and we're doing that end-to-end data pipeline. So realtime data movement, shaping that data, making it analytics ready and fully automating that process. So it's a streaming data pipeline process that is really leveraging the best of your core transactional systems, mainframe, SAP, Oracle, Legacy apps, files, and moving that to the Cloud in realtime so you can take advantage of all the wonderful capabilities on the Amazon platform. >> So you've been talking a lot about the changes in the data integration space, and sort of what we're seeing. What are your biggest challenges, and biggest opportunities as you're looking to 2019? >> So the biggest challenge is that there's a lot of moving parts, ya know? If you look at, again, you look at the last five years, and how many things have changed as an enterprise architect, they must scratch their head every morning and say what else Is going to change? I thought we had this figured out. So it's a challenge for us because there's a lot of different targets to support. Different clouds, Multicloud, multiple technologies, but that's also the opportunity. The opportunity here is that for us to play that role, and to help customers move data where and when they need it to whatever technology, we're completely agnostic. So if a new technology comes up, like a Snowflake. Great cloud data warehouse built on top of S3. We've seen a lot of customer interest in that, and that's been recent, the last two years out of nowhere. But very large enterprise customers have said, I want to jump on Snowflake. So for them to very quickly say, alright, now I'm going to point my data in addition to Hadoop on-prem, I'm going to point it into the Amazon Cloud, load it into Snowflake, automatically build out that data warehouse for me, and let's get real value. That's the opportunity and the excitement for us. It's never stale, there's always lots of work to do, and the types of impact that it's having on our customers, again it's really transformative to watch them go from the traditional monolithic, slow, traditional warehousing processes to more dynamic, realtime spinning up data marts for business users very very quickly so business users can have better insights, faster, make better decisions quicker, that has the impact that these organizations have been looking for, and that's why they're investing so much in the Cloud, so they can have that business impact, and we're really starting to see that. >> It's almost good new, bad news, right? The good news is things will always change. >> Yeah. >> The bad news is things will always change. >> Absolutely. >> But that's what makes it fun. Every year you come here and it's just, there's a buzz. (Rebecca laughs) There's always something exciting, and there's been some great announcements over the last few days, including ours, and it's been fun. >> It has been fun. >> Alright, Dan thanks for being with us. >> Happy to be here. >> Great to have you once again on theCUBE. >> Thanks for having me. >> See you soon I hope, down the road. >> I hope. >> Dan Potter joining us here on theCUBE. Back with more from AWS re:Invent after a short break.

>> Live from Las Vegas, it's theCUBE, covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel, and their ecosystem partners. >> And welcome back to Las Vegas. We are at AWS re:Invent, along with Rebecca Knight, I'm John Walls. A lot of energy still behind us here. >> It's amazing. >> Have you noticed that? >> This is day three, people, wow. >> And again, I know a lot of you watching, you come to shows, you attend these things, and you realize that day three sometimes can be a little bit >> Sleepy, yeah. >> Slower, yeah. Not so here, this place is still very much alive. >> Sin City. >> Yeah. Easy, easy now. (group chuckles) We're joined by a couple of gentlemen right now to join us here, Prathap Dendi, who is the General Manager of Growth Initiatives and Commercialization at AppDynamics. Prathap, thank you for being with us. >> Oh, great to be here. >> And Emmanuel Offiong, who is Vice President of Enterprise at Wyndham Hotels. Emmanuel, now usually the conversation in here is, hey, how ya doin', where are you staying? We don't have to ask you that. (group chuckles) We know, right. >> Right. >> So you're good to go at Wyndham. So, first off, let's just talk about, I'd like to get your ideas, we've talked about the show, I mean, how do you feel? You're probably around here quite a bit, Prathap, at various shows and what have ya, your thoughts about what you're seeing here at AWS re:Invent 2018? >> For starters, I think you guys need at least 10 more Cubes because I've been watching the activity here. It's just, you know, crazy, right? A lot of high energy here, a lot of cloud stories, multi-cloud stories, really feed on that, a lot of innovation that's being announced here. >> Alright, and Emmanuel, we hear this a lot, right, customers who are making that big digital jump, you're making that leap, and, in some cases, it's a bit of a leap of faith, right, in some respects. Let's go back to before that, the genesis of your decision, what was the impetus and what were your reservations, and what are your reservations still, for that matter, going forward? >> Sure, so I actually joined Wyndham about three years ago when we were trying to undertake this digital journey, and what we realized was that there was a lot of competition with our online travel agents, and we weren't really bringing in customers the way we thought we could, and so we realized that our digital platforms were antiquated. They weren't speaking to our customers in terms of increased loyalty and such, and so we knew that we had to make a change. We knew that in today's economy, in order to attract customers, we had to be more digital friendly. We had to provide a seamless experience, and we had to make sure that, on all of our platforms, that customers were able to check-in and check-out on their mobile platforms very easily. >> You mentioned online travel agents, but just talk a little bit about this era of hoteling. Has it become so much more competitive, particularly with the rise of Airbnb and other VRBOs? >> It has, it really has, so the Expedias, the Airbnbs of the world, they've really embraced technology, more so than maybe the traditional hospitality companies have, and so that's why you'll see companies like ourselves starting to make investments in technology, making investments into digital transformation. >> So you have your aha moment, we need to move forward, we need a digital transformation so you begin to look for partners. What were you looking for? >> Couple of things, so we were looking at transformation on three levels, for digital, infrastructure management, and data, and so, in terms of a partner, what we wanted to do is we were looking for someone to help us ease that journey. We knew the journey was going to be rough, especially from where we started, so we were looking for a partner like AWS that was going to help us sort of make that scale into modern-day technology very quickly. >> Alright, so when you talk about a digital journey, I just want to back up a little bit. What exactly does that encompass in your case? I mean, I'm thinking you've got your website, you've got your reservation, you know, you've got all these microservices running on your site, you know, it's all good, it's all fine. What weren't you doing specifically germane to your business that AppDynamics is now getting you back up to speed and getting you into the 21st century, if you will? >> Sure, so let me give you some context then. When we talk about customers, we talk about two sets of customers. There are guests who walk in through the door, and then there are franchisees. We're a franchise-based company so let's speak to our guests. In regards to our guests, our check-in/check-out process wasn't as seamless as it could be, right. It wasn't very mobile friendly at the time so those were the things that we were looking to change, and in regards to our franchisees, their ultimate goal is they want to be able to check revenue. They want to be able to check rates, change rates. They want to be able to see what their competitors are doing, and they want to be able to do that very seamlessly and on a mobile platform, and we didn't have those capabilities available to them at the time. >> If I may say something? >> Please. >> It's interesting when we see leaders like Emmanuel talk about digital transformation, they're not talking about I.T. transformation, they're not talking about servers going away, infrastructure. It's really refreshing to see customers talk about business model changes. What I see, you know, Scott and Emmanuel, their team has done a great job about focusing on what is it about the business model that needs to change, and really getting that end-user experience journey, like you asked, right from the time they log-in to requesting a service or changing some reservation, all of that is what they're capturing, and it's really complex, and I know he's quite humble to say, oh, we've done it at scale, but this is hard stuff, to make it simple for the end-user passes the complexity down to the systems, and that's what the team at Wyndham was able to do and we're lucky, AppDynamics, to be part of that journey that monitors the end-to-end performance of the end-user journeys, and then importantly correlate that to business outcomes. You know, do we actually have more partners coming in? Is the full journey faster now, now that we've gone to AWS, is it really impacting the business or is it just I.T. spin? So that's really a good caller to see that digital transformation is really a business model change not just an I.T. change. >> So the business model, so walk us through exactly what you did for this transformation and this cloud migration too. >> Sure, so the first step was realizing that we had to start to migrate some workloads to the cloud, and the reason why we knew we had to go to the cloud was, like I said before, we wanted to get out of the business of managing infrastructure, right, so we said we're going to take our workloads to the cloud. Well, going to the cloud, especially with the type of workloads we were looking at, is often a very complicated and complex adventure, and that's where AppDynamics came in for us, right. We knew we needed something that was going to allow us to see end to end where we started from, and when we migrate to the cloud, have that same level of visibility to ensure that we didn't do two things, right. We're protecting the brand, and we want to make sure we protect our customer experience. Those are the two things that were most important to us as a part of this journey. >> From a security standpoint, huge concern, right? I mean, it has been for a while, but when you go public and what exposure there might be, how have you two kind of dealt with that because, obviously, you're dealing with financial information, with customer information, there's a lot of proprietary stuff that you're getting from your folks that you have to protect, and, obviously, internally as well. So talk about the security component. >> Yeah, happy to go first. It used to be just about five, six years ago, application was seen as a separate silo or a separate layer, and security was different and experience was different. What we're now seeing is every business function is getting really melded into that one concept of end-user experience so security becomes, not an afterthought, but actually is part of the design construct, right, and what we've seen with customers like Wyndham is they have gotten so much better at measuring right from the click stream of from reservation to fulfillment, and looking for anomalies in that data, right, so security correlation to the application data is out of the box now so that's the pre-design for architecture groups like Emmanuel's. >> Sure, yeah, so I (chuckles) I think you said it very well. >> I'll say what he said, right? (group chuckles) >> Well, when you're thinking about this migration, which began in, when did this journey begin? >> Couple years ago. >> Couple of years ago. So, now, was there resistance to it? As you said, you were really at this tipping point where you said we got to do something different here. We've got a lot of different competition coming at us from different angles. >> Yeah, so there was some level of internal concern, I would say, but we worked through that, right. It's really about, at the end of the day, we migrated 8,400 hotels across 18 brands onto this new platform, right, so it's not insignificant so you can imagine, right, the amount of internal conversations that needed to happen to get something like that accomplished. >> And what haven't you done? Obviously, this is a multi-year process. You can't snap your fingers and it's going to be done. I assume you're in a still a nascent stage of this, and you have much more work to do. >> Yep, now we're focused on data, right. Now, we're focused on grabbing insights from the data that we've put into the cloud. We've migrated most of what we were looking to migrate over the last two years, if you will, and now we're lookin' at how do we get more insights from the data that's available to us? >> Alright, and is that something that your company can play with as well? >> And Amazon and AWS themselves so I think over the years what I've seen, you know, I've been an engineer in this career, now in the business side, you co-system around application stack has gotten so transparent, right, so customers like Wyndham are able to purchase best of breed solutions like AppDynamics on AWS marketplace, click of a button. There's no long cycles of value so you quickly get to the value, and then once the journey starts, it's really all about the customer. They're generating trillions of data set every day across their business. Our goal is to see how can we bubble up the impact of that investment to their line of business? How quickly are the customers getting on board, making their decisions versus having to worry about the servers and the infrastructure. That's what we're seeing in a big way. >> Well, and as you said before, this is a business model change. It wasn't just a technology change so how have your customers seen this? How are they reacting? What are your franchisees seeing? How has the business changed? >> From our perspective, the customers love it, and we can measure that in terms of our bookings. We're up 75% in terms of mobile bookings as a result of some of these changes that we've made. Our customers have given us feedback that the experience is much more seamless. Our franchisees have given us feedback that, you know what, it's easier to use our services. >> Yeah, all I want is the best rate. (group laughs) Just give me the best rate, Emmanuel, alright, and I'm a happy camper. >> The statistic that he shared is phenomenal, right, being able to see 75% jump in mobile booking is significant. >> That's extraordinary. >> That's real ROI. >> Yeah, and there are others too. Scott, their CIO, recently wrote in a blog about how and why the CIOs are sleeping better, right. They're actually getting sleep back, and I think that's really the result of the transformation where systems like AppDynamics, systems like applications they wrote, they'll become a lot more seamless now, and being able to show, when I invest a dollar into an application, how is that yielding to line of business, real time is what they have as power now. >> The boss is happy. >> Yeah. >> Yes. >> Well, if they're sleeping well, we're all sleeping well. I know how that goes. Gentlemen, thanks for sharing this story. >> Thank you. >> Thank you, thank you for having us. >> Appreciate your time here. >> Appreciate it. >> Appreciate it. >> You bet, back with more here from AWS re:Invent. You're watching this live from Las Vegas, and we're on theCUBE. (techno music)

>> Live from Las Vegas, it's theCUBE, covering AWS re:Invent 2018, brought to you by Amazon Web Services, Intel, and their ecosystem partners. >> Hi everybody, welcome back to Las Vegas. I'm Dave Vellante with theCUBE, the leader in live tech coverages. This is day three from AWS re:Invent, #reInvent18, amazing. We have four sets here this week, two sets on the main stage. This is day three for us, our sixth year at AWS re:Invent, covering all the innovations. Markus Strauss is here as a Product Manager for database security at McAfee. Markus, welcome. >> Hi Dave, thanks very much for having me. >> You're very welcome. Topic near and dear to my heart, just generally, database security, privacy, compliance, governance, super important topics. But I wonder if we can start with some of the things that you see as an organization, just general challenges in securing database. Why is it important, why is it hard, what are some of the critical factors? >> Most of our customers, one of the biggest challenges they have is the fact that whenever you start migrating databases into the cloud, you inadvertently lose some of the controls that you might have on premise. Things like monitoring the data, things like being able to do real time access monitoring and real time data monitoring, which is very, very important, regardless of where you are, whether you are in the cloud or on premise. So these are probably really the biggest challenges that we see for customers, and also a point that holds them back a little, in terms of being able to move database workloads into the cloud. >> I want to make sure I understand that. So you're saying, if I can rephrase or reinterpret, and tell me if I'm wrong. You're saying, you got great visibility on prem and you're trying to replicate that degree of visibility in the cloud. >> Correct. >> It's almost the opposite of what you hear oftentimes, how people want to bring the cloud while on premise. >> Exactly. >> It's the opposite here. >> It's the opposite, yeah. 'Cause traditionally, we're very used to monitoring databases on prem, whether that's native auditing, whether that is in memory monitoring, network monitoring, all of these things. But once you take that database workload, and push it into the cloud, all of those monitoring capabilities essentially disappear, 'cause none of that technology was essentially moved over into the cloud, which is a really, really big point for customers, 'cause they cannot take that and just have a gap in their compliance. >> So database discovery is obviously a key step in that process. >> Correct, correct. >> What is database discovery? Why is it important and where does it fit? >> One of the main challenges most customers have is the ability to know where the data sits, and that begins with knowing where the database and how many databases customers have. Whenever we talk to customers and we ask how many databases are within an organization, generally speaking, the answer is 100, 200, 500, and when the actual scanning happens, very often the surprise is it's a lot more than what the customer initially thought, and that's because it's so easy to just spin off a database, work with it, and then forget about it, but from a compliance point of view, that means you're now sitting there, having data, and you're not monitoring it, you're not compliant. You don't even know it exists. So data discovery in terms of database discovery means you got to be able to find where your database workload is and be able to start monitoring that. >> You know, it's interesting. 10 years ago, database was kind of boring. I mean it was like Oracle, SQL Server, maybe DB2, maybe a couple of others, then all of a sudden, the NoSQL explosion occurred. So when we talk about moving databases into the cloud, what are you seeing there? Obviously Oracle is the commercial database market share leader. Maybe there's some smaller players. Well, Microsoft SQL Server obviously a very big... Those are the two big ones. Are we talking about moving those into the cloud? Kind of a lift and shift. Are we talking about conversion? Maybe you could give us some color on that. >> I think there's a bit of both, right? A lot of organizations who have proprietary applications that run since many, many years, there's a certain amount of lift and shift, right, because they don't want to rewrite the applications that run on these databases. But wherever there is a chance for organizations to move into some of their, let's say, more newer database systems, most organizations would take that opportunity, because it's easier to scale, it's quicker, it's faster, they get a lot more out of it, and it's obviously commercially more valuable as well, right? So, we see quite a big shift around NoSQL, but also some of the open source engines, like MySQL, ProsgreSQL, Percona, MariaDB, a lot of the other databases that, traditionally within the enterprise space, we probably wouldn't have seen that much in the past, right? >> And are you seeing that in a lot of those sort of emerging databases, that the attention to security detail is perhaps not as great as it has been in the traditional transaction environment, whether it's Oracle, DB2, even certainly, SQL Server. So, talk about that potential issue and how you guys are helping solve that. >> Yeah, I mean, one of the big things, and I think it was two years ago, when one of the open source databases got discovered essentially online via some, and I'm not going to name names, but the initial default installation had admin as username and no password, right? And it's very easy to install it that way, but unfortunately it means you potentially leave a very, very big gaping hole open, right? And that's one of the challenges with having open source and easily deployable solutions, because Oracle, SQLServer, they don't let you do that that quickly, right? But it might happen with other not as large database instances. One of the things that McAfee for instance does is helps customers making sure that configuration scans are done, so that once you have set up a database instance, that as an organization, you can go in and can say, okay, I need to know whether it's up to patch level, whether we have any sort of standard users with standard passwords, whether we have any sort of very weak passwords that are within the database environment, just to make sure that you cover all of those points, but because it's also important from a compliance point of view, right? It brings me always back to the compliance point of view of the organization being the data steward, the owner of the data, and it has to be our, I suppose, biggest point to protect the data that sits on those databases, right? >> Yeah, well there's kind of two sides of the same coin. The security and then compliance, governance, privacy, it flips. For those edicts, those compliance and governance edicts, I presume your objective is to make sure that those carry over when you move to the cloud. How do you ensure that? >> So, I suppose the biggest point to make that happen is ensure that you have one set of controls that applies to both environments. It brings us back to the hybrid point, right? Because you got to be able to reuse and use the same policies, and measures, and controls that you have on prem and be able to shift these into the cloud and apply them to the same rigor into the cloud databases as you would have been used to on prem, right? So that means being able to use the same set of policies, the same set of access control whether you're on prem or in the cloud. >> Yeah, so I don't know if our folks in our audience saw it today, but Werner Vogels gave a really, really detailed overview of Aurora. He went back to 2004, when their Oracle database went down because they were trying to do things that were unnatural. They were scaling up, and the global distribution. But anyway, he talked about how they re-architected their systems and gave inside baseball on Aurora. Huge emphasis on recovery. So you know, being very important to them, data accessibility, obviously security is a big piece of that. You're working with AWS on Aurora, and RDS as well. Can you talk specifically about what you're doing there as a partnership? >> So, AWS has, I think it was two days ago, essentially put the Aurora database activity stream into private preview, which is essentially a way for third party vendors to be able to read a activity stream off Aurora, enabling McAfee, for instance, to consume that data and bring customers the same level of real-time monitoring to the database as the servers were, as were used to on prem or even in a EC2 environment, where it's a lot easier because customers have access to the infrastructure, install things. That's always been a challenge within the database as the servers were because that access is not there, right? So, customers need to have an ability to get the same level of detail, and with the database activity stream and the ability for McAfee to read that, we give customers the same ability with Aurora PostgreSQL at the moment as customers have on premise with any of the other databases that we support. >> So you're bringing your expertise, some of which is really being able to identify anomalies, and scribbling through all this noise, and identifying the signal that's dangerous, and then obviously helping people respond to that. That's what you're enabling through that connection point. >> Correct, 'cause for organizations, using something like Aurora is a big saving, and the scalability that comes with it is fantastic. But if I can't have the same level of data control that I have on premise, it's going to stop me as an organization, moving critical data into that, 'cause I can't protect it, and I have to be able to. So, with this step, it's a great first step into being able to provide that same level of activity monitoring in real time as we're used to on prem. >> Same for RDS, is that pretty much what you're doing there? >> It's the same for RDS, yes. There is a certain set level of, obviously, you know, we go through before things go into GA but RDS is part of that program as well, yes. >> So, I wonder if we can step back a little bit and talk about some of the big picture trends in security. You know, we've gone from a world of hacktivists to organized crime, which is very lucrative. There are even state sponsored terrorism. I think Stuxnet is interesting. You probably can't talk about Stuxnet. Anyway-- >> No, not really. >> But, conceptually, now the bar is raised and the sophistication goes up. It's an arms race. How are you keeping pace? What role does data have? What's the state of security technology? >> It's very interesting, because traditionally, databases, nobody wanted to touch the areas. We were all very, very good at building walls around and being very perimeter-oriented when it comes to data center and all of that. I think that has changed little bit with the, I suppose the increased focus on the actual data. Since a lot of the legislations have changed since the threat of what if GDPR came in, a lot of companies had to rethink their take on protecting data at source. 'Cause when we start looking at the exfiltration path of data breaches, almost all the exfiltration happens essentially out of the database. Of course, it makes sense, right? I mean I get into the environment through various different other ways, but essentially, my main goal is not to see the network traffic. My main goal as any sort of hacker is essentially get onto the data, get that out, 'cause that's where the money sits. That's what essentially brings the most money in the open market. So being able to protect that data at source is going to help a lot of companies make sure that that doesn't happen, right? >> Now, the other big topic I want to touch on in the minute we have remaining is ransomware. It's a hot topic. People are talking about creating air gaps, but even air gaps, you can get through an air gap with a stick. Yeah, people get through. Your thoughts on ransomware, how are you guys combating that? >> There is very specific strains, actually, developed for databases. It's a hugely interesting topic. But essentially what it does is it doesn't encrypt the whole database, it encrypts very specific key fields, leaves the public key present for a longer period of time than what we're used to see on the endpoint board, where it's a lot more like a shotgun approach and you know somebody is going to pick it up, and going to pay the $200, $300, $400, whatever it is. On the database side, it's a lot more targeted, but generally it's a lot more expensive, right? So, that essentially runs for six months, eight months, make sure that all of the backups are encrypted as well, and then the public key gets removed, and essentially, you have lost access to all of your data, 'cause even the application that access the data can't talk to the database anymore. So, we have put specific controls in place that monitor for changes in the encryption level, so even if only one or two key fields starting to get encrypted with a different encryption key, we're able to pick that up, and alert you on it, and say hey, hang on, there is something different to what you usually do in terms of your encryption. And that's a first step to stopping that, and being able to roll back and bring in a backup, and change, and start looking where the attacker essentially gained access into the environment. >> Markus, are organizations at the point where they are automating that process, or is it still too dangerous? >> A lot of it is still too dangerous, although, having said that, we would like to go more into the automation space, and I think it's something as an industry we have to, because there is so much pressure on any security personnel to follow through and do all of the rules, and sift through, and find the needle in the haystack. But especially on a database, the risk of automating some of those points is very great, because if you make a mistake, you might break a connection, or you might break something that's essentially very, very valuable, and that's the crown jewels, the data within the company. >> Right. All right, we got to go. Thanks so much. This is a really super important topic. >> Appreciate all the good work you're doing. >> Thanks for having me. >> You're very welcome. All right, keep it right there, everybody. You're watching theCUBE. We'll be right back, right after this short break from AWS re:Invent 2018, from Las Vegas. We'll be right back. (techno music)

>> Live from Las Vegas. It's the Cube. Covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel and their ecosystem partners. >> And welcome back to Las Vegas. Good afternoon to you. No matter where you're watching, here in the US, we know it is afternoon. As we wind up our coverage for day three at AWS re:invent here on the Cube. One of seven venues we're in right now that's hosting various satellite events. Right now we're in the Sands Expo. Rebecca Knight, John Walls, with Russ Currie. The vice president of Enterprise Strategy at NetScout. Russ, good to see you sir. >> Nice to see you again. >> I've got to be careful. I've got two Bostonian's of sorts here. >> Sorry, sorry. >> So if I don't get something on the accent, you just let me know (laughs) >> We'll talk amongst ourselves. >> Sorry if your sports inferiority complex is.. We're the champions, whatever >> Russ, if you would, first off, your take about what you're seeing here. Because, here we are, day three. As you know, you've been to a lot of shows. Day three, kind of, usually hits a different gear, right? >> Right >> Slows down a little bit. There's still a lot of excitement here. There's still a lot of people around. This show has a little different vibe to it. >> It really does. It's interesting because it becomes a little bit more serious, I think. At this point, in day three for this show, it's now, people are really kind of, they've been exposed to an awful lot in the last three days. And they're really saying, "Okay, now I really want to understand the nuts and bolts of it", and they're spending a little bit more time sitting and learning, understanding what you have to offer them in terms of your solution sense. So it's been an awful lot of fun. Also we did a couple of speaking engagements, so it's really good getting the folks that went and saw our guys speak and seeing them come into the booth and say, 'I want to talk more about that'. >> Well, I want to talk more about that, so you have a new marketing campaign, but first for the viewers who are not familiar with NetScout, you're a Fortune 500 company, but tell us a little more about who you are and what you do. >> Right, so what we do is we provide visibility into the communications between servers and clients and basically see all of the traffic that traverses the network and whether the network is in a public cloud, private cloud, or an on-prem environment, and by looking at that traffic we're able to understand the performance of the services that are being delivered and ensure the security performance of those servers. But right in that perspective we give IT the tools they need to get quicker to the mean time to knowledge, identifying where a problem might be or where a risk may exist and being able to solve those tough problems. >> So it's been a year since you've been on the Cube, I know the esteemed John Walls interviewed you. >> We go way back, yes. >> What's new this year? What sort of advancements, progressions have you implemented? >> So last year when we came in was really our first entry into the public cloud environment and our first entry into AWS, since then we've got a lot of really good traction, a lot of embracing of our technology, we partnered more closely with AWS and got ourselves onto the marketplace. We also enhanced our partnership with VMware and now a part of their NetX integration so we have high levels of integration into both of those platforms, which of course is strong to this entire audience. We've introduced new features and functionality into our product to be able to provide greater visibility, even going deeper into understanding the way the applications are functioning and also added some more security profiling into our products and being able to identify threats as they come into the enterprise network and also as they go out ,so, it's been interesting, it's been a lot of fun. >> You talk about the hybrid cloud and obviously we're hearing that here, this week right, so AWS is obviously slightly shifting its perspective a bit, you know, in terms of on-prem and dealing with the public cloud as well, mind that merger. Your clients, is their any arm twisting that you still have to do or are people buying into it a little more wholeheartedly now in terms of the public cloud and that you've addressed these security concerns? >> I think actually we've become an enabler in often times for our customers, to move to the cloud with competence, where they were a little bit concerned that as they move into the cloud, what kind of investment in tools are they going to have to make? What are they going to potentially lose as they put their workloads into the cloud ? Do they lose a degree of visibility and control? And what we've been able to do is ensure that they have that same experience no matter where they deploy. We were talking earlier about one of our customers that's in the travel and entertainment business and they have been using our gear on cruise ships and in their on-prem data center, but expanded themselves into AWS to extend their capabilities and provide a better user experience for those on ship and now what they really have was the ability to have visibility from ship to shore to cloud and have that perspective and have the confidence that they're delivering a high quality experience to their customers. >> Ship to shore to cloud, not every company can say that. >> Exactly. >> But speaking of motto's, you have a new marketing campaign, visibility without borders. What does that mean? What are you trying to evoke their with your customers? >> What we we're really trying to look at there is the ability to provide visibility no matter where you're deployed. If you have a deployment in a public cloud environment like AWS, you want to have that same level of visibility in your on-prem environment, you want to have it no matter where you have a workload, wherever you have an instance that you want to manage. You want to be able to have that same perspective, one of the things we talk about a little bit, is the idea that, providing a single pane of glass into the service insurance experience and I think that often times, when people try to get to that single pane of glass, they end up with more of a single glass of pain. (laughing) You know, they're trying to aggregate so much stuff that it really doesn't come together too well. >> Right. >> But because we focus in on the data source itself then it just provides that continuity regardless of where they deploy. >> Alright and the importance of visibility, obviously when you're talking about end to end right now, whether you're on-prem or whether you're in the public cloud you're not particular, right? >> Right. >> As a user, I just want to see my operation from start to finish and I don't care where it is. >> Exactly, providing that end to end perspective and being able to understand how I'm delivering services, what the customer experiences, no matter where I deploy and especially when we look at taking advantage of some of the elastic compute capabilities and the like that exists in the cloud, you want to ensure that you're actually getting what you paid for as well, you want to have those controls in place, knowing that what you're delivering is meaningful and impacting the business in a positive way as opposed to, potentially, in a negative way, and spending too much for something that doesn't improve anything in terms of the customer experience. >> Right. >> So the customers, when they want to talk about return on investment, what excites them most? What kind of things are you showing them that is delighting them? >> Often times it's really about mean time to knowledge, we spend a lot of time pointing fingers at each other when we're trying to solve a problem instead of pointing our fingers at the problem. And that's really what we try to focus in on, really getting down into the real details of why something is not performing properly, not, what might be performing improperly. So being able to really get down to that detail and get the right people working on the right problems, I often talk about it in terms of getting the right information, to the right person at the right time, to do the right thing. And if you're able to do that, you're going to provide a better user experience to your customers. >> You mention that a lot of your personnel, a lot of your folks here have been speaking, talking to various groups, I always find that interesting right, because, it's usually the Q&A. >> Yes. >> That when things pop off. So, if you had to generalize about the kind of feedback you're getting from those sessions in terms of the questions, the concerns, the challenges, what are you hearing from folks out there? >> It's kind of funny, one of the things that we get a lot of times is, "You really can do this?" you know, "Is this real what you're showing us?", it's like, yes, this is actual traffic we're showing you exactly what we're seeing. >> Yeah. >> And then they are often pretty amazed at our ability to bring this all into something that visualizes these complex applications that they're delivering across multiple different environments and they have that ah-ah moment where they go, "Oh gosh I really need this, you know, this is really that end to end view that I've been looking for for so long, but I really can't get what I use, a bunch of disparate tools, to try and bring that together" >> So that means, what you just described, is really the definition of innovation, which is providing customers with things that they want, that they didn't even know they wanted. How do you stay innovative? I mean here we are at AWS, Amazon, one of the most innovative companies on the planet and in the history of industry. >> Absolutely. >> How does a company, you're based in Westford, Massachusetts, how do you stay on the cutting edge? >> We spend an enormous amount of time working with our customers and listening to them in terms of where they're going, what their plans are, what new technologies might they be implementing, what are their major initiatives, we regularly reach out and we have constant contact with them to get that feedback and make sure that we're developing solutions that are meaningful to them, it's really about, not what feature can I deliver but what can I provide as value, that's going to make their lives better. Because, as an IT person, it's a tough job right? You're usually the person that people look at and say "Why isn't this working?". >> Right. >> And not being able to have an answer to that, is not a good position to be in. (laughter) Right, so what we're really trying to do is provide them with that answer and give them that ability to be able to answer the tough questions and solve those tough problems. >> Talking about finger pointing, it happens right? >> It does, you know. So what we're really all about is making sure that they're able to get the problem solved as quickly as possible. One of the interesting things I've been hearing from our customers too is that they're looking to this concept of a versatilist, rather than having just a straight forward specialist coming in and work on problems, having people that are a little bit broader in terms of their capabilities and looking at things not only from the perspective, say I'm a network guy, I'm going to look at the network and the app guys going to look at the app. >> Right. >> You got to cross pollinate a little bit and provide that ability to see both sides of that problem, so that's starting to happen. >> Certainly presents a challenge for your workforce right? All of a sudden, you've got to be a little smarter and where a lot of different hats. >> Exactly. >> Versatilist, I like that. You heard it here first. >> Yeah. >> Well, Russ, if you're going to go and ship the shorter cloud, you let us know? OK? >> OK. (laughing) >> Because we want to take that journey with you, alright? >> Love to. >> Thanks for being with us again, good to see you. >> Thank you, it was a pleasure. >> You bet, safe trip home. Back with more here from AWS re:Invent, you are watching us live on the Cube.

>> Live, from Las Vegas, it's theCUBE covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel, and their ecosystem partners. >> Hey, welcome back everyone. Live, Cube here in Las Vegas for AWS re:Invent. I'm John Furrier with my co-host, Dave Vellante. Day three of wall to wall coverage, holding our voices together, excited for our next guest, Shayn Hawthorne, general manager at AWS, for the exciting project around the Ground Station, partnership with Lockheed Martin. Really kind of outside the box, announced on Tuesday, not at the keynote, but this is a forward thinking real project which satellites can be provisioned like cloud computing resources. Totally innovative, and will change the nature of edge computing, feeding connectivity to anything. So, thanks for joining us. >> Thank you guys for having me. You're right, my voice is going out this week too. We've been doing a lot of talking. (John laughs) >> Great service. This is really compelling, 'cause it changes the nature of the network. You can feed connectivity, 'cause power and connectivity drive everything. Power, you got battery. Connectivity, you got satellite. Totally obvious, now that you look at it, but, not before this. Where did it come from? How did it all start? >> You know, it came from listening to our customers. Our customers have been talking with us and they had a number of challenges in getting the data off of their satellites and down to the ground. So, we listened to these customers and we listened to the challenges they were experiencing in getting their data to the ground, having access to ground stations, having the ability at the network level, to move the data around the world quickly to where they wanted to process it. And then also, having complex business process logic and other things that were required to help them run their satellite downlinks and uplinks. And then finally, the ability to actually have AWS services right there where the data came down into the cloud, so that you could do great things with that data within milliseconds of it hitting the ground. >> So it's a essentially satellite as a service with a back end data capability, data ingestion, analytics, and management capability. That, how'd that idea come about? I mean, it just underscores the scale of AWS. And I'm thinking about other things that you might be able to, where'd the idea come from? How was it germinated? >> Well and actually, let me just say one thing, we actually would call it Ground Station as the service. It's the Ground Station on the surface of the earth that communicates with the satellite. It allows us to get the data off the satellite or send commands up to it. And so, like I was saying, we came up the idea by talking to our customers, and so we went into, I think this is an incredible part of working at Amazon, because we actually follow through with our leadership principals. We worked backwards from the customer. We actually put together a press release and a frequently asked questions document, a PR/FAQ, in a traditional six page format. And we started working it through our leadership and it got all the way to the point that Andy and the senior leadership team within AWS made the decision that they were going to support our idea and the concept and the architecture that we had come up with to meet these customers' requirements, we actually were able to get to that by about March of 2018. By the end of March, Andy had even had us go in and talk with Jeff. He gave us the thumbs up as well, and after six months, we've already procured 24 antennas. We've already built two Ground Stations in the United States and we've downlinked over hundreds of contacts with satellites, bringing Earth imagery down and other test data to prove that this system works. Get it ready for preview. >> It's unbelievable, because you're basically taking the principals of AWS, which is eliminating the heavy lifting, applying that to building Ground Stations, presumably, right, so, the infrastructure that you're building out, do you have partners that you're working with, are there critical players there, that are enabling this? >> Yeah, it's really neat. We've actually had some really great partnerships, both with helping us build AWS Ground Station, as well as partners that helped us learn what the customers need. Let me tell you, first off, about the partnership that we've had with Lockheed Martin to develop a new innovative antenna system that will collaboratively come together with the parabolic reflectors that AWS Ground Station uses. They've been working on this really neat idea that gives them ability to downlink data all over the entire United States in a very resilient way, which means if some of their Ground Stations antennas in Verge don't work, due to man made reasons or due to natural occurrences, then we're actually able to use the rest of the network to still continue to downlink data. And then, we complimentary bring in AWS Astra for certain types of downlinks and then also to provide uplink commanding to other satellites. The other customer partnership that we've worked with was working with the actual customers who are going to use AWS Ground Station, like DigitalGlobe, Black Sky, Capella SAR, HawkEye 360, who all provided valuable inputs to us about exactly what do they need in a Ground Station. They need the ability to rapidly downlink data, they need the ability to pay by the minute so that there are actually able to use variable expense to pay for satellite downlinks instead of capital expenses to go out and build it. And then by doing that, we're able to offer them a product that's 80% cheaper than if they'd had to go out and build a complete network similar to what we built. And, they're able to, like I said before, access great AWS services like Rekognition, or SageMaker, so that they can make sense of the data that they bring down to the Earth. >> It's a big idea and I'm just sort of curious as to, how and if you, sort of, validated it. How'd ya increase the probability that it was actually going to, you know, deliver a business return? Can you talk about that process? >> Well, we were really focused on validating that we could meet customer challenges and really give them the data securely and reliably with great redundancy. So we validated, first off by, we built our antennas and the Ground Stations in the previous software. We finished over a month and a half ago, and we've been rigorously testing it with our customer partners and then letting them validate that the information we've provided back to them was 100% as good as what they would've received on their own network, and we tested it out, and we've actually got a number of pictures and images downloaded over at our kiosk that were all brought in on AWS Ground Station, and its a superb products over there. >> So Shayn, how does it work? You write this press release, this working backwards document, describe that process. Was that process new to you? Had you done it at other companies? How did you find it? Was it a useful process, obviously it was, 'cause you got the outcome you're looking for, but, talk a little bit more about that approach. >> Yeah, it's actually very cool, I've only been at AWS for a year and a half. And so, I would say that my experience at AWS so far completely validates working backwards from customers. We were turned on to the idea by talking to our customers and the challenges they said. I started doing analysis after the job was assigned to me by Dave Nolton, my boss, and I started putting together the first draft of our PR/FAQ, started engaging with customers immediately. Believe it or not, we went through 28 iterations of the PR/FAQ before we even got to Andy. Everybody in our organization took part in helping to make it better, add in, ask hard questions, ensure that we were really thinking this idea through and that we were obsessing on the customer. And then after we got to Andy, and we got through approving that, it probably went through another 28 iterations before we got to Jeff. And then we went through talking with him. He asked additional hard questions to make sure that we were doing the right for the customer and that we were putting together the right kind of product. And finally we've been iterating it on it ever since until we launched it couple of days ago. >> Sounds like you were iterating, raising the bar, and it resonated with customers. >> Totally. And even as part of getting out of it-- >> That's Amazon's language of love. >> And then your engineering resource, you know, if people are asking you hard questions, you obviously need engineering folks to validate that it's doable. At what point do you get that engineering resource, how does that all work? >> Well, it's neat. In my division, Region Services Division, we actually were supporting it completely from within the division, all the way until we got approval from Andy. And then we actually went in and started hiring very good skills. To show you what kind of incredible people we have at Amazon, we only had to hire about 10% space expertise from outside of the company. We were actually able to bring together 80-90% of the needed skills to build AWS Ground Station from people who've been working at Amazon.com and AWS. And we came together, we really learned quickly, we iterated, failed fast, put things together, changed it. And we were able to deliver the product in time. The whole cloth made from our own expertise. >> So just to summarize, from idea to actual, we're going to do this, how long did that take? >> I'd say that took about three months. From idea to making a decision, three months. From decision to have a preview product that we could launch at re:Invent, six months. >> That's unbelievable. >> It is. >> If you think about something of this scope. >> And it was a joy, I mean it was an incredible to be a part of something like this. It was the best work I've ever done in my life. >> Yeah, space is fun. >> It is. >> Shayn, thanks for coming on theCUBE, sharing your story and insight, we love this. We're going to keep following it. And we're going see you guys at the Public Sector Summits, and all the events you guys are at, so, looking forward to seeing and provisioning some satellite. >> I'm looking forward to showing you what we do next. So thank you for having me. >> Great. We'll get a sneak peak. >> Congratulations. >> This is theCUBE here in Las Vegas, we'll be back with more coverage after this short break. (futuristic music)

(upbeat music) >> Live from Las Vegas, it's theCUBE covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel, and their ecosystem partners. >> Okay, welcome back everyone. Live coverage here in Las Vegas for Amazon re:Invent 2018. Day three, we're winding down over 150 videos. We'll have over 500 clips. Losing the voice. Dave Vellante, my co-host. Suzi analyst tech that we're going to extract theCUBE insights, James Kobielus. David Floyer from Wikibon. Jim you've been prolific on the blogs, Siliconangle.com, great stories. David you've got some research. What's your take? Jim, you're all over what's going on in the news. What's the impact? >> Well I think what this years re:Invent shows is that AWS is doubling down on A.I. If you look at the sheer range of innovative A.I. capabilities they've introduced into their portfolio, in terms of their announcements, it's really significant. A. They have optimized tense or flow for their cloud. B. They now have an automated labeling, called Ground Truth, labeling capability that leverages mechanical turf, which has been an Amazon capability for a while. They've also got now the industries first, what's called reinforcement learning plug-in to their data science tool chain, in this case Sage Maker, reinforcement learning is becoming so important for robotics, and gaming, and lots of other applications of A.I., and I'm just scratching the surface. So they've announced a lot of things, and David can discuss other things, but I'm seeing the depth of A.I. Their investment in it shows that they've really got their fingers on what enterprises are doing, and will be doing to differentiate themselves with this technology over the next five to ten years. >> What's an area that you see that people are getting? Clearly A.I. What areas are people missing that's compelling that you've observed here? >> When you say people are missing, you mean the general...? >> Journalists. >> Oh. >> Audience. There's so much news. >> Yeah. Yeah. >> Where are the nuggets that are hidden in the news? (laughing) What are you seeing that people might not see that's different? >> Getting back to the point I was raising, which is that robotics is becoming a predominant application realm for A.I. Robotics, outside the laboratory, or outside of the industrial I.O.T., robots are coming into everything, and there's a special type of A.I. you build into robots, re-enforcement learning is a big part of it. So I think the general, if you look at the journalists, they've missed the fact that I've seen in the past couple of years, robotics and re-enforcement learning are almost on the verge of being mainstream in the space, and AWS gets it. Just the depth of their investments. Like Deep Racer, that cute little autonomous vehicle that they rolled out here at this event, that just shows that they totally get it. That will be a huge growth sector. >> David Floyer, outpost is their on premises cloud. You've been calling this for I don't know how many years, >> (laughing) Three years. >> Three years? >> Yeah. What's the impact? >> And people said, no way Foyer's wrong (laughing). >> So you get vindication but... >> And people, in particular in AWS. (laughing) >> So you're right. So you're right, but is it going to be out in a year? >> Yeah, next in 2019. >> Will this thing actually make it to the market? And if it does what is the impact? Who wins and who loses? >> Well let's start with will it get to the market? Absolutely. It is outposts, AWS Outposts, is the name. It is taking AWS in the cloud and putting it on premise. The same API's. The same services. It'll be eventually identical between the two. And that has enormous increase in the range, and the reach that AWS and the time that AWS can go after. It is a major, major impact on the marketplace, puts pressure on a whole number of people, the traditional vendors who are supplying that marketplace of the moment, and in my opinion it's going to be wildly successful. People have been waiting that, wanting that, particularly in the enterprise market. They reasons for it are simple. Latency, low latency, you've got to have the data and the compute very close together. Moving data is very, very expensive over long distances, and the third one is many people want, or need to have the data in certain places. So the combination is meeting the requirements, they've taken a long time to get there. I think it's going to be, however wildly successful. It's going to be coming out in 2019. They'll have their alpha, their betas in the beginning of it. They'll have some announcements, probably about mid 2019. >> Who's threatened by this? Everybody? Cisco? HP? Dell? >> The integration of everything, storage, networking, compute, all in the same box is obviously a threat to all suppliers within that. And their going to have to adapt to that pretty strongly. It's going to be a declining market. Declining markets are good if you adapt properly. A lot of people make a lot of money from, like IBM, from mainframe. >> It's a huge threat to IBM. >> You're playing it safe. You're not naming names. (laughing) Okay, I'll rephrase. What's your prediction? >> What's my prediction on? >> Of the landscape after this is wildly successful. >> The landscape is that the alternatives is going to be a much, much smaller pie, and only those that have volume, and only those that can adapt to that environment are going to survive. >> Well, and let's name names. So who's threatened by this? Clearly Dell, EMC, is threatened by this. >> HP. >> HP, New Tanix, the VX rat guys, Lenovo is in there. Are they wiped out? No, but they have to respond. How do they respond? >> They have to respond, yeah. They have to have self service. They have to have utility pricing. They have to connect to the cloud. So either they go hard after AWS, connecting AWS, or they belly up to Microsoft >> With Azure Stack, >> Microsoft Azure. that's clearly going to be their fallback place, so in a way, Microsoft with Azure Stack is also threatened by this, but in a way it's goodness for them because the ecosystem is going to evolve to that. So listen, these guys don't just give up. >> No, no I know. >> They're hard competitors, they're fighters. It's also to me a confirmation of Oracle's same same strategy. On paper Oracle's got that down, they're executing on that, even though it's in a narrow Oracle world. So I think it does sort of indicate that that iPhone for the enterprise strategy is actually quite viable. If I may jump in here, four things stood out to me. The satellite as a service, was to me amazing. What's next? Amazon with scale, there's just so many opportunities for them. The Edge, if we have time. >> I was going to talk about the Edge. >> Love to talk about the Edge. The hybrid evolution, and Open Source. Amazon use to make it easy for the enterprise players to complete. They had limited sales and service capabilities, they had no Open Source give back, they were hybrid deniers. Everything's going to go into the public cloud. That's all changed. They're making it much, much more difficult, for what they call the old guard, to compete. >> So that same way the objection? >> Yeah, they're removing those barriers, those objections. >> Awesome. Edge. >> Yeah, and to comment on one of the things you were talking about, which is the Edge, they have completely changed their approach to the Edge. They have put in Neo as part of Sage Maker, which allows them to push out inference code, and they themselves are pointing out that inference code is 90% of all the compute, into... >> Not the training. >> Not the training, but the inference code after that, that's 90% of the compute. They're pushing that into the devices at the Edge, all sorts of architectures. That's a major shift in mindset about that. >> Yeah, and in fact I was really impressed by Elastic Inference for the same reasons, because it very much is a validation of a trend I've been seeing in the A.I. space for the last several years, which is, you can increasingly build A.I. in your preferred visual, declarative environment with Python code, and then the abstraction layers of the A.I. Ecosystem have developed to a point where, the ecosystem increasingly will auto-compile to TensorFlow, or MXNet, or PyTorch, and then from there further auto-compile your deployed trained model to the most efficient format for the Edge device, for the GP, or whatever. Where ever it's going to be executed, that's already a well established trend. The fact that AWS has productized that, with this Elastic Inference in their cloud, shows that not only do they get that trend, they're just going to push really hard. I'm making sure that AWS, it becomes in many ways, the hub of efficient inferencing for everybody. >> One more quick point on the Edge, if I may. What's going on on the Edge reminds me of the days when Microsoft was trying to take Windows and stick it on mobile. Right, the windows phone. Top down, I.T. guys coming at it, >> Oh that's right. >> and that's what a lot of people are doing today in IT. It's not going to work. What Amazon is doing see, we're going to build an environment that you can build applications on, that are secure, you can manage them from a bottoms up approach. >> Yeah. Absolutely. >> Identifying what the operations technology developers want. Giving them the tools to do that. That's a winning strategy. >> And focusing on them producing the devices, not themselves. >> Right. >> And not declaring where the boundaries are. >> Spot on. >> Very very important. >> Yep. >> And they're obviously inferencing, you get most value out of the data if you put that inferencing as close as you possibly can to that data, within a camera, is in the camera itself. >> And I eluded to it earlier, another key announcement from AWS here is, first of all the investment in Sage Maker itself is super impressive. In the year since they've introduced it, look at they've already added, they have that slide with all the feature enhancements, and new modules. Sage Maker Ground Truth, really important, the fully managed service for automating labeling of training datasets, using Mechanical Turk . The vast majority of the costs in a lot of A.I. initiatives involves human annotators of training data, and without human annotated training data you can't do supervised learning, which is the magic on a lot of A.I, AWS gets the fact that their customers want to automate that to the nth degree. Now they got that. >> We sound like Fam boys (laughing). >> That's going to be wildly popular. >> As we say, clean data makes good M.L., and good M.L. makes great A.I. >> Yeah. (laughing) >> So you don't want any dirty data out there. Cube, more coverage here. Cube insights panel, here in theCUBE at re:Invent. Stay with us for more after this short break. (upbeat music)

(light electronic music) >> Live from Las Vegas, it's The Cube covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel and their ecosystem partners. >> We are back in Las Vegas here at AWS re:Invent alone with Rebecca Knight and I'm John Walls and I know what you're thinking. Email, oh my god, email. The avalanche, the problems that are causes here folks in IT. Well, I tell you what, Chris McFadden is here to solve your problems. (mumbles) engineering at SparkPost. Chris good to see you this afternoon, thanks for joining us. Good to see you, I'm happy to be on The Cube. >> Yeah, great. >> It's my third time at re:Invent, but first time on The Cube so happy to be here. >> Welcome. >> So a Cube rookie. >> (laughs) >> We ever find, to leave you with it on the way out, remind me to get it for you. Alright, so tell us about SparkPost first off, about, we talk about email, what your primary focus is and just the challenges that you are trying to solve to your clients. >> Sure, SparkPost is the leading email delivery provider. So our customers send over five trillion emails a year. That's over 37% of the world's commercial email. That's obviously a lot of email. So we're focused on B2C email and what that means is that any app who has the need to send email, we help with getting that email on time into the inbox. That really helps product managers and product teams with ensuring that they can get the right performance, the analytics and also the human services to make sure that they can get customers to adopt their service, grow engagement and ultimately revenues. >> I understand you have a new product, SparkPost Signals, tell our viewers a little bit more. >> Yeah, so I'm very excited to talk about SparkPost Signal. So as everybody knows, your email is super important to people, and with email being such a high ROI for most companies, when you have a different email performance that could really impact a company's revenue as well. So I'm excited to talk about SparkPost Signals because what that could really help with is being able to provide some dashboards and tools so that you can have more data driven predictive, actionable insight so that ordinary customers can have that kind of email expertise at their fingertips really to be able to then boost their performance. So I can certainly talk about some of the particular challenges that this would solve for people. So in particular, we have a health score and also a spam chart reporting. So for example, what could happen is, if you or maybe somebody in the organization that you don't even know about, they could go out and acquire an email list. More email addresses, the better. >> Sure. >> The next thing you know, you end up landing on spam traps, you're getting blocked, you're email's not going out. So it's better off to get early notice about whether there's some sort of problem so then you can actually react and correct the problem before it starts impacting your business. >> So is it a delivery problem or challenge or is it a firewall challenge or problem. Kind of, how do you balance that out because you, it seems like it's a little bit of both actually or it could be a little bit of both. >> So email is a very much an open network. There's no one particular tech company really owns it so anybody can send any email. That's why most email that's sent is actually spam. So on the ISP side, these are the internet service providers who are Gmail or Hotmail that are actually receiving the email, they are very protective of their users. So what that means is that if you buy email addresses or you're sending too much to people and they say, I don't want this email, then the ISPs can actually say, you know, you're doing this too much, you're being abusive and we're actually going to start blocking you so none of your email is actually then going to get delivered. So none of your password resets, none of your auto-confirmations, none of your marketing email. So you have to be very, you have to have very good email sending practices otherwise you run into trouble. So for most customers from most companies we work with, they're expertise is elsewhere, you know. They're in social media, they're in banking, >> Marketing >> whatever it is. They don't necessarily know all the best ways to be able to manage their email streams. >> And yet email is mission critical to their businesses. >> Exactly >> This product launches in January but you've already been testing the waters a bit with some of your customers. What are you hearing, what are they saying? >> So we've heard a lot of very good things. The usual response from customers is when can we get it, you know. So we're frantically working to roll this out. But we've actually, when we were doing the demos with customers, we were actually showing them real data so this wasn't hypothetical. We were actually showing them real data with their own health scores, with their spam trap reports. Also showing, which is really interesting, their engagement cohorts. So what that means is that if customers, or companies that work us are not sending to their most engaged users but are also sending to users that don't actually engage much at all, then that can actually hurt their overall deliverability and engagement so when we show them these cohort reports, showing them that if you actually are sending more to your more engaged users, ultimately your engagement and revenue's going to go up. So we've actually worked, even before Signal is a product, we've worked with customers to do this. We have some very high-profile customers who've actually reduces the volume of email they've sent through is but their actual engagement has gone through the roof as well as their revenue. We've also worked with customers and that's more on the engagement cohort reporting. On the other side, when it comes to span trap reporting, we've had customers who've actually run into problems where they inadvertently started emailing to addresses that are on spam traps. Spam traps if you don't know are essentially bogus email addresses that are out there, like honeypots and if you email them, then it tells the spam trap owner that you obviously didn't get a real person to subscribe to this or to opt in so you're obviously following bad practices and I'll report you to maybe a blacklist which will then prevent all of your email being delivered. So we were able to work with that customer to really identify the rate of spam trap hits that they have and they were able to clean up their own practices based on that and then get back in business and actually have better engagement for what they're doing. >> So you're here at AWS, so there's a public cloud play here somewhere. Is this about a customer migration, are you educating people and bringing them along as well for the public cloud experience. I mean, what are you doing here. >> Right, so we have our cloud services and that's built on AWS. We've been in AWS for over four years now and we love coming here and learning about a lot of the new technology. We also have a booth here, we're providing our own services. What we also have is that ewe had an on-premise product, Momentum and PowerMTA and both of those products are heavily used throughout the industry for sending email. So we have a number of customers who are coming to us and saying, we're looking to move to the cloud. So we can either help them move their mail streams to SparkPost which can be very convenient or if they want to continue to run their own MTAs and some of their own infrastructure, possibly maybe they're a bank or maybe it's just not the right time for them then we're able to look at other options. Potentially things like hybrid analytics and that's a way for them to be able to get the addition analytics and things like SparkPost Signals but without actually moving everything. But I'm definitely very encouraged. Yesterday's keynote had Guardian and that's quite an ambitious project to be able to move to the cloud so I'm very excited. We're also, SparkPost is one of their SAS providers that they chose to use in part of their migration. So rather than continue to try to run their own infrastructure, they said, here's an API, I trust SparkPost, they've got the right security, support services to be able to get the job done. >> I'm curious about the future and sort of, will email always be an integral part of doing business for companies and how SparkPost is thinking about its future business model. >> Right, so email's been dead about 20 years. >> Supposedly, that's what they keep saying. (laughs) >> However, every year, email volumes keep growing. Everybody has an email address, really it's the preferred method of communication even among millennials nowadays. Emails also again, it's an open platform so it's not controlled by the big tech companies so it's very ubiquitous. It's also a good system of record and also there's certain things that don't really make sense to send over push or SMS. So email continues to be a (mumbles) for companies both in triggered email as well as marketing email. So we have a number of customers who are in these next generation martech vendors who are providing even more services. They use us as the back end for doing that delivery but they're seeing even more demand for again, on the marketing side and again, there's more and more apps being built. There's more and more opportunities there. They all need to send email and we see certainly with SparkPost Signals and otherwise, that with the smart use of data, there really becomes an even better opportunity to grow those relationships with your customers. So rather than just being a transaction, that's an opportunity for a relationship building interaction. >> A value add. >> Right. >> Well, five trillion emails, I think half of them, I think I've sent in half of those these days so maybe you and I aught to talk 'cause (mumbles) Thanks for the time. Thanks for coming here on The Cube and again, leave you with a parting gift, please, >> Thank you, I appreciate it >> by all means. Chris McFadden joined us here and we'll be back with more from AWS re:invent, we are live on The Cube from Las Vegas. (light electronic music)