>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. >>Welcome to the cubes coverage of AWS reinvent 2020. The digital version I'm Lisa Martin and I have a couple of Cuba alumni joining me from Wien. We've got Danny Allen. It's C T O and S VP of product strategy And Dave Russell, VP of Enterprise Strategy, is here as well. Danny and a Welcome back to the Cube. >>Hi, Lisa. Great to be here. >>Hey, Lisa. Great to be here. Love talking with this audience >>It and thankfully, because of technologies like this in the zoom, were still able to engage with that audience, even though we would all be gearing up to be Go spending five days in Vegas with what 47,000 of our closest friends across, you know, and walking a lot. But I wanted Thio. Danny, start with you and you guys had them on virtually this summer. That's an event known for its energy. Talk to me about some of the things that you guys announced there. And how are your customers doing with this rapid change toe? work from home and this massive amount of uncertainty. >>Well, certainly no one would have predicted this the beginning of the year. There has been such transformation. There was a statement made earlier this year that we've gone through two years of transformation in just two months, and I would say that is definitely true. If you look both internally and bean our workforce, we have 4400 employees all of a sudden, 3000 of them that had been going into the office or working from home. And that is true of our customer base as well. There's a lot of remote, uh, remote employ, mental remote working, and so that has. You would think it would have impact on the digital systems. But what it's done is it's accelerated the transformation that organizations were going through, and that's been good in a number of different aspects. One certainly cloud adoption of clouds picked up things like Microsoft teams and collaboration software is certainly picked up, so it's certainly been a challenging year on many fronts. But on the on the other hand, it's also been very beneficial for us as well. >>Yeah, I've talked to so many folks in the last few months. There's silver linings everywhere. There's opportunity everywhere. But give our audience standing an overview of who them is, what you do and how you help customers secure their data. >>Sure, so VM has been in the backup businesses. What I'll say We started right around when virtualization was taking off a little before AWS and you see two left computing services on DWI would do back up a virtual environments. You know, over the last decade, we have grown into a $1 billion company doing backup solutions that enable cloud data management. What do you mean by that? Is we do backup of all kinds of different infrastructures, from virtual to cloud based Assad's based to physical systems, You name it. And then when we ingest that data, what we do is we begin to manage it. So an example of this is we have 400,000 customers, they're going back up on premises. And one of the things that we've seen this year is this massive push of that backup data into S three into the public cloud and s. So this is something that we help our customers with as they go through this transformation. >>And so you've got a team for a ws Cloud native solution. Talk to me a little bit about that. And how does that allow business is to get that centralized view of virtual physical SAS applications? >>Yeah, I think it all starts with architecture er and fundamentally beams, architectures. ER is based upon having a portable data format that self describing. So what >>does >>that mean? That means it reduces the friction from moving data that might have been born on premises to later being Stan Shih ated in, say, the AWS cloud. Or you can also imagine now new workloads being born in the cloud, especially towards the middle and end of this year. A lot of us we couldn't get into our data center. We had to do everything remotely. So we had to try to keep those lights on operationally. But we also had to begin to lift and shift and accelerate your point about silver linings. You know, if there is a silver lining, the very prepared really benefited. And I think those that were maybe a little more laggards they caught up pretty quickly. >>Well, that's good to hear stick big sticking with you. I'd love to get your perspectives on I t challenges in the last nine months in particular, what things have changed, what remains the same. And where is back up as a priority for the the I T folks and really the business folks, too? >>Yeah, I almost want to start with that last piece. Where? Where's backup? So back up? Obviously well understood as a concept, it's well funded. I mean, almost everybody in their right mind has a backup product, especially for critical data. But yet that all sounds very much the same. What's very, very different, though? Where are those workloads? Where do they need to be going forward? What are the service level agreements? Meaning that access times required for those workloads? And while we're arguably transitioning from certain types of applications to new applications, the vast majority of us are dead in the middle of that. So we've got to be able to embrace the new while also anchoring back to the past. >>Yeah, I'm not so easily sudden, done professionally or personally, Danny, I'd love to get your perspective on how your customer conversations have changed. You know, we're executives like you, both of you are so used to getting on planes and flying around and being able Thio, engage with your customers, especially events like Vermont, and reinvent What's the change been like? And from a business perspective, are you having more conversations at that business? Little as the end of the day. If you can't recover the data, that's the whole point, right? >>Yeah, it is. I would say the conversations really have four sentiments to them. The first is always starts with the pandemic and the impact of the pandemic on the business. The second from there is it talks about resource. We talked about resource management. That's resource management, both from a cost perspective. Customers trying to shift the costs from Capex models typically on premises into Op X cloud consumption models and also resource management as well. There's the shift from customers who are used to doing business one way, and they're trying to shift the resources to make it effective in a new and better way. I'd say the third conversation actually pivots from there to things like security and governance. One of the interesting things this year we've seen a lot of is ransomware and malware and attacks, especially because the attack surface has increased with people working from home. There is more opportunity for organizations to be challenged, and then, lastly, always pivots where it ends up his digital transformation. How do I get from where I used to be to where I want to be? >>Yeah, the ransomware increase has been quite substantial. I've seen a number of big. Of course you never want to be. The brand garment was head Carnival Cruise Line. I think canon cameras as well and you're talking about you know you're right, Danny. The attacks are toe surfaces, expanding. Um, you know, with unprotected cloud databases. I think that was the Facebook Tic Tac Instagram pack. And so it's and also is getting more personal, which we have more people from home, more distractions. And that's a big challenge that organizations need to be prepared for, because, really, it's not a matter of are we going to get a hit? But it's It's when, and we need to make sure that we have that resiliency. They've talked to us about how them enables customers toe have that resiliency. >>Yeah, you know, it's a multilayered approach like you know, any good defensive mechanism. It's not one thing it's trying to do all of the right things in advance, meaning passwords and perimeter security and, ideally, virtual private networks. But to your point, some of those things can fail, especially as we're all working remotely, and there's more dependence on now. Suddenly, perhaps not so. I t sophisticated people, too. Now do the right things on a daily basis and your point about how personal is getting. If we're all getting emails about, click on this for helpful information on the pandemic, you know there's the likelihood of this goes up. So in addition to try and do good things ahead of time, we've got some early warning detection capabilities. We can alert that something looks suspicious or a novelist, and bare bears out better investigation to confirm that. But ultimately, the couple of things that we do, they're very interesting and unique to beam are we can lock down copy of the backup data so that even internal employees, even somewhat at Amazon, can't go. If it's marked immutable and destroy it, remove it, alter it in any way before it's due to be modified or deleted, erased in any way. But one of the ones I'm most excited about is we can actually recover from an old backup and now introduce updated virus signatures to ensure we don't reintroduced Day zero threats into production environment. >>Is it across all workloads, physical virtual things like, you know, Microsoft or 65 slack talked about those collaboration tools that immune ability, >>so immune ability. We're expanding out into multiple platforms today. We've got it on on premises object storage through a variety of different partners. Actually, a couple dozen different partners now, and we have something very unique with AWS s three object lock that we you can really lock down that data and ensure that can't be compromised. >>That's excellent, Danny, over to you in terms of cloud adoption, you both talked about this acceleration of digital business transformation that we've all seen. I think everyone has whiplash from that and that this adoption of cloud has increased. We've seen a lot of that is being a facilitator like, are you working with clients who are sort of, you know, maybe Dave at that point you talked about in the beginning, like kind of on that on that. Bring in the beginning and we've got to transform. We've got to go to the cloud. How do you kind of help? Maybe facilitate their adoption of public health services like AWS with the technologies that the off first? >>Yeah, I'd say it's really two things everyone wants to say, Hey, we're disrupting the market. We're changing everything about the world around us. You should come with us. Being actually is a very different approach to this one is we provide stability through the disruption around you. So as your business is changing and evolving and you're going through digital transformation, we can give you the stability through that and not only the stability through that change, but we can help in that change. And what I mean by that is if you have a customer who's been on premises and running the workloads on premises for a long while, and maybe they've been sending their backups and deaths three and flagging that impute ability. But maybe now they want to actually migrate the workloads into E. C to weaken. Do that. It's a It's a three step three clicks and workflow to hit a button and say send it up into Easy to. And then once it's in AWS, we can protect the workload when it's there. So we don't just give the stability in this changing environment around us. But we actually help customers go through that transformation and help them move the workloads to the most appropriate business location for them. >>And how does that Danny contending with you from a cost optimization perspective? Of course, we always talk about cost as a factor. Um, I'm going to the cloud. How does that a facilitator of, like, being able to move some of those workloads like attitude that you talked about? Is that a facilitator of cost optimization? Lower tco? I would imagine at some point Yes, >>Yes, it is. So I have this saying the cloud is not a charity right there later in margin, and often people don't understand necessarily what it's going to cost them. So one of the fundamental things that we've had in being back up for a W s since the very beginning since version one is we give cost forecasting and it's not just a rudimentary cost forecasting. We look at the storage we looked compute. We looked at the networking. We look at what all of the different factors that go into a policy, and we will tell them in advance what it's going to cost. That way you don't end up in a position where you're paying a lot more than you expected to pay. And so giving that transparency, giving the the visibility into what the costs of the cloud migration and adoption are going to be is a critical motivator for customers actually to use our software. >>Awesome. And Dave, I'm curious if we look at some of the things trends wise that have gone on, what are you seeing? I t folks in terms of work from home, the remote workers, but I am imagine they're getting their hands on this. But do you expect that a good amount of certain types of folks from industries won't go back into the office because I ts realizing, like more cost optimization? Zor Hey, we don't need to be on site because we can leverage cloud capabilities. >>Yeah, I think it works, actually, in both directions least, I think we'll see employees continue to work remotely, so the notion of skyscrapers being filled with tens of thousands of people, you know, knowledge workers, as they were once called back in the day. That may not come to pass at least any time soon. But conversely to your point everybody getting back into the data center, you know, from a business perspective, the vast majorities of CEO so they don't wanna be in the real estate business. They don't wanna be in the brick and mortar and the power cooling the facilities business. So >>that was >>a trend that was already directionally happening. And just as an accelerant, I think 2000 and 20 and probably 2021 at least the first half just continues that trend. >>Yeah, Silicon Valley is a bit lonely. The freeways there certainly emptier, which is one thing. But it is. It's one of those things that you think you could be now granted folks that worked from home regardless of the functions they were in before. It's not the same. I think we all know that it's not the same working from home during a pandemic when there's just so much more going on. But at the same time, I think businesses are realizing where they can actually get more cost optimization. Since you point not wanting to manage real estate, big data centers, things like that, that may be a ah, positive spin on what this situation has demonstrated. Daddy Last question to you. I always loved it to hear about successful customers. Talk to me about one of your favorite reference customers that really just articulates beams value, especially in this time of helping customers with so many pivots. >>Well, the whole concept of digital transformation is clearly coming to the forefront with the pandemic. And so one of my favorite customers, for example, ducks unlimited up in Canada. They have i ot sensors where they're collecting data about about climate information. They put it into a repository and they keep it for 60 years. Why 60 years? Because who knows? Over the next 60 years, when these sensors in the data they're collecting may be able to solve problems like climate change. But if you >>look at it >>a broader sense, take that same concept of collection of data. I think we're in a fantastic period right now where things like Callum medicine. Um, in the past, >>it was >>kind of in a slow roll remote education and training was on kind of a slow roll. Climate change. Slow roll. Um, but now the pandemics accelerating. Ah, lot of that. Another customer, Royal Dutch Shell, for example. Traditionally in the oil and petrochemical industry, their now taking the data that they have, they're going through this transformation faster than ever before and saying, How do I move to sustainable energy? And so a lot of people look at 2020 and say, I want how does this year? Or, you know, this is not the transformation I want. I actually take the reverse of that. The customers that we have right now are taking the data sets that they have, and they're actually optimizing for a more sustainable future, a better future for us and for our Children. And I think that's a fantastic thing, and being obviously helps in that transformation. >>That's excellent. And I agree with you, Danny, you know, the necessity is the mother of invention. And sometimes when all of these challenges air exposed, it's hard right away to see what are the what are the positives right? What are the opportunities? But from a business perspective is you guys were talking about the beginning of our segment, you know, in the beginning was keeping the lights on. Well, now we've got to get from keeping the lights on, too. Surviving to pivoting well to thriving. So that hopefully 2021 this is good as everybody hopes it's going to be. Right, Dave? >>Yeah, absolutely. It's all data driven and you're right. We have to move from keep the lights up on going the operational aspect to growing the business in new ways and ideally transforming the business in new ways. And you can see we hit on digital transformation a number of times. Why? Because its data driven, Why do we intercept that with being well? Because if it's important to you, it's probably backed up and held for long term safekeeping. So we want to be able to better leverage the data like Danny mentioned with Ducks Unlimited. >>And of course, as we know, data volumes are only growing. So next time you're on day, you have to play us out with one of your guitars. Deal >>definitely, definitely will. >>Excellent for Dave Russell and Danny Allen. I'm Lisa Martin. Guys, thank you so much for joining. You're watching the Cube

[Music] hey welcome back everybody Jeff freek here with the cube we're in Reno Nevada at the inner bike show it's a big show all about bikes and mountain bikes but we're really to talk about ebike skuzzy bikes is this new class of really transportation not really new turns out that gazelles been making them since 2002 so we're at the Royal Dutch gazelle event that adjective in next to enter bike and we're excited to see they're releasing a bunch of new bikes and really dig into what are these e bikes all about we've been told that the United States a little bit behind you're starting to see them show up is it a last mile vehicle is it you know a primary vehicle what are the laws and regulations or we're really excited to have our first guest she's been dealing with this for years and years and years it's current wiener she is a co-owner of the new wheel Carn great to see you thanks thanks for having me absolutely so give us a little background on the new wheel where are you guys how long have been around what's your what's your focus yeah and the new wheel is located in San Francisco and Marin County and Larkspur we opened in 2010 so about eight years ago out of our excuse me out of our apartment because we realized that nobody was really seeing the opportunity in this transportation alternative right and so we were seeing what was happening in Europe which like you said has been happening for a while and we realized that gosh San Francisco is the perfect place it's it's an obvious match an electric bike which basically amplifies your pedaling power acts exactly like a bicycle except for you're always in your best shape and having your best day and having the most fun and so um we started with basically one bike who are three bikes and we had a mobile shop that we would ride from farmers market to farmers market then we opened our first store in 2012 and we're still in that location in Bernal Heights in San Francisco and we focus on curating high quality electric bikes that are going to work really well in San Francisco which as you know is a really rugged especially in terms of elevation gain environment right so what if you could talk about some things some miss or not miss so one thing is why we came here is we were really looking at e-bikes is really a last bio vehicle and that's kind of in the in the line of smart cities and in kind of multimodal transportation do you'd have a lime scooter to the Cal train maybe it's your car maybe you've got your own bike but what I'm hearing here is these things are a lot more than last mile vehicles these are actually substitution vehicles for a significant amount of car rides not just the two miles run down to the store to get some milk or to get some cereal or to get some coffee but a much heavier load on these things yeah it's very very interesting so if we look to Europe the ebike started as a replacement for bicycle trips in kind of urban environments for people who are maybe getting older or whatever and the Bison and any bike works really well for just in in turn inner-city transportation there's been an interesting kind of development in Europe in the last say four or five years which is the rise of the speed electric bike you can with a very small battery you can ride 40 to 60 miles 40 to 60 months yeah and that means that you can ride from one city to another so now what we're seeing is a clerk across the Netherlands actual bicycle super highways that cover maybe you know five to 20 miles and that becomes a reasonable bicycle ride on the daily basis and that's really exciting it's something that is unlike basically any other form of transportation it's not a motorcycle it's not that heavy-duty you don't need license or insurance or anything like that you're still getting exercise and you're getting where you need to get right so it's talked about the speed because the speed is interesting thing and I think the speed is what dictates some of the regulation so we see in San Francisco got inundated with the Lyme scooters and there's boosted boards and one wheels and all sorts of kind of contraptions with these great high-capacity batteries and these itty-bitty little little motors so the form factors are numerous but all of them seem to be gated around 20 miles an hour which I think is the regulation to keep them from being considered a scooter you know a internal-combustion scooter so you're talking about speed bikes so they've got bikes here today that goes like 28 miles an hour so how are the regulations keeping up with us a bike that goes 28 miles an hour so it's developing slowly it's developing based on models that have already been tested and used in Europe in California there was actually a model legislation passed I think three years ago which defined three types of electric bikes and defines them as bicycles so type 1 is a bicycle that goes to 20 miles an hour and basically it has to be you have to be pedaling type 2 is a bicycle it also goes to 20 miles an hour but can have a throttle now this is a very Asian type of electric bike it's not quite as polished but usually they're lower-cost okay and then type three is this 27 mile an hour type still a bicycle you're required to wear a helmet and there are some places that you're not allowed to ride them like on shared pedestrian paths right and so what's good about this is it's creating a model for different local and regional governments to create rules it's taking time from but what's exciting is that there is a model so the scooters and the one wheels are all operating under cut-ins this DMV law that is kind of this type of as you describe it is kind of type 1 but it's also kind of skirt like it seems really unclear right I think there's an opportunity and electric bikes for it to be very clear and I think we're on the way to that it's just going to take something right now in terms of the actual utility obviously this is a Dutch company they don't have great weather in Holland as we know San Francisco as you mentioned is a rugged place not to mention the fact it's about as rough as it gets for parked cars getting broken into so what do you see from your customers in terms of the actual utility carrying stuff home from the store survivability in the streets you know not getting stolen inexpensive pieces of gear so what's kind of the experience you've seen with your kind of long history in this space in the city so what I've seen is that what you use matters a lot so the type of bike that you choose out of the gate is going to dictate first of all how well it's going to last and second of all how well it's gonna work in the first place right the other thing is that the way it's not only the bicycle you also have to have the right lock and you have to have the right bag and the right set up to give you the actual full utility potential of the bicycle and that's where you know specialists and retailers really come in you also need service so most people have owned bicycles in their lifetime and it may be stretched one train stretching a chain takes about 2,000 miles on a bike okay an e bike rider usually stretches a train in a little under a year because suddenly your bicycle is your preferred mode of transportation for thousands of miles of errands and and urban duties and and pleasure right that you never had before on a bicycle so it's a switch in terms of how people understand the maintenance that they need on their bike but also what kind of tools they need like a great lock and it turns out that you actually can lock a bike safely not overnight on the street but at any time of day there are locks that work really really well through the bike safe so next day on touch bases kind of the evolving technology yeah so we're hearing over and over that really the the battery technology is getting this just huge boost from autonomous cars because now there's huge investments in battery you've probably seen tremendous developments both in the batteries and the propulsion systems and the technology and these bikes since you've been out that's four for eight years how is that kind of changing and how is that opening up you know maybe the opportunity to people that maybe didn't wanna a shorter range you know six a 10 a 12 a 15 wherever the older kind of range models were battery technology that that originated in laptops and I was being used in cars and autonomous vehicles totally changed the potential for electric bikes and it changes it will change so many things about your bicycle for example not too far down the road I believe that there will be anti-theft devices on every electric bicycle that you buy you're gonna be able to track your bicycle you're gonna be able to track your heart rate you're gonna be able to do all these things seamlessly just as part of your life so when you put a battery on a bike it changes everything about what it can do right now it's assist in the future will be many things there was this switch about eight years ago from old very heavy very polluting batteries to lithium-ion batteries and it it means that you can have a bicycle that is that you can lift you know that weighs between maybe 35 and 60 pounds that will take you anywhere from 25 to 100 miles right right and that's a game-changer right so last question for you what is like the biggest surprise when somebody comes in the store you know you sit him down so any bike and they come back for their first maintenance whatever that they say how this thing has really impacted their lives integrating activity into your life can change your life in all sorts of ways it can reduce stress the funniest one was this this guy came in they'd had this family that had a baby like six months ago guy comes in buys a bike and he comes back for his new tuna and he goes Karen my wife owes you a big one she's a much happier woman now people love their bikes what surprises them I think the most most often is just how many miles they're accruing on their odometer and that makes them excited from a health standpoint from an environmental standpoint and just from a joy in your daily life standpoint when we all live with a lot of stress at a lot of multitasking and taking 20 minutes on your bike and just having a great relaxing time is unbeatable right well thanks for a card take it a few minutes and and sharing the story and nothing but success for the store alright cheese Caron I'm Jeff you're watching the cube we're at the Royal Dutch gazelle bike event outside of Interbike in Reno Nevada thanks for watching [Music]

. >>Hey, welcome back everybody. Jeffrey here with the cube. We're in Reno, Nevada at the Interbike show. It's a big industry gathering, talking all about bikes, but today we're at a, a little side event is put on by the Royal Dutch, a gazelle bike company, 125 year old bike company that's all in on eBikes. And when we wanted to come check it out, really learn how the bike phenomenon is impacting smart cities and last bile. And there's so much cool stuff going on with big batteries and small motors, but it's really a lot more than that. And we're excited to be here with someone who's been writing about the industry for over 25 years as Patrick Brady, the publisher of the red kite prayer. Great to see you. Thanks. Nice to be here. Yeah. So you've been doing this for a long time and I just love to get your perspective on this e-bike phenomenon because you know, used to be, it's cheating and you know, these are not real bikes and you know, we're tough and we climbed the mountain and these things, that upset bubble, but they're, they're getting a ton of adoption. We just heard from the, the teammate goes up, they're going to sell a third of the bikes they sell this year or e-bike. >>That's amazing to me. Yay. I'm glad. I mean, this thing where, yeah, it's cheating. It's like, no, a good time is never cheating. Why? This is a problem for people. I don't understand. The thing is the very first time I ever got on an E bike, I grinned so hard. My cheeks hurt. It's a good time. And you know, the thing is, it's so effective for transportation. I'm cyclophilin. Okay. I love rode bikes. I love mountain bikes, but I just like bikes. And so if I can keep my car parked and use a bike to get around, I bought an I-CAR go bike, different company. But I love these. They're stylish, you know, and it's such a great way to get around. It's easy to park, easy to lock. They've got an integrated lock on them. You know, why wouldn't you use that as a way to get around, you know, gas guzzling cars. >>This is not what our future will be. We've got to be intelligent about what the future is. Another problem that we face as cyclists is that we're getting run over. People are on the smart phones and every time somebody gets out of an SUV and starts riding a bike, what happens? It's in the brain. We recognize that which we are. And so a chance to cause someone to recognize us out on the road. Oh look, somebody on a bike like I have. Right, right. Maybe they're not going to run us over. Right. So it's a, it's a way to decrease congestion on our roads. It's a nice way to see the world. I mean I don't care what bike you're on, if you're on a bike, it's a better way to see the world. Right? >>Well, 15 miles an hour. That's going to be a my blogger 14 cause it is. It's nice to be outside. You know, you're, you're in the fresh air. What's amazing to me though is I really came into this with a hypothesis around last mile. This is not last mile at all. These things are just substituting out for people's car. I just heard about a ride that people are doing, the Googlers are doing from San Francisco to mountain view every day. That's not an insignificant ride. Yeah. So it's really a game >>changer. Oh yeah. I take my kids to school on my e-bike pick them up in the afternoon, we'll go to the grocery store, pick up a pizza. No, it's so nice and it's easy to get my boys out the door. Can we take the green bike? You know, they get excited about it. Right. So it's, it's a big difference. Let's talk a little bit about regulations. So it's pretty interesting to see kind of, you know, regulation is usually always behind the technology. You know, how do we treat these things? Are they, are they scooters? Are they like a motor vehicle, but as defined by DMV, are they, are they bikes? And, and, and obviously the danger comes on yet, disparity of speeds. So you know, we're seeing on, I see it a lot of bike paths, no heat, no motor vehicles, which I think they mean scooters and then no eBikes. >>So how do you see kind of the regulation gonna change cause to your bed, to your point, it's always better to have somebody on a bike in a car in general in terms of space and congestion and all the reasons that you went through. So what is it going to take for the legislation and kind of the laws to kinda catch up to what these really represent and transforming really cities well, things have evolved a lot already. There's been a working group within the industry that helped define the three different classifications that are being used. Uh, not being able to use them on a bike path I don't think is a really big deal. You know, as, as the infrastructure improves for cycling, uh, out on roads, you know, bike lanes, that sort of thing. I think that's gonna help. But you know, one of the great things about an e-bike is you roll up to a red light and you pop it and turbo, you know, and the moment the light turns green, you're through the intersection instantly. >>So being out on the road where I live in Santa Rosa, I don't have any problems. And because the bike's big, I've got two other people with bright helmets on, people are cheering me, you know, I get waved at people like, you know, they're not pedaling, cracking jokes. So it's, it's become a very different way to present cycling to people who aren't on bikes and they look at it and they get excited. But you know, back to the legislation, I don't see that we're really having a big problem. There've been issues in some other places where, you know, they're just flat out not legal and it's like, well, you know, they're going to, they're going to see the light on that sooner or later. Right, right. We need to provide other options to get people around and it's just too intelligent and really all it takes for anybody to see. >>The light usually is one ride. Give them a half a mile, they'll get it. Right. It's funny because right at the end of the day we all like to be like that eight year old, they got their first thing Ray and you get out on the road and there's really just nothing like that. But now we're a little older, a little heavier and don't quite have that agility that we had as an eight year old. So you can see it bring it back. Yeah, it's crazy. So I'm just curious to your perspective, even within the bike industry, how it's evolved over the years. You know, there's so much stuff going on with batteries and motors. I think they could sell bikes. Are you using a Bosch system? Obviously Bosch is a huge car components company with giant, giant scale. >>Um, so as you've seen that evolve, you know, kind of what are some of your takes in terms of the longer capacity, the longer batteries, the better. >>Oh, you know, the biggest single thing. Sure. The batteries last longer. The motors provide torque on a more even basis. So they don't just take off or do anything crazy, but the units themselves, the biggest single thing that I see, because a motor is a motor at a certain level, the reliability has gone through the roof. You know, BOSH, yet they understand what reliability is. All the companies doing this now are so much better. I remember being at a magazine in 1998 and a guy just begging me to cover his bike and his Lake. It looked like a piece of junk and I had to communicate to them, but well, our reader is it who you're trying to sell to. Our reader. We actually liked going home. We liked the whole sweaty thing. Uh, and so that was, that was an issue, but I remember what that bike was and yeah, they're just so much more reliable. There's so much easier to use. The batteries lasts so much longer. Everything is, you know, it's ready for you. >>Right, right. It's funny, a lot of, a lot of the conversations earlier today, we're, we're talking about kind of those early days and it's fascinates me, all the Kickstarter projects around all these kinds of alternative vehicles, whether they're scooters or skateboards or one wheels and all these different variations of, of personal mobility. Um, but this is an old company. These guys have been added for awhile and I cannot believe that a third of their sales this year are going to be e-bike. So when a big, the big traditional powerhouses come into the market, that changes everything. >>Yeah. Well, when you look at the population of cyclists in the world, and then you look at the population of the world, who do you want to sell to? If you want to grow your company? I don't, let's sell to all the people who aren't currently riding bikes, you know, and think about what that's gonna do for the world. Fewer emissions, happier people. Holy cow. You know, that's crazy talk. >>Right, right, right. All right, Pat. Well, thanks for, uh, for sharing your perspective. It's, it's a really exciting time. We're happy to be here and, uh, I'm sure it's a whole breath of fresh air in your coverage area to be able to get into this space. Yeah, I really welcome it. I love it. I love it. Oh, I love these, said I'm over the, I'm over the cheating. All right. Well, he's Patrick. I'm Jeff. You're watching the cube. We're at Interbike and actually a little side event here with Royal Dutch gazelle. Thanks for watching.

. >>Hey, welcome back everybody. Jeff Frick here with the cube. We're in Reno, Nevada. Interbike is happening uh, this week in Reno. It's a big huge bike show. They have stuff up at the mountains. They've got stuff at the convention center. This is a small side of it put on by Royal Dutch gazelle, a bikes, 125 year old bike company that is all in on electric bikes. We came because this e-bikes story and part of the big motors, or excuse me, a little motors, big battery kind of last mile thing has really taken off. So we want to come get a better feel for what's going on and we're excited to have a dealer from Portland, one of the most bike friendly towns in all the U S he's wait, Greg. And he runs e-bike store weight. Great to see you. Thank you very much. It's great to be here. Thanks for having me. >>So you said you've had your store open for 10 years. 10 years. We were the first all I looked at short store to open in Portland. Actually it was part of an MBA project. I was in China taking a class, saw electric bikes for the first time, gas had just spiked and realize these are the most efficient form of motorized transportation known. Right. And nobody was doing it. And so next class I had wrote a business plan, launched it 10 years ago by putting 25,000 on a credit card and borrowed 10,000 from a friend and 10 years later we're still here. Love it, love the story. It's been, it's been a fun ride. So it's just, you know, you're the second retailer we've had on and they were also exclusive e-bikes in the Bay area. So you know, was the kind of existing bike infrastructure attitude, you know, industry just looking down to these only things where they just too weird to new Y, you know, kind of the early ones are e-bikes only. >>What's interesting, if you come to the market right now, what you see is you see some of the largest companies in the world putting a lot of resources, engineering resources, manufacturing resources, testing resources behind e-bikes. Back in the day, it wasn't such you, these manufacturers make them in the kind of, the customer was a test person. Right. And so it's been a very bumpy road to get to this point. But at this point they're very reliable. And so at first when caught, when shops were brought these things, they said, why would I ever carry that? Who can keep it running? You know? And now it's at the point where they're very easy to keep her on. They have log files, you plug it into the computer if you have a problem with it and it tells you, Oh error code, fix this one thing and off you're going again. >>But it hasn't always been such. And so the Rick older bike shops in particular avoided them because you make your money in a bike shop by having a customer for life and they couldn't keep them running. So they were nervous. They would not be able to keep the customer. Right. And there was a, it was wise, you know, now it's at the point where all the IBDs are coming in in Portland right now we have seven electrical only bike shops. All the big IBDs are carrying it with IBD, independent bike dealers. Okay. And on top of that, half the people that are looking for any bike will not buy from a traditional bike shop. It only come to an e-bike specialist. And so that's kind of our niche is the people and we really focus on that. So we try to have all of our, how we explain things, not to use big bike terms. >>We talk about how it would value the customer and use a whole different lingo than a traditional shop. Right. So it is a lot of different things going on with bikes. So one of them, right, is the speed, um, and then, and how it's classified. So yes, you know, there's the kind of the 20 mile an hour limit and we see that in the scooters and all these electric vehicles that keep it not a motor vehicle. And then they've got one here. I think it was 27 or 28 miles across three class three. So the laws seem to be kind of trying to catch up, like how do we classify these things? Are they bikes? Are they allowed on the bike path? Are they not allowed on the bike? Pass the hop. It's funny you bring that up tonight. Evolve. Well, it's funny you bring that up today because just today by Portland, which is one of the biggest bike blogs in the nation, um, came out with an article saying they were relatively in the fine print of or Portland code, my city's code and found out you can't ride your bike on the city paths and the city parks, and I didn't know this, I've been in business 10 years, but the very fine print and under dissertation you can't do it. >>Um, so it is, it's a gray space. Um, the 20th mile an hour bikes. Well it seems crazy fast when you and I are standing here. When you're on a road and there is a backup of cars behind you, where's the 20 mile an hour speed limit and they're driving 25 right. You know, it feels kind of safer to be able to go 25 with them and not hold them up and be able to get away from the door and, and zone. We're in a car doesn't go over to the store and you by taking the lane it feels much safer. So I actually, you know, I ride a class one most of the time but I, I do like riding class three bikes. Right. Just curious in terms of of the change of experience on an E bike versus a regular bike, some of the customers that you have, how is it fundamentally different? >>Cause I, you know I came to here today thing and this was really a last mile play. It's not a last mile play at all. For us, about 35% of our customers, their e-bike is their main mode of transportation. It is their car. It is how they get around and about 20% historically from our shop having people with physical disabilities or limitations in some way, shape or form 20%, 20%. So it's people who can no longer make it up the Hill to their house. It's people who can't arrive at work sweaty. It's people with ms, people who are missing along, people who have CLPD, um, you name it. These are people who now can ride again and getting them active again. And so it's a whole different mindset. Um, historically the bike industry has really gone after kinda the elite athlete, right? And this is something different. >>It's people who have, may haven't written a bike for oftentimes 20 plus years, right. Are now able to get out and go on a Hill. And the most interesting thing, they did a study in Australia where they put on, they worked with psycho stupid, been injured and they hooked him up to exercise bikes in front of a video screen showing them as they're paddling down the road essentially. And they change the video to climb a Hill, but they didn't change the settings on the exercise bike. They're sitting on the cyclist reported a higher level of pain when the visual show them climbing the Hill. So e-bikes do the exact reverse of that. And you're actually rewiring your brain so that bikes don't add pain and you can get where you need to go easily and efficiently. Right. So it's their primary, their primary methods. So you talked about the connectivity, um, you know, an app, integrated experience with all these devices we see over and over. >>So how has that changed your experience? Are you, is it, is it app for the consumer in terms of they're keeping track of their miles? Is it just for you and the maintenance or how's the integration of an app working through different ways for the app? So there's a mechanics app, we can plug it in and see the error codes. And that's important because being back in the day, someone will come in and say, I wrote this thing at mile 25 it cut out and stopped working. So after work, you know, or we go out and ride 25 miles and try to see if we could recreate the issue. And it was a pain. Now wait, you just told me it wasn't a pain to ride 25 buses. This is back in the day. It was a pain to try falls off. Intermittent issues are the bane of our existence. >>Yes, yes. But the uh, having a log file, we just plug it in and says, Oh, it cut out because of this error code, you know, and boom. Okay. Replaced the speed sensor. Good. You're back up and rolling. Right. Especially with people who commute. They don't want to leave their bike in the shop. They want ready within 24 hours or less. And so it's gotta be turned right. And so it's a whole different form of mechanics and a whole different level of support from the bike dealer. And that's why we choose the bike lines we choose like gazelle. Right. Who support their products very well. So it's pretty interesting that you said, you know, we talked about the scooter space and one wheels and all that fun stuff. So many deals, companies were started with Kickstarter. It's amazing to me how many kind of Kickstarter projects actually turned into real companies. >>Boosted future motion being a couple of my favorites. Future motion. Actually the design behind it was the guy who first invented the cell and unicycle unicycles Daniel Wood, he's actually from clock, I remember from Clackamas right across the river from Portland. And so I tried as original version of the self-balancing unicycle, which they made their first one wheels from and that, you know, it's come a long way and there's the one wheel, but it's been fascinating progression to watch him write and bring that out too. But that's very different than 125 year old Dutch company that's been making Mike making these bikes for a hundred plus years. Really? It's funny, we have, I think there's seven models here that they're showing today. I asked the exact guys how many regular bikes models they have and they're like one. Yeah. So, so they're all in. I mean this is significant. >>You think about some of the biggest companies in the world market cap. Bosch has always worn the top five or 10 market companies in the world. They make the largest set of best selling system in the United States and in Europe. Right? And they're behind it. They have millions of lithium batteries and people's homes already through their power tool division. They're the kind of engineering they're bringing is staggering and it's been really fun to be part of an industry that has been so nascent and yet just boom. Right. You just comes up with fright before you write for your eyes. Okay, so I got to ask you about the, whether you're from Portland, Portland rains a lot in, in, in Holland. How does the rain impact these things? Obviously you just send us their primary vehicle. Is it, is it more dangerous? Is there more spray? >>Is it, is it a factor? Not a factor. This is where the lines you carry make a huge difference. So when you, if you carry it, if you buy one off the internet that hasn't been product tested, you are the product tester. If you buy one like this, they literally have like a saltwater steam bath. They put the bikes in for weeks to stimulate Marine corrosion. They have hydraulic machines that the tar out of them. And so when you get a product, it just works. Um, and so we've had a, we had a Bosch system go completely underwater. Now, I'm not saying this is going to happen for everybody's experience. We had a guy literally put the bike in a river. He went one way. The bike went another, not on purpose, not on purpose. It was underwater for a few minutes. Right? Right. At work and rode home. >>And about a week later it made some noises and we told Bosch what happened, it was not a warranty issue with it was a collision. And Bosch said, you know, we haven't had enough warranty claims. You have some extra motors, we're going to send you a new one. And the guy said, it uses daily commuter. Right? Um, and it works great. Right? So, so w rain does not affect them, but it really depends on the model you have and how much product testing and how much engineering has gone in behind it to make sure you have the experience. Cause lithium and water are not generally friends. No. So, so just, I'll give you the last word. When you talk to people that are new to the space, maybe they just stumbled into the store, they heard about these e-bike things. What's kind of the biggest surprise that you see time and time again when people get one of these things and bring it home. >>Number one is that it rides like a bike. You can just go further. Um, th how well integrated they are. Um, on average the Baker's written 75% more than a traditional bike, 75% more, 75% more. Um, on average you can go about, well, the average speed wise on it. Um, I just study on this today. You know, you can increase your time by an average cycles average 11 miles an hour average e-bike average is about 13 to 1415 around there. And I forget the exact number. So I'm giving a bit of a gray area there. A little bit faster. Yeah. And so it gets you where you're going faster with less sweat. Right. We'll wake. Thanks for, uh, for taking a minute. What a, it's a, it's a cool story. And you know, Portland obviously is leading the charge in this, in this whole transformation. It's been a fun place to be and our customers are just awesome and no two ways about it. Super. Well, thanks again. He's waking. Jeff, you're watching the cube. We're at the Royal Dutch gazelle bike event at Interbike. Thanks for watching. Thank you.